Largest San Fransico Landlord Partners with Airbnb

Not long after inking a deal with Florida landlord, Newgard Development Group, Airbnb has signed a deal with San Fransico’s largest landlord, Veritas Investments, and Pillow Residential, a San Fransico-based startup that helps apartment owners turn units into short-term rentals.

According to the partnership, Pillow will now become the preferred partner for landlords enrolled in Airbnb’s Friendly Buildings Program, which allows landlords and tenants to share the revenue generated via home sharing.

Pillow’s services have made short-term renting a more mutually beneficial option for landlord and tenants than ever before. This is achieved by providing tools to each party that helps automate the home sharing process.

For tenants, Pillow’s tools help create Airbnb listings that automatically inputs specific building information such as access codes, emergency contacts, and shared amenities.

For landlords, Pillow automates onboarding tenants and educating them on home sharing, and also provides information about creating and executing home sharing lease addendums.

In addition, landlords are given a dashboard that monitors short-term rentals throughout their properties and indicates if a unit is occupied or available to rent.

It will be worth monitoring how much skin in the multifamily game Airbnb gains as short-term renting become more prevalent via home sharing.

Click on the links below for more information on Airbnb and their transition to the apartment game.

Airbnb Florida

Airbnb San Fransico

NAA Report Points to Orlando

Every quarter, the National Apartment Association (NAA) partners with RealPage to produce a Market Momentum report, which surveys industry executives across the country to reveal the most desirable markets for investing, rent performance, and resident retention.

While there are many varying opinions about what markets are desirable in the current economic climate, according to the most recent Market Momentum report, industry executives see Orlando being a hotspot for near-term multifamily investments.

“Market Momentum survey respondents rank Orlando as the top choice for increasing near-term apartment investment, said RealPage Chief Economist Greg Willett. “Supporting this choice, RealPage stats reveal tight occupancy, solid rent growth and comparatively moderate ongoing building in Orlando. Seattle and Washington, DC remain favored metros, while Sacramento and Los Angeles are moving up the list. Miami, Dallas and Atlanta, markets that previously were viewed favorably, have dropped from the top-rated list.”

NAA President & CEO Robert Pinnegear attests to the value of Market Momentum, noting the wide-range usage the report and the timely data it provides to industry investors and NAA members.

Click here for the full National Apartment Association article: www.naahq.org/orlando

For access to the full Market Momentum 2017 – Q3 click here: NAA Market Momentum

To learn more about NAA member services and sign-up: Member Services

Suburbs More Viable Than You Think?

In a recent article for Multifamily Executive, author Mary Salmonsen discussed what she learned from the MFE Conference in Las Vegas and why some suburban areas across the nation could provide favorable investing conditions for investors, asset managers, and developers.

Despite some fundamental differences and the inherent unknowns that come with penetrating a new market, multiple industry pundits believe the risks might not be as bad one may think.

“I’m convinced that, even at this point in the cycle, you can go to the suburban categories, the right kind of suburbs, and not add any risk to your investment strategy, but actually also achieve a better yield and save a risk-adjusted return,” said Jay Parsons, vice president of MPF Yieldstar, in the opening section of his panel presentation “The Nation’s Strongest Under the Radar Markets,” held Sept. 19 at the MFE Conference in Las Vegas.

Parsons didn’t overlook the obvious advantages of investing in dense, urban areas. He noted factors like construction incentives and more willing investors as main reasons why urban areas are so attractive for multifamily investments and developments. But at the same time, Parsons lists those same urban market strengths as potential barriers as well, due to the cost of investor capital and the extended time it takes to build.

On the other hand, suburban areas have their own barriers to entry. In many cases, suburban cities have more restrictive zoning laws against multifamily properties. Furthermore, suburban locals might show ‘not in my backyard’ resistance to multifamily construction. Having said that, those who can bypass suburban barriers could be in line for better yields with little to no added risk.

Zillow senior economist,  Aaron Terrazas, followed Parsons by taking a more detailed look at the flucuation of rent growth in the country’s strongest metros and cross-examining his findings with Zillow’s ZIP code-level rent appreciation data. He accredited market rent growth to specific local factors like Atlanta’s infrastructure and lifestyle investments or Sacramento being a satellite market to the Bay Area. In summary, Terrazas found that each smaller market that experienced growth had a unique factor that could make it a more attractive to investors and developers than a broader, national report might suggest.

“The reality today is everybody has to do their homework,” Terrazas said. “There’s no single national narrative. Things are local, the story’s local, and you have to look at the whole data to understand what’s happening here. You can’t just take a single national line.”

Click here to read more from Mary Salmonsen and Multifamily Executive

Employment Growth in October

Last week, the Bureau of Labor Statistics (BLS) reported the addition of 261,000 jobs to the U.S. total nonfarm payroll employment during October. The BLS also reported the headline unemployment rate dropped to 4.1 percent – the lowest rate in the past 17 years.

The rebound in employment counteracts the slump in September which can be widely-attributed to Hurricanes Irma and Harvey.

EPIC Asset Management Group

According to the BLS report, employment in the food services and drink places industry spiked in October increasing by +89,000 following September’s decrease of 98,000 due to the hurricanes. The manufacturing sector saw a rise in employment by 24,000 jobs last month while health care added about 22,000 jobs. The professional and business services industry also stayed on pace with its average monthly gain by adding 50,000 jobs to the market.

Other major industries such as mining, construction, retail, government, transportation and warehousing, and information services experienced minimal change during October.

Average hourly earnings for all employees on private nonfarm payrolls only slightly varied in October. But over the last 12 months, average hourly earnings have increased by 63 cents or 2.4 percent.

Click here for the Bureau of Labor Statistics October report in its entirety: www.bls.gov

Getting Ready to Sell Your Community

Analyzing Metrics - EPIC Asset Management Group

In a recent article for the National Apartment Association, author Les Shaver, interviewed some multifamily professionals from Chicago-based AMLI Residential to learn strategies that make selling a community easier by demonstrating uncapitalized property value and analyzing macro data.

“We want to demonstrate value for the buyers by upgrading 20 percent of the apartments, Sarah Wieckowicz, Vice President of Revenue Management at AMLI, said during the Maximize session “Leaving Occupancy Behind: Identifying the Truly Important Measures” last week in Austin. “We can show a potential buyer what kinds of returns they can get.” In other words, leaving some meat on the bone will make your property more attractive to potential buyers when it comes time to sell.

In the process, AMLI is also harnessing the power of advanced metrics. The company is utilizing their access to big data to know when to accelerate or decelerate a rehab process, understand if it’s best to sell or maintain ownership of property, and accurately inform potential and current buyers.

For the entire NAA article and more details on these selling strategies, click here.