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.

Arizona Rental Market Update- Statewide Eviction Ban Extended Until October 31st

The latest news affecting the Arizona Rental Market is that Governor Ducey’s eviction ban was recently extended on July 22nd to October 31st, 2020.

Governor Ducey’s move to extend the eviction ban continues his effort to help Arizonians avoid eviction if they lost their jobs due to Coronavirus or contracted the virus and are unable to work.

Most housing advocates applauded the Governor’s move since a large portion of the money from the Cares Act to help people pay their rents and mortgages hasn’t been dispersed yet but the big thing that’s not being talked about is how the eviction ban in Arizona is affecting landlords.

Sadly, landlords in Arizona are feeling the same financial strain of evictions just like landlords in California and other states because the money that landlords depend on to cover their mortgages, property taxes, utilities, and other essential expenses is no longer there.

Landlords are often classified as being “heartless” by some housing advocates but the truth is that rental housing is a business, and with income coming in that business cannot survive.

More Landlords Are Challenging The Eviction Ban In Arizona

As the eviction ban continues, more landlords across Arizona are stepping up to challenge it although their efforts are being defeated in the courts.

A Phoenix landlord recently sued the Governor claiming that the Arizona Eviction Moratorium was unconstitutional because it prevented them from evicting a family from their rental property that owed more than $4,000 in unpaid rent.

The landlord’s lawsuit was quickly rejected by a Superior Court judge in Maricopa County but, it’s likely this won’t be the last lawsuit against the eviction moratorium that we will see in the coming weeks.

Thankfully money may be on the way for tenants in the Arizona Rental Market as negotiations are underway between Republicans and Democrats to release another economic stimulus. This would most likely pay the same amount of $1,200 per adult as last time, but those negotiations are still in the early stages so it’s likely that we won’t see that money go out until late August or early September.

Contact GoldenWest Management

For the latest news affecting the Arizona rental market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.