Archive for April, 2012
A considerable number of Americans believe rental rates will jump nationwide during the course of the next year, a survey by Fannie Mae indicates. However, many of these residents stated they continually prefer to lease, rather than buy, homes.
According to the National Housing Survey for March, one-third of Americans polled said they expect home prices and rents to rise markedly during the next 12 months. The average rental rate hike was found to be 4.1 percent.
Though roughly two-thirds of those surveyed said they would buy their next home rather than lease, the survey indicates 30 percent of respondents would rent – one percentage point higher than in February.
This figure for rental preference grew despite nearly half of those polled stating they believed rental rates would increase during the following year.
“Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month,” said Fannie Mae vice president and chief economist Doug Duncan.
The number of property owners who employ rental managers may rise, as a number of small-time investors are snatching up low-priced properties and converting them to rental units to take advantage of the still-high demand.
Sales of apartments in 2011 were double those recorded in 2010 and nearly triple sales from 2009, according to a report by the National Multi Housing Council.
The top buyer last year was Boston Capital, which secured more than 157,000 units. In terms of property management companies, Greystar Real Estate Partners gained more than 197,000 units for business in 2011.
Additionally, the report found the top-50 rental property owners last year all accumulated at least 50,000 units, and property managers increased their share of management responsibilities nationwide to 15.8 percent.
“The industry continued its robust recovery in 2011 as more households decided that renting was a better fit for their lifestyles, needs and budgets than owning,” said NMHC chief economist Mark Obrinsky. “The boom in rental living combined with the near-bust in supply over the prior three years led to strong rent growth for the industry.”
Though these companies are the premier businesses in the property investment and management, small-time buyers are expected to make up a bigger share of the market in the coming years, thanks in part to the federal government’s REO investor plan.
Property management companies will need complete information on a unit and its inventory before they can begin marketing it effectively, and a fact sheet can provide the important details. This includes obvious statistics such as the number of bedrooms, but may also extend to factors such as the wiring, plumbing and insulation.
This document may later provide the basis for the move-in/move-out checklists that rental managers can use to determine whether tenants have cared for the property while living there and evaluate any maintenance and repair costs they are responsible for. Any appliances or amenities included in a property should be listed and their condition described.
Kitchens and bathrooms may require the most attention, since they tend to have the largest number of fixed items that are part of a rental. Sinks, toilets, ovens, refrigerators and other items should be documented so that managers and owners know exactly what a unit of housing has to offer.
Having a complete inventory before move-in is a necessity. If a tenant moves out and leaves the home in poor condition, that inventory may be necessary evidence to apply the security deposit toward needed repairs.