You’ve likely heard a lot about how apartment managers feel about Airbnb, but how do residents actually feel? One company asked its residents and the results were interesting. From NAA’s Industry Insider:
An ongoing topic among apartment industry professionals ever since, Cortland Partners decided to ask its residents about how they feel about allowing short term rentals at their communities. In January, Vice President, Resident Experience, Brian Ericson, sent a six-question online survey to more than 14,000 Cortland Partners residents and received 1,153 responses…
The company, which operates nearly 35,000 units in 95 communities, primarily in the Southeast, Texas, and Ohio, learned that 43 percent of residents surveyed are “strongly” opposed to allowing Airbnb rentals, compared to only 12 percent who “strongly” support Airbnb rentals.
In total, 52 percent are opposed to Airbnb rentals, compared to only 18 percent who are in favor; 30 percent of respondents were measured as neutral. The survey also showed that by allowing its residents to become Airbnb “hosts” it could negatively affect retention rates.
Real Data just released their April, 2016 report from their March surveys for the Piedmont Triad and here are the highlights:
- Average rents are up 2.1% since Mar, 2015
- Vacancy rate is 7.5%, up from 6.7% in Sep, 2015
- Demand has weakened in last 6 months, with only 355 units absorbed out of 929 completed over that time
- Development pipeline includes 3,040 units under construction and another 3,220 proposed
- Alamance is most active development sub-market with 630 units under construction
- Average rents are: 1 BR-$673, 2BR-$760, 3BR-$973
- Real Data projects vacancy to grow to 8% over next year, and rents to rise 2-3% as well.
- Sub-market with highest overall rent: Guilford Central (Downtown Greensboro)
- Sub-market with highest rent per SF: Forsyth Central (Downtown Winston-Salem)
For detailed reports, sub-market specific data, direct comps and more you can purchase a copy of the report from Real Data at www.aptindex.com.
From the press release:
Multi Housing Advisors (MHA) has brokered the sales of two apartment communities in North Carolina’s Triad region totaling $27.1 million. The two transactions include Peak Capital buying the 192-unit Spring Forest at Deerfield in Mebane from Cottonwood Residential and an undisclosed buyer purchasing the 294-unit Chesterfield in Winston-Salem from Brown Investments. Marc Robinson, Jordan McCarley and Watson Bryant of MHA’s Charlotte office represented the sellers in both transactions.
PTAA member McNeely Pest Control is expanding once again. From an article in the Triad Business Journal:
McNeely Pest Control’s Greensboro office has moved into an 8,500-square-foot building at 7707 Boeing Drive.
In addition to Greensboro, the office serves High Point, Archdale, Summerfield, Oak Ridge and Burlington.
The company has also opened offices at 25 W. Fifth Street in Lexington and 1620D Davie Ave. in Statesville.
Bank of North Carolina is investing $5 million in an effort to build affordable housing in High Point. From a story in Triad Business Journal:
Seeking to have a direct impact on the city that’s home to its headquarters, Bank of North Carolina will build affordable housing in struggling High Point neighborhoods and sell the new homes using a new mortgage product crafted for a population of potential homeowners now being underserved…
The bank’s effort will be in partnership with the city of High Point, which has had a downpayment assistance program in place for several years, and also has an inventory of vacant lots and reclaimed properties in lower-income neighborhoods that could provide land for the housing effort…
What Bank of North Carolina is proposing is to begin building three-bedroom, two-bathroom houses priced in the $70,000 to $80,000 range…
The idea would be to sell the homes at cost or near cost, with the new homeowners using a mortgage product Bank of North Carolina rolled out several months ago focused on those potential homeowners that lenders typically don’t target.
This piece in NAA’s Industry Insider offers four basic tips to help boost resident retention. This one in particular stood out:
Offer online payment and maintenance services: More than 90 percent of the survey’s participants saw online rent payment and maintenance requests as important online features of a resident portal. And nearly 80 percent said they’d prefer to pay rent online.
None of the tips are rocket science, but is your community doing them and, if not, should it?
From the NAA Industry Insider:
After losing several of his best players, Oakland A’s general manager Billy Beane in 2002 took a gamble when he enlisted replacements that were relatively unknown but statistically had a strong chance of hitting it out of the ballpark, so to speak. Beane’s hunch about his new players proved true when the A’s managed to stay competitive and financially healthy with this new lineup.
Predictive analysis works in a similar fashion. It analyzes trends and data related to the behavior of apartment shoppers to recommend pricing on apartment properties. A number of factors such as rent and occupancy rates go into this formula. “It’s probably the frontier for revenue management going forward,” according to Rich Hughes, head of data science with RealPage Inc., which conducts this type of analysis.
This method of analyzing tenant behavior to determine pricing may be especially useful in assessing certain risks associated with short-term leases.