Rental property owners want managers who are keeping up with the latest trends and keeping their eyes peeled for ways to help their clients prosper. One of the ways you can impress them is by being the “conduit” of news about lucrative opportunities in today’s fast-changing economy. You can call them about the latest industry news. Give them some ideas on how they can take advantage of today’s real estate and financial trends. Impress them with your creativity and business acumen.
Many property managers are using emails and online “newsletters” to highlight what’s happening in the rental property market and the latest trends in interest rates and financing. Mortgage Rates are Falling and Mortgage Default Rates are Rising: “Carpe Diem!” Fixed mortgage rates fell to the lowest level in six decades for the second straight week. But few Americans can take advantage of the historically low rates because they are unable to qualify for new loans or refinanced mortgages. Freddie Mac said on Thursday September 15th that the average rate on the 30-year fixed mortgage fell to 4.09 percent this week, down from 4.12 percent. That’s the lowest rate seen in 60 years, going all the way back to 1951. The average rate on the 15-year mortgage, a popular refinancing option, fell to 3.30 percent from 3.33 percent. Economists say it is likely the lowest rate on the 15-year ever. Mortgage rates tend to track the yield on the 10-year Treasury note. Worries over Europe’s debt crisis are pushing investors to shift money into safe Treasuries, forcing the yield lower.
Let your clients and any qualified residential rental property investors that now is the best time ever to find new financing on homes to buy. If they have existing mortgage loans that are at higher rates or loans that are about to expire, recommend some eager lenders in your area who will help them take advantage of these record low interest rates. Some lenders are very motivated to offer financing in areas where the number of people needing affordable rental housing meets or exceeds the current supply. Many of these lenders are lowering and even waiving the loan charges and origination fees.
Today we learned that default notices sent to delinquent U.S. homeowners surged 33 percent in August from the previous month. Why is that important? Because it’s a sign that lenders are speeding up the foreclosure process after almost a year of delays, said RealtyTrac Inc. (http://www.realtytrac.com/trendcenter/trend.html).
California, Florida and Michigan were leading the nation in foreclosure activity as of the end of August. Nationwide 1 out of every 570 housing units received a foreclosure filing in August 2011. So the number of dislocated, former homeowners continues to increase. Their income may still be adequate though, and they’ll be looking for affordable rental housing.
Lenders seized 64,813 properties in August, a 4 percent decline from the previous month and a 32 percent slump from a year earlier, according to RealtyTrac. However some industry analysts are predicting that the jump in default notices means repossessions will probably increase in coming months as more foreclosures are processed. Some incredibly good “deals” on houses and duplexes appear to be growing in number around the nation.
Let your owners know this is “the best of both worlds”—low buy-in prices and record low interest rates with many motivated lenders. That’s a “perfect storm” for increasing your client’s rental unit inventory, and increasing your income. Meantime you’re owner-clients will realize you’re the “heads up” property manager who’s looking for ways to keep them prosperous and their rental income expanding.
