As property managers in Council Bluffs, Iowa, we are always following the trends in the local economy. It has a huge impact on investment opportunities in our region. Local economic factors also drive rental prices and vacancies.
If you’re wondering how the local economy in Council Bluffs impacts our property management services, we have some information for you.
Economic Factors in Council Bluffs, IA
What are we really talking about when we talk about the local economy?
We’re talking about employment and industry, mostly. Council Bluffs, IA has been growing pretty significantly over the last few years. There’s a new technology sector in the area that has contributed to this growth, and it’s become a desirable location for start-ups and new businesses.
The local infrastructure is sound, and local and state governments provide tax advantages and benefits to businesses that supply jobs and contribute to a stable and growing economy.
The unemployment rate is lower than the national average. Furthermore, the job market has increased by 1.6 percent just over the last year.
Major employers in Council Bluffs include:
- Walmart
- Target
- State Farm
- Southwest Iowa Medical Center
What does this mean for property management? It means we have an easy time working with investors from out-of-state who want to buy property here. This is a lucrative market that has a low cost of entry and promises recurring and consistent rental income in the short term as well as great appreciation and equity in the long term.
Inflation and the Council Bluffs Economy
Rising inflation has had an impact on every part of the economy. The housing market has been especially affected, and the rise in prices across the board for goods and services has led to higher home prices, rental values, and mortgage costs.
With interest rates climbing and other costs associated with homeownership increasing, a lot of would-be home buyers have decided to delay their plans to buy a home. They’re not buying in this market, against the backdrop of inflation and higher home prices. This means they’re continuing to rent instead, which is good news if you’re a rental property owner.
There’s been a strong trend to sell over the last couple of years, thanks to higher home values. We are always asked by investors whether they should sell now. We don’t recommend it. In fact, if you have an interest rate that’s less than four percent, you should consider keeping that property. Even if you are moving into a new home or out of the area, hold onto the property and rent it out. The tenant pool is strong, and the demand for high-quality rental housing is high.
Here’s what you can expect from the local economy and how your property manager can help you manage it, with inflation being what it is:
- Rental values are higher
Rents in Council Bluffs have risen, and while there is some evidence that they may have peaked, the landlords we work with are earning more than they were a year or two ago.
There are several reasons that tenants are paying more to rent your property.
- High demand. The population of Council Bluffs has grown steadily over the last few years, and as we already mentioned; housing prices are higher and interest rates for mortgages are rising. Renting is more affordable and attractive to many people. The high demand for well-maintained, attractive rental properties in desirable locations has driven up prices.
- Inflation. Tenants have no choice but to adjust to climbing rental prices. This will be true whether we’re looking at a home that you’ve just listed for the first time or a lease renewal that you’re negotiating with an existing tenant.
Rents are higher. But, so are your expenses.
- The cost of renting out a property
Your rents are higher, and if you’ve recently checked, your home value is higher, too.
Great. But, there are also rising expenses, especially when you look at your maintenance costs. You might also find you’re paying more for your accounting services, legal advice, insurance policies, and property management in Council Bluffs.
Property taxes could be higher, too. Your property has likely increased in value over the last couple of years. That means you will owe more. It requires careful budgeting and reporting.
As you budget for unplanned expenses and potential costs going forward, make sure you factor in the rising expenses for anything you or your property might need.
Council Bluffs Property Management and the Economy
You expect your Council Bluffs property managers to help you find a tenant, collect rent, enforce the lease, and respond to maintenance.
In an economy like this one, you need a management partner that’s willing to do much more than that.
You need solid investment advice that comes from a clear understanding of the local economy. You need a management partner that knows the market, understands the properties, and follows the needs of tenants.
Here’s how we work with our property owners and investors to ensure they’re leveraging what the local economy is doing for the rental market:
- We provide an accurate rental value for your property. While you can charge more in rent, you also need to remain competitive in the market. Access good data and conduct a comparative rental analysis so you know what your competition is asking and what you should be earning.
- We invest in preventative maintenance. When you respond to repairs immediately and you stay one step ahead of the work that keeps your property safe, functional, and attractive, you’ll find there are fewer emergency repairs that need your attention and your money.
- We contract with a list of preferred vendors and contractors. Not only is inflation driving up the price of maintenance and supplies, but it’s also creating a bit of a labor shortage. Establishing relationships early with professionals helps us keep costs low.
If you have questions about the local economy and how it impacts your investments, we’re the experts to talk to. Contact us at Kouri Management when you’re looking for Council Bluffs property management. We provide expert leasing, management, and maintenance services in Council Bluffs and Omaha, Nebraska.
