San Rafael, CA – Rents climbed over 9% in the second quarter of the year, with the vacancy rate at a record low of 2.8%, according to a rental survey released recently by Real Facts of Novato, California. Although the rental survey company only counts units that are in buildings of 50 or more units, the survey does show the tremendous increase in rents and subsequent tightening of the rental market in Marin County.

My office recently confirmed these jumps by surveying current advertised rents in the major towns of Marin County and noting rents for typical one and two bedroom units in smaller rental properties located throughout the county. Here is what we found:

  • Sausalito
    1 Br/1BA – $1875-$2350
    2BR/1BA – $3,000-$3750
  • Mill Valley
    1 Br/1BA – $1875-$2350
    2BR/1BA – $1995-$2700
  • Tiburon
    1BR/1BA – $1750-2900
    2BR/1BA – $3495-$4950
  • Corte Madera
    1BR/1BA – $2000-$2100
    2BR/1BA – $2155-$2475
  • San Anselmo
    1BR/1BA – $1700-$1800
    2BR/1BA – $2250-$2750
  • San Rafael
    1BR/1BA – $1700-$1800
    2BR/1BA – $2250-$2750
  • Novato
    1BR/1BA – $1675-$2440
    2BR/1BA – $1599-$3195

We are finding that many owners are below market by as much as 30% since the upward rent surge began some 24 months ago. Most industry experts predict that as long as companies are hiring and new apartment inventory is coming online below the demand, rents will continue to increase.

We have recently listed two smaller income properties in Marin (see below) and discovered that the owner had not been raising rents to keep up with the rising rates. In one four unit property in Gerstle Park a one bedroom, one bath unit is rented for $1,295 and the current market rent is $1,700 for that location. In another example, a four unit property we listed in San Anselmo has current one bedrooms rented for $1,575 and the market rent is estimated to be $1,700-$1,800 per month for the location of the property.

It is advisable for Marin apartment owners to raise rents on an annual basis in order to keep up with the market. If you haven’t raised rents for the past 24 months take the time now to review your leases and make raises no higher than the 10% annual cap that is law in California. It may take longer to get the rents to market but those raises will increase the value of your property and your monthly cash flow.

Listed below are the current listings in our office-let us know if you would like a comparative market analysis of your property or would just like to talk about what rents should be in your building.

I can be reached at 415-302-7730 or email me at katherine@khiggins.com.

Yours truly,
Katherine J. Higgins
Investment Broker

Here are my current apartment listings:

  • 328 D Street, San Rafael
    4 Units
    $1,450,000
  • 835 Sir Francis Drake, San Anselmo
    Gerstle Park 4 plex
    $1,359,000