In San Marcos, I’ve noticed some higher rents, but the places remain vacant for two to three months. If you have the unit vacant for 2 months at say $2,000 ($4,000), and figure the rental return for 12 months that comes out to an effective rate of $1,666 per month. That about what we rent for 2400 sq ft.
The landlord can charge whatever he wants for rent. But when I comes time to do the books, the rental rate per month is determined by the money recieved in a year divided by 12.
As a landlord, raising the rental rate does not necessarily increase you income. It can reduce it.
I find it hard to come to the conclusion that rental rates are going up.
