Part of Spinnaker’s commitment to our clients is keeping up with industry trends. This article came across my desk today, and I wanted to share this with you.
On the third of September, the Seattle PI wrote:
In the Seattle metro area in July of this year, 37.5% of rental listings offered a concession of some kind, up from just about 16.7% at the same time last year, according to a report from Zillow. In February of this year, before the pandemic began, about 17.5% of landlords offered concessions of some kind.
It’s been a trend across the country, too. Nationally, the percentage of rental listings offering concessions was 30.4% in July, up from just 16.2% in February.
The most common concession included free rent, which could be anywhere from about two weeks to two months, according to the study.
The article went on to cite some historical context:
“Before the pandemic, rent growth was accelerating and the nation was seeing concessions dwindle. That trend reversed sharply after the pandemic hit in February,” Zillow economist Joshua Clark said.
The story concluded with:
Clark said the increase in landlords offering concessions could indicate “a coming price drop.”
“If owners feel concessions are no longer moving the needle, they’ll reduce prices,” Clark said. “Many landlords prefer to offer a concession rather than cut rent and set a precedent that could linger when the market picks back up.”
So this is where Spinnaker comes in. We have decades of experience in the rental sphere. Whether you should offer incentives or just drop prices altogether is the kind of discussion we have every day. You are not alone if you don’t want to be.
Our commitment to you is to help you maximize your profit in good times and bad. We’d love to talk with you and help you assess your portfolio.
We are industry leaders and want to help lead you into your greatest season.