Rental Market Update – What Can Owners And Tenants Expect In January 2021?

With January 2021 fast approaching, most owners and tenants nationwide are looking forward to the new year wondering what’s going to come next.

In this article, we will provide you with a roundup of what owners and tenants can expect in 2021.

What’s Going To Affect Owners In 2021?

Now that the November elections have come and gone, it’s clear that January will bring a change to the Presidency in the United States, and Joe Biden will be our next President.

The big question is what changes can real estate owners expect when Biden’s Administration takes office?

Here’s what we know so far:

1031 Exchanges – During his campaign, Joe Biden went on record stating his intention to modify this program so that investors who earn over $400,000 per year would not be able to benefit from this program.

Even though 1031 Exchanges have been in existence since the 1920s, Biden’s team calculated that changing the rules would mean that it would bring in an estimated $775 billion over the next 10 years.

Tax Increases – As expected, another big change owners can expect under President Biden is tax increases on individuals earning more than $400,000 per year.

What Can Tenants Expect In 2021?

Eviction Ban – The number one issue on the minds of tenants in San Diego, Phoenix, and Arizona is evictions, as hundreds of thousands of renters across these states face the real threat of eviction.

In Arizona and Nevada, some evictions are already occurring, even though the CDC Eviction Ban is protecting certain renters until January 2021.

California’s eviction ban is in place until February 1st, 2021 but a tenant must be able to show proof of financial hardship and they will be required to pay 25% of their monthly rent.

In each state, landlords and tenants are being encouraged to negotiate, or come to mediation, to work out payment arrangements.

A good example of this can be seen in Nevada where the state has been encouraging landlords to negotiate with their tenants who are behind on their rent.

Unless a landlord forgives the bank rent, tenants are still required to pay up, and with roughly $1.7 billion owed in back rent across the country, it’s understandable that landlords are going to want to collect what’s owed them as soon as possible.

Rent Increases – 2020 has been a year marked by Covid-19, but despite what’s been happening, rent has increased in many areas.

San Diego – Rent has increased by 4% this year and the average rent for an apartment in SD is now $2,237 per month.

Phoenix – As more people have left rental property in California this year, for Arizona and Nevada, it’s not surprising that the average rent for an apartment in Phoenix has increased by 10% to $1,141 per month.

Las Vegas – Right now, you can rent an apartment in Vegas for $1,107 per month, a 4% year-over-year increase.

Contact GoldenWest Management

Are you thinking about hiring a new property manager?

Or are you considering hiring a property management company for the first time?

We offer property management services for Las Vegas, Phoenix, and Las Vegas that will save you the time, money, and hassle of property management.

To learn more about our ‘boutique style’ property management services, contact us today by calling (866) 545-5303 or connect with us online.

Nevada Eviction Moratorium Extended 45 Days

Nevada Governor Steve Sisolak announced on Monday 8/31 that the statewide eviction moratorium has been extended for another 45 days.

The move came just in time as the previous eviction moratorium was slated to expire today, September 1st, 2020, at 12:01 am.

About The 45 Day Extension

With the Governor’s eviction moratorium extension also comes an increase of $10 million dollars in rental assistance as well that will enable counties to pay out financial assistance to landlords, fund unemployment claims, and mediation programs.

During his press conference on Monday, Governor Sisolak also stated that tenants who have been affected by the Coronavirus Pandemic still had an obligation to pay their rents.

Hopeful That Landlords And Tenants Will Work Together

Like other Governors across the United States, Sisolak is hopeful that both landlords and tenants will come together to work out rental payment arrangements so that tenants who are struggling financially can pay their landlords some of the money that they owe them.

The new alternative dispute resolution will certainly help landlords and tenants agree on back rent that’s owed before landlords choose to start the eviction process.

Governor Sisolak also empowered Nevada’s Supreme Court to waive its 60-day requirement for creating new rules for dispute resolutions. This is expected to streamline the dispute resolution process in the court system, and that’s a good thing, because once Nevada’s eviction moratorium expires for good, mass evictions are expected in Nevada.

California Also Extends Their Eviction Moratorium

Lawmakers in the State of California also extended their eviction moratorium through January 2021.

This new eviction moratorium (AB 3088) doesn’t give tenants a free ride of 5 months without having to pay their rents, California tenants have to pay 25% of their rents during this period and sign a document which states that they have been hurt financially during the Coronavirus pandemic.

Is Extending Eviction Bans Like Kicking The Can?

Extending Nevada and California’s eviction bans has been called “kicking the can” by many people because lawmakers continue to push back evictions for a few months when in reality the problem just gets worse with each eviction ban extension.

Like tenants in Nevada, California renters still have to pay back rent that they owe their landlords dating back to the start of the Pandemic.

Will tenants in either state be able to pay their landlords the back rent that they owe them?

Are small, ‘mom and pop’ landlords who have houses for rent in either state going to be able to survive for another 30 days or more without collecting money owed for rent?

The answers to these questions will only be known with time.

As with any other property manager in San Diego or Nevada, we’re hopeful that local economies will improve and eviction cliffs can be avoided because with fall and winter fast approaching, nobody in the United States wants to see more people living on the streets.

Get Boutique-Style Property Management From GoldenWest Management

At GoldenWest Management we specialize in ‘boutique-style’ property management. This means that we provide personalized service for all of our tenants so that each tenant feels like they are our only tenant.

If you need property management, or you’re tired of your current property manager and want a change, contact us today by calling (866) 545-5303 or click here to connect with us online.