THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, September 2, 1995 TAG: 9508310355
SECTION: REAL ESTATE WEEKLY PAGE: 08 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY MARY ELLEN MILES, SPECIAL TO REAL ESTATE WEEKLY
LENGTH: Long : 121 lines
Roy Scott, one of 10 property managers at GSH Real Estate, who manage more than 1,500 rental properties, has found 1995 to be a very successful year.
``For 1995, the sales market for GSH has been down, but the rental business is booming,'' Scott says. ``With interest rates fluctuating, there are a lot of people who just can't afford houses, whether it's due to poor or insufficient credit, or lack of funds to come up with the down payment.''
``We can't seem to get enough houses on the market. In most cases, as soon as we have a property agreement signed, it's rented within days. Once listed, the property is made available to over 2,700 real estate agents, who get a bonus every time they rent a house.
``It's a big moneymaking source for agents,'' he says. ``If an agent has a slow house sales year, he or she can make some good money renting property.''
Property management has been around for at least 50 years. Owners of rental property who live out of state, who want a real estate company to handle their property, sign an agreement and pay a monthly management fee. This year, property managers have been busier than usual, says Scott.
``We make sure potential renters have a good credit background and we check their previous landlord and employer,'' says Scott, ``and, assuming everything checks out, they can rent the property.''
There's no one type of property that rents more quickly, Scott says, whether it's a condo, house, townhouse, duplex, or apartment. For his properties, rent seems to range from $500 to $1,500 per month.
Another reason in Hampton Roads for people not to purchase property is the large number of military people transferred into the area will not be here long, and don't want to be owners.
Often these people can afford to buy a house, and will pay rent equal to a mortgage payment, but don't want to do so for the year or two they'll be stationed here.
Military housing often has a very long waiting list and may be cramped for some families.
``All leases have a military clause in them,'' says Scott, allowing them an ``out'' due to unforeseen military circumstances. Renting is the best situation for transients, says Scott - because they won't have the long term commitments.
Other people, especially seniors, don't want the responsibilities of owning a own house and yard, so renting works well for them.
``The rental business has been so incredibly busy,'' Scott says, ``that we'll often put a For Rent sign in the yard, and before we can get back to the office and list it in the computer, someone will have called on it or even rented it.''
Such was the case for Stephanie Brown and her family, who just this month moved to Level Green, Virginia Beach, from South Carolina. Her husband is in the military, and Stephanie had to do some hunting for a new dwelling without him. Her mother accompanied her on one trip to the area.
``We called every apartment complex in the phone book,'' she says. Brown says she wasn't picky - she just wanted a place with three bedrooms, because they have four children, and a washer-dryer hookup. ``The market is hot right now with all the Navy ships coming in. I really had a difficult time finding a place.''
In South Carolina, the Brown family lived in military housing, which was very spacious. But here, she says, not only is the housing much smaller, it's very backed up.
The Browns will live in the area for several years but decided to rent for now, ``because we're totally new to the area, and I think we'd be foolish to jump in and purchase a home when we're not familiar with our surroundings.''
She talked to her neighbors before moving into the Level Green area of Virginia Beach, and got a feel for the neighborhood. ``I heard the elementary school is really good,'' she said. But, ``you never really know an area until you move in.''
If you buy a house and later decide you don't like the neighborhood or the neighbors, says Scott, you could have a difficult time selling the house and may end up living there a long time.
Scott believes a rental agent needs to go an extra step to keep his clients happy.
``My husband wasn't here,'' Brown says, ``so the real estate company went out of their way to fax papers to him. Mr. Scott told me he'd meet me at the property the day I moved in, since he knew I'd be alone.
``When I moved in, there was something wrong with the toilet and they were so quick about fixing it. The plumber was precisely on time and quick too.''
``Buying a house,'' says Scott, ``is the American dream. And, it's a shame when people, especially newlyweds, get really frustrated during the process. When they get rejected because their credit history isn't exactly what the mortgage company is looking for, or they can't come up with the downpayment, they think they can't get what they want.
``But, they can if they rent. People will often get depressed and don't even realize they may be able to rent the same type of house in the very same neighborhood. And, they would get the same advantages, except with taxes, of living in their own home.''
R. Clifford Wood, regional director for Long & Foster Realty's property management, says that in 15 years in the business this is the busiest summer for rentals he's ever seen. His company manages about 800 single family dwellings, of which 75 percent are owned by people in the military.
One explanation for the current rental success, says Wood, is the ``great influx of people moving here from closed military bases. And, I understand there are a lot more military people who are expected to move into this area, so I don't think our business will be slowing down.''
Wood says that not only has the company been able to get higher rent for their houses, but they often receive several applications per property.
``I'm a little mystified,'' Wood says, referring to 1995's rental increase. ``Our sales division is doing well too; usually either sales does well and rentals don't or vice versa, but this year is different. We're going to just keep our fingers crossed and keeping on rolling!''
Wood says from what he's heard, other real estate companies are having a good year, too. ``There's enough out there for everybody,'' he says. MEMO: REASONS TO RENT
No down payment.
If dealing with a property manager, you'll probably have a 24-hour
emergency tenant line for household problems.
No property taxes or homeowners insurance.
You're committed to stay only through the terms of the lease.
Can live where you like without the responsibilities of ownership.
ILLUSTRATION: Color photo on cover by Charlie Meads, Staff
Stephanie Brown sits with her children...
by CNB