Here’s Why Everyone is Investing in Rental Properties

Written by Amanda Mears

January 12, 2017

For decades, buying a home was the ultimate goal and renting was just a means to an end. However, experts say that thought process is changing.

It’s no longer a matter of not being able to afford a house. Instead, renters are actively choosing to stay renters for longer periods of time. With that new mindset, it’s no surprise that investing in rental properties is being touted as a low-risk way to grow your income and leverage assets.

Here’s more info on why renting is so popular right now:

Cost

According to this article on Business Insider, the myth that renting is more expensive than buying has been busted. In fact, the author did a little digging and found that in high-demand markets like San Francisco, it’s over $2,500 more per month to own an entry-level home than to rent an apartment.

Renters no longer feel the pressure to buy a house immediately and instead, they are choosing to be long-term tenants (the best kind!) while they wait for the market to even out.

Credit Building

Earlier this month, USA Today posed the question: is it better to rent or buy a home?

They cited several reasons renting is smart. Among them, and one we hear often, is that renting provides an easy opportunity to build credit.

The biggest problem millennials face when trying to get a mortgage loan is that they either have no credit or bad credit. Instead of taking on a colossal interest rate and saving for a giant down payment, they’re renting and asking landlords to report their on-time rent payments to the major credit bureaus.

For more reasons why you might want to start looking at rental properties, check out this article 9 Reasons to Invest in Apartments that has been circulating around investment websites.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Related Articles

Understanding North Carolina Rental Laws

Understanding North Carolina Rental Laws

State Rules and Regulations for North Carolina Rental Properties and Landlords The vast majority of landlord-tenant and rental laws are handled at the state level. Those who own property in multiple states or renters who have recently moved to a new state should...

read more
2020 Q1 NLA Rental Industry Report

2020 Q1 NLA Rental Industry Report

In order to see the preliminary effects of COVID-19 on the rental industry, the NLA has put together a special Q1 rental industry report that looks at the impact so far. We gathered data from four major property management software providers to look at vacancy rates,...

read more
7 Productive Things to Do Before Lockdown Is Over

7 Productive Things to Do Before Lockdown Is Over

While some states in the U.S. have begun easing lockdown restrictions, many are still waiting it out inside and that means there's still a chance to do the things you’ve been putting off during the quarantine. For landlords and property owners, it’s a good time to...

read more