Rents Continue to Rise
Everybody seems to be wondering the same thing.
By now, if you’re at the point in your landlord career and you’re reading this blog, you’re probably aware of the awesome rental market most of the country is taking advantage of, well, of course excluding tenants.
However, landlords near and far are realizing their investments can pull in some serious dough as renters are lining up to fill out applications and give their deposits more so than we’ve ever seen in the past.
Properties that used to rent for $800 a month are now raking in $1300 a month. Nearly double you guys, nearly double.
But why is this happening?
Did you know home ownership rates haven’t been lower since the great depression?
Millennials are simply sticking to renting. Financing has been tight since the recession, homes are a bit older now due to the cease in new construction and are warranting higher repair costs as A/C units and well equipment are reaching the end of their lives.
It’s the new fad: less maintenance costs, easier process than closing on a property, and you’re not tied down to one place for more than a year letting you travel around more freely.
The bottom line is we’re witnessing a HUGE influx of people interested in renting, rather than buying. On average, we receive 50-60 rental inquiries a day on only a few properties that are available at a time, and they don’t last very long.
But let’s answer the question
It appears there is still no end in sight for rent increases. The first indication of a market that has reached its peak is an increase in availability. So far there is no indication of surplus inventory with most of our properties renting within 7-10 days to a highly qualified screened tenant.
Increasing rents when it comes time to renew didn’t use to be a very common thing, and if it was done, rents were raised very, very marginally.
That’s not the case now.
Some tenants who have resided in a property for 3+ years have had their price tag jump up 10-20%, some being close to a $300 a month increase.
How are rents jumping $300?!
The most common situation this occurs is when a landlord is experiencing two things:
A) They’ve hired a really, really crappy management company that isn’t with the times (this is so common it makes us sick)
B) They’re doing it themselves and aren’t in the day to day business and understand the markets, or
C) (Yes I said two things, but this should be said too) When a landlord knows they can get a lot more rent for their investment, but feels bad asking the tenants for an increase
If you fall into category C, like a lot of landlords do, it typically means you have a sort of emotional involvement, and are treating your investment more like a humanity project rather than a money maker.
Ok, maybe that came across a little heartless, but let’s be real. We’re in the business of making sure landlords are making the most money their investment can.
But it isn’t just category C, it’s all three cases.
Are you getting market rents for your property?
Look, we’re not here to make a quick buck off you. We truly care about our clients and those who own rental properties because we get the struggle. Being a landlord isn’t easy, but we make it easy for you.
If you’re wondering if you’re getting market rents, we’ll let you know. Shoot us an email, call the main office, or (the fastest way) jump on our website chat and we’ll let you know if you’re missing out on the best landlord market we’ve ever seen.