The Medford property management and real estate market is constantly changing, following very closely to the Medford real estate market. Except that the property management market inversely follows that of the real estate market. When sales are doing well, the property management and rentals coming from this are not as high. This then causes rental demand to not be as high as would otherwise, and it may be harder to fill your rentals. Other factors do play into this, such as time of year. For example in the spring time, people are looking for rentals to secure because they will want to move over the summer. This causes a very high demand on the rental market and drives Tenant competition very high, very quickly.
The other items that drive property management and the rental market is the real estate market. When the real estate market starts dropping and sales are low, the Owners of the properties that were planning on selling are not able to sell. These people are then forced into considering renting their property out, which then increases the number of available rentals in the area, which increases supply. At the same time, most people who are looking for homes will do so, as we previously talked about, int eh spring and early summer. When the market drops, as it does almost every year in October (as can see below) the rental market available properties goes up, but the number of available Tenants looking for a home goes down.
Above chart courtesy of Trulia.
As can be seen above, the Medford home market capped out in August and September at 320 and 330 respectively. This is the actual date that the home closed, and really represents the market volatility that was occurring 30-90 days prior, as it takes 30-90 days to close on all houses, typically at least 45 days.
The reason that this information about the rental market is important to us as Investors and real estate professionals are three-fold:
- Rental market which is increasing in supply and reducing in demand results in dropping prices. Be ready to potentially need to lower your rental amount for vacancies in the October-March time range.
- Best time to buy a non-rehab requiring rental property is in March-April. By the time you close on the property, you will be in the middle of the hot market times. Best time for a property requiring rehab will be relative to the amount of work required on the home, be sure to factor this into your calculations
- You will get the best rental prices and the lowest vacancy times by having it ready in the spring and early summer. maximize your profits and get that timing right form the start. Accept only 1 year leases. (or longer)
If Asurent Property Management Medford can be of any service to you and your rentals, please give us a call at 541-816-4140.