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The National Apartment Association has released an updated version of the previous Dollar of Rent analysis, utilizing new data derived from the operating statements of federally mortgaged properties. This explanatory infographic breaks down a dollar of rent using national averages into its component parts. (10/6/2023 From: NAA ‘Breaking Down One Dollar of Rent: 2023’)
The Breakdown of Every Rent Dollar
Mortgage Payments: $0.46
A significant portion (46 cents) goes directly to cover the property’s mortgage, ensuring the property remains available for residents.
Operating Expenses: $0.27
From utilities to insurance and ongoing maintenance, 27 cents cover the essential operating expenses that keep properties safe, functional and well-maintained.
Property Taxes: $0.11
Eleven cents of every dollar of rent go towards taxes, which finance community programs such as schools, emergency services, parks and other local services.
Employee Payroll: $0.07
Payroll for community staff, from property managers to maintenance teams, collectively accounts for 7 cents of every dollar of rent. Their hard work and dedication are what keeps every community thriving.
Capital Expenditures Reserves: $0.02
For future upgrades and significant repairs, owners allocate 2 cents to capital expenditures reserves. By doing this, they are future-proofing their communities and ensuring quality housing for their residents.
Profit: $0.07
There is a common misconception that rental housing providers enjoy large profit margins. In reality, only 7 cents of every dollar are returned as profit to owners. This slim margin underscores the challenging financial pressures that the rental housing industry faces.
From Austin Apartment Association 11-10-2023 Article of the Week:
Help Us Comment on the Proposed FTC Junk Fee Rule
Today, the Federal Trade Commission officially published its Notice of Proposed Rulemaking (NPRM) to establish a Trade Regulation Rule on Unfair or Deceptive Fees (Docket No. FTC-2023-0064). This broad rule which touches a large swath of the American economy would target so-called “junk fees” in rental housing.
Formal publication in the Federal Register starts the 60-day comment period. Comments are due no later than Monday, January 8, 2024. While you can expect NAA will file comments on the industry’s behalf, we continue to need help from NAA affiliates and members to ensure our voice is heard in DC!
What the Notice of Proposed Rulemaking Would Do:
As previously reported, the FTC is looking to regulate two perceived issues within the American economy writ-large and the proposed rule would:
- Prohibit “hidden fees” - covered businesses that offer goods and services to consumers would be prohibited from advertising prices that hide or leave out mandatory fees; and
- Prohibit “misleading fees” - covered businesses would be prohibited from misrepresenting fees and be required to disclose upfront the amount and purpose of the fees and whether they are refundable.
Additionally, the proposed rule would require all businesses to quote total prices at the outset of the purchasing process, remove false or misleading information about fees from the marketplace, and allow the FTC to secure refunds for harmed consumers and seek monetary penalties against businesses that do not comply with its provisions.
What Comes Next:
NAA is actively engaged in amplifying the rental housing industry’s voice on this critical matter. Be on the lookout for a model affiliate comment letter with instructions for timely submission to the FTC as well as a member call-to-action. NAA can only be successful with your help!
To learn more, please contact Joe Riter, NAA’s Senior Manager, Public Policy.
Thanks as always for everything you do for the industry.
Greg Brown
Senior Vice President, Government Affairs
National Apartment Association
4300 Wilson Blvd., Ste. 800, Arlington, VA 22203
Archived
Congratulations!!
2023 AAA
Golf Tournament
Team Champions!!
From Left to Right:
Justin Miller- ‘Countertop & Cabinet Solutions’
Jeff Beal- ‘The Cigar Vault’
Greg Coots- ‘DBJ Insurance Services LLC’
(Not pictured- Daniel Mays ‘Zoom Drain’)
You can check out our webinar on Security Deposit Waiver Insurance and Tenant Legal Liability Insurance on the link below:
Webinar:
2023 State of the Industry
September 6 at the Commons Conference Center at the J. J. Pickle Research Campus
The Austin Apartment Association’s annual State of the Industry event will provide insights into the rental housing and multifamily market, including market trends, construction and development activity, economic impacts, and more as we look at 2023 and beyond.
All the information is pointing to decreased occupancy and the need to develop some creative and strategic alternatives. SDW and TLL are tools that will not only help to combat a stagnating market but potentially can increase revenues.
Are Rents Falling? Apartment Association Sees Construction, Weak Demand Causing 'Negative Rent Growth'
A combination of softer demand by renters and new multifamily apartment units completing construction has caused some lowering of rents in the Austin market, according to members of the Austin Apartment Association.
At a series of panel discussions last week, the appearance of “negative rent growth” after years of upward movement was a topic of much discussion. With construction of new communities starting to catch up to the strong demand surge that began five years ago, association members said the market is likely to see flat or falling rents in the years to come. (from AAA article of the week 9/15/2023)
People learned more about Security Deposit Insurance and Tenant Legal Liability Insurance at the Event Below!
Austin Apartment Association Trade Show
The 2023 AAA Mardi Gras Trade Show October 12, at the Palmer Events Center
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Have any questions? We are always open to talk about your business and how we can assist you.