With so many homeowners overburdened with debt, combined with low home values, there are plenty of homeowners walking away from their homes, getting foreclosed, or short-selling their homes. While in the short run, this may seem like the only viable option for many people, the long term impact will be felt for years to come.
We are basically setting up a very strong rental market for the next 10 years. When a homeowner goes into foreclosure, they are basically unable to purchase for seven years. Selling a home through short sale also affects one’s credit for several years, although usually not as long as with a foreclosure on a credit report.
The only alternative that they have is to rent. With record numbers of people in the same boat, it is going to flood the rental market with a lot of renters and therefore increase the demand for rental homes—setting landlords up for a great position in the future.
For people who can afford to purchase rental property, the timing has never been better. Home pricing is very low and we are looking at 10 years of the strongest rental marketing in decades. How are you adapting to this trend? As an agent, you need to look at who you are marketing to and how this shift will impact you and your business.
You may very well have future landlords on your past client or sphere list who either haven’t even thought of owning rental properties as an investment option or who are overwhelmed with where to begin. Or perhaps it’s time for you, as a Realtor, to add some rental properties to your own real estate portfolio.
Source: Short Sale Daily News!