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How High Do You Jump In a Landlord’s Market?

Things that make this a landlords market right now:

According to Trulia rents jumped 5.3% nationwide last month.

Vacancy rates are falling with landlords keeping rents competitive.

Demand is strong but there is not much new supply on the market.


Three things driving the rents up:

Nearly 50% of the homes on the market in Tucson are short sales.  Those folks are out looking for homes to rent.

Many people do not qualify to buy a home.

Those that qualify are still uncertain about home purchase.

(Graph at left represents current Tucson rental homes on market.)

 

Things landlord should consider when thinking about raising rent:

Know your state and local laws about rent increase caps and notice.

Do you really want to lose a good tenant?

Overpricing, turnover and vacancy

And then, if you do raise rents, tenants stay but are unhappy – this can all lead to non- payment, evictions, property damage, etc.

 

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

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 .

 

Comment balloon 4 commentsGabrielle Kamahele Rhind • September 07 2012 05:52AM

Comments

Gaby,

Great piont, it's a balance.  We've raised rents a few % for homes this year and some rental prices for new offerings have increased 20% over what the previous tenants were paying.

Know whats legal and what makes sense (and CENTS!)

All the best, Michelle

Posted by Michelle Francis, Realtor, Buckhead Atlanta Homes for Sale & Lease (Tim Francis Realty LLC) almost 6 years ago

You raise some interesting questions when it comes to landlording Gabrielle.

Posted by Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366, General Contractor, Dry Rot and Water Damage (Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366) almost 6 years ago

I raise mine every year in very small bumps. Its less sticker shock and they stay with me for years.

Posted by Rob D. Shepherd, Principal Broker ABR, GRI (Windermere/lane county) almost 6 years ago

Pricing the rental at full market means that the home might sit for two or three months hence reducing cash flow. Price it right to place a great tenant.

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (Real Estate and Beyond, LLC) almost 6 years ago

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