Birmingham Rents Going Down?

Question

I got a report for a property and the management company sent data showing that rents have gone down by $16 in the last month and down $30 over the last 3 months. Are there any active investors in the area seeing the similar results? Know any reason why this would be happening?

Thanks!

Brandon Martinez · Answer

We haven't had any drop in rents for our Birmingham properties. But I could see that happening in certain areas. Mine are in Eastlake so rents and property values have been increasing in that area.

Greg M. · Answer

No rent report is that accurate. Depending on the pool size, that could be one junky unit dragging down the average. It could also not include renewals where the rent was increased.

I'd ignore a $16/month drop as statistically meaningless.

Lane Kawaoka · Answer

I have a couple of investors in my network actively investing in the area and they have not noticed anything alarming with a drop in rents. Within the past year rents, in Birmingham have actually gone up.

It could be for that particular property that is going down in rent, the management company has overestimated how much rent they could charge and is now bringing it down to the true market rent?

Account Closed · Answer

I haven't noticed it. Invest across the area.

Hunter Terryn · Answer

I work in the Birmingham market and pull rental comps several times a day, hundreds this year so far. I haven't seen much if any decline in rents around Birmingham. In fact, we've seen rents rising over the last year and projected to continue that trend. That said, I've come across a couple instances where a report I pulled months ago is slightly higher than current. A few possible reasons:-As others have alluded to, maybe additional (or different) comps were included in the updated report that brought the value down.

-Stats of the property are off from one report to the other. When I pull comps I'm very careful to obtain and verify the most accurate details possible (beds, baths, sqft). Sometimes the zillow/realtor/redfin stats are off from what the MLS has. Even 100 sqft can make a difference like you're seeing.

-Could be truly a slight decline. Some areas are not seeing nor expected to see the same growth as most in Bham. It has me very curious which neighborhood the house was in.

All in all, a $16-30 difference isn't all that concerning, considering the variations expected in comps. Hope that helps!

Rick Albert · Answer

Thank you all!

Rick Albert · Answer

Why do you see that happening?

Rick Albert · Answer

Thank you!

Birmingham Rents Going Down?

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