A survey by Chicago-based TransUnion says that both large and small property managers nationwide are faring better than they did one year ago and are more easily attracting residents while increasing rental prices.
The survey of 1,248 property managers nationwide took place in early June and is being released during the 2012 National Apartment Association Education Conference & Exposition in Boston. The breakdown of survey respondents included 1,107 small (managing 200 or fewer properties) and 141 large (persons managing 201 or more units) property managers.
Almost half of respondents (48 percent) said rental prices on the majority of their units had increased since this time last year. Approximately 44 percent said rental prices remained the same. Comparatively, in the 2011 TransUnion rental survey, only 39 percent of respondents stated that such an increase occurred, with 48 percent saying prices remained the same.
“Data throughout the last year has pointed to a healthier rental market, and our survey helps validate the current strength of the rental industry,” Steve Roe, vice president of TransUnion Rental Screening Solutions, said in a statement. “The rise in rental prices, coupled with a decrease in vacancy rates and the ability to attract new residents with less effort are all positive signs for the market and rental property managers.”
Despite increasing rental prices, more property managers are finding it easier to locate prospective residents. Nearly 73 percent of respondents said it is not difficult to find residents, compared with 67 percent a year ago. The percent of respondents stating vacancy rates for their properties are between 0 percent and 5 percent increased from 81 percent in 2011 to 83 percent in 2012. Large-property managers saw this number increase from 60 percent in 2011 to 64 percent in 2012. More than 70 percent of small-property managers said they have zero vacancy, up from 66 percent in 2011.
Even with a healthier rental market, property managers continue to be concerned with attracting profitable and reliable residents for the remainder of the year. Nearly 60 percent of respondents said they are concerned or very concerned to find such tenants.
Property managers also may be cautious because more than half of survey respondents (53 percent) said they have had a renter “skip out” leaving the unit with unpaid rent or damages.
