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SW Idaho NARPM Q1 2022 Vacancy Survey

The Southwest Idaho Chapter of the NARPM(National Association of Residential Property Managers) has released its findings from the 2022 Q1 Vacancy and Rental Trends survey. The report is as of March 31, 2022. This survey tracks key performance indicators and market trends for single and multi-family homes in the Ada and Canyon County region. There are a total of 10,352 units managed between the counties with a total of only 241 vacancies.

 

Q1 Vacancy Survey Results

The rental market has seen some very intriguing trends this quarter! The 1st quarter of 2022 closed out strong with a market vacancy rate of 2.33%. The data collected indicates that vacancy rates have increased marginally by 0.75% from the 4th quarter of 2021! This is exciting news but also shows the vacancy rate may be approaching its eventual plateau.

Rental Rates

Ada County single-family rental rates increased this quarter by an average of $226 per unit, per month. However, multi-family rental rates increased by an average of $124 per month in the first quarter. The overall marketed rent rate for the combined single and multi-family comes in at $2,085 per month. To compare, that is a $519 or 33% increase per month based on the Q1 2021 Vacancy Survey.

Canyon County rental rates showed a lower increase in the second quarter of 2021 than the first. The rental rates for single-family homes showed an average monthly increase of $85. This puts the average rental rate at $1,747 per month. The current data illustrates that rental rates in Canyon County come in lower for both single and multi-family properties.

 

Rental Rate Comparison By County

Here are some of the key metrics for review that are broken down by respective counties.

 

 

 

 

 

 

 

 

 

 

 

 

Stay tuned for the Q2 results! If you would like more information on this report or would like to discuss how we can use our motto of “Less Hassle, More Happy” to assist in making the most of your investment, visit us here! 

Should You Hire a Professional Property Manager?

So you have purchased a rental property. Congratulations! Or maybe you own multiple rental properties that you’ve been self-managing for an extended period of time. And you’ve been tossing around the idea of hiring a professional property manager. Not all rental properties require property managers. If you are beginning to feel stressed, overwhelmed, or even a little confused about how to handle a situation, it may be time to start talking with an expert in the business.

According to Businesswire, 51% of investment property owners work with a property manager and another 24% are actively searching for a professional property manager. The rental market is booming across the United States and more investors are utilizing property managers than at any time in the past. But, what exactly does a property manager do? Property managers handle much more than just collecting rent for you each month. Here are some of the top responsibilities that a professional property manager will take care of for you.

Marketing Your Rental

Property managers are experts at marketing investment properties. They are trained professionals in real estate. It is their priority to get a rental property tenanted quickly. Not only will they take professional photos of your property for marketing, but they also have access to many tools that non-real estate professionals do not have access to. If you are on your own, it can be a huge headache to try and market your property. Platforms such as Facebook and Instagram make it easier in some ways, but you can’t always guarantee that the responses are legitimate.

Finding Quality Tenants

Pivoting off of the last statement of receiving legitimate responses to a rental listing, property managers are responsible to thoroughly screen applicants. Finding quality tenants can feel like an uphill battle. You don’t have to make that climb alone when you have a property manager on your team. Property managers handle background checks, credit checks, references, income verification, pet verification, drafting the lease, and more. All of this will be included in your property management agreement and can take a huge weight off of your shoulders.

Day-To-Day Management

You may have noticed that some of the everyday tasks of managing your rental can add up quickly. Property managers assist with shortening your to-do list. In fact, property managers actually make your to-do list virtually nonexistent! Your property manager will handle things such as collecting rents, handling tenant requests, scheduling routine maintenance, bookkeeping, and accounting! Your property manager will essentially turn your stresses into successes!

Maintenance

If you are a lucky investor, your property won’t need any major repairs any time soon! You can bet on the inevitable, however, that your tenants will make a call to the maintenance team at some point. Since you have been self-managing, it is almost certain that you have received a late-night call or text from a tenant with an emergent situation. You will never appreciate your property manager more, than when you don’t have to jump out of bed and respond right away. Property managers have a list of fully vetted and insured contractors that they can call on-demand to handle any maintenance issues. In some property management agreements, you are required to keep a reserve on file so that maintenance issues can be addressed quickly and efficiently without reaching you for pre-approval.

Evictions and Legalities

Last, but certainly not least, your property manager will bear the responsibility for any legal issues that could arise. There are many laws that are specific to protecting the tenant and landlord. Your property manager is required to stay on top of any changes and updates to these laws. If your tenant wants to break a lease early, or an eviction situation has come up, your property manager will know just how to handle this. If you are self-managing, you may be unsure how to proceed and have to constantly consult an attorney. Your property manager thankfully has systems in place to avoid additional legal expenses.

There are many reasons why you may be considering hiring a property manager. Maybe you are a new investor. Maybe you have another job. Maybe you are having issues finding and retaining quality tenants. Whatever the case may be, you can guarantee that a professional property manager will be on your team and work hard to ensure your rental remains profitable. If you would like more information on our property management services and receive a free rental estimate, visit us at www.rentwisepm. RentWise can handle all the details of managing your property. We provide COMPLETE property management in Boise, Star, Meridian, Nampa, Caldwell, Eagle, Kuna, and Middleton.

Should I Turn My Home Into A Rental?

There are many reasons that you may be considering putting your home up for rent. Maybe you found your dream home and it’s time to move your family. Maybe the market isn’t thriving in your location. Or maybe you are looking to dip your toes into the real estate investing market and this is your first step!

Whatever your reason may be, there are a few things that you need to consider prior to jumping in feet first. Sure, it isn’t difficult to find a thousand landlord horror stories. It doesn’t have to be that way if you are proactive and do your homework. Keep reading and find out a few steps to take prior to putting the ‘For Rent’ sign in your yard!

Know The Laws

This is a big one to start with. Tenants have a lot of rights under The Fair Housing Act. You will want to be sure that you are familiar with the discrimination laws and the laws are constantly changing. These laws advise you how you are allowed to list your property and also what is considered prohibited. You will also want to be sure to check with your local city permit office. Many municipalities require rental homes to file special permits. Permitting is specifically focused on safety and an inspector will come out and inspect and be certain that there aren’t any safety hazards in your home.

Upgrades and Repairs

Once you have received your permitting inspection, there may be things that need your attention. Furthermore, you may want to update a few things to keep up with the current demands of the market. Upgrades don’t always have to be expensive and can be easy! Inexpensive upgrades may look like anything from a fresh coat of paint, to adding a smart thermostat in the home. Not only will this show well in a rental listing, but upgrades will also keep your home competitive in a booming rental market! The more pride that is shown in upkeeping your home, the higher rent you’ll be able to collect! Everyone wins.

Research Property Management

It is no secret that managing your own rental can cause some major headaches. You will be the ‘everything’ person. Accountant, maintenance department, legal representative, on-call for communication, and more! Hiring a reputable property manager will help alleviate some of these pain points! They will work on your behalf and you will likely be able to collect higher rents based on the amenities they can provide your tenants- and they will even screen potential tenants for you so that you don’t have to. Property managers can provide you with a market analysis and an estimate of what your property may rent for. Property managers will also be able to assist with any legal processes such as an eviction or past due rent collection.

Establish Ground Rules

Do you want to allow pets? Who is responsible for yard maintenance? How many people do you want to occupy your home? What about swimming pools, hot tubs, and fire pits? These are all things to heavily consider when you are looking at renting out your home as these are things that could end up costing you later if not handled properly. Property managers can most definitely build all of your wants into your lease to ensure that your property is protected and maintained.

Check With Your Insurance Agent

You already have the home insured, so why would you need to review your insurance? Insurance for rental properties is a different policy than an owner-occupied home. If you kept the same policy but were not living in the home, and a claim situation arose, your insurance provider may not cover the claim. That could equate to a financial disaster depending on the damage.  A rental dwelling policy includes coverage for the structure, liability protection, and also very limited contents protection. Your tenant will need to have renters insurance to protect their belongings.

As you can see, there are many things to consider when deciding to rent your home. It is always a good idea to gather the facts and make sure this is the best financial decision for your situation. Here at RentWise Property Management, we care for every property like it is our own from day one! If you would like more information on how to make the transition to property investor LESS HASSLE, MORE HAPPY, visit us at www.rentwisepm.com

Renters Insurance: Why Do You Need It? What Does It Cover?

You finally found your dream home! You paid your deposit, signed your lease, and have a move-in date. Your property manager gives you a checklist of things to take care of prior to moving in. On that list, likely near the top, is purchasing renters insurance and providing them a copy of the policy. Does this sound familiar?

At one point or another, most renters likely are wondering why they need renters insurance for a property they don’t own. Insurance can be tricky, but it doesn’t have to be. When an investor owns a property, they have a separate policy protecting the structure of the home itself as well as providing liability coverage. Renters insurance is financial protection for the tenant and their belongings.

There Are Three Main Components Of Renters Insurance Coverage

Personal Property

When applying for renters insurance, you will choose a dollar amount that will cover to replace all of your belongings inside your home. Personal property coverage will cover replacing your belongings such as furniture, clothes, appliances, etc. in the event that a covered claim situation has arisen. Covered claims will be instances such as fire, theft, vandalism, windstorm/hail. Coverage for your personal belongings will also be in effect even when you are not at home. For example, if you are on vacation or moving and you have something stolen, your policy coverage would kick in.

Personal Liability

If you have friends over and someone gets injured at your home, who is responsible? In instances such as a trip and fall, or a dog bite, you would be responsible, or liable. Your policy would help pay for some of their medical bills up to the dollar amount listed on your policy. What if this person decides to sue you? Well, good news. Your policy has liability protection to help assist with legal expenses.

Here is another scenario: you left a candle burning and it caught your apartment building on fire. What happens next? Your liability coverage protects you against lawsuits and expenses from unintentional damage to your rental property. Liability protection within a renters insurance policy can protect a renter from financial disaster and ruin. Most property managers require at least $100,000 in liability coverage, some requiring $300,000. Be sure to read your property’s requirements to ensure you have adequate coverage.

Loss Of Use

If your home has become uninhabitable, you have protection for that as well! Loss of use coverage provides you with a temporary place to live above and beyond your normal monthly expenses, up to a certain dollar amount that is predetermined in your policy. If your hotel doesn’t have a kitchen, your loss of use coverage can also help to cover meals at restaurants. Your loss of use coverage can even cover the additional cost of gas if you are driving further to work or doctor’s appointments.

Other Coverage Considerations

There are a few other things that you may have not thought about, that your renter’s insurance policy may provide coverage for. Certain items such as jewelry, firearms, business equipment, and electronics have different coverage limits than the blanket coverage your personal property provides

  • Identity Theft
  • Jewelry
  • Firearms
  • Property that belongs to others on your property
  • Your property in a storage unit
  • Monetary replacement of food due to a mechanical breakdown or power outage

It is a good idea to check your policy to ensure that there are no gaps.

What Is Not Covered?

We have discussed what is covered, but now it’s time to go over what may not be covered so that you may avoid any surprises.

  • Flooding
  • Damage caused by pests
  • High-value items such as artwork, expensive pieces of jewelry, collectibles
  • Your vehicle
  • Earthquake (this typically can be added as an endorsement)

Before Purchasing Renters Insurance

It is always a great idea to take a detailed inventory of your personal belongings, with photos. In the event that your home is damaged or even deemed a total loss, it will be difficult to try and remember everything you’ve lost. Also, read the fine print on your renter’s insurance policy. There are two types of policies: replacement cost and actual cash value. While an actual cash value policy may be more affordable on the front end, claim payouts will be depreciated. Replacement cost policies will pay what it costs to replace with like and kind in today’s dollar.

We take managing properties very seriously from onboarding to exit for investors and tenants alike. If you would like more information about our services visit our website or give us a call! Less Hassle. More Happy.

 

Q4 Vacancy Report-2021

Have you ever wondered how to gauge the vacancy rate of a particular market? Further, have you ever wondered what the vacancy rates are based on the type of property you invest in? Well, you are in luck if you are investing in the Treasure Valley! Each quarter the NARPM Southwest Idaho Chapter conducts a vacancy survey with data sourced from local property management companies!

Demand for homes in the Treasure Valley

According to a recent Forbes article, real estate in Boise is booming and investors around the country are taking note. The numbers don’t lie! As of December 2021, there were 9,243 rental doors between Ada and Canyon counties! 2021 started out with the lowest vacancy rates in over 15 years. The 4th quarter of 2021 has demonstrated that the demand for rental homes has remained strong with an overall vacancy rate of 1.58% which is a vast improvement over Q3 of 2021 where the vacancy rate was 3.3%.

Reports

Summary

Ada County single-family marketed rental rates increased this quarter by $129 per unit in monthly rent. Multi-family units in Ada County increased by an average of $142 in rent per month. The overall marketed rent per unit increased by $242 making the average marketed rent $1,880 per month.

Canyon County rental rates saw a decrease of $19 this quarter putting the overall average market rent at $1,662.

The grand total of vacancies in the 4th quarter of 2021 between Ada and Canyon Counties was 143 with a combined average rent of $1,779.

If you have more questions about how we can help maximize the return on your investment property or would like more information about our services and how owning an investment property can be LESS HASSLE, MORE HAPPY,  give us a call at 208-949-3083!

 

Top Amenities On A Renters Wishlist That Make A Profitable Rental Property

According to a recent survey from the U.S. Department of Housing and Urban Development, there currently are 100.9 million people living in a rental home. The rate of homeownership has steadily declined over the past few years and younger generations are opting to rent vs purchasing a primary residence.

The majority of rental properties are owned by individual investors rather than large corporations. This opens up a large window for a personal touch and value add when an individual investor is involved. Large corporate areas may create every rental unit they own to be uniform with the same features. An individual investor has the flexibility to tailor some amenities and upgrades in a rental property according to demand and market trends. When it comes to rentals, knowing what your tenants want and like will not only quickly secure tenants, but retain them as well.

There are obvious amenities that all of us would love to offer, such as a balcony view over the ocean. This list is focused on the things that are largely able to be controlled by an investor.

Top Amenities on a Renters Wishlist

1. Parking

If you’re renting in an urban area, parking can be somewhat of an issue. For tenants who have cars, especially in a community, parking is of the utmost importance. No one likes to come home from a busy day at work, after spending time in a traffic jam and having to worry about parking 20 minutes away from home. Designated parking also makes your tenants feel safer and secure because they will always be familiar with the area and surroundings.

2. A Good Pet Policy

According to the III- Insurance Information Institute, 70% of American households, or 90.5 million people own a pet. It is no surprise that people love their furry friends. Renters are no exception. Having a policy in place where you allow pets will eliminate some of the stress for a tenant searching for a home. Being smart and having a thorough pet screening policy is the best way to protect yourself as a property owner. Having a flexible pet policy will secure tenants quickly.

3. On-Site Laundry

In today’s world, it isn’t always feasible to spend a few hours a week at a local laundromat. Loading your car up and traveling to a laundromat is not only a hassle, but can also create unnecessary stress with the additional cost. Having a washer/dryer in the unit would be an ideal situation for most renters. At a minimum, offering a few on-site washers and dryers, even if they are paid, will suffice and fill that void. In most residential areas, I think it is safe to say that many people would not even consider renting a place without access to laundry facilities.

4. Outdoor Areas

This one isn’t always within your control. As a property investor, keep this one in mind when purchasing a rental property. Many renters will be satisfied with any outdoor space whether it is a balcony, deck, or porch. Not only is an outdoor area an extension of the property, but it also can pack some really big value if the space is kept in great condition. If your property doesn’t have a great outdoor space, look toward community areas such as parks and recreation nearby.

5. Storage Space

While it can be expensive and challenging to modify an existing floorplan to create additional storage, you can always get creative. Adding additional shelving units in closets creates extra storage space. Ensuring that kitchen cabinets have ample shelving inside to maximize storage space is a huge bonus. Over-the-door hooks and racks will allow for shoe storage, towel storage, and even odds and ends. Also, if you plan to update your bathroom vanities, be sure to select one that has maximum drawer and cabinet space.

6. Appliances

The majority of renters will not come into a property-owning a full set of appliances. Including an oven, refrigerator, and dishwasher in your tenant package will certainly add immense value and attract quality tenants quickly.

7. Air Conditioning

Air conditioning is probably one of the most desirable amenities, especially in hot and humid climates. If your property does not currently have an air conditioning unit, you may need to consult with an HVAC specialist and put it into your budget. Consulting with a specialist may cost more upfront, but it pays to do it right the first time so that yearly maintenance costs will be lower. If your property lacks the capacity for a central air conditioning unit, exploring other options such as providing a window unit, or an individual room cooling system may be the next best thing.

These are just a few of the top amenities that renters across the United States have expressed as being valuable in their search for the perfect home. If you’re looking to rent your home and would like a free estimate on what your property would rent for, we can help! Additionally, we can provide professional and expert service to your tenants, such as a designated maintenance team, easy ways to pay rent, credit for on-time payments, and more! The RentWise motto is ‘Less Hassle, More Happy’ and we stand by that in every interaction we have with property owners and tenants alike!