Provided by the Fair Housing Institute
As the new year begins, property management professionals have the opportunity to reflect on foundational practices that ensure both compliance and operational excellence. Among these, few aspects are as critical as robust fair housing policies, well-defined procedures, and professional written communication. These elements not only safeguard against legal risks but also foster trust and professionalism in interactions with residents, prospects, and team members. This article explores the essential role of policies and written responses, offering a timely reminder to recalibrate for the year ahead.
The Importance of Fair Housing Policies and Procedures
Fair housing policies and procedures serve as the backbone of any property management operation, regardless of the size of the portfolio. They provide a clear framework for staff to understand their responsibilities and adhere to fair housing laws, ensuring consistent application of these principles across the board. Moreover, well-documented policies act as a vital defense mechanism during fair housing investigations, demonstrating that actions taken were in line with established guidelines.
For property management companies of all sizes, the creation of a basic fair housing policy is non-negotiable. However, it is not enough to simply draft a policy and let it sit idle. These documents must be living resources, regularly reviewed and updated to reflect changes in legislation or operational needs. In addition to a general fair housing policy, companies should implement specific procedures addressing reasonable accommodations and modifications. These procedures must clearly outline the steps for processing requests and define the roles of staff members responsible for decision-making.
To ensure these policies are accessible and actionable, many companies utilize a centralized policy manual. This resource serves as a go-to reference for staff, housing key documents such as fair housing policies, reasonable accommodation procedures, and supporting forms. Regular training sessions are critical to reinforce the importance of these policies and ensure all employees understand their role in maintaining compliance.
The Role of Written Communication in Fair Housing Compliance
In the property management industry, written communication is not merely transactional; it is a direct representation of your company’s brand and commitment to professionalism. Emails, letters, and even social media responses all fall under the umbrella of marketing and must align with fair housing principles. As such, every written response must be crafted carefully to avoid potential issues of discrimination or misrepresentation.
One area where this is particularly critical is in responding to inquiries about unit availability. Consistency in responses is essential to prevent any appearance of favoritism or bias. For example, if two prospects inquire about the same unit, the responses they receive should not differ in ways that could be perceived as discriminatory. All leasing professionals should be equipped with standardized language to address these situations, ensuring a uniform and compliant approach.
Another consideration is the tone and content of written communication with residents. Professionalism must be maintained at all times, even when dealing with difficult or hostile situations. Emails represent an official form of communication, and as such, they should be approached with the understanding that their contents may later be scrutinized in legal or regulatory contexts. It is critical to remain composed, clear, and respectful, avoiding language that could escalate tensions or be misinterpreted.
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Balancing Efficiency and Personalization in Written Responses
While templates and canned responses can improve efficiency, their use must be approached with care. Generic responses may be suitable for common inquiries, but personalized communication is necessary for more nuanced or unique situations. A failure to adapt responses to the context can leave residents or prospects feeling dismissed, potentially damaging the relationship and raising questions about the company’s commitment to fair housing principles.
This is where training becomes invaluable. Staff must be equipped with the knowledge and judgment to discern when a situation requires a tailored response. Ongoing training programs should address not only the technical aspects of fair housing compliance but also the soft skills necessary to bring a human element to written communication. This balance between professionalism and empathy is what distinguishes truly effective property management operations.
Preparing for Success in the Year Ahead
The start of a new year offers the perfect opportunity to review and strengthen your company’s policies and communication practices. Begin by conducting a thorough audit of your fair housing policies and written communication guidelines. Identify any gaps or areas in need of refinement, and make it a priority to address them.
It is equally important to engage your team in this process. Gather feedback from staff on the challenges they face when applying policies or crafting responses, and use this input to inform updates and training programs. Establish a schedule for regular policy reviews and training sessions to ensure these foundational practices remain top of mind throughout the year.
Finally, remember the power of written communication as a tool to build trust and foster positive relationships. By prioritizing consistency, professionalism, and a human touch, your team can set the tone for a successful year while reinforcing the company’s commitment to fair housing compliance and exceptional service.
Conclusion
In the property management industry, success is built on a foundation of strong policies, clear procedures, and professional communication. As the new year begins, take this opportunity to reaffirm your commitment to these principles. By investing time and effort into refining your fair housing policies and enhancing written communication practices, you can navigate the complexities of property management with confidence, fostering trust and compliance in every interaction. Let this year be one of growth, consistency, and renewed dedication to excellence.
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Written by Kevin Kiene
A common question from Landlords is, what do I do when Tenants stop paying rent? It’s a frustrating issue for many Landlords and a top concern for investors considering getting started with long-term rentals.
While it’s a common source of angst, the reality is that the right property management systems can dramatically reduce the risk of having Tenants who are behind on rent. Landlords rarely have to deal with Tenants falling behind on rent when they:
- Keep their property in good condition
- Thoroughly screen Tenants and only rent to qualified applicants
- Communicate well with Tenants
- Have clear policies for late rent
That said, sometimes it happens and Landlords need to know what to do when it does. With that in mind, here’s a step-by-step guide for dealing with Tenants who fall behind on rent.
Step 1: Review Your Lease Agreement
Your Lease is crucial when things go wrong. Your Lease Agreement should specify the day rent is due each month. It also may provide a grace period for paying rent. Some states require grace periods, others don’t. Your first step should be checking the Lease to confirm that rent is late.
You should also review your Lease for details about late fees and late fee policies. Before contacting your Tenant, you want to make sure you’re familiar with all Lease terms dealing with late rent.
Step 2: Remind your Tenant That Rent Is Late
Ideally, you use a rent payment system that sends reminders when rent is due and past due. That said, sometimes a Tenant just forgets to pay rent. Start with a friendly reminder to your Tenant that rent is late. This can be as informal as a phone call or text. You can also send a Late Rent Notice.
More often than not, this reminder is all it takes for a Tenant to get current on rent. However, in some cases, there’s a bigger problem and you’ll need to work with Tenants. If this is the case, you want to talk with the Tenant about a plan to get them back on track. It’s important to strike the right tone in this conversation – you want to be firm, professional, and respectful.
Life happens and everyone has seasons where they get behind. If your Tenant is communicating with you, try to work with them to create a plan to get them back on track. This is ideal for both parties.
Step 3: Send a Notice to Pay or Quit
If your Tenant isn’t communicating with you or is unwilling to work with you, send an official Notice to Pay or Quit. The Notice gives the Tenant a set number of days to get current on rent or vacate the property. The period varies from state to state. Use your state-specific form to customize this official notice.
Many Landlords hesitate to take this step, but we’d encourage you to be proactive. It’s a good way to determine whether your Tenant plans to stay in the property or move out. If your Tenant isn’t going to stay, you want to figure this out as soon as possible.
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Step 4: Consider a Cash-for-Keys Agreement
If the Tenant doesn’t pay within the period provided in your Notice to Pay or Quit, you have two options: offer a Cash-for-Keys Agreement or begin the eviction process.
In a cash-for-keys agreement, the Tenant agrees to vacate the property in return for a one-time cash payment. While this might sound counterintuitive to Landlords, it’s cheaper and faster than an eviction and a good last attempt to negotiate with Tenants.
We always encourage Landlords to try a cash-for-keys agreement as a way to minimize move-out costs and time. You want to get a bad Tenant out as soon as possible so that you can get a good Tenant in your property.
Step 5: Start the Eviction Process
If the Tenant doesn’t pay or accept a cash-for-keys agreement, it’s time to start the eviction process. We always encourage Landlords to hire an attorney to handle this.
The eviction process is time-consuming and complex, and it’s essential to do every step following state laws. A local attorney who specializes in evictions will ensure everything is done correctly and that the process goes as smoothly as possible. Plus, it’s one less headache for Landlords to handle.
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By Adina Rogoz
As cities grow and evolve, so do challenges such as rising land costs, environmental concerns and the pressure to meet modern lifestyle needs. For real estate executives, these problems come down to one key question: Should you build from the ground up or revamp existing structures?
Building new brings the freedom of starting fresh and the ability to incorporate cutting-edge designs and meet the latest energy efficiency standards. However, it often comes with higher initial costs and longer timelines. Meanwhile, revamping existing properties can preserve historical charm, reduce waste and minimize disruptions to established communities—but it also means navigating the complexities of outdated infrastructure.
To unpack this complex topic, we reached out to Nick Sinatra, founder & CEO of Sinatra & Co. Real Estate, which owns and manages more than $700 million in real estate assets, including 5,000 multifamily units, most of which are located in the Northeast. Although the company focuses on acquisitions in core-plus markets, as well as residential development and management, it also invests heavily in urban infill and adaptive reuse projects.
What are the top factors that developers consider when deciding between building new or revamping an existing property?
Sinatra: It always comes down to the return on investment analysis. Then there’s capability—some firms don’t have the experience or stomach for an adaptive reuse. Putting a structure up based on a set of drawings is straightforward. Tearing into existing walls and building systems can be very challenging and provide many surprises. Additionally, most construction professionals can predict with a good degree of certainty how long a new build will take in a given market/location. That’s not always possible for renovations.
How does the timeline for revamping a building compare to a new build?
Sinatra: It really all depends. Sometimes renovations could be faster since you have walls, foundations, roofs etc., already in place. Sometimes there can be huge problems or unforeseen delays that take much longer than a new build. We typically build multifamily and mixed-use structures in 12 to 14 months—in addition to the entitlement timeframe.
What are the primary challenges associated with renovating an old building?
Sinatra: Surprises. When building new, an architect has a set of plans and the development team can go build it. With adaptive reuse, there can be unknown and unwanted problems behind walls and with other elements of the job that create unforeseen headaches—and costs.
In many cases, you cannot know for certain where items are located and what condition they are in until you physically get into the structure and, even then, something could be one way on a floor and then very different on another floor that was built years later or changed without plans or approvals years ago. Change orders tend to be more frequent with renovations versus new builds, especially with an inexperienced team.
What are the advantages of repurposing older buildings for modern use?
Sinatra: One of the advantages is marketability. Customers love the uniqueness and history that can sometimes be unlocked and celebrated when repurposing older, historic structures. Another advantage is community accolades. Most communities welcome the restoration and enhancement of noteworthy historic buildings versus knocking down and building new.
Lastly, uncovering, restoring and celebrating the craftsmanship of yesteryear. Many times, older structures were built with materials and techniques that would be cost-prohibitive in new construction. For example, we restored an office building in Buffalo, N.Y., that was completed in the late 1890s where the terrazzo floors were individually hand-installed one-inch tiles—they now look as beautiful as they did more than 125 years ago.
Tell us more about how Buffalo’s former Women and Children’s Hospital became Barton Apartments.
Sinatra: Developing buildings in Buffalo, one of our strengths is historic preservation. The conversion of the former Women and Children’s Hospital was certainly unique given the fact that it was a hospital—something we don’t typically associate with the word “historic.” When looking at the floorplans, we were able to effectively treat the former examination rooms and offices as essentially a framework for new apartment dwelling units.
The building has some wonderful exterior architectural detailing, but the inside certainly had the look and feel of a former hospital with linoleum flooring, interesting paint colors, etc. We were able to effectively work with the National Park Service to preserve any historic detailing with the plaster work while still modernizing the interior units and create a historic product that would still be attractive to the modern-day tenant base.
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Are there any regions or cities where one approach is more advantageous than the other?
Sinatra: Some cities have been more focused over the last half-century on preventing the demolition of historic structures than others, so there is more supply to work with. For example, Charleston, S.C., has long been renowned for its rigorous preservation efforts, with ordinances dating back to the 1930s to protect its historic downtown. Similarly, cities like Savannah, Ga., have maintained their historic districts through strict zoning laws and the establishment of organizations like the Historic Savannah Foundation.
Another factor is economic incentives. Some cities and states offer economic incentives such as historic renovation tax credits to make the risks associated with the renovation projects more palatable for investment. For instance, Missouri offers a historic preservation tax credit that has spurred the redevelopment of countless buildings in cities like St. Louis and Kansas City, such as the renovation of the historic Union Station Hotel in St. Louis. Similarly, Maryland’s Sustainable Communities Tax Credit has encouraged developers to undertake large-scale projects like the redevelopment of the historic American Brewery building in Baltimore.
How do you expect urban development to evolve over the next decade?
Sinatra: It’s all about infill in the next decade. Land is scarce, and the opportunities will arise in a scattershot approach based on repurposing older buildings that have been vacated or have become inefficient or obsolete—think office to residential or enclosed malls into data centers or mixed-use. I predict more residential for sale and for rent, and more experiential real estate as people are still going to want to be in our urban cores for all the reasons we have wanted to for the past few hundred years.
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Provided by America Apartment Owners Association
As Southern California faces one of its most devastating fire seasons in recent history, the rental housing market in Los Angeles has seen troubling trends. Thousands of families displaced by the fires are struggling to find housing, and in some cases, rents are spiking alarmingly in areas affected by the destruction.
A recent investigation revealed a Bel Air home listed at $29,500 per month—nearly double its September price of $15,900. While the listing was later removed, the spike in rental costs reflects a troubling phenomenon: post-disaster price gouging. California law prohibits price increases of over 10% during a state of emergency, yet reports of rental price hikes continue to surface.
California Attorney General Rob Bonta urged residents to report suspected price gouging. “If prices look really out of whack—if they’ve increased from what you’re used to—report it to us. We’ll take it from there,” he said.
Michael Lens, an urban planning professor at UCLA, noted that the sudden influx of displaced residents is putting immense pressure on the rental market, particularly in communities adjacent to the impacted areas.
A Positive Response Amid the Chaos: Ratner Property Management
While some landlords have capitalized on the crisis, others are stepping up to support their communities. Ratner Property Management and Maintenance, an AAOA member, is one such example. They’ve taken meaningful action to assist displaced families and individuals.
“To our Los Angeles County communities: As the fires continue to impact families, friends, and loved ones, we at Ratner extend our deepest sympathies to everyone affected by this catastrophic devastation,” said Dena Palmer, a representative of Ratner Property Management.
Palmer explained how Ratner is working with property owners and landlords across Los Angeles County to offer special accommodations to displaced families such as month-to-month leases and waived move-in fees. Additionally, the company is providing free appraisals and assessments for fire-damaged properties.
“We aim to help families and individuals find safe spaces as Los Angeles rebuilds. For those whose homes have been damaged and require substantial renovations or cleanup due to fires and related damages, we offer free appraisals and assessments for debris and repairs,” Palmer emphasized.
Ratner’s commitment to aiding the community is a beacon of hope during these challenging times. Their team has been serving Southern California for over a century, demonstrating resilience and care when it’s needed most.
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Taking a Stand Against Price Gouging
The actions of Ratner Property Management and others like them highlight the importance of community support and fair practices in times of crisis. As landlords, property managers, and renters navigate the fallout from these fires, AAOA encourages its members to act with integrity and compassion.
If you witness or experience price gouging, report it through the California Attorney General’s website. Together, we can ensure that the recovery process is equitable and supportive for everyone impacted.
By showcasing both the challenges and the inspiring actions of members like Ratner, AAOA hopes to encourage others in the industry to lead with empathy and action during this time of need.
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By John Triplett
The Justice Department, together with 10 state co-plaintiffs, has filed an amended complaint in its antitrust lawsuit against RealPage to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters, according to a release.
The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters.
At the same time one of the landlords, Courtland Management, agreed to cooperate with the justice department and enter into a settlement to end the use of common rental-pricing algorithms and competitively sensitive data to set rents.
Atlanta-based Cortland manages more than 80,000 rentals in 13 states. A related federal criminal investigation that led to a May 2024 search of its headquarters has been closed, a spokesperson told ProPublica, which started the investigation into the pricing schemes.
The spokesperson said the company is “pleased” to announce the settlement. “We believe we were only able to achieve this result because Cortland has invested years and significant internal resources into developing a proprietary revenue-management software tool that does not rely on data from external, nonpublic sources,” the spokesperson said.
Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division said in the release, “While Americans across the country struggled to afford housing, the landlords named in the lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high.” The “action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
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Justice Department Sues 6 Large Landlords
The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including:
- Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics.
- Regularly conducting “call-arounds.”
- Participating in “user groups” hosted by RealPage.
- Sharing information with competitors about parameters in RealPage’s software.
Co-plaintiffs in the case are the attorneys general of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington.
RealPage Senior Vice President Jennifer Bowcock called the federal case “flawed” and said the company is “committed to vigorously defending ourselves and our customers against the DOJ’s accusations.” RealPage has already changed its software to remove nonpublic data, despite its view that its technology was legal and “pro-competitive,” she told ProPublica.
A White House report released in December estimates the nation’s renters overpaid by $3.8 billion in 2023. The White House cited RealPage as the primary provider of rental-pricing algorithms. Companies like RealPage use their tools to suggest optimal rent for landlords to charge.
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Provided by Rental Housing Journal
Generally, landlords are responsible for tree maintenance on their rental property unless the lease specifically states otherwise, tree experts say.
Trees are attractive to renters and potential tenants who want to live near beautiful trees so make sure the trees on your rental property reflect the quality of your rentals. Trees attract birds and purify the air to make living in your rental home more enjoyable.
It can be easy for a landlord to overlook tree maintenance until a tree emergency suddenly happens and then it is a sudden emergency tenants want taken care of.
So, it is important for landlords to evaluate and monitor the health and vitality of trees on their rental property and this is best left to an expert certified arborist such as those at Grove Tree Care in Oregon. Arborists should have credentials from respected institutions like the International Society of Arboriculture (ISA), as they are well-versed in the science and art of arboriculture. Staying current with the latest advances in tree health and safety is also important.
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Other tree services to consider from an arborist are:
- Tree Pruning and Trimming: Enhancing the beauty and safety of trees through skilled pruning.
- Tree Removal: Conducting safe and efficient removals when trees pose a risk or are no longer viable.
- Stump Grinding and Removal:Clearing away remnants for a clean and usable landscape.
- Tree Cabling and Bracing: Providing structural support to preserve and protect your trees.
- Emergency Tree Services: Responding swiftly to urgent situations with a 24/7 emergency service in Wilsonville, OR.
Also, as a landlord it is a good idea to monitor tree health on properties that adjoin your rental as trees from a neighboring property could fall and impact your rental and tenants.
Remember if you have trees on your rental property, it is important to control the growth. Also, you do not want tenants taking it upon themselves to cut down tree branches. So, tree maintenance should be part of your preventative maintenance.
Too, if you have questions on whether landlords are responsible for issues around trees, it is best to check with your attorney.
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Provided by The Fair Housing Institute
Marijuana use in rental housing presents a fair housing challenge for property managers who need to navigate the legal complexities in federal and state laws.
Navigating the legalities of marijuana use within property management is an ongoing challenge as states increasingly adopt diverse regulations.
This variance between state and federal laws places property managers in a complex position, tasked with adhering to legal requirements while addressing the needs and rights of residents.
This article provides a comprehensive overview for property management professionals to manage these legal complexities efficiently, fostering a compliant and supportive community environment.
State Law versus Federal Law
Navigating the complexities of marijuana laws can be perplexing for property management professionals.
Despite marijuana being legal for medical or recreational use in numerous states, it remains prohibited under federal law. This discord between state and federal regulations often confuses housing policies. It’s crucial for property managers first to understand these legal distinctions as they develop guidelines for their properties, particularly when dealing with federal funding constraints.
How Your Property’s Funding Can Affect Policies
The source of your property’s funding plays a pivotal role in the policies you can enforce regarding marijuana use.
Properties that receive federal funding must adhere to federal laws that do not recognize the legality of marijuana. This means that regardless of state laws, properties with federal ties must prohibit marijuana use to remain compliant. Conversely, privately funded properties in states where marijuana is legal might have more flexibility in setting their policies.
No-smoking policies in residential properties play a crucial role in decisions regarding marijuana use.
Initially aimed at preserving air quality and minimizing fire risks, these policies naturally extend to prohibit all forms of smoking, including marijuana. This comprehensive approach prevents confusion and ensures uniform enforcement across all residents. In regions where marijuana is legally permitted, property managers must balance these no-smoking policies with potential medical accommodations, possibly suggesting non-smoking alternatives like edibles or vaporizers to comply with both health standards and legal requirements.
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Reasonable Accommodations and Their Verifications
When a resident requests a reasonable accommodation for the medical use of marijuana, property managers face a complex and sensitive task.
Verifying the legitimacy of such medical claims is not only legally necessary but also a meticulous process, often involving the review of medical marijuana cards or prescriptions.
Due to the intricate and varying nature of state and federal laws and the detailed attention required to ensure authenticity, these decisions should be reserved for senior management within the property management company.
Furthermore, consulting with a fair-housing attorney is crucial to establishing a robust, consistent verification process that meets legal standards. This approach ensures compliance and maintains a uniform policy across all resident requests, safeguarding the property management against potential legal challenges.
Other Resident Complaints
Handling resident complaints related to marijuana use, such as the odor from smoking, requires a balanced approach.
While it’s essential to accommodate medical needs, the comfort and well-being of other residents cannot be overlooked. If your property permits smoking and marijuana use aligns with state law, consider practical solutions to mitigate the impact and be prepared to discuss alternatives. For properties with a no-smoking policy, this rule would extend to marijuana as well, thereby simplifying policy enforcement.
As the legal landscape around marijuana continues to evolve, property-management professionals must stay informed to ensure their policies comply with both state and federal laws. Regular training and updates on fair-housing laws are crucial in navigating these complex scenarios and ensuring compliance and high resident service standards. By understanding the intricacies of marijuana legislation and its implications for property management, you can better serve your community while upholding the law.
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By Brad Kraus
Tenants may make unreasonable demands over maintenance issues asking for compensation or damages so landlords need to know the law.
The landlord/tenant relationship naturally has its ups and downs. Anyone who has ever lived in a house knows how things inevitably break down, need repairs, and/or require fixing.
In my experience, most of these items are small inconveniences that landlords and tenants work out between themselves without the need for attorneys like me. Occasionally, I have seen tenants make unreasonable demands for rent credits, damages, and other monetary claims for the smallest of inconveniences—if they can be called that.
Fortunately, much of these demands can be pushed back upon, if the landlord has knowledge of the law and their legal obligations.
As an initial matter, Oregon landlords are required to provide habitable housing consistent with ORS 90.320, which is commonly known as the “landlord duties” statute. If the premises “substantially lacks” any of the items set forth within that statute, then a tenant may have a claim for diminution of rent. On that point, it is important for both tenants and landlords to understand that diminution does not immediately mean “a month of rent.”
Diminution of rent is often discussed as a percentage of diminution—i.e., how much of the premises is diminished—or how much of the daily rent should be discounted based upon said diminution. An old case practitioner’s reference for this point is Lane v. Kelley. Additionally, diminution of rent is only discussed in terms of the stated monthly rent, and no more. The case to review for this point is L&M Investments v. Morrison.
These two cases inform the basis of legal analysis as to damages that may or may not be owed to a tenant for a particular issue. It goes without saying that any maintenance issue should be remedied as quickly as possible to avoid triggering any demands for compensation or damages. However, that’s not always attainable or avoidable.
For example a maintenance issue. Assume that a tenant’s bathroom—one of two they have in the premises—was out of commission for a week. Because the property has multiple bathrooms, the premises may not “substantially lack” what is required under ORS 90.320 at all. Even if it does, it would certainly be an appropriate argument that the premises was not diminished by 100% of the rental amount. However, even assuming that it was diminished by 100%, the tenant would not be entitled to any diminution of rent beyond one week (as that’s the amount of time it took to remedy the issue).
Additional issues can arise when substitute housing is brought up. ORS 90.365 discusses substitute housing, which is required if the landlord “intentionally or negligently fails to supply any essential service.”
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After a notice period and allowing the landlord “a reasonable time and reasonable access under the circumstances to supply the essential service,” the tenant may procure substitute housing if the dwelling unit is unsafe or unfit to occupy. This provision is not triggered under the following circumstances:
(a) The landlord substantially supplies the essential service; or
(b) The landlord is making a reasonable and good-faith effort to supply the essential service and the failure is due to conditions beyond the landlord’s control; or
(6) …. if the condition was caused by the deliberate or negligent act or omission of the tenant or a person on the premises with the tenant’s consent.
If substitute housing is required for some reason, then it behooves the landlord to control the substitute-housing cost by either offering the tenant a vacant unit in the complex/property, if available, or by procuring an extended-stay hotel with kitchen facilities in the area.
If that doesn’t happen, and tenants are left to their own devices, it is not uncommon for tenants to book Airbnbs and seek to recover those costs from landlords. While the statutes contain some pushback for such actions, litigation that often comes after substitute-housing demands will cause costs to skyrocket beyond the costs of that Airbnb.
Habitability issues are no fun.
Things like acts of God that displace tenants—which, in my opinion, are not the fault of landlords, despite what other narratives exist—often arise and sour the landlord/tenant relationship beyond repair. While that likely cannot be stopped, positioning yourself to mitigate costs and expense associated with such things requires knowledge of the laws, rules, and cases that control the analysis.
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By Alondra Segoviano
When a renter is late on rent, landlords generally charge a fee each day the payment is late. Doing so not only penalizes renters for violating their lease obligations of making their payments, but the fee can help you cover costs normally covered through rent.
However, late rent fees are tricky considering each state and municipality varies on how these can be priced and when they can be applied based on grace periods. Plus, different factors go into determining a late rent fee, such as price caps, to ensure it’s reasonable based on your rent price.
With that in mind, we provide a breakdown of how to calculate your rent fee per day, how to collect them, and tips for avoiding delayed payments.
Landlord-Tenant Laws on Late Fees and Grace Periods
Before charging late fees, refer to your local landlord-tenant laws to determine if there are any restrictions you must abide by. For example, landlords in Arkansas cannot charge more than $30/per month or 20% of their monthly rent price in late fees.
Other states have no restrictions on how much you can charge but local municipalities might have laws that require fees to be stated in a written lease agreement to be enforceable with price caps. For this reason, double-check local laws and consult with a legal professional.
Law Fees by State
Below is information on landlord-tenant laws related to late fees and grace periods for the top states. For additional information, please consult with a legal counsel.
- Alabama: Late fees and grace periods are not regulated by Alabama. However, landlords can charge a late fee if it’s written in the lease.
- Arizona: Landlords cannot charge a penalty fee for late rent payment unless a tenant is allowed a minimum of five days beyond the date the rent is due.
- Arkansas: Landlords can charge a late fee for each month the tenant does not pay rent when due so long as the fee does not exceed the greater of $30.00 per month or 20% of the amount of monthly rent, and if the amount of a late fee and the conditions for imposing a late fee are written in the lease.
- California: Late fees are only enforceable if specified in the lease and reasonably priced related to the costs that the landlord has due to the rent payment being late. If the late fee amounts to a penalty, this is not legally valid.
- Florida: Late fees and grace periods are not regulated by Florida. However, it’s best practice to include late fees in a written lease agreement.
- Georgia: Georgia does not address late fees or grace periods, which means landlords are allowed to charge such fees so long as they’re stated in a written lease.
- Hawaii: Landlords may charge a late fee of not more than 8% of the monthly rent and are not required to provide a grace period.
- Idaho: Idaho does not regulate the amount of rent, deposits, or fees landlords can charge.
- Illinois: Late fees cannot exceed $20 or 20% of one month’s rent and cannot charge late fees until five days after the due date.
- Indiana: No law governs late fees or requires landlords to provide a grace period.
- Iowa: For rental agreements in which the rent does not exceed $700/month, the late fee shall not exceed $12/day or a total of $60/month. For rental agreements in which the rent is greater than $700/month, a late fee shall not exceed $20/day or a total of $100/month. Late fees and grace periods must be in a written lease agreement to be enforceable.
- Kansas: Any late fee or grace period provision would need to be written in the contract to be enforceable.
- Kentucky: Late fees and grace periods are not regulated by Kentucky. However, it is best practice to include late fees in a written lease agreement.
- Louisiana: Late fees and grace periods are not regulated by Louisiana. However, it is best practice to include late fees in a written lease agreement.
- Maryland: The lease shall not provide for a late fee over 5% of the amount of rent due for the rental period for which the payment was delinquent or, in the case of leases under which the rent is paid in weekly rental installments, a late penalty of more than $3 per week or a total of $12 per month.
- Michigan: Michigan does not have statutory provisions for late fees or grace periods. The lease would need to contain late fees and grace period provisions to be enforceable.
- South Carolina: There is no limit on late fees. However, the landlord should state any penalty and fee in the lease agreement. The landlord cannot bring eviction proceedings until five days after rent is due.
- Tennessee: Landlords are permitted to charge late fees. However, the landlord may not charge a late fee over 10%. It is good practice to note the late fee in the written agreement. The state of Tennessee provides a five-day grace period to pay rent.
- Texas: Texas landlords can charge a late fee of not more than 12% of the rent agreed to in the rental agreement. Late fees should be agreed to in a written agreement. Rent is not considered late until the second full day after it is due.
- Wisconsin: To charge a late fee in Wisconsin, the landlord must specifically provide the fee under the rental agreement. Generally, landlords should provide a five-day notice to pay rent or vacate.
Don’t see your state? Visit our Landlord-Tenant Laws directory for more information.
How Much You Can Charge In Late Fees
The amount you can charge in late fees will ultimately depend on your local landlord-tenant laws and what they consider a reasonable price for your area. Considering this, your late fee can be anywhere from $10 to $50 per day rent is late, but this can vary. Some states also limit how much you can charge in total each month, so you’ll want to consider a daily fee that doesn’t go over the monthly threshold.
You must also consider regulations on grace periods — certain states do not consider rent to be late until several days past the due date (versus the immediate day after). So if the state grace period is five days, you cannot charge fees until the renter is officially deemed late on their rent payment.
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How to Calculate Your Late Rent Fee
If your state has pricing restrictions on late rent fees, such as not charging an amount that exceeds a percentage amount of your rent, then you can calculate your fee with the following formula:
RENT PRICE X PERCENTAGE RESTRICTION = MAXIMUM LATE FEE PRICE
To put this into practice, let’s say you’re a landlord in Texas. In this state, you cannot charge a late rent fee of more than 12% of your rent price. If your rent price is $1,400 for a one-bedroom apartment, you cannot charge more than $168 in late rent fees to abide by landlord-tenant laws.
Most landlords generally consider charging up to 5% of their rent price in late fees to be reasonable.
Tips for Implementing Late Rent Fees and Avoid Delayed Payments
Many reasons can contribute to renters being late on rent, such as some not remembering that rent is due, or experiencing a sudden loss of income. While you cannot control when this happens, there are ways to avoid delayed payments or reduce the chances of this happening, such as:
1. Include a Late Fee Policy in a Written Lease Agreement
As stated above, most states only allow landlords to charge late fees if they’re stated in a written lease agreement. That means you cannot simply charge a late fee once a tenant is late on rent if this was not addressed before they moved into the unit.
By including a late fee policy, your renter will know what fees they’ll be responsible for covering if they’re past the grace period and officially late on rent.
2. Set Up Monthly Rent Reminders
While not common, there are times when a tenant is late on rent due to forgetfulness. Sending a rent reminder notice 24 to 48 hours before the due date can give them the heads-up they need to schedule their payment.
You can manually send a monthly rent reminder or use a rent collection app to automatically send this to your renter with a link to submit their payment.
3. Use a Rent Collection App to Automate Late Fees
There are different ways to collect rent, such as a payment platform, rent collection platform, or cash or checks. Each option has its pros and cons, but using a rent collection app is the main option specifically designed to increase on-time rent payments for landlords like yourself.
For example, Avail is a platform that makes it easy to schedule payments, automatically charges late fees once a renter is officially marked late, and sends monthly rent reminders based on your due date. When setting up payments for a new renter, you can turn on our Late Fee Automation feature which will automatically charge your fee once a payment is a specified amount of days past due.
Your renters can also report their on-time rent payments to TransUnion via CreditBoost, giving them an incentive that ensures you’re paid on time and their rent payments can help with their credit.
4. Allow Renters to Pay Rent Bi-Weekly
Renters are looking for ways to budget their money, especially with rent being the largest payment they make each month. Allowing them to pay rent bi-weekly can give them the room they need to pay rent on time without setting them back financially.
If using a rent collection platform, you can split payments directly in the app or schedule two separate payments for the entire rent amount.
Streamline Rent Collection With Avail
In an ideal world, renters would pay rent on time every month, but sometimes they may be late. If that happens, protect your business by charging a late rent fee policy.
To help you collect rent payments and late fees, use a platform like Avail that can streamline the process to save you time and money. You can also see which renters are on time or past due with their payments to stay on top of your rent collection efforts. Get started today with Avail.
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Source: NewsNation
A New York woman is set to be paid $165,000 in damages plus $585,000 for her apartment after the building attempted to evict her because of her three emotional support parrots.
Meril Lesser moved into the Rutherford, a 175-unit cooperative apartment building, in 1999. She lived there with the birds, which the Department of Justice said were to assist with her disabilities, without incident until March 2015. That’s when one of her neighbors started to complain about the alleged noise coming from Lesser’s apartment.
Over the course of a year, the New York City Department of Environmental Protection visited the building and Lesser’s apartment 15 times to conduct inspections. The DEP issues zero violations in any of those instances, with one inspector writing “no birds, no screeching — no noise,” on Feb. 7, 2016, The New York Post reported.
Rutherford did not conduct any evaluation over the noise themselves, and did not hire anyone with experience in soundproofing to address the neighbor’s complaints either, the DOJ said.
In March 2016, Lesser asked Rutherford to let her keep the parrots and gave them a letter from her psychiatrist. Despite this, the DOJ said, the apartment building began eviction proceedings against her in May 2016, causing Lesser “severe emotional harm.” Lesser left the apartment in July of that year, but Rutherford continued to maintain the eviction proceeding “well into 2024,” the Justice Department said.
Lesser filed a complaint with the United States Department of Housing and Urban Development in May 2018, saying the eviction proceeding interfered with her fair housing rights. Under federal law, reasonable accommodations in “rules, policies, practices, and services” must be provided to afford equal housing opportunities to those with disabilities. The Federal Housing Administration allows people with disabilities to use a wide array of animals as support pets, as long as they do not pose a direct threat to others’ safety or health, and don’t damage the property.
Once HUD completed its investigation of Lesser’s case, it stated there was probable cause to believe that Rutherford violated the FHA. Given the choice to settle or go to court, Rutherford chose the letter, so the Justice Department filed suit.
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The DOJ and Lesser prevailed in court, and now, because of a consent decree approved by U.S. District Judge Jennifer H. Rearden, Rutherford was ordered to pay Lesser $165,000 in damages and $585,000 to buy her shares. Rutherford also needs to dismiss the eviction proceeding against Lesser, per the decree, as well as “adopt a reasonable accommodation policy for assistance animals.”
This is the tenth such case brought in recent years by the Southern District of New York. According to U.S. Attorney Damian Williams, it’s also the “largest recovery the Department of Justice has ever obtained for a person with disabilities whose housing provider denied them their right to have an assistance animal.”
“This outcome should prompt all housing providers to consider carefully whether their policies and procedures comply with federal law,” Williams said in a statement. “We greatly appreciate our partners at HUD who provided invaluable assistance in the investigation and resolution of this matter.”
Peter Livingston, an attorney for the Rutherford co-op board, said his client was pleased to resolve the case, the Associated Press reported.
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