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Last week I saw an article in the local St. George daily newspaper stating that apartment rents throughout the west are on the upswing.  In the article were listed several cities here in the west and the percentage that each was increasing on their rents.  I was surprised to note that Salt Lake City has had a 9.9% increase in rents over the last year.  This was even higher than places like San Francisco/Oakland (9.4%), Boise (3.8%), and Tuscon at (2%).  Las Vegas was only up 1.9%.  The source of the figures was RealFacts, Inc.

They were at a loss to explain why rents were going up while property values continue to go lower.  Some theorize that apartment landords have been able to boost rents as more people lose their homes or are unable to qualify for a loan under today's revised guidelines.

I always like to ask the question: "How does this information benefit me or the people I know?"  Well, since I am a landlord with several units, I guess it means that I might be able to get away with raising rents if I wanted to.  But what about you and others that don't own rental income properties?

Would a down market be a good time to check out buying a rental property?  I have noticed in my observations over the years that the people who don't do what the crowd does, and do maybe the exact opposite, many times have come out winners where finances and wealth are concerned.  Right now most of us are just waiting on the sidelines to see what happens.  There are some very smart people out there that recognize that buying things on sale is a very wise thing to do.  Believe me, there are many properties "On Sale" right now.  Maybe now is the time to enhance your investment portfolio with real estate.

Another conversation last week drove another point home pertaining to real estate.  I met a HVAC contractor at one of the homes I have listed so he could give the owner a bid on some equipment.  As we chatted, I found out he had built and sold 5 homes; all owner/builder and owner occupied.  Just off the cuff, he said: "I have made more money off of real esate than I ever have working." 

I am totally convinced that owning real estate is the surest way to financial security that there is.  If a guy that installs air conditioners can do it, so can anyone.  Think about the most financially secure people you know.  I would be willing to bet that all of them own multiple pieces of real estate.

If you would like to have a conversation about this topic, just respond to this blog, or call me anytime.

All the best,
Alan