The rental market is a constantly shifting field. Empire’s experts are careful to stay on top of it and to always be aware of each fluctuation.
What we have observed:
The rental market is beginning to soften as the severe competition of the previous two-years levels out. Rentals in the higher price range, $1500 and above, are receiving less attention as the economy in Eugene does not seem to be building the upper management that can afford these upper-end homes leaving them to sit vacant for a bit longer. Since there are only really two primary ingredients to a rental (price and quality) it may be time to start thinking about a slight rate reduction if your home is vacant for too long. Those homes priced between $1200-1400 are receiving slightly less interest as well but are not as affected as the more expensive homes.
Those homes in the lower price range of $1100 and under are as of yet unaffected by the decreasing intensity of the competition. Interest remains the same, as do the number of incoming applications.
There is one factor however that affects all levels of the rental market. Fewer and fewer applicants qualify. While interest remains the same on the lower-priced levels of housing, the quality of applicants is falling drastically. Vacancies are lasting longer simply because few are up to Empire’s standards.
What may be on the horizon:
While the market is already slowing, rents are remaining steady for the time being. Experience dictates that the steady increase in property prices will not last. Already the Real Estate Market is beginning to show signs of leveling out. It is only a matter of time before that same drop affects the Rental Market.
Conclusion:
Being a landlord is about knowing how to weather the bumps of an ever-changing landscape that is the rental market. Due to the panic over the dangerous legislation introduced in the 2016 session, a high percentage of landlord decided to sell, severely limiting the number of available rentals. The lack of inventory on the market, in turn, boosted the rents. Those who did not sell suddenly found that their rental property had increased in value almost overnight. For the majority of 2017, those landlords were flying high. The time when that flight turns back into plodding along the track is approaching. What goes up, must come down, and the market is finally returning to normal.
Happy Landlording!