Nicklin Property Management Company Updates

Many miniature wooden houses. Real estate concept. Buying and selling housing. Rent. Mortgage rates. Market Analytics. Demand for housing. Rising and falling home prices. Population

Many miniature wooden houses. Real estate concept. Buying and selling housing. Rent. Mortgage rates. Market Analytics. Demand for housing. Rising and falling home prices.

As we move further into 2024, the rental market continues to evolve, influenced by a variety of economic factors, technological advancements, and shifting societal norms. Understanding these trends is crucial for tenants, landlords, real estate professionals, and policymakers. Here’s a look at some key changes expected in the rental market this year.

1. Increased Demand for Flexible Housing

The trend towards remote work, which gained significant traction during the pandemic, continues to influence housing preferences. More people are seeking flexible living arrangements that cater to a work-from-home lifestyle. This includes a higher demand for rentals with home offices or dedicated workspaces and amenities like high-speed internet. As a result, properties that offer these features are likely to see higher demand.

2. Rise of Smart Home Features in Rentals

Technology integration into rental properties is not just a perk anymore; it’s becoming a standard that many tenants expect. Smart home features like programmable thermostats, smart locks, and energy-efficient appliances attract tenants who are conscious of both security and sustainability. Landlords who invest in these technologies may find a competitive edge in attracting tech-savvy renters.

3. Urban vs. Suburban Shift

While the early 2020s saw a significant migration from cities to suburbs due to the pandemic, there’s an anticipated balancing act in 2024. With many companies implementing hybrid work policies, urban areas might regain some of their lost appeal due to their proximity to offices, entertainment, and cultural amenities. However, the desire for more space and a quieter environment will continue to keep suburban rental markets buoyant.

4. Growth of Green Buildings and Sustainable Practices

Environmental concerns are increasingly influencing renters’ decisions. Properties that demonstrate a commitment to sustainability through green building certifications (like LEED), renewable energy sources, and efficient waste management systems are becoming more popular. This shift not only impacts renter choices but also encourages landlords and developers to consider more eco-friendly practices in construction and renovation.

5. Changes in Rental Legislation

As the rental landscape changes, so does the regulatory environment. Many regions are considering or have already implemented regulations that aim to protect renters. These include rent controls, stricter eviction laws, and regulations aimed at improving rental affordability. Staying informed about these changes is essential for everyone in the rental market.

6. Evolving Tenant Demographics

The demographics of renters are evolving. Millennials continue to make up a large portion of the market, but Gen Z is starting to enter in full force. These younger renters are digital natives who value online reviews, virtual tours, and digital communication for managing their rental agreements. Landlords and property managers will need to adapt to these preferences to attract and retain tenants.

7. Impact of Economic Conditions

Economic factors such as inflation, interest rates, and employment rates play a crucial role in the rental market. If economic conditions tighten, we might see a higher demand for rental properties as fewer people can afford to buy homes. Conversely, if the economy improves significantly, renters might start looking into homeownership, affecting demand in the rental market.

8. Adoption of AI and Machine Learning

The use of artificial intelligence and machine learning in the rental market is becoming more prevalent. These technologies can streamline operations, enhance tenant screening processes, improve property management, and personalize the rental experience. Landlords and property managers who leverage these tools can improve efficiency and tenant satisfaction.

Conclusion

The rental market in 2024 is shaped by a mix of technological, economic, and social factors. For renters, it’s about finding a home that fits their lifestyle, whether that means smart home features, flexible living spaces, or green buildings. For landlords and investors, staying ahead of these trends will be key to maximizing occupancy rates and returns. Keeping an eye on legislative changes and technological advancements will ensure that stakeholders can navigate the evolving landscape successfully. As always, understanding these trends will enable better decision-making and strategic planning in the ever-changing world of real estate.

baseball stadium under roof view with fans

As the Oakland A’s have seemingly decided to relocate over the next few years to Las Vegas, building a state of the art ballpark with it, it’s no secret that such a venture will bring an economic boom to the valley. New employment opportunities and new business growth are sure to accompany such a large investment in the local economy. Additionally, long term, visitors will need to be accommodated and services to support that will need to be offered, which Vegas always delivers on.

In the real estate sector, more visitors means more financial influx into the valley. Commercial real estate around the ballpark itself will no doubt be prized and grow in value, as happened when the Raiders moved into town. More individuals will likely also want to capitalize on the additional tourism with short term rentals or Airbnb’s.

Las Vegas is turning into a professional sports capital with this recent move. Such investments only fuel more investments, since it builds trust for other enterprises who perhaps were thinking of coming to Las Vegas or expanding into the valley. Many businesses get cue’s from each other.

As a result, growth continues and real estate becomes sought after, leading to an increase in values. Already the Las Vegas valley has seen tremendous increases and prices are at all time high’s, even with recent adjustments due to rising interest rates. So, if your thinking of purchasing a property in Las Vegas as an investment or future retirement home, Las Vegas will have plenty to offer in the world of sports. And if you need a professional manager to take care of it for you, choose Nicklin Property Management.

Beautiful New Furnished Living Room in New Luxury Home

Furnished living Room in Luxury Home

It may go without saying, but a number of homeowners and investors do not have any type of insurance for their rental property. Of course, if you carry a mortgage, your lender will require a landlord or fire policy. This way, if a water event, fire or theft occur at the property, they know it can be remedied since the property is the guarantor against the loan. However, if the property has no mortgage, it is up to each homeowner to obtain insurance coverage. And some either choose not to or are not aware they have to obtain it. Why obtain a landlord or fire policy?

First, in the event of an unexpected major event, such as water damage, fire or theft, insurance can cover costly repairs or losses for a reasonable deductible and yearly premium. Most insurance deductibles range between $500 – $1500. A significant water or fire event can cost thousands of dollars to remedy or in the case of a total loss, hundreds of thousands of dollars. With no insurance, the homeowner has to flip the whole bill rather than just the deductible. Protection against theft is also an important feature of insurance coverage. Beyond items that may be stolen from the property, such as costly appliances, the damage incurred to access the property can also be expensive. Among these are broken windows, doors, door frames and casings. The total cost of a theft can easily add up into the thousands of dollars.

Additionally, all rental properties carry liability risk. Insurance, on the other hand, protects an owner in that it offers liability coverage in the event a circumstance arises where the owner is found liable. This can include injury or death to tenants or visitors while on the property. Without insurance, financial liability will rest solely on the homeowner.

How does tenants renters insurance play a role? Renters insurance is designed to cover the tenants personal items, displacement and liabilities. It offers a different type of coverage than homeowners insurance. Thus, it does not offer protection to an owner for property damage or owner liabilities.

Yes, insurance is designed to protect an owner from incurring financial liability on their own. It is designed to transfer the risks that exist when owning personal and rental property. Risks can come from many sources. Being well protected is key to managing risk the right way.

Eviction Notice Form

Well, here we go again. Another eviction moratorium. Many landlord’s we’re finally breathing a sigh of relief when it looked like things we’re going back to normal at the end of July. And for 2 days, things we’re technically back to normal. Until August 3. That’s when the CDC enacted a new eviction moratorium, that this time goes through October 3, 2021. For those rental property owners who have been relying on mortgage forbearance because they lost rent income – income they relied on – this was unexpected.

To clarify, we’re not here to discuss the reasons for the moratorium, the motivation or why it was passed. We’re here to explain how this latest moratorium works and what you can do if you own a rental property that has had its income, in essence, frozen. While what we say is not going to be a automatic fix, it can be financial damage control.

So, how does this latest moratorium work?

It applies to any county in the Unites States that doesn’t already have a moratorium in place that meets or exceeds the CDC one, like a state or county moratorium, and where the county has a substantial or high COVID transmission rate. Where does your county fall? Here’s the link from the CDC that shows transmission rates: https://covid.cdc.gov/covid-data-tracker/#county-view

If your in Clark County Nevada, Las Vegas, Henderson, North Las Vegas, Boulder City, which is where we’re at, well, your in a high transmission rate location and subject to the CDC moratorium.
A tenant, in order to be covered by the moratorium, has to meet some qualifications:

  • They have had to try and obtain rental assistance
  • They can’t make more than $99,000 in 2020 or if married and filing jointly, more than $198,000.
  • They cant make their rent payment due to loss of job, reduction in hours or have medical bills
  • They are trying to make partial rent payments to the best of their ability
  • They would become homeless if evicted

The moratorium covers a lot of situations.

Now of course, a tenant does have to complete a specific declaration via a CDC form to qualify. And the landlord can take steps to validate the truthfulness of it, to make sure their hardship is legitimate and meets the standard of the CDC moratorium. The moratorium does cover a broad spectrum.

So, say as a landlord, you get the declaration form from a tenant or maybe they already qualified previously under the moratorium we had between March 2020 until this past July and handed you the CDC declaration (which that is still in effect). What can you do?

Work on mitigating your losses. The eviction moratorium is in effect no matter how you look at things. Though tensions may run high, work hard to maintain a positive relationship with your tenant. This will help in preserving your property. A soured relationship, or one that turns into distrust, is never in the best interest of your property. It creates tension and hard feelings. Focus on the end result, one day getting your property back in hopefully, reasonably good condition. A positive relationship will go a long way in that.

And focus in on the options you have for mortgage assistance, beyond calling your bank for mortgage forbearance. Or simply throwing in the towel on your property. Now, this may take work and some research to find available resources in your state or county to help compensate you for lost rent. But it is possible and we’ve seen it first hand, owners getting checks for thousands of dollars for unpaid rent. Look up your states and counties housing department sites and see what available resources there are, what applications may need to be completed. Work to mitigate your losses as much as possible. In many cases, money has been set aside to offer help. It’s just a matter of finding it, applying for it and then collecting it.

So, while this is all far from the ideal and not what investors and rental property owners signed up for, it’s the new, temporary norm. And so, we’ve all had to change and adjust to the unexpected. If you approach it the right way, take the right steps, be proactive, get the help available, you might be surprised at how things work out for you.

Suburban Las Vegas neighborhood

If your looking at today’s real estate market and want to make an investment, you’ll be joining countless other real estate investors looking to get their hands on a slice of Las Vegas real estate. Though prices are at an all time high, so are rents. As a matter of fact, according to Realtor.com, rents rose 16% from one year ago. Many investors are starting to see significant returns, especially if they purchased a rental property a few years ago.
Nonetheless, many investors are in the market now, sifting through the tight inventory, looking for that gold nugget. As with any investment though, there are a number of factors that will determine how profitable a rental property can be. Or how much expense might be associated with it. So, what factors should you consider?

Age of Property
Everyone loves the smell of a brand new car. But not everyone can always flip the bill on one. And so the used car market is a popular one. The same goes with housing. Most investors would prefer brand new housing – not because of the new house smell necessarily, but because everything is, well, brand new. All major components of the house are brand new and should have a significant life expectancy, minimizing expenses for the first few years of ownership. However, brand new homes are in high demand and typically priced higher than a resale home – though that gap has closed some. The higher price keeps many investors from buying brand new. And so, the resale market is a popular one. When looking at resale properties, what should you keep in mind? Here are a few points:

  1. Are major components, such as appliances, HVAC or hot water heater nearing the end of their life expectancy? If so, keep in mind that those may fail and need replacement. Prepare for those expenses.
  2. Is the home generally older, perhaps 30 years or more? Keep in mind that certain items may be needing replacement, such as the roof. The house may need some remodeling. Repairs may be common place. Are you prepared to allocate a budget for those?

Property Type

Las Vegas has an abundance of housing. There are single family homes, condominiums, town homes, mid and high rise units and multi family buildings. Have you decided what you want to own? Perhaps your budget will determine what you will be considering. For example, the median price of a single family home is higher than that of a condominium in Las Vegas. However, what other factors should you consider?

  1. Many communities have homeowners associations. Each month, quarter or annually, they assess fees for maintaining a community. These fees can vary, depending on the community amenities. Are you prepared to absorb those?
  2. Back to HOA’s on this point. Keep in mind that condominiums and town homes typically have HOA’s to maintain the community pool, park and perhaps gated entry. Monthly fees are used to cover that expense. However, many times those fees also cover the insurance necessary for those common areas as well as the exterior of the building, roof and some components of the building. As a result, homeowners insurance may cost less.
  3. Single family properties typically need insurance for the entire dwelling and property. As a result, those costs can be higher than that of a condo or town home. On the other hand, you might find that the HOA dues are lower.

When all is said and done

In the end, you have to do a side by side comparison to see what the constant, ongoing costs will add up to. This, coupled with potential repairs, will prepare you for owning a rental property. Of course, researching what the potential rent for a property will be is necessary as well. A good property manager can be an invaluable asset in this process. This way, you can be a well prepared, savvy investor who has done their homework and knows exactly what kind of a property you are looking for.

While most homeowner’s are primarily concerned with obtaining Homeowner’s/Landlord insurance, covering the property, liabilities and damages from unexpected malfunctions and disasters, some fail to keep up with their tenants renter’s insurance policy, making sure it’s current and active. While it is highly important to maintain homeowner’s insurance (or called a Landlord / Fire policy if property is a rental), what’s the advantage of requiring tenants to carry a renters policy?

Tenant Benefits

First, there are significant benefits to a tenant! For example, should a fire or water event occur within the  property, the homeowner’s insurance will typically cover the damages to the structure itself. However, many times it will not cover the tenants personal belongings and furniture. Homeowners insurance may also not cover injuries that occur, exposing a tenant to liability.

On the other hand, renters insurance is designed to cover personal property, just in case of the unexpected – a theft, fire, water damage, etc. If someone gets hurt inside the property, renters insurance can offer a measure of protection, offering liability coverage. Other covered items can include: Coverage of a tenants personal property in the event of a windstorm, frozen pipes (that eventually leak and create a major water event), vandalism or a vehicle impact!

If a tenant is temporarily displaced from the property due to these items, renters insurance can cover the cost of alternate living arrangements.

Finally, renters insurance is typically inexpensive to obtain for a tenant and can potentially save thousands of dollars in the event of an unexpected situation.

As a Landlord, requiring renters insurance adds a measure of protection and can help a tenant with unforeseen costs. To ensure that a renters policy is obtained and maintained, you can request to be added as an additional interest. That way, you are updated by a insurance company when a change takes place.

A room with purple door and purple wall

If your circumstances changed and you have to move from your home but don’t want to sell it, you will most likely look to rent it. As you move your furniture and effects from the home, you’ll probably notice years of wear showing up along with the personal touches you made that made this house your home. So, what should you do – and what not – as you prepare the home for a prospective tenant?

First, you have to accept that not everyone will appreciate the personal touch you had. The various painted colors throughout the home or custom drapes or curtains, while they matched your style, may not be embraced by a potential tenant. It can actually detract from the home renting within a reasonable amount of time. So, what should you do?

For walls painted in non neutral colors or earth tones, it may be in your best interest to repaint. That bright pink or purple room can throw someone off. Neutral wall colors, on the other hand, tend to match nearly all furniture styles and personal tastes. Even some well chosen earth tones can do well. So, as much as you probably don’t want to paint the house, it will go a long way in getting it rented.

Second, invest in getting your carpets professionally shampooed. While you may decide to do it yourself, a professional company with professional equipment will leave the carpets looking great and smelling fresh. Their equipment can pull dirt that’s deep in the carpet fibers. They might also be able to apply enzymes for any pet damage. Of course, find a reputable company or get a referral for one. It’s worth the effort!

Third, make sure your home is nice and clean. Cabinet interiors, appliances, baseboards and fan blades are all part of getting the home prepped for rent. Also, be sure to check the bathrooms to make sure the toilets and showers are thoroughly cleaned. If in doubt, ask yourself: Would I be happy moving into the home in the condition it’s in?

Why is prepping a property for rent so important? Because it will affect how quickly the home will rent for and how much rent you might get. Even more important, it will set the standard for the tenant. So, never view your rental property as “just another rental.” View it as a successful investment and take the steps to make that happen!