Landlords, along with business owners, tend to be about four times wealthier than the average American. And if you look at how much renters are spending on rent checks, it is easy to see why.
According to a recent Zillow report, American renters – especially those in major cities like New York, Los Angeles, and Chicago – spend staggering amounts just to keep a roof over their heads. Renters across the country paid a total of $485.6 billion in 2017, which is a $4.9 billion increase from 2016. This increase can be attributed to the rent prices rising to more than seven percent in 2016.
With numbers like this, it is a bad time to be a renter, but it has never been a better time to be a landlord in America.
Rental Income in the US
Rental income, as a share of the country’s GDP, hit an all-time high during the first quarter of 2017. According to the Labor Department, this was due to the high demand and limited supply of housing. Recent numbers reveal that the average rent for a one-bedroom apartment ranges from $830 to more than $2,000 a month depending on the state or city.
Meanwhile, single-family rental homes in major US cities generate around $2.3 trillion annually. At this rate, investing in rental property is as lucrative as investing in the stock market.
Making the Most of Your Rental Property
Of course, owning and managing a rental property come with expenses such as repair and maintenance costs, insurance, property taxes, and homeowner association fees.
Investing in rental property is a lot of work, but with the right mindset and approach, you can make your rental property a successful source of income.
One way to take advantage of your rental property is to choose your tenants wisely. Having tenants who do not respect your property or pay their dues on time can cost you valuable time and money that you could have been invested in a more courteous tenant.
Landlords tend to spend too much on unnecessary upgrades that will likely cost them more on maintenance and repairs. When it comes to managing rental property, it is advisable to keep your standards to a minimum. This helps you keep your monthly rent at an appropriate ratio of about twice the monthly cost of the property.
Property Management in Denver
Say goodbye to rental property headaches with property management services in Denver. Bergan & Company is a trusted property manager providing a range of rental management services. We offer rental property preparation, tenant screening, rent collection, rental maintenance, and even respectful eviction services.
We also provide ongoing services like rent and deposit collection, rent disbursement, preparation of monthly and year-end statements, round-the-clock marketing, and property inspections. Let us take care of these details so you can focus on other things that matter to you most.
Make your investment property in Denver your key to financial independence.
Get in touch with us today.