Is Rental Real Estate Still a Good Investment During a Recession?

If you ask most economic analysts if we’re in a recession, the average answer will be either a yes, no, or maybe, but the reality is that in the past, recessions have been typically defined as two consecutive quarters of negative growth in a row.

As of June 2022, the country has reached that economic benchmark, and we are technically in a recession, even if most people don’t want to admit it.

The big question is do rental properties continue to make an excellent investment even during a recession?

In this article, we’ll break down the answer to this question and provide you with several reasons why you should consider investing in rental real estate during this current economic recession.

Reasons To Buy Rental Real Estate During a Recession

Reason #1 – It’s A Basic Need

Let’s face it, the best and most common reason why you should invest in rental real estate during a recession is that it’s a basic need.

Everyone needs housing just like they do food, clothing, and employment. When you own rental housing, you could count on earning consistent income from those rental properties regardless of if we’re in a recession or not because of the simple fact that you’re always going to own an asset that’s in demand.

Reason #2 – Stable Cash Flow

Another excellent reason to invest in residential real estate during a recession is the fact that it continues to produce stable, consistent income, compared to commercial real estate, which often sees huge losses during times of economic stability.

Commercial real estate has been in a state of decline for the last 2 years, but residential real estate has only continued to see growth as more people than ever before are renting, instead of buying, due to higher mortgage interest rates and the inability to accomplish their goal of living the American dream.

Reason #3 – It Earns Passive Income

Most important of all, besides the demand for rental Real Estate, another excellent reason to invest in rental properties in Beaverton, Portland, or the surrounding area is that it will earn passive income when you hire a property manager to manage those rental properties.

If you’ve been investing in the stock market, bonds, or mutual funds for any length of time, you’re well familiar with the term passive income, and the good news is that when you invest in rental real estate, you can continue to accomplish your goal of continuing to invest in assets that produce passive income for you monthly.

What To Look for In Rental Real Estate

Now that we’ve established the reasons why you should invest in rental real estate in 2022, even during an economic recession, let’s talk about what you should be looking for in rental properties.

Location

There’s no denying that the location of the rental property is still the most important component that you should be looking at before you choose to make an investment in a single-family or a multi-family property in the Portland Oregon area.

Portland has gone through many changes over the last two years since Covid-19, and it’s important to take into consideration such things as the crime rate, and the quality of the schools in the area that you plan on investing in.

Besides looking at those basic things, you should also take into consideration how close the rental property is to schools, stores, and restaurants.

It’s also important to learn if the property in a walkable location, close to parks, trails, and other fun things that people of all ages would enjoy doing on a regular basis?

Even though the greater Portland area is still a popular place to invest, you should also be looking at suburbs that are nearby like Beaverton, Hillsboro, Oregon City, West Linn, and Milwaukie because more renters these days want to live close to the downtown area, while not living there.

Cashflow

Most important of all, before choosing a rental property it’s important to ask yourself will that property cash flow?

This means will it provide enough income monthly to cover your mortgage and other expenses that the property may have.

With more mortgage interest rate increases on the horizon, it’s important to take a hard look at the cash flow that a rental property will earn monthly because there’s nothing worse than getting stuck with owning a great rental property only to be stressed out because you’re not able to cover the expenses that the property has each month.

Hire A Property Manager

After investing in your rental property, the most important thing that you should do is immediately hire a property manager because, a property manager will save you the time, money, and hassle of managing that property yourself so that you can focus on enjoying the passive income that the property earns while having peace of mind that it’s going to be managed by professionals.

At Rent Portland Homes – Professionals, our team has decades of experience managing rental properties in the Portland Oregon area.

We are the Perfect Partner

We see our clients as partners in our business. We can’t succeed unless your property performs well, so we do everything in our power to make that happen. Our size allows us to provide personalized attention and guidance; part of our service that we pride ourselves on. Partner with us and let us help you stay profitable and grant you more free time.

We Set the Bar High for Customer Service

We go above and beyond to get exceptional results for our clients. Our team is friendly and accessible and we pay particular attention to detail. We aim to provide a completely hassle-free approach to property management. We deliver on our promises and value our clients.

You can count on us to offer you the service that you need for every aspect of property management including rental property marketing, tenant placement, tenant selection, customer service, rent collection and so much more.

Contact Us

To learn more about the Portland Oregon rental market, or to speak with us about the services that we can offer you, contact us today by calling (503) 447-7735, click here to connect with us online