In today’s episode of The Same Day Podcast, join Mat Zalk in welcoming the Business Development Manager of Keyrenter Property Management Oklahoma City, Walter Bowser, for a discussion about rental property misconceptions. Walter describes the fluctuations in the rental market, homeowner and investor FAQs about property management, and how he advises landlords on real estate trends.
Why Your Mortgage Payment Shouldn’t Determine Rental Pricing and Other Real Estate Misconceptions
Walter Bowser is the Business Development Manager at Keyrenter Property Management Oklahoma City, which provides property management solutions for homeowners and real estate investors. As an entrepreneur, he has experience in sales and product research and development. Walter graduated from Oklahoma State University with a Bachelor’s in economics and a minor in entrepreneurship.
Here’s a glimpse of what you’ll learn:
- How Walter Bowser’s background in property management educated him about the real estate market
- Walter talks about the shifts in the rental market
- Advising homeowners and investors on real estate and property management
- Investor tips for increasing rental property value
- FAQs about property management services
- Walter’s predictions on rent increases
In this episode…
As interest rates rise, renters are tightening their budgets to offset inflation. Additionally, with more properties on the market, those priced at 10% higher than the market average are more likely to remain unoccupied long-term as tenants select lower-priced rentals. How can property owners stay abreast of these trends to price rentals appropriately?
With experience on the business side of property management, Walter Bowser has observed that most real estate investors aren’t familiar with the rental process but become involved solely to maximize cash flow. This inexperience leads them to underprice rentals to only cover the mortgage payments. Property managers communicate pricing expectations with owners and investors by informing them of estimated rental value based on market trends. To improve property value and increase rental income, you can perform routine maintenance and add upgrades to align with tenant expectations. This may involve replacing floors and cabinets or improving the yard, which encourages tenants to maintain the property while you maximize ROI and save money in the long run.
Resources mentioned in this episode:
- Mat Zalk on LinkedIn
- Keyrenter Property Management
- Keyrenter Property Management Tulsa
- Keyrenter Property Management Oklahoma City
- Keyrenter Property Management Arkansas
- Keyrenter Property Management email address: [email protected]
- Chris Lile State Farm
- Chris Lile’s phone number: 918-878-7771
- Walter Bowser on LinkedIn
- Walter Bowser’s email: [email protected]
- “From Engineer to Entrepreneur” with Joey Wignarajah on The Same Day Podcast
- “Successes and Failures in Real Estate” with Deren Huang on The Same Day Podcast
Sponsor for this episode…
Chris Lile at State Farm Insurance:
This episode is brought to you by Chris Lile at State Farm Insurance.
Chris Lile at State Farm helps you protect your most precious assets and investments, including home and auto.
To learn more about how you can save double digits on all your insurance needs, visit dialliale.com or call Chris’ office at 918-878-7771.
Keyrenter Property Management:
This episode is also brought to you by Keyrenter Property Management.
Keyrenter Property Management is a full-service property management company that helps clients buy, renovate, and operate real estate assets.
The team helps clients build wealth while taking the headache out of property management.
That’s why, no matter what rental you have — single-family homes, condos, townhomes, or apartments — they can give you the management solutions you need.
To learn more about their services, go to https://keyrenterpmc.com/ or send them an email at [email protected].
Episode Transcript
Intro 0:05
Welcome to The Same Day Podcast where we discuss driving incremental business growth and other topics related to real estate, property management and entrepreneurship. Now to the show at hand.
Mat Zalk 0:20
Mat Zalk Here I’m the host of The Same Day Podcast where I connect with top business experts and real estate leaders. past guests worth mentioning. Deren Huang who does commercial and residential real estate Joey Wignirajah of 19days is doing some awesome work in studio venture work in Tulsa, starting new businesses and spinning them out for commercial success. Today’s episode is brought to you by Chris Lile State Farm Chris Lile State Farm helps you protect your most precious assets and investments whether it’s your home and auto investment rental properties or other valuables call Chris Lile State Farm for a quick and painless phone call to potentially save you double digits on all of your insurance needs visit diallile.com recalls office at 918-878-7771. Today’s episode is also brought to you by Keyrenter Property Management at Keyrenter Property Management. We are a full service property management company helping your clients buy, renovate and operate real estate assets. We help our clients build wealth while taking the headache out of property management. Walter is going to talk to us today about some of the key questions that owners ask when they’re calling in in our shopping our services. Walter Bowser is the Business Development Manager for Oklahoma City. Keyrenter Oklahoma City. He’s self proclaimed probably the best business development manager to ever walk the Earth. And that’s saying a lot. He graduated from Oklahoma State University with a major in economics and a minor in entrepreneurship. And he’s the father of Boston Bowser, boom, Walter Bowser, welcome to the show. Looking good. As always, how are you?
Walter Bowser 1:50
Good, good. How are you doing?
Mat Zalk 1:51
I’m good. I want to start with the basics. What even qualifies you to talk about any of these subjects that we’re going to touch on today?
Walter Bowser 1:58
You know, um, I guess my my biggest qualification has been working, you know, in the industry. For the last, you know, I would say three years in this role as a business development manager. And before that, you know, I was in property management, doing multifamily management. But as we’ve been, you know, kind of going through the COVID times, and then post COVID, and how the markets shifted, you know, we’ve seen a whole different market kind of happen over the last year. So I would say, you know, being in the trenches, and really digging in deep and doing that over the last little bit has, has really opened my eyes and kind of educated me on on what the current market market situation is.
Mat Zalk 2:45
Yeah, so things have really changed since pre COVID, man, pre COVID, we used to have these cycles where in winter, things would come down. And then in summer, they’d ramp back up, and we do all of our leasing and then winter, they’d come back down again. And it was really great for our property management team, because they can actually take a breather after a long summer. And then during COVID, it was like, craziness straight through, we would expect some sort of dip in December, and people will just keep leasing properties. And because rates were so crazy people, our owners were buying properties, we had more properties to lease and people were still renting, it was insane. But hopefully now we kind of get back into a cyclical standard cyclical nature of of property management, where property managers can actually breathe a little bit after the the high peaks of summer. But to your point, you’ve seen a bunch of market shifts over the last couple of years, pre COVID, COVID. And now kind of post COVID. What are you seeing in, though, in terms of those changes over the last? Let’s call it a year, let’s call it 12 months since July, more than four months now 1618 months? Since July of 2020. June rates started creeping up. What have you seen in terms of shifts in the market? Yeah, absolutely. I mean,
Walter Bowser 3:53
recently in the rental market, specifically, we’ve seen the propensity to spend for the average renter just tighten and kind of, you know, shrink up as as interest rates and stuff gets more expensive to to, you know, card, their car payment might go up. Because the interest rates and all these other things that the economy is squeezing, you know, they’re looking for a better rental rate along with there’s a lot more options on the market right now. For example, during COVID You could put up a property at, you know, basically 10% over what it would have been previously and it would have been snatched up rather quickly. Yeah, and now it’s it’s shifted to where, you know, there’s more options on the market. And so, you know, the consumers has more options number one, number two, they’re more budget conscious now that that, you know, rates have hired it’s just more expensive right now, especially with inflation as well too. And there’s not you know, as much money in the pockets of the average American As it was, you know, two years ago. And so, you know, we’ve seen that they’re more conscious about their budget. So we’re not able to have that, you know, super aggressive pricing on the front end that we that we might have had, you know, way up high, the mean to be more, you know, conscious of what the consumers looking for, and have a know a better approach that way.
Mat Zalk 5:22
So that’s interesting, there was a period during COVID, where we could owners would come to us and they’d say, You think there’s a rent for insert $200 above market? And we’d say, I don’t think so. But I can try it. And lo and behold, they put it on the market for tuner bucks above, and it would go. And now that’s just not the case anymore. And I don’t quite understand. It seems like employment levels have continued to be super high. And yet, yet the the the average renter is being squeezed there, they’re willing to pay a little bit less. And I don’t really understand it, I think tech jobs have laid off, those people have the big tech companies have laid off, I should say, and those people have been absorbed by other companies in the market, they may have taken a slight decrease in their salaries. But the average person, it seems, if you’re just a blue collar worker, if you’re a plumber, if you’re a sheet rocker and either any of the trades, you might, even though you’re fully employed, you might just be seeing wage increases that are a little bit lower, or maybe you’re not getting all of your hours because your employer is a little bit fallow, right. I mean, not there’s not as many new new construction starts. So all those little things, I guess, kind of trickled down into the economy. And that’s where we’re seeing the average blue collar worker just getting squeezed a little bit. Does that seem right to you?
Walter Bowser 6:40
Yeah, absolutely. I mean, not only that, and you know, it’s great, because Oklahoma’s full of blue collar workers, especially Oklahoma City, and I think we’re really flush with that. And it’s great, especially since it’s a market and we’re in the rental, you know, management business. And there’s plenty of renters in the Oakland City Market, but you’re 100% right, and I think it just goes back to maybe a little bit of, you know, now people are more conscious about the economy and where it may be going, and maybe they’re like, you know, hey, all these, you know, propaganda of of a recession. I mean, that, that, you know, we were a little bit more scared to spend more money on the radio, right? It’s like, hey, yeah, exactly. So, you know, last year, I’d love being proved wrong, you know, I would come in and say, hey, you know, I think that, here’s the rental income for this property, this is what I would, you know, price the home at, and the owner would push back sometimes and be like, hey, no, I actually think that, for example, we had a property in Norman, Oklahoma, that I priced it, you know, probably around $2,500. And we’re like, No, we can get 3600 for it. And I was like, I don’t know if that’s possible. And so she’s like, I won’t I won’t Good move forward with you as Kira, unless we can at least try it. I was like, Okay, we’ll give it a try. And lo and behold, we got that 3600 how that happened? Not quite sure. But there was someone to market for it at that time. And now we’re just not seeing that level of, you know, let’s put it up there and kind of see what happens. And
Mat Zalk 8:09
the question is what happens when that tenant goes to renew? Are they going to be willing to pay 3600? Again, knowing what else is on the market? Now, they may say, I could I could go and get the same house for 3100? Is it worth renting, it’s going to cost me five or $6,000 to move. And so it’s not worth it, but you probably are not going to be able to increase pricing on that person that same way you could have from 21 to 22, for example, right, that will absolutely jump
Walter Bowser 8:36
with this specific situation? We don’t know. Yeah, they sign a two year lease. So we don’t know. But um, and the condition can be a little bit different. Whenever we get to that next year, I believe it’s when the lease is up. But, you know, for example, we just aren’t seeing that really anymore. You know, this last three months, we had another property and Norman I don’t keep going back to this. But you know, it was a much larger house than that one that we talked about earlier. And we still we got much under well under what they thought that we could get for it was more on our guidelines of what we could get for it. And, and so we weren’t able to, but that’s just shows that no, there’s really not that people are being more budget conscious.
Mat Zalk 9:22
I guess the truth is that your ability to spend today is the present value of your future cash flow. So if you think that you’re going to make less money, or if you think that prices are going to continue to go up and you need to budget for that in the future, you just have a sense and a feeling that things are constricting, and therefore you you pull in your horns a little bit, as my grandfather used to say, you stopped spending now because you’re afraid of what the future can can hold. And that’s I guess, is borne out by the idea that so much of our economy is based on consumer spending and if consumer spending stops and the economy grinds to a halt, and you know that’s why the Fed wants to keep the sentiment of of people high or in this case when the elevating rate Similar to bring it back down to reality, that people have the feeling that it’s riskier to spend, and therefore stop actually doing it. But that leads us to a really good point, our owners borrowed more money, oftentimes they paid more money for a house because interest rates were lower, and they could afford a higher value have a house on on the, on the monthly payment basis, they were getting a little bit more money. So their cash flow was a little bit healthier each month after they rented it. But what are we seeing now I guess we’re seeing now prices are a little bit lower, potentially for houses that are being acquired. However, it’s made up for by the fact that their monthly payment at seven and a half or eight or eight and a half percent interest is higher, and so their cash flow would be constrained. So when people are talking to you about our property management services, what are they? What are you telling them in terms of, you know, their the standpoint of folks looking to buy
Walter Bowser 11:01
now? Yeah, so when we have an investor come in, I think that it’s really adjusting, you know, what their, what their goals are, and having that kind of tougher conversation with them, especially as you see, you know, some investors come in, and they might not be as educated might have seen, like, hey, get rich quick through real estate, or whatnot, and having those qualifying conversations or, you know, what I would say is, you know, education conversations or whatnot, because there’s a, there’s a podcast that I listened to, and it was, and it was, like, 67. So like, two thirds of people really don’t have any idea of what property management is, or really what what real estate is coming into. So having those educated conversations with them is really healthy, and maybe saying, like, hey, you know, it might not be the right, you know, play for you, if you’re looking for a ton of cash flow at this moment. And maybe more of hey, we can we can get this property for lower than what what the asking price is, and maybe what the appraisal would be, and it’s more of a long term hold until conditions are different in the market. And you know, we’re holding this for appreciation, or, for example, tax purposes, if they’re a high, you know, w two income earner needing to do depreciation or whatnot, depending on what really suits them well, but if they’re coming in immediately looking for a cash flow right now, the numbers just aren’t, aren’t there. It’s really tough and, and kind of moving away from an investor standpoint, I know, you, you ask a question, kind of looking at an investor standpoint, but with the accidental landlord kind of situation, because we have a lot of those in Oklahoma City, especially with, you know, the the military base. Here, a lot of people getting relocated, that bought in this last 12 months, when we saw the interest rates starting to creep up, you know, they come to us, and they’re like, hey, you know, what can my What can my property rent for? And that’s a super obvious question, right? Like, everyone should get that I’m sure everyone in the industry gets that. But I think our answer has had to, has had to shift in a way to where, you know, we’re setting very clear expectations before we enter this relationship with them. Because we want to, we want to be clear, like, Hey, this is what the real estimated value of your rental would be, and that your mortgage payment doesn’t dictate the rental market. Right.
Mat Zalk 13:29
Let’s dive into that for a second. If somebody and we’ve been saying this for years, honestly, because the historic example before the interest rate rises was Mr. Mrs. Owner just because you put your house on a 15 year amortizing mortgage, instead of a 30 year amortized mortgage doesn’t dictate the rent price, there could be two houses. forget for a moment that there are really no identical houses. That’s why we do a comparable market analysis and a comparable rental analysis. But if you had two identical houses in this subdivision that was newly built, and one person put the put their mortgage on 15 year amortization schedule, and another put on 30, the 15 year amortization schedule would be I don’t know two or $300. Higher, for example, that doesn’t mean that the person next door is going to rent their house for two or $300. Higher that also covers the mortgage, the market dictates it based on anybody that’s willing to rent it. So if the person that’s at a 30 year mortgage says, you know, I only need $1,500 to cover my mortgage and the average rates 1675. But frankly, I don’t really care, I’ll put it for 1550. All of a sudden that 15 year amortization person just got their house cut in half, just just had some some rental price. Potential cut off the property of the of the property that we’re talking about. So that was historic. That’s what we said. Now we’re saying you there’s no way even if you’re both on 30 year mortgages, and one of these on a 2.75 rate and the other is on a five and a half or six or 7% rate. That does not at all dictate what the market will bear Are for this rental property. And that’s a tough conversation to have. Because people don’t think about it like that they want to make money in real estate and they want to cover the mortgage. Obviously, if they’re trying to make money, they’re covering the mortgage. But I guess the conversation then has to shift to your paying down principal, couple 100 bucks a month. That’s one way you make money in real estate, you’re putting cash in your pocket every month, and at some point in the future, you can actually take that cash out with a refinance, which is a tax free savings plan, in essence, right. And that’s just a, it’s a difficult conversation to have with people. And it’s hard to make them understand that we cannot rent the property based on their mortgage rate, it has to be based on the market.
Walter Bowser 15:36
Yeah, exactly. And you’re 100% Right. It’s such a tough conversation, but it’s one that has to be had, especially for, you know, setting those expectations. And it comes back to you know, if, if it’s, it’s a really, really tough conversation, and the client or the prospective client is, you know, really putting a bunch of pushback and might not be the right fit for us. Yeah, just because we know that we’re not going to over promise, because that’s how we get unsatisfied, you know, clients, and then it sets up a headache for our operation side of things. And so it’s really kind of a, you know, a balance beam, I guess, and that essence and making sure that, you know, we’re having the tough conversations up front. So we’re not, you know, having a really, really tough conversation on the back end, or, you know, having someone really upset in the back end.
Mat Zalk 16:29
The question is, do you want to have the tough cover? If you’re an owner? Do you want to have the tough conversation upfront, and price your property appropriately? Or do you want somebody to say, Yes, ma’am, yes, sir. It will rent for $300 above the market and let it sit for two months. If it’s a $2,000 a month rental, you should rent for $1,700 $300 in a month, you lose $1,700. It’s it’s that’s a significant chunk of of your annual income, there’s an inflection point where you can say, you know, we should have just rented it at 70 100 bucks and gotten done a month or two earlier, and we would have paid for
Walter Bowser 17:03
we would have paid for all that time sitting on the market. Yeah, really good point. And there’s such simple math that it’s really easy to explain. And, you know, if you put that in front of a logical thinking person, you know, it’s more of like, okay, this makes sense, in the long scheme of things, and that’s kind of why we have those, you know, owner updates on a Tuesday, you know, making sure that we tell them, hey, this is how the property is marketing and why we if we’re being super aggressive on prices, why we might need to drop it twice a week instead of just once a week. Because we don’t want to lose that that precious time. Because, like you said, that’s money, never get back,
Mat Zalk 17:41
never get back end, if there’s a person in the market at 1399. And we’ve got the house price to 1500 bucks, and we’re gonna lower it anyways, the person that was in the market at 39 is already gone. They’ve already found a home. Yeah, exactly. If an owner does think that their property is worth $2,000. And we’re, we’re indicating that it’s worth 1700 bucks, is there anything that he or she can do to increase the
Walter Bowser 18:06
value of the rental? Yeah, I think there’s a, you know, some really qualifying items to maybe rehab or update depending on the property, you know, was it was it a new build, or was it a, you know, a home from 1970 that there are some things and if they’re willing to, you know, put put the money into the property. You know, I saw that, just as simple as if you have hardwood floors, re re surfacing them is almost has like, I can’t remember where’s this from, I wish I could put it but it had like 100% return on investment, if you’ve just refinished the floors, and it’s not that expensive to do. But it’s, it’s, you know, something that you immediately walk in and see and prospects look and it’s just little little things like that, that you can do to upgrade and I’m sure you know, you probably have some other you know, ideas on that. But really, it’s it’s good for us to go into the property with the owner and have that walkthrough on on situations like that and you know, we can identify and kind of know the market trends on what tenants are looking for. For example, an updated kitchen or you know, curb appeal, just having a steel front door that’s you know, safer and you know, better for for you know, efficiency and and stuff like that can go a long way and it’s something that can help you lose that rental income on the property. A couple
Mat Zalk 19:34
of things that you mentioned that are worth kind of digging in deeper. One is reminds me of the broken glass syndrome. You walk into an apartment complex or a house and there’s a and there’s a broken bit of glass and you think well I can throw my trash here I can break other glass you can do whatever and that’s you know, that leads to greater wear and tear on the property over time. Not good. If you can avoid if you can finish the the flooring the hardwood floors, for example, and you can avoid other people coming in and just scratching it and being like, oh, it’s already scratched, who cares, then that’s longterm, operationally more efficient for your property. So the same goes for painting walls and doing other stuff. The second thing is that tenants will ultimately feel the total cost of renting just like you, you know, the total cost of ownership of your vehicle. If you buy a Toyota or a Lexus, you’re going to pay less money over time than if you buy other models of cars. And that’s borne out you’ll do less service, less maintenance, maybe you’ve synthetic oil changes every 10,000 miles instead of an oil change every 3000 miles and you get it when you go to buy your next car, you’ll think, do I want to lower total cost of ownership? Well, the total cost of renting is the efficiency of the windows, the efficiency of the door, as you said, whether there’s a threshold suite, whether there’s all these things, and a tenant that’s in a property after a year and says my rent is 1500 bucks, but my utility costs are $600 a month, well understand inherently that they’re paying 21 $200 A month when they could be paying, you know, a similar situation, they could pay 18 plus 300, or 17, plus 300. And they’re saving $100 A month because it’s more efficient house. So if we can do a couple of those upgrades, they sometimes seem foolish on the front end. But what happens is, or to an owner, sometimes they don’t understand the ROI. But what happens is that their tenant turnover will be lowered every time their tenant turnover doesn’t happen. They save money on painting and flooring and a bunch of other stuff, not to mention the vacancy period, and then paying another leasing fee, we encourage owners to keep the tenants in the property. And sometimes that means we don’t raise the rent as much. We always like to raise rents, because it encourages tends to understand that rents go up every year as our owners expenses go up. But sometimes we want to stay flat or keep it keep it relatively keep the increase relatively low. But I think it’s worth saying that tenants will understand the total cost of renting. And we shouldn’t we shouldn’t minimize that point.
Walter Bowser 21:55
Yeah, that’s a really good point, especially and, and really, it comes up a lot during the walkthrough, when we’re having those in-person meetings with these clients, is exactly what he said is if they walk into a property, and it’s looking great, it’s in great condition, they’re going to know that, hey, this is this is the expectation to live here and setting that first initial expectation. I actually had a client asked me the other day, hey, do you think it’s worth the $50 to have my lawn mowed before the tenant moves in? And I said, Absolutely not. $50 is going to turn to far more far more return on your investment than you think. Because they’re going to move into that property, you’re gonna see the lawns taken care of, it’s green, it looks good. And they’re gonna be like, I need to keep it this way. And that’s the expectation when you set it there. And, you know, a lot of people don’t necessarily understand that. But if you have that conversation with them on, you know, hey, this countertop is is, you know, not level or I’m just, I’m making something up, but it’s, you know, let’s, let’s make it look nice, before the tenant moves in, then the expectation is set. And hopefully, it’s like that for the entire state. And your point is absolutely correct is, you know, let’s keep them in there as long as possible, there’s definitely a no cost analysis on raising rent versus the tenant moving out and doing the whole turnover and having the property ready for rent again. And it’s, it’s important to have that with the with the client as well, too.
Mat Zalk 23:24
I mean, the tenant that walks into a property where the paint is not done properly, and the flooring is scratched up, will will accept that condition, and will, the person that’s willing to accept that condition, we’ll also treat things that way. Whereas a person, you lose the tenant that says, No, I’m not willing to accept this in this condition. They’re probably the tenant that would keep things in nicer conditions, because people will live ultimately in the nicest place that they can afford. And so they’ll tear it up. What are some other questions that you’re hearing from owners of owner prospects when they’re inquiring about our property management service these days?
Walter Bowser 24:00
Yeah, I would say another one is, is, you know, what is the timeframe to get my house rented out? And this one has been kind of an interesting conversation for me recently, because, you know, like we said earlier, earlier in this conversation, it’s it was, you know, a lot quicker, especially over the last the previous two years, just because, you know, there wasn’t there wasn’t as much on the market. If you look on the on the rental market right now. There’s just so many properties online. And in this because we’ll probably a few reasons one, money was cheap. So a lot of people were entering the investment world and buying rental properties and getting them online. And then now too is is, you know, accidental landlords or whatnot that were wanting to keep their property and or they can’t sell them right now because of the the interest rates and there’s less buyers in the market. And people can’t qualify for the specific home they want and what I’ve kind of seen is know, if you can’t qualify to buy the property that you would want to live in, and they’re not gonna, they’re not gonna go buy a less nicer house or a less quality house, they’re going to go buy or rent, excuse me a house that they want to live in, if that makes sense. Yeah. That makes sense. And so what we’ve seen is that we’re trying to, to kind of gauge like, how long will this property sit on the market. And of course, you’re taking in time of year and in the amount of comps in the area that are currently on the market. And so we want to set the expectation with the with the potential client of hey, you know, this is worst case scenario. Hopefully, it’s within that four to six week range is where we’re kind of seeing right now. But, you know, if we’re pricing it correctly within the comps that we’re seeing, no, it shouldn’t be within that window. Yeah.
Mat Zalk 25:59
The tough market out there. It’s a tough market for everybody. Where do you? Where do you envision rents going and prices going in the future? I know, nobody’s got a Silver Star, nobody’s got a crystal ball. But do you have any thoughts on where rents will be in 12 or 18? Months?
Walter Bowser 26:18
You know, I think that I think it’ll be right now, the kind of standard in Oklahoma City is right around hovering $1 per square foot. I think that will be over that just because it as properties continue to go on in the market. And people have to hit certain numbers for it to make sense. And, and people will adjust that. And of course, there’s always different, you know, cash buyers, or people that have bought these homes from, you know, the previous years when when numbers weren’t there, but of course, they’re gonna want to get the top dollar for rent as well, too. I think we’ll have to continue to rise. I think at the rate it was absolutely not, I think maybe a 2% increase over over over a year, I think is probably more realistic than what we were seeing previously. What are your thoughts on,
Mat Zalk 27:07
I guess the good news is that you have interest rates sustain high interest rates mean, as you said, fewer people can buy houses. And so they’ll continue to be renters. And that increased or that sustained demand will continue to push properties up, and then or rental prices up. And then as more people continue to buy at higher rates, it will naturally force their, what they need to make for the investment to make sense up. And even though that doesn’t dictate the price, there will just be more people that are trying to get higher and higher rents and fewer people that are willing to keep the rents where they were. And again, as you said, a cash buyer or somebody that’s in a lower interest rate, will naturally look at other comps and say that one lease for 1700 bucks, I’ll try 1710 or 1715, or whatever it is. And so that will continue to kind of push things up. But yeah, I mean, there are there are, you know, new housing developments that are coming on line, the new apartments coming online. And so there is there is continued inventory, but I think that there are more ingoing tenants because of the rate increases. So I think I think prices will continue to come up. And you know, through the 2007 2008 Dip in Oklahoma, it was a very minimal shallow with any decline in any sort of pricing. And that was a much that was a much more severe downturn when the when the liquidity crunch hit the banks. And so if everything goes the way it has historically, which is never the case, but could be some indication of, of our future prices, we didn’t have such inflation. We didn’t have such inflated prices to begin with such that we, you know, we’ll have we’ll see huge drops in in either the price of purchases or the price of rents. So that’s my thought Walter Bowser, Business Development Manager from Keyrenter Oklahoma City. He is self proclaimed probably the best business development manager to ever walk the Earth and that’s worth noting. He’s a great guy, a great father to Boston, and a great business development manager you’ve had if you’ve enjoyed listening to this show, you can reach out to Walter at [email protected]. He’s a graduate of Oklahoma State with a major in economics and a minor in entrepreneurship. And that’s a big battle in our team between the Sooners and the Cowboys. So there’s there if you have one if you have one opinion or another call Walter and and chat about chat about college football. Well, is there any final thoughts before we wrap up?
Walter Bowser 29:41
No Not Not really. I absolutely enjoyed the conversation. And absolutely reach out to me if you have any questions or looking to invest in Oklahoma City Market it’s it’s still strong still a lot of opportunities to invest either buying or if you’re putting your property on the on the market as an accidental landlord kind of sense. donation. Would love to help you out.
Mat Zalk 30:02
Cool. Thanks so much for your time. Appreciate you.
Outro 30:05
Absolutely. Thanks for listening to The Same Day Podcast. Tune in to a new show each week and be sure to subscribe to get future episodes