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Renters Eyeing Properties With ‘Homey’ Feel

Take note, property management professionals: There’s a growing trend among renters who are increasingly amenity-driven, especially if those amenities make residences feel like true homes, according to a report released by Village Green, one of the nation’s largest apartment property management firms.

Village Green’s National Renters Index includes data from 1,000 renters of residential properties located in Atlanta, Chicago, Dallas, Detroit, Minneapolis, Phoenix, Philadelphia, and other metro areas. An overwhelming 68 percent of respondents said they’re swayed by high-end and technology-driven amenities. Forty-eight percent of millennial respondents said they’re interest in paying more for “high-end property amenities”—specifically, if a property is outfitted with smart-home technologies (45 percent) and high-end facility amenities such as concierge services or a coffee bar (49 percent).

“The feedback from this National Renters Index serves as a call to us all that we need to be listening to our current and prospective renters about the amenities and experiences sought from their next rental experience,” says Diane Batayeh, CEO of Village Green. “To maximize resident satisfaction, we need to ensure renters carry the belief that they are getting a special experience and living in an environment filled with sought-after amenities and the feel of home.”

Other findings in the survey included:

  • Approximately 62 percent of respondents among all age groups said they’d be more interested in a community that provides a “homey” look and feel, followed by 60 percent who would be more interested in a community that fits their lifestyle, and 52 percent who would like the ability to issue a maintenance request online.
  • About 52 percent of renters are interested in high-end property amenities, such as upgraded kitchens, bathrooms, and hardwood flooring.
  • About 6 in 10 renters read reviews about a rental property, and nearly 1 in 5 renters write reviews about rental communities they have visited or rented.
  • Location is still key. Location, rent, and community environment are the top three reasons that drive satisfaction.
  • High-quality photos appear to be the first thing millennials care about when visiting a rental community website. Also, both Generation Xers and baby boomers ranked a virtual tour as a top website feature that is important to them.
Village Green National Renters Index infographic.

 

 

Source: National Renters Index, August 2017, Village Green

PERSISTENCE

PERSISTENCE

If you saw the movie about McDonald’s Ray Kroc, “The Founder”, you probably loved it.  It’s about that entrepreneurial spirit of getting it done and hanging in there despite what others around you are saying.  And now, you’ve done it. You have created your real estate investment portfolio.  I know that it requires a good mind, persistence, and hard work to get there. Congratulations.

You invested your time and money. You deserve to have a positive experience as a real estate investor.  Here are the items we as property managers are especially concerned about to protect your investments and allow them to PERSIST on to the next generation.

Key Items of Effective Property Management

  • Quality tenants through excellent screening practices
  • Minimization of risk through sound leases and knowledge of property management laws
  • Maintaining the property with best value vendors and regular property inspections
  • Excellent communication to maintain positive relations for all parties
  • Improved cash flow through analysis of market rents and scheduled rent increases
  • Improved cash flow through the reduction of expenses and improving key features
  • Utilization of technology for optimized customer experiences

Speaking of persistence, I just achieved my Certified Property Manager (CPM) designation from the Institute of Real Estate Management (IREM).  It took me seven years!  Please give me a call if I can be of assistance for leasing services or full service property management.  Thank you!

 

For Renters Competing in the Rental Market

If you want to rent a property, you have no doubt found the experience to be a bit frustrating. With limited inventory, you usually will be competing with other applicants. It’s tough for renters competing in the rental market.

Here are some pointers…

Time is of the essence. View the property and submit your application as soon as possible.

Include all required documents with your application (Last two pay stubs or last year’s tax return if you are self-employed and a copy of your ID)

Check your income (can be combined) to make sure you have at least three times the amount of rent in gross (before taxes) monthly income. Different markets vary, but typically in the Reno/Sparks area, we would like your rent not to be more than a third of your income. If you have a lot of debt, you will need more income to offset the debt plus your rent. Typically we like to see your rent plus debt to be no more than half of your monthly income. These are guidelines and can vary by circumstance.

Many application fees are non-refundable so if you have a pet, check with the property manager first to see if your pet will be allowed. Include a photo of your pet(s) with your application. If you have a biting breed dog, be prepared for some push-back. The owner’s insurance policy may not allow the owner to have a tenant with your breed. If you have a Service Dog or Emotional Support Animal, let the property manager know as your animal will be allowed with the proper documentation.

Be sure to include current contact information for your current and/or previous landlords. A fax number is helpful as most rental history verifications are done in writing (faxed). Contact your current landlord if possible to let them know they should expect a call or fax regarding your rental history.

If you have Renter’s Insurance, be ready to provide a copy of your policy. If you don’t have Renter’s Insurance, contact your agent. The owner’s policy does not protect your personal property against damages or theft. Renter’s Insurance is affordable – usually $15-$20 per month or less. It can also give you money to move if your rental becomes uninhabitable (fire/flood, etc.).

Check your credit report. I recommend Credit Karma www.creditkarma.com, where you can get information to contact any debtors you may need to get in touch with to pay off debt. If you have any debt to previous landlords, utility companies, cable companies, or phone companies pay those first. Those debts could very well create a denial of your application.

Many management companies will allow you to use your approved application for up to three months for any of their available properties to help you find a property if you lose out on your first choice. Stay proactive and create good communication with your prospective property manager. Our goal is always to assist you.

Please feel free to contact me /contact-us/ if you have any questions and best of luck in your home search.

Paying for Property Management

If you question the value of paying for property management to have your investment property professionally managed, I understand you.  You probably enjoy some aspects of managing and especially enjoy the savings to your bottom-line.  And also there is the reassurance that you will do the best job of protecting your interests over anyone else.

 

But wait.  Consider that effective property managers can increase your bottom-line, take away the aspects that you don’t enjoy, and do a great job of protecting your interests. Moreover, we can give you the best benefit of all – TIME.  More time to do what you love, or time to do less, all the while knowing that we have your best interests at heart.

 

If you want to create more time for the things you enjoy, you can still be involved in managing your property to a smaller degree, and have the best of both worlds. The bottom line is good property management is affordable.

 

One-time Management offers advertising, showing, screening, and lease signing if you just want to the lose the hassle of finding a great tenant.  Full-service Management offers the whole spectrum of management but can be tailored to your requirements (say you want to handle the maintenance).  If you want to improve your cash flow prior to sale, we can show how we would do it and manage until the sale.

 

Please give me a call to discuss how I can give you the gift of more time and more value with our custom property management services.

 

 

Kudos from Maureen

Hubb Realty, and specifically Paige Hubbard!
You and your team are doing an amazing job of taking care of myself and my property! Anything that I’ve needed or asked for you have either accommodated or done your best to make happen … smoothly, professionally, and without including me on every little detail; which is a blessing to me as a homeowner and lessor! I can sit back relax and enjoy the benefits of your services. Thank you so much for everything you do I really appreciate you!

Maureen

Customer since June, 2016

Understanding the Gross Rent Mulitplier

UNDERSTANDING THE GROSS RENT MULTIPLER

The Gross Rent Multiplier (GRM) is one commonly used, and easy to understand metric to value small residential income properties, typically 2 to 4 units.  The GRM is simply a ratio between the unadjusted sale price and annual income (Sale price divided by annual income).

For example, assume a 4 unit building with 1 bedroom apartments that rent for $650 per month sells for $350,000.  To calculate the GRM, simply divide the sale price by the annualized rents ($350,000 / ($650 x 4 units x 12 months)) = 11.22.

Once you have enough data from the market, you will see patterns develop.

The average GRM from August 2014 to August 2015 was 10.79.  The average GRM from September 2015 through July 2016 was 12.14, which indicates an accelerating market and supports the upward trend of GRMs indicated by the graph.  It is also noted the GRMs in the early time periods of the graph tend to be closer to the trend line, while the more recent transactions are more widely dispersed from the trend line.  This wider dispersion may reflect greater volatility in the market as investors compete and push up prices, as well as lesser quality properties with lower rents coming to market.

Conclusion

In conclusion, the Gross Rent Multiplier is a widely used and easily understood valuation metric typically used for small residential income properties.  The simplicity of the multiplier does include some drawbacks, as it does not take into account any vacancy or operating expenses.  However, this is usually not a problem as most small apartments sell fully rented and require the tenant to pay their own utilities, with the exception sewer and trash removal.

If you’re an owner thinking of placing your small rental property on the market, using a Gross Rent Multiplier (GRM) of 10 to 12, against your gross annual income, may give you a generally well supported idea what your property is worth.

If you’re an investor, the information presented above should give you some guidance on how the market is valuing income streams.  If you’re considering a buying property with a GRM in the mid to high teens (13 to 18), you are paying dearly for that income, and absent some event such as renovating and repositioning the property to achieve higher rents, may suffer inferior overall financial performance.  On the other hand, by acquiring a property with a GRM below 10 your investment should outperform the average.

For more information on investing and managing small residential investment properties, contact Paige Hubbard, ARM, at paige@hubbrealty.com.

Patagonia Moving Into Downtown Reno

Patagonia is moving into downtown Reno thanks to visionary people like Brian Egan.  He and others are transitioning historical locations in to great new venues.  According to the Reno Gazette-Journal, “The Hudson Project, on Center and State streets south of the Truckee River, was originally a car dealership for Hudson Motor Car Company in the 1940s. Most recently, the building housed Machabee Office Environments before it closed too. Egan purchased the building and refurbished it over the last few months while in search of a major retailer.”

http://www.rgj.com/story/news/2016/08/03/patagonia-moving-into-downtown-reno-second-largest-retailer-25-years/88004422/

The old post office in downtown Reno is another building that is being refurbished. It is an Art Deco wonder.  I am so grateful that it was saved for future generations.  Major retailer West Elm will be occupying the ground floor along with other retail shops. If you haven’t yet checked out The Basement, I highly recommend it. It is fun to see what they have done so far.  There is a lounge area where you can take a break from your day and enjoy a refreshment in a cool space.

http://www.thebasementreno.com/

 

National Apartment Report 2016

The National Apartment Report 2016 shows The Biggest Little City ranked in the top three of U.S. cities that saw the highest increase in apartment rents at the beginning of the year.  Based on one bedroom apartments in February, the rental rate in Reno increased by 12% year over year, compared to a national average of 4.4% at the end of 2015…

http://list.abodo.com/february-2016-national-apartment-report/

Nevada Museum of Art Nightingale Sky Room

The Nevada Museum of Art Nightingale Sky Room is available year-round for private events, weddings, retreats, and community activities, making it a new northern-Nevada landmark.  Learn more about this beautiful venue.

http://www.nevadaart.org/skyroom/

This is my own short tour of the art around the museum just across the street from Hubb Realty!

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