Multifamily investments are seen as less risky than other forms of real estate due to diversified tenancy. Because tens or even hundreds of tenants live in the same building, operators do not have to be at 100% occupancy to operate with a positive net income. Additionally, leases are not locked in for a long period of time like they are in commercial leases. Instead, leases typically expire annually, allowing the operator to increase rents with inflation and stabilize rents with the market rate instead of getting trapped at a locked rate for multiple years.
Market volatility is low for this type of property due to the consistent and ever-present demand for apartments, especially in urban and suburban areas. Lack of inventory and tight credit discourages many from purchasing a home, while cultural preferences are shifting to starting families at an older age than ever before, all pointing to an increased population of renters.
Above all, investing in multifamily is seen as one of the best forms of investments due to the passive income that it provides to the investor over a long period of time. Instead of being preoccupied about the stock market or worrying about making a trade, a multifamily investor can place their trust in a competent asset management team to take care of their investment and the property. As a retiree invested in multifamily, you can be truly retired and let your money go to work for you by giving you promising returns for years on end. If you’re interested in investing in multifamily real estate or have any questions, please visit our website at Metonic.net or email us at info@metonic.net.