This fall I am finding landlords perplexed with their financial situation. Owners don’t really know what to do with their property? Do they sell or continue renting. As everyone’s financial situation is different I still encourage owners to be positive and that DC is a great “bubble” for real estate. We seem to rise above other cities in the nation especially in pricing. This is probably due to the fact that DC is a very transient city. Most leases average 14-16 months with very little worry about finding a new tenant. There is always a demand for property but the supply levels vary per season. This summer I found myself working with a number of New York City tenants moving to DC. After working with them they do feel there is more value in Washington, DC in terms of square footage, but pricing not all that different if your coming from a trendy New York City neighborhood.
The fall rental market is typically the last push of the year for landlords to secure a tenant for the winter. It is typically made up of properties that have yet to sell during the spring and summer market. History tells me that a property owner is now frustrated either at their current agent, past agent, or just the fact the property is still sitting on the market for sale. Owners may have been reaching for a price that for now is unattainable. They discover a new idea to “get through” the winter. Renting. This is a great entry point for my services to guide your property through the steps of renting in DC.
With election being weeks away some owners I have spoken with are holding off to see who wins this battle for the White House. Personally I don’t believe it will make a huge difference in the short term for rentals, but we will see. The rental market has slowed from the summer months as it usually does. The weather plays the biggest role in the next weeks to come. If the weather stays mild the market will extend into the beginning of December. If DC gets hit early with cold temps and snow there is definitely a retraction of tenants looking to move. Typically most tenants are settled now and hibernating for the winter. My experience is that customers tend to be transferred early fall for their jobs and become new clients, and or tenants during the fall season.
Plan of Action: Most clients I speak with now are working with me to set themselves up for the early spring market. We are going over TOPA strategies as some have tenants in the property along with renovations for the property to increase rental income. Placing your best foot forward in the spring will allow the property to be seen first, and create a better rental price. Yes it’s not even the end of fall 2016 and I am already setting up clients for the spring of 2017. Part of my business is the lead time to get set up for marketing. Strategy and moving through a process creates successful returns on investment.
BCL Properties LLC looks forward to a successful winter for all landlords in Washington, DC and as always if your looking for a change in management, or new to rentals in DC we are always happy to help.