While there are some investors (namely those who are heavily invested in the stock market) who might cringe at the thought of rising interest rates, there are others who may welcome rate increases with open arms – primarily those who own residential rental property.
Why is this the case?
One reason is because when interest rates go up, it can be more difficult for would-be home buyers to purchase a place to live…and that can lead to a much larger pool of tenants for you and your properties!
Because rising interest rates can essentially increase the cost of borrowing, there are many who will simply continue to rent until the economy leans more towards a “buyer’s market” again. So, it basically becomes a scenario of supply and demand.
But in addition to having a larger potential tenant pool, there are other benefits for real estate investors, too, when interest rates rise. For instance, because the competition for good rental properties also goes up, investors can raise their monthly rent rates. And this, in turn, can lead to increased cash flow and net operating income for property investors.
If you love receiving income from your investment properties, but your rental real estate is starting to take up too much of your own personal time, hiring an experienced property manager could be an ideal solution for you.
With a property management team in place, you no longer have to respond to calls in the middle of the night to fix leaky toilets or refrigerators that are no longer running. You can also take a step back from day-to-day tenant management and rent collection.
Want to know more about how you can still profit from your Orlando or Central Florida rental property without having to give up more time? Just contact us and we’ll provide you with additional details on our property management services.