“The news isn’t gloomy for landlords everywhere. Rents are rising strongly and vacancies are falling in many markets, particularly those with healthy economies that haven’t been affected severely by the carnage in the housing industry.”
_________________
I can’t argue with these stats. But I can add a little observation from what’s happening in my area near Detroit. At first rent prices fell as vacancy rates went up. However, as more people lost their homes to bankruptcy, the demand for rental properties increased. These people won’t be qualitfying for a mortgage anytime soon. I’ve heard in some suburbs that landlords are doing pretty well as a result. Perhaps the same pattern will repeat itself elsewhere???
Here in my area of FL the housing market is a disaster. The problem is, homeowner’s insurance is so high that you can’t rent your house to cover your expenses. As a result, people are just abandoning their houses, and foreclosures are rampant.
My son got laid off last week. There is no work for electricians in my area at all. The business he works for is going out. That’s 30 electricians out of work this year. Someone told me crews are are traveling as far as Jacksonville to work. Nobody is building where we live.
I find it amazing (to the point of being unlikely) that a landlord can meet just the principal and interest on a mortgage, home insurance, and property taxes in Florida on $784 per month on an investment property.
Add in any other costs in typical for a rental property, and I find it very unlikely that $784 is a sustainable average monthly rent.
Rents keep going up 200 bucks a year around here.... so, it is good times for most landlords.