"As the boom in multi-family construction continues rents may flatten out and now, more than ever, diligent landlords and property managers must utilize thorough tenant background screening in order to attract and maintain the most profitable tenants."
Waltham, MA (PRWEB) January 30, 2015
The construction of multi-family units continued to increase in 2014 and especially so at the latter part of the year. And as the rent market rises and falls, landlords and property managers must remain diligent in vetting tenants, especially as a means of securing long term tenants.
From Forbes.com (Oct. 17, 14):
"September’s numbers show that builders are continuing to bet on multi-family housing. While permits issued for single-family homes were relatively flat at 624,000 (0.5% below Augusts' revised 627,000) in September, permitting rose by 7% for buildings with five or more units, to 369,000 in September from 345,000 in August." (1)
With such an explosion of new permits and building the future of multi-family housing remains bright. However, a positive position suggests the potential for a flattening of rental value. Subsequently, many landlords and/or property managers should remain conscientious in obtaining new long term tenants as well as maintaining existing tenants.
While the aforementioned example of new multi-family starts is a small sample, it points out the direction of the entire segment within this particular part of the housing picture. In the new year, multi-housing construction will continue to increase and, by percentage, outpace the growth of single-family dwellings. (2)
The impact of this growth is clear: Existing rental units may experience a flattening or depression in rental value and income as vacancy rates show an increase.
In Seattle, Washington there has been a recent expansion of Multi-Family housing units. This expansion will present the potential of increased vacancies and flattening or slower rate of increase in rental value.
From SeattleTimes.com (Dec. 29, 14):
“All things being equal, if there are more units, there’s going to be more competition to rent these,” said Tom Cain, the Seattle firm’s principal.
He expects the boom in supply will slow the growth of rents, lead to more vacancies and spur more properties to offer more move-in incentives." (3)
And the message for landlords and property managers should be obvious. With the potential for longer vacancies on properties now, more than ever, is the time to conduct thorough tenant screening.
Adam Almeida, President and CEO of TenantScreeningUSA.com states: "Tenant screening helps create long term residents and, subsequently, predictable and long term income. By bringing financially secure and safe individuals one can satisfy the needs of ownership as well as the need to mitigate risk for existing long term residents."
Generally, a tenant background check includes a number of records utilized by landlords and property managers in order to make a well informed decision by a potential tenant. There are several reports commonly reviewed for tenant screening purposes.
- Consumer Credit Report - will clarify a candidates ability to fulfill a financial requirement.
- Criminal History and Sex Offender Registry - review will assist in creating a safe living environment for existing long term residents.
- Evictions - will provide information in regards to the long term viability of a potential tenant.
Almeida states, "It is always important to conduct a tenant check on an applicant, but in a time of potential overbuilding or flattening rental value landlords must conduct a thorough tenant screen to ensure the absolute best and most viable long term tenant."
TenantScreeningUSA.com is a third-party tenant screening company with an experienced staff highly trained in all aspects of tenant screening, including laws and regulations governing the use of public records. With programs designed specifically for first-time and/or small unit landlords and property managers, TenantScreeningUSA.com can provide all the tenant screening tools required for a successful and pleasant experience.