Just wanted to give you quick update on what the rental market is doing here in Santa Clarita, CA.
The rental market in the Santa Clarita Valley continues to remain strong. This is in direct response to the continuing struggles in the resale sector. With resale still remaining difficult to buy, and home prices on a steady decline, the rental market is flourishing.
One of the "unexpected consquences" is the new pool of applicants we are seeing for our rentals. Here is a quick breakdown of who is currently applying to rent, ranked by application quality:
- Homesellers. These are the people who just sold, most of the time are in escrow on their home. They come in with 1) High credit scores 2) Good Income 3) Strong assets. Downside? Most have pets. I don't personally consider this a downside, here is why.
- Relocations. The market still remains to high for most relocation families to purchase, and the downturn in the market is making them nervous. They continue to rent. They have 1) High credit scores 2)Good Income 3) Good assets. Downside? Most relos are short-term tenants.
- Distressed Homesellers. These are the people who got caught in an adjustable loan, and it got out of control. They ended up upside-down on equity with quickly rising payments and no clean way out. They have 1) Good income 2) Homeownership experience 3) May have assets. Downside? Probably have a foreclosure and maybe an eviction on the record. Check the rest of the application. If everything else is a go, take a higher deposit and move forward.
This "new" pool is making the rental market very fast-moving and strong. If you price the home correctly and make sure it sparkles, it should rent with no problem.
Comments(2)