San Diego is a boomtown for the adventurous property owner. The San Diego Union Tribune, the premier newspaper in San Diego has marked an inexorable rise in rents. It noted in 2014 that rents increased from $1,242 to $1,542 from 2004 to 2014, a remarkable 24 percent increase. Additionally, it predicted that average rent would rise to $1,830 a month by 2019. In 2016, the average rent was $1,618 a month. Currently, it is averaging around $1,743 a month for a one bedroom.
These blockbuster numbers point to one stark reality; San Diego is experiencing a sharp rise in rent prices that is surpassed only by the unpredictable San Francisco market. In response, developers are breaking ground on new towers and residential properties all over San Diego. Many experts believe these new developments will recalibrate the rental market. However, their view is imperfect.
Every market has its nuance and complexity. It is crucial that if you plan on entering the San Diego rental market, you do so with full knowledge and understanding these nuances. For instance, many experts believe that the sharp increase in rent prices is due to a shortage of housing. While partially true, the real story is a lack of diversification of supply.
Don’t Get Caught in the ‘Luxury Bubble’
There is fierce competition in San Diego among luxury apartments. Numerous experts will point to gleaming tower after tower as proof that San Diego is filling its housing shortage. Unfortunately, these experts overlook the simple fact that many of these apartments are ‘luxury’ and out of reach for many San Diegans.
Don’t get caught in the leasing trap that many inexperienced property owners find themselves in. A luxury unit is an excellent foundational real estate investment, but you should diversify as well. Owning properties at various lease rates ensures that you are accessing every potential point within the rental market.
Additionally, if you are breaking into the real estate market, you can’t go wrong with a luxury property as your first investment. But, the competition in the luxury market is fierce. Thus, it is crucial that you do everything you can to differentiate your property from the multitudes of other competitors.
The first place anyone looks when they are trying to find new lodging is the internet. Therefore, the more places your property is listed, the more people and potential tenants you will reach. A property management company can assist you in reaching those potential new residents by listing your property on as many high quality websites as possible, and not just leaving them on Craigslist and waiting for the perfect tenant to appear.
For instance, San Diego rental properties are frequently listed on Trulia, Zillow, and Craigslist. A San Diego property management company can leverage your online presence by mirroring your listing on multiple websites.
The more people who see your listing, the more applications you will receive, and the better your pool of potential candidates. You obviously don’t want to entrust your property to just anyone, therefore, the more people you can interview, the better your pool of potential tenants.
Professional Grade Property Photos
If the internet is the first place people look to find a rental unit, the photos of your rental property are the first place they judge your property. Your property needs professional grade photos to put its best face forward. Many people overlook entirely acceptable properties because the photos were too dark, dim, unfocused or unflattering.
There is no second chance to make a first impression. Thus, the pictures of your investment property need to be bright, composed, and inviting. A property management company is experienced at preparing professional listings designed to leverage your property’s best features. They’re experts in advertising single family homes and multi-family investment properties in a way that attracts the highest quality tenants.
Host Property Showings
Finally, the internet and photos are the best way to reel in potential leads, but a property showing can really seal the deal. As a property owner, knowing how to show a rental property is as much an art, as it is a science. Showing a property is a combination of preparing your rental property, planning the route to show it, and rehearsed remarks outlining the features and amenities in the property. If this location is a vacation rental, making sure that
A residential property management company is experienced at reviewing your property and coming up with a plan to show it in an efficient and effective manner. As part of a full-service property management package, a property management company can help you by cleaning your property, staging your rental property with attractive features, and outlining a walk-through plan.
A San Diego property management company can maximize your opportunities to generate revenue and build wealth. You don’t need to divine the nuance of the San Diego rental market on your own; an experienced property management company like PropertyADVANTAGE can assist you.