Best Cities to Buy Rental Property in 2021
If you’re planning on investing in rental properties, you’ve got a lot of work ahead of you. Turning your landlord side hustle into a full time job will require you to do research, assess properties, screen potential tenants and perhaps even make some revisions to the properties you purchase. It won’t be easy, but it will be incredibly rewarding.
Of course, taking into consideration the rapidity with which local real estate markets fluctuate, it only makes sense that you might want to consider which cities are your best options when it comes to plying your trade in this market. These cities will be those with the greatest numbers of renters, the most demand for rental properties, and the greatest real estate market growth.
Best cities for aspiring landlords
Now that we’ve established that some cities are better choices than others for those who want to invest in rental properties. The ideal city for rental investors will have a combination of factors such as high demand for rental properties, a reasonable but not exceptionally low median home cost, and a number of other factors.
In reality, there are very few cities that meet all the criteria and successfully attain the status of being the “ideal landlord’s city”. All of the cities on this list will have at least a few of the characteristics we mentioned above, but none of them meet the criteria perfectly. What can we say? You have to work with what you’ve got. Let’s see what exactly that is!
Anyone familiar with the real estate market in the city of Houston TX probably already saw this one coming a mile away; this city is just a great place to be a landlord! With ever increasing demand for rentals, a rapidly growing populace and some of the most attractive things to see and do of any city in the state, we would be remiss if we left it out.
Starting with the real estate market in this beautiful city, it’s easy to see why this is such a great place for landlords. The median home value is a highly acceptable $209,000, making purchasing rental properties easy and low cost. As an added bonus, the property appreciation rate here is a staggering 9.5%, ensuring excellent investment value for anyone purchasing property!
While the median home cost is low, the exceptional population growth means that there is a great deal of demand for rentals. This demand has led to a rather high median monthly rent price of $1,200. This means that landlords in Houston will be able to recoup their initial investment and start making profits long before those in other cities would be able to!
If you’d like to take advantage of this rapidly growing market, you’ll want to get in touch with one of the real estate agents in Houston TX. These skilled, experienced real estate professionals will help you find the best value for your money, in the least amount of time possible. No matter what you’re looking for, they’re the best people for the job!
Another place where demand for rentals is obscenely high is the city of Miami, FL. This beautiful, sunny metropolis has a long list of attractive characteristics, but for aspiring landlords and rental investors its most attractive aspects are its real estate market and rental market. While it doesn’t have the lowest property values around, its rent prices make it easy to make your money back quickly and start racking up profits!
So how much is the average home in Miami? With a steep $396,000 median home price, real estate isn’t exactly cheap here. Real estate does appreciate in value rather quickly, but not quite quickly enough to make it a great place to invest in property with the intent to sell. Where it does shine, however, is the rental market.
With a median rent cost of $1,700 a month, Miami falls on the more expensive side of the rent price spectrum, but this hasn’t deterred renters one bit. With its prohibitively expensive housing market, the only option for most accommodation seekers is rent, making this an excellent place to set yourself up as a landlord.
Anyone who would like to do just this should get in touch with the local realtors in Miami FL and see what’s on the market. There’s a great deal of variation in price, quality and location, but with the help of these experienced realtors you should have little trouble finding something that suits your needs and your budget.
New York City, NY
Now, we wouldn’t be able to forgive ourselves if we left this one off of our list; New York is notorious for its exorbitant rent prices and suboptimal rental properties available on the market. While this makes New York a pretty awful place to live as a renter, it means one thing and one thing only for landlords: big profits!
Any landlord looking to get in on the NYC market will have to face a prohibitively expensive median home price of over $650,000. This price will deter many landlords from the get-go, and those who don’t run after hearing the median home price might do just that when they hear how slowly property appreciates; 2.2%! This is hardly an exceptional rate of growth by any standard!
What may bring many landlords-hopeful back is the median monthly rent price. This is the saving grace that makes New York City one of the best cities to be a landlord in. The median monthly rent price for a two bedroom apartment is a staggerin $3,600 a month! With rent prices like these, you can count on making your investment back in no time!
If you want to take advantage of this prime rental market, you’ll need to get in touch with the real estate agents in New York City. These skilled, experienced real estate professionals are your best shot at finding rental properties in good condition, below market value. With their help, you’ll be set up in the New York City rental game in no time!
There are a lot of things that might spring to mind when you think about Nashville TN; country music, the Grand Ole’ Opry, cowboys and Tennessee whiskey are all likely to make an appearance. One thing that might not immediately spring to mind, however, is just how great a place Nashville is for rental property owners!
That’s right; Nashville has a booming rental market, spurred on by a low unemployment rate and rapid population growth. Despite these factors, rent prices in Nashville are still a reasonable $1,400 a month, far lower than those in many other metropolitan cities of comparable size. While this price is somewhat low, let us tell you why buying rental properties here is a good idea.
The answer to that question is the property appreciation rate. While Nashville has a relatively average $323,000 median home that isn’t going to knock anyone’s socks off, the property appreciation rate of 9.8% makes this a great place to invest, especially as a landlord. As time goes on, you’ll see both increased demand for rentals and increased property values. It’s a win-win, plain and simple!
If you’d like to take advantage of this opportunity, your best bet is getting in touch with local realtors in Nashville TN. These skilled, experienced real estate professionals will do everything in their power to find reasonably priced properties that will make good rentals. Before you know it, you might be set up as a landlord in Nashville TN!
Becoming a landlord is a long and difficult process, but if you choose the right city to set up in, you can make that process a lot shorter and a lot easier. We hope we’ve given you some good ideas regarding where you want to start off in this business, and hopefully helped you better understand how to start your own rental business. From our team to yours, we wish you the best of luck!