HOT & RELEVANT TOPICS

More Than 80% of Households Made November Rent Payment

According to the National Multifamily Housing Council, 80.4% of rental households made a full or partial rent payment during the first six days of November. The figure represents a decrease of 1.1 percentage points from the same timeframe in 2019, but a 1 percentage point increase from the first week of October 2020. “November’s opening rent payment figures show that the additional support apartment residents received over the summer, coupled with generous, innovative approaches put into place by property owners and managers, continue to provide renters with some degree of security against the economic distress facing communities throughout the country,” NMHC President Doug Bibby said in a statement.

Read Holly Dutton’s article in Multi-Housing News

Meeting Budgetary Goals Through Ancillary Revenue

With the pandemic raging, apartment operators have seen their revenues take a serious hit. Many property managers have frozen renewal increases, waived a variety of fees and implemented concessions to sign new residents. But through ancillary income from pet amenities, convenience-based premiums and rentable items like garages, they can recover a significant portion of their lost income. “We’ve had to be proactive and adapt to keep the revenue where we need it,” said Crystal Martin, Director of Multifamily Operations for Leon Capital Group. “A lot of staying on pace for your revenue goals is based on how quickly your team is able to adapt and shift by utilizing tech tools and taking advantage of your existing resources.”

Read the story by Samantha Chalmers and Paul Willis in Multifamily Executive

Using Preventative Maintenance to Prepare for the Holidays

Thanksgiving is fast approaching. And that means apartment operators could soon be getting frantic calls from residents about clogged sinks and broken ovens. So now is the time to engage in a little preventative maintenance. Have your maintenance techs check all the kitchen sinks, stove tops and ovens in your community before Turkey Day arrives. Examine all your main plumbing lines as well. And send a message to your residents outlining the proper use of garbage disposals. 

Read the blog by Jerry L’Ecuyer and Frank Alvarez on the NAA’s website

IN THE NEWS

Many Young Renters Moving Back in With Mom and Dad

In September, according to a new Marcus & Millichap report, 25 million young adults were living at home. The figure was a good deal higher than the prior four-year average, and the number is poised to remain elevated as long as the pandemic-caused recession continues. Relatedly, the vacancy rate in core markets has increased 170 basis points to 5.8%, the highest mark since 2000, according to Marcus & Millichap.

Read Kelsi Maree Borland’s story in GlobeSt

Biden Victory Puts Trump Plans for Fannie, Freddie at Risk

The Trump Administration’s plan to release Fannie Mae and Freddie Mac from government control could be in jeopardy after the election of Joe Biden. During the 2008 financial crisis, the federal government took over the two mortgage giants and infused them with about $187 billion in bailout money. In exchange, the government received warrants to acquire nearly 80% of the companies’ shares. Under Trump, the Treasury Department and the Federal Housing Finance Agency have pursued a plan to re-privatize the government-sponsored enterprises. But Biden’s upcoming inauguration may not leave the Administration with enough time to achieve the goal.

Read Joe Light’s story in Bloomberg

Pandemic Hampers Apartment Construction

The economic environment caused by the pandemic is slowing multifamily construction, according to a survey by the National Multifamily Housing Council in October. According to the report, 57% of respondents reported construction delays in the jurisdictions where they operate. Among the reported reasons for the delays: waits for permitting, entitlement and professional services (67% of respondents); economic uncertainty (58%); and the availability of construction financing (46%).

Read Christine Serlin’s article in Multifamily Executive