What Landlords Need to Know about Rental Market Trends Over the Next Year
As we consider the future of the market, landlords need to remain aware of trends and shifts that could impact their investments. Economic, social, and market factors could all play a part in impacting the demand for the rental market in 2017. Recognizing these patterns will enable landlords to make better decisions while being ready for challenges and taking advantage of growth opportunities within a constantly shifting landscape.
Remote working will likely play an influential role in shaping the rental market over the coming year, as companies and employees embrace its flexibility. Renter preferences have also changed due to this phenomenon; there’s now more of an emphasis on rural and suburban properties due to tenants no longer needing to reside within major urban centers for work purposes. Less-popular rentals could capitalize on this trend by altering rental rates and marketing strategies to target this growing segment of renters.
Rent prices are expected to rise in many areas due to recent spikes. However, the trend should level off over time, especially in areas with rapid price growth. Demand is expected to outstrip supply in markets with high demand, strong job markets, and quality schools. Landlords should stay updated on market developments and pricing strategies to maintain profits and cost-effectiveness.
In the coming year, state and local governments are expected to pass laws to protect tenants and control rent in the rental market. Landlords should be aware of changes in regulations, such as rent caps, eviction moratoriums, and security deposit rules, which aim to protect tenants while restricting landlords from increasing rent or evicting problematic tenants. Understanding these legal frameworks is crucial for successful legal navigation.
Landlords must meet tenants’ increasing sustainability demands. Renters tend to prioritize eco-friendly living environments with solar panels, energy-saving appliances, and sustainable building materials such as bamboo. Landlords may wish to implement eco-friendly improvements at their properties such as installing energy-saving lights, improving insulation, or providing recycling options. These upgrades not only attract environmentally conscious tenants but save on utilities while raising property values as well.
Tenants renting apartments should also continue their trend of desiring more amenities, with tenants increasingly looking for features like modern kitchens, home offices, and in-unit laundries as important tenants attract them to specific rentals. Landlords might take steps to differentiate their properties with these features; even small upgrades like high-speed internet or upgraded appliances can make an apartment rental more desirable and help retain good tenants.
Landlords should anticipate an increasing demand for flexible rental terms from renters. Tenants increasingly choose flexible lease arrangements such as short-term and month-to-month agreements for work-life changes that disrupt traditional contracts. Offering these flexible leasing terms could attract tenants looking for temporary housing as well as those looking for long-term commitments.
Landlords are expected to face numerous changes in their rental markets in the coming year, necessitating adaptability and flexibility. They must stay informed about trends like remote working’s impact on demand, regulatory changes, sustainability considerations, and changing tenant expectations to thrive in this competitive and dynamic rental market.