Property Management Blog

Just How Good is the Rental Market?

Terry Mrochko - Monday, August 28, 2017

 

It might sound a bit shocking, but the rental markets, they literally change with the blink of an eye. There are so many factors that that combine together and help in the determination of what will basically be the best environment or the worst environment for all the investors. It is very important for the person who has an interest in the investment of funds in a property that is rental to do a fair share on his or her side and research properly.

There are five very important things that need to be considered:

1.    Job Growth

The growth of a job is very important. One should be aware of the overall economics of the city. If there is an influx of the corporations of if other businesses are being relocated to that particular area. Are there any plans of restructuring the city in order to increase the availability of jobs? Obviously the fact that jobs are available in that particular area, the new residents will draw their attention towards it or the least that could happen is that they would employ current residents.

2.    The Rates of Rent

There are some areas in the united states of America that have very low rental rates which are hugely dependent on the financials which leads to very low profits for the landlord. The one fact that is very important is that you review all the rental rates which are similar to what you would be investing in to get an idea of the upcoming potential. Consider that fact whether you will be putting in an effort into the property or if you will be paying some amount of money to the management team of the property to handle everything. Make sure that you weigh all the pros and cons very carefully.

3.    Home Prices

Review all the comps from the area and combine it with the rental rates and determine it thoroughly whether it would be safe to make an investment or it will be too risky because of the higher home prices and not very high rental rates.

4.    Cap Rates

Make sure of the fact that your cap rate is high enough to yield the results, rental return basically and that you desire.

5.    Look into the supply and demand

Find out whether the demand greater or the supply? Getting yourself into a market with an overflow of empty rentals is definitely going to be a situation that would be less than the ideal.

The city of Palm Coast is a prime candidate for having a good rental market. It meets all the very most important criteria of investors we are looking for. Firstly, over the last few years, rental rates have been on the rise and they still are. There has been an increase steadily and a jump dramatically.

The market when it comes to housing is strong in Palm Coast. It looks like the homes have been there for quite a while and they are not of much interest to many. Until there is construction, most of the people look for homes that can be rented. Most of the investors might get a deal that is good on all these properties and with a little effort and work put in it, it will be a newly desired residential area.

The job market is on the top in the state though. While a lot of other cities are still when it comes to the growth of the economy, Palm Coast is flourishing. Thousands of jobs are created every single year. Last but not the least, there is a very high demand there but the problem is that the supply may be scarce and all the individuals are in search for rentals which is definitely a good sign for the investors out there.

If you’d like to talk more about the value of inspections, or you need help with Everest Property Management, please contact us at Everest Realty.

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Palm Coast Property Management
Flagler Beach Property Management
Ormond Beach Property Management
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