Las Vegas and Henderson Home, Condo, and Townhouse Rental Tips

The stories are out there. Tenants who found a rental listing online, met the “owner” at the property, gave them rent and a security deposit and then never heard from them again. Rather, they found themselves in the middle of eviction proceedings by a property manager or the real owner of the property. The stories are sad to see and hear about.

So, what can a tenant do to protect themselves? Here are 3 basic things:

1. Be weary of someone who says that your credit or rental history don’t matter and are willing to lease the home to you. A quick move in, without obtaining an application with your information, especially when it involves a privately owned home may be a sign that something isn’t right. Be weary! The individual you are working with may not be the owner or in any way connected to the rental of the property. Do your homework. Check the Clark County Assessors website to see who the owner of record is and verify the information.

2. Read the lease! Does it include pertinent information, such as the security deposit, monthly rent, where to pay rent, owners legal name as listed in official property records and in other ways comply with Nevada Statutes.

3. Try and use a Realtor. A Realtor will have access to the MLS where properties are listed through real estate agencies or property management companies. This way, you can have a more reputable way of searching for your future home.

Make home hunting more exciting by being safe and savvy.

Contributed by Nicklin Property Management.

Rent affordability has become a common topic in the news, showcasing the current state of the Las Vegas rental market.  A market that is in demand and appreciating steadily.  And the trend seems to be continuing.  Single family homes have seen some of the highest appreciation rates, with condos and town homes following.  It is not uncommon to see an average sized home leasing in today’s market for one dollar per square foot, with many communities that feature area and community amenities fetching a higher rate.  Additionally, homes that have been remodeled or upgraded are renting quickly for a premium.  Since 2018, Nicklin has observed an average of a 4-8% year-over-year rent appreciation, with most homes re-leasing for a higher rental rate than the year before or a rent increase put in place at lease renewal.  A strong Las Vegas economy with job growth is contributing to the demand and price appreciation.

Currently, in the Las Vegas valley, which includes North Las Vegas and Henderson, there are approximately 1675 homes, condos and town homes active and available on the market through the local MLS.  Out of those properties, only 146 are priced at $1000 / month or less. Properties for rent under $1500 / month (but more than $1000) amount to 415.  Properties priced over $1500 make up the majority amount of inventory at 1113.

These statistics clearly show the appreciation that has occurred in the rental market, with higher priced properties taking over.  As we head into summer, we can expect the rental market to continue this trend and for high demand to exist.

Follow next week’s blog as we discuss the new developments that are occurring in Las Vegas which are contributing to a strong economy.

For professional property management, contact us at 702-903-HOME.

Contributed by Nicklin Property Management.

Short term private rentals have become popular over the last few years, with sites such as Airbnb and Home Away. And with good reason. Being able to rent out a house or condo at a daily hotel rate seems lucrative. And with success stories circulating out there, more people have jumped on the bandwagon. So, how does this type of rental venture compare with simply leasing your house for the long term, such as one year or longer?

Long term rentals, such as leases for 12 months or longer, have been a popular route for many years and sought by many homeowners due to the stability of having a constant tenant for a longer period of time.

Short term rentals have come under scrutiny this past year. Recently, the Clark County Commission took steps to try and ban these short term rentals. So, of course, that would be one issue to contend with if you’ve thought about going that route. But why did the discussion about banning short term rentals even start? Simply put, the issues that came with them. The constant traffic in and out of a house in a residential neighborhood as guests came and left along with excessive noise levels.

Additionally, many owners have realized that even though the per day rental rate is lucrative, additional vacancy periods, maintenance and upkeep reduce the net income. Owner involvement is also significant to ensure the property is ready for each new guest. On the other hand, with a long term rental, while the daily rate may be less, the income is constant month after month and the turnover factor is significantly reduced, reducing the cost of maintenance and repairs. Longer term rentals typically have an in depth screening for potential tenants as well, in an effort to minimize the risk of unpaid rent or damages.

While each property owner must make their own decision, knowing what is involved in renting your property – whether for the short or long term – will allow you to make the best decision possible.

For professional property management, call Nicklin Property Management at 702-903-HOME or email Michelle Williams for a free rent estimate and proposal at mwilliams@nicklinpm.com.

As you drive around Las Vegas, its hard to miss all of the new apartment construction going on. Its also hard to miss the asking apartment rents! Over the last 5 years, apartments have seen significant rent increases, with many tenants paying over $1000 / month for an average apartment. More commonly, especially in newer apartment complexes that offer a relaxing pool, gym and other hotel style amenities, rents can start closer to the $1500 mark.

Many condo unit owners are excited to see this jump in rent prices, seeing it as an opportunity to capitalize on their investments. However, after doing some research, many realize that their condo, though in a gated community with a pool, gym and well maintained grounds, doesn’t quite fetch the same amount of rent. Rather, they might see their property leasing for as much as 25% less. So what makes the difference?

There’s a couple significant ones. First, as a homeowner, when leasing your property, you are typically requiring at least a one month security deposit. This is designed to protect you in cases of lost rent or damages. On the other hand, many apartment communities offer incentives – either waving the deposit, making it minimal or offering a bond through a 3rd party. The move in process becomes much easier and attractive.

Secondly, apartment communities typically have on site maintenance. Whatever issue there might be inside of an apartment can be addressed right away, typically at no cost to the tenant, even changing air filters on their behalf. On the other hand, when you rent a condo, there is usually a measure of responsibility placed on a tenant for completing basic repairs.

Those two incentives allow apartment communities to charge a higher rent. And it works, based on the fact that apartment occupancy is high right now in the valley. There is encouragement, though, for condo owners: rents have been going up consistently. Over the last 5 years, rents, on average, have appreciated 15-25%, putting more money in many owners pockets.

March 2018 – As the Las Vegas real estate market continues to make national news as one of the fastest appreciating markets in the country, it is noteworthy to discuss residential rental rates and what the future holds for landlords and tenants alike.

As of February 28, only 2031 homes were active and available on the Multiple Listing Service for all areas of Las Vegas, Henderson and North Las Vegas. This figure includes all different types of residential dwellings, including condominiums and town homes. This figure shows the limited availability of rental properties throughout the Las Vegas valley, creating a competitive market for tenants. This, in turn, is prompting landlords to raise rents. By how much?

Of the total amount of properties available, only 300 are priced at $1000 / month or less. The vast majority are condominiums. This figure in itself shows the very limited supply of lower priced properties which is causing affordability issues for many. 669 properties are priced between $1001 – $1500 / month. The remaining properties are priced over $1500 / month.

This shift over the last 3 years specifically has caught many renters by surprise. Landlords are raising rents with each lease renewal and available rentals have seen an average 15% appreciation over the last 2 years. Some areas of the valley have seen even higher appreciation rates.

Affordability is certainly on the mind of many. And it doesn’t seem the issue will go away. Both resale values and rental rates are expected to increase over the course of this year, with resale values appreciating at one of the fastest rates in the country. How this topic will be addressed is yet to be seen. One thing is certain: the affordable real estate market of 7 years ago is gone.

July 2017 – Its no secret that the Las Vegas sales market has seen positive month over month gains and a limited supply of available homes, putting buyers in a frenzy. As the population of the Las Vegas area grows yet supply of available homes remains limited, potential buyers are forced to rent. How is the rental market fairing?

Nicklin tracks the general rental market to see fluctuations – both our inventory of some 1300 properties and the general MLS market.

Here is the trend seen this year leading up to now:

~ Rental properties have been appreciating steadily – at a modest rate. Inventory is rather limited with approximately 2000 actively available condos, town homes and single family homes through the Las Vegas, Henderson, North Las Vegas and Boulder City area, including Summerlin and Green Valley.

~ Properties priced under $1000 per month are limited to approximately 300, the vast majority being apartments and condos.

~ The next tier of properties priced up to $1500 per month are limited to 750 throughout the valley. Homes priced at $1500 and above make up half of the available inventory available.

The average property, between 1300 sqft – 1800 sqft is currently priced between $1200 – $1500 / month on average, though a third of those are priced at over $1500.

While we may see some appreciation through the third quarter of 2017, as the year ends, we can expect the market to stabilize through the beginning of 2018.

April 2017 – The sales market has made news once again in Las Vegas – both with price appreciation and high demand. This is making it ever more challenging for first time home buyers and others to get into a place to call their own. Due to this buying frenzy, many will have to resort to renting. So, where is the rental market going?

Las Vegas has seen a resurgence in the rental market over the last few years. This has especially been seen since 2014, where year over year appreciation in rents has grown between 5-8% on average. In addition, with high demand existing for rentals, due to both an influx of new residents to the area and lack of supply, rents are continuing to progress upward. As of April 2017, approximately only 2000 properties were active on the rental market according to the Multiple Listing Service, which included Las Vegas, Henderson, and North Las Vegas. This small inventory for a city of 2.1 million is clearly showing a lack of supply.

As a result, rental rates are rising. As a matter of fact, out of the available inventory in April, only 300 properties were priced at $1000 / month or less. Just over 700 were priced between $1000-$1500 and the remaining 1000 were all priced above $1500. As this appreciation continues, renters will be feeling the pinch as well. For investors, this is good news. However, affordability will become a more prominent topic over the next few months and years. What factors will affect rents in the future?

The demand for housing will definitely play a role. This demand will be based on employment opportunities and desirability of the city, which is definitely moving forward. Las Vegas and the surrounding cities are attracting new corporations from a variety of backgrounds leading to many new commerical and industrial developments throughout the area. Major league sports are making their footprint as well, leading to a desirability to be around those. As this trend continues, we can expect the Las Vegas area to become even more desirable and as a result, more expensive.