Ogden’s Rents are Rising
Published On: April 13, 2018 Posted by: Jeremy Peterson
While house prices have increased a solid 10%-15% for the past three years in a row, rents have been lagging behind. But, recently it appears that rents are starting to feel the pressure that house prices have been feeling for some time.
During the past several years, rents have only increased about 5% per year on average. Let’s keep in mind that lower quality units increased very little and the top quality units could justify bigger increases. Right now, though, it appears that rent pressures are affecting all units of every category.
We recently issued letters to several existing tenants whose leases are expiring at the end of May. Their rents are presently $575 for C+/B- grade 2-bed units in South Ogden. We indicated that rents would be increasing $50 to bring rents to $625. One of the tenants called us immediately to complain. During our discussion, the tenant related how there were better quality units in the neighborhood for less rent. We told her that if that were the case, she was welcome to end her lease and move. She quickly decided that our proposed increase was fair.
From a landlord’s perspective, this pattern of increases is welcome news. Increasing prices have put investment property into a disequilibrium where it hasn’t made sense to purchase income property. With rents trying to catch up to prices (NOTE: there is still a long way to go) this begins to put the market back into equilibrium.
So, as we begin the leasing season in earnest over the next two months, look for rent increases to be in the cards for many rental properties.
In the meantime, if you are needing superior property management in Weber or north Davis County, CONTACT US, and let’s discuss how we can make owning income property easy for you.