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4 Ways to Help Manage Renters Moving During COVID-19

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By The Editors
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4 Ways to Help Manage Renters Moving During COVID-19

Keeping your tenants safe when renters are moving during covid-19 is crucial so here are some thoughts on best ways to do it from Keepe the maintenance company.

So many things feel different now because of coronavirus, with extra precautions such as masks, gloves, and social distancing. Even the ways of searching for a new apartment, signing a rental agreement, and moving during coronavirus have changed.

If you are a property manager dealing with tenants moving in or out of your rental property during the coronavirus pandemic, below are ways to safely manage such type of situation.

No. 1 – Create a moving timeline

While moving is considered an essential service in most states, there is still the need to adhere to social distancing and protect your existing tenants.

As a property manager in charge of a rental property, you should create a moving timeline or designate certain days of the week that renters are allowed to move in. This creates room for you and your team to sanitize the building or apartment before they arrive or before the next moving day.

No. 2 – Introduce the use of lockboxes for renters moving

Lockboxes are fairly common in the AirBnB industry, and property managers and landlords are beginning to adopt the system for managing renters moving in and out during the pandemic.

You should set up lockboxes so that your renters moving do not have to meet anyone in person during covid-19.

Using a lockbox system allows your move-out tenants to drop their keys without you physically receiving them. When they drop their keys in the box, you can have a cleaning company properly sanitize them before your move-in tenants arrive to pick them up.

Not only does this protect you from the virus, it also makes it easy for your tenants to drop or pick up keys without you needing to be there.

No. 3 – Organize virtual tours

Normally, the method was to meet with potential renters face-to-face and hold open houses for them to see the property.  The continual spread of the coronavirus has increased the use of virtual tools in the U.S. real-estate industry.

As a property manager, you should adopt the use of virtual tools like Zoom, Skype, and FaceTime to show your properties to interested renters and contractors. Adopting a virtual tour allows you and your renters to adhere to social-distancing rules and protect everyone involved.

If there is an urgent need for physical viewing, you should reduce the number of people that can visit the showing during covid-19. More importantly, you should also consider the use of electronic signing of the lease agreement and online rental application.

No. 4 – Additional cleaning and sanitizing

Tenants moving in or out involves a lot of physical contact, which could easily increase the spread of the coronavirus.

Introducing additional cleaning and sanitizing processes will protect you, your team, existing tenants, contractors, and potential renters.

Start by making provisions for disposable hand gloves, face masks, hand sanitizers, and handwashing equipment in your rental property. You can employ the use of a professional cleaning company to handle daily cleaning or sanitizing before and after move-in or -out.

renters moving may require property managers to do more cleaning due to covid-19
Tenants moving in or out involves a lot of physical contact, which could easily increase the spread of the coronavirus.

Final thoughts

Property managers and landlords have adapted their standard moving procedures to help tenants move into their new homes in the safest way possible during covid-19. By providing renters with digital ways to view a property and sign a lease agreement, managers and landlords can continue to offer valuable services during a very confusing time.

Successful Landlords Know All Tenant Screening Companies Are Not The Same

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com

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Rental Concessions Offered in 30 Percent of Listings

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By The Editors
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Rental Concessions Offered in 30 Percent of Listings

The share of rental listings that advertise some form of rental concessions rose from 16.2 percent in February to 30.4 percent in July, according to a Zillow release about its listings.

More rental concessions are showing up as year-over-year rent growth has slowed from 3.9 percent to 1.2 percent over the same period.

Landlords appear to be choosing to offer concessions rather than reduce rent to entice tenants to their buildings, as demand for rentals has waned since February.

“Before the pandemic, rent growth was accelerating and the nation was seeing concessions dwindle. That trend reversed sharply after the pandemic hit in February,” said Zillow economist Joshua Clark in a release. “In a softer rental market, landlords are trying to push the right button to bring renters into their space.”

Rentals in multifamily buildings have concessions attached more than do other rental types.

  • Free weeks of rent is, by far, the most common offer;
  • Reduced or waived deposit is second;
  • Among the top 50 U.S. metro areas, concessions are most common in Washington, D.C., Charlotte and Austin.

The rate of rental concessions can often be a leading indicator of a coming price drop, because landlords will often concessions first, before reducing rent.

When owners feel concessions are no longer moving the needle, they’ll reduce prices. Many landlords prefer to offer a concession rather than cut rent and set a precedent that could linger when the market picks back up.

Free rent made up 90.8 percent of all promotions offered across the United States, with the amount of rent relief ranging from two weeks to two months. It ranked as the top concession choice in all but six of the 50 largest markets.

Reduced or waived deposits (9.1 percent) and gift cards (6.6 percent) followed. The median amount of free rent offered is six weeks, which equates to an 11.5 percent annual discount. For the typical U.S. rental, that would mean about $200 in monthly savings.

Concessions most common in urban multifamily buildings

Renters in multifamily and other home types are more likely to receive some sort of concession than those in single-family rentals; 63 percent of multifamily renters report getting at least one, as do 59 percent of renters in other home types.

Only 35 percent of single-family renters reported receiving any concessions.

That means the increase in concessions is likely to be most prevalent in the multifamily buildings common in urban cores, which is consistent with previous Zillow research showing urban rents have been hit harder than suburban rents during the pandemic.

One of the biggest challenges for property managers since the beginning of the pandemic has been capturing prospective tenants’ interest in a space without the option of in-person tours, said Bevan White, vice president of marketing at Pegasus Residential, in the release.

“When our teams switched to a virtual leasing environment in late March, they had to adapt quickly, as they couldn’t physically show an apartment home with an in-person tour, one of the major tools we have to build value,” White said.

“Teams have used teaser photos, pre-recorded walk-throughs of amenities, and even personalized recorded messages to capture the renters’ interest before conducting a full virtual tour with the site team.”

Without in-person tours in their toolbox, Pegasus has looked for new ways to add value for tenants beyond offering concessions. “We have slightly increased concessions in some markets, and we have also focused on increasing the availability of smart homes as a way to add value to a unit instead of simply offering free rent,” White said.

Rental Concessions Offered in 30 Percent of Listings
Rental concessions offered in 30 percent of listings in zillow

Landlord Rights and Remedies After HB 4213: A Path Forward

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Governor Extends Oregon Foreclosure Moratorium to End Of The Year

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By The Editors
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Governor Extends Oregon Foreclosure Moratorium to End Of The Year

Governor Kate Brown has extended Oregon’s foreclosure moratorium to December 21, 2020; however, she has not yet extended the evictions moratorium set to expire September 30.

Executive Order 20-37 will extend House Bill 4204’s current moratorium on foreclosures, as allowed by that legislation.

“Every Oregonian deserves a warm, dry, safe, affordable, and accessible place to call home,” Brown said in a release. “That’s especially true during a pandemic, when physical distancing and limiting trips away from home are critical to stopping the spread of COVID-19. Extending the moratorium on foreclosures will ensure that more Oregonians do not lose their homes this year, and that businesses can continue to provide vital goods and services to our communities.”

While the executive order will provide homeowners and business owners certainty through the end of the year, “it is not a long-term solution. The governor’s office will be working with landlords, lenders, and other stakeholders in the coming weeks to craft a solution for the legislature to consider.”

No decision yet on eviction moratorium

The release said Brown is “also continuing to have conversations with community leaders and stakeholders to look at options surrounding a moratorium for evictions for renters, which does not expire until September 30.”

Brown said in the release, “I’d like to thank legislators for taking action with me this summer to help Oregon renters, as well as homeowners, and business owners.  As this crisis continues, I am confident that lawmakers will again take action to help Oregonians struggling to pay rent and mortgage payments.”

The Legislature’s Emergency Board allocated $55 million for rent assistance through December, and $20 million for affordable housing operating support for OHCS partners. In April, the Emergency Board also allocated $12 million in emergency funding for safe-shelter and rental assistance. Congress has also passed about $82 million in housing support and other housing-related services for Oregonians, including funds for rental and utility assistance.

Landlord Rights and Remedies After HB 4213: A Path Forward

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Security Deposit vs. Move-In Fee: Which is Better?

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By The Editors
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Security Deposit vs. Move-In Fee: Which is Better?

Whether to use a security deposit or a move-in fee, if it is legal in your area, is the topic this week from Keepe the on-demand repair and maintenance company.

One of the biggest risks with managing a rental property is having to deal with property damage by existing or outgoing renters.

Over the years, security deposits have been the preferred option by property managers when it comes to compensating for property damages caused by tenants.

But in recent years, property managers are beginning to adopt a new strategy, known as the apartment move-in fee. As a renter or property manager seeking to adopt either of the methods, it is important that you know first-hand what they mean and their pros and cons.

Definition of a Security Deposit

A security deposit is a refundable sum of money a renter or tenant pays to the property manager or landlord when moving into a rental property. It is usually one to two months’ rent, depending on city or state regulations. Also, landlords or managers can legally use the security deposit, or deduct from it, to pay for damages to the property caused by the tenant, or if the tenant skips paying rent and moves out.

Pros:

 Instills sense of responsibility in your tenants: Due to the costly nature of security deposits, renters are more likely to maintain their apartments to avoid losing their security deposits when they move out.

 Added protection of your investment: Collecting a security deposit give your investment an additional sense of protection, since you can use a tenants’ security deposit to fix your property.

 Cons:

 State laws on security deposits can be complex: For states like Illinois, accessing security deposits made by your tenants involves paperwork and restrictions that can lead to serious fines if you break any of the rules.

 Potential tenants may be hesitant to pay: If your rental property is in a low-income area, potential renters may hesitate to release a month or two in rent in the name of a security deposit.

 May lead to disagreements over move-out inspections: Tenants may not agree with your findings during a move-out inspection, leading to prolong arguments or even lawsuits.

 What is a Move-in Fee?

A move-in fee is paid by a tenant to a landlord or property manager upon signing their new lease.

The fee serves to cover the costs of accommodating and processing new tenants, such as changing directories and reprogramming security systems. A move-in fee is always non-refundable.

Also remember, if the damage is bad you can always go after the tenant in court, just like you would if damage is over the amount kept as a security deposit.

Pros: More attractive for your tenants: Since move-in fees are usually 30 percent to 50 percent of a month’s rent, it will be easy for your potential tenants to agree to it.

Security deposit or move-in fee so which is better for your rental property and tenants?
The move-in fee serves to cover the costs of accommodating and processing new tenants, such as changing directories and reprogramming security systems. A move-in fee is always non-refundable.

 No state regulations: In states like Illinois, where state laws require landlords to deposit the money received as security deposit into a separate account, this may delay your access to the money for repairs. With move-in fees, you can easily use the money for repairs or whatever you deem fit, as long as move-in fees are legal in your jurisdiction.

 Non-refundable: Move-in fees are generally non-refundable, whether the tenant trashes the property or not. You do not need to hand it back to a tenant upon their moving out.

 Cons: No incentive: When tenants have no security deposit or worthy sum of money on the line, they are more likely not to be careful with your property or worry about small damages.

 Lower Fee: Since move-in fee are generally 30 percent or more of a month’s rent, it may not be able to cover the cost of serious repair issues. Due to its lower amount, you may need to file a lawsuit for more money, leading to additional delay and stress.

 Which is Best for You?

You should base your decision on your location and the method that has worked best in the past.

If your property is in a jurisdiction like Chicago, where there are strict security-deposit regulations and penalties, then collecting a move-in fee may be your best bet.

But if your property is in a location with straightforward security-deposit laws, you should opt for a security deposit.

Most importantly, you should continue with a security deposit if you have had positive experiences about the process.

4 Steps to Make Rental Home Carpet Last Longer

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties.

Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com.

5 Maintenance Tips For Long-Lasting Carpet In Your Rentals

Kitchen Range Hood Options for Your Rentals

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Can I Cash-Out a Portion of my 1031 Exchange Proceeds? The Ins-and-Outs of A Partial 1031 Exchange

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By The Editors
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Kay Properties and 1031 and 1033 exchanges and eminent domain options details

By Orrin Barrow
Vice President, Kay Properties and Investments, LLC

Many investors that come to Kay Properties are looking for a full tax deferment utilizing a like kind exchange. A full tax deferment under IRC Section 1031 consists of buying a replacement property for equal or greater value than that of your relinquished value of the property. For example, if an investor sells their property for a net sales price of $1,000,000 in order to have full tax deferment under Section 1031, the investor has to buy at least $1,000,000 worth of total real estate as replacement property.

However, many investors are unaware that they are not fully obligated to use 100% of their proceeds in order to still do a 1031 exchange. For example, if an investor sold for $1,000,000.00 they can actually take $200,000.00 out of their exchange to increase their liquidity and only pay capital gains and depreciation recapture taxes on that portion of their exchange, the $200,000.00 that they peeled off.  The $200,000.00 is then deducted from what the investor has to replace, leaving the investor with needing to purchase only $800,000 of replacement property to defer the bulk of their taxes due.

The liquid cash that the investor has available is now taxable but can be used for a variety of different reasons. Many investors have a large part of their net worth captured inside of their real estate holdings. They understand the value of a 1031 exchange but still want the option of having cash set aside for a rainy day. During the Covid-19 pandemic, we saw certain investors decided to complete a partial exchange rather than a full exchange so that they could have some additional liquid funds to possibly weather a more severe economic downturn.

It is prudent for investors to understand 1031 exchange rules to complete a partial exchange. When engaging in a 1031 exchange an investor has 45 days from the date of the recorded closing to identify properties and 180 days from the date of a recorded closing to close on their replacement property. Once an investors 1031 proceeds are transferred to their accommodator/qualified intermediary account they have the 45 day identification timeline to remove the proceeds that they want to liquidate from the accommodator account. If the funds remain in the accommodator account past the 45th day, the investors proceeds will remain with the accommodator until the 180th day. Investors need to be aware of when to remove their funds from their accommodator account in order to complete a partial 1031 exchange and how much their estimated tax obligation will be before considering completing a partial exchange. Remember, if your tax obligation from a partial exchange outweighs the proceeds you are left with, it may be prudent to do a full exchange.  It is always advised for investors to speak with their CPA and attorney for all tax and legal advice prior to deciding to complete any 1031 or partial 1031 exchange.

About Kay Properties and www.kpi1031.com

 Kay Properties is a national Delaware Statutory Trust (DST) investment firm.  The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market.  Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over 15 Billion of DST 1031 investments.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing.  IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation.  There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through Growth Capital Services member FINRA, SIPC Office of Supervisory Jurisdiction located at 582 Market Street, Suite 300, San Francisco, CA 94104.

Grateful To Be Debt-Free: A Client 1031 Exchange Success Story

Looking for DST Properties for Sale? See Our 1031 DST Marketplace

Can I Cash-Out a Portion of my 1031 Exchange Proceeds?

Landlords And Tenants Face Difficulty Making Ends Meet With Mortgages And Rent

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By The Editors
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Landlords mortgages are a challenge in this time of the pandemic as renters have trouble making ends meet

As the pandemic stretches into its sixth month, renters and landlords face difficulty making ends meet with rent and mortgage payments, according to a nationwide survey conducted by Avail,  in August, 2020.

Smaller landlords in particular, many of whom are retired and rely on rental income, are having a hard time.

Due to the increase in partial rent payments, landlords are feeling financial pressure to pay their rental mortgages on time. Thirty-five percent of landlords surveyed by Avail, a technology platform for small landlords, gain 50 percent or more of their income from rental properties.

The survey included responses from 2,225 landlords and 2,919 renters with. Like renters, the majority of landlords currently reside in California (17.1 percent), with Illinois (7.9 percent), New York (6 percent), and Florida (5.9 percent) following.

Landlords face difficulty and going into forbearance

With inconsistent rent payments due to COVID-19, 12 percent of surveyed landlords face difficulty and went into forbearance. Concerns over renters not being able to pay rent in the future (24.9 percent), as well as trouble paying for their mortgages due to some renters not paying their rent (18.9 percent), were the top reasons landlords gave for going into forbearance.

The questions in this survey were developed with the input of researchers in the Urban Institute’s Housing Finance Policy Center.

Landlords face difficulty and forbearance can help so here are the factors

Struggling renters lead to struggling landlords

According to the survey, 64.2 percent of renters who responded stated the main challenge they have faced in paying rent is due to a loss of employment or reduced income during July.

In August, 60 percent agreed while 61.9 percent said another challenge was balancing paying rent and other regular expenses. This is cited despite the majority of renters being employed and working 30 hours or more during the time of their survey response.

In order to make monthly rent and mortgage payments, both renters and landlords are increasingly looking to their savings, ways to borrow from friends and family willing to lend funds, and government aid for help.

Landlords who faced difficulty took these actions to help

Landlords face difficulty and are looking to their savings accounts or emergency funds for help with covering expenses related to their rental properties during the pandemic. Of those who responded, 35 percent said they were using savings or emergency funds to cover the payments, while 21 percent said instituting a rent payment plan or deferment option for their renters helped.

More than one-third of landlords are retired

From the survey, Avail also found that 36 percent of landlord respondents are retired.

This paired with landlord respondents commonly reporting that they are using savings to continue mortgage payments on their rentals illustrates the financial pressures some landlords are facing during the pandemic.

According to surveyed landlords, 54.2 percent think the income made from their rental properties will continue to remain the same in the next three months.

Roughly 30 percent think this form of income will decrease in the coming months, while only 15.1 percent of landlords said they believe it will increase.

“One renter has lost a job in the oil field and is working a lower-paying temporary job. Another renter, a single parent with no child support, has changed jobs in the past two months,” said a landlord in Texas in the survey, giving reasons as to why landlords are looking to decrease their rent.

“Ultimately, a tenant losing a job to the COVID-19 economic downturn is not something that is necessarily under their control,” said one landlord from Minnesota. “[The] Government has put a lot of pressure on the landlord to assume losses and protect the tenant, which makes for a very challenging situation.”

What landlords made in 2019 before taxes

Some landlord frustrations stemmed from the federal, state, and local governments allowing for some eviction protections on renters while not giving the same measures to landlords that hold mortgages from private companies not covered by CARES Act mortgage forbearance measures.

“It is unsustainable to allow the tenant to not pay but require a landlord to pay a mortgage due,” said a landlord from Maryland. “These decisions appear to be made without due consideration to the relevant factors of sustainment which has caused an unequal distribution of the effects of the impact caused  by the response to COVID-19.”

Missed Housing Payments Reach 33 Percent in Early August

Apartment Search Data Not Showing Exit from Cities

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Renters Considering Moving Options Due To Pandemic

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By The Editors
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Renters consider moving due to pandemic

Renters are considering moving options as many formerly hot markets have cooled and renters are looking at rearranging their living situations based on the pandemic, according to a renter-migration report from Apartment List.

The report, which analyzed millions of online searches, also notes that not all metros are the same and that there is a variation between regions and cities in terms of how renters feel about moving. This analysis incorporates data from millions of user searches from metropolitan areas.

About 25 percent of renters considering moving have said they are more likely to move in 2020 because of the pandemic, and the rate was even higher for those living in dense cities and those who had experienced a layoff or some other reduction in income.  But renters in one city may behave differently than in another city, the report says.

“Portland, Seattle, and Phoenix are three markets that tend to absorb renters,” said Igor Popov, Chief Economist, Apartment List. “They draw in lots of interest from renters looking to move from all over the country, but relatively few renters at any point in time are looking to leave.

“In other words, these three cities are notorious for sucking renters in. The few renters that do move away from Seattle or Portland tend to stay in the Northwest, just as renters leaving Phoenix tend to stay in the Southwest. At a high level, this pattern still holds true in the pandemic period,” Popov said.

Renters consider moving to Portland and where they live now

People who live outside Portland but want to move there
The top 3 places people who want to move to Portland live now. New York – 10.3 percent Los Angeles – 5 percent Salem – 4.5 percent

Inbound migration vs outbound migration

Across the nation’s 50 largest metros, relative inbound migration dropped from 31.1 percent to 28.8 percent year-over-year.

Meanwhile, relative outbound migration stayed essentially flat, barely ticking down from 24.3 percent to 24.2 percent.

What this means for renters

“Together, this tells us that in the wake of the COVID-19 pandemic, big rental markets are not seeing the outside influx of demand that they did last year.

“More and more, renters are choosing to either search locally or search in smaller markets outside the 50 largest that typically dominate search volume,” the report says.

What is happening in the tech hubs like Seattle

Although no other metro has seen a shift of the same magnitude as San Francisco, similar factors seem to be at play in other tech hubs, like Seattle.

Renters consider moving to Seattle and where they are now

renters considering moving options due to the pandemic and ones who want to move to Seattle
The top three places people who want to move to Seattle are coming from: Los Angeles 4.3 percent, New York 3.6 percent, Portland 3.6 percent.

Although no other metro has seen a shift of the same magnitude as San Francisco, similar factors seem to be at play in other tech hubs, like Seattle.

“The share of Seattle apartment hunters that are from out-of-town is down significantly this summer, which is a trend we’re seeing across other tech hubs such as Austin, Denver, and the Bay Area. This change likely reflects the fact that many Seattle employers are working remotely and requiring fewer, if any, of their new hires to relocate,” said Popov.

“Given that tech companies have generally been the fastest to embrace remote work, renters in other parts of the country may now feel that they do not need to move to a tech hub to take advantage of the thriving job markets that they offer. That said, despite the downward trajectory, these metros all still rank fairly high for relative inbound migration.”

Renters consider moving to Phoenix and where they are now

People who live outside Phoenix but want to move there
The top three places people who want to move to Phoenix live now: Los Angeles 33 percent, Tucson 3.8 percent, Chicago 3.1 percent

Conclusion

In recent months, there has been significant speculation about how the COVID-19 pandemic will change where Americans want to live.

“While our previous research has shown that predictions of a widespread urban exodus may be premature, this new data shows that at the broader metro level, we are beginning to see signs of the COVID effect. Most notably, the nation’s pricey tech hubs have begun to lose some of their luster, although they still remain fairly popular destinations.

“Meanwhile, some more affordable markets are gaining in popularity. As remote work and widespread layoffs reshape the labor market, the rental market is beginning to respond.”

What the Downsizing Trend Means for Apartment Living

How to Avoid Crossing the Line with Tenants’ Privacy 

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Do You Answer These 4 Vital Questions Before Your Tenant Asks?

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By The Editors
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Answer tenant questions before they come up and be sure to get it in your leases

Here are four important questions to answer before your tenant asks, and before you both enter into a rental or lease agreement, from Keepe the on-demand repair company.

Obviously the lease is designed to hold you and your tenant to all the conditions of tenancy, which may protect either party during a dispute.  As a property manager, it is your duty to make sure all the conditions regarding living or renting an apartment or single-family home you manage are expressly stated in the agreement to prevent future dispute.

One great way to prevent future disputes with your tenants is to answer all the questions they may have in the actual agreement even before they ask you.

Below is a list of four questions your prospective tenants are most likely to ask before signing a lease agreement with you.

No. 1 – How is Rent Paid?

It’s likely that nearly every property management company or landlord in charge of a rental home employs a different strategy for dealing with rent-related issues, especially in this time of COVID-19.

It is important that you clearly state in the lease agreement your position on how rent should be collected and any other related matter.  Below are ideas for clarifying the rent-collection process in your rental agreements:

  • State whether you allow for a grace period, and the terms for it;
  • Specify penalties for late payments or late-rent policies
  • Specify the acceptable method(s) of rent payment:
  • Spell out the consequences of not paying rent.

No. 2 – What Utilities are Tenants Accountable for?

 In most rental homes, this is one of the major causes of disputes between renters and property managers.

In many cases, landlords cover some utility bills as a form of incentive or bonus to tenants. Other times, the utilities are in the landlord’s name and will require a change to the tenant’s billing. Be sure to state when and how this is supposed to happen so you as the manager do not get stuck with tenants’ bills.

When drafting your rental agreements, it is advisable that you clearly itemize the utility bills that renters are expected to handle on their own and answer this tenant question up front.

Below is a list of utilities that property managers are likely responsible for:

  • Water/sewer/trash
  • Garbage collection
  • Parking permits
  • Cable and/or internet connections

No. 3 – What If I Need to Break My Lease Before Its Expiration?

 Sometimes your tenants may need to break their lease before the agreed termination date.

You cannot force a tenant to continue to live in your property against their wishes. It is a hassle every property manager must deal with.

It is important that you include the early-lease-termination procedure in your lease agreement. This alerts your tenants of what to expect if such a situation arises in the future.

Here are some key things to include in this clause of the contract:

  • The notice required to vacate the property (including time-frame and form the notice must be given in).
  • Charges associated with early termination.
  • The cancellation process, should you choose to allow certain instances of early lease termination.

No. 4 – What is Your Pet Policy?

answer tenant questions on pets before the lease is signed and before issues come up.
Remember before renting your home to a tenant, you should include the type/number of pets allowed and the deposits tenants are required to pay

Pets are great friends to live with, but what happens when your garden or rental-home carpets are destroyed by these same friends?

Before renting your home to a tenant, you should include the type/number of pets allowed and the deposits tenants are required to pay.

Also, clearly state the penalty for destruction caused by a tenant’s pet(s) or the presence of an unapproved pet on the property.

Also remember that therapy dogs, assistance animals, and companion animals approved by a medical professional are not pets and thus not subject to a no-pet policy.

Answer tenant questions final thoughts

 Renting your property to a tenant can be a lot to handle if your rental agreement doesn’t explicitly state your position on these important issues.

It’s also a good idea, before drafting your agreement, to talk with a local property lawyer. It’s important to be on the right side of your state and city laws. It’s critical that you stay on the right side of your state laws.

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties.

Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com.

5 Maintenance Tips For Long-Lasting Carpet In Your Rentals

Kitchen Range Hood Options for Your Rentals

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I Am Afraid Tenants Will Abuse Gated Driveway; What Can I Do?

By
Hank Rossi
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I Am Afraid Tenants Will Abuse Gated Driveway; What Can I Do? Ask Landlord Hank

A gated driveway can provide extra security for tenants, but also added costs which is the question for Ask Landlord Hank this week.

Dear Landlord Hank:

I have a gated driveway to a triplex. I’m concerned about tenants possibly abusing the gate. I would welcome your thoughts.

-Tom

Dear Landlord Tom:

Is there a way for you to install a discrete camera to observe?

If there is some abuse and you have no proof of which person caused the damage to the gate, you won’t be able to bill the proper party for repairs.

I’d hook the camera up to a monitoring system so you can check footage if something happens at the gated driveway.

It would be nice if the camera would work at night as well.

Sincerely,

Hank Rossi

Can you evict a tenant for discharging a pistol or guns in your apartment is the question for Ask Landlord Hank
Landlord Hank Rossi I am afraid tenants will damage by gated driveway to my rentals

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What the Downsizing Trend Means for Apartment Living

By
Holly Welles
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downsizing to apartments What the Downsizing Trend Means for Apartment Living

Downsizing is becoming more popular and driving rental demand in both younger and older generations.

By Holly Welles

More people than ever are moving out of their homes and transitioning or downsizing to apartment living.

Apartments offer many advantages over owning a home. For one, renting can be cheaper than paying off a mortgage. Repairs and maintenance are essential to consider, too; in an apartment, tenants don’t have to pay out of pocket if there’s a leaky roof or burst pipe. This lack of responsibility can be a big stress reliever for anyone who doesn’t want to tap into their rainy-day fund.

Apartments offer benefits beyond savings, too. Many complexes offer excellent amenities, such as pools, gyms, laundry facilities, dog parks and convenience stores. If residents like to be social, they can also mingle with the building community and make new friends. Some buildings even host resident events, such as trivia night, bingo and potluck dinners.

With all this in mind, it’s no surprise that the share of the population who rent is only expected to grow in the United States. However, diving into the demographics can highlight less-obvious trends that help landlords prepare for the future of rentals. In this case, what does downsizing have to do with apartment living?

Downsizing to apartments and the older generations

Many young people choose to rent because they’re still building their savings and getting started in their careers. However, more people in older generations have decided to sell their homes, downsize their lives and move into apartments. The number of renters over the age of 60 grew by 43 percent in the last 10 years.

More than 22 percent of the U.S. population is aged 60 and over. These people are tired of the work and headaches that come with owning and maintaining a home. They want to enjoy their golden years and relax, which means putting up for-sale signs and searching for rentals in the classifieds. According to one study, 37 percent of baby boomers plan to move later in life, and, of those, 42 percent say they will choose a smaller home.

Renting comes with less responsibility and also tends to offer better accessibility for older people. Many apartments are on a single floor, meaning renters don’t have to traverse up and down the stairs to get their bedrooms, bathrooms or laundry rooms. Multi-story complexes also offer elevators, allowing convenient access for those who use walkers and wheelchairs.

What Landlords Can Expect Going Forward

With this trend of downsizing on the rise, what can property managers and landlords expect in the years to come?

More Age Variance

Millennials were responsible for 37 percent of home sales in 2018, with many moving out of apartments and into newly owned properties. Meanwhile, a growing proportion of people over age 60 are selling their homes and looking to downsize.

As such, landlords should prepare for a shift in the average renter’s age. They may need to change their strategy for how to market their available apartments based on how they appeal to each demographic. For instance, a significant community of older renters in the area, good amenities for low-maintenance living and other property touches can match what downsizers are looking for in their new space.

New amenity requests

When catering to younger people, multifamily developers may think amenities like high-speed Internet connections and dog parks are the way to go. However, they’ll soon have to consider what older generations may prefer.

For instance, those who can’t or don’t want to drive may appreciate a complimentary shuttle service that can get them to the grocery store and doctor’s appointments. Others may look for community-building programming that allows renters to socially connect in their new surroundings.

Property floor plans and additions

Older generations may have some different expectations compared to younger people regarding floor plans and safety features in downsizing to apartments. Small accessibility finishes like grab bars in the shower can help rentals offer long-term value for tenants. Many will look for simple, open floor plans that help them adjust to a downsized lifestyle and age in place for years to come.

Some renters will also seek out two- or three-bedroom apartments to accommodate family visits, particularly if they have children and grandchildren. Landlords with larger units or single-family rentals may benefit from marketing to older renters.

Helpful technology

Millennials and Gen Zers aren’t the only ones who appreciate tech-laden apartments. The older generations also love gadgets that make their lives easier. According to one poll of nearly 6,000 older adults, 80 percent are interested in smart thermostats and apps that control appliances. Almost 70 percent want tech to improve their health at home, such as air purifiers, and 58 percent want cleaning robots.

Downsizing to apartments conclusion

The younger generation once monopolized the renting scene.

Today, however, older individuals are selling their homes and moving into apartments in droves. They’ve realized the benefits of downsizing and want to enjoy the convenience that comes with no responsibility.

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