The coronavirus pandemic has led to many economic, lifestyle, and policy changes that have influenced the rental industry.
With residential eviction protections in place, immense financial hardships affecting renters across the nation, and fears surrounding future economic insecurity and instability, many property owners are wondering if now is the best time to rent out their property.
However, in spite of the changes brought about by the COVID-19 pandemic, now is actually the perfect time for landlords to rent out their properties. In fact, if you own homes in the suburbs or exurbs near a metropolitan area, like Washington, D.C., the timing couldn’t be better.
If you’ve been on the fence about whether or not to rent out your property, here are three factors you should consider:
1. Rental Rates in the Suburbs are Rising
This past year, rental rates in Northern Virginia suburbs and exurbs took off as a growing number of people looked to leave metro areas like Washington, D.C. Home sales in suburban counties spiked 11.9% last summer, and many renters began renting homes in areas like Fairfax, Ashburn, and Arlington.
This growth was due to a number of factors:
Since the onset of the pandemic, many renters have wanted to live in less densely populated areas in order to decrease their risk of contracting the virus. Living in suburbs and exurbs means less crowded areas and no need to use public transportation or ride sharing apps to get around town.
Stay at home mandates
As renters and their families were asked to work and attend classes from home, many found that they needed more space than metropolitan homes have to offer. Renters want to make sure everyone in the family has adequate personal space, and they want rooms that they can convert into home offices and exercise rooms. According to research by Zillow, nearly ⅓ of remote workers would consider moving to areas with office space and more rooms. This means moving to suburban areas where the homes are larger.
Stay at home mandates also led many businesses like movie theaters, clubs, and museums to temporarily shut down. One of the biggest draws of metro areas like Washington, D.C. are their amenities. When people are not able to take advantage of these perks of living in a big city, the cost of living in these big areas and the lack of space are major deterrents.
While rental prices are increasing, renters in the Washington, D.C. area are flocking to suburban areas where the cost of living is far cheaper and they can get more space and privacy for their money. Many people lost jobs during COVID-19 and are looking to relocate to areas where it will be cheaper to live on a lower salary. In most metro areas, people pay more per square foot for homes within a 15 minute commute to their workplace. The financial hardships many are facing due to the pandemic will lead to more people looking for homes in areas that are farther away from where they work.
2. Remote Work is the New Normal
Remote work eliminated commute work for countless Virginians, making it less important for people to rent homes in areas close to their Washington, D.C. office spaces. Considering the fact that the remote work trend is here to stay, people are only going to continue to branch out when looking for homes instead of trying to find places in close proximity to work.
According to Zillow, ⅔ of Americans who worked from home during the pandemic would consider moving if they were allowed the flexibility to continue working remotely. Instead of renting a home near their office, they will continue to head to the suburbs where there are great schools, larger homes, and more affordable housing options.
3. You Won't Be Alone
Even though it is clear that renters are looking for homes in the suburbs of Northern Virginia, it can still be daunting to rent out your property during this time. Sure, rental prices in the suburbs are increasing, but how can you make sure you capitalize on these rates? Yes, there will be an influx of tenants, but with eviction protection in place, how can you make sure your renters pay rent on time?
While these concerns are certainly valid, you don’t have to let them keep you from making money renting out your properties. Now is still a great time to rent out your homes because RentSimple will provide all the assistance you need to mitigate these issues.
When you work with RentSimple, you will have guaranteed property management services for rental properties in Ashburn, Gainesville, Aldie, and Haymarket. We can help you find great tenants, collect rent in a timely manner, and maintain your properties so that you can take advantage of all the benefits of renting out your property without any of the headache.