Manassas Park Has Second-Highest Rental Growth Rate in U.S.

Manassas Park boasts the second highest rate of rental growth in the country,  a fact that isn't of great concern to some of those directly involved in the city’s homeowner associations.

 The rental rate in Manassas Park increased by more than 13 percent in the last decade, the Washington Examiner reports.

 Manassas Park ranks just behind Loving County, TX which has the highest rental rate in country at 20 percent according to U.S. Census Data.

 The marked increase—the most since the Great Depression—is attributed to the increase of Hispanic residents in Manassas Park. Census figure show about one in three people who live in the area identified themselves as Hispanic, the examiner reported.

 The Residences at City Center on Manassas Drive, one of the largest rental properties in Manassas Park, has rental occupancy rates that vary, but are typically at more than 80 percent. Exact rental figures weren’t available from Clark Realty, the owner of the property.

 The cost of renting units in City Center and other properties in the area did increase this year, which is normally indicative of a favorable rental market.

 As rental rates increased in the last 10 years, the percentage of homeowners dropped by 1.1. percent—its largest since the 10 years between 1930 and 1940.

 Mark Bailey homeowner association division director for Community Management Corporation, the company that oversees the Manassas Park Station Homeowners Association, said whether an occupant is a renter or owner is almost immaterial.

 “As the managing agent, our role is to guide the board of directors and to ensure the efficient operation of the association,” he said. “ … there are benefits to having all homes occupied by the owner, certainly, but from the association’s perspective if assessments are paid in a timely manner and the resident follows the guidelines of the community which are meant to promote a harmonious and vibrant neighborhood, then the status of the resident—owner or renter— is somewhat irrelevant.”

 Bailey declined to give specifics on how many of the 395 units in Manassas Park Station are being rented.

Some residents of Manassas Park Station said they believe when owners began to default on their home loans, not pay their homeowner association fees and rent out their homes; it causes the HOA fees to increase for everyone.

 This is not true, Bailey said.

“There is no direct correlation between the number of units being rented and the level of an association’s assessments,” he said.

"Community-wide assessment increases are almost always driven by an increase in common expenses.  Sometimes a community may require an increase in its reserve funds that would require an increase in the general assessment rate," Bailey added.

 Many homeowners are selling and going for cheaper rentals because of the housing bubble burst and the subprime mortgage crisis, according to analysts.