As we get closer to the new state rental rules that take effect in January, LA City Council looks to stop no-fault evictions and rent increases. The 2019 University of Southern California Casden Economics Forecast predicts Southern California multi-family rent to increase by at least $100 due to increased housing costs and below average apartment construction. We examine how tenant retention drives apartment building value and the importance of tenant retention strategies. All while multi-family landlords look at temporary furniture as a way to appeal to Millennials and Generation Z.
LA City Council Moves Forward with Eviction, Rent Increase Moratoriums
The Los Angeles City Council took a step to stop no-fault evictions and rent increases, following fears that landlords are hiking rent and removing tenants before new state rental rules take effect in January. In a 13 to 0 vote, the council instructed the city attorney to draft an emergency ordinance that would stop landlords from evicting tenants without sufficient cause, such as failure to pay rent. The council also voted unanimously to draft an ordinance that would limit rent increases for the rest of the year and block evictions for failure to pay rent if recent increases were above the coming state cap.
USC Forecasts Triple-Digit Increases in SoCal Rents by 2021
The 2019 University of Southern California Casden Economics Forecast predicts that the average Southern California apartment dweller will pay at least $100 more per month by 2021. The forecast said that while salaries increased slightly more than rents across Southern California in 2019 – indicating a slight uptick in affordability – housing costs and below-average construction of units are forcing workers to seek employment elsewhere. The annual forecast predicts that over the next two years, rent will increase over their 2019 levels by $139 in Los Angeles County, $106 in Orange County, $209 in San Diego County, $110 in Ventura County and $100 in the Inland Empire, which includes San Bernardino and Riverside counties.
How to Boost Apartment Tenant Retention
Tenant retention is a crucial way to drive value at an apartment building. There is a big cost to turning a unit and reducing those costs can result in significant operational savings. With booming apartment development throughout the West Coast, residents have a lot of options for quality apartment living. A successful tenant retention strategy is more than just providing services. Property managers need to understand the demographics, community culture and needs to retain tenants.
For Millennials in Multi-Family, Furniture is the Newest Amenity
Can providing affordable temporary furniture be an amenity that could attract young professionals to multi-family buildings? A host of big-name retailers and a furniture-as-a-service subscription are betting big on it. Fernish is one of several companies capitalizing on the growing sharing and on-demand economy redefining the commerce. With millennials and Generation Z delaying home ownership as they pay down debt, many are preferring not to be tied down by objects they will need to cart everywhere they live.
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