More Homeowners Are Becoming First-Time Landlords

Redfin recently queried 1,900 prospective home buyers across the country about their plans for their old house once they bought a new one. Most said they would sell, but a surprising 39 percent said they would rent out the old residence. The percentage was even higher in such Western markets as Los Angeles that have recently seen strong price appreciation. It is the first time that Redfin has conducted such research. Trevor Henson, managing partner at First Light Property Management, comments, “We’ve had more calls in the last two months with situations like this than we’ve had in two years. It is definitely on the upswing.” If the trend holds, it could mean even fewer residences on the selling block in an already tight market. For a certain type of homeowner, becoming a landlord is a good call. Rents are on the rise, having climbed in each of the past three years to now average $1,435 a month in L.A. County, according to USC’s Casden Multifamily Housing Forecast. They are expected to increase almost 4 percent more next year. | Read More