Why Now Is The Best Time To Become A Landlord
If you are looking for a new career, or perhaps just a side hustle, investing in rental properties could be the perfect way to go.
Consider the following reasons why now is a better time than ever to become a landlord.
The Market Demands It
One of the reasons why 2018 is an excellent time to become a landlord is due to the steady growth of the rental market. With millennials leaving college and becoming heads of households, the demand for rentals is increasing. According to Pew Research, of an estimated 45.9 million renting households, millennials headed up 18.4 million. Gen Xers and baby boomers each headed 12.9 million and 10.4 million, respectively. There are answers left to be found for why so many millennials rent, but the same study by Pew Research points to a few factors such as higher poverty rates among millennials and their delay in getting married.
While millennials might be fueling a large portion of the rental market, the growth is across the board. According to the 2017 America’s Rental Housing report (download required) by the Joint Center for Housing Studies (JCHS) of Harvard University, “The number of renter households will increase by nearly 500,000 annually over the ten years from 2015 to 2025.”
With the normalization of renting as a long-term housing solution, it is the perfect time for who are able to invest in real estate to do so. By purchasing a rental property in any of the strong markets across the nation, you can take advantage of this continuing trend.
Rental Properties Provide Longevity
When it comes to investing in a side hustle and potentially a full-time gig, one of the first questions you should ask is, “What is the longevity of this investment?”
Real estate has long been touted as one of the most sustainable investments around. Not only can you create a passive cash flow from rental properties, your investment will also have a great potential to increase in value over time.
Not only will a house and land both increase in value over the years, they will also provide you with a tangible asset. In addition, you can also use your property to take part in a variety of tax deductions.
For these reasons, rental properties are truly one of the best choices for sustainable investment.
Technology Equips You To Self-Manage
Not only are landlords entering a golden market in terms of demand, they are also entering a time when landlording has never been easier. With the advent of technologies related to landlording, managing a property can be done by almost anyone.
Before, renting out a property was a time-consuming and tedious process. From listing the property in local newspapers to gathering paper applications and manually screening tenants, being a landlord was no easy task. This is why, for many, opting to hand over their rental to a property manager was the best business decision. However, hiring a property manager also ate into profits.
The good news is that with the use of technology, managing properties is much simpler than before. From marketing through websites like Craigslist to accepting online rental applications, being a landlord is far less complex than it once was. Technology also allows for landlords to manage their properties much more easily while remaining mobile. This makes landlording more viable as a side hustle, as you are not tied to a desk or office in order to keep track of things.
If you are looking for an investment, now is the perfect time to become a landlord and take advantage of the booming market, technological advances and longevity of real estate investments.
Source: forbes.com
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