Tony fights for Landlord Rights
Next week, I travel to Washington DC to join property managers across the nation to speak to the representatives in Congress about Landlord Rights. I am looking forward to it and hope that our presence can make a difference as our government continues to look for alternative sources of income.
Also, a few months ago, I was asked if I would support and assist in writing new regulations requiring Idaho property managers to be licensed agents. I do support this and did agree to help. As you may know, property managers in Idaho do not require a license. Anyone can start managing properties tomorrow with no experience, no specific education, and no processes in place to safeguard Landlord’s and tenant funds. However, if not written correctly, this additional regulation could put unnecessary burden to property managers. I can tell you that when other property managers found out that I favored some form of regulation of property managers, I became very unpopular. However, something has to be done. I’ve had clients and good friends who have had months and months of rents stolen and tenant deposits spent. Additionally, there are reputable companies in Boise who do a great job managing properties, but unfortunately do not have the systems and processes in place to accurately account for funds they hold. A company our size could have over a million dollars of rents and deposits at the first of each month and I believe there needs to be structure to ensure that those funds are safeguarded. I’ll keep you posted.
Boise Investment Real Estate
Single Family Homes:
With the rental market improving, I’m starting to see more investors looking at single family homes. Generally speaking, single family homes do not perform as well as multi-family properties. However with the low prices and stronger rents, their performance is decent and there is that possibility that as the Boise market recovers and improves, some good money can be made upon the sale of the home.
In March we saw the number of Ada County duplex listings increase by about 15%. At the current rate of sales, that equates to about an 8 month supply. Four plex sales are looking good with a 7 month supply. There is definitely a demand for newer four plexes and we are seeing any newer four plex listing going pending very quickly. The good news is that the number of REO’s and short sales continue to decrease. In March, 57% of the sales were REOs or short sales. That is the lowest we have seen in nearly two years. I think it is safe to say that as this number continues to decrease the closer we get to seeing values stabilizing and increasing. We have definitely already seen that happen with newer four plexes, so I think the others will follow.
Boise Area Rental Market
Right now, 5% of First Rate Property Management’s rental inventory has given notice to vacate at the end of April. Historically, this number will increase each month until we explode in the months of June and July. Then things begin to slow down once school is back in session. When we receive notices to vacate we begin advertising immediately. So our call volume has increased greatly. Also, this week’s vacancy jumped up to 3.5%. The main reason given by tenants for vacating is that they have bought a home. Very few notices to move this month have been due to rent increases.
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Tony A. Drost
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