This is the time to be a landlord: The statistics keep rolling in, and they’re all pointing in the same profitable direction – rental housing supply is low, and demand is high. Some trends have been discovered in the rental reporting the last few years.
One trend is that Rents are calculated to reflect the going market rate in each area. Landlords find themselves in the awkward position of making the decision whether or not to raise their long-term tenants rent; but it is appropriate to do so when the markets are ever changing. Communication is the key on this point. It is always a good and respectful practice to keep the tenants informed of any changes that may be coming.
Another trend is that tenants are becoming more long-term, meaning there are less and less vacancies. This is good for everyone involved. The landlord and the tenant both have the peace of mind and the consistency that comes with an established relationship. If you have a good relationship with your current tenant, it’s almost always more profitable to accept slightly lower-than-market rent to keep a stable, consistently good tenant.
It has been found that Millennials make up one-third of the US population (in 2013) and only 37% have chosen to own their homes, which means they are a big portion of the renters out there! And they have specific demands in the amenities that they want (open floor plans, large kitchens and closets, access to technology). Marketing to these wants and providing these can stand you in good stead for the long haul, even if the pendulum swings toward homeownership again.
Consistency in practice seems to be the most profitable decision when it comes to being a landlord. Proper tenant screening while remaining fair and consistent for all the renters that apply, will grow your reputation as a good and fair landlord. Also maintaining the properties, responding quickly to maintenance requests and fostering good relationships with tenants will all work toward good landlord ship in the long haul.