Reviewing Rental Rates in Southern Oregon
The beginning of the 4th quarter is typically the time of year that Southern Oregon Property Managers evaluate their residential portfolios and determine rental adjustments. The logic behind this timing is that school has just resumed and the holidays are nearing so renters are less likely to move due to increased rent. When determining whether or not an increase in rents is logical and will be tolerated by tenants there are many factors to consider.
- Rental Status – How long have the current tenants occupied the premises? Did they move in recently? If rental rates are increased shortly after new tenants move-in it is generally not received well. A positive landlord/tenant relationship is most beneficial to all parties and if the rent is increased as the tenant unpacks their last moving box it could lay the foundation for a rocky road.
- Location – Is the home located in an area where home and rental values are increasing? If the value of the surrounding homes is headed upwards a rental increase is more justified than if it is located in an area where home values are going down.
- Type of Rental Property – Single-family homes are often much more in demand, therefore justifying an increase in rents. Whereas, an owner of 1 or 2 single family homes is dependent on a limited source of rental income and may be hit harder by a vacancy than an owner of a multi-family unit.
- Condition of the Home – If a home is well maintained it’s more realistic that higher rents can be obtained, especially if there are recent updates. Regular maintenance and practical improvements are logical steps to increased home value and rental rates.
- Vacancy Rates – Low vacancy rates are great for rental owners and provide opportunity to increase rents. It’s the basic rule of supply and demand. The Property Managers at CPM closely monitor rental market trends and can provide market data to help determine if a rate increase makes sense for your investment.
Now is a great time to discuss the rental market, property improvements and upgrades with your Property Manager. They can provide tips to boosting the value and appeal of your rental property and recommend steps towards increasing your bottom line and value of your investment.