Real Property Management Predicts Positive Outlook for Landlords in 2016
Leading Property Management Franchise Analyzes Year Ahead for Rental Property Investors
January 19, 2016 // Franchising.com // SALT LAKE CITY – Real Property Management, the nation’s leading property management organization, expects a positive year for landlords and property investors expecting to buy and hold single-family rental units. The organization analyzed a variety of market conditions that could affect the health of the rental industry through 2016.
“We know that many consumers – including families, millennials and boomers – still view renting homes as not only more financially appropriate, but more conducive to their desire for a flexible lifestyle,” said Bob Pifke, CMO of Property Management Business Solutions, LLC. “The market conditions that have made single-family home investments attractive will continue, and while 2016 may not be dazzling, it should not disappoint.”
The Real Property Management organization identified the following trends and expectations for investors in the coming year:
- Profitable rental properties will shrink for investors – Markets that contained distressed housing have largely recovered: new and existing supply of homes is down to 5.7 months, and the supply of single family homes is down to 5.2 months – both the lowest rates the industry has seen in years. Foreclosures have also dropped to 470,000, a 24.3 percent decline since last year, according to CoreLogic.
- Household formation will rise –A significant share of new households will be rentals because of increased preferences for flexibility and demonstrated unwillingness to purchase a home, especially among Millennials.
- Market conditions to get tighter – Vacancy rates were 5.12 percent for a 3-bedroom single family home through the fourth quarter of 2015, a glaring difference from 10.7 percent in 2009. In 2016, vacancy rates will start to stabilize, but may continue to decline slightly as rental supply works to meet demand, putting added pressure on rental rates.
- Rental rates outpace inflation – Investors will benefit from improving economic conditions including stable employment rates, flat wage growth, and higher interest rates. The dip in the number of Americans owning homes translates to an increase in demand for rental homes, which is a promising point for investors. The average rental rate for a 3-bedroom single family home in the United States was $1,353 in December 2015, up 3.1 percent year-over-year according to RentRange.
Further demonstrating the strength of the home rental market, the Real Property Management brand added thousands of new properties nationwide last year as landlords sought the company’s help in overseeing the day-to-day management of their investment properties.
The Real Property Management brand is the leading property management franchise in the nation with more than 270 offices in 44 states. The company specializes in managing single-family homes, townhomes, condos, multiplexes and small apartment buildings. Its services include finding and screening tenants, completing the lease agreements, collecting rent, arranging for any necessary repairs, and processing evictions when necessary. Real Property Management offices also manage the legal compliance for local, state and federal real estate law.
About Real Property Management
Real Property Management is a franchise organization owned by Property Management Business Solutions, LLC, a privately held corporation based in Utah. With over 25 years of industry expertise, Real Property Management offices provide full-service residential property management for thousands of investors and rental home owners from more than 270 independently owned and operated locations throughout the United States and Canada. For more information about Real Property Management, property management services or franchising opportunities, visit http://www.realpropertymgt.com/ or www.propertymanagementfranchise.com/.
SOURCE Real Property Management
Fishman Public Relations
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