Rental Market Update – What Can Owners And Tenants Expect In January 2021?
With January 2021 fast approaching, most owners and tenants nationwide are looking forward to the new year wondering what’s going to come next.
In this article, we will provide you with a roundup of what owners and tenants can expect in 2021.
What’s Going To Affect Owners In 2021?
Now that the November elections have come and gone, it’s clear that January will bring a change to the Presidency in the United States, and Joe Biden will be our next President.
The big question is what changes can real estate owners expect when Biden’s Administration takes office?
Here’s what we know so far:
1031 Exchanges – During his campaign, Joe Biden went on record stating his intention to modify this program so that investors who earn over $400,000 per year would not be able to benefit from this program.
Even though 1031 Exchanges have been in existence since the 1920s, Biden’s team calculated that changing the rules would mean that it would bring in an estimated $775 billion over the next 10 years.
Tax Increases – As expected, another big change owners can expect under President Biden is tax increases on individuals earning more than $400,000 per year.
What Can Tenants Expect In 2021?
Eviction Ban - The number one issue on the minds of tenants in San Diego, Phoenix, and Arizona is evictions, as hundreds of thousands of renters across these states face the real threat of eviction.
In Arizona and Nevada, some evictions are already occurring, even though the CDC Eviction Ban is protecting certain renters until January 2021.
California’s eviction ban is in place until February 1st, 2021 but a tenant must be able to show proof of financial hardship and they will be required to pay 25% of their monthly rent.
In each state, landlords and tenants are being encouraged to negotiate, or come to mediation, to work out payment arrangements.
A good example of this can be seen in Nevada where the state has been encouraging landlords to negotiate with their tenants who are behind on their rent.
Unless a landlord forgives the bank rent, tenants are still required to pay up, and with roughly $1.7 billion owed in back rent across the country, it’s understandable that landlords are going to want to collect what’s owed them as soon as possible.
Rent Increases – 2020 has been a year marked by Covid-19, but despite what’s been happening, rent has increased in many areas.
San Diego – Rent has increased by 4% this year and the average rent for an apartment in SD is now $2,237 per month.
Phoenix – As more people have left rental property in California this year, for Arizona and Nevada, it’s not surprising that the average rent for an apartment in Phoenix has increased by 10% to $1,141 per month.
Las Vegas – Right now, you can rent an apartment in Vegas for $1,107 per month, a 4% year-over-year increase.
Contact GoldenWest Management
Are you thinking about hiring a new property manager?
Or are you considering hiring a property management company for the first time?
We offer property management services for Las Vegas, Phoenix, and Las Vegas that will save you the time, money, and hassle of property management.
To learn more about our ‘boutique style’ property management services, contact us today by calling (866) 545-5303 or connect with us online.
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