Professional Publishing, Inc
www.TheLandlordTimes.com
February 2013
COLORADO
DENVER METRO • COLORADO SPRINGS • BOULDER
Vol. 5 Issue 2
Monthly Circulation To More Than 7,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel
Colorado's Fourth Quarter 2012 Insight Into The Rental Applicant Risk Index Report By: Jay Harris, Vice President of Business Services, CoreLogic SafeRent The CoreLogic® SafeRent® Renter Applicant Risk (RAR) Index Report, formerly known as the Multifamily Applicant Risk (MAR) Index Report, provides market-based benchmarks for evaluating credit quality and risk of default for renters applying for apartment homes in multifamily housing units. The index also includes data from single-family rentals. Using a mean of 100, an index value above 100 indicates decreased risk, and a value below 100 indicates increased risk. According to the data, the risk of default among renters nationwide decreased year over year in the fourth quarter of 2012 with an index value of 103 compared to the fourth quarter of 2011 with an index value of 101. On a quarter-over-quarter basis, the risk of default increased in Continued on page 3
6 Questions with Heather Blume The Landlord TImes recently caught up with multifamily housing veteran and blogger, Heather Blume. Here’s what Heather has to say about apartment management, teaching, her mentor, marijuana, eating lunch and relationship artistry... TLT: What is it about multifamily and rental housing that has kept you motivated and interested? HB: I love the fact that no matter the background or skill set that you bring to the table in this industry, it’s valuable. For example, I was an artist, a photographer, a playwright, a florist, a radio disc jockey, and had more than a few retail jobs in my past, but all of those skills translated in this professional world as a powerful Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
set of abilities. Leasing was the first job I ever held where I felt like I was bring something worthwhile to the job, rather than just learning from it. Knowing that I found a place in this world where I “fit” perfectly…that was a powerful motivator for me, and still is today. TLT: What do you consider your greatest success in your career? HB: It’s cheesy, but the greatest success moments in my career are when I’m looking at a room of people, teaching something, and I can see the light bulb over one of their heads switch on. They get this look and you just know that some how you’ve been able to reframe an idea or a concept in a way that they just…get it. Every single one of those moments are my greatest successes, because I know it makes someone’s career better.
Current Resident or
TLT: Who was the most influential person in the early part of your career? What did you learn from them? HB: Hands down, Lisa Trosien has been my beacon in this industry. Besides being one of the most talented and smartest people I know, she’s my mentor, my guide, my friend, my cheerleader, and, when I need it, the person who sticks a pin in my ego to deflate it back down to a normal level. I took my very first class in this industry from her when I started on site, and after watching her for less than 20 minutes I knew exactly what I wanted to do with my career. I remember approaching her after that class, introducing myself and asking her what steps I had to take to do the job she was doing. She inspired Continued on page 4
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Expansion Moderates for Apartment Markets in January After a seven-quarter run, expansion moderated for apartment markets according to the National Multi Housing Council’s (NMHC) January Quarterly Survey of Apartment Market Conditions. For the first time since 2010, two of the four indexes – Market Tightness (45) and Sales Volume (49) – dipped below 50, though just barely. The two financing indexes show continued improvement for the 8th consecutive quarter, as the Equity Financing (56) and Debt Financing (57) Indexes remained above the breakeven level of 50. “The pace of improvement in the apartment industry is moderating, but the expansion remains solid,” said Mark Obrinsky, NMHC’s Vice President for Research and Chief Economist. “Lease-up demand is seasonally weak in January, which would fully explain the small drop in the Market Tightness Index. Beyond that, markets were quite tight three months ago, and remain tight today. New construction has picked up considerably since its 2009 low, but is still playing catch-up with the increase in demand for apartment residences.” Key findings include: Financing remains constrained to top markets. Only 12 percent reported construction financing as available for all types of apartments in all markets. Similarly, slightly more than a quarter (28 percent) thought acquisition financing was available for all properties in all markets. For both construction and acquisition financing, 43 percent of respondents indicated that capital was available for primary markets but constrained in secondary and tertiary markets. Market Tightness Index declined to 45 from 56. The change ends an 11-quarter run for the index at 50 or higher. Fifty-nine percent of respondents said that markets were unchanged, reflecting stable demand conditions. One quarter of respondents saw markets as looser, up from 14 percent in October, while 16 percent viewed markets as tighter. The Sales Volume Index decreased slightly from 51 to 49. Nearly half (47 percent) of respondents said that markets were unchanged, reflecting stable demand conditions. One quarContinued on page 3