#1: Flexibility of Rental Properties
Tourism companies took a significant hit, and it’s tough for them to come up with entirely new strategies for their firms. You can’t start producing masks straight after years of selling tours. But rental property owners do have the luxury of being flexible to a certain point.
You can turn your short-term rental into a long-term property, or vice-versa. This is something that a lot of Airbnb hosts have already done. Converting the short-stay rental into a traditional rental property means a stable paycheck at the end of every month.
#2: Appreciation Is an Important Keyword
Real estate investments go hand in hand with the potential for appreciation. This is something that lures in most of the would-be real estate investors. Even at times of crisis, your property investment could still be making money for you down the road.
When you look at the big picture, property prices are going up. You may see some fluctuations here and there, but the overall trend is clear. Real estate appreciates over time, and you are bound to benefit from this phenomenon.
Should you wish to get the most out of appreciation, purchase a single-family home because this type of rental property has the best appreciation rates. Studies have shown that increase in value is higher compared to condos, townhouses, and multi-family homes.
Appreciation as a process does take some time. Depending on multiple factors and circumstances, you may have to wait anywhere between a few years and up to five years before a significant value gets added. Then you can start thinking about selling that property again if you wish to do so.
#3: Real Estate Investing Is a Passive Strategy
A real estate investment can be considered as a passive strategy. This is an excellent choice during a crisis when you may have other demands that won’t allow you to put in too much energy and time.
Now you may wonder how rental investing can be passive. Being a landlord comes with around-the-clock responsibilities. However, you can always hire a professional property management company.
For a fixed fee, you can forget about all the hassles that accompany the self-management of rental properties. You won’t have to worry about rent collection, tenant screening, evictions, nor advertising while experts are maintaining and growing your investment.
#4: Promise of a Stable Monthly Income
The return on your rental investment is steady. When you have a fixed-term lease agreement, you can rest assured knowing that you’ll receive the monthly payments. Even after budgeting for mortgage, repairs, and maintenance, you can still gain a healthy profit each month.
Crisis means change. Even though there are a lot of changes taking place around us during the coronavirus pandemic, some people are still investing their hard-earned dollars in assets like real estate, bonds, and stocks. Real estate investment is one of the best strategies at times of crisis. That’s because it can be a passive strategy, provide a stable monthly income, and offer certain flexibility in the face of a changing economy.