Multifamily Market update for June 2007http://www.realtor.org/press_room/news_releases/2007/cremf_2007q2_sound_record_investment.html?&WT.mc_t=LS07180

For more information, contact:
Walter Molony, 202-383-1177, wmolony@realtors.org

Commercial Real Estate Sound With Record Investment
WASHINGTON, June 13, 2007 -

Multifamily Market

In many areas, buildings constructed as condos are now being turned into rental projects. The demand for apartments remains strong, but new supply is essentially matching leasing activity.In the apartment rental market – multifamily housing – vacancy rates are projected to average 5.8 percent in the fourth quarter, almost unchanged from 5.9 percent in the fourth quarter of 2006. Average rent should increase 2.1 percent in 2007, after a 4.1 percent rise last year.Multifamily net absorption is likely to total 212,300 units in 59 tracked metro areas this year, down from 229,300 in 2006.The areas with the lowest apartment vacancies include Northern New Jersey; Pittsburgh; Salt Lake City; San Jose; San Francisco and Norfolk, Va., all with vacancy rates of 2.7 percent or less.Multifamily transactions in the first four months of this year totaled $23.2 billion, down 25 percent from the same period in 2006. Essentially half of the purchases were by private investors; condo converters accounted for only 5 percent of acquisitions.

What Landlords Need to Know About Contractors' Insurance

By Scott Brueggeman, Fellow Landlord and Publisher of CompleteLandlord.com

It is time to remodel your property. You have hired a highly recommended contractor, discussed the work and agreed on a price. You have confidence in your contractor’s ability, but do you know whose insurance will kick in if someone is injured or property is damaged during the project?

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  To protect yourself, make sure any contract you sign includes the following:
  • Verification the contractor has a valid commercial general liability insurance policy that will be in effect when the work begins
  • Proof of insurance with sufficient coverage for the work to be done and the type of work required for your job
  • Your name and property listed as a named or additional insured on the policy
  • Confirmation the contractor’s insurance is the primary policy, not your own personal insurance
  

Request a copy of the contractor’s insurance policy and review it before work begins on your property. Check that the policy is in accordance with all the conditions in the contract you signed.

Additionally, be sure the policy is taken out under the same name as the contractor you hired. Contractors often use multiple names for business purposes, but if the name on the policy is different from the name on the contract, then you are not insured. Finally, make sure the policy provides adequate coverage.

Taking these precautions when hiring a contractor will help you rest easy while work is being done on your property.