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What Homebuilder Confidence Increases Mean for Multifamily Property Owners

Homebuilder Confidence

Following the 2016 presidential election, homebuilder confidence hit its highest mark since 2005. Ending the year at a rating of 70, the National Association of Home Builders statistic portends moderating rental rates for 2017.

Why does high builder confidence affect rents? When prospective tenants have lots of more affordable housing options on the real estate market, they’ll build or buy instead of rent. In the face of record rent increases in 2016, that’s not to say that rates will decrease next year. It’s just worth noting that increases in the coming months won’t be nearly as dramatic as they have been recently.

Property owners have an opportunity to tweak their marketing efforts to emphasize unique selling points for their properties. Highlight the value of rent at your property, rather than trying to adjust rates to compete. Focus on keeping your current tenants happy, since replacing a renter is the most expensive proposition for multifamily property managers.

The NAHB study forecasts continued confidence boosts in the next six months, including moderately increasing buyer traffic all over the continental U.S. That means it’s time for apartment owners to prep their teams for increased efforts to get new leases as multifamily prepares for leaner times ahead.

Ready to get us on your side? Contact Class A Management today. Call us at 817-284-1411 or send an email to info@classamgmt.com.

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How to Raise Rent

Steady economic recovery means rental rates are continuing to climb nationwide. Combined with sustained high occupancy rates, that means the rent is going up. That’s cause for both celebration, and a sensitive approach on the management side.

No renter enjoys paying more each month without additional benefits. Renters do understand inflation and the increasing cost of living, however, so just a few extra steps on your part can help ease the burden of higher rent.

1. Provide reasons.

Research the current inflation rate, and know what your competitors are charging. Emphasize your property’s unique selling points and their added value. If those amenities are new or the cost of their maintenance is increasing, share that with your renters. Give them some ownership of that extra cost, and help them translate it into extra value instead.

2. Communicate directly.

A formal letter explaining your reasons for the rent increase is a show of extra effort on your part. That conveys your respect for tenants’ hard-earned money. Provide a few ways tenants can contact you to voice any concerns they may have about the rent increase. This shows that you understand they may have concerns, and it will help them be more receptive to your reasons if you’re willing to listen to them.

3. Allow an adjustment period.

Give tenants a month’s notice, at the very least, when their rent will be increasing. It’s far less thoughtful to wait until their lease is due for renewal. Everyone needs time to adjust to change.

4. Provide enticements for great tenants.

We never want to alienate great, long-term renters. Consider lower rent increases for existing tenants than for new leases. Or, offer complimentary access to special parking or other amenities. If you’ll be making aesthetic upgrades, start with those renters you most want to keep happy.

Communicate strategically and openly with tenants, and you’ll find that the respect you show translates into loyal renters who won’t mind the occasional rate increase for such a valuable rental property.

How do you raise the rent?

With our help. Contact Class A Management today at 817-284-1411 or by email to info@classamgmt.com.

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How Online Videos Can Increase Occupancy Rate

Video tours of your rental property are highly undervalued. They’re the workhorse of around-the-clock marketing plans that can create buzz about your property and make it the hottest place to live in your town. Don’t have any videos of your property doing all the work for you? Here’s why that’s a mistake:

  1. Visual appeal. A bulleted list of amenities can appeal to some rental property shoppers, but a video tour or simple slide show is far more persuasive. If a picture is worth a thousand words, a video adds much more value to someone who is able to see inside their new home.
  2. Timely. Prospective tenants can get a lot of information in a three-minute video tour than they can reading through a lengthy list of amenities. Their eyes can see details that your words might not describe as well, and it’s a quick way to give them all the information they need about your property while respecting the value of their time.
  3. Searchable. Search engines love videos, so if you’re not using video tours of your properties, you’re missing out on a whole lot of exposure. Link to your videos from articles, social media posts, and a YouTube channel to cast the widest possible net for new renters. It’s important to promote your videos properly to maximize your audience.

Videos are popular online because they’re engaging and convey a lot of information. They’re a real estate sales tool that works, and they work just the same for rental properties. Nine out of 10 prospective renters search multiple websites when looking for a new home. If your property’s video shows up near the top of all their searches, that keeps your property top-of-mind and keeps occupancy rates high.

Learn more! Contact us today at 817-284-1411 or via email at info@classamgmt.com.

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Do You Need a Roommate?

So, you graduated college and got a job. The next logical step in the process might seem like moving into an apartment or rental home on your own; but hold the phone. The cost of living is rising and that means tougher times ahead for individuals who are or want to be living on their own.

The following infographic, designed by Condo Move, takes a deep dive into the rental living situation on a worldwide basis. Do you need a roommate? This is designed to help you figure that out:

roommate1

 

Class A Management manages a number of affordable, well-maintained and operated multifamily properties across Texas and in areas of Oklahoma and Kansas. Take a look at our properties for updated information and to view contact details. Have a question or concern? Contact a management professional at 817-284-1411 or by email to: info@classamgmt.com.

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How to Winterize Your Property

How To Winterize Your Property, Street Light

Winter is the favorite time of the year for most of us. The excitement of Christmas and New Year is in the air but not knowing how to winterize your property could get you in trouble. Here are a few ways to do so:
1. Exterior pipes
The responsibility to keep the exterior pipes insulated becomes high-priority during the winter season. Completing this task can help you prevent any unwanted pipe breakage.
2. Shut the windows
Pull any storm windows down. This will build yourself that extra layer of protection. Remove the screen outside of all windows.
3. Maintain cleanliness
Remove debris by cleaning ledges, chimneys and exhaust systems.
4. Quick fix:
If the bottom of the doors are left with gaps then the chance of heat being lost increases. A plastic “door sweep” or a towel kept along the bottom of the door will be a simple and an easy solution to keep the warmth intact indoors.
5. Curtains:
A set of beautiful curtains will not only bring a refreshing feel to the place but it will also help in keeping the place warm.
6. Change filters:
To maintain efficiency, change all the filters and get the mechanical systems checked.
7. Turn the direction of your fan:
When you turn the direction of the ceiling fan clockwise, the heat is forced to stay in the lower direction.
8. Air conditioning window units:
If any air conditioning window units are not installed correctly, properly insulate them or simply remove them for a season.
Making yourself ready for the winter will help you and your family enjoy the holiday season blissfully.