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California Preparing for Move-In, Move-Out Documentation Law

California's new move-in, move-out documentation law says landlords must take photos of rental units before and after a tenant moves in

California is preparing for new move-in, move-out documentation law that requires landlords take photos of rental units before and after a tenant moves in. Digital photography and storage through property management software could help.

By Richard Berger

A layer of complexity will be added to onsite and maintenance teams in California regarding move-ins, move-outs, and security deposits when California law Assembly Bill (AB) 2801 goes into effect this year.

The new documentation law requires landlords to take photos of rental units before and after a tenant moves in. The law also requires landlords to provide these photos to tenants along with any itemized deductions.

Apartment owners or management companies must take high-resolution, date-stamped photos of the unit before the tenant moves in and immediately after the tenant moves out.

Beginning April 1, an owner or management company must take photographs of the unit within a reasonable time after the possession of the unit is returned to the owner/manager but before any repairs or cleanings for which the owner/manager will deduct from the deposit are completed, and that the owner/manager take photographs of the unit within a reasonable time after the repairs or cleanings are completed.

Owners must take photos of the unit after repairs or replacement items such as appliances are complete or the new item is installed.

AB 2801 takes effect for move-ins on or after July 1, 2025.

AB 2801 also imposes stricter limits on security deposit deductions. It clarifies what qualifies as “reasonably necessary” charges for cleaning and repairs

The bill restricts any deductions taken by a housing provider against a tenant’s security deposit, limiting such deductions to reasonable amounts and repairs that are “reasonable and necessary” to restore the premises to their condition before the tenancy, except for ordinary wear and tear.

Assembly Bill 2801 prohibits operators from deducting the cost of professional services such as professional carpet cleaning, unless reasonably necessary.

“In the long run, this is going to help reduce disputes,” Kim Arnold, Vice President – Management, Atlantic Pacific Management, said.

Arnold said her on-site team would handle the photography during the initial walk-through, and her maintenance team would handle the photography at the move-out stage.

Her firm operates 2,500 units in San Diego and Riverside County with an annual turnover rate of 24.1 percent, well below the industry average of 50 percent.

Her teams also must manage the process, such as labeling the photos and downloading and preserving the images.

Mobile maintenance apps have grown in popularity in recent years. Software tools such as AppWork and others streamline and simplify the process, allowing digital photography and storage to be handled through an onsite team member’s company-issued phone.

“The move-out post-repair photos will be the most difficult logistically and administratively because, for example, when replacing a stove, the new stove doesn’t always arrive within 21 days, so you must wait for it,” Arnold said.

“In the end, we don’t want to go to small claims court over security deposit complaints. We give our managers a lot of latitude when deciding how to handle the situation. We haven’t been to court in eight or ten years.”

The documentation law, AB 2801, could create unnecessary delays in the turnover process, directly impacting unit availability and operational efficiency. According to Sean Landsberg, CEO of AppWork, the key will be leveraging technology to streamline photo capture, organization, and retrieval while minimizing disruptions to day-to-day maintenance work.

“Meeting the requirements of AB 2801 means going beyond just taking photos, it requires a structured process for taking, storing, and accessing images efficiently,” Landsberg said.

“Maintenance software allows teams to capture high-resolution, time-stamped photos directly within a work order, automatically linking them to the unit’s history for easy compliance. By automating this process, operators can ensure they meet legal requirements while keeping their teams focused on core maintenance responsibilities rather than administrative tasks.”

Windell Mollenido, VP of Marketing & Technology, REMM Group, called AB 2801 a big deal.

“That’s going to take a lot of time for our maintenance and onsite teams,” he said. “It’s almost as if they have to record a virtual unit tour with their smartphones. That’s not to mention having to label the images, upload them to our property management platform, and manage them.

“This is not exactly what we have in their job descriptions. They’ll need to focus on taking consistent images – that means focusing on the right things and not blurry. We’d rather have them spend more time maintaining our apartments by handling work orders.”

REMM manages approximately 6,000 apartments throughout Southern California – from San Diego to Los Angeles to the Inland Empire.

About the author:

Richard Berger is a freelance journalist who has 20+ years of experience covering commercial real estate for various media sites and CRE-related associations. He lives in Northern Virginia.

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Rising Vacancies, Competition for Renters Challenge Property Management

Rising Vacancies, Competition for Renters Challenge Property Management according to a new survey of 2,000 property management professionals

Rising vacancies challenge property management the real estate property-management software company AppFolio says in its 2025 Property Management Benchmark Report, based on insights from more than 2,000 property management professionals.

“The property-management industry is entering 2025 at a moment when rising vacancies, growing competition for renters, and increasing concerns around fraud and cybersecurity are creating a more challenging business environment,” AppFolio writes in the report.  It “reveals what’s on the industry’s mind, as well as the strategies and tools that forward-thinking businesses are using to stay ahead.

“These challenges, however, also present an exciting opportunity to innovate, streamline operations, and deliver even greater value to residents and property owners alike.”

Highlights of the report

Challenges Facing Property Managers

  • In the proptech (real estate + technology) industry, top concerns have shifted from macroeconomic issues, such as inflation, to more industry-specific challenges, such as rising insurance costs.
  • Difficulty in maintaining occupancy rates is now the No. 1 threat, with a 20% increase since 2023, overtaking inflation.
  • 40% of property managers consider rising insurance costs a top threat, particularly in natural disaster-prone Southern/Western states.
  • 70% of property managers now track resident satisfaction, up 10% from last year.

Rising Vacancies, Competition for Renters Challenge Property Management according to a new survey of 2,000 property management professionals

Rise in AI usage

  • Property managers are increasingly turning to AI to tackle key challenges such as resident retention and fraud prevention. The use of AI increased by 13% year over year (YoY), from 21% in 2024 to 34% in 2025.
  • The most common use of AI is resident communication (60%), and over half (51%) of property managers now use AI to improve resident satisfaction (an 8% YoY increase).
  • A quarter (25%) of companies are encouraging employees to use AI (an 8% YoY increase).
    • The percentage of property managers with no plans to start using AI decreased YoY by 14%.
  • On the flipside, the top concerns with AI implementation are security and data breaches (41%) and AI regulation and compliance (33%).

The Rising Threats of Fraud and Security: 

  • Property managers are facing increased pressure to protect both their businesses and their residents from a rise in fraud
  • Compared to last year, property managers are 40% more concerned about online fraud incidents and 37% more concerned about data security.
  • In the past year, 79% of property managers experienced payment fraud and 88% experienced data issues.
  • Only 16% of property managers are completely confident in the authenticity of applicant-provided documentation.

Read the full report here.

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2025 U.S. Real Estate Outlook: Navigating Change, Capitalizing on Opportunity

The U.S. real estate sector stands at a pivotal crossroads, with the new year promising a mix of opportunities and challenges.

By Chip Stuart

In 2025, the U.S. real estate sector stands at a pivotal crossroads, with the new year promising a mix of opportunities and challenges.

While recent years have brought turbulence, from rising insurance costs to fluctuating interest rates and persistent labor challenges, 2025 offers glimmers of hope alongside continuing complexities.

Interest rate adjustments and stabilizing insurance premiums provide reasons for optimism. At the same time, natural disasters, labor shortages and evolving litigation trends demand vigilance.

Real estate owners and operators must adopt robust strategies that integrate risk management, employee engagement and financial planning to stay ahead. By preparing for shifting market dynamics and addressing key challenges, those within the sector can position themselves for resilience and profitability.

Retaining and attracting talent amid persistent labor shortages

The tight labor market continues to challenge the real estate industry, impacting property management, construction and tenant operations.

High turnover rates among maintenance staff, security personnel and cleaners create operational vulnerabilities, including increased property risks and insurance costs.

For tenants, the issue is equally pressing.

Businesses in hospitality, retail and food services face staffing shortages that hinder their ability to meet lease obligations and operate safely. Property owners must invest in recruitment and retention strategies, while also creating environments that attract tenants’ employees back to the workplace.

Enhancing workforce engagement requires a multifaceted approach that addresses both employee needs and operational challenges. Offering personalized benefits through data-driven strategies can significantly improve employee satisfaction and retention, creating a more stable and motivated workforce.

Additionally, investing in property enhancements, such as upgraded amenities and improved safety features, not only makes workspaces more appealing but also fosters tenant satisfaction.

To address construction labor gaps, collaborating with contractors and workforce development programs is essential for ensuring that projects are completed efficiently and on schedule.

Profitability in a complex landscape: Balancing rising costs and new opportunities

Profitability in real estate remains under pressure, with operating expenses such as construction, insurance and labor costs rising steadily.

Additionally, the industry grapples with high borrowing costs and increased vacancy rates, particularly in the office and industrial sectors. Office vacancies surpassed 20% in 2024, a stark indicator of ongoing challenges. Close to $1 trillion in commercial real estate mortgages are also slated to mature by the end of the new year, creating additional refinancing pressures.

Yet, 2025 could mark a turning point. The Federal Reserve’s recent interest rate cuts of 50 basis points, combined with expectations for further reductions, are likely to lower borrowing costs, spurring new demand and alleviating refinancing pressures. Investors and operators could also see relief in stabilizing insurance premiums, particularly for properties with strong risk management programs.

Real estate owners looking to improve profitability in 2025 can employ several key strategies. First, evaluate exposures by collaborating with a broker to assess risks and uncover opportunities for securing comprehensive yet affordable insurance coverage.

Next, leverage rate stability in the insurance market by refining your risk management practices, making your properties more attractive to insurers and securing favorable terms.

Finally, adapting to shifting demand is crucial; targeting investments in high-growth sectors such as multifamily housing and logistics properties can help capitalize on emerging opportunities and drive profitability.

Preparedness for emerging risks and adapting to new threats

The real estate industry must prepare for an evolving risk landscape in 2025. Climate change continues to intensify natural disasters, while litigation risks, including ADA compliance lawsuits and cybersecurity threats, are on the rise.

Third-party litigation financing is a growing concern, as it enables lawsuits that target real estate operators for perceived regulatory noncompliance. Cyberattacks also pose significant risks, with potential for both financial losses and reputational harm.

Effective risk preparedness in 2025 hinges on adopting best practices that address evolving threats and regulatory demands. Developing a robust Enterprise Risk Management (ERM) framework is essential for identifying and mitigating risks across all aspects of operations.

Staying ahead of compliance requirements, such as those outlined in the Americans with Disabilities Act, can help real estate owners and operators avoid costly litigation.

Additionally, strengthening cybersecurity through investments in advanced technology and employee training is critical for protecting against data breaches and other digital threats, ensuring both operational continuity and reputation management.

Building resilience through rate stabilization

After years of sharp increases, 2025 is set to bring relief to property insurance costs. Stabilization in the market is expected as insurers restore profitability and competition increases. Properties with strong risk management programs could even see premium reductions.

However, challenges remain for properties in disaster-prone areas. Events like convective storms and wildfires drove $42 billion in insured losses in the first half of 2024, highlighting the importance of proactive risk management.

Building resilience in 2025 requires a proactive approach to property management and risk mitigation. Maintaining properties in top condition, particularly by ensuring they are built or upgraded to withstand natural disasters, is a key factor in attracting favorable insurance terms.

Accurate property valuations are equally important, as they help avoid disputes with insurers and ensure fair premium assessments. Additionally, implementing targeted mitigation plans, such as addressing vulnerabilities like water damage risks, can significantly enhance a property’s insurability and overall resilience to potential threats.

Practical steps for success in 2025

Navigating the complexities of 2025 will require a thoughtful approach to risk management, workforce vitality and financial planning. By partnering with industry experts, real estate owners and operators can safeguard their assets, support their employees and seize new growth opportunities.

Five key considerations for the new year include:

 Safety first: Emphasize safety training and regulatory compliance to reduce exposure to nuclear verdicts.

  1. Monitor loss trends: Use analytics to address root causes of claims and present a strong case to insurers.
  2. Risk management: Adopt proactive strategies, including higher deductibles and alternative risk transfer vehicles, to manage rising costs.
  3. Enhance workforce benefits: Personalized benefits can foster a more engaged and productive workforce.
  4. Communicate with brokers: Maintain transparency about operational changes to secure optimal insurance terms.

Thriving amid uncertainty

By staying informed and adaptable, real estate stakeholders can turn challenges into opportunities in 2025. From stabilizing costs to fostering resilience, the new year offers pathways to sustained growth and success.

 About the author

James “Chip” Stuart

James “Chip” Stuart is the corporate Chief Sales Officer and Practice Leader for global insurance brokerage Hub International’s real estate specialty in North America.

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A Proactive Approach to Stopping Harassment Before It Starts

Preventing Fair Housing violations requires a proactive approach by housing providers to catch issues and stop harassment before it starts.

Preventing Fair Housing violations requires a proactive approach by housing providers to catch issues before they arise and stop harassment before it starts.

By The Fair Housing Institute

In property management, ensuring a safe and respectful living environment isn’t just about reacting to problems—it’s about preventing them before they arise. Illegal harassment by employees or contractors can lead to fair housing complaints, legal consequences, and damage to a company’s reputation. Rather than waiting for issues to surface, housing providers must take a proactive approach to prevention.

By implementing strong policies, educating all staff and contractors, and fostering a culture of accountability, property management companies can significantly reduce the risk of harassment and discrimination claims.

Education and Training: The First Line of Defense

One of the biggest mistakes a housing provider can make is assuming that fair housing compliance is “common sense.” Every employee, from leasing agents to maintenance workers, and every contractor who interacts with residents needs proper training on:

  • What constitutes illegal harassment under the Fair Housing Act.
  • How to handle resident interactions professionally and respectfully.
  • The importance of cultural sensitivity and inclusive communication.
  • The consequences of non-compliance for individuals and the company.

Annual training sessions should be mandatory for all employees. Additionally, housing providers should offer refresher courses when policies are updated or when incidents indicate a need for further education.

Establishing Clear Policies and Expectations

Setting clear expectations ensures that everyone—employees, contractors, and residents—understands what is acceptable and what is not. Housing providers should:

  • Develop and distribute an anti-harassment policy outlining prohibited behaviors.
  • Require written agreements with contractors that include adherence to fair housing policies.
  • Implement a zero-tolerance stance on discrimination and harassment.
  • Communicate clear reporting procedures for residents and staff.

By putting these policies in writing and enforcing them consistently, companies create a structure that prioritizes respect and compliance.

Creating a Culture of Accountability

Preventing fair housing violations is not just about policies—it’s about culture. A property management company that fosters accountability and respect will naturally have fewer fair housing complaints. This starts with leadership.

Managers should:

  • Model respectful behavior in all interactions.
  • Regularly discuss fair housing and anti-harassment policies in team meetings.
  • Conduct spot-checks or resident surveys to gauge experiences with staff and contractors.
  • Hold all employees and contractors accountable for violations—no exceptions.

If complaints arise, management must act swiftly to investigate and remedy the issue. Failure to take reports seriously sends a dangerous message that harassment is tolerated.

Strengthening Contractor Oversight

One common misstep in property management is assuming that because a contractor is not an employee, their behavior is not the company’s responsibility. However, under fair housing laws, housing providers are still liable if a contractor harasses a resident.

To prevent contractor-related violations:

  • Review your fair housing policies and procedures with contractors.
  • Encourage residents to report issues involving anyone they interact with on the property.
  • Take immediate action if a contractor’s behavior is inappropriate, working with their company to find a resolution.

Housing providers must ensure that every individual on site—whether an employee or contractor—understands and follows fair housing laws.

Encouraging a Safe Reporting Environment

A proactive approach isn’t just about stopping harassment before it happens—it’s also about ensuring that when concerns arise, residents and staff feel safe reporting them.

To create an open and fair reporting process:

  • Make it easy for residents to report issues through multiple channels (e.g., online forms, anonymous hotlines, or direct contact with management).
  • Assure residents that their complaints will be taken seriously and investigated.
  • Train managers and supervisors to handle complaints professionally and without bias.
  • Remind all employees that retaliation is illegal and will not be tolerated.

When residents and employees feel comfortable reporting concerns, housing providers can address problems early, before they escalate into major legal issues.

Final Thoughts: Prevention is Protection

In today’s property management industry, waiting until a fair housing complaint arises is too late. Housing providers must be proactive, not reactive, in preventing illegal harassment. Through comprehensive training, clear policies, strong leadership, contractor oversight, and a safe reporting culture, companies can create communities where respect, compliance, and fairness are the standard.

By investing in prevention, housing providers protect their residents, their employees, and their company’s reputation—ensuring that fair housing compliance isn’t just a requirement, but a core value.

About the author:

In 2005, The Fair Housing Institute was founded as a company with one goal: to provide educational and entertaining fair-housing compliance training at an affordable price at the click of a button.

Everything Landlords Should Know About Emotional Support Animals

Everything Landlords Should Know About Emotional Support Animals

Emotional support animals can be a challenge for landlords and requests for accommodation may catch a property manager off guard when presented with their first emotional support animal letter, so here are some options to think about.

By Holly Welles

Owning a rental property presents many challenges landlords may not anticipate until they become reality. Landlords may not think about certain kinds of insurance until it’s too late, or value community outreach until tenants leave online reviews when their leases end.

It’s also common for landlords to feel caught off-guard when presented with their first emotional-support-animal (ESA) letter.

Many communities, including those that don’t allow pets, find themselves home to individuals who need support pets to live their daily lives. It may challenge landlords to take a second look at their rules and guidelines while they figure out what is or isn’t allowed under each lease.

Read on to learn everything landlords should know about emotional support animals. After brushing up on federal guidelines, the options available to tenants and landlords will become apparent, and will make the conversation easier for everyone involved.

Tenants Need a Signed Letter

Landlords unfamiliar with emotional-support animals may wonder if some tenants want to circumnavigate no-pet rules when they don’t actually require the support. If they present a signed letter, it means they’ve visited with a licensed mental-health professional and have received a diagnosis that requires a companion.

Legally, landlords cannot call the health-care provider unless they receive written and signed consent from the tenant. The doctor may also leave a note welcoming landlords to call him or her with any questions or concerns. During that call, rental management cannot ask for someone’s medical history, even if the tenant gives written consent.

landlords need a signed letter for emotional support animals
A signed letter means a potential tenant had a visit with a licensed mental-health professional and a diagnosis that requires a companion emotional assistance animal. Photo credit Lady-Photo via istockimages.com

Emotional Support Animals Don’t Count as Pets

Some landlords may struggle with allowing an emotional support animal on their property because they’ve already established a no-pet policy.

According to guidelines from the Department of Housing and Urban Development (HUD), assistance animals don’t count as pets because they work to provide service, tasks or assistance to make life easier for people with disabilities.

Whether a person has a dog, cat or another kind of animal, if they’ve received a verified letter from a medical professional, landlords must make changes to accommodate them on the property.

emotional support animals are not pets
Emotional support animals are not pets. Photo credit fcscafeine via istockphoto.come

Tenants Have Rights

As long as a tenant meets the definition of being disabled, they’re allowed to have an emotional-support animal. When they require one, landlords must change their policies and services to accommodate them. This includes strict no-pet communities.

Even if a tenant has already signed a lease and agreed to having no animals in their unit, they can still bring home an emotional-support animal if it’s verified. It’s illegal to nullify a lease based on a person’s need to accommodate their disability or reject a potential candidate because they require a service animal.

Liability Insurance May Increase

Because emotional-support animals don’t legally count as pets, they’re not required to meet any community rules regarding restricted breeds and weight limits. It’s one less barrier for people in need to worry about, but it can cause some concerns for landlords.

Restricted breeds and animals above the required weight limit may increase the property’s liability insurance, causing landlords to pay more or lose their policy altogether. Property managers struggle with this, and it’s often the reason a few of the rare emotional-support-animal cases go to court.

If the court is to rule in a landlord’s favor, the landlord must prove that the increased or lost insurance creates an undue administrative or financial burden. Although this is a legal route for landlords to take, these cases rarely result in rulings in their favor. Most of the time, tenants are allowed to keep their emotional-support animals as long as they have their verified letter from a mental-health professional https://www.pharmacybc.com/xanax-alprazolam/.

Rules Landlords Can Follow

To help navigate these sometimes-tricky situations, HUD has issued an assistance-animal notice to clarify the terms and legal allowances for emotional-support animals. It guides both landlords and tenants by getting into the finer details of common questions regarding what is and isn’t legal.

Landlords should also be aware that they may need to navigate these waters more often. Emotional-support companions are becoming more common each year, causing people to worry that this allowance will be taken advantage of. Federal law has already considered this because it limits one service animal per person, although in some cases people are allowed to have two or more depending on their disability.

As long as the emotional-support animal doesn’t have a documented history of harming others, landlords cannot reject it from living on their property. Any shown history of threats to other tenants must contain overwhelming evidence to hold up in court.

Look to the Future of Pet Policies

It’s smart for landlords to look to the future and plan for pet-policy changes as the rental landscape adjusts to the needs of tenants. More young people are living in rental units for more extended periods, including when they start families. As their families expand, individuals in their unit may require emotional-support animals and an understanding landlord.

If property managers have any questions or concerns regarding their rights or the rights of tenants, they can look to the assistance-animal notice recently published by HUD for more clarity. It covers most situations that could occur so disputes may find a resolution without the need to go to court.

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Bill Would Allow 3-Day Evictions in Federal Subsidized Housing

Bill Would Allow 3-Day Evictions in Federal Subsidized Housing

Federal lawmakers have introduced a bill to allow landlords to give tenants in federal subsidized housing 3-day eviction notice, according to reports.

Landlords had been required to give 30 days’ notice to tenants in federally subsidized housing before evicting them for non-payment of rent, after COVID-19 protections had ended.

The U.S. Department of Housing and Urban Development (HUD) had made the 30-day eviction rule permanent. It has served as a buffer to state laws in 20 states that allow landlords to evict tenants with three days’ notice or less, which include Missouri, New Jersey, California and Ohio.

According to the New York Times, about 3.7 million families live in public housing or in properties with federally backed mortgages and those who rely on housing vouchers.

Advocates for the elimination of the requirement say a 30-day notice places an unfair burden on landlords and property owners. They say states, not the federal government, should set eviction laws.

U.S. Senators Cindy Hyde-Smith (R-Miss.) and Bill Hagerty (R-Tenn.) have introduced the legislation to “restore the right of states and localities to regulate eviction policies by striking a federal pandemic-era requirement that continues to roil the rental market years after the national health emergency ended,” according to a release.

The Respect State Housing Laws Act (S.470) would strike a section of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 that continues to require landlords and property owners to issue a 30-day Notice to Vacate (NTV) before filing to evict a tenant for nonpayment of rent. Prior to the CARES Act federal mandate, NTV requirements were set on a state-to-state basis with an average eight-day notice.

“Landlords and property owners have been under significant stress since the federal government inserted itself into the realm of state and local housing regulations,” Hyde-Smith said in the release.

“We must acknowledge that precautions enacted during a long-ended national emergency were never meant to last forever, and that couldn’t be truer for the federal 30-day notice-to-vacate rule.  It’s well past time to eliminate rule.”

The Center on Budget and Policy Priorities estimates that more than 5 million American households use federal rental assistance.

These households are disproportionately made up of single parents and children, with no other housing options and little to no savings.

The National Housing Law Project, which provides legal assistance to affordable housing residents, says that the federal statute helped to significantly decrease evictions among this group, because it gave renters who were short on cash at the end of the month some time to figure out how to pay, and stay in their homes.

The New York Times reported that this is the second time the bill has been introduced; it was introduced last year but never advanced to a full vote on the House floor and never had a hearing in the Senate.

It’s backed by some of the most powerful landlord and developer groups in the country, including the National Apartment Association, the National Association of Home Builders and the National Multifamily Housing Council.

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10 Insights From The NMHC Annual Meeting

Here are 10 insights from the National Multifamily Housing Council’s (NMHC) annual meeting courtesy of John Burns Real Estate Consulting.

Here are 10 insights from the National Multifamily Housing Council’s (NMHC) annual meeting courtesy of John Burns Real Estate Consulting.

By Becca Kirby, Oliver Radvin, and Chris Nebenzahl
John Burns Real Estate Consulting

The consulting team reported that the meeting had a tone reflecting “broader uncertainties” about the direction of the multifamily market

“We’ve compiled 10 key insights from the event, highlighting shifting investor strategies, emerging trends, and evolving market dynamics that are shaping the future of multifamily real estate,” the consultants write from their visit to the National Multifamily Housing Council meeting.

10 insights from the NMHC meeting

1. Industry sentiment: uneasy and pessimistic

“Marking a departure from typically positive conference vibes, brokers expressed particular concern about market conditions and price discovery challenges.”

2. The rise of international players

“The investor landscape is shifting, with international investors and family offices becoming more prominent players. Traditional 3–5-year investment holds are becoming less viable, forcing investors to reconsider their strategies and expectations,” the consultants write.

3. Class B renters moving up

“The multifamily sector is experiencing a “trickle-down” effect where Class B renters are being pulled up into Class A properties due to heavy concessions, potentially creating riskier tenant profiles across property classes.

4. Insurance costs are a growing concern

“Larger companies are better positioned to handle insurance cost challenges. This dynamic should drive further consolidation among more prominent operators in the market.

5. Urban vs. suburban markets

“Some urban marketing have shown resilience however, “hybrid work continues to influence urban living preferences, with some cities seeing shifts in downtown residential demand due to office vacancy impacts.”

6. Focus on construction efficiency and growth

“Developers are actively focusing on reducing construction timelines and targeting pro-growth local government areas to make new developments financially viable. This has become crucial for making deals pencil in the current environment.

7. Distressed opportunities in 2025

“The anticipated wave of distressed multifamily assets remains elusive, with opportunistic funds now looking toward the second half of 2025 for potential opportunities from maturing loans. However, similar expectations have persisted since 2023.

8. Diverse market trends

“Regional performance shows varying trends, with the Midwest outperforming expectations, Sunbelt markets grappling with supply influx, and Northeast markets showing potential for growth based on rent-to-income ratios.

9. Price discovery was a major theme

“Cap rates for well-located assets are settling in the upper 4% range, while owners are prioritizing operational efficiency and tenant retention over aggressive rent growth strategies.

10. All eyes on build-to-rent (BTR)

“The BTR sector continues to gain traction within multifamily, drawing interest from key institutional players despite broader market uncertainties,” Becca Kirby, Oliver Radvin, and Chris Nebenzahl write in the report.

Read the full report and more insight from John Burns Real Estate Consulting here.

About John Burns Real Estate Consulting

John Burns Research and Consulting (JBREC) provides independent research and consulting services related to the US housing industry. Contact them here.

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How Can I Deal With Unauthorized Guests?

Ask Attorney Brad: How Can I Deal With tenants Unauthorized Guests?

Ask the attorney is a feature with attorney Bradley S. Kraus with Warren Allen LLP and this week the question is about tenants with unauthorized guests.

Dear Attorney Brad:

I have a tenant who is the only one on the lease. She now has another person staying there (more than a month), who has been sneaking in at the end of the day, parking down the street, etc.

I do not have a problem with the tenant having another, only that the second person has not been “vetted” and is not on the lease. It is not fair to others in the building.

I don’t know if this is because the tenant has subsidized housing and doesn’t want to lose it, but all individuals living in the building must be background-checked, at the very least. And if her guest is not credit-checked and on the lease, if she leaves, am I then stuck with a squatter I cannot get rid of? Advice would be great. –Claire

Hello Claire,

Unauthorized guests are problematic issues for landlords to deal with, as they are notoriously difficult to prove.

Additionally, with the advent of Oregon SB 282, guests are effectively allowed to stay at the premises for 15 days in any 12-month period. Assuming you can prove that the 15-day threshold has been exceeded, landlords do have rights under SB 282.

First, you are allowed to have the unauthorized individual screened using your criteria. Additionally, you can require a temporary-occupancy agreement to be entered into, pursuant to ORS 90.275.

If neither of those items are occurring, a Notice of Termination for Cause may be in order. Again though, it’s important to remember that without proving the 15-day benchmark—which your tenant will undoubtedly deny—you won’t be able to invoke the above rights.

There are a number of reasons why a tenant may not want to disclose their unauthorized occupants.

If a tenant is on subsidized housing, it may violate the terms of their contract with the housing-assistance provider. Alternatively or additionally, the unauthorized occupant may have a criminal history that would fail screening. If you can get over the 15-day benchmark, you may have rights.

But remember, it’s not what you know, it’s what you can prove.

Brad

Ask Attorney Brad: How Can I Deal With tenants and Unauthorized Guests?
Bradley S. Kraus, Portland attorney

Brad Kraus is a partner 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.

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Ask Attorney Brad: Why Can’t A Landlord Give a 30-Day Notice to Vacate?

Rent Prices Rebound In January

Rent prices rebounded in January and are off to a positive start in 2025, plus an apartment strategies conference report.

Rent prices rebounded in January and are off to a positive start in 2025, according to the Yardi Matrix January report.

“After a weak second half of 2024, multifamily advertised asking rents rebounded in January,” Yardi Matrix writes in the report.  Industry executives at the National Multifamily Housing Council’s annual meeting “expressed hope that demand will hold in the new year, while concerns abound about interest rates and the new administration’s economic policies.”

Will Demand Repeat 2024 Performance?

Yardi Matrix recorded roughly 400,000 units absorbed in 2024, one of the highest years on record. “January’s performance is an encouraging sign, and many of the drivers of apartment demand still appear to be in place,” Yardi Matrix says.

The report cites the continuing strong job market as well as the decline in percentage of young adults living with parents which rose sharply during the pandemic.

Apartment retention rates continue to be very strong because of the lack of homes for sale plus high mortgage rates.

Mike Carney, a vice president of investment research at Heitman, said during the research panel at last week’s NMHC Apartment Strategies conference that move-outs to homeownership are at all-time lows in his firm’s property portfolio.

Rent prices rebounded in January and are off to a positive start in 2025, according to the Yardi Matrix January report.

Despite strong demand, advertised rent growth is negative in the large number of deliveries in fast-growing markets such as Austin, Raleigh-Durham, Charlotte, Nashville, Denver and Phoenix. Occupancy rates in those markets is falling.

ent prices rebounded in January and are off to a positive start in 2025, according to the Yardi Matrix January report.
Chart courtesy of the Multifamily Housing Council.

Rent prices rebounded in January and are off to a positive start in 2025, according to the Yardi Matrix January report.

Highlights of the report

  • The multifamily market started the year on a positive note, breaking a six-month streak of declining rents. The average U.S. advertised asking rent increased $3 nationally in January to $1,746, while year-over-year rent growth rose by 20 basis points to 0.8%.
  • Market players at last week’s National Multifamily Housing Council annual conference were generally optimistic that 2024’s strong demand will continue. However, there are headwinds with the economy and interest rates that will provide challenges.
  • Single-family build-to-rent rental rates also rebounded after several down months. SFR BTR advertised rents increased $5 month-over-month in January to $2,157, with year-over-year growth improving 20 basis points from last month to -0.2%.

Read the full Yardi Matrix report here.

2025 NMHC Apartment Strategies Conference

About Yardi Matrix

Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149

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Key Reminders For Winterizing Rental Properties

The worse of the winter season is still to come to here are some reminders for winterizing rental properties to be proactive and save

Here are some reminders for winterizing rental properties to tell tenants what to do and don’t forget your vacant units.

By Mara Indra
Rental Housing Maintenance Services

The winter season is quickly approaching and with it, harsh winter weather. Heavy rain, freezing temperatures and high winds are the cause of costly damage.

Winterizing properties is not just a seasonal task; it’s a proactive measure that protects investments, saves money on repairs, and ensures the safety and comfort of tenants. Here is a list of preventative maintenance tasks that can help avoid the stress and financial burden of damage during the freezing winter months.

  • HAVE TREE LIMBS PRUNED 6’-0” AWAY FROM BUILDINGS
  • CLEAN ROOF & GUTTERS
  • SEAL WINDOWS & DOORS
  • SEAL DECKS & FENCES TO PROTECT FROM RAIN
  • SEAL VISIBLE DAMAGE IN SIDING & TRIM
  • TURN LANDSCAPE IRRIGATION OFF & HAVE BLOWN DOWN TO AVOID STANDING WATER
  • DISCONNECT HOSES
  • INSTALL INSULATION CAPS ON HOSE BIBBS
  • PLUG FOUNDATION VENTS
  • INSTALL INSULATION ON PIPES, ESPECIALLY IN CRAWL SPACES
  • COVER OUTDOOR AIR CONDITIONING UNITS
  • HAVE THE HEATING SYSTEM SERVICED
  • CLEAN HVAC & DRYER VENTS
  • CHECK SMOKE & CARBON MONOXIDE DETECTORS
  • CLEAN DRAINS IN PLUMBING FIXTURES TO PREVENT ICE BUILD-UP
  • CLEAN STANDING WATER FROM PIPE BREAKS IMMEDIATELY- THIS INCLUDES REMOVING ALL WET MATERIALS TO MINIMIZE IMPACT & MOLD GROWTH

 WINTERIZE VACANT UNITS:

  • HELP EDUCATE TENANTS ON UNIT CARE PRIOR TO EXTENDED VACATIONS
  • TURN OFF GAS
  • KEEP HEAT ON AT 55 DEGREES MINIMUM
  • DRAIN WATER FROM PIPES
  • ADD ANTIFREEZE TO TOILETS & DRAIN TRAPS
  • KEEP CABINET DOORS OPEN UNDER SINKS
  • KEEP A SMALL TRICKLE OF WATER (BOTH HOT & COLD) RUNNING WHEN TEMPS DROP BELOW FREEZING

KEEP RHMS’S NUMBER ON HAND FOR ASSISTANCE:

  • WE ARE LICENCED PLUMBERS & ELECTRICIANS AS WELL AS MAINTENANCE TECHNICIANS
  • WE ARE AVAILABLE ON-CALL AFTER HOURS FOR EMERGENCIES
  • CALL US IF YOU NEED A HAND WITH PREVENTATIVE MAINTENANCE OR WEATHER EMERGENCIES:  503.678.2136

The worse of the winter season is still to come to here are some reminders for winterizing rental properties to be proactive and save

About the author:

Mara Indra is an Owner & President of Rental Housing Maintenance Services, Inc., a family-owned repair & remodel business serving the metro rental community since 1997. Mara worked in the field of Architecture for 20 years prior to joining RHMS. She has experience with the construction process from start-to-finish and enjoys collaborating with property owners on identifying opportunities to maximize their investments.

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