The surplus in rental units in the Bay Area is growing, and it’s more important than ever to keep your unit the cream of the crop when leasing.
In the past few years, the Bay Area rental market has been flourishing. With new companies opening and job seekers coming all over the world, it used to be easier to quickly rent out vacant units.
However, there has been a trending shift lately.
Companies and start-ups are finding alternative cities to plant their roots and places with less expensive leases. And the jobs are going with them.
So what does this mean for homeowners with vacancies?
With Bay Area rents at an all time high, we could expect rental rates to cool off in the future. The way things are going, and with the current quality of vacant units, there is a surplus of rental units.
As property managers, we notice that rental unit competition is getting stiffer. As much as homeowners want to rent out their unit, so do the homeowners next door and down the street.
On top of this, in order to stay ahead of the competition, vacant units are increasingly getting full remodels in bathrooms, kitchens and even curb appeal.
Here are a few ways to keep your property’s competitive edge in the market and get the most returns on your investment.
The bathroom is a place of cleanliness, and keeping it simple and clean can help stir a potential tenant’s decision to rent.
The good news is you don’t have to break the bank when doing a bathroom remodel. For one, keeping the plumbing where it already saves you a couple thousand dollars.
Instead of replacing a whole toilet, replacing the toilet seat and cover can save hundreds of dollars.
Lighting also makes a big difference, especially those around vanity mirrors. In addition, a new coat of paint can turn things around nicely as well to give the feeling of novelty.
Fans and ventilation upkeep is also important as this helps prevent mold growth.
Faucets, countertops, tubs/showers, cabinetry, and flooring are the more costly projects but can make a huge difference when getting a renter. The least that can be done is making sure these amenities are clean.
Homeadvisor has a helpful overview guide on costs
The most common renovation requests we get in the kitchen are gas/stove range, refrigerator, and cabinetry work. If these appliances were ordered and installed not too long ago, one of the best options is to do a deep clean to give that novel feeling.
If we’re talking about full renovations, much of the costs will come from designing, installation, and appliances.
Here’s a helpful guide for overview costs
They say you can’t judge a book by its cover, but seeing a well-kept curb appeal can make a huge difference.
If you really want to keep a competitive edge in the rental market, make the statement with updated yard and landscaping.
Again, you don’t have to break the bank; using low-maintenance plants along with native plants can help keep prospective tenants.
Lease Term Flexibility
As you know, leases are commonly drawn up as a 1-year deal. However, striking up a different deal may win a prospective tenant over.
One popular option we are seeing is a 2-year lease with guaranteed no annual rent increase the following year.
Not to mention giving a concession such as half or a whole month off of rent is another common tactic to find tenants.
Although owners have a right to not allow pets, this option is becoming more common. We understand that pets may cause some damage to the property, which is why pet deposits exist.
Keeping this option open will help bring in a different set of potential tenants.