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?
I buy, sell, rent, own and manage Investment Property.