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7 Ways to Handle Noise Complaints in Rental Housing

By James Durr

Noisy tenants can be a real headache for landlords so here are some suggestions in 7 ways to handle noise complaints in rental housing the right way.

If you are the landlord of a property that is home to multiple tenants, or if the building you own is located close to other properties, it is possible that you will receive noise complaints. These complaints may be from members of the local community about your tenants or vice versa, or from different tenants about one another.

Let’s explore how to resolve these complaints about noisy tenants and ensure that tenants and local residents are able to enjoy a peaceful and relaxing experience in and around your rental housing.

Preventing Complaints About Noisy Tenants

Ideally, you should already have taken steps to prevent major sound bleed between and from your rental properties.

If possible, when renovating a property, extensive soundproofing should be included in the budget. You should consider installing acoustic insulation in walls, floors and ceilings, and selecting soundproof doors and windows.

It is also highly advisable to include a noisy tenants clause in any tenancy agreement you produce. This means that, upon signing the document, a tenant agrees that if they are to make excessive noise – particularly during any specified hours – they will be in breach of their contract.

What to Do if You Receive Noise Complaints: 7 Steps

1. Accept the Noise Complaints Graciously and Act Immediately

It’s important that your building is able to maintain a good reputation, and that the tenants who live there  –  and the residents of the local area  – are able to enjoy a positive relationship.

“To this end, if someone comes to you with a noise complaint, show that you are sympathetic to their problem. You should also let them know that you will take steps to resolve the issue straight away,” comments auctioneer and fast home buyer James Durr of Property Solvers.

It may be that the individual making the complaint has already spoken to the “perpetrator.” It’s a good idea to check whether this is the case before doing so yourself. After all, this will give you a clearer idea of how they are likely to respond to you.

2.     Check with Other Neighbors and Tenants

It’s best to corroborate any claims of excessive noise with others who may be affected before taking action.

If you receive a complaint, you may consider checking with other residents nearby to see if they too have been disturbed by the same incidents.

Of course, different people are affected by noise in different ways  –  and sound travels differently from space to space  –  so some individuals may be less troubled by the situation than others.

3.     Look into the Cause of the Noise Complaints

If there is a specific type of sound that is causing problems, there may be a way to resolve the matter in a manner that suits all parties.

Some loud sounds, such as a baby crying or a dog barking, can be difficult to prevent. However, if it appears that the repeated noise is the result of neglect or abuse, this must be reported to the relevant authorities immediately.

In many cases of animal abuse, the owner may be prevented from keeping pets for a number of years in the future. This means that not only will the current animal be spared any further cruelty, but also that the tenant will not be permitted to replace it.

Of course, it’s extremely important that you do not make baseless claims of neglect or abuse just to resolve a noise complaint. Look into the issue as much as you can yourself before deciding to take action of this kind.

4.     Ask the “Noisy” Party to Make Changes

This step is easier to take if you have already included a noise clause in your rental housing agreement, as you can remind the noisy tenant of this fact and reiterate that they are currently in breach of their contract.

Explain to them that, if this continues to be the case, you would be within your right to ask them to remove the source of the noise from the rental property. Be sure to speak politely and allow them the opportunity to explain themselves; after all, there may be another side to the story.


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5.     Get in Touch with a Mediator

If the individual in question refuses to make any changes or to discuss the matter with you in a civil manner, you may need to contact a professional mediator in order to resolve the problem.

Be sure you select an established and experienced specialist, and go to the meeting with an open mind.

6.     Report to Your Local Authority About Noise Complaints

By getting in touch with your local Environmental Health Department, you may be able to make a formal complaint and get a noise-abatement notice issued.

This course of action may be particularly helpful if you have neglected to include a noise clause in your tenancy agreement, but it is also applicable if your own tenants have made noise complaints about other residents of the local area.

7.     Eviction

If the tenant in question is the repeated subject of noise complaints, you may be within your right to evict them.

This may only be the case, however, if you have included a noise clause in the tenancy agreement, and if you have evidence of repeated breaches of that clause.

It is worth remembering that landlords themselves are not responsible for the noise made by their tenants, so no action can be taken against you unless you are the source of the disturbance. However, in order to ensure that your rental housing is a pleasant place to live and to build positive relationships with other local residents, it is always worth doing what you can to resolve problems of this kind.

By carefully vetting tenants, including a noise clause in your tenancy agreement and soundproofing your building, you may be able to avoid any noise complaints whatsoever in your rental housing.

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Is It Possible to Protect Your Property From Wildfires? Here Are Measures You Can Take

Provided by Bigger Pockets

If anything has been learned from the LA wildfires, the answer posed in the title is, yes, it is possible to protect your property against wildfires. However, the best protection probably needs to be done during construction rather than after. 

Why David Steiner’s Home Was the Last One Standing

Retired Waste Management CEO David Steiner, 64, saw his neighbors’ multimillion-dollar Malibu homes burn around him while his appeared unblemished. The Houston exec’s home was built out of stone and stucco to withstand earthquakes. It also has 50-foot pilings built into the bedrock to keep it sturdy. 

“To be totally honest with you, I never in a million years thought a wildfire would jump to the Pacific Coast Highway and start a fire,” Steiner told the New York Post.

“I honestly didn’t think that if we had a fire, this would be the last thing to go,” he said of the 4,200-square-foot, four-bedroom home he bought from a film producer. “The architecture is pretty nice. But the stucco and fireproof roof are real nice.”

Greg Chasen’s Common-Sense Design

Another notable home that escaped the wildfire was a brand-new house in Pacific Palisades, designed and built by architect Greg Chasen in the summer of 2024. His house, like Steiner’s, was a lone survivor amid a sea of destruction. 

A photo of the house posted by the Malibu architect went viral on X, as did a thread on Reddit, as reported by Bloomberg.

Along with luck, the home employed several fire-resistant design strategies, including a front yard free of vegetation and debris, protective concrete garden walls, no eaves or overhangs, and no vents to allow sparks to get inside the roof. Additionally, the roof was made of metal with a fire-resistant underlayment. Clean lines, without multiple dormers and pop-outs, also helped. 

Crucially, the walls of the house also have a one-hour fire rating. Chasen said the deck is Class A wood, as resistant to ignition as concrete or steel. Tempered glass protects the interiors. The front of the house was built with heat-treated wood, shielded from flying sparks and embers by the extruding walls and roofline.

“All of that is best practice for cutting a fire,” Chasen said.

Measures to Make Your Property More Wildfire-Resistant

For those of us who can’t afford multimillion-dollar stone and stucco residences, you can make some practical moves to make your home more fire-resistant. Most involve spending a decent amount of money, but are far cheaper than building a new home.

  • Install fire-resistant siding: According to the Building America Solution Center, the following materials are rated high for fire resistance: fiber cement siding, metal siding, brick or stucco siding, and stucco. Of these options, fiber cement siding is generally the most affordable. Another option is magnesium siding. 
  • Install a fire-resistant roof: Clay/terra-cotta, slate, metal, or composite materials are best as fire-resistant roof materials.
  • Look into fire-resistant glass for windows: This is a burgeoning business expected to reach $16.26 billion by 2033, according to market research firm Fact.MR. Although this material is largely used in commercial construction, it will undoubtedly become more widely available for residential use. This is a worthwhile investment for landlords of larger buildings in both fire-prone and colder climates. 
  • Remove wooden window frames and replace them with fire-resistant ones: Wood frames are elegant and stylish but not practical if you live in an area prone to wildfires.
  • Get fire-resistant doors.
  • NBC News covered this story about a sprinkler system hooked up to a swimming pool via a generator-powered pump, which saved the owner’s Palisades home. Take note. 
  • Keep dry vegetation away from the house: Ensure your defensible space, the first 100 feet around your property, is kept clear of anything flammable. 
  • Consider fire-resistant artificial turf, stone, or concrete instead of natural grass.
  • Clear all gutters of dried leaves and debris.
  • Don’t keep flammable liquids and substances around the home.

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Practical Wildfire Protection Strategies for Landlords

While a landlord might have the best fire protection protocols in mind, that doesn’t mean their tenants will. If you live in a wildfire-prone area, hiring a maintenance company is worth it to ensure a property is as fireproof as possible. This includes meticulously clearing the property from debris, litter, pool furniture, and garbage bins to enforce a defensible zone.

  • Hire a contractor to enforce a hardscape and water features to prevent fire fuel breaks. Concrete interrupts a fuel source from encroaching on a fire.
  • Keep the exterior of the home irrigated during wildfire season.
  • Communities must work together and hold each other accountable to prevent the spread of wildfires from one property to the next. 

Final Thoughts

It’s hard to say” coulda, woulda, shoulda” when people’s homes and livelihoods have been lost. Even with preventative measures against fire, there’s still no guarantee that one spark igniting a few blown leaves won’t penetrate the best defensive strategies. Luck plays a huge part. 

However, property owners need to be aggressive in protecting their assets from wildfires, and incorporating these suggestions will help them accomplish that.

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16 Ways to Avoid Probate

By Robert Friedman

Are you concerned about the lengthy and financially burdensome probate process? Probate court proceedings can be cumbersome, often taking months or even years to resolve, adding stress to an already difficult time for family members. However, there are effective strategies to bypass probate and ensure a smoother transition of assets upon death.

HOW SOLELY OWNED ASSETS ARE DISTRIBUTED AFTER DEATH
Assets held solely in your name, without designated beneficiaries or joint owners, will be distributed
through one of the following legal processes:

Probate

If you have a valid Will or Codicil, your estate will be administered by an Executor appointed by the court

Intestacy

If you do not have a Will, your estate will be managed by an Administrator. In this case, state law determines who inherits your assets. These heirs, known as “distributees,” are assigned as follows:

  • If you have children but no spouse, your children inherit everything.
  • If you have living parents but no spouse or children, your parents
    inherit everything.
  • If you have siblings but no spouse, children, or parents, your siblings
    inherit everything.

ROLE OF SURROGATE’S AND PROBATE COURTS
These courts oversee:

  • The probate and validation of Wills.
  • The appointment of Executors to manage
    estates with a valid Will.
  • The appointment of Administrators for estates of
    individuals who die without a valid Will.
  • Resolving disputes related to the validity of a
    Will or the administration of an estate.
  • THE PROBATE PROCESS: FILING, NOTIFICATION, AND APPOINTMENT OF THE EXECUTOR
    Probating a Will is the first step in any estate administration. The Executor must locate the
    original Will to file with the court along with the Will witnesses’ affidavits, notices of probate, and the petition for probate. State laws require that all beneficiaries and fiduciaries named in a Will, as well as all of the distributees, be notified that the Will is being submitted to probate. Distributees and any person who would be adversely affected by the probate of the Will are given an opportunity to appear in Court to object if they do not sign a waiver indicating consent to probate. If no one has any objection to the Will and the court believes that the Will is valid, it will be admitted to probate and the person named therein will be appointed as Executor. Recognizing that probate can be expensive and time-consuming, each state provides ways for a small estate to be distributed without going through the full probate process if there is no real estate. The size of the estate or the types of assets
    determine which procedure should be followed.

AVOID PROBATE WITH THESE FORMS OF OWNERSHIP
The following assets do not pass through probate or estate administration. Instead, the proceeds go directly to the person named as beneficiary or joint owner of that account.
Utilizing these ownership structures can streamline the distribution of your estate and provide financial benefits to your heirs. The following forms of ownership avoid probate:

  1. Real Estate held as Joint Tenants with the Right of
    Survivorship.
  2. Tenants-by-the-Entirety (spouses).
  3. Transfer on Death Deed automatically transfers real
    estate upon death to the named beneficiary.
  4. Life Insurance unless all beneficiaries are deceased.
  5. An irrevocable or revocable intervivos trust (living trust)
    is created for holding ownership of your assets during
    your lifetime for the benefit of named beneficiaries and
    distributing and/or managing those assets after your
    death. The trust consists of the creator (also known as
    the grantor), trustee, and beneficiary.
  6. Corporation stock jointly owned.
  7. LLC member units jointly owned.
  8. Lifetime Gifts: Sign a power of attorney authorizing your
    agent to make gifts during your lifetime if you are unable
    to do so. With the annual federal gift tax exclusions, you
    can make annual gifts without tax consequences. Giving
    away assets will appreciate in value, such as real estate,
    utilizes your exemptions and shifts the appreciation in
    value to the next generation.
  9. Uniform Transfer to Minors Act (UTMA) custodial
    accounts transfer assets to minors without probate.
  10. U.S. Savings Bonds with payable on death beneficiaries
    or joint ownership.
  11. IRAs/401(k)s: Direct beneficiaries avoid probate.
  12. Investment Accounts designated as Transfer on Death.
  13. Bank Accounts Joint designated as Payable on Death,
    Transfer on Death, and in Trust.
  14. Annuities.
  15. Life Estate.
  16. Automobiles: Some states allow family members to
    transfer vehicles up to a certain value directly through
    the DMV.

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BENEFITS OF AVOIDING PROBATE

  • Saves time and costs by reducing court fees
    and delays
  • Maintains privacy.
  • Avoids Will contests reducing the likelihood of
    legal challenges to the estate.
  • No Medicaid recovery.
  • Avoids the need for ancillary probate if real
    estate is owned in other states.
  • Preserves your assets from nursing home costs.

RISKS OF AVOIDING PROBATE

  • Not funding your living trust.
  • Not coordinating your non-probate asset
    distribution with your Will.
  • Joint owners can be sued, file for
    bankruptcy, or have an account
    compromised by divorce.
  • Ancillary Probate: This is necessary if you
    own real estate in other states.
  • Loss of capital gains exemptions.

CONCLUSION
Avoiding probate can significantly benefit your estate and heirs, offering privacy, efficiency, and financial savings. However, it requires careful planning and coordination to avoid potential risks. By consulting with legal and financial professionals, you can develop a comprehensive estate plan that balances probate and non-probate strategies, ensuring a smooth and secure transfer of your assets.

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The Ultimate Top 5 Multifamily Markets for 2025

By Ashley Wilson

Combining factors like migration trends, economic diversity, job growth, low unemployment, and recession resilience, here are the five most promising multifamily markets for investors in 2025. Each market has a unique blend of these strengths, making them robust options for steady demand and long-term growth.

1 Dallas – Fort Worth, Texas

Why It’s a Top Pick: Dallas-Fort Worth (DFW) shines due to its strong job market, affordable cost of living, and impressive migration numbers. With an influx of approximately 90,000 people in 2024, DFW is one of the fastest-growing metros in the country. The area’s job market is highly diversified, including finance, tech, manufacturing, and logistics. Major employers like Toyota, JPMorgan Chase, and American Airlines provide job security and high wages, while Texas’s business-friendly policies continue to attract both companies and residents. DFW’s mix of suburban and urban housing options meets a broad range of preferences, driving demand for both single-family homes and multifamily rentals.

Investment Highlights: High net migration, low unemployment, economic diversity, strong population growth, and affordability.

2 Phoenix, Arizona

Why It’s a Top Pick: Phoenix has been a migration hotspot, attracting those moving from
high-cost states, especially California, in search of affordability, job opportunities, and a desirable climate. In 2024, Phoenix gained over 75,000 new residents through net migration alone. The city’s diversified economy spans healthcare, technology, finance, and education,
which provides stability and mitigates the risks associated with economic slowdowns. Multifamily occupancy rates and rent growth have been strong, making it a solid market for rental demand.

Investment Highlights: High migration rate, diversified economy, attractive climate, population growth, and affordable housing compared to West Coast markets.

3 Austin, Texas

Why It’s a Top Pick: Austin combines rapid growth with low unemployment and a tech driven economy, making it a resilient and attractive market for investors. With a jobless rate below the national average and strong growth in tech, healthcare, and government
sectors, Austin has been an anchor for both large companies (like Tesla and Apple) and startups alike. The city’s quality of life, coupled with no state income tax, makes it a relocation destination for professionals from more expensive metros. Austin’s housing demand continues to soar, with steady population growth contributing to rent appreciation.

Investment Highlights: Tech industry growth, low unemployment, job diversity, tax advantages, and strong migration trends.


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4 Charlotte, North Carolina

Why It’s a Top Pick: Charlotte’s strong economic foundation in finance, coupled with a growing presence in technology and healthcare, gives it both stability and growth potential. Known as a major financial hub with the headquarters of Bank of America and Truist Financial, Charlotte also has a growing tech sector. Net migration growth in 2024 reached over 40,000 people, and the city’s cost of living remains relatively affordable compared to many coastal markets. Charlotte’s diverse economy and appeal to both families and professionals keep rental demand high, providing a stable investment landscape.

Investment Highlights: Economic diversity, affordable living, strong job market, high migration, and financial industry hub.

5 Nashville, Tennessee

Why It’s a Top Pick: Nashville continues to attract new residents due to its thriving healthcare, education, entertainment, and tourism industries. In 2024, the city saw a net migration gain of approximately 35,000 people. The city’s healthcare sector, anchored by HCA Healthcare, is a major employer, providing recession-resistant stability. Nashville’s vibrant cultural scene, combined with a low cost of living and tax advantages, makes it popular with both young professionals and families. The strong demand for rental housing and limited housing supply creates a favorable environment for multifamily investments.

Investment Highlights: Resilient healthcare industry, cultural appeal, steady population growth, affordability, and high demand for rental properties.

CONCLUSION: WHY THESE MARKETS ARE PRIME FOR MULTIFAMILY
INVESTMENT IN 2025

Each of these top markets—Dallas-Fort Worth, Phoenix, Austin, Charlotte, and Nashville—have
seen some softness as of late due to new supply concerns. However, 2025 is predicted to have
significantly less new supply reigniting the demand for these markets.
Further, all of these markets have a mix of low unemployment, economic diversity, population
growth, and strong migration trends. Together, these factors offer multifamily investors a stable
foundation and the potential for cash flow and appreciation. For those looking to invest in areas with a strong balance of growth and resilience, these five markets represent some of the best multifamily investment opportunities in 2025.

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2025 To See Decline in Rent Concessions, More Pet-Friendly

By John Triplett

Zillow predicts in 2025 that rent concessions will decline and more rental properties will become pet-friendly.

“Apartment renters enjoyed a relatively friendly market in 2024, at least compared to the record rent growth seen in 2022,” Zillow said in the report.

While landlords in parts of the country have seen rents decline slightly in 2024, the report says “the share of rental listings on Zillow offering a concession — such as free weeks of rent or free parking — is at a record high.” However, the company “expects renters will not have as much opportunity to negotiate for that free month of rent by the end of 2025.”

The multifamily-construction boom is the primary reason for the rise in concessions. More multifamily units are hitting the market than at any time in the past 50 years, pushing property managers to compete for renters. “Those fireworks are predicted to fizzle in 2025, especially in the second half of the year,” the report says.

Pet-friendliness will become nonnegotiable for property managers

The report notes that renters are getting older, and they are not putting off “adulting” milestones such as moving in together or getting a pet before they buy a home.

The median age of a renter has risen to 42, and they are settling into the renter lifestyle. Fewer renters considered buying this year, as renting is more affordable in some markets.

With 58% of renters having a pet — up from 46% before the pandemic — “it is no wonder that nearly half said they passed on a particular property because it was not pet-friendly. In today’s more competitive rental landscape, not allowing pets may put property managers behind the eight ball,” the report says.


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Other highlights from the report:

  • Here is where we get to the report’s bold predictions for 2025. Zillow sees Americans increasingly embracing small homes and attached options. Affordability may be the cause, but a trend toward higher densities is undeniable.
  • The report projects a 2.6% home price change for 2025. That is a solid and manageable number. And there will be at least some shift in favor of buyer negotiating power, though that will be regional, such as in the southwest.
  • The company highlights its “BuyAbility” feature as one way buyers can navigate the often-tricky interplay of prices and mortgage rates to help them figure out precisely what they can afford.

See the full list of 2025 Zillow predictions here

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Redfin Says America’s Renters Are Moving Less Than Ever

By Brad Beckett

A new report from Redfin says renters are moving less than ever, with a third staying in the same home for at least 5 years.  They say the soaring cost of buying a home has pushed many to stay put for longer and the high cost of moving has also discouraged renters from moving regularly.  To produce their report, Redfin analyzed 2023 renter tenure data from the U.S. Census Bureau.

“Monthly mortgage payments have nearly tripled over the past decade, preventing many renters from being able to buy a home…Rents spiked during the pandemic, but have stayed relatively flat over the past two years as home prices and mortgage rates continued to climb. That has encouraged renters to stay in the same home, where they are less likely to face major rent increases. The recent construction boom has also led to a record number of new apartments hitting the market, keeping rents down and setting 2025 up as a renter’s market where more Americans will choose to rent, or remain renters.”  Said Redfin Senior Economist Sheharyar Bokhari.


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Some key points:

  • 33.6% of U.S. renters have lived in the same home for at least five years, up from 28.4% a decade ago.
  • Nearly one in six (17%) renters had lived in the same property between 5-9 years in 2023.
  • Baby boomers stay put the longest, with more than a third having been in their rental at least a decade.
  • Gen Z renters move the most, with more than half having lived in their current home for less than a year. 
  • Renters move most often in Denver, Austin and Salt Lake City.
  • They stay put longest in New York, Los Angeles and Riverside.
redfin

Click here to read the full report at Redfin.

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These Real Estate Investments Will Help Protect You From Recessions

Provided by Bigger Pockets

I don’t know when the next recession will strike. It could come over the next year, or in five years from now. 

But I do know that sooner or later, another recession will rear its ugly head. And I don’t want my portfolio to collapse when it does. 

Every month, I meet online with dozens of other investors to vet a new passive real estate investment, as an organizer of SparkRental’s Co-Investing Club. When we vet investments together, we consider risk first and foremost. And one of the risks that we consider is, “How would this investment hold up in a recession?”

While no investment is 100% recession-proof, some real estate investments perform better than others in recessions. So which investments offer the best protection if the economy takes a turn for the worse?

1. Multifamily With Some Form of Rent Protection

If a tenant is lucky enough to score a rent-controlled unit that goes for hundreds less than the going market rate, they’ll move heaven and earth to keep it. They won’t default on rent until they’ve exhausted every possible path to paying it. 

But rent-controlled units offer just one example of many. In the Co-Investing Club, we invested last year in several properties that set aside 50% of the units for affordable housing. The operator partnered with the local municipality and agreed to cap rents based on local median incomes for those units—in exchange for a property tax abatement. The tax savings adds far more cash flow than was lost on market rents. 

Those units have a waiting list to this day, and in a recession, they’ll still likely maintain 100% occupancy. 

In another case, we invested in a “Section 8 overhang” deal, where the operator bought a Low-Income Housing Tax Credit property, and used a loophole in LIHTC regulations to replace all the tenants with Section 8 voucher holders. They keep the tax credits, collect full market rents, enjoy a government guarantee on most of the rental income, and have an avid renter base that doesn’t want to lose their voucher benefits by defaulting. It, too, will do just fine in a recession. 

These are just a few examples of rent-protected units that become even more coveted in a recession. 

2. Tenant-Owned Mobile Homes

To begin with, mobile homes offer the ultimate affordable housing, and tend to do just fine in recessions. But investors can protect themselves from rent defaults even better by renting mobile home lots for homes they themselves own. 

Fewer of these renters default, because lot rents are cheap, and it’s so expensive to move a mobile home. And if a renter does default, it’s easier for park owners to evict them from a land lease than a typical residential eviction. 

Keep an eye out for mobile home park investments specializing in tenant-owned homes, rather than renting out park-owned homes.

3. Student Housing

In recessions, many young adults opt to skip the bad job market and go back to school. That keeps demand for student housing high, even in recessions. 

Just make sure you protect against all the usual risks of student housing investments, such as property damage and higher turnover rates. 

4. Self-Storage

In the Great Recession, the only property type that didn’t suffer losses was self-storage. 

Why? Because in recessions, people tend to either downsize or move in with family or friends. Both options leave them with less room for their stuff. They need somewhere to put their Furby collection, so they rent a storage unit. 

Unfortunately, many local markets have become oversaturated with self-storage facilities in the years since the Great Recession. Before investing as a fractional owner in a storage facility, do your homework on the local market and competition. 

5. Healthcare Facilities

People still need medical care, regardless of the economy. That provides recession resilience to some healthcare facilities.

Some—but not all. Sure, patients still visit the cardiologist after a heart attack, but fewer people go in for cosmetic and other elective surgeries. If you want recession protection, look for healthcare facilities that service the fundamentals. 

Assisted living facilities can also prove recession resilient, depending on the segment of the market they service, and the local competition. Look for facilities with a long waiting list, indicating plenty of local demand relative to supply. That demand will likely soften in a recession, as some families consider moving in together rather than enrolling their loved ones in a nursing home.

6. Some Industrial Properties

When it comes to recessions, not all industrial properties are created equal. 

Data centers, for example, do just fine in recessions. If anything, people spend more time at home sitting in front of their computers during recessions. 

Likewise, industrial properties that manufacture necessary consumer goods like toilet paper  hold up well. 

But those that specialize in luxury goods or elective services? Expect them to struggle in a downturn. 


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Diversification vs. Concentration

I have no idea what the next hot asset class will be, or the next hot market. The same goes for the inverse: I don’t know which properties will struggle in the years to come. 

Trying to get “clever” or to time the market are fool’s errands. Every time I tried to get “cute” with my investments, I lost. 

Nowadays, I invest $5,000 each month in real estate, as a form of dollar-cost averaging. I now own a fractional interest in around 3,000 units, spread across the U.S., in every property type. I invest as simply one more member of SparkRental’s Co-Investing Club, spreading small amounts of money across many markets, property types, and operators. 

As I get to know an operator better, I’ll invest more with them. But in the beginning, it helps to invest small amounts before betting the proverbial farm. 

Remember, recessions hit different cities differently. Some experience deep depressions, with sweeping job losses and business closures. Other cities see virtually no change at all, or even grow. Diversifying geographically helps you reduce your overall recession risk. 

What Real Estate Investments Do Poorly in Recessions?

Class C and D multifamily properties that charge market rents tend to see spikes in rent defaults and vacancy rates in recessions. The same goes for many retail properties and office buildings. Some businesses go under in recessions, and others consolidate or switch to remote work and servicing. 

House flipping and wholesaling businesses also struggle in recessions, as home prices drop. If the after-repair value drops by 5%, that can wipe out the entire profit margin on a flip or wholesale deal. 

High-end vacation rentals often sit vacant in recessions. Fewer families can afford to spend five figures for a week in Cape May, so they plan more reasonable vacations while the budget is tight. 

Finally, watch out for deals financed with short-term debt, and those with thin cash flow. In a recession, investors need the ability to ride out the bad market. That means they need longer-term financing and strong cash flow so they don’t find themselves losing money each month. If you have the luxury of time, you can wait out the rainy season until sunnier days come along. 

Read up on these additional risks that our Co-Investing Club checks for as we vet passive investments as a club. You can’t eliminate risk entirely, but you can certainly find asymmetric investments offering low potential risk and high potential returns. 

The Upside of Recessions for Real Estate Investors

On balance, recessions are no fun for anyone, real estate investors included. But they do come with several silver linings.

First, interest rates plummet. That makes it cheap to borrow, letting investors refinance high-interest debts or buy new properties with low-interest loans. 

Speaking of buying, property prices tend to dip. That creates plenty of bargains for investors intrepid enough to keep buying while everyone else panics. In 2009, the average home price dropped to $208,400. Bet you wish you could buy average homes at that price today!

Recessions also clear out some of the less-capable competition, who had been over-bidding and otherwise overcrowding the market. 

Like the forest fire that clears the underbrush and makes way for new trees to grow, recessions are painful but necessary. Just make sure you plan for them so they don’t burn down your portfolio, like they have for so many other investors.

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Strengthening Policies, Procedures, and Written Communication in Property Management

Provided by the Rental Housing Journal

Property management and the essential role of policies, written communication and procedures for the year ahead.

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.

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.

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.


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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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2025 Unlocked: Game -Changing Trends for Property Managers and Investors

By Grant Drzyzga

In the winter of 2013, I found myself shivering in my college apartment, a hair dryer running beside me as a makeshift heater. The heating outage lasted three nights. Frustrated yet curious, I visited the property management company’s office—not to complain, but to learn. I asked if I could shadow their operations under the guise of a “class assignment.”

What I discovered was chaos: stacks of disorganized paper and fragmented, outdated software systems. The inefficiency was glaring, and it sparked a vision that would later become Revela: a unified platform designed to optimize property management and create a seamless experience for property managers, investors and residents. Fast forward to today. Revela is helping property managers and real estate investors tackle the challenges of a rapidly evolving industry. As we look ahead to 2025, the trends shaping the property management landscape are clear.

Here’s how you can navigate these changes and position yourself for success.

1. Mandatory Renter’s Insurance: Protecting Your Assets

One of the most significant trends we’re seeing is the tightening of insurance requirements. In high-risk markets like Detroit and St. Louis, insurance carriers are mandating that residents carry renter’s insurance as a condition for insuring the property. This places an additional burden on property managers to track compliance and manage lapses. This trend underscores the importance of staying ahead of compliance issues. Maintaining 100% compliance with these insurance requirements will safeguard against claim denials and protect your assets from unforeseen risks.

How to Prepare:

  • Track Policies Proactively: Platforms like Revela can automate
    the monitoring of tenant insurance policies, notifying you
    instantly if a policy lapses.
  • Update Lease Agreements: Include clauses that allow for a
    damage liability waiver, ensuring continuous coverage even if a
    tenant’s policy lapses.
  • Integrate Solutions: Work with partners to streamline policy
    underwriting, binding, and tracking through your management
    system.

2. Acquisition Growth Amid Lower Interest Rates

With interest rates projected to decrease, the pace of acquisitions is likely
to accelerate in 2025. Property management companies have a unique opportunity
to capitalize on the surge in transactions by aligning themselves with brokers, investors,
and lenders.

By tailoring your efforts to investor preferences and fostering relationships, you can position your company as a vital partner in the acquisition process.

How to Prepare:

  • Vendor Partnerships: Build a strong network of vendors and
    brokers to simplify transactions and add value to your services.
  • Targeted Outreach: Proactively identify opportunities
    that match your investors’ “buy box” criteria—a set of
    parameters that determine what makes a property a desirable
    purchase. For example, many investors prioritize geographic
    concentration to achieve operational efficiencies.

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3. Harnessing the Power of Data

Data has always been the cornerstone of good decision-making, yet the property management
industry often lags in this area. Disconnected systems and incomplete datasets make it difficult to understand the full picture.

When my co-founder, John DeSilva, and I built the first version of Revela, we spent many sleepless nights focusing on how to make data actionable for property managers and investors. Today, our all in-one platform empowers you with insights, so you can make better decisions and identify growth opportunities.

How to Prepare:

  • Centralize Your Data: Use a platform like Revela to aggregate operational and financial
    information. This provides a complete view of asset performance.
  • Leverage Predictive Insights: Advanced analytics can help you identify trends, like when
    investors have enough equity to reinvest or when expenses are out of alignment.
  • Enhance Transparency: Open communication with investors about key performance
    metrics can build trust and alignment.

4. Meeting Rising Investor Expectations

Over the past decade, the gap between casual and professional investors has narrowed. Whether managing single-family homes or multifamily units, investors increasingly expect property managers to provide more than just operational oversight.

Investors are looking for property managers who bring a strategic mindset to the table, not just day-to day management.

How to Prepare:

  • Define Success Early: Align with investors on clear goals, whether that’s achieving a
    specific return percentage or optimizing cash flow.
  • Stay Educated: Keep up with market trends and regulatory changes to maintain your edge
    as a trusted advisor.
  • Provide Value-Added Insights: Go beyond NOI (Net Operating Income) to help investors
    understand how debt, equity, and operational strategies impact their portfolios.

THE PATH TO SUCCESS
The property management world of 2025 is not the same as it was a decade ago—or even five
years ago. Insurance mandates, increased acquisitions, data-driven strategies, and rising investor expectations are reshaping the landscape. But these changes also present immense opportunities for those willing to adapt.

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ADU vs Tiny House: Key Distinctions You Need to Understand

Source: Beach Front Property Management

ADUs (Accessory Dwelling Units) and tiny houses have become distinctive living solutions in compact living. Understanding these options’ differences is crucial for downsizing or seeking an alternate living space.

ADUs are additional living units on the same property as the main house. They can be converted garages, basement apartments, or separate cottages. ADUs allow homeowners to expand their living space and generate rentals while maintaining the privacy of both units. 

On the other hand, tiny houses are compact living spaces intentionally designed to be small and efficient. These houses often feature a minimalist lifestyle, where every inch and corner is maximized for functionality. Their features of affordability and sustainability make them a popular choice for those seeking a simpler lifestyle.

In this blog, we will discuss and explore the differences between these housing units and which compact house suits you.

What is an Accessory Dwelling Unit?

An ADU is a secondary housing unit entirely separate from the main house on the property. ADUs generally have private entrances and have living space, bathroom, kitchen, sleeping room, and eating area. It has everything a main unit has but in a compact style. These living spaces are referred to as granny flats or backyard cottages. These units are mostly garage conversions or basement apartments. 

ADUs are gaining wide popularity for their potential to make extra income and add value to the property. 

What is a Tiny House?

A tiny house is a compact but fully functional home, usually not more than 400 square feet. Inside this miniature house, you find cleverly designed furniture and storage solutions to make the most of every inch. Tiny Houses can be built on wheels for mobility or a foundation, like traditional homes.   

They are cost-effective to buy and maintain in comparison to regular-sized houses. The main concept behind these compact homes is to simplify living and focus on what truly matters to you.  

10 Differences Between ADU and Tiny House

Are you using the terms ADU and tiny house interchangeably? You may be surprised that these units differ in definition and function. Here is a list of 10 differences that can help you understand how these housing options stand apart:

1. Size

ADU:

ADUs are generally larger, with more living space. It ranges from a few hundred to over a thousand square feet(other than the main house).

Tiny House:

Tiny houses are quite small in comparison to other housing options. It usually ranges from 100 to 400 square feet. 

2. Purpose & Location

ADU:

ADUs are built on the same property as the main house. It usually serves as an additional living space for family members or to earn rental income.

Tiny House:

Tiny houses are often standalone and mobile. Its main purpose is efficient minimalist living. It can be placed on various properties or in tiny house communities.

3. Mobility

ADU:

ADUs are stationary structures. Once constructed, it cannot be moved. 

Tiny House:

Tiny houses are typically built on trailers. It makes them mobile and easy to relocate whenever required.

4. Regulations

ADU:

ADUs are subject to local zoning regulations. They are designed to be permanent structures and serve as an additional space in existing property. So, they require permits and compliance with rules by local authorities. 

Tiny House:

Tiny houses are often built on wheels or trailers, complicating their legal status. Although having a tiny house in most areas is legal, some places have legal restrictions. 

5. Carbon Footprint

ADU:

ADUs can be eco-friendly but may have a larger carbon footprint due to their living space and utility requirements.

Tiny House:

Tiny houses are designed with fewer resources. A home that needs to be moved is usually built with different efficiency standards than a permanent house. It results in a small carbon footprint.


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6. Incentives

ADU:

In California, the California Housing Finance Agency (CalHFA) operates an ADU grant program that reimburses a said amount in pre-development costs for qualified builders. 

Tiny House:

In the case of tiny houses, no such schemes or reimbursements exist for the builders or homeowners.

7. Lifestyle

ADU:

ADUs cater to a more traditional lifestyle, accommodating families or long-term residents.

Tiny House:

Tiny houses are best suited for minimalistic, eco-friendly, and mobile lifestyles.

8. Costs

ADU:

ADUs can be more expensive to build due to their larger size and utility connections.

Tiny House:

Tiny houses are generally cost-effective to build and maintain.

9. Ease of Resale

ADU:

These homes are seen as the future of affordable living spaces. Building an ADU adds to the overall value of the property. So, ADU homes are worth the investment and easy to resale.

Tiny House:

The resale value of tiny houses depends on market demand and location. It is difficult to resell tiny home property because not everyone finds the small space comfortable.

10. Ease of Navigation for Older Adults

ADU:

ADUs incorporate features like wide doorways, ramps, grab bars, and step-free entrances, making them accommodating for older adults or anyone with mobility challenges.

Tiny House:

Due to their compact size and loft beds, tiny houses may pose significant challenges to older adults’ mobility and navigation.  

Pros and Cons of Tiny House

Tiny houses offer compact and minimalist lifestyles that are appealing to many. But like any other housing option, it also has a list of pros and cons. 

Pros of Tiny House

  1. They are quick to build.
  2. They are cost-effective to use and maintain.
  3. They are minimalist, reducing clutter.
  4. They are a good option for a bachelor or a family of 2-3 members.
  5. They offer mobility to its residents.

Cons of Tiny House

  1. Putting a tiny house at permanent foundations requires a permit, which can be challenging.
  2. They are often too small to comply with the zoning laws.
  3. They are considered recreational vehicles (RV) by the law, subject to RV codes and taxes.

Pros and Cons of ADUs

ADUs are gaining significant attention as compact housing options. These secondary living spaces are often found in the same space as the main house. It comes with its own set of advantages and disadvantages. Here is the list:

Pros of ADUs

  1. They are customizable.
  2. They are available in a variety of sizes.
  3. They are more complicit with zoning laws.
  4. They can increase property value.
  5. It can be used for multi purposes, like rentals, hobbies, to accommodate expanding family, etc.

Cons of ADUs

  1. They are usually more expensive than tiny houses.
  2. They are built on permanent foundations and can’t be moved.
  3. They have more utility expenses.
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