The pandemic impacted the way people make decisions. For those who lost their jobs, many of them have decided to go back to their parent’s homes. This is since they can no longer afford to pay their rent. But for the rest of the renters, many are now looking for new homes to rent. They no longer want to stay in multi-family homes in densely populated areas.
The Shift to Single-family Rentals
People know how their chances of catching the virus increase in areas where shared spaces are common. With the shelter in place rules, most renters are craving for more separate space and freedom. They no longer want to stay in their cramped apartments and share communal spaces. ;
This led to an increase in demand for single-family homes for rent. During the spring and summer, the demand and rental prices slowed down. But a few months in, the demand surged and supplies declined in a snap.
Renters now want single-family homes with more rooms and a yard. Aside from the health and safety concerns, one reason for the switch in special demand is the increased number of remote workers. As the nature of work changes, so does the change in workplaces.
To reduce the chances of spreading the virus in workplaces, employers transitioned their teams to remote work. Studies show that remote work trends will remain even post-pandemic. This meant many people are demanding single-family rentals where they can set up a home office.
They also want more outdoor space since going out exposes them to the virus. To enjoy nature and still enjoy some level of outdoor activities, having a sizeable yard became a desirable home feature. Most renters want a space in their yard where they can do gardening, swimming, or simply a deck or patio where they can chill in the afternoon.
What It Means for Real Estate Investors and Homeowners
With the increase in demand and rental prices for single-family rentals, real estate investors and homeowners to numerous single-family homes can take this opportunity to boost their income. But before you even market your property, know that it is your duty to ensure the safety of your tenants. It starts with making sure the building is up to standards with state and federal laws.
One important step you should not skip is an electrical installation condition report or EICR test. This will help you check if your building confirms with the expected levels of electrical safety standards. A simple visual electrical inspection is never enough to make sure the electrical system won’t cause shock, injury, damage, or even fire in the future.
There is also a need to check all other systems in the building, including your HVAC and plumbing system. You want all these to be working as efficiently as possible. This way, you can save money instead of wasting resources and adding more strain to the environment.
Clean the property and get rid of any personal belongings you may have cluttering the area. Tackle the necessary maintenance and repairs. If you think this is too much work, you can always hire a pro to manage the property for you.
Don’t forget to do your research. You want to be updated with the latest trends when it comes to marketing your single-home rental. You will also need to know the rights of your tenants. You don’t want to end up getting in trouble just because you did not know the basic tenant rights.
The covid-19 crisis made people rethink their priorities. People may not have the funds or interest to buy their own homes just yet. But they are still opting for single-home rentals to enjoy more space, privacy, and security. If you own another single-home, this can be the perfect opportunity to start your road to landlording.