Inflation is on the minds of everyone these days as it’s the highest that it’s been in 40 years.
With no end to inflation in sight, most economists are wondering how inflation is going to affect the rental market in 2022 and beyond.
In this article, we will break down the impact of inflation on the rental market and offer your insight into how impacting landlords and tenants.
Inflation Affects Both Landlords and Tenants
Everyone knows that during inflation, costs go up; and the same is true for the rental market.
Landlords get charged more for common repairs because service companies have to charge more to come out to properties now due to having to pay higher prices at the gas pump.
Sadly, it’s also not uncommon for landlords to postpone property improvements during inflationary periods as well because supplies cost more.
This is especially due to supply shortages following COVID-19 and thanks to rising costs, many landlords can’t afford to make the same improvements that they would have made just one year ago, and it’s not uncommon for them to stick with essential fixes.
For some tenants, inflation will affect their ability to pay the rent because some landlords may increase rents (in non-rent control states) to compensate for their rise in costs, while others the average tenant will eliminate on-demand and other non-essential services so that they can cover rent increases.
How Long Will Inflation Last?
The big question that everyone wants to know right now is how long will inflation last? The answer to this question is anyone’s guess, as economists are now saying that inflation may be here for some time.
Even though some people have said that landlords love inflation, the reality is that in this inflationary period the opposite is true because, interest rates are going up compared to past years where rates stayed low during inflation.
One thing that will save owners time and money during inflation is hiring an experienced property management company to professionally manage their rental properties.
At GoldenWest Management, our company manages rentals in San Diego, Phoenix, and Las Vegas.
We will save you the time, money, and hassle of managing your rentals yourself so that you can focus on collecting passive income from your rental property while living your life.
Contact GoldenWest Management
To learn more about the property management services we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.
