It’s About Time: Rents Are Rising
It’s official. After really not moving for five years, rents are rising in Marin County, and quickly.
Why? Over time, rents and real estate prices typically move in tandem. As prices go up, rents follow. We’ve had five years of price appreciation, a time in which average sale price nearly doubled. Rents did not move. Now, they’re starting to catch up.
Lost in all of the press about the drop-off in residential sales is that sales volume for rental properties (duplexes,
triplexes, and four-plexes) has been consistent for the last several years. Year to date, volume is the same this year as it has been for the last several years.
Savvy investors are buying rental properties all over Marin County, even though relative to many markets in the US, prices for rental properties are relatively expensive. They understand that while many of the gains the last few years have been from appreciation, future gains will come from rising rents.Great properties in good locations, like this triplex in Larkspur, are getting lots of attention.
Being a landlord is not for everyone. But for the right person, it’s a great way to supplement income, fund retirement, and even, just maybe, provide a place for the kids to live some day in Marin County.
One of my specialties is investment properties. If you’d like to see my presentation, “Investment Property 101″, contact me, and I can help you understand the tax benefits, appreciation, and pitfalls of owning investment property in Marin.
