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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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Flexible Rent Payments Help Property Managers And Tenants

By offering flexible rent payment programs, property managers help residents stay on track while ensuring steady cash flow and operations.

By offering flexible rent payment programs, property managers can help residents stay on track while ensuring steady cash flow and smoother operations.

By Aaron Gries
Vice President of Product Management at Zego

Rent is the biggest expense for most residents, and many struggle to pay it on time. With costs rising and paychecks stretching thinner, staying on top of rent isn’t getting any easier. At the same time, property managers face growing challenges in collecting rent reliably. By offering payment flexibility, property managers can help residents stay on track while ensuring steady cash flow and smoother operations.

Demand for flexible rent-payment options has increased, especially after the pandemic. Today, a quarter of renters now spend more than 50% of their income on rent. At the same time, rent prices rise by 6% to 8% each year, while wages grow by only 1% to 2% annually, or even decline in some cases. Many residents also rely on non-traditional income sources, such as gig work or irregular job schedules. With these shifts, property managers need solutions that fit real-life financial situations, not just one-size-fits-all due dates.

Flexible rent-payment programs help residents by letting them pay in smaller amounts instead of all at once.  A survey by Intuit Credit Karma found that 24% of American renters struggle with rent affordability, highlighting the need for solutions that ease financial strain. Flexible payment programs allow residents to apply through an online portal, where financial underwriting helps set up personalized payment schedules. Once approved, residents can make payments according to their plan, reducing late fees and easing financial stress.

For property managers, flexible payment systems help maintain consistent rent collection, improve cash flow, and reduce financial uncertainty. Partnering with financial service providers lowers risk while ensuring residents have options that fit their income schedules. These systems also take time-consuming tasks, like chasing down late payments, off property managers’ plates. By automating payment reminders, late fees, and collections, property managers can focus on higher-value work that improves resident satisfaction.

The rise of flexible rent payments reflects the larger shift in the multifamily industry. Property managers are adopting tools to enhance operations and strengthen resident relationships. Since resident satisfaction is key to retention, offering payment flexibility has become an important amenity. When property managers provide options that make life easier, residents notice – and they stay.

As economic pressures continue to reshape the multifamily market, flexible rent-payment options will be key for the future of housing. Yet, despite the growing availability of flexible payment systems, 65% of renters don’t even know they exist, according to payments company Zego’s 2024 State of Resident Experience Management Report. Implementing flexible payment options is only part of the equation – property managers must also spread the word. Clear communication ensures residents understand their options and take advantage of the flexibility available to them.

About the author:

Aaron leads the Product Development team where he drives development of Zego’s product strategy, roadmap execution, and prioritization. Aaron’s 20 years of FinTech experience combined with over 7 years in PropTech is a potent mix to address the ever-changing needs of Zego’s clients and customers as a B2B2C SaaS company.

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Ask Landlord Hank: If Heater Goes Out in My Rental, Should I Give Tenants Credit While Awaiting Repair?

If the heater goes out in my rental should I give tenants credit while awaiting the repair is the question this week for Landlord Hank

If the heater goes out in my rental should I give tenants credit while awaiting the repair is the question this week for  Ask Landlord Hank. Remember Hank is not an attorney and he is not offering legal advice. If you have a question for him please fill out the form below.

 

Dear Landlord Hank:

If the heater goes out in one of my rental units, and I begin getting quotes to repair but it takes a week or two (7-14 days) to receive quotes, approve one and have a heater installed, how many days credit should I give my residents for the habitability issue in their unit? -Marley

Dear Marley,

If the property was really uninhabitable due to cold then I would reimburse the tenants for the days it took for the repair to be completed, especially if you are getting multiple quotes, which is understandable for a major repair.

If you provided or if the tenants had space heaters and could remain comfortable that way then I wouldn’t do anything, unless they complain or ask, and then I would consider their request.

Sincerely,

Hank Rossi

Editor’s note: Check your local and state regulations on issues such as this as it varies across the country.

As a child, Hank Rossi sometimes helped his father take care of the family rental-maintenance business.  In the mid-’90s he got into the rental business for himself. After he retired, he started a real-estate brokerage business with his sister that focuses on property management and leasing. Visit his website: https://rentsrq.com.

 

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.

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If the heater goes out in my rental should I give tenants credit while awaiting the repair is the question this week for Landlord Hank.
Landlord Hank Rossi says, “If the property was really uninhabitable due to cold then I would reimburse the tenants.”

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Mitigation For Common Property Losses

mitigation for common property losses requires a proactive approach to minimizing risks that could result in costly losses for landlords

By Jason Jones
SVP, Risk Management

Preventing Property Losses

Protecting investment properties involves more than just securing a solid insurance policy–it requires a proactive approach to minimizing risks that could result in costly losses. By addressing potential issues early, landlords and property managers can prevent disruptions and maintain a safe environment for tenants.

Fire Prevention

Fires are not only one of the most common losses, often a result of cooking mishaps, electrical issues, or arson, particularly in vacant properties. To mitigate fire risks, install working and unexpired smoke detectors and fire extinguishers in all properties, educate tenants about fire safety, and consider utilizing additional suppression tools. Vacant properties must be secured at all times to prevent unauthorized access.

Water Damage

Water-related losses, such as frozen pipes, can lead to extensive and costly property damage. Keep indoor temperatures above 55°F (higher in more northern locations), insulate exposed pipes, and encourage tenants to let faucets drip during freezing conditions. Leak sensors and automatic shutoff valves are relatively easy to install and provide early detection and intervention, minimizing damage.

Theft

Properties that are vacant or under renovation often attract thieves targeting appliances, tools, and materials. However, this does not mean that occupied properties are immune to burglary. To reduce the risk of theft, all properties, whether vacant or occupied, must be equipped with high-quality locks on all doors and windows.

Additional measures, such as motion-activated cameras and exterior lighting and alarm systems, can deter potential intruders. Keeping the grounds tidy can also discourage unwanted visitors by signaling that the property is actively maintained.

Reducing Liability Risks

Liability claims can result in substantial financial losses, but proactive measures can significantly reduce exposure.

Regular property inspections are essential for identifying hazards such as loose handrails or damaged steps that could lead to accidents. Addressing these issues promptly and maintaining detailed records of repairs, including photos, can help prevent incidents and provide critical evidence if a claim arises. Scheduled maintenance plans can ensure consistent inspections and timely repairs, protecting both tenants and the investment property.

While no property is entirely immune to risks, thoughtful planning and preventative measures can significantly reduce the likelihood and severity of losses. A well-maintained property also reflects responsible management, fostering long-term value and tenant satisfaction.

About NREIG:

mitigation for common property losses requires a proactive approach to minimizing risks that could result in costly losses for landlords

NREIG is a national, independent insurance agency, offering the most comprehensive, and flexible industry-leading insurance program for residential real estate investment properties. Our team of advisors and specialists delivers unmatched service and streamlined insurance solutions for investors with single-family and small multifamily rentals, renovation projects, and vacant homes. Seamlessly make coverage changes as your portfolio fluctuates and pay only for the coverage you need each month.

Request a Proposal

About the author:

mitigation for common property losses requires a proactive approach to minimizing risks that could result in costly losses for landlords

Jason’s insurance career spans more than 20 years, with the bulk of his industry experience gained through his role as an adjuster handling property and liability claims. Throughout Jason’s time with NREIG, his various leadership positions have exposed him to almost every department, including service, claims, account review, underwriting, and risk management. As SVP of Risk Management, Jason guides NREIG teams in maintaining carrier relationships, foreseeing and managing potential risks, and aiding in becoming a market leader.

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Multifamily Starts 2025 ‘Walking a Tightrope’

After a so-so year in 2024, multifamily has entered 2025 “walking a tightrope, with heavy supply growth balanced by equally strong demand,

After a so-so year in 2024, multifamily starts 2025 “walking a tightrope, with heavy supply growth balanced by equally strong demand,” Yardi Matrix writes in the December report.

Overall, the market has been on a “treadmill” during 2024 with national year-over-year growth stuck between 0% and 1.0% for 16 straight months, the report says.

“Clearly, 2025 promises change. Starts have dropped, and completions will wane soon. On the demand side, absorption will be boosted by healthy job growth and demographics.”

Still, the report notes that immigration represents a source of demand for multifamily, and that remains uncertain with the new administration.

“The U.S. Census Bureau recently increased its estimate of international immigration to 2.8 million in 2024, 84% of total U.S. population growth, while upping immigration estimates to 4 million combined in 2022 and 2023,” the report says.

On top of that, interest rates now appear to hold “less favorable” conditions than what had been expected.

“The upshot is that investors’ higher inflation expectations have pushed the 10-year Treasury rate up to 4.6%, creating ongoing pricing uncertainty that could keep deal flow muted,” Yardi Matrix says.

Highlights of the report

  • Multifamily finished 2024 on the downswing, with the average U.S. advertised rent falling $4 nationally in December to $1,742. Year-over-year rent growth, which remains positive albeit weak, was down 10 basis points to 0.6%.
  • The trends that shaped 2024 remained in place to the end. Demand stayed robust throughout the year in most regions, so regional and market-level rent change was determined by the amount of local supply growth.
  • S. advertised rents fell 0.2% month-over-month in December, with declines in 20 of the top 30 metros.
  • High-supply markets continue to record some of the largest declines. In December in Austin, advertised rents fell 1.1% month-over-month.
  • After outperforming multifamily through most of the year, single-family rental rates also ended the year poorly. Single-family rental advertised rents dropped $7 month-over-month in December to $2,141, with year-over-year growth dropping 40 basis points to -0.8%.

Read the full report here.

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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