The rental property industry has been drastically impacted in the last few years with the COVID-19 pandemic to the recent mortgage interest rate increase. The good news is that the market seems to be stabilizing for the first time in a while. Here's some things to expect:
Increased Interest in Short-Term Rentals
The vacation rental industry slowed down due to the COVID-19 pandemic. However, the demand is starting to go back up with the increased travel rates. Return on investment for these short-term rentals and AirBnB properties is expected to go up in 2023.
Continued Rent Inflation
According to the Federal Reserve, Inflation is at a 40-year high. Owner's equivalent rent, which is the amount of rent equivalent to the cost of ownership, is expected to keep rising until mid 2023 and then slow down.
Increased Interest in Long-Term AirBnBs.
More people are interested in long-term AirBnB rentals and it is expected to continue in 2023. This increased interest comes from folks traveling for work as well as long stay travel for people that work remote positions.
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