The residential rental market continues to be very challenging. This month we have good news and we have not so good news.
First, the not so good news. There is still a high vacancy rate in the metro area. Now that the July-August peak season is behind us it means that those vacant units will be asking lower rents to attract prospective tenants. We are still getting inquiries on our vacancies but most of these are looking for short-term rentals at very reduced rates. Everyone is being affected by this market--including the student rentals. Our recommendation for a vacant unit is to reduce the rent to get someone in the unit. Signing a lease through the winter and into the spring (i.e., May or June 1st) will give some cashflow and should improve your chances of securing a long-term tenant for next year.
The good news is there are signs of improvement. Looking at the chart of advertised rentals we see an interesting trend. After the peak season 2003 it was not until March '04 that the the numbers went below the 900 mark. This year we are already back below the 900 level just a few weeks after the Labor Day Weekend--normally considered to be the end of the peak season. The numbers are still way above where we were 2-3 years ago but many of our peers see this shortened cycle as a good indicator for next year.
