In 2015 a higher number of multi-family rental properties will hit the market and rents will increase slightly slower than previous years. In general, good news for rental property owners. But with an ever changing rental environment the need for solid, long-term renters will remain an absolute and landlords need to thoroughly screen perspective tenants in order to secure those long-term residents.
According to recent reports the rental market will continue to grow in 2015.
From a recent report on CPExecutive.com discussing market trends in the rental market:
Rent growth at multi-family properties across the United States in 2015 is expected to increase 4.5 percent for Class A and B+ assets and 5.1 percent for Class B and C assets, with some technology-heavy Western markets seeing spikes as high as 9 percent. (1)
New building of multi-family properties began during the tail-end of 2014.
From Forbes.com (Nov 19, 14):
… the numbers show that builders are placing their energy in multi-family housing. While permits issued for single-family homes rose by just 1.4% (to a seasonally adjusted annual rate of 640,000) in October, permitting for buildings with five or more units jumped 8% above September’s level (to 406,000 in October). (2)
An additional impact on the rental market includes a return to long-term investing of housing purchases. In previous years much of the investment was based on short-term flipping strategies. In 2015 this is predicted to change to a longer view and investment in housing and, subsequently, renters.
From USANews.com (Jan 01, 15):
Auction.com, the largest online real estate marketplace, recently released survey data collected from investors bidding on properties across the country, which confirmed that buying property to hold and rent is currently favored over flipping nationwide. (3)
Ultimately the goal of any proper landlord and/or property manager is to gain and maintain as many long-term renters as possible. Long-term renters provide predictable income and a solid reputation for a property (a critical component in attracting long-term renters).
Profit is an obvious objective of a rental property. As rents increase it may appear even more obvious, especially in areas where availability is tight and competition for rental units occurs. Yet environments such as these demand the same scrutiny of potential renters as a flat or retreating market. In a decreasing rental market, properties can remain empty or require incentives for new tenants. In an increasing rental market, properties can churn if renters are not thoroughly vetted and fail to maintain the demands of a rental agreement, or suddenly move due to more favorable rental conditions.
Landlords and property managers must thoroughly vet potential renters regardless of rental market movement.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Landlords thorough tenant background checks, regardless of market, will continue to find success in obtaining long term renters. After all the demands of the investment require long-term renters that provide a predictable income. This fact remains true in both a long and short market.”
Tenant screening offers landlords and property managers the information required in order to make a well informed decision about a potential tenant. Tenant screening provides information on:
- The ability to financially fulfill a rental agreement through the review of consumer credit reports.
- The ability to maintain a safe living environment through the review of criminal histories and sex offender registries.
- The ability to maintain a solid reputation of property through the review of eviction reports.
Almeida states: “Reviewing information commonly found in tenant screening reports will help a landlord or property manager make an informed decision about potential tenants and, subsequently, acquire long-term tenants, regardless of market conditions.”
TenantScreeningUSA.com is a third-party tenant screening company with an experienced staff highly trained in all aspects of tenant screening, including laws and regulations governing the use of public records. With programs designed specifically for first-time and/or small unit landlords and property managers, TenantScreeningUSA.com can provide all the tenant screening tools required for a successful and enjoyable experience.
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