Most of us in the property management field already know that, despite occasional risks and business challenges, single-family rentals are good investments. But with the market uncertainties that are now appearing, are these still the right assets to have in your portfolio? The sentiment of high-net-worth investors suggests a resounding “yes.” According to a recent survey by financial services company Millennium Trust, a staggering 90% of people are inclined to invest in alternative assets of which real estate is the top choice.
Single-family rental properties are at the top of real estate and of interest to a whopping 73% of high-net-worth real estate investors, as stated in the Millennium trust study. Some trends believed to be causing the interest (and continued growth) include downsizing baby boomers, as well as millennials choosing to rent longer so they can keep their options open.
What does the future hold? Some experts believe, in the long term, 13 million additional homes will hit the market by the year 2030, adding to already existing 16 million assets. And in a recent US News and World Report article, Quinn Palomino, co-founder and principal at Virtua Partners in San Diego, believes that the near future is bright.
In the article, Palomino states “demand is high, and supply is still constrained, particularly for entry-level housing. We anticipate rent increases will outpace the overall commercial real estate market, landing in the 5 to 7 percent range.” She also believes that single-family rentals will beat the stock market in 2019 due to low rates and low unemployment.
The key is to take advantage of good market conditions—not just in the short-term, but to build your business and prepare it for the extended future. Make sure you have the right tools to help take your business to the next level, keeping owners and tenants happy along the way. Learn how Propertyware can help.