A new index shows that Bakersfield ranks second among all U.S. cities in terms of income for residential landlords.
Compiled by All Property Management (APM), the country’s largest online network of property management services, the new report’s goal is to help investors make informed decisions based on current marketplace analysis. Factors such as residential vacancy rates, cap rates and annual rent increases were considered, in addition to data from the U.S. Census Bureau, U.S. Department of Housing and Urban Development, U.S. Bureau of Labor Statistics and CoreLogic.
Depicted graphically at the bottom of this page, APM’s Rental Property Management Health Index found that Bakersfield ranks second in the nation in terms of income potential for investors in residential rental properties.
One of only two cities in the western United States to be listed in the Top 10, California’s “Country Music Capital” may not be experiencing great job growth, but can boast low 4.78% vacancy rates and high rent variance changes, showing an increase of 12.97% in the past year – making it the second best location to own a rental property nationally.
According to Amy Johnson, office manager at Real Property Management Bakersfield, rental vacancies are less than half the national average. In addition, rents are on the rise and pricing of homes hasn’t caught up so Bakersfield is a great market to secure a tenant quickly and for the real estate investment to earn cash flow.
“Many owners have been very satisfied with the current market conditions. And even with an appreciation of 29 percent over the last 15 months in the Bakersfield area, owners are still interested in purchasing additional properties,” says Johnson. “With the bump in interest rates in July and August of this year, low supply of homes available on the market, and high demand for purchasing, landlords have seen an increase in qualified applicants because these families aren’t able to find a house to purchase or have been priced out of the market because of rising interest rates.This has helped us to find and secure more qualified tenants in a shorter time frame.”
APM’s Rental Property Management Health Index provides essential information to help investors assess the long-term value of rental properties nationwide, according to Steve Cook, award winning real estate journalist and co-publisher of Real Estate Economy Watch.
“Not only does the Rental Property Management Health Index offer investors a quick, comprehensive grasp of the current rental market on a national scale, it provides the type of data that should be most important from a business standpoint, like yearly rent variances and a particular city’s urban development trends,” said Cook. “While other tools may show near term-deals on distress sales, the APM Health Index educates investors on the potential wisdom of investing in any given market for the long term, regardless of temporary price discounts or short-term market trends.”
APM’s new index provides a holistic view to aid potential investors in deciding where to purchase a profitable rental property. Research indicates 65 percent of individual investors plan to purchase additional properties in the coming year, and Wall Street firms have amassed more than $10 billion to invest in an institutional asset class.
“As investors look to explore new markets, get out of current markets, or double down, the data from this index will allow them to compare various factors and weigh which ones matter most to them,” said APM CEO Reggie Brown. “Good information is essential for a wise investment, regardless of the investor’s size.”
Founded in 2004, Seattle-based All Property Management, is the largest online network of property management services, connecting tens of thousands of property owners with thousands of licensed property managers across North America each year. All Property Management allows property owners to maximize rental investments by connecting them with professional property managers who can meet their specific property needs, from single family home rentals to multi-unit apartment complexes and homeowners’ associations.