We have put this page together for those of you who either own rental property in Redmond, WA or are considering the purchase of an investment property. If you have a question about owning rental property or Redmond property management that is not covered on this page, please do not hesitate to contact us directly for a free consultation.
Redmond Local Profile
Redmond, Washington is the Bicycle Capital of the Northwest, known for it’s innovation, local tech giants including Microsoft and Nintendo of America, and its historical sites. Today, the neighborhood is known for arts, culture, schools, and parks, and all of these benefit you when investing in property in the area. Redmond is home to multiple schools, the second largest library in King County, and festivals and art galleries throughout the year.
Neighborhoods – Redmond is an eastern suburb of Seattle, and like the larger city, it has a variety of neighborhoods, each offering their own unique locale, culture, and ethnicities. The City of Redmond includes 10 neighborhoods including urban centers Downtown and Overlake, mixed use land in Bear Creek, Sammamish Valley, Southeast Redmond, and Willows/Rose Hill. The remaining residential neighborhoods include Education Hill, Grass Lawn, Idylwood, and North Redmond. You can find your property’s neighborhood using Redmond’s neighborhood map.
Education – Redmond is also home to many public and private schools, which is a boon to local families moving into the area for jobs at Microsoft or Amazon. Most of the city is part of the Lake Washington School District, but homes that are east of 248th to West Snoqualmie Valley Road are served by the Riverview School District. Parents have access to 45 pre-schools, 22 elementary schools, 21 middle schools, and 10 high schools, more than 50 of which are private. The DigiPen Institute of Technology and the Lake Washington Technical College have campuses in Redmond.
Parks & Trails – Redmond is famous for its parks and trails, which cover nearly 1,000 acres or more than 4 square kilometers. The area also offers more than 17 miles of hiking and walking paths and trails. The 23 local parks offer recreation as well as scenery, with RC planes, cycling, and sports events held throughout the year.
Buying a Rental Property in Redmond, Washington
There is much to consider when deciding where in Redmond to buy an investment property, and also what to buy. Proximity to Microsoft, downtown Redmond and Lake Sammamish are the three main factors you should consider when making your decision. As a general rule, the closer you are to these three areas, the higher the cost of the property will be to purchase and, correspondingly, the higher the rent and lower the vacancy. There are many great neighborhoods in Redmond, all with their own distinctive positive and negative features.
What type of property to purchase is a matter of personal preference and budget. In Redmond, you can find anything from a duplex to a 200 unit apartment complex to purchase. The amount you are able to pay as a down payment will dictate whether or not you are able to make a monthly profit from your rental. Most commercial lenders are currently requiring between 20 and 30% down. Even at 20-30% down it may be difficult to get a property to cash flow unless you were fortunate enough to find a great deal.
What can you expect to get for rent in Redmond, Washington?
4 bed/2 bath, 2,500 s.f. single family home – $2,090 – $3,070 depending on area and amenities
2 bed/2 bath – 1,000 s.f. condo – $1,221 – $1,595 depending on area and amenities
Managing a Rental Property in Redmond, Washington
One of the first questions a new investment property owner will need to ask him or herself is: should I manage the property myself or hire a Redmond property management company?
What you decide should be guided by personal preference, budget, the amount of time a person has to dedicate him or herself to the issues that may arise and a person’s aversion to risk. A professional property management company like SJA Property Management can take all aspects of managing a property off of the plate of the owner. Tenant screening, lease preparation and signing, rent collection, maintenance handling are just a few of the property management-related issues that are routinely handled by a professional property management company. While it may, for the sake of saving money, appear to make sense to manage your own property, you may find that the trouble is just not worth the extra money. The aggressive marketing campaigns which are implemented by professional property management companies will likely result in your rental property being rented out more quickly than if you attempt to handle it yourself. So the money you think you are saving may be eaten up in one month of unnecessary vacancy.
For more detailed information on any of the issues discussed above, please contact one of our SJA Property Management professionals at 425.658.1920.