Given the ongoing abundance of foreclosures, and prevalence of record low interest rates, more investors are acquiring rental property as an alternative to playing the stock market. With an understanding of the rental market and its potential, these investors are capitalizing on the opportunity to command elevated rental rates and maintain occupancy in their properties.
The existence of such low interest rates, in fact, means that these same investors often find themselves competing over property claims. Tremendous bargains are available for those who have the means to acquire them, enabling savvy investors to allow renters to cover their monthly payments. In turn, this frequently frees these same investors to consider obtaining even more.
It is widely known that the Phoenix area ranks among those metropolitan areas that were hardest hit by the real estate crash. Among the considerations involved in this transition and its impact is the fact that former homeowners have found themselves having difficulties locating pet-friendly rentals. This is particularly challenging for owners of larger pets.
As a result, investors in the Phoenix area have been focusing on purchasing single family homes, as opposed to multi-family dwellings. Whether their tenants are relocated military families, or ousted former homeowners who are temporarily down on their luck, the facts suggest that these tenants with larger pets and families are likely to remain in that rental for an extended term.
Many investors are finding that, once they begin to amass multiple properties, they prefer not to be burdened with the details of managing the showings, background checks, lease agreements, maintenance calls, rent collection, and other related requirements that are a part of rental property ownership. Instead, they find experienced property management teams to handle these ongoing monthly tasks. They then discover that they can offload the stress, and recover a substantial amount of their own valuable time, in exchange for a reasonable monthly fee.
In truth, even though rental properties are in high demand, there is no guarantee that the most qualified renters will land on the doorstep ready to sign an agreement. Finding and keeping renters who can be trusted to maintain the property, and pay as promised, takes work. Outsourcing these responsibilities to a team of professionals is worth the modest investment.
It is also wise to keep in mind that an unoccupied property invites trouble. Security breaches, including vandalism, can result in costly and time-consuming dealings with insurance companies and contractors. Such problematic circumstances also further delay the opportunity for paying tenants to move-in.
Acting on the record low interest rates, and securing rental properties, may indeed be the best of all the available investment options. Protecting that investment by involving expert teams of property managers that will keep the properties rented and secure is simply a logical conclusion.