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Allergies and Reasonable Accommodation Requests In Rental Housing

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By The Editors
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A resident requesting reasonable accommodation due to allergies can create a challenging situation for the housing provider.

An upsurge of tenants requesting reasonable accommodation due to allergies can create a challenges for rental housing providers.

By the Fair Housing Institute

There has been a noticeable upsurge of residents requesting reasonable accommodations due to allergies. This is likely due to an increase in people suffering from both chemical and environmental sensitivities. A resident requesting accommodation due to allergies can create a challenging situation for the housing provider. This raises two questions:

  • Are properties required to offer reasonable accommodations for allergies?
  • If yes, what are some best practices to follow?

What Criteria Do Allergies Need to Meet?

In order to determine if an allergy meets the criteria for a reasonable accommodation, we must first determine if the allergy qualifies as a disability. The Fair Housing Act defines a disability as a mental or physical impairment that substantially limits one or more major life activities.

For most of us with allergies, while the reactions may be uncomfortable, it is probably reasonable to state that those reactions do not “substantially limit one or more major life activity,” thereby rising to the level of a disability.

To help you determine whether the allergies meet the criteria, you need to have reasonable-accommodation request and verification forms that can be filled out by a third-party verifier. It is okay for your reasonable-accommodation forms to highlight the difference between a disability and an impairment. Your forms can also include a section for the verifier to provide pertinent information regarding allergy testing to determine what the tenant is allergic to. It is important to note that only a third-party verifier can make the determination if the allergy is in fact a disability and what accommodations need to be met.

If the allergy is not a disability, then management is not legally required to accommodate the resident. On the other hand, if the allergy results in the resident’s throat closing and hives, these symptoms would probably be considered a fairly substantial limitation to major life activities and would meet the criteria for a reasonable accommodation. Now you are faced with how, and to what extent, modifications can be offered. This can be especially difficult in a multifamily setting.

Creating a Reasonable Accommodation Plan

Once a reasonable-accommodation request has been verified, it is time to create a plan that addresses the needs of the resident. The housing provider wants to provide reasonable accommodations, while also not limiting the use of chemicals and products by other residents and staff, particularly those that are critical to building maintenance. This is where open communication to discuss alternatives is critical between the resident, the property owner or manager, and the verifier. HUD and the courts now view the “interactive process” as an essential step by housing providers during the reasonable-accommodation process, whether the property plans to deny or offer the resident an alternative accommodation. Documenting the plan is also a critical best practice and ensures that everyone clearly understands the plan.

Fair Housing Training Is a Must

Dealing with reasonable-accommodation requests can be quite dynamic. Regular Fair Housing training is a must for property-management professionals. Property-management professionals are best served when regularly trained to identify the issues and then discuss them as a team.  If you are not clear on the legal requirements, reach out to a qualified fair housing attorney. The more you know, the better you will be when dealing with complex reasonable accommodation requests.

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.

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Steps to Make Your Community Smoke-Free

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By The Editors
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Steps to Make Your Community Smoke-Free with smoke free policies

We’ve already covered how Smoking Is Bad for Business and Why Landlords And Homeowners Should Go Smoke-free. However, a crucial step in creating real change for you and your residents is adopting smoke-free policies in your building. If you don’t know where to start, don’t worry. We’ve gathered tips and tools to build an action plan. So, here’s how to stop the smoke in your housing once and for all.

Propose the Idea

One of the easiest ways to gauge interest is by talking about it! Sit down with residents in your building and talk about ways to make the complex smoke-free. Remember, there is strength in numbers. Convincing other residents to support the proposal could speed up a plan of action.

Set Your Own Rules

Even if your community allows smoking, there are still steps you can take to protect yourself and your household. One of the most manageable steps you can take is not allowing smoking in your apartment, condo or home. Politely ask people — even house guests — to smoke outside. By doing this, not only do you protect your health, but also your home’s value. The second thing you can do for your own home is to let others know that you’re keeping your apartment or house smoke-free to protect yourself and others from the harm of secondhand smoke. Make it clear that you are not trying to punish smokers, and educate neighbors and friends about the benefits of keeping your home smoke-free.

Offer an Incentive

When advocating to go smoke-free, it never hurts to provide incentives to create positive change. If you provide a designated smoking area, remember to make the space inviting and comfortable to increase its usage. Thank friends and family for helping to keep the community smoke-free. Or, get a landlord or apartment manager to offer non-smoking residents an opportunity to move into vacated units that have been freshly painted or cleaned. Grouping these populations will help create smoke-free buildings within the community.

Change the Lease

If enough residents are ready to make your community smoke-free, change the rental lease to ban smoking in the units, common areas, and patios or balconies. Once put into action, make signs available to residents that indicate a smoke-free community. And be sure to post “No Smoking” signs in common areas, playgrounds, etc.

A Way to Quit

The best way to create a smoke-free community is to eliminate the source of the problem – tobacco addiction. Let residents who may want to quit know about resources to help them stop smoking. And put a plan into action to make your community smoke-free.

If you or any of your neighbors are trying to quit, you can get free quit support from Way to Quit. Its free tools are confidential, available 24/7, and proven to help make your quit more successful. In fact, people who talk to coaches are two times as likely to quit, and you’re three times more likely if you use nicotine patches or gum. Quitting for the last time is possible with free help from Way to Quit.

Why Secondhand Smoke Is Bad for Business

Why Homeowners Should Go Smoke-Free

Secondhand smoke is dangerous for your tenants

HUD Settles with Landlord, Property Manager Over Assistance Animal

By
John Triplett
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HUD Settles with Landlord, Property Manager Over Assistance Animal

A Nevada landlord and property manager have settled with the U.S. Department of Housing and Urban Development (HUD) after they refused to rent to a tenant with a disability who had a dog as an assistance animal, according to a release.

The landlord and property manager agreed to pay $6,500 to resolve allegations of discrimination brought by the prospective tenant with a disability.

Las Vegas landlord, Anwar Malik, and Malik’s property manager, Ahmad Sharif-Yazdi, agreed to the settlement, which resolves allegations that Malik and the property manager discriminated against the prospective tenant by refusing to rent a property to her because she had an assistance animal.

“Not only is it cruel to deny a person with disabilities access to housing because they have a service animal, but it is also against the law,” said Demetria L. McCain, HUD’s principal deputy assistant secretary for fair housing and equal opportunity, in the release.

“This settlement demonstrates HUD’s commitment to protecting the housing rights of persons with disabilities and ensuring they have the support they need to live in the housing of their choice,” McCain said.

Tenant Denied Rental Because of Dog As Assistance Animal 

The case came to HUD’s attention when a prospective tenant filed a fair housing complaint alleging that she was denied the opportunity to rent a house because she had a dog who served as her assistance animal. The complainant alleged that after the lease was signed, the owner and manager learned that she had an assistance animal and refused to rent the house to her because of the dog.

The Fair Housing Act prohibits housing providers from discriminating against persons with disabilities, including refusing to make reasonable accommodations in policies or practices when such accommodations may be necessary to provide them an equal opportunity to use or enjoy a dwelling. Housing providers may not prohibit people with disabilities from having assistance animals that perform work or tasks or that provide disability-related emotional support.

Under the agreement, the owner will pay $6,500 to the prospective tenant, and both the owner and property manager will attend fair housing training and comply with fair housing requirements for reasonable accommodations.

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Welcoming Pets Is a Smart Financial Move In Rental Housing

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By The Editors
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Welcoming Pets Is a Smart Financial Move In Rental Housing

To maximize appeal to today’s pet owners, here is why welcoming pets in rental housing is a smart financial move.

By Judy Bellack

According to the American Pet Products Association, 70 percent of American households own a pet, and pet owners in the United States spent more than  $100 billion on their animals in 2020. The popularity of pets and the amount of money we are willing to invest in them indicates that the traditional definition of a pet has changed dramatically from a cute and cuddly addition to the household to a treasured member of the family who is an integral part of our emotional well-being.

It’s a happy coincidence that multifamily communities can embrace this reality while also boosting their bottom lines significantly. The 2021 Pet-Inclusive Housing Report, which was conducted by Michelson Found Animals and the Human Animal Bond Research Institute, reveals the powerful financial and operational benefits operators can experience by making their communities as pet-inclusive as possible.

The Gains from Being Pet-Friendly

When pet owners find a welcoming environment, they want to stay. According to the PIHI report, residents in pet-friendly rental housing stay about 21 percent longer than those in non-pet-friendly housing (the report defined pet-friendly housing as any housing that allows residents to have at least one pet, regardless of other restrictions). Residents tend to become familiar and dependent on their pet-friendly neighbors and communities, particularly as 72 percent of renters say pet-friendly housing is hard to find. When residents know their neighbors and communities support their pets, why make a change?

If residents are staying longer, that’s fewer units for the leasing team to fill, which means reduced marketing and turn costs. And even when these units are vacated, they’re not on the market for long, resulting in significantly lower vacancy loss. In the PIHI report, 83 percent of surveyed owner/operators state that pet-friendly units are filled faster, and 79 percent say that they are easier to fill. These dynamics free up leasing managers and teams to support and grow communities in other beneficial ways. All of this adds up to more net operating income.

Welcoming Pets Is a Smart Financial Move In Rental Housing
If residents are staying longer, that’s fewer units for the leasing team to fill, which means reduced marketing and turn costs.

The Losses from Restrictions and Not Being Pet-Friendly

Apartment communities can really shoot themselves in the foot if they’re not hospitable to pets. For starters, if a potential resident encounters any issue with being a pet owner, there’s little chance they’ll rent from that community. This is an issue that very few pet owners are flexible on since nobody wants to give up a member of their family.

Furthermore, communities often are housing unauthorized pets when they have restrictive pet policies and, in turn, are losing out on potential pet-driven income. According to the PIHI report, about 11 percent of pet owners reported leasing with unapproved pets. As a result, owner/operators are missing out on more than $1.5 billion in potential revenue each year in the form of pet fees and deposits from pets already residing in the community.

Restrictions on size and breed continue to be one of the biggest struggles pet owners face. While 76 percent of owner/operators say their units are pet-friendly, only 8 percent of those are free of restrictions. That stance can definitely have a negative impact on a community’s revenue. Consider this: of the top 10 breeds in the United States according to the American Kennel Club, six would be excluded due to typical multifamily weight and/or breed restrictions.

Broadly speaking, it’s time for operators to consider relaxing their breed and weight restrictions for pets in rental housing. Many restrictions are based on decades-old research that has been denounced even by the organizations that conducted it. In addition, there are services available that run background checks on specific pets and owners to give communities a better understanding of the individual animals renters are bringing with them.

If residents are staying longer, that’s fewer units for the leasing team to fill, which means reduced marketing and turn costs
Consider increasing the number of pets permitted in each unit.

Ways to Make Communities More Pet Inclusive

Even with many communities considering themselves pet-friendly, more than 70 percent of pet-owning residents reported difficulty in finding suitable housing, largely due to restrictions. Clearly, this presents a huge opportunity for rental-housing operators.

To maximize appeal to today’s pet owners and to enjoy the resulting financial benefits, consider the following steps for pets in rental housing:

Rework pet deposits: Fewer than 10 percent of pets cause any damage, so consider using regular security deposits, or raise them slightly, to pay for the relatively little damage they do cause. And if you can’t entirely eliminate these fees, offer to waive the pet deposit or offer a free month of pet rent for first-time residents.

Remove/reduce breed and weight restrictions, and consider increasing the number of pets permitted in each unit. This is not to suggest allowing a resident to have 12 dogs, but it could be beneficial to increase your allowable pets to two per household, for instance. To pave the way for changes like these, check with your insurance company and secure a policy that is more pet-friendly. On the resident side, mandatory renter’s insurance policies can help with any pet-related claims. Again, there are many misconceptions about large dogs and certain dog breeds; the rule of thumb is that concerns are associated with individual dogs, not a category.

Implement an easy-to-use screening process: New services make it easier for communities to screen individual owners and pets for issues. Using these technologies also assures all residents that you’re working to have a community with safe and well-behaved pets. Make sure your process is easy to use. Furthermore, getting residents to sign agreements that outline acceptable pet (and owner!) behaviors, policies and disciplinary action can protect the overall well-being of the community and ensure that any pet-related issues are handled promptly.

Embrace pet amenities: There are countless amenities that create a more pet-friendly community. Dog parks, washing stations, waste stations and pet events are all great ways to let residents know you care. Consider partnering with a local shelter to connect your residents with opportunities to adopt or foster pets and waive any pet fees if they do.

Apartment owners and operators are always looking for an edge over the competition and the next thing that’s going to boost a community’s performance. In today’s pet-obsessed world, creating a truly welcoming environment for pets is a great way to attract and retain residents and boost the bottom line.

About the author:

To maximize appeal to today's pet owners, here is why welcoming pets in rental housing is a smart financial move for landlords.

Judy Bellack is the industry principal for the non-profit Michelson Found Animals Foundation, helping to advance the Pet-Inclusive Housing Initiative. She is a 30-year veteran of the multifamily industry, holding various executive leadership positions with some of the foremost supplier companies. Judy has served both as Chair of NAA’s National Suppliers’ Council and NMHC’s Supplier-Partner Alliance and was the recipient of NAA’s Outstanding Supplier in 2010. She currently operates a consulting practice advising start-up technologies in the multifamily space.

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Who Is Responsible For Replacing Dead Smoke Detector?

By
Hank Rossi
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A landlord wants to know who is responsible for replacing dead smoke detector in his rental property and tenants are not telling him about it

A landlord wants to know what to do if there is a dead smoke detector in his rental property and tenants are not telling him about it or fixing it is 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.

Hi Hank,

Who is responsible for replacing a dead smoke detector, tenant or landlord? If the landlord is, what actions can I take, as landlord, if the tenants know about it and won’t replace it? — Travis

Dear Landlord Travis,

This question comes down in part to your lease.

Is the responsibility for a working smoke detector clearly defined as tenant responsibility?

My lease indicates the tenant is responsible for smoke detector batteries and, if the detector is not working, to notify the landlord.

If smoke-detector responsibility is not addressed in the lease, then, in my opinion, you can’t blame the tenant for its functionality.

If tenants are responsible for batteries and it is a dead detector, then I as the landlord would buy new ones and install them.

If the lease states the smoke detectors are clearly tenant responsibility, I would talk to them and then put a seven-day notice on non-compliance on their door, since they are in default on the lease and could be evicted.

This is a serious issue for the health and safety of your tenants, not to mention that your property could be at serious risk of fire with no warning. Move quickly on this – it -seems a small issue but it could be life-threatening.

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/
Ask Landlord Hank -A landlord wants to know who is responsible for replacing dead smoke detector in his rental property and tenants are not telling him about it
Landlord Hank says, “My lease indicates the tenant is responsible for smoke detector batteries and, if the detector is not working, to notify the landlord.”

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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Do I Have to Paint and Replace Flooring for a Long-Term Tenant?

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Rent Controlled Markets Feel Reduction in Multifamily Investments

By
John Triplett
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Rent Controlled Markets Feel Reduction in Multifamily Investments

A new survey shows that almost 60 percent of multifamily firms indicate they are reducing or avoiding investment in rent-controlled markets, according to the National Multifamily Housing Council (NMHC).

An additional 15 percent say are considering cutting back in those markets. Conversely, only a quarter (27 percent) of firms are willing to keep their current or add new investments in rent-controlled markets.

“Policymakers in places like Boston, Minneapolis, Florida, Colorado and others continue to pursue counterproductive rent-control policies, causing a reduction in housing investment and exacerbating the very problem rent control purports to solve,” the NMHC said in the statement.

The survey also asked about specific cities or states with existing rent-controlled markets or those threatening rent control in the future.

A majority of the respondents said they were avoiding specific markets in California, or Califonia as a whole.

Other markets and the percentage indicating they have the potential to be markets where developers are avoiding the area:

  • New York – 29 percent
  • Minnesota – 23 percent (Minneapolis/St. Paul in particular)
  • Washington or Seattle – 19 percent
  • Portland or Oregon specifically – 16 percent

Additional markets mentioned that are concerning and may be avoided as they could become rent-controlled markets: Illinois (Chicago), Maryland, Massachusetts (Boston), Connecticut, and Colorado (Denver).

The statement said “NMHC has been making the case for decades that rather than improving the availability of affordable housing, rent-control laws only exacerbate shortages, cause existing buildings to deteriorate and disproportionately benefit higher-income households.

“And as some states and localities continue to pursue counterproductive rent-control policies, this data will be an important tool as we continue to set the record straight and advocate for more effective solutions to the housing shortage and resulting affordability crisis.”

Additional information is available at www.growinghomestogether.org and www.nmhc.org/rentcontrol.

Los Angeles Won’t Allow Rent Increases for Most Apartments Until 2023

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Promising Start in January for Multifamily Fundamentals

By
John Triplett
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Rents were up moderately in most markets in January, when rent growth is normally slow, indicating multifamily fundamentals are still strong Yardi Matrix reports

Rents were up moderately in most markets in January, when rent growth is normally slow, indicating that the multifamily fundamentals are still strong, Yardi Matrix says in its latest report.

Multifamily fundamentals appear strong as “demand drivers remain healthy, producing strong rent and occupancy performance and attracting debt and equity investors into the sector.

“Property sales, pricing and mortgage origination are at all-time peaks,” the report says.

How hot is the market?

Seasonality in rents is normal in January, a traditionally weak month for rent. However, multifamily asking rents bucked the usual trend, rising $8 during the month to an all-time high of $1,604.

It took only seven months for the average asking rent to hit $1,600 from $1,500, and only 10 months to reach $1,500 from $1,400.

Highlights of the report:

  • Year-over-year growth increased to 13.9 percent, a new high and up 30 basis points over December, but that number will decline as monthly increases decelerate compared to a year ago.
  • An $8 monthly increase pales in light of the $22 average monthly gains between March and October 2021, but January’s strong seasonal performance is a sign that the sector’s fundamental drivers have not been exhausted.
  • Single-family rentals also started the year strong. SFR rents are up 13.5 percent year-over-year through January. The national occupancy rate increased by 0.2 percent year-over-year through January.

The report cites Freddie Mac’s 2022 strong multifamily outlook

Freddie Mac’s 2022 multifamily outlook sums up the solid circumstances. “The strong economic conditions along with unprecedented levels of demand for multifamily housing have combined to create robust apartment market conditions in 2021,” the report said.

“While there are still uncertainties, such as increasing inflation or more transmissible variants of the COVID-19 virus … the multifamily market is expected to be on solid ground in the short term.”

Capital flowing into multifamily

Yardi Matrix says multifamily capital markets conditions “are exceptional entering 2022. Investors are seeking to deploy debt and equity in assets with strong fundamentals, while property owners want to take advantage of rock-bottom interest rates.”

Added together, that has produced record-high transaction flow and prices. Acquisition yields continue to shrink even as Treasury yields rise.

“Every capital source has a really strong appetite for placing (multifamily) mortgage debt this year,” says Jamie Woodwell, vice president of research and economics for the Mortgage Bankers Association, in the report.

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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Oregon State Auditor to Review Rental Assistance Funds Payments

By
John Triplett
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Oregon State Auditor to Review Rental Assistance Funds Payments Oregon Emergency Rental Assistance Program funds will be audited by the director of the office’s audit division following criticism

The audit division of the Oregon secretary of state’s office says in a statement that the Oregon Emergency Rental Assistance Program funds will be audited by the director of the office’s audit division, Kip Memmott, according to reports.

The Portland Business Journal first reported the audit after a records request.

In an email to the state housing agency, Memmott said his office would release an audit plan to the public after briefing legislators. Memmott heads the audit division under Secretary of State Shemia Fagan.

“The state is facing criticism for stopping the application process for these funds even though it has been reported that Oregon was one of the timeliest states issuing rental assistance,” a description of the audit provided by Memmott said. “Issues cited by legislators and other stakeholders include technical challenges with rental-assistance software and public communication challenges.”

Oregonlive.com reported that while the program has sent funds to 38,000 households, distributing more than $268.1 million since June, the state has yet to pay out funds to another 32,000 applicants.

Both landlords and tenants have been waiting for weeks with pending requests for rental assistance and no communication or updates on the status of their applications.

Sen. Kayse Jama, D-Portland and Rep. Julie Fahey, D-Eugene, chairs of the legislative housing committee, called for an audit of the program during the December special session to address evictions. The lawmakers wrote to Fagan at the time that they were “deeply troubled” by the lack of communication from the agency to landlords and renters and the inconsistent distribution of funds across counties.

Deborah Imse, executive director of Multifamily NW, wrote in December that failed state software for emergency rental assistance was hurting families in Oregon.

“As with the landlord fund, the emergency rental-assistance program has been plagued by system crashes, ineffective notification processes and a serious lack of clear communication from administrators. Applications have piled up, leaving renters’ requests for help in limbo for months. And landlords have spent hours — if not days – online, with no assurance that their renters’ applications had even made it into the program,” Imse wrote.

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Kay Properties & Investments Has Record Year With $610 Million In Equity Placed

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By The Editors
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Kay Properties & Investments Has Record Year With $610 Million In Equity Placed for investors

Kay Properties, which operates one of the nation’s largest 1031 exchange property and real estate investment marketplaces, announced today it had posted another record year after successfully placing $610 million in equity for accredited investors participating in 1031 exchanges and direct cash investments.

This continued record growth represents a 49.5 percent increase over last year’s $408 million in equity placements.

Year-End Highlights:

  • Kay Places $610 Million of Equity Investments in 2021
  • Kay Grows Its Fully Integrated Real Estate Team and Robust Online Real Estate Investment Platform

Founded by CEO Dwight Kay, Kay Properties & Investments is considered one of the most experienced and knowledgeable investment firms in the country specializing in Delaware Statutory Trust (DST) and private equity real estate investments. The firm was established in 2010 with the emphasis on providing real estate investment options to high-net-worth clients looking for passive real estate ownership. In addition, Kay Properties believes it has created one of the largest 1031 exchange and real estate investment online marketplaces in the country that generates some of the largest DST 1031 investment volume in the United States. In 2021, for example, Kay Properties clients participated in thousands of transactions, and the $610 million of equity invested through the Kay Properties platform was invested in more than $8 billion of real estate offerings totaling approximately 50 million square feet of multifamily, manufactured housing, single tenant net lease, industrial, self-storage and medical properties nationwide.

Unparalleled Online 1031 Exchange Real Estate Marketplace Platform

“The kpi1031.com online marketplace has truly become a best-in-class robust platform connecting high-net-worth investors with quality real estate offerings as well as a place for real estate sponsors and operators to connect with tens of thousands of high-net-worth investors seeking to deploy capital into real estate offerings. We think the platform creates a perfect match for all sides of the 1031 exchange and real estate investment equation. This success over the years comes from hard work and dedication to our clients and team members as well as ultimately, beyond anything else, from the Lord,” said Dwight Kay, Founder & CEO of Kay Properties & Investments.

Kay explained that most investments made on the Kay Properties platform are for DST 1031 exchange replacement properties followed by a growing number of cash investments into real estate funds and other vehicles. DST investments are an allowable option for replacement properties for investors who have recently sold other real estate assets and are seeking to defer taxation on their gains, enter a passive management structure, and potentially broaden their geographic and real estate asset diversification* by reinvesting the proceeds in qualifying properties. So-called “like-kind exchanges” are allowable under U.S. Internal Revenue Code Section 1031 and DST investments have grown in popularity among accredited investors over the past decade.

“While it is true that a large amount of people investing through the kpi1031.com marketplace are seeking like-kind exchange properties, it is also true that the platform attracts many high-net-worth investors who are interested in participating in the offerings on the company’s marketplace with direct cash investments, a trend that we are seeing growing tremendously,” stated Kay.

Remarkable Year for Delaware Statutory Trust 1031 Exchange Investors

According to Kay, 2021 was a remarkable year for both Kay Properties and the entire 1031 exchange property market, including DSTs.

“Investment properties have gone through significant changes over recent years, and in many cases, owners have been faced with challenges they have never seen before, including the COVID-19 pandemic. For property owners who were motivated to sell during 2021 and were facing capital gains, reinvesting the proceeds via a 1031 exchange into qualifying properties including DSTs allowed them to not only defer capital gains taxes but also become part of a diversification* strategy with the potential for appreciation and monthly income*,” explained Kay.

Client-Centric and Emphasis on Educating Investors

2021 also extended and reinforced the established success of the Kay Properties business model that emphasizes both client relations and DST education.

“When I started Kay Properties, I had a vision of creating a hyper-client-centric business model that emphasized the utilization of tax efficiencies afforded to investors through the 1031 exchange and real estate investments and potentially reduced risk for investors through a fully-integrated real estate investment platform. This platform includes a growing team of DST 1031 experts and back-end support specialists that provide Kay clients deal sourcing, due diligence, transaction coordination, investor relations, in-house accounting, legal, finance and asset analysis. We also support potential investors through exclusive educational programs that are presented in an effort to keep investors fully informed of opportunities and potential risks that they must be aware of. The model has worked out well, and the year-end results of 2021 proves this out,” said Dwight Kay, Founder and CEO.

The result has been that Kay Properties has assisted thousands of high-net-worth investors across the country successfully complete 1031 exchange and direct investments, into real estate opportunities via the Kay online real estate marketplace at kpi1031.com.

“We also would like to thank all of our loyal and many times repeat investors from over the years as well as the numerous DST sponsor companies and other real estate operators with whom we have worked closely. We will continue to work tirelessly on behalf of all of our thousands of investors, team members and industry sponsor partners to, God willing, continue this great path forward in 2022 and many years to follow,” said Kay.

Ask Bill Exeter

Ask Bill Exeter and his team your questions about 1031 exchanges and he and his team will get back to you.

Name

Investors can view current offerings on the Kay Properties online marketplace at www.kpi1031.com.

*Diversification does not guarantee profits or protect against losses. Potential cash flow, potential returns and potential appreciation are not guaranteed.

About Kay Properties and www.kpi1031.com

Kay Properties had a record year after placing $610 million in equity for accredited investors participating in 1031 exchanges

Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 150 years of real estate experience, are licensed in all 50 states, and have participated in over $30 Billion of DST 1031 investments.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.

Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital , member FINRA, SIPC.

Delaware Statutory Trusts & Investing Across Real Estate Market Cycles

7 Things You Didn’t Know Your Landlord Insurance Policy Covers

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By The Editors
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7 Things You Didn’t Know Your Landlord Insurance Policy Covers

Here are 7 things you may, or may not know, that your landlord rental insurance policy covers.

By Kara McGinley

Landlord insurance is similar to homeowners insurance, except it’s designed to protect those who rent out their properties for passive income. Also called rental-property insurance, landlord policies offer coverage in case your rental property is damaged, becomes unlivable after a bad storm or fire, or if someone is hurt on your property. But there’s more to it than that. We dig deeper into seven things you may not have known your landlord insurance policy covers.

1. Protection for your rental property against different types of damage

If your rental building or other structures on your property like a fence or shed are damaged in a fire or hailstorm, your landlord policy can help pay to repair them.

While you’ll need to check your specific policy to see what perils are included, here are the most common causes of loss that are typically covered:

  • Fire and lightning
  • Smoke
  • Wind and hail
  • Damage from falling objects
  • Freezing of plumbing and heating
  • Damage by vehicle or aircraft
  • Explosions
  • Civil commotion and riot

Depending on your policy, accidental property damage caused by your tenants may even be covered, for example if someone accidentally causes a kitchen fire that damages your property unit.

Just keep in mind you have to first pay a deductible for a property-damage claim before your insurer will reimburse you. A deductible is the amount you’re responsible for paying out of pocket before insurance kicks in. You choose your deductible when you purchase your policy, and it can typically be set at anywhere from $500 to $2,000.

2. Protection against certain types of sudden water damage

Your landlord policy may reimburse you if your rental property is damaged by a burst pipe or water heater.

That said, landlord policies exclude coverage for water damage from sum-pump or drain backups. But you may be able to add additional coverage, called an endorsement, to your policy for this. Landlord insurance also excludes coverage for flood damage — you’ll need a separate flood insurance policy for that protection.

3. Loss of your rental income

If your rental property is badly damaged and your tenants aren’t able to stay there while it’s being repaired after a covered loss, your landlord policy can help cover that loss of rental income while your property is being repaired.

Called fair rental-value coverage, it’s typically 20 percent of your property’s dwelling coverage limit. Your payments end once your property is repaired and can be rented out again, or after 12 months — whichever comes first.

4. Payment for minor medical bills if someone is injured and you’re responsible

If a tenant or their guest is injured while on your property and you’re responsible — say a loose handrail results in someone falling down the stairs — your landlord policy’s premises medical protection can help pay for their reasonable medical expenses, like x-rays, first aid, or an ambulance.

5. Payment for legal fees and expensive medical bills if you get sued over someone’s injury

If a tenant or their guest is very badly injured on your property and needs extensive medical attention — say they need surgery — your landlord policy’s liability coverage can help cover those costs if you’re found responsible. And if the injured person sues you over the matter, your liability coverage can help pay for the legal fees.

6. Some coverage for burglary and vandalism to your rental property

Landlord insurance may offer some protection against burglary and vandalism, but it won’t cover you if your tenant vandalizes or steals your stuff. You can typically purchase additional vandalism and burglary coverage if you want to better protect your property with higher coverage limits.

7. Protection for your rental property appliance and equipment used for upkeep

Equipment you own that’s essential to your rental property or used for maintenance is also covered by your landlord policy. This typically includes:

  • Dishwashers
  • Washers and dryers
  • Refrigerators
  • AC units
  • Lawnmowers
  • Snowblowers
  • Leaf blowers

But property like clothing or your guitar collection that you left in a rental unit likely wouldn’t be. Your tenants’ personal property is also not covered — they’ll need their own renter’s insurance policy to protect their belongings.

About the author

Kara McGinley is an editor and licensed home insurance expert at Policygenius, where she writes about homeowners and renters’ insurance. As a journalist and as an insurance expert, her work and insights have been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

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