The Recipe is Right for Home Rentals!
By Mary Lindner, CPM® Realtor®
More single-family homes are becoming rentals these days. This is no surprise because the housing inventory has experienced a tremendous increase over the past few years. With the huge amount of foreclosures flooding every market across the country, market values have fallen and many home owners are unable to sell their homes for what they owe on it. Some home owners are fortunate enough to be able to afford to rent out their homes when they have to relocate. Other home owners have not been so fortunate.
Have you thought about where all of the homeowners who had to let their homes go into foreclosure, ended up? You got it! They are the tenants who are now renting houses in almost every neighborhood! Home rentals have become very popular and will continue to increase in every market. As many home owners are unable to sell their homes because of so much competition, renting is the answer to help them “stop the bleeding.”
As the mortgage industry continues to tighten their requirements on loan qualifications, less people are able to be approved for a mortgage loan. Therefore, they will rent houses if they do not care for the apartment lifestyle. As always, when the demand goes up the price will go up, meaning higher rental rates. With home values going down and rent going up, the recipe is right for investors to buy investment properties! Get out and wheel and deal and create your nest egg for the future!
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