Local Landlord Lures Leases

It seems as if half the articles written these days begin with the words, "In these uncertain times..." or, "In these tough economic times..." I've vowed not to ever start a blog with similar phrasing. Yet today I wanted to talk about a blurb I saw on the news last night and I found myself using those very words! Does it make a difference that I'm writing something positive? I hope so...

With the uncertainty of today's economy, many landlords are finding it difficult to get leases signed. At first it seemed that the rental market would boom as a result of the housing market dropping. But what we've seen is that more people are home-sharing; either getting a roommate or moving in with family. Surprisingly, the rental market is sinking with the housing market!

Many renters are shying away from leases and favoring month-to-month rentals. Most have cited a fear of losing their job as the reason. A lease, like any contract, can't usually be broken without great expense so it could feel like a kiss of death to someone who's just become unemployed. One local property management company has found a way to increase their occupancy despite the negative effects other landlords are facing. They are including a "job loss" clause in their lease agreements which is helping to ease the minds of their new tenants. It works like this: the tenant signs a standard 12-month lease which remains in effect unless the tenant loses their job. If that happens they provide the management company with proof of termination and a 30-day move out notice. The management company breaks the lease with no negative repercussions to the tenants credit score or rental history! The owner of the management company said so far no one has had to use the clause but it has helped them get people to sign longer leases than some of their competitors are getting.

This is a great example of how we can rise up and alter our businesses to change with the times. If you're thinking of buying or selling rental property, give us a call at 360-609-6775 or visit the "Contact Us" page at www.MyRealtorIsJamie.com. We are here to help!