Real Estate Venture: Rental Properties Market Trends and Analysis

This report provides an analysis of rental properties as a real estate venture within a local market. It explores the scale of the industry, scope of operations, industry trends, and profitability of key players, including investors, consumers, developers, and cooperative occupiers. The study identifies potential market niches, such as for-sale-by-owner properties, resort homes, single homes for bachelors, luxury homes, and first-time buyers. It also addresses the competitive landscape, highlighting how competition leads to customer satisfaction through reduced prices and improved services, while also noting the potential for misleading practices. The report concludes that rental properties remain a top investment in the real estate industry, with each key player having a crucial role, and emphasizes the importance of identifying market niches and navigating the competitive environment for success.

Running Head: RENTAL PROPERTIES 1
Real Estate Venture: Rental properties
Student’s Name
Date

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Introduction
The report entails a rental property research I conducted in my local market. All the
information provided in the paper came from ground research and media sources. The objectives
of the study is to determine to what extend has rental properties in my community, profitable key
players in the industry and trending issues in the field of real estate. More, so the paper looks at
the issue of competition in the field of real estate since most of the services offered in the field
are much similar. My study involved use of real entrepreneurs in the field of which I had to
compensate because of consuming their time.
Scale of the Industry
Rental properties business in my region mainly entails buying and selling of land and
buildings. The business has been of great admiration by most of the great businessmen in the
region. The research of the area is based on an extensive and comprehensive analysis of the
market structure and outlook. The report is to be used for important purposes such as investment
decisions. Profits realized in the business have tempted many people to invest in the business.
Businessmen buy land, build houses and rent the buildings to people. Otherwise, they acquire
ready build buildings and rent them out.
The scale of operation of the business is large. It is a large scale type of business in the
region. For one to think of venturing into real estate, they require enough resources to cater for
the risks involved. Compared to other businesses in the region, real estate requires a huge
amount of capital to start. The business contributes much to the Gross Net production of the
region. The net worth of region production in real estate amounts to $650 million. This is the
summation of a region of 300 miles. It is a very lucrative type of business. It takes about 100 to
200 properties for one to find a real estate deal.

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Scope of Operation
The real estate market of the region ranges from local to national. However, rental
properties only have investors who depend on only the local properties they have. Some have
expanded and occupied other parts of the country. In the research, out of ten people who are
involved with real estate business, 60% of them are involved in the business nationally. What
brings about the variation is the need to standardize national policies regarding real estate. The
sales in the industry explore from the local region per company from $2.0 million to $3.0 million
nationally. The difference in prices is due to the availability of land at the local market and
national market. Prices for land are cheaper locally because the region is still developing.
Nationally, major cities are developed with major businesses going on, real estate business cost
more depending on the size of property. Most residential properties in most cities range from $2
million to $4 million.
Industry niches do not exist on their own but rather created. There are more opportunities
that can be spotted in the industry that have not been realized by entrepreneurs. Rental properties
as a business requires innovations day to day as creativity and carefully observations can create
opportunities in the market (Sanderson, 2015). The business is still developing in the region and
therefore, many opportunities wait for exploitation. Most investment depends upon real estate
but land is a basic requirement for consideration before starting up a rental property. This is an
opportunity that any real estate venture can use to maximize the output. There are over ten real
estate marketing niche opportunities that any real estate venture should be well versioned with.
One needs to identify their passion and focus there (Boardman, 2012).
First there is for sale by owner properties (FSBOs), a real estate venture is not supposed
to discount these properties. Sellers often have limited time to market their homes (Ambrose,

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Diop, & Yoshida, 2016). One can choose to use internet market strategy to deal with resort and
vacation homes. The reason being many wealthy people don’t have time to travel around for
resort homes, most of their work are done online. Focusing on creating more single homes for
bachelors can realize a huge profit. This is the best niche that everyone who is interested in real
estate should consider.
The current statistics shows that youths are 60% of the total population. Most of
unmarried youths consider getting their own single houses for leading their lives. Furthermore,
one can choose to deal with luxury homes and attract buyers by creating an appealing front
outlook. Lastly, a marketing niche can be observed in first time buyers. They lack information
about real estate, being in a developing locale in the field of real estate, most of them require
help.
Trend of the Industry and Profitability of the Players
According to the research, rental properties in the region constitutes a large part of the
total mammon of individuals in the society. The four key players in real estate are; Investors,
consumers, developers, and cooperate occupiers. Cooperative occupiers play a major role of
building properties to a competitive level to customers. They build them in an attractive way
making customers compete for them. With lifestyle in my region changing at a higher rate, low-
cost real estate is what entices national and regional occupiers (Sanderson, 2015). Improved
social and physical amenities enhance attraction.
Trend in the Industry
Developers play a key role in the real estate industry by providing infrastructure in the
economy. They act as a linkage between construction facilities and consumers. They aid in
designing, location and putting up of real estate structures. In the region, all big and small houses

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are built by developers. They give best designs and make the industry more attracting. Without
developers, there could be no arrangement of structures in the field. In addition to developing,
they also market properties after they are done with developing. ("Ho Tung, Sir Robert, (22 Dec.
1862–26 April 1956), financier; real estate owner," 2017)
The king of the economy in most sectors is always the consumer (Dua, 2017). The
economy cannot be complete without involving consumers at any given point. Consumers in real
estate are the ones that purchase properties. Developers need to develop properties according to
consumer’s specifications to gain more profit. Consumers contribute increasing capital for
continuous development of the industry. Consumers aided in the formulation of acts that enable a
fair play in the industry.
The last group of key role players in the industry is investors. They finance the industry
by purchasing and selling of properties. They enable circulation of money in the industry.
As the industry grows, more expectations and activities evolve in order to stabilize and better the
performance of the industry. Currently, the role of lodging brands are expected to be advance
where by lodging firms have put much focus in franchising as the basic pace controller (Key,
2019). Recently, franchised rooms have been reported to increase to 40 percent of the total
number in the past five years. In addition to the trend, big restaurants have increased their holes
and more indoor arenas build to accommodate a large number of people. This ensures that any
single meeting held gives a vast profit. The meeting industry has more so experienced a shrink
in the space of offices to enable private meetings be held without interference. Lastly, developers
use less but expensive resources to minimize space (Dasso & Woodward, 2018). Buildings are
built using glasses and they do not require furnishing.
Competition on the Market Place

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Competition in rental properties has resulted to customer satisfactions. Prices are reduced
and services are increased to ensure one survives in the market. Real estate ventures are changing
the culture of real estate business. They offer buyers a chance to interact with them online and
inspect the property without necessarily moving to the actual site. The professionals change
menu of their services in order to attract more customers. The competition has led to the
generation of fake prices that can attract customers but in real sense they are exaggerated.
Consumers will be required to make the federal Trade commission to enact rules to ensure the
issue of trust exists (Willis, 2016). It has been reported that competitors’ site outlook are changed
and wrong information plugged in the system.
Conclusion
Rental properties is among the top investments in the real estate industry so far. The key
players in the field are developers, investors, consumers and cooperative occupiers. Each of the
four players mentioned have a key role to play in the field. The field has market niche that any
potential investor can identify basing on their interests. The market has a high competition that
results to bettering of services and lowering of prices.
References

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Dua, P. (2017). Analysis of Consumers’ Perceptions of Buying Conditions for Houses. The
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Willis, D. J. (2016). Real Estate Law & Asset Protection for Texas Real Estate Investors.
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