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  • shalonmlopez

Inflation and Rental Rates

Since the beginning of the Pandemic we have seen real estate and rental market changes almost monthly. Currently we are battling inflation in our country and a major area we are seeing effects is in the Rental Market. Due to rising interest rates more people are choosing to rent rather than to buy. This has caused a shift in supply and demand that has left rental owners in a unique position. With high demand comes the ability to increase prices and as rent prices climb families are struggling to find and secure homes.

Many renters have an urgency to secure an available property and worry on how to make it fit their budget once inside. However, that is leading to increased evictions because earnings are not keeping up with inflation. Evictions hurt Home Owners in the long run! With financial stress coming from every angle tenants are overwhelmed and if evicted finding another home can leave them with little time to correctly clean and care for the property they are vacating. Clean outs and refreshing rental investments after a move out

can cost home owners most if not all of the profits they gained in just a few months.

As Home Owners the most important aspects of renting are finding and securing long term, happy tenants. It is tempting to increase rent prices to match surrounding comps or even to push the envelope and shoot for a little higher, but it is at the risk of finding tenants that are sometimes hard-pressed and make hasty decisions. We are all feeling the pinch of the current economy; insurance, property taxes and utilities are rising for everyone, but it is important to balance the risk of rising rates with the possible devastation it can cause for property owners.

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