Further foreclosures, the continuation of stricter lending standards and other factors could convince another 4 million Americans to become renters rather than homeowners, according to Pacific Investment Management Corporation executive Scott Simon. The homeownership rate reached 69.2 percent in 2004 before beginning to decline in subsequent years, according to the Census Bureau.

Simon recently told Bloomberg that he believes efforts by government-sponsored enterprises Fannie Mae and Freddie Mac to finance rental conversions of real estate-owned properties will be good for the housing industry and economy. Such efforts may be difficult politically, however, because of disagreements and uncertainty about the GSEs and their future.

In addition to affecting Americans’ decisions concerning renting and homeownership, Simon also indicated that industry factors may cause home prices to drop another 3 or 4 percent over the next year. Taken together, these changes could create an opportunity for investors and rental managers.

Variability between markets may be high, based on data property management companies and rental owners reported to TransUnion. Markets including Denver, Chicago and Los Angeles all posted declining average rental prices over the one-year period in question. Of ten metropolitan statistical areas, only Atlanta experienced significant rent growth of 6.3 percent. The others were all relatively unchanged or declined year-over-year.

“It’s not a surprise that rental prices increased in the first quarter as recent industry data revealed that vacancy rates reached their lowest levels since 2001,” said one TransUnion executive.

These discrepancies suggest that national trends may not be helpful when investors and rental managers are considering business decisions, although some the news source reports some consistent data. Average deposits collected upon lease signing increased in every area except Dallas and San Diego. The report also indicates that many property managers are using stricter criteria to screen lease applicants and select tenants, due to higher demand.

By 2050, the number of Americans who are at least 65 years old will double to about 88 million, with the senior populace far outpacing the growth of other age groups, according to the Center for Housing Policy. About 20 percent of Americans will be seniors and a growing number will be over the age of 85, the CHP reports. In particular, Arizona, Florida, Nevada and Texas are expected to see the greatest increase in their numbers of elderly residents by 2030.

These Americans may demand more affordable housing designed to meet their needs, particularly since seniors historically have more difficulty with housing affordability. Their financial situations, which may be difficult as concerns over the financial sustainability of retirement have grown in recent years, could be difficult.

“Given the sharp increase in the population of older adults cited in the report, it’s essential that we focus now on strengthening the nation’s policy response,” said development executive Sydelle Knepper.

Investors and rental managers planning for the long-term, particularly in the aforementioned states, may want to begin strategizing how they will adjust their holdings and services to meet the demand these Americans will represent.

Leveraging a vendor’s or service provider’s insurance policy can reduce exposure to loss and the costs associated with it, transferring the risk to the other businesses. For example, groundskeeping contractors might assume the property owner’s liability when working on the home, Multi-Housing News notes, reducing financial risks so that underwriters can assess lower premiums.

This is typically done with automobile insurance policies, workers’ compensation coverage and general or employer’s liability, among other types. The vendor or other business generally must include the owner as an additional insured on their policy for this to prove successful. That step allows losses to be tendered directly to the insurance provider, the news source notes.

To perform such a risk transfer, the insurance requirements must be consistent and specific indemnification wording should be incorporated into contracts. Minimum coverage levels, maximum deductibles and the insurer’s financial rating should be evaluated beforehand, MHN indicates.

Non-refundable fees for rental housing amenities violate Massachusetts state law, according to a recent federal ruling.

Investors and property management companies in the state may have to revise their business practices as a result of the ruling handed down by District Court Judge William Young, according to the Boston Business Journal. The judge indicated that state law concerning security deposits prohibits one-time fees for amenities. Rental managers and owners can only charge the first and last months’ rent, a key installation fee and the security deposit when tenants move in.

Other one-time fees are not permitted, according to the ruling, which is broad enough that it may affect a number of rentals. The judge also approved the case for class action status, so further legal proceedings on the issue may be forthcoming. If the ruling is echoed in other states it could have more widespread repercussions.

For now, investors and managers in the state should review their fee and rent policies and make certain they are complying with the appropriate laws. It may be prudent for those in other states to examine laws and see how specific they are for the sake of caution.

Construction is outperforming the typical recovery pace for apartments, according to Fannie Mae, which recently indicated that the multifamily sector may expand by one-third and start as many as 231,000 new units this year. In comparison, only 178,000 multifamily housing starts took place in 2011. The momentum is projected to accelerate into 2013, resulting in 278,000 new starts that year.

The government-sponsored enterprise’s analysts note that multifmaily building permits were up in February as single-family construction slowed. At the same time, debt financing has become more available for apartments due to the high demand for rentals and the limited number of single-family homes prepared for tenants.

Much of this financing is coming from life insurers and other sources, as well as the GSEs. Momentum may shift depending on the outcome of the federal bulk REO program and other factors, potentially giving single-family owners and rental managers an opportunity to expand their operations.

Investors planning to purchase and convert single-family homes should be prepared with a refurbishment strategy, analysts with Morgan Stanley recently indicated. Some homes may be more than a decade old and may have spent a significant amount of time vacant.

These repair needs mean that any practical investment strategy in such homes must be long-term, according to experts. Similarly, the same work will be necessary before selling to owner-occupants if and when house prices recover.

The cost and quality of rehabilitation efforts may have an effect felt by owners long after the work is complete, analysts note. Problems with the plumbing or other infrastructure can result in higher maintenance costs and negatively impact exit pricing should a sale be made eventually.

Rental managers and owners may find that the need to plan long-term is greater in light of these factors. Purchases should likely be based on trends of appropriate length, and differences in condition should be accounted for along with location and other factors when considering a purchase.

Many properties are receiving multiple qualifying bids, according to GlobeSt.com. Manhattan and Brooklyn have posted the highest sales figures despite limited supply. Many owners have reported receiving greater prices than they initially asked, as rental managers and owners see high occupancy, with many Americans coming to the metro area in search of employment.

A number of owners are choosing not to sell despite the high prices because they believe that alternative investments are underperforming the real estate rental sector, making it wiser to hold on to their assets. The imbalance between supply and demand is impacting sector fundamentals and capitalization rates strongly, analysts told the news source.

Business is picking up among high-net-worth individuals and local families which have played a role in the market in the past. Some of these parties withdrew in previous years and are now returning to the real estate industry, while others are first-time buyers. The news source notes that a significant number of closings may take place in the second quarter, meaning the impact of first-quarter trends could be delayed.

The NAHB states that most home builders and many other small businesses are organized in such a way that their owners pay individual tax rates on net business income, which means tax changes meant to affect people could also impact companies. For example, some have proposed setting lower corporate tax rates and reducing the number of tax breaks. Small businesses which pay individual rates could lose their tax breaks without being compensated by the lower rate if lawmakers do not account for their situations.

“The home building community supports simplifying the tax code as part of a comprehensive tax reform process,” one home builder told Congress in testimony. “Such an effort should only occur after a thoughtful and deliberate vetting process that examines proposed changes, necessary transition rules and economic impacts.”

The NAHB noted that changes to dividend and capital gains tax rates could affect investors and rental properties in particular. By extension, they could have indirect effects on property management companies and other industry stakeholders even if there is no direct impact.

Stakeholders in both the single-family and apartment segments of the real estate industry are considering how they might be affected when federal officials and lawmakers decide what to do with government-sponsored enterprises Fannie Mae and Freddie Mac.

The GSEs account for more than 60 percent of the market for permanent multifamily debt, panelists at the Apartment Finance Today conference noted, and their role in the single-family home market is also large. Industry analysts and experts do not expect changes to come quickly, partly because there are many opinions about whether the GSEs should be adapted or replaced, and new ideas may still surface.

Changes are expected to come at some point, however, and many are concerned because of the uncertainty about what form change will take and the lack of concrete information available, AFT reports. Some experts believe the current manner in which the GSEs operate slows business and is prone to inefficiency. Because of that, and uncertainty, some are looking for alternate sources of financing.

Both the single-family and multifamily portions of the GSEs’ operations could impact rental managers and investors, through their role in financing. Investors may find they face more competition, for example, depending on future developments.