Apartment Construction Begins to Slow but Demand Remains High

Written by Landlord Property Management Magazine on . Posted in Blog

By Karina Estrella | Trepp

With homeownership rates sagging over the last 11 years thanks to shifts in demographic trends, apartments have become one of the most in-demand property types. As we wrote in our previous multifamily snapshot, apartment demand rose to its highest level in 25 years in 2017, which is a generational peak. However, some of the sector’s underlying financials are beginning to decelerate – at least when it comes to loans in CMBS. According to Trepp data, the average occupancy for multifamily CMBS loans has been trending downward over the past two years. Average occupancy was measured at a recent low of 93.1% in March, which is 60 basis points lower year over year.

Per Multifamily Biz, construction starts for seven of the 10 largest US multifamily markets dropped in 2017 when compared to 2016. The overall volume of multifamily construction starts was $194.7 billion last year, which is 7% lower year over year. However, it seems that the elevated levels from previous years continue to weigh on occupancy levels.

2018 Cap Rates Under Pressure

Written by Landlord Property Management Magazine on . Posted in Blog

By Kathy Fettke, Co-Authored by Donna Behrens

Landlords and investors may feel the sting of lower cap rates in 2018. We’ve been seeing price appreciation and rent growth year after year during the economic recovery, but the economy is shifting gears and returns are shrinking. Cap rates are expected to run flat this year, or fall somewhat, depending on other economic pressures, like interest rates.

If you are a real estate investor, you know that cap rates are an important valuation tool. They can help you determine the value of a property before you buy it, and they can tell you what kind of returns on investment you are getting as you move forward.

 

Congress Enacts Tax Reform for 2017 and 2018

Written by Landlord Property Management Magazine on . Posted in Blog

by Richard Page

A congressional aide placing a placard on a podium for House Republicans’ legislation to overhaul the tax code. Thomson Reuters

Except for three provisions, all of the new tax changes included in the recently passed Tax Cuts and Jobs Act (TCJA) go into effect beginning in 2018 or beyond.

The changes applicable for 2017 federal returns are:

  • The adjusted gross income threshold for medical expenses on Schedule A will be 7.5% for all taxpayers for 2017 and 2018.
  • 100% of bonus depreciation is eligible for qualifying assets purchased after September 27, 2017.
  • The home mortgage interest deduction is limited to no more than $750,000 of principle residence acquisition indebtedness for loans incurred beginning after December 14, 2017. The limit is $1,000,000 for loans incurred before December 15, 2017.

Reasonable Accommodation or Undue Burden?

Written by Landlord Property Management Magazine on . Posted in Blog

Jessica S. Weisman, Managing Partner of Client Education | Kimball, Tirey & St. John LLP 

Disability is the most common basis for the filing of housing discrimination complaints in California and nationally. According to the California Department of Fair Employment and Housing (DFEH) 2016 Annual Report, 39% of the housing complaints filed were based on mental or physical disability. According to The Office of Fair Housing and Equal Opportunity (FHEO), in 2016, out of 8,385 complaints, over 50%, 4,908, were based on disability. 

A Slip of the Tongue Can Cost You

Written by Landlord Property Management Magazine on . Posted in Blog

by Jessica S. Weisman, Managing Partner of Client Education | Revised from a previous KTS article prepared by D. J. Ryan, former Director of Education (Retired)

One of the most common questions asked by managers, leasing professionals, and owners during our fair housing trainings is, “What can I, or can’t I say, so I won’t get in trouble with fair housing?”

It should come as no surprise that what you say, type, text or post on social media could increase your potential for a fair housing complaint or lawsuit.

Revenue, Retention, Reputation: Why the Traditional Landlord Approach is Changing

Written by Landlord Property Management Magazine on . Posted in Blog

by Charlie Wade | VTS

Historically the primary focus of the vast majority of office landlords was to secure enough tenants to fill their buildings as quickly as possible. Their modus operandi was simple: persuade an occupier to sign as long a lease as possible, with a minimum rent-free period and on a maximum pounds per square foot rent, in the quickest way possible. Once the tenant signed on the dotted line the landlord could essentially not worry about that tenant/building until a lease event loomed large on the horizon.

The Economic Implications of Rent Control

Written by Landlord Property Management Magazine on . Posted in Blog

This article was originally published on the Resident Screening Blog.

Since the housing crisis, the demand for affordable rental housing has skyrocketed as Americans have shifted from a homeownership mentality to a renter mentality. As Richard Florida from CityLab might argue, the migration from suburban homeownership to renting has been increasing since 2006. In fact, from 2006 to 2014 the number of U.S. renter households did increase by 5%. With a large percentage of the renter population concentrated in or near urban areas, some of the most major cities in the U.S. lack the necessary housing supply to meet the demand.

The Future of Rental Housing: More 2018 Regulations and Legislation

Written by Landlord Property Management Magazine on . Posted in Blog

By Becky Bower | ApplyConnect

2017 was undoubtedly a busy year for rental housing legislation. With bills like California’s immigrant housing protections and the City of Seattle’s ban on criminal records within background reports, you’ll start to feel the effects of these passed bills this year. Take a look at pending and future rental housing legislation that could affect properties across the U.S. in 2018, and be aware of legislative trends that surfaced last year. One prominent bill in one state could very easily turn up in another state down the road.

2018’s Hot Item: Online Rent Collections

Written by Landlord Property Management Magazine on . Posted in Blog

by Becky Bower | ApplyConnect

Let’s face it – physically collecting rental checks is outdated. It requires you to invest a lot of time into recording the payment into your tenant ledger, and standing in line at the bank to deposit it. This process doesn’t even include enforcing late fees, bounced check fees or any time spent talking to a tenant that doesn’t have the rent. Bring your rent collections into the future by switching to a convenient, easy, and hassle-free online solution in 2018.

PayRent.com