The New Rental Realities
The minute “Coronavirus” became a household word, the effect of the pandemic on the local rental market became far-reaching, creating a change some see as extending into next year. Word of nightly rentals transitioning to long term as overnight visitors decide to stay home prompted us to query a few local property management professionals to see what they’re experiencing in terms of how the rental landscape has shifted.
According to Todd Marsh of Property Alliance, his company is “definitely seeing a trend of property owners exploring long term rental options that have in the past been in the VRBO (Vacation Rental by Owner) market or short term (nightly, weekly).” Marsh noted that, because of this, he’s seeing more furnished units hit the long-term market than has typically occurred. He further explained that existing long-term rentals, which would normally attract multiple roommates, are remaining vacant a little longer, until families come along who are able to fill them. Conversely, roommates are seeking smaller studios, one- or two-bedroom units in order to have fewer people under one roof.
Jayme Angell of Summit Sotheby’s International Realty Property Management said they did witness an increase in properties transitioning to long-term rentals back in March and April due to uncertainty as to when vacation rentals would resume, but they are not experiencing an increased volume of this type currently.
However, what they are seeing something that has become a hot topic as of late: An increase in renters who move into Park City to flee other parts of the country. “Single-family homes for rent are a hot commodity,” Angell explained. “We are seeing people relocating to our community from many larger cities. Many are wishing to escape the large city living, enroll their children in school and see how they like the weather in Utah prior to purchasing a home here.”
For Rob Alday of Abode Luxury Rentals, the shift he’s seen is in the area of length of rentals vs. a change in rental type. “What we are seeing is not short-term vacation rentals converting into actual long-term rentals,” he said. Rather, “we are mostly seeing the consumer take longer vacations as they are working remotely and have more flexibility especially if their kids are out of school. So they are still being used as a sort of a vacation type of property, but people are staying for anywhere from three weeks to three months or more.” Echoing Angell’s observation, he added, “It is mostly people from more urban areas that want to get out to the mountains.”
With rentals continuing to be a hot commodity in Park City and the surrounding areas, investment properties are a great way to own a piece of the mountain lifestyle, and many new developments across the Wasatch Back are offering a variety of housing types to choose from.
To learn more about why buyers Choose Park City for investment properties, connect with Christine Grenney at 435-640-4238, or visit her website by clicking here.