Rent Increases Likely to Slow in 2017
According to Zillow due to recent trends in the housing and rental market, it is probable that there will be less growth in rental prices in 2017. According to the report, the housing market has been recovering due to the improvement in the economy and consequently decreasing rental demand. Millennials are predicted to play a significant role in the housing market as they are expected to move from renting to buying. Currently about half of new home buyers were first-time buyers and half of first-time buyers were millennials.
With renters’ income increasing due to the improvement in the economy combined with low rent appreciation, tenants will likely find rent to be more affordable than the previous two years. In 2015 landlords and tenants saw rent rise 4.6% which was the biggest gain since before the recession. However, according to the National Rental Price Index, nationwide rents fell for the third straight month. Furthermore, several major cities like Miami and Boston have seen lower average rents than this time last year. The countries most expensive cities of San Francisco and New York both showed rent decreases over the past month. Some markets continue to see rental increases including Tacoma Washington (9.70% average rent increase this year) and Providence Rhode Island (7.10% average rent increase this year).
As more renters turn to buying as the economy improves, landlords need to take special care to ensure they continue to have healthy profit margins. The fastest way that a landlord can increase their profit margin is by getting rid of waste and becoming more efficient through upgrading their property management system and buying management property software. However, building management software can be very expensive and complicated. That is why Realty Information Systems developed a Property Management Software System that is affordable and easy to use. Cut waste and become more efficient today by contacting RISSOFT the leading Residential and Commercial Property Management Software company.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws