Here’s Why Everyone is Investing in Rental Properties

January 12, 2017

For decades, buying a home was the ultimate goal and renting was just a means to an end. However, experts say that thought process is changing.

It’s no longer a matter of not being able to afford a house. Instead, renters are actively choosing to stay renters for longer periods of time. With that new mindset, it’s no surprise that investing in rental properties is being touted as a low-risk way to grow your income and leverage assets.

Here’s more info on why renting is so popular right now:


According to this article on Business Insider, the myth that renting is more expensive than buying has been busted. In fact, the author did a little digging and found that in high-demand markets like San Francisco, it’s over $2,500 more per month to own an entry-level home than to rent an apartment.

Renters no longer feel the pressure to buy a house immediately and instead, they are choosing to be long-term tenants (the best kind!) while they wait for the market to even out.

Credit Building

Earlier this month, USA Today posed the question: is it better to rent or buy a home?

They cited several reasons renting is smart. Among them, and one we hear often, is that renting provides an easy opportunity to build credit.

The biggest problem millennials face when trying to get a mortgage loan is that they either have no credit or bad credit. Instead of taking on a colossal interest rate and saving for a giant down payment, they’re renting and asking landlords to report their on-time rent payments to the major credit bureaus.

For more reasons why you might want to start looking at rental properties, check out this article 9 Reasons to Invest in Apartments that has been circulating around investment websites.

Originally published on Groundwork

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