Extra Heads-Up for Colorado’s Short-Term Tenants

Last week, Colorado legislature officially implemented a new law – Senate Bill 17-245 – requiring landlords to provide their short-term tenants at least 21 days’ notice before increasing rent rates or terminating their leases. Tenants now also must give at least 21 days’ notice before terminating their own short-term lease.

According to Colorado law, short-term leases run on a month-to-month basis or last no longer than six months.  Before the new law was enacted, either party could terminate a short-term lease with just seven days’ notice, one of the fastest turnaround times in the country. Colorado State Representative Dan Pabon described reasons for the law passing in a written statement:

“In this overheated housing market, more and more people are facing rent increases and having to find short-term accommodations. This new law will relieve some of the pressure on renters when faced with these situations, and give them more time to find an alternative if needed.”

With Senate Bill 17-245 in effect, tenants and landlords should feel less pressure and more equipped to adjust to an unforeseen lease termination or rent increase.

Click here to read more from The Denver Post

Airbnb and its Impact on Real Estate

If there are any Airbnb listing located near an apartment community, odds are that multifamily property has experienced some benefits.

According to a new academic study conducted by researchers from MIT, UCLA, and USC, a 10% increase in Airbnb listings would lead to a 0.39% increase in rents and a 0.64% increase in home prices in a zip code on average, meaning neighborhoods with listings are becoming more valuable. Data was collected by MIT Research Assistant Kyle Barron, UCLA Professor Edward Kung and USC Professor Davide Proserpio, as they compiled research from resources such as Google Trends, Zillow, Airbnb, and the Census Bureau.

While the report proves an increase of Airbnb listings has an effect on home prices, perhaps the most noteworthy finding from the report, especially for the multifamily industry, is Airbnb’s  impact on rents appearing to be linked to the availability of commercial listings in a particular market.

Fast Company’s writer, Ruth Reader explains, “They found that the percent of non-owner-occupied units listed in a given region determines the rate at which rents will increase. Rents rise more heavily when there is a preponderance of home listings that the owner is not living in.” More specifically, the study shows rental rates increase when landlords/owners take long-term inventory and move them to short-term markets like Airbnb.

As services like Airbnb and VRBO become more popular, it is only a matter of time before this new form of housing market has a larger effect on residential, commercial, and multifamily real estate from a monetary and regulation standpoint.

Read the entire Fast Company article here

AXIOMetrics – July 2017 Jobs Report

Earlier this week, AXIOMetrics, a market research company that provides strategic insight reports for real estate professionals, issued its July 2017 jobs report.

Here are some major takeaways:

  • 209,000 jobs were added to the U.S. economy in July
  • The national unemployment rate slightly dropped from 4.4% to 4.3%
  • Top five annual job growth markets – New York City, Dallas, Atlanta, Los Angeles, Orlando
  • Washington D.C. and Minneapolis-St. Paul move into top 10 of job-gaining metros

Beyond the major takeaways from the July jobs report, AXIOMetrics breaks down job growth by industry, analyzes how the Federal Reserve may interpret the current and upcoming economic climate, and explains how metrics like inflation and unemployment interact with each other.

The report also includes numerous graphs and visual aids to show how certain statistics compare to past metrics, but given the abundance of useful information provided by AXIOMetrics’ research, a personal analysis of the report is suggested to ensure a full understanding of job growth in the U.S. during July 2017.

Click here for the full AXIOMetrics July 2017 jobs report

An Expert’s Opinion

Yesterday we discussed some useful research tools commercial real estate professionals can take advantage of to gain insight on their targeted market. We highlighted Yardi Systems as one of the industry leaders in real estate investment and property management software by providing detailed analyses pertaining to market characteristics such as demographics, median incomes, and other important micro and macro indicators.

Today we will be listening to a recent interview provided by Multifamily 5, a podcast hosted by the Dallas-based multifamily broker, Mark Allen, aimed at interviewing real estate investors, brokers, and other industry pundits to learn some of their keys to success.

In this particular podcast, the leader of the Yardi Matrix team, Jeff Adler, discusses his top six markets that are poised for success in the near future, how the real estate industry interacts with Yardi Matrix software, the benefits of class B, value-add properties, future economic cycles, and much more.

Click here to hear Adler’s expert opinion on his top six markets and how to use Yardi software programs to gain a better understanding of your desired market.

Helpful Research Tools

Accurately assessing the real estate industry takes much more than a good hunch. Gaining a full understanding of a market takes years worth of knowledge and experience, solid relationships with other industry professionals, and continuous research to stay updated on current and future trends.

Fortunately, with so many useful tools, software programs, and other analytical technologies readily available, making well-informed, successful real estate decisions is more achievable than ever before.

For example, Yardi Systems, an industry leader in real estate investment and property management software, provides valuable research to real estate professionals in markets such as multifamily, single family, senior, military, and many other housing categories. Yardi also offers business solutions to other real estate market segments such as retail, self-storage, office, and industrial property types.

Click here for more information on Yardi multifamily research and business solutions: Yardi Matrix  

Aside from Yardi, there are numerous corporations such as CBRE, CoStar, and REIS who provide industry reports and research insights to assist asset managers and owners in making the most informed real estate decisions possible.

Check out tomorrow’s blog post for an in-depth interview between DFW-based multifamily broker, Mark Allen, and Jeff Adler, Vice President of Yardi Matrix Products. Discussions include Adler’s top six markets to keep an eye on and how industry professionals can benefit from Yardi Matrix Products.