It's happening already in our area. It usually takes until mid to late July for property owners with unsold homes to realize they need to RENT their home when they move....this is known as the "shadow rental market".
For the last 2 years, those homeowners would call me directly - they by-passed their sales agent as an option for a temporary property manager/leasing agent. This year is different. Realtors are calling me FIRST and THEN referring their clients to me. Maybe its the $250 I pay for property referrals * however, I rather think it is the knowledge that the home will go back on the market within the next 2 years when our area real estate market rebounds and they want to maintain the relationship with their client.
Since my management portfolio is mostly high-end single family homes, many prospective renters who call me are getting smart and are asking if the rental home I am offering has recently been on the market for sale...they don't want trigger happy property owners putting THEIR home on the sales market next spring and tasking them with showings and staging their home while paying rent. For this reason, I don't take properties listed/offered for sale and lease simultaneously.
When scheduling a viewing appointment, if there is a FOR SALE sign in the yard, my experience is that rental prospects will not show for the appointment which wastes my time and energy....Additionally, my website requires photos and floor plans for listing continuity which takes time and energy to prepare and upload. Most rental prospects for area rental homes are asking for longer term leases - 2, sometimes 3 years. They are coming to UVa or other large area employers and don't plan to buy and don't want to move several times over the next 2 or 3 years.
This is another reason they are selecting homes rather than apartments or condos where they have no knowledge of their neighbors or management capabilities.
While a few areas of the country are experiencing lower rental rates - Las Vegas, California, areas of Texas and Florida....most areas of the country are actually experiencing increased rental rates as DEMAND for good rental homes has increased as people are electing to not purchase homes and elect the flexibility of leasing.
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
Central Virginia
LandlordWhisperer
View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans
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In my small town we now have an overabundance of higher end rentals which haven't sold. AS a result the prices fro these are coming down. We, also, don't take proeprties for lease which are for sale as well, as they just don't lease. Tenants don't want to show.