As many of you know, it’s been a down year for leasing. After three years of rental rate growth, pricing is coming back down—compressing rental rates on single-family and multi-unit leasing.
Here are some numbers… Say your property’s preferred rent is $2,000 per month. If it sits vacant for a month, that’s $2,000 down the drain. Plus, in high inventory markets, waiting often means adjusting the price to $1,800 to attract tenants.
Scenario 1: Delayed Adjustment
- Lost Rent: $2,000
- Reduced Price: $1,800
- 12-Month Income: $1,800 * 12 – $2,000 (lost rent) = $19,600
Scenario 2: Immediate Action
- No Lost Rent
- 12-Month Income: $1,800 * 12 = $21,600
Acting fast typically means higher long-term income. Please remember days vacant are lost forever and right now, renters have a lot of options.
There are always peaks and valleys in real estate investing, so there is no need to panic. Historically, the market will correct and we’ll be back to higher rents and will be trending in the right direction again.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
