Arizona Rental Housing Journal - February 2014

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February 2014 - Vol. 6 Issue 2Rental Housing Journal Arizona

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2. Why are “Rents” so Important to You and Your Broker?

6. Favorable Strategies for Real Estate Investors in 2014

7. RealPage® MPF Research Division Reports Tight Occupancy and Moderate Rent Growth in the U.S. Apartment Market at the End of 2013

8. Focus on the Prospective Resident

A Monthly CirCulAtion to More thAn 10,000 ApArtMent owners, property MAnAgers, on-site & MAintenAnCe personnel

The Future of Single Family & Small Multi-Family Rentals

9. Getting the Lead Out: Local Efforts to Reduce Child Lead Poisoning

13. Short Sales and Foreclosure Sales Accounted for 16 Percent of All U.S. Residential Sales in 2013

14. Housing Recovery Entering Middle Innings in 2014, as Local Market Performances Are Expected to Vary Widely

It’s hard to predict the future. The best way is to look at trends, include expert analysis and pre-

dictions from independent, highly regarded sources and not ignore the lessons taught by history. With that as a background, let’s take an “edu-cated” guess at the future of single family and small multi-family rent-als for Arizona.

Demand Population is the primary driver

of housing requirements. Generally accepted household size varies by source, but for Arizona, the current US Census number is 2.63. A recent article in the Phoenix Business Journal forecasted 10.2 million peo-ple living in Arizona by 2040, about a 60% increase, or approximately 3.8 million people. While that sounds like a long way out, it is only 27 years. From a planning perspective that is not a long time. So let’s do the math assuming this projection is cor-rect. 3.8 (new residents) divided by 2.63 (persons per household: US Census) equals 1.44 million housing units. Historically, 74.5% of housing units are single family (US Census)

leaving 1.08 million housing units. Of those 66% will be owner occupied leaving 365,985 units. Divide by 27 years equals 13,555 new single fami-ly rental units on average each year needed to meet demand. The fact remains Arizona is a growth state. We are and will continue to grow naturally, through net positive migration from other states, and new immigration.

Long term demand indicates

being a housing provider is a pro-ductive investment strategy. Further evidence was cited in my article in last month’s Rental Housing Journal Phoenix, which showed increasing rental demand over a 13-year period spanning several different market cycles.

Supply Over the last four to five years,

supply of rental property has been

I’m going to bet that you proba-bly haven’t heard many people say that they love being a land-

lord. If anything, you’ve heard the cons, hatred, and horrific stories of doing such. But, in a world where there is so much emphasis on nega-tivity, I’d like to bring our attention for a second to some of the positives of the property management indus-try. So, whether you’ve chosen to be a landlord as a career, or have been lucky enough to have inherited the job of managing rentals, there are many benefits that go along with being in this business.

First, and probably most obvious, being a property manager creates wealth. There is no denying that owning and managing property over the long term is a great money earner. There will always be a demand for housing. However, the earning potential will fluctuate with the state of the economy and vari-ous conditions within th4 housing market. In good credit conditions, there will be a higher rate of owner occupation and increasing capital values. In more constrained times, there will be more renters with high-er rents. Real estate investments are arguably the most stable and secure types of investments you can make. As property owners, you are able to use tenants’ money to pay your mortgage and build your equity, so

Love this Job

Trespasser vs. SquatterAt what point does a trespass-

er become a squatter? There is no law that this writer

knows of that directly addresses the issue. However, by looking at both terms, a landlord can determine

what direction to take if this situa-tion comes up.

A trespasser is someone who is on the property, but has no right to be there. This could be someone who breaks into a residence, usually a

vacant residence. For instance, it could be a tenant at an apartment community that is evicted from their apartment, or they are locked out of their rental property by a Constable/

Continued on page 4

Continued on page 3Continued on page 3

2 Rental Housing Journal Arizona • February 2014

RENTAL HOUSING JOURNAL ARIZONA

Why are “Rents” so Important to You and Your Broker?

During the last twelve years of apartment brokerage with the Kasten Long Commercial Group in metro Phoenix, I have brokered plenty of apartment buildings- typically between 10 - 100 units. Most of these are older, “B” and “C” class commu-nities. I’ve also had the opportunity to own, renovate, manage and sell some apartments of my own along the way. That’s been a real help in understanding challenges owners face with management.

At one time I believed amenities were the biggest factor to value. For a while I believed management was the biggest factor in determining value- or maybe the year of con-struction, or even the unit mix or the location. But these are all compo-nents of the bigger story- which is RENT. What an owner collects for rent will tell more about property value than anything. Why? Because the higher the rent, the higher the value. In almost every case, where tenants are willing to pay more rent, the value of the property is higher than the next property

Many management companies and some owners are reluctant to ‘rock the boat’ by raising the rents at a property even though they believe

they can charge more. But with vacancies across the metro Phoenix shrinking every day, by all accounts, it’s probably time for you or your management company to raise the rent. Unlike patiently hoping and waiting for market appreciation, “Rent Growth” is something owners can control in an effort to increase the value of their property. We’ve all heard the adage “it’s not how much money comes through the door- it’s how much stays.” Clearly you have a better chance of more staying if more “comes through.”

So, “Why are rents so important to you and your Broker?” Let’s do the math. Regardless of the size of your property, suppose similar properties are selling at a 6.5% capitalization (CAP) rate and you can raise the rents by $25. That increases the prop-erty value by $4,615/unit ($25 x 12 months / 0.065). If you owned a 50 unit property, the increased value would be $230,769 (50 units x $4,615/unit). So, what happens to operating expenses if you raise the rents? Nothing. This is why rental rates are so important to you and your broker.

In the past, a broker could say to a prospective buyer, “oh you can easi-ly bump rents by another $25-$50 to

support a higher value”. And I still do that, but investors in today’s mar-ket tend not to buy into the “profor-ma” value. They base their offers on existing cash flow and rents. That’s why getting the rents as high as pos-sible now is critical to maximizing value. So, HOW can I get those rents up there? After years of working with owners, managers and proper-ties, we’ve got a few tips to pass along. Here are a few keys to com-manding and getting the bigger rents.

Tips For Increasing RentsUpdating. This story has been

successfully told by the fix-n-flippers over the years and it has merit. But it is not always necessary to do a total renovation. Often simply tiling a unit or updating the cabinetry can bring higher rents. Pedestal sinks, designer vanities, quality fixtures, even simple landscape or external queues like multi-color paint schemes, some potted plants, or attractive monument signage- all support stronger rents. Recently we brokered a property with a commu-nity ‘library’ where tenants and the owner stockpiled a large inventory of books and DVDs in a common

area- offered on a free exchange basis. This created a special sense of community that the tenants were hungry for. This was a “C” property in a rough area and tenants paid $1.25/SF to live there! Another owner offered to install those wrought-iron storm-type security doors for free whenever a tenant renewed their lease. This creates ten-ant retention and loyalty making modest rent bumps a simpler propo-sition. Some owners offer free cable or even wi-fi at their properties- amenities worth paying extra for. After all, many of yesterday’s home-owners are today’s renters- why should they settle for less just because they aren’t paying a mort-gage?

Management. Cutting corners here is the quickest way to suppress rents. Whether paying for profes-sional management or self-manag-ing, owners can ill afford to be cheap. When good tenants move-out to fol-low the on-site manager to his or her ‘next’ property, it is not a coinci-dence. Good management includes quick response time to repair orders, good and timely communication, availability and flexibility.

Continued on page 5

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Sherriff Deputy pursuant to a court order and then they move in with another tenant without the permis-sion of the landlord. In any event, the trespasser has no legal standing to be in the premises. It can also be someone who may be on the prem-ises for no valid reason, not visiting a resident or anyone, but causing trouble while they are in the com-mon areas. In those situations the local authorities (i.e. police) should be able to arrest, remove the person, or put the person on notice they can no longer come on the property. If you can, try to serve the trespasser with written notice not to come on the premises again. The problem is you may see the person on the prop-erty, but they leave before the police arrive. Unless the police can catch them on the premises there may not be much that can realistically be done.

If the trespasser enters a vacant unit and stays for an extended time, for example one month, without the knowledge or permission of the owner, they should still be consid-ered a trespasser. If the owner knows someone is in their vacant home and does nothing to immediately remove the person, then there may be an argument that they are a squatter. The authorities may still remove the person, or they may take the posi-tion that it is a “civil matter” and require the owner to evict the tenant.

If the authorities say it is a “civil matter”, then written notice must be served on the squatter to move (nor-mally a five (5) day notice to vacate). If the person doesn’t move, an evic-tion can be filed. The eviction pro-cess generally takes about two (2) weeks plus to conclude.

As an example, consider the fol-lowing:

“Tenant, Riga Mortis, rents an apartment at the Happy Trails apart-ments. Riga Mortis’ estranged son and girl friend, Rye Ott and Mae Lee, move in without manager, Sandford U. Wrights, knowledge or approval. Riga Mortis can’t stand the strain of living with Rye Ott and Mae Lee, and passes away. Rye Ott invites his homeless friends, Kay Oss and Fray Cuss, to move in. Sandford U. Wrights calls the police to remove the trespassers/squatters. Officer U.B. Goode says he can’t since Riga Mortis let Rye Ott and Mae Lee live there with her approv-al, so it’s a civil matter. Sandford U. Wrights has to serve them a five (5) day notice to vacate and evict them through the courts.”

ARIZONA REAL ESTATE INVESTORS ASSOCIATION

Love ...continued from front page Trespasser ...continued from front page

that you can increase the cash flow to buy greater properties and/or cre-ate a stream of retirement income. As a property manager, you can increase rents regularly to match current market rent rates, and your management fee based on gross rents will increase simultaneously with your client’s income. It really can be a win-win situation.

Secondly, real estate is real. Managing rentals forces you to become more knowledgeable about property upkeep and home repairs. No matter how involved you may be in caring for the actual residence, you will have to understand some-thing about repairs and mainte-nance, even if you hire out the work to be done by others. So, whether you’re lining up the contractors, or putting in your own elbow grease, you’ll notice that you are more dili-gent about ensuring quality work. Fixing up an older property, or turn-ing over a rental that had been trashed or damaged by past tenants, can instill a true sense of accom-plishment.

The third reason why I love what I do is the people. I like my tenants. I would be lying if I said that I’ve liked every resident I’ve ever rented to, but if you can hit it off initially, working with them during their ten-ancy can be quite a pleasure. Some of my tenants have even become friends as well as business acquain-tances. Providing nice, well-kept homes at affordable rates is power-

ful. I’ve had the pleasure of supply-ing homes to some who otherwise wouldn’t be able to rent anywhere else based on their circumstances. Experiencing their joy of having a place to call home fueled my passion and purpose of being a landlord. I have been able to enjoy watching many families grow together through marriage, children and other life accomplishments. And let’s not forget the hundreds of encounters with some very interest-ing people who have either inquired about a property, or the many con-tractors that I employed to perform maintenance duties -- many of whom I would have never met if I were not a property manager.

These are only a few reasons why I love being a landlord. I encourage you all to take the time to step back from the weight of the job, and ask yourself, “Why am I in rental hous-ing?” We all know that being a land-lord is complex, but I believe that if you’re able to outline the positives of the industry for yourself, then when the unavoidable negatives arise you will be able to make decisions based on love and not hate.

Katie Poole – Hussa is a Licensed Property Manager, Continuing

Education Provider and Principal at Smart Property Management in

Portland, OR. She can be reached with questions or comments at

[email protected]

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served by the distressed market of REOs and short sales. While there will always be a small, but normal segment of the market that is dis-tressed, we have already returned to historical norms in terms of new Notices of Trustee Sale. Future addi-tional supply of rental property will come from other sources and repur-posing current owner occupied housing. A major consideration is the lack of new housing being built, whether intended for owner occu-pied or income purposes. Arizona has experienced several years of new homes only being built in small numbers. A conservative estimate would be about 220,000 new homes going unbuilt in Arizona based on historical averages. Over the next couple of years, this number will increase. Regardless of current demand, this will cause a certain amount of compression in housing over the long term. Abundant sup-ply of cheap product (read recent distressed volume) is over. So, sup-ply of “new” single family rental units will come from the traditional sources of the move-up market, some new builds and normal levels of dis-tressed properties.Other Factors

I realize long term projections are just that and the longer the term, the less accurate. Investors in rental housing are usually purchasing the

asset for the long term and need to consider the all available factors as they make decisions to expand their portfolio. There are many factors investors should consider in making long term investments including, but not limited to, interest rates, employ-ment, return rates on other invest-ment options, other economic fac-tors, etc.

In my opinion, most of the long term factors, including those dis-cussed in this article, are very posi-tive as it relates to owning rental property. Of course, each investment is different and stands on its own as the individual investor has his own business model that affects the investment and cash flow. Overall, an investment in income producing rental property in Arizona appears to be sound for an extended period to come.

Alan Langston Executive Director Arizona Real

Estate Investors Association 480-990-7092

www.AZREIA.org

AZREIA serves its 1700+ members through chapters in Phoenix, Tucson

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AGREEMENTTenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) understands that the additional pet(s) are not permitted unless the landlord gives tenant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises subject to the following terms and conditions:

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Electric OutletsRods

Rods

Light FixturesFloor

FloorLight Fixtures

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Doors/WoodworkDoors/Woodwork

PlumbingLocks

Locks

HeatingCeilings

CeilingsElectricity

Electrical OutletsElectric Outlets

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Rental Housing Journal Metro December 2013

“Rents” ...continued from page 2

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Accountability and incentivizing positive results are two very power-ful tools when working with on-site managers and property managers. Maintaining a daily regimen of pick-ing up trash, cleaning the laundry room, or towing stray cars shows diligence at the ownership level. Tenants come to rely on this. Good property managers cost more because they are worth it. This is always the wrong place to shave expenses. Work with your managers to develop marketing and advertis-ing plans that acheive results. Reward success and it will reward you.

Tenant Screening. So you have a few good tenants. Great. They will likely renew their leases and even pay a little more rent- if they can count on you to select decent neigh-bors for them. Otherwise you can plan on another unit turn expense before replacing them when they move out. Of course we all comply with HUD and the Fair Housing Act- it is the law. But there are ways to be selective. Watch out for the anxious tenant- they are probably getting evicted from somewhere else. Pay for tenant screening services and use them. Advise all prospects of strict tenant rules- and enforce those rules. Your good tenants are counting on you to do this- and you’re charging them more rent because of this. Rent

trends show that tenants in today’s market are willing to pay a few more dollars to live at well maintained properties with quality amenities that offer solid management. Those willing to pay a little more are gener-ally better tenants. Since 2010, when the implementation of SB1070 coin-cided with the economic and real estate collapse, our apartment mar-ket has had to evolve. Today’s ten-ants are keen on location, but also in regards to the place they call home. With so many folks preferring (or needing) to rent than attempting to buy a home, it makes perfect sense to offer a refined product. With nearly 2,500 newly constructed apartment units hitting the market in the 4th quarter of 2013* alone, it is no secret the apartment market is scrambling to fill demand. But all of this new product is “A” property in many of the high-rent districts. And there is no shortage of tenants seeking com-fortable accommodations in infill locations. Many tenants actually pre-fer smaller and older buildings with a little character that have been dressed up and are well-maintained. Back to value. With capitalization rates having moved down into the 6%-7% range in our market, there is little or no room for values to rise, due simply to falling CAP rates. With mortgage rates on the rise, owners should expect some adverse

effect on values. The best way to increase and support value is, and always has been, to increase reve-nues. While collecting late fees and laundry revenues helps, nothing like bumping the rents achieves this bet-ter. I talk to owners all the time who want to know if their property is worth $40k, $50k or maybe $60k a door? I simply ask them, “What are you getting for rent?”

Well, what ARE you getting for rent?

Scott Trevey CCIM Kasten Long Commercial Group 2821 E Camelback

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1st Quarter 2014

George Garfield:Many investors are frustrated by today’s frothy pricing of commercial real estate. Non-institutional investors, in particu-lar, are finding themselves outbid on acquisition targets. What is your advice to these investors?

Steven Orchard and Michelle Lee:Asset values are generally high

relative to underlying fundamentals due to the ample supply of invest-ment capital in the soft economy, making distressed assets with attrac-tive prices difficult to find. Non-institutional buyers can best com-pete for mid-cap, value-add invest-ments, and are most likely to find those deals outside of primary mar-kets.

Fortunately for non-institutional buyers, more capital is coming online for mid-cap deals. Equity funds and lenders are increasingly willing to transact below their stated minimum deal size. Many are forming sub-ventures to pursue small and mid-cap opportunities. Some are working

in secondary and tertiary markets in order to find yield.

These bigger platforms, however, want to accept less risk on smaller deals. As such, those looking for capital should proactively adapt to the demands of capital sources. For example, they might need to strengthen their sponsorship profile and financial capacity by securing a co-general partner relationship. They should prepare to accept meaningful risk to their position to reassure the institutional capital provider, via such measures as personal recourse, larger equity contributions or subor-dinating their fees and returns. Our most successful clients today adjust to these shifting dynamics and make it easy for institutional money to say “yes.”

Garfield:Where should investors look for invest-ment opportunities in 2014?

Orchard and Lee:We advise our clients to look at

what they already own as their best investment opportunity instead of

overpaying for new assets. Investing capital to upgrade or reposition cur-rent assets can create value and maintains a lower comparative cost basis than developing or acquiring new assets. Investors are advised to evaluate each property in their port-folio and reposition them for a long-term hold.

An owner seeking to redevelop an older property might need to use third-party, joint venture equity in concert with a bridge loan to fund their project. For example, one of our clients owns an industrial building in downtown Los Angeles that might garner $17 million if it was sold. But then the client would be hard pressed to find another suitable asset to pur-chase; a dilemma it has already encountered. We are formulating a restructure plan in which it will con-tribute the building into a new joint venture; secure a bridge loan and venture equity; and redevelop the asset into a creative office building. Our client is thereby positioned to deliver an office building for less than could a competitor that had to purchase a redevelopment property, which allows it to drive leasing with competitive rents.

A less extensive reposition may be funded with equity from the prop-erty itself, using higher leverage fixed-rate term debt. If no additional capital investment is needed, the best strategy may simply be recapi-talizing the financing for a longer term hold. In any case, we encourage clients to plan for at least a five to seven year horizon with respect to their financing.

Regardless of the strategy that is ultimately selected, investors should evaluate individual assets and their portfolios as a whole to unlock capi-tal, value and potential profit in 2014.

Garfield:Should owners consider refinancing assets in light of today’s capital markets?

Orchard and Lee:Investors should be thinking

about debt as an asset in 2014. One has to use leverage advisedly, obvi-ously. But with debt this cheap and strong inflationary pressure looming in the long term, procuring long-term fixed-rate debt is a smart invest-ing strategy. We helped a number of clients implement this in 2013 while rates rose approximately 100 basis points. Rates are fairly stable again today, but in light of the Fed’s taper-ing and economic growth, many experts agree rates will increase fur-ther in 2014. It’s also important to consider the relationship between net operating income and interest rates at the time of refinancing. If rates rise and NOI doesn’t, then loan proceeds are reduced. Does the owner expect interest rates to rise next year? Will the NOI on the prop-erty increase commensurately? How will this dynamic affect their ability to refinance when the existing loan comes due? Refinancing early may be a good choice, both from an eco-nomic and risk management stand-point.

Steven Orchard213.430.2528

[email protected]

Michelle Lee213.430.2533

[email protected]

George Garfield213.430.2521

[email protected]

Favorable Strategies for Real Estate Investors in 2014

ASK THE EXPERT is a Q&A with TRANSWESTERN experts and leaders. In this edition, George Garfield, Transwestern’s West president, talks to Steven Orchard and Michelle Lee, leaders of the firm’s structured finance group in the West, about strategies for non-institutional investors in

light of aggressive asset pricing, as well as current capital markets, economic and monetary conditions.

METRO PHOENIX APARTMENT BROKERAGE EXPERTS

Contact us today for a market update!

Jim Kasten • (602) 677-0655www.KLCommercialGroup.comJim @KLCommercialGroup.com

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CARROLLTON, Texas – The U.S. apartment sector’s performance remained healthy at the end of 2013, though the late-in-the-year seasonal slowdown that is routine for the market did occur once again. Year-end occupancy came in at 95 percent, off slightly from 95.4 percent as of third quarter. Late 2013’s annual rent growth pace of 2.8 percent was down mildly from the 3.2 percent figure posted a quarter earlier. Those find-ings reflect the performances seen across more than 7 million apart-ment units tracked by MPF Research, an industry-leading market intelli-gence division of RealPage, Inc. (NASDAQ: RP). MPF Research ana-lysts highlight the nation’s latest apartment occupancy and rent growth statistics as well as other key performance indicators for rental housing in a discussion found at www.realpage.com/MPFQ4-2013-Report.

“Late 2013 performance results

were encouraging, viewed in light of the fact that completions ramped up during the time period that there’s a seasonal lull in demand,” said MPF Research vice president Greg Willett. “This definitely was a point of vul-nerability for the apartment sector because of the timing of new supply reaching the finish line, and we got past this period without significant damage.”

The number of units in properties that were finished during the final three months of the year jumped to 53,327 across the nation’s largest 100 metros, up from quarterly comple-tions that had averaged roughly 36,000 units during the initial three quarters of the year. Calendar 2013 new supply totaled 163,155 units. While apartment demand fell short of deliveries specifically during the fourth quarter, calendar year absorp-tion of 155,491 units proved about in line with the total additions.

“With an increase in the number

of units moving through initial lease-up, overall product availability has grown of late,” according to Willett. “However, new supply hasn’t result-ed in net move-outs at existing prop-erties, where the occupied unit count actually is up a little on an annual basis.”

The impact of new supply coming on stream is more apparent in rent growth statistics than in occupancy rates, MPF Research analysis shows. Annual rent growth in the newer, top tier of existing product cooled to 1.8 percent at the end of 2013, compared to increases of 3.1 percent in 1990s-era projects and 3.8 percent in the stock built in the 1980s and 1970s.

“Middle-market properties are in the sweet spot for overall perfor-mance right now,” according to Willett. “Only a handful of units are available in that product niche across most metros, and the residents living in that stock generally can’t afford to buy housing or to rent the high-end

new apartment supply that’s being delivered.”

Among large individual metros, Denver-Boulder and San Jose tied for the #1 position on the list of the country’s annual rent growth leaders during 2013. Pricing for new leases grew 7 percent in both locales. Pricing increases were nearly as big in Oakland and Portland, both post-ing 6.6 percent jumps, and San Francisco, where rents rose 6 per-cent.

Additional large markets on the annual rent growth leader board were Seattle-Tacoma (5.5 percent), Miami (5.2 percent), West Palm Beach (4.9 percent), Austin (4.8 per-cent), and Houston (4.4 percent).

Metros that just missed the cut-off point for the best-performers list included Atlanta, Fort Worth, Nashville, Orange County, and San Diego.

With the run-up in apartment con-

RealPage® MPF Research Division Reports Tight Occupancy and Moderate Rent Growth in the

U.S. Apartment Market at the End of 2013Occupancy is at 95 percent, with rent growth registering at an annual pace of 2.8 percent.

...continued from page 11

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Life is full of interruptions. Yet we must find a way to strike a balance so that all the URGENT things com-ing at us do not pull us away from the most important tasks at hand. In the property management industry, there are urgent owner requests, res-ident complaints, maintenance emer-gencies and employee disputes; just to name a few. While all of these issues must be handled in a prompt, professional manner, the business of renting apartments must still remain a priority of the leasing office. Since interruptions are so common in this industry, I am often asked for advice on how to handle these situations. I would like to respond by sharing the story of two entirely different shop-ping experiences:

When I placed my first call, I was just getting ready to hang up when the phone was answered on the sev-enth ring. The consultant spoke so quickly, that I could only make out the name of the community before

she said, “Please hold.” When she came back on the line she said, “Sorry about that. I’m working alone and the phone is ringing off the hook!” She asked how she could help me, and I inquired about apart-ment availability. She said there were a couple of 2 bedrooms open, and then said, “Hang on and I’ll grab my book.” She set the phone down, without putting me on hold, and I overheard how she raised her voice to someone in the background. When she came back on the line she apolo-gized for the delay, and immediately began to quote pricing. She asked if I would like to come by, and I agreed to meet with her in an hour. The con-sultant offered directions and then asked for my name and telephone number; “in case something comes up.”

At the second place I called, the phone was picked up on the second ring. The consultant clearly identi-fied the community by name, and

introduced herself. She asked for my name early in the conversation and used it to establish a rapport with me. I could hear a telephone ringing in the background and said, “I don’t mind holding if you need to get that.” She replied, “Thanks, but that’s what I have voice mail for.” I felt like I was the reason she got out of bed that morning, as she made me feel like I was her most important business for the day! She took the time to inquire about my needs and then described an apartment that would best meet my specific require-ments. The consultant invited me to come by to see the apartment, and let me pick a time that was most conve-nient for me.

I arrived on time, within an hour, at the first community that I called. There was a sign on the door stating that someone would be back in approximately 10 minutes. I tried the door and it was unlocked, so I went inside and began to tour the cabana

while I was waiting. The leasing con-sultant returned shortly and seemed surprised to see someone waiting. She did not remember our appoint-ment, until after I reminded her of our recent phone contact. She apolo-gized and offered me a seat, stating that there had been several mainte-nance emergencies earlier that day. In fact, she was waiting for a water heater to be delivered at any moment. The consultant did not obtain any further information from me, but recalled we had discussed a 2 bed-room. She pulled out a couple of floor plans to go over with me, but during this process the phone kept ringing, and she repeatedly answered it. She did not excuse herself when picking up the phone, and each time, I was

left sitting there to wait until she finished each call. Just as we were heading out to view the apartment, the contractor with the water heater

Focus on the Prospective Resident

...continued on page 10



480.963.3416 regionalaz.com

By Jo Becker, Education/Outreach Specialist, Fair Housing Council Serving Oregon and SW Washington

A 2013 study trumpets the efforts by over a dozen local municipalities across the country that have enacted local lead laws.

While other lead hazards exist (occupational, recreational, etc.), most often lead poisoning is a result of ingesting lead tainted dust, paint, or soil in or around homes built before 1978. According to the National Center for Healthy Housing’s website:

Since lead hazards are more prev-alent in older and substandard hous-ing, lead poisoning is a concrete expression of the affordable housing crisis; it is more common among poor children, children of color, and those living in older housing. Responsible property management, enforceable housing quality stan-dards that are both practical and cost-effective, and increased resourc-es are needed to protect high-risk

communities and preserve the nation’s affordable housing stock.

According to said Katrina Korfmacher, Ph.D, co-author of the study, the extent of the medical and behavior damage caused by lead poisoning coupled with “…the real-ization that the economic cost of lead

poisoning in the form of medical care, special education, and criminal justice are frequently borne by local communities and taxpayers – [has] given rise to several community-based efforts to make homes lead safe.”

The study, published in the Journal

of Health Politics, Policy, and Law, found that local laws can be highly effective tools to address lead haz-ards. By way of example, the City of Rochester saw a 68% decline in the number of children with elevated blood lead levels since the city’s law went into effect in 2006.

“Lead safety is largely a function of maintenance – intact leaded paint is typically not hazardous unless it is disturbed and released into the envi-ronment;” according to Korfmacher. “…lead hazards are related to how owners maintain houses that contain lead paint… The Rochester model accepts as its premise the critical need to gain entry to the highest risk housing. This was the rationale for targeting rental housing over owner occupied and for establishing a high-er standard for inspection within geographically designated high risk areas.”

Visit www.urmc.rochester.edu/news/story/index.cfm?id=3823 to read the University of Rochester Medical Center article on the study.

Getting the Lead Out: Local Efforts to Reduce Child Lead Poisoning

...continued on page 10



Focus ...continued from page 8

Lead ...continued from page 9

showed up. For a moment, the con-sultant seemed unsure as to what she should do. She asked the con-tractor to “wait a second,” and then turned to me and explained that she was going to have to let this man into an apartment to replace a leaky water heater. She said, “It’ll only take a minute.” She offered me a seat in the cabana while I waited and told me there were soft drinks in the refrigerator. She said I should “help myself.” I waited for over 10 min-utes, and then figured that I had come at a bad time. I decided to leave, and showed myself out.

At my next stop, the consultant greeted me warmly and invited me to have a seat at her desk. She pulled out a guest card she had started and handed me a packet of literature. This packet included everything from floor plans to area information. She said she had also enclosed the address and phone number of the elementary school since I had men-tioned my son was in kindergarten.

As she began to ask more specific questions about my needs, the tele-phone rang several times. The con-sultant let voice mail pick up the calls, but then she finally reached

over and turned the ringer off. She said, “I don’t know about you, but that’s really distracting for me.” After we completed the guest card, she asked if I would like to see the clubhouse area before we headed out to take a look at the model. As we stood, a mail carrier came in with several packages and stated that they were missing apartment numbers. The leasing consultant was very kind as she explained that she was just going out to show an apartment. She invited him to come back in about 20 minutes or said he was welcome to leave the parcels and she would look up the apartment numbers when we were done.

As we were walking the grounds on the way to the model apartment, the consultant was approached by two maintenance workers who had questions about a problem. She was very professional as she graciously asked them to wait, and prevented them from discussing the problem in front of me. Once we reached the model apartment, the consultant gave a flawless presentation of its many unique features and advan-tages. She was able to relate specific features as personal benefits because she had stayed focused during the qualifying portion of our visit. She remembered AND noted things that were most important to me. The con-sultant was able to make strong, confident closing attempts, since she

had sought to satisfy my needs by giving me her undivided attention.

How do you make a prospective resident feel important, when you have a multitude of urgent interrup-tions crying out for your attention? Are you able to focus on the prospec-tive resident and make their needs a priority? If not, you have probably lost the sale. It would be better to phone your appointments prior to their arrival and reschedule, rather than have them come out when you know you can’t give them your undi-vided attention. Of course this will probably cause some “inconve-nience.” However, in the long run, they will appreciate your consider-ation and long remember your thoughtfulness. If you were looking for a new home, how would you want to be treated?

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In an informal study of our own, FHCO found that 37% of landlords still don’t know it has been illegal under the federal Fair Housing Act to deny housing to an applicant simply because there are children in the house-hold since 1988, even in pre-1978 prop-erties. You can also find additional information on fair housing law and familial status protection at www.FHCO.org and www.FHCO.org/fami-lies.htm, respectively. We also offer lead-related information, including required pamphlets and disclosure forms as well as additional lead articles at www.FHCO.org/lead.htm.

This article brought to you by the Fair Housing Council; a nonprofit serving the state of Oregon and SW Washington. All rights reserved © 2014. Write [email protected] to reprint articles or inquire about ongo-ing content for your own publication.

To learn more…Learn more about fair housing and /

or sign up for our free, periodic news-letter at www.FHCO.org.

Qs about this article? ‘Interested in articles for your company or trade asso-ciation?

Contact Jo Becker at jbecker@FHCO.

Vis it us at

www.rentalhousingjournal .com

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Tight Occupancy ...continued from page 2

struction starts seen in late 2012 and early 2013, scheduled deliveries in the nation’s 100 biggest metros climb to 234,700 units in 2014. Demand is anticipated to rise too, thanks to an improving outlook for the economy generally, and for job production specifically. But apartment absorp-tion probably won’t quite keep pace with product additions in 2014, according to MPF Research analysts, who think occupancy will cool mild-ly to 94.6 percent by the end of the year. The firm forecasts rent growth of 2.6 percent over the coming year, with middle-market product con-tinuing to achieve price increases well above the upturns in the newer, luxury property segment.

While completions will accelerate in 2014, MPF Research anticipates that construction starts will move in the opposite direction. “We’re already seeing the number of units at the starting gate hit a plateau or actu-ally decline in most markets,” Willett said. “It looks like the future new supply beginning construction in 2014 will dip at least 10 percent from 2013’s total, and the decline could be

as much as 20 percent.”Fewer completions in 2015 likely

mean that 2014’s overall revenue growth performance will mark the low point for the current cycle. “The big-picture story for the apartment market is that we’re in a cycle where performances will remain solid for a long time, though they won’t be at the spectacular levels that were recorded in the early part of the recovery process,” according to Willett. “Overall expectations for investment returns remain attractive with only limited downside risk.”

About RealPage Located in Carrollton, Texas, a suburb of Dallas,

RealPage provides on demand (also referred to as “Software-as-a-Service”

or “SaaS”) products and services to apartment communities and single fam-ily rentals across the United States. Its

on demand product lines include OneSite® property management sys-

tems that automate the leasing, renting, management, and accounting of con-

ventional, affordable, tax credit, student living, senior living and military hous-ing properties; LeaseStar™ multichan-

nel managed marketing that enables owners to originate, syndicate, manage and capture leads more effectively and

at less overall cost; YieldStar® asset optimization systems that enable own-ers and managers to optimize rents to

achieve the overall highest yield, or combination of rent and occupancy, at each property; Velocity™ billing and

utility management services that increase collections and reduce energy

costs; LeasingDesk® risk mitigation systems that are designed to reduce a

community’s exposure to risk and lia-bility; OpsTechnology® spend manage-ment systems that help owners manage

and control purchasing expenses; and Compliance Depot™ vendor manage-

ment and qualification services to assist

a community in managing its vendor program. Supporting this family of

SaaS products is a suite of shared cloud services including electronic payments,

document management, decision sup-port and learning. RealPage’s

MyNewPlace® subsidiary is one of the largest lead generation apartment and

home rental websites, offering apart-ment owners and managers qualified,

prospective residents. Through its Propertyware subsidiary, RealPage also provides software and services to single-family rentals and low density, central-

ly-managed multifamily housing. For more information, call

1-87-REALPAGE or visit www.real-page.com.

Annual Rent Growth Leaders Calendar 2013

Rank Metro Annual Rent Growth

1 (Tie) Denver-Boulder 7.0%

1 (Tie) San Jose 7.0%

3 (Tie) Oakland 6.6%

3 (Tie) Portland 6.6%

5 San Francisco 6.0%

6 Seattle-Tacoma 5.5%

7 Miami 5.2%

8 West Palm Beach 4.9%

9 Austin 4.8%

10 Houston 4.4%

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ApartmentNewsHalfPortrait.indd 1 9/12/2012 8:41:34 AM

We have been waiting for a new beginning for some time. 2013 was good, and

much better than previous years. Let’s focus on this year as being even better. So what does “being even bet-ter” mean?

In all probability, this will mean different things to each one of us. However, I would venture to say that there will be a few items that we would nearly all appreciate. For example, what about more consider-ate tenants? How about 10% or more rent increases? How about no main-tenance or repair surprises?

There are undoubtedly more examples I could present. But are these really realistic? Could we raise all our rents by 10%? Really? Would you expect tenants to be more con-siderate of landlords? Think about how many of them are in survival mode, only one paycheck away from being unable to pay their rents. Our properties will always need mainte-nance or repairs. A new home might have a poor roof installation and experience a slow leak that after months of soaking the attic insula-tion finally shows a wet spot on the ceiling.

The bottom line is that running our rental business could always be better. Being a landlord means being prepared for surprises. Managing rentals means knowing the laws and diligently following them. Having tenants means being sensitive to them and treating them fairly.

2014 gives us another opportunity to be better landlords, improve the quality of our tenants, our units, and our bottom lines. I’ve said this before, and I say it again, be as knowledgeable as possible, treat people with respect, and follow the law and Fair Housing laws diligent-ly. Focus on 2014 as being the best year you have ever experienced, whatever that means to each of us

Happy New Year for 2014!



IRVINE, CA – RealtyTrac® today released its December and Year-End 2013 U.S. Residential & Foreclosure Sales Report, which shows that U.S. residential properties, including sin-gle family homes, condominiums and townhomes, sold at an estimated annual pace of 5,167,255 in December, a less than 1 percent increase from the previous month and a 10 percent increase from December 2012.

Counter to the national trend, annualized sales volume declined from a year ago in 18 of the nation’s 50 largest metropolitan statistical areas and was down in five states: California, Arizona, Nevada, Rhode Island and Oregon.

The national median sales price of U.S. residential properties -- includ-ing both distressed and non-dis-

tressed sales -- was $168,391 in December, virtually unchanged from November and up 2 percent from December 2012.

The median price of a distressed residential property -- in foreclosure or bank-owned -- was $108,494 in December, 38 percent below the median price of $174,401 for a non-distressed residential property.

The report also shows that short sales and foreclosure-related sales -- including both sales to third party buyers at the public foreclosure auc-tion and sales of bank-owned prop-erties -- accounted for a combined 16.2 percent of all U.S. residential sales in 2013, up from 14.5 percent of all sales in 2012 and up from 15.2 percent of all sales in 2011.

“It may surprise some to see dis-tressed sales rising in 2013 given that foreclosure starts dropped to a sev-en-year low for the year,” said Daren Blomquist, vice president at RealtyTrac. “And while short sales did trend lower in the second half of the year, there are still more than 1.2 million properties in the foreclosure process or bank-owned, providing a sizable pool of inventory that the housing market is in the process of

absorbing. Meanwhile, non-dis-tressed sellers have not listed their homes for sale in droves, helping to keep the distressed share of sales at a stubbornly high level.”

Other high-level findings from the report:

• Sales of bank-owned properties (REO) accounted for 9.3 percent of all U.S. residential sales in December, up from 8.7 percent in the previous month and 9.2 per-cent in December 2012.

• States with the highest percent-age of REO sales in December were Nevada (18.9 percent), Michigan (18.4 percent), Ohio (17.8 percent), Arizona (15.7 per-cent), and Illinois (14.7 percent).

• More than 436,000 REO proper-ties sold in 2013, accounting for 9.3 percent of all U.S. residential sales, up from 9.1 percent in 2012 and up from 8.7 percent in 2011.

• Short sales (where the sale price is below the total amount of out-standing loans secured by the property) accounted for 5.7 per-cent of all U.S. residential sales in December, up from 5.1 percent in

November but down from 6.7 percent in December 2012.

• States with the highest percent-age of short sales in December were Nevada (15.3 percent), Florida (14.4 percent), Illinois (9.0 percent), Maryland (8.2 per-cent), New Jersey (7.9 percent), and Michigan (7.2 percent).

• More than 256,000 short sales occurred in 2013, accounting for 5.8 percent of all U.S. residential sales, up from 4.9 percent of all sales in 2012 but down from 6.0 percent of all sales in 2011.

• Sales to third-party investors at the foreclosure auction account-ed for 1.2 percent of all U.S. resi-

Short Sales and Foreclosure Sales Accounted for 16 Percent of All U.S. Residential Sales in 2013

Up From 14.5 Percent of All Sales in 2012 Despite

Declining Short Sales Late in Year; Share of Sales to Third-Party Buyers at Foreclosure

Auction Doubles in 2013; Cash Sales and Institutional Investor Purchases Also Up

Substantially for Year



SEATTLE, Jan. 23, 2014 /PRNewswire/ -- National home val-ues completed 2013 on a high note, ending the fourth quarter up 6.4 per-cent year-over-year, a robust bounce off the bottom that is beginning to tail off in most areas and could cause problems in a handful, according to the fourth quarter Zillow® Real Estate Market Reportsi. The U.S. Zillow Home Value Indexii stood at $169,100 as of the end of the fourth quarter, up 1.4 percent from the end of the third quarter, and 0.6 percent from November. After peaking at 7.1

percent in August, the pace of annual home value appreciation fell below 7 percent throughout the fourth quar-ter.

Metro markets that were earliest to begin their recoveries and that had been showing the most robust home value appreciation throughout much of the year, including Southern California and the Bay Area, largely cooled off in the fourth quarter. Annual appreciation rates in Los Angeles, San Diego, San Francisco and San Jose slowed or were flat in each month of the fourth quarter

compared to the month prior, a wel-come sign in markets that risk cross-ing over into bubble territory as ris-ing mortgage interest rates create affordability issues for homebuyers.

Looking ahead:As the market enters 2014, nation-

al appreciation rates are expected to slow considerably. Nationwide, home values are expected to rise another 4.8 percent through December 2014, according to the Zillow Home Value Forecastiii. But local market conditions will not nec-essarily follow national conditions, a trend that may cause confusion and uncertainty among homebuyers and sellers. Zillow expects all but one of the nation’s 35 largest metro areas (St. Louis, -3.1 percent) to show appreciation this year, but the expect-ed annual appreciation rates vary from 16.1 percent in Riverside, Calif., to just 0.4 percent in Kansas City. None will approach the often break-neck pace set in 2013.

“The housing recovery is entering the middle innings after an incredi-ble run in 2013. Below the surface of last year’s market, a number of

unsettling trends started to emerge as a result of rapid and ultimately unsustainable appreciation, setting up a bit of a mixed bag for 2014,” said Zillow Chief Economist Dr. Stan Humphries. “Affordability issues will help put the brakes on many markets that saw huge appreciation rates, like California and the Southwest, creating volatility that could potentially cause whiplash for homebuyers and sellers. At the same time, we expect more homes to be available this year as more sellers enter the market and more homes get built, and a decline in investor competition should make for a more hospitable market for many buyers. While a truly ‘normal’ market remains a ways off, we expect to take more steps in that direction as appre-ciation moderates, negative equity recedes, federal stimulus is with-drawn and foreclosures wane.”

Among the largest 35 metro mar-kets covered by Zillow, all but three (St. Louis, -3.8 percent; Indianapolis, -2.1 percent; and San Antonio, -0.8 percent) showed annual apprecia-tion in 2013. Home values in two of

Housing Recovery Entering Middle Innings in 2014, as Local Market Performances Are

Expected to Vary WidelyIn Q4 2013, Appreciation Slowed from Summer Peaks; Formerly Boiling Markets like Bay Area Reduced to a Simmer, According to Zillow Fourth Quarter Real Estate Market Reports - U.S. home values ended 2013 up 6.4 percent year-over-year, to a Zillow Home Value

Metropolitan Areas

Zillow Home Value Index Zillow Home Value Forecast

Q4 2014

Month-Over-Month Change

Year-Over-Year Change

Bottom in Home Values

Change in ZHVI, Q4-2013-Q4 2014

United States $169,100 0.6% 6.4% 2012-01 4.8%New York, NY $367,500 0.4% 6.1% 2012-06 3.0%Los Angeles, CA $500,400 1.0% 18.9% 2012-02 8.7%Chicago, IL $178,000 1.1% 9.5% 2012-05 3.6%Dallas-Fort Worth, TX $143,600 -0.2% 4.4% 2011-11 2.6%Philadelphia, PA $193,200 0.1% 2.9% 2012-08 1.5%Houston, TX $142,500 -0.7% 3.2% 2013-12 1.3%Washington, DC $344,900 0.7% 9.5% 2011-10 3.7%Miami-Fort Lauderdale, FL $183,400 0.9% 17.5% 2011-09 6.3%Atlanta, GA $136,300 1.5% 15.6% 2012-07 7.7%Boston, MA $350,800 0.6% 8.4% 2011-12 2.8%San Francisco, CA $642,900 0.8% 20.4% 2012-02 7.5%Detroit, MI $105,300 1.5% 21.0% 2011-10 6.2%Riverside, CA $256,400 1.1% 27.9% 2012-02 16.1%Phoenix, AZ $188,200 0.3% 11.8% 2011-01 3.6%Seattle, WA $309,100 0.3% 10.3% 2012-01 5.9%Minneapolis-St Paul, MN $199,000 0.6% 10.0% 2012-01 2.9%San Diego, CA $439,800 0.6% 17.4% 2012-01 6.8%St. Louis, MO $130,300 -1.4% -3.8% 2012-04 -3.1%Tampa, FL $134,400 1.1% 16.3% 2011-12 7.4%Baltimore, MD $237,000 0.5% 5.9% 2012-04 3.3%Denver, CO $244,200 0.5% 9.0% 2011-10 2.8%Pittsburgh, PA $119,300 0.1% 6.0% 2008-03 2.3%Portland, OR $259,800 0.5% 11.5% 2012-01 4.8%Sacramento, CA $305,500 0.9% 23.7% 2012-02 11.6%San Antonio, TX $143,000 -1.6% -0.8% 2011-03 1.2%Orlando, FL $153,000 1.4% 19.3% 2012-02 10.1%Cincinnati, OH $131,300 0.2% 4.3% 2012-11 1.0%Cleveland, OH $116,300 0.0% 2.2% 2012-03 0.8%Kansas City, MO $137,700 -0.8% 1.5% 2011-10 0.4%Las Vegas, NV $167,400 0.7% 28.1% 2012-02 7.9%San Jose, CA $741,500 0.2% 15.6% 2011-08 5.3%Columbus, OH $137,500 1.3% 8.2% 2012-02 4.0%Charlotte, NC $147,200 0.5% 6.0% 2012-03 2.4%Indianapolis, IN $117,600 -2.2% -2.1% 2011-10 1.2%Austin, TX $197,600 -0.5% 4.7% 2013-12 1.1%

... continued on page 15Col

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02



the top 35 metros, Denver and Pittsburgh, ended 2013 above their pre-recession peaks.

National rents rose by 0.7 percent in the fourth quarter compared with the third quarter, to a Zillow Rent Indexiv of $1,302. Year-over-year, rents nationwide rose 2.4 percent. A total of 4.84 out of every 10,000 homes nationwide were foreclosed upon as of the end of the fourth quarter, down 0.4 homes per 10,000 from the third quarter and down 1.2 homes per 10,000 year-over-year.

Metropolitan Areas Zillow Home Value Index Zillow Home Value Forecast

Q4 2014 Month-Over-Month Change Year-Over-Year Change Bottom in Home Values Change in ZHVI, Q4-2013-Q4 2014

About Zillow: Zillow, Inc. (NASDAQ: Z) operates the largest

home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that

help people find vital information about homes, and connect with the best local professionals. In addition, Zillow oper-

ates an industry-leading economics and analytics bureau led by Zillow’s Chief

Economist Dr. Stan Humphries. Dr. Humphries and his team of economists

and data analysts produce extensive housing data and research covering

more than 450 markets at Zillow Real Estate Research. Zillow also sponsors

the quarterly Zillow Home Price Expectations Survey, which asks more

than 100 leading economists, real estate experts and investment and market strategists to predict the path of the

Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio

includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow

Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Agentfolio®,

Mortech®, HotPads™ and StreetEasy®. The company is head-

quartered in Seattle.

Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions, StreetEasy

and Agentfolio are registered trade-marks of Zillow, Inc. HotPads and Digs are trademarks of Zillow, Inc.

i The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets.

The reports are compiled by Zillow Real Estate Research. For more infor-

mation, visit www.zillow.com/research/. The data in Zillow’s Real

Estate Market Reports is aggregated from public sources by a number of

data providers for 929 metropolitan and micropolitan areas dating back to 1996.

Mortgage and home loan data is typi-

cally recorded in each county and pub-licly available through a county record-er’s office. All current monthly data at

the national, state, metro, city, ZIP code and neighborhood level can be

accessed at www.zillow.com/local-info/ and www.zillow.com/research/data. ii

The Zillow Home Value Index is the median estimated home value for a

given geographic area on a given day and includes the value of all single-

family residences, condominiums and cooperatives, regardless of whether they

sold within a given period. It is expressed in dollars, and seasonally

adjusted. iii The Zillow Home Value Forecast uses data from past home

value trends and current market condi-tions, including leading indicators like

home sales, months of housing invento-ry supply and unemployment, to pre-

dict home values over the next 12 months for the nation and for more

than 250 markets across the country. iv The Zillow Rent Index is the median

Rent Zestimate (estimated monthly rental price) for a given geographic area

on a given day, and includes the value of all single-family residences, condo-

miniums, cooperatives and apartments in Zillow’s database, regardless of

whether they are currently listed for rent. It is expressed in dollars, and is

not seasonally adjusted.

SOURCE Zillow, Inc.

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dential sales in December, up from 1.1 percent in November and up from 0.8 percent in December 2012.

• Major metros where third party foreclosure auction sales accounted for at least 2.5 percent of all residential sales included Atlanta (4.7 percent), Orlando (3.9 percent), Miami (3.9 per-cent), Tampa (3.4 percent), Columbia, S.C. (2.8 percent), Las Vegas (2.8 percent), and Charleston, S.C. (2.8 percent).

• More than 48,000 U.S. properties sold to third parties at foreclo-sure auction in 2013, accounting for 1.0 percent of all U.S. residen-tial sales, up from 0.5 percent of sales in 2012 and 0.5 percent of sales in 2011.

• All-cash purchases accounted for 42.1 percent of all U.S. resi-dential sales in December, up from a revised 38.1 percent in November, and up from 18.0 percent in December 2012.

• States where all-cash sales accounted for more than 50 per-cent of all residential sales in December included Florida (62.5 percent), Wisconsin (59.8 per-cent), Alabama (55.7 percent), South Carolina (51.3 percent),

and Georgia (51.3 percent).

• For all of 2013, 29.1 percent of U.S. residential sales were all-cash purchases, but the percent-age trended substantially higher in the second half of the year. The 29.1 percent in 2013 was up from 19.4 percent in 2012 and 20.6 percent in 2011.

• Institutional investor purchases (comprised of entities that pur-chased at least 10 properties in a year) accounted for 7.9 percent of all U.S. residential sales in December, up from 7.2 percent the previous month and up from 7.8 percent in December 2012.

• Metro areas with the highest per-centages of institutional investor purchases in December included Jacksonville, Fla., (38.7 percent), Knoxville, Tenn., (31.9 percent), Atlanta (25.2 percent), Cape Coral-Fort Myers, Fla. (24.9 per-cent), Cincinnati (19.3 percent), and Las Vegas (18.2 percent).

• For all of 2013, institutional investor purchases accounted for 7.3 percent of all U.S. residen-tial property purchases, up from 5.8 percent in 2012 and 5.1 per-cent in 2011.

RealtyTrac Inc. (www.realtytrac.

com) is the leading supplier of U.S. real estate data, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 100 million homes nationwide. This infor-mation includes property characteris-tics, tax assessor records, bankruptcy status and sales history, along with 20 categories of key housing-related facts provided by RealtyTrac’s wholly-owned subsidiary, Homefacts®. RealtyTrac’s foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate profes-sionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

Housing Recovery...continued from page 14

Short Sales ...continued from page 13

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Documents

Arizona Rental Housing Journal - February 2014