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Rent Index on the Rise: What It Means for Property Owners

Written by Rentwell | Dec 26, 2012 10:44:00 PM

Investing in a bargain house is an action that seems glamorized by pop culture. How many times do you turn on the TV to find a flipper investing in a cheap house, fixing it up, then renting it out? However, the ability to purchase bargain homes isn't a reality for a lot of Americans who can't afford to make a down payment or qualify for a mortgage.

Following this trend, vacancy rates throughout the country are in decline and the rent index is at its healthiest in years.

According to Zillow.com, 67% of the 310 metropolitan areas that the site covers reported increases in rents in September. Additionally, half of these areas experienced an annual home value increase. Cities that saw strong year-over-year rent increases include Baltimore (10.7%), Chicago (10.7%), Philadelphia (8.2%), and San Francisco (8.0%). The site reports, "Nationally, rents increased 6% in September from year-ago levels and rent growth continues to be robust, fueled by the entry of foreclosed households into the rental market and increasing household formation itself (newly formed households often choosing to rent before buying)."

 

With the new year right around the corner, it's the perfect time to start thinking about how Rentwell's services can help you yield higher returns and less tenant controversies.