The San Francisco rental market in 2015 has been strong, and it continues to perform well for investors and landlords. As you may remember, things really spiked in the middle the 2014, but the market has settled down and everything should remain steady throughout the rest of the year. A couple of specific things are impacting the market and the rental properties available on it.
The San Francisco Bay area has been able to produce consistent job growth this year. The tech industry, particularly the biotech industry, has provided a lot of jobs to highly educated and well qualified workers, which has provided landlords with an excellent pool of tenants. San Francisco’s demographics are including an increase in young professionals who are compensated well for their skills and talents. These are renters who are looking for high quality apartments in trendy locations. If you’ve got a property that’s priced fairly and maintained well, you shouldn’t have any problems finding a tenant for it in 2015.
Roommates and Apartment Sharing
Not all of the area’s employees are highly paid tech wizards. There are people living and working in and around the city who are not doing these professional jobs but still have high standards for where they live. They want a reasonable commute to work and amenities they can enjoy when they’re not on the job. These tenants have been willing to live with more people in order to find housing that appeals to them. For example, two roommates may move into a one bedroom unit and three or four people might move into a two bedroom apartment. These situations work well for the tenants and they also provide stability and reliable rental income for landlords. You’ll want to pay attention to who is in the property. As you know, the rent control laws make it important not to allow new tenancies to occur when one roommate moves out and another roommate moves in. These shared living situations have contributed to the potency of the current rental market, and we expect them to continue.
When you look at rental statistics nationwide, you can see that the San Francisco market is a leader in the quality of tenants and the amount of rent that landlords are able to collect. It’s a great time to invest in this market if you’re thinking about investing.
If you have any questions about the direction of the market, or you’re not sure how your property fits into it, please contact Gordon Property Management, and we’d be happy to tell you more.