When you think of Baton Rouge, you may think of LSU football, spicy Cajun food, or the Mississippi River. But do you know that the capital of Louisiana is also a very hot market for rental property investments? Yes! Baton Rouge is not only about bayous and beignets; it is a heaven for real estate investors.
Let’s find out why Baton Rouge is the place for anyone wanting to build their rental property portfolio.
A Rental Market That’s Cooking Up Strong Demand
The rental market in Baton Rouge is strong and growing. Approximately 52% of the city’s population lives in rented houses and apartments, significantly higher than the national rate of about 35%. The city’s population structure consists of students, young professionals, and long-term tenants, guaranteeing the need for rental homes.
For instance, LSU is a large public research university with more than 37,000 students, which creates a high demand for rental homes, especially in the vicinity of the campus. Furthermore, it is not only students who need rental houses; the university’s faculty and staff and other employees also help to meet the demand for rental homes. Investing in properties near the university means there will always be a market for the houses one owns.
Affordability with a High Return as the Flavor of the Month
Baton Rouge is cheaper than most areas in the country. The current average price of a home in this area is around $250,000, while the national average is $400,000. This low entry point means that investors can buy rental properties without having to mortgage their houses, sell a kidney, or learn to wrestle alligators.
At the same time, rental yields are attractive. The average rent for a single-family home in Baton Rouge is about $1,500 per month, which provides a decent return on the investment. That’s a great deal; better than a plate of crawfish étouffée on a Friday night!
Economic Stability Guarantees Market Stability
Baton Rouge is a good investment option due to its strong and diverse economy. The city’s diversified economy depends on petrochemicals, healthcare, education, and government sectors. Some of the largest employers in the town include ExxonMobil, Our Lady of the Lake Regional Medical Center, and Louisiana State University, which create stable employment and, therefore, a stable rental market.
Baton Rouge’s economy is more like a well-seasoned gumbo: balanced, steady, and full of flavor. It is not a boom-or-bust city. This means that there are usually no long periods of vacancy and that property investors can expect a more steady flow of rental income.
The Legal Environment for Landlords
As for the landlord-friendly laws, Louisiana is one of the friendliest states in the United States, and Baton Rouge is no exception. The eviction process is relatively fast, and there are no rent control policies that can limit how much you can charge for rent. That’s music to a landlord’s ears (or maybe just the sound of rent checks cashing).
The Baton Rouge Boom: Future Growth & Development
Baton Rouge is developing fast, with new infrastructure and developments making the city more attractive to investors. The Electric Depot, a mixed-use development that includes apartments, retail, and entertainment, is restoring parts of the city into more pedestrian-friendly neighborhoods.
With plans for better public transportation and urban renewal, property values are expected to rise, so it is advised to invest even more before prices increase.
How Property Managers Help You Invest Better
Owning rental property is fun unless you get called in the middle of the night to fix a leaking tap, deal with a late-paying tenant, or manage tenants who think the concept of quiet hours is optional.
That’s where property managers come in. A good property management company can take care of tenant selection and rent collection, maintenance, and legal issues. For example, Wurth Property Management. We help ensure that your investment is as stress-free as possible and as profitable as possible.
Why Wurth PM Is the Perfect Partner for Your Baton Rouge Investment
Wurth Property Management can assist you if you are prepared to get involved in the Baton Rouge rental market. At Wurth PM, we have a professional staff who will ensure that you enjoy the benefits of property ownership with minimal or no stress.
We ensure that your rental is well-marketed, high-quality tenants are placed in the property, and all operations are well-handled to ensure that your investment remains profitable and in good condition. Let us help you navigate the Baton Rouge rental market with no problems as owning rental property shouldn’t be exhausting.
