Investing in real estate requires a good understanding of the property market of that particular area. The real estate market can significantly influence property values in the area and this would affect the performance of your investment. Knowing the real estate market beforehand puts you in a better position when it comes to property-related decision-making.
Ogden, Utah is highly rated as a residential area, targeted by individuals and households. What makes this city stand out? Alliance Property Management will be taking a look at some of the features of the Ogden real estate market and why investing in it may be a good idea.
The Landlord Friendly Real Estate Legislations
The laws relating to rental property investment in Utah are relatively friendly compared to other states such as Arizona and California. Rental property legislation in Utah can be favorable on aspects such as rental deposits, repairs, and the absence of rent control legislation.
The landlords in Utah are not required to produce receipts when rental payments are made nor to pay interest on deposits. There is also no limit on the late fees imposed on tenants, but the fee must be included in the lease agreement.
Tenants in Ogden properties are also required to pay rent on a premise even when repairs are necessary. If the repairs are however considered essential (such as heating systems), a tenant may break the lease.
The Tourism Market in Ogden
Ogden, UT enjoys a significant number of tourists throughout the year. It provides close proximity to three world-class ski resorts and it is known for hiking and biking during the summer. The number of tourists contributes to the demand for short-term rentals.
To cater to the demand, the city has allowed short-term rentals in commercial zones. Short-term rentals are also permitted in single-family residential areas. However, certain prerequisites need to be met such as having a business license for these properties and having an emergency response time of less than 30 minutes.
The Geographical Features
The geographic nature of Ogden, UT is predominantly of a mountainous area. The implication of this is a limited number of sites for construction. The area also borders the Great Salt Lake to the west and several national parks to the east.
Considering the limited number of suitable building sites and the desirability of these geographic features, the prices of properties in the Ogden real estate market will rise indefinitely.
The Affordability of the Real Estate Market
The real estate market in Ogden, UT is relatively affordable compared to other places such as Salt Lake City. This explains why a large number of people move from Salt Lake to Ogden.
The prices of homes have been growing continuously throughout 2019 and 2020. This upward trend has been consistent into 2022 and it is mainly attributed to the influx of people from neighboring cities searching for a more affordable place to live.
The Return on Investment for Ogden Real Estate
Rental properties in Ogden provide landlords and investors with a healthy return on investment. The rental market largely benefits from a large number of tourists that visit Ogden throughout the year and the students from Utah State University.
The large population and the tourism in Ogden ensure that real estate investors gain a steady cash flow from their rental properties.
Ogden’s Quality of Life
The quality of life provided by Ogden, UT tends to attract many people from the neighboring suburbs and cities. Ogden is a place filled with recreational activities such as skiing, hiking, and biking. The mountains and national parks also make it an attractive place for nature lovers.
The city is known for its walkability and bikeability. This means that you can easily access most areas of the city without having to rely on a car. It’s no wonder that Ogden was ranked so high as one of the most livable cities in the country.
Ogden’s Growing Economy
Though a significant percentage of people move to Ogden for affordable housing or to study, a decent number of people also migrate for work. Ogden offers a variety of well-paying jobs from different sectors such as IT, aerospace, manufacturing industries, and the civil service.
The employment rate in the state of Utah has grown by as much as 3% annually, making places like Ogden a good place to live for people seeking employment.
The Student Population in the City
The Utah State University has a population of nearly 30,000 students; of which an estimated ten thousand commute to campus every day. With a large number of students coming from out of state, there is a great demand for real estate investment to cater to their accommodation.
The Demographic Factors
The average family in Ogden tend to have about three children. This is above the average rate in the country of between 1 and 2 children. This means that the average population in the area will keep rising in the years to come.
Demographic factors tend to fuel the demand for real estate investment property because the growing population needs a place to live. Ogden, UT is therefore likely to see a rise in the price of housing in the near future.
The Tax Climate in Utah
The state of Utah has a relatively low tax rate, ranked in the eighth position in the country for the lowest state business taxation rates. The property tax rate in the state is also far below the national average at 0.6 percent with the latter being 1.1 percent. This reduces the cost of real estate transactions in the market and makes it an attractive investment.
Bottom Line
From an investor’s perspective, the real estate market in Ogden, UT has the potential of providing healthy returns for both short and long-term rentals. The growth in population, coupled with the limited building sites will drive up the residential property prices in the coming years.
The favorable tax rates and rental property legislation make Ogden, UT ideal for real estate investment. If you’re looking to invest in the Ogden real estate market, you may need a property management firm that’s familiar with the market as well as the local and state legislation.
At Alliance Property Management, we specialize in caring for Ogden rental properties and implement strategies that enhance the property values each year. We have the necessary experience to cater to your property management needs and help you maximize your return on investment.
