The US Rental Property Investment Market 2020
Are Rent Prices Going to Drop?
The US housing market including the house and apartment rental market were running strong. Then the Covid 19 pandemic hit. Strangely, that effect seems to be short lived.
In fact instead of an expected result of rent prices falling, it appears they are not going down.
Tenants are inquiring whether rents will go down, and landlords are concerned about a total shutdown in cash flow. Searches for rentals and inventory of rentals have fallen (Zumper report below). Given the shortage of rentals available nationwide, it boggles our minds that rental prices keep rising.
Will Rents Fall Due to the Corona Virus?
Will rents drop for the first time in the wake of the Corona Virus? The Corona Virus is a sudden mega event in the rental markets. Landlords are under increasing financial pressure as renters have been delaying rent payments or only making partial payments. Although tenants experience trouble paying their rent, it hasn’t resulted in lower asking rents.
The CARES Act will help tenants pay their rents for now, if they decide to pay the rent, but are tenants already giving notice?
The Federal aid for small businesses including landlords and property management companies will help. However, it seems likely we’ll see many vacancies appear and occupancy rates will fall.
Property Management Software Tenants love.
Unfortunately for renters, and fortunately for landlords is that rent prices appear to be rising. Nar’s recent national home sales report also reports home prices went up in March.
Landlords, see why ManageCasa might be your best solution to encourage rent payment from tenants. Tenants should advise their landlords to investigate the advantage of automated partial payments. It’s good for both.
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