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Rising Rents – Music to Your Ears?
Rents going up may not be pleasant to hear for tenants, but it could be music to your ears if you are an investor. The recent CoreLogic Single-Family Rent Index, April 2021, showed a 5.3% increase in national rent year over year which doubled the increase experienced in April 2020. This is the largest annual […]
Rising Rents – Music to Your Ears?
Rents going up may not be pleasant to hear for tenants, but it could be music to your ears if you are an investor. The recent CoreLogic Single-Family Rent Index, April 2021, showed a 5.3% increase in national rent year over year which doubled the increase experienced in April 2020. This is the largest annual […]

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Rents going up may not be pleasant to hear for tenants, but it could be music to your ears if you are an investor.

The recent CoreLogic Single-Family Rent Index, April 2021, showed a 5.3% increase in national rent year over year which doubled the increase experienced in April 2020. This is the largest annual rent price increase in nearly 15 years.

Interestingly, detached rentals are experiencing an even higher growth rate of 7.9% year over year compared to the 2.2% annual rate for attached rentals. This is supported by the CoreLogic report that half of millennials and 2/3 of baby boomers “strongly prefer to live in a single, stand-alone home.”

From an investor’s point of view, single-family rentals offer large loan-to-value mortgages at fixed interest rated for long terms on appreciating assets with definite tax advantages and reasonable control.

Rentals are considered to be the IDEAL investment because if offers income to offset the carrying cost of the investment; depreciation contributing to annual cash flows with a non-cash deduction; equity build-up because a portion of each payment is applied to principal reduction; appreciation with increases in value; and, leverage that increases the overall yield through the use of borrowed funds.

Most homeowners are very aware of the housing inventory shortage that has caused homes to rise over 12% in the past year. The increased demand for homes coupled with the shortage of supply has contributed to the rapid appreciation. The trend is expected to continue for years.

While appreciation is a large component to the rate of return, cash flows are bolstered by the increasing rents. This combination makes investments in single-family rentals very attractive.

An added appeal is the familiarity and understanding of this type of investment because it requires the same aspects as homeownership. The same service providers a person uses for their home can be used for the rentals. For the investors who don’t want to manage the property themselves, professional management is available for placing and qualifying a tenant only or the entire process including collecting the rent and maintenance.

For more information, download the Rental Income Properties. Contact me if you’d like to have a more in-depth conversation and address any personal questions you might have.

LIST OF BLOGS

Chapel Knoll HOA

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Chapel Hill Civic Association

History of Chapel Hill Civic Association Chapel Hill, as part of Fairfax County, traces its roots back to the broader historical narrative of the region, which began with the establishment of Fairfax County in 1742. However, the specific history of Chapel Hill as a...

Chapel Bridge Estates Homeowners Association

History of Chapel Bridge Estates Formation and Development: Inception: Chapel Bridge Estates HOA was incorporated on April 24, 2000, as noted by Bizapedia, reflecting the broader trend of community association formation in Fairfax County to manage common areas and...

Chapel Acres Civic Association

Historical Overview The Chapel Acres neighborhood was developed in the mid-20th century, a period marked by significant suburban expansion around Washington, D.C. The area was once part of larger agricultural lands, but with the post-World War II housing boom,...

Chantilly Park Condominium Association

History of Chantilly Park Condominium Association Chantilly Park, located in Fairfax County, Virginia, was developed as a response to the growing suburban demand for housing in the Washington D.C. metropolitan area. The community began as a part of the broader...

Chantilly Highlands Homeowners Association

History of Chantilly Highlands Homeowners Association Chantilly Highlands, located in the Oak Hill area of Fairfax County, Virginia, was established in 1972. The community's development initially featured open classrooms, a concept that was popular during that era but...

Chantilly Green Estates HOA

Historical Overview Chantilly Green Estates, like many developments in Fairfax County, was built during a period of significant suburban expansion in the late 20th and early 21st centuries. The community's development can be traced back to the early 2000s, with...

Chantilly Farm Homeowners Association

History of Chantilly Farm HOA Origins and Development: Chantilly Farm, located in Fairfax County, Virginia, is part of a broader narrative of suburban development around the Washington D.C. area. The community likely emerged during the post-World War II housing boom,...

Chandler Grove Homeowners Association

History of Chandler Grove HOA Chandler Grove HOA, like many homeowner associations in the United States, was established to manage and maintain the communal aspects of a residential subdivision. The roots of homeowner associations trace back to the early 20th century,...

Chancellor Farms

History Chancellor Farms, nestled in Fairfax County, Virginia, has a rich historical backdrop that mirrors the broader development of the region. Fairfax County itself was established in 1742, and its history of land division and settlement is well-documented....

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Chapel Knoll HOA

History of Chapel Knoll The history of Chapel Knoll can be traced back to the broader development...

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