If there is one word that could be used to describe the housing market here in Utah, that word would have to be volatile. Thanks to the rapid expansion of cities such as Herriman, Vineyard, St. George, and Draper, legions of housing developments — including single-family homes, townhouses, and apartment complexes — have been springing up across all points of the map and in every direction.
This unprecedented growth, in addition to the lingering effects of the Covid-19 pandemic, have led Utah to become one of the hottest housing markets in the United States.
Property Managers Wanted
Of course, this doesn’t just pertain to homeownership but has had a marked impact on the rental market as well. The Deseret News, in a recent article, details the changes that Utah’s property management industry has had to make in order to account for the increased demand the pandemic has caused for places to rent. Such issues include:
The Problem of Rent
Utah tenants have had to endure rising rent prices for the better part of a decade, with percentages getting even higher during the first year of the pandemic lockdown.
- Rent prices increase an average of 5-7% each year in Utah, with pandemic increases topping out around 8-9%.
- For nearly 20 years, rent inflation has been outpacing the standard monetary inflation by nearly 20%.
- State and federal data estimate that 1 in 5 Utah renters pay out over 50% of their income on rent alone.
With rent becoming even more of an issue for prospective renters, rental property management across the state has had to be even more judicious with their tenant screenings, including verifying proof of employment and a good credit score.
No Vacancy
Utah property management hasn’t had a particularly easy time as well, thanks to overcrowding and the relative absence of vacancies. It’s true that every landlord wants as many of their apartments leased as possible so that they can remain in business. But the influx of applications in addition to the majority of tenants working from home due to the pandemic has stretched many front offices to the limit.
Vacancy rates across the state have continued to fall as the pandemic continues with new lows being met in nearly every county.
- Apartments in Salt Lake County now hover at nearly 4% vacancy whereas they were almost 10% a decade ago.
- Vacancy rates in Southern Utah are even lower, approaching 3% in Davis County.
- As of Q2 2021, Utah had nearly 290,000 renters, with waitlists reaching up to 5 years for government-subsidized housing vouchers.
As the years roll on, Rental property management businesses like Rhino are becoming ever more crucial to helping landlords manage the sheer volume of support tickets and customer service duties. Bringing tenants in, letting tenants go, handling complaints, and collecting rent are all services that Rhino Property Management can accomplish to help reduce the load on the owners.
If you are a property manager looking for some expert help, simply give us a call and we can get you set up with all the tools you need to succeed.