The Benicia home rental market is changing, but remains strong

Services for Real Estate Pros with houses for rent, Solano County & Glen Cove 01870024

The Benicia home rental market is changing

Benicia home rentalsWe have noted several changes in the Benicia rental home market lately.  Overall, the market is still strong with both a high demand and also a steady supply of new inventory.  

Conventional wisdom is that the buying/selling market and the rental market are inversely related.  This means that when one does well, the other does not.  For the past several years when the buying/selling market has suffered the rental market is soared.  Now that the buying/selling market is heating up, we are seeing the rental market also heating up just as quickly.  So, conventional wisdom is out the window now that both markets are doing well.  

One detail contributing to this is a factor that we had predicted and are now seeing come true - as the buying/selling market heats up, real estate agents that had "dipped" into property management are now starting to jettison their property management portfolio to focus on their primary task - selling.  So, we are gaining new investor-clients who have been fired by their real estate agent.

Also, with the heating up of the buying market, we continue to see a steady flow of new clients who are purchasing their first (or more than first) investment property.  Of course, they then turn to Delgado for their property management needs.

Another factor driving up the Benicia home rental market is the influx of new residents moving to the area in response to the improved employment outlook in the entire San Francisco Bay Area.

An interesting item we are seeing is investor-clients talking to us about a plan to sell in either 2014 or 2015 and so strategizing with us on how to best manage their property for the next year or two until they put it on the market.  Given that the impediment to the buying market really taking off is a lack of inventory, I suspect that this trend of investors starting to sell in the next year or two will simply fuel buying by other investors and continue the strong cycle.  

To note - we have consistently rented 15-18 homes per month for each of the past several months.  Given that the geographic area in which we work is fairly small (Benicia and part of Vallejo), these are very impressive numbers and supports our opening statement of the Benicia home rental market remaining strong.  In fact, in the first 6 days of June we rented another 5 homes. 

Comments (10)

Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

So glad to hear that the rental market in your area is remaining strong.

Jun 08, 2013 11:04 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA

Double DITTOS....a few "faux" property managers in our area are practically ABANDONING their property management clients who are now being serviced POORLY and are CLUELESS as to their next move now that their property manager is selling their TENANT a new home...

Jun 08, 2013 11:15 PM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

Roger - thank you for the support.

Wallace - We are constantly telling agents/clients/tenants that we do NOT sell but rather stick to what we know best, which is property management.  Funny how others so readily jump into property management and then jump right back out.

Jun 09, 2013 01:40 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert


A monthly rental rate of 15-18 is huge in my mind. Good job. The rental market here has been strong for at least the last 5 years and while inventory of homes for sale ais low and prices are higher the rental market continues to hum.. 

Jun 09, 2013 02:09 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Interesting, Mark.  I know our rental market is hot, certainly because there is so little inventory of homes to buy.  And guess who is buying up as many homes as they can - investors.  

Jun 10, 2013 04:08 AM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h
We are seeing the same thing - low inventory and many of e buyers are investors so the rental market continues to benefit from a steady supply and a high demand.
Jun 10, 2013 10:43 AM
Clark Cook
1st Choice Realty of Fayetteville, LLC - Fayetteville, NC
Marketing Homes For Sale In Fayetteville NC Area

Mark, your prediction is another indicator of your sagacity. Good post and great job!

Jun 10, 2013 11:37 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Hi  Mark, 

I am just stopping by to say Hello and I hope you are having a good week. 

Jun 11, 2013 10:23 PM
Florida Management and Consulting Group Inc.
Florida Management and Consulting Group, Inc. - Coral Springs, FL
Real Estate Brokerage and Property Managers

Very informative- from the Benicia home rental expert!

Jun 12, 2013 11:57 AM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

Hi Mark, although I do occasionally list rentals, I do not manage them. These are either owner-managed properties or are referred to a managment company. I could never imagine just dabbling it in on the side. Property management is best left to the professionals, such as Delgado Property Managment.

Jun 13, 2013 11:43 AM