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2020 Apartment Construction Down 12%, a 5-Year National Low

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By The Editors
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2020 Apartment Construction Down 12%, a 5-Year National Low

New apartment construction across the country is starting to mirror the downward trend following the 2008 crisis, down 12 percent and hitting a five-year low for buildings of 50 units or more, according to a report from Rent Café.

The covid-19 pandemic is further complicating an already-visible slowdown in apartment construction since its 2018 peak.

The report says:

  • Apartment construction is down, with around 283,000 new units expected to hit the market this year, considerably fewer than the 2018 peak.
  • The San Jose metro is expected to double the number of projected units added last year, while Miami sees the biggest drop in new apartments year-over-year. Despite doubling its apartment construction, Silicon Valley is adding a relatively low number for a giant tech hub, 5,800 units.
  • Overshadowing New York metro for the third consecutive year, the Dallas-Fort Worth area is first in the nation in terms of apartment construction, set to complete 19,300 new units by the end of 2020.
  • 13 of the 20 most active large metros are expected to complete fewer units compared to last year. Miami metro is experiencing the biggest drop, 53 percent, down from a whopping 12,500 deliveries in 2019.
  • At the city level, Austin is leading nationwide with the most apartment completions at 3,800 apartments, followed by San Antonio, Denver, and Charlotte. Brooklyn rounds up the top 5, having delivered around 2,100 units, on par with Chicago.

“The downtrend is mainly due to the slower pace of construction, as a result of a shortage of available construction crews, funding and permits, along with some temporary bans on construction projects in certain states,” the Rent Café report says. “With projects dragging and some new projects hitting pause, many U.S. metros are likely to see fewer new apartments in the coming years.”

2020 Apartment Construction Down 12%, a 5-Year National Low

Apartment construction uncertainty

“As the United States begins to recover from its steepest economic downturn in history, the construction industry is faced with unprecedented levels of uncertainty,” said Doug Ressler, manager of business intelligence at Yardi Matrix.

“How that uncertainty and broader macroeconomic conditions will affect the industry to date, and the shape of the recovery to come, depends on multiple factors.

“Around the U.S., we have seen a variety of states, counties, and cities choose to close nonessential businesses, or stay-at-home or shelter-in-place orders. For the most part, construction activity has been included as an essential activity that can continue with business as usual during these orders.

“Construction starts have begun to increase from their April lows and there is cautious optimism that as the year progresses, construction markets around the country will begin a modest recovery,” Ressler said.

Lack of New Construction Underlying Cause of Oregon Housing Affordability Crisis

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Why the Cares Act Seems So Uncaring Towards Landlords

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By The Editors
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Why the Cares Act Seems So Uncaring Towards Landlords

Veteran landlord and private investigator David Pickron shares his thoughts on why the cares act seems so uncaring toward landlords.

By David Pickron

Landlords, it’s time we all pay very close attention.

A second devastating wave of trouble is thundering towards us, and it is imperative that you know how to protect yourselves and your investments.

On July 26, 2020, the 120 days of eviction relief provided by the Cares Act expired.  With that, landlords across the United States were given the green light to start the eviction process for non-payment of rent, with the caveat of having to use a special 30-day notice as required by the act.

We are seeing that landlords are generating notices with $4,000-$8,000 demands for the last several months of unpaid rent, begging the question that if these renters couldn’t afford $1,000-a-month rent, what makes us think they can come up with $4,000 to make the landlord whole?  It appears that tenants interpreted the eviction moratorium as “we do not have to pay rent,” which could not be further from the truth.

So, what happens now?

Over the next 30 days, if the Cares Act is not extended, thousands of people in your area face being evicted and receiving a judgment against them for thousands of dollars.

These costly judgments had to come from somewhere, to help the landlords who have carried their loans and their unpaying tenants for months.  For many landlords, the burden was too great, and they did not survive carrying these unexpected costs.

The Cares Act gave businesses large PPP loans to cover employee pay, and some individuals who were unemployed collected more than they would have if they worked, all to help people cover their expenses.  What did the struggling landlord get from the Cares Act?  Nothing but their properties “seized” by the federal government if they had a loan backed by Fannie Mae or other government-backed loan (something the landlord did not ask for) and told they could not make decisions for properties they own.  This has resulted in landlords who are financially stretched and a pool of potential tenants that are not all that dependable.

COVID has had a significant impact on our society but it is by no means the first time that people have endured challenging situations.

People deal every day with illness, cancer, and other diseases and disabilities that are terribly unfortunate.  In the past, tenants who have struggled with these types of issues have leaned on family, savings, or churches to help them make ends meet.  With the Cares Act, the landlord was the one forced to carry the bill.  We have been beat up enough and the struggle is not over.  The current pool of potential applicants in the next 30 days will have evictions and judgments against them that can hurt you.

Here is how to protect yourselves

  1. Call your screening company and make sure they search for eviction records in your local jurisdiction and in the jurisdictions your applicant has lived. Credit bureaus removed eviction and judgment data from their reports last year, so the only way you can find a civil eviction record is for your screening company to go right to the court.  Keep in mind, since these are off the credit bureaus, these evictions will not affect credit scores.
  2. Ask for proof of payment of rent for the last four months, through bank statements or canceled checks. Do not fall for “they were living with family and did not have to pay rent.”
  3. Give good landlord verifications. What that means is when you are asked about a current or former tenant, stick to fact-based answers, and stay away from sharing your personal, biased opinion of the people.  A factual question you can answer and provide backup for is “Has your current tenant paid his or her last few months of rent?”  It’s a simple question with a simple answer of yes or no.  We need to protect each other so no one gets hurt again, and that can happen when we ask for and provide good landlord verifications.
Tenant screening services for landlords should include good telephone customer service support.Why the Cares Act Seems So Uncaring Towards Landlords
David Pickron says to protect yourself “Call your screening company and make sure they search for eviction records in your local jurisdiction and in the jurisdictions your applicant has lived.”

Right now, the collection companies are salivating over these new, large judgments to collect on.

If you rent to a person who has a judgment, chances are they will be garnished at every job to which they apply, leaving them with less money to pay you rent.  With the “free-money” mentality and the ability to obtain a residence after their first eviction, they might consider making their smaller car payment over their larger rent payment and take a chance that a second eviction won’t hurt them either.

As a landlord, you don’t want to experience the pain all over again.

I do not want to see any fellow landlord be victimized again.  We are good people who have been responsible enough to be able to provide housing across this country to millions of people.  For the most part we are all not rich, but rather are living simple responsible lives, trying to get ahead a little and raise our families.  More than ever we must band together to survive in an environment that has been stacked against us by our legislatures and tenants.  Together we can weather the storm and come out of this a stronger and more unified group.

The secret to being successful in this business is finding the right tenant, or what I call “business partner,” and proper screening is one way to beat the challenges ahead.

About the author:

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.

Successful Landlords Know All Tenant Screening Companies Are Not The Same

Manage in the Past and Forget the Present

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Seattle Rents Continue Decline For Third Month

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By The Editors
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Seattle rents decline for third month

Seattle rents continued to decline for the third month, falling 0.4 percent in July, according to the latest report from Apartment List.

Rents are down 0.9 percent year-over-year in Seattle, where rents lag both the state and national averages for rents. April was the last time Seattle saw a rent increase.

Median rents in Seattle are $1,342 for a one-bedroom apartment and $1,671 for a two-bedroom.

Rents rising across the Seattle Metro

While Seattle rents declined, over the past year the rest of the metro is seeing the opposite trend.

Rents are up in 6 of the largest 10 cities in the Seattle metro for which Apartment List has  data.

Here’s a look at how some rents compare across some of the largest cities in the metro.

  • Bellevue has the most expensive rents in the Seattle metro, with a two-bedroom median of $2,386; however, the city has also seen rents fall by 1.2 percent over the past year, the biggest drop in the metro.

Bellevue has most expensive rents in Seattle metro

  • Lakewood has the least expensive rents in the Seattle metro, with a two-bedroom median of $1,512; the city has also experienced the fastest rent growth in the metro, with a year-over-year increase of 2.0 percent.
  • Although rents across cities in Washington have been marginally on the rise, the state’s growth as a whole has held steady over the past year. For example, rents have grown by 1.3 percent in Spokane and 0.5 percent in Vancouver.

Seattle rents decline while metro rents rise

Tacoma rents increased moderately over the past month

Tacoma rents have increased 0.3 percent over the past month, but have remained steady in comparison to the same time last year.

Currently, median rents in Tacoma are $1,262 for a one-bedroom apartment and $1,571 for a two-bedroom.

Greater Seattle Area Mid-Year Residential Rental Housing Update

Landlord Regulations – Should I Just Give Up?

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Three Solutions for Safeguarding the Affordable Housing Supply

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By The Editors
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Three Solutions for Safeguarding the Affordable Housing Supply

Here are three solutions for safeguarding the affordable housing supply as the CARES act ends, according to a Stockton, California-based affordable housing advocate.

By Matthew Davies

In the coming weeks, the affordable-housing industry will be hit with the perfect storm.

President Trump’s recent memorandum extended federal unemployment benefits through December 27. Yet, those out of work will still receive a lesser benefit per week compared with the federal employment benefits provided under the CARES Act. Some are questioning the legality of the memorandum, leaving an industry in flux and 24 percent of Americans uncertain as to whether they will be able to make their next rent payment.

At the same time, federal eviction moratoriums that went into place following the COVID-19 pandemic have been lifted. Trump’s recent executive order doesn’t clearly extend the moratorium, but instead directs Health and Human Services and the Centers for Disease Control to evaluate whether stopping evictions is necessary, leaving low-income families subject to eviction proceedings after August 24.

Across the country, many states have, or are considering, extending the eviction moratoriums, which offers a welcome reprieve to renters in those states.

But rent forgiveness only passes the burden to the landlords who manage these properties, who have mortgages and property taxes of their own. With little to no rental income and no moratorium for paying mortgages and property taxes, owners and operators of affordable housing face a difficult choice: fight these eviction moratoriums in court or – unable to sustain their businesses – cut their losses and walk away altogether. The result is a devastating impact on an affordable housing stock that is already in short supply, at a time when increasing numbers of people need affordable housing.

 Why are owners and operators of affordable housing more deeply impacted than other property owners?

Affordable housing presents an array of challenges for property owners.

First, owners and operators of affordable housing operate on thinner margins than market-rate apartments, especially upper-end apartments. Second, a much higher proportion of affordable housing residents work in the “informal” economy, making them ineligible for unemployment benefits, much less the expanded benefits that were offered under the CARES Act. For these residents, help has come instead in the form of local jurisdiction ordinances that delay payment of rent and forestall evictions.

On the West Coast, these ordinances have been overly broad, allowing people to stop paying rent for any reason, regardless of whether their jobs were affected by COVID-19. At the same time, local governments are making delayed property tax payments hard for property owners to obtain. Local utility companies are offering no deferrals and GSO debt forbearance creates its own sets of undue hardship. The housing providers are bearing the brunt from all sides.

 A Complex Problem Requires a Multi-Faceted Solution

 The U.S. has a shortage of more than 7 million affordable homes and apartments for extremely low-income families, according to the National Low Income Housing Coalition (NLIHC). As housing production costs rise faster than incomes – particularly in light of the COVID-19 pandemic and its impact on jobs, this disparity is only poised to widen.

While a second coronavirus stimulus bill, if passed, will help citizens in the short term, bailouts like these are economically unsustainable for our country and they don’t solve the underlying issue: the shortage of affordable homes in the nation.

Increasing the number of affordable homes available to renters requires a three-pronged approach that includes short-term rental assistance for those in need, longer-term financial assistance to the developers, owners, and operators of affordable housing communities, and fewer burdens and zoning restrictions to encourage – rather than stifle – development.

 Landlords: Negotiate payment plans with tenants

Landlords should be willing to negotiate rent payments with their tenants when necessary.

Discuss what tenants can afford and then offer an alternative such as rental assistance, temporary rent subsidies, or a rent payback plan that is acceptable to both parties.

Banks, Lenders, Municipalities, and Utilities: Provide Assistance for Owners and Operators of Affordable Housing

Private and government lenders can help lessen the burden on the affordable housing industry by granting zero-interest bridge loans for property owners with a timeline that coincides with the government-mandated rental freezes. This type of assistance could help ensure the properties could remain operational until such time that renters are back to work and able to pay their rent.

For landlords who have a mortgage, the CARES act assisted by waiving late fees on mortgage payments or suspending foreclosures, and some lenders extended those moratoriums. To qualify, landlords must show proof of rental income losses to their lender. Finally, the Economic Injury Disaster Loan (EIDL) offers emergency grants up to $10K to small businesses impacted by the coronavirus.

State and Local Government Leaders: Adopt Policies that Encourage the Development of Affordable Housing

As previously mentioned, our nation has a shortage of affordable homes, which can be alleviated – at least in part – by increasing the supply. This means building affordable housing closer to population centers and closer to jobs, and doing so requires more permissive zoning and less red tape.

Further, we need to get creative with how we use the available land to accommodate more families. Tiny home communities are one option for providing homes for more families in less space, often accommodating 25-30 residencies per acre. High-rise apartment buildings also provide greater density, giving housing to about 300 people per acre, on average.

To protect the businesses that provide and maintain affordable housing requires safeguarding rental income, deferring at least some management costs, and cutting down barriers that preclude housing development in the areas where they are needed most. This is vital if we are to ensure the continuation of affordable housing that society relies on.

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 hThree Solutions for Safeguarding the Affordable Housing Supplyousing 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.

 

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Automating Utility Verification Can Save Landlords Time and Money

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By The Editors
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Automating Utility Verification Can Save Landlords Time and Money

How automating utility verification for new tenants can save landlords time and money and be sure tenants have signed up for utilities.

 By Naman Trivedi

Apartment managers have a long checklist of responsibilities when preparing to welcome a new tenant.

This typically can include everything from cleaning the unit after the previous occupant moves out to making any necessary repairs to changing the locks and ensuring that all plumbing, heating and electrical systems are functioning properly. In most cases, the process also includes verifying that a new tenant has signed up for utilities; Chandan Economics has found that almost three-quarters of residents in large multifamily apartments and 90 percent of in small multifamily apartments pay for their own electricity usage.

However, this seemingly small step can result in real costs for property owners if not managed properly.

In most instances, property managers either do not do utility verification and utility billing properly, or they must ask each new resident to manually provide a utility account number. Even this check is generally passive, as property managers rarely verify that a new account number was established in the tenant’s name. While it’s a tedious and time-consuming process, if not carried out, the property can be liable for the cost of the utilities if accounts aren’t properly established and transferred.

At an apartment building with a few hundred units, this impact on operating expenses is significant if a landlord is on the hook for even a month or two of service. While these costs can potentially be recovered from the tenant after the fact, the process can take weeks – if not months – and create unnecessary headaches.

Revert-to-owner agreements

One approach that landlords use to manage this process is to set up “revert-to-owner agreements” with the local utility, which are sometimes also known as landlord-rollover agreements. These agreements ensure that service remains active during the period between one tenant moving out and a new one moving in.

This requires completing paperwork in advance with the utility to place all billing information – and responsibility – in the landlord’s, property manager’s, or owner’s name. Once the tenant signs up for service, the billing then switches over to their name and they become responsible for monthly bills. Avoiding a gap in electricity service is certainly a convenience for landlords; however, if a tenant stops paying the utility, then landlords could find themselves on the hook for any missed or overdue bills.

Vacant-unit cost recovery

In the event that an existing tenant stops paying their utility bill, landlords often turn to vacant-unit cost recovery (VUCR) to try and recoup those costs. Similarly, VUCR allows landlords to recoup costs incurred by new tenants who failed to sign up for utility service in their name upon moving in. As one might imagine, it’s a cumbersome process to recover these costs and it can take several weeks or even months to do so.

There are a number of service providers that specialize in VUCR on behalf of the landlord. Some are offered as a collections-style service that help recoup these costs after they are incurred by tenants. Other services monitor proactively for overlap between a landlord’s occupancy data and vacant-unit utility-service invoices. In other instances, VUCR is included as part of a suite of property-management software tools to help landlords reduce the amount of time they spend on utility management. In all of these scenarios, however, landlords pay a fee for someone else to administer the service on their behalf.

Automation technology

Lastly, there is a new method to manage and verify the proper establishment of utilities that relies on automation technology to handle the process. This new method streamlines utility verification by notifying landlords when a new tenant sets up an account with an electricity provider. This is typically accompanied by an administrative dashboard that allows the landlord to quickly confirm whether each of their tenants has established utility service in their respective name.

One benefit of automation is that it often includes a complementary service that allows residents to compare and select electricity plans from various providers in deregulated markets. Typically offered at no cost to landlords, an automated solution may also be accompanied by a revenue share that landlords receive from the electricity provider each time a resident establishes service. Generally, however, automated services are only available in the 13 states that currently have deregulated electricity markets.

Regardless of the method selected, the research from Chandan Economics points to an increasing number of residents in recent years paying for utilities separate from their rent. As such, the issues and challenges associated with utility verification to confirm that tenants properly establish and maintain utility service are likely only to continue to grow.

About the author:

Naman Trivedi is co-founder and CEO of energy intelligence service WattBuy and a 2020 Forbes “30 Under 30” honoree in the energy category. In addition to roles at Google and Box, Trivedi previously served in the White House Office of Science and Technology Policy, where he focused on federal renewable energy policy.

 

3 Unexpected Costs Landlords Have When Tenants Move Out

More Than 15,000 Apartment Industry Jobs Open in July

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By The Editors
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More Than 15,000 Apartment Industry Jobs Open in July

Apartment industry jobs continued to show strength despite the pandemic, with more than 15,000 jobs available in apartments during July, according to the National Apartment Association.

The National Apartment Association Education Institute’s Apartment Jobs Snapshot for July showed that multifamily job opportunities comprised over 46 percent of the real-estate sector jobs during July, exceeding the 2019 monthly average of 39 percent.

Maintenance jobs were in high demand, accounting for about 30 percent of the openings in  apartment industry jobs.

Major Texas markets such as Houston, Dallas, San Antonio, and Austin led the nation with the highest concentration of job postings.

More Than 15,000 Apartment Industry Jobs Open in July

In Denver, the demand for maintenance technicians was more than three times the U.S average, and median market salaries also exceeded the national median. Seattle also had a high demand for maintenance technicians at 2.5 times the U.S. average.

The top specialized skills employers are seeking included plumbing, repair, HVAC, carpentry skills, and painting.

top maintenance skills needed for apartment jobs

More Than 15,000 Apartment Industry Jobs Open in July

National apartment association jobs report background

“Our education institute is a credentialing body for the apartment industry. They hear often that one of the biggest problems keeping our industry leaders up at night is the difficulty in finding talent, attracting talent and retaining talent,” NAAEI’s Paula Munger said.

Assistant Property Manager Jobs In Demand

So NAA partnered with Burning Glass Technologies. “They have a labor-job posting database that is proprietary,” she said, and they can “layer on data from the Bureau of Labor Statistics (BLS). We looked at that and thought we could do something that is really going to help the industry and help benchmark job titles and trends as we go forward.”

Apartment Jobs Hiring Resilient in 2nd Quarter

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5 Ways to Spot Fake Landlord References

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By The Editors
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5 Ways to Spot Fake Landlord References

One of the most crucial aspects in tenant screening is that of checking your prospective tenant’s landlord references, so here are 5 ways to spot fake landlord references from Keepe the maintenance company.

Unfortunately, some tenants have been known to make up references or list friends or family members as previous landlords. There are even companies that hire themselves out to pose as landlords.

As a property manager, you are bound to receive landlord references day in and day out. Some are beautifully written testaments to the incredible nature of these individuals looking to rent, while others are simply fake, with bogus testimonials about the tenant.

5 ways to spot fake landlord references

Below, we’ve shared some ways in which you can spot fake references.

No. 1 – Call the references yourself

 For starters, on most landlord references, they will provide a phone number.

One of the first things you can do to tell if the reference is a fake is to call the number inquiring about a rental. If it is fake, the number either won’t work or will lead to a completely different person or place.

In rare instances, a fake number does lead to an individual, but they may seem to be either untruthful or not detailed in their answers.

No. 2 – Check up on the reference’s name

 Go online and Google the reference’s name and look them up on social-media platforms.

Check to see if this person is tied to the potential tenant through tagged pictures and/or posts. If there is a lot of overlap in the people’s profiles, these individuals may have a personal relationship and not a tenant/landlord relationship.

No. 3- Look at tax records

The tax records for all property owners are in the public domain. All you have to do is look up the records for the address where the applicant claims to have lived.

The name on the tax record should match the name you’ve been given. Double-check that the property hasn’t been sold, but otherwise this is a great way to spot a fake.

No. 4 – Analyze a reference’s answers

It’s best to always fall back on your knowledge as a landlord and analyze the answers that the potentially fake landlord reference has given you.

If their answers are vague and don’t have details then it’s likely that they aren’t a real landlord and are instead a friend or family member of the person who is trying to rent from you.

No. 5 – Ask for advice from the reference

 Landlords tend to have the same frustrations, interests, and problems.

It wouldn’t be at all unusual for you as a property manager to ask for some advice from another landlord while calling for a reference. Ask for their procedure for getting rid of a tenant who doesn’t pay, for instance.

A real landlord will have an actual answer, even if they’re not interested in spending much time on the phone with you. A fake, on the other hand, will likely have nothing specific to say. This can help you further determine whether the person on the other line is a real landlord, or someone just posing as such.

In conclusion

 As a property manager, a significant part of your job involves filling properties with quality, long-term tenants. Including thorough reference verification as part of your tenant screening process, such as the strategies above, can help you avoid costly mistakes and keep you a few steps ahead of the game.

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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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Missed Housing Payments Reach 33 Percent in Early August

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By The Editors
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Missed Housing Payments Reach 33 Percent in Early August

In the first week of August, 33 percent of renters missed housing payments and failed to make their full housing payments on time, according to Apartment List. It’s the highest non-payment rate since this survey began in April.

“Now that the protections and benefits provided by the CARES Act have expired, we find that renters are actively renegotiating leases with their landlords to remain in their homes,” said Chris Salviati, Housing Economist at Apartment List, about the survey.

Highlights of the survey include:

  • Late and unpaid housing bills are accumulating, putting financial strain on many families and deepening concerns of near-term evictions and foreclosures.
  • As federal and local eviction bans continue expiring across the nation, 32 percent of renters (and homeowners) entered August with unpaid bills. Over 20 percent owe more than $1,000.
  • Landlords are showing a willingness to negotiate payment plans with their tenants in order to keep their properties occupied. Among renters with unpaid housing bills, 49 percent have either negotiated, or are in the process of negotiating, an arrangement with their landlord.

Missed Housing Payments Reach 33 Percent in Early August

Entering August with outstanding debt from prior months

“Given that we have witnessed consistently elevated rates of non-payment for months, it is unsurprising that 32 percent of Americans entered August with outstanding housing debt from prior months. This is creating a deep sense of housing insecurity for those struggling to keep up financially,” the report says.

“Among those with unpaid housing bills, 66 percent of renters and 65 percent of homeowners are worried about facing an eviction or foreclosure within the next six months. Moreover, two-thirds of the renters in this group have not made a complete August payment. With the recent expiration of most federal eviction and foreclosure protections and a lapse in expanded unemployment benefits, this insecurity is sure to deepen over the coming weeks,” the report says.

Eviction Concerns Mount, but Many Landlords and Renters Are Reaching New Agreements

Some statewide moratoriums have already expired, with others set to expire in coming months. And the majority of federal CARES Act protections have expired.

“Against this backdrop, respondents to our survey are expressing significant concern about their short-term housing security. In August, 37 percent of renters say that they are at least somewhat concerned about facing an eviction within the next six months, while 26 percent of homeowners are concerned about foreclosure,” the report says.

“Evictions are not just a threat to renters, but potentially costly for landlords as well. Given the current circumstances, landlords have to decide whether an eviction makes sense financially, even if their tenants are behind on rent. With so many Americans out of work, a vacant unit may be difficult to fill, creating long stretches of lost revenue for the landlord. So for some, providing leniency to tenants who are in a financial bind (on the grounds that rent debt will be repaid eventually) could be mutually beneficial. With that in mind, our data show that many landlords are showing a willingness to negotiate repayment plans for their tenants who are struggling,” Apartment List says.

Among renters who entered August with missed housing payments and unpaid bills, 28 percent said that they had reached an agreement with their landlord for a payment plan or otherwise renegotiated lease terms, while an additional 21 percent are in the process of negotiating such an agreement. At least 33 percent had not inquired about negotiating with their landlord, while the remaining 18 percent inquired but were denied.

The survey says renters who are up-to-date on their payments are far less likely to seek a new arrangement. Eighty-two percent have made no such request, while only 10 percent have negotiated (or are currently negotiating) a new payment plan.

Missed Housing Payments Reach 33 Percent in Early August

Housing security in jeopardy for many

Many of the protections and benefits put in place at the outset of the pandemic are now expiring, and the prospects for another round of stimulus remain uncertain.

“As unpaid housing debt builds, concerns around eviction and foreclosure are mounting. Although landlords and lenders are showing a willingness to negotiate, housing security is currently in jeopardy for an unprecedented number of Americans,” the report says.

Apartment Search Data Not Showing Exit from Cities

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Portland Rents Held Steady Over The Past Month

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By The Editors
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Portland Rents Held Steady Over The Past Month

Portland rents held steady over the past month, but are down moderately by 1.1 percent year-over-year, according to the latest report from Apartment List.

Median rents in Portland are $1,119 for a one-bedroom apartment and $1,320 for a two-bedroom.

Portland proper has the least expensive rents in the Portland metro. Portland rents held steady after a couple of months of decline.

Rents falling across the Portland Metro

Rent prices have been decreasing not just in Portland over the past year, but across the entire metro.

Of the largest 10 cities in the Portland metro for which Apartment List has data, 6 of them have seen prices drop.

Here’s a look at how rents compare across some of the largest cities in the metro.

  • Over the past year, Canby has seen the biggest rent drop in the metro, with a decline of 4.7 percent. Median two-bedrooms there cost $1,745, while one-bedrooms go for $1,479.
  • Forest Grove has seen the fastest rent growth in the metro, with a year-over-year increase of 2.2 percent. The median two-bedroom there costs $1,453, while one-bedrooms go for $1,232.
  • Hillsboro has the most expensive rents of the largest cities in the Portland metro, with a two-bedroom median of $2,056; rents grew 0.1 percent over the past month but fell 2.2 percent over the past year.

Portland Rents Held Steady Over The Past Month

Valley Rents In Oregon Hold Steady

Eugene rents have remained steady over the past month according to the latest report from Apartment List.

However Eugene rents are still down slightly by 0.5 percent year-over-year.

Median rents in Eugene stand at $824 for a one-bedroom apartment and $1,097 for a two-bedroom.

Corvallis rent trends were flat over the past month

Corvallis rents have remained flat over the past month, however, they have increased slightly by 1.0 percent year-over-year.

Median rents in Corvallis are $833 for a one-bedroom apartment and $1,045 for a two-bedroom.

Salem halts rent decline over the past month

Salem rents have remained steady over the past month, but are down significantly by 2.2 percent year-over-year.

Rents in Salem stand at $813 for a one-bedroom apartment and $1,069 for a two-bedroom.

Oregon rents

Portland Rents Continue Decline During Pandemic

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Landlord Rights and Remedies After HB 4213: A Path Forward

By
Brad Kraus
-
Landlord Rights and Remedies After HB 4213: A Path Forward What Can I do now?

Landlord rights and what is available now that HB 4213 has been approved by the Oregon legislature.

Bradley S. Kraus
Attorney at Law, Warren Allen, LLP

Throughout the COVID-19 pandemic, many inquiries I received from clients can be summarized in one question: “What can I do now?”

For many months, a holding pattern existed, as available options were non-existent, or courts were simply turning matters away, even when a remedy did exist.

As the calendar turned and June gave way to July, I waited to see what the Oregon Legislature would do with regard to landlord/tenant law during the special session. After months of relying on Gov. Kate Brown’s executive orders, the legislature crafted House Bill 4213.

Landlord rights

While far from perfect, HB 4213 provides a path forward for some landlords.

One road opened by HB 4213 is the ability to act on pre-COVID-19 rent defaults. HB 4213 revolves around the “emergency period,” a timeframe defined as April 1, 2020 through September 30, 2020. If a tenant has not paid monies that were due prior to the emergency period, landlords now potentially have a path forward related to those amounts.  This requires a bit more nuance and analysis, due to HB 4213’s definitions and payment application; landlords are encouraged to contact their attorneys to discuss those amounts.

Another loophole closed by HB 4213 is the ability to file eviction actions on a tenant’s no-cause notice of termination. Gov. Brown’s executive order swept up the entirety of ORS 90.427 in its prohibitions. That statute includes both landlord’s and tenant’s no-cause notices. This left many landlords with tenants holding over simply because nothing could be done to force them to comply with their own notice. Thanks to HB 4213, that issue is now clear.

Many landlords were caught in limbo as their court proceedings came to a crashing halt when eviction moratoriums went into effect. Many eviction actions that resulted in payment agreements were paused, with landlords not able to act on defaults of the same. With the removal of Executive Order 20-13, a default for an amount not covered by the emergency period can now be acted upon with a declaration of non-compliance. Courts differ in how quickly they are acting on such filings—and how quickly they are setting hearings, should a tenant request one. Unlike before, however, a path forward does exist.

Other court cases—in more advanced stages held in limbo by executive orders—are also now moving forward. For example, if a landlord had filed a declaration of non-compliance on a court payment agreement, or had a judgment of restitution in their favor, court proceedings or the ability to enforce these judgments were paused and pushed out. While technical, a path forward now likely exists for both. However, judgments can—and do—go stale. Keep in mind that ORS 105.159 prevents a clerk from issuing a writ on a judgment over 60 days old. If you have such a case—with a judgment in hand—seeking counsel to file a motion to procure an amended judgment of restitution may be necessary to finalize your move toward possession.

From a legal perspective, HB 4213 opens doors that were otherwise previously closed. Many roadblocks still exist though, and HB 4213 adds yet another punitive damages provision of three months’ rent.

Procuring counsel to explore your landlord rights and remedies is always important, but more so in today’s difficult climate.

Landlord rights and Brad Kraus Portland Attorney and HB 4213 from the Oregon legislature

About the author:

Brad Kraus is an attorney at Warren Allen LLP. His primary practice area is landlord/tenant law, but he also assists clients with various litigation matters, probate matters, real estate disputes, and family law matters. A native of New Ulm, Minnesota, he continues to root for Minnesota sports teams in his free time. You can reach Mr. Kraus via email at kraus@warrenallen.com, or by phone at 503-255-8795.

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Landlord Rights and Remedies After HB 4213: A Path Forward What Can I do now?
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