Rental Housing Journal Colorado
March 2017 - Vol. 9 Issue 3
3. Consumer Confidence in Housing Hits All-Time High
5. Dear Maintenance Men - Sidewalks, Fencing and Toilets
4. Survey on Home Buying, Millennials and Boomers
7. The World is Searching for Reliable Property Managers
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Millennials Buying in the Suburbs
6 Keys to Writing A Lease The Right Way
By John Triplett, Rental Housing Journal
T
he webinar was by Buildium. com and run by Darcy Jacobsen, Director of Content, and Sam Driver, Product Director, and an experienced property manager at the company. During the webinar, they polled the group of property managers on a number of questions, and the first one was:
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s the millennial generation ages into adulthood, they are choosing the suburbs over urban neighborhoods, skipping the traditional starter home and staying in the same city when they move. Almost half of millennial homeowners live in the suburbs, and the majority stay in the same city when they buy a home, revealing their home-buying preferences now that they are the largest generational group in the housing market. According to the 2016 Zillow® Group Report on Consumer Housing Trendsi, millennials made up 42 percent of home buyers last year, more than any other generation, with most of them buying for the first time. Millennials, those ages 18-34, associate homeownership with the American Dreamii and believe that buying a home is a good financial investment, even more so than Generation X and baby boomersiii. But until recently, they were delaying homeownership, and it was difficult
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continued on page 6
How many different leases do you use in your business? “The most common is one lease, especially when the units are often similar. And, especially with smaller operators, one lease works.” Driver said. “However we are finding it is not uncommon to shift to a two- or three-lease template model, especially if there are significant differences in the properties. If you are an owneroperator, you tend to have one. If you are managing for different owners, who continued on page 2
U.S. Home Flipping Increases 3 Percent In 2016 To A 10-Year High
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Average Gross Flipping Profits and ROI at New Record Highs
TTOM Data Solutions, curator of the nation's largest fused property database, today released its 2016 Year-End U.S. Home Flipping Report, which shows that 193,009 single family homes and condos were flipped — sold in an arms-length transfer for the second time within a 12-month period — in 2016, up 3.1 percent from 2015 to the highest level since 2006, when 276,067 single family homes and condos were flipped. Home flips in 2016 accounted for 5.7 percent of all single family home and condos sales during the year, up from 5.5 percent in 2015 to a three-year high
but still well below the peak in 2005, when 338,207 single family homes and condos were flipped representing 8.2 percent of all sales. The report also shows that 126,256 entities — including both individuals and institutions — flipped homes in 2016, up less than 1 percent from 2015 to the highest number since 2007, when 143,266 entities flipped properties. Meanwhile, the share of flipped homes that were purchased by the flipper with financing increased to an eight-year high of 31.5 percent in 2016 while the median age of homes flipped increased to 37 years — a new high going back to
2000 — and the median square footage of homes flipped decreased to 1422 — a new record low going back to 2000. "Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "The combination of more home flips and a greater share of financing for flip purchases resulted in a 18 percent jump in the estimated dollar volume of continued on page 6
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