While the real estate industry continues to struggle with uncertainty, high interest rates and limited inventory in many areas, the rental market has shown notable momentum and is expected to recover as warmer weather approaches. Apartment hunting Rent rates have been steadily increasing across the U.S. and are expected to peak in July as renters seize the opportunity to relocate before severe weather sets in across much of the country.
A recent survey found that more than half of U.S. residents are planning or considering moving this year, poising for a busy summer in the rental industry. Architectural DigestMotivations for relocating are varied: Gen Z and millennials are seeking better job prospects and safer areas, for example, and about a third of respondents were looking for a lower cost of living.
Luckily for those considering relocating, supply on the rental market is offering more options: According to data from Yardi Matrix and RentCafe, a record influx of more than 1.6 million new apartments is expected between 2019 and 2023, providing prospective tenants with ample options.
The surge in relocation desires also presents an opportunity for the real estate industry to refresh business strategies and create new revenue streams. While relocation desires can occur at any time of the calendar, summer is a unique time when a variety of factors conspire to drive demand, including a surge in short-term rentals as students leave dorms and remote work gives people the flexibility to stay longer in their preferred locations and closer to family. Doorloop research predicts that the short-term rental market will balloon to approximately $8.91 billion by 2026 and continue to grow annually through 2032.
- Anticipating this seasonal uptick allows agents to leverage their expertise to boost their business and generate supplemental income.
- Professionals can partner with acquaintances and clients who are looking to jump on the short-term rental boom. They can use their market insight to effectively market and rent properties during peak migration times.
- Agents can also focus on obtaining certification in property management, which can provide a steady stream of income throughout the year, especially during busy periods.
- Real estate professionals can earn a steady income by seeking out opportunities in property maintenance, marketing and leasing. They can also provide marketing acumen to landlords to increase awareness of their properties in a competitive market, nurturing long-term client relationships and revenue streams in the process.
- Agents can identify opportunities to teach real estate courses or offer coaching services, capitalizing on the growing interest in real estate-related careers, showcasing their expertise, and generating revenue through course fees and coaching sessions.
- Finally, utilizing social media as a form of affiliate marketing can allow you to earn additional income by promoting related products, such as short-term rental essentials, through your affiliate links.
In addition to these revenue strategies, smart hacks like offering virtual property tours and partnering with vacation rental management companies can amplify your agent’s success, especially during the busy summer season. These partnerships not only expand your service offerings, but they also attract new clients and generate referral-based revenue.
While challenges remain in the sales market, the rental sector presents countless opportunities for creative and out-of-the-box thinking real estate professionals, especially this summer. A focus on innovative strategies and strategic partnerships can help you maximize the potential of the busy summer months.
Michael Lucarelli is CEO and co-founder of RentSpree.
This column does not necessarily reflect the opinion of HousingWire editorial staff or its owners.
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