What do you think of Micro Units?

Miniaturization in computers and electronics is all about doing more in less space, reducing the overall footprint of any one piece to make room for more cool stuff. It’s meant the difference between these two:

Or these two:

It makes sense for technology, but for apartments? Sure, miniaturized apartments would let you put more units at a single property, but it’s not like you can reduce the size of the people inside the units. Would people like to live in “micro-unit apartments”?

Apparently, some people would. This article spotlights a Brooklyn couple who live in a 240-square-foot space. And they’re not the only ones. Last year I shared a story about a man living in a modular 330-square-foot apartment in Hong Kong. And New York City planners are pushing for tiny apartments in the Big Apple. (You can read about multifamily reaction to the idea over at GlobeSt.com.)

It’s an interesting phenomenon. But what gets the wheels in my mind turning isn’t the development aspect of the micro units—whether or not to build them, how they’d be set up, etc. I’m already thinking ahead to the next step, and this is where I’m hoping you’ll help me brainstorm:

How would life be different for a property manager at a property with these tiny apartments? What would change?

A few thoughts off the top of my head:

• Tinier units mean more residents per square feet, which can mean an increase in the number of leases to manage, rents to collect, screenings to perform, etc., for a single property.
• Marketing changes a lot. For many people, those small units are going to be a tough sell. I think niche marketing would be key here, not convincing people looking for bigger apartments that they can get by with less space, but instead finding people who will see those tiny units as an advantage.
• Hand in hand with marketing, pricing is going to change, too. What’s the right price point for an apartment the size of a single car garage? How about with special amenities like fold-down beds or sliding panels?
• Safety can be a concern. Increased population density can mean some extra work for evacuation plans and it would take less time for fire, bed bugs, etc. to spread from one unit to another.
• Facilities issues are going to be different in other ways, too. Increased efficiency in the apartments themselves might mean that plumbing, ventilation, and other factors are less accessible, and residents are likely going to be just that much more aware of anyone servicing their units when they’re temporarily sharing such a small space with then. Would extra training be necessary?

What do you think of micro units? 

by Michael Cunningham

Single-Family Rental Houses Draw Millions, Those Who Were Impacted by Foreclosure Crisis

After splitting from her husband, Tami Wingfield couldn’t afford to keep up with the mortgage on the home that they had shared. The monthly $1,600 bill was too much for her to bear alone, and in 2008, she lost the house to foreclosure.

Like many people who lost their homes in the housing collapse, Wingfield decided the next logical step was to rent. But that didn’t mean she had to give up the lifestyle of a homeowner. Wingfield and her three children have managed to stay in a four-bedroom single-family house all to themselves – they just don’t own it.

They’re part of a new class of American renters that has emerged in the wake of the housing bust: people who lost the houses they owned and are now renting single-family homes. Ironically, many of these rental homes are a reflection of the troubles that once plagued the renters. They used to be owned by other families who lost them in the downturn. Now they’re owned and rented out by investors who purchased them at a discount.

At least 1.75 million renters in the U.S. have gone down the same path as Wingfield, according to data from analytics firm CoreLogic.

Wingfield rents her $1,000-a-month home in Goodyear, Ariz., from The Empire Group, a development and investment firm that bought it as a foreclosure. She has a backyard where she’s planted a garden, and she’s on a desirable suburban street lined with quaint homes just eight miles from the house that she owned with her husband.

It’s as if hardly anything has changed.

Feeling Part of the Community

“I am able to provide my daughters and myself a nice home,” Wingfield said. “I don’t have to find a parking spot when I come home, tired from working double shifts at the hospital. I pull my car into the garage and walk into my house.”

Being able to maintain a homeowner’s lifestyle, even as a renter, has also helped her continue to feel like a part of her community.

“You can establish a place in the neighborhood — get a school for your children,” Wingfield said. “The buses run in the neighborhood…. There’s parks and sidewalks to walk your dog.”

Empire, which owns about 1,000 homes in the Phoenix area, spends close to $7,000 a pop to restore each of the distressed properties that it purchases. Its average rental home is 2,100 square feet and goes for $1,050 a month, said Geoffrey Jacobs, a principal at the company.

Jacobs said Empire, which started off as a developer, “put on the investor hat” in 2009. “It was an opportunity for us to take advantage of something we never thought we’d see again,” he said.

Investors provide the capital that Empire needs to convert homes into rentals, and the company turns a profit by taking a cut of the monthly rents that it collects and distributes to investors.

Empire is just one of many firms that are snapping up bargain homes and leasing them to families like Wingfield’s. And with rental rates soaring nationwide, the business strategy is currently lucrative.

As of January, investors are raking in an average 8.6 percent return on their investments annually, according to CoreLogic. That’s a 3 percent increase from 2006. And there are 21 million units in the country’s single-family rental inventory, putting the size of the market at a whopping $3 trillion, CoreLogic said.

That might be a good thing, since millions more borrowers are headed toward foreclosure and may flood the rental market. If that happens, it could continue to push up rental prices and lure more investors into the market, experts have said.

‘Conscientious People’ Coming Out of a Crisis

Many of these single-family renters are like Jacobs’ tenants, whom, he said, are “fairly conscientious people that just went through a foreclosure crisis” and want to retain some semblance of homeownership.

People like Michael Williams, who lives in Memphis, Tenn. When he couldn’t find enough work, he was forced to sell his home in a short sale in 2011 for $110,000 — nearly $40,000 less than he owed on his mortgage. Now he lives in a single-family rental, which costs him $1,025 a month. He said that he feels “blessed” to still be able to reside in a home of his own close to his old neighborhood.

“I’m partial to a home,” he said. “I have my own privacy, and [I also] have grandkids.”

Williams rents from Memphis Invest, an “REO-to-rental company” that purchases homes in Dallas, Memphis and Phoenix and flips them to “mom-and-pop” investors. REO is real estate parlance for bank-owned properties.

“They’re looking for stability and still have pride of ownership,” said Chris Clothier, a partner with Memphis Invest, of its tenants.

But will these homeowners-turned-renters ever return to homeownership? One possible way back in is through landlords selling their tenants the homes that they occupy. Williams said that his lease agreement stipulates that he could purchase the home he’s living in if his credit score improves and he saves enough for a down payment.

HomeVestors WFI in Stafford, Texas, which manages about 600 rental properties, said it also may offer tenants the opportunity to buy the homes that they occupy.

“We would either sell that home to them or help them how we can,” said Rickey Williams, president of HomeVestors.

In fact, renters of single-family homes may need to be in the position to buy again — and soon. With home prices on the rise, many investors may want to sell, said Jed Kolko, chief economist at listing service Trulia. So if the renters aren’t ready to buy — and recently foreclosed-on homeowners may not be — they’ll have to move.

Still, the boost in the single-family rental inventory has been a positive force, experts have said. They not only offer comfort to once-beleaguered families, but they help to stabilize the housing market by chipping away at the foreclosure inventory.

“It is a good thing for people who need homes to be in homes that need people,” Kolko said.

Listen up, Property Managers! College Students Want to Find You Online!

Are you advertising apartments, and want to capture the younger crowd? Then it’s time to get web-savvy. As John Kerrigan reported recently in the Multifamily Insider blog, college students increasingly eschew “traditional advertising” and turn instead to online searches when it comes time to find a new place. A nationwide survey of over 500 college students produced some interesting data that could help you decide where and how to advertise.

Here is the rundown:

-53% of students said that Google/internet searches were the most important tool they had for finding a place to live; 32% said friends’ recommendations, and 27% said parents’.

-The least important tools in helping find apartments: Facebook, student newspaper ads, online ads and promotions, and activities put on by apartment communities.

-71% of students said Google was the most important web application they use overall, and 98% use it to find online info.

-Although Facebook was listed as a “least useful tool” for initially finding a place, 78% said they would use Facebook to learn more about an apartment community that interested them.

-A majority of students never use Twitter.

In short? It’s probably worth putting some resources into being find-able online, and a Facebook page wouldn’t hurt.

Pay Rent Chex not only provides you with an online payment portal but it also provides you your own mini website which is included in our monthly rate! 

 

Do You Have the Skills to be a Property Manager?

Pay Rent Chex will help you become more organized, collect rent faster, tack on late fees and communicate with renters quicker….

Not just anyone could become a property manager or landlord. Just like any other career, you need to have the right set of skills to be able to be successful in the role. If you’re looking to start a career in landlording or property management, make sure it’s a good fit for your personality and strengths.

So before taking the leap into the rental field, make sure you’re strong in the following fields:

People skills. If you don’t like people, it’ll be very difficult to avoid them while managing a rental property. When you’re working in rentals, you’re working with people all the time. Landlords and property managers give property showings, regularly interact with renters, and provide customer service. If you don’t have the people skills to manage people, they will start to manage you or you will lose control.

Organizational skills. When you’re collecting rent, applications, and documenting communications from renters, piles and piles of papers will give you a headache. If you ever head to court (knock on wood), you’ll be expected to bring supporting documentation with you. If you’re not organized, it could take hours to find if you find it at all.

Landlords and property managers need to have a knack for organization. This means lots of filing cabinets or online documentation management and effective record keeping. If you don’t have this skill, it may come back and haunt you if you get into any legal troubles.

Business skills. When you’re a landlord or property manager, you’re a professional business. So you better act like one. You need to be smart with your money and make sure you’re profitable.

Additionally, make sure you handle relationships with other businesses well. Businesses frequently interact and engage with other businesses. For example, when you hire a property maintenance company, that’s a business transaction.

Streamline Your Operations with Us!

Michele is now setting up presentations in our conference room! If you or your company are still collecting or sending paper checks come see how we streamline operations!

Managing Your Property In the Clouds

If you have internet connection, you can manager your property! PayRentChex’s online rent payment system is secure, fast and easy! One of the main reasons for it’s sleekness is because the system’s platform is in the cloud.  Residents can pay their rent using their mobile smart phone for this reason as well! Convenience and consistency is key! PayRentChex will provide you with both of those and more!

Being Personable and Authentic

PayRentChex is known for our customer service relationships and also the fact that we are simply authentic.  The following article we came across is a great review for property managers and any business that is in contact with their clients on a regular basis. ‘

 

When renters are on the hunt for their next rental property, they’re looking at more than just the quality of your unit. One major factor they’re using the judge whether they want to rent from you is customer service.

Customer service is an art you must learn to master to attract renters. Renters expect more than just a roof over their heads when they sign a lease; they’re signing a legal contract bound to you. You expect rent from them. They expect service when requested.

Excellent customer service is more than just saying your pleases and thank yous. You need to be authentic and personable. Otherwise, renters are bound to see right through you. Use the following three tips:

Listen to what your customers are saying.

When you have something to say, nobody likes to be ignored. Nobody likes it when you repeat “uh huh” after every sentence, either. So when renters are talking to you, give them your undivided attention and listen. This means, no texting, taking phone calls, shuffling through papers, or clicking through your computer.

Listen to what your renters are saying. Acknowledge their problems. Give your tenants the attention they deserve when they have something to tell you.

Be empathetic.

When renters raise concerns, they want more than just being heard. Renters want to be understood. It speaks more to renters that you’re able to thoroughly and emotionally hear them out. Sincerely acknowledging how a renter feels can help diffuse emotions. This can help when your have an upset, angry, or emotional renter on your hands.

One way to create an empathetic statement is to start it off with, “I understand you feel…” Another way is to confirm their feelings by telling them, “I would be frustrated in your position as well.”

Smile.

Have you ever seen someone dryly tell you “Have a nice day” with a blank face? How convincing was that? Smiling is a non-verbal form of communication expressing that you’re happy. In the case of customer service, you’re communicating that you’re open and happy to help your renters.

Genuinely smiling dramatically increases someone’s satisfaction in customer service. If you crack a smile (a real one) while you speak to customers, it will reflect in your tone of voice. Give it a try. It’s a simple change you can make in your communication style that could drastically and positively boost your relationship with your renters.

by Sarah Gabot

Green Your Apartment

PayRentChex loves when we come across articles about companies going green! At our company we support and motivate other companies to do just that… especially rental properties.  When a company accepts rent online by using our system they are also accepting to help the environment by going green! With PayRentChex you will no longer be using paper checks, mailing envelopes with paper invoices, buying stamps or driving to the bank.  The article I found below give tips on how to go green your apartment…. great article!

It can seem almost impossible to go green when you live in an apartment. New energy efficient appliances,better insulation, and solar panels aren’t really an option when you don’t own the property. Going green doesn’t have to be all grand gestures and large expenses, though. Fortunately there are quite a few simple ways to make a difference where you are.

1. Go Fluorescent

One of the easiest way to go green is to replace all of your incandescent bulbs with compact fluorescent bulbs. These long lasting bulbs reduce waste and use considerably less energy than their incandescent counterparts. While the initial investment is higher than conventional light bulbs, you will save money in the long run both in electricity bills and replacement costs, a nice bonus to helping the environment. While it seems like a small step, Energy Star estimates that “if every household replaced just one incandescent bulb with fluorescent we would save $600 million in annual energy costs and prevent the production of 9 billion pounds of greenhouse gas emissions.” That’s a lot of effect for such a little step

2. A Low-Flow Toilet Without Commitment

Installing a new low-flow toilet may not be possible in a rented space, but it’s actually surprisingly easy to create one with the materials you already have. Simply fill any water bottle up and place it in the toilet tank. The space displaced by the water bottle will prevent the tank from filling all the way and reduce the water used each flush. While this may seem like a small amount, the water saved over time can really add up. The larger the water bottle, the more water conserved, but you may have to experiment with water savings and functionality.

3. Lower Your Kitchen’s Carbon Footprint

Paying attention to what you keep in your pantry is another great way to go green where you are. Try shopping for locally grown foods in season. Farmers markets are a great place to start. Local butchers may also have access to locally raised meat or eggs. Buying locally not only supports the economy in your community, but also eliminates the huge amounts of fuel needed to ship in oranges from Brazil and fish from Chile. If you can buy organic, that further helps the environment, eliminating pesticides that can leach into the soil and water supply.

4. Furnish Creatively

Furniture and other apartment essentials provide another opportunity to go green. Instead of buying all new furniture, dishes, and pans try asking friends and family if they have anything they’re getting rid of. Look through the selections at local thrift stores or check out Craigslist and Freecycle online. Not only can you get the items you need for free or a greatly reduced price, you are also eliminating the cost of manufacturing new goods and possibly saving landfill space by taking items that may have simply been thrown out.

5. Turn Off and Unplug

Another simple way of keeping your apartment green is turning electronics off and unplugging them when they are not in use. Turning off the lights and the television when you leave the room may be a no-brainer, but fewer people realize that electronics still draw a small amount of electricity when they are plugged in, even if they are not on. Unplugging the toaster and keeping your phone charger out of the wall when it’s not in use may not save huge amounts of electricity, but if everyone took these simple steps the benefits could really add up.

It can be easy to fall into dreaming about what you will do to help the environment when you have your own house. Solar panels, windmills in the backyard, and energy efficient appliances are all great, but don’t let apartment life frustrate your dreams of going green. There are plenty of simple steps you can take right now to not only help the environment, but also ease the strain on your wallet.

by Roger D. Eagleton

The Multifamily Housing Opportunity

With rentals on the rise, investors are turning their attention towards apartment buildings.

 

After a 30 percent drop in home prices in the last four years and forecasts of a slow real estate recovery, industry analysts are seeing a greater demand for rental housing. Though the residential market has suffered overall, the rental business has been thriving. Rental prices are on the rise and occupancy at apartment complexes is higher than it’s been in the last three years.

Not surprisingly, companies that build multifamily rental housing are enjoying a renaissance. While lenders might still shy away from financing for-sale condominiums, most are tripping over each other to fund the development of rental housing, especially in denser metropolitan and suburban downtowns. Manhattan rental occupancy in the second quarter eclipsed 98 percent and average asking rents had spiked to more than $3,720 a month for a two-bedroom.

Investors take note: The numbers show a national trend that has pushed the return on apartment investment to almost 15 percent, according to the National Multi Housing Council. 

Noted economic prognosticator Gary Shilling said the end of housing’s salad days have trumpeted a return to sensibility in the residential real estate market. Because it will take many years for prices to rebound, he said people can no longer count on a house as being a great investment and more will begin to separate their financial speculation from where they live.

Shilling said young families are probably going to stay in apartments longer and more empty nesters will want to stop sinking money into a house not going to jump in value anytime soon. All signs show it’s already happening. 

DAVE WINZELBERG

Throw a Successful Apartment Event

By Jennifer Chan

Image by rickpilot_2000 via Flickr

Summer is a great chance to get outside and get to know your residents. Throwing community events for your complex helps build a sense of community and shows that you’re cooler (hopefully) than the other apartments out there. But planning events take time, and the last thing you want is for your gathering to be a huge flop. Your parties don’t have to be lame this summer – just take a few tips from our list.

Go outside. Take advantage of the nice weather and hold your event in a common outdoor area. Have it at the pool, string some lights up on your roof, show a movie on the lawn, or set up a volleyball court. In the colder months, hold a pumpkin carving or sledding event. once your residents are outside enjoying the nice weather, they won’t want to go back in.

Make the space festive and comfortable. If you make your event space look inviting, your residents will be more likely to stay longer. Set up plenty of seating in the area, string up some lights, or just go for colorful blankets on the grass and see your residents come for a look and end up staying an afternoon.

Put out snack foods. Remember in college when everyone went to events for the free food? Discourage the grab-and-go mentality by offering lots of finger food along with the burgers and hot dogs. Snacks that keep everyone coming back means there’ll be more mingling and chatting among your residents.

Plan activities. If there are kids in your units, have a station to keep them occupied so their parents can have some fun, too. Bring out the water balloons, karaoke, bingo, and three-legged races to get some interaction going. Fun activities will get the conversation started and help your tenants get to know each other.

Play music. Starting off a party can be awkward, but don’t make tenants leave because of the weird hush. Beat the awkward silence by playing some popular tunes.