Menu
|
|
Renting: Is It The New American Dream?
|
|
Headlines
Top Story
Renting: Is It The New American Dream?
Industry News
High Vacancy Rate Doesn’t Deter Arizona Apartment Builder
Boston Rents Appear to be Rebounding
El Pasoans Learn Importance of Pool Safety
Irving Enforcing Mandatory Apt. Crime Reduction
Campus Apartments Continues to Expand Its Management Portfolio
Survey Reveals One-Third of Boomers Plan to Move in Retirement
Roommate-Finding Sites and Services Abound Post-Recession
Virginia Tech Property Management Program Marks Its 25th Anniversary
High Vacancy Rates Mean Good Deals For Charlotte Apartment Residents
New York City Doormen Ready to Hit Bricks Over Pay
Legislative/Legal News
Calpers Rule Would Limit Evictions at Investments
Card Check-Seeking Labor Unions Pressure Democrats
Measure Increases Referral Rewards to Residents
Legal Battle Among Apartment Owners Resolved in Milwaukee
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
Renting: Is It The New American Dream?
Digested From "Renting: The New American Dream?"
CNNMoney.com (04/14/10) by Paul La Monica
The housing market has experienced declining values, rising foreclosures, and volatile interest rates over the past several years, forcing Americans to rethink the way they see home ownership in this country. The era of cheap credit is over, and now people realize that owning a home is not a right, but a privilege reserved for those who have saved up enough money for a sizable down payment and a stable income to meet their monthly payments. Consequently, buyers and banks are being much more conservative when it comes to purchasing a home or providing a loan. According to Jerry Davis, senior vice president of property operations for UDR, a Denver-based apartment REIT, "Even though prices have come down, you're not seeing a big exodus of renters to buy homes, buying a house used to be the way to get rich, but people are afraid to jump back in." For the time being, he says, apartment residents are happy to avoid the risk of declining home prices until they start to feel more confident about the state of the fragile economy.
Industry News
High Vacancy Rate Doesn’t Deter Arizona Apartment Builder
Digested From "High Vacancy Rate Doesn't Deter Builder of Apartments"
Arizona Daily Star (04/19/10) by Dale Quinn
MC Companies, which owns and operates apartments in Arizona, Oklahoma, Nevada, and Texas, is set to begin on two new apartment complexes in Tucson, Arizona, by the end of the summer, even as vacancies in the multi-family housing market remain high and competition from rental homes continues. Ross McCallister, a principal with the multi-family housing developer, says the decision to build in 2010 was made because interest rates are low and construction costs are down. "There's continued demand for high-quality apartments as reflected by our occupancy," McCallister says, noting that MC Companies' complexes are running about 90 percent occupied. Vacancies in the multi-family housing market in Tucson were above 11 percent at the end of the year, the highest since 2005. To attract residents, apartment owners have offered lower rents and other concessions. McCallister says there is demand for middle-income housing where MC Companies is building its complexes. Mike Chapman, first vice president of CB Richard Ellis, says that despite the troubles of the past two years, the apartment market has proved resilient and the outlook for 2011 to 2013 is positive.
Boston Rents Appear to be Rebounding
Digested From "No Respite on Rent; Despite Housing Downturn, Hub Apartment Hunters Finding Few Deals"
Boston Globe (04/18/10) by Jenifer McKim
Despite the fact that Boston housing values have declined about 16 percent since their peak in 2005, rents have only dropped slightly, and now appear to be rebounding. Real estate brokers and property managers say prospective apartment residents looking to sign leases before the city's traditional Sept. 1 rush will find high prices and few incentives. "I don't think there any deals out there unless it is"' a last-minute special, says Leslie Morgan-Dwinell, an agent for apartmenthub.com, a rental company that specializes in Cambridge and Somerville apartments. Rents in larger Boston-area buildings have fallen about 3.7 percent since their peak in late 2008, according to new data by REIS.com. Real estate brokers say rent decreases have slowed this year, as some apartment owners have resisted slashing rent or offering prospective tenants incentives, despite the economic downturn. Rent fell only 0.2 percent in the Boston area in the first quarter of 2010, according to REIS. Despite the numbers, many local property managers say that demand is increasing as more people decide to rent rather than buy and college students and others begin their apartment search earlier this year.
El Pasoans Learn Importance of Pool Safety
Digested From "El Pasoans Learn Importance of Pool Safety"
El Paso Times (TX) (04/18/10) by Diane Arrieta
Nine El Paso, Tex., area children drowned during a six-month span of 2009, prompting the creation of The Drowning Prevention Coalition to promote water safety. The coalition, including the El Paso Apartment Association, held its April Pools Day event on April 17 at 22 at public and private swimming pools to offer education on how to prevent drowning. Participating pools offered presentations for children and parents about water safety and the need for increased awareness about preventing drowning. Wright Stanton, aquatics manager for the city Parks and Recreation Department, said the event was special because it included so many agencies as well as apartment complexes. "We had never done it on apartments before, so we've gotten more people involved," he said.
Irving Enforcing Mandatory Apt. Crime Reduction
Digested From "Irving Enforcing Mandatory Apt. Crime Reduction"
CBS-TV 11 (Dallas/Fort Worth) (04/15/10)
Irving, Texas, implemented a new mandatory crime reduction program on January 1 targeting apartments that exceed a crime threshold. For serious offenses such as assault and theft, police have set the bar at 1.77 crimes per capita for each complex. Tabitha Hester's management company firm - Pacific West Management - runs four apartment complexes in Irving, and two of them became the focus of the new ordinance. "There was some additional things we needed to do like the shrubbery, but since it helps our residents, we were happy to comply," Hester says. The Apple and Woodchase Apartments in Irving have surpassed the crime statistics threshold and are now enrolled in the mandatory program at a cost of $250 for each one. Hester says since she's joined the program, her relationship with police is stronger than ever. "It's kind of like you scratch my back, I scratch your back. Whenever we have an issue, we have this relationship with the Irving Police Department and we get full cooperation, we couldn't ask for better. Any problem we have, they take care of it immediately." Irving Police note the 16 apartment complexes in the program have begun mending fences, lighting walkways, and cutting down blind spots. Apartment owners are also required to conduct background checks on residents. "They understand that it's mandatory that they participate. We've met with very little to no resistance whatsoever" says Irving Police spokesman Sgt. Danny Webb.
Campus Apartments Continues to Expand Its Management Portfolio
Digested From "Campus Apartments Continues to Expand Its Management Portfolio"
Yahoo! Finance (04/14/10)
Campus Apartments, one of the oldest and largest privately held student housing managers in the nation, has just added Campus Housing at South Bend to its management portfolio. The property owner Gross & Cohen Real Estate Investors Ltd. selected Campus Apartments because "we have found that Campus Apartments has an advantage over traditional third-party management firms -- it brings an owner's mentality to the engagement and a unique ability to enhance the property’s value. That ability combined with their experience, staffing, reporting and operational focus on student housing assets made them a match for my performance expectations," according to company president Michael Cohen. This contract adds 466 beds to Campus Apartments' management portfolio of 5,800 beds under six different owners. According to the National Center for Education Statistics, the nation's college enrollment is expected to grow by 10 percent over the next decade, making student housing a high priority.
Survey Reveals One-Third of Boomers Plan to Move in Retirement
Digested From "Survey Reveals One-Third of Boomers Plan to Move in Retirement"
RISMedia (04/15/10)
A 2010 poll conducted by home builder Del Webb, which specializes in active adult communities, shows that America's baby boomers are still willing to relocate once they hit retirement. According to the company's 10th baby boomer survey, almost a third of the generation's older members intend to pull up stakes once they stop working. About half will move to a new city in a new state, and roughly a quarter expect to settle down in a different city in the same state. Meanwhile, fewer than 20 percent plan to relocate within their current home town. Even younger boomers expect to live out their golden years in a new place, with 42 percent of those who turn 50 this year planning to put down new roots elsewhere -- up from just 36 percent of 50-year-olds who planned to do so in 1996. Where they decide to go depends, according to Del Webb, hinges primarily on cost of living and access to preferred healthcare programs as well as on cultural and recreational amenities. The survey results identify North and South Carolina as the top choice for retirees, followed closely by traditional favorites like Florida and Arizona.
Roommate-Finding Sites and Services Abound Post-Recession
Digested From "A Good Roommate Can be Hard to Find"
Baltimore Sun (04/13/10) by Jamie Smith Hopkins
The economic recession is forcing many people to rent out rooms in their homes or to share apartments in order to split. In fact, a new study of 80 metro areas within the U.S. has found that the number of households has dipped by 1.2 million between 2005 and 2008 despite notable population growth. This, in turn, has resulted in an expansion of such roommate-finding Web sites as Roommates.com and GetARoomie.com. "We're busier than ever," said Susie Stein, owner of Roommate Finders, a Florida-based firm that matches roommates across the country. Meanwhile, face-to-face meetings modeled after speed dating events are popping up in places like London pubs and U.S. college campuses.
Virginia Tech Property Management Program Marks Its 25th Anniversary
Digested From "Residential Property Management Program Celebrates 25th Anniversary at Virginia Tech"
Virginia Tech News (04/14/10) by Jean Elliott
Property management industry leaders will be gathering at Virginia Tech on April 23-24 to celebrate the 25th anniversary of the university's residential property management option within the Department of Apparel, Housing, and Resource Management. Created in 1985, the program has since graduated about 500 students while serving as a model for other universities. It initially came out of a meeting between Virginia Tech faculty member Rosemary Carucci Goss and James F. Kelly, head of the Multifamily Division of the Virginia Housing Development Authority. Both recognized the need for well-trained individuals who could manage this particular facet of real estate. The curriculum was developed to meet the needs of an expanding industry in both luxury and affordable rental housing. Goss also helped to establish programs at universities in five other states. Graduates of the program are recognized in the industry as "individuals who have developed the technical and people skills required to meet the challenges of working in this business," reports Bill Wollinger, president of Winn Management. The celebration will include a presentation by Christopher Lee, president and CEO of CEL & Associates Inc., and a panel of alumni who will share insights on their career successes.
High Vacancy Rates Mean Good Deals For Charlotte Apartment Residents
Digested From "High Vacancy Rates Mean Good Deals For Charlotte Renters"
WSOCTV.com (NC) (04/13/10)
A two-year building spree that put over 9,000 new apartments on the market, combined with a high unemployment level as a result of the economic recession, has pushed apartment vacancy rates to nearly 13 percent across Charlotte and up to 20 percent uptown. In turn, apartment owners are having to entice residents with discounts and incentives such as TVs. "It's become a very different and very competitive market," Michael Herwig, an apartment manager at Wesley Village, said. "So you're always having to stay above that other property." Herwig is currently offering two months free rent and emphasizing the community's saltwater pool as a way to draw in potential residents. The decline in the housing market could have long-term positive effects on the rental market, however, as mounting foreclosures force more and more former homeowners to rent again. Meanwhile, the lack of new development activity has put a cap on the available apartments. For the time being, Ken Syzmanski of the Charlotte Apartment Association is urging apartment residents to take advantage of deals while they can. He states, "It will probably be a favorable situation for renters for the foreseeable future. I'd say 12 months [or] maybe 18 months."
New York City Doormen Ready to Hit Bricks Over Pay
Digested From "New York City Doormen Ready to Hit Bricks Over Pay"
New York Daily News (04/18/10) by Albor Ruiz
The four-year contract for 30,000 workers at some 3,200 apartment buildings in Manhattan, Brooklyn, Queens and Staten Island expires on April 21. If a new deal is not reached by the deadline, the workers, who include doormen, handymen, concierges, and porters, say they will walk off the job. The workers are all members of 32BJ of the Service Employees International Union, and have voted to authorize their leaders to call a strike if negotiations stall. "Nobody wants a strike, but we are committed to doing what is necessary to ensure that workers get what they need," says Kyle Bragg, the union's executive director. The workers are covered by an agreement between Local 32BJ and the Realty Advisory Board, the bargaining group that represents rental, condominium and cooperative building owners. The union and the Realty Advisory Board entered into round-the-clock negotiations on April 15 in the hopes of averting a strike. Building owners want workers to accept a reduction of their sick days - from 10 to five - and pay for 10 percent of family health insurance. In addition, the owners are proposing a two-tier pay and benefit scale, and switching from a pension plan to a 401(k). The Realty Advisory Board notes that real estate taxes have gone up, rents have been cut, and apartments have lost value.
Legislative/Legal News
Calpers Rule Would Limit Evictions at Investments
Digested From "Calpers Rule Would Limit Evictions at Investments"
Wall Street Journal (04/15/10) by Jamie Heller
California Public Employees' Retirement System (Calpers) has submitted a policy revision to its investment committee that would prevent investments in real-estate deals that have the potential to force residents out of lower-rent apartment communities for the sake of converting the properties to market-rent. The nation's largest pension fund by assets has come under increased scrutiny lately because of its involvement in deals where such conversions took place. The staff proposal explained that such investments were exposing Calpers to risks, including a damaged reputation. The California State Teachers' Retirement System (Calstrs) submitted a similar proposal to its board.
Card Check-Seeking Labor Unions Pressure Democrats
Digested From "Labor Unions Put Heat on Democrats"
Washington Times (04/15/10) by Joseph Weber
Moderate Democrats have come under attack from members of labor parties previously thought to be their allies. The AFL-CIO, which has been a mainstay of the Democratic coalition in the past, has had trouble seeing eye-to-eye with the Obama administration and centrist Democrats as highlighted in debate over healthcare, education reform, and stalled efforts to change labor laws. The AFL-CIO is targeting 20 incumbent Democrats and plan to spend more than the record $53 million spent in the 2008 election season. Top labor officials say card check is their top priority and are frustrated with the White House and the Democratic majority's inability to pass it. The labor movement's involvement in heated Democratic primaries all over the country could prove critical.
Measure Increases Referral Rewards to Residents
Digested From "Measure Increases Referral Rewards to Residents"
East Valley Tribune (AZ) (04/16/10) by Howard Fischer
In an effort to attract residents, Arizona apartment owners want to be able to pay more money to renters who provide referrals that pan out. The Arizona House and Senate have approved a measure that, if signed into law by the governor, would permit referral fees of up to $200. That is twice as much as now permitted by law. The legislation appears to be a negotiated deal between apartment owners and real estate agents. Apartment residents were previously banned from receiving fees for recruiting new residents, but in 1999 apartment owners got an exemption for finders' fees of up to $100 for six times a year. “Times have changed,” says Sen. Barbara Leff (R-Paradise Valley), who agreed to sponsor the legislation. “It's hard to fill apartment complexes,” she adds. "It's meant to be a thank-you gift. And it's meant to catch the residents' attention. $200 is a meaningful number, especially in this economy." Rep. Andy Biggs (R-Gilbert) says the legislation doesn't go far enough, and wants the restrictions repealed outright. “If what we really want is people to fill up apartments, then we probably ought to let the marketplace drive that. This is really an anti free-market bill,” he asserts. Rep. Rich Crandall (R-Mesa) supports the measure as an interim step toward deregulation, and promises to sponsor legislation next year to repeal the limits outright.
Legal Battle Among Apartment Owners Resolved in Milwaukee
Digested From "Legal Battle Among Apartment Owners Resolved"
Milwaukee Journal Sentinel (WI) (04/13/10) by Tom Daykin
Litigation involving real estate investors Daniel Katz and John Crichton and the family of Thomas Hauck -- some of Milwaukee's largest apartment owners -- has been settled, and there are plans to break up the apartments from their former partnership. Hauck, who passed away in December 2006, and Crichton formed Shoreline Real Estate Co. in 1973. They later partnered with Katz Properties Inc. Katz sought the sale of Juneau Village Tower Apartments with a series of lawsuits after Hauck died, claiming that the partnership was no longer workable. Hauck's family filed their own lawsuit, accusing Katz of unfairly squeezing them out. The settlement divides the properties between the two parties based on their respective interests. The statement said: "All parties to the closing are committed to ensuring that the transition in ownership will be smooth and comfortable for all of our tenants. We believe that the separation of ownership of the properties will serve all parties well."
|
|
|