SEATTLE--(BUSINESS WIRE)--All Property Management (APM), known for helping property owners maximize their rental income potential, has released the latest Rental Property Investment Scores (RPI Scores). The RPI Score is a measure of a market’s attractiveness for rental real estate investment. “The 28 million owners of rental real estate in the U.S. are in need of a sound way to assess the markets that are best for real estate investment,” states Jacob Colker, Sr. VP of Marketing for All Property Management.
This is the second report compiled by APM in the company’s ongoing quarterly effort. The updated report includes the latest government statistics on vacancy rates, job growth, rent increases, and an expanded focus to include real estate listing age as a factor in final scores.
Key shifts in scores this past quarter propelled 12 new cities into the Top 25. Of these, Kansas City (79) had the greatest gain, followed by Tulsa, Poughkeepsie and San Francisco. Grand Rapids (96) remained the top score in the country due to its strong jobs growth, strong rental prices and continued escalation in home prices. The largest drops occurred in cities whose jobs growth and rental rates turned flat or negative in the last half of the 2013. Cities in the West experienced the greatest gains compared to any other region. Cities with shaky jobs growth and an oversupply of properties on the market tended to decline the most. Of the bottom 25 cities, 15 remained in that group from the prior quarterly survey.
Despite the changes, the overall value of investing in rental real estate is still very attractive. Based on All Property Management’s Investment Property Calculator, owning a single family rental property in the median U.S. city would create an investment return of 9 percent if held for 5 years. This compares to a U.S. Treasury Bond yield of less than 2 percent. And real estate is an effective inflation hedge, unlike many other long-term investments.
Reggie Brown, CEO of All Property Management, noted a significant number of cities have elements that are attractive for some investors, while being challenging in other respects: “San Jose and Seattle are great cities to own rentals, but their low cap rates require an investor to incur negative cash flow in the early years until rent increases and appreciation make up the difference. Cities like Grand Rapids and Nashville allow you to earn a great cash return now in exchange for lower appreciation potential in the future. You have to determine what matters most for your own investment strategy.”
About All Property Management
Founded in 2004, Seattle-based All Property Management is the largest online network of property management services, connecting tens of thousands of property owners with thousands of licensed property managers across North America each year. All Property Management allows property owners to maximize rental investments by connecting them with professional property managers who can meet their specific property needs, from single family home rentals to multi-unit apartment complexes and homeowners’ associations.