Boise Property Management Blog

Corvettes and Rents

Arica Elordi - Monday, February 11, 2019

Corvettes and Rents:

What in the world would the cost of a new Corvette have in common with Boise rents? Please bear with me with my comparison. In Boise, you can buy a 2019 Corvette ZR1 for $135,895. It would be incorrect to say, that cars in Boise cost $135K. It would be wrong to say the average new Corvette in Boise is about $135K, because you can buy a 2019 Corvette Stringray for about $60,000. And there are a lot more Corvette Stingrays sold than ZR1’s.  Even within the Stingray model, you have various trims and options to choose from that cause pricing differences.

Within the last week, there have been several news reports about Boise’s sky rocketing rents. One such story referenced a one-bedroom apartment, with approximately 650 square feet renting in the $1,300’s. Unfortunately, some investors read this and now expect higher rents on their one-bedroom units. Like the Corvette, there are a lot of factors that go into pricing, and $1,300 is certainly not the Boise average.

The rent prices here in the Treasure Valley are indeed rising, but there is a lot that goes into determining those numbers. When we set rents here at First Rate property Management, we don’t just pick a number out of a hat. A lot of research and time goes into determining that RENT amount. We look at the following:

  • Location
  • Age
  • Square Footage
  • Amenities
  • Demand
  • Finishes

The below graph is the 4th quarter vacancy and rent results posted by The SW Idaho Chapter of the National Association or Residential Managers. According to the Chapter, the average rent for one-bedroom multi-family units was $738. I agree, that sounds low, and certainly not what we’re seeing within our own portfolio. First, the purpose of the Chapter’s survey is to report vacancy and rental rate trends for buildings with 2-15 units. So, this survey excludes the large and high-end downtown apartments with generous amenities. If you have a larger complex or a downtown apartment, there are other sources that we refer to on setting a rent price, which are generally much higher.

Currently FRPM’s one-bedrooms range from $750 to $925 per month. In fact, if you are looking for a one-bedroom apartment, we actually have a couple that are in a great location too. Click here. Boise is growing. Rents are increasing. And we’re seeing new product and markets open up, to include some down town and lavish apartments along with one or two Corvette ZR1s.


Arica Elordi, Leasing Team Member

First Rate Property Management, Inc.
Boise, Idaho
Contact me for more information about this blog.

4th Quarter SW Idaho Narpm Vacancy Update

Melissa Sharone - Wednesday, January 23, 2019

The SW Idaho Narpm chapter just released the 4th quarter vacancy results.  The results are pretty standard for this time of year, with vacancy up a little.  At this time of year, we find that renters don't like to move due to the holidays and cold weather.  Even in the slower time, First Rate has kept a vacancy of under 1% for the last quarter.  Getting rentals filled this time of year can be challenging so it takes some creativity with move-in specials and sometimes shorter leases.  The average rents overall are still strong for this time of year and with spring renewals we see opportunity to increase rents

Read full report here: SW Idaho Narpm Vacancy Survey



Melissa Sharone

Melissa Sharone, President 

First Rate Property Management, Inc.
Boise, Idaho
Contact me for more information about this blog.


3rd Quarter NAPRM Vacancy Results

Melissa Sharone - Wednesday, October 24, 2018

The 3rd quarter NARPM survey results are out.  Overall things still look good for this time of year.  You will notice that the vacancy for single family homes is up right now.  FRPM has found over the last month that single family home rentals are slower to get rented then the multifamily.  As the winter approaches and the Holidays get closer we anticipate the single family rentals to remain slow.   Rents overall are strong and still increasing some.  It will be interesting to see what the market does once we get through the winter months and past the holidays.

Read full report here:  3rd Quarter NARPM Survey 


Melissa Sharone, President
First Rate Property Management, Inc.
Boise, Idaho
Contact me for more information about the Rental markets in Boise and Idaho.

2nd Quarter SW Idaho NARPM Vacancy Trends

Julie Tollifson - Thursday, September 20, 2018

   The National Association of Residential Property Managers published a recent survey conducted by the SW Idaho chapter of NARPM during the month of June 2018. The survey took 7,091 total homes into account. These multi-family and single-family homes are spread across both Ada and Canyon county. 

The market is trending down heading into the winter months. According to these statistics dating back to 2014, the vacancy percentage is the lowest it’s been in quite some time considering the seasonality of this business.

First Rate Property Management’s vacancy rate in June 2018 was 0.72%. This is quite the improvement compared to last year’s 1.83%. First Rate manages a portfolio of apartment buildings, duplexes, and single family homes.

Of the 7,091 homes that were surveyed in June 2018, 2.03% were vacant. This is an opportunity for property management companies to capitalize on the market and really differentiate themselves among their competitors not only in the SW Idaho Chapter but even nationally.

   

The data shows vacancy rates to have decreased from 3.6% in Q1 to 2.0% in Q2. The rental rates in Ada County single family homes increased $149 per month per unit. We saw an increase of $6 per mont, per unit in single family homes just since the previous quarter. Assuming these trends continue, we can anticipate higher rents and lower vacancies than we’ve seen in half a decade.

You can find out more about Idaho’s premier organization of residential property management professionals at www.swidaho.narpm.org.


Julie Tollifson, Leasing Team Lead
First Rate Property Management, Inc.
Boise, Idaho
Contact me for more information about this blog.