rent collection to extensively detailed property listings, virtual tours, online yield calculators, on-demand housing market data, and more have helped to make SFR easy to invest in and manage, even from a distance. One of the reasons institutional investors have been able to invest in SFR at scale is these properties can now be purchased and managed just as easily as multifamily units. TIME TO BUY? Should investors hold off on buying SFR given rising interest rates? That depends. Like any business, higher costs ultimately get passed on to the consumer. In this case, the cost associated with higher interest rates gets passed on to the tenants in the form of higher
rent. Although there certainly could be a short period where retail investment slows down and institutional investors happily fill the gap, higher interest rates alone don’t necessarily mean retail investor activity will slow. Ultimately, rents will catch up with the added expense, especially as demand increases as would-be buyers get priced out—through appreciation or interest rate changes—and become renters. As you consider investing, one of the main things to think about is local market conditions. As they say, all real estate is local. When you have a potential property in your sights, you’ll want to dial in your research to a granular level and figure out what’s driving the local economy. Always conduct due diligence and determine whether
the property is priced fairly and at or below the current market value before investing. •
Renters Warehouse | www.renterswarehouse.com
Kevin Ortner is the president and CEO of Renters Warehouse. He joined the company in 2009 when he opened the first Renters Warehouse franchise in
Phoenix, Arizona. His franchise has been consistently awarded with best-in-class business and culture awards. After working in many capacities across the organization, in 2015 Ortner was named president and CEO, helping Renters Warehouse through monumental growth nationwide and a majority share private equity investment. Ortner is a two- time honoree of the American Stevie Business Awards, Executive of the Year award (2015 and 2016) and received an International Stevie Business Award for his achievements as CEO of Renters Warehouse. His leadership helped the company become an honoree of the prestigious Inc. 500|5000 list of fastest-growing privately held companies in America 10 consecutive years in a row.
thinkrealty . com | 63
Made with FlippingBook Online newsletter