At one time everyone was thinking that the price of rents were going to go up because the demand of them would be so high due to the rising foreclosure, short sale and bankruptcy issues here in Las Vegas. But contrary to what everyone thought, it's turned out to be the opposite. The main reason is because there are just too many rentals out there for rent. Investors have come in and bought up so many homes that are now for rent that we are over saturated.
Many people out there looking to rent have lost their home due to short sale, foreclosure or BK. I can tell you from the searches I do to find them the type of home they're looking to rent is not limited. There are multiple choices.
I do believe that one reason for the slow down in rentals being unoccupied is because of the rent prices in general are high here in Las Vegas. Generally, a 3 bedroom runs around $1300 a month. Which to some people might be nothing but to others who are struggling financially it's tough. It's tough becauseof the fear they have. They already have lost their homes, they now run the risk of the possibility that the house they are renting could possibly go into foreclosure. Or perhaps their job/jobs (Las Vegas has a very high unemployment rate) are so unsteady making it difficult for them to commit to even renting a place without the option of bringing on a roommate . They themselves might rather rent a room from someone rather than take the chance of not making the rent payment on an one year lease property.
I believe landlords are going to have to lossen their belts a little on who they are renting to.. Too many people living in Las Vegas have bad credit. It's the truth. Many have bad credit but good paying jobs.
Renters who are currently in a rental should also address the issue to their landlord if they see that within their community rent has dropped, the landlord should work with the tenant and drop the price of rent.
Penny O'Brien with RE/MAX Experience.
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