Optimism in the Housing Market Leads to More Rental Homes

Home prices expected to have first yearly gain since 2006.

New single-family home sales climbed 4.4 % in November to a seasonally adjusted 377,000-unit annual rate.
Many of these homes were purchased by investors who rent them out to former homeowners who now, for whatever reason, need to rent.

U.S. consumer confidence did fall more than expected in December due to the "fiscal crisis".  Despite that, there is a growing sense of optimism about the economy.  The number of Americans filing new claims for jobless benefits fell to a nearly 4-1/2 year low. The Labor Department said initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 350,000.

“This recent improvement in the claims data is potentially a favorable signal for the labor market,” said Daniel Silver, an economist at JPMorgan in New York. With an anticipated increase in hiring due to the rebuilding campaign on the east coast in the wake of Super-Storm Sandy, there will most likely be more qualified, income-earning renters in the year ahead.

The S&P/Case-Shiller Home Price Indices

S&P/Case-Shiller Home Price Indices are the leading measures for the US to track changes in the value of residential real estate.  They are calculated monthly using a three-month moving average and published with a two month lag.  

Click to see the price indices as of December 26, 2012

Economic challenges still face owners, property managers and prospective residents, but trends are moving in our favor.

Good News for Idaho Falls Investors

Idaho Falls offers a lot of potential due to its current and expected growth:

• According to Inman Research, Idaho Falls is on the “top ten” list of small towns expecting rapid growth over the next 10 years.
• 50+ new multi-family units are under construction.
• Melaleuca is constructing a new 350,000 square foot facility plus a 6,000 acre commercial/industrial business park for future growth.
• A large manufacturing business is expanding into Ucon.
• Manufacturing jobs fuel growth due to the fact that whenever a manufacturing job is created there is a need for additional service jobs, housing, and retail.
• Vacancy rates for the area are consistently low compared to the national average.
• Value indicators in the Idaho Falls market based on 19 sales in 2012 are as follow: GRM ~ 7.7; Cap Rate ~ 8.0; Price/unit ~ $50,300; and Price/SF ~ $57.00. REO sales are down 80% for multifamily in 2012 vs 2011.

Turnover Efficiencies

Eastern Idaho Apartment Association

Owner of BMG & IF Rentals will be sharing over 10 years worth of systems and efficiencies that is sure to help any rental owner reduce turnover expenses.

 
What you will learn:

• Essential items to have in your lease
• Best practices when tenants move out
• Scheduling work and cleaning
• Effective marketing that reduces turnover
• Property condition

Clint's "open forum" style of speaking is very helpful - you are sure to have fun while decreasing your turnover expenses.

This meeting begins at 7:00 p.m. at Stockmans.  Networking takes place 30 minutes prior. 

Cold Weather Can be Costly

Dear Tenants and Property Owners,

Cold weather can be costly for tenants and property owners both.  It is important to keep your home heated and pipes warm.

If you encounter a problem with a furnace or other heating problems, please treat them as very high priority and call us immediately.  Repairs must be done as soon as possible, or an alternate source of heat must be put in place temporarily until the problem can be resolved.  These situations can incur additional expenses.

TENANTS

• Heat your home to at least 50 degrees to keep pipes warm.
• If you have pipes that are behind cupboards, you can open the cupboard to let more heat in.
• If you have places that are not staying warm enough like a basement or something, then please use additional heat, such as an electric heater.
• Expect higher heating costs.

PROPERTY OWNERS

• There is still a risk of freezing pipes even if a home is heated due to pipe location or other circumstances.
• If problems do occur, we treat these as emergencies.
• We take emergencies seriously; they will be addressed as quickly and as cost efficient as possible.

Owner of Salt Lake BMG recognized by the National Association of Residential Property Managers (NARPM)

Congratulations Chad Collins for being recognized by NARPM as a Next Generation Professional Superstar!

The Next Generation Professional group was formed to include individuals who are under 40 years old and recognize them for accomplishments to promote leadership.  Groups are formed across the nation with active members who take pride in their communities. 

Chad has held the following NARPM positions:

• Utah Chapter Founding Member
• Treasurer
• 2012 Utah Chapter President

 
As the Principal Broker / Owner at BMG Rentals Property Management in Salt Lake City, Chad leads a team that manages 500+ residential rental units. Chad and BMG Rentals Property Management participates locally in coat drives, food drives, and sponsoring youth sporting events.

Happy Holidays

More Coats for Kids 

No More Cards & Treats . . .
Thanks to the support of many, last year's coat drive was a success. This holiday season, we are going to put the resources that usually go to cards and treats towards the coat drive for local elementary kids. We appreciate your support!



It all started when a teacher was in our office paying rent on a cold day and mentioned that she couldn't believe how some kids don't have coats for winter. We thought she was talking about the crazy teenagers who just don't wear a coat, but she teaches 1st grade?? We asked for their sizes and it all grew from there. Other teachers and elementary school counselors started contacting us and we started spreading the word. The donations of coats and money kept coming in and we were able to provide over 60 coats to elementary age children last year.

Thank You For Your Business! 
We would like to thank all of our clients for their support this year. We hope you have a great holiday season and an even better new year!!!

Idaho multi-family properties may be eligible for insulation rebate

Available Multi Family Rebates for Attic Insulation (Electric Only Properties):

• Rocky Mountain Power Rebate for Electrically Cooled and Heated Property:
• R30 (12’’ fiberglass insulation) = $0.50 cents per sq ft

Pricing and Payment Information:

• Total Cost to install an R30 (12’’ fiberglass insulation) - $0.50 cents per sq ft. Assuming that a complex has been pre-qualified for the RMP Electric Rebate Incentive. The net cost after rebates to the customer is zero.
• It takes approx 6-8 weeks from the time the project is complete to the time the rebate is received. No payment is due until the rebate has been received. The Rebate incentive check will be sent direct to either your Management office or the apartment complex office and will be written in the name of the complex or the Management Company.

Key qualifiers that must be met in order to qualify for both the RMP and Questar Gas rebates:

• RMP:
• Unit must be heated using ducted Electric Furnace System (No gas Furnace)
• Pre-existing insulation level must be R19 or less
• Must be on qualified rate schedule with RMP Landlord Acct (residential rate customer)

Pre-qualification Process:

• In order to determine if an apartment complex meets the above criteria, Home Energy Solutions will need to have permission to work with the onsite apartment Manager. Once permission has been granted, a representative from Home Energy Solutions will schedule a time with the Manager to access 3-5 units depending on the size of the complex and take measurements of the existing insulation levels and pictures of both the furnace and cooling units. The only work required by the office in order to complete this process, will be to give notice to the tenants in order to access their unit. Once in the unit, the inspection process will take approx 5-10 min.
• In the event that there are vacant units or units with outside access to the attics, there will be no need to access the unit or provide notice to the tenant if vacant.
• Once we determine that a complex does meet the qualifications, we will notify RMP of our findings and a representative from RMP will then contact the office to verify our inspection results and confirm that the rebates are available.

Work Proposal (Approval to begin work):

• Once the “Work Proposal” has been signed, we can begin with the work. The basic outline of the Agreement requires that we are a licensed and insured contactor performing quality work with quality materials. It also reviews the payment details and how the utility rebates are used for payment.

Completion of Work:

• After the Work Proposal has been signed. Home Energy Solutions will work with the onsite Apartment Manager to complete the work. Home Energy Solutions will provide the apartment office with the schedule of work. The schedule will be used to give proper notice to each tenant. Other than providing notice to the tenants, no other work is required from the office. In the event that the apartment has outside access to the attic (breezeway or rooftop), we will not need to access the units and no work will be required by the office. When access to the unit is required, each apartment will take approx 30-45 min to complete depending on the size. All apartments will be left clean and in the same condition as when we entered.

Completion of Rebate Paperwork:

• All rebate paperwork will be completed and submitted to RMP by Home Energy Solutions. The only items needed to complete the paperwork from the Management or apartment office will be the following:
• A copy of the Rocky Mountain Power utility bill. This is usually called the “Landlord Tenant Agreement” account and is usually in the apartment complex or owners name. This is the account used when a unit goes vacant and needs to still have the electricity on. It will often include the commons area lighting and usually has several meters attached to it.
• Final signatures for the RMP rebate applications confirming that the work was completed.

Home Energy Solutions is licensed, insured, qualified and experienced contractor.

• We have worked extensively with Rocky Mountain Power and have insulated many large apartment complexes throughout Utah using the rebate programs to pay for the cost. We take pride in having as little impact as possible on all parties involved while completing the work in a timely and efficient manner.