The rental gods are smiling
This is a great time to be a landlord. There is so much doom and gloom about the subprime mortgage fallout (although lenders are doing what they can to survive) that we shall focus on the positive today. The good news is that landlords are quite fat and happy right now. As foreclosures abound and mortgage lenders circle the wagons, the rental market has surged.
Yes, in most markets, it’s a great time to own rental property — but that doesn’t mean you should run out and buy some cheap property on the shadier fringes of downtown just for the heck of it. Thanks to author Lisa Moren Bromma for taking the time in yesterday’s post to highlight just how much work is involved in landlording.
However, Lisa also had some great tips for how to do it right, for those who have the time and can find the money. She mentioned open houses as a fast-track to finding good renters willing to pay top dollar.
One of the top complaints of landlords has historically been the trouble they must endure with bad-credit renters. Granted, many of those entering the rental market have been foreclosed upon, meaning their credit is tarnished. However, at least landlords have a lot more demand for their product and a plethora of people from which to choose.
Of course, with more demand comes less supply and that means higher prices. Las Vegas is seeing it, where rental rates have gone up nearly $100 since January. Manhattan is seeing it, where second quarter reports showed rental rates nearly nine percent higher than a year earlier.
Congratulations, landlords. Brother, can you spare a dime? If you’ve got the property, hold on to it. Forget flipping. Now more than ever before, love the one you’re with.
