HOT & RELEVANT TOPICS
PIHI Report Details Financial Benefits of Being Pet-Friendly
Apartment residents in pet-friendly housing stay in their homes 21% longer than those living in communities that don’t allow pets. That’s one of the major findings of a new report from the Pet-Inclusive Housing Initiative. Among the other notable data points: 83% of owners and operators say that pet-friendly vacant units are filled more quickly than homes that don’t allow pets. The report also recommends a range of policy changes operators can implement to attract pet-loving renters, such as offering a free month of pet rent or waiving pet deposits.
Financial Amenities Benefit Both Residents and Operators
Onsite amenities like fitness centers, pools and outdoor grilling areas may be great ways to attract prospects. But a growing number of operators are realizing that by offering financial amenities, they can make a positive, long-term impact in residents’ lives while simultaneously boosting the performance of their portfolios. From flexible payment options and budgeting tools to credit building, financial amenities help support on-time, in-full payments and boost resident morale. These amenities provide a huge benefit to owner/operators as well by proactively reducing delinquencies.
Corporate Eviction Management Creates More Effective Process
Onsite team members were hired for their ability to turn prospects into residents as well as their ability to serve the needs of a community’s current residents. They were not hired to handle evictions, and many of them are simply not equipped to do so. Many forward-thinking operators have realized the benefits of handling evictions at the corporate level or through third-party delinquency management services. The benefits include visibility into the evictions process, standardization of evictions and not having to place your onsite associates into tension-filled, adversarial situations with residents.
IN THE NEWS
Apartment Completions Reach 20-Year High
During the second half of last year and the first six months of 2021, roughly 363,000 new apartment homes were delivered in the U.S., according to a Marcus & Millichap report. The company says that’s the largest total for any 12-month period in at least two decades. Dallas-Fort Worth; Houston; Austin, Texas; Atlanta; Charlotte, N.C.; and Phoenix were among the metros with the most completions in the timeframe.
Investors Continue to Seek Build-to-Rent Opportunities
Weary of the heavy competition for the acquisition of existing single-family rental properties and the unsatisfactory yields produced by such properties, investors are starting to place more of their dollars in the development of large-scale build-to-rent communities. “Not only do we risk crowding out potential homebuyers, we also feel that the investment returns in acquiring existing homes have compressed significantly,” Robert Sun, an investment product strategist with GTIS Partners, a global real estate investment firm, recently told Wealth Management Real Estate. “That was a key reason why we pivoted our strategy to BTR, where we are building new housing supply for renters and where the development yields remain very attractive relative to acquiring existing homes.”
The Growing Role of Life Insurance Companies in Multifamily Finance
Fannie Mae and Freddie Mac may still be the dominant players in the multifamily lending landscape, but apartment firms and investors should not overlook life insurance companies as a capital source. Among the benefits of working with life insurance companies: they “are less programmatic than the agencies,” writes Mark Perkowski. “Borrowers can secure competitive loan terms regardless of loan size, geographic location or even occupancy level.”