Industry News | Wk of October 15
HOT & RELEVANT TOPICS
Concerns Growing About Fraudulent Resident Applications
Most apartment communities have been affected by fraudulent applications to some degree, particularly those filed online. But due to the escalating prevalence of this activity, they are not equipped to manage the issue. Research commissioned by TransUnion discovered that more than eight of ten decision makers at property management companies have experienced fraud up to 20 times over the past two years, and that rental applications are the primary driver of fraud in the industry. That includes the synthetic renter, whereby an applicant presents himself or herself as someone different. Read Paul Bergeron’s article in units magazine.
Should Your Apartment Community Get Involved With
Neighborhood Watch Programs?
Apartment communities are making a mistake if they don’t participate in local crime watch or neighborhood watch programs, according to CBI’s Joe Killinger. Participating in these programs can help deter criminal activity, create a greater sense of security, build bonds with neighbors and stimulate neighborhood awareness. Killinger says a crime watch program can work collaboratively with other civic and community activities, instructs residents how to observe and report suspicious activity and addresses quality-of-life issues for residents. Read Killinger’s blog on Multifamily Insiders.
It Isn’t Easy Being Green: Renters Dish
As apartment operators clamor to deliver the most environmentally friendly communities, many features are moving the needle for residents while some aren’t making the desired impact.
Multi-Housing News and Kingsley teamed to gather resident feedback on the issue. The correspondence ranged from requests for easier recycling, recycled dog-waste bags, a community compost and electric-vehicle charging stations to the idea that energy efficiency could be increased by repairing leaky windows. Noted one correspondent: “Stop claiming to be green and send monthly paper statements. … This is so counter what you’re trying to advocate.” Read the full article on Multi-Housing News.
IN THE NEWS
Apartment Rent Growth Accelerates in the Third Quarter of 2018
Slightly softening rent growth had many pondering whether the flourishing multifamily cycle had matured. But in the third quarter of 2018, rent growth increased by 2.9 percent. That’s up from a 2.5 percent growth in Q2. The increase reversed a pattern – at least briefly – of slowing rents since 2015. Rents had slowed as developers annually opened 300,000-plus luxury apartments since 2016, a pace projected to continue through 2019. But while the construction pace might taper, it could be immediately revived by the projected 1.56 million new households projected to form in 2019, up from 1.23 million this year. Read Bendix Anderson’s article in National Real Estate Investor.
Will Prop 10 Save the Housing Crisis?
All eyes will be on California next month, as Proposition 10 aims to repeal the Costa Hawkins Act. A win on Prop 10 would allow local jurisdictions the authority to enact rent control on residential property. But Marcus & Millichap executive John Sebree believes Prop 10 fails to address the underlying housing challenges facing the state’s residents. Sebree says a win in Prop 10 opens the door to a broad range of unintended consequences while failing to solve the housing problems it targets. Sebree believes the crisis can be solved by providing additional housing in areas that need it most, and that California needs to make it less costly to build new homes in the state. Read Sebree’s Q & A with GlobeSt.’s Lisa Brown.
Pay Parity Necessary To Close The Gender Gap In Commercial Real Estate
Many companies strive for pay equity, in which employees are compensated fairly and consistently across the board. But to be truly fair, employers can take this a step further by pursuing pay parity, whereby an employer can prove there is no pay gap throughout its workforce with regard to race, gender and age. To reach this goal, the Commercial Real Estate Women Network (CREW) recommends that real estate companies get CEOs and
C-Suite employees on board, cultivate and nurture a diverse workforce, institute company-wide training to inhibit unconscious bias and put in place ongoing pay-parity systems. Read Champaign Williams’ article in Bisnow.