locations, we have seen a rise in long-term Airbnb rentals, also known as furnished apartments. From an investor’s perspective, this rental strategy provides higher rental income than traditional rental properties and more predictability and stability in terms of occupancy than vacation rentals. The combined result is optimized return on investment. As many people continue to work remotely, some will choose to travel to new locations for extended periods, which will further drive the growth of monthly furnished rentals in 2023.
The benefits this rental property investing strategy offers are numer- ous; being affordable and passive are the most important. As technology continues to advance in real estate, fractional investing is expected to accelerate in 2023 and beyond.
4. RISE IN FRACTIONAL RENTAL PROPERTY INVESTING Yet another major trend in recent years is fractional investing within the real estate industry. Technology has dictated this move rather than the pandemic. Real estate crowdfunding platforms like Fundrise, Realty Mogul, and Crowdstreet have allowed small‑scale investors to own fractions of residential, commer- cial, and industrial properties together with other investors.
5. TECHNOLOGICAL ADVANCEMENTS
Finally, we cannot talk about 2023 trends in rental property investing without discussing the role technology will play. High-tech will continue to be a main driving force in all aspects of the industry and all stages of the investor journey: from identifying profitable investment opportunities, to purchasing income properties, to renting out and managing both short-term and long-term rental properties. We can expect existing proptech companies to grow and new ones to appear in the next couple of years to meet all investor needs, making the real estate investing process even more seamless and profitable. In 2023, the rental market is expected to remain as dynamic as it has always been. There will be numerous lucrative opportunities for investing as long as investors analyze the market, use reliable data, and follow recent developments and fore- casts. The five trends outlined here should help you make confident and profitable investment decisions. •
Daniela Andreevska is vice president of content at Mashvisor, a real estate analytics tool that helps real estate investors quickly find traditional and Airbnb investment properties. A research process that usually takes three months can now be accomplished in 15 minutes.
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