How Pets Can Drive Revenue

The benefits of having pets on property are extensive, from happier residents and increased social opportunities to providing a generally more attractive place to live. Allowing pets can serve as a boost to the revenue stream as well.

To be clear, if the primary reason you’re allowing pets is because you see dollar signs, you’re probably doing it for the wrong reasons. But an uptick in revenue can be a positive consequence of a noble, forward-thinking approach to pets.

Here are some of the ways a responsible pet policy can have a helpful impact on the bottom line:

Nonrefundable Pet Fee and Pet Rent

The most obvious forms of pet-driven revenue often consist of an upfront nonrefundable pet fee and monthly pet rent. Most communities charge either one or the other. It’s our recommendation to charge a reasonable range here based on the risk you are undertaking. A puppy, for example, should yield slightly higher pet fees and rents because of the obvious risk any puppy presents. Of course, it’s wise to avoid any potentially off-putting exorbitant pricing for either. Most pet-owning residents are happy to pay a reasonable fee in exchange for having their pet or pets live with them. These fees can help properties offset any potential damages and give an ancillary boost to the revenue stream.

Wider Pool of Residents

Pet-friendly communities have more potential residents to choose from, because pet-owning renters have become increasingly diligent about finding living destinations in which their furry friends will be welcome and happy. With approximately 70% of households owning pets, according to numerous studies, this is a sizable demographic. Simply allowing pets, however, isn’t enough to sway these discerning renters. When envisioning a space in which their pets will thrive, they will research your pet amenities, pet limits, and overarching pet policies. Properties that create truly welcoming and supportive environments for pet owners will have the best chance at attracting these residents.

Longer Stays

It’s no myth that residents will move if their pets are uncomfortable. According to the Pet-Inclusive Housing Initiative Report, residents in pet-friendly housing stay an average of 21% longer than those in non-pet-friendly housing. Pet-friendliness works as its own resident-retention tool, as happy pet owners are much more likely to renew their leases. A shining example in recent years was provided by Atlanta-based The Management Group (TMG), which experienced an unprecedented 80% renewal rate among pet owners after revamping its pet policies. In fairness, TMG helped reach this high rate by eliminating pet fees of any sort. The idea was that keeping residents in the building provided much more of a net operating income boost than constantly turning homes. While 80% retention might be ambitious, a forward-thinking, pet-friendly approach has the potential to significantly increase renewal rates.

Partnerships With Local Pet Services

Teaming with local pet service providers can create benefits for everyone—the resident, the provider, and the property. Partnering with a local veterinarian, dog walker, groomer, or pet concierge service offers preferred providers for residents, drums up business for the pet services, and can create a possible referral revenue stream for the community. Properties have also been known to partner with adoption agencies and to host on-site events when mobile dog groomers, pet photographers, and other pet-centric vendors visit the property. More than ever, pet owners are eager to spend on various types of pet services. Data from the U.S. Bureau of Labor Statistics shows that pet spending increased 77.9% over a recent eight-year span.

While these ideas have the potential to create a revenue boost, they should primarily be rooted in providing an increasingly pet-friendly experience. Easing pet restrictions, understanding the risk profile for each pet and its owner, boosting pet limits, and effectively managing assistance animal processes will also help in this pursuit—although those are topics more extensively discussed in previous columns. In short, forward-thinking modern-day pet processes first create an amazing pet experience and, by consequence, can augment the revenue stream.

https://www.multifamilyexecutive.com/property-management/how-pets-can-drive-revenue_o

How to Find the Best Property Manager for Your Rentals

Chris Lee / October 23, 2023

Owning rental properties can be a rewarding investment, but it also comes with a host of responsibilities. Many landlords often handle these responsibilities independently and we provide information on how to do so on our website. However, there are situations where they need to hire the best property manager for more efficient and hassle-free property management.

The right property manager can make your life as a landlord much easier and your investment more profitable. A skilled property manager is well-versed in local rental markets, enabling them to set optimal rent rates, attract high-quality tenants, and reduce vacancy periods. They also provide a buffer between landlords and tenants, handling tenant issues and conflict resolution professionally.

In this article, we’ll guide you through the process of finding the best property manager for your rentals.

How Do I Find the Best Property Manager for My Rental?

Choosing the right property manager is a decision that can significantly benefit landlords in various ways. It brings peace of mind, as a competent property manager can efficiently handle the day-to-day responsibilities of property maintenance, tenant communication, and financial management. This allows landlords to enjoy a more passive income stream without the stress of constant involvement.

Here are a few steps to help you find the best property manager for your rental:

1. Find Recommendations

Start by seeking recommendations from fellow landlords, real estate agents, or online communities.

Local landlords and real estate agents possess intimate knowledge of your specific real estate market. They can direct you to property managers who understand the nuances of your area, such as rental demand, pricing trends, and legal regulations. This local expertise can be a critical factor in the success of your rental property.

Word-of-mouth referrals can be a valuable resource, as they come from firsthand experiences. For example, your neighbor might recommend a local property manager who’s known for exceptional service.

2. Evaluate What They Bring to the Table

When you’ve gathered some names, evaluate potential property managers based on their procedures, responsiveness, and communication skills.

Look for someone who not only keeps you in the loop but also maintains good relationships with tenants, applicants, and vendors. A property manager with a reputation for handling tenant issues effectively can save you headaches down the line.

3. Interview Candidates

Schedule interviews with your top candidates to get a sense of their approach and expertise. Ask about their tenant screening process, maintenance procedures, and financial reporting.

Here are some key questions to consider:

• How do you screen prospective tenants to ensure they are reliable and responsible?
• What criteria do you use to approve or reject tenant applications?
• Can you provide an example of a challenging tenant situation you’ve successfully resolved?
• How do you handle maintenance requests and emergency repairs?
• What is your process for regular property inspections and maintenance checks?
• Can you share an example of how you’ve efficiently managed a maintenance issue in the past?
• How do you keep track of financial transactions related to the property, including rent collection, expenses, and property-related income?
• What kind of financial reports do you provide to landlords, and how frequently?
• How long have you been in the property management business, and what types of properties have you managed?
• How do you handle tenant inquiries, complaints, and conflicts?
• Have you ever had to deal with a difficult tenant, and how did you resolve the situation?
• How often do you conduct property inspections, and what aspects do you assess during these inspections?

Additionally, visit some properties they currently manage to assess their upkeep and tenant satisfaction.

4. Communicate Your Expectations

Once you’ve conducted interviews and are closer to making a decision, it’s essential to review the property management agreement thoroughly. This document outlines the terms, responsibilities, and expectations between you as the landlord and the property manager.

Take this opportunity to clearly communicate your specific requirements and expectations. Discuss your rental property’s unique needs, whether it’s related to property maintenance, tenant selection, or financial reporting. Also, express your preferred communication channels, so you can stay informed and in control of your investment.

A good property manager should not only be receptive to your expectations but also willing to adapt to your preferences. An open and transparent discussion at this stage can help ensure a harmonious and productive working relationship that aligns with your objectives as a landlord.

5. Consider the Pricing

While cost is a crucial factor, it shouldn’t be the sole deciding factor. Assess the fee structure and compare it with the services offered. Sometimes, a slightly higher fee is justified if the property manager offers a comprehensive package that saves you time and effort.

Comprehensive services often include tenant screening, rent collection, property maintenance, and even legal assistance. While these packages might come at a higher price point, they can streamline your property management tasks and protect your investment in the long run.

Opting for the cheapest option without considering the scope of services can lead to issues down the road. It’s essential to evaluate what’s included in the fee structure and ensure it aligns with your property management needs.

Finding the Best Property Manager: Landlord Gurus Takeaway

Finding the best property manager for your rentals requires careful consideration and research. Don’t rush the process; the right property manager can significantly impact the success of your real estate investment.

https://landlordgurus.com/how-to-find-the-best-property-manager-for-your-rentals

Raleigh, Durham are some of the hottest housing markets in the country

ByJosh Chapin 

Wednesday, February 14, 2024 9:02PM

RALEIGH, N.C. (WTVD) — North Carolina is home to some of the hottest housing markets in the country.

US News and World Report put together a list of the top 20 markets based on buyer demand and affordability.

Raleigh is number two on the list. Durham and Chapel Hill come in number four, and Charlotte is ranked number five.

The news is promising as inflation is easing and mortgage rates are falling.

“Not only is the market holding steady in all categories but we’ve seen the luxury market thrive and do well,” said Hilary Kennedy, owner of Live Oaks Realty. “In all categories and all price points, we’re seeing movement which is nice.”

Kennedy said affordability is a big reason people are coming. She knows that term is relative but she said compared to New York, New Jersey, or California prices you can get a lot more bang for your buck.

“We’ve had an influx of people from DC, California, and from New York and Ohio,” said Kennedy.

She said she’s also seen a steady increase in people coming to the Triangle to retire.

“I’ve had a lot of clients who are looking at other metros and they’ve landed on Raleigh because of affordability and what Raleigh has to offer in general,” she said.

It also offers access to the mountains and beaches in just hours.

Realtors say in the Raleigh Durham metro, Chatham and Harnett Counties are areas seeing expansive growth right now.

Denver is the only city to beat Raleigh in the report ranking number one.

https://abc11.com/north-carolina-housing-market-raleigh-durham/14425270

Harvard’s America’s Rental Housing Report Shows Cost-Burdened Renters

By The Editors  -January 29, 2024

The Joint Center for Housing Studies of Harvard University has released their annual rental housing report and it shows a cooling rental market with many new apartments becoming available but at the high end of rents which is not helping cost-burdened renters.

“What we are building is at the high end, because of the increased cost of construction and because we have a lot of demand from higher-income renters,”  Whitney Airgood-Obrycki, a senior research associate with the center and the report’s lead author, told NPR. Most new apartments over the last decade have gone for $1,400 a month or higher, “and that’s not affordable to the majority of renters.”

“More renter households are cost burdened than ever before, and a record number of people are experiencing homelessness. Pandemic resources temporarily shored up the housing safety net, but the need for rental assistance remains greater than ever,” the report says.

Older apartments which in many cases are more affordable “require significant investment to address structural inadequacies, inaccessibility, and climate risks.

“Making these investments is challenging, given the current market environment of increasing operating expenses and high interest rates. Despite today’s difficult conditions, strong demand from the Gen Z, millennial, and baby boom generations should ensure that the rental market slowdown is short lived,” the report says.

A record number of people are also homeless

About 653,000 people reported experiencing homelessness in January of 2023, up roughly 12% from the same time a year prior and 48% from 2015.

“That marks the largest single-year increase in the country’s unhoused population on record,”  Harvard researchers said.

Rent increases outpace income gains

Harvard says the dwindling supply of low-rent apartment units is only wors­ening cost burdens.

“In 2022, just 7.2 million units had contract rents under $600—the maximum amount affordable to the 26 percent of renters with annual incomes under $24,000. This marks a loss of 2.1 million units since 2012 when adjusting for inflation. The spike in asking rents during the pandemic accelerated the trend, with more than half a million low-rent units lost just between 2019 and 2022,” the study says.

“Median rents have risen nearly continu­ously since 2001 in inflation-adjusted terms and are 21 percent higher as of 2022. Meanwhile, renters’ incomes have risen just 2 percent during the same period.”

Aging Rental Stock Will Require Reinvestment

The report says the stock of rental housing available is older than it has ever been.

“The median age was 44 years in 2021, up from 34 years two decades ago. Although building construction standards and repairs to existing units have helped to minimize the problem of structural inadequacy, a large number of rental units still fall short of baseline habitability and safety,” the report says.

A new generation is driving rental demand

The report says “millennials will remain a large source of rental demand in coming years, they are no longer fueling the growth in renter households. Rather, they are aging into prime homeownership years, a transition that markets are already witnessing.

“Instead, members of the slightly smaller but still large Gen Z, individuals born between 1995 and 2009, are driving rental demand\,” the report says.

https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_Americas_Rental_Housing_2024.pdf