There are two groups of dynamic business-people doing all they can to connect with highly qualified residential renters: successful income investors and proactive property managers.
Successful income investors know that right now is prime time to increase their property portfolios. As the cost of borrowing goes down they can leverage more purchases and expand their income.
Mortgage rates are tied to the benchmark 10-year U.S. Treasury bond. On February 2, 2016 that bond’s yield dropped to 1.86% and mortgage rates will soon follow this downward trajectory. This will continue to drive the demand for residential income investment properties. It’s one of the main reasons that areas like Broward County Florida are experiencing a boom in rental home prices. “Single-Family Home Prices Soar in Broward County,” according to a recent headline in the Miami Herald newspaper. The same is true in Florida’s most populous country Dade, especially in greater Miami.
Home prices in Miami are up 50% since 2012, according to the most recent Case-Shiller 20-City Composite Home Price Index, which tracks the prices of single-family homes across 20 of the nation’s largest cities. One of the main drivers of home price increases has been the demand for rentals. Vacancies have been plunging as the supply of available rentals is quickly gobbled up. As a result rents are rising rapidly.
Investment analyst Dr. Steve Sjuggerud recently commented on this topic in his informative, free online publication Daily Wealth. Steve shared the following statistics and insights:
“According to a fantastic new report from RealtyTrac, the rental yields in Florida are still incredibly high. Take a look:
|Broward County (Fort Lauderdale)||13.1%|
|Duval County (Jacksonville)||13.2%|
|Escambia County (Pensacola)||12.8%|
|Tampa / St. Petersburg area||11.2%|
|Orange County (Orlando)||10.4%|
|Miami-Dade County (Miami)||9.3%|
These numbers represent GROSS rental income, not NET rental income… These are “top-line” figures. But if you figure “all-in” rental expenses in the 5%-7% range (relative to the value of the house), Florida residential real estate STILL looks GREAT.
This RealtyTrac report was distributed nationwide to Dr. Sjuggerud’s large subscriber base. My sense is that many will act upon these timely and potentially lucrative suggestions.
Many investors need qualified, carefully screened renters to live in their investment properties. As they acquire more units they’re likely need professional management. That’s where you come in. If you’re a property manager with a steady stream of potential residents, you have a great deal to offer new and existing clients. Do you need to grow your “steady stream”?
Ok, but how? One way is to use the social media site Meetup. It’s the world’s largest network of local groups. Meetup helps anyone to organize a local group or find one of the thousands already meeting up face-to-face. Create a group of “Outstanding Residential Renters” (ORR) who are looking to maintain or improve their rental housing needs. In a few months you’ll have developed your own network of ORR to work with. You can do something similar using Yelp, Facebook, Trip Advisor, or create your own online rental real estate network site like Bigger Pockets.
The opportunities are endless!