As with many areas in the United States, rental demand continues to climb in the Philadelphia area. The latest data from the Federal Reserve suggests that now is a great time to be a property owner. During the last three months of 2015, property owner’s rental income added up to about 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. You can download and read the full report here.
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.
• Some older home renters are opting for luxury rentals.
• “The industry is trending toward more intensively active management…”
• “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.”
Rental demand in Philadelphia
• The average monthly rent for a one bedroom in Philadelphia, Pennsylvania is around $1,000.
• The Philadelphia area ranks 5th among the 300 largest metro areas in the country.
• Millennial populations tend to rent and add to the overall demand.
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 and 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 an All County property manager 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 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 isn’t drawing in enough applications, talk with an All County 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 Delaware Valley Property Management can help you get your property rent ready and help you take advantage of new trends in the Philadelphia 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.