Checking in midway through FY 2018, there are a multitude of changes and items trending in the real estate market that will impact all aspects of the rental housing industry. From a management perspective, making adjustments to meet tenant expectations and creating strategies going forward through the end of 2018 will hopefully lead to greater success in the years to come.
Current housing observations; I’m actually seeing the slowing of the rental market and more “for rent” signs outside of very desirable buildings in the best locations. Conversely, the rental rates have slowed and some areas have seen price reductions. New properties are offering price incentives along amenities laden leases. Price sensitivity in the future will be important in tenant retention and amenities in the new buildings will become less important as time goes on.
New market opportunities will be dictated by job and population growth. The ability for the city to attract businesses and keep housing affordable will become an initiative that will need to be resolved in order for future growth and development. In addition, the push to improve the roads and public transportation will need to improve in order for the future expansion.
The need to have buildings constantly work to be more efficient and to keep current with the latest technologies are also trends that will help the bottom line and maintain values. Maintaining adequate building reserves and capital reinvestment in major systems will continue to serve properties well both in the short and long term.
Keeping properties properly staffed with long term maintenance people will continue to be a challenge and providing ancillary services to the residents will continue to be in strong demand as demands of the workplace continue to increase and personal time decreases.
Providing new types of services for the properties that are more personalized in nature will continue to be in the forefront and ways to create other income will be in demand. The mobilization of accountability will also be in demand as connectivity among residents increases.
Finally, constantly training and retraining staff to provide the highest level of service will always be at the forefront to keep customers happy.
Robert Marcus is president of Robert Marcus Real Estate Co., Newton, Mass.
