We sat down to answer a few of the most common questions that investors ask while vetting a new property management company. It is good practice for investors to interview potential property management partners before signing a contact with them. Property owners should learn about the company, its core values, staffing and workload configurations and general management experience. The goal is to ensure that the partnership will be positive and effective. We have taken a few minutes to compile answers to a few of the most critical questions asked by property owners. We hope that this is helpful in your property management vetting process.
Vacancy rates for multi-family housing in the Treasure Valley have continued to remain low for the first quarter of 2018 driving the continued construction of multi-family projects. The latest Vacancy Overview produced by Valbridge Property Advisors indicated a reported vacancy of 2.8% as of January 2018. This is down from 3.2% recorded for January 2017. The report covers most municipalities in the greater Boise area and includes roughly 17,000 units. The comprehensive report suggests strong indicators that the multi-family housing market will continue to build in the coming months.
According to the report, while vacancy rates remain low, average rents have continued to increase rising roughly 12% from 2017 to 2018. Rental data is based on a per square foot price averaging $1.02 per square foot in 2017 and $1.14 per square foot so far in 2018. This overall average may appear to be high given that the report is biased toward newer properties, however, the rise in rental rates and continued low vacancy suggest that demand remains high for multi-family units. Because the market remains favorable, projects continue to be proposed and permitted across the region.
The Southwest Idaho Chapter of NARPM recently published their Quarterly Rental Market Survey for the Boise Metropolitan Area. The purpose of this survey is to show vacancy and rental rate trends among single-family homes and multi-family units in both Ada and Canyon Counties. Survey results are displayed by type (single or multi-family unit) and number of bedrooms (1-bedroom to 5-bedroom units) for the respective county.
The survey participants were property management companies affiliated with the Southwest Idaho Chapter of NARPM and are considered to be a representative sample of the inventory of professionally managed rentals in both Ada and Canyon Counties. Market status was surveyed as of December 31st, 2017, with over 7,500 rental units represented in the survey. The findings reveal the following market conditions: