Rental applications in many areas are down by about 15% to 20%. It seems that the number of phone calls from prospective tenants has declined quite a bit. And, I have to stop and wonder why.
In some areas of Brevard county as many as 60% of sales are short sales. If their short sale is approved, we know that these owners won't be purchasing another home. Or, if their home slips into foreclosure, they won't be able to buy.
So, these families should be out looking for good, clean affordable rental houses, right?
But, the number of empty rentals has increased, and the number of phone calls on rentals has decreased.
Has the number of empties increased because some rental house owners are still reluctant or unwilling to rent to people with blemished credit?
As a landlord, I have rented to a number of previous owners that faced short sale or foreclosure. Many are good, hard working people, that got in over their heads. Next week, I have a family moving into one of my rentals, that has just gone through a short sale.
The number of empty rentals is high, the number of rental calls are low, and we have a high percentage of owners going into short sale or foreclosure in our area. We have heard that some families are moving in together. Sons and daughters, with their small children are being forced to move back in with their parents, for financial reasons.
But, where are the rest of these owners going?
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County, Florida's Space Coast Real Estate & Investing
I specialize in Residential, Investment & Relocations. I can help with Short Sales and Foreclosures.
I buy, sell, rent, own and manage Investment Property.
that for you
Sandy -
I have a few landlords I am in contact with on a regular basis. Their theory is families are combining. Moving in with parents, etc.
Hi Sandy ~ I think Joel's right - now entire families are boomeranging back to their parents' / grandparents' homes. Around here it seems everybody is doing rental sharing - ads for roommates wanted are through the roof.
Liz
Sandy, I don't have numbers for Larimer County - but it seems if some having difficulty paying a mortgage, the same might be true for rent. Some get out alive, but others are in serious shape, especially if they have lost their jobs.
Sandy
I also agree that many families are moving into their parents homes.
Good luck and success.
Lou Ludwig
Ya know Sandy... when the downturn first began I thought it would be a boom to me as a landlord... Supply vs Demand dictates that rents should increase as more people are foreclosed on and look for rentals. But that never panned out... if anything- our rental rates have declined slightly as more inventory becomes available.
The theory of combining families seems to be the only real explanation that makes sense.
Sandy, I came on to see the other responses and I believe they're right. I did just hear of a woman with two children moving back in with her mother....for an indefinite amount of time. I'm not a realtor but I do hear this quite often.
We had asked the same question -- a lot seem to be moving back in with family --
Sandy, I have come to the same conclusion! I have a rental that I have been trying to rent since Oct. and just cannot find a good tenant who wants it!
I wonder myself. Once the credit ruined who is going to rent to them anyway?
I know that quite a few people have left the area, espically those in the building trades as housing starts are way down and the boom in Telluride has slowed to a trickle. I agree with comments above, I think families are moving in together, one of our listings the young family returned to CA. and moved in with parents.
Wow, That is an excellent question Sandy! I've seen some that rent back from the investor owner of the property but the blemished credit will be an issue for years to come...
Have a glorious Sunday!
Paul
I've had some turnover in my rentals this year. One of my families, the father (who was retired) got sick so they moved in with their adult son. Another of my families moved to Georgia because the tenant got a new job there. My guess is that families are either combining like was mentioned or people are moving to where the work is. Brevard seems to be mostly a space industry/engineering based county. If that work isn't around, people need to go where the work is.
Sandy - Being on the Emerald Coast of Florida, we are seeing the same thing. There is a school closing in Niceville due to declining enrollment. People are moving out of state. My part of Florida does not have much employment other than service industries or military,
Joel, I agree with you and your friends.
Elizabeth, That's interesting that you've noticed renting out rooms has increased dramatically.
Mary, Great point - if they can't pay their mortgage, many couldn't pay rent if it's due to a job loss.
Lou, Interesting, thanks for your feedback.
Mike, I'm with you, I thought the same thing. I thought that the demand for rentals would go up, but that just hasn't been the case.
Carole, We are hearing about this in so many parts of the country.
Bob and Carolin, I think that many are moving back in with their families.
Caren, I feel your pain, We are in the same situation. We are having a difficult time finding good tenants for some of our empties.
Gary, There are many landlords that are still unwilling to consider an owner that has been through short sale or foreclosure. It depends on the individual's situation. Are their other payments current? Or have they paid nothing.
Nick, It's interesting to hear what's going on around the country. Many are moving out of state to move in with relatives.
Hi Paul, Good point -some are doing lease backs. You are correct, in that these people will be living with the blemished credit for some years to come.
Rob, I have also seen people moving to where the work is. I have seen several tenants lose their jobs, unable to get a new one. Times are tough for so many.
Wendy, Hmm, we have been hearing that some people are moving out of state. It would be interesting to see a real "count" on the numbers of people leaving. It's tough, in areas such as yours. Hang in there.
Sandy my guess is a lot of them are moving in with relatives for now. If you don't have a job you can't pay your bills.
Sandy,
More and more families are getting back together in a good way??
Merry Christmas,
Ann Hayden in Wildwood, MO