Many experts in the field agree that there is likely to be an economic recession within the next few years. This can impact the housing and rental market, but it is far more likely to affect unemployment rates. This can impact the average asking rate for rent, as well as the applicable interest rates on mortgages, but it will not negate the necessity of housing.
It is likely that the prices of homes may flatten over time. If they fall, it will be only a very slight impact. However, the recession is likely to have much less impact than the recent Great Recession and is projected to last for a much shorter period. Rather than panicking, it is important to keep in mind the general impact of supply and demand. There are not more houses than the market demands, so there will be little affect to the housing market. In fact, an economic recession may actually benefit the rental market. Those who may wish to buy houses may rent instead while waiting for the uncertain economic times to pass.
What to Do
Keeping your tenants on your rental property is vital during an economic recession. Vacant units will rack up expenses and will bring in no income. You may wish to consider lowering your rent, as a tenant that pays less money will still bring in more income than a vacant unit. Know your market and compare your rental rates with that of your competitors. Consider offering extra incentives to keep your tenants on your property.
In addition to these steps, you may want to ensure that you have 6 months’ worth of your expenses in savings. This will help to combat the negative impact that the recession can have on your business. To learn more about keeping your business flourishing during a recession, contact us at the Keyrenter in San Antonio today!