Good News for Landlords: Rents Still Rising – Bad News for Tenants
The article below is both good and bad news. For investors, whom have scooped up deals on the San Francisco Peninsula through the bust, they are raking in the gold with high rents. For the rentals properties I service, it’s been amazing to see the increase in rent year over year. But demand is there – and with few homes to buy – the rental market is booming.
For those who are renting, they cringe when they see a letter from their landlord in the mailbox. Several clients of mine have emailed me this year concerned that their rent went up. Some as little as $50 – other a more substantial jump. These renters are the first time buyers of the future. Skipping dinners out to stash away cash for down payments and closing costs. And around here – where the median home price starts at $800,000 – we’re not talking pennies and dimes that need to be saved.
Right now the cheapest rental listed on the Multiple Listing Service is a 3 bedroom 1 bath home of about 1050 square feet in the Buri-Buri area of South San Francisco – asking rent is $3,000. The most expensive rental is a dated but spacious 3 bedroom 4 bath home of close to 4000 square feet in Portal Valley asking for $9,500 a month. The median rental listed today is a 3 bedroom 2 bath condo in Menlo Park listed at $4,250 a month.
Suddenly that $50 rent increase doesn’t sting as much.
But the word is out – the Bay Area is a wonderful place to live and we’re all paying for it now. Enjoy this article below…
Good News for Landlords: Rents Still Rising
Average rental prices have ticked up nearly 4 percent nationwide, according to the latest TransUnion Rental Screen Solutions industry report of data collected from property managers in September 2012 and September 2013.
Rents were on the rise for all four of the classifications of rental properties that TransUnion analyzes: newer institutional properties; older institutional properties; older properties in less desirable areas; and older properties in less desirable areas that are in need of renovations/updating. The average rent of all four types of properties was $1,072 in 2013.
The largest rental increases were seen in properties that were in less desirable areas that need renovations, up 4.2 percent to an average of $693.
“The rental market continues to be strong as demand for rental units remains high while consumer credit risk slowly improves,” says Michael Doherty, senior vice president of TransUnion’s rental screening solutions group. “The combination of improving rental risk scores and continued demand for rental properties is particularly good news for property managers. … When the credit risk of the population improves, property managers may be more inclined to tighten their criteria to ensure they are getting the best possible resident. This is integral because a resident who ‘skips’ out on a lease can cost a property manager thousands of dollars in lost revenues.”
By: DAILY REAL ESTATE NEWS
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