The U.S. rental market is set for dynamic growth as landlords prepare for 2025, according to the latest survey results released by RentRedi, the rapidly growing all-in-one property management software. The survey indicates significant trends among real estate investors, who are increasingly embracing expansion strategies and targeting substantial investments to improve their properties.
Surveying landlords between November 7 and 22, 2024, RentRedi found compelling data about the current sentiment within the housing market. A notable 59% of landlords across the United States plan to purchase additional property within the next year. Regional differences are apparent, with landlords from the Midwest and South leading the acquisition trends, each showing 69% planning to expand their portfolios. The Northeast isn't far behind at 68%, whereas only 52% of landlords operating on the West Coast expressed similar plans.
Breaking down the data by landlord size reveals intriguing insights. Large landlords, defined as those managing 20 or more rental units, are the most inclined to make new property acquisitions—73% plan to buy. Medium landlords, handling 5 to 19 units, follow closely with 69%, and 63% of small landlords, who manage 1 to 4 units, also intend to invest in new properties.
Beyond acquisitions, landlords are significantly focused on renovations and property improvements. A solid 52% of real estate investors are prepared to spend at least $5,000 per unit on enhancing their properties, demonstrating a strong commitment to increasing property value. Notably, 27% of landlords are budgeting upwards of $20,000 for renovations, indicating the importance of maintaining and upgrading rental properties to attract tenants.
Among various landlord categories, significant disparities exist, particularly concerning investment commitments. For example, the survey highlighted 37% of large landlords planning to invest $20,000 or more per property compared to just 20% of small landlords willing to allocate similar funds. Regionally, the Northeast shows considerable renovation ambition, with 60% of landlords intending to spend over $5,000 on property improvements, whereas the South takes a more conservative approach at 52%, planning expenditures of less than $5,000 per unit.
General income generation remains the guiding principle for landlords this year, hence their intention to focus predominantly on revenue growth. The analysis shows 47% of landlords prioritized income generation as their main objective for 2025. Other goals such as long-term investment and financial freedom followed, occupying 33% and 19% of respondents' priorities respectively. Interestingly, short-term value increases rank as the least significant objective, which emphasizes how the majority of landlords view real estate management through the lens of long-term wealth creation.
Operational challenges also pose hurdles for many landlords, with 31% citing time commitment as the main barrier to reaching their objectives. Other persistent issues such as increased maintenance costs, property taxes, insurance expenses, and stricter regulations continue to impact landlords universally across all regions and portfolio sizes.
The survey results are clear: landlords are eagerly preparing for growth prospects as 2025 approaches. Ryan Barone, CEO of RentRedi, emphasizes, "Removing operational barriers and time constraints are where RentRedi can be most impactful in helping landlords reach their growth goals in 2025." The platform aids landlords by streamlining processes from listings and tenant screening to rent collection and maintenance coordination, effectively allowing property managers to work more efficiently.
Investors can leverage RentRedi's unique flat pricing subscriptions, which do not increase as they scale their property portfolios. This cost-effective model promotes growth, as landlords can add numerous properties, units, tenants, and users without incurring additional fees. Key features such as autopay and tenant screening contribute significantly to securing timely rent payments—something landlords greatly appreciate.
With 2024 presenting both challenges and adjustments within the real estate market, these survey findings from RentRedi come as both informative and actionable for landlords considering their next steps. The emphasis on high-quality properties and thoughtful investments will steer the rental market effectively through uncertain waters, paving the way for sustained growth.
The positivity and adaptability shown by landlords paint a promising picture of the future of the rental industry as they collectively prepare to meet upcoming challenges head-on.