I’ve written 2 other recent posts about renting in Northern Virginia and now a third party has validated what I’ve been hinting at.
MSNBC has posted a list of the top 10 cities around the country where rents are going up. Though the Northern Virginia and Washington DC area aren’t on the top of the list the 7.4% increase isn’t anything to scoff at.
1. Greenville, SC (+11.2%; $669 average monthly rent)
2. Chattanooga, TN (+10.4%; $726 average monthly rent)
3. Savannah, GA (+8.4%; $866 average monthly rent)
4. Portland, OR (+8.1%; $875 average monthly rent)
5. San Jose, CA (+8.0%; $1,716 average monthly rent)
6. Nashville, TN (+8.0%; $786 average monthly rent)
7. Tacoma, WA (+8.0%; $900 average monthly rent)
8. Denver, CO (+7.5%; $873 average monthly rent)
9. Washington, DC (+7.4%; $1,473 average monthly rent)
10. Raleigh, NC (+7.4%; $785 average monthly rent)
There are two ways to look at these numbers.
If you are a renter coming into the area you need to be prepared for higher prices and a tighter market. If you are investor now may be the time to look at a buying a property to use as a rental property. With lower prices and rising rents the right purchase could bring you a great ROI.
Buying a rental property requires you look differently at a property than you would if are looking at it to buy to live in. Besides price you need to be looking at how much rental income the property will bring and expenses to maintain the property among other things. The other big piece of the puzzle is whether you are ready to be a landlord. As a landlord myself I can say the Northern Virginia market is hot and owning rental property is currently a better return on your money than a bank CD.
Something to think about before interest rates go up again.