The Memphis media recently published information pointing to a rise in rental rates and a decline in vacancy among Memphis multi-family units in Memphis (see the article here). Premier Property Management of Memphis has been seeing this same trend in the single-family homes that they have under management for real estate investors around the country. The trends have been moving toward a stabilization of rent and even slight increases in most of the neighborhoods that Premier Property Management manages properties. Here is a breakdown of the month of May for Premier Property Management:
Total Properties under Management as of 6/6: 832
Total Number of Vacancies as of 6/6: 49
Vacancy Rate: 5.89%
Number of Rental Lease signings: 40
Number of 2-Year leases: 33
Number of 1st Time Rentals: 30
Number of Re-Lease Rentals: 10
Average Rental Rate: $916
Average Deposit: $950
Real quick, I want to explain those numbers. Renting 40 properties a month - each month - is a sign of a growing company or a lot of turnover! When you see that only 10 properties were re-lease rentals, you can see that roughly 1.3% of the properties under management are being re-leased. 75% of the leases each month are occurring on brand new properties that are being leased for the first time and with 2-year leases. These are the types of statistics investors want to see as they show a thriving company that understands its market niche.
Further, out of the 49 vacant properties, a total of 4 properties have been vacant longer than 60 days and only 11 vacant longer than 30 days. That tells investors that 34 properties were added to the rental rolls in the last 30 days and those properties make up the bulk of the vacancies. Quality property management companies should be able to pinpoint with accuracy the details of their business and should know the trends of their business.
Best of luck with your investing and don't hesitate to let us know if we can assist you in any way.