Being a Landlord Is About to Start Paying off Big Time

Being a landlord hasn’t been easy over the past couple of years. Not that it’s ever entirely easy, but local and federal pandemic mandates and eviction moratorium made it harder to even collect rents, let alone raise them.

But according to recent survey data highlighted in this Realtor Magazine article, landlords plan to substantially raise rents this year, and all signs point to tenants being willing and able to pay higher rents.

Here’s a look at how much surveyed landlords are planning on increasing rents by in the coming year:

  • 38% plan on increasing by 5% or less
  • 45% plan on a 5-10% increase
  • 9% are planning on a 10-15% bump
  • 5% are seeking a 15-20% hike in rent
  • 3% are asking for an increase of 20% or more

The amount your market and tenants will be able to bear has to be taken into consideration, but overall the article cites that 82% of renters have not missed a payment in the past 12 months, showing that the majority of tenants are able to pay regularly and stay current. Seventy-seven percent state that they do not anticipate missing a payment in the next three months to a year.

Coupled with low supply of houses for sale (especially in the entry-level markets) and rising interest rates, demand for rentals should be high.

The Takeaway:

If you’ve struggled to collect rents and pay your mortgage over the past few years, and are thinking about selling your rental property, you may want to reconsider. If you can, hold on to your rental property and raise your rents as much as the local market will bear.

If you haven’t been struggling, but you’ve been hesitant (or unable) to raise rents in the past couple of years, consider raising the rent as leases come up for renewal, or when accepting a new tenant.

And if you haven’t already invested in rental property, now may be the time to buy one, before rents are raised which will increase the market value and cost to buy one.

12124 Quorn Ln, Reston, VA 20191 *Rented*

Classic Reston contemporary patio home, fully updated. Enjoy private, wooded surroundings while living conveniently close to everything. Hidden away in the corner of a small cul-de-sac off a private road, backing to Reston trails. Easy access to major commuter routes and Metro. Paved trails to Hunters Woods Elementary Magnet School for the Arts and Sciences. School bus also stops at end of driveway. Three bedrooms with 4th bedroom or office next to the primary bedroom. Open, expanded kitchen, including gas range/electric oven; hardwood flooring throughout the first floor and eco-friendly, hypoallergenic new cork flooring on the second level. Two-car garage; extra parking also available. Laundry room on same floor as bedrooms, and extra-large storage room. Brick, wood-burning fireplace in sunken living room. Bathrooms currently being remodeled. Central heat and air conditioning, with Nest smart thermostat. Restaurants, grocery stores, community center with summer day camps for kids, hair salons, dry cleaners, etc. a walk, bike ride or very short drive away. Reston pool and rec areas back to subdivision, tennis and basketball courts just down the trail. Enjoy watching foxes and deer from the large deck in the backyard. Tenant responsible for small amount of mowing (push mower provided by owner). Pets allowed case-by-case.

 

Offered for $3450/month. Listed by Meghan Pachas 

211 E High St, Shepherdstown, WV

Rare opportunity to live in a piece of history! Built in 1759 by Abraham Shepherd, home is on National Historic Homes Registry. Hardwood flooring throughout entire home, five bedrooms, kitchen features two refrigerators. Decorative fireplaces throughout home.

Spacious backyard with views of stream and historic mill. One block from University, restaurants, shopping.

 

Click here for virtual tour

Offered for $2800/month. Presented by Meghan Pachas, Principal Broker

WV license number WVB180040048