Warning: Application Fraud Is on the Rise

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.

https://www.american-apartment-owners-association.org/property-management/warning-application-fraud-is-on-the-rise/?utm_medium=email&utm_source=rasa_io&utm_campaign=newsletter

Can Landlord Legally Hike Rent If Girlfriend Moves In? Find Out Now!

Edited By Henry Dean

Updated on25 November 2023

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:

1. It prevents misunderstandings and ensures compliance with local regulations.
2. It helps in resolving conflicts or disputes based on factual information.
3. It allows for informed decision-making when entering into a rental agreement.
4. 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:

1. Review the lease agreement to see if it includes any provisions about additional occupants.
2. Find out if your landlord requires written consent for additional occupants.
3. Ask if there are any specific regulations regarding the number of occupants allowed in the unit.
4. Discuss any potential impact on utilities or common areas and how you will address them.
5. 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.

Can Landlord Legally Hike Rent if Girlfriend Moves In? Find Out Now!

7 Predictions For The 2024 Rental Market

By John Triplett  -December 12, 2023

Here are 7 predictions for where the rental market is headed in 2024 from the economists at Apartment List as the once red-hot rental market of previous years has now cooled.

Here is a key topline summary for 2024:

• 2024 will be the strongest year for new apartment construction in decades, giving renters more options and better opportunities to negotiate price and lease terms.
• “We expect that year-over-year rent growth will crawl out of negative territory next year, but that it won’t rise above the low single-digits.”
• Even though mortgage rates are expected to ease modestly, home prices will remain prohibitively high and continue to create more long-term renters.

No. 1 – 2024 will bring the most new apartments in decades

Construction data from the Census Bureau suggests that multifamily supply growth should remain strong through 2024. The number of new multifamily apartment units under construction hit one million for the first time ever in 2023, and completions are expected to peak in 2024. With so many units in the construction pipeline, 2024 should be the strongest year for new multifamily supply since the 1980s.

No. 2 – Low single-digit rent growth in 2024

2023 is set to have the second slowest rent growth of any year in the history of our estimates (going back to 2017), coming ahead of only 2020. Looking ahead to 2024, “we expect demand to bounce back slightly, but remain on the soft side. The labor market remains fairly strong and there is likely some pent-up demand for new household formation. However, affordability continues to be a major concern and sentiment data shows that Americans still lack confidence in the economy. Even in the most bullish scenario, it’s unlikely that demand will be strong enough to outstrip all of the new supply that we know is coming, likely resulting in our vacancy index rising modestly from its current level in 2024. We expect that rent growth will rise out of negative territory early next year, but that it won’t get above the low single digits in 2024.”

No. 3- The changing rent vs. buy math will create more long-term renters

Many families are remaining renters longer than they may have in the past. Even those who can afford to buy in today’s market may find that renting now actually makes more financial sense. Although most Americans still aspire to own homes, more are now finding themselves renting later in life, and that trend is likely to continue. Consensus expectations are that mortgage rates will ease modestly next year, but likely not enough to significantly alter the prevailing dynamics of the for-sale market. As paths to homeownership fade for many, renting will increasingly be seen as the more practical housing option.

No. 4- Hybrid work will cement itself as the new norm for office jobs

In 2023, the remote work narrative focused on return-to-office plans, but this focus obscures the fact the pendulum will never swing fully back to the pre-pandemic norm. According to the latest estimates, 28 percent of all work days are still from home, and that figure appears to be stabilizing at that level. 42 percent of American workers currently have some form of remote work flexibility, and hybrid arrangements are much more common than fully remote ones. The data shows that hybrid work is here to stay, driving demand for rentals that provide spaces and amenities that blend work and home life for today’s flexible workforce.

No. 5- Sun Belt markets will see more renters, but not necessarily higher rents

The nation’s fastest population growth in recent years has been taking place throughout the Sun Belt. But in many cases, Sun Belt markets have also been among the most accommodating of growth, allowing for new housing development to meet the growing demand. The key takeaway: fast-growing Sun Belt markets will continue to be renter magnets, but rent growth should be kept in check thanks to lots multifamily development.

No. 6- As the economy takes center stage in the presidential election, candidates will need to speak to housing concerns

As we head into a presidential election year, the question of whether the economy is good or bad has proven to be surprisingly complicated. Most of the key indicators of economic health are looking quite strong, but economic sentiment surveys show that confidence and satisfaction in the economy remain weak. It’s likely that at least some of this disconnect is being driven by waning housing affordability. As the election cycle continues to ramp up, candidates on both sides of the aisle will need to articulate housing plans and speak to what has become one of the most pressing concerns of the American electorate. 2024 could be the year where housing rises to the forefront of the political discourse.

No. 7- More renters will use AI in their searches

“We expect 2024 to bring a new wave of AI-powered tools specifically for renters. It will soon become commonplace for renters to use AI in their apartment searches to search, compare, and coordinate actions. It will take time for these advancements to change macro market dynamics, but the next high-demand rental market cycle may look quite different with new power in renter’s pockets. And as adoption of AI-enabled rental search tools accelerates into 2024, both renters and property managers can seize opportunities from this new technological frontier.”

Conclusion

“2024 is certain to bring twists and turns no model can predict, as the new year always does. But we hope that by forewarning of what’s foreseeable—from new supply waves to persistent homeownership headwinds bolstering rental demand—we can help you prepare for what is ahead.”

About the Apartment List research team:

The Apartment List Research Team is a small group of economists and analysts dedicated to understanding the rental market as it evolves rapidly. “On our blog we publish original research reports and offer robust data products for public use.”

7 Predictions For The 2024 Rental Market

5 Things Successful Landlords Do That Help Them Sleep Easy

Being a real estate investor and landlord has its pros, but there are times when it can be stressful, even overwhelming. And it’s in those moments that you have a decision to make: Let the stress eat away at you, or grab control of the situation.

Five Ways to Lower Your Stress and Get More Sleep

Sleep is an odd thing. We need it to function properly and feel good. But in order to get the sleep we need, we have to make healthy lifestyle choices.

According to a survey of more than 2,000 Americans, Amerisleep found a direct correlation between average sleep per night and average overall happiness. As the article explains, “The time difference is a relatively small one, with perfectly happy people getting only about 24 minutes more sleep per night than completely unhappy people, but even that little bit of extra sleep seems to make a big difference.”

Unfortunately, the stress of being a landlord can keep you up at night and prevent you from getting the sleep you require for health and happiness. You can get caught in a vicious cycle that will eventually wear you down.

If you wish to get more sleep at night – and enjoy the benefits that accompany it – you must lower your stress levels so you’ll have an easier time falling asleep and staying there. Here are five practical ways to do this:

1. Get Organized 

It’s amazing what a little organization can do for you, mentally and practically. Every property you own should have a folder in a filing cabinet and/or your computer.

In these folders, keep titles, financing documents, loan applications, tenant applications, HVAC warranties, service agreements, receipts, copies of rent checks, etc. When all that is readily accessible, you don’t have to waste time tracking down lost documents.

2. Take Preventive Measures

It’s much better to spend a little extra money on preventive measures than to be constantly stressed out over what could happen in an undesirable scenario. The best preventive measure you can take is to invest in adequate insurance.

If you’re renting out a property long term, you need to have a landlord-specific policy. You may also want to look at an umbrella policy to protect yourself personally in the event of specific calamities.

3. Carefully Screen Tenants

You have to be careful about the tenant screening process, and make sure you adhere to the proper laws, but being selective on the front end will save you a lot of trouble later on. Good tenant screening involves more than a background check.

You should meet the prospective renters in person, ask the right questions, consult their references, and request a substantial deposit to ensure they’re serious.

4. Automate Rent Collection

One of the worst parts about being a landlord is waiting on the rent checks to roll in. There always seem to be one or two problem tenants who don’t pay on time and come up with imaginative (or worse, repetitive) excuses for why the check is late. The best trick is to automate rent collection, so there’s less room for such problems.

5. Hire a Property Manager

The more you remove yourself from the dirty, mundane, and monotonous tasks of being a landlord, the less stressed you’re apt to be. It’ll cost you a percentage of your monthly rent but hiring a property manager can be one of the best investments you’ll make – particularly if you have multiple units.

Say Goodbye to Restless Nights

When you’re stressed about your properties, tenants, and income, you may lie awake at night and fail to get adequate sleep. If you don’t get enough sleep, you’ll be unhappy.

When you’re unhappy, you’re more susceptible to stress and making unhealthy decisions. The easiest way to break this cycle is to gain control of your investments.

By staying organized, implementing smart preventive measures, carefully screening tenants, automating rent collection, and hiring a property manager, you can take charge and sleep well. Don’t put it off!

Source: nuwireinvestor.com

Abandonment of Rental Property

What to Do if a Tenant Abandons the Property

by Attorney William Bronchick, Legalwiz.com

Have you ever had a tenant leave in the middle of the night or the middle of an eviction?  Did you ever wonder what to do?

Basically when a tenant abandons the property, you do not need to file an eviction or wait for the sheriff.  You can change the locks.  As for the tenant’s stuff, in most states you can simply toss it.  You should check your state or local law to see what your legal obligation is to store the items for the tenant.

HOWEVER…

If you are not certain whether the tenant has abandoned the property, you should not change the locks.  If you have the keys, you could enter the premises, but KNOCK FIRST.  Whether or not the tenant has abandoned is often a judgment call, looking at a combination of factors, such as:

• Did the neighbors see them move?
• Are the utilities shut off?
• Did the tenant put in a change of address at the post office?
• Is there any significant furniture left?
• If you have access, are there sheets on the beds?

In some cases, the tenant has been arrested or is in the hospital, which would explain why he hasn’t been around.  Or, maybe the tenant has moved, but left behind some furniture to pick up later on.  Even if the tenant is not sleeping there, they are still “in possession” if they have their personal belongings in the unit and have not shown an intent to abandon these items.

Some states have specific laws regarding PRESUMPTIONS of abandonment.  For example, Connecticut law states:

Sec. 47a-11b. Abandonment of unit by occupants. Landlord’s remedies.
(a) For the purposes of this section, “abandonment” means the occupants have vacated the premises without notice to the landlord and do not intend to return, which intention may be evidenced by the removal by the occupants or their agent of substantially all of their possessions and personal effects from the premises and either

(1) nonpayment of rent for more than two months or
(2) an express statement by the occupants that they do not intend to occupy the premises after a specified date.

You can find a state by state guide to landlord tenant law by clicking here. If you do intend to claim abandonment, take pictures, gather evidence and cover all bases to prepare for a possible wrongful lockout claim.  If you have ANY doubts, call your landlord-tenant attorney and do the proper legal eviction proceeding.

The Landlord Protection Agency would like to thank William Bronchick for supplying the article above.

About the author…
William Bronchick, Esq. is an author and attorney who regularly presents workshops and do-it-yourself seminars at real estate and landlord associations around the country. He is the president and co-founder of the Colorado Association of Real Estate Investors. Bill specializes in all forms of asset protection and is the author of several great home study courses.

Read more articles by William Bronchick at Legalwiz.com.

Source: The Landlord Protection Agency, Inc.

Southwest Wake County’s growth spike shows it’s no longer a bedroom community

What used to be a mere cluster of Triangle-outskirt towns is now one of North Carolina’s centers for economic growth. Even by Triangle region standards, which have been significant, Southwest Wake County’s growth has spiked over the last two decades.

The Census Bureau recently reported growth rates of approximately 26 percent in Apex, 35 percent in Holly Springs, and 44 percent in Fuquay-Varina, outpacing Raleigh in 2016. Residential growth in Holly Spring

 

s alone is expected to grow so rapidly that for every three residents today, there will be five by 2025.

As a site selection specialist and a local resident, I have seen the impact this has had on the workforce. Joanna Helms, Apex Economic Development Director shared, “Most people don’t realize that Apex has over 50 thriving companies that range from advanced manufacturing, wholesale distribution and precision machining to information technology, computer gaming and software development, as well as micro brewing.”

 

Following the population growth, retail market vacancies have been competitive, and are currently at 2.8 percent according to CoStar. It seems that almost every week, another grocer, restaurant, or other retailer announces an opening. As of November 2017, Southwest Wake had almost 30,000 square feet of retail space under construction, as well as five shopping centers proposed. Current mixed-use developments in Holly Springs and Fuquay-Varina create tremendous retail and mixed-use opportunities for business owners and consumers alike.

While retail development will always follow the rooftops and urban areas continue to thrive and grow, a new trend is emerging where many companies are migrating closer to their workforce. This has not only reduced geographic and traffic concerns during the recruiting process, but has also developed a quality of life for employees that, in turn, improves the quality of the company. Names such as Dell Inc., Rovisys, and Sequirus are located in the heart of Southwest Wake, producing thousands of jobs and catalyst for economic growth.

 

“Town leaders have strategically positioned the assets of the community to attract more life science companies. Highlights include: more than $100 million has been invested in roads, water and sewer projects and parks and recreation facilities in the last 10 years,’ said Holly Springs Economic Development Director, Irena Krstanovic.

Southwest Wake currently has over 75,000 square feet of industrial and flex space under construction. These properties are in addition to almost one million square feet of proposed development. Local municipalities are looking to grow their commercial tax base, as well as offer incentives for businesses to join their communities.

This, along with land availability, provides development opportunities for any

 

thing from spec space to owner-occupancy. Additionally, the construction of “Complete 540” project going through the southwest, there will soon be expedited access to RDU and other parts of the region. According to Economic Development Director, Jim Seymour, “Fuquay-Varina continues to see strong growth in the expansion of our medium to large manufacturing firms. Our geographical location is one of our community’s greatest assets for manufacturing and distribution.”

Source: https://www.bizjournals.com/triangle/news/2017/12/12/southwest-wake-county-s-growth-spike-shows-it-s-no.html

 

9 Sneaky Fees to Watch for When Hiring a Property Manager

To many landlords, property management services are superfluous, cutting their profit margins to a minimum in exchange for basic services. But the reality is that property managers can make your life extraordinarily easier—and most charge a reasonable enough rate that you can draw a monthly profit from your properties (headache-free).

However, when you’re searching for a property manager to handle your landlord responsibilities, it’s important to note that not all fee structures are the same. If you don’t understand how a manager’s fees work, you won’t be able to compare apples to apples, and you might end up shaving your profit more than necessary if you aren’t prepared for those fees when they come up.

9 Fees to Watch For

These are some of the most common “hidden” fees, extra fees, and differences in fee structure to watch for when comparing providers or finalizing a contract:

1. Rent Due and Rent Collected

Many property managers will charge fees as a percentage of rent, but watch how this is worded—there’s a difference between charging as a percentage of rent due and a percentage of rent collected. A percentage of rent due means your company will charge you based on how much money a tenant owes you; a percentage of rent collected means your company will charge you based on how much money a tenant actually pays you—and is generally more favorable. If you’re charged based on rent due, you’ll end up paying for property management even when your property is vacant and you have no money coming in.

2. Early Cancellation

You may also be charged an early cancellation fee should you break the contract with your property manager before the end of its outlined term. For example, if you agree to work with them for a year and you want out after eight months, you might pay an additional few hundred dollars. Be especially wary of this fee with untested property managers.

3. A La Carte Management Fees

“A la carte” management fees refer to a suite of extra fees a property manager may charge you in addition to basic services. Usually, a property manager will either charge a higher price (and no additional fees) or a lower price, with multiple additional fees, somewhat evening out. Accordingly, it pays to know what fees are applicable and what they might run you. The remaining items in this list could all be classified as a la carte management fees.

4. Vacancy

If a company isn’t charging you the full cost of management while your property is vacant, there may still be an additional vacancy fee. Rather than collecting a percentage of rent due, they may collect a smaller amount from you as a kind of retainer.

5. Advertising

When it comes time to seek a new tenant, some property managers may charge you an additional advertising fee. This would cover the cost of creating media (such as taking photos) and placing it on sources like online listings or paper publications.

6. Leasing

A leasing fee may apply when you find a new tenant for your property. This covers the cost of drafting and securing a new lease agreement and is generally low in cost. If the cost here is high, it should raise a red flag, especially if your resulting tenant turnover seems to increase.

7. Lease Renewal

Lease renewal is even simpler than initial leasing, but it may still require a fee. You may need to draw up new paperwork or renegotiate terms with a tenant, and that means your property managers will be doing a bit of extra work. Expect minimal fees here as well.

8. Maintenance

Property management fees should cover basic instances of maintenance and repair, but some companies may charge extra for big jobs, or for an inspection between tenants.

9. Eviction

Eviction can be a messy process, and if you ever need to evict, you’ll be grateful you have a property management service in your corner. Most property managers will handle the eviction completely on your behalf, but some will charge you an extra fee for the extra work involved. Expect to pay at least a few hundred dollars for this process.

Apples to Apples

Different companies might charge money in different ways, but if they’re offering similar services, you’ll likely find the bottom-line price of each to be competitive with one another. The big difference here is how you plan on using your property management company; for example, if you’re looking for long-term arrangements, an early cancellation fee shouldn’t factor much into your decision. Try to consider all these factors and all price points when comparing providers and making your decision.

Source: biggerpockets.com

Is Evicted Tenant Responsible for Remaining Months on Lease?

The Landlord Protection Agency®presents John Reno, Esq.,a highly experienced Landlord – Tenant attorney based on Long Island, NY.

Q:  Dear Mr. Reno:

Thank you Mr Reno for taking my question. Once an eviction takes place, what is the status of the Lease Agreement as it pertains to lost rent? Is the evicted tenant still liable for lost rent for the remaining months of the Lease?
Charles, California.

A: Yes, yes, yes, the tenant is liable for the remaining months- but there’s a catch: Once you re-rent, you no longer can claim damages for lost rent. So you have to wait until you re-rent so you know how much to sue for.

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.

Happy Easter from all of us at Bev Roberts Rentals.

Happy Easter from all of us at Bev Roberts Rentals.

How to Set the Perfect Rent Price for a Rental Property

If there is something that many landlords struggle with it is how to determine the perfect rent price for their properties. Naturally, most of them would wish to set the prices as high as possible so as to recoup their investment.

Doing so, however, will make the tenants view the landlord as unscrupulous and they will stay away from the units. Ironically, pricing your rentals too cheap is also counterproductive. The low price will attract low-quality and at times problematic tenants.
So, just how can a landlord go about pricing his or her rental units? The following tips should offer insight on how to go about it.

8 Tips for Setting Rental Prices

Find Out What Similar Units are Charging An effective way to determine how much to price is by finding out what houses similar to yours charge. The similarity should be regarding the number of bedrooms, square footage, location, and amenities. You can get this information from popular listing platforms like Craigslist, Trulia, Zillow, and Realtor.com. Bearing in mind that the rent price can affect how long a property stays vacant as well as the average occupancy rate, focus on those houses that do not stay unoccupied for too long and have a high occupancy rate. Chances are these units have the right rental prices.

Consider the Square Footage of the Unit If your efforts of locating a property that matches yours prove futile, do not despair yet. You can use the nearby units to calculate how much you should price yours. All you need to do is find out how much the surrounding units charge per square feet and use that rate to calculate yours.

Set the Price Based on the Real Property Value A common way of determining what to charge is to evaluate what the actual cost of your asset is, and multiplying it by a standard 0.11. Whatever figure you arrive at, that should be the fitting monthly rent you should demand. For instance, if the evaluation values your rental property at $ 150,000, then an ideal monthly rental rate would be $1,650. Even though this approach fails to factor in variables like the neighborhood, design features or surrounding amenities, it gives a general idea of what to charge.
Consider the Location of Your Property Where your rental property is situated significantly affects the amount of rent you can demand. For instance, if it is in high-end markets, near prominent school districts, reliable transport network, or essential social amenities, you can attract a premium rate. That is because high-quality renters prefer staying in such areas and wouldn’t mind paying whatever amount you ask. However, if your property is in the lower class markets, where insecurity is high, and infrastructure is lacking or rundown, you will have a daunting task charging a high rent.

Look at the Condition, Size, and Layout of the Property Besides the location, there are other factors like the size, design, and condition of the property which will affect its ultimate price. For example, a two bedroom apartment might cost less than a three bedroom one in the same area. However, if the three-bedroom unit is old or in a worn-out state, while the two-bedroom one is new and refurbished, the newer property is likely to cost more.

Inquire from Property Experts Another useful way for you to ascertain the perfect rent is to ask credible experts in the real estate industry. These experts include property management companies, real estate agents, and rental housing associations. Since these authorities are familiar with the rental property industry, they are in the perfect position to tell you what to charge in different markets. When looking for an expert opinion, though, take the time to determine that you are indeed consulting a credible and reputable professional. Otherwise, you might end up receiving the wrong investment advice, which will hurt your real estate goals.

Ask Other Landlords Even though industry experts will give you sound advice, in most cases you have to pay for that information. If you prefer unsolicited rental advice, why not get it from the horse’s mouth. Talk to other landlords and ask them how much they charge. While at it, do not shy from seeking their opinion on what you should charge for your property. Depending on your approach most property owners would readily give credible suggestions.

Ask the Tenants If getting the information from the landlords proves impossible, or if you suspect what the owner told you was questionable, you could identify surrounding units that are similar to yours and interrogate the tenants there, to find out how much rent they pay.
Conclusion By following the above steps, you should be in a position to get an average market rate for your rental property. From there, it is up to you to decide how to price your units so that they remain both attractive to high-quality renters, and profitable to you.

Source: realtybiznews.com