Are you looking to invest in Knoxville real estate? Real estate investments are a great opportunity to earn a passive income. Rental property investments allow you to profit from monthly rental income, and benefit from property appreciation rates.
But it’s important to keep in mind that not all real estate markets are equal. That’s why proper research is necessary. You want to find an area with a solid economy, job market, high quality of life, many local attractions, and a healthy rental market.
Knoxville is a great choice for rental investments as it checks off many of these boxes. For interested real estate investors, Knoxville real estate can be lucrative.
In this article by Keyrenter Knoxville, we’ll go over the top reasons to buy investment property in Knoxville, TN. You’ll learn about the major factors that make this area profitable for investments. Along with our top investment tips, you’ll be all set to begin your Knoxville investment journey.
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Why Invest in Knoxville Rental Property?
Sitting on the banks of the Tennessee River and situated at the foothills of the Great Smoky Mountains National Park, Knoxville is the third-largest city in Tennessee. With a sense of small-town charm, this city offers all the amenities you expect to find in a big city.
If you’re still not sure whether this is the right fit for you, here are seven great reasons to invest in rental property in Knoxville, TN!
1. Strong Local Economy
One factor that makes Knoxville, TN, a good area to invest in is its strong, stable economy. There are thousands of businesses in this city, both big and small.
Some of the major companies headquartered in Knoxville include AC Entertainment, Brunswick Boats, Discovery Networks, Clayton Homes & Vanderbilt Mortgage, Denso Manufacturing, Jewelry, Regal Cinemas, and DeRoyal Industries.
This, along with its stable job market, is why Knoxville has been named one of the fastest-growing cities in the nation. The strength of the Knoxville economy creates a favorable climate for real estate investors.
2. Growing Population
Knoxville is the third most populated city in the state of Tennessee. Its small-town feel attracts thousands of newcomers every year. So, this small city is expected to grow even more in the following years.
From an investment point of view, population metrics are crucial. A growing population can predict a demand for more rental properties. It can also improve the local economy. This is another point where Knoxville shows great potential for investors.
3. Landlord-Friendly Laws
The rental laws in Tennessee tend to be landlord friendly. When it comes to laws regulating what you can do as a property owner, you’ll have to face less pressure than other investors in other states.
For example, landlords have the right to evict tenants for non-payment of rent, and the eviction process is generally considered to be quick and efficient. Additionally, Tennessee has few rent control policies and there is no state income tax, which is ideal for real estate investors looking to maximize their profits.
4. Affordable Real Estate
After all this talk about a booming economy, it may come as a surprise to learn that there are great property deals available on the local market. Compared to other metropolitan areas, Knoxville’s housing market is relatively affordable. Because of this, you may get more for your money in Knoxville than in other comparable areas.
5. Hot Real Estate Market
The real estate market in Knoxville is growing. Homes are appreciating nicely for property owners — the annual growth of home values has been thriving in the last few years. Also, the vacancy rate in Knoxville is lower than the national average.
This means that landlords have a good chance of finding quality tenants quickly. This can help reduce tenant turnover rates and maintain a steady rental income in the long run.
Plus, there are many great areas to invest in Knoxville, including Oakwood, Oak Ridge, and Downtown Knoxville.
6. Good Local Education
The Knox County public school system oversees many schools. This includes elementary, middle, and high schools with a higher-than-average graduation rate. Among Knoxville’s public schools, there are also multiple adult centers, magnet schools, and a STEM academy.
There are also many private educational opportunities in this great southern city.
Not to mention, Knoxville is home to The University of Tennessee. This institution attracts a large amount of students every year, many of whom decide to stay in the city after graduation. There are also many other colleges, trade schools, and adult education programs available in this city.
7. Plenty of Local Attractions
Having things to do is key to making sure an area attracts renters year-round. Knoxville has many sights, attractions, and activities that help attract more people and improve residents’ quality of life.
Here are just a few things to do in Knoxville:
- Visit Knoxville’s Market Square
- Walk around World’s Fair Park
- Explore Ijams Nature Center
- Visit the Knoxville Zoo
- Learn more about this city’s rich history in James White’s Fort or the Museum of East Tennessee History
- Take a walk around the Knoxville Botanical Garden and Arboretum
- Get a great view of the city in the Sunsphere
Knoxville offers a good quality of life for its residents and a great opportunity for real estate investors. Reasons to invest in this city include its affordable real estate market, low vacancy rate for rental properties, great schooling system, and growing population.
If this is your first time investing in real estate, hiring professional help may be in your best interests. It can smooth the process for you and help you avoid common pitfalls. If you’re ready to start investing, contact Keyrenter Knoxville!