Paying attention to the quality of local schools may not be on the top of your priority list as a new investor, especially when you're focused on rental property returns. However, it is important to look at school ratings and information before buying a Pittsburgh area home because it can impact your bottom line.
Do schools really impact rental property returns? The best property management company Pittsburgh offers helps property owners understand how the quality of neighborhoods and schools can help (or hurt) their ROI.
Why Schools Must Be Part of Rental Property Analysis
Whether you plan to rent to families or not, school districts and the quality of nearby schools can significantly impact the profitability of a rental. You don't need a family-sized home to benefit from excellent schools—or lose income as a casualty of poor-quality schools in the area.
A home management company will tell you that it's crucial to evaluate school districts and individual schools in the neighborhood when considering a new residential real estate investment. Low-rated schools won't attract quality renters, even if your tenants don't have kids. However, if your ideal renters include school-aged children, your rental units must be near excellent schools to generate the returns that meet your goals.
Poor-quality schools also go hand-in-hand with low property values. Without excellent property values and appreciation, property owners can't set competitive rental rates or sell a property at a profit one day. However, good neighborhood schools often deliver excellent property values that increase over time. A property owner is also more likely to attract better-quality renters to a community that rallies around schools and education for kids.
While school quality isn't the defining "make or break" factor between a rental property that succeeds vs. one that doesn't generate sufficient ROIs, investors must include school analysis when considering a potential rental property.
How Can Investors Evaluate Schools and ROI?
If you have kids, you've probably researched the schools in the Pittsburgh area (or in your hometown if you invest here from out of state) before choosing where to live. Good schools become a priority for parents or homeowners when considering where to buy a house. Likewise, homeowners without kids know that school quality can affect the resale value of a house when it's time to move on.
However, if you don't have kids or aren't familiar with schools in the area, property managers can help you find information to evaluate a property. Investors can also find good online resources to research school ratings, reviews, and other details. For example, Greatschools.com helps owners review school insights for K-12 institutions. You'll find ratings, reviews, test scores, and more. While some details don't directly relate to potential returns for a rental property, investors can get a good idea of the quality of nearby schools and how prospective renters might view them.
Neighborhood Scout is another good resource when researching schools and neighborhoods. This website offers more well-rounded neighborhood insights, with a section highlighting neighborhood schools. To access some data on this site, you'll need to pay a fee. However, there is plenty of free information for investors to apply to rental market analysis.
Property owners should also visit websites for schools and school districts to learn more about the area. These websites can also help you learn about potential school bonds that could raise property taxes and impact cash flow.
Get Firsthand Insights
While it's not necessary to buy a property near the best schools in the state to make money as an investor, good schools are more likely to help you find good tenants and answer the question of "how much can I rent my house for" to generate an ideal return on investment. However, it's also essential to consider walking away from an excellent rental property that could be impacted by poorly-rated schools and a lack of community support for the district.
Beyond reports, reviews, and online sources, property owners should get firsthand insights about local schools. The best property management companies can help connect the dots between school ratings and what they truly mean for different Pittsburgh communities. Sometimes reports and statistics don't tell the whole story, so talking with local business owners, homeowners, and a property manager can help you complete the picture you need to decide if potential rental properties are a good investment—or not.
A Pittsburgh Property Management Company Has Critical Insights Into Schools and ROIs!
The best real property management Pittsburgh offers can tell you that overlooking schools can be a significant mistake when planning your next real estate investment. While local schools aren't the most significant factor determining ROI, they are a critical element to evaluate when analyzing a potential property.
If you're not sure how to apply information about schools or districts when evaluating new investments, a Pittsburgh property management company can help! Rentwell knows the area and has plenty of local experience to help property owners with crucial insights. We also deliver Pittsburgh property management services, including tenant screening, rental market analysis, maintenance, and more.
If you're looking into this market, let us help you find a property that generates excellent returns!