We started the conversation last program about affordability. Making sure that we have places to house people, which splashes over from purchases to the rental market.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: There’s been a significant shift in the rules of the game of landlord/tenant relationships. They have impacted a lot of people.
Bob Nelson: Well it’s interesting because I’m not exactly a casual observer of that particular thing. I’m dealing with them on a daily basis. The people that have been traumatized the greatest are the mom and pop landlords who own maybe two or three duplexes and a house or two and so forth. And they’re holding those as their retirement account. When they retire, that will generate the income that will support their lifestyle. So they’re really dependent upon this. And all of a sudden the government is stepping in and telling them what they can do. How much they can rent things for, how much they can change it. And they’re throwing up their hands in frustration.
Marcia Edwards: And the Rental Owners Association is getting very, very high in membership right now.
Bob Nelson: Oh my goodness, yes. And it’s very valuable.
Marcia Edwards: It’s a great resource, I think you should take a look at that.
Bob Nelson: Yes.
Marcia Edwards: Or get professional management because professional managers are going to know how to get people out of the property when you need them out. And find a way to navigate the pricing so they can catch you up with the marketplace. So a lot of people I think were caught off guard when the lights came on and they took a standard of a 7% increase as a maximum on the rental increases.
Bob Nelson: It’s actually seven plus the CPA which makes it a 10%.
Marcia Edwards: Right, right good point.
Bob Nelson: I know people who own apartment complexes that have been nice to their tenants for quite a period of time, not wanting to raise the rent more than about 5% or so per year. And interestingly enough, rents have almost doubled in two and a half years. So you can figure that if you haven’t been paying attention to what’s happening around you, it’s you’ve decided now that you need to sell the property. You’re offering the property for sale with rents that are so significantly low, it impacts what you have offering for sale. And the price should be able to garner.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.