As with many areas in the United States, rental demand continues to climb in the Cleveland area. The latest data from the Federal Reserve suggests that now is a great time to be a property owner since during the last three months of 2015 property owners’ rental income amounted to around 4.3 percent of the U.S. national income. Meanwhile, key takeaways from the “Emerging Trends in Real Estate” report published by the Urban Land Institute and pwc has us looking forward to successful investments for properly managed rental assets.
What the analysts are saying
• Prospects for the multifamily rental sector still rank “well” for 2016.
• Due to the size of generation Y, demand for both rentals and ownership housing is poised to expand.
• Investment strategy for single-family home rentals is changing from the “flip” strategy to becoming operating businesses, as more people opt to rent by choice rather than necessity.
• Investment prospects for single-family homes rank “fair” for 2016
• Some older home renters are opting for luxury rentals.
• Domestic and global capital continues to flow into the U.S. real estate market.
• “The industry is trending toward more intensively active management…”
• Interest rates will continue to rise.
• “The Supreme Court has affirmed that local communities can take legal action to address disparities in housing, even if they are the unintentional result of actions rather than conscious discrimination.”
• Community projects such as the revitalization of Cleveland’s Public Square are promising to attract families to the area (many of them renters).
• The area’s core industries have bounced back and with it manufacturing jobs have been recovered; renters have flocked to the Cleveland area in an attempt to work close to home.
• Millennial populations tend to rent for longer periods than previous generations and they add to the overall rental demand in nearby areas.
What if my rental is vacant?
Selecting the right tenant for your rental is a critical first step toward maintaining the value of your investment property. Qualified reliable tenants play a significant role in protecting against undue deterioration.
If your rental has been on the market for a significant amount of time, consider talking with All County NEO (North East Ohio) Property Management about what changes can be made to decrease the amount of time it takes to find a qualified tenant. While every situation varies, there is a short list of frequently cited improvements that can often lead to more rental applications.
• Give it some curb appeal. Spruce up the yard or to trim the trees and bushes. A freshly power washed driveway can also make a big difference.
• Clean the carpets. A professionally steamed and shampooed carpet can make a rental feel like new again!
• Add some paint. A little bit of outdoor and interior paint can go a long way.
• Price it right! If your rental is drawing in the kinds of applicants that you are looking for, talk with your property manager to ensure that the asking monthly price is competitive and compares to other similar properties in your area and that are relatively the same age.
All County NEO (North East Ohio) Property Management can help you get your property rent ready and help you take advantage of the Cleveland area rental market. Call now to learn more about our annual management services and how our professional property managers can make a big difference to your bottom line.