Generation Y – has decided not to buy – they have chosen to move back home (boomerang kids) they have chosen to rack up student debt to ridiculous levels (Sallie Mae) and can no longer qualify to buy a home. This has pushed many investors to reconsider the value of rental properties. For those investors who are tired of the stock market ups and downs real estate in San Antonio is providing a stable and reliable income source. Many of these Gen Y kiddos are forced into the roomate situations, since they may not qualify on their own. This is heaven for investors who can charge a surcharge for unrelated roomates and protect against risk by employing co-signers along with double or triple amounts of deposits.
The CEO of the nation’s largest publicly-traded residential apartment REIT, Equity Residential (NYSE:EQR) stated emphatically that more people than ever will choose to rent rather than own a residence.
When one factors in property taxes, insurance and maintenance to the monthly mortgage expense it’s easy to see that renting is still the more affordable option. Neithercutt pointed out that the “Millennial Generation” wants to live in areas where the cost of housing it too expensive to buy.
“There are 4 million people turning 21-years old every year in this country…there will be 1.3 to 1.4 million households being formed every year and institutional grade; core multi-family [rental housing] will attract a significant percentage of them.” The CEO of Equity Residential also said that 43% of the units they own and manage are occupied by single individuals. “They have no intention of moving to the suburbs and buying a single-family home.”
Millions of renters under the age of 35 are choosing to live in the city and can only afford to rent. They’re getting married later in life and moving to the suburbs later as well. Demographics is the key to why the number of adults who chose to rent a residence will continue to grow. – Article by Propertymanger.com
I have met many landlords who are Ostrich’s during the tenant occupancy. What I mean is they do not do periodic inspections of their property. As a property manager periodic inspections are critical to the successful management of rental property. Just in the last month we found roof leak, an unauthorized occupant, siding missing due to pet damage and a property that had a fence in the horizontal position. While we expect our tenant to report maintenance issues as they occur they don’t always do it. If you want to maintain the property and hold the tenants accountable for the presentation and preservation of the property periodic inspections are a MUST! Don’t be an Ostrich, inspect the properties during tenancy.
I often get asked when marginal applications are submitted for rental houses if the owners can wait and/or delay approving until they see if a better application gets submitted… the answer is maybe! The time frame for applications is 7 days from when they are submitted, if they are not approved or declined within 7 days they automatically become declined. The application fees are non-refundable but any deposits that have been submitted must be refunded upon application denial.
Our Texas legislature changed the rules for all LANDLORDS, not just those properties manged by professionals. House Bill 1168 officially changed the requirements of all leased properties from requiring smoke detectors to smoke alarms. This change also included a location addition for smoke alarms to be placed into every bedroom, in each hallway that services multiple bedrooms and on each level of a dwelling. This change is required to be implemented by Jan 1, 2013 and can not be waived by landlords.