Which of the following statements about rental properties is true?

The statement that income properties are often purchased by national investment companies, such as Real Estate Investment Trusts (REITs), accurately reflects a significant trend in the real estate market. REITs are known for pooling capital from multiple investors to acquire and manage income-producing real estate. This allows them to invest in a diversified portfolio of properties across various locations, including large apartment complexes, office buildings, and commercial properties.

The presence of national investment companies in the market can lead to increased competition for properties, sometimes driving up prices and affecting local investors. By investing in a wide range of real estate assets nationally, REITs leverage economies of scale and professional management, which can enhance returns for their investors.

In contrast, local investors tend to focus more on properties within their geographic area due to familiarity with the market dynamics and local regulations. While rental rates can vary by market and may sometimes be influenced by the presence of national investment companies, it is not a universal condition that they are always higher in income property markets. Lastly, the idea that income property markets are always national in scope is inaccurate, as many rental markets can be localized and influenced by regional economic factors.