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

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What will happen to the rental market due to COVID-19?

Many rental property owners and those contemplating entering the rental market are now anxious about what will happen to the rental market – rent values, rent collection, etc. The truth is, the current COVID-19 pandemic is uncharted territory for most real estate professionals. We are constantly hearing about fluctuations in the stock market, unemployment reports and stimulus benefits. We are also learning that evictions are on hold and late fees can’t be charged (at least here in Nevada).

But what will this ultimately mean for the real estate market? Specifically the rental market?

The measures being taken by government officials to put evictions on hold and not charge late fees clearly indicates that the goal is to maintain relative stability for folks. To be able to get through this pandemic with as as little interruption as possible. On the flip side, many mortgage companies are offering relief to homeowners who can’t make their mortgage payments rather than charging them late fees and initiating foreclosure proceedings. Stimulus benefits and supplemental funding of unemployment benefits are intended to carry folks through this period of time as well. It appears that the plan and hope is that once the pandemic passes and things begin to resume to the way they were previously the economy can rebound without having the added stress of an untold number of evictions and foreclosures, which would be detrimental to the real estate and rental market.

In the end, it really depends on how long the shut down will go on for. That will indicate what we can expect with rental and sale values and demand; whether or not folks will be able to maintain relative stability during this time and once things pick back up again resume their lives without too much loss and have jobs to get back to. In that case, we hope that the market will prove overall stable. However, if we have long term closures, lack of benefits or other unforeseeable repercussions, we may have a different market to prepare for.

It does appear, though, that the ultimate and overall goal right now is to keep people status quo to prevent major shifts in the real estate market so that once an economic rebound occurs, the market can continue to grow and thrive.

How does this affect tenants?

There are provisions for tenants who land on hard times and only able to pay partial rent, such as waived late fees and postponement of evictions, which were authorized by government officials.  Additionally, many homeowners are willing to assist tenants during this time.  However, rent forgiveness is not obligatory.  Assistance may come in the form of rent postponement.  This means that eventually the postponed rent will still be due.  Thus, if a tenant can afford rent because their job has not been affected or has the means to pay rent, it would be in the tenants best interest to continue making their rent payment.  Many homeowners have mortgages on their rental properties and so, a lack of rent means that they may have to resort to other means for payment or qualify for assistance from their mortgage company.  Additionally, many homeowners may have also lost their jobs.

Ultimately, predicting what exactly will happen is dependent on many factors. Unfortunately, at this time, it is hard to say with any certainty what will happen.  We hope that this situation will be temporary and everyone can find financial stability sooner than later and we can get back to having a thriving real estate market.

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How will the rental market fare during 2020?

2019 ended on a high note for real estate and the local economy in general. Here are some quick facts:

– Las Vegas unemployment rate last reported at 3.7% (bls.gov)

– Overwhelmingly positive economic growth through 2019

– Interest rates remained low throughout the year, with minor fluctuations

– Average home prices hovered around $300,000 throughout the year, reaching just under $315,000 toward the end of 2019.

– Inventory for resale and rental homes remains tight

With the economy moving in a positive direction and rental inventory remaining slim, we can expect the rental market to remain strong with moderate growth. The year 2020 is a year filled with exciting developments in Las Vegas but is not the end of the multi billion dollar investments that are planned and progressing. These investments and developments span beyond 2020. Thus, we can expect more growth in various economic sectors which will add strength to the already strong real estate market.

Contributed by Nicklin Property Management.

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Living in Downtown Las Vegas & The Strip – What to know!

Did you know that the Strip is different than downtown? Many mistaken the two as one and the same. However, there is a considerable difference. Downtown Las Vegas, which is north of the famous Las Vegas strip, is where what is known as Las Vegas began! The original hotels, such as The Plaza, Binion’s Horseshoe and California still make up the skyline. Our local government and court system is downtown. And of course, Fremont Street. Further south, from the Stratosphere to the Mandalay Bay is what is known as the Strip – the entertainment mecca that draws millions every year. While tourists may be familiar with the hotel, dining and entertainment options in both downtown and the Strip, what about living in those areas? Are there properties available?

To answer this simply – yes! Properties will vary considerably though. In the downtown area, older, vintage type housing will be available. Depending on the upkeep, those homes will need make over’s and updates. However, in more recent years, mid and high rise residential buildings have taken shape. For example, the Ogden and Soho lofts offer beautiful amenities, contemporary units and luxury features, such as rooftop pools and exercise facilities. Of course, these properties come at a premium and monthly expenses in the form of HOA dues are considerably higher than a single family home. However, for those interested in downtown living, options do exist.

The Strip has gained considerable attention as well within the last 20 years. While residential communities of homes exist within a relatively short drive to the strip, those wanting to live directly on it or within short walking distance have options. For example, Turnberry Towers, Panorama Towers, Skytower and others offer this experience.

The amenities are luxurious – for the right price. Views can be extraordinary, encompassing the Las Vegas skyline and mountain ranges surrounding the Las Vegas valley. The features of each individual unit offer a unique lifestyle. Of course, as go the features so goes the price. However, for those desiring that lifestyle, the strip delivers.

For those interested in investing in either downtown or the Strip, especially with the goal of generating a return on their money via renting their units, it is important to talk to a qualified property manager since rental income will vary. Nicklin can help. We have experience in both leasing and management of high rise units.

Downtown Las Vegas along with the Strip are continuing to attract many. New developments and multi billion dollar projects are underway, adding to the excitement of living in this prestigious area. This, along with the amenities that high rise buildings offer, continue to attract new homeowners and investors.

Contributed by Nicklin Property Management.

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How to avoid a rental scam!

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.

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Rents rising fast in Las Vegas as Summer approaches

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.

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Short Term vs. Long Term Rentals

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.

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The Difference Between Condo and Apartment Rents

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.

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