Rental Market – Where Are We Now?
By DaNay Salas
The question that everyone wants to know right now is “How is the rental market currently doing?” Well, this year has definitely been one for the books! The market has constantly changed throughout this year. It started off this year with lower prices stemming from the drop in out of state residents moving here in September of 2021, which then caused a large number of vacancies and the market trying to correct moving forward. Pricing then started climbing back up around April, which is not uncommon for that time of year, and we started to see a slight increase of out of state traffic again, due to the lower pricing, making it attractive again. With the increase in pricing over the optimal rental season (March through June), pricing was pretty similar to the previous year as prices began to climb, but then the market started to change by July. It has been a very competitive market over the past couple of months with quite a bit of inventory in the Treasure Valley and becoming very price-point competitive. There are rentals that are still trying to capitalize on the higher rent amounts, there’s the middle of the road pricing, and homes that were way underpriced, making it difficult to navigate an accurate price for vacancies that came up.
There is definitely not a shortage of rentals in the valley, and just like the real estate side, homes are taking longer to rent than usual. Our average vacancy time right now is between 15-21 days, some are rented quickly and some have been on the market over 30 days. It is all coming down to location, amenities, and pricing. The out of state market has slowed considerably again, which does affect the market. With prices being on the higher end, it is not attractive to our local market, but we have seen a significant increase in professional-roommate situations, which is something owners should consider allowing, as this may become the new normal in order to sustain housing in today’s market.
While we cannot accurately predict how long it will take to get the home rented, we do our very best to remain competitive and communicate with owners on a weekly basis during their vacancy period. Lengthy vacancies are costly for our owners, which RMA recognizes, and we strive to minimize the vacancy time. Our office advertises to all the major rental sites, we have 3D Tours which helps, especially for out of area prospective tenants, and we have self-showings of homes to allow the home to be seen 7 days a week.
Setting expectations is key right now with our owners that have upcoming vacancies or bringing on a new property with our company, we feel being knowledgeable about the market is crucial. Prices seem to fluctuate on a weekly basis. Our office reviews all data with vacancies, such as number of inquiries, showings, emails, and phone calls and make the determination on pricing at that time. Does it need to be lowered, are we priced accurately, what other factors could be holding up getting the home rented, these are all very important factors we take into consideration. At this time, our office when providing a rent-range with either a brand-new listing or a property that is coming up for rent, there needs to be a broader rent range given because the market is so unknown currently and pricing is continually dropping, as the market is trying to stabilize.
We have spoken with other reputable property management companies, as we all belong to NARPM, a local chapter here in the Valley, and they experiencing the same issue with a high number of vacancies and prices dropping quickly. At any point in time, you can discuss pricing with your property manager or our office, as we are happy to guide you on our recommendations and what we are currently see trending.
Meet RMA’s New Property Manager!
Deeanna Windes joined the RMA team in Spring of 2022. Deeanna is an Idaho Native and was born and raised right here in the Treasure Valley. She comes to us from a Fortune 500 retail company as a high-level supervisor where she worked for 19 years. Deeanna led a team of over 300 employees here in Boise as well as in Moscow, ID. Deeanna’s dedication in customer service and communication led to building wonderful relationships with-in the local community.
Outside of work Deeanna enjoys spending time with her children, granddaughter, and her husband. Deeanna is also the proud owner of 6 dogs which occupies a lot of her time.
For those of you with properties in the Nampa/Meridian area, the irrigation district will be ending irrigation water delivery on September 28th. Some areas in Boise have been shut off as well. We have instructed your tenants to do hand watering where necessary to prevent the lawn from dying.
RMA would like to let you know that we have scheduled the optional services for 2022.
Optional Services being completed throughout the fall are:
- Gutter Cleaning
- Hot Water Heater Service
- Fall Window Cleaning
- Fall Yard Clean Up
- Sprinkler Blow Outs
The maintenance updates only apply to those of you who have pre-ordered these preventative maintenance services. If you didn’t opt in for a service you read about in this newsletter, and would like to schedule a service, just email your property manager to let them know.
Other questions? Please email your property manager!
You can always see updates on the status of your property’s tenancy renewal on your OWA. Information about the tenants renewal or notice to vacate will be there for you to review once we get close to the end of the lease.
If you ever have questions about your statement, please contact your property managers:
If you have trouble logging into your client portal, please contact your property managers or Brandy Ker at RMAinfo@rentalsinboise.com.
Please go check out our tenant newsletter for important tenant reminders each month. We remind tenants of the important things to remember to keep your investment in great condition, so you don’t have to worry!
Check out our tenant newsletter this month: https://rentalsinboise.com/property-management-blog/october-2022-tenant-newsletter/