Let’s talk about the current State of the Affairs of Residential Rentals. During the last year, it has taken us longer to rent a property than ever in our 30+ year history. What used to rent in a few days has taken weeks and even months in several circumstances.
A few reasons:
One such cause for a delay in occupying a rental home or duplex is that our area has been overbuilt with new apartment complexes. These companies are offering discounts on Security Deposits and sometimes offer several months Rent Free. In one of my recent real estate business groups, a representative of a new complex that hasn’t even opened yet, but will in the fall, shared with us that they plan to provide four months rent free. So, although prospective tenants might desire to rent a house with a yard, perhaps even a fenced area for a pet… with offerings like this they reconsider. Their thoughts “well maybe we’ll take this now and rent a house in a year or so.”
Secondly, as property managers we are required to do our job two, three and even four times before we get an appropriate tenant. Reality is that we turn down several perspective tenants because of credit history, criminal records, evictions and/or they do not receive enough income to afford the property. Although we provide the upfront knowledge that they need to make three times the rental amount, they failed to read this or hear it. This is gross income, not Net. Finding qualified tenants has been more difficult, especially for the smaller properties.
Thirdly, Condition may prevent your home from being rented promptly because your competition is that of these new complexes with benefits and amenities. It is no longer acceptable for walls to be slightly marred or dinged or carpet a little shabby or for the home to have no shrubs out front or curb appeal or for everything to be bland, white or beige. Even in selling a home, the condition required is just broom swept, but this is no longer true of rentals. The current prospective tenants expect perfection! They want luxury vinyl tile or hardwood floors or ceramic tile, fresh paint in contemporary colors, manicured lawns, etc.
And if you’re managing property on your own, good luck in procuring a tenant promptly who qualifies and will love and take care of your property! I fear that those that we, management companies, have rejected are going to call on you because they may believe you will not check criminal, credit, confirm employment or income or check court records for evictions. Sad to say, but as an individual owner of a rental home, you’re probably getting our rejects!
Even if you desire to manage the rental property yourself, hiring a property manager could protect you from much. Allow us to do the marketing, the screening, the contract and procure the tenant for you and then you could manage from that point on! The laws, the contracts, Fair Housing guidance and many other aspects of property management are constantly changing and being updated. If you’re not in the business, you don’t always know what to do to protect yourself. Many tenants are constantly researching AI for appropriate language to avoid paying rents, to have pets without fees or even to sue you for treating them unfairly in some form or fashion. No one can protect you from everything, but we try our best to be as fully educated in these subjects as possible.
AND now the good news!!! It appears the market has finally begun to turn, and we are able to put tenants in properties a little more quickly, but at slightly lower prices than in the past. If you have a tenant in your property and they are paying and taking care of the home, count yourself among the blessed and try to keep them. It is costly for you to do a turnover and it is costly for a tenant to move so it’s a benefit for all if they stay! If your property becomes vacant, we encourage you to scrutinize your applicants as much as you can or hire a property manager to do that on your behalf to protect yourself.
As always in real estate, what goes up will come down and what goes down will come up! It’s the nature of real estate. The value does not go away. It just changes slightly from year to year. So, hold on to your investments, improve them, maintain them and keep on renting!
For more information contact:
Vickie McDaniel
Gates Management & Realty, www.thegatetohome.com
Your 30+ year property management company in Orange/Alamance and surrounding counties.
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