What’s in? What’s out? What’s the latest rental gossip about?
We’re here to tell you. Understanding what’s hot in 2024 will allow you to have a more successful experience as a San Mateo real estate investor. Even if you’re very new to the real estate game, you surely understand that it’s essential to stay on top of rental trends in order to make savvy investment decisions.
San Mateo, California, is a popular place to own rental properties because of its close proximity to the Bay Area and Silicon Valley. There’s a huge demand for rental property here, and the demand is driving up already high prices.
Let’s take a look at the hot rental trends shaping San Mateo’s rental market in 2024.
Rising San Mateo Rental Prices
Rental prices in San Mateo have been on the rise and this trend will continue in 2024. The average rent, right now, for an apartment in San Mateo is around $3,300 a month. The rental market here will continue growing and prices will continue rising. Even those Californians who are escaping cities like San Francisco are finding a way to make communities like San Mateo their home. Thanks to the remote work trend sticking around, a growing number of people can live where they choose.
An increasing number of those people are choosing San Mateo.
Luxury Trend Watch: Demand for Upscale Apartments
The demand for luxury apartments and homes in San Mateo is increasing as people are more willing to pay for the comfort and convenience of these modern residences.
In 2024, expect to see luxurious apartments with updates such as stainless appliances, granite counters, and hardwood floors. In buildings and communities, tenants want features like fitness centers, swimming pools, clubhouses, and high-tech amenities. The demand for such homes will be driven by the young professional market who are looking for a comfortable and luxurious lifestyle that meets their needs. The tenant pool in San Mateo is generally comprised of high earners. The inventory of rental homes on the market will most certainly reflect that.
Growing Concern with Sustainability in 2024
It’s not just luxury that tenants in San Mateo are after. They also want to feel good about not harming the planet.
There’s been a growing focus on keeping properties green and prioritizing sustainability.
Did you know that residential rental properties, on average, use more energy and natural resources than properties that are owner-occupied? This surprised us. Obviously, the human behavior is driving this usage, not the property itself. But, if there are ways to make your San Mateo rental property more efficient, now is the time to invest in those upgrades.
As more renters become committed to the environment, they are seeking out rental homes with sustainable features like energy-efficient appliances, smart thermostats, and solar panels. To stay competitive in a market driven by these things, you’ll want to consider investing in sustainable upgrades for existing rental properties or building new properties with sustainable features.
You don’t have to completely renovate your property to be zero-waste and completely green. However, if there are some small and potentially impactful changes that you can make to increase the sustainability of your property, tenants will notice. You’ll be competitive on the market, and you’ll notice lower energy bills and less maintenance. Here are a few ideas:
- Replace older appliances, which are likely acting as energy vampires. Install efficient models that have the Energy Star rating.
- Switch out your fluorescent light bulbs for LED bulbs. You’ll possibly never have to replace those bulbs again.
- Seal doors and windows to reduce warm air escaping in the winter and cool air escaping in the summer. This saves energy and also creates a more comfortable living environment for your residents.
- Check your water heater settings and lower it to 120 or 125 degrees (no lower than 110).
- Install smart thermostats that automate room temperature.
These updates and upgrades will do wonders for your property value, decrease utility bills, and help your property to stand out in the San Mateo rental market.
Personalized Living Spaces in San Mateo Rental Homes
In 2024, tenants will be looking for rental properties that give them the opportunity to customize their living spaces. They want their home to reflect their personality, even if they’re renting.
You’d be smart to hold space for this.
As per recent surveys, tenants are looking for properties that offer their style and preference of living space. The trend among rental properties will be to provide leasing opportunities with customized packages or modules that offer the tenant the freedom to create a personalized living space. Maybe offer to paint a wall or provide an optional home security package. If there’s outdoor space, give them the freedom to decorate as they’d like. Let them plant flowers, for example, or install raised garden beds.
Updated California Rental Laws
You rent out property in San Mateo, so you understand the strict rental laws that California has in place.
By now, you have likely grown accustomed to the requirements around rent control and just cause evictions.
Are you up to date on the new organic waste laws that are in place for multifamily buildings?
Are you aware that the security deposit limit will change this summer?
Pay attention to the ever-changing rental laws that impact your property and the way you work with tenants. The security deposit limit is dropping from two months’ rent to one month’s rent. You’ll have to make sure your lease reflects the change.
Tenant protections are more than a rental trend; in California, they’re standard practice. You need to stay up to date on all laws and policies so you can stay compliant. Nothing will be worse for your bottom line than a fair housing fine or a penalty because you waited too long to return the security deposit.
Technology Trends for San Mateo Rental Homes
Tenants are looking for well-maintained rental homes in good neighborhoods. That’s nothing new.
They’re also looking for some serious technology when they rent a property. This is a fairly recent trend that we tell all of our investor and landlord clients to take seriously. Tenants want ease and convenience, and smart home tech provides that.
Our job as your San Mateo property manager is to help you understand what’s worth your investment when it comes to upgrading and providing these amenities – because this tech is definitely not cheap.
The appreciation high quality tenants have for smart home technology will only grow, and the property owners and managers who can provide it will have an easier time attracting and retaining high-quality residents.
There are additional benefits to installing smart home technology in your investment properties.
- The technology helps you as an owner, too. By remotely managing various systems within properties, such as HVAC, lighting, and security, energy costs can be reduced for property owners and for tenants, even while efficiency and productivity is increased.
- You’re providing your tenants with greater control and convenience. They’ll respond favorably to rental homes offering smart home technology. You’re likely to increase your tenant retention rates, thus avoiding expensive turnovers and vacancies.
- Smart locks allow remote access, which is both secure and convenient. The smart locks or digital keypads allow for easy property showings, and they also allow for maintenance workers to get inside the property without someone running over there to meet them or make another key.
When you’re willing to invest in these technologies for your rental property, you’ll find you have access to a variety of advantages, from efficiency leasing and managing and maintaining your property to cost-savings to increased tenant retention and higher rental values.
Short Term Rentals in San Mateo
Another trend in the San Mateo rental market that’s impossible to ignore is the rise of short-term rentals. These are often vacation properties. They’re furnished. They are available to guests who want to stay a few days, a few weeks, or maybe even for the entire winter season.
San Mateo is a popular tourist destination. More and more visitors are choosing the privacy and the convenience of a private home over a hotel when they’re in town.
With the popularity of apps like Airbnb and VRBO, the market for short-term rentals is booming. In San Mateo, there’s a steady demand for these homes, and as a result, a lot of owners have decided to rent out properties for fewer than 180 days (the local legal definition of a short term rental).
It’s also important to remember that there are some legal implications to consider when it comes to short-term rentals, so be sure that you understand the local laws and regulations before diving in. San Mateo has recognized the higher demand for short-term rentals, and you’ll have to apply for and obtain a permit from the city before you rent out a home in the short term. You’ll also have to ensure your Transient Occupancy Tax (TOT) is paid.
What do these trends mean for your rental property right now? We can have a conversation about that.
Please contact us at Sharevest Property Management.
