Categorized | Residential

Rise in Rentals Is Good Business for Property Management Companies

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As home rentals grow increasingly more common, property managers are seeing significant increases in their workload. Many real estate agencies are now switching their focus from selling homes to managing rental properties and finding tenants. The trend reflects the changing housing market in the United States, as many potential homeowners are opting to rent rather than buy at this point in time.

With job uncertainty continuing to remain at high levels, many households are choosing to rent until the market stabilizes. As a result, there have been far more renters entering the market than those looking to buy a new home. Because renting is growing more common than ever, property managers are having great success in the current market.

Most real estate agents once looked down upon property management, as it provides far less pay than selling a home. While selling a home might result in a payday as high as ten thousand dollars for real estate agents, property managers may only make about eighteen hundred dollars per property.

Despite the lower pay, property management is becoming far more attractive in the current market, as property managers are still making far more money than those real estate agents who can’t sell a home in the current market.

The number of vacancies in the United States apartment market is near an all-time low, and rents have increased. The increase in rents has led to more money in the pockets of property managers. Furthermore, the number of new clients continues to grow at an unprecedented pace, making the property management business more lucrative than ever.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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