Capitalizing on the growing renter market
December 23, 2011 by admin
Filed under Leasing and Marketing
Capitalizing on the growing renter market
With the economy still struggling to repair itself, many former or would-be homeowners are choosing to rent and thus providing multifamily investors with an ample opportunity to increase their return on investment. However, with the growing renter market, are you as a property owner doing everything possible to capitalize on this trend?
Below are some simple suggestions to help multifamily property owners evaluate and manage during this opportune time.
• What is your current occupancy rate? Have you taken a year to date evaluation? Doing so can help property owners understand the potential gain.
• As the demand for rental property increases, have you done a rent increase assessment? Determine your rate increase – whether across the board or per tenant – and communicate early the increase so that tenants know what to expect. Substantial increases to existing tenants aren’t recommended and in most cases aren’t legal. However, for new tenants, it’s an area of opportunity. Be sure and conduct research on competing properties to uncover their fees, rates and incentives.
• How “in demand” is your market? With the economy ever-changing these days, it’s best to monitor multifamily housing reports to determine the trending markets. This will help you discover what other communities are doing as well as provide critical data. Visit or bookmark key industry websites or publications to stay tuned to market changes. Here’s one example of recent market data from HomeVestors of America cited in the Wall Street Journal http://blogs.wsj.com/developments/2011/07/11/the-top-markets-for-rental-home-investors/
• Reinvest money gained back into the multifamily property. Take a percentage gained from the trend and make those costly repairs or renovations now so that you can maintain a competitive edge in your market. This will allow you to not only maintain occupancy but target additional renters willing to pay a premium for your unit.
Simple ideas like these plus much more can help you take your property investment to the next level. Want to know what more you can do? Call or email us for a free assessment.
