Increasing price levels for rental properties are causing investors who hold foreclosed properties to sell them for substantial gains in order to capitalize on the properties' current values, according to the Wall Street Journal.

The Journal provides one example of a real estate investment manager seeking to gain on the improved values for rental property investments in the real estate market. Landsmith LP, a San Francisco-based company that buys foreclosed homes and rents them out, recently sold 75 homes for $7.5 million, a significant gain over the $5.3 million they originally paid for the investments.

"The potential for this asset class is being realized sooner than we thought," James Breitenstein, chief executive at Landsmith LP, told the Journal.

An increased number of Americans seeking rental property has increased occupancy rates and caused a shift in the market in favor of rental property management companies that can now charge higher rents due to the increased demand. This is likely a result of the increased demand for rental properties in the real estate market.