It should come as no surprise that as the real estate market has cooled, the rental market is becoming cut-throat, as reported in the Oregonian. The rental market is sounding more like last year’s real estate market. Come prepared or someone is going to beat you out.
Last year we had a so-so time renting two of our houses out. This year, I put one on Craigslist at about 9PM on a Saturday night. After five responses in the first hour, I took it off the site. It reminds me of when I was competing for a rental in San Francisco about six years ago. Arrived to meet the landlord with all three of our credit reports in hand.
Renters need landlords, landlords need renters and they both need a property to make the relationship work. Landlords are having a hard time “cash flowing” with a new purchase because of rapid appreciation that real estate experienced without the same happening to rents. No doubt that, at least today, a renter can get a nicer place for less cash-out-of-pocket monthly that they can buy. Even if there is a correction in real estate prices, it isn’t going to happen overnight and rents may finally start to reflect that which will in turn make properties look better on paper for the landlord.