Phoenix Rental Market Is On Fire During Covid-19

2020 has been a year of changes for the rental market. Due to the Pandemic, a percentage of businesses have been forced to close, thrusting many people into a state of uncertainty.

Thanks to recent data from cnbc.com, we know that the Phoenix, Arizona rental market has continued to enjoy steady growth during Covid-19.

As of August 2020, the city is seeing rent growth of 6% year-over-year, while Tucson’s rent growth is currently at 3.5% year over year.

This is awesome news for both owners and residential property managers in Phoenix. Nationwide single-family rents grew by just 1.7%, the slowest rent growth that we’ve seen in close to 10 years. Most economic analysts attribute the decline in rent growth to the Covid-19 Pandemic.

San Diego Rental Market Continues To Enjoy Steady Growth

In America’s Finest City, San Diego, rental properties have enjoyed a 4% increase year-over-year.40% of apartments in the area that can be rented for under $2,000 per month.

Although San Diego still has a hot rental market despite the Pandemic, the question is: how long will it last?

With the Statewide eviction ban set to expire on September 30th and the renewal of the Federal eviction ban still in a state of uncertainty, most owners and property managers are anticipating that September will be a big month for the rental market in San Diego.

Rents could likely drop by as much as 10% by the end of 2020 due to the economic recession and economic fallout from Covid-19.

We could also see more houses for rent in San Diego during the fall. Some landlords may be eager to reduce rents to attract tenants, but this is risky for individuals who are not used to properly screening their applicants  

Las Vegas Rental Market Stays Strong

Covid-19 hit the Las Vegas rental market hard when most businesses in the city were shut down in March but they started to reopen in June. Since then, life in Vegas is starting to adapt to the ‘new normal’.

As of August 2020, the rental market remains strong with an average 894 square foot apartment renting for $1,107 per month. This is a 5% increase year-over-year.

(Data source – Rentcafe.com)

As with San Diego, Phoenix, and other rental markets across the United States, Nevada faces an eviction crisis when their eviction moratorium expires on September 1st.

The passage of the Nevada alternative dispute resolution bill combined with another possible economic stimulus check in September means Las Vegas may be able to avoid the crisis.

Local property management companies will continue to play a key role in rental markets across the United States. We stay on top of the latest market trends while ensuring ROI for our owner clients.

GoldenWest Management – Your Source For Professional Property Management

At GoldenWest Management, we specialize in San Diego, Phoenix, and Las Vegas Property Management.

We are one of the top property management companies in three rental markets because we take pride in saving owners the time, money, and hassle of managing their rental properties.

To learn more about the property management services we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.

What Are Landlords and Tenants Supposed to Do About Rent?

In the last 30 days, coronavirus has been responsible for changing the economy and rental market across the United States because most people who were renting before coronavirus, and working steadily, are now laid off and may be unable to pay their rents.

This is a problem that every city in the United States is facing right now, especially in cities like Las Vegas that rely heavily on the tourism industry.

Even though landlords and tenants may face difficult times ahead, some solutions can be utilized to help them make it through the coming months.

We’re All in This Together

During a recent interview, HUD Chairman Dr. Ben Carson said that both landlords and tenants are going to have to work together to make it through the coming months as coronavirus has affected everyone in some way.

What does this mean? Tenants should contact their landlords immediately if they are unable to pay their rent and work out a payment plan so that they can pay the landlord some money now, while deferring the remaining balance on their rent over 12 months.

Every Situation Will Be Different

Every tenant’s situation is going to be unique following coronavirus, there may be some tenants who will be able to go back to work next month while others may not be able to work for another 6 months.

Landlords should be willing to work with their tenants to come up with the best solution for them that will help them to make it through the coming months.

What Should Owners Do with No Revenue Coming In?

Owners should contact their lenders immediately if they are unable to pay their April mortgage to see if they qualify for a forbearance, or they should pursue one of the other ways to build cash reserves that we mentioned in our previous blog post.

Many people are projecting that Coronavirus could last until June so every owner must take action now and be willing to work with their tenants while they focus on building cash reserves so they can survive the coming months.

Rental Market Projections for The Next 60-90 Days

At GoldenWest Management we project that 20% to 30% of tenants will not be able to pay all or a portion of their rent while there may be tenants who are unable to pay rent and will want to turn in their keys to their landlords.

April and May are going to be tough months for owners and tenants for sure, we hope that coronavirus will be gone by June and the economy will be back on track but that may not be the case if the virus lasts into the summer months.

We encourage both owners and tenants to stay on top of what’s happening by following our blog and other trustworthy news sources like local city news or information from organizations like the Department of Housing and Urban Development.

For questions about what’s happening in the rental market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or connect with us online.