Rent

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!

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!

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!

Your rental property is a huge asset, which is why it’s in your best interest to maximize its value. Though many property owners balk at the thought of spending money on dozens of repairs or upgrades, investing in your rental can have a huge payoff. And, many of these upgrades don’t have to break the bank to be effective! Here are the best rental upgrades you can make to increase your property value:

Apply a Fresh Coat of Paint

Repainting your rental property is a budget-friendly way to make a big difference. A fresh coat in the right color goes a long way in making a rental look clean and cozy. To save even more money, you could try to negotiate a discount by buying paint in bulk. That way, you also won’t have trouble finding a color match if you need to do some touch-ups later on.

Replace Interior or Exterior Doors

Believe it or not, your doors can make a big impression – especially if they are in poor condition. If your front or interior doors are sticky, scratched, squeaky, or frequently stuck, then they could give off the sense that your property isn’t getting the attention or care it needs. Replacing or touching up your doors is an easy and cost-effective way to boost the appeal of your rental.

Add New Landscaping Features

Landscaping is one of the first things that people will notice about your property, so it should be clean and inviting. Though massive landscaping projects can get quite expensive, you don’t have to go overboard; a well-kempt lawn, some flowers, or potted plants can go a long way.

Refresh Your Flooring

New flooring can be pretty expensive to install, but dingy or stained carpet can seriously diminish the appearance of your rental property. Many renters value units with hardwood, laminate, or tile flooring – both because it looks better and because it’s easier to care for. Investing in new flooring can totally change the look and feel of your rental while adding immense value.

Upgrade Your Appliances

Though appliances can be a little more expensive to upgrade, they can add a lot of value. Newer or repaired appliances look and function better, and they show tenants that you are willing to invest in their comfort. And, some appliances – like washers and dryers – can even allow you to charge additional fees.

Pressure Wash the Exterior

Pressure washing is probably one of the cheapest and most impactful ways to upgrade the appearance of your rental property. Within a matter of hours, you can wash away dirt, mold, and mildew from the exterior of your property – including areas like the porch or balcony. If you don’t own a pressure washer, you can rent one at your local hardware store or hire some help.

Invest in Better Lighting

Lighting can completely alter the mood of your rental property while illuminating all of your other beautiful features. A relatively inexpensive way that you can improve your lighting situation is to change light bulbs, clean out and dust fixtures, and make repairs to broken fixtures.

These upgrades can help you maximize your rental income in no time. If you are looking for more ways to boost your property’s value, contact the property management experts at Zenith Properties NW! Our experienced professionals have been proudly helping property owners throughout Clark County WA for over 30 years, and our expertise can help bring your property to the next level. Just give us a call today to get started!

It’s crucial to screen your tenants carefully prior to signing any agreements. An irresponsible renter could cause damage to your property, and high turnover or eviction rates can take a big toll on your business. That’s why it’s important to know how to find responsible tenants that are a good fit for your property. Here are some steps you can take to evaluate potential tenants:

Set Criteria for Your Tenants

The first step in finding great tenants for your property is to determine exactly what you’re looking for. Sit down and think about the kinds of things that are important to you. Some things to consider include income, rental history, credit score, criminal background, and more.

Once you’ve listed all of the factors that are important to you, set a criteria for your residents. This criteria will make it easier for you to review and compare applications.

Request an Application

An application is a great way to collect basic information on the renter. You can use this information to run credit and background checks while determining how honest they are on their application. When creating an application form, you should request information such as:

• Name and date of birth: This information is important when running credit, criminal, and background checks. If you plan to run credit or background checks, be sure to clearly state that the tenant is agreeing to be subjected to these checks when they submit their application.
• Employment status and history: You want to make sure that your tenants are going to be able to continuously afford rent, which is why it’s useful to get an idea of what their employment status and history is like. Gaps in employment may not be a reason to push applicants away, but applicants should be able to demonstrate that they have a stable source of income to cover rent.
• Total household income: A household’s total income should be around 2-3 times as much as the rent amount. When asking about the total household income, it may also be useful to ask how many individuals will be occupying the property to ensure that the space is large enough to accommodate each person.
• Number of pets: Pets are capable of causing damage to your property, which is why it’s useful to know how many pets the applicant has. You can use this information to determine whether it would be appropriate to require an additional pet deposit or monthly pet rent fee.
• References: References are a great resource for you to use when screening applicants. They can help you gauge the prospective tenant’s behavior and rent history.

Run Credit and Background Checks

Before running a credit check, be sure to read through the Fair Credit Reporting Act to ensure you are following the correct regulations. If you are going to run a credit check, you legally must inform applicants of their right to a free credit report through the agency. However, you may also want to check local and state laws to see if you are able to charge applicants for the cost of a credit check.

Additionally, you can use information from background checks to get a better idea of what the applicant’s past behavior is like. These reports can provide details on things like previous evictions and criminal records, which can be very useful in determining whether or not the tenant is a good fit for your property.

Contact References

Don’t forget to contact the applicant’s references! Though it may be tempting to skip this step, references are a great way for you to get a first-hand account of what the prospective tenant is like. When contacting one of their previous landlords, you can ask questions such as:

• Did the applicant pay rent on time?
• Did the applicant ever receive noise complaints?
• Did you have to withhold any part of the security deposit?
• Would you rent to this applicant again?

Interview the Renter

If the prospective tenant seems like a good fit, then it may be time to schedule an interview with them. An interview allows you to get to know what the applicant is like as a person, and it gives you an opportunity to ask any additional questions that you may have. Good questions to ask include:

• Does anyone in your household smoke? If so, indoors or outdoors?
• Does anyone in your household work nontraditional or night hours?
• Do you have plans to get a roommate while living here?
• Do you have frequent overnight guests?

When conducting your interview, do not ask invasive questions and be sure that you are complying with the law. Obtrusive questions about things like sexual orientation, disabilities, age, ethnicity, family status, or religion could violate the Housing and Urban Development’s Fair Housing and Equal Opportunity requirements.

How an Experienced Property Manager Can Help

Taking the time to carefully screen and interview each applicant can easily become a full-time job, especially if you have multiple vacancies to fill. However, you don’t have to do it all alone! Experienced property managers, like those at Zenith Properties NW, have the expertise and tools needed to find great tenants quickly and efficiently. If you need help finding responsible tenants to fill your properties, just give us a call today to get started!