Single-family rental property investing in Frisco is going through an evolution. Traditional models of single-handedly buying and managing one or two rental properties are giving way to new approaches to investing, including build-to-rent, lifestyle renting, and long-distance investing. Collectively, these three aspects make up the top three considerations that any rental property investor should be checking now. In what follows, we’ll take a closer look at some of the opportunities you’ll find in each option.
1. Real Estate Investment Build-to-Rent Properties
One of the newer and rapidly growing trends in the housing industry is build-to-rent investment properties. In a market where demand keeps on outpacing supply, investors and even home builders are choosing to buy new homes for the express purpose of renting them out. Developers and investors have both recognized the benefits of new builds as investment properties. Maintenance costs tend to be lower, profits from renting tend to be higher than sales, and tenants used to living in aging homes are often eager for something brand new. While builders-turned-landlords are generating more competition for single-family rental home investors, the need for such properties remains very strong. This is particularly true among young adults who have been priced out of a very competitive housing market.
2. Renting as a Lifestyle Choice
Along with those who are unable to purchase, another important trend that you should be observing is a new wave of people who are renters by choice. Millennials and Baby Boomers, in particular, have shown rising interest in opting out of homeownership in exchange for the flexibility of renting. For these demographics, location, community, and lifestyle are often more important than owning their own homes. Rental property owners who are staying ahead of this trend have countered by offering additional amenities and services, catering to the lifestyle renter’s desire for freedom from home maintenance, long commutes, and even paying utility bills. For these folks, paying a higher rent is an acceptable trade for proximity to urban environments and all the benefits that come with such locations.
3. Long Distance Investing
Gone are the days when you are obliged to remain close to your investment properties. As more and more single-family rental home investors have perceived, long-distance investing is quickly becoming the new standard for investors. With all the benefits of technology and expert property management services now possible, there is no need to limit your property searches to your home market. Living in one city and owning properties in one or more others is quickly becoming the path to success for many investors. While it may take time at first to set up the team you’ll need, once you have real estate and property management professionals you can trust you can buy and rent properties just about anywhere. So even if housing prices in your city are out of range, all due to today’s technology, you could be investing in some of the hottest markets in the country – wherever that may be.
Even if rental property investing is changing, the need to do thorough research on each potential investment has not. For this reason, Real Property Management Lonestar offers investors free rental property analyses. Our Frisco property management professionals are not only some of the best in the property management industry; we also work with investors to help you determine whether the rental property you’re viewing is a good option. Please contact us online or call our Austin office at 512-520-9060 or our Dallas office at 972-949-2000 for more information.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.