Las Vegas Rents

[Joe L.]

I had a few leases come up for renewal this month and have noticed a change in renter mentality. Of the 3 expiring leases all three said they wanted to remain tenants and were willing to sign 2 year leases. The rental market for good quality homes seems to be firming up. I also just closed a 3 bedroom home in Henderson and within 1 day of posting to MLS and Craigslist had 3 applications all wanting multi year leases. This is good news for landlords who thought the hedge funds were going to ruin the rental market in Las Vegas. If you have a new property to rent or leases coming up for renewal ask them to sign multi year contracts, you will save on repairs and the expense of getting your pad ready for the next renter. No hike in rent will ever boost your returns more than a 2 year lease renewal.

[Joe L.]

These are long term holds with 3.75% FNMA 15 year fully amortized loans. They have positive cash flow even after building in an 8.3% (one month a year) vacancy rate - so if I can keep the long term vacancy to 2-3% over time that will boost my cash flow even more and they will have no debt service in 13 more years providing some extra sweet free cash flow down the road.