2020-21 San Diego Rental Market Predictions | RentSimpli
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2020-21 San Diego Rental Market Predictions

2020-21 San Diego Rental Market Predictions
November 27, 2020Propety Management

RentSimpli is a full-service San Diego property management company specializing in single family homes, townhouses, condos, mobile homes, small commercial buildings and small apartments. We also service Riverside counties including Temecula, Murrieta, Menifee and more. We are often asked for help in thinking through the rental market as well as the sales market to get an idea about the trends investors may be facing.

This past year has certainly been unique. While there has been a lot of anxiety and a number of challenges due to the economic shifts and the unexpected global pandemic, there are also opportunities. Whether you currently own rental homes in San Diego or you’re thinking about investing, there are some important things to consider when thinking about the remainder of 2020 and the upcoming New Year.

COVID-19 Has Impacted the San Diego Rental Market

The COVID-19 pandemic has had a destabilizing effect on the San Diego rental market, and rental markets across the country. With many tenants unable to keep up with rental payments, eviction moratoriums were put into effect nationwide. That’s been difficult for property owners who are struggling to meet their own housing payments and financial obligations.

This pandemic has required a lot of flexibility, especially in a market like San Diego where rents are high. Fortunately, with a lot of communication and transparency, we have managed to avoid many of the pitfalls that can occur. We keep both our owners and tenants up to date on the current laws and work with all parties to ensure compliance. Currently, we are at 100% rent roll for every month since the pandemic started.

If you’re a current rental property owner, you’ll need to continue being flexible throughout 2020 as well as stay current with the different laws that are in effect. Work with tenants who are struggling and know it may be some time before you can get to the courts to file for evictions. Tenant communication has never been more important.

Finding Opportunities in a Recessionary Market

Rents have dropped between 0.3 and 0.6 percent since the pandemic began, and demand has also slipped. But, it’s not all bad news. There is still a large pool of well-qualified tenants looking for homes to rent. There are also some bright spots for current and potential investors.

For example, mortgage rates have never been lower. If you are thinking about investing in a new property, now is a great time to do it. You can get an affordable loan. Investing in areas like Oceanside and the North County is an especially good idea. Rents have not slipped much in those communities, and it’s reasonable to expect you’ll find some great investment opportunities. Temecula, Murrieta, and Menifee are also excellent locations for property investments.

Hire a San Diego Property Management Company

One thing we know about the 2020/2021 rental market is that you’re going to need professional help, even if you’re an experienced investor who has seen the highs and lows before. Not only is the pandemic continuing to leave owners feeling uncertain, there are also the new rental laws in California that are complex and challenging to understand. Not all of them have had a day in court yet, which means we don’t yet know the scope of rent control and just cause eviction laws. There’s also fair housing shifts. San Diego rental property owners can no longer deny Section 8 tenants. These applicants can use their housing vouchers as proof of income, and you’ll have to screen them the same way you screen everyone else.

It’s easier than ever to make an expensive mistake. Don’t take that chance. Work with a professional San Diego property management company that can help you navigate the legal changes and market shifts.

RentSimpli is a full-service property management company serving landlords, investors, and property owners in San Diego and Riverside Counties, including La Mesa, El Cajon, Chula Vista, Santee, Rancho Bernardo, Escondido, Fallbrook, Temecula, Murrieta, Menifee and more. If you have questions related to property investments or San Diego property management, please contact us.




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