It’s a great time to be a DIY landlord. If you’re not currently investing in rental properties, now is the time to start.
In this article, we’ll explain why it’s a great market to buy a rental, and how you can manage your rental property yourself in less time.
The Rental Market is Booming
CNBC recently reported, “more people are renting than at any other point in the past 50 years.”
In the census data below, you’ll see that the percentage of Americans living in rentals has increased dramatically since 2003.
The Wall Street Journal recently explained that rental demand is booming because people “no longer see owning a home as an essential part of the American dream,” and they realize “houses are not necessarily the best places to store wealth.”
As a result, “the homeownership rate is hovering around a five-decade low.”
What does this mean for rental property owners?
If you buy and manage your rental property, you’ll find that this is a great market to be in. You’ll almost never have a rental vacancy (where you lose rental income), you’ll have more interested tenants who you can selectively screen, and you can possibly raise the rent to match rising demand.
It’s Easier to Borrow and Interest Rates are Historically Low
Since the Great Recession ended in 2009, many banks are lending again. With a loan, you can minimize the amount of out-of-pocket cash you put into a property, which helps you leverage your money to maximize your ROI.
To make it better, interest rates are low:
With low-interest payments, you can spend money on something other than your loan payment.
It’s Easy to Research Investment Opportunities
You can research neighborhoods, rental market data, and rental properties all online. Any information you need is available at your fingertips whether you’re at home, work, or traveling.
Similarly, there are education sites that are devoted to giving you excellent advice on owning and managing a rental property. If you’re unsure how to be a landlord, you can read guides to learn every step of the process. This information is free and you can read it anytime, anywhere.
More Owners are Managing Their Rentals Themselves
Previously, landlords had two options:
- Hire a property manager who kept roughly 10% of your rent price
- Manage your rentals yourself by manually completing paperwork and stringing together different tools
Neither of these options were good. But now, small rental property owners can manage their properties themselves online without the headaches, or having to hire a manager.
According to recent U.S Census data, 55% of the rental units in America are owner-managed units. In other words, DIY landlords are now the majority of the market.
Online Tools Make it Easy to Manage Your Rental Yourself
Tasks that used to be done by hand are easier when done online. For example, you can collect rent online and allow your tenants to set up auto-pay, so you never have to worry about a late check.
An online tool, like Rentalutions, allows you to save time and headaches while you manage your rental yourself. And by managing it yourself, you’ll be able to keep all of your rental income that you earned.
If you’re looking to manage your rental property online, sign up for a free account with Avail. You can find tenants, screen tenants, sign leases, collect rent, and manage maintenance all in one place.