The rental market showed significant strength in 2013. Rents for Single Family Homes and Condos increased 7% from 2012. The average price a tenant paid was $2538 compared up from $2392 in 2012. The number of properties leased remained fairly stable (supply), only 42 more units were leased in 2013. A new and significant development was the entry of Institutional Investors to the rental housing market. These investors, who have plenty of cash on hand are able to purchase properties in bulk, often at a steep discount. The homes are then converted to rental units and held for cash flow and appreciation. In our opinion this helped the overall market from a property owners perspective. Typically, units that employ professionall property managers demand higher rental rates. This is one reason property owners should consider hiring a professional property management company. The higher rents and better quality tenants will more than offset the fee paid to the property manager.
Renting a Home – How Much Will it Cost You?
Westlake Village was the most expensive place to rent in 2013 with rents averaging $3408 per month. However when you compare price per square foot (PPSQFT), Oak Park and Thousand Oaks were just as expensive at 1.72 on avg. In the East County area, Moorpark was the most affordable based on the size of the home at $1.39 psqft and Simi Valley had the lowest avg rents, $2374. Oxnard was the most affordable place to live in the West County at $1.32, but Ventura had the lower avg rents at $2010 per month.
2014 Outlook- We expect rents to increase a modest 2-3%. Our annual rental outlook report will be published in Feb 2014.
If you are considering selling or renting out your home, Presidio Real Estate Services can help you analyze the best path to take. We will crunch the numbers and make sure you have the information needed to make the decision that best fits your needs. We are Ventura County’s #1 Property Management and Real Estate company.