Foreclosure and rental trends: Good news for landlords?

Recent reports say foreclosure rates are up and rental vacancy rates are down, two national housing market trends that may bode well for landlords here in Ohio.

As reported by PR Newswire citing a third-quarter study by RealtyTrac (TM), national foreclosures are up by 17 percent since the second quarter of 2006.

The same study ranks Ohio fifth in the nation in foreclosure rates, up 23 percent in the third quarter with 19,748 foreclosure filings in July, August and September.

Meanwhile, New York-based real estate research firm Reis, Inc. has reported to the Associated Press that a study of 75 national markets reveals monthly rent prices are up 3.9 percent since 2004 while vacancy rates are down 1.3 percent, reaching a low nationwide average of 5.4 percent, in the same period.

Hang on to your shoes, folks, because The Editor is about to attempt a moment of statistical synthesis, and she's not really trained to do that sort of thing.

It would seem that the renting population -- traditionally students, recent grads, the elderly, the metropolitan upwardly mobile 20-something, and lower-income families -- is increasing, perhaps being joined by families who can't meet the demands of rising interest rates on their adjustable rate mortgages as well as families who can't afford the high prices of homes currently on the market.

It would follow that landlords are seeing a larger pool of candidates when they advertise their vacancies, and that they would have fewer vacancies to advertise. But is this true in Ohio? The Editor is interested in your thoughts; please leave her a comment if you'd like.

Using incentives to sell or rent out your property

Owners who have recently placed their Ohio property on the market may find that merely listing it for sale isn't enough anymore.

Witness an emerging trend in Columbus, where sellers are having to get creative in their attempts to attract buyers and motivate their real estate agents.

As reported in the Columbus Dispatch this weekend, sellers are now offering bonus incentives to buyers and/or real estate agents. A Worthington couple profiled in the article is offering a pair of November 18 OSU-Michigan game tickets to the real estate agent who brings them a buyer. Other Columbus-area sellers have offered a Volkswagen covertible and vacation packages to entice buyers.

These enticements may be no big surprise to landlords who've long adopted incentive-based marketing to fill their vacant units. The Easy Rent Editor frequently browses "for rent" classifieds and has noted that especially in metro areas, it's not uncommon to find "first month free" or "utilities included" offers to attract tenants.

It's something to think about in this current buyer's market -- if you're hoping to attract responsible tenants who are increasingly likely to be swayed into forgoing rent altogether and deciding to buy a home, what incentives are you offering to keep them on board?

Well, heck!

We got ourselves a brand spankin' new blog. The Editor is pleased! Stay tuned.