In the height of foreclosures and what seemed like almost everyone losing their homes, investors/landlords jumped on the wave – increasing the number of rental homes with low rent prices. As the demand for rentals increased – so did the rent prices – many landlords asked for higher rents and many more, raised their rents even higher.
Much of the US is still experiencing a rental upswing. But the home ownership/housing market is starting to shift and also experiencing an upswing.
As the housing market improves, and rents rise, tenants will at some point start considering other alternatives – including home ownership.
If you are a landlord, have you prepared for the shift? Are you banking on the bad economy, frustrated home buyers, tougher lending rules, etc., to keep your rental ships floating?
As a property manager, I think it’s important to stay on top of the current market conditions, but it’s also important to:
Stay in touch with your tenants about their current situation – can they afford your rent, are they considering buying a home, etc.
Don't define rental success just by the bottom line. If you want to be successful as a landlord, don’t be rent greedy. Find good tenants and keep rents affordable – that brings long term success.
Don’t bank on the “they lost their home – they won’t buy another home” attitude. One “for sure” thing – if people think they can find something cheaper – they will. If rents are high, it’s a matter of time before they look at owning again.
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .