There is a thirty-day supply of rentals in the Las Vegas Valley, down dramatically from spring of 2017 where there was a ninety-day supply. Why are rentals in high demand and inventory so low? There are several factors affecting this market; one factor is the low inventory of affordable properties available for sale, making it difficult for buyers to find a home.
Buyers making offers and losing out on properties to higher bidders or cash buyers are getting frustrated and putting buying “on hold.” These frustrated buyers are renting apartments, condo’s, townhomes and single-family homes in lieu of purchasing. They may be back in the market but not until the market dynamics change.
Millennials, the 26 to 34-year olds, for the most part do not want the responsibility of home ownership, and they prefer to spend their money on experiences, not a mortgage payment. Many in this age group are also carrying large amounts of student debt, which is impacting their ability to save a down payment or afford the monthly payment.
Vacancy rates have dropped dramatically over the past few years; from 9.48% in 2015 to 3.1% in 2018. This demand has also pushed up overall rental rates.
This is good news for landlords, apartment owners, and Real Estate Investors.
Windermere Prestige Properties has many Rental Homes available; long term and short term. To find out about these offerings go to: www.finvegashomes.com or www.lakelasvegasvacation.com
There are approximately 160 current Special Use Permits in the City of Las Vegas for Short Term Rentals. The City of Las Vegas has voted on what is really a ban on short term rentals. Current permitted vacation rental homes will be grandfathered in under their original rules.
City of Las Vegas – New Rules
The new law requires any new permits to be limited to owner-occupied homes. In other words, a maximum three bedroom home could apply for and potentially be approved for a special use permit. The home would have to be owner occupied and with the permit the owner could rent out a bedroom or more in their home on a short term basis. If the property is located in a homeowner association, the HOA rules would apply. It is likely that under these new rules, fewer people will apply for the permits. Currently only 1% of the short term rentals in the City of Las Vegas are owner occupied.
Short term rentals are properties that are rented for fewer than 30 days. The owner occupied short term approved rentals must have no more than 3 bedrooms and be at least 666 feet from the nearest other short term living unit.
Real Options for Investors looking to participate in the Vacation Rental market
If you are considering investing in Vacation Rental type properties in the Las Vegas area, we recommend sticking with the approved high rise developments that are zoned hotel/condo and have licensed hotel http://www.lakelasvegasvacation.com operators on site to manage the booking and guest processes. Contact your Windermere Real Estate agent to find out more about this legal option.