A report from real estate appraisal firm Miller Samuel and Prudential Douglas Elliman indicates the median effective apartment rent in Manhattan rose to $3,121 from $2,849 over the past year, Bloomberg reports.
Rents reportedly climbed 9.5 percent in the final quarter of 2011, which the report attributes to landlords deciding to cut concessions and raise rents despite that quarter traditionally being the slowest period in terms of leasing activity. This would not have been successful without high demand, underscoring the level of interest in
Before buying a house or other property to rent, future owners should get ready by examining their credit score and credit history.
A credit score is one of the main factors in determining loan terms, if not the primary factor. What a given credit score will qualify an investor for may vary somewhat between lenders, but the importance of credit does not.
One expert told Bankrate.com that having a credit score lower than 740 tends to mean the same interest rate will cost more. This will likely mean paying points in order to keep the rate steady,
Local governments are eagerly embracing the rise of renting, Charleston's Post and Courier reports, because commercial properties such as apartments are taxed at almost triple the rate of owner-occupied homes.
This makes them exceptionally attractive at a time when many local governments are struggling with limited budgets. This is especially true for the public school system, according to the source, which receives no funding from taxes of owner-occupied homes and a substantial amount from rental and other commercial properties.
Because all
Austin, Texas, is expected to see population growth of more than 50,000 people over the coming year, Multi-Housing News reports, an increase likely to mean higher demand for apartments.
Rental agents and managers may find themselves very busy with the influx, which MHN notes is likely to significantly raise the occupancy rate in the metro area and increase rents as a result. The city also has a favorable employment situation, the source reports, with 15,500 more jobs added by employers in the third quarter. This constitutes a 2 percent increase.
According
New research from forecasting firm Property and Portfolio Research (PPR) suggests average rents and median household incomes will grow at similar rates.
This represents a departure from the trend of the past decade, according to the source, during which rents rose about 8 percent slower than incomes, partially due to atypical focus on homeownership during some of the decade.
Current conditions have been pushing rents upward, leading some to wonder whether rent growth might outpace income in an economy still suffering from slow job creation.
Government efforts to reform the tax code could have consequences for the multifamily industry and residential property owners, according to Apartment Finance Today.
One item that has come up as a subject of debate more than once among lawmakers is the low-income housing tax credit (LIHTC), which has contributed to the creation of more than 2.4 million rental housing units since its establishment. While its success counts in its favor, however, the LIHTC is a fairly large tax expenditure.
At a time when officials are striving to cut spending
Located in the right spot, a rental property can be quite a profitable venture. Most landlords need some help getting a rental business off the ground, however, and will want to evaluate their financing options.
A sizable down payment is generally necessary, with 20 percent being the norm. Having as much as 25 percent, however, may lead to better loan terms and qualify a buyer for a much more favorable interest rate.
If that is not possible for some reason, or other circumstances make the process difficult, Bankrate.com suggests going
Information from real estate data firms indicates that 2011 was an exceptional year for rental business, Multifamily Executive reports.
MPF Research revealed that 2011 occupancy rates were up about 1.1 percent year-over-year and 3 percent since 2009, reaching a national average of 94.6 percent. Occupancy dropped slightly in the fourth quarter, but even the slowdown typical of that time of year could not entirely stop rents from increasing.
Of the markets tracked by the firm, those with the lowest occupancies were Phoenix, Indianapolis,
Moody's Investors Service indicates that multifamily sector real estate investment trusts are looking forward to a strong performance in 2012, according to Multi-Housing News.
According to the source, analysts see positive fundamentals and expect a stable rating outlook for the year. This reflects the consistent demand for rental properties that consumers are projected to demonstrate.
Moody's Investors Service stated multifamily REITs are well-placed to weather an economic downturn, compared to how they were in 2008. The report states
Before you approve an applicant to lease a unit of yours ---or give your A-OK to your rental property management firm to let them sign a contract---it's highly advisable to go over the potential renter's credit history.
Checking an applicant's credit will generally require a few pieces of information, specifically his or her name, address and Social Security number or Individual Taxpayer Identification Number.
Extensive credit information is compiled by Equifax, Experian and TransUnion, but landlords and property managers commonly contact
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