Predicting the next year’s rental property trends has always been a tricky business. But this year, as we leave a challenging 2020 behind us and look to the future, we seemingly have more questions than ever.
Will eviction moratoriums continue to make life challenging for landlords? What will be the lingering effects of the COVID-19 pandemic on our health and the economy? In this article we’ll share our predictions for the top rental property trends of 2021.
Top Rental Property Trends in 2021
From cities to suburbs
2020 saw a trend of renters leaving inner cities, and to some extent, that’s likely to continue in 2021. As many of the amenities that make inner cities attractive—shopping, dining, nightlife—are closed or closing due to pandemic restrictions, renters are looking elsewhere.
Why deal with the challenges and expenses of city life when the advantages are all nullified by stay-home orders and you can now work from home? There’s been a noticeable shift in demand for rentals in less crowded areas, especially suburbs. We expect suburban rental properties to rise in 2021 as inner-city properties see a decline.
Rent collection challenges
For many landlords, 2020 will be remembered as the year when tenants stopped paying rent. And while we expect this burden to be lifted somewhat as we head toward the second half of 2021, it’s going to be slow going.
With eviction moratoriums still in place (here in Washington they’ve been extended through March 31st) landlords will need to continue to work with renters as best they can to reach agreements and establish payment plans with out-of-work renters. Unfortunately, cash flow for landlords may be tight this year.
Increase of virtual tours
Our reliance on virtual tours is unlikely to change in 2021. The use of online platforms for virtual open houses and 3D tours was one of the great innovations to come out of the pandemic. Self-guided tours have also been big for safety-conscious property managers.
Even after COVID-19 is less of a threat, it’s likely that viewing apartments remotely will continue to be a trend. Not only are virtual tours safe, but they’re also more convenient for prospective renters who live far away.
Demand for affordable housing
The economic effects of the past year will echo for years to come, leaving many renters feeling uneasy. In 2021, renters are more likely to seek out housing that is well within their budget. This trend is driving a high demand for affordable housing.
Demand for almost all types of rental properties is likely to increase, or at the very least stay stable across the board. A big reason for that is that many renters who might have been considering buying a home are putting their plans on hold until the markets stabilize.
Working from home
People will not stop working remotely in 2021. Even after the pandemic subsides, many employers are realizing that allowing employees to work from home is more efficient. This is one of the factors that’s driving renters to the suburbs. You don’t need to live close to the office when your office is in your home.
Renters are going to be looking at potential rental properties with an eye toward whether they’ll be suitable for working from home. As you market your rental property in 2021, be sure to highlight features that will make it attractive to remote workers.
Contact us today to learn more about the top rental property trends in 2021. Be sure to ask about how the resources of a professional rental property management company can help make life easier for landlords and property owners.