Tag: Rental

Portland Rental Market Update March 2024

Posted on by Coty Thurman

Find out what’s happening in the Portland rental market during the first quarter of 2024.

Hi, I’m Coty Thurman, licensed Oregon Broker and President of Living Room Property Management. I’m here to tell you what you need to know about Portland’s rental market for March 2024.

The Tale Of Two Cities

If you’ve been keeping an eye on Portland Rentals, you’ve probably noticed quite the rollercoaster ride lately. Much like the real estate sales market, Portland’s rental scene is a tale of two cities. Some homes fly off the shelves within days, while others take weeks to get scooped up. Properties boasting yards, walkability, and pet-friendly policies continue to steal the show, but only if they’re priced just right.

In the latter half of 2023, the rental market served up a buffet of options for renters on the hunt. Homes lounged on the market for 3-5 months- until the January frenzy hit. Even the great ice storm of 2024 couldn’t chill the enthusiasm, with Living Room welcoming in 2 and a half times more renters than we did in January of 2023.

We were not alone. ShowMojo, our trusty tool for scheduling rental tours, reveals that nationally, home rentals sat on the market for 43 days, that’s the longest streak in over 6 years.

Rent Drops & Concessions

During this slow time, single-family landlords borrowed a page from the apartment diaries and began offering concessions and reduced rates to make these vacant rentals more attractive to the few renters who were out searching.

At Living Room Property Management, we saw rents drop by an average of 7%, mirroring national trends which were led by Idaho, Washington and Oregon metro markets. This time around, it’s not new laws driving the market shift, but good old-fashioned supply and demand. Folks were simply not moving.

Bounce Back

Was it a glitch in the system or an extended case of seasonal lulls? Our crystal ball tells us the rental market is beginning to bounce back. By February 2024, inventory was already moving much faster. 22 days faster as a matter of fact and with this increase in speed rent prices are stabilizing.

The pressure to lower rents is easing up as more mom & pop investors cash out and single-family rental inventory dwindles.

With multifamily construction slowing down, and population GROWTH predicted for the first time in two years, the forecast hints at a return to the upward trend in rental prices.

Leverage The Opportunity

For existing homeowners who have been looking to move, this is an incredible opportunity to leverage the low interest rate of your existing starter home to make monthly cash flow and climb the property ladder to your next home.

Give the Living Room Property Management team a call for A rental assessment and let us help turn your starter digs into a savvy investment.

By renting your home rather than selling it, you help create more rental inventory, which in turn helps balance the market. And a balanced market benefits everyone—landlords and tenants alike!

Make A Move

If you’re ready to make a move, call us today, we’d love to help you find your next living room.

 

Airbnb to Just 5 People per Year

Posted on by Bobby Curtis

In 2010 I did a short-term work assignment in Switzerland with the company I was working for at the time. I lived and worked there for about five months. For someone like myself who loves to travel, it was ideal. I temporarily left Indianapolis, where I lived at the time, packed a few bags, and rented a fully furnished flat in a walkable area of Geneva. I was walkable to downtown, Lake Geneva, and the train station where I took a short train to work.

The furnished apartment was a little like corporate housing. Inside it was fairly basic. They provided all of the essentials, but nothing stood out as exceptional about the place itself. Today, corporate housing looks different, and has expanded to more people. They are better known as midterm rentals, and have platforms like Airbnb, VRBO, and Furnished Finder. Because of that it’s easier for home owners to rent their own properties out for a month or longer. Plus, these places tend to have much more style and character. These property owners are enchanting their guests to come stay at their place for a few months with their Pinterest-quality posts.

More People Working From Home

With the pandemic, came many people working from home for the first time ever. For some that meant all-day zoom meetings, kids and dogs hijacking calls, and not enough in person socialization. Some were eager to get back to the office. While others thrived with the work flexibility and getting more accomplished in their own working environment, wherever that happened to be. As most of us realize now, many have been called back to the office, but just how many haven’t been?

Mckinsey and Company, one of the largest global management consulting firms, published a study in June 2022 based on a survey of 25,000 Americans in the Spring 2022. Respondents worked in all kinds of jobs, in every part of the country and sector of the economy, including traditionally labeled “blue collar” jobs that might be expected to demand on-site labor as well as “white collar” professions, and found that 35% of job holders could work from home fulltime. You can read the full article here.

Flexible Work Life – Work From Anywhere

With that new found knowledge, several people are moving or moving temporarily, and staying in a midterm rental. A friend of mine working for Nike moved to Mexico just for fun when she found out she didn’t have to return to the corporate office in Beaverton. I had clients from Durango, CO, this year who work for Tesla, who were able to move parttime to Portland, close to their daughter and new grandchild because of their new work flexibility. Interestingly, I met these clients because they found my own midterm rental online last summer, and rented it for a couple of months while they were exploring Portland.

The Midterm Rental Benefit to the Homeowner

In 2020 I decided to renovate side by side townhouses, furnish them, and rent them out for month or longer stays. Since that time, it has been rented about 95% of the time it’s been available. There are many advantages to midterm rentals. Less turn over, and fewer guests to coordinate is one of the biggest ones. But, it can also be available for personal or friend/family use, and there are some good tax advantages that you can talk with your accountant about.

That first year, I had just 5 guests ranging from one to five months, and was able to block out time for personal use if I wanted. Providing a place in a great area of NE Portland, the Alberta Arts area, these townhouses have attracted not just people who can work from home or another location; but those moving to Portland who need short term housing while they look for something permanent, locals renovating their current home, even students who are able to study remotely and traveling healthcare professionals.

As an investor, myself, I stay on top of what is happening in real estate. From house flipping to long term rentals, to short and now midterm rentals. In my opinion, this  newer type of investment strategy is in the beginning stages of taking off.

To see more on the side by side townhouses I remodeled, and now rent as midterm rentals, check it out here.

Investing in Dreams: A North Portland Love Story

Posted on by Gabrielle Enfield

Hi Readers!

Today’s story is one that’s from North Portland, and involves my longtime friends and savvy investors Tim and Elizabeth. 15 years ago, they were getting ready to move back to Portland from San Francisco. They knew then that Kenton is a terrific community to raise a family, and that investing in that area would pay off in the long run. They purchased a “skinny” home, new construction, and planned to live in it for a while, then leverage the property as a rental as their family grew.

That’s exactly how their plan played out…

They called it home while they needed it, and then the house was able to generate enough income as a rental to enable them to build a real estate portfolio. Smart. Investing in Real Estate, even in the time of COVID, is a good idea. Homes continue to hold appreciated value in the greater Portland area. HERE is a good visual you can reference to get an understanding. If you’re curious to learn more, please reach out, I can help explain the numbers.

When Tim and Elizabeth were ready to sell, we knew we had to lean into great staging, photography, and online resources to make it easy for people to get a feel for the home. Check! Three days later, they were pending, after reviewing multiple offers.

Here’s where the love story comes in. See, for Tim and Elizabeth, it wasn’t just about the highest offer for the home they were selling. They took the time to read every buyer’s letter who submitted one, and ended up deciding to go with a buyer whose story reminded them a little of themselves. They were early in their relationship. Loved North Portland. Active in their communities. Wanted to start a family. Had a dog. Why do I bring this up? Because as a buyer you should know that a seller’s motivation – even in this market – isn’t always going to be about dollar signs. Take the opportunity to leverage your story. Explain your why. And if you need help crafting that… I would be happy to put my  journalist hat back on to help you tell it in a way that will resonate and get your offer accepted.

Til then, high fives,