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High Rise Condos in the Rental Market
By Stephen Roberts | June 21, 2010
One of the hardest hit areas in real estate when the market crashed was the high rise condominium market. The crash left more than 5,000 empty high-rise condominiums available. The high rise condo market has been very slow to recover and has been looking for new ways to generate income. There are few buyers in a market such as this since the economy is down and financing isn’t always easy to come by.
A few condo projects such as Turnberry Towers have started renting portions of their units this year. Doing this enables them to earn cash flow on the otherwise vacant properties. Rather than sell the condos at bare bottom prices, they are renting them out to supplement the shortfalls in developers’ budgets. This also allows them to hold onto the inventory until the market turns and they can sell the condos for a profit.
Renting the properties has also proven to be a good sales tactic. Renting the condos out is a way to get bodies in the building and market the property by word-of-mouth. Since the rentals have started there has been a slight boost in sales in the high rise condominium market. The problem the high rise condominium market faces here in Las Vegas is very large and they are trying many solutions to get this problem under control. Renting may be the best option for many locals who are single or in a relationship without kids. Many of the occupants may work nearby and therefore will have a short commute to work.
For all your real estate needs and/or high rise condominium questions call Steve Roberts at 702-739-4392 or visit my website at www.hendersonrealestateonline.com!
Topics: Southern Nevada Monthly Economic Update | No Comments »