Having the right kind of kitchen range hood in your rentals can help make cleaning easier for you and your tenants, keep the air a little fresher, and reduce complaints of cooking smells. This is the weekly maintenance tip from Keepe.
If you are replacing a stove or doing a small kitchen renovation, think about the options and what might be the right kitchen range hood options.
A kitchen range hood or vent hood helps trap the smoke, heat, steam, odor, and grease from your tenants’ cooking or frying and then transfers them outdoors. This eliminates the presence of strong smells or unhealthy smoke during or after cooking.
Benefits of a Range Hood
First, let’s look at why you should have a range hood in your rentals in the first place, or replace an old existing one.
A range hood helps to collect any dangerous fumes, which in turn protects tenants from carbon monoxide poisoning.
Having a range hood that collects kitchen grease and smoke saves hours of cleaning time. It also gives you a cleaner and fresher kitchen environment and protects and adds value to your rental unit.
Range hoods can add extra lighting to the cooking area, increasing safety in the kitchen.
Under cabinet range hood is a more economical choice for a rental, this type of hood fits under a cabinet above the stove.
3 Types of Range Hoods
Good, low-cost range hoods for your rentals are available. So here are the general types of range hoods, starting with the upper end for higher-priced units. Range hoods usually come in a ready-to-install package, making it easy for maintenance.
No. 1: Island-mount range hood
These are used over cooking equipment where no wall exists. This type of range hood is attached directly to the ceiling. Most island-mount range hoods will cover ceiling heights of up to 9 feet. Positioning this type of hood over the cooking surface is the best way to eliminate fumes or smell.
No. 2: Wall-mount range hood
Large, stylish, and professional in appearance, a wall-mount range hood is a popular choice. It is often installed on exterior walls when a cabinet isn’t available. A wall mount range hood is like an upside-down chimney in appearance. The size of the wall vents should be the same or larger in comparison to the stove size.
No. 3: Under-cabinet range hood
A more economical choice for a rental, this type of hood fits under a cabinet above the stove. It is mounted under the wall cabinet and attached to an exterior wall. The most common duct size for this hood is about 5 inches to 8 inches. These hoods are mainly top-vented, but some come with back-venting options. When compared to a wall-mount range hood, the under-cabinet range hood is more powerful because of its double blower feature.
Factors to Consider When Choosing a Range Hood
Size: Range hoods come in different sizes depending on specific needs. In general, when choosing the size of a range hood, choose one that matches the size of the unit’s stove or slightly larger. For instance, if the stove size is 30 inches, you should aim for a 36-inch range hood. This allows it to effectively collect all the steam or smoke without any drifting past the sides.
Power: The more powerful the range hood, the more efficient it will be at its job. Manufacturers will provide you with a measure of power to expect from their range hoods in CFMs (cubic feet per minute). The Home Ventilating Institute recommends at least 100 CFM per linear foot of range for range hoods installed against a wall, and 150 CFM for island vent hoods. Also, ductless hoods do not provide the same power as range hoods that need to vent the air outside your house.
Ventilation Type: Range hoods are either vented and include ducts that move air outside, or they’re ductless and recirculate all the air they take in while trying to remove as much of the smoke and food contaminants as possible with the help of filters. Ducted range hoods are far more effective than ductless ones, but they’re more complicated to install, will cost you more upfront and might be impractical depending on the building your rental is in. Remind your tenants that a ductless range hood has filters that need to be replaced regularly and that the range hood needs more frequent cleaning.
In conclusion
Range hoods may not be in the budget to replace in every rental property, but if you can afford them, they are a great addition to tenants’ kitchens. The range hood will improve kitchen air quality, save cleaning hours, and add to the value to your rental.
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.
By Dwight Kay, CEO and Founder, Kay Properties and Investments, LLC
and Chay Lapin, Senior Vice President, Kay Properties and Investments, LLC
At Kay Properties we have created an online real estate platform and marketplace at www.kpi1031.com that provides investors the opportunity to explore various 1031 exchange investment opportunities across the entire country and across multiple real estate asset classes.
More importantly, we have created an extensive real estate and 1031 exchange educational platform. Over the years, investors from across the world have used the Kay Properties Platform to educate themselves and learn about the various categories within the 1031 exchange and real estate investing industry.
Every investor learns in their own way and we have been able to accommodate various options for people within our educational platform, a few examples are: a published book, live updated blog, case studies, press center, video content, podcasts, weekly educational conference calls, an audiobook, free Subscription to the DST industry magazine and a free subscription to the 1031 Exchange Times newspaper (Sign up for free at www.kpi1031.com or email info@kpi1031.com to sign up for your free subscriptions).
The Kay Properties Marketplace Platform has provided investors access to over 25 different real estate sponsor companies that put together various opportunities for investors primarily within the asset classes such as Multifamily/Residential, various Commercial Assets, Net Lease Properties, Industrial, Medical and Self-Storage.
Within the marketplace, investors can review offering documents that include the business plan, due diligence materials and the risk factors of each 1031 investment. This is where the www.kpi1031.com marketplace platform really sets itself apart from others.
If an investor were to go out on their own to purchase real estate, they may have to potentially spend thousands of dollars on legal fees and due diligence reports (property condition report, appraisal, environmental report, survey, zoning report, etc) in order to confirm that there are no major issues with the property, and these due diligence reports can take weeks to be completed as well as are very costly. On the Kay Properties marketplace, this information has already been completed and provided for investors to review https://xanaxtreatanxiety.com.
The typical investor that has invested in the Kay Properties Marketplace has looked to complete a 1031 exchange, diversify their real estate holdings by making cash investments, or utilizing various other investment options such as Opportunity Zone Fund investments.
These investment options can be great for investors who have very real capital gains tax problems due to selling appreciated assets, for those investors who no longer want to manage their property and deal with tenant headaches, as well as for investors who have a full-time job and dont have time to manage real estate on top of their full schedule.
One potential advantage that the Kay Properties Platform provides to investors is access to nationwide data; we work and partner with some of the largest real estate companies in the country that provide us with their research and give an overview of their assets and performance. This can potentially help to set investors on the www.kpi1031.com marketplace ahead of others.
The Kay Properties Platform has had clients from across the country invest into over $20 billion worth of real estate offerings that were both for 1031 exchange investors via Delaware Statutory Trust – DST offerings, Opportunity Zone Fund investors and direct cash investors seeking a way to diversify away from stock market volatility.
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 WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities.
Tenant communication is always important but now vital during covid-19.
By Barbara Jackson
With COVID-19 affecting every aspect of daily life, it’s important for tenants to know that their landlords, property managers, and real estate agents are keeping lines of communication open. Learn how housing professionals are using technology to manage tenant communication during COVID-19.
Be prepared
Tenants are going to continue to have a lot of questions surrounding COVID-19. Consider adding an FAQ section to your website, so your tenants have one place to go to get all their questions answered. Address any changes in operations, such as new safety precautions, the hours your office is open (if at all), how tenants can pay their rent safely and efficiently, and how you are showing new properties. Update all of your business listings to have your current hours of operation, and direct your tenants to the FAQ page on your website.
Be patient with your tenants. Do your best to give them all the information you can, and assure them that their safety is your No. 1 priority.
Be available to prospects
Prospective tenants cannot communicate with you if they are unaware of how to contact you. Set up your website with various chat options for tenant communication so that you never miss an opportunity to connect with a new prospective tenant.
Live chat options
Folks are still looking for housing, even in these trying times. With a large portion of the nation working remotely, prospects may think that your office is closed, and avoid calling your business number. Having live chat installed on your website can make communication easier.
When prospects need to get in touch with you, they can go to your website, click on the live-chat icon, and type in their questions. An employee can answer these questions in real-time easily from their computer or mobile phone.
You may be thinking that it would be a drain on your company’s resources to have an employee available 24/7 on live chat. In that case, housing professionals can use BirdEye Webchat. When a prospect is on a website, they can click on the existing live chat icon, but if a representative is not available, the prospect can leave a message along with a phone number. Then, an employee will respond through a text message once they are available.
Chatbots
If you want to get answers for your prospects even faster, consider using a chatbot; it’s easy to set one up to work with various live-chat and webchat services. Chatbots are able to answer FAQs like, “What are your hours?” or “Where are you located?” Not only does this get prospects an immediate answer, but chatbots help employees dedicate their focus on answering more detailed questions. This saves your business valuable time and resources, and delivers your prospects a better customer experience.
Create easy communication with your tenants
Whether you are answering emails from home, researching new listings, or managing your properties on-the-go, chances are you always have your mobile phone with you. Your tenants are no different. Business texting is a fantastic way to set up easy two-way communication with your tenants.
Use SMS texting to send payment reminders, schedule appointments to view new properties, or to send important updates about the safety precautions you are taking. Have your tenants save this number so they know to text with any questions they may have during this uncertain time.
Track tenant communication in one spot
It can be overwhelming to track all of your conversations with prospects and tenants across multiple platforms. Instead of hopping from platform to platform, use a unified inbox so that all of your conversations can be stored in one place. With a unified inbox, you can be notified with each new message, respond to it, and store conversation history in one hub. Effortlessly keep track of tenant communication and let your tenants and prospects know that they are your top priority.
With the right resources we can all adjust to these unique circumstances. Install live chat on your website, make your business phone number textable, or store your communications in one inbox, with BirdEye. BirdEye Interactions has everything housing professionals need to manage their tenant communications during COVID-19.
About the author:
Barbara Jackson is a marketing writer at BirdEye. She has degrees in Nonfiction Writing and Communications & Rhetoric, and writes on a variety of topics ranging from Online Reputation Management to Customer Experience and SEO.
A lawsuit has been filed in California that seeks to overturn an emergency order that prohibits landlords from evicting tenants who can pay rent but refuse, or who create a nuisance or safety hazard, according to a release.
The Pacific Legal Foundation filed suit on behalf of two landlords, Peggy Christensen and Peter Martin, saying, “Eviction is a critical tool for landlords to manage their property” by evicting tenants “who refuse to pay rent or create nuisances and safety hazards. The process allows landlords to remove tenants who deliberately withhold rent or damage property, so that they can aid tenants experiencing hardship and offer housing to good renters—a particularly important consideration during the coronavirus pandemic.
“But the California Judicial Council decided to take matters into its own hands and effectively banned all evictions by forbidding courts from issuing summons or entering default judgments,” the release says.
Evicting tenants who cause damage or conduct illegal activity is not possible under ER 1
The suit argues that the California Judicial Council responded to the coronavirus pandemic by issuing 11 emergency rules of court, including one called Emergency Rule 1 (ER 1) that prohibits evictions. The lawsuit argues that ER 1 “violates the fundamental rights of property owners by indefinitely suspending their right to initiate unlawful detainer (eviction) actions. The rule creates the perverse incentive for all tenants, whether they face financial hardship or not, to refuse to pay their rent during the crisis. And it immunizes from eviction even tenants who create nuisances, damage property, conduct illegal activity, or violate lease terms.”
The suit says the emergency order puts a “significant hardship on landlords,” is unconstitutional, and “effectively closes the courthouse doors” to landlords and “obstructs their right to re-enter their own property.” The suit asks the court to rescind ER 1 so landlords can start evicting tenants and compensate the landlords for lost rents.
The story of landlord Peggy
Peggy Christensen, 63, is a retired medical-devices consultant. Through her living trust, she owns an eight-unit complex in Mojave, California, the lawsuit says.
“Peggy keeps the units in good condition and usually has good relations with her tenants, including accepting late payments and waiving late fees. One of her tenants lived in a unit with his girlfriend, but he subsequently abandoned the unit and ceased paying rent. Though Peggy has not and would not have rented to the woman, Peggy allowed her to continue to live in the unit out of compassion. However, she has damaged the property, disturbed the other tenants, and created a nuisance.
“As a result, Peggy has received numerous complaints from other tenants. In addition, though this individual paid rent intermittently in the past, she has not paid rent since February 2020 and has not claimed any coronavirus-related hardship. Peggy now wishes to evict her. Emergency Rule 1 prevents Peggy from doing so.
“Peggy Christensen’s property is almost always full. Other than gaps of less than one month for cleaning and repairs between tenants, the property has been full since mid-2017, when Peggy acquired the property. The property has been full for the duration of Emergency Rule 1. Her last vacancy, when a tenant moved out at the end of February 2020, received 20 inquiries and was filled by March 9. In early March, she received a rental application from a well-qualified prospective tenant. But for Emergency Rule 1, Peggy would have initiated the evictions process against the disruptive tenant in April in order to accommodate this applicant. In the months since Emergency Rule 1 (was) issued, Peggy has received multiple unsolicited requests to rent. In addition, two of her current tenants have contacted Peggy urgently seeking housing for their friends. But for Emergency Rule 1, Peggy would have been able to effect an eviction and been able to welcome a rent-paying tenant in need of housing. The rent she has lost as a result of Emergency Rule 1 increases with each month.”
The story of landlord Peter
Peter Martin, 59, is a retired attorney who, through his living trust, owns a 27-space mobile home park in Arcata, California.
According to a local news outlet, one of his tenants was arrested in January 2020 on drug and firearms charges. In March 2020, the Humboldt County Drug Task Force served a search warrant on the tenant’s mobile home, the release says.
“Peter’s property managers have reported to him that other tenants have complained of this tenant. In addition, this tenant has not paid rent since January and has not claimed any coronavirus-related hardship. As a result, Peter attempted to evict this tenant for disturbing the other tenants by engaging in unlawful drug activities on the premises. The Superior Court of Humboldt County refused to issue a summons due to Emergency Rule 1,” the release says.
Pacific Legal Foundation is a nonprofit legal organization that says it “defends Americans’ liberties when threatened by government overreach and abuse. We sue the government when it violates Americans’ constitutional rights—and win!”
When to sell a rental property is a question faced by many real estate investors so in this week’s Ask Landlord Hank he offers some suggestions.
Dear Landlord Hank,
We have a 13-year tenant, on month-to-month, with three children, no father involved. She can hardly afford the rent, which I have kept low as she is a good tenant. The state and an uncle help with the rent. She runs a small day care in the unit. Business has been very slow the last couple of years. I need to sell, but what options do I have?
-Don
Dear Landlord Don,
It sounds like you’ve been very generous with this tenant for 13 years to allow her to raise her family in your rental.
The property is your rental though, and you have no obligation to continue to allow a tenant to rent from you forever.
If you had a current lease, you would simply let this tenant know that you are selling the unit at the end of her lease and she would not be able to renew. You’d put it in writing and send it to her by certified mail, return receipt requested, so you’d have proof of delivery.
Since you have no lease and your tenant has a month-to-month tenancy, I would talk to her and tell her the same thing, which is you have no choice but to sell the property and she must vacate. Since she has been a good long-term tenant, I would give her some extra time to find a new place.
Ultimately, you may have to evict the tenant if she won’t leave voluntarily. If the property looks good you could also try to sell it with the tenant in place.
All of this above advice is dependent upon compliance with your state’s current laws regarding eviction protection due to the pandemic, and whether your property falls under the Cares Act.
Sincerely,
Hank Rossi
Ask Landlord Hank Your Question
Ask veteran landlord and property manager Hank Rossi your questions from tenant screening to leases to pets and more! He provides answers each week to landlords.
Renters are changing, and the properties and property managers of the future are going to have to be increasingly flexible to adapt to evolving renter needs, says Buildium in its 2020 Renters’ Report.
Property managers are already starting to see the trends: They must adapt to more roommates, different household types, pets, and other changes that focus on renter needs.
Also, higher-income renters who are professionals have become more common, along with seniors.
Less about granite countertops, more about customer service
“Renters also have higher expectations than ever—though not in the areas you might expect,” Buildium writes in the report.
“Property managers have been feeling pressured to offer the latest amenities as luxury developments pop up in neighborhoods across the country. But attracting renters in 2020 is less about the flashy appeal of pools and granite countertops—particularly in the current economy.
“Instead, it’s more about delivering a level of customer service that makes renters feel as though their needs have been taken into consideration in the place they call home,” the report says.
Chart courtesy of Buildium
Some highlights of the renter needs report
Among the 1,188 renters who took the Buildium survey, two in five definitely plan on renewing their lease for another year—a number that stayed constant from 2018 to 2019. Only 27 percent say they are definitely moving.
Reasons for renting vary by generation. Some simply cannot afford to buy where they are and have to rent because it is more affordable. Others, such as seniors, want the convenience of not having to maintain a home.
Charts courtesy of Buildium
“Renters’ desire to own a home of their own varies logically by age,” the report says. “Gen Z residents are happy renting for now, but assume that they’ll want to become homeowners down the road. Millennials and Gen X renters are highly interested in homeownership, but are waiting for the right time to buy. Baby boomer residents are largely former homeowners who either prefer to rent or have financial reasons for doing so at this time in their lives.”
Technology renters need is not fancy thermostats
The report says that while technology interest has grown by 7 points over the past year, renter needs are not about fancy gadgets like thermostats or door locks.
“The biggest gains in interest among renters were in applying for rentals online (+15 points), communicating with their property manager via text or email (+11 points), and signing leases and other documents electronically (+8 points),” Buildium says. “Baby boomers are far more interested in technology than they were just a year ago. On average, interest in rental technologies has grown by eight points among Gen Xers and 10 points among baby boomers.”
Chart courtesy of Buildium
Also, most renters want to pay their rent with a credit card, debit card, or electronic payment of some type, instead of paying with a check.
“Residents of all ages appreciate having the option to pay their rent online, and their expectation to be able to handle this and other tasks digitally increases with every year,” the report says.
The most popular building amenity is high-speed internet
When it comes to technology, nothing is more important than high-speed internet, especially now that more people are working from home.
“High-speed internet has remained the most popular building amenity for the last three years,” the report says.
Chart courtesy of buildium
The most popular in-unit amenity
In-unit laundry and central air conditioning have topped the list of residents’ most-wanted amenities for three years in a row.
Tenant screening services for landlords are not all the same writes veteran investigator and rental property owner David Pickron who offers several cautions to landlords.
When you’re shopping for a shirt, it’s easy to compare the quality of two options by looking at them side by side. You ask yourself questions like: Do I like the style? How is the stitching? Is the material going to last after one wash? How does it fit my build? This physical, tactile data gives you the necessary information to purchase the right shirt for your particular need.
Unfortunately, when it comes to backgrounds and screening your prospective tenants, you don’t have the same luxury.
As a landlord, the tenant-background research process and results are invisible, seeming like smoke and mirrors. You’ve probably asked yourself, “How do I quickly get a reliable background on an applicant that allows me to make an intelligent and informed decision, and protects my investment?” This is THE essential question for you, because the wrong background will cost you time, money, headache, and heartache.
Deterioration of tenant screening services for landlords
As a licensed private investigator, I’ve had a front-row seat to the deterioration of reliable information generated through tenant screening/background check processes, and the resulting misguided decisions by landlords over the years.
In the past, investigators went to the courts in the jurisdictions where rental applicants lived and worked to obtain current and accurate data, at the source. Contrast that with today’s “high-speed” approach to everything, where quickly delivered results are king, regardless of whether they are backed by inferior and useless data.
A New York Times article titled, “How Automated Background Checks Freeze Out Renters” does a fantastic job explaining how the growth in data-mining in relation to tenant screening has become such a lucrative market over the last 10 years; all to the detriment of the tenant. Most of the biggest players in the industry are sourcing their tenant applications through these well-known, large data providers. As noted in the article, these large companies often employ rogue screening techniques that saddle landlords with maintaining their investment while also trying to sort through a list of applicants with limited, often inaccurate data as their source material.
To add to all of this, the government requires landlords and screening companies to have systems in place to report accurate Fair Credit Reporting Act (FCRA)-compliant records. In other words, false or misleading records can result in a FCRA violation, which can lead to lawsuits. Denny Dobbins, attorney for Rent Perfect, reminds us that the top three pitfalls to look out for with screening-company instant results are:
No. 1 – Records are those of my applicant
Do the records on the report represent the right applicant, and how does the screening company know?
Being correct about the data you are using to determine an applicant’s status is critical. Recent case law shows evidence that many background companies simply do not have good or adequate processes in place to ensure that a criminal history really belongs to the applicant. Consider all the information that is needed to make sure your screening company is reporting accurate results for your applicant: date of birth, Social Security number (if it can be found), full address history of the applicant since age 18, maiden names, alias names, etc. Most screening companies that provide instant products do not obtain all this vital information, or lack the experienced personnel to analyze it properly for clues and anomalies.
No. 2 – Records match exactly with the court
Are the records reported to the landlord identical to what is in court records?
Landlords are expected to make informed, professional decisions and, without court-verified and matched records, you may be subjected to making unskilled interpretations and conclusions. Every time data is transferred from one source to another, it loses its original integrity, similar to a copy machine. The more copies of copies you make, the less quality you have versus the original. So, a case in an instant database might show as dismissed – as if they never created the crime – but the actual court file will show a guilty plea that was dismissed two years later because of good behavior. One says the person was guilty, the other infers he or she was not.
No. 3 – Records are complete and updated
Are all the records complete and up to date? As a landlord, you deserve to see the case in its entirety. Things to look for are (a) do the records show the actual final disposition of the case, i.e. did the record start as a felony but was later reduced to a misdemeanor; (b) was the case dismissed after the applicant successfully completed probation, or did the matter go through some kind of a diversion process as opposed to ending in a conviction? Keep in mind that criminal records are constantly being updated at the court, and it is critical to the have most recently updated records in your report. Also, of note, states deal with these issues differently and there is no standard by which they all report or update records. Please note, information typically found in instant-database searches is not always complete and/or updated.
Instant searches often provide faulty data, which, when used by a landlord, can result in getting sued by applicants.
“Are all the records complete and up to date? As a landlord, you deserve to see the case in its entirety,” writes David Pickron. Photo credit AndreyPopov via istockimage.com
Use a licensed private investigator for tenant screening services for landlords
There is both greater safety and protection for you and your investments using a licensed private investigator to perform your tenant screening.
Although this sounds expensive and possibly time-consuming, the exact opposite is true.
Over the years, court data has become more accessible, and trained private investigators have paid-subscription access that allows them to quickly gather court data at a minimal cost to you. When an investigator accesses court records at their original source, whether it is for evictions or criminal history, they get current, accurate, and complete results, which protects all parties involved in the transaction.
“There is both greater safety and protection for you and your investments using a licensed private investigator to perform your tenant screening,” said David Pickron.
Customer service is key for tenant screening services for landlords
Having the correct data is the first step in finding the right person, but you should also look to lean on your screening company for additional policies, procedures, and simple answers to questions you might have.
Large companies who want to get into the screening business might offer an online application or background check, but when you pick up the phone to call them, the line keeps ringing. Technology can only get us so far, but it cannot replace a human being on the other end of the line.
You should be able to call and lean on your screening company for additional policies, procedures, and simple answers to questions you might have says David Pickron. Photo credit Ridofranz via istockphoto.com
An application and background check are nice and convenient, but there is so much more to providing you the service and protection you deserve from tenant screening services for landlords.
“Landlords get in trouble when they do not follow the Fair Credit Reporting Act,” Denny Dobbins continues. “One of the biggest, and most easily corrected, mistakes landlords seem to make is the complying with sending the required Adverse Action letter to the applicant. This letter is required if the applicant does not qualify for or meet the landlord’s rental criteria. It is very easy to do, but landlords must make it a habit. A good screening company should have a procedure/process in place to help you meet your obligations for this requirement and consult you through this process, but the landlord has to send the actual letter.”
Another area many landlords do not realize they have to comply with is to perform a HUD-type of “individualized assessment” for any report that comes back with negative information resulting in the landlord deciding not to rent to the applicant, based in part or in whole on information found in the background report.
Dobbins indicates that the way to perform this individualized assessment is to ask yourself these questions:
Looking at the nature and gravity of the criminal history, does the particular criminal history in the report constitute a risk that I am not willing to take based on my substantial, legitimate, and non-discriminatory interests to protect my property, my staff and other residents? In other words, what kind of criminal history is it and how bad was it? Is it an unacceptable risk to take?
How long has it been since the applicant was involved with the criminal activity?
How long has it been since the applicant has been released from prison or parole for that criminal activity?
Have I analyzed all information that the applicant has provided me about mitigating factors regarding the criminal activity and rehabilitation for the criminal activity?
Does the particular criminal history in the report constitute a risk that I am not willing to take based on my substantial, legitimate, and non-discriminatory interests to protect my property, my staff and other residents? Dobbins asks.
To help guide the analysis above, Fair Housing suggests investigating back o more than seven years, and determining if any prior crimes cause a threat to your property or other people. However, some felonies may create enough risk that you may want to include a longer research period, such as sex crimes, crimes against children, and violent crimes. These should be discussed with your attorney.
Landlords have a duty to properly screen tenants as outlined above, and may be held liable for the criminal acts of a bad tenant upon others. What might seem like a “no-win” situation can easily be remedied by having a legally sound rental criteria that is strictly enforced, fair and respectful treatment of tenant applicants, employing a quality background-check company that ensures they are delivering accurate and complete results, and giving you the proper tools and resources to manage applicants that do not meet your criteria.
Summary
So, compare your current tenant applicant background process with the actions that are prescribed above. If you find them lacking in one or more areas, you owe it to yourself and your investments to find a screening company that understands your needs for quick (less than 6 hours), accurate, and up-to-date information on your applicants while supporting you every step of the way. With the right questions and diligent comparisons, you will soon find out that not all screening services for landlords and companies are the same.
About the author:
David Pickron is a private investigator licensed in Arizona. He owns and manages residential and commercial properties and is the founder and president of Rent Perfect, an investigative screening company. He wants landlords to find the right renter the first time.
At the beginning of June, 30 percent of Americans missed housing payments, down slightly from 31 percent in May but still up from 24 percent in April, according to the latest report from Apartment List.
The missed-payment rate—the percentage of renters and mortgaged homeowners failing to make a full payment at the beginning of the month—jumped to 24 percent in April, rose again to 31 percent in May, and then dipped slightly to 30 percent in June.
Of those who have yet to make their June housing payment, one-third made a partial payment and two-thirds made no payment at all.
Some highlights of the missed housing payments report
Missed payments continue to concentrate among renters, younger and poorer Americans, and those who cannot work remotely.
A majority of payments missed at the beginning of the month are paid by the end of the month. But those who do not pay on-time in one month are much more likely to miss a payment in the following month.
Some eviction and foreclosure protections are beginning to expire, creating concern that many Americans will soon lose their housing as a result of missed payments. As many as 37 percent of renters (and 26 percent of homeowners) are at least somewhat concerned that in the next six months they will face an eviction or foreclosure.
Housing payments often catch up by end of the month
“Despite many households missing payments at the beginning of each month, the majority have managed to close the gap with late payments over the following weeks,” Apartment List said in the report.
“In April, nearly one quarter did not make a full on-time payment, but fewer than 10 percent remained delinquent by the end of the month. May showed a similar trend: the missed-payment rate dropped from 31 percent at the beginning of the month to 11 percent at the end.”
Some sources, such as the National Multifamily Housing Council, have reported a higher percentage of rent being paid than what Apartment List is reporting.
Rob Warnock, research associate at Apartment List said, “We’ve consistently reported higher missed payment rates than NMHC, and I think it has to do with two things.
“The first is the composition of our samples. By surveying professionally managed multi-family apartment buildings, the NMHC data naturally favors newer market-rate units and a wealthier demographic of residents who can afford them. Our survey, on the other hand, doesn’t have this exclusion. So, I think we’re capturing more inventory on the lower-end of the market, where missed/late payments may be more common.
“This is a minor point, but we ran our survey between June 3-4, while NMHC’s data runs through June 6. That gives their sample an extra two days to make payments, potentially bumping up their rate. Although I can’t say for sure how much of a difference two days make for people struggling to afford their payments in the first place,” Warnock said.
JRK, a Nevada corporation headquartered in Los Angeles, will pay almost $300,000 directly to tenants in the form of refunds, payments and rent forgiveness.
Ferguson filed suit in April, charging JRK violated Gov. Jay Inslee’s Emergency “Evictions” Proclamation. Inslee’s proclamation establishes a temporary moratorium on evictions for the inability to pay rent. The proclamation specifically prohibits landlords from issuing notices to pay or vacate during the effective period.
Ferguson said in the complaint that JRK Residential violated the proclamation by issuing Notices to Pay or Vacate in April to at least 14 tenants of The Boulders at Puget Sound, a multi-building Tacoma apartment complex containing more than 700 units. The lawsuit also asserted that JRK sent unfair, deceptive and harassing communications to approximately 1,400 Washington state tenants.
The Boulders at Puget Sound tenants discovered the notices to pay or vacate at their front doors. The notice instructed tenants to pay all rent due within 14 days or be “subject to eviction as provided by law.” The notice stated that it was “unconditional,” and threated tenants that if they failed to “surrender the premises,” they would “be guilty of unlawful detainer and subject to eviction.”
In addition, beginning on April 1, JRK sent multiple emails to tenants reminding them that rent was due, and stating that they would “not waive any late fees.” This notice and later notices pressuring tenants to pay April 2020 rent did not mention the governor’s proclamation prohibiting evictions for non-payment of rent.
JRK Residential is a Nevada-based for-profit real-estate investment firm and property-management company that operates at least four apartment complexes in Pierce, Snohomish, and Kitsap counties. JRK Residential manages property in 20 states with an investment portfolio of $6 billion.
JRK said in a statement it had taken steps after the pandemic began to “ease the resulting burdens” on its tenants but recognized that more could have been done.
“To that end, we have worked with the state to further improve our policies and procedures and to offer our residents financial compensation to ease their burden during this time,” the statement said.
JRK Residential unfairly and deceptively pressured residents to pay outstanding rent by sending numerous threatening emails and notices, sometimes multiple times per day, and making harassing phone calls to tenants or tenants’ workplaces, according to the release.
Ferguson’s lawsuit was the first state lawsuit filed to enforce Inslee’s emergency proclamations.
“JRK Residential is a large, sophisticated corporation that knew about the governor’s emergency evictions proclamation and ignored it anyway,” Ferguson said in the release. “Their conduct is cruel and unlawful – and we will hold them accountable.”
Washington Attorney General Bob Ferguson
As part of the consent decree, filed in Pierce County Superior Court, JRK will be required to:
Forgive April 2020 rent, or offer refunds to those who paid, for 14 tenants at The Boulders at Puget Sound complex who received 14-day Notices to Pay or Vacate in violation of the governor’s proclamation;
Once the consent decree is approved by the court, JRK will also be required to pay $246,900 to 1,441 tenants who received unfair, deceptive or harassing communications from JRK;
Waive or refund fees for tenants who need or choose to move out before their lease is up while the governor’s proclamation is in effect.
JRK Residential will pay approximately $344,646 to resolve the lawsuit, with almost $300,000 going directly to tenants in the form of refunds, rent forgiveness, or direct payments, including:
Full rent forgiveness or refunds of April 2020 rent for the 14 tenants of Boulders at Puget Sound who received 14-day Notices to Pay or Vacate — a total of $26,877.69;
$500 payments to 257 JRK tenants who were behind on April rent at the time that JRK sent letters that attempted to shame or harass tenants who had been unable to pay full April rent — a total of $128,500; and
$100 payments to 1,184 JRK tenants who received the unfair and deceptive letters but were not behind on April rent — a total of $118,400.
“During this time of hardship and uncertainty, the moratorium on evictions is intended to help families and individuals keep a roof over their heads,” Inslee said in the release. “Any property owners who attempt to remove people from their homes and skirt this order are breaking the law. I thank AG Ferguson and his team for enforcing the eviction moratorium.”
The attorney general’s active enforcement of the eviction moratorium
Ferguson’s civil-rights division began receiving complaints from tenants shortly after Inslee issued his evictions proclamation. The attorney general’s office launched an eviction-complaint form on April 1. Since then, more than 650 Washingtonians have filed complaints. The attorney general’s office has contacted 469 tenants and 284 landlords in response to complaints.
More than a dozen assistant attorneys general from other divisions in the office are volunteering their time to assist the Civil Rights Division in responding to these eviction moratorium complaints.
National rents continued their downward trend in May, reaching their lowest year-over-year level since February 2011, according to the latest report from Yardi Matrix.
During what would typically be prime leasing season, rents decreased by 0.3 percent on a month-over-month basis.
Nationwide, rents have declined by $13 over the past two months, the company reported.
Fall could become the rental season
“This rapid decline will likely continue through the summer as the nation continues to practice social distancing. As some unemployed (people) slowly return to work in the coming months, the fall could become this year’s rental season,” Yardi Matrix said in the report.
Rent collections nationally in May were still reasonably strong with 93 percent of households “paying some rent,” according to the National Multifamily Housing Council.
“With the extra $600 per week in unemployment benefits set to run out at the end of July, it remains to be seen how renters will fare if the extra assistance is not extended. A decline in collections seems imminent, but as of right now, renters are prioritizing their rent payments.”
“If rents continue this rapid downward trend, we could be looking at alarming numbers by the end of the summer,” the report said.
“The reason numbers could get worse is that the CARES Act currently provides an additional $600 a week in unemployment benefits on top of the standard state payment, but this is set to expire at the end of July unless another stimulus bill is passed.
“The HEROES Act was passed by the House of Representatives on May 15 and proposes to extend the extra unemployment benefits through January 2021, among other provisions. The $3 trillion HEROES Act will likely face significant opposition in the Senate. The extra $600 a week is a necessity for many Americans to pay their bills, most notably rent, and if it does run out, we could see rent collections decline rapidly,” the report says.
Month-over-month, the markets with the most severe declines include:
Houston -0.9 percent
San Jose -0.9 percent
Seattle -0.8 percent
Nashville -0.8 percent
Seattle, San Jose and Orange County were among the first markets to impose stringent lockdowns. Seattle only planned to enter Phase 1 of reopening on June 5.
