Best Markets to Become a Landlord

With landlords earning double-digit returns of 10 percent or more, the rental market has thrived over the past several years. Though high home prices dampened returns for landlords in some markets, other markets still offer plentiful profits, according to RealtyTrac which analyzed rental market conditions in 370 major U.S. counties, including median home prices, average rents and unemployment rates.

While assessing a market, landlords should look for one factor, low unemployment. RealtyTrac suggested investors take the demographics of the area into account as well, especially when it comes to baby boomers and millennials. Markets where these populations are growing rapidly should produce strong returns for investors going forward, said Daren Blomquist, vice president at RealtyTrac.

For baby boomers, born between 1945 and 1964, retirement-friendly markets in Florida are predictably hot, according to RealtyTrac. Some local markets saw their baby boomer population increase by 20 percent or more since 2007. The Tampa-St. Petersburg-Clearwater, FL metro area topped the list among markets where rentals to baby boomers flourished. As for millennial markets, they were scattered around the country. RealtyTrac cited Baltimore, Philadelphia, Jacksonville, Fla. and Atlanta metro areas as leading rental markets for millennials.

 

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Nick Banks

Nick created Front Street Commercial Real Estate Group in 2002 and spent the first eight years developing and acquiring office and retail projects in South Florida as well as North Central Florida. In 2010 the focus of the firm was shifted to primarily serve third party clients and perform brokerage, property management and mortgage banking functions. Nick has personally developed and acquired nearly 200,000 square feet of office and retail properties in markets throughout Florida. Prior to founding Front Street, Nick was the Director of Finance and Dispositions for Stiles Corporation in Fort Lauderdale where he financed and sold over $500 million in commercial real estate. Before joining Stiles, Nick was an Associate Director at GE Capital Real Estate where he sourced over $200 million in financing throughout Florida. Nick is a graduate of the University of Florida with a degree in Finance and a concentration in Real Estate. He serves as a board member and current vice-chair for the United Way of North Central Florida where he also chairs the Development Committee. Nick is actively involved with the Gainesville Area Chamber of Commerce where he serves as a board member and committee member for the Council for Economic Outreach. He is also a recent graduate of Leadership Gainesville which is a year long leadership program hosted by the Chamber. He is a member of Grace United Methodist Church where he has served as finance chair and as a member of the leadership council. Nick serves as an advisory board member of the University of Florida Bergstrom Center for Real Estate Studies. Nick was recently named chair of the Gainesville committee for the North Florida chapter of Urban Land Institute (ULI). He is a licensed real estate broker in the State of Florida and is a long time member of the International Council of Shopping Centers.

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