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9 Ways to Get Rid of Mice in Rental Properties

9 Ways to Get Rid of Mice in Rental Properties

Mice in rental properties can be a real headache for property managers and landlords so here are some ways to get rid of them.

By Evelyn Long

Mice are an occasional reality for any homeowner, but they can wreak even more havoc in a rental property. Multiple units and occupants can attract rodents in different ways, and it’s hard to properly control an infestation once it’s under way. Property managers know they need to remedy the problem immediately, but how can they do so effectively?

Prevention, management and communication with tenants can help everyone get on the same page to drive rodents out. The following nine tips can help landlords effectively get rid of mice in their units.

1. Eliminate Points of Entry

The first step is to determine how the little pests gain access in the first place. Unfortunately, even the smallest crack or entry point can invite mice inside. Mice can eat through walls and they only need a hole the size of a dime to get inside.

The bulk of prevention here can be done with thorough inspection. Landlords should schedule appointments to walk through the property — if it is occupied, they need to give their tenants notice — and seal up any cracks in doors or windows. Steel wool and caulk work best because rodents can’t chew through them. Pay close attention to areas around plumbing fixtures and cable lines — these can provide ingress points.

If a tenant is dealing with an ongoing mouse problem, ask them to look for these holes on a regular basis and share tips for plugging them quickly with steel wool. Then, you can find time to do a more thorough repair job to keep the rodents at bay.

2. Banish Temptation as Much as Possible

It isn’t that mice eat much — but they can contaminate entire stashes of food. That giant box of cereal a tenants bought at Costco is now waste unless they want to risk a bowl of hantavirus for breakfast. Mice are resourceful creatures and will investigate kitchens to find new things to eat.

Tenants should banish temptation by keeping the premises clean. While property owners can’t demand they mop and dust weekly, they can include clauses to prevent common causes of mouse bait — like leaving out used pizza boxes. Landlords should review these documents when their properties are  unoccupied, because you can’t issue one retroactively once a prospective customer signs.

Another tactic to use — with caution — is the right to inspect. While states usually require a 24-hour or more notice, property owners may go through and document the unit’s condition. Photographs will become valuable evidence should an infestation result in a court battle.

Bear in mind that even the best tenants won’t appreciate having someone tramping through their home, particularly during a pandemic. However, when mice in rental properties are threatening not only your tenants’ health but your other units and property as a whole, be firm in reminding troublesome renters of their responsibilities to keep their property clean.

9 Ways to Get Rid of Mice in Rental Properties
Mice in rental properties can be very resourceful.

3. Lay Traps

Traps should be laid to get rid of an existing infestation. Mice typically travel with family, so multiple traps will be required. Whether you prefer the classic snap trap or the capture-and-release, be prepared to check frequently for success, and dispose of mice quickly.

Property managers and tenants, depending on whether the unit is occupied, should place traps along walls and consider bait such as peanut butter to attract mice. Rodents are smart, so you may need to switch up tactics and try new traps or locations if nobody is biting.

4. Prevent Property Problems with Better Traps

It’s often better to stay away from the inhumane glue traps that leave mice to dehydrate and starve to death, especially if they can’t be checked frequently. Mice may even chew off their limbs in an attempt to escape, which can also leave an unpleasant clean-up for property managers or tenants once the trap is found.

The same goes for poison pellets. These don’t kill instantly by design, meaning mice will wander off after consumption. The sick animal can crawl off into a wall or hidden area to decompose, which can lead to odor concerns later.

If you don’t have much empathy for mice, the classic snap trap is reliable and quick to kill without prolonging suffering. Considering the catch-and-release method? Varmints should be released at a considerable distance from the property to prevent re-entry. Mice have a keen sense of smell. Plus, no one wants them potentially infesting other units.

5. Clean Out Storage Areas

If you own a building with shared space like an attached storage unit or basement, rodents can infest these areas before you or your tenants notice. Landlords should host an annual cleanout and inspect and treat the space for pests in order to prevent greater infestation.

Stacks of old books and magazines make ripe nesting grounds for mice in rental properties and insect pests alike. Control efforts should continue year-round. Don’t slack off in the winter — that’s when rodents reproduce and add to their broods.

6. Try Peppermint Oil

Some people claim that peppermint essential oil or peppermint plants effectively dissuade both mice and spiders — two critters most tenants are happy to bid farewell to.

Property managers can apply a small amount of peppermint oil around areas of potential ingress. However, repeated applications are required, so work with tenants if choosing this method. Tenants with a green thumb can even consider growing some peppermint at home — even if it isn’t the most effective, they can still enjoy a pleasant smell.

7. Go Ultrasonic

Another humane way to deter rodents from returning is to use ultrasonic repellers. These devices emit a high-pitched sound that’s inaudible to humans but painful to rodents. Most models are safe to use around household pets like dogs and cats.

However, actual results are mixed with this method, and property managers may not get a strong return on investment in providing these systems to tenants. If attempted, these repellents are best used in conjunction with more proven traps.

8. Keep Landscaping Trimmed

Mice are little thieves, and as with the human variety, they seek places to hide when breaking and entering. Keeping outside landscaping trimmed can deter both types of miscreants. Property managers who practice regular upkeep can enjoy pest prevention on top of other benefits, like curb appeal.

9. Say Yes to Cats

This isn’t a guaranteed solution, but there’s something to be said for having a nature-engineered pest-control service living in a unit. If you’re on the fence about pets, allowing responsible tenants to have cats could entice renters while taking care of mice in rental properties.

As with any allowance, review your lease and add protective clauses to make sure the arrangement works for both parties. Landlords should set a reasonable limit on the number of animals allowed per residence, but most felines adore keeping the rodent population in check.

Get Rid of Mice in Rental Properties

Getting rid of mice in rental properties can take time and dedication. If possible, it’s best to focus on prevention so tenants don’t have to worry about pest-control visits and trap management. However, since mice are a fact of life, a combination of property maintenance and pest control is usually the key to solving the problem.

Property owners can get rid of mice with the nine tips above. Doing so protects their investment and can attract a more highly qualified — and timely-paying — tenant.

About the author

Evelyn Long is the editor-in-chief of Renovated, where she shares real-estate market and maintenance advice for investors and their tenants. Based in Baltimore, Evelyn is enthusiastic about both brownstones and crab cakes.

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Secondary Market Rents Soar While Primary Markets Plummet

Cars pass by the Amazon distribution warehouse in the industrial area of Fontana, California in the Inland Empire where Secondary Market Rents Soar

Secondary market rents are growing as rent growth is varying across markets as the divide between gateway and secondary metros continues to increase with the pandemic, according to the October report from Yardi Matrix.

“With each passing month, outmigration from large gateway markets to secondary and tertiary tech hubs is amplifying. At this point, the apparent winners are markets in close proximity to large gateways but with significantly lower costs of living,” the report says.

  • Multifamily rents were flat for the third consecutive month in October, but the national numbers appear misleading, as the sector is experiencing an ever-increasing divergence between outperforming and underperforming markets. On a year-over-year basis, rents fell 0.6 percent nationwide.
  • Secondary and tertiary markets are performing the best, as high costs and limited community amenities drive outmigration from gateway markets. The Inland Empire (6.0 percent), Sacramento (5.0 percent), Las Vegas (3.9 percent) and Phoenix (3.8 percent) lead our top 30 markets, with each market benefiting from migration out of the Bay Area and Los Angeles.
  • Not surprisingly, New York (-10.0 percent), San Francisco (-8.2 percent), Washington, D.C. (-3.7 percent), Boston (-3.1 percent), Chicago (-2.9 percent) and Los Angeles (-2.8 percent) all fell at or near the bottom of our rankings.

For example, the average rent in Sacramento is 34 percent less than in San Francisco. The report says even tertiary markets with a strong tech presence, such as Boise, Idaho and Portland, Maine, are attracting people from expensive coastal markets.

Secondary Market Rents Soar While Primary Markets Plummet
Yardi Matrix says demand remains strong, as gateway residents are not only moving to nearby secondary metros but also relocating to other tech hubs in the Sun Belt and Southwest. Chart courtesy of Yardi Matrix.

“As many workers, especially those in creative and knowledge-based industries, enjoy increased flexibility to work remotely, many individuals are weighing the costs and limitations of gateway markets versus the benefits of smaller cities and are choosing to relocate.

‘‘Demand remains strong, as gateway residents are not only moving to nearby secondary metros but also relocating to other tech hubs in the Sun Belt and Southwest.

“Primary markets will not suffer forever, but their recovery will depend on how much newly relocated individuals enjoy their adopted homes and cities and whether they choose to stay,” Yardi Matrix says in the report.

Short-term rent growth was flat in October

Rents were flat month-over-month in October for the third consecutive month, the report says.

“However, secondary markets made significant rent gains, with the Inland Empire, Las Vegas, Sacramento and Phoenix all increasing 1.0 percent or more on a monthly basis. These markets tend to outperform during fall and winter months, as they are not susceptible to seasonal weather that slows renting in northern markets, but this year’s performance is even better than normal, as migration into these markets continues to increase.”

Rents are falling in gateway markets, “as some analysts predict five years of outmigration has been accelerated into the past six months,” the report says. The trend toward suburban submarkets and smaller markets has hurt the denser urban cores of the major markets. “Some secondary markets—including Seattle, Austin and Minneapolis—are also getting squeezed on both rent and occupancy, specifically in their urban submarkets,” the report says.

Help for apartment owners?

“There will likely be another round of government stimulus, but given the divided Congress, the total package will be less than if the Senate had flipped Democratic. (A runoff election in Georgia on Jan. 5 will determine the winners of two senate seats).

“For apartment owners and operators, additional stimulus and unemployment benefits paid to residents will help cover housing costs, especially in the workforce housing sector, where job loss is most concentrated.

“As the pandemic grinds on, there does appear to be hope for an economic recovery on the horizon, although there may be a few more months of pain in the near term,” Yardi Matrix says in the report.

Get the full report here from Yardi Matrix.

About Yardi Matrix:

Yardi Matrix researches and reports on Multifamily, Office and Self Storage properties across the United States, serving the needs of a variety of industry professionals.Yardi Matrix Multifamily provides accurate data on 18+ million units, covering over 90% of the U.S. population. Contact them at (480) 663-1149.

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Do We Have Any Recourse With Property Management Company Over Tenant Damages?

Do We Have Any Recourse With Property Management Company Over Tenant Damages?

This week the question for Ask Landlord Hank is about how a property management company deals with tenant damage. Remember Landlord Hank is not an attorney and is not giving legal advice.

Dear Landlord Hank,

We inherited a single-family home that already had a property management company.

Lucky for us, the tenant moved out just before moratorium!

However, the home was trashed and it was clear that this had been going on for quite a while. Garbage bags and damage were everywhere. For instance, a glass shower door had broken glass and large pieces of glass protruding! And the tenant was still using the shower with just a curtain hanging! And there were 4 small children living in the home!

My question is, do I have any recourse with the property management company?

They had done their walk-through and had asked the tenant to replace the door, but failed to follow up. We also had smoke detectors beeping from June till December, when I was granted permission to enter with the property-management owner. Clearly there was neglect. We sold the house with a loss of more than $50,000 due to all the problems, including the pandemic.

Please advise if there is any way to recapture all the money lost?

Sincerely,

Pat

Dear Pat,

I’m so sorry to hear about your situation.

Tenants like these are exactly why more people aren’t landlords; and in this case, you had a property management company that put these tenants into your place!

The property management company hopefully did a complete background screen on these tenants and shared these results with you.

Even though the company didn’t directly cause the damage to your property, they have a duty to you to protect and maintain your property and do periodic inspections (that is in my MLS agreement, anyway).

When the property management company did a walk-through inspection and noted the damage in addition to the shower door, they should have contacted you and made you aware of the situation. Did the company owner talk to you about evicting the tenants?

The eviction moratorium has put a strain on many landlords and driven some to foreclosure. I’d consult an attorney after you review your management agreement with the property-management company. Best of luck!

Sincerely,

Hank Rossi

Ask Landlord Hank: This week the question for Ask Landlord Hank is about a property management company and tenant damages to a rental property.
Landlord Hank says, “When the property management company did a walk-through inspection and noted the damage in addition to the shower door, they should have contacted you and made you aware of the situation.”

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Oregon Supreme Court Will Review Portland Relocation Ordinance

Oregon Supreme Court Hears Landlords’ Appeal of Relocation Ordinance

The Oregon Supreme Court has granted review of the Owen decision, which relates to landlords’ appeal to invalidate the Portland Relocation Ordinance, according to attorney John DiLorenzo.

Portland landlords had appealed to the Oregon Supreme Court after losing the appeal of the Portland Relocation Ordinance in the Oregon Court of Appeals.

“They are not limiting argument to any particular issue, so I assume it means each of the arguments we made in the petition will be in play in the Supreme Court,” DiLorenzo said.

“Winning on any of those arguments would result in invalidating the Relocation Ordinance and possibly other city ordinances,” he said.

The landlords argue the city ordinance is in conflict with state laws that ban rent control. On March 7, 2018, the Portland City Council made the ordinance permanent and extended its application to landlords who own as few as one rental unit.

The background on the case

“The legislature has determined that rent control is a matter of statewide concern and proclaimed that no local government may enact any ordinance that either ‘controls the rent that may be charged for the rental of any dwelling unit,’ ORS 91.225(2), or that is inconsistent with that prohibition, ORS 91.225(7).,” DiLorenzo said when the trial court’s decision was appealed to the Court of Appeals.

John DiLorenzo attorney Portland Relocation Ordinance Oregon Supreme Court
John A. DiLorenzo Jr. said, “They are not limiting argument to any particular issue, so I assume it means each of the arguments we made in the petition will be in play in the Supreme Court.”

“Notwithstanding the legislature’s unambiguously expressed intent to preempt local rent-control legislation, the city enacted the ordinance, which requires landlords to pay thousands of dollars to tenants upon the tenants’ demand when a landlord gives notice of a rent increase of 10 percent or more in a 12-month period—meaning the ordinance penalizes rent increases that cumulatively total 10 percent or more in any rolling 12-month period.”

DiLorenzo explained why the ordinance is in violation of state law.

“The ordinance calls the payments ‘relocation assistance,’ but tenants are not required to use the money for that or any other designated purpose. Further, the requirement to make the payments is triggered solely by the size of the rent increase and is intended to limit those rent increases. By penalizing rent increases greater than a certain size, the ordinance is designed to control the rent that may be charged. Accordingly, the ordinance runs afoul of ORS 91.225(2) and ORS 91.225(7), which forbid the rent-control aspects of the ordinance.”

Portland relocation ordinance review Oregon Supreme Court

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Justice Department Sues Apartment Owners, Managers for Racial Discrimination

Justice Department Sues Apartment Owners, Managers for Racial Discrimination

The U.S. Department of Justice has filed a lawsuit alleging racial discrimination by the owners, operators and rental agent of several apartment complexes in Pearl, Miss., and violation of the Fair Housing Act by discriminating against African Americans based on their race, according to a release.

The department’s complaint seeks relief against three owners and operators of the properties — SSM Properties LLC; Steven Maulding; and Sheila Maulding — as well as James Roe, who acted as a rental agent for the apartment complexes on behalf of the other defendants. The lawsuit is based on the results of testing conducted by the Louisiana Fair Housing Action Center and a charge of discrimination issued by the Department of Housing and Urban Development (HUD). Testing is a simulation of a housing transaction that compares responses given by housing providers to different types of home-seekers to determine whether or not illegal discrimination is occurring.

According to the department’s complaint, Roe encouraged white testers to rent at Pearl Manor Apartments but discouraged African-American testers from renting there, telling one African-American tester that if he rented to her at this complex, the residents would think he had “let the zoo out.”

In addition, Roe told African-American testers about fewer rental units than white testers, allowed white testers to view certain apartments while not offering or allowing African-American testers the same opportunity, and imposed more stringent financial and employment criteria and inquiries on African-American testers than on white testers. The lawsuit alleges that SSM Properties and Steven and Sheila Maulding are legally responsible for Roe’s alleged racial discrimination because he worked as their rental agent.

Fair Housing Act prohibits racial discrimination

“More than a half century ago, Congress enacted the Fair Housing Act to prohibit landlords and others from denying people the opportunity to live where they want because of their race, color, or other protected characteristics,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division in the release.

Justice Department Sues Apartment Owners, Managers for Racial Discrimination
Eric S. Dreiband said, “Congress enacted the Fair Housing Act to prohibit landlords and others from denying people the opportunity to live where they want because of their race, color, or other protected characteristics.”

“Some misguided people unfortunately continue to defy this law by segregating and excluding people because of their skin color. This uncivilized and cruel discrimination hurts people; it must end, now, and the Department of Justice is determined to put a stop to it. All Americans should be free to live anywhere in the United States without regard to the color of their skin. No one’s housing choices should be limited because of race or color or by more subtle differences in the way home-seekers are treated when they ask about available properties. This department is committed to ensuring equal housing opportunities, regardless of race, including by using fair-housing testing to uncover hidden discrimination that might otherwise go undetected.”

“Treating people differently in housing based on the color of their skin is not only morally and ethically reprehensible and incompatible with American principles, but against federal law,”  said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “We in the Department of Justice will always strive to ensure that justice is done and that people are treated equitably and fairly, especially when seeking and trying to access such an essential cornerstone of a free society as housing.”

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How 2020 Can Positively Affect Your Assets And Rentals In 2021

For rent and How 2020 Can Positively Affect Your Assets And Rentals In 2021

David Pickron offers some thoughts on how the year 2020, like any challenging circumstance, should cause us to take the time to pause and reflect on what we learned and how that will serve as a guide moving forward on whether to acquire, sell or hold steady on rentals.

By David Pickron

As an early adopter of new technology, I was so excited when MapQuest became mainstream in the early 2000s.  After having worked as a process server for about 10 years at the time, I knew my way around my home city of Phoenix fairly well.

But with this new technology I felt that I could work faster and smarter than anyone else out there. I began relying on the directions provided by this service, setting aside my hard-earned knowledge of a growing metropolis.  Like anyone who has relied wholly on a mapping software, I soon found myself becoming an expert “U-turner,” as I was often off-course.

Off-course may be the perfect term to sum up 2020.  But like any challenging circumstance, it does give us the time to pause and reflect on what we learned and how that will serve as a guide moving forward.  As a serious investor, I spend a good part of my end-of-year review with my wife (who runs our investments) analyzing our current situation and then creating a plan for the next year.  Below are two of the key areas that I analyze annually and recommend focusing on as you look to a new year and new opportunities.

Acquire, Sell or Hold Steady

If there were ever a year where we may have felt like throwing our hands in the air and selling everything, 2020 fits the bill: COVID-19, the loss of income and resulting inability for some of our renters to pay, and eventually an eviction moratorium mandate from the federal government.

Hard times call for hard decisions.  Your analysis in this area must involve thoroughly reviewing each of your properties and devising a game plan specific to each one.  As an example, after one of our review and planning sessions five years ago, we made the decision to acquire some short-term rentals.  Being in Phoenix, we focused on winter visitors looking to escape the cold for three months.  We mapped out how and where we wanted to buy, considered if any of our current properties could work in this model, determined the platform we would use to advertise, and evaluated the ROI for this model versus traditional renting.  We executed our plan and eventually bought six homes and condos that worked well for winter visitors, but also have been filled year-round with other short-term renters.  They have been great investments so far, generating four times more income than a traditional rental.  But the big question is, will they be the same in 2021?

Pivot Usage Type

Continuing our story, due to COVID-19 our winter visitors are not booking like they have in the past.

This has led us to a healthy discussion on how we can pivot the primary usage of our properties to ensure they are still income generators.  That discussion created a lot of questions:

  • Is it time to convert these short-term rentals into more of a traditional model?
  • What would we do with 6 washers and dryers, 18 beds, 8 couches, dining room tables and more?
  • What happens next year if the rentals come back?
  • Will that require $30,000 for furnishing those units again?
  • Where is the market today in regard to new homes in a hot market like ours?

Answering those questions led us to decide to keep these properties as furnished short-term rentals, but to switch our focus to people who are between selling their existing home and buying a new one.

This decision then generated a whole slew of new questions, such as how would we find renters, what would we charge for rent, and how are these renters different from winter visitors?  All valid questions that we are figuring out.  My next step is to visit the realtors in the new home communities to let them know what I have available.  Although this is a new strategy that pivots from where we were previously, I am confident it will work based on our analysis.

These are just two of the many topics we review in-depth each year.  Every rental is unique and poses  different challenges and opportunities.

In addition to the two key areas we discussed, we also consider the following:

  • Location: Is it time to sell or acquire based on what is happening in a certain market?
  • Tenants: Are we happy with our current tenants or should we be looking for someone new?
  • Government regulations: Are there changes that help or hurt our investments?
  • Improvements: What does each property need to ensure it is desirable?
  • Taxes: How do changes in state, county and city taxes affect our bottom line?
  • Vacancy: What vacancy rate do we aim for to ensure short- and long-term profitability?
  • Policies: Do we add, alter, or eliminate current policies to entice renters to stay or rent?

Performing this type of analysis will easily help you identify whether you are currently in the best position with your properties or if you need to change a few things.  These property-specific questions are great, but you also need to consider how you manage your property.  Is it time to hire a property-management company, or can you continue doing it yourself?  Are there available technology platforms that help you onboard tenants, manage, and collect rent?

No doubt there is room for adjustment or improvement in how we manage our properties.  Although 2020 has taken most of us into uncharted territory, investing the time to map out your 2021 goals will make you a better investor and manager.  After all, U-turns or adjustments are okay as long as they help us successfully reach our destination.

I would love to hear your creative ideas on how you are dealing with today’s uncertain environment. David@rentperfect.com

About the author

David Pickron on reviewing your investment properties and assets to learn from 2020 and prepare for 2021ty

David Pickron is President of Rent Perfect and a fellow landlord who manages several short- and long-term rentals.  He is a private investigator and teaches organizations across the country the importance of proper screening.  His platform, Rent Perfect, was built to help the small landlord find success.

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10 Ways Apartment Amenities Have Changed During Covid-19

10 Ways Apartment Amenities Have Changed During Covid-19

The truth is that apartment amenities have changed during the COVID-19 pandemic, and they will continue to do so for the foreseeable future so here are 10 ways and more they have changed.

By Justin Becker
Property Manager

As we approach 2021, the COVID-19 pandemic shows no signs of slowing down. There is no denying that adjustments have had to be made for the real estate industry and the multifamily housing industry.

Still, the reality is that online services, virtual apartment tour showings, and frequent cleaning of high-touch surfaces are not enough to make our everyday world a less contagious place.

Unfortunately, this is more than evident as cases continue to rise, and states and businesses continue to open and close to safety concerns.

With only two months left in 2020, it is not too surprising that many real estate developers and property managers are looking for more long-term solutions to ensure that their tenants or occupants are safe. This is especially true when it comes to things like multifamily-housing amenities.

For the last couple of months, many have noticed a shift in how things are being designed and what measures property managers are putting in place to ensure that people can still use rent apartments, use gym facilities, and still enjoy some of the features that brought many of their tenants to multifamily housing in the first place.

The truth is that apartment amenities have changed during the pandemic, and they will continue to do so for the foreseeable future.

That said, many property-management teams and landlords are asking themselves what they can do to make their buildings in complexes safer for everyone and reduce the spread of COVID-19.

No. 1- Changes in Apartment Gathering Places

One of the very first things that many landlords and property managers did during the onset of COVID-19 is turn gathering places into multi-purpose spaces that people could be in and safely social distance.

For instance, lounges and other areas are now being repurposed for homeschooling and remote work. Furthermore, landlords are investing in more movable furniture, which allows them to set seating, dining, and studying/work areas six or more feet apart.

No. 2- Converting Clubhouses and Game Rooms into Co-Working Spaces

Similarly, game rooms are also being converted into more practical spaces for residents who are now essentially homebound.

Moreover, outdoor spaces have been heavily used this summer and fall, as CDC guidelines have indicated that being outdoors is less of a health risk. In warmer places, property managers are still relying on rooftop decks and other outdoor spaces to facilitate social distancing and add some ventilation.

10 Ways Apartment Amenities Have Changed During Covid-19 with more outdoor spaces like this in use
In warmer climates, property managers use outdoor spaces to facilitate social distancing and add some ventilation.

In contrast, in cities or areas where it is quickly getting colder, management teams are looking into outdoor heaters and enclosures that will allow residents to safely socialize while still being in a similar or almost comparable outdoor setting.

No. 3- Rethinking Living Spaces inside Apartment Units

In an effort to showcase apartments for rent, property managers have been rethinking living spaces inside their apartment homes.

For example, multi-bedroom units are now being advertised as one-bedroom apartments with home offices or remote learning spaces, instead of the traditional marketing for 2-bedroom or 3-bedroom apartments. Single-bedroom apartments are showcasing a creative space/working area where residents can earn a living in the comfort of their own home, since a significant number of people are now working from home.

No. 4- Creating Co-Working Spaces with Dividers As Apartment Amenities

Property managers also turned to coworking spaces that already existed in their apartment buildings and added dividers so their residents could still use the spaces but have an additional layer or barrier between them and the next person due to COVID-19. Note, residents are still required to wear masks in such settings and observe social distancing.

No. 5- New Spacing Requirements

What’s more, landlords and property managers are having to get creative with spacing out everything and observing social-distancing protocols. As previously mentioned, this is evident with new lounge spaces and so on.

No. 6- Better Ventilation and Ionization Systems

In addition to new spacing requirements, landlords have found unique and creative ways to increase ventilation throughout their apartment buildings.

In fact, some have gone so far as to invest in hospital-grade ventilation systems. For instance, MERV 13 filters have been integrated into units, amenity rooms, and common areas. Plus, high-end apartment communities are also adding an extra safeguard with special ionization systems in various building ducts. These unique ionization systems zap viruses that may have snuck through building ventilation systems.

No. 7- Fewer Touch Surfaces and Frequent Cleaning

Moreover, if you walk into an apartment complex or building these days, you will notice that there are fewer touch surfaces, which means now there are more key fobs to unlock lobby doors, motion-triggered faucets, and automated toilets.

High-touch areas that cannot be motion-triggered are required to be cleaned every hour—or there are automated mists that disinfect small, poorly ventilated spaces.

No. 8- More Copper or Antimicrobial Surfaces

Similarly, there has been an increase in copper and  antimicrobial surfaces.

Anything that can now be made out of copper, even some workout equipment, is now showing up in multifamily housing developments throughout the country.

No. 9- Fitness Facilities and Half-Capacity

Speaking of fitness facilities, many apartment communities are imposing half-capacity rules for gyms and other common areas.

To deal with high-demand, fitness facilities that used to be open during the day or as long as the leasing office was open have now become 24-hour gyms so that all residents can use the facilities. Gym equipment is also being spaced out to ensure social distancing. That said, since many tenants or residents barely use fitness facilities in general, these types of accommodations have not necessarily been widespread.

No. 10- More Assistance via Apps

There has also been a major shift to apps.

For example, some property managers have created apps for residents that allow them to schedule time in common areas. Plus, apartment communities that once upon a time only had in-person or mail-in rent policies have now embraced online rent portals. There has been an increase in virtual/electronic communication as well between landlords, staff, and residents—more email newsletters, online forums, etc.

Common Post-Pandemic Apartment Amenities Renters Will Seek

Landlords will need to embrace post-pandemic apartment amenities if they want to continue to attract new or prospective tenants. This means you should expect to see more contactless methods of paying rent and dedicated personal outdoor space (like balconies/patios) on renters’ must-have lists.

Other coveted items will likely be included—a second bedroom/bathroom (for office space or in case a member of the household is ill), more closet/pantry space (for stock buying), kitchens with room for in-home cooking, plus an in-unit washer/dryer. Besides offering these in-unit features, property managers should invest in smart locks to avoid touching keys for building entrances as well as for apartment homes.

And as a direct response to the previous moratorium on evictions, many landlords are expected to offer longer leases with a controlled rent rate to avoid rent raises when employment may be affected. Likewise, there is talk of including most, if not all, utilities in the monthly rent rate. This is also in case employment is affected.

Finally, post-pandemic renters are expected to seek out pet-friendly units more than ever before. as stay-at-home orders have significantly increased pet adoption over the last 10 to 11 months.

Apartment amenities and covid-19 also mean renters are going to seek out pet-friendly apartments
Post-pandemic renters are expected to seek out pet-friendly units more than ever before.

Take Away

COVID-19 and the ongoing pandemic will definitely have a lasting impact on how people interact with one another in multifamily housing. Moreover, there is no denying that certain apartment amenities will need to get with the times or be left behind.  That said, any way you slice it, the overall goal here remains the same—to reduce the likelihood of COVID-19 being transmitted.

About the author:

Justin Becker is a property owner in the state of Michigan and has a passion for managing communities. He owns apartment complexes and mobile home communities, and has been writing his own blogs for his properties for several years.

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Who Are Your Renters, and Who Will They Be In the Future?

Who Are Your Renters, and Who Will They Be In the Future?

Given current market conditions, now is the time to analyze who are your renters and who they will be in the future, recommends John Burns Real Estate Consulting.

The consulting group analyzes trends for their clients and provides insight into today’s renters.

This analysis shows insight into market-appropriate unit sizes and configurations, new amenity trends, and the appropriate rent levels necessary for successful apartment lease-up and tenant retention.

Who are your renters? Not as young as you may think

“While 26 percent of renter households in the U.S. are between the ages of 25 and 34 today, the next largest segment of the market is between the ages of 35 and 44 (families), and beyond that, between the ages of 45 and 54 (empty nesters).

“These older renters will continue to seek more space in a suburban environment with good work-from-home amenities,” write Lesley Deutch and Ken Perlman of John Burns Real Estate Consulting.

Who Are Your Renters, and Who Will They Be In the Future?
Renters may not be as young as you think. Charts courtesy of John Burns Real Estate Consulting.

Affordable rents continue to be a challenge

“More than half of renters in the U.S. can only afford rents less than $1,200.

“John Burns Real Estate Consulting’s national apartment-demand model is based on income levels across the U.S. and indicates about 60 percent of renter households earn less than $50,000 per year, which translates to a maximum rent of about $1,200 per month.

“While construction activity is increasing for luxury apartments (due largely to increasing costs associated with new building), the affordable sector continues to be hampered by the limited availability of tax credits and capital financing. The opportunity here is not just to provide affordable housing, but creative use of space in market-rate product, including more roommate-friendly units and smaller spaces to keep overall rents lower,” they write in the report.

Who Are Your Renters, and Who Will They Be In the Future?
Affordable rentals continue to be a challenge. Chart courtesy of John Burns Real Estate Consulting.

Summary

The apartment market offers many opportunities, even in the era of COVID-19 and a recovering job market. Understanding renter profiles to design the appropriate product will be key in the years ahead as the U.S. economy recovers from the recession and you find your future renters.

Please contact Lesley Deutch or Ken Perlman for more local insight. John Burns team is always available for assistance.

How the Pandemic Will Affect the Future of Apartments And What People Rent

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Affordable Housing Demand Skyrockets in COVID’s Wake

Affordable Housing Demand Skyrockets in COVID’s Wake

Affordable housing demand is greater than ever and the pandemic exacerbated a problem that is already approaching crisis levels.

By Matthew Davies
President Harmony Communities

 The affordable housing industry is in dire straits. Record-high costs for construction materials coupled with labor shortages have hampered the development of new affordable housing communities. Yet the demand for affordable homes is greater than ever. According to the National Low Income Housing Coalition, the U.S. has a shortage of 7.2 million affordable and available rental homes.

In existing communities, eviction moratoriums put in place during the COVID-19 pandemic mean that many landlords and owners and operators of affordable housing communities must maintain their operations without the major source of their income – rent. At the same time, families are struggling while housing costs rise faster than incomes; Harvard University’s Joint Center for Housing Studies estimates that nearly half of renter households spend more than 30 percent of their income on rent.

In many ways, the pandemic exacerbated a problem that is already approaching crisis levels; missed work due to illness, joblessness, and wage reductions during the pandemic could drive an estimated 250,000 new people into homelessness, according to a Columbia University study.

In the state of California, the need for affordable housing expands past lower and middle-income families. With an average median home price upwards of $600,000, California housing is among the most expensive in the country. According to a study from the California Department of Housing and Community Development, in every major metropolitan area and its surrounding counties, between 30 and 60 percent of residents cannot afford market rent.

It’s no longer just cities that are seeing a demand for more affordable housing either. With fewer people required to physically report to work in cities, many have fled urban areas in search of a more affordable solution.

In California, multiple attempts to solve the affordable housing demand problem at the government level have been either proposed or implemented. But a state law passed in 2020 to cap the amount by which landlords raise rent and eighteen other bills aimed at increasing housing production, the problem remains, demonstrating that other solutions are needed. In this article, I’ll discuss four alternative solutions to increase the supply of affordable homes where they are needed and help those who truly need assistance.

Solution #1: Reduce regulatory barriers to affordable housing

In many areas, zoning laws prohibit affordable housing development.

For example, in most U.S. cities, it is illegal to build anything other than single-family detached homes on three-quarters of an acre of land. When multifamily housing is allowed, zoning rules including building height caps can limit the profitability of these developments. To increase the affordable housing supply in areas where it is needed most requires reducing the regulatory hurdles that developers need to go through in order to build more affordable homes.

Solution #2: Maximize land space with greater densities

With zoning regulations relaxed, developers can utilize density to maximize the available land and provide housing for more people. Two creative ways to do this are through tiny homes or by going vertical, an approach known as upzoning.

A typical subdivision with site-built, single-family homes requires on average about an acre for every 4-5 homes. By contrast, a community of tiny homes holds up to 25 or even 30 residences per acre. Tiny homes are economical, practical, and can go a long way toward solving many of our nation’s housing concerns.

Likewise, high-rise buildings can house more people per acre than their single-family home counterparts. A typical high-rise building provides about 100 housing units on an acre of land. If each unit houses three people, a single acre can provide housing for 300 people.

Solution #3: Incentivize density with tax incentives

When paired with relaxed zoning restrictions, putting higher taxes on expensive, but underused, land can also incentivize affordable housing development.

Unlike property taxes, which charge a similar rate for buildings and land, land value taxes charge a higher tax rate on the land and a lower rate on the structures themselves. In other words, the land tax rate is the same whether the land owner uses it for commercial space, apartments, or any other use. Tax abatement programs are available in some cities to offset the cost of providing affordable housing.

Solution #4: Grant rent subsidies – not rent control – to ensure help is given where it’s needed most

Rental subsidies provide financial assistance to households who need it. By contrast, rent control caps the frequency and amount by which landlords and property owners can increase the rent in residential units across the board. On the surface, rent control may appear to be a viable solution to making rent more affordable, but upon closer inspection it becomes apparent that the opposite is true.

When a state, city, or county government adopts rent control, the regulation is applied to everyone, regardless of need. As a result, in rent-controlled communities, everyone — even those who can easily afford market rent — receives a subsidy that is paid for by the government, the property owner, or some combination of the two.

Rent control can make it difficult for property owners to maintain their business. When owns and operators of affordable housing communities find themselves unable to maintain their businesses, they may seek out a more lucrative option, displacing people from their homes and lessening the affordable housing supply, ultimately driving up prices for homes in the area and making them the polar opposite of affordable.

Unlike rent control, rental assistance programs target people based on need. Instead of imposing a ceiling mandate on rent prices, governments provide rental assistance only to people who meet certain income criteria. These programs offer a more targeted approach to helping those in need while requiring those who can afford the rent to pay market rates, thereby taking some of the burden off the property owners.

Conclusion: A Multifaceted Plan

Conquering a complex problem like affordable housing demand requires a multifaceted solution that addresses both housing supply and assists those truly in need.

The greatest way that government can help solve the affordable crisis in our country is to use a twofold approach that involves (1) reducing the number of regulatory and legal hurdles that developers have to face (which spurs development and works to increase the housing supply, therefore keeping prices down) and (2) providing help where it’s needed, to ensure tenants get the assistance they need while ensuring landlords and property managers continue to receive the income they need to ensure their communities thrive and their businesses stay operative.

A final note: when considering solutions like land value tax reform and upzoning, caution must be taken to prevent displacement of existing renters, especially in high-demand real estate markets, where newer, larger buildings could have broad appeal and subsequently drive rent prices up. In these instances, housing vouchers can help.

About the Author:

Matthew Davies is the founder of Stockton, CA-based Harmony Communities, which currently owns and operates thirty-three manufactured housing communities in the western United States. An investor and community development professional working for affordable housing solutions, Davies’ goal is to help bring the opportunity for homeownership to people in his home state who otherwise could not afford to buy a home.

Three Solutions for Safeguarding the Affordable Housing Supply

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If Tenants Don’t Keep Bathroom Heat On, Can it Cause Mold?

Ask Landlord Hank - Can tenants not running bathroom heat cause mold?

This week the question for Ask Landlord Hank is about tenants refusing to heat bathrooms and whether it can can cause mold. Remember Landlord Hank is not an attorney and is not giving legal advice.

Dear Landlord Hank,

I have several tenants who refuse to run the heat in the bedrooms and bathroom because they say it costs too much for the electricity.

They also leave all the doors shut in their units, thus causing black microbial growth in the unit.

My questions are: First, did not using the heat in these rooms in fact cause this growth? And second, how do I get them to understand that they need the heat and air flow?

-David

Dear Landlord David,

Black mold can grow on material that has a high cellulose content such as drywall, paper, and so on in moist and damp conditions.

The area has to be constantly damp or moist.

If the rooms are cold and not damp, I don’t think you have mold, but you might want to buy a mold test kit from Home Depot or Lowe’s and check.

I would worry about water pipes bursting in freezing temperatures; I put out freeze warnings when the temperature drops to the mid-20s on my multifamily properties, with instructions to drip water in all faucets and leave cabinet doors open under vanities and the kitchen sink to allow warm air to keep pipes from freezing.

My tenants know that if a pipe breaks in their unit because of their negligence they are responsible for repair costs.

Sincerely,

Hank Rossi

Ask Landlord Hank: This week the question for Ask Landlord Hank is about tenants refusing to heat bathrooms and whether it can can cause mold
On the question of mold and mold cause, Landlord Hank says “You might want to buy a mold test kit from Home Depot or Lowe’s and check.”

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