The notable shift towards remote work has not only altered where people work but also where they choose to live.
As companies adjust to a post-pandemic workplace reality, flexible work arrangements have become a long-term adjustment rather than a temporary fix. This has had significant effects on the real estate market, notably in cities like Las Vegas, known for its great weather, abundance of entertainment and recreation, and expectations for future growth. With the digital exodus paving the way for a new housing landscape, we want to talk about how remote work is reshaping real estate in markets like ours.
Remote Work: Revolutionizing the Real Estate Market
Gone are the days when the proximity to the office was the single most influential factor in the real estate market. Remote work has broken those geographical barriers, allowing professionals to consider larger expanses in their home search, even crossing state lines. As a result, laid-back and tax-friendly places like Las Vegas are rising in popularity.
For some cities, this trend has not been helpful. For a city like Las Vegas that still maintains a relatively low cost of living compared to other cities of its size, remote work has been a huge growth factor. Our population is growing for many reasons; one of them is the ability of a lot of professionals to work from anywhere.
There’s also been a push into the suburbs, thanks in part to the demand that remote work has created. The Vegas Valley, surrounded by picturesque desert landscapes, is experiencing a surge in suburban real estate. Families, young professionals, and even retirees are flocking to the more affordable and spacious suburban areas that offer a peaceful respite from the hustle and bustle of the city center. Commuting is no longer a pressing issue, and neighborhoods like Lake Las Vegas and Summerlin just outside of the Las Vegas city center are reaping the benefits.
Luxurious Living at Affordable Prices
Las Vegas has always been associated with luxury, but the remote work phenomenon has introduced a new kind of luxury to the locals—affordable, high-end homes. Real estate investors in Vegas have noticed an uptick in properties that were once unattainable for the local market, now within reach due to the lull in tourist and investor activity which created a unique buyer’s market.
Buyers and renters are looking for well-maintained homes in desirable neighborhoods. They want tech-savvy homes with smart devices like video doorbells and smart thermostats. They’re also looking for office space, since many of them are working or studying from home.
Remote Work and Growing Short-Term Rental Markets
Remote workers are also creating a higher demand for short-term rental properties. While most of the remote workers moving into Las Vegas are looking for a standard lease of a year or longer, there are some remote workers who like to drop in on a city for a month or two or maybe three. They’re not moving with furniture, so they want a fully furnished home that includes everything.
In a city dominated by the tourism industry, many vacation rental owners are finding success by transitioning to rentals that meet this need. Attracting digital nomads to a property for three months is a great way to balance stability with higher rental values that often come with per-night rentals.
The Future of Vegas Real Estate in a Remote World
As remote work continues to be a viable option for professionals in numerous industries, its impact on Las Vegas real estate will likely endure. The city’s image is shifting from a weekend getaway destination to a place where one can enjoy a high quality of life with abundant amenities. For investors and current residents, understanding and evolving with this new market dynamic is essential for success.
Las Vegas is uniquely positioned to benefit from this trend. Remote work and the house hunters who make up this workforce have created a fundamental shift in the values of homebuyers and renters. As the city rapidly adapts to meet the demands of its changing population, Las Vegas continues to demonstrate the resilience and innovation that it has long been known for. Anyone who is thinking about investing in Las Vegas will want to follow the trend in remote working.
Helping Your Las Vegas Rental Property Attract Remote Workers
The remote work trend and the high demand for well-maintained rental properties are both good things if you’re a rental property owner in Las Vegas or if you’re thinking about investing here. You will easily find a large pool of reliable tenants who are eager to rent a home that fits their remote work lifestyle. You can also count on higher rental prices than you may have charged a year or two ago, and that is partly due to remote work and the rising demand for housing in markets throughout our region.
As local Las Vegas property management experts, we’ve been thinking about how to best position your property to attract these remote workers. Here are some of the things we recommend, based on what this type of tenant is looking for in a rental home.
- Flexible Work Space or Home Office Space
A separate working space will be a huge selling point when you’re renting your home to remote tenants. Sure, people who work from home might enjoy sitting on their couch with a laptop or setting up a remote working space in their bedroom. But, having their own dedicated space for all their work-related documents and equipment will be essential.
If your home has a separate room such as a den or a small extra bedroom, you’re well-positioned to attract remote workers. Even if the space is not a dedicated room, you can work with a loft area or an open floor plan that may offer a way to corner off a dedicated working area.
Lots of natural light will help. Consider built-in desks and bookcases or shelving. Extra storage will benefit remote workers, too. These are easy and affordable upgrades you can make to be more attractive to these types of tenants.
- Be Forward Thinking When it Comes to Tech
Your remote working tenants will need a strong internet connection.
The Internet is perhaps just as important to remote workers as all the other utilities. They’re going to need the bandwidth to take video phone calls, participate in Zoom meetings, and log into their employer’s networks.
Most rental property owners in Las Vegas don’t provide internet services; you’ll leave connectivity up to your tenants. However, you can be a resource by providing recommendations on which local internet providers offer the best packages and the strongest speeds.
Another way to help your property stand out in the market is by offering Wi-Fi in the rent. This can be offered as an incentive for the first three months, or when you’re negotiating a lease renewal.
Smart home technology will also be important to remote workers. They’ll want smart thermostats, intuitive lighting and appliances, and energy-efficient light bulbs and landscaping. Be prepared to meet their needs. A video doorbell is a great idea. Security features that come with an app for monitoring will also get their attention. Provide a home that can easily sync with voice-assistants such as Alexa from Amazon or Siri from Apple.
- Pet Friendly Rental Homes
Remote workers have pets. One of the benefits to working from home is that they can spend more time with their furry family members. During the pandemic, pet ownership rose. Your tenants are definitely looking for a home where their animals are welcomed. If you’re not already welcoming pets into your Las Vegas rental property, this is a good time to consider it. A strong pet policy will protect you against any of the potential risks and liabilities that have you concerned.
Competitive Rental Values and Remote Work
All tenants appreciate a rental price that’s fair and market-driven, not just remote workers. What you have to remember, however, is that remote workers have the entire country available to them. When you’re competing for their tenancy, you’re not just competing with the other rental properties in Las Vegas. You’re competing with rental properties all over the country.
Rents have been pushing upwards everywhere, including in Las Vegas. Set a rental value that allows for a healthy profit, but make sure it’s competitive, too, and likely to grab the attention of good tenants. Don’t go too high. Staying competitive will allow you to fill your vacancy quickly. Get a well-qualified tenant into your home as soon as you can, and then work hard to retain them.
The Las Vegas housing market is strong. If you own a rental property here or you’re thinking about investing in some real estate, you’re going to benefit from the trend of remote working. We’d be happy to talk more about this. We can help you choose an appropriate investment property or help you update the property you already own.
Please contact us at New West Property Management. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.
