As a property management professional or an owner of apartment buildings, there is good news about regarding rent prices, as well as the occupancy rate. Since the recession at the end of the last decade, which is still making its disturbance felt, has been a dreary picture for most of the housing and apartment markets. Luckily, studies are showing we may be seeing the light at the end of the tunnel, as far as renting apartments goes, for those who depend on rent payments as a part of their income.
Occupancy rates have been shown to be as high as 95 percent, which is one of the highest rates since the recession hit a couple of years ago. This means that almost all of the apartments that are potentially available for rent have tenants paying rent for them, while five percent are open for new renters to move in. Considering the fact that there will always be some apartments that are currently experiencing turnover from one tenant to the next, this can be seen as a remarkably high number which is definitely a peak since the recession started.
This high level of occupancy rates means that apartment rentals has been growing and can continue to grow moving forward. As long as tenants are willing to move into apartments and continue to pay rent, it means that market equilibrium has not yet been reached and those that are managing the properties or the owners of the apartments can continue to raise rent prices. Owners are effectively missing out on potential profits, which could be paid to them once the rent levels reach a point where market equilibrium has been achieved.
Owners and property managers have been working to fix this market inequality from their side by raising rent prices for the past few years. Rent growth rates have hit a high since the recession as they try to find a level where there are no longer tenants flocking to fill the spaces. This is different in some cities, such as Los Angeles and New York, where rent prices are significantly higher than in other cities throughout the country, but for the vast majority of apartments, the rent growth has continued and will continue to do so until they reach a point where the market hits equilibrium.
RPM South Orlando is dedicated to providing superior property management services to its customers in order to increase profits and improve services for tenants.
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