Oakland has experienced a bit of a renaissance over the last five years. While it once took a backseat to some of California’s more glamorous Bay Area cities, Oakland has caught the attention of new residents, businesses, and investors alike. It has proven to be not only a great place to live, but it offers a stable economic environment which appeals to real estate investors and the corporate sector.
Because of their environmentally sound policies and economic incentives, Oakland has proven to be a model city offering a high-quality of life. The locals take pride in their sports teams, lifestyle choices, and culturally-friendly art deco city backdrop. Visitors and residents alike rave about the local dining experiences, exceptional recreational choices, and the hip music and entertainment vibe.
If you are looking for an area that holds its own in terms of recreation, business, and community but still provides easy access to places like San Francisco and Silicon Valley, Oakland is where you want to be.
Oakland is a large and diverse city with plenty to offer its residents including stunning bay views, over 100 lush city parks and green open spaces, a balmy Mediterranean climate, access to an extraordinary variety of recreational activities, and a centralized Bay Area location. It is ranked as the eighth-largest city in California with a population of 420,000. Because of the availability of quality employment within skilled sectors, the mean household income of the city is over $71,000 with more than 21 percent of Oakland’s households reporting income in excess of $100,000. More than one-third of all Oakland residents have a college degree which is twice the national average.
The lower living costs combined with the convenient Bay Area location appeals to residents. What is more, Oakland is one of the most walkable cities in the U.S. It is a biker’s paradise. The public transportation systems are well maintained and in convenient locations. There is also a ferry from Jack London Square which takes you over to San Francisco. Though Oakland is a big city, the San Francisco Financial District is only an 11-minute train ride away from downtown Oakland. Talk about centrally located!
Popular Mechanics ranked Oakland as the third best startup city in America. It was also named among the 15 hottest American cities for 2015 by Business Insider. Oakland features a diverse and stabilized economy which has fueled a population increase, especially among well-educated and skilled workers. Our city’s Gross Regional Product exceeds $200 billion annually.
But let’s be honest, Oakland has gotten a pretty bad rap in the past. Not long ago, the City of Oakland was called “the Detroit of the West”- not the best label to have. But in less than a decade, the city has turned themselves around. They have expanded their police force and implemented very effective crime-stopping strategies such as the Ceasefire program which has reduced shootings and homicides by 38 percent in less than four years. The city has also invested heavily into revitalizing the downtown area and in improving public transportation.
The City of Oakland offers businesses affordability, investment incentives, cultural amenities, a geographically centralized location, all in addition to their robust economy. The industry sectors that have gravitated to Oakland include health care, food processing, tech, arts, transportation and light manufacturing.
California is a front-runner when it comes to creating, encouraging and endorsing environmentally friendly policies. The City of Oakland is following suit. Oakland is proud to feature over 130 certified Green Businesses. They work along with the East Bay Energy Watch to provide innovative energy efficiency solutions through no-cost evaluations and reduced-price energy-efficient equipment.
The City of Oakland’s Community and Economic Development Agency helps to make creating and running a successful business easy. The City offers architectural assistance, business grants, tax incentives and lending assistance. Since 1999, more than 10,000 new jobs have been created within Oakland and it is projected that an additional 50,000 new jobs will be added over the next 25 years.
Some forward-thinking companies such as the music-streaming pioneer Pandora, the health care giant Kaiser Permanente, and the mover and shaker Uber have seen the economic potential that Oakland has to offer and have set up shop here. The availability of good jobs requiring highly skilled professionals provides investors with an outstanding pool of quality tenants. Oakland has more than 300 high-tech companies. In fact, there are more technology jobs within the Oakland Metro Area than in San Francisco.
Real estate investors in California know that there are plenty of “hot” markets. They also know that many of these markets, though appreciating above the national average rate, are offering below average capitalization rates and meager cash flows. The City of Oakland appeals to many investors as they are finding it to be an exceptional market for buying and renting out homes. Property prices and living costs are lower than neighboring Bay Area communities.
If you have ever visited the Bay Area, including Oakland, you no doubt noticed the unique variety of housing choices, including cute bungalows, elegantly restored Victorians, modern multi-million dollar estates, and even shared-space communal living arrangements. While most of the quality housing choices are priced out of many budgets in the San Francisco area, similar properties in Oakland remain reasonably priced, at least for now. This has drawn renters out of San Francisco and into Oakland, fueling a high rental demand and above-average investment returns.
The Oakland Metro Area also features a high concentration of some of the finest centers for higher learning including the University of California-Berkeley, California State University-East Bay, Patten University, the California College of the Arts, and much more. The high demand for student housing creates an investor’s paradise.
If you already have a property in Oakland, you’re well-positioned to rent it out and watch your asset increase in value. If you haven’t purchased anything yet, but you’re thinking about investing, now is the time to buy. You’ll find that prices are still reasonable, especially in the most rentable neighborhoods. The overflow of real estate from neighboring cities like San Jose is driving up values. The Oakland market is also experiencing its share of new construction which is providing investors with diverse opportunities.
Buying rental property in Oakland will position yourself to benefit from property appreciation, low vacancy rates, and above average capitalization rates. What is more, your tenants will love the affordable rents, revitalized neighborhoods, and the close proximity to the rest of the Bay Area. With enough experience, you can even create property that appeals to a shared set of values, such as co-living communities and other forms of intentional communities. When you want to invest in a city with a lot of potential, you should consider Oakland.
Investing in rental properties in Oakland is only the first step. In order to create a profitable investment portfolio, effective management is critical. That is where Oakland co-living property management companies can help. Because they work in the real estate and rental market on a daily basis, they are in an advantageous position to make sure that the rental properties that they manage in Oakland are at market-derived rental rates.
A capable property management company, however, must do more than find you a tenant and rent out your properties. Property managers must also be skilled in dealing with tenant concerns, payment issues, and repairs. They must also be able to maintain accurate financial records and ensure that all invoices relating to your property are paid on time. There is more, however, that a skilled Oakland property management company should offer their investors. They must have the experience to know how to increase cash flow, decrease expenses and build net worth. While most property management companies can find you a tenant and hire a plumber to fix a leak, not all can guarantee that they will preserve the value of your rental property.
Our team at Prime Property Group, Inc. is ready to help you find a home, a tenant, and a strategy for making the most out of your Oakland investment. We pride ourselves in providing our clients quality full-service property management. We are happy to free you from the stress of caring for the day-to-day management of your rental properties. Our highly trained and skilled property management team can oversee the complete management of your investment properties – from locating quality tenants; to improving market value through maintenance and careful renovation; all within a predetermined budget and market researched rental rates. We utilize modern technology where possible while valuing one-on-one personal interaction.
Contact us, and we’ll tell you how we can be your Oakland property management solution.