Why It Is Time To Buy Rental Properties In Salt Lake
September 23rd, 2007 Categories: Buying, Investing
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Things are looking good for buying rental units in and around Salt Lake. Rental rates are on the rise and vacancies are low. We can expect rates to go a little higher, but the real key is low vacancies. Vacancies can be one of the highest expenses to a property owner.
With the tightening of the lending climate and home prices that sky rocketed. Over 25% of the population is under 18 years old, there is a steady stream of renters entering the market.
This makes for an interesting situation. Properties being harder to finance (especially non-owner occupied) means there are less buyers, yet rents are attractive.
Rental Market Outlook From Commerce CRG Real Estate
Over the next 12 months the rental market conditions in Salt Lake County will continue to improve for existing rental property owners, but little change is expected in the difficult conditions for developers of rental properties. Strong demand will drive rental rates higher over the next year with possible double digit increases. On the supply side, there are not a large number of new units under construction that will ease the tight market conditions, and vacancy rates will remain in the 3.0 to 4.0 percent range over the next 12 months.
I recommend the classic three bedroom starter home for the same reasons rents are steady and vacancies are low. It has a built in steady flow of people entering the housing market. The starter homes are a the easiest to rent, easiest to liquidate if necessary.
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