What is the future rental demand for your property on the Atlantic Seaboard?
Category Property news
What is the future rental demand for your property on the Atlantic Seaboard? 🔴
As a property owner, there is always the dilemma in choosing between renting or selling in any given market; but this decision has become more apparent in the current climate. Renting out your property can be one of the best ways to generate a steady monthly income and secure your financial future. However, the success of a profitable rental investment depends on several factors that should be carefully considered. If these factors aren't considered it could, unfortunately, be a pitfall for your investment and the property as a whole.
Owning a property within a location that offers high rental demand is top on the list of priorities. Rental demand is the competitiveness for rental properties in a particular area. It's the number of people that are looking for a property to rent in the area relative to the number of properties that are available.
Recently, there has been an increase in development along the Atlantic Seaboard, with inevitably more to come. With more apartment blocks and complexes popping up in the area, there is a natural increase in the supply of properties to rent. Justin Nortier, Senior Broker in the Atlantic Seaboard, comments that "in addition to the over-supply of newly built units onto the market, there is a further over-supply due to the current failing short-term rental market and on top of that, we have seen a long-term rental market which has experienced a significant downturn - one of the biggest knocks we've seen in the rental market, if not the biggest knock, in recent times. With that being said, we have seen many homeowners and investors looking to take small losses by selling their properties with the goal of recouping their investments through allocating capital to the various global asset classes that have proven robust in these interesting Covid times."
An ever-growing supply in rental properties provides potential tenants with a variety of options to choose from, therefore, lowering the demand for a specific property. With this there is greater competition for landlords to find tenants, the vacancy rate of rental properties will increase and landlords will be forced to lower their rents to attract tenants. With a decreased number of prospective tenants to screen and a dash of desperation, it becomes more difficult to find quality tenants who will cooperate with ease and take care of your property.
Should you be interested in learning more about the current and expected future property market conditions, we would strongly recommend contacting one of our highly trained brokers to explore this topic further and discuss your potential options.
Please click the button below and our Atlantic Seaboard specialist brokers will be in touch.
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Author: Greeff Christies International Real Estate
