OfflineWith analysts predicting that America will be a nation of renters for some time to come, more homes foreclosing, and first time homebuyers an endangered species, it’s clear that there is a lot of demand for rental homes. A story this week on the Web examined this trend from a Seattle, WA real estate agent’s perspective.
This real estate agent was suffering like many with a tough market for buyers and sellers. She chose to switch her business to property rental management. The decision was a great one for her, as she says “In the past two months, my business probably came close to tripling.” Rentals are soaring in the Seattle area, and this is a trend showing up in many areas of the country.
Though this agent had been in the real estate business working with buyers and sellers for 15 years, the switch was an easy one for her. One example of the demand and the strength of her new enterprise is a 2 bedroom home that went vacant in August. Before the lease was up, she increased the rent by $200 to $1,900 per month. She still had her pick of applicants, stating that “I could have rented it 10 times over.”
The surge in websites like Zillow.com and Trulia.com for buyers and sellers came with the domination of the Internet in the real estate business. However, with the housing and mortgage crash beginning in 2007, buyers have become scarce, and sellers are generally depressed by what they see on the Web. While prices are at bargain basement levels and interest rates are at historic lows, people still can’t buy a home even if they want to. Zillow has added rental information to the site.
Higher down payment requirements and excruciating credit examination are combining to keep home buyers out of the market. However, the population is still growing, and family units are still in need of housing. Membership in the National Association of Residential Property Managers has doubled in five years to a record 3400 members.
These type of news stories are becoming more common, and real estate investors should be encouraged by the movement of demand from buying to renting.
WOW! Interesting, very interesting. Let's buy 'em all up and rent 'em all out!!!
The DG Army! Ha!
Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
• "To every thing there is a season, & a time to every purpose..." ~Ecclesiastes 3:1-8
• "Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy!" ~Dale Carnegie
• "Begin, be bold, and venture to be wise." ~Horace
• "Never, never, never give up." ~Winston Churchill
• "Whatever you do, or dream you can, begin it. Boldness has genius and power and magic in it." ~Johann Wolfgang von Goethe
that there are more property managers out there? it could be good news for investors who want to buy and hold, IF these property managers will do a good job managing the properties, and not just hike up the rents and in turn have a greater turnaround of tenants; even a one month vacancy (to get property cleaned up, etc.) could mean a $1,700 loss of income. With a $200 increase it could take over 8 months to recover that loss.
If you will rent your properties, find a reliable, experienced property manager.
Learning and progressing every day,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...