Now Could Be a Great Time to Purchase Rental Property – With many states holding onto eviction moratoriums due to several Americans being out of work from pandemic safety measures you may have thought it a bad move to invest in rental properties. This coupled with the high rise in prices and construction costs purchasing rental property became a tough market.
Though many moratoriums have since ended not much has changed in the way of inventory or construction costs, but there are many reasons why investing in rental properties is becoming a strong market. Some say it is getting even stronger. Here are some of the reasons why you might want to consider purchasing a rental real estate investment property right now.
Low supply coupled with high home costs mean very few vacancies
A low supply and a high cost of homes can be a deterrent to purchasing real estate for the purpose of investing. These items actually can be a great signifier for a strong time to invest in rental properties, however. Some of these factors that are making investors reluctant to purchase are also keeping potential buyers from becoming homeowners. Many more people are looking to save on their housing costs by continuing to rent for now. The National Association of Realtors says that rental vacancies are at a 25 year low currently.
Average rental prices have increased
Purchasing rental properties is a bigger cost than previously but the cost of average rent prices has increased as well. In some areas, this increase in average rental prices is enough to cover the cost of increased investment dollars. According to the single-family rental index provided by CoreLogic, the US single-family rent growth tripled in December 2021 as compared to December 2020.
More technology to help with management
If money is tight and you are taking a big leap to purchase a rental property you more than likely are not in the market to hand over some of your profit to a rental property management service. This has driven some tech developers to bring more property management programs to the market.
There is a quick and growing range of what is called prop-tech products to help real estate investors more easily automate different processes of property management. Not only does this keep more money in your pocket it also helps to streamline and make certain processes of property management easier. One program called Lessen helps landlords to coordinate with the vetted contractors to get much-needed work done on properties. Becoming tech-savvy is a great means to help with keeping properties in great condition and help to collect rent on time without paying a large amount of money for others to do that work for you.
With the right real estate professional help on your side and some homework, you can still find a rental property that would be well worth your investment. With more demand for rentals from those holding off buying right now and increased rental prices it just may be one of the best investment “risks” you take.
For more information on residential and commercial real estate in Snohomish County please contact us anytime.
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