Why It's Becoming Harder to Rent Apartments in L.A.
Does it seem more difficult this year to rent apartments in Los Angeles? It’s not in your head.
Due to the buyer’s market brought to us by COVID-19, unemployment, and the oil bust, tenants are being more selective on properties, looking for cheaper places to live, moving out of the state/country, and looking for spaces to accommodate remote schools/jobs.
The theme of renters getting out of the most expensive cities is now everywhere, causing rents to drop in cities like Los Angeles in order to fill vacancies.
In Los Angeles, the median asking price for rent dropped 8% for one-bedroom ($2,430 to $2,080) and two-bedroom ($3,310 to $2,880) apartments.
At the start of September, data showed the average asking rent for Class A properties — think newer buildings with poolside cabanas, community rooms and a dog run — fell 4.3% in Los Angeles County from the beginning of March.
In Class B properties, which are often slightly more downbeat newer buildings or older, recently renovated properties, rents have dropped 2%.
Rents for Class C properties, usually the oldest buildings with the fewest bells and whistles in the apartment and in common areas, fell 0.2%.
In addition, some landlords have converted all tenants' one-year leases into rolling month-to-month agreements as a solution for tenants who face financial uncertainty.
A July survey from the National Apartment Association found that two-thirds of landlords are offering shorter-term leases to at least 10% of residents during the pandemic. That's up from a July 2019 average of 7.3%. Property owners are also waiving added fees that are typical with short-term rental agreements.
Practice Good Marketing: Make sure you’re working to fill your vacancies starting 90 days ahead of time. Click here to read our 90 day plan.
Make your property stand out: Make sure there's fresh paint on the walls, it's updated and clean, windows/appliances work, and general maintenance is up to date. You'd be surprised how positively tenants react to properties that have these extra finishes and touches.
Get Better Tenants: Vet your tenant applicants! This will better ensure rent paid on time and care taken of your property.
Set up tenant communications: Whether it’s open email communication or quarterly checking, make sure you stay on top your property and give your tenants an easy way to report problems.
If you prefer to work with an expert instead of DIY-ing it, Home Rentals LA is still offering landlords free marketing, photography, showings, applications, credit checks, and background checks.
By setting yourself up to succeed from the beginning, you will soon reap the rewards and become more profitable than ever!
Resources:
https://wolfstreet.com/2020/09/01/rents-plunge-in-san-francisco-new-york-other-expensive-cities-college-towns-texas-oil-patch-also-hit-incentives-surge-but-in-18-cities-double-digit-rent-increases/
https://www.usatoday.com/story/money/2020/08/17/apartments-rent-landlords-offer-lease-deals-discounts-amid-covid/3316895001/
https://www.latimes.com/homeless-housing/story/2020-08-10/la-rent-is-falling-high-end
