Property managers and rental owners in Oklahoma are seeing more echo boomers and millenials, The Norman Transcript reports, two groups of young adults who are driving rental activity and construction higher.

Millenials, between the ages of 25 and 34, are currently an expanding demographic in the area. According to Advertising-Age, the percentage of millenials increased 12.2 percent between 2000 and 2010, making it the fifth-ranked state in the nation for growth of that demographic.

Given that young adults are traditionally renters and some experts say their arrival is a predictor of economic growth, rental property owners are reportedly looking forward to the future. The older echo boomers fall into the category of young professionals, which one industry broker noted represents a prime demographic for the rental housing sector.

With the population looking unfavorably on homeownership at the moment, these young adults may want to rent houses rather than buy them, creating an opportunity for property owners investing in the area.

This year is expected to see the continuation of 2011 trends, such as increasing rents and occupancy, which made last year a relatively good one for are rental housing stakeholders.

According to the Kansas City Star, residents in the city’s metropolitan area are increasingly choosing to rent, rather than own homes.

Rents have risen and construction of new rental units is up, the news source reports, to meet the desires of a population who are largely renters by choice. One renter noted it made no sense to buy since he was uncertain how many years he would stay in the city.

One area brokerage manager stated that the long-term commitment a mortgage may require is a major factor, also citing efforts by rental managers and owners to offer higher-quality properties with more amenities, better appliances and furnishings, or other perks.

Another expert told the source that the current single-family housing market has caused people to rethink homeownership, and many have decided they do not want to pursue it. While he said the housing market will likely recover in time, this attitude shift may be an opportunity for investors willing to rent a home to give residents the best of both worlds, allowing them to live in a single-family property without being tied to it long-term.

Federal plans to market 200,000 foreclosed homes as rentals are drawing major interest among investors including private equity firms, Bloomberg reports.

More than one firm plans to invest $1 billion or more in the opportunity from now to 2016, according to the news source, as they vie for the chance to be involved in a move that is expected to exercise a significant positive impact on the national housing market.

GTIS Partners indicated it expects to invest largely in the hardest-hit states, such as California, Nevada and Arizona. Investors and property management companies in harder-hit states should expect the largest changes, while those in areas with fewer foreclosures will likely experience less of a difference as these new rental homes become available.

Proponents of this move believe it will stem the tide of dropping home prices and reduce lender losses on foreclosed and distressed properties. Proposals for how to go about converting REO properties to rentals have been under discussion since September, and now officials and investors are preparing to move forward.

Property managers or owners with a temporarily vacant property might be wise to take steps so that it does not appear obviously empty, which in turn can discourage unwanted guests.

MainStreet notes that it is possible to reduce the risk of vandalism and theft with fairly simple steps. They will not eliminate the chance completely, but safety can be improved and cleanliness can be maintained.

Keeping the property in good condition tends to give the impression it is occupied, or at least visited frequently. As a result, people who do not want to be found are less likely to stay there. Since this makes the property more appealing to potential renters, this effort will not be wasted either way.

Put lights on timers will also help deter undesirable guests, helping to make the home look occupied.?Also consider using the blinds. According to the source, one method is to leave bottom blinds closed, so no one can see in, while higher blinds remain open. This may give the impression that the home is occupied, but residents are upstairs.

Beyond that, owners and managers should be careful how much information they make easily accessible through advertising.

According to GlobeSt.com, demand for rental housing in Phoenix is expected to level off this year after a moderate increase during 2011, though investment activity is expected to remain strong.

Such an increase in demand would represent a continuation of the trend that marked 2011, in which demand was high enough for rents to increase sharply. Net effective rents rose 12 percent overall since 2009, one expert told the source.

The demand for rental housing is high enough that construction of several new apartment units are planned, indicating there is likely an opportunity for investors to purchase profitable rentals in the area. Rental property services are available for those who wish to own a property without operating it.

According to the source, Phoenix has been the target of significant investment recently because of the market conditions. One aspect of the market that has improved recently is the number of real estate-owned properties in the metro area, which decreased in 2011.

Some investors are reportedly pursuing value-add deals in the area to better appeal to prospective tenants. Colliers International executive Brad Cooke told the source this year would see a shift from REOs to traditional sellers.

Property management companies and landlords in the Twin Cities may be benefiting from high rental demand.

The Keystone Report for the Builders Association of the Twin Cities shows permits were issued for construction of 465 new units in the are during January, the organization reports, more than double the number begun during the same month in 2011. Curt Christensen, Builders Association president, stated that 2012 is expected to be a good year, based partly on this beginning.

While the number of permits issued was actually lower by about 10 percent at 185, this is because the new units are being distributed throughout fewer buildings. Almost two-thirds of the units are located within just five buildings. One is in St. Paul and one is in Hudson, with each of the two holding about 44 units.

The other three have a combined 177 units, and are all located in Minneapolis, showing that builders perceive high demand for rental housing there. Rental managers may find opportunities in the area, while investors should note that this indicates unmet demand exists there.

President Barack Obama’s housing plan represents the federal government’s recognition of the importance of the rental housing market, according to the National Multi Housing Council (NMHC) and National Apartment Association (NAA).

In that respect the organizations support the plan, specifically the initiative to use bulk sales of real estate-owned properties held by the Fannie Mae, Freddie Mac and the government. The organizations did warn against housing policies that emphasize homeownership at the expense of rental housing, noting that preferential policies contributed to the national economic crisis.

With regards to the plan, the organizations also noted that care should be taken to ensure the repurposed homes are maintained in good condition, suggesting that owners and rental managers will need to work together to take advantage of the opportunity.

“Importantly, the president’s proposal underscores our key message that while there might be an oversupply of single-family housing, there is a shortage of rental housing,” NMHC senior vice president of government affairs Cindy Chetti said in the statement. “Demographics and changing lifestyles have led to a structural shift in our nation’s housing preferences to more heavily favor renting. Renters could make up half of all new households this decade, more than seven million new renter households.”

These projections indicate investors may need the help of property management companies and other professionals to meet demand in the years ahead.

Rules announced in December by the Federal Housing Administration (FHA) have sped up the process of reviewing and approving many of the federal agency’s loans, according to Apartment Finance Today.

The rules changed the criteria for having market-rate construction and rehabilitation loans reviewed by FHA regional and national loan committees, so that loans for less than $25 million and fewer than 250 units are now exempt from the national committee review process. Previously, any loan for more than 150 units or $15 million had to be reviewed before approval.

According to the source, these reviews were slowing loan approvals significantly before the new rules were implemented. Some other changes were also made. One executive told the source a deal saved at least four to six weeks because of the change, allowing construction to begin.

Rental managers and property investors may want to keep an eye on these loans, since this change means that competing properties or investment opportunities might be begun and completed more quickly. The changes were made in response to the FHA’s increased role in industry lending.

Property managers may want to step up their efforts to retain tenants, given the results of a recent survey.

Research by Kingsley Associates indicates that the number of renters choosing to renew their leases dropped to a three-year low in the fourth quarter of 2011, though analysts suggest tenant satisfaction with current rental properties was stable during the period.

“As renters themselves recover, there are indications that more of them are renting by choice,” said Kingsley Associates principal John Falco. “They aren’t unhappy – just choosy.”

Tenant satisfaction dropped only 0.1 percent from the previous quarter, according to researchers, and has been stable for three consecutive periods now. This suggests that owners and property management companies are not driving tenants away.

According to the report, 32 percent of surveyed renters had incomes of at least $75,000, higher than the 30.7 percent with incomes of less than $40,000. This result reportedly represents a deviation from recent years.

The number of renters 55 or more years old also increased to 13.4 percent from 12.6 percent in the period ending in the second quarter. The number of residents who live alone grew more than 2 percentage points, reaching 45.9 percent of those surveyed.

Multifamily Executive reports that data from sources (including rental data firms MPF Research and RealFacts) suggests rental managers may need to stop increasing rents soon.

Property management companies and rental owners increased rents an average of 2.3 and 4.7 percent during 2010 and 2011, MFE notes, but the Bureau of Labor Statistics only reported 2 percent growth in wages year-over-year during the third quarter of last year.

This suggests rents may significantly outpace wage growth, analysts say, threatening to price residents out of their units. Data from RealFacts suggests this may be happening in some markets already, according to MFE, with one executive reporting that more tenants are moving out due to rent increases than in the past.

While rents did drop in some areas during the fourth quarter of 2011, however, the source notes that it is traditionally a slow quarter and may not be representative of a meaningful trend.

MPF Research’s Greg Willett noted that eventually, rent increases may cause tenants to feel they can no longer afford a property. Analysts question when that point will be reached, according to the source, although some signs indicate that wages may rise moe quickly this year than in 2011.