It’s no secret that Utah is a great place to invest in real estate. In fact, for many years now, it has been consistently ranked as one of the top states in the nation for rental property returns. So if you’re considering investing in Utah real estate, rentals are the way to go! Let’s jump into 11 reasons why.
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1. There’s a high demand for rentals in Utah
The number one reason to invest in Utah rentals is their high demand.
The state’s population is growing rapidly, and there’s not enough housing to meet the new residents’ needs.
This is especially true in Salt Lake City, where the population has grown by leaps and bounds in recent years.
As a result, there’s a very high demand for rental properties in Utah, which means you can charge top dollar for your units.
2. Rental properties in Utah appreciate at a rapid rate
Another great reason to invest in Utah rental properties is that they appreciate them at a very rapid rate. This is due to the state’s strong economy and growing population.
Utah has been one of the top-performing states in terms of real estate appreciation for several years.
As a result, your rental property will likely increase in value rapidly, providing you with a nice return on your investment.
3. Utah has very favorable tax laws for investors
Taxes are always a consideration when it comes to investing in rental properties, and Utah has some of the most favorable tax laws for investors in the country.
If you structure your investment properly, you can pay very little taxes on your Utah rental property. This is another reason why rentals are an excellent investment in the state.
4. Rental properties provide consistent monthly income
One of the best things about investing in rental properties is that they provide a consistent monthly income. This is money you can count on coming in every month, which can help cover the mortgage on your property and provide you with a nice profit.
Many people get into the rental business because of the monthly payments, but it’s important to remember that other expenses come along with being a landlord.
These include repairs, upkeep, and vacancy rates. Despite these expenses, rentals can still be a very profitable investment.
If interested, you can see our story on How We Became First Time Landlords In Our 20’s
5. You can leverage your investment with borrowed money
Leveraging your investment can be a great way to increase your return without putting any more money down.
When you borrow money to purchase a rental property, you’re essentially using other people’s money to finance your investment. This can help you to buy more rental properties and grow your portfolio at a much faster pace.
6. Outsource the management of your rental properties
If you don’t want to deal with the day-to-day management of your rental properties, you can always outsource that task to a property management company.
These companies will cover all the details for you, from finding tenants and collecting rent to dealing with repairs and maintenance.
This frees your time to focus on other aspects of your investment portfolio.
7. You can buy property in a wide variety of price ranges
Investing in rental properties doesn’t have to break the bank. You can find properties in various price ranges, from small condos to large single-family homes.
This means that you can find a property within your budget that will give you a good investment return.
Although many years back, our first property was a 1970 townhome and cost $100,000. Of course, the market has gone up, but there are still good deals.
8. Potential for growth in the Utah rental market
The Utah rental market is still in its early stages, meaning there’s a lot of growth potential. As the state’s population grows, so will the demand for rental properties.
This means that your investment is likely to appreciate at a very rapid pace.
9. It’s easy to find quality tenants in Utah
Many of the renters in Utah are Mormons, which means that they’re generally very reliable tenants. They’re also less likely to cause damage to your property or fail to pay rent on time.
This makes it easier to find quality tenants, which can help to minimize vacancy rates and maximize your profits.
10. Utah is a great place to raise a family
It’s hard to deny that Utah is a great place to raise a family. The state has a low cost of living, great schools, and plenty of outdoor activities to keep everyone busy. This makes it an attractive place for families, which can help drive up demand for rental properties.
Many people go to Utah to start a family; they’ll need to rent a place to live before they can buy a house. This provides a great opportunity for investors looking to cash in on the state’s strong rental market.
11. It’s a great place to retire
Utah is quickly becoming a popular retirement destination, and those retirees need a place to live. This creates an excellent opportunity for investors to purchase rental properties that can be leased to these retirees.
So not only will you be providing them with a place to live, but you’ll also be able to collect a nice monthly rental income.
Conclusion – Consider Utah for your Rentals
Investing in rentals in Utah is a no-brainer when you get to it. If this is the business you’re considering getting into, you’ll find plenty of reasons to do so.
With a strong rental market, great potential for growth, and plenty of quality tenants, you’ll be in a great position to make some serious profits.
Now is the perfect time to get started in the Utah rental market, so don’t wait any longer.
Start looking for properties that fit your budget and reap the rewards of being a landlord in this great state.
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!