What property managers and landlords should know about the rental market.
Over the last few weeks, rental properties have stopped flying off the shelves like they were before. What’s happening in our market to cause this shift?
The main thing that’s causing our rental market to slow down is increasing inventory. We’re a seasonal business, and most people choose to rent in the summertime. From October until June, rentals usually slow down. Right now, we have about 1,200 rentals in the Jacksonville market. Last summer, that number was around 500.
“A good tenant is worth a lower rent. ”
Due to this, we could see rent prices fall slightly this summer, or at least not increase. That being said, it’s a little early to tell if this is a seasonal issue or a long-term shift in our market. A lot of our new inventory is coming from institutional buyers, and it doesn’t look like they are leaving anytime soon. We’ll keep our eyes on things, so stay tuned for more updates.
In the meantime, how can property managers and landlords deal with this change? In our opinion, it’s better to lower your price so you can find a higher-quality tenant. When you overprice your property, you usually find a desperate tenant with nowhere else to go. Having a good tenant in your rental property is key; you can be confident they’ll pay their rent on time and won’t damage the home.
This will not be our last blog post on this topic, so stick around for further information. If you have any questions you’d like answered, just call or email us. We are always willing to help.
