Deaton Investment Real Estate & The Wake County Apartment Association

Wednesday, July 25, 2012

Deaton Newsletter - July 2012

Source: Deaton Investment Real Estate Report

The latest edition of Deaton Investment Real Estate's Newsletter is available at the link above.

In this edition:

-Multi-Family News: Positive and Informative
Read our collection of articles highlighting some of the exciting developments within the multi-family real estate market.

-A sample of our current listings

Tuesday, June 19, 2012

Front Yard Parking Ban Approved

Raleigh, N.C. — Raleigh city leaders on Tuesday approved an ordinance that would prohibit people in certain parts of the city from parking their vehicles in front yards.

For years, the City Council has discussed a citywide ban but has never been able to reach a decision.

The vote Tuesday is a compromise that will concentrate on certain areas, such as southwest Raleigh near North Carolina State University.

That's where the city has seen some of its worst offenders, partially because of the number of college students renting homes in neighborhoods where parking on the street requires a city permit.

To read the full article click here -

Tuesday, May 15, 2012

You think Raleigh's rental market is hot...look at San Francisco

From the San Francisco Chronicle - Author: Carolyn Said

Michael Austin and Emily Morrison aren't highly paid tech workers. He's an actor with a day job as an administrative assistant; she's an arts teacher at CalShakes. Newly engaged, they've been seeking an apartment in San Francisco to move into together.

"We started combing Craigslist, and when we filtered by the neighborhoods we want and our maximum price of $2,000 for a two-bedroom, there is almost nothing," Austin said. "It was just shocking to me."

They broadened their search to the East Bay. Even there, "You show up at an open house and it's really intimidating," he said. "There are 20 other couples already ready to apply."

They decided to "get creative and get off the Craigslist merry-go-round," he said, posting their search on Facebook and placing their own Craigslist "apartment wanted" ad. A Facebook friend shared a tip on an Oakland apartment that may work out for them.

Their story is typical of San Francisco's overheated rental market, where well-compensated tech workers are flocking to desirable neighborhoods, driving up prices and locking out those who aren't big earners. The chichi areas, which also are closest to convenient transit, are hardest to break into. And the competition is spilling over into the East Bay.

"The Bay Area is growing in an extraordinary, unprecedented way," said Sarah Bridge, owner of Novato's RealFacts, which tracks apartment prices nationwide at buildings with 50 or more units.

"It has to do with job growth," she said. "It's a gold-rush mentality where the best and the brightest come to the Bay Area. The trend is for Gen Y folks, which is mostly what employers are hiring, and that particular generation has a preference for the urban core."

San Francisco rents rose 15.8 percent in the first quarter of this year compared with the same time last year, to an average of $2,663 for all size units, according to RealFacts. Studio apartments average $2,075, up 16.5 percent in a year. The steepest rise came in one-bedroom, one-bathroom apartments, which are now $2,611 - up 19.9 percent in the past year and up 30 percent from just two years ago.

Growth was also strong in San Mateo County, where units of all sizes average $2,003, a 15.6 percent annual increase, RealFacts said. In Santa Clara County, the $1,857 average rent is a 12.5 percent annual increase. For Alameda County, the $1,519 average rent is up 7 percent - still a big increase compared with other areas of the country.

"When you see markets like Oakland with rental growth, it's because it has proximity to San Francisco rather than in and of itself doing anything," Bridge said.

San Francisco is the most expensive metropolitan area in the country for renters, according to a recent report from the National Low Income Housing Coalition, which compared rents to wages. The going rate for a two-bedroom apartment in the counties of San Francisco, Marin and San Mateo requires a $76,200 annual income, the report said. By contrast, the New York metropolitan area, which includes eight counties, requires a $56,950 annual salary.

Even well-paid workers can find it hard to navigate San Francisco's blood-sport rental market.
That's spurred the creation of services targeting them. Real estate agent Wendy Willbanks last year decided to become a scout, or "rental concierge," for apartment hunters, calling her business She Moves You (

"I swoop in and beat the competition," Willbanks said. "It's a fast track to jumping them ahead of the long lines of other applicants (and) landing a rental property in San Francisco without wasting time."

After nailing down her clients' wish lists, Willbanks sifts through listings and attends open houses, armed with her clients' credit reports and renter profiles. She photographs and videos the spaces. Some clients, such as people moving from elsewhere in the country, decide on apartments based purely on her scouting.

Nicole Kumle was moving from Los Angeles for an occupational therapist job at San Francisco General Hospital. She tried apartment hunting during a brief visit, but every open house was filled with people, and the clock was ticking. She hired Willbanks, who found her a one-bedroom in Pacific Heights in her price range. Kumle applied for the apartment sight unseen.

Willbanks said she beat out 17 applicants by arriving early and befriending the rental manager.

"It worked out wonderfully with no drama," Kumle said. "But it was kind of pricey."

Willbanks' fee is about equal to an average month's rent, which is standard for real estate agents who perform similar services. She charges a few hundred dollars more for out-of-town clients who need more orientation to neighborhoods.

"This is a luxury service for the busy professional," she said.
"It's a tight market," she said. "There are a lot of tech hires and also a lot of people who would have bought a few years ago, who are opting to rent instead."

Listings turn over quickly, especially if they're in popular neighborhoods with amenities such as parking, updated kitchens and outdoor space, she said.

"We'll get several hundred e-mail inquiries, probably as many phone calls, lots and lots of people showing up and multiple applications," she said.

Landlords make the final decisions after her firm checks credit, employment and references. But, she said, the applicants with the best income, credit and rental history and who can move in soonest tend to get the leases.

Competition heats up even more over the summer because people want to be settled before the school year starts.

"August is the crescendo of demand each year," she said. "Last summer there was one listing in a really hip, desirable part of the Mission, where I actually had a fistfight break out in the line of people to get into the open house. I needed a bouncer. There were 80 people there; it was really nuts."

Jed Kolko, chief economist at real estate site, said a couple of factors in addition to job growth conspire to keep San Francisco rents high. The city's rent control and limits on new construction "mean rents are higher to begin with, and they rise faster when demand increases."

Rent control also limits turnover, he said.

"It encourages some people to stay in an apartment longer than they otherwise would have."

Carolyn Said is a San Francisco Chronicle staff writer.

Tuesday, May 1, 2012

Rising Rents - Falling Prices (From:

WCAA Meeting - 5/3/12 - I Need...I Have...Please Help

The next meeting of the WCAA will be this Thursday, May 3, 2012. At the meeting we will have an open floor where everyone can ask questions, share or present a topic for discussion. Perhaps you have been struggling with how to handle a problem tenant and you want some advice? Maybe you are getting ready to turn a unit and you need a recommendation for a handyman or painter? What rent should you charge for your upcoming vacancy? Have you been trying to sell or buy a property and you would like to share those details? Do you need financing for a purchase or refinance?

Anything and everything related to real estate investment and property management is fair game. Make the most of this opportunity to have the collective experience of the WCAA serve as your personal resource and mentor. If you have a question that you want to ask anonymously, send it to me via email and I will ask it for you.

I look forward to seeing everyone Thursday night.

Time: Dinner and Networking 6:00 - 7:00 PM / Discussion 7:00 - 8:00 PM
Where: Golden Corral on Glenwood Avenue (next to Fat Daddy's)
Cost: Meetings are free but you MUST purchase dinner and eat if you attend

Wednesday, April 25, 2012

More renters live in 1-to-4 unit homes than apartment buildings

Developments - WSJ: Here’s a fun fact about the housing market: There are more rentals in houses than apartment buildings.
That number comes from CoreLogic economist Sam Khater, who crunched Census numbers to determine that about 20.7 million rentals are in 1-to-4 unit homes, including both detached and attached homes, compared with about 17.1 million rentals in buildings with 5-or-more units. About 1.87 million American households are in mobile homes, RVs, boats, or vans.

Tuesday, April 3, 2012

Investors Aim to Buy Thousands of Homes to Rent to Tenants -

Investors Aim to Buy Thousands of Homes to Rent to Tenants -

With home prices down more than a third from their peak and the market swamped with foreclosures, large investors are salivating at the opportunity to buy perhaps thousands of homes at deep discounts and fill them with tenants. Nobody has ever tried this on such a large scale, and critics worry these new investors could face big challenges managing large portfolios of dispersed rental houses. Typically, landlords tend to be individuals or small firms that own just a handful of homes.

But the new investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market.

Tuesday, March 27, 2012

PROP changes - one perspective

The city of Raleigh is considering updating the PROP program (Probationary Rental Occupancy Permit) which imposes fines on landlords if they or their tenants are cited too many times for late-night noise or code violations. This came after many neighbors were fed up with loud parties and messy yards in Raleigh’s college neighborhoods.

The updates to this program that the city is considering go further by penalizing landlords if any of the tenants are convicted for a crime such as: prostitution, possession of stolen goods, possession and consumption of malt beverages, sale of machine guns or like weapons, possession of a firearm by a felon, gambling, riot or inciting riot.

Full article at link below...

Read more here:

Thursday, March 15, 2012

Deaton Newsletter - Bad Changes on the way for PROP?

The latest edition of Deaton Investment Real Estate's newsletter is available for review at this link.

In this edition:
PROP Changing For The Worse in 2012? - Article provided by the Triangle Apartment Association
Introduction: Landlords in Raleigh have been under the compliance pressures of PROP for many years. This article is a summary of what PROP is and the proposed changes which could be up for vote before the end of March. It is crucial that all landlords understand these policies are not specific to Raleigh. Other municipalities are trying to implement inspections and rental programs based on Raleigh's "success." These policies are spreading all over N.C. and the country. Make a point to be aware of what is happening in the places you own property.

- A sample of current listings and recent sale

Friday, February 24, 2012

WCAA Next Meeting - Thursday, 3/1/12

The next meeting of the WCAA will be Thursday, March 1st. Coming to share with the group will be Gary Wires. Gary is the Sales Manager for Prestige Restoration which provides a complete line of fire, smoke and soot cleanup, water and mold remediation, cleaning and full restoration services. Through his 20+ years of experience Gary has become an expert on mold. He will be helping to educate (or re-educate) all of us on the various types, what to look for, how to avoid it and what to do if it shows up in one of your rental units.

I will also share an update on the latest PROP proposal and what is being done to try and slow down and/or stop the City of Raleigh from moving forward.

Make sure you are there so you don't miss all the information.

Time: Dinner and Networking 6:00 - 7:00 PM / Presentation 7:00 - 8:00 PM
Where: Golden Corral on Glenwood Avenue (next to Fat Daddy's)
Cost: Meetings are free but you MUST purchase dinner and eat if you attend

Friday, February 10, 2012

Apartment Demand Expected Higher In 2012: Marquette Economist | The Source For NAR Commercial Real Estate

Link to full article: Apartment Demand Expected Higher In 2012: Marquette Economist The Source For NAR Commercial Real Estate:


[Even though growth of households (household defined as that population unit required for rental occupation or home ownership) slowed in the 2000s, current research suggests a nationwide bump in households amounting near 350,000. Against a backdrop of a base 35 million apartments in the US, a pent-up demand for apartment housing is stemming from an oft-discussed trend: After completing school, college students are coming home and staying there – approximately 1.6 million young adults in this situation currently that would under different economic circumstances be in apartments. As jobs return – and the latest numbers show some recovery there – this demand will hit the apartment market. What will further stimulate demand, Eppli said, is the fact that the average age of marriage is on the rise in the US, which means that adults are staying in rental units longer than they have historically.]

Tuesday, January 31, 2012

WCAA Meeting - Thursday, 2/2/12 - Legislative Update and Q&A with Attorney Norm Praet


Just a month in to 2012 and the political agendas are in rapid-fire mode. Cheryl Houseman, Government Affairs Director at the Triangle Apartment Association (TAA), will provide a legislative update at the beginning of our meeting. The City of Raleigh is talking about expanding PROP again and now the City of Durham has proposed PRIP - Proactive Rental Inspection Program.

Landlord attorney Norm Praet, co-chair of the TAA Government Affairs Committee, has also agreed to attend. Norm will be able to provide insight on these issues from a landlord-friendly legal perspective. Should time allow, Norm will be available to answer other landlord-related legal questions.

Thanks to Cheryl and Norm for offering their time. It's always nice to have an attorney "for free" for a few moments. Be sure to attend.

You can learn more about the TAA here -
For more information about Norm Praet -

Time: Dinner and Networking 6:00 - 7:00 PM / Presentation 7:00 - 8:00 PM
Where: Golden Corral on Glenwood Avenue (next to Fat Daddy's)
Cost: Meetings are free but you MUST purchase dinner and eat if you attend

Monday, January 16, 2012

Downtown Raleigh's Growth

Downtown Raleigh Alliance says Red Hat's move downtown means purchasing power