Rental property is up 2.8% over prior year and up 14.2% over a 5 year period.
With sales down in most regions and an influx of rental properties, the typical tenant screening process is no longer enough to meet demand. In order to stay competitive in an ever expanding market, one has to go with the flow and find new and innovative ways to increase productivity in order to meet demand. Nearly every enviable market is projected to see an increase in rental activity in the coming months and many property managers are turning to one stop tenant screening services.
These services provide immediate access to rental history, credit scores, nationwide criminal records searches, bankruptcies, medical collections and employment summaries. In a series of short steps, the website affords landlords or property managers the chance to effortlessly access important information about possible tenants for their rental properties.
Consumer optimism is projected to surge in 2014 with the recession fading into the distance ever so slightly. However, there are still many obstacles for would be homeowners that could put a hold on those picket fenced desires.
58% of adults aged 18-34 find saving for a down payment on a home to be nearly impossible; 33% have poor credit history and because of these factors they will be unable to qualify for a mortgage. This leaves the rental field open for these would be home buyers and for property managers to be inundated with prospective renters.
With credit standards loosening many single-family renters may see the opportunity to become home owners again. This trend could lead to fewer homeowners being foreclosed on in the future and thus the cooling of single-family home rentals. The trends show that multifamily homes make up an unusually high share of new construction.
These Multifamily homes will be the first stop for many 18-34 year olds who have been able to locate steady work and are ready to move on from their parent’s house.
This shift shows more demand for multifamily home rentals with the demographic opting to start their lives and raise their families as renters. Ironically, this shift is both good and bad for the housing market: good, because the uptick in multifamily housing construction is a sign of housing recovery; bad, because the rate of homeownership is projected to decline in the coming years.
Many markets have been saturated with foreclosed properties and have been over-valued from the start.
Though these places may not be ideal markets for ownership, they are rife with possibility for property management and renters alike.