It’s a tough time to be a landlord. With tenants struggling financially, eviction moratoriums in place, and rents falling, it appears many rental buyers simply can’t catch a break. Fortuitously, it’s not all doom and gloom in all places.
The truth is, there are literally fairly just a few markets the place rents are rising. If you happen to’re on the hunt for a brand new funding (or only a solution to steadiness out these losses you’re coping with), these could be the markets you need to take into account.
Chesapeake, Virginia, and Norfolk, Virginia
In response to data from rental platform Zumper, rents on one-bedroom properties in Chesapeake rose 5.4% final month, clocking in at slightly below $1,200. It’s the thirty eighth costliest rental market within the nation.
Close by Norfolk can also be a secure guess. Rents on one-bedrooms elevated 5.2% over the month.
Rochester, New York
In Rochester, renters noticed a 5.3% improve in worth on one-bedroom properties — the second-highest leap in the US. On two-bedroom properties, rents rose 4.3% for the month.
Searching for an funding outdoors of the Northeast? Cleveland could also be a secure guess. Rents rose 5.1% on one-bedrooms final month, coming in at simply over $1,000.
Nebraska’s capital can also be on the up-and-up. Town had the fifth-highest leap in rents final month, with one-bedroom properties averaging about $850 per 30 days.
Searching for short-term leases?
If you happen to’d somewhat invest in short-term rental properties and Airbnbs, the checklist appears to be like a bit totally different. In gentle of COVID-19, at this time’s vacationers are sometimes on the lookout for close-to-home getaways, making small, extra rural cities outdoors main cities a giant hit.
Right here’s what Airdna, a short-term rental information agency, says are the perfect markets for short-term rental investing in the meanwhile:
- Castroville, California
- Slade, Kentucky
- Cherry Log, Georgia
- Shenandoah, Virginia
- Athens, New York
- Apollo Seaside, Florida
- Stanton, Kentucky
- Kerhonkson, New York
- Two Harbors, Minnesota
- Gerton, North Carolina
Castroville is the true winner on the checklist. Competitors is low (there are at present solely 27 energetic properties), and annual income potential is excessive (a whopping $114,000!). Situated about an hour south of San Jose and an hour and a half from San Francisco, it’s the right getaway for a lot of Bay Space residents.
The underside line
There are undoubtedly challenges to being a rental investor in at this time’s local weather, however bear in mind: Not all investments are created equal. Be additional considerate about the place you make investments, and think about rental developments, in addition to the altering habits of tenants and vacationers.
Lastly, ensure you might have an exit strategy. There’s no telling how lengthy the pandemic will final, so ensure you have a stable out to cut back your losses.