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Good News for Property Managers…Carpe Diem!

Posted on 13. Apr, 2010 by Marc Courtenay in Real Estate

These challenging times present many bargains, discounts and some exceptional opportunities for property managers.

Although rental rates have dropped and vacancies soared in many areas of the country, there are many reasons to believe we are at or near the bottom.

We are soon to enter a time when there will be a dramatic increase in mortgage resets. There is a huge number of adjustable rate mortgages that will reset in 2010 and 2011.

Many of these mortgage holders will no longer be able to afford their homes. When you eliminate the property taxes, mortgage expense and maintenance, it makes more financial sense to rent or lease than to buy.

So for the next 12 to 18 months there will be an inordinate amount of potential residents who will be looking to fill your vacancies, and as the chart below shows, the number of monthly mortgage rate resets doesn’t peak till the middle of 2011.

Federal and state government programs to assist renters are also under discussion. It will likely lead to an expansion of the Section 8 housing assistance programs. This will help assure residential rental property owners and managers that they will receive their monthly payments from tenants.

There is more “good news” for property managers. Due to the credit contraction and consumer sentiment, building supply companies and home improvement centers are drastically reducing prices.

This means that the cost of everything from light fixtures to carpeting is on deep-discount sale. Right now is the time to look around your properties for inexpensive ways to make them look livable and appealing.

Let’s face it. There hasn’t been so many sales going on in almost 20 years. Have you been putting off some necessary maintenance? Do some of your rental homes need a new roof. Even the cost of labor and the total cost of big projects are going down.

Property managers have told me that there are more licensed contractors and subcontractors looking for work right now then in many years. They’ve slashed their prices and their overhead to make sure their rates are super competitive.

Now is an excellent time to reevaluate how much you are spending for the upkeep, improvement and beautification of your properties. You should be able to save money and if you pass those savings on to your owners, you’ll have some very happy, loyal clients.

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What Property Managers Need to Know Now About the Real Estate Market
The Bottom Line: Rents Now Cover Mortgage Costs!
Apartment Vacancies Hit 30-Year High and That Can Be Good News
What Current Home Prices and Foreclosures Mean for Property Managers

Tags: investing, Real Estate