As we move through 2024, you may have noticed that the rental market continues to shift in response to economic trends, developments in the sales market, and the growing pool of tenants who are looking for attractive, well-maintained rental homes.
If you’re trying to build your investment portfolio or even increase the profitability of a single rental property, it’s important to understand where things stand now and where they seem to be headed.
Our experience as Roseville property management experts has allowed us to spot and prepare for the trends we expect to see in the rental market throughout 2024.
Here’s what we can tell you.
Population: People Are Moving to Roseville
According to recent census statistics, the population of Roseville has been growing pretty steadily at an average of 2 percent every year. Between 2020 and 2021, the population increased by nearly 5 percent. The high quality of life, abundance of affordable and attractive housing, and proximity to larger, more populated California cities can be credited with this population growth. As the number of remote workers continues to grow, communities Iike Roseville are seeing more and more residents settle in. People are choosing cities like Roseville over more expended, crowded environments like San Francisco and Los Angeles.
For real estate investors and rental property owners, this means there is plenty of opportunity when you own and rent out a home in Roseville. You’ll have a strong pool of well-qualified tenants, and you’ll notice that your rents have risen quite a bit over the last few years. While many experts believe those rents have peaked, this doesn’t mean there’s likely to be a decrease in what you earn. They’re stable, and you can expect to reasonably raise the rent at renewal time.
Vacancy should not be an issue, especially if your property is currently occupied. Those rising rental rates have been keeping people in place, so there’s a stronger likelihood now and throughout the rest of the year that you’ll retain your residents and achieve those time and money-saving lease renewals.
Interest Rates Will Keep Sales Slower than Normal
The real estate market in Roseville has always been competitive, and it remains so even now, when a lot of homebuyers are putting off the purchase of a new house. Mortgages are still pretty expensive, with interest rates not yet ready to come down. In April of 2024, most homes were spending an average of 45 days on the sales market. An average of two offers were being made before one was accepted. It’s still a seller’s market, it’s simply important to be prepared as you approach that market.
It’s not impossible to sell a home. However, until mortgages become less expensive, we expect that more homeowners and potential home buyers will stay where they are. This is also contributing to a strong and profitable rental market in Roseville.
New Tenant Protections to Know
It seems there are always new laws to discuss when we’re talking about any rental market in California.
Tenant protections are strong in our state, and these are perhaps some of the most important legal changes that you need to be aware of when it comes to how you deal with tenants this year:
- Security deposit limits are changing. Beginning in July of 2024, you cannot charge more than the equivalent of one month’s rent in a security deposit. It does not matter if your property is furnished or unfurnished; one month’s rent is as much as you can collect. There is an exception here; you can charge up to the equivalent of two month’s rent if you’re renting out no more than two residential properties with no more than four units, total.
- Landlords cannot prohibit their tenants from storing mobility devices such as e-bikes and motorized scooters inside of their properties, as long as those devices follow all safety requirements.
- No-fault eviction requirements became a bit stricter. If you’re removing a tenant from your property in order to move into the home or to allow a family member to move in, that residency has to begin within 90 days of the tenant moving out, and must last for at least 12 months.
Always stay up to date on the changing laws and the proposed legislation that may impact your relationship with your tenants and the way you rent out your property. Legal mistakes are costly.
Demands Are Shifting: Smart Home Tech and Energy Efficiency
What are people looking for when they buy or rent a home in Roseville?
All of the usual priorities still apply. People are seeing a desirable location, with good schools and proximity to shops, restaurants, and entertainment. They want value, too, and a price that reflects the market.
Lately, both buyers and renters have been prioritizing two important things: smart home technology and energy efficiency. Luckily, those two things are closely related.
- Smart Home Tech
We’re seeing a surge in things like video doorbells and other security systems as well as digital keypads and locks. Smart thermostats and lights are especially popular. Tenants are looking for access to high-speed internet and the convenience that comes with integrated homes that are easily synced with their digital assistants (think Siri and Alexa and Google).
- Greener Residential Homes
There’s a new sense of urgency when it comes to sustainable living, as well. Today’s Roseville tenants are looking for ways to save money and conserve resources. Energy-efficient appliances are important. LED light bulbs are better for the environment and electric budgets. Tenants and buyers will appreciate things like low flow plumbing fixtures and irrigation systems. Be prepared to offer these upgrades if you want to remain competitive and charge as much as possible.
These are the market trends we see in Roseville, whether we’re talking about sales in the real estate market or rentals in the long-term residential market. We can also tell you that short-term rentals and vacation homes continue to earn a lot of money for owners. If you are looking for an investment property, there’s a lot of opportunity in Roseville right now. If you already own a property or several properties, you’re well-positioned to do well in the current market and throughout the rest of the year.
We’d be happy to give you some customized advice for your property or portfolio. Please contact us at Action Properties.
