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Short-Term Rentals May Lead to Rising Housing Costs

Short-term rentals such as Airbnb may be to blame for rising housing costs. That’s the concern of a new cost-benefit analysis on the impact of short-term rentals by the Economic Policy Institute.

The institute looked at housings costs, renter behavior and taxes, and then analyzed the impact of short-term rentals on adjacent industries. It found long-term rental prices increased when housing stock moved into short-term rentals.

In particular, the study found average rent in New York went up about $400 a year after the introduction of Airbnb to the market. While short-term rentals have benefits, the study concluded that services such as Airbnb are getting an advantage and should have to “play by the same rules” as others in the lodging industry.

Some cities have already begun to crack down on short-term rentals. One big concern for cities has to do with tax money. Many cities depend on tourism dollars, and traditional hotel rooms generate steep lodging taxes for the local economies.

The 3 Primary Reasons to Invest in Multi-Family Real Estate

If you’re looking for an investment, multi-family properties may be a good option. There are several smart reasons to invest in these types of properties, beyond the bonus of collecting monthly rent.

Tax breaks

It’s common for multi-family properties to qualify for local tax incentives. A financial pro can help lead you through all the complexities to ensure you’re taking advantage of as many tax breaks and deductions as possible. Government grants may even help offset some of your costs.

Additional income opportunities

Multi-family properties also present additional income opportunities. For example, convenient, secure and centralized laundry facilities present opportunities to offer services like coin-operated machines. It’s a convenience that allows you to collect more money on a monthly basis.

Properties that hold value

Maintaining an attractive, multi-family property not only brings in more tenants, but also potentially attracts investors. A well-kept property that retains its tenants also retains its value. That’s something that could prove extremely lucrative in the future.

Benefits of Multi-Family Home Investing

The benefits of multi-family investing are many, and may prove valuable if you’re considering breaking into the real estate industry. Perhaps one of the biggest benefits is that you can live on the property, and then rent out additional units for extra income.

This works whether you live in a two-unit building or a larger one. While your tenant helps pay down your principle, you may even be able to collect enough in rent to cover your own living costs.

Surprisingly, maintenance costs for multi-family properties are sometimes lower than the upkeep necessary for multiple single-family rentals. That’s because big-ticket items like a new roof or new HVAC unit cover multiple properties, meaning you only have to replace one not several.

It’s also easier to close on a multi-family unit than it is multiple properties with multiple contracts and sellers. Financing may also be easier. While a single loan often covers a multi-family property, when you buy multiple properties you often need several financing options, and that means dealing with several lenders, which could drag out the process.

Newly Built Chestnut Row Homes Now Ready For Occupancy

Learn more about Chestnut Row Homes in Chicagos Gold Coast neighborhood.

A fabulous new development in the Gold Coast has just wrapped up construction and is now ready for occupancy. Dubbed the Chestnut Row Homes, these elegant new residences make up a collection of seven Italianate style row homes that seemingly blend into the Gold Coast landscape seamlessly. 

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