According to the United States Census Bureau, the country has nearly 50 million rental units today. Meanwhile, there are more than 85 million owner-occupied households. But whether you own or rent a property, the biggest question is: How can you make the most of the rental market?
Don't worry; This article helps tenants and landlords navigate the rental market. Continue reading to get some practical pieces of advice on real estate.
In the United States, there are nearly 50 million rental units available today, while over 85 million households are occupied by owners.
How can you navigate and benefit from the rental market? This article aims to assist both tenants and landlords in understanding and making the most of the rental landscape. It offers practical advice and insights into real estate that can help you thrive in this dynamic market.
This article provides valuable guidance for both tenants seeking the perfect home and landlords looking to optimize their properties. By stepping into these practical tips, you can better understand the rental market, enabling you to make informed decisions and maximize your opportunities in real estate.
Many American families commonly opt for renting or leasing residential properties. In fact, more than 35% of households in the U.S. choose to rent homes. Therefore, renters should capitalize on the rental market.
Tenants have various reasons and/or preferences for renting. According to Zillow Rentals, 80% of renters make affordability a top priority. For them, it's the most vital home characteristic they factor in when looking for and staying in a rental property.
For other striking attributes renters consider, take a look at the table below:
But what about landlords navigating the rental market? If you own a residential property, you can take advantage of this real estate segment. Take it from the interesting facts and figures from Doorloop:
Landlords make more than the median household.
They earn over $35,000 and up to $97,000 each year.
They get an average of $10,000 per rental property.
As you can see, renting out your unit or complex lets you earn lucrative yet passive income. However, you've got to attract quality tenants, stay on top of your properties, and boost your profits.
Now, whether you're a tenant or a landlord, here's how to maximize the rental market:
Sure, the rental market is booming. But whether you're looking for a house to stay in or renting out your place, study the market first. As such, real estate market analysis is key. Here's why:
Tenants: As a tenant, you ought to know if the location is ideal for renting. Likewise, determine the standard market value to see if the price is right. More importantly, be critical in choosing a property and the amenities it has to offer.
Landlords: As a landlord, you should know the ins and outs of the rental market in your area before listing your property. Consider appraising your house and even consulting a realtor. This way, you can price it right according to its home value.
David Janovic, Founder & CEO of RJ Living, recommends studying the real estate market for informed decisions. "The rental market is thriving, offering various stakeholders several potential perks. But whether you're a property owner or renter, you should know what you're getting yourself into."
Studying the real estate market is one thing; examining the actual property is another. House
inspection should be a part of the overall equation. So, before making a final decision, check out the place first.
Tenants: As a tenant, you probably have a list of a few worthy prospects after checking some property listings. It's best to schedule an appointment for the property viewing of each unit or complex. From there, you can choose a house best suited to your needs.
Landlords: As a landlord, you are also responsible for inspecting the property before renting out your place. You want to ensure your house or unit is in top shape and condition. If not, get the necessary upkeep, repair, or upgrade.
Stephan Baldwin, Founder of Assisted Living, highlights the value of property inspection. "As a renter, you should thoroughly examine the property before moving there. Doing so lets you capitalize on the home value and know what to expect. However, landlords are responsible for inspecting and maintaining their properties before putting them on the market."
The most crucial part of the rental real estate market is how much the rent will cost. Therefore, the tenant and landlord must negotiate and arrive at fair pricing. Here's why:
Tenants: As a renter, you seek to save money long-term without compromising your household needs. You even consider your household income for social security benefits, regular expenditures, and making ends meet. So when renting, you want to be able to pay the rent every month so you won't be evicted.
Landlords: As a landlord, you aim to make money from your rental property. Some even explore various types of insurance coverage for property protection to avoid financial losses. Therefore, see how you can capitalize on the rental market. However, consider the standard market value of your house and price its rental cost accordingly.
When it comes to the rental market, it's imperative to set a lease contract in place. This contractual agreement seeks to protect both the landlord and tenant. So, read the fine print and sign if and only if you agree to all terms and conditions:
Tenants: Pay particular attention to your financial obligations, on top of which is your monthly rent to pay. Know the terms concerning advance payment and security deposits. However, get into specific details like property alterations, component repairs, tenant issues, and eviction so you won't get caught off guard.
Landlords: Work with a real estate agent or property manager to draft a contract for your real estate investments. You want to ensure you are legally on top of your rental properties. At the same time, you want to have your tenants' best interests in mind. As mentioned, the lease contract will protect you and your rentera win-win for both parties!
Communication is almost always the key to fostering good relationships and avoiding conflicts.
This applies to the rental market between tenants and landlords. However, ensure two key aspects: clear and constant communication. Take note of the following:
Tenants: As a tenant, reach out to your landlord not only when you pay your rent. Do so, especially when you have concerns like property damage, tenant issues, or even delinquent payments. For example, negotiate when you can pay for your rent and ask for an arrangement if you have problems with your savings account, such as changes in the certificate of deposit rates.
Landlords: As a landlord, establish an open line of communication so that your tenants feel free to connect with you. If you don't have time, consider hiring a property manager to address your tenants' needs and concerns. If anything, clear communication is necessary to avoid confusion and conflicts.
In the rental market, property maintenance is vital to boost the home value. However, this doesn't only apply to the landlords. Tenants who occupy the properties are equally responsible as well. Consider the following:
Tenants: As a tenant, it doesn't mean you will no longer take care of the property you're renting. Most lease contracts state that tenants are responsible for minor repairs. Besides, you want to ensure a cozy place to live in, especially if you lease the place long-term.
Landlords: It's evident that as a landlord, you should inspect and maintain your property regularly. You should attend to major repairs, even property upgrades and part replacements. Stay on top of your property upkeep to ensure occupancy and make more money.
Anthony Martin, Founder and CEO of Choice Mutual, suggests getting insurance for property protection. "Property maintenance is key to raising the home value and increasing business profitability. But you also want to protect your property in unexpected circumstances like fire, flood, or earthquake. Insurance is the answer to these!
It's essential to know your rights as a tenant or landlord. More than just signing a lease contract, you should understand the landlord-and-tenant laws by heart. Here's what to consider:
Tenants: Be wary of your financial obligations. Know what you're responsible for paying at the onset, whether advance rent payment or security deposits. More importantly, be well-acquainted with your rental cost and due date. But other than these, delve deeper into your habitable dwelling, privacy, and eviction rights.
Landlords: As a landlord, you own the property with various rights revolving around it. However, be wary of legal concerns, such as rent collection, property eviction, and house inspection. And as mentioned, put everything in writing to protect both parties!
Andrew Pierce, CEO at LLC Attorney, underscores the importance of understanding your legal rights in the real estate market. "This particularly applies to the rental market that binds tenants and landlords in a contract. Know your rights and ensure they are stipulated in the lease agreements, and you'll never go wrong!"
Property management has become prevalent in today's real estate market. According to Market Research Future, the property management market size could grow from $20.16 billion in 2022 to $35.46 billion by 2030 at an 8.40% compound annual growth rate (CAGR).
Hiring a property manager for your rental unit, apartment, or complex is a good idea. Not only will it help you as a landlord, but it will also be beneficial for your tenants. Here's why:
Tenants: As a tenant, consider renting a house with a property manager. Some landlords are difficult to connect with as they are busy and preoccupied. A property manager can assist you with various concerns, from paying rent to fixing damage to addressing neighborhood issues.
Landlords: As a landlord, you can benefit significantly from hiring a property manager, especially if you have several units or houses. This manager oversees almost everything, including property listing, tenant screening, maintenance, and working with various stakeholders. They can even use time tracking software for architects for property upgrades and digital tools for payment collection.
The rental real estate market shows no signs of stopping or slowing down. But whether you're a tenant or landlord, you've got to make the most of this thriving market. This way, you can benefit from the home value it offers or the business profit it brings.
For tenants, capitalizing on the rental market means finding and dwelling on properties that meet the household needs in terms of aesthetics and functionality. But for landlords, this means getting quality tenants, safeguarding properties, and increasing rental income.
Consider the practical tips for tenants and landlords outlined above, and you can make the most of the rental market!
Both tenants and landlords share the responsibility; tenants handle minor repairs, while landlords oversee major maintenance and upgrades.
Understanding legal rights helps both parties adhere to their obligations and protects against potential disputes or misunderstandings.
Property managers streamline operations for landlords and offer tenant assistance, handling everything from property maintenance to issue resolution.
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