Dear Owner/Clients –
As we step into the heart of the summer, the Treasure Valley rental property market has been bustling with activity, offering both opportunities and challenges for property owners and managers. June proved to be an extraordinary month for “affordable” property rentals in the Treasure Valley. We experienced an impressive surge in rental demand for properties priced at $1,500 per month or less. Comparing the numbers to previous years, June 2023 saw a significant increase in the number of “affordable” properties rented, surpassing all records for this month. The rising appeal of the Treasure Valley, fueled by its vibrant communities and thriving economy, has undoubtedly contributed to this unprecedented rental demand.
June 2023 saw a significant increase in the number of “affordable” properties rented.
As the market continues to attract both tenants and investors, it has also brought about challenges, particularly in the realm of competition. A notable concern in June was the substantial number of single-family homes available for rent, with Canyon County alone boasting around 200 three-bedroom, two-bathroom homes on the rental market. In response to this intensified competition, property management companies have had to adapt their strategies. The higher priced rental market ($1,500 per month and higher) is also very challenging at the moment, as this market has become flooded with supply due to the many large, new multi-family Class A properties coming onto the market in spring and summer of 2023. These large Class A developments are the result of Real Estate Investment Trusts (REITs) and Private Equity investments arriving in the Treasure Valley.
We are seeing a return of eye-catching advertisement incentives which is also reshaping tenant expectations. Among the most prevalent methods has been offering enticing move-in specials, such as the first month free. Additionally, pricing has become a critical factor, with property managers ensuring their rates remain competitive, sometimes even lower than other listings, to stand out in a crowded market.
While attracting new tenants is essential, maintaining a strong focus on tenant retention has also paid dividends for property managers. By offering reasonable renewal offers, property management companies have achieved success in retaining existing tenants. As a result, the turnover rate for July is notably lower than historical averages, signaling a positive trajectory for tenant loyalty.
Read more: The Importance of Good Google Reviews.
Matthew Johnson
Johnson Property Management, LLC