U.S. homebuyers are facing monthly mortgage costs that are 52% higher than the average monthly apartment rent, according to a recent analysis by CBRE Research, a real estate and investment insight firm. Placing that number into sharper focus: monthly mortgage payments, including taxes, have risen by 70% since 2019.
Wow.
While that’s a staggeringly discouraging figure for the prospect of living the traditional ‘American Dream,’ it should be a rallying cry to apartment marketers everywhere. Not only is this an opportunity to create campaigns and strategies targeting the generations most impacted by this dynamic – Millennials and Gen Z, ages 18-44 – it also signals a broader opportunity to redefine the American Dream around renting as a more affordable, flexible lifestyle choice with fewer financial surprises.
What do current data tell us about these generational groups? Here are just a few significant points:
55% of young adults aged 18-34 believe purchasing a home is “much harder” than during their parents’ prime homebuying years. (Pew Research Center)
One in three GenZ adults say homebuying is out of reach financially. (Freddie Mac)
GenZ adults acknowledge the benefits of renting, citing flexibility (76%), being close to the “action” (65%), and less stress than owning (63%) as positives. (Freddie Mac)
Younger generations are grappling with student loan debt (43% of Millennials and 28% of GenZ), making it harder to save for a down payment. (Bankrate)
Home lenders have become extremely selective when extending mortgages to first-time homebuyers. (Chandan Economics)
What else do we know about these groups? Well, among other things, we know quite a few of them have pets. Gen X and Millennials/GenZ comprise 79.5% of pet owners, according to the Pet-Inclusive Housing Report. And they love their pets!
GenZ and Millennials consider their pets when making a home purchase/rental decision up to 10 ppts more often than older generations. (APPA)
The percentage of multi-pet households has risen steadily over the past several years, but this increase is almost entirely explained by Gen Z and Millennial households (as much as 18 ppts higher than older generations), which are also driving rental demand.
The human-animal bond continues to grow significantly year after year across generations. (HABRI)
Gen Z and Millennials take their pets to the vet more often than previous generations. (APPA)
It’s a great combination for the increasingly pet-friendly rental housing industry . . . prospective residents who will be renting longer, and who will be looking for rental housing that accommodates their pets. Since we know that pet-owning renters stay longer to begin with, this bodes well for the industry as rent growth slows, and the NOI boost from residents representing lower turn costs and vacancy loss should garner every savvy operator’s interest.
There’s yet another twist to this dynamic for operators who really want to turbo boost their ability to capture these younger pet-owning renters who are postponing/foregoing homeownership – and that is to allow even more pets by becoming truly pet inclusive. Typical ‘pet-friendly’ weight and breed restrictions eliminate a large component of this renter pool, and frankly, these restrictions are outdated and lacking supportive data. That’s not inclusive at all.
Most animal behavior authorities agree that breed is not a valid measure of whether or not a dog may display aggression; instead recommending that individual behavior is both a more accurate and safer method for determining restriction. Defining acceptable dog size as 30 or 40 pounds in a country where the majority of dogs are over 35 pounds also limits the renter pool and again, is outdated when you consider that only 9% of pet-owning units report damages, and those damages average only $210.
In a nutshell, Gen Z and Millennials are renting longer, have more households with pets, have more pets per household, and will only continue to grow as a component of multifamily renter households. Are you poised to welcome this growing market group?
Background screening is a crucial step in the tenant selection process. In today’s competitive rental market, landlords and property managers need to take extra precautions when considering prospective tenants in order to protect themselves from loss of revenue and property damage. Knowing how to read and interpret background screening results will help you make the best decision possible for your properties.
As you know, one piece of information that should always be checked is a prospective tenant’s credit report and rental credit check score. A good credit record means they are less likely to have issues with paying rent on time or damaging your property – both critical factors in renting out units. The higher the number , the better their history has been with debt repayment, which makes them more desirable as a potential renter.
But just as important in your decision-making process are the other reports available to you. Each is designed to give you a more thorough picture of your applicant over the last seven years than their credit report alone can provide.
Nationwide Bankruptcies, Tax Liens and Civil Judgments
When a person or business cannot repay their outstanding debts, they can file with the bankruptcy court to seek relief from their creditors. Those creditors may or may not receive some or all of the money owed to them. A tax lien is a lien imposed by law upon a property to secure the payment of taxes while a civil judgment is a ruling against a defendant in a court of law. The judgment can arise from small claims, unpaid debts or property damage caused by negligence.
Until the major credit bureaus decided to eliminate bankruptcies, tax liens and civil judgments from credit reports a few years ago, a landlord running a credit check could see if their applicant had any of these problems in their past. Now, it is necessary to order a separate search for these important items.
Social Security Number (SSN) Fraud Check
Identity theft is a growing crime, so it is important you verify that your applicant is who they present themselves as. An SSN fraud search will comb through more than 19 billion public and proprietary records to verify potentially fraudulent identities.
State or Nationwide Eviction Search
The eviction search is one report you hope will come back marked “no records were found.” Unfortunately, this determination may not tell the whole story. Utilizing the applicant’s Social Security Number, the database is searched for eviction filings and judgments for the past seven years.
But only cases that went through the court system will appear on the report. The tenant may have been late with their rent payments and asked to leave by the landlord without going through the expensive steps of taking them to court. If legal proceedings were not filed and a judgment not rendered, it will not appear in the eviction search results. In addition, the fact that a record was discovered does not necessarily mean that the applicant was actually evicted from an apartment or was found to owe back rent. Many times, a lawsuit may be filed in error or deemed by the court to lack merit. Ordering a Previous Address Tenant History and a Landlord Verification report will give a much fuller picture of the applicant’s rental background.
Previous Address Tenant History (PATH)
Using the applicant’s Social Security Number, the PATH report searches consumer credit databases, telephone companies, city and state public records and over 100 additional data sources. The results will include all names associated with the Social Security Number, including aliases and phone numbers, reporting dates, the approximate year the SSN was issued and whether the individual is deceased.
In addition to possible addresses and in what county each address is located, you will learn how many jurisdictions they have lived in. If they have lived in more than one county during the last seven years, you might want to order additional County Criminal Searches.
An unusual number of reported addresses and/or phone numbers does not necessarily indicate anything negative. These sections often contain business/work addresses and phone numbers and other random numbers. Review them with the applicant to determine whether they are a true red flag.
State or Nationwide Criminal Search
The Fair Credit Reporting Act (FCRA) limits a criminal records search to the past seven years and includes all records where the individual was convicted. Arrests without conviction are not included. The search covers the Circuit, Municipal, Superior and/or District Courts and includes the most current and past felony and misdemeanor convictions as well as some traffic violations. The results will show the defendant’s name, any aliases, date of birth, county case number, charge and disposition. The databases are updated weekly or monthly depending on the jurisdiction. It should also be noted that criminal search results are subject to various laws which may limit or restrict the ability to display certain results.
Sex Offender Report
The sex offender search is similar to the criminal search and also goes back seven years. Results are for convictions only and do not include arrests. In addition to all 50 states and Washington, D.C., records are pulled from 150 American Indian Tribes, American Somoa, Guam, Northern Mariana Islands, Puerto Rico and U.S. Virgin Islands. The databases are updated monthly.
TeleCheck Check Verification
This report is important because it indicates whether your applicant has written bad checks. Check transactions that have been sent through the TeleCheck system are analyzed for bad activity. Checking account information is also examined. More than 374,000 business locations count on TeleCheck for their check acceptance services.
The company’s continually updated database includes more than 51 million bad check records. If your applicant has a history of passing bad checks, it will show up in the TeleCheck Check Verification report along with their full name, driver’s license number, its state of issue and whether they are approved for check acceptance. The prospective tenant’s driver’s license number or state-issued ID are used to prepare this report, so be sure to include it when you place your order.
OFAC, Terrorist Databases and Federal Jurisdictions Searched
The search results from the Office of Foreign Control (OFAC) can include some of the most serious national and international crimes, such as kidnapping, smuggling, identity theft and tax evasion. Results are culled from the Federal and Interpol Most Wanted lists and include the past criminal record of the defendant and the seriousness of their crime.
Terrorist and narcotics traffickers are included in the OFAC search and results have their full name, date of birth, address, country and any aliases. It offers in-depth information on terrorist incidents, groups, trials, leaders and members. Updated monthly, these databases also include criminal convictions for counterfeiting, hijacking, mail fraud, embezzlement and more.
Whenever you are leasing out your home or an apartment to a tenant, it is vital that you perform a comprehensive background check. It can be tempting to only do the bare minimum and trust your intuition, but that is not enough. A thorough background check will help ensure that they are responsible people who won’t cause any problems for you or your other tenants in the future. The information provided with these reports can give you all of the details on what kind of person they are, so make sure to read them thoroughly.
National rent prices finally moved up slightly in February after six months of declines, according to the March report from Apartment List.
“This turnaround is in line with the rental market’s typical seasonal pattern, as we transition into the time of year when moving activity starts to gradually pick back up after bottoming out around the holidays,” the Apartment List Research Team writes in the report.
Rent prices ticked up 0.2 percent in February and currently the nationwide median rent stands at $1,377.
Rent inflation is receding
The Apartment List report says the rental market slowdown in gradually showing up in inflation numbers and has been visible in their reports over the past few months.
While the apartment rental market has cooled and apartments are generally less expensive than a year ago, the national median rent is still more than $200 per month higher than it was just three years ago which has contributed to inflation numbers.
The Wall Street Journal reports in an article that rent costs have been driving inflation numbers for months in official federal data. Prices in other areas may be responding to the Federal Reserve interest rate increases but rent costs are not.
“So, it’s been a bit of a mystery to economists why rent hasn’t followed suit. That’s especially because almost every data source, except the consumer price index kept by the Bureau of Labor Statistics, shows that those costs actually are cooling significantly — or even falling — since growth peaked early last year,” the Wall Street Journal reports.
Part of the problem with measuring rents and inflation the way the government tracks data is that a rental unit is only captured in the government surveys every six months, even if the rent changed during that period. The Bureau of Labor Statistics tracks rents for all tenants, not just those starting new leases — people staying put for a year or more might not see their costs change as rapidly.
But economists and others are not sure why the difference remains so pronounced month after month.
“We’re watching a big mountain of snow melt, and every 10 minutes, we look and there’s still a big pile of snow,” said Igor Popov, chief economist at Apartment List told the Washington Post. “We’re just watching it so carefully it doesn’t feel like we’re seeing much progress.”
Vacancy continues to rise
“On the supply side of the market, our national vacancy index continues trending up and stands today at 6.6 percent. And with this year expected to bring the most new apartment completions in decades, we expect that there will continue to be an abundance of vacant units on the market in the year ahead,” the report says.
What Lies Ahead?
“Historical seasonal patterns suggest that rents will continue trending up for the coming months, but we expect future rent increases to be moderated by a robust construction pipeline delivering new units throughout the year.
“With consumer sentiment about broader macroeconomic conditions beginning to improve, it’s possible that rental demand will also rebound in the year ahead, but likely not to an extent that would outweigh the impact of all the coming supply,” the report says.
The National Multifamily Housing Council (NMHC) has released their Pulse Survey on Operational Impact of Rental Application Fraud and Bad Debt, which was conducted from November 15, 2023, to January 9, 2024, with some unsettling results. For instance, 93.3% of the apartment owners, developers and managers who responded to the survey stated that they had been subjected to some form of fraud in the past 12 months.
Over 80% of respondents stated they had experienced applicants misrepresenting information on applications that included falsifying or fabricating pay stubs and doctoring employment references and income. 70% reported an increase in fraudulent activity over the past 12 months that included identity theft, deceptive ID documents, misleading financial statements or use of another individual’s personal information, such as their Social Security Number.
The availability of artificial intelligence (AI), photo editing software, high-quality digital cameras and personal scanning devices make it quite easy for fraudsters to falsify documents in their favor. Fake pay stubs, credit scores, social security numbers, and bank account statements are easily available online to help tenants qualify for apartments they otherwise wouldn’t have been able to lease.
Although the survey was national, according to the results, “many (46.9% of this group) called out Atlanta, specifically, as a jurisdiction where increases in fraud were most concentrated. Texas and Florida were also cited by several respondents as having a higher than average concentration of fraud increases.”
Other unlawful activities noted by those surveyed included the use of fraudulent checks or other payment methods, unauthorized cohabitants, illegal subletting or other actions to evade application or the leasing process.
What does this rise in illegal activity mean to multifamily landlords?
According to the NMHC, “the rise in false rental housing applications is exacerbating rental costs, fueling the housing affordability challenges facing communities across the country and undermining the credibility of eviction data. These fraudulent incidents consist of a wide range of wrongdoing, including criminal behavior.”
If a landlord discovers false information on a rental application after a tenant has signed a lease, the tenant may be subject to eviction and may even be requested to leave the premises without notice. Additionally, if they are evicted for lying on a rental application, the judgment will appear on future credit reports and background screenings, causing trouble for the fraudster when filling out future applications.
“While most renters are honest, those who are not are causing the cost of rental housing to increase for everyone,“ said NMHC President Sharon Wilson Géno. “Additional delays in many jurisdictions in the lease enforcement process, even when there is clear fraud, incentivizes bad actors and means that this illegal behavior costs responsible renters even more. We call on lawmakers and courts to take action that will address this problem.”
One notable survey finding is that nearly one-quarter, or 23.8%, of eviction filings stemmed from fraudulent applications and the subsequent failure to pay rent over the past three years.
How can I protect myself from application fraud?
Now, more than ever, landlords must be more vigilant and avail themselves of the tenant screening reports and landlord credit checks offered by the American Apartment Owners Association (AAOA). Trusted by property owners for over 20 years, AAOA’s services are more in demand than ever by cautious landlords who appreciate the ability to see an applicant’s credit, criminal, eviction and other reports almost instantly.
Following are some of the important screenings offered by AAOA:
Credit report and score. A comprehensive AAOA credit report includes the creditors to whom the applicant owes money, how much of their available credit remains, whether they pay their bills on time and if they have been put in collection during the last seven years.
TeleCheck Check Verification. Utilizing the applicant’s driver’s license number, this report will tell you if they have had a history of writing bad checks over the last seven years.
Previous Address Tenant History (PATH). Any addresses and phone numbers associated with the prospective tenant’s Social Security Number (SSN), including places where they lived and worked, will be listed.
Landlord Verification. You’ll want to know what kind of a tenant your applicant has been in the past. A call to their last landlord will tell you if the tenant paid their rent on time and treated the property with respect, leaving it in good condition. Did they abide by the landlord’s rules regarding pets and smoking and were they good neighbors? And most tellingly, would they rent to them again?
Employment Verification. The current employer is contacted to confirm employment status, such as dates of hire and whether they would hire the applicant again. Landlords can also order verification of past employment.
Social Security Number Fraud Check. Over 19 billion public and proprietary records will be searched to verify any potentially fraudulent identities. Results will indicate the year the SSN was issued, the state in which it was issued, whether the number was issued to the applicant or if the owner of that number is deceased.
Nationwide Eviction Search. Utilizing the applicant’s Social Security Number, the database is searched for eviction filings and judgments for the past seven years.
Nationwide Criminal Search. This search will include all records from the last seven years to see if the applicant was convicted of a crime. Arrests without conviction are not included in the results.
Sex Offender Report. The sex offender search is similar to the criminal search and also goes back seven years. Results are for convictions only and do not include arrests.
OFAC, Terrorist Databases and Federal Jurisdictions Searches. These reports provide information on some of the most serious national and international crimes, such as kidnapping, smuggling, identity theft and tax evasion. They also include terrorists, narcotics traffickers, counterfeiters, embezzlers and more.
Tax Liens and Civil Judgments. This important information is no longer a part of the standard credit report, so AAOA is now offering it ala carte and as part of the Premium package.
With application fraud so predominant now, it is easy to see how important these screening reports are. As a responsible property owner, it is for your protection and that of your existing tenants to check out every prospective renter before you sign a lease with them.
If any red flags arise or anything needs clarification, don’t hesitate to ask for additional information from the applicant before making a final decision. Be thorough during your screening process and utilize the tools provided by your AAOA membership so that you are confident about who will be living in your property.
Yes, a landlord can raise the rent if a girlfriend moves in. However, it is important to review the terms of the rental agreement to see if there are any restrictions or provisions regarding additional occupants and rent increases.
Some rental agreements may have limitations on the number of occupants or specific rules about rent adjustments.
It is recommended to communicate with the landlord and review the agreement to understand the specific terms and conditions.
The Landlord-Tenant Relationship
Understanding the Landlord-Tenant relationship can be complex, especially if a girlfriend moves in and the landlord wants to raise the rent.
It is important to know the terms of the lease agreement and consult local laws to determine what actions can be taken in this situation.
One of the key aspects of renting a property is understanding the landlord-tenant relationship.
Landlord’s Rights And Responsibilities
As a landlord, it is essential to be aware of your rights and responsibilities to maintain a fair and respectful relationship with your tenants.
By understanding your rights, you can ensure that your property is cared for properly and that your tenants are abiding by the agreed-upon terms. Here are some key points to consider:
Right to collect rent in a timely manner
Right to enter the property for necessary inspections or repairs, with proper notice
Responsibility for maintaining the property and making necessary repairs to ensure habitability
Responsibility to respect the tenant’s privacy and only enter the property as outlined in the lease agreement or with proper notice
Tenant’s Rights And Responsibilities
As a tenant, understanding your rights and responsibilities will empower you to protect your interests and ensure a comfortable living situation.
By familiarizing yourself with these key points, you can advocate for yourself and maintain a healthy landlord-tenant relationship:
Right to live in a habitable property
Right to privacy and quiet enjoyment of the rental unit
Responsibility for paying rent on time and in full
Responsibility for maintaining the property in a reasonably clean and safe manner
Knowing The Laws And Regulations
Understanding the laws and regulations that govern the landlord-tenant relationship is crucial for both parties.
This knowledge provides a solid foundation for resolving any disputes or issues that may arise during the tenancy.
By being aware of the legal framework, you can protect your rights and uphold your responsibilities. Here are a few reasons why knowing these laws is important:
It prevents misunderstandings and ensures compliance with local regulations.
It helps in resolving conflicts or disputes based on factual information.
It allows for informed decision-making when entering into a rental agreement.
It establishes a sense of accountability and fairness in the landlord-tenant relationship.
By comprehending the rights and responsibilities of both landlords and tenants and staying informed about the laws and regulations, you can foster a mutually beneficial and harmonious living arrangement.
This solid foundation will contribute to a healthy landlord-tenant relationship, providing peace of mind for both parties involved.
Remember, knowledge is power, and by understanding the dynamics of this relationship, you can navigate any challenges or situations that arise with confidence.
Defining A “Guest” And “Tenant”
Wondering if your landlord can raise the rent if your girlfriend moves in? Understanding the difference between a “guest” and a “tenant” is crucial.
While a guest is usually temporary and doesn’t have tenant rights, if your girlfriend becomes a tenant, the landlord may have the right to raise the rent.
Always consult with your local rental laws for specific guidelines.
Differentiating Between A Guest And A Tenant
When it comes to determining whether someone is a guest or a tenant, it’s essential to understand the distinctions between these two categories.
While a guest is someone who stays temporarily with the landlord’s permission, a tenant is someone who has entered into a rental agreement with the landlord and has the right to occupy the property.
Furthermore, a guest typically does not pay rent, whereas a tenant is obligated to pay rent for their use of the rented space.
Criteria For Determining Tenant Status
The status of someone living in a rental property as either a guest or a tenant is typically determined by specific criteria set forth by the landlord or governed by local laws.
Although these criteria can vary, some common factors that landlords consider may include:
The length of time the person has been residing in the property
Whether the individual contributes to household expenses
Whether the person has received mail or packages at the property
Whether the landlord has given permission for the person to live in the property
It is crucial to consult the rental agreement or local laws to understand the specific criteria used to determine tenant status and the rights and responsibilities that come with it.
Impact On Rent If Girlfriend Is Classified As A Tenant
If your girlfriend is classified as a tenant, it could have implications for the rent.
Landlords have the right to revise rent prices, but usually, they can only do so when the lease term is up for renewal.
However, if the girlfriend is considered a tenant, their presence in the rental unit may be subject to additional rent charges as per the agreement.
This increase in rent could be based on factors such as the number of occupants, utilities usage, or other related expenses.
It is important to review the rental agreement or consult with the landlord to understand the exact impact on rent if your girlfriend is classified as a tenant.
Reviewing The Lease Agreement
When it comes to rental agreements, it is essential for both landlords and tenants to thoroughly review the lease before making any significant decisions.
One common concern that arises is whether a landlord can raise the rent if a girlfriend or additional person moves in.
To address this question, it is vital to understand the provisions outlined in the lease agreement.
Importance Of Reviewing The Lease Agreement
The lease agreement serves as a legal contract between the landlord and the tenant, detailing the rights and responsibilities of each party.
By carefully reviewing the lease agreement, tenants can gain a clear understanding of the terms and conditions governing their tenancy.
Additionally, landlords can ensure that the lease agreements they create adequately protect their interests.
Provisions Regarding Additional Occupants
Lease agreements typically include provisions outlining the maximum number of occupants permitted in a rental unit.
Landlords often impose these limits to maintain a comfortable living environment, ensure compliance with safety regulations, and avoid overloading the property’s utilities.
The lease agreement might state that only the named tenant or tenants specified in the original agreement are allowed to reside in the rental unit.
In this case, if a girlfriend or significant other moves in without the landlord’s knowledge or permission, it could be considered a breach of the lease agreement.
On the other hand, some leases may explicitly allow additional occupants but require them to be added to the lease agreement through a formal process.
This process typically involves obtaining written consent from the landlord and potentially adjusting the terms of the lease, such as the rent amount.
Understanding the provisions regarding additional occupants in the lease agreement is crucial to determine whether the landlord can raise the rent when a girlfriend or additional person moves in.
How Lease Terms Affect Rent Increases
The terms and conditions outlined in the lease agreement have a significant impact on the landlord’s ability to raise the rent due to the addition of an occupant.
In some cases, the lease may explicitly state that the rent amount will not increase if an additional person moves in, as long as the total number of occupants remains within the limits specified.
In conclusion, reviewing the lease agreement is of utmost importance when considering any changes in occupancy or potential rent increases.
By understanding the provisions regarding additional occupants and the impact of lease terms on rent amounts, both tenants and landlords can ensure a fair and transparent rental experience.
Considering Fair Housing Laws
When considering the question of whether a landlord can raise rent if a girlfriend moves in, it is important to take into account the fair housing laws that exist to protect tenants from discrimination.
Fair housing laws, also known as anti-discrimination laws, establish guidelines and regulations to ensure that all individuals have equal access to housing opportunities.
Fair Housing Laws
Fair housing laws are regulations that prohibit discrimination in housing on the basis of certain protected characteristics.
These laws aim to foster a fair and inclusive housing market, while also safeguarding against practices that could lead to discrimination or unfair treatment.
Prohibited Grounds For Discrimination
Under fair housing laws, landlords are prohibited from discriminating against tenants on the basis of protected characteristics. Some of the common protected characteristics include:
Race
Color
National origin
Religion
Sex
Disability
Familial status
It’s important to note that fair housing laws vary from country to country and sometimes even at the state or local level.
Landlords must familiarize themselves with the specific laws that apply to their jurisdiction.
Implications For Rent Increases Based On Girlfriend Moving In
When it comes to the situation of a girlfriend moving in, the fair housing laws primarily focus on discrimination but may not directly regulate rent increases.
However, landlords must be cautious and ensure that any changes in rent or rental agreements are not based on discriminatory practices or targeting specific tenants.
It’s important for landlords to treat all tenants equally and not single out tenants based on their relationships or familial status.
Charging higher rent or increasing rent solely because a girlfriend moves in can potentially be considered discriminatory and may be in violation of fair housing laws.
While there may not be specific laws directly addressing rent increases due to a girlfriend moving in, landlords should always approach such situations carefully and fairly.
Communication with the tenant, evaluating market rents, and following established rental policies can help ensure that any rent adjustments are justifiable and non-discriminatory.
Communication With The Landlord
When it comes to addressing the situation where your girlfriend has moved into your apartment and whether your landlord can raise the rent because of it, open and honest communication with your landlord is crucial.
Maintaining a positive relationship with your landlord and being transparent about any changes is essential to avoid any potential conflicts or misunderstandings.
Importance Of Open And Honest Communication
Open and honest communication is key when dealing with any landlord-tenant scenario.
In the case of your girlfriend moving in, it is essential to approach your landlord and discuss the situation upfront.
This will not only help to establish trust but also show your willingness to follow the rules and maintain a good relationship.
Here are a few important points to consider when communicating with your landlord:
Be respectful and professional in your approach.
Clearly explain the situation and the reason behind your girlfriend moving in.
Assure your landlord that your girlfriend will not cause any disturbances or violate any terms of the lease agreement.
Ask for your landlord’s policies regarding additional occupants or roommates.
Emphasize your commitment to maintaining the property and fulfilling your responsibilities as a tenant.
Roommate Or Additional Occupant Situations
When discussing the situation with your landlord, it is important to address the topic of roommates or additional occupants.
Understanding your landlord’s policies and any potential limitations can help you navigate the situation in the best possible way.
Here are some points to consider when discussing these situations:
Review the lease agreement to see if it includes any provisions about additional occupants.
Find out if your landlord requires written consent for additional occupants.
Ask if there are any specific regulations regarding the number of occupants allowed in the unit.
Discuss any potential impact on utilities or common areas and how you will address them.
Address any concerns your landlord may have and provide reassurances.
Potential Negotiation Options For Rent Adjustment
If your landlord expresses concerns about the additional occupant and believes it warrants a rent increase, discussing potential negotiation options may be necessary.
Remember, maintaining a positive and cooperative attitude will significantly aid in the negotiation process.
Option
Explanation
1. Offer to pay a slightly higher rent
Propose a slight increase in your monthly rent to compensate for the additional occupant.
2. Discuss a trial period
Suggest a trial period to assess how the additional occupant affects the property and propose revisiting the rent adjustment after a certain period of time.
3. Seek a compromise
Work with your landlord to find a compromise that satisfies both parties, such as agreeing on a smaller rent increase or alternative terms.
Remember, the negotiation process should be fair and respectful. It is important to discuss your options openly and stay focused on finding a mutually beneficial solution.
Owning rental properties can be a rewarding investment, but it also comes with a host of responsibilities. Many landlords often handle these responsibilities independently and we provide information on how to do so on our website. However, there are situations where they need to hire the best property manager for more efficient and hassle-free property management.
The right property manager can make your life as a landlord much easier and your investment more profitable. A skilled property manager is well-versed in local rental markets, enabling them to set optimal rent rates, attract high-quality tenants, and reduce vacancy periods. They also provide a buffer between landlords and tenants, handling tenant issues and conflict resolution professionally.
In this article, we’ll guide you through the process of finding the best property manager for your rentals.
How Do I Find the Best Property Manager for My Rental?
Choosing the right property manager is a decision that can significantly benefit landlords in various ways. It brings peace of mind, as a competent property manager can efficiently handle the day-to-day responsibilities of property maintenance, tenant communication, and financial management. This allows landlords to enjoy a more passive income stream without the stress of constant involvement.
Here are a few steps to help you find the best property manager for your rental:
1. Find Recommendations
Start by seeking recommendations from fellow landlords, real estate agents, or online communities.
Local landlords and real estate agents possess intimate knowledge of your specific real estate market. They can direct you to property managers who understand the nuances of your area, such as rental demand, pricing trends, and legal regulations. This local expertise can be a critical factor in the success of your rental property.
Word-of-mouth referrals can be a valuable resource, as they come from firsthand experiences. For example, your neighbor might recommend a local property manager who’s known for exceptional service.
2. Evaluate What They Bring to the Table
When you’ve gathered some names, evaluate potential property managers based on their procedures, responsiveness, and communication skills.
Look for someone who not only keeps you in the loop but also maintains good relationships with tenants, applicants, and vendors. A property manager with a reputation for handling tenant issues effectively can save you headaches down the line.
3. Interview Candidates
Schedule interviews with your top candidates to get a sense of their approach and expertise. Ask about their tenant screening process, maintenance procedures, and financial reporting.
Here are some key questions to consider:
How do you screen prospective tenants to ensure they are reliable and responsible?
What criteria do you use to approve or reject tenant applications?
Can you provide an example of a challenging tenant situation you’ve successfully resolved?
How do you handle maintenance requests and emergency repairs?
What is your process for regular property inspections and maintenance checks?
Can you share an example of how you’ve efficiently managed a maintenance issue in the past?
How do you keep track of financial transactions related to the property, including rent collection, expenses, and property-related income?
What kind of financial reports do you provide to landlords, and how frequently?
How long have you been in the property management business, and what types of properties have you managed?
How do you handle tenant inquiries, complaints, and conflicts?
Have you ever had to deal with a difficult tenant, and how did you resolve the situation?
How often do you conduct property inspections, and what aspects do you assess during these inspections?
Additionally, visit some properties they currently manage to assess their upkeep and tenant satisfaction.
4. Communicate Your Expectations
Once you’ve conducted interviews and are closer to making a decision, it’s essential to review the property management agreement thoroughly. This document outlines the terms, responsibilities, and expectations between you as the landlord and the property manager.
Take this opportunity to clearly communicate your specific requirements and expectations. Discuss your rental property’s unique needs, whether it’s related to property maintenance, tenant selection, or financial reporting. Also, express your preferred communication channels, so you can stay informed and in control of your investment.
A good property manager should not only be receptive to your expectations but also willing to adapt to your preferences. An open and transparent discussion at this stage can help ensure a harmonious and productive working relationship that aligns with your objectives as a landlord.
5. Consider the Pricing
While cost is a crucial factor, it shouldn’t be the sole deciding factor. Assess the fee structure and compare it with the services offered. Sometimes, a slightly higher fee is justified if the property manager offers a comprehensive package that saves you time and effort.
Comprehensive services often include tenant screening, rent collection, property maintenance, and even legal assistance. While these packages might come at a higher price point, they can streamline your property management tasks and protect your investment in the long run.
Opting for the cheapest option without considering the scope of services can lead to issues down the road. It’s essential to evaluate what’s included in the fee structure and ensure it aligns with your property management needs.
Finding the Best Property Manager: Landlord Gurus Takeaway
Finding the best property manager for your rentals requires careful consideration and research. Don’t rush the process; the right property manager can significantly impact the success of your real estate investment.
There is what we consider a squatter in our rental house. The Judge considers him a tenant because he moved in and had the electric and water turned on in his name, unauthorized. We were told to go through the eviction process as if he was a tenant, which we did. At Court, the defendant lied under oath saying that he paid rent and did repairs to the house. He had no proof. He also said it was dangerous for him and his 3 babies to live there because the electrical breaker would sometimes shut off. The Judge ruled in his favor and said he could live there for the rest of his life if he chose to do so.
Can we move into our own house to do needed repairs while the squatter is there?
Thank you ever SO much!
Jacqueline, Texas
A: The judge said what? This is the most bizarre thing I’ve heard (this week.) So he said he paid rent. So he’s a tenant- with no lease. He gets a 30 day notice- then back to court.
Legal Disclaimer
The Landlord Protection Agency’s “Ask the Attorney” column is for informational purposes only. The questions answered by Mr. Reno on this site do not constitute an attorney – client relationship and are not to be considered legal advice. Not all questions will be answered and some may appear in the LPA Q&A Forum.
The Landlord Protection Agency recommends that you seek legal advice before using any of the material offered on this web site, and makes no guarantee on the effectiveness, compliance with local laws or success of any of the material offered on this web site. The Landlord Protection Agency is not engaged in rendering legal advice.
Managing an investment property is no easy task. It may sound like big money, but if you are not prepared it can turn into a huge money pit. As a landlord, you have a big responsibility to the property as well as the tenants. One small misstep could end up costing you valuable time, energy, and money. That is why you must make sure you do your homework before jumping in. Do as much research as possible. If you look up the latest real estate trends in the area or ask a local expert, you will be able to find enough information to help you make the best decisions when it comes to your investment property. Unfortunately, many landlords want to get started so quickly that they do not think before they invest. Here are the top five mistakes that landlords make with their investment properties:
1.Choosing the Wrong Tenants
This is one of the biggest mistakes you can make as a landlord. If you are renting your property out to a stranger, you must take the extra steps needed to make sure you get the best possible tenants in your property. If you do not know them very well, there are certain precautions you can take. Have them prepare the following:
a) Application Form: Have prospective tenants complete a written application form. This will include standard renter’s information such as names, numbers, employer, previous residences, income, etc. Each adult who will be living in the property would need to fill one of these forms out and minors can be added as well. They would sign that all the information they provide is accurate to the best of their knowledge.
b) Credit and Background Checks: Tenant screening is a great way to see how financially stable your prospective renter is. Credit reports often show if someone has been late on payments and the amount of debt they already have. A background check is very important, not just for your peace of mind, but also in consideration of the neighborhood. You would not want to rent the property out to a convicted criminal. It would compromise the safety of the area and could also bring down the property values.
c) Referrals: Asking for referrals from past landlords and current employer is a great way to go the extra mile in finding the perfect tenant. If the applicants have not be great renters in the past, then they probably would not move forward with their application if referrals are needed. A referral from an employer would also give you confidence that the tenant is gainfullyemployed and able to make a monthly payment.
2. Failing to Create a Thorough Lease Agreement
Creating a good lease agreement is where part of your research will come in handy. Many landlords will print the first form they see on the internet. Unfortunately, this form could be outdated and only relevant for a certain location. Make sure to find an application that has all your stipulations and current local regulations spelled out. Some tenants will comb through the entirety of the agreement to try to catch something that the landlord missed to exploit it. For this reason, it is very important that you create a thorough lease agreement. Be sure to add any rules specific to your property in an addendums section.
3. Lack of Communication
If you make yourself unavailable to your tenants, you are doing them and yourself a disservice. Your office should always be open and you should always be available by phone. Sometimes, home emergencies will come up and your tenants will need your ‘okay’ or your help to get the issues resolved. It can range from something small, like a door coming off its hinges, to something huge, like a flood or leak in the plumbing. The sooner you can get back to your tenants, the better for them and you. The longer you let an issue go, the more difficult it will be to fix a problem and the more resentment your renter could have for you. You want to make sure that your tenants have a good experience so that they are not criticalof you to future renters. This is especially important this day and age where you can review anything and anyone on the internet.
4. Setting the Rental Rate Too Low or Too High
Make sure you are setting the rental rate within the correct range for the property’s age and location. There is such a thing as setting the price too high and too low. If the rent is too high for the area or for how old the property is, no one will want to live there. The longer your home sits unoccupied, the more money you are losing each day. In the same vein, you do not want to set the rent too low. You may be able to get someone into the home quicker, but you could be leaving a lot of money on the table. The whole point in taking on an investment property is to make money. The best thing you can do is look at other rental properties in the area. Try to stick within the range of rental pricing you see in the neighborhood.
5. Delaying Eviction Process
If you do find yourself in the position of having to evict a tenant, try to get the process started as soon as possible. You can expect it to take about 30 days from start to finish, but many times, it is delayed because tenants will come up with excuses. As soon as you can tell there is a real issue, you should begin the process. The longer you wait to get it rolling, the longer it will take. The longer it takes, the more money you will be losing. It is important to note that the tenant is still legally obligated to pay the back rent owed to you. However, if a tenant has opted not to pay rent up until this point, you may be out of luck trying to collect it from them in the future.
Being a landlord is a tough role! If you avoid these common mistakes that most people make with their investment properties, you should have an easier go at it. The main thing to remember is that the more research and preparation you put into renting out your property, the more return you will see on your investment.
I have a couple applying for my rental. The gentleman has a good credit history but his girlfriend’s is horrible. If I just have him on the lease and he leaves the rental due to a break-up, do I have a big problem getting her out of my house? What would I have to do? We are in Maryland.. Thanks. Jane W., MD
A: It’s a package deal. You like’em as a couple, or you don’t. Does his responsibility outweigh her lack thereof? That’s your call. Leaving her off the lease doesn’t help you- it only helps her. That would give her the right to occupy the residence as his companion- but no liability for rent. Bad move.
Legal Disclaimer
The Landlord Protection Agency’s “Ask the Attorney” column is for informational purposes only. The questions answered by Mr. Reno on this site do not constitute an attorney – client relationship and are not to be considered legal advice. Not all questions will be answered and some may appear in the LPA Q&A Forum.
The Landlord Protection Agency recommends that you seek legal advice before using any of the material offered on this web site, and makes no guarantee on the effectiveness, compliance with local laws or success of any of the material offered on this web site. The Landlord Protection Agency is not engaged in rendering legal advice.
Unfortunately, many landlords do not perform the easiest part of the landlording process: properly screening tenants. They take in subpar tenants whom put undue strain on the property while rent collections suffer. Choosing tenants is a landlord’s most important (and most risky) decision.
At Bev Roberts Rentals, we have a thorough and legal application process. We search for tenants who meet the landlord’s criteria, and not just the financially responsible one. Not every red flag is a deal breaker, but we have the experience to know which ones are. Want to learn more? Give us a call at (919) 306-5665.
The Landlord Protection Agency®
Managing an investment property is no easy task. It may sound like big money, but if you are not prepared it can turn into a huge money pit. As a landlord, you have a big responsibility to the property as well as the tenants. One small misstep could end up costing you valuable time, energy, and money. That is why you must make sure you do your homework before jumping in. Do as much research as possible. If you look up the latest real estate trends in the area or ask a local expert, you will be able to find enough information to help you make the best decisions when it comes to your investment property. Unfortunately, many landlords want to get started so quickly that they do not think before they invest. Here are the top five mistakes that landlords make with their investment properties:
robertsrentalsblog 