Interest Rates on the Rise?
Below is a link to a recent article published in the Wall Street Journal. In the article they describe some new fees being assessed by Fannie Mae and Freddie Mac, as well as FHA. It also describes some new proposed restrictions, which will make it harder to qualify for a loan or at least require more money down. As it becomes harder to purchase a home, I would predict that the rental market is only going to continue to improve. That’s good news for Landlords. But I also look at this as an alarm for investors. Prices are still very good and with rates in the 5% range, they make a lot of sense right now. So, if you have been thinking of investing or riding the fence, now may be the time.
Boise Investment Properties
Earlier this month, I sent out some information about some properties that Mike Swope and I tied up. We assigned all 4 deals to current clients that very same day, but I also received tons of responses from clients looking at getting into a partnership deal. In some cases, I heard from clients who I didn’t even know were looking. So, the lesson I learned was that I need to be a bit more aggressive and grab these deals as fast as I can. I will certainly alert everyone the moment I grab something again.
New Client Marketing
Every month I receive a handful of postcards, email blasts, and other marketing materials from other property managers in the Boise area. I get them because they are sending them to anyone who doesn’t claim a homeowner’s exemption. I’ve had a couple clients forward me theirs and ask why they don’t see any from First Rate Property Management. Well, all of First Rate Property Management’s advertising is focused on capturing tenants, not property owners looking for a property manager. We are not looking to conquer Boise, ID. I'm completely fine with our current inventory size and have no desire to grow. However, it is hard for us to turn down current clients who continue to invest and grow their own investment portfolios and referrals to their friends or family. So, we grow each year, but our growth is very slow and controlled. I have to add that one such company sending out all of these postcards boasting about their great service also manages an HOA for one of our clients and they have failed to return any of his calls asking for the most basic information. One of the gals in our office summed it up fairly well, “Who would you rather have manage your property, someone who solicits everyone’s business and says 'Yes' to every person who calls them, or one that does no marketing and has grown over the years solely from referrals?” We're very selective, only choosing clients we are a good fit for.
Boise Area Vacancy
Our current vacancy rate (1.98%) continues to remain low compared to last year despite rising rents and deposits. The current local Boise area average vacancy rates remain about 1% higher than FRPM's. Good Job to our Leasing Department and the marketing efforts put forth.
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Tony Drost
First Rate Property Management, Inc.
