Since it is rental season again, we thought it would benefit Richmond property owners if we shared some important trends we've seen in managing residential properties this year. We share our observations with property owners to keep them informed and to help them capitalize on current conditions in order to maintain or even improve the value of their assets.

For instance, how does this rental season compare to previous years? The overall economic picture here in Richmond is dominated by loss of jobs to the area. The Bureau of Labor Statistics tells us that the unemployment rate increased to 8.6% here in February. The employment picture for this region has not been this dismal since the early 80's! 

This translates into a growing trend among renters to consolidate their households. Whether students or families, more people are moving into apartments or homes together, and sharing their living expenses. Our leases show an increase in the number of residents per apartment this year, compared to last year. 

Units with from 2 to 4 bedrooms appear to be in higher demand than those with only 1 bedroom. Only 2 people can share a 1 bedroom apartment comfortably, while 2, 3 or 4 people can share a 2 bedroom unit. The rental price for the 2 bedroom is less than twice that of the 1 bedroom, so the cost per bedroom is reduced.

As a result, 4 bedroom units are in short supply and most have already been leased for this year. We have seen open houses draw more prospects looking for these larger apartments. Last year's lackluster demand for 3 bedroom units has now vanished, and these are presently renting at higher rates than they did last season. Even multi-bedroom college housing in Richmond is in short supply for our student population. 

Also, 1 bedroom rents have remained flat. The good news is that concessions have tapered off.  On the bright side, our occupancy rates are substatially stronger than they were last year. We attribute this to landlords realizing they had to lower rents if they were to maintain full occupancy for their properties. 

Empty units, priced too high, will kill an owner's returns. We assess trends and price rental properties accordingly, in order to get them leased quickly.

Like Bernanke, we believe recovery will be sluggish, especially with the high unemployment and hard-to-get credit still looming. We do believe the worst is over, but it will be a slow assent ahead for Richmonders. Local property owners, more than those in larger cities, need to keep abreast of current trends particular to our area, and respond accordingly. 

Call us for more information on important ways to adjust your property management strategies this rental season, in order to improve your bottom line. Our extensive experience managing over 900 units in Richmond, across a broad spectrum of the housing market, gives us a unique advantage over other residential property management firms.

To discuss how our property management services might benefit you, contact
Kyle Stephenson at: 804.282.1877
or kstephenson@KRSHoldings.com
www.KRSHoldings.com