Rental Crisis in Seeley Lake? Through Property Managers' Eyes

Editor’s Note: One of the first complaints we hear from people moving to Seeley Lake is they cannot find a place to rent. Potential renters are faced with limited options, budget constraints and lack of availability. Several renters, property managers and landlords were asked the question: Does this constitute a rental crisis in Seeley Lake?

While not all agreed, they identified problems, challenges and potential solutions from their perspective.

This three-part series will bring some of the issues raised to light and perhaps begin a community discussion.

SEELEY LAKE – Property managers provide a unique service as the go-between among owners and renters. They locate, screen and perform background checks on potential long-term renters as well as make periodic checks on the property to ensure the conditions of the lease are followed. They also work with the owners to ensure the rental is livable and any reasonable accommodations are provided for the renter.

Shelley Alsup of Seeley Swan Vacations, LLC and Carrie Sokoloski of Circle S Property Management are two licensed property managers in Seeley Lake that are currently running an active rental business.

Alsup focuses on vacation rentals while Sokoloski rents only long-term rentals. Both agreed that they have a waiting list for their long-term rentals and could easily fill more but they are not available.

Alsup has been a licensed property manager for the past 14 years. She got into it for vacation rentals. When a few of her clients wanted her to manage their homes as long-term rentals, she obliged.

Alsup currently manages 15 properties for vacation rentals and four long-term rentals. She has had up to 26 rentals in the past. Her long-term rentals vary from two-bedroom/one-bath starting at $600 to four-bedroom/two-bath starting around $850. Her vacation rentals rent for $170-$570 per night with a three-night minimum and discounted rates for stays longer than a week.

Alsup is regularly called for long-term rentals. Those that fill out an application with her are put on a waiting list.

“I start at the top of the list and check if they have a job, their past rent history, credit history, driver’s license, bank statement, and the whole check list. If the first person on the list qualifies then they get the home. If they don’t, I just go down the list,” said Alsup. “I just feel that is the fair way to do it.”

Alsup runs her long-term leases for the year starting in May or June. She has seen very little turn over because she has been able to place people that work and they stay.

“For the price they are paying they know they can’t find another place to rent,” said Alsup.

Sokoloski became a licensed property manager in the state of Montana in November 2014. She currently manages seven rentals. Her rent ranges from $550 for a one-bedroom home and would charge up to $1,000 per month for a three-bedroom/two-bath depending on the condition of the home, the neighborhood, the acreage and if it has a garage. She also works for Great Bear Properties, a real estate company in Seeley Lake.

Sokolski said that she often gets calls at Great Bear for people looking for a home priced at $200,000 to $300,000.

“A lot of times what we find is people are priced out. They have a good job, they have good credit but if they are coming here, their spouse doesn’t have a job,” said Sokoloski. “They have to qualify for a loan on one income and that typically isn’t enough. They don’t qualify.”

Sokoloski said the second question is always, what kind of rentals do you have available. Typically she has nothing.

“I tell people all the time, if I had 20 rentals, I could rent them all,” said Sokoloski who feels that many people do not want to rent because they are concerned about wear and tear on their property. “Unfortunately the inventory just is not there.”

When asked if there is a rental crisis in Seeley Lake, Alsup said, “It goes in spurts. In the spring, people want to move and are looking. A lot of people that call are looking for rentals under $500.” Alsup feels anything much less than $600 in Seeley Lake either needs major repairs or is not safe to live.

“I don’t think a lot of the people that don’t live here full-time realize what an issue it is,” said Sokoloski. “I just see people struggling to stay here. They want to be here. They deserve to have safe, clean, healthy housing. Unfortunately there is a lack of it.”

Property Managers’ Challenges

Both Alsup and Sokoloski agree that the biggest challenge for Seeley Lake is not having enough housing available for interested renters and the housing that is available is not affordable based on the jobs available. Sokoloski specifically sees a need for affordable housing for families, homes that are three bedrooms and larger.

“Most people here in Seeley need to have two household incomes by the time they pay the rent and their utilities including electric, power and water,” said Alsup. “When you get down to it, the $600 house just went up to $900. Someone working here with a family - a husband, wife and a couple of kids - it’s going to be tough.”

Sokoloski identified the issue that many subdivisions do not allow manufactured homes, or anything that can be “wheeled in.” While lots are available for $30,000, the cost and amount of time to build a stick built home is not reasonable.

“One of our biggest issues is real estate is so high here. That in turn pushes rent higher because people need to recoup some of their costs,” said Sokoloski. “And the fact that in some of the more affordable areas where we don’t have restrictions on construction, there is a moratorium on septics unless they spend the money to get the multi-stage system.”

Because they are licensed property managers, Alsup and Sokoloski cannot rent anything that does not meet basic health and safety standards, they cannot discriminate based on the personal preferences of the owner and they cannot refuse reasonable accommodations including therapy animals.

“A property owner can rent anything that they want [and rent based on their own requirements]. The recourse is they are going to be turned into the state. But I hear it over and over again, there is the fear that if they call and their landlord finds out, they will get kicked out and have nowhere to go. A crappy rental is better than no rental,” said Sokoloski.

Property Managers’ Solutions

Both Alsup and Sokoloski agree that multi-family complexes or multiple bedroom apartments would help the rental problems however the sewer system would be required to open up affordable lots in town.

Alsup suggested exploring Section 8 housing, referring to the section of the United States Housing Act of 1937 that authorizes them, like what is offered in Missoula. Section 8 housing forms a partnership with tenants and landlords to provide housing opportunities using a Housing Choice Voucher program. In the Housing Choice Voucher program, the Housing Authority pays a fixed amount toward the rent, based on the tenant’s income and the Housing Authority’s approved payment standards.

Sokoloski thinks opening up more places that allow mobile and manufactured homes would allow a bridge for people transitioning into the community and be more affordable.

“If manufactured or modular home were allowed it would give people a fast home that is comparable square footage for the price,” said Sokoloski. “If you are someone who gets a job and has to start in one month or two months there is limited time to transition into the community and a limited building season.”

Sokoloski said Seeley Lake is primarily a second home market. She thinks if more people would consider renting their place long-term, instead of leaving their place vacant or turning it into a vacation rental, that would help the market.

Alsup said that vacation rentals are a better financial investment if “they can dock their boat or put a fishing pole in the water. In the winter, they want to have easy access to snowmobile [trails].” She will not take a vacation rental unless it has good recreational access.

Alsup also said that most people who want a long-term rental do not want a furnished home. All of her vacation rentals are fully furnished and the owners do not want to have to pay to store their belongings.

Sokoloski said based on her experience, owners will choose to rent long-term versus a vacation rental because the renter will take better care of it than someone who stays for only three or four days.

Alsup disagrees. She feels there is less wear and tear on the home that is used as a vacation rental.

“You can make more money in three months than you can in 12 and you only have someone in and out of there for three months instead of 12,” said Alsup. “I haven’t found that people using vacation rentals are hard on property. It is a whole different clientele [that pay the kind of money for a vacation rental].”

Alsup has a vacation rental that rents during the summer and is used as long-term rental from September through May. This has worked great for teachers in the past.

Next week ~ Rental Crisis in Seeley Lake? The Landlords’ Perspective