Housing Slow Down and What it Means for Rentals

If you have been paying attention at all in the last year, you have noticed some interesting things happen in our housing market. Houses are not only in short supply, they’re now seeming to sit for a while and their current elevated prices. Many speculate that this is due to rising interest rates (especially for those with higher credit), but there’s it’s more complicated than that. With the slow down of the housing market, it has led to speculation about the impact this will have on the renting market. The correlation between the two is complex, but one things has always been clear that as the housing market cools off, the rental market is likely to become more active. Landlords should be prepared for this uptick in activity, and there are several steps they can take to ensure that they are well-positioned to capitalize on the trend.

As we said earlier, interest rates are on the rise. This is making it more difficult for many people to qualify for mortgages, and it is also causing some people who were considering buying a home to put their plans on hold. This means that there are fewer people looking to buy homes, which is naturally having an impact on the housing market.

At the same time, there are still many people who need a place to live, and this is where the rental market comes in. As people are priced out of the housing market, or as they decide to delay their home purchasing plans, they are beginning to turn to the rental market for their housing needs. Another complication for those who had a hard time buying is that this is likely to drive up demand for rental properties, which could be good news for landlords.

So, what can landlords do to prepare for thisuptick in activity? There are several steps they can take to ensure that they are ready to take advantage of the trend.

To stand apart, justify any price increases and keep tenants around, landlords should make sure that their rental properties are in good condition. This means ensuring that everything is in good working order, and that the property is clean and well-maintained. Landlords should also consider making upgrades or renovations to their properties to make them more attractive to renters.

Landlords should also be prepared to market their properties consistently and across multiple platforms. Online classifieds still have their place along with local publications and of course, social media. Landlords may also want to consider offering incentives, such as a discount on rent for the first few months, to attract renters.

Nowadays, many people aren’t even looking for lower rent, but flexible lease terms. This may mean offering shorter leases, or being willing to negotiate on rent prices. Landlords should also be prepared to be responsive to tenants’ needs, and to make any necessary repairs or upgrades quickly.

As demand for rental properties increases, landlords may be able to charge higher rents. However, they should also be aware that there is likely to be more competition in the rental market, so they may need to be willing to negotiate on price to attract tenants.

In conclusion, the correlation between the housing market and the rental market is complex, but it is clear that as the housing market cools off, the rental market is likely to become more active. Landlords should be prepared for this uptick in activity by ensuring that their rental properties are in good condition, marketing their properties aggressively, being flexible when it comes to lease terms, and being competitive when it comes to pricing. By taking these steps, landlords can position themselves to take advantage of the trend and to capitalize on the growing demand for rental properties.