By PRANDI Property Management Wednesday, July 11, 2012
Well, it's definitely happening again. We're having a "Rental Boom" as it were, and nationwide rental rates are once again increasing to record levels. I read a recent article on this topic by Roland Li that I found on the International Business Times website. According to data tracked by Reis Inc., the nationwide vacancy rate is down to 4.1 percent, which is the lowest level it has been since 2001. Meanwhile, the sales market remains weaker than the increasing rental market. Li's article breaks down a number of factors that seem to be driving this trend - uneasy lenders who have been burned by borrowers, the uncertainty of Europe's current market conditions and the effect it has on the rest of the world, banks requiring higher credit scores than before for government-backed loans, and the hardship our economy failing has had on people trying to save up 20% of the house sale for a down-payment... let alone the homeowner trying to keep up with a monthly mortgage payment (just to name a few possible reasons).
With all of these details in mind, I would say that there is certainly an imbalance in the Marin rental market right now. There's scarce availability of rental properties, high demand for them once they are listed in our inventory, as well as increased rental rates and shorter vacancy factors to consider. This is truly a win-win for property owners - as their rental properties are flying off the shelf at higher prices than we asked for just a few years ago! It's definitely a trend alert we want investment property owners in Marin to know about: The neutral and well-maintained single family homes are still renting the quickest - see 31 Palmer - this property has had less than a 14 day vacancy.
My associate Dana also recently leased a single family home over the weekend without even putting it up on the advertising market for the public (someone called asking for certain specifications for a rental home, and she knew this one was going to be available in advance). Changes are happenin' and we're hoping this great market will continue for our clients! The article on International Business Times was an interesting read. To see the full article, please click here.
To read more about our leasing and management services, or to find a rental property in our current inventory, please visit our website at www.prandiprop.com.
- Cristy Boucher, CSS Assistant Property Manager