17 Oct Recent News Shows Rental Market is Heating Up
According to a recent survey, the number of homes occupied by renters has gone up nearly 34% over the last decade. That’s good news if you’re looking for a long-term investment (10 years or more) and have ever considered becoming a landlord.
Rents don’t show any sign of leveling off; in 2010 alone, statistics show a 12% year-over-year increase in the average rental rate. Demand continues to rise, with vacancies at record lows as more renters hit the market in search of a rental.
These factors could present a great opportunity to owners of multiple properties or empty-nesters looking to downsize. When coupled with historically low mortgage rates, this could also be a good time for prospective real estate investors to enter the market – as landlord.
For those in the market for an investment property, experts advise sticking close to home. Due to strict borrowing standards, investors are also cautioned to avoid properties with more than four units. Look for a property whose rental income will provide you with a 20% cushion – that should help you cover repairs and the cost of property management, as well as any potential vacancies.
With a little research, a rental property can present savvy real estate investors with a way to make some extra money – and add to their long-term portfolio – with little risk.