A place to call home: Business still booming for house, apartment rentals

The housing market took a downturn in the past 10 years, which increased the demand for rental property. Now, the housing market is building back up, but demand for rental property remains high, say local property managers.

"We have seen a little bit of a slowdown, but in general, the demand is still extremely high," says Jeremy Ferguson, owner/manager at Executive Property Management in Cape Girardeau. Of the company's 327 rental units, Ferguson says only five were vacant as of May 8.

"In the past six or seven years, people have grown accustomed to trying to be more liquid, to be able pull up roots and move quickly when a job comes up," he says.

Ferguson says many people rent when they are new to the area and thinking about if, or where, they want to stay long term. Others rent during the transition between selling one house and buying or building another.

"If they want to try out the area and get to know what the community looks like in a good year and a good location, renting is a comfortable way to do that without fully committing to buying property," he says.

Jay Meystedt, co-owner of Shiloh Rental Properties, stands inside his Broadway office, Monday, May 11, 2015. (Laura Simon)

Thomas M. Meyer, broker/owner at Exit Realty in Cape Girardeau, believes trends in renting are due in part to a generational change.

"The market changes with whatever generation comes up," he says, explaining that the Millenial generation is hanging onto rental property longer than others. "My generation was more apt to go in the market for a fix-me-up, put in the sweat equity and stay with the house," he says. "Now, the present market prefers to move into a new house without any need for improvements."

The real estate market seems to be responding to the demand.

"In the past five years, they've increased the number of apartment complexes being built, not only for university students, but for single families," Meyer says. Property managers also are investing in nice, three-bedroom houses in desirable neighborhoods and school districts, he says.

"What we're seeing is a lot more options when we think about rental property these days than 10 or 15 years ago," Ferguson says. "Before, properties were not always maintained or in good condition, but now, there are much nicer products that are closer to the types of homes or accommodations people would live in full time."

At Shiloh Rental Properties in Cape Girardeau, Jay and Gigi Meystedt have focused their efforts on renovating homes within blocks of Southeast Missouri State University.

"We started back in 2002, just one property at a time. We had no real goal other than servicing the Southeast Missouri State University area. That's been our focus," says Jay Meystedt. "We saw a lot of students, and we felt like they deserved a shot at getting nice housing at a fair price."

Meystedt says his tenants are looking for housing close to campus, as well as landlords who will take good care of them -- so that's what the Meystedts strive to provide.

The former Lorimier Apartments at 140 S. Lorimier St. in Cape Girardeau will be renovated into rental property. (Fred Lynch ~ flynch@semissourian.com)

"We are completely, 100 percent hands on. We mow all of our own yards. You might find me on the roof cleaning out the gutters," Meystedt says. "Service is the heart behind what we're doing. The students who live in our houses deserve a home away from home; that's our slogan."

While the Meystedts feel providing student housing is their calling, Meystedt admits the property management business isn't for everyone.

"It takes a lot more time and money than what you wrote down on a piece of paper to buy it," he says. "It's a lot of long days and middle-of-the-night phone calls."

Jason Coalter, who recently consolidated four rental businesses into one under the name Rent SEMO, can relate to the ups and downs of the rental business. He's become known for transforming rundown homes and apartments into much-sought-after rental property, but success does come with a price.

"You're going to have to drive across town in the middle of night. Amenities in an older house are going to fail at times, and it's always going to be inconvenient," he says. "You have to think long term and not short term. If anything seems too good to be true, it probably is. No one gets in the real estate business and gets rich quick. Be prepared to invest more than you thought you would."

To rein in the inconveniences, Coalter likes to buy properties that are contiguous so he can make sure the area is well-maintained, safe and a pleasant place for tenants to live.

"People want to be taken care of," he says. "We try to evolve and tailor our property to any demographic out there. The goal is to not be one size fits all, but to have something for all sizes."

Property managers agree that regardless of the size, location or type of rental property available, it must be safe, clean and well-maintained. Tenants should feel proud to call it home, Ferguson says.

Any extras you can make available, such as upgraded appliances, a carport, elevator, washer and dryer or ADA accessibility, will sweeten the deal for your tenants and also give you a competitive edge in the real estate market, Meyer says. At Executive Property Management, tenants can even pay rent and submit maintenance requests at www.capearearentals.com.

"Technology has made the game a lot simpler for ourselves and our tenants," Ferguson says.