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Are some landlords selling in this Market?

May 3, 2014

So on our recent vacancy the home rented fast. We had several good candidates and everyone seemed to be telling us the same thing – “Properties are renting quickly”. We noticed the same thing. There was only one other sign up in the immediate neighborhood of our vacancy. That sign was up one weekend and gone the next one.

Our signs were up for two weekends, but we were being conservative as we had a verbal commitment but had not received the deposit. Our candidate pulled through and we ended up pulling our signs as they paid the deposit on Sunday afternoon. We called on a few other rentals and those properties had also already been rented.

time to move
Several of our walkthrough prospects were telling us they were moving as their landlord was selling the property. Values have certainly come up in this neighborhood and we have seen a few flip projects lately as well. Not sure if this is just landlords taking advantage of the increased values, a seasonal thing, tired landlords, an anomaly or what? The neighborhood is predominately owner occupied homes, but we know there are a decent number of rentals as well.

We were certainly aware of the market and did take the advantage to raise the rent. We ended up raising the rent to $1,250 from $1,135. A significant increase, but it has been two years since we last raised the rent. Our current practice has been to never raise the rent during a tenancy. So far we have stuck to this trend, but it’s not a promise I make to any of my tenants for sure..

This trend of tenants having to look for other properties as their landlord is selling intrigues me. It is somewhat ironic as I recently sold one of my rentals as well. Albeit this was to my current tenant, but selling certainly appears to be on the minds of many. It would seem to me that as home values increase, demand for housing rises, and interest rates start to head north – at some point a few landlords will pull the trigger and sell. Has anyone seen this trend in your market?

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From → Landlord

3 Comments
  1. Great article! So far, I haven’t noticed any fellow landlords selling their rental properties. However, it seems in general, a few more houses are on the market now than there has been in the last few years.

    My wife and I eventually plan to sell our home, as our kids are leaving the nest, but we plan to wait a few more years and let the value rise.

  2. Hey,Terry, The wife and I will be downsizing as well in the next few years. We might even move back into one of our rentals…. So here again proving the point of the post.

  3. Chuck, This shows how great minds think alike. My wife and I are also considering moving into one of our rentals.

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