After a rough few years in the housing and rental market due to the down economy and recent recession, it appears as if everything is beginning to turn around in 2013. While it’s too early to invest everything in the rental and housing market at this moment, there are some emerging trends that are clearly evident so far in 2013 that are important to know if you work in the real estate and property management business. A number of these emerging trends are listed below.
Rising Rents as Young People Enter the Market
There is an emerging shadow market that is about to come back into play. According to Business Insider, around 3 to 5 million people are returning to the rental market now that the economy appears to have recovered. Many of them moved back in with their parents or shared apartments or houses with others in order to save money and ride out the recession. Now that everything is turning around, many of these 20 to 30 somethings will be looking for places of their own, making demand and prices of rental properties rise.
Easier Credit Standards
Now that the recovery has occurred, or is in the final stages, the credit markets have loosened up once again, allowing people to borrow money for down payments on condos or leased properties. It is also giving people who property managers may have been wary of in the past better credit scores. This allows property managers to lease more properties more easily to prospective tenants with a piece of mind that they will pay their rent on time.
Property Management is Booming
According to Business Insider, the FHFA began selling foreclosed properties to investors who would maintain them as rentals in the foreseeable future. Which means there are a large number of incredible properties out there that need property managers who can be creative when leasing to tenants. Property management companies have suddenly become some of the most profitable in the real estate market as there is a ton of demand for their services out there these days. In other words, property managers can get creative in their business strategies over the next few years, as they will have no shortage in prospective tenants.
Higher Construction Costs
Due to the recovery of the housing market and the boom of first time home buyers, according to Business Insider, it only makes sense that construction would also rise in price, as there is more demand everywhere. This is important for property managers to know about, as they may have to repair tenants properties and will want to do it for as cheaply as possible. In other words, good property managers need to find a construction company or maintenance company that won’t be outrageously expensive every time they need their construction or repair services, allowing them to put more money in the pockets of the property owners. Having a good relationship with a maintenance or construction company that does quality work will keep tenants happy and make more money for the property owners, putting the property manager in the best possible light.
What trends are you watching out for at your property?
