The SW Idaho Chapter of the National Association of Residential Property Managers (NARPM) just released their first quarter of 2015 Rental Vacancy Report. All-in-all, I'd say the numbers paint an outstanding picture with a slight hint that we will see some corrections in rent. Those corrections may not become apparent until those leases are renewed, but I think the data suggest it may be necessary.
If you look at the Vacancy Rate Graph, you will see that multi-family vacancy is up to 4%. That surprises me because First Rate Property Management's multi-family is below 1% and we're pre-leasing almost all of our multi-family right now. It also tells me that FRPM probably should perhaps advise our clients to be a bit more aggressive on rent increases. I would not be surprised to find out that these vacancy numbers are the result of the rent-up of some of the new 4 plexes. Which brings me to the next graph, which are Rental Amounts. I believe the stated averages are a bit inflated. Remember, these multi-family units being surveyed are small multi-family buildings, not apartments that are offering a host of amenities. In fact, I would guess that the majority of the units surveyed are 4 plexes. I believe we can correlate the higher vacancy rate and the above average rents to newer 4 plexes coming on line. The newer 4 plexes are rich with upgraded finishes and also being new, they are pulling premium rents. With so many coming online this first quarter, they likely are the cause of the higher vacancy and influential in the higher rental rates. Just as we discussed in a recent blog, the higher vacancy will likely cause a correction in those rents. In fact, we are already seeing concessions in the rent up of those buildings and I think if the survey showed effective rents (lease rent - concessions) we would see a more realistic rent average.
Southwest Idaho NARPM Vacancy Report Q1 2015
The purpose of this survey is to show vacancy and rental rate trends among single-family homes and multi-family units (2-15) in Ada and Canyon County. Survey results are displayed by type (single or multi-family) and bedrooms (1-5) for the respective county. Property status was surveyed as of March 31, 2015.
The survey participants were property management companies affiliated with the SW Idaho Chapter of NARPM and are considered to the representative sample of the inventory of professionally managed rentals of less than 16 units.
Data from a total of 17 property management companies were included in the survey results, which accounted for a total of 4347 homes: 2106 single-family and 2241 multi-family. The accuracy and reliability of this survey is improved with an increased sampling.
Vacancy rates moved slightly down to 3.0% for the 1st quarter of 2015. This is a decrease of .2% from last quarter. The largest decrease in vacancy rates from last quarter was single-family homes in both Ada and Canyon County.
Rental rates in Ada County again increased slightly from last quarter. The increase in rental rates in Ada County has been in all areas of the rental market, from single-family to multi-family.
Rental rates in Canyon County also showed a slight increase, however, only in the single-family homes. There was a decrease in rental rates in Canyon County for multi-family homes.
Currently the trend is showing multi-family vacancy is continuing to rise slightly every quarter and single-family vacancy decreased significantly from last quarter.
The historical data for both Ada and Canyon County has been included in order to help provide a better perspective on how the market has changed over the last few years. We hope you find it valuable.
We thank you for participating in this survey. Please educate more Professional Members, about the importance of this survey. By having more participants, the accuracy and reliability of this survey is always improved.
View the SW Idaho NARPM 2015 Q1 Vacancy Report as original PDF file
Find out more about Idaho's premier organization of residential property management professionals at www.swidaho.narpm.org
NARPM is the professional, educational, and ethical leader for the residential property management industry.
Learn more about the National Association of Residential Property Managers at www.narpm.org
Contact Angela Post at 208-585-3256 with any questions and to learn how you can contribute and benefit!
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