Whether you’re a tenant or a landlord, don’t miss this Santa Clarita rental market update if you want to maximize your position and your outcome.
The housing market is faster-paced and more intense than ever, as competition and unique global challenges affect every aspect of the homebuying process from the number of active listings to record-high home prices. But it’s not just buyers and sellers who are being affected anymore. Right now, the home rental market is just as fast-paced and intense for tenants and landlords alike. Whether you’re looking for a great tenant or the perfect home rental, it’s important to understand the current rental market so you can position yourself to get the best outcome possible – despite a challenging market.Factors Affecting The Santa Clarita Rental Market
Low Inventory
Over the last 15 years, the Santa Clarita Valley housing market has averaged a 3.3-month supply of active listings, according to the Southland Regional Association of Realtors (SRAR). This year, however, inventory has hovered around a meager 1-month supply, hitting an annual low in March 2022 with just a .7-month supply. Though the number of active listings increased slightly in June, the Santa Clarita Valley still had only a 1.5-month supply of homes on the market. With fewer active listings available for purchase, it increases competition in the market and drives home prices up.High Home Prices
Even though mortgage interest rates are beginning to climb, housing prices remain high in the Santa Clarita Valley, LA County and surrounding markets. In June 2022, the median home price was up 4% when compared to June 2021, and the median price for single family homes was up 6%, according to SRAR reports. “The housing market is affecting the rental market because homeowners want to sell their homes at the height of the market – without purchasing their next property in that same market,” explains Steffanie Stelnick, CEO and President of SCREM. “So many of these homeowners decide to rent a home in the meantime.”Tenants With Cash Up Front
When these homeowners sell without buying, they come into an influx of cash. That puts them in a unique and highly motivated position as tenants. “That’s why we’re seeing more and more tenants who can offer up a full year of rent in advance, in order to lock up their ideal rental home,” Steffanie explained. “That means, if you’re a landlord, you’re in a great position in this market because you’re avoiding renters who might take advantage of the rent moratorium. If you’re a tenant, however, you may be facing steep competition, especially if you’re not in the financial position to pay up front.”LA County Rent Moratorium
The Los Angeles County Eviction Moratorium, now known as the COVID-19 Tenant Protections Resolution, extends eviction protection for nonpayment of rent to low-income households that experience financial hardship due to the pandemic, until December 31, 2022. These protections also freeze rent increases for some tenants. In these conditions, tenants are less likely to move from their current rental properties, creating less movement in an already tight rental market.How Can I Prepare To Enter The Rental Market?
Now, just because the rental market is a little more competitive than usual, it doesn’t mean the rental process has to be difficult or discouraging. In fact, it just means you need to be prepared, and more importantly, you need a strong network of professionals who can help you navigate the current market with information, support and ease. Here are three ways you can prepare yourself to enter the Santa Clarita rental market as a tenant – and put yourself in the best position possible to secure your ideal rental. 1. Start Now At SCREM, the very first step of the re-leasing process is to notify the property owner that the tenant will be vacating. Once that’s taken care of, we connect the property owner with our marketing director, who can provide an expert recommendation on the property’s current market rate. This part of the process is crucial. “Sometimes we have tenants who vacate their property after 10 years,” Steffanie explained. “As the property owner, you can’t just rely on the same rent pricing from 10 years ago. In fact, rent has gone through the roof, especially since the pandemic.” Next, our team will set up a thorough move-out inspection, to get a clear picture of the current condition of the property. Once that’s complete, the marketing director will contact you with recommendations for the property, to make sure you can price it at fair market value. Then it’s time to get it re-leased with a new, qualified tenant. Ready to start your search? Our online portal has helped countless tenants find the perfect rental home. Need more guidance? Give us a call at (661) 255-8012, and one of our professionals will walk you through the search process with ease.