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Sue Harvey, a director at consultancy Campbell Tickell, estimated the reduction would cause social landlords' expected rental income to fall by 15%.
In the Self Storage Confidence Index, co-sponsored by Cushman & Wakefield, nearly half of the industry professionals expected rental income to increase in the first quarter this year from the last quarter of 2007; about 32percentt said it would remain the same.
This metric takes expected rental income and measures it as a percentage of property value.
The possibility to use the expected rental income as an indicator to evaluate preference and economic value of the developed deposit from the perspective of annuity payments which should be made to a deposit owner when carrying out future production activity was investigated.
If the ratio is high — meaning that home prices are beyond their fundamental value based on expected rental revenues — that points to a bubble.
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"They bought these big homes expecting rental income," said Scott Leggat, vice president of marketing at Outer Beaches Realty.
The firm expects vacancy rates to rise to 17.9percentt by the end of the year and expects rental rates to decline another 5 to 10percentt over the next year and a half.
"Buy-to-let investors may further exacerbate a downturn if they expect rental incomes to fall below their interest payments, and consequently add to selling pressure".
He expects rental rates the company charges for its rigs to increase faster than costs.
Similar to Hertz, Avis is down 20% in 2010 and the company expects rental volumes in the first part of the year to be down compared with 2009.
Mr. Lerner said he expected the rental apartments to be priced at $900 to $1,000 a month for the one-bedroom models and $1,200 to $1,300 for the two-bedrooms.
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