Entering the real estate market is a big leap, but it’s undoubtedly a worthwhile and lucrative business. You don’t necessarily have to own property to be a part of it, and here’s why.
Real estate business is in high demand, so you don’t have to worry about ever going out of business. Studies have shown that there are more than 113 million renters across the United States alone, far more than there are landlords, who only come up to about 23 million. What’s more, there’s a vast difference between how many renters and landlords enter the market per year: 2,600 as opposed to 540. Chances are, you won’t have any trouble finding clients.
Here are four reasons why property management is on the rise and doesn’t seem to be slowing down any time soon. After you’ve read them, we’re certain you could find yourself a niche so that you too could take advantage of it!
1. Statistics for Rent Prices Are Looking Good
You might be tempted to think that because of today’s rather confusing economy, renting prices have fluctuated quite a lot over the past several years. But that couldn’t be further from the truth. Even the 2007 recession hasn’t stopped them from rising. In fact, data shows that since 1990, rents have continuously increased.
Then there’s the other side of the coin. For-sale prices have not shared the same benefits. Those have been fluctuating, so flipping property has not been quite as profitable as many would hope.
It’s essentially far less risky to rent than to buy a house or an apartment, fix it up and sell it.
2. Nearly a Third of Occupied Houses Are Rentals
Owner-occupied houses only add up to 56% of housing. That’s a pretty big number on its own, sure, but rented properties come at around 31.5%. It’s becoming increasingly clear that more people are interested in renting a place at some point in their lives, and it all makes sense. Younger people don’t necessarily have the means to buy their own properties, especially if they’re focusing on their studies. Most young adults also prefer to save up money for a place of their own while renting.
At the end of the day, the gap between owner-occupied and rentals is growing smaller. The more individuals want to rent, the more this opens the market for new landlords or even property managers.
3. Management Is Made Easier with the Latest Tech
If you’re tech-savvy, this might all be amazing news! With rented property numbers going through the roof, the need for efficient ways of communication, management apps, programs and maintenance for it all has risen as well. Landlords and property managers alike shouldn’t have to deal with old-style pen-and-paper organization, not when the market is so saturated.
Keeping track of several houses or apartments all at once can be really stressful, so technology that could help make things easier is really important. There are services out there that could organize portfolios, schedule meetings or cleanings, streamline communications between all parties (renters, managers, owners) and much more.
It’s all a never-ending cycle, so it’s no wonder that new technologies that make life that much easier have helped the market become that it is today.
4. The Hotel Industry Is Losing Ground
The hotel industry is not going out of business, as some sources have claimed some several years ago. But it does seem to have taken quite a hit, with more and more vacationers picking Airbnbs over traditional lodging.
If you live in an area that gets a ton of seasonal tourists but you don’t want like the idea of long-staying renters, you should consider signing up with the app. After all, 2 million people stay in an Airbnb every night. You’re guaranteed to make a profit.
So these are just four reasons behind the ever-growing success of the real estate market, and you can take advantage of all of them. Whether you have property you can rent, want to manage someone else’s property or are tech-savvy enough to add your expertise in the technology department, there’s a place in it for you.