While rental prices are on the rise throughout much of the country, in Minneapolis, rental prices have actually declined slightly. According to Rent Jungle, the average apartment rent in Minneapolis is now $1,130, representing a four percent decline over the past six months. This is actually a fairly recent trend. The average rent price in Minneapolis has remained above $1,000 since the summer of 2012.
Low Income Housing on the Decline in Minneapolis
Even though rent prices may have declined slightly in Minneapolis in recent months, just last year, it was reported that Minneapolis was experiencing one of the worst affordable rental shortages in years. The situation was attributed to a combination of low wages, low vacancy rates, and a lack of funding in the city.
According to The Star Tribune, the wait list for property rentals last year was extremely low due to low vacancy rates. The report went on to indicate that the demand for affordable housing in Minneapolis for low-income renters had more than doubled between 2009 and 2014. Part of the problem was the fact that rental prices in Minneapolis rose faster than income during that time period. That proved to be particularly true for low-income residents.
Although there was a significant need for low-income housing throughout Minneapolis, the city was unsuccessful in meeting funding goals to assist with low-income rental units. While approximately 41 percent of low-income renters were living in affordable units in 1999, ten years later, that number had declined to 20 percent.
Housing costs are only considered to be affordable if the members of that household pay 30 percent of less than their monthly income on rent. Since rental prices in Minneapolis have been rising faster than local incomes, renters in Minneapolis have faced significant challenges in terms of finding affordable housing.
How Low Income Housing Affects Minneapolis Landlords
In situations in which there is a lack of affordable housing, such as is often the case throughout much of Minneapolis, it is not uncommon for landlords to find themselves in situations which renters have trouble paying the rent on time. There are many techniques that property owners and managers can leverage in order to keep rent flowing in on time, but those techniques do require active property management.
One option that can make it easier for landlords in Minneapolis to ensure rent is collected on time is to make rental collections online. With a service like VerticalRent, landlords and property managers can accept and manage resident payments by offering convenient payment options. Such online payment options can help to save landlords a tremendous amount of time and hassle as well as money. At the same time, tenants are able to take advantage of payment options that are far more convenient than writing out and mailing or dropping off paper checks. Online rental collection payment services also make it possible to setup owner payments. With this option, portfolios can be set up that allow rent payments to be deposited directly into the property owner's bank account.