In early February 2021, one of our tenants informed me that he has just received a military order to be transferred to Georgia. I asked my agent to put the house on the market. We did a local market search, and increased the our rent from $2050 to $2200. There were multiple applicants. We selected one with 800 credit score and signed the lease in 1 week. Previous tenant moved on on 2/26. On 2/27 and 2/28, my handyman worked there to make the house into move-in condition, and the new tenant moved in on 3/1. Since the previous tenant paid rent till 2/28, I did not miss a single day of rent.
Another house: Tenant bought a house and moved out 2/28. This house had some water leak that we wanted to fix first, before putting the house on the market for showings. We increased the rent from $1995 to $2200. My agent started the ad on 3/7 Sunday, and the ad said that showing starts on Monday 3/8. However, on 3/7, multiple people came to see the house. My hangdyman was still working in the house; he had to tell them to come back tomorrow and he had to lock the door. 3/8 morning, multiple applications were submitted. 3/9, more applications. We selected one with 771 credit score. The lease was signed on 3/12. They will move in on 3/20.
My wife and I have a dozen houses in this area and we have been landlords since 2011. It has never been this hot since 2011 here. One year ago, no one could have predicted this.
In the past years in my neighborhood, typically, there were about 20-30 houses for rent on the market. This year, for my first house above, there was only one other house for rent at that time. Total houses for rent on the market: 2.
For the second house above, there were two other houses for rent. Then after 1 day, 1 house disappeared, presumably they signed the lease already and they took it off the market. Total houses for rent on the market: 2. And the other house was much smaller than my house.
Houses, both for sale and for rent, seem to be snapped up quickly.
I don't think any expert in my neighborhood would have predicted this several years ago.
It just happens from time to time, and those who are long term and waiting would benefit.
It pays to be persistent, patient and long term.
By David Meng, author of book "The Intelligent Small Investor"