Homes for Rent Suffer from Recession
The economic recession has been continually hurting the country. Particularly, the housing industry has been experiencing the effects of the recession. Homeowners are not able to pay their home mortgages. This has extended to renters and landlords, who are also suffering the bad effects of the economy. The homes for rent market continued to crawl amid the tough economic times.
Around 50 percent of property managers around the country are having a hard time getting renters who are fit to occupy their homes for rent. According to a survey conducted by TransUnion, eight out of ten landlords are worried as to how they would be able to survive for the rest of the year.
Even as the homes for rent market is expected to improve from the homeowners who had their homes lost to foreclosure, there still seems to be very minimal growth in the number of renters. In fact, only 50 percent of landlords reported that they had applicants from people with foreclosed properties. This seems to root from the alternative of moving in with family members and relatives to save more.
In Los Angeles, landlords are turning into different strategies for them to be able to keep renters and attract more. The increased number of vacancies in homes for rent has pushed landlords to give discounts on leases.
This has made Los Angeles a renters’ haven. According to industry experts, the renting market in the area has turned to be in favor of renters who are looking for places that are highly affordable. According to Vickie Callahan, a landlord in the area, this is probably the most saturated market that she had ever experienced.
During the first quarter, Los Angeles saw its homes for rent vacancy rates rise to 5.3 percent. This was an increase from 3.8 percent in the year before. As homes for rent become more affordable, people who need affordable places would find a lot of choices and options in Los Angeles. Landlords are very much willing to go into negotiations about giving discounts to their leases. There are even other property managers who offer add-ons and perks to attract more renters to occupy their properties.
