Professional Publishing, Inc
www.TheLandlordTimes.com
Vol. 5 Issue 7
July 2013
COLORADO
DENVER METRO • COLORADO SPRINGS • BOULDER
Monthly Circulation To More Than 7,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel
Colorado's First Quarter 2013 Insight Into The Rental Applican 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 first quarter of 2013 with an index value of 104 compared to the first quarter 2012 with an index value of 102. On a quarter-over-quarter basis, the risk of default decreased in the first quarter 2013 compared to the fourth quarter Continued on page 3
National Rent Growth Slows for Eighth Consecutive Quarter Axiometrics Inc., the leading provider of apartment data and market research, reports that at the national level annual effective rent growth slowed to 3.2% in the second quarter of 2013. For comparison, annual effective rent growth in the second quarter of 2012 measured 4.0%. Further, Axiometrics’ data indicates that the effective rent growth rate has slowed for eight consecutive quarters as many Metropolitan Statistical Areas (MSAs) are decelerating from very strong growth the previous three years. Peak annual rent growth at the national level during this current cycle was 5.3% in July 2011.
Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
Despite the slowdown nationally, many individual markets are still generating very strong rent growth rates, with 20 of the top 88 MSAs reporting annual effective rent growth of greater than 4.0%. While the national growth rate has been slowly decelerating over the past eight quarters, it should also be noted that the current growth rate is still above the long-term average of 2.1%. Occupancy at the national level remained strong, measuring 94.7% in the second quarter of 2013. A year ago the occupancy rate stood at 94.3%. The improvement in occupancy has occurred despite an increasing wave of new apartment
Current Resident or
supply. During the second quarter, 40,739 new apartment units were delivered, up from 18,861 units delivered in the second quarter of 2012. Apartment deliveries have totaled 124,500 over the trailing 12 months. With the pace of new deliveries increasing, the total for new deliveries in 2013 should reach 185,348 units by the end of the year. Fewer Concessions Mean Higher Rents As the market has tightened over the past few years, it has become increasingly difficult for renters to find rental concessions, at least in most MSAs. At the national level, Continued on page 4
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Resident Appreciation It Means Everything! © Want to know the secret for keeping your residents forever? And what if you could keep your properties full and plus have a waiting list, because your residents loved the way you appreciated them? In this article, you will learn how easy it is to develop a powerful resident appreciation program. Once in place, an appreciation program will forever change the way you operate and manage your apartment communities. Developing a monthly appreciation plan: At the beginning of each month, develop some fun ideas to “thrill” the residents at the properties you own or manage. Start by planning a short brainstorming session with your key property supervisors, resident managers and their leasing staffs, so you can hear their unique insight about ways to make the program a giant success. Their input is critical as each property has its own special resident profile, so customize your appreciation plan accordingly. Once your appreciation plan is finalized, provide a written recap for your leasing team so everyone will know exactly what their role will be. Clear communication makes for perfect implementation. Tip From The Coach: Consider building your resident appreciation plan for six to twelve months in advance. This makes for better financial budgeting, a more thoroughly developed appreciation plan, and your leasing team will have the time to evaluate several competitive proposals for the cost of each month’s theme. Building appreciation themes: As you consider the theme for each month’s appreciation program, start by looking for specific holidays or seasonal times of the year. For example, summer time is perfect for fun poolside events and outside activities. Have your leasing team take plenty of photos and fill your next newsletter + website with pictures of your residents having a great time. Everyone loves to see pictures of themselves and for those who Continued on page 2 Get Social With The Landlord Times