It is Good To Be a Landlord

It is Good To Be a Landlord
By: Nicholas A. Dunlap, CPM

“The US is now a Renters’ Market”, screamed the headlines of this morning’s Wall Street Journal. At least it is to a certain degree and in certain areas of the United States. The data is nothing new to us industry professionals who brave the storm on a daily basis in a battle to maintain tolerable occupancy rates in the properties we own and manage. Of course, the article contained a summary of occupancy rates and dwindling rents by as much as 10% in other areas of the United States, but that certainly is not taking place in Southern California.

If the turbulent economic times have taught the public anything, it is to shop around. Be it for gasoline, groceries or housing, people are looking for the best buy and the best value. As a landlord, it is important to be perceived as the best value in the eye of your customer. Apartment finishes, move-in specials and customer service weigh heavily on the minds of your customers as they write what is likely their biggest check each month. In the past this complete package was the ideal, however, to maintain occupancy and minimize the downtime on vacant units, it has become the norm. This has introduced a new level of competition to the marketplace.

Of course, the article showcased a plethora of statistics and percentages as to why now was a good time to renegotiate your lease or even leave renting to purchase a home while capitalizing on record low interest rates. The article closed by stating that falling rents will ultimately offset the recent increase in affordability of for-sale housing and that renting is still the better value. So as always, it is a good to be a landlord.