Until a few years ago; property owners and property managers in Detroit Michigan indeed had a reason to worry, as far as their rental income from real estate investment ventures were concerned. But today; things have certainly improved and here are the reasons why:
- In the past, rental rates were relatively low and tenants and landlords alike were suffering due to poor economic scenario and were also dealing with job cuts etc. For landlords the loss of job meant two things: paying for his home as well as his rental property. Likewise, tenants without jobs had a tough time paying their monthly rents. Thankfully things changed for the better and today, people prefer to rent residential properties than buy them. This certainly spells good news for the property owners. Rental rates are also on an upward rise.
- Higher rents and lower mortgage rents means better gains for landlords.
- Landlords and real estate investors with cash are certainly going to profit from the low real estate values. They can pick up real estate for lot less than before and the advantage is that the seller market is stronger than the buyer market.
- Former homeowners who have met with some financial difficulties are also living in rented properties. The quality of tenants is a lot better and property managers and owners are assured of getting timely rent payments.
All these factors certainly show us that the time is indeed favorable for investment in rental properties.
