According to the “Comprehensive Housing Market Analysis” of the US Department of Housing and Urban Development (HUD), Henderson/Las Vegas area rental vacancies dropped to 5.1% in 2016, down 0.6 percentage points from the year before. Housing market experts also anticipate that we will see significant employment growth in the construction, hospitality, and technology sectors as well. When combined with steady population growth, this could have a positive impact on the rental market as well.
Additional Statistics to Be Aware Of
Basically, further research has revealed that the growth in the Las Vegas market will exceed that of any other city in the US by nearly 4% by the end of 2017.
Here are some additional statistics for 2017-18 regarding the rental market to be aware of:
- Clark County median household income – $51,214
- Las Vegas rental vacancy rate – 5.1%
- Median Las Vegas rental rate – $1,000/month
- Number of Las Vegas visitors in 2016 – 42.3 million
- Percentage of population that rents in Las Vegas – 48%
- Population of the greater Las Vegas MSA – 2.2 million
- Unemployment rate in Las Vegas – 6%
Furthermore, the number of days that properties stay vacant in the Henderson/Las Vegas market is decreasing while at the same time, we are seeing steady increases in rental rates. With the demand for rentals increasing throughout many areas in the city, the basic economic formula looks like this:
Decreased supply + increased demand = rising rental rates
If you’ve been interested in investing in rental properties such as single family homes, condos, or townhomes, be aware that inventories are shrinking and market values are rising. And it doesn’t appear that this trend will be ending anytime soon.
A Word About the Tenant Screening Process
As a rental property investor, property management companies employ a very rigorous screening process in order to attract higher quality tenants. Unfortunately, this is an area where inexperienced landlords and property investors lack considerable expertise. Property management companies strive to rent to better quality tenants and accomplish that by having applicants undergo a rigorous screening process that includes:
- authenticity verification of applicant’s personal information
- background check
- contacting former landlords
- contacting personal references
- credit report
- employment and income verification
- public notice search (bankruptcies, prior evictions, etc.)
It’s unfortunate that landlords encounter bad tenants and the problems that come with them. However, utilizing a rigorous screening process can save you a lot of grief in the long run.
So remember, when screening prospective tenants is concerned, the more comprehensive it is, the better the quality of tenant you will rent to. If you’re constantly experiencing problems with tenants or having difficulty finding good tenants, you should consider talking to a property management company and discussing your needs. They would not only be able to assist you with tenant retention but help maintain your property professionally.