Rental Rate Increases, Oh My!<>p May was a good month for property investors! With vacancy rates still low and an average 6.3% increase in rental rates, there was plenty to be happy about. We’re definitely seeing significant movement in rental rates that are making up for the recession years in which increases were pretty minimal. There is still a general shortage of housing driving the rental rates as population increases and household formations eat up the increases in new construction inventory.
Property Management Value
Do you know someone that would be surprised to hear about such great rental rates? One of the values of having a professional property manager on your side is knowing rental trends as they are happening and getting you the best rate the market will allow. How much equity would be lost by missing out on keeping up with the market? Would keeping up on maintenance costs be easier with more rents coming in? If you know someone that is missing out or is just plain stressed out, give me a call and I will make sure they are taken care of.
Vacancy and Renewal Rates
I’m starting to feel a bit like a broken record here this year, but once again, performance was awesome with a 1.01% vacancy rate and 77.78% renewal rate for May. Most people are opting to stay where they are with a rent increase rather than incur the expense of moving. We are seeing some instances where rent increases are not tolerable by the tenants’ budgets however, which generally results in a turnover and the costs associated with it as most homeowners prefer to have top dollar rents. In some cases however, it is more sensible to avoid those turnover costs, and a risk versus reward assessment is presented to the homeowner if there is any debate on which course of action best suits the homeowner’s needs.