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Interest Rates Are on the Rise: Good or Bad News For Real Estate Investors & Property Managers?

Risk concerns arise to many folds after the Federal Reserve reassured they are planning to increase the interest rate. The committee agreed upon an increase in interest rates and it showed concerns about risks and timing. The current environment is liquefied in which the labor market is showing contraction and trade conflicts with China is forcing some sectors to plan layoffs in the upcoming months. Increase in inflation is also developing a pressure. So, in such economic condition, interest rate is more likely to increase.

What should you be doing as a rental property manager?

Focus on Future (Better Days):

A sudden increase in interest rates will more likely to hamper the buying ability of many first-time home /property buyers. And it would be a better option to continue with renting facility. This means property managers may be able to slightly increase lease tiers – providing your property is well-maintained and offers similar facilities and services as your closest competitors.

Plan as Usual:

It is also possible; there might be very minimum increase in interest rates, which does not affect mortgage companies to tighten lending policies, or investors to change their spending patterns. In this scenario, rental property activities may remain comparatively steady and unwavering.

Higher interest rates have a direct or indirect affect on everyone in the housing market. A higher Mortgage cost means refinancing is more expensive, and improbability has a negative impact on home sales, which could mean rental managers see an uptick in traffic.

Plan for Growth:

At least for now, the latest Fed adjustment should not be a huge concern for property managers. In fact, this may be the perfect time to focus on growth and expansion.

In such situation, it is better to get your specialist connections. Ask real estate brokers to introduce you to rental property owners. St Louis Property Management service can help you get the most out of the functionality of your system. You can get more information by contacting on https://www.stlouispm.com/. This can also help you to create campaigns that drive traffic to your property. Then, you can influence owners and investors looking for someone to manage their passive revenue stream.