'A Dramatic Shift Toward Renting'

[marmar]

(Bloomberg) Meg McKennon’s workload has surged since the Seattle real estate agent switched to managing residential properties. Now she gets paid for finding tenants instead of buyers -- an easier task as rentals soar.

“In the past two months, my business probably came close to tripling,” said McKennon, who started management company Dwellings Seattle Real Estate in 2010 after selling houses for 15 years.

When a couple moved out of a two-bedroom house managed by McKennon in August, before the lease was up, she increased the monthly rent by $200 to $1,900 -- and still had her pick of applicants. “I could have rented it 10 times over,” she said.

Just as the U.S. housing boom gave birth to such homebuyer websites as Zillow Inc. and Redfin Corp., services for rental properties are thriving following a surge in foreclosures and stiffening of mortgage standards. Membership in the National Association of Residential Property Managers has almost doubled in five years to a record 3,400 members, according to the Chesapeake, Virginia-based trade group. ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-11-29/once-ugly-property-management-grows-as-u-s-home-rentals-surge.html

[mike_c]

1. some of the worst rental situations I've ever experienced were...

...managed by those sorts of "property management" companies. I've rented from several of them over the years-- most have nickle-and-dimed me out of my security deposits-- "That 2 mm rust stain we found near the bathtub drain cost $750 to repair, you know!" On the other hand, I have rented from several wonderful individual home owners. My current rental, which I've lived in for about 12 years, is a lovely two bedroom, restored 100+ year old house in coastal northern California. My rent is probably less than half the local rate, in return for which I treat the place like it was my own, i.e. if something breaks, I generally fix it without bothering my landlord, who lives eight hours distant. I have a house full of pets. I'm presently replacing one room's wall-to-wall carpet with laminate flooring. My "security deposit" was considerably less than one month's rent. I love living here and plan to stay until I retire!

[SixthSense]

2. I stay away from those

IMO you should always deal with an individual landlord if you rent - property management companies have neither compassion nor humanity.

I have had tough times where I couldn't pay rent... if not for the compassion of a landlord I'd have been out on the street at least once. Never seen nor heard of a property management company doing the same.

Made a huge difference to me, and the landlord got paid what was due plus a penalty payment for lateness after the tough times were over. Everybody won in this case; a PM company would have forced me out in which I'd have been scrambling for a roof and they would have taken thousands in unnecessary losses.

[saras]

4. You said it - +1000 for the truth.

The "property management" companies here quit calling it a damage deposit and started calling a cleaning deposit, and they NEVER give it back. If you run a janitorial and handyman business, clean everything in the house to commercial standards and replace everything damaged to higher standards than originally existed, they will STILL keep all of your money.

[The Genealogist]

9. I've had good and bad experiences with "property management" companies

The one I rent from now is very good. I rented from this same company in the past, and I got back every cent of my deposit when I moved the last time I rented from them. If there is an issue that keeps me from paying every cent of my rent on time, they are very good about working with me. When I was having trouble two winters ago, with income, the folks at the office referred me to assistance programs that helped me through the hard times in ways beyond just the rent. That is a good company.

Alternatively, I once rented from an individual who had just the one rental property. They keyed in without knocking, catching me in the shower. The husband was a volunteer deputy, and made idle threats about consequences for my troublemaking, despite my being a good tenant and following all the rules and the law. In the time I lived there, I paid my rent on time every month, and when I moved out, the apartment was in BETTER shape than it was when I moved in. No refund of deposit.

I've also had rotten "property management" experiences, and good individual owner-landlords. Ultimately, I think it is luck of the draw as to what you are going to get.

[Donnachaidh]

3. so now the rental companies will price gouge renters

oh joy oh bliss :sarcasm:

In my area we're seeing more house rentals hit the market. Which will keep the apartment rentals from going thru the roof.

[AsahinaKimi]

5. Worst company

I had ever experienced was called Bartlien in Santa Barbara. Just terrible. Unfortunately, they own most of the rentals there.

[Donnachaidh]

7. the last company we dealt with owned places in several states

And they were the rental company from hell.

We now rent with a local company, and while they have a few properties, it's all in the area and they hire locals. MUCH better to deal with.

[AsahinaKimi]

13. I have always preferred

to rent from a landlord then a company. Companies have no heart and soul, when you are late on your rent.

[ProdigalJunkMail]

6. we had a house on the market for sale

and the agent suggested we try to rent it out. we asked $400 over the mortgage and had four people ask about it the first day it was available and had in rented in a week. the person living there wants to buy it, but has credit troubles at the moment, so, the extra $400 per month is going into a little account to handle major repairs if any occur and whatever is there when and if she decides to actually buy, will go to her downpayment...

sP

[GoCubsGo]

11. I am seriously considering doing the same, and would likely go with a property managment group.

Houses aren't moving too rapidly in my area, and I need to get rid of this house. There is a realty in town that also handles rentals. My ex-office mate rented a condo that they managed for a while. The owners decided to sell the place, and my office mate requested that they let her know when they were coming to show the place. Apparently, they didn't honor her wishes. Because of that and a few political reasons, I vowed never to use this company to sell the place, but I'm having second thoughts, considering this rental option. I have seen what people do to rental units, and it wouldn't be a bad idea to have nosy property managers keeping an eye the place so it isn't trashed. I do want to be able to sell this place in the end.

[ProdigalJunkMail]

12. we decided to manage on our own

I live about 2 miles from the property and the house is in good shape so I don't expect many or any major repairs...though something COULD come up I suppose. AND since the tenant we have in there now has mentioned buying the place I am pretty sure she'll take good care of it. OH, she also wants to pay me electronically each month so that is encouraging as well.

good luck with your property.

sP

[Horse with no Name]

8. I was lucky enough to be blessed with the rental company from hell working for the owner from hell

I got a twofer!

First weekend....air conditioner went out. Response from the rental company? "Well we see that your mother lives locally, you can stay with her for the next week while we pick our asses getting someone out there to fix it".

The next week....the water heater burst and flooded the house.

Rental company said that the owner didn't want to fix it because he just fixed the air conditioner.

The rental company fired the owner and then I HAD to complete my lease with the crazy owner.

NEVER again.

[and-justice-for-all]

10. I can not see renting as a possibility anymore...

"monthly rent by $200 to $1,900", you might as well pay your mortgage payment if it is still an option.

[ProdigalJunkMail]

14. what a lot of places are seeing

is people can manage the mortgage payment but cannot come up with the downpayment...thus, home rentals are climbing.

sP

[ComtesseDeSpair]

16. Spoken by someone who can obviously afford to buy...

I live in Chicago. Even the condos are over $200,000. Buying in a decent neighborhood will never be an option for me. And I make well above the median salary. Unfortunately, many of us are stuck renting for life... and I have found that more and more of my friends who bought houses are looking upon me with envy as they are stuck with a property that no one will buy. At least I'm free to go wherever I please at any time.

[and-justice-for-all]

17. I live in a small city in Indiana...

I bought my house back in 2001 while making $7.50 an hour. I was on the housing bubble, but I managed to keep the house since I bought it. In a major city like Chicago, I can see where renting is easier.

I do not regret buying my home at all, I am very pleased with it I and happy I did it. I can go where ever I want, and I will still have a home to come back to that is mine.

[Mimosa]

15. Rich investors stole the 'real property' from the struggling working class..

...after they made jobs go away.