Industry News | Wk of October 29
HOT & RELEVANT TOPICS
Gen Z is Social and Frugal, A Great Match For Co-living Developers
The generation currently filling up student housing communities watched their parents struggle through the Great Recession, so they know the value of saving money. Gen Z is also extremely social, so if saving money means living with other students, they are fine with that. As such, developers are hard at work changing shared spaces to accommodate this age group, which often prefers in-person interaction despite their digital upbringing. “Students do want some alone time, but they really prefer face-to-face interactions,” said the University of Washington Tacoma’s Patrick Clark. “And they like to save money whenever possible.” Read Shawna De La Rosa’s article in Bisnow.
How Bad Data Is Hindering
Your Leasing Efforts
As apartment operators clamor to acquire data to assist with pricing and other onsite initiatives, they should keep in mind that not all data is good data. Data is generated every time a prospect shows interest in a community, but oftentimes this data is poorly captured – and poor data collection greatly reduces the effectiveness of software designed to improve efficiencies. Poor data collection sometimes results from the habits of onsite associates, who are paid based on conversion rates and don’t always log every interaction. But failure to capture this key data can have a negative impact on pricing. Read the ViewPoint by Ian Andrews in Multi-Housing News.
Top Five Problems With Surety Bonds
In their quest to find an alternative to security deposits – which are a pain to residents and operations alike – many apartment operators are turning to surety bonds. These enable residents to save money upfront (they only pay 17.5 percent of the deposit and a bond guarantor handles the remainders) and apartment operators to expand their renter pool. But surety bonds have their drawbacks, as well. Residents often don’t understand them and surprise expenses can lead to negative reviews. In addition, surety bonds require a cosigner and are often mismanaged. And when a community makes a claim against a resident, it can take up to 30 days to recover costs. Read Reichen Kuhl’s blog on Multifamily Insiders.
IN THE NEWS
Amazon Revisits Cities as HQ2 Decision Nears
A once public search for Amazon’s second home has become shrouded in secrecy. Now, Amazon officials have revisited several locales, including Chicago, New York and Newark, according to the Wall Street Journal, and the tech-giant also has had further contact with cities such as Washington, D.C. and Miami. The lack of a second visit isn’t disqualifying for cities, the WSJ noted. In addition, Amazon has gone into excruciating detail in its search for a new home, often walking the neighborhoods in prospective new locations. Amazon CEO Jeff Bezos recently said the company plans to make its decision before the end of the year. Read Matthew Rothstein’s article in Bisnow.
Back to Basics For Multifamily Owners
As apartment operators aim to one-up the competition with deluxe amenities and the
most sophisticated technology, they should keep in mind that three old-school fundamental concepts remain the most important to renters – location, size and price. That’s according to a recent Apartment Guide report, which indicated that 62 percent of renters placed more importance on location than the unit itself. The study also revealed that an in-unit washer and dryer was most often cited as a “top of mind” desire for renters, followed by a gym and swimming pool. Read David Wilkening’s article on GlobeSt.com. Read David Wilkening’s article on GlobeSt.com.
Here’s How Proposition 10 Could Harm
Housing in California
Many companies strive for pay equity, in which A ballot measure that would allow local jurisdictions to enact rent control in California could do more harm than good. Many are viewing the measure as a way to alleviate the housing crisis in the state by providing more affordable housing options, but that’s simply not the case. According to Marcus & Millichap, Prop 10 would only benefit a select number of residents, would make the housing shortage worse and result in a deteriorating quality of rental units for working-class families. The Sacramento Bee last week reported that the measure likely will be voted down, projecting 60 percent of voters to vote no. Read Jennifer Castenson’s article in Multifamily Executive.