December 10th, 2010
A rule is being proposed in San Francisco, California which is expected to impact developers of properties under rental property listings. According to local reports, city officials have formulated a law that will get apartment developers to finance affordable housing efforts in the area.
The legislation is scheduled to be approved by the Board of Supervisors by next week. It states that apartment developers who have properties benefitting from tax breaks and zoning changes will be required to rent out part of their apartment buildings at affordable rates. In the old ordinance, all apartment developers and owners, regardless of whether they benefit or not from government efforts are given the choice of either renting part of their properties at affordable charges or paying a certain amount of fee.
The old ordinance was deemed in violation of state laws by an appellate court. According to the court, the ordinance is against legislation aimed at protecting the rights of apartment owners and developers of rental property listings to establish rental rates for their own properties. The court further added that only apartment projects that get public benefits can be required to follow the ordinance.
The appellate court's ruling was upheld statewide, but this has not stopped jurisdictions from trying to find a way to get apartment developers to provide affordable housing rates to city tenants without violating the statewide rule. The latest proposal is reportedly part of local officials' efforts to get apartment owners to do their share in providing affordable housing units to city dwellers.
According to the proponents of the new legislation, the proposal will affect but a few projects since majority of apartments benefit from public aid, either through tax exempted bonds and tax credits or through zoning changes. Law experts have stated that the new rule can withstand any legal challenge and is likely to be upheld in most areas of San Francisco.
They further added that the rule will hold at any court if it can demonstrate that rental property listings developments have some adverse effects on the housing market of a particular community. They also stated that the generic nature of the proposal will make it hard for challengers to win their case.
November 12th, 2010
The rate of home ownership in the U.S. is at its lowest level in over a decade, giving more opportunities to rental property businesses and landlords all around the country. According to housing market analysts, the decline in home ownership is largely due to the continuous rise in the number of foreclosures and the declining demand for residential properties.
The Census Bureau reported that households living in properties that they own are at 66.9% during the third quarter of 2010. The rate remained unchanged when compared with the 2010 second quarter. The last time that home ownership rate was at a lower level than its current status was back in 1999 when 66.7% of households all around the country own residential properties.
Historically, 64% of households occupy houses that they own. The figure started rising in 1995 following government campaigns aimed at encouraging people to own residences. Several legislators have reportedly pushed Freddie Mac and Fannie Mae to buy more loans designed for low income families, while others encouraged borrowers with weaker credit ratings to go for subprime loans.
Ownership of residential properties reached its highest level in 2004 at 69%, but started declining in 2006 and continued to decline as the housing market crisis hit. Today, rental property is considered much more preferable than home buying by most Americans, market analysts have reported.
The decline in home ownership is expected to continue until next year due to huge supplies of foreclosures and strict lending rules. Analysts are predicting that ownership of homes will return to the level recorded before 1995 when fewer Americans value residential property investments. According to some housing market experts, the government is partly to blame for the crisis in the residential property industry.
They argued that past administrations have allowed borrowers with low credit ratings to get loans, which eventually led to defaults. The number of houses that are empty or vacant has risen since 2006, analysts have reported. Four years ago, the number is estimated to be at 16 million. By the end of 2008, the number is estimated at 19 million. Rental property vacancy is around 10.3%, while primary home vacancy is at 2.5%.
October 19th, 2010
A study on the future of the U.S. home for rental market was recently discussed at the MFE Conference held in Las Vegas, Nevada by Investment Research analyst Jack Kern. The research, commissioned by the publication "Multifamily Executive," has cautioned multifamily dwelling landlords and owners against focusing exclusively on Generation Y members who are believed to be the future renters in the country.
A big percentage of Gen Y members are expected to come into the rental market soon and landlords and owners of rental housing are reportedly preparing for this occurrence and tailoring their services to this particular generation. However, Kern has cautioned that it will be wrong to ignore other age groups as majority of Gen Y are not even employed yet. He added that over 30% of this population still relies on their parents for financial help and most are still living at home with their families.
The home for rental market's anticipation of younger renters was largely influenced by the U.S. Census Bureau's report that around 57 million Gen Y members will reach the prime rental age of 22 from 2008 to 2020. This has led landlords and multifamily dwelling owners to prepare for younger renters.
However, Kern and other rental housing market analysts have stated that it will be ill advised for rental home owners and builders to start playing music in apartment lobbies aimed exclusively at young people, particularly if these sounds have the potential to annoy other age group renters. They added that using paint colors in apartments and lease centers particularly designed to attract young people might turn other potential renters off.
Kern has advised rental housing developers and landlords to focus on preferences common to all age groups. Security and comfort, he added, should be the primary focus of rental housing. He also stated that the best way to attract all types of renters is to provide trustworthy information that will allow them to make intelligent decisions and will promote a good relationship between renters and multifamily owners. This, Kern has asserted, will also lead to long-term retention of home for rental dwellers.
October 6th, 2010
Cheap houses for rent have become a rarity in the U.S. as renters are hit by increased household costs and declining income. According to 2009 housing rental data, majority of renters in the country consider housing unaffordable, with costs like utilities and maintenance continuing to rise, while sources of income have become squeezed.
Continue Reading: Americans Face Difficulties in Finding Cheap Houses for Rent
September 10th, 2010
Landlords and owners of houses for rent in Ames, Iowa have complained that the latest proposed changes to the city's rental home code will require them to spend money on repairs and upgrades that they cannot afford. Some owners are even considering selling off their rental properties rather than adopting the code changes being proposed by city officials.
Continue Reading: Owners of Houses for Rent Argue Logic of Proposed Housing Code Changes
July 23rd, 2010
The Pottstown borough in Pennsylvania is on the verge of implementing new home rentals rules. The rules are still being considered and are reportedly patterned after the guidelines that are in place in Gettysburg. However, some borough residents and landlords have argued that the new rules will drive good landlords from the town and will result in a decline of property values.
Continue Reading: New Pottstown Home Rentals Rules Under Consideration
June 15th, 2010
Some of the private universities and colleges in Massachusetts offer luxury homes for rent to their presidents as part of their compensation packages. The estimated monthly rent for the homes of college presidents were revealed following the Internal Revenue Service’s request to higher education institutions to include nontaxable perks in reporting the compensations received by their executives.
Continue Reading: Presidents of Private Colleges Live in Luxury Homes for Rent
May 28th, 2010
A protest was held by advocacy groups for tenants’ rights after the Los Angeles City Council prevented a proposed ordinance from being implemented which would have frozen property for rent payment increases for a period of four months. The protest, which happened at City Hall, led to several arrests.
Continue Reading: LA City Council Said No to Freezing Property for Rent Rates
May 6th, 2010
The properties rental market of New York adds two glass towers to its list of properties for rent. The towers are launched in the Upper West Side, with rooms requiring rental prices that are not commonly heard among walk up rentals scattered around the area.
Continue Reading: Properties Rental in Upper West Side Has Latest Addition
March 18th, 2010
A number of homeowner associations in Tampa Bay are now allowing more homes for rent in their deed-restricted communities because of the need for foreclosed houses to be occupied and because of the increase in real estate investors owning properties in these communities.
Continue Reading: HOAs in Tampa Bay Now Allow More Homes for Rent