When we talk about the rental market in Brentwood, we’re also including our service areas of Antioch, Pittsburg, Oakley and Discovery Bay, as well as the surrounding areas. There are several issues pertaining to pricing and other trends that are happening now. As you probably know, market rents have been on the rise for the last year or two years. That’s good news for landlords. There are four specific trends that we believe will continue through 2016 and into 2017.
The present occupancy rate in this market is high, and if your home is priced correctly, you are guaranteed a quick turnover when one tenant moves out. This high occupancy rate is contributing to low vacancy rates. That’s going to help your cash flow and the return you earn on your investment property.
As we said earlier, rental rates have been steadily increasing over the last couple of years. We expect them to continue climbing, and most landlords can anticipate an increase from five to eight percent.
The supply of rental housing is flat or even potentially declining. This is because the sale and resale markets are continuing to improve. A reluctant landlord who has been renting out a property is now feeling comfortable enough to sell. Home values are increasing, so people are more motivated to sell their homes instead of renting them out.
Tenants are looking for single family properties to rent. The most highly qualified renters are most interested in three bedroom or four bedroom
homes that are the median price range of between $1,500 and $2,000 per month. Keep this in mind when you are looking for potential investment properties to add to your portfolio.
This is where we see the state of the rental market currently, and where we believe it will continue to move. If you have any questions about what this means for your property, please contact us at Select 1 Realty.