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National Average Apartment Rent in January was $1,463

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By The Editors
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national average apartment rent

The national average apartment rent in January was $1,463, up three percent year-over-year and the slowest pace in 18 months, according to a report from Rent Café.

The report says rents “are likely to maintain an upward streak throughout 2020, as the number of renters continues to rise in the (United States).”

The demand for apartments is high, including among those renting by choice. Statistics show that 157 percent more Americans who earn over $150,000 per year began renting this past decade, showing a preference for a more flexible and comfort-driven lifestyle, according to the report.

the evolution of national average apartment rent

Experts foresee lifestyle will drive apartment trends in 2020

Real estate and economy experts agree that the change in Americans’ attitudes towards housing is an important factor in the evolution of the apartment industry. People of all ages are increasingly being driven by mobility and lifestyle enhancement, displaying a growing preference for amenity-rich buildings in walking distance of urban centers. Experts predict this change in housing preferences will stimulate developers and builders to deliver more apartments.

However, they also note a lack of affordable housing brought on by increasing land and labor costs in the construction industry, remarking that one of this year’s most significant challenges will be achieving a balance between delivering both quality and affordability.

Not all experts agree that choice is driving rentals

“I’m skeptical of the view that the increase in rentals is driven by ‘choice.’  Respondents to Fannie Mae’s National Housing Survey consistently report that they would prefer to own rather than rent,” said Benjamin Keys, Ph.D., Rowan Family Foundation Associate Professor and Associate Professor of Real Estate at The Wharton School, The University of Pennsylvania, in the report.

“The rise in rentals is more likely driven by constraints rather than preferences:

  • “First, house prices are extremely high, especially in the places with the most desirable labor markets.
  • “Next, mortgage credit remains extremely tight, as minimum credit scores and documentation requirements remain far more stringent than they were before the financial crisis.
  • “Finally, millennials have suffered the double-whammy of entering their peak employment years during a weak labor market and bearing the burden of substantial student loans.

“All these factors are more likely to be driving increased rentals rather than changes in preferences,” Keys said.

“Going forward, I expect house prices to remain high as demand outstrips supply. Simply put, there is not enough new construction to meet demand in the cities where the jobs are. Construction shortages are a function of higher costs for materials, higher labor costs, and more onerous local political barriers to building,” Keys said in the report

 80 percent of largest renter hubs have rents below $2,000

The report on national average apartment rent says 16 out of the 20 largest apartment hubs kept rental rates below the $2,000 mark in January. Two of these cities have rates below $1,000: Indianapolis and Columbus. Indianapolis apartments are the cheapest out of all urban renter hotspots, with an $887 average rate.

When it comes to rent hikes, Phoenix takes the lead, with an 8.3 percent increase since last year, closely followed by Las Vegas, where rates grew by a lower but still significant 5.9 percent. Population migration explains the hikes in both cities — Phoenix and Las Vegas are among the most popular destinations for Californians looking for more affordable lifestyles, so rents are growing as the cities have to accommodate an increasing number of residents.

Around the country, apartments for rent in Atlanta went for $1,477 in January, apartments in Washington, D.C. for $2,233 per month, and Tampa apartments rented for an average of $1,33.

The Rental Housing Decade: 12 Trends From 2010 to 2020

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Winter Multifamily Outlook Shows No Letup in Demand

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By The Editors
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Winter Multifamily Outlook Shows No Letup in Demand

Rent growth in the coming year will average 2.7 percent nationally, according to Yardi Matrix’s multifamily outlook prediction in its Winter Seasonal Outlook for 2020.

“We expect the U.S. multifamily market’s strong performance to continue. Economic growth remains steady, supply absorption is robust in most markets, and millennials and baby boomers are fueling demand,” the report says.

The report says there is still “room to run” in the current cycle in multifamily.

Some highlights of the Yardi Matrix winter multifamily outlook report:

  • “The multifamily market has performed consistently well for several years, and little is expected to change in 2020. The healthy job market and demographics have produced robust demand. We expect economic growth to remain moderate.
  • Rent gains should remain healthy in most metros, continuing to be led by rapidly growing metros in the Southwest and Southeast. Affordability is a growing problem, however, and the cost of rents is starting to put a strain on increases in many of the higher-cost metros.
  • More than 1.5 million units have been delivered over the last five years, and we expect new supply of roughly 300,000 again in 2020. Deliveries have slowed in part because of the labor shortage that has lengthened high start-to-finish construction times.

A supply and demand issue

“Despite the current expansion running longer than a decade, homebuilders have not kept up with the demand for housing, especially on the single-family side, and as a result the nation faces a significant housing shortage. With housing production yet to fully recover from the last recession, many metros are facing an undersupply.

“The tight labor market and 3 percent wage growth have produced ongoing robust household formation.

“Job openings have outnumbered unemployed job seekers for more than a year and a half, and while the unemployed and the open positions remain both geographically and skill-set divergent, the trend of continued hiring remains.

“Even if employment were to cool and the economy to face a mild recession, we expect the housing market, and multifamily specifically, to ride through the downturn with relatively little impact,” Yardi Matrix says in the report.

Phoenix and Seattle will continue to perform well

“After leading the nation in rent gains for the past 18 months, Phoenix (7.7 percent) and Las Vegas (5.4 percent) are poised to continue their strong runs, bolstered by population growth and economic development.

“Pushing in from nearby California, residents can get more value for their dollar in markets that have consistently diversified their employment pool. Growth in Las Vegas is poised to maintain similar levels in 2020 (5.4 percent) due to continued economic development. Meanwhile, we expect rent growth in Phoenix to temper to 3.7 percent but remain well above the U.S. average.

“Technology-driven markets pulling in coastal talent will continue to perform well above average in 2020, leading rent growth. Seattle (5.8 percent) and Salt Lake City (4.2 percent) still benefit from significant demand, despite having some of the more robust multifamily development pipelines,” Yardi Matrix says in the report.

Winter Multifamily Outlook Shows No Letup in Demand
Winter Multifamily Outlook Shows No Letup in Demand

Multifamily outlook summary

“Overall, the economy continues to walk a fine line of slow economic expansion. From a real-estate perspective, especially for multifamily, the fundamentals of supply, demand and cost of capital remain very well-balanced and indicate continued steady growth for the foreseeable future, barring a major shock to the capital markets and macro economy on par with the global financial crisis,” the report says.

Yardi Matrix Report Forecasts A Solid Multifamily Housing Market

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Portland And Oregon’s Housing Affordability Challenges

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By The Editors
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Portland And Oregon's Housing Affordability Challenges

The housing-affordability crisis is unfolding nationwide, hurting families and communities, according to Growing Homes Together, a project of the National Multifamily Housing Council (NMHC).

“While federal programs exist to help address the country’s housing needs, the crisis is largely being combatted at the state and local level — as communities face their own unique challenges,” the group says.

Growing Homes Together is a resource center designed to spark discussions at the state and local levels about policy solutions to improve America’s housing crisis.

Here is a chart outlining issues in Portland and Oregon:

2-18-20 oregon growing homes together OR-One-Pager

 

Download the PDF chart here

Seattle And Washington’s Housing-Affordability Challenges

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By The Editors
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Seattle And Washington’s Housing-Affordability Challenges

The housing-affordability crisis is unfolding nationwide, hurting families and communities, according to Growing Homes Together, a project of the National Multifamily Housing Council (NMHC).

“While federal programs exist to help address the country’s housing needs, the crisis is largely being combatted at the state and local level — as communities face their own unique challenges,” the group says.

Growing Homes Together is a resource center designed to spark discussions at the state and local levels about policy solutions to improve America’s housing crisis.

Here is a chart outlining housing affordability issues in Seattle and Washington State:

WA-One-Pager

You can also download the chart here.

3 Kinds Of Rental Housing Owners And How To Work With Them

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By The Editors
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3 Kinds of Rental Housing Owners and How to Deal with Them

Chart courtesy of Buildium

Property managers have to deal with three kinds of rental housing owners, from the regular investor to the accidental landlord – and a third type, according to Buildium’s 2020 Rental Owners’ Report.

Buildium surveyed more than 600 rental owners across the country “to better understand the motivations and pressures that drive their decisions, as well as the expectations that they have of property managers. We put it all in the context of our research on the property-management industry and the rental market to help property managers turn insights into action,” the report says.

The report says the recent seller’s market in properties means there has been a change in the type of owner seeking property management. Also the number of “intentional investors” is now “55 percent of rental owners in 2019, an increase 39 percent since 2018.”

3 kinds of rental housing owners

Accidental landlords have been selling, the report says, and are being replaced by the intention investors and a third kind of owner.

“As home prices have begun to recede from the peaks they’ve reached over the last two years, interest is growing among a new generation of investors. Property managers will benefit from an ability to prove their value to not only the accidental landlords and intentional investors they’ve served in the past, but also to a new group of DIY landlords tempted to manage their rentals with apps,” Buildium says in the report.

3 kinds of rental housing owners
Chart courtesy of Buildium

Here are the 3 kinds of rental housing owners:

  • Intentional Investors bought a rental property as an investment. These are about 55 percent of the rental housing owners.
  • Accidental landlords “fell into rental-property ownership due to circumstance.” These types generally do not plan to buy additional properties. They represent about 30 percent of owners.
  • Unintentional investors “fell into rental-property ownership due to circumstance” and then added additional rental-housing properties. These are about 16 percent of owners, the report says.

How to deal with rental owners’ stress points, goals

“Finding a property manager and working with them is a consistent source of stress for rental owners, illustrating the importance of providing excellent customer service from the very first interaction,” the report says.

Maintenance is listed as the most stressful aspect of owning rental housing by the owners in the survey, followed by finding a property manager and filling vacancies.

Three out of four owners “agree that reliability and trustworthiness are the most important qualities a property manager can have,” the report says.

rental housing owners stress points
Chart courtesy of Buildium

The Buildium report also had a number of quotes from owners offering advice on how best to deal with them.

  • “Be a quick communicator, be thorough, and follow up when the owner reaches out. Trust can be broken, but if fostered, can build a great portfolio and relationship.”
  • “Show in dollars how a property manager will save me money over doing it myself.”
  • “Stay on top of market conditions to understand rent and vacancy rates. Be prepared to inspect the houses regularly to ensure they’re being cared for properly. Keep accurate financial records for cash flow and tax purposes.”
  • “Make my property inviting to good tenants, and keep them there with good service.”
rental property owners and why they hire property managers
Chart courtesy of Buildium

Property Managers Face Unprecedented Change In 2020

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6 Types Of Rental Property Fencing To Consider For Your Budget

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By The Editors
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Fencing for your rental property is the maintenance checkup this week, provided by Keepe, who reports getting a record number of repair requests from property managers and tenants about weather-damaged and broken fences this winter.

When it comes to installing a fence on your rental property the kind of fencing you choose can make a serious difference on your finances, maintenance  and most of all, the safety of your tenants and your property.

Broken fencing can be an inconvenient and time-consuming expense. Being prepared against costly last-minute repairs is possible, and it begins with knowing how to best protect your investment.

6 types of fencing for your rental property

Different kinds of fencing materials have different maintenance needs, which are fundamental to explore for the purpose of selecting which fencing option really is best  for both your needs and expectations.

No. 1 – Wood fence a traditional favorite requiring maintenance

Wooden fences are a traditional favorite and have historically been an iconic component of American homes everywhere.

This is likely due to the fact that wood is a widely available material, and a great number of varieties – especially pine and cedar, two of the most commonly used for fencing – are rather inexpensive. Different cuts, grains, colorations, staining treatments and painting styles make wooden fences very versatile as they are easy to customize to match homes and gardens as desired.

The main downside with wooden fencing is the fact that it requires regular maintenance work to both last and look appealing: it can be severely damaged by weather, vegetation and parasites. The best available way of protecting wooden fencing is ensuring that the wood is regularly treated by a professional, who can apply sealants, stains and preservative coatings.

A pricier option, “Pressure Treated” (PT) fences, are made with wood that has been thoroughly treated with preservative chemicals when manufactured, and generally come with special warranties. Overall, our experts suggest to avoid letting vegetation to grow on the wood to protect it from excessive moisture, and to have it regularly treated to protect it against parasites, like termites. It’s important to keep in mind that very wet and very hot and dry climates can cause the wood to damage rapidly and crack, warp and splinter.

No. 2 – Vinyl easy to install but can be damaged

6 Types Of Fencing For Your Rental Property

A man-made material, vinyl (also called PVC) does not rot, splinter, crack or warp. The synthetic plastics utilized to craft this kind of fencing are inexpensive, and unlike wood, Vinyl can be manufactured, thus making it so that its standard market price is controlled and not likely to suddenly become more expensive.

Another benefit to vinyl is that it is often made to be extremely easy to install, consisting of lightweight pieces that can be simply snapped together. Vinyl does cost slightly more than wood, but in contrast, it is not so easily damageable and it is not demanding when it comes to maintenance. Manufacturers claim that the only maintenance issue that is likely to affect Vinyl over time is discoloration, but this can be easily resolved by simply re-painting the fence.

While those characteristics are certainly appealing, our experts point out that vinyl is not as strong as wood, and it can easily collapse due to harsh weather or impact. The plastics utilized are cold temperature-sensitive and can become brittle, which is why vinyl is not ideal for areas where cold and harsh weather is common. One last issue is that the manufacturing processes behind vinyl production are not very environmentally friendly.

No. 3 – Aluminum ideal for decorative fencing for your rental property

Aluminum is known for its malleability, which is indeed why it is widely utilized to craft decorative and elegant fencing.

Also, it is lightweight and easy to clean. Aluminum fencing is generally similarly priced to vinyl, but it is important to keep in mind that this bargain could be offset by repair costs: Aluminum is delicate, and while they’re fairly easy to repair, our experts find that bends and dents are common.

Aluminum is ideal for beautiful decorative fencing, but it is not the best option for privacy and safety as it is not made to provide significant shielding.

No. 4 – Chain-Link fencing for your rental property

Chain-link is a very simple and inexpensive kind of fencing, making it ideal for very large spaces or pens, especially for pets. Installing chain-link fencing is also simple and fast.

Chain-link is not very sturdy and does not offer much privacy, which is why it is not the best choice for residential properties where tenants and/or property managers are wanting a fence that offers protection and privacy.

When it comes to maintenance, the thin links of the fence and their junctions are vulnerable to rusting and corrosion. Vinyl coating can extend the life of chain-link, but most people opt for a complete replacement when wear and tear becomes evident.

No. 5 – Wrought iron strong and saves on maintenance

6 Types Of Fencing For Your Rental Property

Wrought iron is made to be durable while looking beautiful.

It can be molded to create elegant styles, and the natural strength of the iron makes it a good option for a secure fence that won’t need much maintenance over the years. Wrought iron can develop a patina as it ages and oxidizes, which some find appealing and some do not: if desired, this can be addressed by having a professional restore the iron with appropriate treatments.

While wrought iron makes it possible to save money on regular maintenance, in most cases it is the most expensive fencing option available. Installing heavy-duty iron fencing is also a work-intensive project that should be left to a professional.

Wrought iron can rust easily in regions where the weather climate is wet. Rust develops where the iron is most worn down, which makes it essential to fix scratches and chips as soon as one notices them.

No. 6 – Brick and stone a serious investment

Having a fence built with cement and bricks or stones is going to be one of the much pricier options available for fencing.

While those fences are unaffected by weather and most other common sources of tear and wear, they require quite a lengthy and work-intensive installation process, and they can’t be easily modified, making expansions or alterations an issue.

Our maintenance professionals point out that opting for brick and stone fencing is a lengthy commitment and a serious investment.

The Best Appliances In Rental Property

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com

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Seattle City Council Bans Winter Evictions

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By The Editors
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3 Areas Where Congressional Legislation Falls Short, Could Be Detrimental to Rental Housing Market

The Seattle City Council has voted to ban winter evictions from the months of December through February, shortening the original proposal from five months to three months, according to reports.

The council also added a provision exempting landlords who own four units or less.

The original proposal would have banned evictions in Seattle during the five months between November 1 and March 31. It would prevent a landlord from evicting a tenant for failure to pay rent for up to five months.

The exceptions to the proposal would be if a tenant is doing something illegal in or around the building.

To help survive potential legal challenges, council member Kshama Sawant added an amendment to position the winter months as a defense to getting evicted, rather than an outright ban, and included a few “just-cause” exemptions that include crimes by the tenant and any illegal actions from the landlord, according to SCC Insight.

Seattle Mayor Jenny Durkan and some landlord and development groups, however, have raised questions about the measure’s legality and effectiveness.  She could veto the legislation, and it takes six council votes to overcome her veto.

In a letter sent to the council Monday, a representative of the mayor’s office said they have “significant concerns that the operational, legal and policy issues associated with [the bill] will not help the city achieve those goals” of reducing eviction, according to Crosscut.

Sawant originally introduced the idea of banning winter evictions late last year. She said in a release that the City of Seattle Renters’ Commission sent a letter urging the City Council to pass an emergency moratorium – effective immediately – on evictions during the winter. In their letter, the Commissioners said, “Passing such a moratorium will keep neighbors from being displaced to the streets during the months with the harshest weather and poorest living conditions for neighbors living unsheltered.”

“I am grateful to the Renters’ Commission for recommending an emergency moratorium on winter eviction,” Sawant said in the release. “I strongly agree that (the) council needs to put this into effect immediately.”

The Washington Multifamily Housing Association wrote a letter to the council opposing the ban on evictions and suggesting instead that they consider additional investment in emergency rental-assistance programs.

“It is financially prudent to invest in emergency rental assistance before an eviction is filed, than (to) wait for an eviction action to be filed, risking the tenant’s housing and increasing the cost burden on programs dedicated to preventing displacement due to eviction,” the association said in the letter.

“We support a modest increase in the emergency rental assistance to provide tenants experiencing financial hardship the opportunity to recover their tenancy prior to an eviction action starting, and ask that you consider this approach as an alternative to preventing the court from considering  evictions altogether 42 percent of the year,” the association said in the letter.

winter evictions ban passed by seattle city council
Read the full text of the letter here.

King County saw approximately 3,200 evictions in 2017, with more than 85 percent of them filed for nonpayment of rent, and more than half involving the nonpayment of one month’s rent or less, according to The Seattle Times.

The average temperatures in Seattle in the winter months according to Climate-Data.org are: November, high 51, low 40; December, high 46, low 37; January, high 45, low 35; February, high 49, low 37; and March, high 52, low 38. The average number of days per month when the temperature dips below freezing are: November, three; December, eight; January, six; February, five; March, two.

Resources:

Seattle City Council votes to limit winter evictions

Bipartisan Legislative Support To Ban Seattle’s Eviction Ban

COUNCIL VOTES BAN ON “WINTER EVICTIONS” OUT OF COMMITTEE

Sawant’s proposed ban on winter evictions voted out of committee

Winter evictions could be banned in Seattle

Letter from the Washington Multifamily Housing Association

Seattle City Council to Consider Banning Evictions In Winter

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5 Steps To Get Your Property’s HVAC System Ready For Spring

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By The Editors
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HVAC System Ready For Spring

Here are 5 steps to get your rental property’s HVAC system ready for spring after going through plenty of stress this winter, the weekly maintenance tip from Keepe.

You’ll need to restore and check on your HVAC layout when the spring arrives so the unit can be ready for the rising temperatures in the summer.

 No. 1-  Replacing the filter

Start your HVAC maintenance work by replacing the filter. Every HVAC system has an air filter that prevents harmful outside particles from entering the air. The screen needs to be clean for air to move through reliably. Replacing the filter also ensures your property’s energy bills will not go up, as you will not worry about people having to run their heaters or coolers longer to get the temperatures they want.

It is best to replace a filter every month or every other month. Take time in the spring to replace yours.

No. 2 – Clean out the drainage hole

The drainage hole in your HVAC setup is located under the evaporator fins. The hole allows excess moisture to drain. The opening must stay clean for the moisture to flow out. You might have to use a small wire to clean out anything that backs up inside the hole. You can request a professional service to assist you with cleaning the spot if you’re unable to access it yourself.

No. 3 – Clean the fans

Your HVAC system includes multiple fans around your property. Not only is there an evaporator fan around the base setup, but there are also fans in the bathrooms and kitchens and other rooms in your building. You will have to clean the fans out to ensure air can move through well enough.

You can clean off each fan cover with soap and water. You can also dust the debris off of the fan blades.

Be sure the power’s off before cleaning the fans. Everything must be stationary before you start.

No. 4 – Dry the dehumidifier

Your HVAC system should include a dehumidifier; you’ll need this component during the summer season. Prepare for the warmest and most humid times of the year by drying out your dehumidifier.

You will have to remove the outside casing of the dehumidifier. Allow the system to dry, then vacuum the dirt and other debris on the inside.

No. 5 – Remove all debris

Your HVAC system will take in lots of leaves, branches, and other debris from outside during the winter. After the snow and ice melt, you will need to clean out all those things, because they can obstruct the natural mechanisms inside your HVAC setup. Clearing it out ensures all parts can move freely and will not experience problems.

Your property’s HVAC system should be ready to maintain and support during the spring season. You’ll have an easier time preparing your building for the summer when you get everything up and running. Getting the setup cleaned out as soon as possible is vital to how comfortable everyone in your property will feel in the spring and summer.

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com

The Best Appliances In Rental Property

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Portland’s New F.A.I.R. Housing Ordinance

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By The Editors
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Portland's New F.A.I.R. Housing Ordinance

By Ron Garcia

The City Council of Portland is now slated to pass its “Fair Access in Renting” (FAIR.) Act to become law on March 1, 2020. However, Portland landlords should instead understand this new ordinance to read as: “Forcibly Accepting Increased Risk”.

This new statute restricts and governs:

  1. How tenant screening must be conducted, as well as how vacancies must be advertised and filled, and
  2. How much landlords can collect for tenant security deposits and how those funds must be allocated towards damages upon termination, as well as new mandates on handling termination notices (including 72-hour late notifications).

The requirements in this ordinance will substantially change most industry-wide accepted practices for advertisements, screening criteria, rental and management policies, termination procedures and for the final accounting resolutions on all residential income properties in the city of Portland. The goals of this ordinance are to lower the barrier of entry to housing-burdened populations and to restrict the amount of money for which a tenant would otherwise be liable, in order to pay for damages incurred to the unit.  There is no attempt at parity between a landlord’s and a tenant’s rights within this act. There is no adjustments for any size or price of rental units. The penalty provisions of any violation in the statute include “actual damages” sought by the tenant – a provision that allows for an open-ended interpretation of potentially huge and cascading claims.

Commissioner Chloe Eudaly has been pursuing this law for nearly two years. Mayor Ted Wheeler’s Residential Services Commission (RESC) supported its progress and provided a forum for it to develop within the Portland Housing Bureau. It should be noted that the RESC is made up of 14 commissioners, only five of which are “landlord representatives. Of those five seats, two commissioners resigned in 2018 because their perspectives were summarily dismissed by the board (I was one of those members). In 2019, three more of the landlord commissioners resigned for the same reason. The result is that the Portland City Council’s housing policies are being created by stakeholders that are radically against landlord rights and whose agenda is to impose new social policies that require private citizens to fund public-housing policies. The law is cumbersome, confusing, and purposely constructed to penalize landlords for not following the very detailed procedures it introduces.

The Fair Access In Renting ordinance joins with the Portland Relocation Ordinance and the Oregon State rent-control law (HB608), each serving to limit the amount of rent increases and to prevent owners from terminating tenancies. With these new rules, the Fair Access In Renting ordinance is designed to regulate the selection of tenants and minimize the costs to repair damages, the burden of liability on Portland rental property owners has skyrocketed. And as a result, this new law fundamentally changes the basic relationship between landlords and tenants by assuming that without a host of new policies, all tenants are subject to exploitation.

The just-adopted rules of the FAIR ordinance can now be found on the city of Portland’s website. Ironically, while it is slated to become law in just weeks, a massive amount of training still needs to be conducted to sort out all of the complexities. Experts all agree that this could take months to bring all industry professionals up to date, and will certainly add to the confusion and difficulties in compliance. Cynical as it sounds, the city has been making this law up as they go, and they have added in many caveats and nuances for an array of issues that have created a tangled mess of red tape.

Provisions for refunding interest incurred on tenant security deposits (which already exist in state law) are now parsed out in a new and imposing accounting scheme. Forcing landlords to do in-home final inspections within five days of sending out a late notice for non-payment for rent is not only onerous and time-consuming, it’s also intrusive and insulting to any tenant who has ever gotten just five days behind on a rent payment. Requiring landlords to itemize and place a cost valuation on every fixture, appliance, equipment and personal property in line with a city-approved depreciation schedule, and requiring a signed mutual agreement between the tenant and landlord prior to possession, is cumbersome and arbitrary (and substantially more onerous for larger single family homes than, say a one-bedroom apartment). It also raises anticipated disputes, i.e. what if the tenant doesn’t sign the form and yet is still required (by the law) to be allowed to rent the property?

Fair Access In Renting conflicts

There are many other conflicts inherent in this ordinance. For example, carpet cleaning (as authorized and approved by state law to be a tenant expense) now must be limited to “discrete impacted areas” and not for other areas of the dwelling unit. Tell me – what does that actually mean and how will it play out in every single move-out? Requiring the rental agreement to have the name, address and phone number of the actual bank branch holding the deposit seems excessive. Which Citibank do you go to?

The increased amount of administrative oversight regulated in this ordinance is excessive. As a long-time professional property manager, I have long promoted the claim that everyone deserves affordable and safe housing. Tenant relations is an integral part of my business and our company works tirelessly to address the needs, concerns, fairness and habitability issues that rise up daily in managing rental housing. Yet even on our best days, with great tenants, we can be subject to questions, suspicions or accusations, etc. when things don’t go as well as someone likes. Creating overreaching laws that do little for the majority of people they serve and which create intimidating conflict unnecessarily just does not seem like good public policy.

At the end of the day, however, when new laws are enacted, our job is to understand them and work diligently on their compliance. The sheer volume of change and the additional requirements and restrictions inherent in this law will be challenging and it will add considerable time allocations for documentation and “risk management.” I certainly believe professional property managers will handle the process and create new best practices to adapt. However, I also believe prices to manage rental units will need to go up in order to accommodate these mandates, further burdening the rental-property owners who are shouldering the weight. Will we now start seeing every owner raise every rent to its maximum rate every year in order to recover their costs? Time will tell.

For the Property Management industry, I submit we should read this new ordinance as the City of Portland promoting “Frustrating Administrative Inflationary Rate-hikes”.

About the author:

Portland's New Fair Access in Renting Housing Ordinance
Ron Garcia is the Past President of the Rental Housing Alliance Oregon and is currently a candidate for the Oregon State House of Representative, District 37. His website it www.GoGarcia.org

Portland City Council Approves Controversial Tenant Screening Ordinance 3-1

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Portland Rents Hold Steady In January Stopping Slide Over Last 3 Months

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By The Editors
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Portland Rents Hold Steady In January Stopping Slide Over Last 3 Months

Portland rents held steady over the past month after several of months of decline, according to the latest report from Apartment List.

Portland’s year-over-year rent growth lags the state average of 1.2 percent, as well as the national average of 1.6 percent. After the last increase in September, Portland rents had declined for three months in a row until steadying in January.

Currently, median rents in Portland are $1,122 for a one-bedroom apartment and $1,324 for a two-bedroom.

Rents increase in 8 cities across the Portland metro

Portland Rents Hold Steady In January Stopping Slide Over Last 3 Months

While rents have remained steady in the city of Portland throughout the past year, cities across the metro have seen a different trend.

Rents have risen in 8 of the largest 10 cities in the Portland metro for which Apartment List has data.

Here’s a look at how rents compare across some of the largest cities in the metro.

  • Beaverton has seen the fastest rent growth in the metro, with a year-over-year increase of 3.4 percent. The median two-bedroom there costs $1,825, while one-bedrooms go for $1,547.
  • Over the past year, Canby has seen the biggest rent drop in the metro, with a decline of 3.2 percent. Median two-bedrooms there cost $1,725, while one-bedrooms go for $1,462.
  • Hillsboro has the most expensive rents of the largest cities in the Portland metro, with a two-bedroom median of $2,050; rents went down 0.3 percent over the past month but rose 2.0 percent over the past year.
  • Portland proper has the least expensive rents in the Portland metro.

Portland Rents Hold Steady In January Stopping Slide Over Last 3 Months

Portland rents are more affordable than many large cities

Rent growth in Portland has been relatively stable over the past year while some other large cities have seen more substantial increases.

Portland is still more affordable than most comparable cities across the country.

  • Oregon as a whole has logged 1.2 percent year-over-year growth, while rent trends across other cities throughout the state have varied. For example, rents have grown by 0.5 percent in Eugene whereas rents have fallen 1.3 percent in Salem.
  • Nationwide, rents have grown by 1.6% over the past year compared to the stagnant growth in Portland.
  • While rents in Portland remained moderately stable this year, similar cities saw increases, including Phoenix (+3.7 percent), Austin (+3.3 percent), and Las Vegas (+3.2 percent).
  • Renters will find more reasonable prices in Portland than most similar cities.

Portland Rents Hold Steady In January Stopping Slide Over Last 3 Months

Portland Rents Continue Decline for 3rd Month

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