Investing in rental properties has been a trend for decades now. Shelter is one of the most basic needs of every person, but not everyone can afford to buy their own home. So, renting one is the best option for them. 

If you’re a real estate investor who wants to shift from home flipping or wholesaling properties to renting out homes, here are a few reasons to do so.

You can start small.

You don’t immediately have to buy or build a five-story apartment building with 50 units. You don’t even have to go that far, even if you stay long in the rental business. 

You can start even by just renting out a spare room on your home or buying a condo unit for short-term stays. If you want to go for something a little bigger, a single-family home would also be a good option. 

The great thing about starting small is you have time to test the waters and see if the rental business suits you. It’s also easier to sell your property if you would no longer want to continue the business. 

You may or may not be hands-on.

As a landlord, you have the option to manage the business yourself, especially if you will start with only less than ten units.

Having control over your business means you can decide whatever you think is best for your investment because your hard-earned money is at stake. Should there be setbacks or failures along the way, you will learn to go through it and grow as a rental property investor.

Another option is to hire a rental property manager. It doesn’t mean that you will lose control of your business. A property manager will still operate based on how you want your business to run. Although he gains a certain level of control, he can’t go against what you want. He may give recommendations, but ultimately, you still call the shots. 

There’s always a demand.

Even though the real estate market goes up and down because of its normal boom-and-bust cycle, the demand for rental housing never ceases. As mentioned earlier, not everyone can afford to own a home, but shelter is a basic need. People will always need a roof over their heads. 

Furthermore, since it’s more challenging for most individuals to get a mortgage these days and the current generation’s lifestyle prefers having mobility, the rental market will only grow from this point.

You can diversify.

Focusing your real estate investments on rental property alone doesn’t mean that you can’t diversify. It is, in fact, quite the contrary. There’s a wide variety of rental properties you can venture in. You can rent out single-family homes, condo units, apartment buildings, vacation homes, and a lot more. 

Your market is also very diverse. You can target the millennial workforce, students, Section 8 tenants, etc.

Having so many options can help you decide which one you can market best, based on your knowledge, risk appetite, and goals. 

Marketing is easier nowadays

Since there is always a demand, all you need to do is find different platforms to market your property, where you can reach out to a diverse pool of home hunters. Since technology has become such a helpful tool for marketing, publishing listings to online platforms like Padleads is one effective way to advertise your rental property.