A new index shows that Salt Lake City ranks in the top 10 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 Salt Lake City ranks ninth in the nation in terms of income potential for investors in residential rental properties. Job growth is the major factor spurring “The Crossroads of the West” into the Top 10, along with moderately high rates in both housing appreciation and annual rent increases. Property owners earned 10.22% more on average than in the previous year.
According to Salt Lake City’s Nate Tew of Keyrenter Property Management, the area is most notable for its diverse cultures, excellent job growth, amazing landscapes and scenery, and friendly people. Forbes magazine recently listed Utah as the best state in the country for business.
“Business expansion and economic development have led to a huge number of people moving into the state,” says Tew. “New construction numbers are increasing and more and more investors are looking to buy rentals in the Salt Lake area. Demand for housing is ever increasing, and we are loving it!”
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.