Are you considering leasing out your home instead of selling? You’re not alone. What can happen to you as a landlord? What do you need to know? With the cost of a sale transaction averaging about 8% of the value of the home, that’s a......
No one can know for certain when we’ll be able to get back to “business as usual” but as property investors, it’s important to stay up-to-date on real estate market data in order to protect our investments and remain on course toward our financial goals. That’s why we’ve compiled data from our own portfolio of investment properties here in Austin, Texas, some 1836PM crafted resources for investors, and other highlights from our go-to industry thought leaders.
The statistics from our own portfolio seen below were collected via the software and systems which we’ve integrated over the years and currently have in place to efficiently monitor our clients’ investments. The information below is also indicative and specific to the state of the housing market since the introduction of the global pandemic in early 2020.
National Average (multi-family or managed housing industry):
*Data collected via the National Multifamily Housing Council. Data shows rent payments made by the 6th of the month.
1836 Property Management founder, Matt Leschber, provides more detail on the statistics above and quick stats on the supply of active rentals and the number of leased properties in May 2019 versus 2020.
In June 2020 we saw a huge increase in tenant lease leads. We attribute this to pent up demand caused by tenants’ caution to move in earlier months following the introduction of the pandemic.
Condition and price, as always, really determine DOM. 1836PM has been executing and perfecting remote showings for years. Now we’re able to execute remote move-ins with the new systems we’ve established as well. Three days of vacancy and a sanitation-heavy cleaning process before any new residents move-in have also been implemented when sufficient time has not elapsed between residents.
*Via virtual NARPM Legislative Conference in May 2020.
95% of property managers are offering payment plans to residents impacted by the crisis, but less than 5% of renters took advantage of these in April.
Lease renewals hit an all-time high of 57.9% in April as renters opt not to move for the time being, and most property managers are keeping renewal rates flat.
New lease signings have reached 2019 levels- after shelter-in-place orders initially delayed the start of leasing season. Rents for new leases are 4.5% lower than last year.
Search for rentals on Zillow exceeded expectations – Searches dropped off mid-March into April then went back up at the beginning of May.
3D home tours jumped 600% –
virtual home shopping
experience now new normal.
Making sure an investment property is in make-ready condition, will not only ensure fewer days on the market, but it will get a great tenant signed faster and a premium on rent. Here’s what we recommend to investors to get their investment in proper shape to make more money when it goes on the market.
This Real Estate & Market Insights report will be updated quarterly to reflect the most accurate and new information that we’re able to provide.
We greatly appreciate the relationships we’ve built and maintained with our agent partners over the years. So if you have any questions about the data or resources above, or if there is any other specific information that we can provide to you, please do let us know!
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