Landlords have a lot to look forward to with rent trends in 2016. Signs point to beneficial innovations in the industry as well as favorable conditions generally for renting properties.
The following are some of the top rent trends landlords can expect for 2016:
1. More “Millennials” Moving In
As the millennial generation continues to grow up, leave home and look for a place to live, landlords can expect to see more and more of them applying for their rental properties. This generation is characterized by the qualities of creativity, innovations and being tech-savvy; however, some can also have a short attention span. Tenant screening can assist in determining which millennial tenants have been responsible and organized with on-time payments to past landlords and other financial responsibilities.
2. The “Digitizing” of the Rental Process
Other rent trends to watch in 2016 are the movement of rental processes online. From listing a property for rent to answering questions and corresponding with potential renters, the process is more streamlined and efficient than ever before. There are even online property management software solutions to help streamline the process, from drawing in applicants to lease signing/management to taking care of rent payments electronically.
Sites like CraigsList, Zillow, PadMapper and Trulia offer free or affordable ways to list rental properties online and generate a high volume of applicants from which to choose. Tenant screening can assist in narrowing down the field to the highest quality applicants.
3. More People Looking to Rent
Rising real estate prices and mortgage rates are set to continue effecting rent trends in 2016, making buying a home less affordable and attainable than it once was. Attitudes are also changing regarding pursuing property ownership as part of “the American dream” as many Americans now see renting as a more favorable option. Qualifying for mortgage loans is also harder than in the past. All of these factors will contribute to a larger pool of potential renters from which to draw.
4. The Use of Professional Tenant Screening will Increase
The bigger tenant pool along with an online, streamlined and digitized rental process will give rise to the need for more stringent screening processes in order to find the best tenants. Professional tenant screening services will become more utilized in 2016, leading to increased business success and peace of mind for landlords.
More millennial tenants, a streamlined rental process, a larger pool of renters and the need for high-quality tenant screening are all expected rent trends for 2016. With an awareness of what’s ahead, landlords can make the most of the rental market this year.