Here is one landlord’s open letter on why he’s getting out of the rental property business, and therefore no longer needs our newsletter. It is something he thought we should share with our readers.
It’s just too depressing reading about how landlords are being trampled by the city, county and state. I have to say, at this time, I’m delighted to not own any rental properties in Oregon.
Three years ago, I owned and operated four apartment complexes in Portland, Salem and Keizer that totaled 180 units. Although some of the rental rules and regulations at that time were starting to become burdensome, I was able to tolerate the continued intrusions and changes that the county, city and or government agencies imposed on us landlords.
Sadly, because of politics and where the bulk of the votes come from, Oregon appears to be headed into an extremely “tenant-friendly” state that basically is handcuffing landlords’ ability to place qualified tenants in their properties.
It seems like any rejected or non-qualifying applicant is free to claim discrimination and or harassment by the “bully landlord.” To me, that’s just legislatures, council members and/or city officials looking for votes. Shame on them.
I sold my properties just in time, and that’s 180 units of families that had a great landlord taking care of them.
And, I didn’t just let anyone in (as the “government” is pushing for), so I carefully screened all applicants, because it wouldn’t have been fair to the good tenants if I had just turned a blind eye and start accepting non-qualified applicants.
I feel for my previous tenants, but I couldn’t be happier to have moved on.
I truly believe landlords will soon take heed and go elsewhere where they are appreciated as the “real” taxpayers and not just people the state can walk all over.
Thanks again, and best of luck with those liberals of Oregon. I sincerely hope my message will inspire landlords in Oregon to challenge the regulatory agencies that are continuously punishing landlords just because some tenant feels wronged.
Multifamily Rents Grow More Slowly as 2019 Shapes Up to Be a Weak Year
The average U.S. multifamily rent has risen $14 over the last three months, “which is a decent performance but far short of the levels of recent years,” according to the May report from Yardi Matrix.
“Year-to-date through May, rents were up 1.2% — again, good but not up to the recent past. In fact, over the last six years, only in 2017 (1.7%) did rent growth fail to reach 2.0% year-to-date through May,” the report says.
Multifamily Rents Grow Slowly
- U.S. multifamily rents increased by $5 in May to $1,442. Because rents increased less than they did in the same month in 2018, year-over-year growth fell 50 basis points from April to 2.5%.
- Although rent gains are in line with the long-term average, 2019 is shaping up to be weaker than the last few, much more robust, years. Year-over-year rent growth has dropped 80 basis points over two months and 110 basis points over three months.
- After sharing the spotlight with Las Vegas last month as the top metros, Phoenix pulled ahead in May atop our list of major metros with a 6.8% growth rate. Las Vegas is second at 6.6%, followed by Sacramento (4.1%) and Atlanta (3.9%).
2019 Could Be Shaping Up to Be a Weak Year for Multifamily Rents
“This is notable because the bulk of rent growth tends to occur in the first half of the year. If the past is any guide, 2019 would be hard-pressed to continue the bullish outcomes of the last six years if things don’t improve quickly,” the report says.
Demand in the desert continues to show up in the year-over-year numbers, according to the report.
- Rents increased 2.5% year-over-year in May, down 50 basis points from April and 80 basis points from March. The year-to-date increase of 1.2% is the slowest rate of growth since 2011.
- The Renter by Necessity (RBN) category (3.0%) continues to grow at a faster rate than the Lifestyle category (1.7%). Only eight metros top the 2.5% overall national average in Lifestyle rents, but 22 metros top 2.5% growth in RBN rents.
- Phoenix (6.8%) overtook Las Vegas (6.6%) in May to lead the rankings. The metros are No. 1 and No. 2 in both Lifestyle and RBN rent growth, and both have increased occupancy rates of stabilized properties by 20 basis points over the past year (Las Vegas to 95.0% and Phoenix to 95.5%) despite adding a significant amount of new supply. Meanwhile, Houston (0.4%) and Seattle (0.8%) have the weakest growth.
“The National Association of Business Economists released a survey that found a growing number of prognosticators increasing the odds that a recession will start in 2020,” the report says.
“Even though a recession in the near term remains a minority opinion, however, the downside risks are growing. The biggest reason cited is trade uncertainty, with 88% of economists surveyed downgrading growth forecasts because of President Trump’s policies on trade, which include tariffs on imports from China and Mexico. The other top reasons cited for the weaker growth outlook are stock market volatility and slowing global growth,” Yardi Matrix says in the report.
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