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green and white title blog graphic "2024 Trends for Landlords to Watch"
February 18, 2024

2024 Trends for Landlords to Watch

In 2023, the real estate industry dealt with high-interest rates, inflated prices, and strong competition. This allowed landlords to make more money from their rental units but made borrowing money for other property investments more expensive. For 2024, interest rates are set to drop, promising a more “normal” market for 2024. Here are five 2024 trends for landlords to look out for.  

Low-Interest Rates 

Interest rates are set to drop to 6% in 2024. Because of this, landlords will see more aspiring renters. In Boston, there are already properties rented for June and September of this year according to Real Estate marketplace Boston Pads CEO Demetrious Salpoglou.

The demand for rentals will be high, which means your apartments will become even more profitable. Boston is already a high-rent location, with a median rent of $3,000 for a one-bedroom unit

Renters and Negotiation Power

The Census Bureau shared data that multi-family units will create a construction peak in 2024, with more than 1 million created in 2023. With more units, there will be more listings to choose from. This puts power back in the hands of the renter. People now want better amenities and services when they are looking for a new apartment, townhouse, or condo. If renters don’t feel happy in their current situation, they can threaten to move out.

Because of this, landlords will need to sharpen their rent negotiation skills. This will depend on the kind of existing tenant you have and how they behave with payments.

Gen-Z is Moving Out of Cities 

Originally, young adults have wanted to move to exciting vibrant cities for a new chance at life.  After the pandemic, remote work, and the rising of home and rental prices, the Gen-Z population is looking to move to more suburban areas. Also, around 45% of young adults in America from ages 18 to 29 are staying home to save money.

Because of this, landlords will need to evaluate where their rental properties are and how to move forward. Will you find properties to rent out in suburban towns? Will you look towards long-term renters in bustling cities?

Flexible Rental Trends

Landlords will find that renters want flexible leases that allow them to move into a rental space for less than a year. These include month-to-month leases, school-year leases, summer leases, and more.

Because of summer and school schedules, destination markets will increase for short-term rentals. Landlords need to determine whether to allow flexible short-term leases. These kinds of leases can offer landlords flexibility and freedom and also allow for higher prices. 

AI Technology 

AI Technology has completely changed how industries operate. For landlords, AI automates tasks like tenant screening, rent collection, and scheduling, which helps save time. We offer our secure online system that lets tenants pay their rent hassle-free. Also, the addition of AI chatbots like ChatGPT and virtual assistants makes the communication process faster and easier.   

Property managers are starting to integrate AI to analyze different market trends and fluctuations for commercial properties. These technologies will only increase in 2024.

Upcoming trends are set to change the course of the real estate market in 2024. How will you manage the changing landscape?

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