The real estate market is booming in 2022 — home prices have shown a steady increase, and property values are on the rise for most markets across the United States. To keep up with this trend, real estate investors and large property companies are focusing on building new luxury housing communities in popular areas.
As we all know, competition is fierce in this market right now. Landlords who aren’t willing to invest in their properties and today’s best management technologies might find themselves at a disadvantage.
In this article, we’re taking a look at some of the biggest real estate trends in 2022 for private landlords. By staying ahead of the curve, you can prepare for changes in the market and get the maximum return on your investment during today’s thriving conditions for homeowners.
Take Advantage of Digital Offerings
Although this transition was already on its way, the pandemic pushed landlords toward digital platforms like e-sign tools, online rent collection, and instant credit reporting. Tenants want these amenities because of the convenience and efficiency they provide, so make sure you’re offering them at your properties (if you aren’t already).
Offer Virtual Tours
While virtual tours have been around for quite some time, they’ve become increasingly popular over the last two years due to COVID-19 social distancing guidelines and restrictions. Because of this, it’s important that you offer virtual tours of your property so tenants can preview your unit safely from their homes.
Prior to offering a virtual tour, make sure that you’re providing potential tenants with enough information about the property and what is included in the unit before scheduling a virtual tour.
For example, you can include information about the neighborhood, interior finishes, flooring type, and square footage of each room so tenants know what they’re getting into before they schedule a virtual tour.
Prepare for Changes in Renter Demand
A post-covid real estate trend: People have learned that working from home is not only possible but preferable in many cases, so when they look for a rental now, they are looking for something different. They want the space to work in, and they want the amenities that make life comfortable — a laundry room, a gym, a place where they can feel safe and secure.
The value of a property is no longer determined by its location alone. Big cities offer access to an array of amenities and plenty of people, but those advantages are nearly irrelevant when you can’t access them (due to pandemic restrictions) or when you rarely go out to enjoy them.
People have found that they can do just as well — if not better — in smaller towns with more space to themselves.
Consider Flexible Leasing Options
As a landlord, you need to consider the current market when determining what kind of lease to offer.
While long-term leases allow landlords to plan ahead and budget out maintenance costs, they don’t give tenants flexibility in terms of length, which is exactly what many renters are looking for right now.
Flexible rental agreements may be necessary to meet the needs of your tenants, who are now facing a situation that’s anything but normal.
Offering a month-to-month lease agreement can give you more control over increasing rent while still giving your tenants the flexibility they need to adapt to the new normal. This type of rental agreement offers more protection and flexibility for all parties involved.
Offer Pet-Friendly Housing
One of the largest real estate trends we are seeing is offing pet-friendly housing. Many people have dogs or cats that are part of their family, and those pets are very important to them. When looking for an apartment or house to rent, people want a space where their pets will be welcomed as well.
As a landlord, you can offer pet-friendly housing by allowing tenants to have cats and dogs in the rental unit with a conditional pet deposit and monthly pet rent to offset the cost of possible repairs.
If you don’t want to allow dogs or cats but are open to other types of pets, you can still make your rental property more attractive by accepting small animals like fish and birds.
2022 Real Estate Trends for Private Landlords
To succeed in the world of private real estate today, you need to stay abreast of the real estate trends. You need to know what markets are hot right now and where to invest your capital.
By leaning into some of the trends that developed during the pandemic, you can offer attractive options that create interest in your property among potential tenants.