Whether you’re new to the rental market in Riverside County or an experienced property owner here, there are some rental market trends that need your attention. Currently, what we’re looking at is higher rental values, a strong demand for rental properties, and the emergence of new technologies that are making it easier to rent out a home to qualified tenants.
Tenants are more educated, too, and they’re vocal about what they want and need from a rental home.
What does that mean for you, as a property owner? It depends on what you’re planning to do with your investment.
This remains a strong and competitive market, and the local economy has been able to support some shifts in the market and higher prices. Let’s talk about what this means for you and your property.
Rising Demand for Riverside County Rental Homes
There are a lot of well-qualified tenants looking for rental homes. Over the last few years, Riverside County has seen a steady increase in rental property demand. This is due to a number of factors, including:
- A growing local economy, causing more people to move into the area. Riverside County’s population has increased for 11 of the last 12 years at a rate of between 1.5% and 1.7% every year.
- Home ownership costs more than it ever has. Not only are asking prices higher, the interest rates have settled at historic highs, making mortgages more expensive. This is keeping people in their homes and leaving many renters in the market, even if they would have bought a home by now.
- Diverse demographics. In Riverside County, our tenants include a young population starting their careers as well as families, professionals, and retirees.
As an investment property owner in Riverside County, capitalizing on this increase in demand can help you maximize your rental revenue. Attract these tenants who are looking for homes by ensuring your property is priced competitively and in accordance with market demands. Make the improvements and cosmetic upgrades that are necessary to attract good tenants. And, market your rental home strategically.
Be Vigilant about Placing Good Tenants
While high tenant demand is a welcome development for rental property owners, it also has its drawbacks. With increased demand comes the risk of more tenancy applications and the added challenge of choosing suitable tenants that meet your rental criteria.
If you’re looking for a tenant and hoping to avoid a prolonged vacancy, it’s easy to glance at an application and approve the first tenant who wants to rent your home. Be more strategic than that, and make sure you’re following all state fair housing laws.
Conduct thorough background checks and screenings of potential tenants, including their credit history, employment and income, and rental history. You want to avoid renting out your property to tenants with a history of breaking leases or causing property damage.
Riverside County Tenants are Looking for Amenities
One rental trend that you need to take seriously is the shifting demands of tenants.
They’re more educated than ever, and they have higher expectations for their rental homes now than they did a decade ago. Offering amenities will lead to better residents and higher rents, so it’s a good idea to respond to these needs from your tenant pool.
In addition to favorable prices, tenants looking for rental properties are also interested in various amenities that enhance the overall experience. Consider incorporating amenities like:
- Smart home functionality, particularly things like smart thermostats, video doorbells, and energy efficient appliances.
- Central air conditioning.
- In-unit laundry.
- Updated outside space.
Pet-friendly properties are in high demand, too. Make it easy for good tenants to choose your home over the others they’ll find on the rental market.
Riverside County and California Rental Laws
Pay attention to the ever-changing rental laws that impact your property and the way you work with tenants. We’ve been working with rent stabilization and just cause eviction laws for several years now, so you should feel comfortable with those requirements. Security deposit laws are changing, and you’ll need to know the limit to what you can collect in a security deposit – it’s dropping from two months’ rent to one month’s rent in the summer. If you’re renting out a multi-family property, you need to know that there are new requirements around organic waste recycling.
Tenant protections are more than a rental trend; in California, they’re standard practice. You need to stay up to date on Riverside County’s housing policies so you can stay compliant. Nothing will be worse for your bottom line than a fair housing fine or a penalty because you waited too long to return the security deposit.
Technology as a Property Management Trend
Whether you’re working with professional Riverside County property managers or you’re leasing and maintaining your rental property on your own, you’ve likely noticed that technology is more important than ever. There are trends around video tours, self-showings, online rent collection, automated emails and correspondence, and intuitive accounting.
This is a trend that can be a huge benefit, especially when it comes to saving time and money and providing your residents with a better rental experience. We believe that property management is a relationship business, and we always put a personal touch on the way we work with tenants and owners.
Technology allows us to spend more time on relationships.
We use property management tech to manage leasing, marketing, screening, maintenance, inspections, and lease renewals. Your accounting statements are detailed, accurate, and transparent thanks to our property management software.
There’s more tech coming, too. Expect trends around Artificial Intelligence (AI) and further automation. We’ll tell you more as those things develop and enter the mainstream.
Keeping a keen eye on the Riverside County rental market trends will help property owners remain competitive in the business. Staying abreast of industry information such as the rise in tenant demand, offering tenant-friendly amenities, choosing good tenants and staying compliant with legal protocols and ahead of new tech will help you maintain the value of your properties, mitigate risks, and continue generating sizable returns.
Let’s talk about your property specifically. Contact us at Diamond Property Management.
