We know that most investors and landlords are very much grounded in the present moment. You have to be. There are deals to close and rent to collect.
As Hanford property management experts, we’re always thinking about the future. Our job is to see what’s coming so that we can help our investors and owners position themselves for the shifting market and changing tenant trends.
So let’s talk about future-proofing your Hanford rental property. Are you prepared for emerging trends and technologies?
We’ll make sure you are. Here’s what we’re watching and how we’re responding.
Understanding the Current Hanford, CA Real Estate and Rental Market
We’re going to talk about the future, but in order to do that, we need to understand where we are and how we expect things will move forward from here.
California has long been a hotbed of real estate activity, and smaller cities like Hanford have seen some serious growth over the last several years. While there has been a slight leveling off in terms of rising rental prices, the current average rents around here are just below $2,000 a month, which is a comfortable place to be for this market.
The rental market is evolving. Investors are turning their attention to communities like ours because the cost of entry elsewhere in the state remains high, and fairly unapproachable. Investors can buy a good investment property in this area without taking on too much debt or liquidating all their cash.
Here’s how things look right now in our market:
- Shifting Rental Demand
Rental dynamics are experiencing a noteworthy shift in our state. Amid an exodus from urban areas to more spacious and affordable suburbs, rentals in some of our major city centers are seeing a decrease in demand. There has not necessarily been a decrease in rental demand – more like a redistribution. And, Hanford has been a beneficiary of shifting demographic trends and rental demand. We’re seeing well-qualified tenants looking for well-maintained properties in good neighborhoods. If you’re an investor who is looking for a profitable acquisition, consider something in this market that has the potential to attract those good tenants. We can help you find it.
- Focus on Tenant Retention
Most of the property owners we work with are considering proactive tactics that keep their properties occupied, such as flexible lease terms or pet-friendly policies. We want to hold onto tenants. That’s one of the best ways to future-proof your rental property: make sure your residents are satisfied and willing to renew their lease agreements. Providing an attractive and updated rental home with all the convenience that good residents are looking for is another great way to attract the growing pool of suburban renters who may want to leave the center of cities in order to achieve a higher quality of life.
- Remote Work’s Impact on the Rental Market
Remote work is not going away any time soon, and we can tell you that it’s had a big impact on the rental market. It will continue to do so, and we strongly encourage owners and investors to make sure they’re positioning their rental properties to attract this particular tenant demographic.
The effect of this changing workforce is leading tenants towards new housing preferences, and it’s also requiring property owners to work a little harder in attracting those residents. The tenants who work from home can live wherever they want. Instead of staying in San Francisco or Seattle for their jobs, they can choose any place to call home – like Hanford. This allows them to maintain their salaries and their work stability, which has generally been a win for both tenants and landlords.
Laws and Regulations Impacting the Future
California has always been known for its strict tenant protections.
Those laws are getting stricter. To future-proof your rental investments, you’ll have to be prepared to understand the new laws and comply with them in order to successfully rent out property.
- Security deposit limits have changed, and there are also new laws around providing before and after inspection photos when you’re withholding any or all of the security deposit.
- Landlords are now required to approve applications in the order in which they were received. If you’re charging application fees, you do not have the option of gathering a bunch of applications and choosing the tenant you want. As soon as you have a completed application that meets all of your rental criteria, that’s your tenant.
- There’s a requirement to provide on-time rental payment information to credit reporting agencies if your tenant requests that. You can charge them for this service, but you must provide the rental reporting to at least one agency if it’s requested of you.
- Tenants now have extra time to respond to an eviction proceeding that has made its way to the courts. This law, AB 2347 went into effect on January 1, 2025. Instead of having five business days to respond to an eviction notice, or a Summons and Complaint, tenants will now have 10 days to respond. The law also clarifies the timeline for filing motions to strike the complaint, which is now between five and seven days after receiving notice. Default evictions occur when tenants do not respond to the unlawful detainer lawsuit. This new bill will prevent those evictions and give tenants more time to access legal help or prepare a defense to the pending eviction.
- No-fault eviction requirements have also become a bit stricter. If you’re removing a tenant from your property in order to move into the home or to allow a family member to move in, that residency has to begin within 90 days of the tenant moving out, and must last for at least 12 months.
Always stay up to date on the changing laws and the proposed legislation that may impact your relationship with your tenants and the way you rent out your property. Legal mistakes are costly.
Demands Are Shifting: Smart Home Tech and Energy Efficiency
What are the best tenants looking for when they decide to rent a home in Hanford?
All of the usual priorities still apply. People are seeing a desirable location, with good schools and proximity to shops, restaurants, and entertainment. They want value, too, and a price that reflects the market. But, in order to future-proof your rental property, it’s important that you’re aware of two important trends that are impossible to ignore.
- Smart Home Tech
We’re seeing a surge in things like video doorbells and other security systems as well as digital keypads and locks. Smart thermostats and lights are especially popular. Tenants are looking for access to high-speed internet and the convenience that comes with integrated homes that are easily synced with their digital assistants (think Siri and Alexa and Google). The interest in smart home tech isn’t just about keeping up with evolving technology. It’s about convenience and security; two things that are increasingly important to residents.
- Greener Residential Homes
There’s a new sense of urgency when it comes to sustainable living, as well. Today’s tenants are looking for ways to save money and conserve resources. Energy-efficient appliances are important. LED light bulbs are better for the environment and electric budgets. Tenants and buyers will appreciate things like low flow plumbing fixtures and irrigation systems. Be prepared to offer these upgrades if you want to remain competitive and charge as much as possible.
Hanford Property Management Technology Trends
We cannot talk about emerging trends without also talking about technology and how it helps us to manage your investment properties more efficiently and cost-effectively.
For Hanford property managers like us, the right tech tools can help us do our jobs and serve our owners and tenants more efficiently. We use technology to better communicate with both renters and owners. For example, we’ve been using online portals for a long time. They’ve become even more nuanced and responsive. It’s easier than ever for residents to pay rent online and request routine repairs. This contributes to fewer late rent payments and better communication. Owners use their portals to see financial statements, check maintenance invoices, and send us messages. We’re available through text and email and always on the portal.
We’re also responding to maintenance a lot faster thanks to technology. The tools we have in place allow us to track the performance of the systems and functions of your investment. We know when the last roof issue occurred and we know how old your appliances are and whether there’s anything left on their warranties. This helps us to schedule preventative maintenance services and it also allows us to advise you on what should be budgeted for future repairs and replacements.
The financial reporting and accounting statements we provide are detailed and accurate thanks to our investment in property management technology. We’re able to be more transparent with your money. Owners can get income and expense reports in real time. You can ask for customized reports that our property management software system is able to provide. You’ll always know where you stand financially.
Our platforms, software, and technology resources allow us to manage your home more efficiently and cost-effectively.
These are just some of the things we’re asking owners and investors to pay attention to as we all begin to plan for the future. Questions? Please contact us at The Equity Group.
