Misunderstanding And Inconsistency: The State Of Fraud In The Rental Housing Industry – Property Management Companies Lack A Layered And Systemic Approach To Fraud

Written by Landlord Property Management Magazine on . Posted in Uncategorized

A Forrester Consulting Thought Leadership Paper Commissioned By TransUnion

In today’s property management environment, rental applications have mirrored our desire to do more online and less in person. However, with this increase in accessibility and convenience comes risk — which property management companies are not appropriately prepared for. Unbeknownst to them, the housing industry is experiencing an intense increase in fraud, and current fraud identification methods have not been able to keep up with today’s savvy fraudsters.

Real Estate: Strong Fundamentals Persist—As Do Opportunities: REITs should have several more years of solid growth in property fundamentals as the economic cycle continues and many sectors have the peak in supply growth behind them.

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Kevin Brown | Equity Analyst

U.S. Real Estate Outlook 

After falling in the first quarter due to pressure from rising interest rates, the U.S. real estate market performed in line with the broader U.S. market in the second quarter. The 10-year U.S. Treasury yield increased rapidly at the start of the year but has stayed near the 2.85% rate since mid-February, bringing relative stability to real estate stocks. Given the circumstances, many investors wonder whether we are near the peak of the commercial real estate cycle—higher interest rates could pressure growth rates, cap rates, return expectations, and ultimately asset prices. Also, to the extent that low interest rates have steered investors searching for higher yield and capital preservation toward REITs, the same funds could flow out of REITs if interest rates rise, further pressuring commercial real estate valuations. 

What Do You Mean My Landlord’s Not Responsible? New Survey Shows Tenants Don’t Understand Liability Issues

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Kyle Gelsthorpe

Airline tickets? Check. Credit cards? Check. Wireless charger? Check. Renters preparing for vacation have a checklist of items they don’t want to forget.

Unfortunately, many renters fail to consider a key question that should be at the top of the list: While they’re away, who is responsible in the event of burglary/theft or property damage from a fire, weather or negligence?

Turns out a lot of renters are in the dark about who bears ultimate responsibility.
According to a new survey by global risk solutions provider Assurant of 1,000 U.S. renters, nearly one-third (32 percent) believe either the landlord or property management company should be responsible for damage or liability protection, while an additional 25 percent said they were “not sure” who’s responsible.

This misunderstanding among U.S. renters is significant, especially considering that more Americans rent their homes now than at any other point in the past 50 years and the value of their possessions continues to rise.

Education is Key

It is incumbent upon apartment owners and managers, property management companies and leasing offices to spend more time not only educating renters about damage and liability protection but also helping them understand that a renter’s policy is very affordable.

Not surprisingly, of the 45 percent of respondents from the Assurant survey who said they didn’t have insurance, many cited cost as the reason. Multifamily housing professionals can boost their value and strengthen relationships by:

 Providing specifics on the affordability of a renter’s policy. In other words, how the average annual cost is only $160 a year, which includes $10,000 in coverage for belongings and $100K for liability coverage and replacement costs.

 Discussing how the cost of repairing damage, paying hospital bills or replacing stolen items is often much higher than the cost of protection.

 Positioning a renter’s policy as a competitive advantage. In other words, many landlords and building owners require renters insurance, so having insurance when applying for a new apartment is beneficial.

 Informing renters that insurance may also offer liability coverage if a guest or visitor is injured on the property and litigation ensues.

To Post or Not to Post

Another important area where renters need guidance is around how to mitigate risks while out of town.

Start by offering renters a salient piece of advice: wait to post vacation photos on social media until after they return. Among the 85 percent of Americans who post their vacation news on social media, 38 percent do so while they are away. Frankly, this is concerning because most burglaries and thefts happen while tenants are not home. Bottom line: these posts may be unintentionally sending an open invitation to thieves and other bad actors to break-in to their homes.

Compounding the problem, few renters take precautions to prevent a robbery.

Despite 41 percent of renters experiencing or knowing someone who has experienced a theft, the Assurant survey found that more than one-third (35 percent) do nothing more than lock the door to prevent it. In fact, one-quarter of respondents said they never lock up their valuables when on vacation while an additional 25 percent only do so occasionally.

Because renters are choosing the path of least resistance when it comes to protecting their property and possessions, there is an opportunity to educate them about the risks that come with renting an apartment.

It behooves apartment managers and owners, PMCs and leasing offices to work with renters to help them understand the true value of their possessions, the affordability of insurance policies and the responsibility they may bear if something goes wrong – especially while they’re away on vacation.

Kyle Gelsthorpe, Vice President of Client Relationships and Business Growth

Kyle Gelsthorpe is Vice President of Client Relationships and Business Growth at Assurant, where he is responsible for identifying new domestic and international markets, channels and growth opportunities, as well as directing teams with disciplined prospecting, analysis, negotiation, and implementation of business partnerships throughout multiple product lines.

Gelsthorpe has consistently lead his teams to profitable year-over-year, double digit growth and established strategic partnerships with apartment management companies, owners, and other aggregators of renters, to provide risk mitigation through renters insurance programs and security deposit alternatives. He joined Assurant Specialty Property as a Sales Consultant in 2005 and has since risen through the roles of Senior Sales Consultant and Executive Sales Consultant, and VP National Sales Manager of Assurant’s Multifamily Housing business unit.

Gelsthorpe earned his bachelor’s degree in marketing from Valdosta State University.

Formerly Bankrupt Stockton is Fiscally Healthy Again, but Offers Warning to Others

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Steven Greenhut

Two mid-sized California cities, Irvine and Stockton, have topped a national list of financially healthy governments compiled by an influential watchdog group. Irvine’s top ranking shouldn’t surprise anyone, given that the affluent Orange County city has long been a model for prudence, despite some high-profile spending miscues over the years. But the second-place ranking for the formally bankrupt and chronically mismanaged Stockton is an eye-opener.

Is the poor San Joaquin Valley city really a model for the nation?

How to Produce Eye-Catching Photography in Multifamily that Attracts Renters

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Tim Blackwell

A picture is said to be worth a thousand words. But when it comes to photography in multifamily, a shot featuring the property shouldn’t be that verbose. The right picture with the right angle, the right composition and the right lighting should send the very concise message to prospective renters that this is the place to be.

Tips for Dealing With Difficult Renters

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Elizabeth Millar of AppFolio, Inc.

A great tenant is gold. You know that they’ll respect your property, keep you informed as ears on the ground, and most importantly, pay rent…on time! As great as it would be to have all renters be just like this, it doesn’t always happen. Have you ever signed a new tenant thinking everything is going to be great, but shortly after you hand over the keys you realize that it’s not going to be sunshine and rainbows?

Delaware Statutory Trust DST 1031 Exchange Advantages

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Kay Properties and Investments, LLC

Delaware statutory trusts offer a number of potential advantages to investors. Used correctly, they can be an effective tool for building and preserving wealth. This article discusses a handful of the potential advantages that are available to investors using DSTs for their 1031 exchange. Please remember that Delaware Statutory Trusts also have a number of disadvantages that investors should consider as well.

Better (and Cheaper) Ways to Boost Senior Living Occupancy

Written by Landlord Property Management Magazine on . Posted in Uncategorized

by Guy Lyman, RealPage, Inc.

Solid occupancy numbers often blind senior living property managers to a glaring problem: the cost of keeping those units full.

Add up what you’re spending on third-party lead sources along with internal resources devoted to working leads and you’d probably be shocked at your cost per lease. The good news is that forward-thinking senior property managers are slashing this cost dramatically by simply taking full advantage of marketing tools that have been around for a while now.

Why California Has the Nation’s Worst Poverty Rate

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Ryan McMaken, Mises Institute

The LA Times recently reminded its readers that California has the highest poverty rate in the nation. 

Specifically, when using the Census Bureau’s most recent “Supplemental Poverty Measure” (SPM), California clocks in with a poverty rate of 20 percent, which places it as worst in the nation.

To be sure, California is running quite closely with Florida and Louisiana, but we can certainly say that California is a top contender when it comes to poverty.

This continues to be something of a black eye for California politicians who imagine themselves to be the enlightened elite of North America. The fact that one in five Californians is below this poverty line doesn’t exactly lend itself to crowing about the state’s success in its various wars on poverty. 

Many conservative sites have seized on the information to say “I told you so” and claim this shows that “blue-state” policies fail. One should be careful with this, of course, since there are plenty of red states in the top ten as well.