Apartment Rental Rates Declined In Many Markets For First Time Since 2017

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October 15, 2019

Apartment Rental Rates Declined In Many Markets For First Time Since 2017

Apartment rental rates in a majority of small and large cities registered either minor decreases or stagnated during September, according to the latest report from RentCafe.

“As part of a seasonal respite, the national average rent decreased for the first time since February 2017, dipping by –0.1% ($1) from last month to $1,471. The decrease might seem insignificant, but coupled with the slowest year-over-year hike in the past 13 months, 3.2% ($45), it points to a slight wind-down in rent prices in the context of a more volatile financial climate,” the report says according to Yardi Matrix.

Since last month, apartment rents saw minor declines in more than half of the cities we analyzed. Small and large cities lead the trend, with prices dropping in 59% of small cities and 56% of large cities, while 42% of mid-sized cities saw their rates dwindle in September.

Apartment rental rates in Oregon in September 2019

The average rent in Oregon cities is generally lower than the national average rent.

The fastest growing rents in September were in Springfield, where rental apartment prices increased by 1.0% month over month, or $11. Keizer apartments saw the second highest monthly increase, jumping by 0.7% and making them $7 more expensive than last month, while in Lake Oswego prices decreased by 3.4% ($58) compared to August.

Renting in Seattle Metro in September 2019

The average rent in Seattle Metro cities is generally higher than the national average rent.

The fastest growing rents in September were in Mukilteo, where rental apartment prices increased by 1.4% month over month, or $25. Mercer Island and Mill Creek apartments saw the second highest monthly increase, jumping by 1.3%, making them $30 and $24, respectively, more expensive than last month. In Des Moines, prices decreased by 1.6% ($22) compared to August.

Two-bedroom apartments are by far the most popular among renters

Traffic data from RENTCafé.com shows two-bedroom apartments are the most popular among renters searching for new homes, making up 42% of searches on the website.

The second most popular units have one-bedroom floor plans (30%). three-bedroom apartments (15%) follow in popularity, while renters show the least interest in studios (12%).

Methodology:

RENTCafe.com is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States. To compile this report, RENTCafe’s research team analyzed rent data across the 260 largest cities in the US. The data on average rents comes directly from competitively-rented (market-rate) large-scale multifamily properties (50+ units in size), via telephone survey.

4 Types of Water-Intrusion Problems in Rental Property

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By The Editors

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October 15, 2019

4 Types of Water-Intrusion Problems in Rental Property

Water-intrusion problems in rental property can be a major cause of alarm for property managers, so this week’s maintenance tip from Keepe offers some helpful ideas.

This can be caused by many things, including faulty waterproofing during construction, poor drainage, incorrect water structure, and more commonly, the age of the property.

Next time you need to tackle water intrusion at your rental property, take note of these areas of concern.

Problems caused by water intrusions problems in rental property and leakages

Water intrusion in rental property can be disastrous on many levels, especially any part of the structure that is wood. Water damages wood, making leakage a major concern.

Secondly, water leakage causes a health threat to the occupants of the rental property; it can enable mold to grow when it goes undetected, and it provides a breeding ground for mosquitoes and other insects. If a substantial water leak comes in contact with electricity, there’s also the danger of electric shock or electrocution.

Why basements and crawl spaces leak

Basements and crawl spaces are the places most susceptible to water intrusion. In property management, it is critical to be keen about the following:

Construction codes: These are the regulations that govern the design, construction, alteration and maintenance of structures. By adhering to these standards, you will uphold the health, safety and welfare of building occupants and, in this case, avoid water intrusion.
Proper drainage: A faulty drainage system can result in water intrusion in your property. This is why it is important to make sure your drainage is well-structured, because while a water intrusion may take a long time to manifest, when it does, it will cost more to repair.
Problems with water vapor: A family of 4 people yields about 3.5 gallons of water vapor on a daily basis, aside from the water vapor generated by activities like cooking, ironing and other heat-generating activities. Indoor air quality is affected by moisture. If water vapor is not managed well, the result is that mold can form in the room. There is also condensation and an increase in dust mites, which can be a big cause for concern.
Waterproofing: Water intrusion can sometimes come through the floor of the basement. This is an indication that the waterproofing part of the original build of the floor was not efficient. If your property is in the process of being built, there is still time. However, if it is an existing property and you notice water intrusion from the floor, the floor has to be replaced.

Summary

The water-intrusion in rental property threat should always be considered because of potential consequences to both occupants and property. To be vigilant, routine maintenance practices are a must.

Here are other recent rental property maintenance Keepe posts you may have missed:

How To Pick The Perfect Exterior Paint Color For Your Rental Property

4 Outdoor Flooring Options For Your Rentals

20 Easy, Affordable Maintenance Projects To Update Your Rentals

7 Tech Gadgets For A Safer And More Efficient Rental Property

5 Maintenance Tips For Long-Lasting Rental Carpet Flooring

Is The Water Heater At Your Rental Property Ready For The Big One?

7 Types Of Kitchen Countertops For Your Apartments

Which Cooktop Is Best For Your Rental Property?

A Guide To 4 Types Of Flat Roof Systems

6 Ways To Trash Your Apartment Waste Management Issues

Top 5 Apartment Maintenance Emergencies vs. Maintenance Requests

5 Tips for Preparing Your Apartments for the Summer Season

4 Air Conditioning Maintenance Best Practices For Summer

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. We make 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, and Portland area, and we are continuing to expand. Learn more at http://www.keepe.com

5 Tenant-Friendly Amenities That Increase Your Profits

By

Holly Welles

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October 14, 2019

5 Tenant-Friendly Amenities That Increase Your Profits

Tenant-friendly amenities, those that attract and keep high-paying tenants, are a must in today’s rental housing world – but some features cost so much to add that it’s difficult to recoup your investment.

Fortunately, there are some attractive elements you can include in your rentals that won’t cost a fortune.

In recent years, the cost to rent an unfurnished apartment increased by about 50 percent over a 10-year period. In some big cities such as New York, nearly half a person’s salary goes to paying rent.

Sure, high prices are good for landlords. However, since renters are paying so much, they expect a lot in return. Discover tenant-friendly amenities that will attract new renters and secure higher rent rates.

1. Offer high-speed Internet

If you’re leasing a commercial space, fast internet is a must. A high-speed connection as part of your rental package will attract those who work from home, such as busy professionals.

Is fiber optic available in your area? If so, extend the offer to the entire building so each unit is wired and ready to connect. You can even include free internet as part of your rental package or add an up-charge for the service.

2. Include pet deposits in your tenant-friendly amenities

There are millions of families with some type of pet. Even busy singles often have a dog or cat for companionship. However, as much as we all love those furry critters, they can create thousands of dollars in damage to your building. Cats with claws may dig at the carpet and leave a frayed mess. Dogs may have accidents or chew through doors if they have anxiety http://affectivebrain.com/?attachment_id=5776.

Many building owners find it essential to charge a pet deposit and monthly fees to offset costs. A deposit is typically not refundable, and you can customize the amount based on the type of animal. Some landlords charge fees based on their experience with similar pets. You should also consider insurance, as some dog breeds and animal species will ramp up your rates.

3. Install a laundry center

Most renters expect to have on-site laundry facilities to wash clothes and bedding. It’s much more convenient than dragging everything to an off-site location. For landlords, this is an opportunity to make additional money. You can invest in modern machines that are coin-operated. Add a vending area with laundry soaps and softeners, plus snacks for those doing their laundry.

If you have the staff and want to ramp up your profit-making potential, offer a dry-cleaning delivery service. You can run dry-cleaning items to a local store, pick them up when finished and deliver to tenants’ front doors. This type of add-on is particularly attractive to those who work long hours. Plus, it adds a nice side income to your real estate business.

4. Vet new tenants

The people you rent to can save or cost you money. Look for people who will treat the rental as their own home and take good care of it. You can earn a profit from people who pay rent on time, don’t damage the property, and offer reasonable complaints. Low-maintenance renters are a landlord’s dream come true. You won’t have to spend money on costly repairs or invest in a lawyer to start eviction proceedings.

While it isn’t possible to avoid every bad tenant, running background checks and conducting an interview process helps. You should also ask for references from previous landlords. Just make sure you follow state and federal laws to ensure you don’t discriminate based on age, race or other important factors.

5. Tenant-friendly amenities: Install desirable finishes

If you want to demand higher rent on your units, you must compete with similarly priced buildings in the area offering quality amenities. While you don’t need to transform your property into a luxury complex, take a look at competitors to see what they provide. Do they have a gym or 24/7 doorman? In 2018, the top amenities included dog parks, bike storage, workshop areas and more.

Make any apartment look pricier by adding a coat of fresh paint to the walls. Install granite countertops, add a backsplash in the kitchen and swap old carpet for beautiful hardwood floors. Upgrade one unit at a time until they’re all completed. Remember, however, buying materials in bulk can save you money.

Choosing Amenities That Increase Your Profits

These tenant-friendly amenities and upgrades above are a good start, but you should also consider what your tenants want.

For young people, a social outlet, like shared common areas, is particularly important. You can also implement small things that tenants appreciate, such as green plants and beautiful artwork.

Determining which amenities your renters want most is key to keeping profits high. You don’t have to go over budget to provide luxury amenities in a market that doesn’t support it, but there are great ways to provide an improved living experience for your tenants while maximizing the revenue you bring in.

Multifamily Growth on Track to Continue at 3 Percent Annually

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By The Editors

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October 9, 2019

Multifamily Growth on Track to Continue at 3 Percent Annually

Multifamily growth is on track to keep its string of 3 percent full-year rent growth numbers alive, despite flat September growth, according to the latest report from Yardi Matrix.

“As volatility again rears its head in the larger financial world, the multifamily market remains the picture of stability,” the report says.

This will be the sixth time in the past seven years that annual multifamily growth has hit the 3 percent level, despite a weak third-quarter performance.

Apartment rents have increased by at least the 2.5 percent long-term average for seven years running, with no signs that the trend will slow, the report says.

Plus, the average national occupancy rate has been above 95 percent for several years, and “housing trends would indicate that demand will remain strong for some time to come.,” the report says.

“Contrast the recent up-and-down of the stock and bond markets with the consistent growth in the multifamily industry, and it’s easy to see why investor demand for apartments remains so strong.

Highlights of the multifamily growth report

Multifamily rent growth flattened in September, as the average U.S. multifamily rent declined by $1 to $1,471. Year-over-year rent growth fell 20 basis points but remains at a healthy 3.2 percent.
S. rents rose 0.3 percent in the third quarter of 2019, and rents have grown 2.9 percent through the first three quarters of 2019. That represents a slight slowdown from the same periods over the last few years, but the performance is very respectable compared to long-term historical trends.
Las Vegas (6.8 percent), Phoenix (6.1 percent) and Sacramento (4.7 percent) remain unshakeable at the top of the metro rankings, but beyond those markets there is a lot of movement. For example, growth has moderated in Florida metros Tampa and Orlando (both 2.4 percent) and Miami (2.2 percent).

Yardi Matrix Multifamily Growth Chart Below:

4 Ways You Can Spot Water Damage Early In Your Rentals

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By The Editors

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October 8, 2019

4 Ways to Reduce Rental Property Maintenance and Repair Costs

Fixing water damage in rentals was one of the most popular maintenance jobs this past month performed by Keepe, so here are some tips to help.

Water damage in your rental can be a small annoyance or a really big problem. So the hot maintenance job lately has been around water damage and leaks, perhaps due to the recent wet weather in several parts of the country, according to Keepe.

With more weather potentially on the way this fall and some rainy days ahead, it pays for property managers and maintenance folks to do a quick checkup.

The best time to check for leaks is after heavy rainfall or on hot humid days because pipes tend to sweat in high temperatures.

However, it is certainly beneficial to take a more preventative approach by inspecting rentals more routinely for water leaks and damage.

4 Ways You Can Spot Water Damage In Rentals Early

Make sure to look at windows, sinks, showers, roofs, and toilets first as these are usually the most common origins of water leaks.

No. 1 – An increased water bill

An uptick in the water bill for you or your tenants would strongly suggest a leak somewhere in your plumbing system. Unfortunately a big bill can be a helpful way to find leaks that are in places that are rarely visited, such as leaks in attics or crawl spaces.

No. 2 – Peeling or bubbling paint damage in rentals

This could strongly suggest that the pipes behind the walls might be leaking, causing water to seep through the wall and paint.

No. 3 – Mold buildup

If you see mold building anywhere in your rental, this could be a strong indicator of a water damage and leak. This is potentially caused by a moisture problem that has been accumulating for a long period of time.

No. 4 – Damage indicators like soft spots on roofs, ceilings and walls

Identifying these soft spots early on could save you a lot of time and money before letting it spread to other areas, causing a bigger, more expensive problem.

Identify and mitigate early

It is extremely crucial to identify a water leak early because an ongoing leak can severely damage walls, ceilings, or even tenants’ belongings.

In addition, when mold starts to form, this will also start to become a very expensive problem, especially if it is more than 10 square feet in size.

The Environmental Protection Agency (EPA) has particular guidelines and requirements to deal with these larger moldy surfaces, most of which are very costly.

Here are other recent rental property maintenance Keepe posts you may have missed:

How To Pick The Perfect Exterior Paint Color For Your Rental Property

4 Outdoor Flooring Options For Your Rentals

20 Easy, Affordable Maintenance Projects To Update Your Rentals

7 Tech Gadgets For A Safer And More Efficient Rental Property

5 Maintenance Tips For Long-Lasting Rental Carpet Flooring

Is The Water Heater At Your Rental Property Ready For The Big One?

7 Types Of Kitchen Countertops For Your Apartments

Which Cooktop Is Best For Your Rental Property?

A Guide To 4 Types Of Flat Roof Systems

6 Ways To Trash Your Apartment Waste Management Issues

Top 5 Apartment Maintenance Emergencies vs. Maintenance Requests

5 Tips for Preparing Your Apartments for the Summer Season

4 Air Conditioning Maintenance Best Practices For Summer

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. We make 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, and Portland area, and we are continuing to expand. Learn more at http://www.keepe.com

Portland Rents Continue Upward Trend for Third Straight Month

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By The Editors

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October 7, 2019

Portland Rents Continue Upward Trend for Third Straight Month

Portland rents rose again in September and continued the upward trend seen for the past three months, according to the September report from Apartment List. The last decline was in June.

Median rents in Portland stand at $1,142 for a one-bedroom apartment and $1,347 for a two-bedroom, according to the report.

Despite the recent months’ increases, overall Portland’s year-over-year rent growth lags the state average of 1.1 percent, as well as the national average of 1.4 percent.

Rents rising across the metro area

Lately, Beaverton has seen the fastest rising rents in the metro area, with a year-over-year increase of almost 4 percent.

In Beaverton now, the median two-bedroom costs $1,829, while one-bedrooms go for $1,551.

Here is what is going on across the metro area:

Over the past month, Lake Oswego has seen the biggest rent drop in the metro, with a decline of 0.7 percent. Median two-bedrooms there cost $1,760, while one-bedrooms go for $1,492.
Portland proper has the least expensive rents in the Portland metro showing the prices listed above. Rents were up 0.4 percent over the past month and 0.6 percent over the past year.
Hillsboro has the most expensive rents of the largest cities in the Portland metro, with a two-bedroom median of $2,118; rents increased 0.3 percent over the past month and 3.4 percent over the past year.

Across the state of Oregon, rents grew more slowly, showing only 1.1 percent over the past year. For example, rents have grown by 1.6 percent in Salem and 1.4 percent in Eugene.

Last month:

Portland Rents Increase Over The Past Month

Preparing Your Furnace For Winter To Protect Your Rental Property

By

the-editors

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October 7, 2019

The weather is getting colder and colder out there but before you turn on your furnace or heater, winterizing your investment properties (especially the HVAC system) should be at the top of your to-do list. Your tenants will rely on the heater throughout the cold months of winter, so it’s important to prepare the system for the upcoming winter days. Here are some helpful tips on how to get it ready.

Tip #1: Clean and replace filters

Did you know that dirty and clogged filters can cause big problems? Furnace filters are incredibly important parts of the overall system and if they’re clogged with dirt, pet hair or debris, the flow of warm air can be hindered, which means that the heating system will work harder to keep areas warm and comfortable. If this happens for extended periods of times, the system could break down. Make sure the furnace filters are checked on a routine basis to ensure they are clean and they are replaced on a regular basis as needed.

Tip #2: Clean the inside of the furnace

The inside of the furnace, often at the base of the heater, is where dust and other debris will start accumulating. You should consistently make sure this area is clean through routine maintenance of your heating system. Once it’s clean, it will function efficiently and will be less prone to breaking down in the future.

Tip #3: Keep vents clear of obstruction

Obstructing furnace vents could cause your whole system to not work effectively and could cause it to break down so make sure vents are clear of furniture like couches or bookcases. While you’re looking at the vents, be sure to open them up and clean the insides so they are free of dust or other debris that may cause clogging or potential break down.

Tip #4: Get a professional furnace tune-up

Hiring a professional heating and cooling company to complete an annual maintenance of the heating system is a great investment and one that should be done at the turn of the season. An annual maintenance will ensure the furnace is in proper working conditioning and the HVAC technician can identify potential problems that are unseen that could cause expensive repairs down the road.

Rental properties require a little bit of attention to detail during the bitter cold of winter and taking the extra time to do that will keep your tenants comfortable and allows for the heating system to stay in good working order so you don’t have to plan for any unexpected repairs or premature replacement of the system.

About the author:

Written by Brooke Strickland, freelance writer for Specialty Heating & Cooling. Specialty Heating & Cooling is a full service heating and cooling company in Tigard, OR

5 Steps To Take Care Of Your Rental Property Heating System In Winter

Ask The Utah Attorney: My Tenant Is Asking To Change The Locks Because Of Domestic Violence

By

By The Editors

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October 2, 2019

A federal judge has ruled a landlord did not have to automatically waive its animal fee for a tenant with an emotional support animal

Dear Attorney: My tenant is asking to change the locks because they are a victim of domestic violence. What should I do?

Answer: First, you will always want to show compassion and make sure you are doing what you can to keep all of your tenants safe.

If any tenant feels their safety is in jeopardy, they should call the police and seek help.

Second, under Utah law, victims of domestic violence have certain protections when dealing with leases. They can choose to either:

(1) Have the landlord change the locks to exclude the perpetrator, or

(2) Terminate the lease (only as to the victim) by paying 45 days of rent.

When tenant is asking to change locks what happens?

Either way, the victim tenant should (1) clearly tell the landlord what they are requesting, (2) provide documentation (either a police report or protective order) showing they are a victim of domestic violence, and (3) pay for the costs of what they have decided (either pay for the locks to be changed or pay 45 days of rent).

If the locks are changed, the perpetrator tenant cannot enter the property but they remain liable for paying rent as it comes due.

We recommend that you keep copies of everything to document your file.

–Jeremy Shorts, ESQ Utah Eviction Law

Ask The Utah Attorney: What To Do With Tenant Shed Left Behind?

Apartment Mystery Maintenance Call Of The Week: Hornets In My Rental

By

By The Editors

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October 1, 2019

Apartment Mystery Maintenance Call Of The Week: Hornets In My Rental

The apartment mystery maintenance call of the week came from Portland again this week when the property manager of a Portland rental called Keepe with an unusual work order.

“There are hornets inside my house, and it seems to be coming out from inside my drywalls. Please send keepers now!” the property manager said.

As our workers came in, they were able to assess that somehow, a hornet nest has been accumulating inside the drywall.

Hornets in my rental

As they explored further, it was discovered that the nest has been building for at least three months before the work order was called in. Our workers determined that it originated from a tiny hole beside the front door, which allowed the hornets to go into the hollow dry walls and build their homes from there.

This unique problem took a full day to solve, with the help of a separate pest control crew to exterminate the hornets and clear out the nest.

The maintenance crew had to cut open a large portion of the drywall, which pest control would need to clean the inside of the drywall.

Once everything has been cleared out, the wall had to be fully patched, a job that took about three to four hours.

After a long day of completing this odd job request, not only does the drywall look good as new, but more importantly, no more hornets in my rental.

Other rental property maintenance help from Keepe.

4 Outdoor Flooring Options For Your Rentals

20 Easy, Affordable Maintenance Projects To Update Your Rentals

7 Types Of Kitchen Countertops For Your Apartments

13 Ways To Pet Proof Your Rental Property

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area, Portland, Phoenix, San Francisco Bay and San Diego areas.

Money For Nothing: Getting The Most From Your Tenant Settlement Strategies

By

Brad Kraus

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October 1, 2019

I’m amazed by the number of landlords who give money or rent concessions to tenants, thinking they just settled a dispute, only to find themselves at the wrong end of subsequent claims for those same disputes.

Rather than giving up money for nothing, let’s make sure you’re getting the most from your tenant settlement strategies.

Landlord/Tenant relationships are like many other contractual relationships. Parties must comply with their end of the agreed upon terms/conditions/obligations, and a failure to do so can lead down the path towards litigation.

Whether, for example, a tenant seeks damages for a defective toilet or an unlawful entry, many landlords give tenants money, thinking the damage claims are thereby resolved. The landlord’s goal in making the payment is obvious: pay the money, make the problem go away.

However, those same landlords may not realize that, without solid settlement documents, they may have created more headaches than solutions.

Tenant settlement strategies

A landlord’s payment of money to a tenant without a signed settlement agreement often occurs as a result of several faulty assumptions.

The landlord may incorrectly assume that:

(a) The tenant has agreed that the money fully compensates the tenant for that claim.

(b) The tenant has no other potential claims against the landlord.

(c) The tenant won’t pursue those claims (and seek more money) on a later date.

The faulty nature of the foregoing assumptions often raises its ugly head when the tenant files a lawsuit, for it is at that moment the landlord discovers that money was handed out for nothing.

To add insult to injury, the landlord may also discover that litigation costs can dwarf the initial payment to the tenant.

The forgoing “money for nothing” scenario is wholly avoidable: in consideration for any payment of money to a tenant, have the tenant execute a settlement agreement releasing any and all claims that may exist.

In other words, utilize a written contract that protects you.

The necessity of a document evidencing the parties’ settlement agreement—and the complete release of any and all claims—derives directly from contract law: Settlement agreements are contracts, and they are subject to the basic rules of contract law. Well written settlement agreements contractually waive and release existing claims; eliminate disputes regarding the nature of the parties’ settlement; and rebut tenants’ subsequent efforts to contend that no such waivers and releases exist. In other words, a well written settlement agreement provides a landlord with a solid defense to any lawsuit brought by the tenant for the previously resolved claims.

So… money for nothing? It’s a great song title, but let’s make your money work for you and get you something in return: create and execute well-written settlement agreements, put past disputes in the past, and avoid allowing the past to tarnish your future.

Related story from Brad Kraus:

Apartment rental rates in Oregon in September 2019

Renting in Seattle Metro in September 2019

Two-bedroom apartments are by far the most popular among renters

Problems caused by water intrusions problems in rental property and leakages

Why basements and crawl spaces leak

Here are other recent rental property maintenance Keepe posts you may have missed:

1. Offer high-speed Internet

2. Include pet deposits in your tenant-friendly amenities

3. Install a laundry center

4. Vet new tenants

5. Tenant-friendly amenities: Install desirable finishes

Choosing Amenities That Increase Your Profits

Highlights of the multifamily growth report

Yardi Matrix Multifamily Growth Chart Below:

4 Ways You Can Spot Water Damage In Rentals Early

No. 1 – An increased water bill

No. 2 – Peeling or bubbling paint damage in rentals

No. 3 – Mold buildup

No. 4 – Damage indicators like soft spots on roofs, ceilings and walls

Identify and mitigate early

Here are other recent rental property maintenance Keepe posts you may have missed:

Rents rising across the metro area

Here is what is going on across the metro area:

Tip #1: Clean and replace filters

Tip #2: Clean the inside of the furnace

Tip #3: Keep vents clear of obstruction

Tip #4: Get a professional furnace tune-up

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When tenant is asking to change locks what happens?

Hornets in my rental

Other rental property maintenance help from Keepe.

Tenant settlement strategies