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Bud Zeller's Blog

By Bud Zeller | Broker in Placerville, CA
  • America's Looming Rental Crisis

    Posted Under: Market Conditions in California, Rental Basics in California, Rent vs Buy in California  |  July 5, 2014 1:47 PM  |  239 views  |  3 comments
    The number of “renter households” increased by more than half a million in 2013 in the aftermath of the Great Recession. Experts analyzing the huge growth in the renting population caution that America’s housing crisis in the years ahead will primarily concern the supply of rentals units, as they are falling far behind growing demand. The mismatch in supply and demand could cause rents to soar in price.

    Read the full story
  • Rental Payment Histories May Count in Credit Scores

    Posted Under: Home Buying in California, Rental Basics in California, Credit Score in California  |  July 1, 2014 3:13 PM  |  178 views  |  No comments

    Renters who have never been late with a rent payment will find that their stellar record wont do anything to lift their credit scores when it comes time to shop for a mortgage. But that may soon change: Two of the main credit reporting agencies, Experian and TransUnion, reportedly are starting to incorporate verified rental payment data into credit files and using it to compute the consumers' credit scores when they apply for a mortgage.

    "At a time when record numbers of first-time buyers are missing in action in the home-purchase market — many of them in part because their credit scores don't make the grade — the non-reporting of key credit records is costly to them and the economy as a whole," The Columbus Dispatch reports.

    Some companies also are stepping in to ensure renters get their on-time payment histories included when applying for a mortgage. ECredable, an alternative credit data company, says it will verify renters' payment histories that haven't been reported to the major credit bureaus, and then generate a credit report and score. Potential home buyers are then urged to present the report to mortgage loan officers and ask that the information be considered in their application for a mortgage (which the lender is required to do under federal credit regulations).

    Source: “Credit Scores Might Soon Reflect Rental Payments,” The Columbus Dispatch (June 29, 2014)

  • Landlords are Pushing Up Rents Again

    Posted Under: Market Conditions in Rancho Cordova, Rental Basics in Rancho Cordova, Rent vs Buy in Rancho Cordova  |  April 12, 2014 3:54 PM  |  524 views  |  No comments

    As apartment demand continues to rise, landlords are projected to increase their rents for the fifth consecutive year. A rise in apartment construction isn’t likely to offer relief to tenants anytime soon either, USA Today reports.

    Between 2000 and 2012, apartment rents have risen 6 percent while incomes among renters have fallen 13 percent in that time period, according to a report from Apartment List, a rental housing website that adjusts for inflation.

    "That's what we call the affordability gap," says John Kobs, Apartment List's chief executive. "I don't see that improving in the near future."

    The vacancy rate for apartments has dropped from 8 percent to 4.1 percent from 2009 to 2013, according to Reis, a commercial real estate data provider. Meanwhile, the average national effective rent has increased 12 percent to $1,083 from 2009 to 2013, according to Reis, which data reflects apartments in buildings with 40 or more units.

    During that same time period, the median price of an existing home has risen about 14 percent, according to the National Association of REALTORS®. Many renters – which surveys show want to buy a home – are unable to purchase a home due to tight credit conditions that are preventing them from obtaining financing.

    Source: “Growing Demand for Apartments Pushes up Rents,” The Associated Press (April 5, 2014)

  • The top 10 things 'Every Renter Needs to Know'

    Posted Under: Rental Basics in Sacramento, Rent vs Buy in Sacramento, Rentals in Sacramento  |  April 12, 2014 11:04 AM  |  629 views  |  No comments

    After the housing market crashed in 2008, the number of single-family renting households has grown by leaps and bounds. And it doesn’t appear like that increase is going to slow down any time soon.

    The National Association of Realtors expects that within the next 10 years, 5 to 6 million new renter households will be created.

    According to U.S. Census data, the rental vacancy rate has dropped from 8.4% in 2009 to 4.1% in 2013. With approximately 34% of all U.S. households paying rent and rental rates climbing by 3.2% in 2013, renters have to be smart and make sure they’re choosing the right place to call home.

    With that in mind, VIEW a list from Homes.com of the top 10 things every renter needs to know at: http://www.housingwire.com/articles/29482-the-top-10-things-every-renter-needs-to-know

  • Some Rents Determined by Priceline Model

    Posted Under: Market Conditions in Rancho Cordova, Rental Basics in Rancho Cordova, Rent vs Buy in Rancho Cordova  |  February 20, 2014 8:27 PM  |  548 views  |  No comments

    As rental housing demand continues to surge, more landlords are testing out dynamic pricing to figure out what to charge tenants based on real-time supply and demand—adopting a software system similar to how Priceline.com determines hotel rates and airfare, CNNMoney reports.

    Landlords use real-time supply and demand to determine what to charge tenants. Therefore, when demand for apartments is high, the software will advise the landlord to raise rents on vacant apartments. In turn, when demand drops, the software will suggest lowering rent rates. The software automatically lowers the rent based on day-to-day market conditions until a tenant takes the apartment.

    Dynamic pricing is used to determine the rent of some 5 million apartments today, says Andrew Rains, president of the multifamily division at Rainmaker Group, a company that produces one of the software packages most widely-used by landlords to determine prices.

    “When pricing is done manually, emotion enters into it,” says Rains. He adds that the software also helps avoid overpricing units that can lead to vacancies and steep losses for landlords.

    Source: “Priceline for Landlords May Determine Your Next Rent,” CNNMoney (Feb. 19, 2014)

  • Investors Target ‘Hipster’ ZIPs for Rental Returns

    Posted Under: Market Conditions in El Dorado Hills, Rental Basics in El Dorado Hills, Investment Properties in El Dorado Hills  |  December 4, 2013 11:20 AM  |  478 views  |  No comments

    Think hipsters aren't as cool as they think they are? Take a look at their effects on housing.

    The hipster lifestyle can have a “major impact on local real estate markets, and mostly in a positive way,” says Daren Blomquist, vice president of RealtyTrac. Neighborhoods that are branded as “hipster” often offer trendy restaurants, coffee shops, and other amenities — and that's likely to see property values and rental rates rise, Blomquist says. 

    Savvy real estate investors are even targeting hipster markets to purchase rental properties, betting that they will offer up steady cash flow and strong appreciation. 

    RealtyTrac analyzed ZIP codes across the country to identify “hyper-local hipster” markets that offer investors solid returns on rental properties and boast low vacancy rates. For its survey, RealtyTrac identified ZIP codes where at least 20 percent of the population is between 25 and 34 years old — prime hipster age. RealtyTrac also looked at densely populated neighborhoods that are walkable or use public transportation, and where renters account for at least 50 percent of all housing units and vacancy rates are 5 percent or less. 

    Source: “Top 25 Hipster ZIPS for Returns on Rental Properties,” RealtyTrac 11/21/13

  • Single-Family Rentals Still on the Rise

    Posted Under: Market Conditions in Folsom, Rental Basics in Folsom, Rent vs Buy in Folsom  |  October 24, 2013 12:14 PM  |  367 views  |  No comments

    Single-family rental homes are on the rise in communities nationwide in the aftermath of the housing meltdown. 

    In 32 of the country's top metropolitan regions, at least 20 percent of all occupied single-family homes were rentals in 2012. According to a USA Today analysis of U.S. Census Bureau data, that is up from just seven metros in 2006. 

    Researchers say the growth reflects changes brought by the housing bust and the enduring financial hardships ushered in by the Great Recession. Nationwide last year, 18 percent of occupied single-family homes were rentals — an increase from almost 15 percent in 2006. 

    The metro areas with the most growth in single-family rentals are those where foreclosures were most prevalent, including Las Vegas, Florida's Cape Coral area, and Stockton, Calif. Metros outside the top foreclosure hot spots have also seen bigger growth in single-family rentals than the national average, including Memphis, Dallas, and Denver.

    Source: "In More Homes, The Roof Overhead Is Rented," USA Today (Oct. 21, 2013)

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