Industry News | Wk of Jan 1
HOT & RELEVANT TOPICS
Now Is The Time To Examine Renters’ Insurance
Recent wildfires in California have underscored the idea that it’s time for renters and businesses alike to review their renters’ insurance policies and requirements. The wildfires have had a devastating effect and compromised a substantial amount of personal property, and renters without insurance are at the greatest risk. Property owners, meanwhile, are mixed on the idea of mandatory insurance for renters. While this covers properties more thoroughly, it also comes with an administrative burden. Read Carrie Rosenfeld’s Q & A with Sunrise Management CEO Joe Greenblatt on GlobeSt.com.
Airbnb Beats Big Property Management Company’s Lawsuit in California
Aimco’s high-profile lawsuit against Airbnb has been dismissed by a California judge. Aimco, which owns or manages approximately 50,000 apartment homes, was seeking monetary damages in addition to a court order to stop Airbnb from enabling residents to break their leases. Aimco alleges that Airbnb’s clientele of temporary renters attracts individuals with unvetted personal histories and no stake in cultivating a peaceful community atmosphere. Airbnb argued that Aimco’s ban on subleasing was not enforceable under California law. Aimco has another pending lawsuit against the home-share service in Florida. Read Megan Rose Dickey’s article on Yahoo Finance.
What’s the Verdict on Urban vs. Suburban in CRE Investment?
Recent buzz suggests that suburban markets are making a comeback and beginning to surpass urban locales for investment opportunities. That assertion largely hinges on the idea that millennials have aged and are beginning to resemble previous generations by having families and moving to the suburbs. That’s after it was initially believed the demographic would carve a different path than its predecessors, content to live in trendy loft apartments for much of their adulthood. Forward-thinking investors are not overreacting to the suburban trend, noting that millennials considering moving crave “first ring” suburban locales that are highly amenitized and transit-oriented. Read Stanley Iezman’s and Christopher Macke’s article in National Real Estate Investor.
IN THE NEWS
What the 2017 Transaction Landscape Suggest For 2018
Experts attempting to extrapolate what 2017 apartment transaction trends mean moving forward offered a bit of caution. Although transaction volume was up 5 percent in the third quarter of 2017, it masks the overall direction of things. Single asset deal volume actually fell 5 percent year-over-year, including a 16 percent year-over-year drop in September. Rising interest rates, a dearth of value-add opportunities and a forthcoming tax overhaul could also factor into transaction strategies moving forward. Read Brian Croce’s article in Multifamily Executive.
Most Common Employment Screening Mistakes and How to Avoid Them
Efficient employees create a successful company, which is abundantly apparent in the fast-paced world of multifamily. Hiring an unqualified or disruptive employee can have a lasting ripple effect, but that scenario can be avoided by hiring the right screening service. The three most common mistakes when hiring a new employee are choosing a screening service without proper research, failing to abide by the law and overpaying. That’s according to a Multifamily Insiders blog written by LLC Property Management managing partner Joe Killinger.
Things That Can Wreck Acquisition-Rehabs
No matter how much due diligence is performed when acquiring a new community with ambitions of renovating it, unexpected pitfalls can be expected. From construction issues, credit quality of existing residents and concessions and expirations, there are many hoops to jump through. In rare cases, the selling community has been known to fabricate lease signings to make the community appear that it is 95 percent occupied when it is actually around 80. Read Les Shaver’s article in UNITS magazine.