By Coty Thurman, July 15, 2024
At Living Room Property Management, the average renter stays in their rental home for 2.13 years. This means that, approximately every 25-26 months, the home experiences some level of vacancy as we prepare it for the next tenant. As a market-rate housing provider with average rents exceeding the City’s, this duration is influenced by several factors, including a clientele of tenants with the financial ability to purchase a home. They also have the means to cover extensive moving costs that allow them to upgrade and downgrade their living situations as needed. Notably, the tenure significantly increases for subsidized affordable housing rentals, homes designed explicitly for assessability, or homes leased at well-under-market rates.
Charging maximum market rents while managing the risks of turnover and vacancy is a delicate balance for many of our landlord clients. High turnover can lead to increased costs from vacancy periods and the expenses associated with preparing the property for new tenants. Conversely, keeping rents just under market rate by about 10% can provide a strategic advantage. This approach helps ensure that rents do not fall too far behind market rates and can be adjusted within a 12-month period, aligning with Oregon’s maximum annual rent increase of 9.9%.
By offering rents slightly below market rates, property owners give tenants a financial incentive to stay longer, reducing turnover rates. This strategy not only helps maintain consistent occupancy but also fosters long-term tenant relationships, contributing to more stable cash flows and lower management costs. It is noted the 91% of Living Room’s tenants that have occupied their rental for over 5 years are enjoying rents that are strategically placed 10- 25% under market rates. Given the national trend of tenants moving less frequently, we anticipate the average tenancy length to grow over the next few years.
For property owners contemplating whether to charge maximum market rents or slightly below market rates, it’s crucial to weigh the potential benefits of tenant retention against the short-term gains of higher rental income. A thoughtful approach can enhance property performance and a more predictable revenue stream.
By strategically managing rental rates, Living Room Property Management ensures both property owners and tenants benefit, making room for everyone to live comfortably and securely.
Coty Thurman
President & Licensed Principal Broker of Property Management
She/Her
As of January 2024, I am thrilled to announce that I have assumed the role of President at Living Room Property Management, marking another milestone in my journey within the real estate industry.
With over two decades of experience in real estate, my career trajectory has been one of continual growth and learning. From my early days as a leasing agent to eventually becoming a Property Manager and Regional Trainer, I have honed my skills and expertise in property management. My experience overseeing multi-million dollar multi-family communities across various locations, including the Portland Metro area, the Bay Area in California, and Boulder, Colorado, has equipped me with invaluable insights into the intricacies of this field.
I am deeply passionate about the nuances of property management—the problem-solving, organization, and implementation of systems necessary for success. I am committed to leading an ethical, trustworthy, and knowledgeable team to effectively manage our rental portfolio. Whether it's navigating the complexities of Oregon landlord-tenant laws or optimizing our client's investment portfolio, I am always eager to tackle new challenges head-on.
Diversity and inclusion lie at the heart of my leadership philosophy. As a biracial woman who has experienced firsthand the importance of representation and inclusivity, I am committed to fostering environments where individuals from all backgrounds feel valued and empowered. By actively seeking out and supporting diverse talent, I aim to create a workplace that celebrates the unique perspectives and contributions of each team member.
My roots run deep in Portland, having grown up in the Montavilla neighborhood and attended Marshall High School. Alongside my high school sweetheart turned husband, I am raising two wonderful children and a beloved dog in the eastern suburb of Fairview. Surrounded by supportive family and friends, I am grateful for the community that has helped shape both my personal and professional journey.
Outside of work, you can often find me enjoying quality time with my family on our back porch, attending live comedy and theater with friends, exploring the city's vibrant culinary scene, or immersing myself in the music and culture at outdoor concerts. Whether cheering on my kids at their sporting events or belting out tunes from the Hamilton soundtrack during a scenic drive, I cherish every moment spent embracing life's adventures.
Read More
- T: 503-781-6055
- coty@livingroomre.com
