Memphis real estate investing offers tremendous opportunities for those wanting to be in the rental market. Memphis, like most major cities, has a very diverse population. Some parts of Memphis have a very small rental market (upscale areas) while others you are better off avoiding because of high crime rates and high unemployment rates.
Still, Memphis has a stronger rental market than most major cities. Some of the best parts of Memphis to for rentals are East Memphis/Colonial Acres, High Point Terrace, parts of Midtown, Cordova, and the University of Memphis, White Station and Grahamwood areas, enjoy healthy demand from good tenants as they are close to jobs and amenities. Other areas such as Berclair and Southeast Memphis (including Fox Meadows and Parkway Village) also have good rental demand.
Rental real estate in Memphis is one of the more lucrative investment opportunities you will find. However, you can't one day just decide to become a landlord. To make money in the Memphis real estate market you do need to know the ropes. If you're new to the market, you should consider using a property management company until you become confident you understand the regulations involved and are knowledgeable about placing competent tenants in your properties.
Real estate is about location, location, location. You don't need to know the global rental market but here are some tips you want to educate yourself about for the Memphis market:
Here is a good reason that you need to know rental markets at the local level. Tennessee Code Annotated (T.C.A.) 66-28-201(c) states in part that:
Rent shall be payable without demand at the time and place agreed upon by the parties. Notice is specifically waived upon the nonpayment of rent by the tenant only if such a waiver is provided for in a written rental agreement.
What that means in practice language is, as a landlord, you must give tenants written notice that they are behind in the rent if they fail to pay and before you can begin eviction proceedings. Reality is that owners are busy people and may go several weeks before realizing that a tenant failed to pay the rent. That effectively slows down the eviction process. However, by including the clause below in your lease agreement, you are no longer required to give the tenant written notice that they failed to pay the rent.
Rent is due without demand or notice from Manager/Landlord.
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Author bio: Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years. He also draws upon 25 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.