I am sure that most people have heard that phrase at on time or another. Shoot, maybe some of us have even USED that statement at some point during our lives! Most people probably have all sorts of negative images coming up in their minds when they imagine someone saying those dreaded words. Most people would probably be mortified at the thought of having to defend themselves with that statement!
I however, am in a position to tell people that very thing several times per week! I get a lot of calls from people who want to rent out their Antelope Valley homes. One thing to keep in mind is that the Antelope Valley has been severely overbuilt with 3,000+ square foot monstrosities. And why not? When the market was really hot, people were buying these massive homes like they were going out of style. Times were good! Equity on new homes was doubling every four months, builders were making money hand over fist, lenders were slinging home loans like dope on the corner, if you had a pulse you were qualified, and if you didn't have a pulse, we could still get you financing with a separate addendum.
Unfortunately, all good things must come to an end (just ask the lately incarcerated Wesley Snipes). Now that the market has dropped, these over-sized behemoths of the housing world are vacant, foreclosed, and rotting like stuccoed whales out here in the desert. Some of these owners are lucky enough to hold onto these beasts through some kind of financial wizardry. Of those that are so fortunate, some of them will call us here at Classic Property Management to inquire about the possibility of renting out their homes. Of those few who call us, a fraction of those will have a realistic expectation of how much they can get in rent each month...
What most people don't realize is that the rent prices of homes are not directly tied to the home's square footage. It makes sense right? In fact, if we could have a standard price per square foot for rental homes, that would make our job incredibly easier! To give you an example, we just rented out a 50 year old home that is about 1200 square feet for $1500/month in rent. A couple of miles away, we manage a two year old 2800+ square foot home that we are having trouble renting for $1900/month in rent. Common sense would dictate that if you are getting more than twice the house, you should be paying more than twice in rent each month right? It seems reasonable, but it just does not work out that way.
There are several reasons for this phenomenon which I am planning to cover in future blogs, but for now, let it suffice to say that in the rental market, "size doesn't matter!"
For more reasons that size doesn't matter, or other solutions to today's rental market, please check out our website by clicking HERE!