How Will Inflation Affect The Cost Of Maintenance For Rental Property Owners
Inflation is here and although many economists say that it’s currently at 7.5 percent, the reality is that in some cases, inflation seems to be much higher.
The big question is how will inflation affect rental property owners in Portland Oregon and the United States?
In this article, we will answer this question and offer you some tips on how inflation is going to affect rental property owners in the months ahead.
Understanding The Impact Of Inflation On Rental Property Owners
Rental property owners have had a terrible time over the last 24 months due to COVID-19 related lockdowns and eviction moratoriums.
Some of the ways that inflation will affect rental property owners include:
Fuel – There’s no denying that higher fuel costs are affecting everyone nationwide, including in the PDX area where gas prices are now averaging more than $4.30 per gallon.
Labor – Besides rising fuel costs, landlords will also have to pay more for labor as well since contractors, handymen and gardeners will charge more to work on their properties because it will cost those companies more money to keep their trucks on the road.
Supplies – If you follow the news, you know that the cost of supplies has been increasing in the last 6 months due to the supply chain crisis since many parts that are manufactured in China are not being shipped to the United States as they once were.
Taxes And Insurance – Rental property values are increasing rapidly in the Portland area and with those increases also comes higher costs for renters as well because when a property is more costly to insure, the owner will have to pass along those cost increases to their tenants.
What To Expect In The Next 6-12 Months
With inflation already at a 40 year high, the big question is what can landlords expect within the next 6-12 months?
Some landlords will have tough decisions to make as the unavailability of parts and the higher cost of labor make mean that they delay repairs and maintenance at their properties for weeks or months at a time.
In other cases, landlords may have to cut services or amenities to avoid raising rents or they will be faced with having to raise rent prices.
As inflation also makes it more difficult for homebuyers to buy real estate in the Portland area, this also means that those who would be home buyers will delay their purchases, remain in the rental market, continuing to drive up rents.
Contact Rent Portland Homes – Professionals
At Rent Portland Homes – Professionals, our team has decades of experience managing rental properties in Beaverton, and across the greater Portland area.
Hiring an experienced property manager means we will keep your costs low while providing you with peace of mind that your property will be managed efficiently.
To learn more about the property management services that we can offer you, contact us today by calling (503) 447-7735 or click here to connect with us online.