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Tenant Kills Property Manager, Constable During Eviction

Tenant Kills Property Manager, Constable During Eviction

A tenant shot and killed the new property manager of an apartment complex, a constable and another tenant before turning the gun on himself during an eviction in Tucson, Ariz., according to reports.

The tenant had been threatening others with a gun in the apartment complex for months, according to KGUN9.com, and the apartment complex was attempting to evict him for that reason, according to court documents filed in the eviction case.

Gavin Lee Stansell, 24, killed Angela Fox-Heath, 28, who was a new property manager at the Lind Commons Apartments; Pima County Constable Deborah Martinez-Garibay, 43, who was a 16-year Army veteran who served in Afghanistan before becoming a constable; and Elijah Miranda, 25, a tenant who lived next door. The shooting happened about 11 a.m. on August 25.

A SWAT team went into Stansell’s apartment and found the wounded Martinez-Garibay, police said. She died at the scene.

Investigators don’t yet know why the constable entered the apartment or whether Stansell had tried to reject the eviction notice.

They found Stansell, 24, dead from a self-inflicted gunshot wound. Tucson police said a search of the apartment also found Stansell had entered or broken into the apartment next door and fatally shot Miranda.

The Associated Press reported an eviction complaint filed on Aug. 15 by a landlord in Pima County Consolidated Justice Court indicated that Stansell had previously threatened violence.

The complaint said he or his guest had threatened and intimidated neighbors with a gun on July 27.

Stansell failed to appear at a hearing in the eviction case, court records said.

According to the records, a judge ruled that Stansell had breached his lease agreement, writing: “The evidence shows that defendant threatened another resident with a firearm and has otherwise disturbed the peace.”

Arizona Governor Doug Ducey ordered flags at half-staff at state office buildings due to the lives lost in the Tucson shooting.

“The loss of Constable Deborah Martinez is felt across our state,” Ducey said in a press release. “Whether it was serving in the U.S. Army or carrying out her duties as a constable for Pima County, she dedicated her life to helping others and her community.”

The Pima County Constables Office said staff were devastated by the killing of Martinez-Garibay. She gave her life in service to the people of Arizona, the office said.

“We all know that the job of an Arizona constable comes with risk, but we go about our business with caution and professionalism and treat all with whom we come in contact with respect and dignity,” the office said in a statement.

Maricopa County constable Mike Branham told KJZZ that  people in his position often respond to emotional situations.

“Someone is losing a house, someone else is having to evict somebody, certainly one of the biggest caseload increases in the last year or so has been orders of protection, which are also very dangerous,” Branham said.

He said constables can complete additional training to carry guns, but not all of them choose to do so.

Tenant Kills Property Manager, Constable During Eviction

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FTC Sues Roomster Over Fake Reviews and Phony Listings

FTC Sues Roomster Over Fake Reviews and Phony Listings

The Federal Trade Commission (FTC) and six states filed a lawsuit against rental-listing platform Roomster Corp. and its owners John Shriber and Roman Zaks for allegedly duping consumers seeking affordable housing by paying for fake reviews and then charging for access to phony listings, according to a release.

The complaint alleges that Roomster and its owners have taken tens of millions of dollars from largely low-income and student prospective renters who need reliable housing the most and can least afford to lose money.

Separately, the FTC and the states filed a proposed order against Jonathan Martinez—who allegedly sold Roomster tens of thousands of fake reviews—requiring him to pay $100,000 and cooperate in the FTC’s case against Roomster.

“Roomster polluted the online marketplace with fake reviews and phony listings, making it even harder for people to find affordable rental housing,” Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said in the release. “Along with our state partners, we aim to hold Roomster and its top executives accountable and return money to hardworking renters.”

“There is a term for lying and deceiving your customers to grow your business: Fraud. Roomster used illegal and unacceptable practices to grow its business at the expense of low-income renters and students,” said New York Attorney General Letitia James in the release. “Unlike Roomster’s unverified listings and fake reviews, their deceptive business practices will not go unchecked. I am proud to lead this effort with the FTC to protect low-income renters and students defrauded by Roomster.”

Rental listings company New York-based Roomster operates a website and mobile apps where users can pay a fee to access living arrangement listings, including rental properties, room rentals, sublets, and roommate requests. The company claims to offer “authentic” and “verified” listings. However, in a complaint filed in federal court along with the attorneys general of New York, California, Colorado, Florida, Illinois, and Massachusetts, the FTC and its state partners allege that Roomster, along with Shriber and Zaks, used fake reviews and other misrepresentations to lure consumers to its platform and pay for access to listings that often turned out to be fake. The complaint also alleges that Martinez, doing business as AppWinn, deceptively promoted the Roomster platform by providing tens of thousands of fake four- and five-star reviews.

The complaint alleges that the deceptive tactics of Roomster, Shriber, Zaks, and Martinez violated the FTC Act and state laws. Many consumers rely on reviews when deciding whether to purchase a product or service. Fake reviews distort the marketplace and make it difficult for consumers to make informed decisions. The deceptive tactics alleged in the complaint include:

  • Posting fake positive reviews: Roomster’s operators, with the help of Martinez, have saturated the internet with tens of thousands of four- and five-star fake reviews, which dilute negative reviews posted by real consumers, some of whom warn that many of Roomster’s listings are fake. The complaint alleges that Roomster’s operators told Martinez to take steps to make the reviews look real. For example, Shriber urged Martinez to spread out the reviews so they were “constant and random.”
  • Claiming to offer verified and authentic listings: Roomster misrepresents that it offers millions of “verified listings” when in fact the company does not verify listings or ensure they are legitimate and authentic. For example, the FTC’s investigation found that the company immediately accepted and published a fake listing for a fictional apartment at the same address as a U.S. Post Office commercial facility.
  • Using phony listings to attract paid users: Roomster has advertised on internet sites like Craigslist using phony listings that drive consumers to Roomster’s platform. Once on the site, consumers paid fees to obtain information necessary to secure the listings, only to discover that the listings didn’t even exist. In addition, after signing up for Roomster’s service, consumers complain they are often bombarded by fraudsters with more fake listings.

This action is part of the FTC’s efforts to crack down on fake and deceptive reviews. Earlier this year, online retailer Fashion Nova paid $4.2 million to settle allegations that the company blocked negative reviews of its products from being posted to its website. In 2021, the FTC put hundreds of firms on notice that they could face significant financial penalties if they use fake reviews or other deceptive endorsements to promote their products or services.

According to the complaint, Roomster and its owners were assisted by Martinez in their efforts to deceive consumers by posting fake reviews to the app stores. In addition to cooperating with the FTC in its ongoing case against Roomster, Martinez, as part of the proposed stipulated final order with the FTC and the states, is also required to:

  • Notify the app stores: He must notify the Apple and Google app stores that Roomster paid him for posting reviews on each platform and must identify the fake reviews and approximate times they were posted;
  • Stop selling reviews: Martinez will be permanently banned from selling or misrepresenting consumer reviews or endorsements;
  • Pay $100,000: Martinez must pay a total of $100,000 to the FTC’s six state partners: New York, California, Colorado, Florida, Illinois, and Massachusetts.

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FTC Charges Online Home Buyer with Deceptive Practices

California Court Orders Operators of Deceptive Rental Listing Websites to Pay $6 Million

CFPB Warns Tenant Screening Companies Over Name-Only Matching

What If Tenant Refuses Entry to Your Rental After Proper Notice?

What If Tenant Refuses Entry to Your Rental After Proper Notice?

This week’s question follows up last week’s How Can I Give Notice of Entry to Non-Responding Tenant? when the tenant will not respond to the notice. Now what if the tenant refuses entry and is inside and tells you to leave is the question for Ask Landlord Hank. Remember Hank is not an attorney and is not offering legal advice. If you have a question for him please fill out his form below.

Dear Landlord Hank:

In regards to your answer to enter property even if the tenant does not respond: What do you do if the tenant is in the house when you want to enter and they tell you to get out?

– Patti

Dear Patti,

If you have given proper notice to the tenant that you will be entering the property (at least 12 hours’ notice, in Florida), the tenant cannot deny the landlord the legal right to enter the property.

Again, in Florida, you’d need to enter during normal hours – 7:30 a.m. to 8:00 p.m. – unless there is an emergency; then you can enter at any time.

Don’t argue with your tenant, but let them know you have the legal right to enter and if the tenant refuses entry, tell them they are in violation of the lease and put a seven-day notice to cure on their door.

Then they have seven days to “fix” the problem. If they still won’t allow access, I’d move on to eviction.

It’s amazing what a legal notice will do to change an unreasonable tenant’s mind (sometimes).

Sincerely,

Hank Rossi
www.rentsrq.com

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/

If a landlord gives notice of entry, what if the tenant refuses entry and is inside and tells you to leave is the question for Landlord Hank.
Landlord Hank says, “If you have given proper notice to the tenant that you will be entering the property the tenant cannot deny the landlord the legal right to enter the property.”

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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Should I Give Separate Leases to Roommate Tenants?

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Survey: Property Managers Affect Whether Renters Stay or Go

Property managers have more influence than they may think on whether single-family renters stay in the current property or decide to move on

A new survey shows that single-family renters may be more likely to move in the next year than apartment renters, and there are some key reasons why.

Property managers have more influence than they may think on whether renters stay in their current property or decide to move on, according to a new Buildium survey.

The overall survey looked at why renters like single-family homes, but also why two-thirds of single-family renters are considering moving out in 2022 or 2023. It focused on the role of the property manager in the stay-or-move decision.

“The overarching consideration behind renters’ decision to renew their lease is their sense of value within their current property,” the survey said.

There are three main areas where property managers can make a difference in retaining tenants, according to the report.

  • The quality of service they receive from their property manager or landlord;
  • The condition of the property and attention paid to maintenance issues;
  • The amenities and services that are available to them.

Property managers’ influence tied to several factors

Buildium says in the report, “We found property managers may have more influence on renters’ decision to stay or go than they might think: Among renters who expressed a desire to become homeowners in the near future, we found that those who are more satisfied with their current property are less likely to plan to buy a home right away, even if it’s still their goal in the long term.

“And among renters for whom price is a leading consideration in their decision to move, it’s not necessarily a simple matter of their income versus the price of rent, though this is certainly a primary concern in today’s market. It’s their perception of value—the question of whether their rental experience is worth the price that they’re paying to live there—that can push them to stay or go, particularly when their household’s finances are stretched thin by high prices for housing, utilities, groceries, gas, and other necessities.”

Property managers have more influence than they may think on whether single-family renters stay in the current property or decide to move on
Charts courtesy of Buildium

What can property managers do?

Here are some key comments from the report:

  • “Be proactive. Come to the residence once a year to see what may need fixing or updating that the renter hasn’t brought up.” (Age 50)
  • “Fix problems as they arise, do not wait until something completely breaks down. Have planned services like HVAC exams before summer, provide extermination services on a planned schedule, and [include] yard services in [the] rent.” (Age 59)
  • “Be more open-minded about using technology for processes if you haven’t already started using it. It makes things easier for your tenants and yourself.” (Age 26)

Get the full report on single-family renters here.

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Disabled Veteran with Assistance Animal Denied Apartment, HUD Says

Disabled Veteran with Assistance Animal Denied Apartment, HUD Says

The U.S. Department of Housing and Urban Development (HUD) has charged a Kansas apartment owner and property managers with discriminating against a disabled veteran with an assistance animal, his dog, according to a release.

HUD charged the Fox Run Apartments, LLC, the owner of an apartment complex in Shawnee, Kansas, and property manager Peterson Properties, Inc. with violating the Fair Housing Act by refusing to allow a veteran with a mental health disability to live with his assistance animal despite a letter from the Veterans Administration stating the need for the dog.

The veteran applied for a one-bedroom apartment in 2020 for himself, his 16-year-old son, and an 18-month-old Doberman that weighed more than 70 pounds.

HUD’s charge alleges that the property management company denied both the applicant’s reasonable accommodation request to live with his assistance animal and his application for housing for his family.

According to the charge, the disabled veteran with assistance animal had provided the necessary information to support his reasonable accommodation request through a letter from his psychiatrist at the Veterans Administration.

Nevertheless, the management company denied the request and application after insisting, just before the veteran’s move-in date, that the veteran’s psychiatrist complete an additional, unrequired form. However, the psychiatrist was on vacation at that time. The disabled veteran with assistance animal was then forced to seek housing elsewhere.

The regional management official for the apartments determined the letter received from the VA doctor prescribing the dog “was insufficient” and ultimately denied the veteran’s request for reasonable accommodation. The apartment “cancelled his lease stating his dog exceeded occupancy limits, and the request to be classified as an assistance animal was not met,” according to the complaint.

“The Fair Housing Act requires housing providers to make reasonable accommodations, including allowing individuals with disabilities to live with needed assistance animals,” said Damon Smith, HUD general counsel, in the release. “As this charge shows, housing providers may not claim to comply with this requirement but then make it unnecessarily difficult for individuals with disabilities to actually get the necessary accommodation.”

The Fair Housing Act prohibits discrimination because of disability. The act makes it unlawful to refuse to grant reasonable accommodations for persons with disabilities, including failing to waive pet restrictions so that persons with disabilities can live with their assistance animals.

“Assistance animals provide people with disabilities, including our country’s veterans, the support they need to enjoy the benefits of housing,” said Demetria L. McCain, HUD principal assistant deputy secretary for Fair Housing and Equal Opportunity. “HUD is committed to taking appropriate action when housing providers fail to comply with the Fair Housing Act.”

A United States Administrative Law Judge will hear HUD’s charge unless any party to the charge elects to have the case heard in federal district court.
Can A Resident assistance animals? - more than one?

Capt. Robert Baldwin and 1st Lt. Gregory Caliwag, 88th Medical Center clinical nurses pet Bailey, a pet therapy dog from the Miami Valley Pet Therapy Association on July 21, 2017. Pet therapy dogs visit the medical center seven days a week to provide comfort to patients and staff members. (U.S. Air Force photo/Stacey Geiger) via creative commons.

Everything Landlords Should Know About Emotional Support Animals

 disabled veteran with assistance animal and Everything Landlords Should Know About Emotional Support Animals
Photo credit OlenaKlymenok via istockphoto.com

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Welcoming More Pets Can Lead To Better Retention, More Revenue

Emotional Support Animals and the Fair Housing Act

What a Pet-Friendly Apartment Community Truly Looks Like

Apartment Construction to Reach 50-Year High

Apartment Construction to Reach 50-Year High

An estimated 420,000 new apartment rental units are projected to be completed this year, pushing apartment construction to an historic 50-year peak, according to a report from RentCafé.

This construction boom is driven by pent-up demand for apartments nationwide.

“By and large, apartment developers have picked up the pace in both 2021 and 2022, almost unexpectedly exceeding even the most optimistic projections for the post-pandemic multifamily landscape,” the report says.

“The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply-chain issues,” said Doug Ressler, manager of business intelligence at Yardi Matrix.

One big reason why so many metros are set to break their records from the last five years: As Ressler explained, “People who lived with family or friends during the pandemic have formed independent households as employment and savings surged.”

Apartment Construction Highlights:

  • This year, 420,000 new apartments are expected nationwide. Multifamily construction in the last two years is at a 50-year high: Apartment completions last surpassed the 400,000 unit mark set in 1972.
  • New York is poised to surpass the Dallas-Fort Worth metro area in apartment construction, claiming the top spot for the first time since 2018.
  • Half of the top 20 metro areas are estimated to hit their five-year peaks in apartment deliveries this year, including newcomers Nashville, TN, and Portland, OR.
  • The Miami metro, the nation’s most competitive rental market, made an impressive climb back to the top, surpassing super builders like Houston and Austin, TX.
About 420,000 new apartment rental units are projected to be completed this year, pushing apartment construction to an historic 50-year peak
Charts courtesy of RentCafe

Seattle Ranks No. 3 In Apartment Construction

While New York and Miami top the list of new apartment units under construction, the number of Seattle apartments increased by 3,232 between January and June this year to reach the third spot on the list. Portland also ranks high and comes in at No. 17 with Phoenix at No. 6.

However, supply is struggling to keep up with demand — Seattle, like other major coastal cities, has been facing an extreme lack of housing for several years now. And, this pace of construction isn’t likely to slow down anytime soon: Seattle’s population is projected to hit 1 million by 2044 and city officials are already working on updating the One Seattle Plan that also tackles new strategies to add more housing.

The rest of the top 20 cities with most new apartments completed in the first half of the year were: Washington, DCPhoenixLos AngelesQueens, NYCharlotte, NCChicagoManhattan, NYAlexandria, VAPortland, ORNashville, TN; San Diego, CA; and Atlanta.

About the study:

RentCafe.com is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the U.S.

To compile this report, RentCafe’s research team analyzed new apartment construction data across 125 U.S. metropolitan statistical areas. The study is exclusively based on apartment data related to buildings containing 50 or more units. Metros with less than 300 units or less than two properties/buildings were not included.

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How Can I Give Notice of Entry to Non-Responding Tenant?

How should a landlord give a notice of entry to inspect the rental property when the tenant will not respond to the notice is the question this week

How should a landlord give a notice of entry to inspect the rental property when the tenant will not respond to the notice is the question this week for Ask Landlord Hank. Remember Hank is not an attorney and is not offering legal advice. If you have a question for him please fill out his form below.

Dear Landlord Hank:

What is the proper way to give notice to inspect property about smoking smells that neighbors have complained about?

I have emailed and texted the tenant giving 24 hours’ notice for inspection after receiving complaints, but the tenant refuses to receive email and text. She wants postal mail notice, but that takes time.

What is the best way?

-Soo Choi

Dear Landlady Soo Choi,

Most leases have a clause for RIGHT OF ENTRY, saying that you, the landlord, upon reasonable notice by telephone, hand-delivery or posting to the tenant, have the right of entry for repairs, inspections or any other reason.

Your tenant doesn’t get to choose the notice she will look at or read.

Since she is being difficult, I would post a notice on her door that you will be inspecting the next day (after 24 hours have passed) and take a photo of the notice on her door, for your records – and keep a copy, too.

Sincerely,

Hank Rossi

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/

With a non-responding tenant how should a landlord give a notice of entry to inspect the rental property when the tenant will not respond to the notice is the question this week
Landlord Hank says, “Take a photo of the notice on her door, for your records – and keep a copy, too.”

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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Should I Give Separate Leases to Roommate Tenants?

A Tenant Poured Grease Down Drain Who Is Responsible?

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Justice Department Orders Property Management Company To Pay $107,000

Justice Department Orders Property Management Company To Pay $107,000

An El Paso property management company that handles 55 multifamily apartment properties has been ordered to pay $107,000 for alleged violations of the Servicemembers Civil Relief Act, according to a release from the U.S. Department of Justice.

Integrity Asset Management LLC agreed to pay $107,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by charging unlawful fees to servicemembers who terminated their residential leases early and by denying other servicemembers’ requests to terminate their leases.

El Paso is home to Fort Bliss and the 1st Armored Division. There are approximately 90,000 soldiers and family members at Fort Bliss.

The SCRA allows servicemembers to terminate a lease early after entering military service or receiving qualifying military orders, such as permanent change of station orders, orders for a deployment of at least 90 days, stop movement orders, and separation or retirement orders. If a service member terminates a lease due to a deployment or other qualifying military orders, the SCRA prohibits the landlord from imposing any early termination charges.

“The SCRA requires that landlords allow servicemembers to terminate their leases without penalty if they receive qualifying military orders,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said in the release.

“Early lease termination rights are critically important for members of our armed forces as they limit the costs and expenses associated with military moves and deployments. This consent order reaffirms the Justice Department’s firm commitment to protecting the rights of servicemembers, veterans, and their families,” she said.

Unlawful Early Termination Charges

The department filed a complaint in federal court alleging that Integrity charged unlawful early termination fees to at least 17 servicemembers, according to the release.

Some of these early termination fees took the form of “concession chargebacks,” which required the servicemembers to pay back rent concessions or discounts that they had received during their tenancies. These charges ranged from $132 to $2,032 per service member. The suit also alleges that Integrity wrongfully denied two other servicemembers’ lease termination requests.

Under the proposed consent order that was filed concurrent with the complaint, and which still must be approved by the court, Integrity has agreed to pay $45,325 to the affected servicemembers and a $62,029 civil penalty to the United States. The order also requires the property management company to repair the servicemembers’ credit, provide SCRA training to its employees, and develop new policies and procedures that comply with the SCRA.

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Key Takeaways from White House Eviction Reform Summit

The White House hosted a first of its kind virtual Eviction Reform and Eviction Prevention Summit in early August so here is a summary from the National Apartment Association (NAA).

The White House hosted a first of its kind virtual Eviction Reform Summit in early August so here is a summary from the National Apartment Association (NAA).

By Sam Gilboard
National Apartment Association

The White House and the United States Department of the Treasury hosted the White House Summit on Building Lasting Eviction Prevention Reform in early August.

The White House invited federal, state and local policymakers, as well as community advocates, to share feedback on strategies for limiting evictions in the U.S. rental housing market. Discussion also formed around building consensus on how excess American Rescue Plan Act (ARPA) funds, including emergency rental assistance (ERA) dollars, can further efforts in eviction prevention. Notably missing from the summit’s panelists were representatives from the housing industry.

During the summit, chief justices from the Michigan and New Mexico supreme courts discussed court-based reforms in their states that have resulted in positive outcomes for renters facing eviction. Michigan renters were among the first to receive eviction protections for those with pending ERA applications. In New Mexico, the court-ordered eviction-diversion program required, among several provisions, a mandatory extension of lease terms if a housing provider accepted rental assistance. Both speakers highlighted the significant role that courts have played in COVID-19-related policy and the undeniable role they will play in determining future policy solutions.

Policymakers also offered a high-level examination of the programs halting evictions in cities around the country, highlighting the impact of eviction diversion and right-to-counsel programs. In Philadelphia, 85 percent of eviction cases resulted in settlement or agreement to continue negotiations in part due to the city’s diversion program. The city of Cleveland reported that right-to-counsel prevented 93 percent of eviction judgments in cases between August 2021 and March 2022, while Chicago suggests that more than 3,000 renters will benefit from its own $8 million right-to-counsel pilot program, funded through available ERA money.

While these models for eviction reform suggest promising outcomes for renters, they are merely solutions that target symptoms of housing stability, rather than the source. Policymakers must focus on addressing the financial insecurity experienced by so many renters through funding emergency rental-assistance programs and increasing investment in housing vouchers. These means-tested solutions ensure that those most at risk for housing displacement have access to the resources necessary to remain in housing. Simply put, these types of solutions prevent evictions.

Throughout the summit, the speakers reinforced the idea that because of the protections put in place by federal, state and local governments, the “tsunami of evictions” never occurred. The “tsunami” argument was used by many advocate groups to push for longer, more stringent eviction moratoriums  across the country. It is critical to remember that housing providers, working in tandem with their residents and acting in compliance with applicable regulation, bore the responsibility of keeping their communities housed, healthy and safe throughout the pandemic, all the while shouldering lost revenue, deferred maintenance and burdensome moratoriums.

The National Apartment Association (NAA) looks forward to continuing its work with the Biden Administration to pursue solutions that promote safe, quality and affordable housing.

Read NAA and NMHC’s statement for the White House Summit.

For more information on the state and local eviction protections, please reach out to Sam Gilboard, NAA’s Senior Manager of Public Policy. 

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

What Attracts Renters To Smaller Multifamily Properties?

What Attracts Renters To Smaller Multifamily Properties?

Renters living in smaller multifamily properties have lived in their units for one year longer than the average renter, and are slightly less likely to have plans to move out over the next year, according to a new survey from Buildium and Propertyware.

The survey of properties with two to four units is designed to help property managers understand what it is that keeps small multifamily renters in place from year to year, and what will attract new renters to their properties in an environment where they’re frequently competing with more amenity-rich apartment buildings.

While smaller multifamily properties often provide affordable alternatives in more centrally located neighborhoods, the Renter’s Survey found some may be unhappy with their current rental.

The survey shows 40 percent of small multifamily renters feel certain that they’ll renew their lease this year—and an additional 33 percent are on the fence.

Neighborhoods where smaller multifamily residents live tend to be in areas with older properties “because multifamily construction has focused on larger apartment projects since the 1980s,” the report says. This includes neighborhoods in Boston, Chicago, Portland and others.

What Attracts Renters To Smaller Multifamily Properties?
Smaller multifamily properties tend to be older buildings in older neighborhoods more centrally located.
What Attracts Renters To Smaller Multifamily Properties?
Chart courtesy of Buildium

Why Smaller Multifamily Properties Appeal To Renters

While these smaller properties represent only 14 percent of rental properties across the country, they play an important role in housing.

Here are some key reasons why:

  • They allow low- and middle-income renters to live in neighborhoods close to jobs, schools, and other resources by splitting land prices, property taxes, and other costs across multiple units at more affordable price points than newer apartment buildings provide.
  • They give renters access to some of the comforts of a home without leaving centrally located neighborhoods. “In comparison with apartment building residents, the small multifamily renters we surveyed place a higher premium on living in a property that offers private outdoor space and the option to have a pet; and on living in neighborhoods that are safe, quiet, family-friendly, and lower-density,” the Buildium report says. But in comparison with single-family renters, they’re willing to sacrifice a little space to keep work, school, stores, restaurants, and transportation options within arm’s reach.
  • They provide renters with more space than apartment buildings, but less than single-family rentals. “In our survey, households living in small multifamily rentals had an average of two to three occupants living in properties with two to three bedrooms, providing them with a space that’s larger than in a typical apartment building (which house an average of two renters in 1- to 2-bedroom units), but smaller and more affordable than most single-family rentals (with an average of three renters living in three-bedroom properties).”
Income of renters
Chart courtesy of Buildium

Smaller Multifamily Properties Attract Individual Real Estate Investors

The survey found that two-to four-unit properties present a lower barrier to entry for aspiring rental property investors.

As a result, more than three quarters of small multifamily properties were owned by individual investors rather than larger investment firms in 2015.

“In our 2022 survey of small-portfolio rental owners, we found that 41 percent of small multifamily owners only own a single rental property,” the survey says.

Who Lives In Smaller Multifamily Properties?

What Attracts Residents To Smaller Multifamily Properties?
Chart courtesy of Buildium

Small multifamily properties have households that are slightly larger and are more likely to contain couples, children, and adult family members.

These properties also house a slightly larger percentage of couples without kids than other property types do.

What Attracts Renters To Smaller Multifamily Properties?
Chart courtesy of Buildium

Many Smaller Multifamily Properties’ Renters Plan to Stay

The retention rate in these properties is stronger than most.

The survey says 40 percent of small multifamily renters plan to stay put for the next year—4 percentage points higher than the rate among renters overall.

residents plans to move
Chart courtesy of Buildium

“Overall, however, renters seem to be feeling greater uncertainty about whether or not to move than they have for the last few years. This is particularly true for younger renters, as rapidly changing conditions in the rental and housing markets impact the affordability and availability of potential homes,” the survey says.

How Renters Prefer to Communicate in 2022

“When it comes to how renters want to be able to get in touch with their property manager, email remains the most popular method on the whole.

Residents are attracted to these properties
Chart courtesy of Buildium

“However, we’ve seen text messaging rise up the ranks over the last year, particularly among young and middle-aged adults; and in fact, within small multifamily properties, text messaging is now residents’ contact method of choice,” the survey says.

Get the full survey report from Buildium here.

 About the smaller multifamily properties survey:

Buildium says, “In our Annual Renters’ Survey we survey more than a thousand renters across the U.S., with recruiting assistance from Survey Monkey. This year’s survey (conducted in April 2022) gathered the perspectives of 1,569 renters of all ages and living in a variety of rental property types, though this report focuses exclusively on those living in rental homes with between two and four units.”

About Buildium.com

Buildium is the property management solution that helps real estate professionals win new business from property owners and community associations seeking services. Backed by expert advice and relentless support, Buildium enables you to outperform across all facets of your business with intuitive software that balances power, simplicity, and ease of use. Buildium services nearly 13,000 customers in 46 countries, totaling over one million residential units under management. In 2015, Buildium acquired All Property Management, a leading online marketing service for property managers, making Buildium the only company to give property managers a way to acquire new customers and increase revenue.

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