Hands On Real Estate Investing

If you are still undecided about investing in real estate, here is one more reason: Rents are skyrocketing! We recently received 30-day notice from one of our tenants. He is renting a one bedroom condo for $975 per month. When I googled rents for our area, I was shocked to see the lowest rent at $1,150! That’s an 18% increase! What company increases its stock dividend by 18%? What job gives you an 18% increase in your paycheck? Why are rents skyrocketing? Scroll below for the answer …

Why are rents skyrocketing? It’s that old economic concept of supply and demand. Since the recession, housing starts have been on the downswing. Tighter mortgage qualification rules have made it more difficult to obtain a mortgage, therefore more renters are looking for housing. For more details on skyrocketing rents, click here.

Bonus Tip for Beginner Real Estate Investors: Raise rents on a regular basis. If you give your tenants one year leases, raise the rents every year. Don’t be afraid that they are going to move if you raise the rents. Don’t become friends with your tenants. As a landlord, you have a business relationship with your tenants. You are investing in real estate to make money, and part of making money is raising rents. Pure and simple. For more on raising rents, click here.

The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.