How Does Washington State’s House Bill 1217 Impact Landlords?

A graphic describing the Washington State Rent Control Bill

Washington State Governor Bob Ferguson signed House Bill 1217 in May 2025. This bill is known as the “Washington State Rent Control Bill” or the “Washington State Rent Stabilization Bill.” It’s part of a suite of bills addressing affordable housing in Washington, targeting stability for Washington families. 

Governor Ferguson stressed the urgent need for affordable housing in Washington. He said these bills will help make building all types of housing easier, quicker, and cheaper. 

One of the biggest changes is the new rent increase limits, which are based on the 12-month percent change in the Consumer Price Index. This index covers all items for urban consumers in the Seattle area. It is published by the United States Bureau of Labor Statistics.

Here are key points to know as a landlord: 

  • It caps rent increases for existing tenants at 7% plus the Consumer Price Index or 10% (whichever is lower). 
  • At the same time, landlords can raise rent even more for new tenants. 
  • Additionally, the bill limits rent increases for manufactured homes to 5%. 
  • The WA Department of Commerce confirms that the maximum annual rent increase is 10.0% until December 31st, 2025. 
  • The maximum rent increase percentage for 2026 will be announced soon. This data is expected from the U.S. Bureau of Labor Statistics by the end of July 2025. 

HB 1217 brings new changes to landlord-tenant rules. It focuses on more transparency and protections for tenants. But what should you anticipate if you’re renting out your property in Washington?

Biggest Changes in Bill HB 1217

  • First-Year Rent Freeze: Rent increases are prohibited during the first 12 months of a tenancy. After the first 12 months, rent can be increased. 
  • Rent Increase Cap: Annual rent increases are limited to the lesser of 7% plus the Consumer Price Index or 10%, whichever is lower. This cap affects most rental properties. It includes single-family homes owned by corporations, LLCs, or REITs.
  • Notice Requirements: Landlords must give written notice 90 days before increasing rent. Previously, you only needed to provide a 60-day written notice. The method for sending any notice now also has to be changed. Previously, you needed to deliver via personal delivery and First-Class mail. Now, you must deliver all notices via personal delivery and now Certified Mail.
  • Lease Termination Rights: Tenants can end their lease with 20 days’ notice if a rent hike goes over the legal limit. There’s no penalty for breaking the lease.
  • Enforcement and Penalties: Tenants or the Washington Attorney General can take legal action for violations. Penalties may include actual damages, up to three months’ rent, and attorneys’ fees. The Attorney General can recover up to $7,500 per violation.
  • Exemptions: New construction rentals are exempt from the cap for 12 years after completion.

This law is taking immediate effect. A professional property manager must update their processes to comply with the new law. Below are examples of how Zenith Properties is changing our processes.

Changes to Zenith Processes: 

  • Training: Our team is getting complete training on this bill. We are using key resources like our legal reps and  the National Association of Rental Property Managers (NARPM).
  • Notice Requirements: We are updating the notice language to be in compliance with the law. We will begin sending all notices through certified mail. Our processes have been updated to keep proper documentation in our system.
  • Bi-Annual Evaluations: We used to evaluate the property at 90 days of tenancy. Now, we will start scheduling evaluations at 120 days. We want to make sure that an evaluation of the property is done prior to sending the lease renewal.
  • Lease Renewal: We will start sending lease renewals ahead of the 90-day requirement. Our forms have been updated with the correct language as advised by our council. Additionally, we have our resources updating our lease to further be in compliance.
  • Communication: We understand that this transition will bring up questions for our clients and tenants. Our team will be fully prepared to provide support for any questions that arise. You can confidently reach out to your Portfolio Manager for any questions you have.

For a comprehensive overview of HB 1217, you can refer to the official bill summary here.

Why This Matters 

Laws like HB 1217 are why you need a good property management team. They can respond quickly to changes and protect your interests. A professional property manager, such as Zenith Properties, shields you from legal risks. We also help protect your income and keep your investments compliant and performing well.

Reach out to our team today if you have any additional questions. You can also check out our resource library here for more information on managing rental properties in WA state.

Property Management with Cybersecurity Expertise

Cyber security specialist pointing at a graph of house icons connected with nodes

Did you know that cybercrime results in an estimated $1-2 trillion in annual losses? From governments on every continent to businesses and banks to healthcare providers to real estate and property management firms, nobody is completely safe. Anyone can be attacked, which is why we at Zenith Property take cybersecurity so seriously. As far as we’re concerned, when it comes to protecting our clients from cybercrime, there’s no such thing as being too careful.

A part of our mission to protect your personal information, real estate transactions, and data protected, we now require all of our property management team members to pass a rigorous cybersecurity certification.

 

Our Property Management Pros Are Certified in Cybersecurity

At Zenith Properties, we understand that the security of your personal information and investment is paramount. That’s why our entire team is certified in cybersecurity by Coalition, a leading provider of digital protection. 

This certification ensures that we are equipped with the latest tools and knowledge to safeguard your data from cyber threats, keeping your real estate transactions and property management experience secure. With our certified professionals handling your property needs, you can have peace of mind knowing that both your personal and financial information is protected—allowing you to focus on what matters most.

 

How We Keep You Safe

  • 24/7 monitoring – Continuous threat detection and response powered by Zenith’s IT Department means if there are ever operational disruptions, they will be minimal.
  • State-of-the-art technology – Cyber threats are constantly evolving. Our technology evolves with it, enabling you to stay ahead of tomorrow’s threats.
  • Expert protection – Our certified cybersecurity team gives you personalized attention and monitoring – and it’s backed up by Coalition’s experts who fight emerging cyber attacks every day.

 

Is Your Real Estate a Target for Cybercrime?

Unfortunately, yes. Hackers and scammers are opportunistic. As larger institutions beef up their cybersecurity infrastructure, they have begun to set their sights on smaller companies and individuals who may not see an attack coming. And with so many real estate and property management companies being older companies with outdated cybersecurity, it’s more important than ever to choose a property management company with cybersecurity expertise.

Here are some additional tips for real estate investors serious about cybersecurity:

  • Secure your devices: Use strong passwords, biometrics, and two-factor authentication.
  • Patch your operating systems: If there’s a security patch available, don’t put off downloading the update – it may be critical.
  • Be wary of public wifi: Avoid accessing sensitive accounts from public wifi if possible.
  • Monitor accounts regularly: Be aware of all activity and immediately report anything suspicious.
  • Educate yourself on different types of scams: Understand what phishing attacks look like and how ransomware works. Make sure you stay up-to-date with the latest scams.
  • Be careful about sharing personal or financial information: Always make sure you know who you’re communicating with.

 

Our Cybersecurity Expertise Keeps You One Step Ahead

Cybersecurity can often feel overwhelming, but it doesn’t have to be. At Zenith Properties, we stay on the cutting edge of cyber protection so you don’t have to. With our property management team certified in cybersecurity, your personal and financial information is always safeguarded, so you can sit back and relax.

Call us today to learn more about how we can protect you and your real estate assets.

How Does House Bill 1074 Change How Security Deposits Work?

signing a lease with new security deposit in effect - how will it effect washington landlords?

In April 2023, the Washington State Legislature passed a new bill regarding tenant security deposits. House Bill 1074 will be in effect for all new move-ins starting July 23, 2023. This is important to read because it means that current leases are not grandfathered in unless your current process follows what is now legally required.

Let’s start by reviewing Washington’s previous law regarding security deposits, and how Zenith best practices this, and then discuss the changes in Washington’s new security deposit law.

How Did Washington’s Old Security Deposit Law Work?

Let’s say your current tenant has moved out. The day that keys are received opens the 21-day countdown to give your tenant their statement of deposit accounting. You can either hand-deliver or post it in U.S. Mail to the tenant’s last known address. Landlords sometimes refer to this as a “Final Accounting” or “SODA”. No documentation besides a simple statement is legally required.

Here at Zenith, we provide tenants with invoices that correlate with the statement of the deposit accounting. If we do not have all of the invoices by the 21st day, we will provide the tenant with an estimated deposit of accounting. We will provide the statement of deposit accounting with all of the invoice amounts that we currently have, and then best estimate what’s missing. Once we receive the final invoices, we then send the adjusted final accounting statement.

From there the tenant will either receive a refund or owe funds. If the tenant receives a portion of their deposit back, that typically means they took great care of the home, and as a landlord, you collected the right amount of deposit at move-in to cover all tenant charges. This saves the owner from paying out of pocket and waiting for the previous tenant to repay the monies owed. If the tenant owes funds, and the owner is not reimbursed promptly, then further legal action can be taken such as collections and/or small claims court.

How Does Washington’s New Security Deposit Law Work?

Now, let’s discuss what changed starting on July 23, 2023. First, it’s important to understand there are some new added “terms”. The largest difference you may notice is that there is no longer what is called “normal wear and tear.” Instead, it is now classified as “wear resulting from ordinary use of the premises.” This includes breakage or malfunction due to age or deteriorated condition. This new term is more open for discussion; therefore, as the landlord, you should be as detailed as possible.

The lease must be in writing, and the tenant must be given a written checklist that specifically describes the home and conditions of many items. Some of the new specific requirements are that a landlord must document the fixtures, equipment, carpet, walls, and even furniture. Make sure to keep that in mind if you are renting a furnished home: each item must be documented at move-in, down to the silverware.

Perhaps the biggest news for landlords is that we now have 30 days to return a full and specific statement outlining the basis for retaining any of the deposit. You must also include any documentation you have backing it up. The legal requirement for this documentation is very detailed. The landlord must provide a detailed and itemized copy of the bill, invoice, or receipt. However, you run some risk here because you still have to provide a full and specific statement of the estimate and you cannot back-charge based off an estimate. And you cannot estimate it too high, because that violates the section of withholding the deposit for normal wear and tear and we are not allowed to withhold any of the deposit after 30 days.

What If It’s the Tenants Fault?

There is one new section that we should review, as it falls in favor of landlords as a last resort:

“…unless the landlord shows that circumstances beyond the landlord’s control prevented the landlord from providing the statement and any such documentation within 30 days or that the tenant abandoned the premises as described in RCW 59.18.310.”

An example that would fall under this section might be a scenario like: “The tenant never turned in keys on the move-out day as agreed. It then took us six days to get ahold of them, and we then had to schedule and wait for a vendor to drill out the lock because the tenant didn’t provide keys. So, Your Honor, it took an additional 20 days before we could even get our eyes inside the home. As you can see, this fell out of our control”.

However, as a landlord in Washington, documentation is once again paramount. You can’t just say this — you have to prove it. While this does give landlords an option, you don’t want to rely on this section of the law because, as we all know, in Washinton state, the tenants have the upper hand.

Call the Experts on Washington Rental Law

In conclusion, big changes are happening, and it may seem confusing, but when you work with an experienced property management team like Zenith, there’s nothing to worry about.

Here at Zenith, we have studied up on the new law, have a process in place, and best of all, all of our current leases will follow this new law. As property owner, there’s nothing different you need to do. We provide our tenants with a written lease and a move-in statement at move-in. Every new item that is required to document at move-in, Zenith already does!

So if you’re ready to simplify your process and ensure you’re always up-to-date with the latest tenant laws, give Zenith a call today at (360) 369-3577!

Is It Better to Sell or Rent My House in Clark County WA?

Person unlocking a house door with a key

At Zenith Properties, we frequently encounter property owners in Clark County, Washington, who are torn between selling or renting their homes. It’s a question with no one-size-fits-all answer. The decision depends on various factors, including your personal circumstances, mindset, and financial projections. In this blog post, we will explore the benefits and drawbacks of both selling and renting. By carefully considering the numbers and evaluating your situation, you can arrive at the best decision that aligns with your goals and maximizes your financial outcomes.

Should I Sell My Home?

Selling your home could be a good option if you are looking for an immediate financial boost. However, it can be a costly process, and it could force you to forgo long-term profits that you could get through renting. Here’s a closer look at the benefits and drawbacks of selling:

Benefits of Selling Your Home

  • Access to Cash: Selling your home allows you to convert your equity into immediate cash, providing a potential financial boost.
  • Capital Gains Tax Exemption: Depending on your eligibility, you may be able to avoid paying capital gains tax, further enhancing your financial gain from the sale.
  • Funding Life-Changing Priorities: The proceeds from selling your property can be used to finance significant life priorities. Evaluate the relative importance of these priorities and ensure that selling is the optimal choice for fulfilling them.

Disadvantages of Selling Your Home

  • Costs and Expenses: Selling a home comes with significant expenses, including brokerage fees, excise tax, and title and escrow fees, which can collectively add up to 8% – 10% of the total sales price. Additionally, you may need to invest in sale preparation and address repair costs negotiated by the buyer. Capital gains taxes may also apply, and you might need to bring cash to cover expenses if there is insufficient equity.
  • Opportunity Costs: Selling means potentially losing a low-interest mortgage that cannot be easily replaced. You will also miss out on future property appreciation, which could be financially advantageous in the long run.

Questions to Consider If You Want to Sell

With all of those benefits and drawbacks in mind, here are some key questions you should think about to determine if selling your home is the right choice for you.

  • How much will your property sell for? Get a market analysis from an expert and find out.
  • If you sell, how much net equity can you realistically expect to have after all of the selling expenses?
  • How will you feel if it takes longer than expected to sell your property and you are forced to take a price reduction to sell it? The market is much slower now than it has been in previous years, especially with the higher interest rates buyers are saddled with these days.
  • How will you feel if mortgage rates stay above 5% indefinitely and you sell your property that has a 2.5%, a 3%, a 3.5% or a 4% interest rate?
  • How will you feel 5 years from now if the property you used to own gets resold for $100k, $200k or $300k more than you sold it for? That’s something to think about!

Should I Rent My Home?

Renting your home can be a great long-term source of income. However, property management isn’t for everyone. Here are the main advantages and disadvantages of renting to help you determine if it could be a viable option for you.

Benefits of Renting Your Home

  • Recurring Rental Income: Renting out your property provides a regular cash flow through rental payments, offering a steady source of income.
  • Property Appreciation: By retaining ownership, you can benefit from future appreciation, allowing your property’s value to grow over time.
  • Equity Building and Tax Advantages: Renting allows for equity accumulation as your mortgage is paid down or covered by tenants. Moreover, you can take advantage of tax deductions by depreciating the property, potentially saving thousands of dollars annually in income taxes (consult a tax professional for details).

Disadvantages of Renting Your Home

  • Foregoing Equity Harvesting: Renting means you cannot access the equity in your property unless you opt for a home equity line of credit (HELOC) if you require immediate cash.
  • Potential Management Hassles: Being a landlord involves dealing with tenants, which can be challenging at times and may require your attention and time.
  • Complex Regulations and Property Maintenance: Landlord-tenant laws are intricate and subject to change. Property maintenance responsibilities can also become burdensome over time. Engaging professional property management services can alleviate these concerns.

Questions to Consider If You Want to Rent

  • How much will your property rent for? Get a market analysis from an expert and find out. If you rent, how much will your monthly net cash flow be after paying the mortgage, professional management, and including a reasonable maintenance allowance.
  • What will your property be worth in 5 years? If it appreciates at a conservative rate of 5% or 6% per year it will go up in value between 28% and 34%. If your property is worth $500k today at 6% appreciation it will be worth approximately $670k in 5 years!
  • How much will your mortgage be paid down over the next 5 years? Odds are it will be a lot if your mortgage rate is below 5%.
  • How much will you save in income taxes by depreciating your property? If you are in a 20% tax bracket, your tax savings could be $2,400 each year which is $200 per month in tax savings.
  • How will you feel about being a Landlord? Does the thought of managing tenants make you nervous or afraid? Or will it make you happy to know you are providing a home for a family who needs it while your property is producing income and appreciating?

Get Professional Property Management Advice

To make an informed decision, gather the facts, run the numbers, and deeply consider your situation. Being a landlord may not suit everyone, but selling may not always be the most financially sound choice. Take into account your financial goals, personal preferences, and your willingness to handle the responsibilities associated with each option. By weighing these factors, you can determine whether selling or renting aligns better with your circumstances and leads to the most favorable outcome for your Clark County property.

If you need professional advice, don’t hesitate to contact Zenith Properties! We have Licensed and Experienced Real Estate Professionals and a Team of Professional Property Management experts who can evaluate both the Sale and Rental potential of your property.

At Zenith we provide our clients with:

  • Maximized Financial Results
  • Personalized Responsive Service
  • Provided by Highly Trained Professionals.

Let us know your situation and goals so we can help you achieve the best possible outcome whether you decide to Sell or Rent your property. Contact us today to get started!

Is it a Good Time to Buy a House? (2023)

Parents and little girl holding the keys to their new Vancouver WA home

If you’ve been considering making a new home purchase, whether you’re looking to buy your first home or are a seasoned investor, you’ve probably seen many news stories about the current challenges in the real estate market. While many buyers have been discouraged from making a purchase, the truth is, it’s still a great time to buy a house! Here in Vancouver WA, demand is dropping – which means prices are, too. If you want to buy your dream house at a great price, the summer of 2023 is the time to do it.

Why is Now a Good Time to Buy a House?

Most often we see home prices rise incrementally over time, unlike what we saw in 2020 and 2021. However, prices tend to level off when there is a lack of demand. In some cases – like right now – the prices will decline in price in what’s referred to as “market correction”. Buying a home during the current market correction offers a lot of benefits, such as:

  • Lower purchasing prices: Due to the decrease in demand, many sellers are lowering their prices as a way to entice buyers. That means you can scoop up your dream house for a much lower price than if you were to buy when the demand is high.
  • Opportunity to refinance in the future: Don’t let interest rates scare you off! Though mortgage interest rates are higher than the historic lows we’ve seen in recent years, they are still considerably low. Buying now while prices are declining and refinancing to a better rate later on will allow you to save money in the long run.
  • More inventory to choose from: Since fewer people are buying homes right now, you’ll have more houses to choose from. You can be a little pickier about the features, amenities, and location when shopping for your ideal property.
  • Less competition from other buyers: Nothing’s more discouraging than falling in love with a home, making an offer, and watching it go to a different buyer. With the decrease in demand, you won’t have to worry as much about competing with other buyers for the house you want.
  • Opportunities to negotiate more favorable terms: With a decrease in people shopping for houses, sellers are more likely to change their terms to entice buyers. You may be able to negotiate better terms in your offer, such as repairs or interest rate buy-downs… all at a price that’s within your budget!

Find Your Dream Home Today

Whether you’re a first-time buyer or you’re adding to an investment portfolio, Zenith Properties will simplify the process! With over 30 years of experience serving the Vancouver WA area, we know the ins and outs of our local markets. Our team can help you find the perfect neighborhood and home for your lifestyle, budget, and needs. We’re here to walk you through each step of the home-buying process, guaranteeing you receive personalized and responsive service! To learn more or get started, give us a call today.

How to Tell if Your Rental is Overpriced

Cardboard cutout of a house with a sign saying For Rent

When it comes to managing a rental property, it can be difficult to strike a balance between catching a great rental rate and making sure you have the least amount of vacancies possible. Knowing how to tell if your rental is overpriced will allow you to keep your property as productive as possible. If you’re struggling to rent your home, here are some key indicators that your rental may be overpriced:

Constant Requests for Negotiation

It is important to set an educated rental rate and stick to it, adjusting it based on what kind of feedback you receive from the market. If you are constantly receiving inquiries from individuals asking for a lower rental rate, it may mean you are pricing it too high. One or two of these requests are common, but if you notice a pattern or a consistent request for a specific rate, you may be overpriced.

Inquiries or Applicants Who Don’t Follow Through

When you receive an inquiry or an application for your property, it is important to follow up right away. If you are consistent in following up with inquiries and applications, the chances of someone renting your property are higher. 

However, when you begin to see a pattern of inquiries or applicants who don’t follow through, it could mean that your price is too high. If people stop returning your calls, emails, texts, and/or invitations to rent the property, they likely found something else. Many times, that “something else” is a comparable home at a better offer.

Few Inquiries or Applicants

Generally speaking, 20-40 inquiries a week is healthy activity for a rental. Anything less and you may be overpriced; anything more and you may be underpriced. If your home has been on the market for longer than a week and you aren’t seeing much activity, then your rental may be priced too high. That said, it’s important to note that the rental market is constantly shifting based on demand, competition, and the time of year. Shift your prices based on what the market is telling you.

Rental is On the Market for Too Long

Rentals set at the market rate should be on the market for no longer than 21 days. Once your home is available to move into – meaning all necessary repairs are complete and it’s up to a livable standard – then your vacancy should fill relatively quickly. When you begin to see vacancies beyond 21 days of availability, especially if you’re also seeing few inquiries or applications, then your home may be overpriced. 

How to Price Your Rental

Setting a price for your rental can be a difficult task, especially if you don’t have much experience with property management. However, there are some steps you can take to find the right asking price:

  • Do your research: Sites like Zillow and Redfin will provide rental estimates based on what is currently on the market, and what has recently rented in your area. This can be a great tool to use, but be careful and make sure to do your own research as well.
  • See what others are offering: Use filters on sites like Zillow, Zumper, Redfin, Hotpads, and Trulia to see what other comparable homes in your area are renting for. Pay attention to size, amenities, neighborhood, number of inquiries, and time listed. 
  • Experiment with incentives: If you’re having trouble generating interest in your property, consider adding or adjusting the incentives you’re offering. If you’re comfortable, things like pet policies or washers/dryers can make a big difference.
  • Listen to the market: While your home is listed, look for signs that your rental is over- or under-priced. Pay attention to the signs listed above, and see how the market responds to changes you make.
  • Get professional assistance: Want to get the most out of your rental property? A professional can make it easy. From listing and pricing to managing applicants and choosing tenants, an expert can take the pressure off your shoulders while keeping your property as lucrative as possible. 

Feeling overwhelmed about managing your rental property? At Zenith Properties NW, we understand the challenges that homeowners face, and we can help ease your burden. With seven consecutive Best in Business awards and a reputation for excellence throughout the Clark County WA area, you can trust us to provide hassle-free rental experience from start to finish. To learn more about how we can help, give us a call today!

Should You Allow Pets in Your Rental?

Cats in a box in an apartment

Pets can be messy. If improperly trained, they may claw and bite at furniture, soil carpets and hardwood and scratch the paint off the walls. It’s true that Man’s Best Friend can be a major pain for landlords and property managers. But did you know that 68% of American households own at least one pet? That’s over 85 million families living their lives with some kind of furry companion, with 4.8 million residing within Washington State. All of these families need a place to live, and yet only 55% of landlords allow pets. There’s a major demand for quality housing for these furry tenants and their human roommates. What are some of the benefits of allowing pets in your rental properties, and what factors should you take into consideration when deciding?

To Pet or Not to Pet

Deciding whether or not to allow pets to stay in your property is a substantial decision, and it comes with both befits and consequences. The biggest perk is that it gives you an opportunity to charge a higher rent or add an additional pet rent or deposit. Pet rent especially acts as a modest but recurring additional stream revenue stream that doesn’t require much effort. Opening your property up for animals also taps into a market many property managers choose to ignore. These tenants are usually more responsible, and they’re almost always looking for a place they can call home for an extended period of time. It can be stressful to move with a pet, and if you help them out, they will be more likely to want to return the favor.

Of course, there are also some risks. Pets can cause property damage, especially dogs and puppies with an affinity for chewing and scratching. Certain dogs may have barking problems, and both dogs and cats may leave unpleasant odors if stressed or untrained. It’s important to have a consistent, building-wide policy on whether or not your building is pet-friendly, as it’ll alert other prospective tenants of an animal presence and that there may be allergens in the common areas.

Things to Consider

You shouldn’t just add a quick tag on your listing saying that your property is pet friendly. It’s important to approach this choice with intention, and that means refining your boundaries and screening your potential tenants. You can do this by asking yourself pet-inclusive questions like the ones below: 

  • Do I need a size restriction?
  • Should I limit the number of pets in a household? 
  • Should I restrict based on breed?
  • What do I consider a responsible pet owner?

The last question is especially important, as it directly plays into the kind of tenant you allow to live in your property. You already know that you have to consider their income, credit, and previous rental history. But ask yourself – do you need them to have their pet fully vaccinated? Do they need to show proof of having the right equipment, like a leash, harness, or even toys? If they’re declaring their pet to be a service, emotional support, or therapy animal, do they have documentation to back that up?

How Zenith Properties Can Help

By now your head might be spinning with every factor you have to keep track of. If that’s the case, you’ll be glad to know that Zenith Properties NW has a way of making the process much easier for you and your tenants-to-be. We offer Screening and Management Services that allow us to find the best and most reliable tenants to occupy your properties. And our pet policy includes a pet screening, enabling our clients to rent to pet-owning tenants without putting their investments at risk. To learn more, contact us today!

Why is Rent Increasing in Clark County?

calendar with "pay rent" marked and circled

During 2022, rents across Clark County WA have been rising. There are many stories of tenants having their rent increased 20% or more. If you live in the area, you or someone you know has likely found themselves on the sour end of this change. With vacancy rates low and inflation booming, people are struggling to adapt to the reality of this new rental market. So why is rent increasing in Clark County, Washington (and in so much of the US)? There are several factors at play.

Contributing Factors

The housing market is constantly in flux. There have been housing booms and market crashes over the years, which have presented challenges to tenants and landlords alike. What’s different about this moment in history is that three crucial factors are at historically high levels at the same time:

  • Inflation
  • Demand
  • Housing Prices

Let’s examine each of these individually.

Inflation

The spike in inflation isn’t news for anyone at this point. It’s the reason why everything from fuel to groceries has suddenly gotten much more expensive in 2022. The optimal inflation rate is around 1 to 2 percent per year. However, according to the US Consumer Price Index, for September 2022, the 12-month percentage change in inflation for all items was 8.2%. This means that goods and services cost more, eating into consumers’ disposable income.

Demand

Recent census figures show that the number of households in the US spiked by 1.48 million in the last year. Because of that, the pool of potential tenants has gotten considerably larger, covering first-time buyers, remote workers, couples splitting up, and young adults leaving their parents’ homes post-pandemic. At the same time, vacancy rates are at historic lows. According to the US Census Bureau, vacancy rates nationally are at 5.6%. To quote the Census Bureau: “Vacancy rates for rental housing are lower than at any point during the 35-year period from 1985 until the start of the COVID-19 pandemic in early 2020. The vacancy rate for homeowner housing is lower than at any point from 1980 until early 2020.”

Home Prices

Because demand for homes has been high and vacancy rates have been low, home prices increased rapidly from 2020 to 2022. In Clark County, the median home list price increased by over 27% between June 2020 and June 2022, according to the St. Louis branch of the Federal Reserve. This is the sharpest two-year home price increase in Clark County’s history. At the time of this writing in late October 2022, the average rate was around 7% for a fixed-rate 30-year mortgage – double what the average rate was in October 2021. This combination of high home prices and higher mortgage rates has made home ownership much less affordable in a short period of time. Many prospective homeowners are renting because they’re unable to buy a home, putting more pressure on rental housing. It’s a challenging time to find an affordable rental. There’s no quick fix but here are some hints that may help.

Reducing Rent Costs

In looking for a new place to live you can decide what you really need as opposed to what you’d like to have. You probably need a full-size range and oven, but maybe you could live without a parking space or in-unit laundry. It’s not the most fun of ideas. Still, if you’re willing to go without some “nice-to-haves”, your options widen considerably. Depending on where you live you may even be able to save rent by moving to someplace a little farther out.

There are other strategies you may want to consider when looking for stable and affordable housing. You can take in or become a roommate, or look into government programs offering assistance. And if you’re looking for a top-quality rental home and a responsive landlord, you can find that in Zenith Properties.

Find Your New Home with Zenith Properties

We can’t control the current housing crisis. We don’t know what the next few years are going to bring. All we know is that we comply with all local, state and federal Fair Housing laws and we would like to help provide Clark County residents with top-quality rental homes. We’ve been a premier property management company in Clark County WA for decades and we’ve been named “Best in Business” in the Property Management category by The Columbian for 5 consecutive years. To learn more, check out our listings or contact us!

Would My House Be a Good Rental?

House with a for rent sign

Investing in a rental property can be complicated, but can it also be gratifying, and profitable. There are many factors to consider, so research is vital before making any concrete decisions about whether to rent out your house. Zenith Properties NW can help you navigate the process of renting out a home you own from start to finish. Keep reading to learn the factors that determine whether your home could be a promising rental!

Rental Property Income Potential

Income potential is defined as the range of income a property has the potential to generate for the owner. It’s probably the most important element in determining whether or not renting out your home makes good financial sense. There are many variables that factor into a property’s income potential. It’s important to consider all of them to accurately calculate the home’s PIP. Here are some of the most important factors:

The Neighborhood

The only thing more important than your rental property itself is the area and community that surrounds it. The neighborhood where your rental property is located is one of the biggest factors in the potential rental price and the type of tenants you can attract. For long-term tenants, the ideal area has low crime rates, quality nearby schools, employment opportunities and many other amenities. And different tenants have different priorities in mind.

A student is more likely to want a short-term, furnished rental while caring less about the quality of the property. Families, on the other hand, are usually looking for a place they can stay in for an extended period of time.

Future Growth & Development

The future development near your property is another big factor in the desirability of your rental. If there are one or more large construction projects going on nearby, that’s a good sign that the area is experiencing healthy growth. Increased commercial development nearby can mean more amenities and/or jobs which can increase property values nearby. You may think that increased residential development means downward pressure on housing prices in the area. However, the cost of building housing today is substantially higher than 10 or 20 years ago. The further back you purchased your home, the greater the difference, i.e. potential profit, between your mortgage payment and prevailing rents in the area.

Nearby Amenities

Your future tenants will want a home that’s near the kinds of amenities that appeal to them. It helps here to know your neighborhood and everything that it has to offer. You likely already know where the essentials like gas stations or grocery stores are, but to know the base of potential tenants you should familiarize yourself with the various types of amenities nearby.

Students may want to know about the closest libraries, families, the nearest parks, and everyone will likely appreciate living near some quality dining options. Where is the nearest coffeehouse? What about state parks or recreation areas?

Weather/Natural Disasters

It’s also good to understand the potential natural disasters that could strike the region where your property is located. This can be earthquakes, tornados or hurricanes – all “Acts of God” that (along with flooding) likely won’t be covered by your homeowner’s insurance.

Experts in Rental Property Management

It can be intimidating renting out a home for the first time but it doesn’t have to be! If you have the insights of an experienced property manager guiding you, you can move forward with confidence. Zenith Properties NW is Clark County’s premier property management company. We’re staffed by professionals with years of experience helping homeowners like you turn their property into housing that’s needed in the community while providing a steady stream of income for you.

We’ve served the Clark County area for over thirty years. If you’re ready to explore renting out a home you own, contact us today to get started!

How Do Interest Rates Affect My Rental?

Person stacking wooden blocks with percentage signs written on them

Many landlords overlook the impact that interest rates can have on their rental. After all, unless you’re looking to purchase a new property, mortgage interest rates may not seem relevant. However, interest rates can considerably influence the housing market, which will eventually impact the rental market. Understanding how interest rates will affect your rental can help you make informed decisions and get the most out of your property. Here’s what property owners need to know about interest rates and how they can impact your rental.

What Causes Interest Rates to Change?

Sudden changes in interest rates may seem arbitrary, but they actually happen for a number of reasons. Here are the main factors that can cause interest rates to change:

  • Supply and demand: Any time there is a sudden spike in the demand for credit or loans, interest rates will increase – and vice versa.
  • Rate of inflation: Inflation decreases the spending power of the dollar over time. To combat this problem, lenders will increase interest rates.
  • Economic growth: If the economy is thriving, many lenders will decrease interest rates to further encourage consumer spending.
  • Global factors: Foreign competition, political unrest, and other global factors can influence consumer spending and therefore impact interest rates.
  • US Federal Reserve: The US Federal Reserve is the central bank of the US. When the Fed changes its interest rates, these changes will ripple down to consumer loans.

How Do Interest Rates Impact the Housing Market?

Mortgage interest rates directly influence the affordability of a home, which is why even small fluctuations can have a huge impact on the housing market. As interest rates climb, homes become less affordable for the average buyer; even a 1% raise can increase a household’s monthly mortgage payment by $56 for $100,000 that the house is worth. For this reason, rising interest rates often cause potential homebuyers to delay making a purchase.

How Do Interest Rates Affect Rental Properties?

High interest rates can have a positive impact on rental properties. Though they make it more difficult to purchase or sell a home, higher interest rates help maintain the demand for rental units, which can be very beneficial for landlords. Having a high demand allows property owners to fill vacancies quickly while remaining selective with tenants and charging more for rent.

On the flip side, low interest rates can cause a dip in demand for rental properties, which will have the opposite effect. Keeping an eye on interest rates can help you anticipate the demand for units, which will allow you to make tactical decisions as you manage your rental.

Get Strategic Property Management Services

To increase your rental property’s performance, it’s important to know how to follow and take advantage of economic trends. However, there are hundreds of factors that can impact the rental market, which is why it’s useful to work with experienced professionals. At Zenith Properties NW, we are committed to helping you get the most out of your rental while alleviating all the pressures that come with managing a property. With over 30 years of experience in the local Clark County WA markets, we know what it takes to bring your property to the next level. Just contact us today to get started!