Rental property market heating up

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Photo credit KaraGrubis/Getty

Sales of multifamily rental property went up by one third over last year.

The market for multifamily properties is heating up on both an individual buyer and on a corporate level.

Andrea Tyler with New Orleans Metropolitan Association of Realtors says they represent a great investment:

"Multifamily properties offer so much more than single family homes," says Tyler.  "They have additional income in addition to being able to have the residual income in the future.  It just provides a lot more ability in the industry that we're in now."

Tyler says the market is right for people looking to invest in income generating property and live on site.

"Having a multifamily property gives them a high stability, number one.  Number two, more opportunity to get more income and still travel to different parts of the world."

According to Tyler the region is also attracting bigger players to the market, buying major properties like apartment complexes.

"People from out of the area are seeing the potential that New Orleans has to offer," Tyler says.  "Therefore they want to invest their monies here and they want to come and experience New Orleans."

First it was single family homes in New Orleans that got hot on the market and the prices shot upward, the same looks like it's going to happen with rental properties as well.