2. HRSR 02-01-2016 - Laserfiche WebLink

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RENTAL MARKET ANALYSIS Rental Market Interview Summary Interviews with area rental property managers, real estate agents, developers, and other persons familiar with the rental market in Elk River were conducted to solicit their impressions of the rental housing market in the community. The following are some key points from these interviews: • The majority of property managers stated that rental demand has remained strong and vacancy rates remain low. Most of the issues continue to revolve around finding the right qualified tenants. Although they are usually fully occupied, most market rate properties do not maintain a waiting list, and if they do the list is relatively small. Managers state that most vacancies will be filled relatively quickly over a few months. Most of the affordable and subsidized properties maintain lengthy waiting lists due to the strong demand for low- income rental units. The subsidized properties in particular have very long lists with Lanesboro Heights stating a five-year wait. • If an apartment is not available in Elk River, the potential tenant will search in the surrounding communities such as Rogers, Monticello, Albertville, Otsego, and Big Lake. • The majority of managers prefer not to divulge renter profiles and typically stated they had a wide mix of tenants. Most of the managers indicated that the majority of tenants work locally. • Most managers indicated that very few, if any renters utilized the commuter rail for work purposes as most renters work in the local area. • Many of Elk River's rental housing buildings are composed of larger-sized (30 to 60 units) structures targeted at the low-to moderate-income market. The majority of these buildings were built at least 20 year ago and do not feature a variety of contemporary amenities. MAXFIELD RESEARCH&CONSULTING,LLC. 50