I am in the process of evaluating 2 properties 1 which is on the street vs a property on a culdesac. In my view, culdesac might attract tenants more than regular ones with kids having more space to play. What do you guys think about pros and cons of culdesac properties in terms of maintenance and rental income?
Commercial Real Estate Broker · memphis, TN · Member since 2017 · 60 posts · 24 votes
6y
Cul-de-sac properties definitely have less street noise and typically few outsiders driving around. I'm not sure how much more a tenant would pay for that. In some areas, pricing overrides exterior amenities. However, parking can be an big issue in a cul-de-sac unless there is enough paved parking area onsite. I have had to put a limitation in our leases on how many cars the tenant(s) can have even if house is on a regular street and create a restriction on not parking on the lawn or unpaved areas and can't park construction trailers onside unless in back yard. If they do park in non-paved areas of front yard or on the street and code enforcement sends us a notice and a potential fine or environmental court appearance, the tenant has to pay for all costs to satisfy the code issue. If they don't pay, it creates a lease default that they need to remedy with us. It's amazing how quickly they find the money to not lose their lease since our properties are typically a little less than market priced and we treat our tenants right. We self manage all of our properties.