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Will Multifamily Have a Strong Year in 2025?

By
John Triplett
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As the economy grows and the job market remains strong, what will 2025 look like for the multifamily industry?

As the economy grows and the job market remains strong, what will 2025 look like for the multifamily industry?

“We expect multifamily advertised rents to increase moderately in 2025, by 1.5% nationally,” writes Yardi Matrix writes in its winter report. “Many of the underlying conditions that drove strong demand should persist in 2025. Most notably, weak buying power and the high costs of homeownership continue to keep potential buyers in apartments longer.”

While 2025 looks good, the market faces some questions, “including the impact of potential economic policy changes, how long it will take to absorb deliveries in high-growth Sun Belt markets, and whether interest rates will fall enough to revive transactions and avoid distress,” the company says in the Multifamily Outlook for 2025.

Changes Are Coming In 2025

Yardi Matrix says the incoming Donald Trump administration will implement a new policy course.

“Some campaign policies such as relaxing regulations, eschewing rent control and reducing taxes should have a positive impact on multifamily. However, tariff threats and promises of large-scale deportations could raise prices and lower apartment demand,” the report says.

Highlights of the report

  • In terms of advertised rents, metros in the Northeast and Midwest will continue to lead, boosted by positive demand and weak supply growth.
  • The large number of properties under construction will support robust supply growth again in 2025, but the dwindling number of starts will stifle deliveries in 2026 and 2027.
  • Supply growth is distributed unevenly, as 12 to 15 high-growth markets account for a large percentage of deliveries.
  • At the same time, a national housing shortage has built up over decades, making development necessary to address affordability.
  • Activity in capital markets will be heavily dependent on the direction of interest rates. Increased trading activity is expected in 2024, but rate cuts likely won’t be fast or deep enough for a strong rebound in 2025.
  • At the same time, rate cuts won’t be enough to significantly alter the loan-default issue. Some loans that have been extended in the hope of imminent lower rates will default, though that cohort is not expected to be large enough to create a systemic crisis.

The Elephant in the Room?

Yardi Matrix says, “The elephant in the room for the forecast: a new administration that promises to bring about numerous policy changes. Growth should benefit from some new policies” such as extension of tax cuts and relaxing of some regulations.

  • The government is likely to drop regulation of multifamily-fee management, while policies that stymie development will be loosened or not strictly enforced, and funding of affordable housing programs such as opportunity zones and the Low-Income Housing Tax Credit should remain intact or be expanded.
  • The President-elect has also expressed his willingness to open some federal land to housing construction, which will reduce costs, as land prices alone can be significant barriers for developers.

“But some proposed policies could be detrimental to multifamily housing. Trump’s tariffs could not only elevate overall inflation but increase the cost of building materials, which could hinder development and possibly lead to retaliation from other countries.

“Also, higher costs could inhibit the Federal Reserve from cutting interest rates, which are such a key hurdle to commercial real-estate transactions.

The campaign promise for large-scale deportations of undocumented immigrants is another policy with potential negative impact as it could reduce housing demand and construction workers and introduce other areas of uncertainty. “Immigration, both legal and illegal, has been a source of demand for multifamily,” Yardi Matrix writes in the report.

The Work-from-Home Question

Work-from-home is another driver of rental demand, even as calls to return to the office become more prevalent.

Roughly two-thirds of office workers are either hybrid or fully remote, which translates into more people wanting space for home offices. Work-from-home also boosts demand in suburbs and less expensive metros.

Read the full report from Yardi Matrix here.

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Rents Forecast to Rise in 2025 and 2026

Stay Ahead of the Game: Avoiding Multifamily Hurdles Before They Occur

Strong Delivery Of New Apartments Levels Off Rents

Rent-Setting Software Pushed Up Rents in Several Metros

By
John Triplett
-
Renters In Atlanta, Denver and Dallas paid more than $100 a month more in rent to landlords who used rent-setting software algorithms

Renters In Atlanta, Denver and Dallas paid more than $100 a month more in rent to landlords who used rent-setting software algorithms, according to a report.

A White House report released in December estimates the nation’s renters overpaid by $3.8 billion in 2023.

The White House cited RealPage as the primary provider of rental-pricing algorithms. Companies like RealPage use their tools to suggest optimal rent for landlords to charge.

In order for the algorithm to work, landlords must provide data that they wouldn’t otherwise share with competitors.

Several states joined the lawsuit by the Department of Justice over the rent-setting software, including Colorado, Arizona and others.

Drew Hamrick, general counsel with the Colorado Apartment Association, told Denver7.com,  “If you’re trying to figure out what units are going for in a competitive area, figuring out the floor plans, the relevant levels of amenities, the square footage, all the things that factor into how valuable an apartment is, that’s a huge undertaking. And that information, in most cases, is not public.”

The report said, “We find that anticompetitive pricing costs renters in algorithm-utilizing buildings an average of $70 a month. In total, we estimate the costs to renters in 2023 was $3.8 billion. This estimate is likely a lower bound on the true costs.”

The report says “rental-pricing algorithms use extensive market data to predict and recommend profit-maximizing rents. RealPage is the primary provider of rental-pricing algorithms for multifamily housing. Its main pricing software is “AI Revenue Management” (AIRM, formerly “YieldStar”), but RealPage also owns “Lease Rent Options” (LRO), which it acquired from its main competitor in 2017. The two software products are used in at least 10% of all rental units nationally. Using data on software usage from a RealPage report and the American Community Survey, we estimate that in the multifamily housing sector nearly 1 in every 4 rental uses a RealPage pricing algorithm.”

The report released charts showing the top 3 metros where renters paid more due to the rent-setting software. Renters in Atlanta paid $181 more per month, Denver $136 more per month and Dallas $132 more per month.

Renters In Atlanta, Denver and Dallas paid more than $100 a month more in rent to landlords who used rent-setting software algorithms

Renters In Atlanta, Denver and Dallas paid more than $100 a month more in rent to landlords who used rent-setting software algorithms

Highlights of the report

  • “When algorithmic recommendations are based on profit-maximizing prices for a set of landlords collectively, the algorithm will recommend prices that are higher than the profit-maximizing price each landlord would set independently.
  • “RealPage pushes its software users to turn on the auto-accept setting so that price recommendations are automatically accepted,” according to the Department of Justice complaint.
  • “We find that coordinated rents from algorithmic pricing cost renters in algorithm-utilizing units $70 a month, or 4% of rent, on average nationally.
  • “In six major metros, the cost exceeds $100 a month,” the report says.

RealPage company spokeswoman Jennifer Bowcock told Axios Houston, “ This administration should stop scapegoating RealPage’s legally compliant technology for housing-policy failures and take care to not stifle the innovation that will strengthen America’s economy, now and in the future.”

In December, RealPage filed a motion seeking to dismiss the DOJ’s claims in the antitrust suit, arguing that the agency hasn’t shown any real anticompetitive effects of its product.

Axios wrote that it is watching “Whether the incoming Trump administration will pursue the suit against RealPage. The analysis looks like the White House’s last push to draw attention to the issue.”

Read the full White House report here.

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Rents Forecast to Rise in 2025 and 2026

Will Multifamily Have a Strong Year in 2025?

Stay Ahead of the Game: Avoiding Multifamily Hurdles Before They Occur

Strong Delivery Of New Apartments Levels Off Rents

Photo credit Andrii Yalanskyi via istockimages.com

Rents Forecast to Rise in 2025 and 2026

By
John Triplett
-
New rents forecast data shows there will be an increase in rents in 2025 and 2026, ending the lower prices many renters have had recently

CoStar Group forecasts that as the new apartment supply is absorbed, new data shows there will be an increase in rents in 2025 and 2026, ending the lower prices “many renters have had over the last couple of years as a result of the post-COVID multifamily supply glut,” the company says in a release.

The company, which specializes in real estate analytics and data information, says this is what renters should expect in the coming years. Key indicators, such as the national vacancy rate and construction starts, indicate a coming period of undersupply.

Jay Lybik, CoStar’s national director of multifamily analytics, recently analyzed the rental market outlook in a release and found:

  • After declining since Q1 2022, national rents are increasing once again, reflecting the end of oversupply conditions in most markets.
    • Rent growth for the latter half of 2024 is expected to match historical averages – around 3.5% – in contrast to the low of 0.9% in Q3 2023.
  • Expected multifamily property completions for 2024 total 533,000 units, a 10% decrease from the 40-year high of 588,000 units in 2023.
    • These numbers are expected to decrease even further; at the current pace of starts, the 2026 completion forecast sits at just 250,000 units.
    • This trend is further reflected in the sharp decline in construction starts, from a high of 210,000 units starting construction in the first quarter of 2022 to just 63,000 units two years later.
  • If demand remains at current levels into 2026, the market could transition quickly from oversupplied to undersupplied, causing vacancy rates to drop swiftly and rent growth to accelerate above historical averages.
    • Given the long lead times for construction, the market may not be able to respond quickly enough to compensate for the supply shortage, potentially exacerbating the supply and demand situation.

About CoStar

CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces and information in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information.

Rent Prices Rise in June, But Rentals Slow

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Rent Prices Continue To Climb For Third Month

Stay Ahead of the Game: Avoiding Multifamily Hurdles Before They Occur

Strong Delivery Of New Apartments Levels Off Rents

5 Items For The Holiday Fair Housing Checklist

By
By The Editors
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5 items on the holiday fair housing checklist to offer property managers a unique opportunity to demonstrate Fair Housing compliance.

Here are 5 items on the holiday fair housing checklist to offer property managers a unique opportunity to demonstrate their commitment to inclusivity and Fair Housing compliance.

By The Fair Housing Institute

The holiday season can be a joyous time for communities, but for property management professionals, it also presents unique challenges. Balancing festive cheer with the requirements of fair housing compliance and inclusivity is no small task.

Inspections may uncover non-compliance in resident decorations, while staff communication could inadvertently reflect language that alienates or excludes some residents. Addressing these issues promptly and thoughtfully is critical to fostering a harmonious, welcoming environment for everyone.

So, as the holidays quickly approach, take a few minutes and use this list that offers clear, actionable steps to see if your holiday plans are fair housing friendly.

Holiday Fair Housing Compliance Checklist

Use this checklist to address non-compliance discovered during inspections, reinforce inclusive practices among residents and employees, and ensure compliance with fair housing laws during the holiday season.

1. Addressing Resident Non-Compliance with Decorations

  • Evaluate All Resident Decorations: Confirm all decorations comply with established community policies (e.g., size, safety, and placement rules).
  • Issue Written Notices for Non-Compliance: Politely inform residents of any violations with clear instructions for corrections. Avoid specifying or targeting decorations based on cultural or religious themes.
  • Provide Policy Reminders: Reiterate decoration rules and highlight their purpose (e.g., safety, neutrality, and inclusivity).

2. Correcting Employee Language and Behavior

  • Review Recent Employee Communication: Identify instances of non-inclusive language (e.g., “Merry Christmas” instead of “Happy Holidays” or comments favoring specific traditions). Address any language that could be perceived as discriminatory or dismissive of resident concerns.
  • Hold Immediate Staff Training: Reinforce the importance of neutral, inclusive language during the holiday season. Use real examples from inspections to illustrate best practices and areas for improvement.
  • Provide Approved Scripts: Distribute a list of inclusive phrases (e.g., “Holiday Celebration” instead of “Christmas Party”) for staff to use in resident interactions and promotional materials.

3. Ensuring Common Area Compliance

  • Inspect Common Areas for Neutral Decorations: Remove any overtly religious or cultural displays unless balanced by representations of other traditions. Replace non-compliant decorations with universally festive, secular items (e.g., snowflakes, lights, or wreaths).
  • Verify Event Inclusivity: Ensure holiday events are advertised as open to all residents and reflect diverse traditions. Avoid promotional materials or language that may exclude or discourage participation from any group.
  • Reissue Common Area Policies: Communicate policies regarding the use of community spaces, emphasizing fairness and inclusivity.

4. Managing Complaints Effectively

  • Log All Complaints: Document complaints about decorations, language, or resident interactions, ensuring thorough records.
  • Investigate Promptly and Impartially: Address each complaint seriously, even if it appears minor or subjective. Discuss outcomes with all relevant parties and provide a clear explanation of resolutions.
  • Educate Staff on Complaint Sensitivity: Emphasize the importance of respectful listening and professional responses when addressing resident concerns.

5. Reinforcing Compliance Year-Round

  • Regular Policy Reviews: Schedule quarterly reviews of decoration and language policies to maintain compliance and inclusivity.
  • Continuous Staff Training: Incorporate holiday compliance scenarios into ongoing fair housing training programs.
  •  Promote Diversity and Inclusion Initiatives: Encourage year-round activities and practices that celebrate the community’s cultural and religious diversity.

Summary

The holiday season offers property managers a unique opportunity to demonstrate their commitment to inclusivity and Fair Housing compliance. By ensuring that all written and verbal communication reflects fair housing principles, you create a foundation of respect and equality within your community.

Use inspections and complaints not just as problem-solving tasks but as teachable moments to educate residents and staff about the importance of inclusivity. Maintain detailed records of all actions taken to address non-compliance to uphold accountability and provide legal protection.

By following this checklist, you can confidently navigate holiday challenges while fostering a welcoming, compliant environment for all residents—ensuring the season remains a time of joy and unity for everyone.

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.

Little Change In Rents As Tenants Settle In For Winter

By
John Triplett
-
There was little change in rents in November as moving season is past and tenants settle in for the winter, Yardi Matrix says.

There was little change in rents as moving season is past and tenants settle in for the winter, Yardi Matrix says in the November Multifamily Report.

Of the last 10 Novembers, since 2015, the average U.S. advertised rent has changed more than $3 only three times.

Highlights from the report:

  • Multifamily advertised rents dropped $5 nationally in November to $1,744, as a rapid influx of supply continues to counteract strong demand in high-growth Sun Belt markets. Year-over-year rent growth fell 10 basis points to 0.9%.
  • Nationally, rent growth has been steady at just under 1.0% throughout the year, but performance is mixed by region. Sixteen of the Matrix top 30 metros have recorded positive advertised rent growth year-over-year, while 14 are negative.
  • Due to a seasonal slowdown and rising competition from deliveries, particularly in Florida and Texas, single-family rental rates are slumping. SFR advertised rents dropped $7 month-over-month in November to $2,150, and are down $25 since peaking during the summer.

The report says the question is whether the recent calm “belies a more turbulent time ahead as the multifamily industry anticipates changes to policy and interest rates.”

Clearly any talk of rent control at the federal level is gone, the report says.

Also, corporate tax breaks for real estate and deductions for pass-through entities from the 2017 tax law are likely to be extended or expanded.

Too, Fannie Mae and Freddie Mac, the most active multifamily lenders will likely face change based on previous statements from the Trump administration.

“At the same time, threats to implement steep tariffs and deport immigrants that comprise a solid chunk of construction workers raise concerns about rising costs, development delays and reduced demand for housing. Higher inflation could keep interest rates elevated and potentially stall increased transaction activity,” Yardi Matrix says in the report.

Read the full Yardi Matrix 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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4 Ways AI is Transforming the Multifamily Housing Industry

By
By The Editors
-
4 Ways AI is being leveraged by multifamily owners and operators to optimize their marketing efforts from leasing to maintenance

4 Ways AI is being leveraged by multifamily owners and operators to optimize their marketing efforts from leasing to maintenance.

By Vickie Rodgers

Artificial intelligence (AI) is rewriting how the entire real estate industry operates, including improving the way multifamily properties market and advertise their residences. In fact, McKinsey predicts generative AI alone can create at least $110 billion to $180 billion in value for the entire real estate industry.

Property managers failing to invest in and adopt AI risk falling behind those in the industry that leverage the tool in their marketing and advertising efforts.

Although AI is not new technology, it has gone through a renaissance since ChatGPT popularized it in 2022. AI is not only here to stay, it is set to take root, grow and mature in the multifamily market because of the many tangible benefits it provides, including increasing marketing efficiency and improving resident satisfaction.

Here are four ways AI is being leveraged by multifamily owners and operators to optimize their marketing efforts.

No. 1 – Streamline the leasing and application processes

AI can help those on both sides of the leasing and application process – leasing office and prospective residents.

For leasing office team members, AI can be used to craft engaging apartment listings, which frees them from this manual task so they can focus on other efforts, such as spending one-on-one time with tenants or prospects. AI can even be used to create an image replacing an outgoing tenant’s dated furniture with AI-generated furnishings that make the space more appealing.

On the prospective resident side, a chatbot can answer questions 24/7 so the individual doesn’t need to wait for business hours to get an answer. Chatbots can also be used to schedule viewings or lead potential tenants through the application process, among other things.

No. 2 – Support stronger marketing activities

AI sets the competitive multifamily resident bar higher. For instance, if one property manager advertises a dimly lit, unappealing snapshot of an available unit and another provides a well-lit, AI-enhanced photo showing the property in a more engaging way, the second property is going to attract more prospects.

To reach the most relevant audiences, AI algorithms can also use targeted advertising to analyze certain demographics to optimize ad placements. The technology can also evaluate and prioritize leads based on conversion likelihood so leasing teams can focus their efforts on the prospective residents with the greatest leasing potential.

No. 3 – Analyze amenities and provide recommendations for upgrades

No two properties are the same, nor are their amenities. Consider swimming pools since many apartment complexes have them. AI can analyze and then point out that a property has invested in a high-end Infiniti pool that’s much more desirable than a competitor with a swimming pool installed in the 1980s.

AI can even recognize patterns in data to determine which amenities, like weight rooms, pools, greenspaces or smart home features, have the most appeal with tenants. If tenants lean toward reliable Wi-Fi throughout an entire property or would love an on-site dog park, AI can recommend these upgrades to property management.

No. 4 – Strengthen preventative maintenance operations through real-time monitoring

AI algorithms analyze data from sensors and historical maintenance records to predict when equipment might fail. This allows organizations to schedule maintenance before problems arise to decrease equipment downtime and increase tenant satisfaction.

AI can identify atypical patterns in real-time data, signaling potential issues before they escalate. For example, if water usage throughout a property doubles over two months, proactively looking into the issue can help address the problem, like detecting a water tank trickle or swimming pool leak, early. Similarly, if the refrigerator in a unit is acting up, AI can schedule maintenance before the appliance fails and the tenant is forced to throw out a refrigerator and freezer full of food.

AI set to unlock even greater potential

Although AI still has some growing pains, using the technology to enhance marketing and advertising efforts can help multifamily operators take advantage of greater efficiency, insight and innovation. As the technology grows and matures, it will be interesting to see the ways in which AI continues to redefine the possibilities in the growing multifamily market.

 About the author:

Vickie Rodgers, Senior Vice President of Cox Communities

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Rents Forecast to Rise in 2025 and 2026

Rents Fell In October As Election Heralds Change

Insurance Leads Rising Rental Property Expenses

Photo credit CHOLTICHA KRANJUMNONG via istockimages

Multifamily Applicant Fraud Becoming a Widespread Challenge

By
John Triplett
-
Multifamily fraud is becoming a challenge as fraudsters become more inventive to avoid vulnerabilities in traditional verification systems

Multifamily applicant fraud is becoming a widespread challenge for the industry as fraudsters become more inventive, according to the State of Applicant Fraud Report from Snappt, an AI document-fraud-detection company for multifamily property managers.

The report exposes the alarming rise of sophisticated fraud tactics targeting multifamily properties, highlights vulnerabilities in traditional verification systems, and introduces actionable solutions to protect your business, according to a release.

Using AI To Sneak Through Leasing Process

The release says fraudsters employ a range of tactics to sneak through the leasing process:

  • Some manipulate documents directly in the form of first-party fraud
  • Others take a third-party fraud approach by impersonating another individual on their documents
  • In addition, applicants are utilizing AI technology to generate entirely fake documents and synthetic IDs from scratch.

Multifamily applicant fraud is becoming a challenge as fraudsters become more inventive to avoid traditional verification systems

These tactics come at a time of high housing demand and the climbing rate of rental costs. In tandem, the digitization of rental applications has made it easier for applicants to remotely submit falsified documents, making it harder for property managers to verify their authenticity.

As part of this report, Snappt surveyed 900 property managers to gain insights into their daily challenges. They learned that 72% believe that multifamily applicant fraud is just as much of a problem this year as last, while more than 60% ranked security and accuracy as their top priorities.

Multifamily applicant fraud is becoming a challenge as fraudsters become more inventive to avoid traditional verification systems

The release says multifamily organizations must invest in a multi-layer fraud-defense system equipped with document-fraud detection, ID verification, income verification, threat-list checks, and a fraud forensics team.

“Fraud is evolving at an unprecedented rate, putting immense pressure on multifamily property managers to keep up,” writes Daniel Berlind, CEO of Snappt, in the release. “Our latest report and new solutions empower the industry to tackle fraud head-on while maintaining a frictionless application process for prospective renters.”

To read the report, visit www.snappt.com/blog/applicant-fraud-report.

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Aggressive, Abusive Tenants Big Challenge for Property Managers

Insurance Leads Rising Rental Property Expenses

Stay Ahead of the Game: Avoiding Multifamily Hurdles Before They Occur

Why People Moved In The Last Year – Fewest In 25 Years

By
John Triplett
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A new study on why people moved confirms that the main reasons people move are for better housing and jobs, according to Rent Café.

A new study on why people move confirms that the main reasons people move are for better housing and jobs, according to Rent Café.

The number of people moving last year – 24 million – was the lowest number in 25 years.

More than half of those who moved last year (13 million) packed up for better housing. Another five million chased job opportunities.

Overall, the pursuit of better homes represented 15% of all moves, along with the search for more affordable housing, which drove 10% of relocations.

“Instead of compromising more, Americans are now strategically relocating to balance career opportunities with quality-of-life and housing costs,” the RentCafe research team writes.

A new study on why people moved confirms that the main reasons people move are for better housing and jobs, according to Rent Café.

This trend reveals how housing and career choices continue to reshape America’s cities, the study says.

“This trend reveals an intriguing paradox of the remote-work era: Despite the widespread adoption of work-from-home policies, job-related relocations remain strong.

“It suggests that workers are leveraging the flexibility of remote work to seize career opportunities across broader geographic areas. This trend aligns with the post-2020 job-hopping phenomenon, in which nearly one in five workers stayed in their role for a year or less by 2022. Plus, an easier commute drove more than 5% of all moves last year, which reinforces the paradox,” RentCafe says in the study.

A new study on why people moved confirms that the main reasons people move are for better housing and jobs, according to Rent Café.

Solo renters fasting moving group

While moving out and living on one’s own seems to be less appealing or achievable compared to pre-pandemic times, solo renters are the fastest-rising renting group.

Then, cheaper housing comes in as the fourth most popular reason for relocating, with a share of nearly 10%. This is far from unexpected in the context of record-high home prices.

A new study on why people moved confirms that the main reasons people move are for better housing and jobs, according to Rent Café.

A few highlights from the report:

  • 7% of Americans who moved last year did so to achieve homeowner status.
  • 6% of movers sought a better neighborhood.
  • 8% of moves were for health concerns.
  • 4% of moves for retirement
  • 1% of moves were for a change of climate

Read the full report from RentCafe here.

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Rents Forecast to Rise in 2025 and 2026

Rents Fell In October As Election Heralds Change

Insurance Leads Rising Rental Property Expenses

Can I Use Pet Deposit Money To Pay For Other Rental Damages?

By
Hank Rossi
-
Can a landlord use pet deposit money to pay for other tenant rental damages is the question this week for Ask Landlord Hank.

Can a landlord use pet deposit money to pay for other tenant rental damages 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 landlord question for him please fill out the form below.

Dear Landlord Hank,

I have a tenant that left before we did the walkthrough. The place was full of old beds, sofas, broken cabinets and wood pallets, and loads of garbage. It took multiple trips to the dump.

She is asking for her pet deposit back. However,  it is going to cost me $1,000 just for garbage and junk removal. She paid $500 plus $100 pet fee. Can I hold her pet fee or is that only for pet damage?

-Elaine

Hi Elaine,

From your question, I am guessing you have a refundable pet deposit for any damage caused by the pet.

That is the intention for the use of these funds, for pet stains or damage to carpet or other flooring, scratches or chewing on walls, cabinets, etc., pet smells, fleas – any issues related to keeping this animal in the unit.

If you can tell that some of the damage was caused by the pet, you can keep money to take care of that issue.

If you have a pet fee then that is normally a fee paid by the tenant for the right to have the pet in the property. Normally a pet fee is nonrefundable, but your lease should describe whether you have-a refundable pet deposit or non-refundable pet fee.

I hope you are doing background screening on possible tenants to check credit, criminal history, employment history and residential history to hopefully avoid this kind of abuse in the future.

Good luck!

Sincerely,

Hank Rossi

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.

Editor’s note: Check your local laws on vehicles on rental property or other issues as many cities and states have different rules.

Can a landlord use pet deposit money to pay for other tenant rental damages is the question this week for Ask Landlord Hank.
Landlord Hank says, “If you can tell that some of the damage was caused by the pet, you can keep money to take care of that issue.”

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.

  • This field is for validation purposes and should be left unchanged.

Each week I answer questions from landlords and property managers across the country in my “Dear Landlord Hank” blog in the digital magazine Rental Housing Journal.   https://rentalhousingjournal.com/asklandlordhank/

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photo credit Solovyova via istockimages

 

California Cities Push Back on Rent-Setting Software

By
John Triplett
-
California cities including San Diego are pushing back on rent-setting software programs used by apartments, according to reports.

California cities, including San Diego, are pushing back on rent-setting software programs used by apartments, according to reports.

Some landlords use a single company’s software – which uses an algorithm based on proprietary lease information – to help set rent prices.

San Diego’s city council president is the latest city to join the movement, proposing to prevent local apartment owners from using the pricing software, which he maintains is driving up housing costs.

The proposed ordinance, now being drafted by the San Diego city attorney, comes after San Francisco supervisors in July enacted a similar, first-in-the-nation ban. It put the ban in place on “the sale or use of algorithmic devices to set rents or manage occupancy levels” for residences. San Jose is considering a similar approach.

The San Diego council president, Sean Elo-Rivera, explained it like this to ABC eyewitness news:
“In the simplest terms, what this platform is doing is providing what we think of as that dark, smoky room for big companies to get together and set prices,” he said. “The technology is being used as a way of keeping an arm’s length from one big company to the other. But that’s an illusion.”

San Diego has the fourth-highest percentage of renters of any major city in the nation.

Arizona and 7 other states have sued also

California and seven other states have also filed lawsuits against the leading rental pricing platform, Texas-based RealPage. The complaint alleges that “RealPage is an algorithmic intermediary that collects, combines, and exploits landlords’ competitively sensitive information. And in so doing, it enriches itself and compliant landlords at the expense of renters who pay inflated prices…”

A RealPage spokesperson, Jennifer Bowcock, told CalMatters that a lack of housing supply, not the company’s technology, is the real problem .

She said its technology benefits residents, property managers, and others associated with the rental market. She later wrote that a ” misplaced focus on nonpublic information is a distraction… that will only make San Francisco and San Diego’s historical problems worse.”

The California Justice Department contends RealPage artificially inflated prices to keep them above a certain minimum level. Department spokesperson Elissa Perez this was particularly harmful given the high cost of housing in the state. “The illegally maintained profits that result from these price-alignment schemes come out of the pockets of the people that can least afford it.”

Arizona AG Sues RealPage and Landlords For Price-Fixing

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Justice Department Sues RealPage Over Apartment Pricing

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