Rents Down, Vacancies up in Chattanooga, Tennessee
In the last year, rental rates have plummeted in the Chattanooga, Tennessee area. I have 5 rental units and just about every one of them is renting for less than it did two years ago. A property that I used to rent for $625 a month just rented out for $550 a month. The economic downturn has really hit the landlord in the wallet.
When the housing crisis first happened I figured it would be a boon for landlords. After all, with family homes being foreclosed on and credit being tightened, people would have to live somewhere. This has not played out how I thought it would. I have talked to several other landlords in my area and they are all experiencing the same results. The conclusion that I have come to is that people are moving back in with their families. A lot of newly graduated students, recent divorcees, and singles must be moving in with friends and family members.
Last November, when the financial crisis first happened I held firm to my guns and did not drop rent for 6 months on my $425 unit. I had been getting $465 for two years and did not want to take a hit. In April 09’ I finally gave in and rented to a strong tenant for $415. I was reluctant to rent at the lower rates and it cost me 6 months of rent.
Anybody else experiencing the same kind of results?
Tags: chattanooga, cleveland, economy, rent, rental property, tennessee, vacancies, vacancy
December 29th, 2009 at 10:53 pm
Sounds like you guys experienced what we did a little more than a year ago. The bottom dropped out of our rental market, but stablized about 6 months ago. Since then, rents have steadily risen about a percent a month.
January 1st, 2010 at 7:02 pm
Hey Nashville Rentals,
I’m glad to see rents are increasing in Nashville. I hope those increases will filter into Chattanooga. I haven’t seen any big increases lately, but I don’t think I have as many units as your team. I checked out your website and it looks like you rent quite a few units.
I was able to renew another 1 year lease at the same rent rate last week and I felt fortunate. I didn’t even try for an increase since this tenant has been so good. My next renewals come up in April and I’m hoping they will renew for another year or go month-to-month with an increase.