As landlords, staying informed about the ever-changing landscape of housing and economic policies is crucial. The 2024 U.S. presidential election has brought about several significant developments that could directly impact your real estate investments. Our partners at Rent Perfect had a chat about this on their latest podcast below and shared some notes.
Note that we have partnered with RentPerfect to provide you the resources you need to grow your real estate investing business. From tenant screening and online lease management to move-in/move-out apps and rent collection, Rent Perfect makes being a landlord easier and more efficient. And through our special link, you can access these tools for just 95 cents, just be sure to tell them you came from MAREI – Mid-America Association of Real Estate Investors.
The 2024 Election’s Impact on Landlords
The 2024 U.S. presidential election has brought several significant changes for landlords nationwide. Many outcomes related to housing, taxes, and economic policies will shape the real estate investment market in the coming years. Here are key areas to watch:
Rent Control
Rent control, once limited to large cities, is now reaching smaller communities. Many rent control proposals across the country were defeated, often due to landlord voter participation. Even California’s Prop 33, which aimed for statewide rent control, was rejected. This defeat prevents limits on rent increases, preserving profitability for landlords. With fewer regulations, landlords have more flexibility to adjust rents based on demand.
Affordable Housing and Market Competition
Affordable housing was a central issue in the 2024 election. New government subsidies were approved to address shortages in many regions. Building restrictions were also relaxed to increase affordable housing options. This could lead to more competition, especially in urban areas. On the upside, regulatory easing can speed up construction, creating new investment opportunities for landlords.
Tax and Incentive Changes
Recent tax reforms are impacting property owners. These include limits on property depreciation deductions and higher corporate taxes. For landlords in areas with increased real estate taxes, profitability may decrease. Landlords investing in green upgrades or low-income housing should stay informed about local policy changes. Many incentives may be limited under the new administration, so quick action is advisable.
Interest Rates and Economic Conditions
Higher interest rates have created challenges for investors. Rising rates increase property costs and hinder portfolio expansion. For most landlords, this means reduced market activity and profitability. Policies that lower interest rates or curb inflation would offer relief. A stable economy generally leads to higher tenant demand, lower vacancy rates, and increased rent prices.
Tenant Protection Regulations
The COVID-19 pandemic introduced many regulations that still affect landlords. Review your local laws to understand rules on eviction moratoriums, rent control, and limits on late fees and deposits. While intended to protect tenants, these measures can make property management more difficult. Fortunately, there is momentum toward reforming eviction processes and providing better support for landlords facing financial hardship.
Final Thoughts
The 2024 U.S. election has introduced new challenges and opportunities for landlords. Changes in rent control, taxes, tenant protection laws, and economic policies will shape your business strategy. Connect with us here at MAREI or a local real estate investor association in your area to stay informed. Is it finally time for landlords to thrive again?
About the Author
Scot Aubrey is Vice-President of Rent Perfect, a private investigator, and landlord specializing in short-term rentals. Stay informed with expert tips by subscribing to the Rent Perfect Podcast on YouTube, Spotify, and Apple Podcasts.
The impact of the 2024 election on the real estate market and landlords nationwide is already unfolding, with potential changes in rent control, taxes, affordable housing, and tenant protections. Staying ahead of these trends is key to making informed business decisions. At MAREI, we encourage you to leverage resources like our partnership with Rent Perfect and our network of industry experts to stay proactive, adaptable, and prepared. Together, we can turn challenges into opportunities and make the most of these evolving conditions.
If you’re not yet a MAREI member, now’s the time to join, connect, and grow with like-minded investors ready to thrive.
