August 24, 2015

Your Rental property is not worth what you think it is…

August 24, 2015 Today’s New York Stock Exchange activity was historical. Ouch. We may be in for continued volatility for the near term in the equity markets, which reminds me of how this relates to your rental properties… When I speak with new potential clients, the conversation usually goes something like this…. Property Owner: “I’d like to rent out my house, but I need to get at least $1500 a month because we bought it at the height of the market in 2008 and owe too much on the mortgage still to sell it. Can we get that amount for the house?” Me: “Well, according to the market comps and the demand for your house, I don’t think we can get anything higher than $1300 a month.” Property Owner: “But you don’t understand. I NEED $1500 a month in rent.” Me: “I certainly appreciate your needing to maximize the revenue […]
August 17, 2015

Are Residential Rental rates going up?

This is one of the Top 3 questions asked whenever I speak with Landlord and Investors. The answer to this simple question is anything but simple. As with any measurement, the answer is always two words:  It Depends. It depends on how you measure rental rates and what data points you are using.  Below are some of the ways we track this information on the portfolios we manage: Rent per square foot New Move-In rental rates Renewal rental rates Year-over-year blended rent inflation:  This is a method of tracking rent rate growth based on rent growth for new move-ins and renewals.  It ‘blends’ the first two rates since both rates operate off materially different consumer behavioral patterns. Stabilized Occupancy: While this is not exactly a measure of rental rate direction, it is a worthwhile tracking mechanism to observe how a portfolio is performing.  This is the occupancy level reached by a […]