A recent survey of single-family rental landlords shows cautious optimism about the market’s future.
According to the survey by real estate finance company LendingOne, 60% of landlords plan to buy at least one property in the next 12 months, while 39% may sell one or more properties. This is fueled by expectations of rising home prices and falling interest rates, which could drive increased investment activity.
Rent increases are also on the horizon – 76% of landlords plan to raise rents in the next 12 months, with 35% predicting increases of over 4%. Only 2% expect to lower rents.
The survey results suggest landlords are confident demand for single-family rentals will stay strong for the foreseeable future, though they’re also mindful to avoid overpricing.
As Matthew Neisser, CEO of LendingOne said, “People can afford only so much at certain price points. So it seemed obvious there's only so much more to run on rents, within reason.”
For property managers, this optimism spells opportunity. More rental properties entering the market and higher rents could result in bigger portfolios and greater revenue – but it also means increased accounting and other admin. Luckily, PayProp can help manage the former kind – the most important part of running a rental business.
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