The Outlook for the Rental Market

Condo during the snow time; what to expect when renting out your property.

Well, there’s good news on the horizon for property managers — all indicators point toward a strong rental market as we make our way into the second half of 2015.

According to a recent market analysis, there are three main factors that are contributing to an optimistic outlook with regard to rentals.

Tightening rental markets

In an already tight market, vacancy rates have dropped from a rate of almost 11% in 2009 to a current rate of just below 6%. It’s expected that this decline will continue moving forward, which is good news for property managers.

Fewer homeowners

Homeownership has dropped to its lowest level since the early ‘90s. Homeownership peaked in 2003 at just under 69%, but has dropped to its current rate of 64%. This is likely due to continued economic uncertainty and higher house prices, among other factors.

Improved job market

With a steadily declining unemployment rate and a stronger job market, more potential renters find themselves able to commit to leases. It also points to Millennials being able to move out of their parents’ homes and into their first rentals.

Because of all of these positive trends, it’s expected that rental properties will be able to raise their rental price points, which is more good news for property management companies. Enjoy the upswing!

Pilera is a best-of-class, easy-to-use, comprehensive online property management solution for apartments, condos, and associations. Pilera provides the easiest, most comprehensive data management capability available to property managers, leasing agents, boards of directors, and back-office personnel. Quickly and easily access whatever you need, whenever you need it, from wherever you need to be with office or mobile phone connectivity. You are never out of touch. Act on the document/information accessed from the office or “on-the-road” with Pilera-supported mobile capability. Contact us today!


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