4 Reasons to Rent This Year

When it comes to investments, real estate has always been one of the safest and most profitable markets. Investing in real estate wisely can set a person up for long-term returns that can acquire value over time. Whether you invest in commercial real estate or take a jab at rental property investment, the good thing about real estate is there is always a demand. Despite the growing prevalence of certain online mammoth retailers like Amazon, businesses will continue to need buildings to operate out of, and people will always have housing needs. 

Rental property investment is an especially lucrative investment and there are various forms of rental properties to look into. There are residential rental properties, which depending on the location can be extremely profitable, as well as vacation rentals in hot tourist areas. 

When it comes to deciding where you should make your place of residence, there are always going to be two options – buy a house or rent. In a lot of ways, this is the very first investment that a lot of people make into the world of real estate. The interesting thing is that you do not have to own your own home in order to enjoy the benefits of investing in rental properties. Instead, renting a home while you find ways of getting into rental property investment can have its advantages! 

Whether you personally rent or own a home, there are some great reasons to get into rental property investment. If you have been curious about the benefits of renting homes, here are four things you need to know! 

1. Passive Form of Income

So, we all know that there’s no such thing as a truly passive form of income, however, the profit that can be made off of rental units sure comes close. To some degree, every single investment needs to be managed, and that is definitely the case when it comes to rental property investments. If you do not want to handle the process of management, you can absolutely opt for hiring a manager to do this for you. The only downside to this is that it will cut into your overall profit. 

Regardless, rental property investment can be a great form of passive income, in that it has such as high return on your investment, that it makes the management factor well worth it. There are also great options when it comes to investing in shares of rental properties that treat a rental unit as an investment. 

The good thing about rental property investment, is the more you invest, the more you make. Not only that, but it’s one of the few investments that are highly recession-proof. Even if the market turns down and people experience financially hard times, they still have to find a place to live. 

One factor that is very important when it comes to investing in rental properties, is location. Buying up rental properties in areas with a high transient population is great. Towns and cities that have heavy university populations are great options because you have a demographic of customers who aren’t looking to invest in buying their own homes and will be loyal customers. 

2. Diversify Your Investments 

Another strong benefit to investing in rental homes is that it’s a great way to diversify your investments. The whole goal of diversifying your investments is to ensure that you have long-term financial health in your investments. It’s not wise to put all your eggs into one basket, no matter how good that basket looks. The great thing about diversifying your investment with rental properties is that they regularly acquire more value. 

This is the optimal situation when it comes to diversification because you don’t just want to buy up varying types of investments, you want to acquire more value. Rental properties have a history of increasing in value, and with the housing market being as crazy as it is – a rental value seems to have nowhere to go but up. 

3. Easy to Get Out of

Another great benefit to investing in rental homes is that they are so successful that they are easy to get out of. What that means, is that if for any reason you decide to get out of the rental game, selling your properties happens when and how you want. Because rental properties typically acquire value, there’s always a good chance that you won’t lose out on exiting from this investment. 

4. Great Retirement Income

Lastly, rental homes are a great source of income for retirement. Because you can choose how much involvement you have with managing the properties, investing in rental properties can be a passive form of income for your retirement years. If you want to be involved because you have a lot of extra time – be more hands-on with managing the properties. If you don’t, outsource the management.


These are four great reasons why rental property investments might be great for you. If you have been thinking about making the jump, this could be the perfect time to do it! 

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