The landscape of fair housing has been continuously evolving. One of the emerging focal points is the protection against discrimination based on the “Source of Income.” While not federally recognized under the Fair Housing Act, this classification has steadily gained traction at state and local levels, expanding the purview of housing rights.
Defining “Source of Income”
In the realm of housing discrimination, the “Source of Income” pertains to the origin of a resident’s lawful earnings or funds. This can include earnings from employment, pensions, or other regular payments, but notably, it frequently involves rental assistance programs or housing subsidies such as Section 8.
Although it’s not yet a federal mandate, many state and local housing laws and ordinances have recognized and added it as a protected category.
Implications for Property Managers and Landlords
For those managing federally assisted housing programs, such as 202, 811, or tax credit properties, it’s often mandatory to consider housing subsidies as a valid source of income. This means refusing a tenant on the grounds of them receiving rental aid can have legal repercussions.
However, if a property doesn’t fall under these categories, it’s paramount to delve into local city or county regulations. A deep understanding of local ordinances is essential to ascertain whether “Source of Income” is protected in your jurisdiction.
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Resident Income Screening in the Context of “Source of Income”
When screening potential residents, many property managers and landlords have set income criteria that applicants must meet. When “Source of Income” is protected, this screening process requires nuanced handling. The focus should primarily be on the tenant-paid portion of the rent. Managers need to:
- Ascertain the amount of rental assistance the applicant receives.
- Determine the gap between the assistance and the market rent of the property.
Upon obtaining these numbers, they can be juxtaposed against the property’s income standards to ascertain eligibility.
The Rise of “Source of Income” as a Protected Class
Recent years have witnessed a surge in advocacy for “Source of Income” protection. Various legislative initiatives have been proposed to elevate its status at the federal level. This momentum is largely attributed to the pressing challenges of housing affordability and accessibility. Incorporating “Source of Income” as a protected category can alleviate these challenges, enabling a broader segment of the population to improve their housing conditions.
In Conclusion
The intricacies of housing laws go beyond federal mandates. For property management professionals, staying updated with state and local ordinances, along with training, is as crucial as understanding federal regulations. The categorization and acceptance of various income sources can profoundly impact resident selection and rental operations, underlining the importance of comprehensive knowledge in this domain.
Thank you to The Fair Housing Institute for providing this informative article! Our readers get 15% off any Fair Housing course by using our special code: YLR2023
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Deciding between a 401k and real estate investment for retirement is a critical choice that will affect you now and in the future. Both have unique benefits and drawbacks and understanding them can help you navigate the path to a more secure financial future.
401K As a Retirement Vehicle
In short, a 401k is a tax-advantaged retirement savings plan offered by employers, allowing employees to invest a portion of their paycheck before taxes.
As one of the most common types of retirement accounts, there are both pros and cons.
Benefits of a 401k
- Tax advantages: Contributions are often made pre-tax, reducing your taxable income. Additionally, some employers offer matching contributions, which is essentially free money for your retirement.
- Diversification: Within a 401k, you can diversify across various stocks, bonds, and other investment vehicles, reducing the risk of being tied to a single asset.
- Ease of management: Once set up and contributions are automated, thereâs minimal active management required.
- Protection: 401k accounts have certain legal protections against creditors.
Potential drawbacks and limitations of a 401k
- Limited access: You canât access funds without penalty until age 59½, except in certain situations.
- Fees: Management and administrative fees can eat into your returns.
- Market volatility: Being tied to the stock market means your investments can be volatile.
- Contribution limits: For 2023, the 401(k) contribution limit for employees is $22,500, or $30,000 if you are age 50 or older.
Real Estate as a Retirement Investment
Real estate as a retirement investment can take on many forms, like residential and commercial rentals, raw land, real estate syndications, and real estate investment trusts (REITs).
Benefits of investing in real estate
- Tangible asset: Real estate is a physical asset, which can provide psychological security.
- Cash flow: Rental properties can generate monthly income, which can be especially beneficial during retirement.
- Tax benefits: Real estate offers various tax advantages, including depreciation and the potential for tax-free capital gains.
- Appreciation: Over time, real estate typically appreciates in value.
Potential challenges and risks with real estate
- Management: Investment properties require active management, maintenance, and potentially dealing with tenants.
- Liquidity: Selling real estate can be time-consuming, and itâs not as liquid as selling stocks or bonds.
- Market fluctuations: While real estate can be less volatile than stocks, local property markets can still experience downturns.
- Large upfront costs: Purchasing property requires significant capital, and there are ongoing costs like property taxes and insurance.
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Key Factors for Decision-Making
Now that youâve compared a 401k vs. real estate for retirement purposes, itâs time to focus on key factors for decision-making. Understanding these factors will help you determine where to invest your money, as well as how much to invest.
Personal financial goals and risk tolerance
Your investment decisions should be rooted in your financial goals for retirement. Assessing your comfort with market fluctuations and potential losses is important. Tailor your investment strategy based on your unique goals and risk profile.
Time horizon and retirement age
The time you have until retirement affects the kind of risks you can afford to take. Shorter horizons may require more conservative investments, while longer ones can entertain greater risks for higher potential rewards. Your targeted retirement age should shape the assets you invest in and their expected maturity.
Diversification of retirement portfolio
Diversifying your investments can help spread and minimize risks. Relying on a single asset class can expose you to sharp downturns specific to that market. A mix of assets, like stocks and real estate, can offer both growth potential and stability.
Market conditions and economic factors
The broader economic landscape plays a significant role in investment outcomes. Being attuned to trends in both the real estate and stock markets can offer insights into where opportunities exist. External factors like interest rates, employment data, and geopolitical events can also influence asset performance.
Tax implications and legal considerations
Every investment type carries its own set of tax consequences, which can impact your net returns. Familiarizing yourself with the tax benefits, such as deductions or credits, is vital to maximizing your investments.
Combining 401k and Real Estate for Diversification
Thereâs no rule that you have to choose either a 401k or real estate for retirement savings. For most people, itâs best to diversify by taking advantage of both options.
A 401k, typically tied to the stock market, allows investors to benefit from market gains, company matches, and tax-advantaged growth. Its diverse range of investment options, from stocks and bonds to mutual funds, provides a layer of protection against specific sector downturns.
Conversely, real estate offers the tangible assurance of physical property, potential rental income, and appreciation benefits that are somewhat decoupled from stock market volatility.
By investing in real estate, you can establish steady cash flow, which is especially beneficial during the retirement years. You can also enjoy the long-term appreciation of property values.
Together, a 401k and real estate can provide the growth potential of equities and the stability and income of tangible properties. The end result is a comprehensive approach to securing your financial future.
So Is a 401k or Real Estate Better for Retirement?
The truth is that thereâs no right or wrong answer to this question. Some people should invest solely in a 401k, while others are better off going all in on real estate.
However, for a well-rounded retirement strategy, you may find value in diversifying between these two assets. Compare the finer details, including the pros and cons, to ensure that you make the right decision.
Article obtained by Bigger Pockets.âChris Bibey is a single-family home investor and real estate and personal finance writer.
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Whether youâre just beginning to explore smart locks or looking to upgrade an existing access control system, there are five essential questions to ask first. Read on to discover just what to ask and more importantly, discover helpful answers to guide you to the successful implementation of a keyless entry solution.
1) WHAT KIND OF COVERAGE DOES MY CURRENT INTERNET PROVIDE?
Most multifamily communities these days are equipped with some level of Wi-Fi. According to a 2023 report from research firm Parks Associates, 88% of renters of multiple dwelling units (MDUs) and multifamily properties in the United States report having access to Wi-Fi through their property, either in unit or in a common area.
Determining whether or not your existing network will support smart locks is often a question for a professional. Internet providers who specialize in multifamily properties can perform an assessment to uncover the way your buildingâs layout and construction impacts your network, pinpoint performance issues and suggest any improvements.
When it comes to keyless entry, just know that outfitting an entire property with Wi-Fi enabled smart locks may not be possible. Property owners and managers may discover that the buildingâs Wi-Fi network wonât stretch to connect to a smart lock on a pool gate or an outbuilding. Off-line locks provide great solutions for these outliers.
For example, ReadyPIN-enabled smart locks work on or offline. ReadyPIN-enabled smart locks do not ever need to connect online to validate the PIN because the PIN code itself is encrypted with all the access permissions needed. This allows users to bring remote access control capabilities to any door, with or without a Wi-Fi network connection.
2) CAN EVERY DOOR ON MY PROPERTY ACCOMMODATE A SMART LOCK?
Smart locks are wonderful and convenient, thatâs for sure. But that doesnât mean every door on your property can or should accommodate one.
What about glass doors like those often found on commercial buildings? The vertical metal frame on each side of a glass door is known as a stile. To align with the sleek aesthetic of a glass door, these stiles are often too narrow to accommodate a connected smart lock. Instead, these doors often require hardwired access or a door system thatâs hardwired into your propertyâs power supply, requiring its own panel and wiring to operate.
The same is true for high-traffic doors like main entrances at a commercial or residential building. The batteries in even the best smart lock would wear out quickly with this constant traffic, so hardwired access is the solution instead.
Because such solutions require a powered connection, they must be installed by an electrical professional. In fact, any hardwired door requires guidance and installation by an access control specialist.
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3) DO I NEED WEATHERPROOF HARDWARE AT ANY OF MY DOORS?
Just imagine buying and installing a smart lock only to find it doesnât function when it rains heavily or freezes on very cold winter days. Remember, each area of the country has its own climate challenges requiring certain grades and types of smart locks.
Again, relying on expert guidance ensures youâll find the right solution. Such professionals are well versed in lock grades (developed by the American National Standards Institute) and their corresponding applications.
4) HOW MANY PINS SHOULD MY SMART LOCKS HOLD?
Itâs not uncommon for a property owner to become enthralled with a certain brand of smart lock, purchase their favorite, and then discover it only accommodates 100 PINs.
If your property has a full staff and hundreds of employees, you can very quickly run out of codes. So, be sure to check PIN code storage and err on the side of more PINs if you think your business will grow.
5) DO I NEED SOFTWARE TO MANAGE MY SMART LOCKS?
Many people donât realize that features like remote control, integrations with property management systems and visibility tools are enabled by access control software, not the smart lock. A cloud based access control platform, like RemoteLock, makes your smart lock even smarter by centralizing all of your properties, doors and locks onto one dashboard, allowing you to remotely manage all your smart locks from your smart phone or laptop.
When looking for access control software, make sure you are selecting a solution that can grow with you over time. For instance, a solution like RemoteLock offers compatibility with a slew of the most popular lock brands and hardwired access systems, too. Even better, RemoteLockâs open API also connects you to 3rd-party software providers you already know and trust, with others added all the time. Software solutions that give you a choice when it comes to hardware and integrations with other software means your solution can evolve as your portfolio grows.
AVOID MISTAKES WITH THE HELP OF EXPERT GUIDANCE
Just like any other technology, smart locks and access control software are always evolving. Thatâs why itâs wise to ask for help. The experts at RemoteLock can help guide you through details like user experience, security, connection technology, lock grades and more. Having served thousands of customers in multifamily, vacation rental and commercial sectors, they understand that every property has unique needs. Reach out to RemoteLock today to discover your ideal access control solution.
Thank you for this article by KIM GARCIA, Director of Marketing RemoteLock (obtained from AAOA RENT Magazine)
Kim Garcia is the Director of Marketing for RemoteLock. She has over 17 years of strategic marketing management and sales experience in the security industry. She specializes in corporate communications and product marketing with specific expertise in wireless security, access control, and integrator perspectives. Prior to joining RemoteLock, she led marketing for PSA Security Network and Inovonics.
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