Rental Properties In Las Vegas
Buying rental properties in Las Vegas for an investment can be a great way to build wealth within your financial portfolio. Owning a rental property in Las Vegas can be great for any real estate investor because of the diversity of property types and rental property opportunities.
Are you looking for a high return on investment (ROI) or a positive monthly cash flow? Is appreciation more important than monthly profit? Everything is tax-deductible so what are YOU looking to do? We can find you rental properties in Las Vegas that fit your requirements.
Rental properties in Las Vegas where someone will live for many years are common. Executive housing and high-end rentals have become attractive to many real estate investors.
What Properties Do Investors Buy?
This week, a commercial investor bought a mid-rise apartment building for $450,000 a door setting a record. All investors have different visions. High-end flips are popular since many semi-custom and custom homes are 20 years old.
People who don’t care about the look of the area and want the highest ROI, choose older “C Grade” properties near downtown Las Vegas. Investors who want easy-care properties where property management isn’t necessarily needed, often choose a new construction home.
We’ve found that no two investors are alike, so think about what you want your money to do in your rental properties in Las Vegas. Choosing between brand new construction homes and older properties is a big decision.
Brand new construction homes need no maintenance for the one-year warranty period. Most builders provide a 7-10 year structural warranty. Appliances have 2-year warranties.
You can choose hard-surface flooring in a darker color. Landscaping can be rocked with little maintenance. A landlord will probably not need to invest money into repairs for a long time.
Then the big questions start. Are you going to want to live in the home in the future? Do you want a house with a large yard or a pool? A 55+ retirement community home can have some very responsible tenants and you can retire there in the future? Las Vegas property owners are experiencing a high annual appreciation rate as well as a nice monthly cash flow currently on every type of rental property in Las Vegas.
Older Rental Properties In Las Vegas
With older rental properties in Las Vegas, you’ll definitely get more bang for your buck. You might even find a rental property that has been remodeled and looks perfect. This is when “location” becomes important. Older rental properties tend to be closer to downtown. As houses are built in any city, they expand outward from downtown.
Areas near downtown tend to have more multi-family housing options, You might want to consider a 4-plex or larger apartment building. Older homes can demand a fair market rent, possibly a long-term tenant or a Section 8 tenant that will always pay rent.
Older areas also tend to have higher crime rates. A higher crime rate neighborhood can mean a rougher-looking neighborhood with lower rents and appreciation. And older homes can have systems that need replacing. Check our crime maps in the above menu under “Buyers.”
Newer rental properties in Las Vegas will attract a more professional renter. You might attract a family with kids that won’t want to change schools for many years. Lower crime areas also typically have a more responsible renter demographic because the rent is higher. Fewer major repairs are needed until the AC goes out at 15-20 years.
Brand New Investment Homes
Right now in Las Vegas, brand new construction homes are similar in cost per square foot as resale homes are. For a new construction home investor, we’ve found that they can ask for a higher rent for their new home and sign a 3-year lease with a waitlist of applicants. You will know your monthly repairs will be minimal. You can also debate if you need property management.
Another nice thing about buying a brand new home is that we specialize in new construction. As your home is being built, Kurt, a former Nevada building engineer goes to the job site for you every week and sends you pictures and videos.
If he sees a potential issue, he informs you of it and will talk to the superintendent. We gift you a new home inspection at closing. You will have a great Las Vegas rental property from day one.
Keep in mind that as your home is being built for 4-8 months, you will enjoy any and all appreciation. Until the home is completed, your cash outlay is only earnest money and upgrade deposits. As the builder releases new phases of home lots to sell, they raise the price of each floorplan. With every home release, you have guaranteed appreciation.
New Construction Expertise
As a side note: If you choose to buy a new construction property with our team as your Realtor, the builder pays for you to have Buyer REpresentation without it affecting the price of your home, Besides representing you during the entire new home buying process, I am a former Nevada Building Engineer and I monitor the construction as your house is being built.
We send you pictures every week to see the progress and what’s inside the walls before drywall is installed. When the framing and delivery walk-throughs are scheduled, I do them with you or for you.
For your additional protection, we gift you with the best new construction home inspector in town to go in the attic and inspect all systems and windows. Homes are built very quickly in Las Vegas, and they are not built perfectly.
Is Hiring A Property Management Company Worth It?
Once you have found a Las Vegas rental property, you need to decide if you want to hire the services of a Las Vegas property management company. Property management companies in Las Vegas have negotiable monthly fees. But are they worth it to you?
With the high rental demand right now, you might also consider being your own property manager. If you are willing to field phone calls from potential renters, arrange showings and write a lease, you can potentially save thousands of dollars a year.
Living out of state utilizing a property management company means that you can relax and deposit checks for rental income and watch your equity grow. When someone locally is handling your Las Vegas real estate investment property, there are very few decisions left to make.
Can You Negotiate Property Management Fees?
Property Management company duties have not changed with the cost of rent going up. Should you continue paying a percentage of the current rent or ask that fees remain the same?
Things you should know about property management companies in Las Vegas are that THEY WILL::
- Charge fees of approx. 7-10% of the rent each month or a flat fee – Negotiate it!
- Possibly discount their monthly fees when managing multiple investment properties for you
- Charge you for finding a renter, negotiating leases- new and renewals, making repairs, and going to the property
- Collect monthly rents and make automatic deposits for you
- Provide monthly accounting and an annual tax accounting
- Automatically serve 5-day notices and handle evictions
- Attend showings, create lease agreements and do a move-in and move-out walk-through with pictures
- Handle renter problems and any necessary repairs
- Consult with you about larger issues or repairs
- Let you choose the quality of repairs, maintenance, and replacement appliances (or you need to ask for this)
- Most Las Vegas property management companies provide an annual property condition video for you to verify the condition
There are eviction companies that can handle the eviction process for you. However, many people who own Las Vegas investment properties have kind hearts and believe a tenant’s sad story and false commitment to pay. Property management companies see each property as a business. Evicting a tenant who defaults on their rent ASAP could cover a year or two of management fees.
High-Rise Condominium Rental Properties
Another option for rental properties in Las Vegas, that is popular with investors, is a High-Rise Condominium. Each tower has different CCR’s regarding rental properties.
Las Vegas Strip condos can all have long-term renters for over 6 months but only 6 developments allow short-term renters. High-rise condominium towers that allow short-term rentals are Condominium-Hotels AKA a Condo-Tel.
There are only 6 condo-tels in Las Vegas but they are quite interesting. When purchased, each unit is fully furnished and equipped. You can live there, rent it out either long-term or short-term. Short-term rentals can be booked through you or through on-site property management.
Condo-tel property management charges a monthly fee to enter your property in the rental pool. When rented, the management company will also charge a percentage of the rent. The good news is that nightly rents can be up to $600 a night for a studio. Other high rise condominium towers in Las Vegas do not allow short-term rentals – and enforce this CCR.
The 6 high-rise Condo-Tel developments are often used as hotel overflow. You can rent your unit out yourself and many repeat guests contact the tower’s management themselves. These towers will have stunning Strip or city views. Fireworks are a bonus and lovely red-rocked mountain views at sunrise cannot be beaten. Downtown Las Vegas is another great view.
AirBNB In Las Vegas
Las Vegas AirBNB rental properties are not easy to get permitted without living in the property. Most of Clark County has a density limit and the density has been reached. The last time we had an AirBNB rental property buyer, we were able to find 4 rental properties for sale in Las Vegas.
Most older areas of Las Vegas have no CCR’s. Some older condos near the Las Vegas Strip allow short-term rentals too. North Las Vegas and Henderson are still working on Airbnb laws. If you are looking for short-term Las Vegas rental properties, let us look for you.
Condos As Las Vegas Rental Properties
High-Rise Condominiums are prevalent on the Strip, but Downtown Las Vegas, Summerlin, Henderson, and Lake Las Vegas also have high and mid-rise condominiums. Buying a condo near UNLV is also a great investment real estate property to consider. Every area of town has condominiums, townhouses, golf villas, and patio homes.
See our Condo-Townhouse page for more information about them. Because of the price of vacant land in the valley, higher density housing is available in many new home communities. The “Lock and Leave” lifestyle is popular for vacation homes and retirees. Condos are great for this lifestyle. Some snowbirds rent their homes for 6 months during the summer months.
Again, anyone can show property; however, we walk through a property looking for signs of trouble. We are looking for water damage, mold, cracks in the walls and ceilings, windows with broken seals, hidden stains on flooring, dry-wall issues, and things that just aren’t right. Illegal room additions are a possible problem, foundation deterioration due to poor drainage or maybe a second-story floor flexes.
We investigate why an odd pipe is sticking out of the wall while you decide if the property suits your needs. Since we are not builders, we note things for professionals to check out if you choose to consider that particular property.
See our Blog on 4 Reasons To Avoid A FSBO if you’re considering buying a house without a local Realtor. Historically, buying investment real estate in Las Vegas makes a lot of sense.
Investment Real Estate In 2021
Buying Las Vegas rental properties as a real estate investment in 2021 is a great investment. Getting a brand new home is difficult but it’s what we do. Brand new homes are a better value than resale homes right now. With minimal maintenance for 10-20 years, new construction homes are attractive.
New and resale homes can produce positive cash flow since Interest rates fluctuate around 4% for an investor. Rentals in Las Vegas are in high demand so rents are continually going up.
During the pandemic, there were many complaints on social media about landlords raising the rent by $300 or more a month. After the pandemic rent increases are $300-$900 a month. Contact us so we can keep our eyes open for you. Also, see our Blog – Tips to buy a house in 2021.
2019 and 2021 Nevada Legislature Changes
Nevada Legislature meets every 2 years. Unfortunately, the 2019 Nevada Legislature was not kind to the landlords of Nevada. The first thing in NRS 118 that they changed was to reduce the maximum late charge a landlord can charge to 5%. Another thing is that the tenant’s belongings can be released to them without payment. The 3rd thing was instead of 5 days before filing an eviction notice; it’s now 7 business days.
Due to the pandemic, the 2021 Legislature was not as focused on landlords as it would normally have been. The changes that the Board of Realtors was lobbying for will have to wait until 2023. Despite the 2019 changes, the good news is that in a perfect world, without a tenant appearing in court, they can be out of your property in under 3 weeks. Las Vegas Metropolitan Courts also have a virtual appearance option.
The Investor Protector- Kurt Grosse
Our Las Vegas Real Estate Team is unique. As Buyer’s Agents, our goal is to protect our clients. Kurt is a former Nevada Building Engineer who has been in Las Vegas Real Estate with his wife, Terri, for over 25 years. When clients of theirs walk through a property looking at the positive features, we look at the negatives. If there’s a structural red flag, Kurt will look at it before they write an offer for you.
Consider us your offensive and defensive coordinators for your Las Vegas rental properties. We do everything we can to protect you and your investment. Builders build homes quickly, and mistakes are made all the time. As your Realtors for life, if you need assistance or advice after your purchase, we are here for you.
Las Vegas Valley homes for sale can also have expansive soil problems. A “good deal” may not be a good deal. After 25 years of selling homes, reading the newspaper, and watching zoning meetings, we are also an invaluable knowledge asset for you to have on your team. Brand new homes are not perfect and every home was brand new once.
Discover the Difference
Anyone can “show property” or “fill in the blanks” on a contract. We don’t do either. As we walk a rental property in Las Vegas with you, we point out flaws and possible issues you might experience in the future. Another agent will say “Look how nice that is!” We say “That wall over there is bowed’ or maybe “see the sediment on those rocks? The backyard drainage has a problem.” What kind of agent do you want on your team?
Other Factors That Set Us Apart
- We listen and work to find the perfect property for you
- 25 Years of Knowledge of Builders and Subdivisions
- Knowledge of the city and growth
- We provide our new construction clients with a free home inspection
- Our clients receive weekly construction monitoring by Kurt as their New Construction Home is being built
- Contracts are precise and in our clients‘ best interest.
- You are educated and informed to make the best decisions possible
- WE PROTECT YOU – This is what selling real estate is about for us
The Team Approach
Because there are 2+ of us, one of us answers the phone and the other is available to show a property. As a backup, we have support team members that can also handle details. Everyone we refer you to or work with is a skilled and knowledgeable professional who will benefit you and your goals. We know Las Vegas real estate and believe that you need expert inspectors for every property.
Kurt and Terri are a perfect first layer of protection in the chain but no one can replace technology. Put us, our team, and our knowledge on your team today.
If you have any questions or are considering Las Vegas rental properties or a home for yourself in Southern Nevada, give our office a call at 702-750-7599 to talk to us directly. You can also text, send an email, or fill out the form in the footer to schedule a consultation. We will never SPAM you,
Kurt and Terri Grosse ~ Realty One Group
Las Vegas, Nevada ~ 702-750-7599 Direct Office
Protecting You and Your Las Vegas Investment