It’s a new year — one that comes with many changes, some uncertainty, and quite a few unique and challenging circumstances. If you’re a rental property investor, that might have you feeling uneasy. Should you plow forward as you would with any year, buying properties and seeking out tenants? Are there any adjustments you should make to appeal to today’s ever-changing renters?
That’s a yes to both. This year is primed to be a good one for investors, as long as you know how to leverage — and adapt to — 2021’s unique quirks.
Want to make sure your business is a success in the new year? Here are four things you’ll need to do.
Choose your locations carefully
Many urban renters got the heck out of dodge this year, looking for less-cramped quarters and the affordability of outlying cities. As a result, vacancies in urban areas rose, and rents dropped. In fact, according to the 2020 year-end rent report from RENTCafe, over half of the country’s 30 largest cities saw rents decrease over the year, with San Francisco (-17.3%) seeing the biggest loss. Manhattan, Seattle, Boston, and Chicago also saw large dips as well.
Fortunately, rents didn’t drop everywhere — and like with any real estate investment, rental properties are all about location, location, location. So while 2021 may not be the year to buy a big-city multifamily building, a townhome or single-family house in the suburbs might be just the ticket.