Are you experiencing highers Evictions and Lower Rents?

[H. Jack Miller]

I am curious is anyone experiencing higher than normal nonpaying tenants and evictions?
If so, how long is it taking you to get them out? Are you seeing any lower rents?

[Josh Young]

@H. Jack Miller

I have not had any tenants not pay rent, but I have seen rents soften for multi family and condo rentals (roughly 5-10% decrease in rental rates). This is because so much new multi family supply has come online. I own and manage mostly class B and B+ single family homes and condos, but I have heard that evictions have ticked up in class C, that’s one of the problems with chasing cash flow is getting into class C and dealing with a tenants that are not as well qualified and higher risk of default to begin with. I think the long term fundamentals here are solid with job growth and population growth, it’s just a matter of the new supply getting absorbed which will take 2-3 years. There is much less new supply of single family homes, so the rental rates are flat to up a little; this does depend on the neighborhood though, in some of the fringe areas where there is a lot of new single family home construction the rents are a little softer. From what I see and hear the less qualified tenants are being affected the most by the economy because they were in a weaker position to begin with.