Single Family Rental Home Acquisition is Funded
14 May 2012 | No Comments | posted by jacobgrant | in Investment
American Residential Properties (ARP) has become the first REIT, Real Estate Investment Trust, that is solely focused on single family home rental acquisition. They have set up an initial public offering of 210 million. ARP foresees the return of the single family industry in the United States. Research data provided by Zelman and Associates suggests that public investor sentiment has received positive pressure. People are interested in single family home rental investment. The housing crisis is showing signs of a cautious return.
The Result of No Property Inspection
6 May 2012 | 2 Comments | posted by jacobgrant | in Property Maintenance
This is a rental property in Idaho Falls that hasn’t had a property inspection in 10 years!
Jacob Grant Property Management arranges for regular property management checkups on all properties under management at least 2 times per year. Go to: Jacob Grant Property Management for more information. Surveys should include inspection of plumbing, water heater flush, furnace cleanout, and other preventative items. These items increase the longevity of your home or apartment.
How to Set Market Rent
30 Apr 2012 | No Comments | posted by jacobgrant | in Rental Owner
Most rental owners want to maximize rent collected. The benefits are increased cash flows and increased valuation when the investment has matured and it is time to sell. Signs of rent that is too high includes reduced standards in screening and increased vacancy. Reducing screening standards can be the beginning of a downward spiral in property fundamentals and vacancy daily loss to the rental.
How do we find the proverbial “just right” market rent?
- Comparable Market Analysis: A market survey that shows the rent on other comparable properties is the most accurate?
- Consumer Price Index (CPI): “The Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.” This will display the overall ability for renters to pay increased market rents. Adjusting according to CPI can help, with small increases and small decreases depending on economic conditions, continue to maximize rents.
- Best of Type Pricing: In larger multi-family plexes, managers can make small adjustments for the same floor plan. Examples include updating, a patio, or a top floor apartment. These tactics can give potential tenants more options and can give owners a substantial increase in rental income.
- Market Rent Assessment: Once rent is set, tracking can be very valuable. This can be done with Craigslist Tracker, Google Analytics and internal phone tracking software. If a particular property is seeing significant traffic but is not getting applications it is likely that market rent is set too high.
If you are a rental owner or a property manager, it is well worth the effort to continually maximize rent without negatively impacting your investment.
