High income households are the fastest-growing segment in America. High income households are seeking rental homes, with the figures increasing over 175% in the past decade. What does this mean for real estate investors? Should you seek out higher income tenants for your rental property in Denver?
Why are High-Income Renters Growing?
There has been a surge of higher income households turning into the rental market. Renter households earning six-figure incomes have started to grow across the entire United States with Denver being one of the main cities in the mix for high-income rental properties. In fact, the Denver metro area housed 2.5 times more six figure households in 2017 than they did over a decade ago.
What is causing people to shift into renting instead of buying? Was it the Great Recession in 2008 that caused many people to avoid real estate investing? Do these income earners want to have the ability to move as needed? There are several reasons for the boom in high income renters including:
– Multi-family construction
– Single-family home rentals following the Great Recession
– Difficult homeownership barriers
– Demand for more flexibility and centrality
New rentals are coming up with modern appliances and attractiveness that many renters are seeking. Without the demand to maintain the property, but enjoying the luxury, is drawing many renters to move into the high-income rental world.
Many of the high-income renters are leaving the multi-family homes to opt for many of the single-family homes that became abandoned following the 2008 Great Recession. By 2018, 1.8 million new high-income renter households came into the market for both single-family and multi-family homes.
When the banks started restricting their lending requirements, it cut a lot of people out of the market. The Great Recession ended up making it hard on many Americans to afford a home, even the high-income earners are struggling to purchase homes in their range. However, they can rent the higher-income homes without needing to have a large down payment that is required to purchase these homes.
High income earners are also shifting to urban cores where there is an influx of well-educated individuals in city centers with plenty of job opportunities. While there has been an increase in the number of high income tenants entering the rental world, it does open up more opportunities for real estate investors. However, making sure these properties are maintained and managed in the right way will require the help and assistance of a professional property management company. Keyrenter Property Management Denver, CO, is here to provide you with residential property management services to landlords of single family homes, duplexes, condos, and small multifamily units. We are not large apartment managers. Our purpose is to help landlords maximize the return on their investment property while eliminating the stressors associated with being a landlord (including bad tenants and maintenance issues). Services we offer include: property analysis, setting rent, tenant placement, leasing services, maintenance coordination, tenant relations, property inspections, rent collection. We offer superior customer service. Because we know how to find quality tenants that can meet the terms of their lease agreement, using Keyrenter’s 14-point tenant screening process, our eviction rate is below 1%.