Why Somerset NJ is great for single family rentals
Updated: Dec 30, 2020
Doing property management for residential rentals all over Central New Jersey, we wind up getting a feel for what towns are investor friendly, what towns are not, what towns are good for multi-family, single family, etc. In Somerset (which is a part of Franklin Twp) we feel the town is great for single family rentals. There are some small sections of multi-family but the majority of the town is zoned for single family homes and in this article we will explain why Somerset NJ is a great town for single family rentals.
I will be honest, I love managing rental property in Somerset. You want to know why? When we list a home for rent, our phones practically smoke from all the calls. Why is that? Somerset is in a great location in Somerset County, the schools are not horrible, it's very affordable, very working class, diverse and the design of most neighborhoods allows for a nice sized property with a single family home on it. Most of the neighborhoods look like the American dream. This leads to a lot of interest from people.
I alluded to this earlier but the location is very good. The town is right next to Interstate 287, 10 minutes from Rt 18 and Route 1. Next door in New Brunswick is a train station to NYC. Somerset is also working hard on building up commercial zones into walkable downtowns and it's a very popular town for industrial and healthcare jobs. Those people need a place to live don't forget and they usually have big families that need a nice single family home.
Remember, it's Somerset. You are in Somerset County. There is not an inner city albatross that forces every other town to pay more in property taxes like there is in a lot of NJ counties. The taxes are cheap in Somerset (for NJ!), this means your ROI is better, rent is more affordable, it all trickles downhill. We find that 3-4 bedroom single family homes can rent anywhere from $2000-$3000 a month in this town. Yes, that's a wide and unhelpful range but what it demonstrates is the various neighborhoods Somerset offers and how quickly the median income can change. There are some absolutely gorgeous homes in Somerset that will have you questioning if you're still in the same town.
You will see as you drive through various neighborhoods but Somerset did a pretty nice job with Zoning the town. Most of the neighborhoods with single family homes have wide streets, nicely designed property lines and ranch style single family houses, or some neighborhoods have split level single family homes or center hall colonial, etc. The point is most of the neighborhoods have uniform looking homes which really makes one feel like they're living in suburbia. This adds to the demand of people renting your single family house in Somerset and this is why we enjoy managing rental property in the town.
In conclusion, we are big fans of managing rental property in Somerset NJ. There are lots of positives that far outweigh any negatives. The houses are affordable, the rental demand is strong and the jobs are plentiful. If you weren't considering this town for your rental portfolio that needs to change. If you need help with looking for rentals in the town or managing your rental property, please contact us and we'd be happy to answer any questions you have!
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