2015 for Los Angeles Property Management companies saw a tight rental market lead to a shortage of available units and quite the rent increase across the city. Although, renters are frustrated with higher prices, these trends are welcomed by Los Angeles Property Managers looking at lower rental vacancies and keep a steady amount of good tenants. Upcoming Los Angeles rental trends are going to impact Los Angeles Property Managers’ roles and their list of responsibilities.
Los Angeles Property Management Related Study
89.3 KPCC a Los Angeles public radio station had reported on the rising rents across the county. A USC study found that rents countywide were projected to grow about 8 percent from 2014 through mid 2016. Researchers from the radio station found that rent in Los Angeles alone was up by 12 percent by 2015.
As reported by KPCC, when it came to Los Angeles Property Management renters are spending about 50 percent of their income on rent. A Harvard study showed that Fifty nine percent of Los Angeles residents are spending about 30 percent of their income and more on rent. If this continues, people who love their home may be forced to move into other suburbs, even out of state.
A Rent Increase
Los Angeles Property Management has seen an increase in rent growth varied across city submarkets, Axiometrics reported. The Palmdale/Lancaster area had the highest rent growth of 10.8 percent, followed then by Studio City/Sherman Oaks/North Hollywood and Encino/Woodland Hills/Tarzana all with 9 percent each. Pasadena had about a 7.5 percent rent growth. In the mid range with West Hollywood, Beverly Hills, and Park LaBrea, about a 5.7 percent rent growth. Other submarkets with the lowest rent growth were Downtown, Silver Lake, and Westlake with 4.3 percent increase, and Hollywood and Los Feliz with just about a 3.3 percent rise.
As these numbers show, Los Angeles Property Management being right in the middle of the rental market, is uneven. Even though landlords in other areas raise rent significantly and are still able to attract scores of tenants, a few are somewhat limited in how rent rises they can affect those making ends meat, so to speak.
Los Angeles Property Managements’ Unhappy Tenants
As of September 15 of 2015, the average rent Los Angeles Property Management set was about $2,180, that is up $145 from a year before. While Los Angeles Property Managers are rising fees, the city is still, only the eighth most expensive city in the U.S. Falling behind San Francisco, Oakland, New York, and Boston. Any newcomer to Los Angeles will be surprised at what they can rent with a budget, and these new residents could end up paying a premium for properties with particular amenities.
In combination with these high rents was a low vacancy rate of about 3 percent, this left Angelenos struggling to find a place to live. For Los Angeles Property Managers, these trends tend to bring greater stability to apartments and condos. Tenants will be less likely to leave knowing how few rentals are actually available.
In the midst of all of this, higher residential real estate with its prices of today make it a bit difficult for renters who were thinking about taking a leap to homeownership. Los Angeles Property Managers have observed the market scarcity and high prices, now a days getting that single family home in Los Angeles or Long Beach is out of reach for a lot of people.
Los Angeles Property Management knows to keep up with property maintenance, it’s important to respond to a tenant’s requests and providing excellent customer service, not only that but Los Angeles Property Managers can help long term tenants remain upbeat about their living conditions. In the case of a tenant deciding to leave, there is really no shortage of interested applicants waiting to catch the next vacancy.
In order to be able to deal with the rental shortage, Los Angeles approved an astonishing $7 billion in new construction funds over the past year, that is the most construction in L.A. in the last 30 years. Alone in 2015, Los Angeles Property Management saw 5,700 new rental units. These were the San Fernando Valley and downtown L.A. area.
With this new construction boom, it’s a win for landlords who happen to own new units, which can rent for a higher amount than a comparable renovated apartment. Landlords who have an older stock of apartments should plan to invest for property improvements, this will allow the units to attract renters. For Los Angeles Property Managers, the tricky is when you have to juggle scheduled improvements and unit vacancies and at the same time renting freshly renovated units in order to reduce the amount of vacancies.
These numbers are showing us that presently, it is an exciting time to be involved in Los Angeles Property Management or even being a landlord. A special attention to detail and customer service is the key to keeping long term renters gratified and attracting equally satisfied tenants to open units.
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