Tariffs & Your Rental Property
These changes may have very real implications for your investment property.
As your trusted property management partner, we want to keep you informed about developments that may impact your investment. One such recent development is the rollout of new U.S. tariffs — particularly those on imported materials like lumber, steel, and appliances.
What These Tariffs Mean For Your Property
Fewer New Homes Mean Greater Demand For Existing Ones
With construction costs on the rise, fewer new housing projects are expected to hit the market. While this slows new supply, it also means existing rental properties will be in higher demand. In a tighter market, well-maintained homes can stand out, helping to boost occupancy and support strong rental income.
Potentially Higher Renovation and Construction Costs
Tariffs on building materials may lead to increases in the cost of routine maintenance, as items like light bulbs, plumbing parts, and paint could become more expensive. In some cases, vendors may adjust their rates to reflect these changes. Similarly, prices on certain foreign-made appliances may rise, potentially making replacements like refrigerators or HVAC systems more costly over time. We will continue to actively work with our trusted vendors to manage costs and minimize the impact on your property.
Rising Costs Could Influence Future Rent
As the cost of materials and vendor services continues to edge upward, there may come a point where some of those increased expenses are offset through rent adjustments. We’re not seeing a need for that just yet, but if trends continue, it could contribute to another gradual rise in rental rates. Fortunately, Memphis remains an affordable market, and we’ll continue monitoring conditions to make smart, competitive pricing decisions that protect your investment while keeping tenants satisfied.
At 901 Real Estate Services, we’re proactively adjusting our maintenance planning and vendor partnerships to manage costs without compromising quality. We’re also keeping a close eye on market conditions to ensure rents remain competitive while maximizing returns. In times like these, clear communication and smart strategy make all the difference — and that’s exactly what we’re here for.
Behind The Scenes at 901
It is with great sadness that we announce the passing of our friend and colleague, Lauren Crews, after an almost 3 year battle with ALS (Lou Gehrig’s Disease). A longtime real estate developer, Lauren was most recently known for his tireless dedication and success in revitalizing the historic Marine Hospital grounds, located on a bluff overlooking the Mississippi River in Memphis’s French Fort neighborhood.
