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? Export
  • 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!

Why Summer is the Best Time to List Your Rental

Image of for rent sign - why summer is the best time to list your rental - Zenith Properties NW in Vancouver WA

To get the most out of your rental property, it’s crucial to implement long-term strategies that will maximize profits. One of the best ways to boost your rental’s performance year-round is to take advantage of seasonal trends by listing your property at the right time of year. For most, summer is the best time to list your rental for a variety of reasons:

  • Better weather: Blue skies and sunny days create the perfect opportunity for potential tenants to view your property. Good weather also makes it easier for tenants to move in, which is part of the reason why many people wait until spring or summer to switch locations.
  • Higher demand: Summer is a high-demand season for rentals, especially because of college and university schedules. Fresh springtime graduates will be looking for new areas to live, and new college students will be looking for units near their school before fall semester begins.
  • More applications: Because of the higher demand for rentals during the summer, landlords will likely receive more applications during this season. Not only does this allow you to be more selective when choosing tenants, but it also provides a great opportunity for you to raise or update your rent prices.

How to Take Advantage of Peak Rental Season

While listing your rental during summer is one way to take advantage of peak season, there are a few other tips and tricks you can follow to make the most out of the yearly spike in demand. Here are some great ways to take advantage of peak rental season:

  • Schedule leases to renew during summer: Most tenants will wait until their lease expires to move, which means you can expect to have more vacancies when leases are set to renew. To make this trend work in your favor, try to align the lease expiration dates with summer. That way, vacancies are more likely to fill quickly and you’ll have more units available.
  • Perform maintenance and improvements during spring: Making property improvements during the spring is a great way to set yourself up for success during the summer. The fresh updates will help your rental stand out from the competition while providing you with a reason to raise rent prices, resulting in more and higher-paying tenants.
  • Begin advertising early on: Most people who plan to move during the summer will start looking for their next location beginning in spring. To ensure your property is visible while people are searching, try advertising in the late spring when people start looking.
  • Work with an experienced property manager: Summer is an incredibly busy time of year for landlords, and it’s easy to become overwhelmed – especially if you have a lot of units to fill. Thankfully, you don’t have to handle everything alone. An experienced property manager can help streamline your processes to save you time and money while ensuring your property and tenants are all set up for success.

If you need quality property management services in Clark County WA, turn to the experts at Zenith Properties NW! Our team has over 30 years of experience in local real estate markets, and our knowledgeable team is dedicated to providing you with exceptional and dependable service. Contact us today to get started!

How a Property Manager Can Save You Money

Image of a property manager in Vancouver WA - Zenith Properties NW

Managing a rental can be a challenging job. From screening prospective tenants to performing upkeep and repairs, a lot goes into maintaining your property and keeping your renters happy. Fortunately, you don’t have to handle it all alone! An experienced property manager can take some stress off of your daily life while also increasing your profits. Here are just a few of the ways a property manager can save you money and time:

Reduced Vacancies

A great property manager can reduce your vacancies and ensure that your rental is always performing at its best. From great marketing to a streamlined application process, property managers have the resources necessary to fill your units with great tenants. Most management companies also do not charge for vacancies, so you wouldn’t have to worry about paying for empty units.

Savings on Maintenance and Repairs

Maintenance and repairs make up a significant portion of your expenses as a property owner, so savings here can really add up. That’s why many property managers have deals and discounts with regular service providers. Some even have an in-house staff to perform fast and effective service at lower prices. These special deals will not only save you money, but they’ll also ensure your property is always in great shape and that your tenants are taken care of.

Lower Turnover

Experienced property managers know how to build long and positive relationships with their tenants. By responding to problems in a quick and helpful manner, they can keep renters happy and reduce turnover rates. This will save time and money on the tenant placement process while keeping your rental performing as well as possible.

Avoiding Legal Disputes

It can be difficult to navigate all of the legal rights and responsibilities of landlords and tenants, which could lead to disputes. Even if you are triumphant in court, legal issues can cost a significant amount of time and money to resolve. Thankfully, property managers have extensive experience with local real estate laws, and they are prepared to help you avoid legal conflicts in the first place.

Timely Rent Payments

Rent collection can be a real challenge for property owners, especially if tenants are consistently failing to make payments on time. However, an experienced property manager will know how to handle the situation in the best way possible. If tenants continue to miss their payments, a property manager can also initiate and handle the eviction process.

Experienced Property Managers in Vancouver WA

Maintaining your rental and keeping your tenants happy is a full-time job, which is why an experienced property manager can be so helpful. If you are in need of great property management services in Clark County WA, you can count on the experts at Zenith Properties NW! We are proud to offer exceptional services that will make your daily life easier while saving you money and keeping your property thriving. With over 30 years of experience in local real estate, our skilled team is prepared to meet all of your needs – just give us a call today to get started!