Weak economy leads more to rent

This story first appeared in the Nov. 29 edition of the Kansan.

When it comes to the Newton rental market, most complexes and rental property owners report no problems in filling available spaces.

Amy Simmons, property manager at South Park Apartments in Newton, said the complex, with 128 units, is full.

“We’ve been very consistent at 98 and 100 percent occupied” for about the last six months, Simmons said.

South Park has 24 townhouses and 104 apartments. Almost all the units fall under a federal tax credit program, so there are income guidelines for those who move in. Simmons said she gets a lot of calls from people who are over the income guidelines and do not qualify for the program.

Simmons said 10 apartments at South Park do not have such guidelines, and “they are always full.”

Simmons said demand is increasing somewhat for three-bedroom units. She said the townhomes are always popular because of the “feel of home” but said apartments are typically a short-term solution, so turnover is to be expected.

The complex just started a new policy to accept pets less than 25 pounds with some breed restrictions. In the past, only service animals were allowed. Simmons said the change is a result of the number of people inquiring about and wanting to bring their pets.

“People are sneaking their pets in anyway, so we decided to make it easier for people,” she said. The complex charges a pet fee.

Simmons said there are no plans to add on to South Park.

Rentals stay full

Joan Boese, owner of Boese Management, also said they see no shortage of those wanting to rent. Her agency manages mostly houses and duplexes for various owners in Newton, with a few apartments. The agency takes applications, run credit checks, takes care of properties, collects rent and other management tasks.

Boese said when it comes to trends in the market, she is getting a few more calls these days for three or four bedroom homes. She also said more people want houses.

“We don’t have as many houses as people ask for,” she said. “I can’t say there’s a real shortage of rentals. For houses, there might not be enough,” especially three-bedroom houses.

She also said she thinks people may be more hesitant to buy homes.

“It used to be when the housing market was good, more people looked to buy houses then they do now, because now we run pretty much 100 percent full most of the time,” she said.

She said the biggest change is the increase in rent “because taxes and everything else have gone up.”

She said as far as demographics, she sees renters coming from all ages: older couples who want to downsize, middle-aged couples, younger people who “are getting ready to buy a house someday.”

Boese said all the rentals she manages are “strictly no pets.” She said quite a few years ago, pets were allowed, but said too many people didn’t take care of pets and created more damage than was covered by the deposit. She said while pet owners aren’t thrilled, they usually are understanding.

“They’re disappointed. They don’t really complain. They understand,” Boese said. “They always want to know if I know of somebody who rents with pets, but I don’t know many who do.”

A good renter is hard to find

But even with plenty of people wanting to rent, at least one landlord said it’s hard to find appropriate clientele.

Larry Harms has owned rental properties in Newton for about 30 years and owns a mix of apartments and single-family dwellings. He said it’s getting harder to find “good quality people” with good references to rent to.

He said he does not allow pets in his rentals “because of a few people leaving a mess,” namely fleas or urine that require carpet replacement and other repairs.

He said during the past three or four years, he thinks many renters took advantage of low interest rates and left the rental market to purchase houses. He also said he’s seeing more single-parent families or single individuals renting.

Harms said he’s getting ready to go into the rental slow season: December to February.

A good time for landlords

With the national housing and job markets showing signs of trouble, it may work out OK for those with places to rent. Jim Bell, owner/partner of Fox Meadows Apartments in Newton, said with people’s insecurities about the job market during the next couple of years, people are looking for the flexibility renting allows.

“It’s a wonderful time for rental. The need for clean safe rental properties is in more demand than ever before,” Bell said. “I would attribute it to the lack of home sales and the instability of the markets.”

Fox Meadows has 48 units, 32 of which are two bedroom and 16 of which are one bedroom. Bell said it’s the only apartment complex in Newton with a swimming pool. He also said the complex owners have tried to make the units energy efficient with thermal windows and high efficiency heat pumps. They are all electric units.

The complex is under major renovation, which Bell said should be completed in May. The complex is 52 percent rented.

As for pets, Bell said the apartment does allow pets but requires a $500 non-refundable deposit. He said after a pet owner moves out, the complex will replace the flooring because of allergies and odors.

“It’s only fair for the next tenant to not have to deal with that,” he said.

Jim and Doris Yoder of Newton have had rental properties in Newton since about 1965. They have several single-family houses they rent out.

Jim Yoder said while the rental market fluctuates, there is a good demand for rentals. He said November to March is the slowest time for renting.

He said he thinks people are “much more mobile” these days and tend to stay shorter periods. He said in the past, many would stay two or three years; now, many just stay a year. He said also there are far more single parent families and single people looking to rent houses. And the couple is also seeing some renters looking for bigger houses with three or four bedrooms.

The couple said they see renters from all age groups, but said those 20 to 35 likely make up the largest portion of their tenants.

The couple does not allow pets or smoking in their rentals, which they said was because both can do damage to the property.

Rentals not issue in economic

development

Mickey Fornaro-Dean, executive director of the Harvey County Economic Development Council, said the housing and rental markets sometimes come into discussion when new businesses consider moving to the area, but not a lot.

She said if there is a shortage in the county, it’s likely in the rental market, not the housing market. But for many companies, it may not be an issue. She said factors which affect the role housing plays in a decision are how many employees the company plans on hiring and pay scales of those employees.

She said in this area, a lot of companies pull from several zip codes, and in Harvey, Marion, Reno, Sedgwick and, to some extent, Butler, counties, there is a lot of crossover in terms of where people live and work.