What we are seeing in the Las Vegas rental market for 2013 is that resale homes are scarce and hard to buy for renters and first time homebuyers. This is due to the number of investors who are buying up the foreclosures and short sale properties on the market. These investors are quick to negotiate and able to pay in cash in order to invest in deals that they recognize as profitable. They might keep these homes on the rental market for about five to 10 years, and then they will likely sell them, either to an owner occupant or through a regular mortgage involving a bank.
With this current trend holding on to the Las Vegas market, it seems logical to expect that rental prices will enjoy a steady increase for the foreseeable future. This is contingent on the quality and care of the property, of course. The rental value in the home you own will only increase if you are maintaining your home well. You have to remember that there is competition in the market, and you must make sure your property measures up. You are competing with people who have bought their homes with cash and do not have any overhead costs, such as mortgage payments to worry about. Try to be in the same position as much as you can. Even if you still have a mortgage, the best way you can compete is by maintaining your home.
Think about what you can do to stay competitive on the rental market. Paint your house as often as you can, especially between tenants. Keep your carpets clean and free from damage. Do your best to retain your good tenants. We have found that another trend in the rental market is that tenants are staying in their properties longer, especially when the property is well maintained and the rent stays consistent or only increases a little bit every year.
Remember that the tenant is buying you a house. One day, it will be all yours and the tenant will only have a lot of rent receipts to show. Keep the long term investment in mind when you are trying to decide whether to do a repair or make an upgrade to your tenant-occupied property.
If you have any questions about the rental market in Las Vegas, or about property management in Las Vegas, please contact us at Blackbird Realty and Management.