The professionals at Key Realty Center have been involved in real estate and property management for more than three decades. We’ve seen a lot of market shifts. We know that change isn’t anything to be feared, but it definitely has to be managed.
Helping rental property owners navigate fluctuating market conditions is one of the things we do best. Whether you’re renting out a single property, an entire portfolio, or thinking about investing for the first time, we can help you understand where the market stands, where we see it going, and what we believe that means for your investments.
Let’s take a look at how our team can help you navigate the ever-shifting market in California.
Understanding Market Fluctuations
Remaining flexible and adaptable is your best defense against a fluctuating market. California’s real estate market is known for its ability to be volatile. This is driven by economic shifts, changes in regulations, and varying demand and supply dynamics.
We have found that these fluctuations can influence property values, rental rates, and occupancy levels. For property owners, keeping a close eye on these changes while managing day-to-day operations can be overwhelming.
That’s why we’re here.
The Role of Property Management
Property management companies like Key Realty Center can offer a range of services designed to alleviate the stress of market fluctuations and streamline property operations. One of the things that works especially well for us is creating a customized management plan for each of the properties that we manage. Each investment will respond to a changing market differently, and we want to make sure each of your investments is best-positioned.
Understanding Demand and Rental Market Shifts
Rental market trends often shift at the same time as the sales market, or in response to the changes in the sales market. With rising demand for rental housing as home prices seem out of reach for the average renter, demand has increased over the last few years. This has resulted in several new construction projects designed to meet the demand for housing and also to deliver affordable housing to people who are struggling with rising rental prices. This means an increase in condominium buildings and multi-family apartment buildings throughout the region. We help prepare investors, whether they’re looking for a new investment opportunity or wondering how their existing properties can compete with this new construction.
Even while development is increasing, there’s a preference among tenants for more sustainable, greener housing options. They’re looking for energy-efficient appliances and light bulbs in the homes they rent. They want plumbing features that conserve water and smart home technology that offers convenience and ease. Rental property owners will need to be prepared to meet this demand. We can see it coming and help you make your property more attractive.
Short-term housing is also taking off. Sites like Airbnb and VRBO are popular places for tenants to look when they’re only coming into town for a few weeks or months. While long-term leases are often more profitable and stable for owners, short-term furnished rental properties offer another option for owners and investors who may be looking to diversify their portfolios. Expect us to have all the data you need to make good decisions about what kind of property you want to rent out.
Remote work is shifting rental markets, too.
More and more tenants are working remotely, and this has changed the way owners are offering rental properties. We are working with our owners to understand that these remote working tenants are looking for strong internet connections and workspace inside the properties where they live.
If you’re thinking about how you want to market your property to remote working tenants, these are the things you’ll want to focus on while competing with other rental homes in the local housing market.
Systems and Expertise Provided by Key Realty Center
So, how can we help owners and investors navigate these shifts in the local rental markets and the overall real estate market in California, even as it’s constantly changing?
Here are some examples of what we can do for you.
- Market Analysis and Strategy
We collect a lot of data, and we’re doing it all the time. As your knowledgeable property management partner, you can always access the insights and analytics that we gather. Our team is consistently conducting regular market analyses, which helps us to understand current trends and predict future ones. By staying ahead of the curve, we can advise property owners on the best strategies for pricing, marketing, and leasing.
The investment we have made in technology provides a lot of benefits to our owners and investors. It also helps us spot the trends and shifts that are currently in the market and likely to be coming in the next few months. No one wants to be caught by surprise, and thanks to our market knowledge and our innovative technology, we can use our data and our analytics to strategize how to approach the market as things get more competitive, pricier, or more unpredictable.
- Efficient Tenant Management
In a fluctuating market, stability can be extremely reassuring. It can also be profitable. Maintaining high occupancy levels is crucial during market downturns. You can count on us to handle tenant screening, lease renewals, and tenant relationships efficiently. We work hard to address tenant concerns efficiently, ensuring a steady stream of rental income and minimizing vacancy and turnover. During the worst days of the pandemic, when the eviction moratorium was in place, tenant relationships were especially important. We had to make sure rent continued to come in consistently for our owners. At Key Realty Center, we were able to do this, and that’s due not only to our outstanding tenant relationships but also our communication skills and our willingness to work with people who might need a bit of extra time or support.
- Cost Management and Maintenance
Money always matters, and that’s going to be a fact whether the market is performing better than expected to taking a trend downward. We can tell you that during economic downturns, cost control becomes even more critical. Our property management team oversees cost-effective maintenance and repairs. We negotiate vendor contracts and implement cost-saving measures to protect your bottom line. You won’t have to worry about overspending.
We also pay attention to how we can help you navigate shifting tenant demands. Right now, most tenants are looking for those energy-efficient features and smart home technology. Is your rental property prepared to accommodate this demand? We’ll recommend upgrades and updates and show you what kind of difference it can make in your short-term earnings and your long-term profitability.
- Legal Compliance and Risk Management
Nothing fluctuates more than the long list of laws and regulations that we have to follow as property managers in the rental market. California’s real estate requirements are strict, tenant-friendly, and known to change rapidly. You need us to ensure compliance with all local, state, and federal regulations, minimizing legal risks and protecting your investment.
Security deposit limits recently changed, and if you don’t know that, you might find yourself out of compliance. Rent control laws are specific and strict, and you’ll need to know whether your property is included or exempt from those laws and what it means for how much you can increase the rent at renewal time. Eviction laws are also very strict, and you can easily make a mistake. Unless you’re working with Key Realty Center. We help you navigate every new law, whether it pertains to recycling organic waste or storing e-bikes. We are prepared, and that means you’re prepared.
Helping You Choose the Right Investment
With a fluctuating market, it’s important to ensure your next investment is a smart one.
We’ll make sure you are aware of the risks and the rewards. Rental properties in our area make excellent investments. However, you have to choose the right property. You have to understand what makes a rental home profitable. You have to think like a tenant, too, so that you’re buying homes that they’ll want to live in.
When you’re looking to invest, we will examine the market as it currently is and as we expect it to shift, and that will help you consider location, property type, and renovations. Once we have helped you identify a potential property that you’d like to buy, we can take a look at the numbers and make sure they match your investment goals. At Key Realty Center, we’ll calculate your expected rental income and estimate your expenses.
This helps you to invest in a way that ensures your property will make money no matter how the market is performing.
In a state as unique and diverse as California, having a skilled property management team on your side can make all the difference, especially when you’re navigating market fluctuations that might leave you a bit uneasy. By leveraging their expertise, property owners and real estate investors can not only weather market fluctuations but also find opportunities for growth.
Let’s talk about how we’ll put this into practice with your investments. Contact us at Key Realty Center. We lease, manage, and maintain rental properties in California, specifically Elk Grove, Galt, and Sacramento.
Broker-Owner Rod Luman has three decades of experience in the real estate industry. A lot has changed over the past three decades, but nothing has changed property management as much as computer technology. Today Key Realty Center uses cutting-edge tools to research market conditions and set rental prices, to thoroughly screen tenants, schedule and track maintenance, and provide extensive reporting for owners and tenants.