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Sep 07, 2021 PropStream

How Investors and Agents Can Make the Most of Rising Rent

The rental market’s pandemic-era lag is over. As the economy reopens and young workers flock back to cities, rental rates are skyrocketing. Meanwhile, real estate investors and agents are wondering how to respond to this market shift.

Rising rent typically spells good news for investors and agents, and this year’s increases are undeniable. In the first half of 2021, the national median rent surged by 11.4% — and it shows no signs of going back down. In fact, the rent growth rate for single-family spaces has more than doubled since last year.

Making the most of this market as an investor or agent is all about taking smart steps. Keep reading to learn how to boost your income with the right moves.

Investors: Do Market Research

It’s no surprise that investors are jumping on the opportunity to invest in real estate right now. From April to June of 2021, investors spent $53 billion on multifamily real estate alone.

Even those who already own rental properties are purchasing more right now. They know it’s much harder to increase rent with current tenants (which is why many landlords wait until tenant changeover). Buying new properties lets them sign new tenants at rental rates that match today’s market.

Before you hop on this trend, though, make sure you do thorough market research. Just because rents are rising nationally doesn’t mean they’re rising at the same rate — or rising at all — in every state and city.

Take a look at the table below to see rent trends for one-bedroom apartments in several of the nation’s top markets.

Table 1: One-bedroom rent trends in the nation's top markets.

Market

2020 Average 1-BR Rent

2021 Average 1-BR Rent

YOY Rent Change

California

$2,536

$2,603

2.62%

Texas

$1,285

$1,325

3.13%

Pennsylvania

$1,605

$1,734

8.06%

Georgia

$1,348

$1,460

8.31%

Maryland

$1,698

$1,564

-7.87%

 Source: Apartmentguide

Notice how Georgia’s market is thriving while Maryland’s is nosediving. Investing in the wrong area can cost you thousands of dollars, so make sure you have access to a reliable data source like PropStream that can help you find the best deals and increase your profit margin.

Agents: Target Renters and Investors

As home prices keep rising, more would-be homeowners are opting to rent instead. So if you’re a real estate agent, consider shifting your focus from homebuyers to renters and investors.

Many young renters are looking for an experienced agent to negotiate with landlords on their behalf. With your vast networks and access to multiple MLS databases, you’re in a perfect position to help renters find the best deals.

Investors are desperate for agents right now, too. Many first-time investors are hoping to take advantage of today’s rental rates. But because housing prices are so high right now, many of them are struggling to find great deals on properties. That’s where you come in. Show investors that you’re the right person to help them find the best investment property at a price they can afford.

Want to save time on targeting renters and investors in your local market? Invest in a reliable data tool.

Using an all-in-one tool like PropStream can help you find the right clients, discover better deals on properties, and close more sales. Put our array of marketing tools, skip tracing and automated lead management to work for you today.

 
Published by PropStream September 7, 2021
PropStream