Rental Real Estate Industry News – September 12, 2013
In this week’s rental industry news headlines, find out why one real estate investor is cautious in today’s housing market, and what small and medium size businesses need to know before using revenue management.
Billionaire real estate investor Sam Zell, who made out like a bandit in the past by snapping up distressed properties, is largely sitting out the current U.S. real estate rally. He says things won’t look quite so pretty for the real estate market when the Federal Reserve cuts back on its easing.
Perfecting the art and science of setting rents appropriately to fill vacant units has long been the Holy Grail for the apartment industry. Many apartment owners and managers have turned to automated revenue management systems, which use sophisticated mathematics to determine real time rents.
“Hands on” is the motto recited by landlords living in Lynn or other communities who want their buildings and tenants to be well regarded by neighbors and city officials. Landlords or management company representatives must visit buildings frequently to get a close-up and personal look at maintenance needs, tenant relationships and to spot potential problems.
The Center for Housing Policy reports that rents across the U.S. are rising faster than incomes by about $1.75 for every dollar earned, which means landlords may be reaching the peak of what they can charge for rent before forcing their tenants to look for more affordable housing.
In an effort to further lessen the government’s role in the housing market, federal officials are planning on decreasing the maximum size of loans guaranteed by Fannie Mae and Freddie Mac, according to a report by the Wall Street Journal. Though few specifics are currently available, such as how far the loan limits would fall, any proposed declines would take effect Jan. 1, 2014.