Real Estate Investment

house and keys image

photo credit: MarkMoz12

Successful investing has two important steps. The first is getting in at the right time, before substantial growth occurs. The second is getting out at the right time, when growth begins to stall and the market is ripe for selling. Real estate investment is no different.

Getting In At The Right Time

Being a landlord has been an attractive venture the past 8 years, following the recession in 2008. has reported a steady decline in rent vacancy rates since it began preparing its annual Property Owner and Manager Marketing Report in 2009. (“2015 Rental Market Report”, 2015) Rent vacancy is the percentage of unoccupied or vacant rentals of the total number of rentals in a designated market at a specific point in time.

It makes sense a rent vacancy decline would occur after the real estate bubble burst in 2008. It caused many homeowners to become home-renters as a result. The housing market was flooded with new renters. The post-burst economy’s struggles also caused millennials to be wary of the commitment to buy property. They’ve instead opted to rent. Those millennials added to an already large pool of renters.

Fortunately, being a landlord during a time of low rental vacancy is a good thing. The high demand means that market conditions will allow for more frequent increases in rent and there is less need for concessions and negotiations with tenants.

The past 8 years have been strong for landlords and the trends show the strong rental market should continue in 2016.

Getting Out At The Right Time

As an investment property owner, you’re keeping your eyes not only on the health of the rental market, but also the real estate market. Renting your investment property has covered your mortgage and expenses while providing a profit. But there may come a time when the real estate market is just too good to pass up. That time may be now. reports that homes in April 2016 are moving 8% faster than for this time last year, even with the high asking prices (“Home Prices and Real Estate Market Trends”, 2016). In that same report, Jonathan Smoke, the chief economist of, spoke to the current real estate market.

Quote from Jonathan Smoke, Chief Economist at

It’s clearly a seller’s market, as evidenced by the low inventory, high demand and quickness with which homes are flying off the market.

What Does This Mean For You?

With the rental and sales markets both showing considerable strength, you have solid options regarding real estate investment. You can continue to rent your current investment property. You can purchase an investment property and begin taking advantage of the strong rental market. Or you can make the move to sell your investment property. Fortunately, Simply Residential has the versatility to provide clients with both property management and real estate services. We can help you find an investment property to purchase, help manage your existing investment property or we can offer a seamless transition from renting property to selling it.

Learn more about our property management and real estate services. Email us at, visit or call us at 952-893-9900.

2015 Rental Market Report – Blog. (2015). Retrieved May 31, 2016 from
Home Prices and Real Estate Market Trends from (n.d.). Retrieved May 31, 2016, from


1Q 2016 Rental and Sales Review

As first quarter 2016 (Jan, Feb, Mar) came to a close, it was clear that early 2016 has been strong for both landlords and home sellers.

Rental Marketnational vacancy rate

Vacancy rate is the percentage of unoccupied or vacant rentals of the total number of rentals in a designated market. It’s a common metric to measure the strength of the rental market. The U.S. Census Bureau reports that the national rental vacancy rate closed at 7.0% for 1Q 2016. That rate has stayed fairly consistent over the past year, but the blue graph to the right shows how low the monthly vacancy rate is compared to the past seven years. So, what does a low vacancy rate mean for investment property owners? When vacancy rates are low, rent prices rise as tenants scramble to find properties. The red graph to the right shows that March 2016 had the highest median monthly rent in Minneapolis over the past 12 months. median rentSimply Residential used those statistics to justify recommendations of rental rate increases for a number of our properties during 1Q 2016. Low vacancy rates also mean rentals are on the market for less time. We saw this firsthand last month, as 1/3 of our March new lease signings occurred within a week of being marketed.

Real Estate Sales

As job and wage growth slowly drive the country’s recovery from the recession, we’re seeing a renewed consumer confidence. Couple the interested buyers with a low inventory of homes for sale and we have a seller’s market. reports that there was a 20.6% decrease in Twin Cities homes on the market in March 2016 compared to March of last year. marchThe multi-colored graph to the right shows how much higher the median sales price was in March 2016 compared to March in previous years. If you’re considering selling your investment property, please speak with us. Along with providing rental property management services, our on-staff licensed real estate agent and broker are happy to provide you a comparable market analysis (CMA) so you can properly consider the options of renting and selling your property. Also, know that we offer special real estate service pricing to our current property management clients.


Whether you’re renting or selling, Simply Residential Property Management’s leasing and sales team has you covered. The first quarter results from 2016 show that both the property rental and home sales markets are very strong. Simply Residential will continue to monitor important factors including the interest rate and the local vacancy rate. But it’s clear that now is a fabulous time to rent out or sell property.

Women’s History Month

In the United States, the month of March is Women’s History Month. While the focus of the month in 2016 is honoring women in public service and government, let’s take a look at the impact of women in the real estate industry. As early as the 1880s, women were transitioning from early real estate roles such as bookkeeping to becoming full-fledged agents and brokers.

Today women make up a majority of the residential real estate profession and there are a number of organizations specifically for women in the industry. Women in Real Estate (WIRE), Women’s Council of Realtors (WCR) and Commercial Real Estate Women (CREW) are active nationally and have Twin Cities chapters.

In a 2015 interview with Real Estate Agent Magazine, Tasha Soundara, president of the Twin Cities Chapter of the Women’s Council of Realtors, discussed the organization’s role.

“…Empower women to be strong business leaders. Our organization showcases the strength of women in the industry (and) through our work we promote the image of the successful female entrepreneur within the community. “

Simply Residential Property Management is proud to recognize and honor women during this important month, especially all those within the real estate industry.