Merry Christmas; Where's My Tenant?

The winter months in Marin rentals can be tricky.

I've noticed a couple a pronounced patterns in my years working in the Marin leasing industry. Speaking broadly, Marin is largely a family-based demographic, thus, most local tenants plan their moves around the best timing for their family. Summer, for most, is that time.

The rental tenant pool* here tends to include the following: SF hipster young families looking to sample life in the wild, wild North in the form of rental housing before commiting to buying their first $2 million McMansion; established locals selling their homes who are looking for a one or two year breather from home ownership before leaping into a new, bigger McMansion; locals remodeling their current McMansion; and locals divorcing (usually the half getting kicked out of the already mortgaged and remodeled McMansion).

With the exception of the divorcing group, most of these parties are making planned moves. They prefer to make their transition when the weather is nice and the school year is complete. So largely, these groups are not calling us looking to rent homes during the winter months.

However, the rental market here in Marin is not fueled simply by the school year. Relocating executives or other out-of-area employees (single, married or otherwise) are a large part of our rental base. When companies relocate their executives they tend to do so based on the financial quarter system, and more so the first quarter of the year. So the biggest month for relocating executive tenants?

You guessed it: January.

This year, however, one has to ask just how many companies are shelling out extensive relocation packages for their new executives? Or their transferring employees? (Or even their CEOs for that matter?) When the stock market suffers, the mid- to high- end rental market suffers. Throw in a high inventory of homes that couldn't sell which are now available as rentals and you see that a landlord with a vacancy this winter might be in a tight spot.

So what does this winter hold for Marin rentals?

The answer is I don't know. I know my phones are busier than usual for this time of year, I know we rented three or four properties right before Christmas (including presenting an offer Christmas Eve), and I know that my partners and I are keeping a positive outlook.

But I also know there are a LOT of great homes available to rent right now.

So here's my advice. If you're a landlord with a vacancy this winter, perhaps it's time to take advantage of the down time. Contractors are available: maybe it's time to update your kitchen counter tops? Trade out your bathroom vanities? Tear up that old carpet and refinish the hardwood below?

I've said it before and I'll say it again: quality properties attract quality tenants. You may not directly bring in more money per month by making a few simple upgrades to your property, but by doing so you may very well reduce your down time next time you have a vacancy. Which, last time I checked, does translate to more money to your pocket.

My fiance', sister and I make up the Marin Rental Team at J.Wavro Associates and are happy to answer any rental questions you may have. Call or email anytime!

*When talking about the cycles of Marin rentals, tenants pools, etc I'm referring to the $3k to $10k+ a month Marin rental. The more affordable properties priced under $3k and apartments tend to rent quickly anytime of year regardless of season due simply to the fact that this is the Bay Area and nice, cheap housing is hard to come by!