June Newsletter: Are starter homes on your radar?
What's happening in real estate
🏡 Investor Home Purchases Down 49% YoY
In the first quarter of 2023, real estate investors purchased 48.6% fewer homes compared to the last year. With increasing interest rates, investors are finding it harder to make a profit when purchasing new properties. Due to elevated interest rates, we have noticed a trend that investors have begun to move towards purchasing starter homes, homes with 1,400 square feet or less, due to the high prices and high interest rates. Starter home purchases from investors have jumped to 41% from 37% during the same period last year.
“For now, mortgage rates, which have already hit an eight-month high last month, will likely stay elevated and continue to constrain housing market activity this summer,” - Lisa Sturtevant, the chief economist at Bright MLS
Learn more about this trend and what it means for the real estate investment industry here.
Upcoming webinar
💻 Sneak Peak: Introducing Eviction Guard - Peace of mind has never been more affordable!
Something BIG is coming soon from Hemlane…
Sign up for our upcoming webinar to be one of the first to learn about our newest subscription offering: Eviction Guard
Do you feel stressed when your tenant falls behind on rent?
We understand the feelings that come with overdue rent and eviction proceedings, which is why we developed this solution to handle the pre eviction process on your behalf. We want to provide our customers with the peace of mind that if things go wrong, Hemlane will have your back for just $4.95/mo/door.
That’s why we’re thrilled to invite you to our exclusive webinar on Tuesday, July 11th @ 11AM PT. In this webinar you’ll learn all about Eviction Guard, how Hemlane navigates the pre-eviction process, and how you can secure peace of mind for your rentals.
Don’t miss this educational session with a live Q&A session at the end from the Hemlane Support team.
What's happening in real estate
🚀 Rent Prices Increase MoM in May
The latest Apartment List rent index report found that rent across the nation increased in the month of May. The percent increase for May clocked in at 0.5% MoM. This report comes as the fourth consecutive monthly increase in the rent index this year. While we are approaching the peak season where rent usually ramps up, we saw that May’s MoM increase was lower compared to the month of April (0.6% increase). The slight slowdown is not an unexpected finding as most economists continue to predict that rent inflation will cool in the coming months.
💼 National Unemployment Rate Increased To 3.7%
In the month of May, the national unemployment rate increased slightly to 3.7% compared to the previous month at 3.4%. Although the national unemployment rate has increased, many sectors saw job gains. In addition to April’s growth of job gains, May had seen the construction sector add 25,000 positions, and 2,800 jobs in the real estate, rentals and leasing sectors indicating that demand for housing remains strong.
“Even though the pace of layoffs has picked up, many businesses, particularly in transportation, healthcare, and hospitality, continue to have strong demand for workers,” Mike Fratantoni, the Mortgage Bankers Association’s chief economist
New Content from Hemlane
New Blog: Why Self Guided Tours Enhance The Leasing Experience & Increase Productivity
Why Self Guided Tours Enhance The Leasing Experience & Increase Productivity
Self guided tours are one of the latest advancements in leasing technology which allows landlords and property managers to schedule remote showings for their properties. Self-guided tours provide a new way for tenants to discover their dream rental space at their own pace.
Learn more about self guided tours by reading our blog here.
New Blog: Boosting Tenant Retention: Strategies for Landlords to Enhance Tenant Satisfaction
As a property owner or manager, creating strong tenant relations and encouraging lease renewals can significantly contribute to your business's overall success and profitability. We’re here to give you some practical tips designed to build positive relationships with your tenants, increase their satisfaction, boost renewal rates, and drive long-term prosperity for your property management business.
Click here to learn all of our tenant satisfaction strategies.
New Resource: Tenant Satisfaction Survey
Use our newest tenant satisfaction survey to better understand your relationship with your tenants. Tenant turnover is the biggest reason why rental properties become unprofitable investments. Gain valuable insights into tenant happiness, pinpoint areas of improvement, and help in making smart decisions for your rental property with our tenant survey.
Click here to get your copy and start surveying your tenants today!
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