Rent.com website has conducted a survey among 500 of property managers across the states who manage thousands of rental properties and even more rental units. The results have provided some insight on the current and forecasted trends in rental property management.
Shrinking supply
The vacancies have almost hit a 20-year low. The U.S. Census has reported that the vacancy rates from April to June 2015 were 6.8%, whereas the same period in 2014 had 7.5%. The last time vacancy rates were this low was the last quarter of 1985 when they were 6.7%.
It has been more than 5 years that vacancy rates have been demonstrating a downward trend.
No need for compromise
More than half of property managers have reported they were quite unlikely to change anything in their policies, let alone lower rates to attract residents. Around a third of managers reported that it was taking them less time to convert leases than previous year, because vacancies are in short supply.
Money is the drive
More than half of the respondents said they weren’t planning to become more selective in their screening process. Only some 17% said they were going to become more discerning and set the bar higher with respect to credit scores, income-to-rent ratios and references.
But, 53% said that money is the deciding factor when it comes to choosing a tenant. They would rather bring in a new resident at a higher rate, than keep the current tenant they know.
An 8% rate increase to be expected
As many as 88% of property managers raised the rent in 2015, and the trend is not expected to wane any time soon. As it was expected, the primary reported reasons were increased demand and low inventory, but maintenance and remodeling were also listed as the driving forces behind the hike in rates.
Guarantors needed
Around 40% of property managers said that a rising number of applicants fail to fulfil the income requirements and need a guarantor to close a lease, again because of multiple applicants vying for the same rentals.
Renting rather than owning
45% of managers report that more and more of their tenants are millennials who defer property ownership to renting for many reasons: limited job vacancies, low incomes and high student loan debts.
Mortgages traded in for leases
54% of managers say they have seen a rise in the number of ex-homeowners who seek rental apartments, which only adds to the saturated market. The same trend was spotted in 2014, but it has become stronger since then.
Tenants hold on to their leases
Tenancies have become longer which also contributes to the increased demand on the market. 5% more renters are renewing their leases when compared to 2014.
Property management in Pacific Beach
If you would like to make more with your rental in Pacific Beach, but without the hassle, make sure you contact Realevate Specialists to find out how it can be done. We have a nationwide knowledge and experience spanning more than 25 years, coupled with local expertise in property management in Pacific Beach. Call today to find out more about our comprehensive services that can help you maximize your return on investment! 858-997-2100 (Mission Valley) or 951-461-0100 (Temecula).
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