Rental properties in LA have been in high demand, especially after the beginning of the new year. As a result, we’ve seen various rental homes gone swiftly after being listed for a short period. The key is to manage your expectations and go with the trend.
Earnest Homes has compiled valuable rental data and statistics in the world of property management for both landlords and tenants in 2023:
- The average median rent in LA for a one-bedroom apartment is $1,930. Subsequently, the median rent for a 2-bedroom apartment is $2,566. For three-bedroom apartments, we see a trend for the median rent at $3,726, while a three-bedroom house is going for $5,050 as the median rent. Please be informed that LA cities in rent control are not allowed to increase rent since March 2020, which is definitely holding back the averages higher.
- The average time to lease a home in the current LA market is 27 days. However, if the price is right and the property is in fairly good condition, properties may go within a week after being listed.
- Did you know that an average rental receives 3.4 applications per listing? That’s a significant amount, especially in Los Angeles. A listing that is captivating and well-advertised can definitely receive more applications. However, kindly note that landlords must accept the first qualified applicant per Fair Housing.
- Let’s face it; it’s not easy to purchase a property in Los Angeles, which is why 63% of the population are renters. That means more than half of the population is seeking a rental property making LA a renter’s nation!
- The top 5 most affordable areas in Los Angeles, from the highest to lowest cost, are North Hills, with a median rent of $2,100; Sun Valley, with a median rent of $2,045; Lakeview Terrace, with a median rent of $2,000; Vermont Knolls, with a median rent of $1,950, and of course, Panorama City with a median rent of $1,895.
- We also have statistics for LA’s top 5 most expensive neighborhoods, from the highest to the lowest cost. At number one is, of course, Beverly Hills with a median rent of $5,600, Pacific Palisades at $5,100, Brentwood at $4,600, Westwood at $4,350, and Playa Vista at $4,100.
- Median rent has been consistently on the rise for the past five years. The average median rent increased by 3.8% from 2021. This just shows that despite 2021 being the peak of the pandemic, statistics still show a significant increase in average median rent.
- As a rental property owner, it is important to know what platforms are readily available to list your property. The following are the top 5 most popular rental sites in LA most used to advertise on: Zillow, Trulia, Zumper, Hotpads, and Apartments.com.
- What attracts most renters to a home is a flexible pet policy. In Los Angeles, 43% of renters have pets. 56% of that are dogs, 43% are cats, and 9% are other pets, according to the American Pet Products Association. A flexible pet policy also gives a landlord more rental income by charging pet rent.
- Renters prefer homes with essential features such as granite countertops and stainless-steel appliances. Most tenants nowadays want that clean and sleek vibe, so they go for a more minimalist feel. This is the reason why granite countertops and stainless-steel appliances are trending. Moreover, they look more sophisticated and elegant.
The housing market is getting more and more interesting each year, especially with all the new laws. There is definitely a much larger interest amongst the population in rental properties. It’s a good time to keep up the trend.
Author: Jesse Sasomsup is the President of Earnest Homes, one of the most highly-rated property management companies in Los Angeles. He is also a contributor for AAGLA (Apartment Association of Greater Los Angeles).