Rising inflation has had an impact on every part of the economy. The housing market has been especially affected, and it has meant higher home prices, rental values, and mortgage costs. With interest rates climbing and other costs associated with homeownership increasing, a lot of would-be home buyers have been pushed to the sideline. They’re not buying in this market, against the backdrop of inflation and higher home prices. They’re continuing to rent instead, which is good news if you’re a rental property owner.
There’s been a strong trend to sell, thanks to higher home values. However, if you have an interest rate that’s less than four percent, you should consider keeping that property. Even if you are moving into a new home or out of the area, hold onto the property and rent it out. The tenant pool is strong, and demand for high-quality rental housing is high.
Here’s what you can expect with inflation being what it is.
Rising Columbus Rental Values
Rents are high, and even if they’ve peaked, landlords are earning more every month than they ever were before.
There are several reasons that tenants are paying more to rent your property.
- High demand. As we said; housing prices are higher and interest rates for mortgages are rising. Renting is more affordable and attractive to many people. The high demand for rental properties has driven up prices.
- Inflation. Tenants have no choice but to adjust to climbing rental prices. This will be true whether we’re looking at a home that you’ve just listed for the first time or a lease renewal that you’re negotiating with an existing tenant.
Rents are higher. But, so are your expenses.
Columbus, GA Rental Property Costs
Your rent is higher and so is your home value.
There are also rising expenses, especially when you look at your maintenance costs. You might also find you’re paying more for your accounting services, legal advice, insurance policies, and property management in Columbus.
Property taxes could be higher, too. Your property has likely increased in value over the last couple of years. That means you will owe more. It requires careful budgeting and reporting.
Navigating Inflation and New Market Factors
There are a few things you need to do to adjust to the new normal.
First, get an accurate rental value for your property. While you can charge more in rent, you also need to remain competitive in the market. Access good data and conduct a comparative rental analysis so you know what your competition is asking and what you should be earning.
Invest in preventative maintenance. When you respond to repairs immediately and you stay one step ahead of the work that keeps your property safe, functional, and attractive, you’ll find there are fewer emergency repairs that need your attention and your money.
Work from a list of preferred vendors and contractors. Not only is inflation driving up the price of maintenance and supplies, but it’s also creating a bit of a labor shortage. Establish relationships early with professionals you may need in the future.