My 2025 Landlord Year in Review - It Could Have Been Worse
I own a duplex in Snohomish and a SFR out of state (Nevada). In both, I saw my bottom line getting squeezed by cost increases, but at least both of my properties were all rented the entire year.
I know that’s not the case for a lot of us smaller sized landlords. Vacancies are up and rent growth is flat, or negative, across most of King and Snohomish Counties. It’s been a tough year, and 2026 isn’t looking a whole lot better.
Expenses are a part of property ownership, but the last few years have been especially tough. With the insurance market seemingly out of control, inflation squeezing tenants, and utility costs rising, the expense section of my PNL just keeps getting worse.
Overbuilding a few years ago and the resulting glut of supply has made demand soft, and as a result we’re seeing little to no rent growth. This pinches the bottom line even more. Being fully occupied all year was really the only thing that saved the year, and it happened mostly by accident. This year I’m going to be intentional about keeping my tenants. Here’s my plan:
First - Be Content With What I’ve Got: I won’t be looking for rent increases in 2026. With rents flat or dropping across the board, I’m not looking to get greedy. I’d much rather have flat rent in a filled unit than a vacancy.
Second - Invest In My Units: Adding a new washer and dryer or doing some cosmetic upgrades will help let my tenants know I appreciate them, and hopefully keep them in my units.
I know most of you are expecting me to tell you to “sell, avoid the hassle!” to try and drum up some listings, but that’s not what I’m about. Now is not a good time to sell, unless you have to. In April of 2024 2-4 unit properties were selling in under 10 days (on average), now it’s taking over 30 days. If you have to sell, price it right, or be prepared for your property to sit (we can help solid pricing, if you need to sell your building).
Conversely, now can be a good time to acquire another property, especially if you find one off-market or one that has been sitting for a while. Some of those sellers are just testing the market and swinging for the fences in their pricing, but others NEED to sell, and that creates positive leverage for well funded buyers.
To close, 2025 was rough, but it could have been worse. The rest of this year and 2026 will likely provide good buying opportunities for patient buyers, and a tough market to sell in. If there’s a way that we at Serviss Commercial can help you on either side of a deal, let’s chat! No pressure.
