Rental Housing Journal Colorado July 2017 by Professional Publishing, Inc

Rental Housing Journal Colorado

July 2017 - Vol. 9 Issue 7

2. Rents Stable At Mid-Year New Report Says

6. 71 Percent of Homeowners Believe It's a Good Time to Sell 4. Dear Maintenance Men - Faucets, Storage and Vacancies 7. The 10 U.S. Cities Where The Cost Of Living is Rising Fastest

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Why Is The Internet So Bad In Apartment Complexes? Can A Multifamily Internet System With WiFi Installation Be The Ticket? By Hart Steen

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n Educational Series for Apartment Owners Part 1 "Modem Service" A busy, always connected lifestyle demands the Internet. So much so the FCC, in a 2016 ruling, deemed the Internet a utility and it will be regulated as such. Regardless of government policy, the fact remains, access and experience are extremely important to consumers. Internet, as a utility, is an important distinction in today’s marketplace. Most Internet users experience a “Dirty City Water” Internet experience because it’s poorly maintained and rarely managed by monopolistic Internet Service providers (ISP’s ) – leaving a bad taste in the consumer’s mouth. Most agree the Industry needs improving; just as there are quality options for drinking water in the market, there are quality options for Internet. A “Glacier Water” continued on page 3

Fewer Renters Think it is a Good Time to Buy A Home

By The Editors new survey shows fewer renters think it is a good time to buy a home and they are not optimistic about the economy and their personal financial situation, according to a release. The National Association of Realtors (NAR) released the new quarterly Housing Opportunities and Market Experience survey showing how the morale of renters about buying a home has declined. "Paying more in rent each year and seeing home prices outpace their incomes is discouraging, and it's unfortunately pushing home ownership further away — especially for those living in expensive metro areas on the East and West Coast," Lawrence Yun, NAR chief economist, said in the release.

continued on page 5

Top 3 Biggest Stressors For Property Owners and Managers in 2017

By John Triplettt

n a new survey of 700 rental property owners across the country, maintenance repairs and replacement continues to be the biggest stressor overall for property owners and managers, according to Buildium.com. Overall 61% of respondents reported maintenance and repairs as stressful, compared to 62% last year, according to the survey. “It is clear property owners are struggling with both maintenance and tenant management,” Darcy Jacobsen, content manager at Buildium.com said during the webinar about the property owners perspective survey.

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Rental Housing Journal Colorado

Rents Stable At Mid-Year New Report Says Cities where rents rose the most in the first half of 2017 By The Editors

ents were relatively stable through the first six months of 2017, according to a new report. While the national median rent fluctuated, but it ended up exactly where it began at $1,016 for a one-bedroom, according to Abodo.com. Prices fell from January to March, bottoming out at $1,003 before creeping back up in the spring. In all, the national median rent always stayed within 1.3% of its starting value. "Mid-year rent trends are an important metric to follow when analyzing the rental market across the U.S. And while San Francisco and New York City stand at the top of the most expensive rental market rankings, as usual, it's important to analyze the average monthly change on the coasts and in the Midwest," said Sam Radbil, senior communications manager for Abodo.com

Seattle still an exception Eight of the top 10 cities for rental hikes were in the Southwest or South. The only geographic outliers were Seattle, WA, which saw rents rise an average of 3.6% over the first half of the year, and Honolulu, HI, at 2.6%.

"On the West Coast, cities like Phoenix, Seattle and Glendale all ranked in the top-ten for the biggest increases in rent price for a 1-bedroom apartment for the first half of 2017. On the other end of the spectrum, San Jose and Colorado Springs ranked in the top-ten for the biggest decreases in rent price," Radbil said. "When taking a more detailed look at the West Coast, our research shows that San Francisco, San Jose, Los Angeles, Oakland, Seattle, Santa Ana, San Diego, Long Beach, Portland and Denver all appear in the top-20 for the most expensive rental markets in the country," he said. Topping the list was New Orleans 6.3% and an average rent of $1,167, followed by Glendale, Arizona in the Phoenix metro area at 4.7% and an average rent of $764. Others in the top 10 for rents increases were: • Houston, TX • Reno, NV • Atlanta, GA • Miami, FL • Phoenix, AZ • Lexington, KY

High rents cities largely unchanged The cities with the highest rents are largely unchanged since last month’s report. San Francisco rents dropped $40 to $3,240, but that wasn’t enough to bump the city from its spot atop the rankings. As usual, New York City ($2,913) and San Jose ($2,378) rounded out the top three. The only real movement in the list of the country’s highest rents was near the bottom: Chicago ($1,861) superseded Miami ($1,855) for eighth place. Rents rising in half of the states Rents are rising in just over half of the nation’s states, and certain cities are seeing sustained increases in rent month to month, according to the Abodo.com mid-year report. Cities where rent was already high — New York, D.C., Los Angeles — are still high, but the most notable rental increases are in growing markets in the South and Southwest, “a continuation of a trend we noticed in our 2016 Annual Report,” the report says. In the next six months, rental prices in those markets will be a good barometer

for how well new development is keeping up with what appears to be continued — and rising — demand for rentals. There has been concern that with new apartment inventory coming onto the market in many cities, that either rents would decline or vacancies would increase. About Abodo.com ABODO creates first-of-their-kind, localized rental marketplaces for underserved, tier two U.S. cities Each month, using over one million ABODO listings across the United States, we calculate the median 1-bedroom rent price by city, state, and nation and track the month-over-month percent change. For this report, we analyzed data for the first six months of 2017 and found the average of the monthly percent changes in list price separately for each state and city. We also calculated the 2017 average list price in each state by taking the average of all monthly median list prices.

Rental Housing Journal Colorado · July 2017

Rental Housing Journal Colorado

Why is the Internet so Bad In ...continued from page 1 Internet experience stands apart from typical Internet offerings for the residents, simultaneously generating revenue, increasing brand loyalty and maximizing retention for an apartment owner. Comparing “Dirty City Water” to “Crystal Clean Glacier Water” is like comparing “best-effort” Cable Modem or DSL services (a.k.a. Modem Service) to a professionally managed, highly reliable, Fiber Backed Property-Wide WiFi service (a.k.a. Pure Internet). When a network is installed and managed correctly, the true essence of “Pure Internet” can be achieved; if not, the likely experience is the statusquo (or worse) that plagues American Internet services today. Most have always known they’re paying too much for an inconsistent, inferior service and it’s no secret “Big Box” Internet Service Providers (ISP’s) are often ranked last in customer surveys. What’s not as intuitive is why.

The 4 pillars to “Dirty City Water” (Modem Service) Pillar 1 - Bandwidth: Calculating Internet speeds are often misunderstood by consumers. The industry has done a fabulous job of masking what’s important in achieving true speeds and a pure Internet experience. A) Internet Speeds: Bad news! Buying more Mbps (Megabits per Second) seemed the answer to faster Internet speeds but that’s not exactly true. Purchasing more Mbps buys capacity not speed. Speed, how we comprehend it, is perceived in distance; like with miles per hour (MPH). Contrary to most beliefs, Internet speed is more accurately expressed as latency. Lower the latency, increase webpage load times. Isn’t that what we are looking for? Picture the Internet like a freeway; purchasing more Mbps buys you more lanes not a higher speed limit. Unknown by most, your lanes still move at the speed of your latency regardless of how many lanes you buy. Latency is something most ISP’s won’t discuss. They cannot control, manage or sell lower latencies effectively; instead they sell you more “slow lanes” of capacity. “What’s important to note here, and this confuses a lot of people, is that your internet isn’t any faster from 1 Mbps to 5 Mbps, or however much bandwidth your connection has. Your data is just transferred to you at a faster rate because more data can be sent at the same time. It’s more efficient, making your internet perceptually faster, not technically faster.” Your true Internet speed is the relationship between bandwidth (how much) and latency (how fast) – not just bandwidth alone. B) Oversubscription: Modem Services are notorious for oversubscription ratios that routinely surpass 100 to 1. Meaning, 100 people are sharing the same allocation of bandwidth on the same “Internet pipe”. There’s nothing inherently wrong with oversubscribing bandwidth; most people aren’t fully utilizing their bandwidth. Further, it increases the cost efficiencies of a network. However, when oversubscriptions are high, it causes peak period slow-downs for end-users. One hundred (100) households with 5 devices or more, all sharing the same

internet pipe, is simply too much. C) Symmetrical Speeds: Many forms of Internet, namely modem services, have asymmetrical speeds. This means higher downloads speeds than upload speeds. It’s common to see a 10-to-1 ratio. This can be a problem for live communication applications; like video streaming (e.g. Skype), VoIP or chat. If you are “... running any real-time applications like Microsoft Office365, VPN, VoIP, video conferencing, web conferencing, and/or you have a need for large file transfers, you will benefit from high speeds in both directions…” Read more about this here. A growing number of businesses facilitate remote work from home. Hence, the virtual work force is rapidly growing; it’s imaginable to see a majority of the workforce working remotely in the future. D) Privacy: Make no mistake your Internet habits are being monitored, recorded and stored. With recent Internet laws being passed, it’s now legal for ISP’s to collect and sell “ALL” of your browser history and other relevant data. IT professionals can dodge this; however, for the rest of us, prepare to share your online habits with your ISP.

Pillar 2 – Management: A) Dirty Data: Modem services are a WIDE OPEN pipe from the Internet to your home. This means that hackers have the ability to penetrate your network; the only obstacle is your $60 router from Best Buy, configured and managed by you. The “average Joe” is expected to configure their router in an attempt to protect against these professional hackers. Managing a network at this level is not for the faint at heart, yet we have been relegated to “figuring-it-out.” Millions of Americans are “on-their-own” which creates legitimate risks and concerns. B) Customer Support: Unfortunately support from most “Big Box” companies only exists to maintain THEIR wiring and equipment. If they confirm it’s not THEIR fault, you’re on your own. In some cases, you may find they offer expensive network support to help guide you through the perils. However, most ISP’s simply confirm the signal to your modem and don’t support it further. A perfect storm of bad equipment, bad wiring, monopolistic attitudes and profit-first philosophies fuel this lackluster and inept support experience. In the end, customer support falls short of par for most ISP’s. “…Without competition, there's no incentive for internet providers to improve infrastructure. These massive telecom companies create a bottleneck in the last mile of service by refusing to upgrade critical infrastructure. And they can charge exorbitant prices for the sub-par service while they're at it.” C) Best Effort Service: Unfortunately, most Americans are relegated to “Dirty City Water” because they have “best effort” modem service as their primary residential connection. Somehow the industry has thrived by offering lowestcommon-dominator-services. They even named it similarly, “Best Effort.” The ISP is saying they will try their best to provide what you paid for. Only, there are no Internet-quality-police to hold them accountable. Worst yet, there’s often a monopoly or duopoly which creates very little incentive to

Rental Housing Journal Colorado · July 2017

improve quality of service and customer support. That’s why the industry’s biggest providers are routinely voted the most hated in the U.S. Security: You are on your own in terms of security. Relying on virus protection or your operating systems firewalls can certainly help stop certain types of online threats. However, you are still in grave danger from hackers. Without professional management the network is left with a “Mom and Pop” security environment that lamely attempts to thwart determined threats. A study by CNET.com stated… “… all [14 top home routers] had critical security vulnerabilities that could be exploited by a "remote adversary" and could lead to unauthorized remote control of the router.”

Pillar 3 – Design/Configuration: A) WiFi Installation & Design: In a small space it may appear like WiFi design doesn’t really matter – there isn’t enough square footage to cause coverage issues, right? Not exactly, the WiFi radio frequencies (RF) from neighboring routers are all fighting for the same limited air space, with zero synergy. This is compounded in a multifamily environment; more WiFi interference means slower connections and decreased security, effectively creating a hodge-podge design that is counter-productive to “Pure Internet”. B) Configuration: Configuring a home router may seem intuitive if you know the basics. However, your home network is inherently disadvantaged because of the limited-feature-set found in a home router. They usually don’t include enterprise firewalls, bandwidth shaping, black lists and interference mitigation. The lack of features vastly limits proper security. Even if an enterprise router was used, the weakest link is still the novice home network engineer. A BBC article titled “How easy is it to hack a home network?” puts novice configurations and home networking blunders into perspective. “I found out just how severely compromised my home network was in a very creepy fashion. I was on the phone when the web-connected camera sitting on the window sill next to me started moving. The lens crept round until it pointed right at me. I knew that the attackers were on the other end watching what I was doing, and potentially, listening to the conversation.” Pillar 4 – Equipment & Wiring: A) Competition: It’s all about the bottom line, thus your local ISP plans on using their antiquated wiring infrastructure for as long as possible. Most ISP’s enjoy monopolistic environments. They won’t ordinarily upgrade unless there are extenuating forces. For example, in Google Fiber territories, local ISP’s magically upgraded their fiber infrastructure to compete. Googles expansion has since come to a halt. Google knows if they expand to new cities the local incumbents will simply ramp-up services in that area. Atlanta is the perfect example -- 99% of the country is not so fortunate to have a turf war driving down prices and forcing fiber upgrades. With little to no competition there’s no incentive to upgrade wiring

and cannibalize profits. Unless something changes, most of America will have to wait for fiber -- hunker down and get used to antiquated wiring for decades. B) Antiquated Delivery: Bandwidth delivered over coaxial or copper wire is outdated, and, by association, the entire delivery process has technological bottlenecks. Your delivery is only as strong as the weakest link. Even with fiber-to-the-home (FTTH), your bottleneck may still be the wiring inside the home, fiber media convertor, router or modem. There are many places the delivery could be bottlenecked when dealing with old wiring. “Most of America's telecommunications infrastructure relies on outdated technology, and it runs over the same copper cables invented by Alexander Graham Bell over 100 years ago. This copper infrastructure—made up of "twisted pair" and coaxial cables—was originally designed to carry telephone and video services. The internet wasn't built to handle streaming video or audio.” C) Over-the-Counter Routers: Most people either rent a modem/ router or buy one and, while overthe-counter WiFi equipment is priced to sell, it does not provide premium technology. Bigger living spaces can experience dead spots and most turn to mesh equipment, repeaters or other consumer grade “Whole-Home WiFi Solutions”. These types of solutions commonly relay the WiFi signal, which slows speeds around 50% per hop. Internet is only as fast as the weakest link. Next to bandwidth, equipment is the most common area that contributes to bad Internet experiences. Underserved/Overpriced: The typical Internet connection “sucks” and is overpriced. The average cost of residential Internet is around $75. Additionally, most pay $10 a month to rent their modem. The cost of Internet is not necessarily more than other utilities but definitely comes with the lowest quality and reliability. It is as essential as running water, but has all the problems of a do-it-yourself environment. Other utilities don’t pose the same dynamics. For most, the water pressure doesn’t drop every time neighbors run a bath. We pay $75+ for an essential utility service; we want the service to work – no headaches or training involved. From an antiquated infrastructure to user-error the entire experience is often a nightmare. Next month: Part II How to Fix Slow Internet for Residents, Generate Revenue and Ditch the “Cable Guys” With a Multifamily Internet Service Fiber Stream is a provider of futuristic high speed Internet and TV services. Fiber Stream’s target markets include Apartments, HOA'S, MDU's, and senior living communities. Headquartered in Phoenix, Arizona, Fiber Stream is a nationwide "Full Service" Internet provider, offering Fiber to the Unit (FTTU), Fiber-Backed Property-Wide Wi-Fi, Gigabit Internet, Managed Wi-Fi solutions and IPTV. Fiber Stream developed one of the first Revenue Generating Internet Systems of its kind. For more information, visit us here or at www.FiberStreamWiFi.com or call 1-888-644-9434.

Rental Housing Journal Colorado

DEAR MAINTENANCE MEN By Jerry L'Ecuyer & Frank Alvarez

Faucets, Storage and Vacancies

Dear Maintenance Men: When the bathroom faucet was new, turning off the hot or cold water knobs would cut the flow of water immediately. Two years later, upon turning them off, the faucet weeps a bit of water. Is this a sign the knob isn’t working? Can a clogged spout screen be fixed? With all these problems, do I need to buy an entire new fixture?

Paul

Dear Paul: Most types of faucets are repairable with standard tools and a rebuild kit. Note the brand and style of the faucet and find a corresponding repair kit at the local plumbing supply house or home improvement center. Repair kits often come with the specialized tool you may need to repair the faucet. The faucet screen can be cleaned and is housed in a removable assemble at the end of the spout. These can be spun off and the screens cleaned and replaced. Keep in mind the cost of repairs may rival the cost of replacement. If the cost of repair is more than fifty percent of the cost of replacement, we recommend the faucet be replaced with new modern fixture.

completed right the first time. And of those, only one-third of residents received notification that there would be a delay in completing the request. What the above means is poor maintenance service can lead to higher vacancies. It does not matter if you have 10 units or 100 units; maintenance is a critical tool in the physical well-being of your property and the happiness of your residents. Think of it this way. A service call and parts may cost $250 to service a broken washing machine or water heater, resulting in a satisfied resident. However, a resident having to live with a broken washing machine or intermittent hot water may elect to move rather than dealing with the hassle of calling in repeated service requests. That resident vacating will now cost the owner thousands of dollars

in loss rent and rehab work to bring the unit back to rent ready condition. Good maintenance is a year round tool to keeping your investment healthy and your residents paying the rent month after month. Questions, Questions, Questions! We need more of them!!! To be see your question in print, please send your them to: Frankie@BuffaloMaintenance.com Thank you! Bio:

Frank Alvarez is licensed contractor and the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 20 years. He is also a lecturer & educational instructor and CoChair of the Education Committee of the Apartment Association of Orange County as well as being Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com

If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371

Jerry L'Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Past President and past Chairman of the Education Committee of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988.

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Dear Maintenance Men: How can I add more storage to my utilitarian type bathrooms? The residents complain that they need to store their toilet paper in the hallway! Please list a few suggestions on what to do?

Robert

Dear Robert: It does seem bathrooms are sometimes designed as an afterthought. Sink, toilet, bath and that is it. A modern bathroom will take into consideration the need for storage, electrical devises, personal hygiene etc. The first item that comes to mind is installing a bath sink cabinet. An old style cabinet might only have a set of doors under the sink. We find this is not adequate and a cabinet should have drawers along with access to under the sink. The drawers can store hair dryers, and all manner of personal bath items. A unique system we like utilizes the space between the studs in the wall. Cabinet doors or mirrors can be used to cover storage in the walls. The wall storage is perfect for toilet paper, rolled up towels, tooth brushes, and most other small items. Install multiple towel racks on the back of the bathroom door for additional towel storage. The space above the toilet can easily accommodate an overhead cabinet for larger items. Reversing the swing of the bathroom door from inward to outward will greatly increase the usable room and make the bathroom appear larger. Dear Maintenance Men: It is currently summer time and that is when we get the most vacancies. How do I keep my residents from moving?

Denise

Dear Denise: Often residents relocate during the summer months due to a change in schools their kids attend. They want to be close or within walking distance. The other more problematic reason is poor maintenance service. According to the 2011 national resident study, "Getting Inside the Head of the Online Renter," the number one factor in a resident's decision to renew a lease is "Quality of Maintenance Services." Additionally, the current SatisFacts Insite® Index for Work Orders indicates that 18% of all service requests are not 4

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Rental Housing Journal Colorado · July 2017

Rental Housing Journal Colorado

Fewer Renters Think it is ...continued from page 1 Confidence among renters that now is a good time to buy a home continues to retreat Fifty-two percent of renters think now is a good time to buy, which is down both from last quarter (56 percent) and a year ago (62 percent) 80 percent of homeowners (unchanged from last quarter and a year ago) think now is a good time to make a home purchase. Younger households, and those living in urban areas and in the costlier West region are the least optimistic. The surge in economic optimism seen in the first quarter of the year appears to be short lived, according to the survey. The share of households believing the economy is improving fell to 54 percent in the second quarter after soaring to a survey high of 62 percent last quarter. Homeowners, and those living in the Midwest and in rural and suburban areas are the most optimistic about the economy. Only 42 percent of urban respondents believe the economy is improving, which is a drastic decrease from the 58 percent a year ago. Dimming confidence about the economy's direction is also leading households to not have as strong feelings about their financial situation. The HOME survey's monthly Personal Financial Outlook Index showing respondents' confidence that their financial situation will be better in six months fell to 57.2 in June after jumping in March to its highest reading in the survey. A year ago, the index was 57.7. "It should come as little surprise that the confidence reading among renters

has fallen every month since January (64.8) and currently sits at its lowest level (53.8) since tracking began in March 2015 (65.7)," said Yun. Low housing turnover at the root of supply and affordability problems The survey also showed 71 percent of homeowners believe it is a good time to sell. But whether they plan to list their home for sale is another question. This quarter, 71 percent of homeowners think now is a good time to sell, which is up from last quarter (69 percent) and considerably more than a year ago (61 percent). Respondents in the Midwest (76 percent) surpassed the West (72 percent) for the first time this quarter to be the most likely to think now is a good time to sell. There is an apparent mismatch between homeowners' confidence in selling and actually following through and listing their home for sale. "There are just not enough

homeowners deciding to sell because they're either content where they are, holding off until they build more equity, or hesitant seeing as it will be difficult to find an affordable home to buy," Yun said in the release. "As a result, inventory conditions have worsened and are restricting sales from breaking out while contributing to price appreciation that remains far above income growth." "Perhaps this notable uptick in seller confidence will translate to more added inventory later this year. Low housing turnover is one of the roots of the ongoing supply and affordability problems plaguing many markets," he said. Under half of respondents believe homes are affordable for most buyers; one in five would consider moving In this quarter's survey, respondents were also asked about the affordability of homes in their communities.

Overall, only 42 percent of respondents believe they are affordable for almost all buyers, with those living in the Midwest being the most likely to believe homes are affordable (55 percent) — and not surprisingly — West respondents (29 percent) being least likely to think homes are affordable. Additionally, 20 percent of respondents would consider moving to another more affordable community. Those earning under $50,000 annually (27 percent) and those age 34 and under (29 percent) were the most likely to indicate they would consider moving. "Areas with strong job markets but high home prices risk a migration of middle-class households to other parts of the country if rising housing costs in those areas are not contained through a significant ramp-up in new home construction," said Yun. About NAR's HOME survey In April through early June, a sample of U.S. households was surveyed via random-digit dial, including a mix of cell phones and land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 2,711 household responses are represented.The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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Rental Housing Journal Colorado

71 Percent of Homeowners Believe It's a Good Time to Sell Economic and Financial Confidence Dips

By National Association of Realtors

xisting housing inventory has declined year over year each month for two straight years, but new consumer findings from the National Association of Realtors® offer hope that the growing number of homeowners who think now is a good time to sell will eventually lead to more listings. That's according to NAR's quarterly Housing Opportunities and Market Experience (HOME) survey1, which also found that fewer renters think it's a good time to buy a home, and respondents are less confident about the economy and their financial situation than earlier this year despite continuous job gains. One trend gaining steam in the HOME survey is an increased share of homeowners who believe now is a good time to sell their home. This quarter, 71 percent of homeowners think now is a good time to sell, which is up from last quarter (69 percent) and considerably more than a year ago (61 percent). Respondents in the Midwest (76 percent) surpassed the West (72 percent) for the first time this quarter

to be the most likely to think now is a good time to sell. Lawrence Yun, NAR chief economist, says it's apparent there's a mismatch between homeowners' confidence in selling and actually following through and listing their home for sale. "There are just not enough homeowners deciding to sell because they're either content where they are, holding off until they build more equity, or hesitant seeing as it will be difficult to find an affordable home to buy," he said. "As a result, inventory conditions have worsened and are restricting sales from breaking out while contributing to price appreciation that remains far above income growth." Added Yun, "Perhaps this notable uptick in seller confidence will translate to more added inventory later this year. Low housing turnover is one of the roots of the ongoing supply and affordability problems plaguing many markets." On the decline: renter morale about buying a home and financial and economic optimism

Confidence among renters that now is a good time to buy a home continues to retreat. Fifty-two percent of renters think now is a good time to buy, which is down both from last quarter (56 percent) and a year ago (62 percent). Conversely, 80 percent of homeowners (unchanged from last quarter and a year ago) think now is a good time to make a home purchase. Younger households, and those living in urban areas and in the costlier West region are the least optimistic. The surge in economic optimism seen in the first quarter of the year appears to be short lived. The share of households believing the economy is improving fell to 54 percent in the second quarter after soaring to a survey high of 62 percent last quarter. Homeowners, and those living in the Midwest and in rural and suburban areas are the most optimistic about the economy. Only 42 percent of urban respondents believe the economy is improving, which is a drastic decrease from the 58 percent a year ago. Dimming confidence about the economy's direction is also leading households to not have as strong feelings about their financial situation. The HOME survey's monthly Personal Financial Outlook Index2 showing respondents' confidence that their financial situation will be better in six months fell to 57.2 in June after jumping in March to its highest reading in the survey. A year ago, the index was 57.7. "It should come as little surprise that the confidence reading among renters has fallen every month since January (64.8) and currently sits at its lowest level (53.8) since tracking began in March 2015 (65.7)," said Yun. "Paying more in rent each year and seeing home prices outpace their incomes is discouraging, and it's unfortunately pushing home ownership further away – especially for those living in expensive metro areas on the East and West Coast." Under half of respondents believe homes are affordable for most buyers; one in five would consider moving In this quarter's survey, respondents were also asked about the affordability of homes in their communities. Overall, only 42 percent of respondents believe they are affordable for almost all buyers, with those living in the Midwest being the most likely to believe homes are affordable (55 percent) – and not surprisingly – West respondents (29 percent) being least likely to think homes are affordable. Additionally, 20 percent of respondents would consider moving to another more affordable community. Those earning under $50,000 annually (27 percent) and those age 34 and under (29 percent) were the most likely to indicate they would consider moving. "Areas with strong job markets but high home prices risk a migration of middle-class households to other parts of the country if rising housing costs in

those areas are not contained through a significant ramp-up in new home construction," said Yun.

About NAR's HOME survey In April through early June, a sample of U.S. households was surveyed via random-digit dial, including a mix of cell phones and land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 2,711 household responses are represented. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries. 1 NAR's Housing Opportunities and Market Experience (HOME) survey tracks topical real estate trends, including current renters and homeowners' views and aspirations regarding homeownership, whether or not it's a good time to buy or sell a home, and expectations and experiences in the mortgage market. New questions are added to the survey each quarter to reflect timely topics impacting real estate. HOME survey data is collected on a monthly basis and will be reported each quarter. New questions will be added to the survey each quarter to reflect timely topics impacting the real estate marketplace. The next release is scheduled for Monday, June 12, 2017 at 10:00 a.m. ET. 2 Index ranges between 0 and 100: 0 = all respondents believe their personal financial situation will be worse in 6 months; 50 = all respondents believe their personal financial situation will be about the same in 6 months; 100 = all respondents believe their personal situation will be better in 6 months. Information about NAR is available at www.nar.realtor. This and other news releases are posted in the "News, Blogs and Videos" tab on the website. Some statistical data in this release, as well as other tables and surveys, are posted in the "Research and Statistics" tab. Follow NAR Media's Newsline blog at http://narnewsline.blogs.realtor.org and Twitter at @NARMedia. SOURCE National Association of Realtors Related Links http://www.realtor.org

Rental Housing Journal Colorado · July 2017

Rental Housing Journal Colorado

The 10 U.S. Cities Where The Cost Of Living is Rising Fastest By GOBankingRates

merican household debt totaled a record $12.73 trillion as of March 2017, so cost of living concerns are more pertinent than ever. Personal finance news and features website GOBankingRates conducted a study to identify which cities across America have seen the largest increase in cost of living expenses from 2016 to 2017. The study evaluated U.S. cities based on two principal metrics: • The increase in a city's cost of living index, which includes food, rent, utilities and transportation. • The Increase in the amount of income required to "live comfortably," a concept used in GOBankingRates studies that combines the money needed to pay for necessities — including food, rent, utilities, transportation and healthcare — with the amount one should budget toward discretionary spending and savings. GOBankingRates identified the cities where the cost of living index had increased by at least two points (out of a total 100) and the amount of income required to live comfortably had also risen. Combining these two metrics provides both the objective and more subjective side of cost of living expenses. Most cost of living indices do not account for the ability to save or pay for unnecessary purchases, and yet they're both important parts of people's financial lives. For full study results and more details on methodology, visit: The 10 U.S. Cities Where the Cost of Living is Rising Fastest

Top 5 Cities Where the Cost of Living is Rising Quickly 5. Jacksonville, Fla. • Live Comfortably Amount Increase: $2,095 • Cost of Living Index Increase: 3.36 points 4. Austin, Texas • Live Comfortably Amount Increase: $1,407 • Cost of Living Index Increase: 3.84 points

3. Louisville, Ky. • Live Comfortably Amount Increase: $2,066 • Cost of Living Index Increase: 4.49 points 2. Seattle • Live Comfortably Amount Increase: $3,190 • Cost of Living Index Increase: 7.32 points 1. Nashville, Tenn. • Live Comfortably Amount Increase: $9,135 • Cost of Living Index Increase: 8.61 points Additional Study Insights Home prices have been surging in Nashville. From April 2015 to April 2017, the median list price for a home rose by almost 30 percent, from under $260,000 to nearly $340,000. According to new income limits set by HUD, an individual earning $50,500 a year in Los Angeles County (#6 on the list) is now considered low-income. The cost of living has actually gone down in New York, San Francisco, and Honolulu — cities with notoriously high expenses. About GOBankingRates GOBankingRates.com is a personal finance news and features website dedicated to helping visitors live a richer life. From tips on saving money, to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, MONEY, AOL Finance, CBS MoneyWatch, Business Insider and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us here.

Top 3 Biggest Stressors ...continued from page 1 “If you are an owner and you are struggling with these issues you are not alone. “If you are a property manager these are things you might want to bring up when you are trying to win more business, or emphasize in your marketing materials, or when you are talking to owners,” Jacobson said.

Top 3 biggest stressors for property owners and managers 1. Maintenance, repairs and replacements 2. Dealing with problem tenants 3. Finding and keeping good tenants Dealing with problem tenants now No. 2 While maintenance scored as the top stressor, three out of owners’ four topcomplaints were solidly in the area of tenant management. Last year, ‘finding and keeping tenants’ came in a very close second (58%). This year it dropped to #3 (49%). It swapped spots with ‘dealing with problem tenants’, which is now #2 (52%). ‘Tenant damage and vandalism’ came in fourth place this year (38%). The take-away here seems clear. Maintenance woes scored highest on their own, but three out of owners’ four top complaints were solidly in the area of tenant management. In fact, you have to go very deep into the list to find additional maintenance-related issues—such as pest management and severe weather, which tied at 6%.

their top reason was maintenance,” Buildium.com said in the survey. Owners said in the survey, “I would like someone else to deal with maintenance and emergencies,” was the top answer. And, 52 percent said managing property day-to-day is too time consuming.” Property owners were 54% men and 46% women, according to the survey. Buildium said in the survey that, “As a rental property owner, whether you are a strategic investor or someone who has fallen more unexpectedly into ownership, you are probably curious about the experience of others. How are they keeping property ownership profitable and enjoyable? What are their best practices?” “Or perhaps you are a property manager looking for insights on what owners care about most.” How can you connect with them? What are their expectations from property management and ownership? About the survey: In March 2017, Buildium and All Property Management deployed this second annual Property Owners Perspectives Survey to nearly 700 rental property owners across the U.S., asking them about property, what they expect, and where they turn for information advice and help.

Breaking down the top maintenance issues When Buildium.com broke down the top maintenance issues in the survey, to highlight problems that have hit owners and property managers the worst in recent years, roofing, painting, foundations and landscaping came to the top. Maintenance upkeep costs were clearly at the top with “bad tenants” right behind, so “no wonder then when we asked owners why they might look for a property manager, 60% told us

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Rental Housing Journal Colorado · July 2017

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