People who are thinking about investing in Portland rental properties have chosen a good time to do it. The Portland, OR rental market is strong, and we anticipate it will stay strong throughout the year. The momentum from a positive 2014 continues to help the market grow.
Supply and Demand
Right now, there are more renters than there are rental properties. The supply has not been able to meet the demand, so whether you have an apartment building, a condominium or a single family home; you have a good chance of getting it rented quickly to good tenants. If your property is in good condition and a great location, you’re going to have no problem renting it out in the Portland area. The absorption rate is healthy for apartments, too. With people constantly relocating to Portland, the need for housing is always increasing. This area is routinely listed as one of the best places to live in the country.
The average rental prices increased by four to five percent in 2014. Rents have continued to climb in 2015, and there’s no reason to think that won’t continue. You can expect your rental income to increase. High end properties that command more rent will usually slow down during the winter, but then there will be a lot of demand again during the spring and summer.
Pricing and Vacancy
Tenants in Portland will need to act quickly when they find a rental home they like. There’s not a lot of time to decide and negotiate. It’s possible to push the rental price a little higher and still find great tenants, but you don’t want to inflate the price of your home. The goal is to rent out the property within two or three weeks. If it’s taking longer to find a good tenant in this market, it’s probably because the price is too high. The market really dictates what you’re going to get, and you don’t want to price yourself out of the best tenant pool.
The rental market in Portland will continue to grow throughout 2015. Contact Mainlander Property Management if you’re thinking of turning a property into a rental home, or if you need any help understanding the local market.