They are some telling indicators that renting out your property may be harder in 2014, especially by do-it-yourself landlords even as the overall economics of rental property investing is improving. Reasons why:
a. More available inventory as newly-constructed multifamily housing comes online – There are markets where supply is climbing quickly so that if the U.S. faces another mild slowdown these markets may be greatly impacted. Those markets are Dallas, Houston, Austin, San Antonio, Seattle, San Jose, Washington D.C., Tampa, Raleigh and Charlotte.
b. Market conditions are going to vary more widely than ever before – Keeping track of market conditions is getting more difficult as market dynamics break down by neighborhood or even housing community, not by city or state. Misjudging market dynamics could prove costly in terms of rental pricing, tenant selection and knowing when to sell.
c. Higher quality, more discriminating renters will look for higher service standards in return for higher rents and more stability – While online tools to make being a landlord easier are proliferating, the complexities involved in renting to others are also increasing. That’s why phoenix professional property management usually pays for itself by reducing vacancy rates, handling repair issues more cheaply and maximizing rents.