Rent prices have increased sharply in Pierce county and South King County area of Washington State over the last year. Fueled by the furious growth of Seattle, cities like Tacoma, Puyallup, Auburn, and Kent have experienced a wave of home buyers and renters. As reluctant landlords finally see home values increase to the point that they can sell and realize a profit many tenants are finding themselves asked to vacate to the owner can sell. This means the number of houses being rented is decreasing; as supply diminishes demand increases. With increased demand comes higher cost.
What this all means is for the landlords holding onto their rentals is they are now in the strongest rental market in decades. Vacancies are low and rents have increased. Not only that but interest rates have remained extremely low. Recently rates decreased, despite many experts’ predictions that they would increase. This means lower interest on loan payment leaving more room for higher profit margins.
If you have a rental and have not adjusted the rental rate of the property recently, then you are missing out on income that could be used to keep your investment in shape. Many owners self-managing neglect increasing rates, usually out of fear of a vacancy; they may not want to have to update or fear the next tenant they get will not be as good as the one they have now. This can be a big pitfall keeping your property from being well maintained.
Contact us today for a free rental evaluation or help finding a great investment property.
