Rental rates going up in Cd'A area - Coeur d'Alene Press: Local News

Rental rates going up in Cd'A area

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Posted: Monday, April 25, 2011 12:00 am

COEUR d'ALENE - A tightening market has increased rental rates on houses and apartments in the Coeur d'Alene area, according to local property managers.

"We are starting to see an upward trend," said Nanci Hawkins, president of Rental Property Management in Coeur d'Alene. "Rents are coming up, and that's been driven by less availability."

Her company's average turnover - the period of time from listing to rental - is currently about two weeks, Hawkins said. Many properties are being rented soon after they become available, and rates going up.

Houses that rented for $1,200 three years ago are renting for $1,400 or $1,500 per month in 2011, she added.

"It's going to be a good market this year," Hawkins said. "Traditionally, rentals move ahead of the real estate market, either good or bad."

At Resort Property Management, a Coeur d'Alene firm that lists apartments, condos and houses for rent, the overall vacancy rate is about 6 percent, president Andy Golmicz said. Usually the percentage is slightly higher, around 7 or 8 percent.

"What we've seen is the market is definitely tightening up," Golmicz said.

As of March 2011, roughly 35 percent of the firm's tenants had lost their homes to foreclosure. Many of those tenants, unable to afford a mortgage, rented houses with Resort Property Management.

Single-family rental houses are now in high demand, Gomicz said, with a vacancy percentage of just 3 percent. As a result, rent has spiked by as much as 10 percent on higher-end houses.

Lower-end properties are not as steep - perhaps an additional $25 or $50 per month.

Apartments have also gone up, Gomicz said, but very slightly.

"Their prices have come up a little bit, but they haven't been affected as much as single-family houses have," he said. "We're not seeing $100 jumps in $500 apartments."

The Rental Connection in Coeur d'Alene is experiencing similar trends, manager Brenda Evans said.

"We seem to fill (properties) up about as quickly as we turn them over," she said. "A lot of what I've noticed are people looking for rentals that are in foreclosure."

Last month, 208 properties were foreclosed in Kootenai County, according to RealtyTrac Inc. Sixty-one foreclosures occurred in Coeur d'Alene, and 53 in Post Falls.

The rental market peaked in 2006 and 2007, Gomicz said, then dropped when the recession hit. As the situation improves, investors are beginning to take advantage.

"When there's a demand, there are people out there trying to sell it," Gomicz said. "It just looks much more attractive. We are seeing a lot more interest from investors talking about building apartments."

Banks, however, are unwilling to take risks on major financing, he added. Unless an investor has plenty of hard cash, it can be tough to start new projects or recommence old ones.

Still, Gomicz said there might be some life to the market.

"They're getting interested again. They're starting to talk about it," he said. "My feeling is that these investors, they're just getting tired of waiting."

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23 comments:

  • RadRevD posted at 10:22 pm on Fri, Apr 29, 2011.

    RadRevD Posts: 3333

    to SamuelStanding...

    Good luck on your neighborhood fight.
    I can't even get the renters to remove their garbage carts from the curb!
    As for multi-family inhabitations, code enforcement don't care!

     
  • The Truth posted at 6:00 pm on Wed, Apr 27, 2011.

    The Truth Posts: 2193

    "ruin our investments!"

    -- Most Idahoans think of them as homes, not investments.

     
  • SamuelStanding posted at 1:19 pm on Wed, Apr 27, 2011.

    SamuelStanding Posts: 608

    Rental agencies need to follow CC & R's as well as city ordinances. No more than four non related adults are to occupy one residence. Unfortunately, my nieghborhood has turned into the slums of CDA. Rentals galore and all have no less than six college aged adults, multiple cars all parking in the street, which is against our CC & R's. No watering or mowing of the lawns, as renters, who has lawn mowers or hoses and sprinklers. These are the items to also be addressed. Add a lawn care service to the monthly billing. Then at least the lawns fall in good care and stop diminishing the remaining property owners, home value. We keep paying more each year with additional school levies and property increases, while rentals and the agencies collecting fees, ruin our investments!

     
  • The Truth posted at 1:12 pm on Wed, Apr 27, 2011.

    The Truth Posts: 2193

    Also, anyone buying in the area right now better be independently wealthy, since they're sure not going to be able to buy much of a home around here on the regions prevailing wages. They'd do better to leave the area for a place with better opportunities.

     
  • idahoguy posted at 7:29 am on Tue, Apr 26, 2011.

    idahoguy Posts: 932

    Good News Alert... I have noticed more locations showing up for truck or trailer rental services. This means you do not need to go as far to rent a truck or trailer to...leave town. Why would you leave town? Because you don't get your way and others are tired of being hit up to pay your way. If you can not afford to live here then leave... I really don't care either way. Life is tough to cut up here and always has been. Some will lose some will win. The solution and answer is what you see in the mirror when only you are standing there.

    Don't forget to pack the mirror if you fail.... (The land of equal opportunity not equal results)

     
  • idaho native posted at 11:10 pm on Mon, Apr 25, 2011.

    idaho native Posts: 551

    hummmm..................look over your last few years of statements.

    it was easy for the $republicons to get elected over and over and over and
    over again by "supposedly" NOT raising taxes.

    in the old days: LAND WAS NOT COVERED UNDER THE OWNER-OCCUPIED deduction.
    under the $r's: dwelling value went DOWN and LAND(non-exempt) value went UP.

    don't even ask me to explain "FORGONE TAXES"!.......ok.....i will.

    the $republicans said: NO NEW TAXES this year or Next year or the Next year. hummmm....great KKKon.

    now....ou$R coffers are EMPTY.............now comes: FOREGON TAXES!

    WE, the $REPUBLICAN MAJORITY for the last 20+ years could have raised taxes 3% a year.....but we didn't.

    NOW, after a 20+ years of NO NEW TAXES...YOU GET _____d for ALL of IT in ONE "tax-forgone" sum.

    hummmm.........and the TRUTH will: pist you the ___k OFF!

    hummmm.........and the TRUTH is: IT WASN'T THE DEMOCRATS....................

    hummmm.........looks to me like YOU got what YOU voted FOR........hope YOU are happy....AH MEN

     
  • Dan Gookin posted at 6:20 pm on Mon, Apr 25, 2011.

    Dan Gookin Posts: 753

    Phaedrus lies. He hates me. 'nuff said.

     
  • LTRLTR posted at 5:48 pm on Mon, Apr 25, 2011.

    LTRLTR Posts: 1171

    phaedrus posted at 1:04 pm on Mon, Apr 25, 2011.
    "I live in CDA and my taxes for the current year are lower by a couple of hundred dollars than they were in the prior year"

    HOW DID YOU MANAGE A LOWER TAX BILL? Property values have decreased everywhere, but the tax rate was raised.

     
  • Nutter Watch posted at 4:57 pm on Mon, Apr 25, 2011.

    Nutter Watch Posts: 476

    So real estate investors(dumb money) are getting interested again. What's the matter, stove lid not hot enough for you the first time around? The good news for the rest of us is this time the banks will insist the fast buck boys have a little more skin in the game. What's not being considered here is the size of inventory being held by banks that are coming under increasing pressure to unload; something, when it happens, is certain to drive prices even lower. Factors such as high unemployment, static or falling wages, escalating food and energy prices, a scarcity of equity rich transplants all combined will most certainly restrain rising rental rates going forward. This coupled with relatively high borrowing cost, opportunity cost and always the threat of higher taxes to recoup losses from lower assessments(especially should the mayor prevail in revamping downtown) makes rental real estate the "dumb investment" of the year.

     
  • ancientemplar posted at 4:16 pm on Mon, Apr 25, 2011.

    ancientemplar Posts: 1283

    you noticed that Phaedrus didn't say a thin about his assessed valve and the taxes as a % of that. He just mentioned that his actual out of pocket expense went down. I would expect nothing less from the omniscient.

     
  • iwassam posted at 2:31 pm on Mon, Apr 25, 2011.

    iwassam Posts: 57

    phaedrus--

    My place was recently assessed at 40% less than what it was assessed for in 2007. My
    taxes are almost $200 more than in 2007. I remember getting a letter from the tax
    assessor explaining to me how my taxes can go up when the assessed value goes
    down.

     
  • phaedrus posted at 1:04 pm on Mon, Apr 25, 2011.

    phaedrus Posts: 96

    Rents are UP!----Market driven, aren't you a capitalist?
    Gas prices are UP!---Market driven, aren't you a capitalist?
    Unemployment is UP!---again, the market. What did the Legislature do to create jobs? Nothing.
    Taxes are UP!----I live in CDA and my taxes for the current year are lower by a couple of hundred dollars than they were in the prior year. I've checked with a couple of dozen people and they confirm this. Why are you perpetuating a lie?

     
  • The Truth posted at 12:28 pm on Mon, Apr 25, 2011.

    The Truth Posts: 2193

    @will

    No, it's totally market based. As fewer people qualify for mortgages (or cannot afford their current one) they are forced to move into rental properties to live. This decreases the supply of rental units available and allow the owners to up the price. This is a pure supply-demand situation.

     
  • will-- posted at 10:29 am on Mon, Apr 25, 2011.

    will-- Posts: 1202

    "No, it's merely the invisible hand of the free market"

    Wrong again!

    It's the very visible hand of a failed Washington economic policy called quantitative easing. QE1 was a distaster. QE2 will be no different, with the result being out of control inflation. Many of us still remember the Carter years.

     
  • Dan Gookin posted at 10:28 am on Mon, Apr 25, 2011.

    Dan Gookin Posts: 753

    Things are looking UP in Coeur d'Alene!

    Rents are UP!
    Gas prices are UP!
    Unemployment is UP!
    Taxes are UP!

    Woo-hoo!

     
  • RadRevD posted at 9:33 am on Mon, Apr 25, 2011.

    RadRevD Posts: 3333

    yeah...yeah...yeah!

    You Say You Haven't Been The Same Since You Had Your Little Crash
    But You Might Feel Better If I Gave You Some Cash
    The More I Think About It, Old Billy Was Right
    Let's Kill All The Lawyers, Kill 'Em Tonight
    You Don't Want To Work, You Want To Live Like A King
    But The Big, Bad World Doesn't Owe You A Thing

    Progressives and GOBs are in bed together.
    They depend on a bunch of unemployed rubes and indigent moms.
    2013 will bring tears and ruin.
    The lawyers will blame it on YOU - IdahoGuy!

     
  • The Truth posted at 9:06 am on Mon, Apr 25, 2011.

    The Truth Posts: 2193

    "Unemployment in Coeur d'Alene is at 11.1%. Raising rent is pure greed at this time."

    -- No, it's merely the invisible hand of the free market. Real conservatives, such as yourself, should be cheering this.

     
  • idahoguy posted at 8:15 am on Mon, Apr 25, 2011.

    idahoguy Posts: 932

    You drag it around like a ball and chain
    You wallow in the guilt; you wallow in the pain
    You wave it like a flag, you wear it like a crown
    Got your mind in the gutter, bringin’ everybody down
    Complain about the present and blame it on the past
    I’d like to find your inner child and kick it’s little ....

     
  • idahoguy posted at 8:12 am on Mon, Apr 25, 2011.

    idahoguy Posts: 932

    You say you haven’t been the same since you had your little crash
    But you might feel better if I gave you some cash
    The more I think about it, old billy was right
    Let’s kill all the lawyers, kill ’em tonight
    You don’t want to work, you want to live like a king
    But the big, bad world doesn’t owe you a thing

    Get over it
    Get over it
    If you don’t want to play, then you might as well split
    Get over it, get over it

     
  • idahoguy posted at 8:11 am on Mon, Apr 25, 2011.

    idahoguy Posts: 932

    I turn on the tube and what do I see
    A whole lotta people cryin’ ’don’t blame me’
    They point their crooked little fingers ar everybody else
    Spend all their time feelin’ sorry for themselves
    Victim of this, victim of that
    Your momma’s too thin; your daddy’s too fat

    Get over it
    Get over it
    All this whinin’ and cryin’ and pitchin’ a fit
    Get over it, get over it

     
  • LTRLTR posted at 7:39 am on Mon, Apr 25, 2011.

    LTRLTR Posts: 1171

    Unemployment in Coeur d'Alene is at 11.1%. Raising rent is pure greed at this time.

     
  • RadRevD posted at 7:36 am on Mon, Apr 25, 2011.

    RadRevD Posts: 3333

    What goes up must come down
    spinning wheel got to go round
    Talking about your troubles it's a crying sin
    Ride a painted pony
    Let the spinning wheel spin

    You got no money, and you, you got no home
    Spinning wheel all alone
    Talking about your troubles and you, you never learn
    Ride a painted pony
    let the spinning wheel turn

    Did you find a directing sign
    on the straight and narrow highway?
    Would you mind a reflecting sign
    Just let it shine within your mind
    And show you the colours that are real

    Someone is waiting just for you
    spinning wheel is spinning true
    Drop all your troubles, by the river side
    Catch a painted pony
    On the spinning wheel ride

    Someone is waiting just for you
    spinning wheel is spinning true
    Drop all your troubles, by the river side
    Ride a painted pony
    Let the spinning wheel fly

    nothing quite like hyper-inflating local real estate market between 2004 & 2007.
    Did this begin with the priming of an unnecessary and tragic bubble by GOBs?
    Did the purchase of the the library acre for twice its assessed value instigate?
    Are the land-baron GOBs hurting and homeless???? Hardly!

     
  • idahoguy posted at 5:15 am on Mon, Apr 25, 2011.

    idahoguy Posts: 932

    I for one am very glad banks and other lending institutions have greatly increased the amount of money the borrow must lay down on the table. In the past we were involved in some private lending and we required at least a 65-80 percent cash to value investment on the part of the borrower. They all repaid and on time as well.

    We were not in the business to lose money and neither should the banks be doing that with your money.

     
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