Avail.com is a national website that provides resources for landlord, specifically in regard to landlord/tenant laws, regulations, and trends. While Avail.com just published this article: “Increasing Property Taxes and Falling Rent: What Can Landlords Do?” for a national audience, it is extremely appropriate for Oregon landlords due to increasing rent control legislation.
A quick summary of the article:
Rents are decreasing in large cities across the country like New York and San Francisco:
According to an analysis by Apartment List, since March 2020, rent has fallen by 21.7% in San Francisco, 15.3% in New York, 14% in Seattle, 13.6% in Boston, and 12.2% in San Jose. Washington, D.C., Oakland, Arlington, Minneapolis, and Fremont round out the list of the top 10 cities with the steepest rent dips.
There may be strategies in the pandemic to offset the rising apartment expenses for landlords:
However, depending on the type of property you have, McGill has a few strategies. “One is to convert short-term rentals into medium-term furnished rentals,” he recommends. “There isn’t much inventory in this niche in most markets and so there is still a good market for them. And, if you have short-term rentals, McGill recommends switching to long-term rentals. “But you will probably need to lower rents to attract tenants with the increased vacancies.”
Finally, the article discusses the question: “Will the market go back to ‘normal’ after the pandemic?
…For his part, Shapot is cautiously optimistic that there may be a return, but it may be an altered return. “Eventually there will be an equilibrium where supply matches demand, but we may see less luxury rental housing and more affordable housing, which our area desperately needs,” he said.
Here is the full article on www.avail.com here:
Increasing Property Taxes and Falling Rent: What Can Landlords Do?