Rental Housing Journal Valley January 2016 by Professional Publishing, Inc

Rental Housing Journal Valley

January 2016

4. Desire to Buy Strong Despite Affordability, Economic Concern

6. Dear Maintenance Men – Pest Control & Preventative Care

5. 4 Faces of Leadership and the Importance of the Vision Thing

EUGENE · SALEM ·ALBANY · CORVALLIS WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

Delivering a Dynamite Digital Experience: Best Practices for Satisfying the Needs of the Multifamily Wi-Fi Lifestyle By Eric Markow

Build Community in Three Steps

By Jen Piccotti SVP Education and Consulting, SatisFacts and ApartmentRatings.com

s an industry, we’re consistently focused on developing a sense of community. A critical budget line item is Resident Events. And yet, participation in our pizza parties, breakfast-on-the-run, Disney movie singalongs, or Super Bowl viewing parties are minimal, at best. To make matters worse, when asking residents about their satisfaction with “Sense of Community,” the national average is 3.40 on a 5-point scale. That translates to a “Warning” classification on our rating scale. Ouch! Lately, as we’ve been presenting workshops and seminars, we poll the audience by asking, “As you think about the upcoming weekend, how many of you are looking forward to hanging out with your neighbors?”

The typical response from a room full of around 150 people is 3 or 4 raised hands. After a year of conducting these non-scientific experiments, we feel convinced that what we’re seeing in the classrooms is not very different from what you’re seeing on-site. Yet why are we convinced our residents feel any differently? According to the 2015 SatisFacts Index, when asked why residents weren’t “Very Likely” to renew, “Neighbors” was in the top 5 reasons. And when asked what could be done to improve the community, “Better Residents” ranked in the top ten. Let’s face it, residents are not welcoming each other to the community with goodie baskets and borrowing cups continued on page 3

Do-it-Yourself Landlords May be Working Below their Paygrade

remendous New Opportunities for Property Owners Many apartment buildings, housing sub-divisions, and other contained communities have driven incremental revenues by creating interesting services for their residents, including newsletters, events, parties, and interest groups. Today’s property owner can take this concept to an entirely new level. By bringing high-speed connectivity to the Internet into your property you can distribute it to every unit under complete control. Contracting with the right continued on page 2 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

he economic conditions of recent years have led many Americans to look to the real estate market for investment opportunities. Considering there are now nine million more renters than there were a decade ago and rental rates continue to increase, now may seem like the time all those property investors have been long awaiting, right? PRSRT STD US Postage PAID Portland, OR Permit #5460

Unfortunately, what many property investors fail to realize is the high cost and demanding lifestyle that accompanies their investment if they choose to self-manage as a do-it-yourself (DIY) landlord. Approximately 80 percent of investors who lease single-family residences

manage their property themselves, subsequently taking on the responsibilities of rent collection, regular property inspections, tenant issues, repairs, maintenance, and occasional legal action. Real Property Management, a national property management franchise, released findings that suggest many DIY landlords may be working below their pay grade, spending too much money and time managing their rental properties, and ultimately receiving minimal return-on-investment (ROI). The findings are from the company’s online Landlord Calculator, a resource that allows landlords to input how much time they’re spending on each aspect of property management, in comparison to overall income money spent. continued on page 7

Advertise in Rental Housing Journal Valley Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly. Call 503-221-1260 for more information

Rental Housing Journal Valley

Dynamite Digital Experience ...continued from page 1 more from their smartphones wherever they may be. Home Theater systems are replacing long wires strung around the home with wi-fi-connected speakers. Refrigerators and other appliances are using wi-fi to serve customers better. Your provider’s support team should be able to help your renters get the most out of these emerging new digital lifestyle enhancements.

provider you deliver a complete service throughout the entire community. How do you identify the right provider? When you interview them, they’ll recommend the following best practices.

self. These services are not limited to the internet. You may want to make it easy for your renters to request various physical plant services or community activity services from you.

“Transparent Access” With the exception of some younger millennials who were raised with information technology as a major part of their lives, most users want to enjoy the benefits of wi-fi internet access without having to think about the technology that delivers it. Keeping the technology invisible starts with making the initial connection to the service “push-button” easy. The right provider will offer stepby-step pictorially illustrated instructions for connecting various devices to the service, and may offer a premium “welcome” service in which someone does all the connecting for the renter. From that point forward the user should seldom if ever need to reconnect. You may also be able to look to your provider to include a “front-end” website that your renters encounter first whenever they log in to their device. This “portal” can be set up to make a host of excellent services available to your renter, including services you provide your-

Comprehensive Security & Privacy The privacy of personal information including online banking, personal health information and more is becoming a “front-of-mind” issue with everyone. When you’re speaking to the “right provider” you’ll hear plenty about how they protect users from viruses, spam, malware, hacking, and all the other internet threats out there. Parental controls over website access is another paramount issue you can expect to hear about. Be sure to ask about the interactivity of security services. Often, the renter’s specific bank or other internet resources may require some “custom-tuning” to the firewall and other security services in order to perform properly. This should be as easy as calling in to the support team.

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can be proud of. If they run into a problem and have a hard time solving it, all the time they spent enjoying good service will suddenly be forgotten. The responsiveness and ease of access to the provider’s support team make all the difference. This may be a technical service, but it’s being used by people, so the people they interact with when something is wrong need to be top drawer, easy to reach, and easy to work with.

User Counseling & Advice Support should be as proactive as it is reactive. Beyond responding to requests for restoration of services, the support team should also be available to advise your renters about adding new devices, products, or services to their wi-fi network. Smart Home automation is becoming very popular, with more and more users being able to switch lights on and off, lock and unlock their doors, control their thermostats and much

Future-Proofing It is a sure bet that technology will keep on improving, and you won’t ever want your renters complaining that your wi-fi service is antiquated and out-ofdate. Smart providers are assuring that it is easy and inexpensive to update your equipment and your wi-fi internet access services to keep step with the times. The availability of a comprehensive built-in wi-fi capability in your units will be a huge differentiator for your properties for a long time to come, especially if you make the right choices, implement the right technologies and services working the with right partners. Eric Markow is Chief Technology Officer of Dual Path, a provider of high speed property-wide WiFi services. Dual Path’s customers include MDU and senior living communities who enjoy fast, reliable connectivity, delivered with old-fashioned customer service. Dual Path’s unique revenue generating model allows property owners to leverage their “Internet real estate” to maximize profits, increase resident satisfaction and retention, and increase property value. Headquartered in Phoenix, Arizona, Dual Path offers property-wide WiFi, Gigabit Internet and WiFi calling solutions to properties and businesses coast to coast. For more information, visit www.dualpath.net or contact 1-800-468-6851.

Easy-Access Technical Support Speaking of the support team, remember that you’re providing your renters with a comprehensive service that you

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Advertise in Rental Housing Journal Valley Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly. Call 503-221-1260 for more information 2

Rental Housing Journal Valley · January 2016

Rental Housing Journal Valley

Building Community ...continued from page 1 of sugar – the “love” is just not there. For added confirmation, we look to our data and an in-depth analysis of surveys from over 1.6 million residents. What we see is that when residents are evaluating “Sense of Community,” they’re not expressing their desire to become best friends with their neighbors or even having more or better events. When residents are evaluating sense of community, they are actually evaluating their relationship with you, the property team. They’re thinking about how connected they feel to those who care for and maintain the community, not the population that makes up the community itself. So, how do we build that connection?

1. Be the Go-To Guy or Gal. Ideally, everyone on staff should have the ability to provide assistance to any resident, but it’s such a luxury to be able to get in contact with your “go-to” person, A “go-to” already knows your back story, they know what’s already been done or what your particular challenges are. As Lisa Giedd, of The Bluffs at Nine Mile Creek (Dominium) shared as a best practice, “If a resident asks for a specific team member or the manager, do what you can to connect them with that team member. Even if someone else was able to answer the question or resolve the issue, the resident will mostly remember that the team member or manager was not available to them.” 2. Expect the Best One of the best pieces of advice I ever received from a supervisor was, “Go into the meeting expecting that it will go well. 9 times out of 10, it will.” It’s a

self-fulfilling prophecy. If you expect that a resident meeting or call is going to be a disaster, it probably will be. But if you anticipate your own ability to provide a good resolution and that the resident will walk away feeling good, then most likely that will be the outcome. Relationships with residents, like all other relationships, are built on communication and shared experiences, which can lead to trust. Give them reasons to love you, believe in your ability to work well with them, and enjoy the result.

3. Dress to Impress Residents want to be proud to show off their home to friends and family. Now, more than ever, the appearance and condition of common areas is being evaluated when a person chooses to rent or to renew. Be obsessive about neatness and tidiness. Ensure walkways are swept, trash cans are emptied, cobwebs are

brushed away, and bare dirt is attended to. Your community doesn’t need to be brand new to look well kept. The same goes for you and your entire team. You’re part of the scenery, so take pride in how you present yourself. Clothing should be clean and pressed. Your hair and nails should be neatly groomed. Are your residents excited to walk their guests around the community? Are they excited to introduce them to you (or do they steer them away)?

set a goal of getting to know at least 5 residents you haven’t spoken with before. Residents don’t “just” leave apartments. They most often leave people. Because our business is built on relationships, our ability to build those relationships is going to determine the big winners and the colossal losers in our industry. “Sense of Community” = “Sense of Connection with the Staff.” Build your relationships one resident at a time and you’ll suddenly find you’ve built a thriving community! About the author: Jen heads up client support for SatisFacts and ApartmentRatings.com, by developing dynamic, practical and effective educational programs and resources, conducting resident feedback analysis, directing customer experience re-design, and providing digital strategy coaching. Jen has over two decades of customer loyalty and process efficiency experience. A noted author, keynote speaker and highly followed blogger in the multifamily industry, Jen has spoken at such events as the NAA Education Conference, NAA Education Institute (NAAEI), AIM: Apartment Internet Marketing, and the Multifamily Social Media Summit. Contact Jen at jpiccotti@satisfacts.com

The point of this article is not to get you to scrap your event calendars or do away with contests and opportunities to celebrate what makes your community a great place to live. However, instead of planning events strictly to connect residents to each other, plan events with the goal of the team connecting with the residents. Require team participation, and

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Rental Housing Journal Valley

Desire to Buy Strong Despite Aﬀordability, Economic Concerns

lthough only half of surveyed households believe the economy is currently improving, nearly all young renters eventually want to buy a home, and a convincing majority still view homeownership as part of their American Dream, according to a new quarterly consumer survey released today by the National Association of Realtors®. Additionally, a newly-introduced index tracking the financial outlook of households found that compared to earlier this year an increasing share believes their personal financial situation will improve in the months ahead. NAR’s inaugural quarterly household survey, Housing Opportunities and Market Experience (HOME), 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 market1. New questions may be added to the survey each quarter to reflect timely topics impacting real estate. The HOME survey data reveals that an overwhelming majority of current renters who are 34 years of age or younger want to own a home in the future (94 percent). Overall, 83 percent of polled renters have a desire to own, and 77 percent believe homeownership is part of their American Dream.

Lawrence Yun, NAR chief economist, says the survey’s findings debunk the notion that young adults aren’t interested in buying a home. “Despite entering the workforce during or immediately after the worst of the financial and housing crisis, the desire to become a homeowner appears to be a personal goal for a convincing majority of young renters,” he said. “Furthermore, there appears to be sizable, pent-up demand for buying that currently remains untapped because of a variety of economic and personal reasons impacting many households.” The top two reasons given by renters for not currently owning was the inability to afford to buy (53 percent) and needing the flexibility of renting rather than owning (19 percent). When asked what would likely be the main reason for buying in the future, renters cited lifestyle considerations such as getting married, starting a family or retiring (33 percent) and an improvement in their financial situation (26 percent). “A combination of factors such as rising rents and home prices, limited supply, repaying student debt, and getting married and having children later in life has more to do with the currently underperforming share of first-time buyers than the idea that buying a home is not as desirable as it used to be,” adds Yun.

Households lukewarm about the U.S. economy Among all households (renters and homeowners) in the survey, the results highlight a split between those who agree the U.S. economy is on the right track and those who disagree. Only half of respondents believe the economy is currently improving, and 44 percent think the economy is actually in a recession. Renters were only slightly more optimistic about current economic conditions, with 57 percent believing the economy is improving. Regardless of their confidence in the U.S. economy today, over three-quarters (76 percent) of those who don’t think the economy is improving still want to eventually buy a home. “The promising stretch of job creation in several parts of the country in recent years has the housing market in 2015 on track for its best year of sales since the downturn,” says Yun. “However, that only half of surveyed households believe the economy is improving can be attributed to the fact that some areas have been slow to recover and wages have yet to grow in a meaningful way for far too many families.” Adds Yun, “With roughly 26 million more people in the U.S.2 compared to the peak year of home sales in 2005 (7.08 million), the pace of existing sales would

likely be more robust if not for the economy’s subpar growth since the downturn and wage gains that have failed to keep pace with rents and home prices.”

Homeownership remains good financial decision, part of American Dream Despite uncertainty about the economy’s current performance, at least 84 percent of all households within all surveyed age groups and education levels believe owning a home is a good financial decision. When asked if they believe this strongly or moderately, 76 percent who believe it’s a good decision feel strongly about it. Additionally, at least 85 percent of surveyed households in each age category as well as across all education levels believe homeownership is part of their personal American Dream. The most appealing aspects of homeownership cited by those with this feeling include a place to raise a family (36 percent), owning their own place (26 percent) and a nest egg for retirement (14 percent). Good time to buy, but skeptical about ability to obtain a mortgage NAR’s survey found that more homeowners (82 percent) than renters (68 percent) during the polling period believe that it’s a good time to buy a home. Furcontinued on page 7

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Rental Housing Journal Valley is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly

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Rental Housing Journal Valley · January 2016

Rental Housing Journal Valley

4 Faces of Leadership and the Importance of the Vision Thing

Behavioral Strategist Explains How Any Leader Can Responsibly Boost Their Visionary Side

hether it’s a presidential candidate, a corporate executive or an NFL coach, people admire a leader with vision. They like someone with a clear idea of where he or she is headed, and who knows how to motivate others to accomplish the goal. But as much as people might like to say someone is a “born visionary,” in truth, vision is something we develop, not something we arrive in the world with, says Rob-Jan de Jong, a behavioral strategist and author of “Anticipate: The Art of Leading By Looking Ahead” (www. robjandejong.com). “One thing that visionaries have in common is that they have an ability to notice things early,” de Jong says. “They recognize some sort of significant change is happening and they make use of the opportunities it presents.” Just identifying that a major change is afoot isn’t enough, though, he says. The visionary needs to connect the dots into a coherent picture that takes into account future developments. “That’s easier said than done, but it’s an ability leaders can develop if they are willing to work on it,” de Jong says.

Growing a leader’s visionary side therefore boils down to sharpening both the ability to notice things early and the ability to create coherence. In combination, the abilities suggest four archetypes of leaders.

The Follower. This is someone who is neither good at noticing things early, nor skilled at creating and communicating a coherent story from insights about what the future might bring. The follower may be an excellent manager, but don’t expect this person to inspire others or drive innovation. “Being a follower isn’t necessarily a bad thing,” de Jong says. “These people are often careful about their decisions and good at critical thinking, and in the short term that can work well. But their preoccupation with today keeps them from anticipating what comes next.” The Trend Hopper. On the upside, a trend hopper has a well-developed ability to see things early and is willing to embrace changing realities. These are people who are quick to adopt new technology and among the first to fantasize about how things can be

different – even radically different– real soon, de Jong says. On the downside, trend hoppers aren’t adept at turning their early insights into a coherent story that justifies an active strategic pursuit. After seeing them chase several flavor-of-the-month ideas, other people start to tune them out.

The Historian. These leaders are adept at connecting the dots and spinning a story that makes sense. They cite patterns, facts and figures and make everything that’s happened so far look coherent and intentional. “When you listen to them, it all makes sense,” de Jong says. “But they have their eyes trained on the factually true past, not the imaginative uncertain future.” Certainly, it’s valuable to have some historical perspective, he says, but you can’t let history cripple your ability to engage the future. Historians also often are cynics, ready to explain why things are they way they are and why your unconventional idea won’t work. The Visionary. This is the one to strive to be. A visionary isn’t quick to hop on every fad, but also isn’t a naysayer about how things

might be done differently. Instead, says de Jong, the visionary takes a mindful, future-oriented perspective, balancing the need for a compelling future with the awareness of the dangers of becoming dogmatic and overly optimistic. Visionaries are able to explain an imagined future in a way that fills people with energy and engages their imagination. “A powerful vision isn’t just nice to have,” de Jong says. “It’s the most important tool in the transformational leader’s toolbox. A leader’s personal imagination, inspiration and dedication are what will ignite the excitement in the people they lead.” About Rob-Jan de Jong Rob-Jan de Jong, author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong. com), is an international speaker, writer and consultant on strategy and leadership themes. He serves as an expert lecturer at various leading business schools such as the Wharton Business School (USA), Thunderbird School of Global Management (USA), Nyenrode Business University (The Netherlands), and v Business University (Turkey). As a behavioral strategist, he speaks, teaches and consults on executive subjects such as visionary leadership, influence, strategic decision-making, and innovation.

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Rental Housing Journal Valley · January 2016

Rental Housing Journal Valley

DEAR MAINTENANCE MEN Pest Control & Preventative Care

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men: How do I get rid of mice or rats? I have found droppings in the house and I’m not happy and I need a solution. Annie

Dear Annie:

It will make him thirsty and when he drinks water, he will bleed internally. When using this option, be sure to leave a saucer of water near the poison. The poison normally comes in bars that can be broken up into pieces. Remember rodents hoard, so just because the poison is gone, does not mean they ate it. Put more until they stop taking it. The local hardware store should carry this product, but it is best to go to a farm supply store. They will have the best quality supply. Be careful with placement, so other animals do not eat this poison. The hardware store or farm supply store carry approved bait dispensers designed for rats or mice. Again, patience is rewarded. Before using poison bait, use crunchy peanut butter to let the rats get used to the bait station for a few days. Then add the poison bait with a little bit of peanut butter. Glue traps are also a viable option. It is important to use large rat sized traps. Put the glue trap along a known rat runway, or along a ledge or rafter used by the rodents. It isMETRO, important to ARIZONA nail or fasten VALLEY, the glue trap in place. Place a bit of peanut butter in the middle of the trap as an attractant. Happy hunting! Dear Maintenance Men:

Please come down off that chair! We have written about dealing with mice and rat issues in the past and below is what we recommend if you want to get rid of the rodents yourself. Keep in mind that rats and mice are smart & conservative. They are not risk takers. In the rat or mouse’s mind, a trap out in the middle of the floor is too risky to investigate. Rodents will run along walls, rafters and other low exposure areas. Put the traps along these routes about ten feet apart. A good bait to use is peanut butter. Patience is king when trying to trap a rat. Place all your baited traps, but DO NOT set them for a day or two. Let the rat nibble at the bait danger free. This last part is the hardest to do. However, patience will win out. If you rush ahead and set the traps and the rat triggers one and is not caught; he will remember! Also, avoid using traps designed for mice; it will only annoy the rat and he will be smarter for it. The same goes for using rat traps to catch mice. I doing some long term preventive The trap is too big and when sprung may maintenance with my building’s indimiss the mouse.Feb, Apr, Jun, Aug, Decwater heaters. Each vidualOct, 30-40 gallon Using poison is another option. An- unit has a water heater and I’m not sure ticoagulant poison is very popular. This of the age or condition of each unit. poison causes the rat’s blood to thin.

How long do most heaters last and what are some signs of imminent failure? Bryan

Dear Bryan: The chances of a number of heaters failing all at once are very slim. The cost of replacement can be spread a over period of time. The average life span of a typical 30 or 40-gallon water-heater is about 10 to 12 years, some may last much longer depending on use. A sign the end may be near is: banging noises coming from the heater, short hot water supply and long heater cycle times producing lukewarm water. At this point you should start pricing a new heater. However, if you find water pooling at the base of the heater … replace it immediately, it has FAILED!! Dear Maintenance Men: One of my maintenance chores I do is caulking and sealing shower/tub fi xture flanges and shower walls. My problem is getting the caulking to dry before a resident uses the shower. Any Suggestions? APT. NEWS David

ON-SITE-NW SEATTLE Dear David: Salsbury Industries

A lot of people will say: “Just tell the resident not to use the shower till the caulking is dry”. Well it doesn’t work and by the time you are driving away from the building, your resident is already taking a shower and your fresh caulking is washing down the drain. Your caulk should cure at least 24 hours

before use. Water based latex caulking is easy to use, but very susceptible to water until it is cured. Try using a silicone or polyurethane based caulking for doing tubs, showers, toilets, sinks or other wet locations. It tends to set quickly and will repel water during its cure time. Another solution we have found works well with very busy showers is to remove all the fi xtures, including the showerhead & arm, valve handles and tub spout, before caulking. (A bit extreme, but effective) We then plug the showerhead and tub spout with a capped pipe. Then caulk the tub/shower. We come back 24 hours later and reinstall all the fi xtures. One more thought; if you have sliding shower doors for your tub, check the bottom track. If it is loose, do not caulk until the track is removed, cleaned and dried. Reinstall the track with new adhesive caulk to hold it down and caulk the edges to keep the water out. Bio: Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultation Frankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075 Certified Renovation Company www.BuffaloMaintenance.com www.ContactJLE.com www.Facebook.com/BuffaloMaintenance

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Rental Housing Journal Valley · January 2016

Rental Housing Journal Valley

DIY Landlord

Desire to Buy Strong...continued from page 4

...continued from page 1

For example, Real Property Management research indicates that the typical DIY landlord earns an average annual income of $100,000. Assuming a 2,000 hour work year (50 weeks times 40 hours per week), the value of their time is $50 per hour. According to other research by the company, an average DIY landlord spends 49 hours per year for leasing and managing. With this time commitment, the value of the landlord’s time per rental is $2,450*. The cost of professional property management is significantly less. Although property management fees vary across the country, a professional property manager typically charges 50 percent of one month’s rent for leasing a vacancy, and 10 percent per month for managing the property. For a $1,000 per month rental property, the cost would be $500 for leasing plus $1,200 per year for property management fee, totaling $1,700. This cost does not take into account the fact that property management fees are tax deductible, so the actual out-ofpocket expense is less. Do-it-yourself landlords can avoid the cost, hassle and liability associated with managing a property by outsourcing the responsibilities and pain points associated with property management to a professional property manager. Property management professionals have the resources and knowledge to perform thorough background checks on prospective tenants, document move-in and move-out condition of a rental, and they understand the Fair Housing Act and other landlord-tenant laws – all jobs in which costs can significantly add up. The Real Property Management research found that less than one third of self-managing landlords spend adequate time on every step of the leasing process, and skimp on things like credit history, criminal background checks and move-in documents. Many do not conduct criminal background checks or

contact previous landlords for references, which increases the risk of renting to an unqualified tenant. Some also fail to conduct a true competitive analysis of competitive rental rates, creating risk of over-pricing a rental and losing income because of long vacancy periods, or underpricing the property which reduces long-term revenue from the property. Other shortcuts frequently taken by DIY landlords include responsible rent collection and in-property inspections. This hurts cash flow, increases the risk of lost rental income and eviction, and allows tenants to fly under the radar with lease violations like unauthorized tenants, pets, or damage to the property. Whether it’s a carefully considered investment or an ‘accidental landlord,’ not all DIY landlords realize the significant cost and demanding lifestyle required as a property owner. The monetary costs may be easy to calculate, but what about the value of the hours and days spent on other management tasks? A professional property manager typically saves money for the investor, and can sometimes be the very lifeblood for success and profit as a property owner.

thermore, of those who thought it was a good time to buy, 64 percent felt strongly about buying. Among current owners, 61 percent believe it is a good time to sell a home, of which 53 percent felt strongly that it was a good time to sell. According to the survey, roughly two-thirds (65 percent) think it would be very or somewhat difficult to obtain a mortgage. Furthermore, there are differences among income brackets. Renter households making between $30,000 and $40,000 were the most likely to be declined a mortgage (10 percent), while 51 percent of those who make more than $50,000 a year have not tried but feel confident they would succeed in getting a mortgage. Overall, five percent of renters have recently tried and failed to obtain financing for a home. By nearly double the amount of other responses, the most common reason homeowners purchased a home was for lifestyle changes such as getting married, starting a family or retiring (35 percent). Eighteen percent said the desire to settle down in one location influenced their decision to buy, and 15 percent cited an improvement in their financial situation.

*The amount of time can be significantly higher for older homes with more maintenance needs, or properties that require updating before leasing.

Direction of home prices, financial outlook on the rise Reflecting the ongoing recovery of home values throughout most of the country, 89 percent of respondents said home prices in their communities have either risen or stayed the same in the past year. Looking ahead toward the next six months, 91 percent of respondents believe home prices in their community will increase or stay the same.

Authored by: Robert Pifke, Chief Marketing Officer for Property Management Business Solutions, LLC, the franchiser of Real Property Management. About Real Property Management Real Property Management is a franchise organization owned by Property Management Business Solutions, LLC, a privately held corporation based in Utah. With over 25 years of industry expertise, Real Property Management offices provide full-service residential property management for thousands of investors and rental home owners from more than 260 independently owned and operated locations throughout the United States and Canada.

Advertise in Rental Housing Journal Valley Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

The HOME survey also calculates a monthly Personal Financial Outlook Index3 measured by household type, age, income and type of location. Since tracking began in March, the index representing all households has slowly trended upward to its highest current reading in December – reflecting stronger confidence that respondents’ financial situation will be better in six months. Currently, renters, younger households and those living in urban areas are more optimistic about their future financial situation. “Young adults, who make up the majority of all renter households, are typically more optimistic about their future,” adds Yun. “As more of them settle down and begin plans to start a family, the allure of owning their own home as well as the long-term financial stability homeownership provides will drive their emergence into the housing market. However, the extent to how fast this occurs will greatly depend on more entry-level housing supply coming onto the market and needed improvements in affordability conditions.”

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