Want to know how today’s housing market has impacted the houses for rent in the greater Philadelphia area?
This post is all about knowing what to look for when making decisions about houses for rent in the Philadelphia area.
Today’s housing market is extremely challenging for many homebuyers and some have decided to look at houses for rent as a temporary option.
This has been good news for the home investors who are happy to rent homes at a premium.
But, inflation has kicked in and the rental rates are now being impacted too.
So, whether you are a landlord or a tenant you’ll want to be fully informed of what the rental market looks like right now in your neighborhood.
You are going to learn about what to look for when making decisions about houses for rent in the Philadelphia area.
Houses for rent have been impacted differently in each neighborhood.
In researching the different counties within the Philadelphia area it’s been interesting to see how the houses for rent in each county have been affected very differently.
It’s no wonder the rental rates are all over the place.
There is very limited information available for homeowners and tenants to determine what a fair market rent price should be for a house or apartment.
I read about some nonsensical rule of thumb that the monthly rent should be 1% of the value of the home.
Well, that doesn’t make any sense at all…. because that would mean a $500,000 home would rent for $5,000 per month.
I can think of several different neighborhoods that have homes that are selling in the $500,000 price range and I know the market rents are much lower than $5,000.
Also, I don’t know of any appraisers that base their opinion of market rent upon the market value of the property. It’s simply not a reasonable or reliable method.
So, how do you know how much to charge for rent?
In our housing market, the amount of the rent is greatly influenced by the ease of access to residential amenities, public transportation and proximity to center city or local universities.
For instance, when my daughter was looking at a place to live in University City our most important priority was how close it would be to her college.
She found a home 3 blocks from her school that was totally remodeled and absolutely perfect inside.
Then she found a home that was much older and the layout was really weird. But, it was located directly across the street from her school library. Plus, a security guard made frequent walks past the front door.
Guess which house she moved into?
Yep – the one with the security guard and a quick dash across the street to school.
Guess which house had a higher market rent?
Yep – the one she moved into. And we were happy to pay for it.
If you are currently looking for a place to rent you are probably now wondering….. how do I know how much should my rent be?
First, use a rent calculator to decide how much you can afford.
Then, find out what the market rent is for the neighborhood where you are looking for houses for rent.
But, it doesn’t stop there.
The details are extremely important when looking at the rental agreements.
Fortunately, as an appraiser I had the resources and the research experience to know what a fair rental price would be for my daughter’s college home.
I also knew what amenities or utilities she could expect to be included with the cost of her rent.
And, we were fully prepared to make sure that certain items would be taken care of while she was living in the rental house with no additional cost to her or her room mates. (Ex: exterminator)
The cost of houses for rent depends on the neighborhood.
As appraisers, we often complete reports for property investors who want to rent their homes but are not sure how much they should charge for rent.
This is often an eye-opener for many property owners because they did not realize they were charging a very low rent.
Or, most recently, this is an reality check for some homeowners when they realize they may have set their expectations a bit too high.
We can also complete appraisals for potential tenants who want to be sure they are paying fair market rent before signing a rental agreement.
After all, the cost of an appraisal report could be the difference in saving a couple hundred dollars each month. Multiply that by twelve and it adds up quickly.
Here’s an example of what’s going on with the houses for rent in Montgomery County.
The chart below shows the actual rent prices that have been agreed upon by the landlords and tenants.
You can see that the Montco home rental prices have decreased significantly this month.
And, it’s taking the landlords a little over 2 weeks to find a tenant.
Now, lets take a look at what is available for rent in Montgomery County.
The Montco current median rental offering prices are $450 per month lower than this same time last year.
Also, the current number of available rentals is at the highest it’s been over the last 13 months.
But, not all of the counties are looking the same as Montgomery County.
Here are more rental stats for Montgomery, Philadelphia, Bucks, Delaware and Chester counties.
You’ll learn about:
- the median rental prices – final price.
- how long it’s taking the properties to rent.
- current rental prices – what the landlords are asking.
- the exact number residential properties currently available for rent.
- It’s all Right Here
