I love data. I love numbers. I love context. I love it all. I refer to myself as a data-geek and one of the most rewarding parts of my last career were data-nerd dates with faculty members who were curious.
As I’ve transitioned to real estate, I’ve found pockets of people with similar curiosity. They know that the growth in the economy is important and they believe that if they dig deeper they could figure out how it impacts their strategies. However, for the life of them they don’t have the time or the inclination to sit down and delve into it.
According to Berkadia report on Dallas-Fort Worth, “The enormous leasing activity [in 2018] is projected to drive occupancy up 50 basis points to 95.2%.”. In short this means that there will be more demand than supply. So, landlords who have vacancies can charge more for their supply; the market will support higher rents.
But, what does the trend mean for a real estate investor who owns single-family homes with long-term leases and tenants. Does this mean that she misses this opportunity? Well, it depends.
You could always increase rents. When you notify the tenants, explain the increase is the result of rising costs. If the tenants balk at the idea of a higher rent, then when they look at the supply they will see the higher rents for themselves. If you price it appropriately, staying will be more appealing than the hassle of packing and moving.
Make Moves Not Excuses 