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.