Are you having trouble selling your house? Are you having trouble finding renters? Don’t worry…things may be turning around soon. I’m clearly not an economic forecaster, but I do pay attention to what is happening. Based on a broad range of factors, I would say there is a substantial chance of inflation soon. .
Now, inflation can sound scary and has a pretty bad reputation. Typically, when people think about inflation, they only think about the prices of everyday items increasing. However, if you are a property owner, inflation may work to your advantage.
During inflation, interest rates will increase, property values increase, and rents rise. I know many business people, who have been able to pay off their mortgages and become debt free thanks to inflation.
Here are just a couple of the potential benefits:
- Rent goes up. As the amount you can charge for rent increases, you can pay off your mortgage faster. The key is to not offer long-term leases with locked in prices. You also need to focus on putting that extra money towards the mortgage because once the mortgage on your rental is paid off, you’ll be making significantly more profit on your investment.
- House values increase. As home values increase, you will have a better opportunity to sell your property for a profit. This will also help out the many people that have wanted to sell for some time but didn’t want to lose money due to low house values.
- The potential for greater profit. For some property owners, who were planning to sell, the potential for increased profits may entice them to stay in business. This is when hiring a property manager may be especially useful because it will allow you to remain in business and enjoy the profits while not having to deal with the deal-to-deal hassle of owning rental properties.
Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!