TransUnion is reporting in a recent release that due to demand for rental units after the wave of foreclosures rental prices have actually increased.
For apartment complexes of more than 201 units, sixty four percent of property managers reported an increase over last year for apartment rent.
“Finding reliable tenants at an optimal price point is paramount for this industry. Both segments saw success with rental increases last year,” said Mike Mauseth, vice president in TransUnion’s rental screening business unit. “However, what is even better for the industry is that the majority of respondents said that they are not having problems finding residents even with the increases.”
More than two-thirds of all respondents (67%) said it is not difficult to find residents in today’s economic climate. When you break that down by market segment, 57% of large property managers are having no difficulty, compared to 69% of persons managing 200 or fewer properties. When asked to compare conditions to a year ago, 27% of large property managers said it was more difficult to find qualified renters, while only 18% of small property managers held this same opinion.
Despite improved conditions in the rental market, the far majority of both small and large property managers continue to be concerned about attracting profitable/reliable residents for the remainder of 2011. Nearly 65% of all respondents said they are concerned or very concerned with only 35% stating they are not concerned.
Nearly half of property managers (47%) are seeing an increase in applicants moving to rental units from foreclosed properties.
More than 89% of survey respondents had 10% or less vacancy rates. Nearly two-thirds of small property managers and 11% of large property managers had no vacancies. Almost half of large property managers had 1-5% vacancy rates.
Nearly 21% of respondents said vacancy was lower than the same period one year ago; 14% said it was higher while 66% said it was about the same.
Almost 24% of respondents believe they will have less vacancy next year while 8% thought it would be higher. Approximately 68% said it would be about the same.
More than 87% of respondents conduct credit checks on all of their applicants. The breakdown between large (90%) and small (87%) property managers is very similar.
Approximately 76% of respondents conduct criminal background checks on 100% of applicants. However, there is a more pronounced disparity in the percentage of large (90%) and small (74%) property managers conducting criminal background checks on all prospective tenants. – SourceApartment Rents Rising Due to Demand From Foreclosures by Steve Rhode