As a property management company, we closely monitor the duration homes spend on the market. Typically, appropriately priced homes are leased within 30 days. If a home remains on the market for an extended period, it signals an overvaluation based on its condition and location, necessitating a reduction in price. The market dictates the pricing dynamics.
In the past six months, exacerbated by uncontrollable inflation, we've observed an increase in rental durations, often exceeding 60 days. To bring the days on the market back to 30 days or less, we've actively slashed rental prices. Homeowners grappling with selling challenges are contributing to heightened inventory by listing their properties. This trend has led to a struggle in the short-term rental market, prompting owners to transition to long-term rentals.
Reduced demand is a result of the upfront costs associated with moving, including one month's rent, a security deposit, and the expenses related to relocating a household. Consequently, renters find it challenging to allocate sufficient funds for such moves.
In summary, there is a surplus of inventory coupled with diminished demand. Adjusting your rental strategy in the next few years is crucial to ensuring prompt leasing. Whether you have a market rental or a Housing Voucher home, get those prices in line quickly. Each passing month represents unrecoverable lost rent.