It is a good time to be a landlord. The rental market is a strong one, a by-product of the nation’s housing bust that has made home ownership harder for many. A great deal of would-be home buyers are still standing on the sidelines waiting for better economic news, better employment rates, and the ability to acquire a loan. These are the renters that have created a demand for housing that has filled up rental units and increased the number renters significantly over recent years. This increase in renters is great for landlords.
The age old theory of supply and demand is making it possible for many landlords to raise rents. There is more competition, and while a slow economic recovery does mean that landlords can’t raise rents too high, they can fill their units and charge more than they have when their units are located in competitive markets.
It’s a good time to be a landlord. Affordability levels are at generational highs, mortgage rates are low, and inventories are high. For those who can afford to buy with cash or acquire loans to do so, buying rental property could be a great investment. While being a landlord is not without its headaches, it certainly is an investment that has the opportunity to pay for itself over time. This could be a great time to consider becoming a landlord.