January 2nd, 2013 8:23 AM by Mary Lynn Pinto
This morning I was quoted in the Monterey Herald on the reduction in military housing allowances for new transfers in 2013 (see Monterey Herald Story).
I first became aware of the decrease when a potential tenant contacted me regarding a home listed for $2695 per month. She had just discovered that her housing allowance was being reduced from $2950 to $2650 and asked for a custom rental agreement (initial rent lower along with an increase when they received an expected promotion in 7 months).
On average, BAH will be reduced 7.5% in Monterey County, according to the Navy Times the hardest hit in the nation (see Navy Times story here).
We will be trying to work with the military by providing comparable rent data from The Monterey Bay Chapter of the National Association of Residential Property Managers, as well as the Monterey County Association Association of Realtors. Years ago, after a length process, NARPM members were successful in getting changes. Many NARPM members enjoy working with military students and families on the Peninsula and we will try to accomodate them to the best of our ability. It is disappointing that Monterey County was the hardest hit per an article in the Navy Times. However, owners of investment property and rental homes on the Peninsula have seen strong demand in the past years (especially 2012 and rents in many Peninsula cities have risen and not decreased). The outlook for rental housing remains strong with both the baby boomers down sizing and the Gen X and Y demand increasing. There still is demand for larger homes with multi generational families. The number of tenants/renters is increasing due to economic factors as well. As the 2013 President of the Monterey Bay Chapter of the National Association of Residential Property Managers, this will be an important issue for 2013!