The past few years have been chaotic for everyone, but especially so for the real estate industry. Oakland County landlords are understandably interested in the real estate trends in the area. Knowing where prices are going and how the market is affecting our local real estate will impact how much rent they can charge, if they can buy more property, or how much they could get if they decide to sell. Here, we discuss some tips you can use to navigate the changing market.
Rent prices are still rising
Inflation has caused everything to get more expensive. This includes rent. You may have been forced to raise your rents throughout the past year to keep up with expenses. Is this trend going to continue? For now, it seems likely. Rent prices are still rising, but at a slower pace than they were. This could indicate a peak is imminent, especially as the Federal Reserve looks to raise interest rates.
Be careful of evictions
Things are becoming more expensive, but unfortunately, wages aren’t keeping up. This may result in many tenants struggling to pay their rents, which could also cause eviction rates to increase as well. Keep an eye on your tenants to make sure they’re making their payments, and make note of those who may be struggling. Try to work with your tenants before moving straight to the eviction process.
And of high turnover
Another byproduct of high rents is high tenant turnover. Tenants may realize that they can’t easily afford the higher rents, and may move elsewhere to more affordable areas. So, when you’re raising rents, make sure you are not raising them too much where you’re driving residents out.
Every landlord should have a trusted real estate agent to help walk them through the ups and downs of the current market. Aaron Cox Law has the best real estate attorneys in Oakland County, MI. Contact us today at 734-287-3664 to learn more.