apartment, landlord, property management, real estate

Tenant’s Buying Homes

As a property manager, people ask me often “why do people rent if they can afford to buy?”.  I also get asked during different economic cycles if we are gaining vacancies from tenants buying a home.

1st question – People rent for many reasons.  On the higher income scale it is usually because they are in transition.  On the lower income scale it is out of necessity.  There will always be a need for rental properties but the demands change over time.  Right now our communities need low income properties built.  There is definitely a shortage in that area.  We get numerous calls for Section 8 subsidized housing every day.  Private landlords don’t want that business right now because the high end has been so strong.

That may be changing.  Recently I am seeing more tenants buy than I usually do.  I’m losing my high end tenants and I’m not replacing them as quickly as I did over the past ten years.  Part of that is because lending has gotten easier again.  Interest rates are low and people are working.  People who were hurt in the last recession are beginning to bounce back.

Will this lead to higher vacancy rates?  It’s too early to tell.  Right now I can’t tell if it is a seasonal slow down or if overall leasing demand is cooling.  The bigger overall question is who will pick up the needed shortage on the low end.100_1641

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apartment, landlord, property management, real estate

Move out pictures

A picture is worth 1,000 words.  In the old days it was difficult to manage move in and move out pictures.  Polaroids, negatives, storing, organizing.  It took a lot of time, money and storage space.

Today there is no excuse.  Take a lot of move in pics and move out pics.  And be ready to defend your charges.  And be ready for nasty reviews on the internet…..”I left this cleaner than it was when I moved in and they kept my whole security deposit!”

I thought this would be a bigger issue with low income rentals.  High end rentals can be worse because the tenants will use greater effort to clear their record, credit and security charges.  The pics below are two recent move outs in $2,000 a month units.  They certainly aren’t the worst I could find but they show a little bit of what we encounter daily.  The second house cost $850 to clean and the tenant blasted me on Google for ripping him off.

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