Do you have a real estate IRA and are looking to rent it out? Maybe you already have a real estate IRA and are renting it out. Either way some new research done by Zillow can shed some light on the renting market.
Currently, rent has been on the rise at pretty rapid rates and is turning into an expensive proposition. Nationally renters are spending more of their income on rent than they have in the past 30 years. Zillow measured how much of a household’s income is spent on rent (not including utilities and other costs).
According to Zillow, renters across the nation are spending almost 19 percent more of their income on rent than during the pre-bubble period between 1985 and 2000.
The current fraction of income spent on rent across the nation is 29.5 percent. Historically renters have spent 24.9 percent of their income on rent. If you would like to check out which states are spending the biggest percent of their income on rent check out this research done by Zillow.
One thing that I thought was quite interesting by this research is that since 2000 the share of income that households must devote to paying rent has dramatically outpaced the growth in income over the same period. The median household income has increased 25.4 percent since 2000 while rents have increased over 52.8 percent.
How can we apply this knowledge to our real estate IRA? One major thought comes to my mind, stay competitive! If you haven’t rented out your real estate IRA rental property yet then take this time to get ahead of the competition. If you have already rented out your rental property this is a great time to do a checkup on how things are going and to make sure you position yourself for great rental income for years to come.
How to Stay Competitive
As renting is getting more and more expensive staying competitive is going to be crucial. The following are a few things to look at to stay competitive:
- Rent Price– Is the current price you are asking competitive and if you are looking to put a monthly rent price on your real estate ira make sure you keep it competitive. If you are thinking about making renters pay higher than average your home better be better than average and even then in order to keep renters for the long haul you might wan to think about being around average or lower than average. Use RentOMeter to help you figure out how much you should rent your place out for.
- Keep It Updated and Fresh– Your rental property doesn’t have to be decked out in the latest gadgets but there are a few things you can do to get more out of your rental property. Follow these few tips to maximize your rental property income Get The Most Out Of Your Real Estate IRA Investment.
These are just a few tips to make sure that the property in your real estate IRA is going to bring you steady income for a great retirement.
If you are still considering setting up a real estate IRA in order to take advantage of the tax benefits that come with retirement accounts while also bringing in some great rental money for retirement we can help.
Author: Nick Barker