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Property Management Blog

Unemployment opt-out for Idaho business officers

System - Thursday, January 26, 2012
Last summer, the Idaho Department of Labor announced the decision to allow the estimated 30,000 corporate officers in Idaho to opt-out of paying into unemployment insurance and forfeit their eligibility to receive unemployment benefits. Those that chose to opt-out had the effect go into place on January 1st. House Bill 80 also now requires that for an officer to collect unemployment they have to prove they are no longer legally associated with the corporation. 

Previously, many self-employed and small business owners were subject to the tax even though they never had any intention of ever collecting benefits, so it will provide an opportunity for small businesses to operate with slightly lower costs. For 2012, the standard Idaho unemployment tax is 3.36% on the first $34,100 in wages of each employee. State unemployment is currently deductible against federal unemployment payments, which means there will be an increase of $392 in federal unemployment payments for those that opt-out as they will have to pay the maximum $434 federal rate. 

Perhaps an even greater effect of the bill is the prevention of exploiting unemployment benefits. Formerly, officers that control how and when they work could declare themselves laid off and collect benefits under the job-attached status. This meant they were expecting to be called back to work in a matter of weeks or months and were thereby exempted from job search requirements and essentially used the benefits to sustain themselves in slower periods. From the fourth quarter of 2007 to the first quarter of 2010, 5200 corporate officers collected roughly $36.2 million more in benefits than they had paid in. The remaining officers with no intent of ever claiming benefits and the rest of the workforce essentially paying for their benefits. 


Brandon Morgan 
Legerity Property Management, Inc. 

2011 Boise Property Management Performance Review

System - Tuesday, January 24, 2012

Legerity Property Management 2011 Vacancy

Although Legerity Property Management has always had a vacancy rate better than the community's average, this past year, vacancies rates have improved considerably for everyone. Legerity finished 2011 with a 1.4% vacancy rate for the year - our best year yet. Market conditions and our improvements in advertising this past year certainly paid off.

 

2011 Evictions / Lease Breaks

Although we didn't have any evictions in 2011, there were more lease breaks than expected this year. The two top reasons being job loss and interestingly enough relocation for new employment. Fortunately, most of our tenants are good about communicating distress early, so filling the homes quickly and mitigating the need for collection attempts and litigation fees worked out favorably this past year.

Growth in 2011

Legerity  Property Management realized small rent increases on the majority of Ada county properties and had the pleasure of meeting many new clients - some investors and some individuals who entered the rental business as the sales price of their home was unfavorable in another year of distressed sale prices. 

Brandon Morgan 
Legerity Property Management, Inc.

Boise Market Summer Update

System - Tuesday, June 21, 2011

Boise Rental Market

Vacancy rates and housing demand are still proving to be favorable for homeowners as we move into summer both on the rental and sales sides of the market. We have continued with small rent increases throughout Ada county while Canyon county is still lagging behind with very few increases appropriate. The most recent vacancy survey from the local chapter of NARPM(National Association of Residential Property Managers) indicated a 3.3% vacancy rate overall. It seems lately that nearly every prospect mentions how quickly homes are going, and as a result so far this year, we've seen many more prospects quickly put down a deposit with their application right on the spot. Fortunately, with less time on the market, property owners are saving advertising dollars as well. Although there were originally some plans earlier this year to add some additional marketing features for prospects such as rental listing data via text messaging, smart phone technology access, and the like, such increases in marketing costs are currently unjustifiable as there is little issue filling vacancies and will be reevaluated in the future. 

Boise Real Estate

 
In terms of sales, Ada county currently has 4.7 months of inventory on the market, reduced 27% from last year at the same time, which is remarkably low considering that a normal, healthy market is generally considered to have around 6 months of inventory. There are still good short-sale and bank owned property opportunities, but they're typically going for more than the initial listing price as multiple offers on such properties are becoming far more commonplace. These facts coupled with the lower vacancy rates strongly suggest the Boise market has bottomed out and is therefore inclined to begin the crawl upward, the pace of which largely depends on a combination of how many foreclosures there are still to be added to the Boise market, which is an unknown, speculative amount, the rate at which new construction continues, and whether or not any mortgage-related legislation is put in place. 

Brandon Morgan 
Legerity Property Management, Inc.

1099 requirements repealed

System - Thursday, April 21, 2011
President Obama has signed H.R. 4 into law, repealing the new 1099 requirements introduced with the health care bill. The legislation is retroactive to last year, making it as if the new requirements were never in effect. 

Details of this legislation may be viewed at http://www.govtrack.us/congress/bill.xpd?bill=h112-4

This is certainly a victory for landlords. 

Brandon Morgan 
Legerity Property Management, Inc. 

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Morgan Property Management
3905 Rose Hill St.
Boise, ID 83705

Phone: (208) 996-8888
Fax: (208) 996-8800

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