Private Lending Magic: Renters Beware: Double-digit Rent Hikes May be Coming Soon.

Private Lending Magic: Renters Beware: Double-digit Rent Hikes May be Coming Soon.

Renters Beware: Double-digit Rent Hikes May be Coming Soon.

(CNNMoney) — Renters beware: Double-digit rent hikes may be coming soon.
Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.

“The demand for rental housing has already started to increase,” said Peggy Alford, president of Rent.com. “Young people are starting to get rid of their roommates and move out of their parent’s basements.”

By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.

Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years — to a national average that will top $800 per month.

In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years, according to Lesley Deutch of John Burns Real Estate Consulting. In San Diego, she anticipates rents will rise more than 31% by 2015. In Seattle rents will climb 29% over that period; and in Boston, they may jump between 25% and 30%.
This is a sharp change from the recession, when many Americans couldn’t afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Deutch. Many others doubled up together.

As a result, landlords had to reduce prices and offer big incentives to snag renters.
We paid cash for our million-dollar home

Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, the foreclosure crisis continues unabated, and the millions losing their homes are looking for new places to live.

Apartment developers many not be able to keep up with this heightened demand, which will force prices upwards, according to Chris Macke, a real estate analyst with CoStar, which tracks multi-family housing trends.

“There will be an envelope of two or three years,” said Macke, “when the rise in demand for rentals will exceed the industry’s ability to meet it.”

Plus, Alford added, “there’s been a shift in the American Dream. We’re learning from our surveys that a huge proportion of people are choosing to rent.”

They’ve experienced the downsides of homeownership — or seen friends and family suffer — and don’t want to take the risks or pay the higher costs of homeownership.

Where homeownership costs are particularly high, there are many more renters than owners. In Manhattan, for example, only about 20% own their homes; in San Francisco, about of third of the population does; in Los Angeles, less than 40%; and in Chicago, about 44%.

There’s one factor that could rein in rent increases: the huge number of foreclosed homes that could hit the market over the next few years.

In many markets, like Phoenix and Las Vegas, there are neighborhoods filled with recently built, single-family homes going for fire-sale prices. When the cost of owning homes falls well below the costs of renting them, more people will buy.

“That’s always been the biggest competition for rentals,” said Deutc
CampusDoor to Showcase New Private Label Education Loan Program, Community Banks’ Premier Solution for Private Student Lending, on the Interactive 2011 ICBA Mobile App

CampusDoor, one of the leading providers in education funding solutions announced today that they will showcase the Private Label Education Loan Program at the 2011 Independent Community Bankers Association (ICBA) National Convention in San Diego, California. Leveraging CampusDoor’s state-of-the-art technology, infrastructure and experience in private student lending, the Private Label solution provides community banks with the opportunity to offer branded, highly competitive private higher education loans.

Details on the Private Label Education Loan Program will be provided to ICBA National Convention attendees electronically via the ICBA 2011 Mobile App. Powered by Follow Me and created by Core-Apps LLC, the mobile app is available for iPhone, iPod Touch or iPad users in the app store by searching “ICBA 2011”. A version for Blackberry, Android and all web-enabled mobile phones is downloadable by directing the phone’s browser to m.core-apps.com/icba2011. CampusDoor’s information is located under Exhibitors on the mobile app.

By offering The Private Label Education Loan Program powered by CampusDoor, community banks can attract and retain Gen-Y customers and their families by helping them meet the rising cost of college. Designed to supplement a student’s grants, scholarships, federal student loans and other financial aid, undergraduate and graduate private student loans can help students pay for college expenses including tuition, room and board and books while initiating a positive credit history.

According to Damien Q. Elias, Chairman and CEO of CampusDoor, “The Private Label Education Loan Program provides community banks with the premier solution to help their customers pursue their dreams of a college education.”

CampusDoor’s Private Label Education Loan Program provides community banks with loan program design, strategic marketing and branding, program management, a fully automated and compliant origination process and knowledgeable customer service. Drawing upon 15 years of private student lending success, CampusDoor has developed the most robust application processing platform in the industry allowing borrowers and their cosigners to apply online 24/7 and get a decision in less than 60 seconds. The in-house Customer Contact Center guides applicants through the process and leverages CampusDoor’s proprietary pull-through methodology to assure every qualified applicant converts to a funded loan. CampusDoor’s programs are fully compliant with all applicable student lending regulations.

Interested Community Bankers can visit CampusDoor’s at booth #742 in the Techworld area during the 2011 ICBA National Convention to learn more. Representatives can also be reached at 877.392.8562, Option 3 or by email at experts@campusdoor.com. Attendees and the public can follow CampusDoor, username “@campusdoorpsl”, and the 2011 ICBA National Convention by searching for “#ICBASD11” on Twitter.

About CampusDoorCampusDoor provides innovative student loan solutions, systems and processing to lenders enabling them to help their customers pay for college. We understand the education finance marketplace, and leverage our knowledge and technology to help our clients achieve their goals.

CampusDoor was founded in 1995 to deliver student loans to borrowers and their families via web-based application systems. The Company pioneered the first on-line private student loan application with a live underwriting and response system. CampusDoor has processed over $10 billion in completed loan applications representing over 1.2 million unique borrowers. More information is available at www.campusdoor.com.

Real Estate Landlords - Learn the Top Ten Tax Deductions

Learn about the many tax deductions available to rental property owners.  Every year, millions of landlords pay more taxes on their rental income than they have to. Why? Because they fail to take advantage of all the tax deductions available for owners of rental property. Rental real estate provides more tax benefits than almost any other investment.
Often, these benefits make the difference between losing money and earning a profit on a rental property. Here are the top ten tax deductions for owners of small residential rental property.

1. Interest
Interest is often a landlord's single biggest deductible expense. Common examples of interest that landlords can deduct include mortgage interest payments on loans used to acquire or improve rental property and interest on credit cards for goods or services used in a rental activity.

2. Depreciation
The actual cost of a house, apartment building, or other rental property is not fully deductible in the year in which you pay for it. Instead, landlords get back the cost of real estate through depreciation. This involves deducting a portion of the cost of the property over several years.

3. Repairs
The cost of repairs to rental property (provided the repairs are ordinary, necessary, and reasonable in amount) are fully deductible in the year in which they are incurred. Good examples of deductible repairs include repainting, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows.

4. Local Travel
Landlords are entitled to a tax deduction whenever they drive anywhere for their rental activity. For example, when you drive to your rental building to deal with a tenant complaint or go to the hardware store to purchase a part for a repair, you can deduct your travel expenses.  If you drive a car, SUV, van, pickup, or panel truck for your rental activity (as most landlords do), you have two options for deducting your vehicle expenses. You can:
    * deduct your actual expenses (gasoline, upkeep, repairs), or
    * use the standard mileage rate (51 cents per mile for 2011; up from 50 cents per mile in 2010). To qualify for the standard mileage rate, you must use the standard mileage method the first year you use a car for your business activity. Moreover, you can't use the standard mileage rate if you have claimed accelerated depreciation deductions in prior years, or have taken a Section 179 deduction for the vehicle.

5. Long Distance Travel
If you travel overnight for your rental activity, you can deduct your airfare, hotel bills, meals, and other expenses. If you plan your trip carefully, you can even mix landlord business with pleasure and still take a deduction.

However, IRS auditors closely scrutinize deductions for overnight travel -- and many taxpayers get caught claiming these deductions without proper records to back them up. To stay within the law (and avoid unwanted attention from the IRS), you need to properly document your long distance travel expenses.

6. Home Office
Provided they meet certain minimal requirements, landlords may deduct their home office expenses from their taxable income. This deduction applies not only to space devoted to office work, but also to a workshop or any other home workspace you use for your rental business. This is true whether you own your home or apartment or are a renter.

For the ins and outs on taking the home office deduction, see Home Business Tax Deductions or Every Landlord's Tax Deduction Guide, both by Stephen Fishman (Nolo).

7. Employees and Independent Contractors
Whenever you hire anyone to perform services for your rental activity, you can deduct their wages as a rental business expense. This is so whether the worker is an employee (for example, a resident manager) or an independent contractor (for example, a repair person).

8. Casualty and Theft Losses
If your rental property is damaged or destroyed from a sudden event like a fire or flood, you may be able to obtain a tax deduction for all or part of your loss. These types of losses are called casualty losses. You usually won't be able to deduct the entire cost of property damaged or destroyed by a casualty. How much you may deduct depends on how much of your property was destroyed and whether the loss was covered by insurance.

9. Insurance
You can deduct the premiums you pay for almost any insurance for your rental activity. This includes fire, theft, and flood insurance for rental property, as well as landlord liability insurance. And if you have employees, you can deduct the cost of their health and workers' compensation insurance.

10. Legal and Professional Services
Finally, you can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors, and other professionals. You can deduct these fees as operating expenses as long as the fees are paid for work related to your rental activity.

Did You Know?
    * Landlords can greatly increase the depreciation deductions they receive the first few years they own rental property by using segmented depreciation.
    * Careful planning can permit you to deduct, in a single year, the cost of improvements to rental property that you would otherwise have to deduct over 27.5 years.
    * You can rent out a vacation home tax-free, in some cases.
    * Most small landlords can deduct up to $25,000 in rental property losses each year.
    * A special tax rule permits some landlords to deduct 100% of their rental property losses every year, no matter how much.
    * People who rent property to their family or friends can lose virtually all of their tax deductions.

If you didn't know one or more of these facts, you could be paying far more tax than you need to. For more information, see Every Landlord's Tax Deduction Guide, by Stephen Fishman (Nolo).

CampusDoor to Showcase the Private Label Education Loan Program:
Community Banks’ Premier Solution for Private Student Lending



CampusDoor, one of the leading providers in education funding solutions will showcase its Private Label Education Loan Program at the 2011 Independent Community Bankers Association (ICBA) National Convention in San Diego, California. Leveraging CampusDoor’s state-of-the-art technology, infrastructure and experience in private student lending, the Private Label solution provides community banks with the opportunity to offer branded, highly competitive private higher education loans.

By offering The Private Label Education Loan Program powered by CampusDoor, community banks can attract and retain Gen-Y customers and their families by helping them meet the rising cost of college. Designed to supplement a student’s grants, scholarships, federal student loans and other financial aid, undergraduate and graduate private student loans can help students pay for college expenses including tuition, room and board and books while initiating a positive credit history.

According to Damien Q. Elias, Chairman and CEO of CampusDoor, “The Private Label Education Loan Program provides community banks with the premier solution to help their customers pursue their dreams of a college education.”

CampusDoor’s Private Label Education Loan Program provides community banks with loan program design, strategic marketing and branding, program management, a fully automated and compliant origination process and knowledgeable customer service. Drawing upon 15 years of private student lending success, CampusDoor has developed the most robust application processing platform in the industry allowing borrowers and their cosigners to apply online 24/7 and get a decision in less than 60 seconds. The in-house Customer Contact Center guides applicants through the process and leverages CampusDoor’s proprietary pull-through methodology to assure every qualified applicant converts to a funded loan. CampusDoor’s programs are fully compliant with all applicable student lending regulations.

Visit CampusDoor’s at booth #742 in the Techworld area during the 2011 ICBA National Convention to learn more. Representatives can also be reached at 877.392.8562, Option 3 or by email at experts@campusdoor.com to schedule a brief demonstration prior to the event.

About CampusDoor
CampusDoor provides innovative student loan solutions, systems and processing to lenders enabling them to help their customers pay for college. We understand the education finance marketplace, and leverage our knowledge and technology to help our clients achieve their goals.

CampusDoor was founded in 1995 to deliver student loans to borrowers and their families via web-based application systems. The Company pioneered the first on-line private student loan application with a live underwriting and response system. CampusDoor has processed over $10 billion in completed loan applications representing over 1.2 million unique borrowers.

www.campusdoor.com

CampusDoor Launches the New CU Student HELP College Planning Service

CampusDoor Launches the New CU Student HELP College Planning Service with a Free Webinar for Credit Unions Nationwide

CampusDoor, the leading provider of education funding solutions is pleased to announce a new product designed to help families pay for education. CampusDoor has partnered with Collegiate Funding Services, an integrated college planning solutions provider to offer the CU Student HELP College Planning Service. This service provides a web-based college planning solution for credit unions as the perfect complement for a credit union’s private student loan product from CampusDoor. By delivering a comprehensive college planning and funding solutions credit unions are able to support their communities and attract new Gen Y customers and their families. Credit unions that offer the college planning service can help members avoid using their credit union deposits and investments, providing customized suggestions to the credit union’s products to achieve the goals of the member!


Credit union members use the college planning service free-of-charge to help them make informed college planning and funding decisions and save on their out-of-pocket college costs. Customized college planning and funding reports are dynamically generated through a branded online interface from the credit union's website. The customized reports contain actionable information, strategies and tips to help the family make informed college planning and funding decisions.


A highlight of the CFS generated reports is that it provides much needed context and rationale for college savings and funding options available through the credit union. This helps the families choose the option that meets their needs and circumstances. The customized report content also highlights the lending products available through the institution, including the credit unions CU Student HELP private student loan with links directly into online loan applications.


On Tuesday, March 8th at 2:00pm EST, CampusDoor will be hosting an informational webinar to provide further details about the program for credit unions nationwide. Those wishing to participate in the webinar or looking for further information are encouraged to call 877.392.8562 Option 3, or email info@custudenthelp.com.


About CampusDoor
CampusDoor provides innovative student loan solutions, systems and processing to lenders enabling them to help their customers pay for college. We understand the education finance marketplace, and leverage our knowledge and technology to help our clients achieve their goals.
CampusDoor created CU Student HELP so that credit unions can offer private student loans and college planning service to their members and help them to achieve their higher education dreams. More information is available at www.campusdoor.com and www.custudenthelp.com.


About Collegiate Funding Solutions
Collegiate Funding Solutions Collegiate Funding Solutions (CFS) is a leading provider of innovative and integrated web-based college funding solutions and college planning software for financial institutions and financial services professionals. For additional information on Collegiate Funding Solutions, visit the company's Website at www.collegiatefundingsolutions.com.