As homeownership rates remain flat and rental units continue to increase in popularity among consumers, more firms are starting to focus their business strategies toward the rental market.
According to data from the Census Bureau, third quarter owner-occupied housing inventory declined from a year ago by 175,000. However, inventory for renters was up more than 1.3 million units from the third quarter last year through the end of October.
Because of the increased demand for rental properties, DataQuick and RentRange have partnered to offer REO-to-rental valuation intelligence to lenders, servicers and investors.
As part of their agreement, DataQuick customers will be able to access data RentRange provides for rental markets across the country through the DataQuick National Property Database file license. The San Diego-based real estate information solutions provider also expects to include RentRange content as part of its RiskFinder suite of portfolio management solutions.
“History shows us that recovery from every economic downturn our country has faced has been led by the housing market,” said John Walsh, president of DataQuick. “A more traditional recovery stemming from a robust purchase market has not come about as quickly as most would have liked, so alternatives are critical. Maximizing the rental and occupation of REOs serves to benefit renters, lenders, servicers and investors and is a viable, attractive alternative.”
RentRange offers servicers and investors a reliable way to determine a property’s rental income potential. Using empirical data, RentRange calculates monthly rent estimates at the address level for single-family homes, apartments, condominiums and townhomes.
The Westminster, Colo.-based data provider offers users specific information by zip code and city. Consumers and business executives can also find out about rental rate historical trends, property and MSA vacancy rates, rental market strength indicators, comparable rental property information and rental price per square-foot for a specific neighborhood.
One of the most important factors when making a successful REO-to-rental or REO purchase, as well as any real estate decision, is to know the fair market value of a property. Walter Charnoff, founder and CEO of RentRange, said his company’s “unique dataset” helps prospective purchasers with their acquisitions.
“When evaluating the suitability of a REO to purchase as a rental, the income potential of the property, vacancy rate and local market characteristics are all key metrics to be considered,” he said. “Our data provides authoritative, granular and timely rental market intelligence necessary for REO-to-Rental assessment.”
Also this month, US Residential Asset Fund was implemented by Christopher Crippen, Dana Bradley, Al Espinoza, Patrick Cipolla and Amos Alexander to focus on purchasing distressed properties for the single-family rental market.