By Nancy Abrams
The Americans with Disabilities Act (ADA) and the Fair Housing Act are laws
intended to end discrimination against tenants in their homes and allow them
to have service animals. According to the ADA, service and emotional support
animals are not considered pets and therefore are not subject to a pet policy.
“Even if a lease says ‘no pets’ or restricts pets, landlords are required to make what is called a ‘reasonable accommodation’ to allow pets who serve as assistance animals, which includes emotional support animals,” according to the Humane Society. Those laws allow the landlord to use their discretion in determining whether or not tenants can own a pet as well as what breeds and sizes of animals are permitted. The law also grants landlords the right to impose fees related to pets. But laws about pets may soon change—in favor of the dogs. California legislators are considering a bill that would require landlords to accept all pets, regardless of whether they are service or emotional support animals or not. At the same time, Arizona is considering a law that applies to the acceptance of “restricted” breeds of dogs.
CALIFORNIA STATESMEN CONSIDER NEW DOG LAW
On February 20, 2024, legislation was introduced in the California State Assembly which, if passed, would require property owners in the state to accept renters’ common household pets. Landlords would be prohibited from asking about pets on applications and would also be limited in their ability to charge pet fees or deposits. Specifically, the proposed legislation restricts a landlord from barring a tenant from owning or keeping a standard household pet without valid justification. The bill also prevents landlords from charging tenants extra rent or security deposits for owning or keeping a traditional household pet. Landlords would only be allowed to ask about pet ownership after a tenant’s application has been approved. These restrictions do not apply to rental agreements signed before January 1, 2025. The bill’s author, San Francisco Assemblyman Matt Haney, points out that “landlords, including brand new buildings, can just say no dogs, no cats, period. And that is making our housing crisis a lot worse.”
“Seventy percent of California renters have pets but only 30% of available rentals accept them,” Haney said. “We want a renter to be considered first, and a decision made about whether they meet the requirements for an apartment and then, after that fact, they disclose that they have a pet. And only if there’s a reasonable rationale to deny them, that would be allowed.”
Debra Carlton, the California Apartment Association’s executive vice president of state government affairs said, “The bill does not allow for an increase in security deposits, potentially limiting landlords’ ability to cover pet-related damages.” In response, Haney stated that landlords would have the right to require tenants to purchase pet liability insurance to protect their properties. If enacted, AB 2216 would have a widespread impact on landlords, affecting their legal, financial, and operational makeup. JD Supra advises, “Advocates on both sides must find a balance between the needs and welfare of tenants with the rights and responsibilities of landlords.”
ARIZONA SENATORS MULL NEW DOG LAWS
At the same time, the Arizona Senate is considering their own pet bill that “would prohibit landlords and rental housing providers from setting dog breed restrictions at the properties,” according to Multifamily Dive. “Restrictions often apply to breeds considered dangerous or aggressive, but also frequently cover dogs in the working and sporting breed groups, who are larger and have high energy levels,” according to a recent MarketWatch report. “The dog breeds most commonly restricted, whether imposed by law or by individual landlords, include pit bulls, bulldogs, Rottweilers and German shepherds. “Around 43% of surveyed owners of “restricted” dog breeds have found it difficult to find affordable housing due to their dog and the restrictions compared to 31% of owners of non-restricted breeds,” continued MarketWatch. One in three pet owners of these restricted breeds were charged fees for their pets or were rejected by the landlord due to their pet.
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GOVERNMENT RESTRICTIONS ON PETS
Aside from the ADA and the Fair Housing Act, there basically are no federal laws pertaining to pets. The majority of the states are enforcing breed-restrictive legislation and there are no state-level laws that prohibit the practice. Nevada, Oklahoma, New Hampshire and Alaska have no breed restrictive legislation at all. There are only 10 states that ban breed restrictive legislation outright and limit local governments’ ability to enforce restrictions. Most of these states have some form of breed restriction, such as a required permit for pit bulls. In the great majority of states, there is breed-restrictive legislation currently being enforced and no state-level legislation prohibiting it.
CONSEQUENCES OF PROPOSED PET LAWS
According to JD Supra, “The prospect of AB 2216 requires landlords to potentially overhaul existing lease agreements and adapt day-to-day operational strategies to accommodate pets. Moreover, landlords will have to re-evaluate maintenance procedures to address increased wear and tear, adding to their operational burdens.” Landlords will also need to review their insurance coverage to determine whether they need to increase their liability coverage, which in turn could cause an increase in their premiums.
Additional financial implications should the new bill become law include the cost of any necessary property modifications, higher maintenance expenses and possible legal costs to ensure compliance and to contest any new pet-related lawsuits. Should the Arizona bill pass, landlords would still be permitted to restrict tenants from owning dogs. Arizona Sen. J.D. Mesnard, in a statement to AZ Family, expressed concern that the bill could lead to more landlords banning dogs altogether in order to keep banning specific breeds. The Arizona Multihousing Association is opposed to the bill as written.
Courtney Gilstrap LeVinus, CEO of the AMA, told Multifamily Dive that property owners often must restrict certain breeds because of limits in the building’s insurance coverage. “This may leave a community uninsured or with insurance coverage that is extremely expensive,” Gilstrap LeVinus said.
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Provided by Fair Housing Institute
A live-in aide request. For properties like senior living communities, this is a regular request, and the procedure is memorized by many of the staff. But are your procedures up to date with the Fair Housing Act? For other properties, these requests aren’t all that common and can cause some stress due to lack of experience. What are some of the nuances you should be aware of? Let’s break it down.
Remember, Disability Is a Protected Category
When a resident approaches you, asking questions about the process or even about the form to request a live-in aide, you need to be aware of some pitfalls. Remember, disability is a protected class under the Fair Housing Act. So, during conversations to assist your residents, avoiding certain questions will help you avoid a fair housing complaint. Anything direct, such as the name of the disability or even asking if they have a disability (if they don’t have physical manifestations), should be strictly avoided.
Remember, your company’s reasonable accommodation form or an approved letter from a verifier will more than likely have answers to these questions. You should not ask such questions in your interactions with the resident. Your role in this process is to inform the resident of the proper procedure and help guide them in their request.
Check Your Forms
For management, the drafting of reasonable accommodation forms can be tricky. There are generic ones that you can definitely use, especially as forms aren’t required under fair housing law. However, if your form has open-ended questions, it may be difficult to make the final decision on approving such a request. It is always recommended to employ the services of a fair housing lawyer. Below is a list of possible questions that you may have on the form, specifically for live-in aide requests:
- Does the resident require 24-hour care?
- How many hours a day does the resident require care?
- What services are needed to provide adequate care for the resident?
- Will the live-in aide be a permanent or long-term solution?
The verifier provided by the resident should fill out your property’s provided form. If the resident has already met with a verifier—their doctor as an example—and provided a letter answering the questions found on your form, then a form isn’t required.
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Follow-Up Policy
Your resident has approached you about the need for a live-in aide, and a verified form or letter has been acquired. How do you follow up? Once the need for a live-in aide is confirmed and presented, your procedure must include a few things. First, remember that a live-in aide is not a resident, so while a criminal background check can be enforced, a credit check cannot. What if your resident wants a family member as their live-in aide? This can be permitted as long as it is verified that the family member is there to render necessary care to your resident. You may also need to address an additional reasonable accommodation for a larger unit depending on the current unit your resident is residing in.
As always in any procedure, ensure every interaction and all steps are thoroughly documented. This can help you prevent delays in following through with the accommodation and any miscommunication between different members of staff. If there is a delay in the accommodation, having proper documentation will also help you give a clear answer to the resident in case of questions or confrontations.
Live-In Aide Accommodation Summary
In summary, no matter the type of property, you need to be prepared for any kind of reasonable accommodation request, especially when it comes to live-in aides. Reviewing your procedures, whether they’re well-used or a little dusty, can help you prevent fair housing complaints that could lead to pricey violations.
As touched on before, while generic forms are acceptable, they can make the reasonable accommodation process longer for both parties. Employing a fair housing lawyer to work on your own custom, in-depth accommodation forms can help you save time and avoid delays. In addition, focus heavily on proper documentation training. Especially when dealing with accommodations involving a protected category, keeping all staff informed of conversations and current steps can also aid in avoiding fair housing violations. So, the next time that a live-in aide request presents itself, you can confidently help your resident and stay fair housing compliant.
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By Krista Reuther
Landlords need to verify that a new renter will actually be able to afford the rent they’re charging each month as part of the tenant screening process.
That’s why asking for several income verification documents on the rental application is so common. Before handing over the keys to their swanky rental unit, landlords will also want to verify the provided proof of rent letter along with the rest of the applicant’s income documentation to protect themselves from fraud.
Keep reading to discover how to demonstrate proof of income.
What is Proof of Income for Rental Applications?
Proof of income is a document or set of documents that verify an individual’s stated wages or earnings.
This documentation is used by landlords to determine a tenant’s ability to pay rent. By evaluating a tenant’s monthly income, job status, past payment history, and debt status, landlords can determine if the applicant is a safe choice to fill their rental.
By seeing a renter’s proof of income, landlords can calculate their rent-to-income ratio and see if the applicant would be a good fit for their property. A good rule of thumb is requiring 30% of gross income as a maximum percentage. On top of this, landlords should also run a comprehensive credit check to make sure a potential tenant has a history of making payments on time.
10 Ways to Verify Proof of Income for Rental Applications
1. Income Statement (W-2)
A W-2 is an IRS tax form that must be completed by employers for each of their employees. Employers report total annual wages paid on this form. This document offers valuable insight into an applicant’s overall income status as it depicts a full year’s worth of salary. A W-2 also serves as proof of employment for rental applications.
2. Miscellaneous Income (1099-MISC)
A 1099-MISC is used to report various types of income someone may receive throughout the year for non-salary positions. Independent contractors and self-employed individuals use this form. A 1099-MISC form can also be a useful way to show proof of income for anyone that earns money from an asset or royalties.
3. Bank Statements
A bank statement for rental applications captures the applicant’s history of deposits and sheds light on any dangerous spending habits. Many tenants may find this method of information verification a bit intrusive as they might not want to show you their spending habits. But don’t worry – there are other ways to verify an applicant’s income for those who feel a bank statement is too personal.
4. Pay Stubs
A pay stub, also known as a paycheck or pay slip, is received by employees each pay period and shows their net take-home pay. Pay stubs are easy proof of income for rental applications, but they’re also easy for bad actors to forge. Look out for perfectly rounded numbers, alignment issues, and the use of O’s instead of 0’s when attempting to spot a fake pay stub.
5. Employment Verification for Apartment Renting
A letter of employment verification for apartment or unit renting is a valid method to show a landlord that the applicant has a stable income and also that this income will remain steady over the lease term. Applicants can request an employment verification letter directly from their employer. To streamline the process, an individual may consider downloading a template and bringing it to the employer. We’ve built your downloadable employment verification for apartment renting template – find it below!
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6. Federal Income Tax Return (IRS 1040)
The IRS Form 1040 has a section to report annual income. This document gives an accurate picture of a tenant’s annual income as it shows all sources of income, including income from assets and non-salaried positions. A tenant can request a photocopy of the form or a computer transcript of the information through the IRS.
7. Social Security Benefits Statement
A Benefit Verification Letter is an official letter from the Social Security Administration (SSA). This letter outlines the monthly benefits income received by the applicant, and it’s a great way for individuals who receive retirement, disability, or Supplemental Security Income (SSI) benefits to prove income.
8. Workers’ Compensation Letter
Workers’ compensation provides lost wages and medical benefits to employees who are injured on the job. An individual receiving workers’ compensation can provide a letter detailing lost wage compensation as verifiable income. It is important to note that while this letter can show steady income for a short period of time, these benefits tend to end eventually.
9. Bonus and Incentive Payments
For renters who have commission-based jobs such as real estate agents, another option would be to show documents related to their bonus and incentive payments. Sometimes commission-based jobs do not have consistent payments, which is why it’s important to see if they can afford and be able to pay the rent on time every month.
10. Unemployment Statement
An unemployment statement can be a convenient way for renters who are out of a job to show proof of income. All renters need to do is provide the statement sent by the state unemployment office. Unemployment funds are guaranteed money, but landlords should still check the dates on the statement to see how long the benefits are set to last.
Do Tenants Fake Income Verification for Apartments?
Unfortunately, it’s easier than ever to create fake income verification documents online. Tenants can create fake pay stubs in about one minute using various free or inexpensive online tools. That’s why it’s crucial for a landlord to do their due diligence when reviewing income verification documents and maintain a robust tenant screening process.
Verifiable Income Recommendations for Landlords
Obviously, there is no need for landlords to require ten different income verification documents. Depending on the monthly rent, landlords should ask for two to three proof of income documents.
For individuals who are currently working, it makes the most sense to ask to see several pay stubs or a W-2 and a tax return. For elderly renters, a landlord will need to verify a Social Security Benefits Statement, and for injured workers, a Workers Compensation Letter. For expensive rentals, landlords may also want to consider asking for a bank statement.
It is crucial for landlords to not only ask for proof of income documents from renters but to also look out for fake income verification documents. TurboTenant offers a number of tools to make this process easier for both landlords and renters. In fact, TurboTenant landlords can find a standard rental application and screen tenants for free.
TurboTenant landlords with a Premium subscription also have access to TransUnion’s Income Insights with every screening report.
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By Steve Lockwood
As a multifamily property owner, nothing is more important than keeping your residents and property safe. This means fire safety and protecting your property from one of the most common causes of multifamily property damage, fire damage.
According to the National Fire Sprinkler Association, there are an average of 88,600 apartment fires in the United States per year and it is the third leading cause for insurance claims according to the National Multifamily Housing Council.
The threat of fire damage is real which means multifamily property owners need to take fire safety seriously. As an expert in multifamily fire safety maintenance and testing, I know that many multifamily property owners can limit their liability with very minor fixes to their fire safety plan. Here are a few tips to help improve fire safety at your apartment complex.
No. 1 – Conduct annual inspections
The biggest mistake multifamily property owners make is also the simplest to fix.
All multifamily property owners must do an annual fire safety inspection. Too many apartment owners take too long to do fire safety inspections. I see property owners six to seven months past due for inspections because they have not fixed the deficiencies they were noted for the year prior. An annual inspection is the simplest way to learn about lapses in your fire safety plan. Do these yearly or you will run the risk of insurance not covering you when a fire occurs.
No. 2 – Don’t paint your sprinkler heads
Apartment complex owners are going to paint the interior and exterior of their property at some point.
A paint job is how one of the most common fire safety mistakes occurs. Accidentally painting sprinkler heads is an incredibly common but dangerous mistake multifamily property owners make. Painting a sprinkler head inhibits the spray pattern of the head which hurts its ability to put out fires. A sprinkler head that is painted shut cannot discharge. If you paint over one you have to replace the whole head. You can’t just clean it. Hire a painter who understands this part of the fire code and properly covers up sprinkler heads before doing a paint job.
No. 3 – Replace bad pipes and valves
Sprinkler systems will wear over time. Bacteria from the water in your system will build over time and rust your system from the inside out.
The piping in your fire system is bad on the inside, but it looks perfectly fine on the outside, so you don’t even know there is an issue. Not addressing internally corroded pipes will increase the chances of having a pipe burst. A pipe bursting during a fire emergency will make your sprinkler system unusable. The best way to fix this issue is to hire someone to do an internal pipe and valve inspection once every five years or do one on any multifamily property you are looking to purchase. This inspection will let you know the condition of your pipes and valves and replace any faulty pipes before they fail you in an emergency.
Purchase our 6-Page Inspection Checklist ($9.99). For properties up to 4 bedroom/4 bath and includes all pertinent areas to be inspected, including the exterior.
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No. 4 – Inspect fire extinguishers
Fire extinguishers are the first line of defense against any fire.
If the fire extinguisher does its job in time your more extensive fire system won’t need to activate. Unfortunately, fire extinguishers are also always the last thing to be replaced due to compliance issues. Inspect your fire extinguishers annually; they need a full tear-down inspection every six years. This is when a fire safety expert will break down your fire extinguisher, empty it of powder, clean all the parts, and replace any defective ones. You should get a hydrostatic test every 12 years. This is when your fire extinguisher is filled with water or oil and then pressurized to test the integrity of its shell. Extinguishers get sun damaged, rusted, or dented all the time and are never inspected. Inspecting your fire extinguishers ensures you can stop fires before they become a bigger deal.
No. 5 – Getting a fire safety inspection
You are going to need to get a fire safety inspection at least once per year.
Every piece of fire safety equipment will be marked with the date it was last inspected. Look at that date and one year from that date is when you need to get another inspection. The best way to get a fire inspection is to Google for a fire safety inspector and pick one that has a lot of good reviews. You can also ask any friends or property owners you trust who does their inspections. The fire department does not give recommendations for fire inspection companies in order to avoid the appearance of favoritism.
It is important to note that multifamily property owners are not required to have a specific fire evacuation or communication plan to operate but it is recommended that to create one with the help of an expert. Creating a plan does not need to be complicated. An easily available property map with labeled fire escape routes will go a long way in helping people remove themselves from danger. An annual email to tenants to remind them of your fire safety plan would also be a helpful but not required step to keep people safe during a fire.
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By Frank Jachetta
In recent times, the rental landscape has seen a surge in evictions, posing challenges for landlords in collecting judgments from previous tenants. According to the Eviction Lab at Princeton University, eviction rates have risen steadily, with over 2.3 million evictions filed in 2023. Below are five useful strategies to reduce rental losses.
Strategy #1: Require a Thorough Application and Documentation
Collecting proper documentation and a thorough application first will help you reduce fraud, assess a renter’s financial capability to meet rental obligations, and streamline the process of
collecting rent debt. At a minimum, your application should collect name, date of birth, previous addresses, landlord references, employment information, all income sources, and in states where it’s allowed, a social security number. Check with your legal counsel to best
implement a screening policy that complies with your local and federal laws.
Also, consider collecting the following documents from all adults listed on the lease agreement:
✓ Government-issued identification
✓ Proof of income
✓ Recent bank statement
✓ Tax returns
Strategy #2: Check References and Run a Credit and Background Check
Next, review the applicant’s credit report, particularly their total debt, payment history, and collections. Ideally you want to ensure their debt will not stand in the way of paying rent
and that they have not recently fallen behind on payments. Note that nearly all evictions, tax liens, and civil judgments were removed from credit reports in 2017. Make sure you partner with a tenant screening provider that can provide these types of records in addition to a credit report. Lastly, call the applicant’s previous landlords to find out if they failed to make timely rental payments. If your applicant is employed, you can also call their employer’s HR department to verify their status and salary, which can help you further verify the applicant’s ability to pay rent.
Strategy #3: Utilize Lease and Deposit Protection
Lease and deposit protection from TheGuarantors can reduce bad debt up to 70%. Their Rent and Deposit Coverage can help you open doors to more renters – those who might be harder to qualify based on their income or credit history – without the same risk. All at no cost to the landlord, the products help you recover losses due to rent defaults, lease breaks, damages, vacancies, unpaid utilities, and more. In each case, the renter pays for the coverage that gives them access to the home of their choice and minimizes the landlord’s rental income loss.
While this coverage isn’t a substitute for fraud prevention measures, TheGuarantors offers
financial protection should renter fraud occur. According to TheGuarantors, Landlords who
use their suite of insurance services can see up to a 25% increase in lease conversions, because they can help you lease more confidently to non-U.S. citizens, students, recent graduates, freelancers, and thin-credit or thin-income applicants.
Pricing is determined by several factors such as the renter’s risk profile and the gross monthly
rent. It’s free for landlords to sign up and begin referring renters to get coverage. Renters who purchase a policy with TheGuarantors report a 95% satisfaction rate. Take Romey, for instance, a Vice President of Public Relations, who, despite making good money and always paying rent on time, has faced challenges renting due to past student loan issues. He emphasizes that TheGuarantors was instrumental in helping him get a rental, because they recognize individuals beyond mere credit scores, stating: While tenant screening remains crucial, being prepared for worst-case scenarios with a policy from TheGuarantors offers greater reassurance. Their landlord partners have the option of covering up to the entire term and cost of the lease, including missed rent, vacancy loss, utilities, and fees.
TenantAlert provides the ONLY instant tenant screening service with LeaseGuarantee. The credit screening company with options and guarantees.
▪️ Select from a number of reports including credit background check, nationwide criminal, and nationwide eviction.
▪️ Add up to 4 applicants in one order to screen multiple roommates.
▪️ Use your application or send off the TenantAlert application when vetting tenants.
▪️ You can pay for the credit screening or send a link to your tenants for them to pay for the service.
▪️ TenantAlert has easy to read reports with summaries to help you determine if the applicant meets your qualifications or not.
▪️ They rate the applicant on a scale of 100 and offer a lease guarantee for up to $10,0000 of protection against damages, lost rent, or legal fees that you OR the tenant can pay (starting at $199/year).
Strategy #4: Report Your Renters’ Payments to the Credit Bureaus
Reporting positive and negative payments to the credit bureaus is now possible. You can
help your renters build their credit with every timely payment, and if they miss a month, it will
be reported on their credit as well, incentivizing them to keep paying on time. According to The Credit Builder’s Alliance, “Among residents of one pilot group with a history of regularly paying late, those who agreed to have their rent payments reported were more likely than other residents to substantially increase their rate of on-time payment.” In this pilot study, 79% of participants saw an average credit score increase of 23 points, showing that both landlords and renters can benefit from these programs. Note, California’s Senate Bill 1157, has special
requirements for operators of subsidized multifamily units. Check with your legal counsel
to best implement a rent reporting policy that complies with your local laws.
Strategy #5: Implement Late Fees and Online Rental Payments
Late fees deter renters from paying rent late, but it’s important to ensure your policies are clearly written in the lease and that they comply with these local laws. There are several states that limit late fees to 4-10.5% of the rent due and or a dollar maximum. Although most states don’t require a grace period before you can charge a late fee, a 5-day grace period can offer your renters some flexibility which can foster a better relationship. You can also use property management software to accept automated online rental payments to make it as easy as
possible for renters to pay on time. Software can send renters automated reminder emails when rent is late and a bill for any late fees as well.
CONCLUSION
Although you can’t predict the future, you can take proactive steps to prevent or eliminate
rental losses. Before the lease is signed, implement a comprehensive application and screening process to lay the foundation for reliable rent payments. Then, leverage TheGuarantors’ now so that you’re able to recover rental income loss if it does occur. After your renter has moved in,
strategies like reporting rental payment to credit bureaus, enforcing late fees, and offering online rental payments can provide the right incentives to keep rent payments timely for years to come.
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Source: Active Duty Passive Income
Imagine owning a property where your investment not only grows but also nurtures a thriving community—welcome to the world of mixed-use properties!
In the diverse world of real estate investment, mixed-use properties are a unique and increasingly sought-after asset class. These developments, which blend residential and commercial spaces within a single project, present numerous benefits that attract both seasoned investors and those new to the field. This blog post will delve into the multifaceted advantages of investing in mixed-use properties, highlighting the potential for higher income, risk diversification, and enhanced property values.
What are Mixed-Use Properties?
Mixed-use developments are properties that combine residential units, like apartments or condos, with commercial spaces, including retail stores, offices, or restaurants. This configuration allows for a dynamic community where individuals can live, work, and relax all in one place. The setup of these properties can vary widely, ranging from a single building to an entire neighborhood designed around the mixed-use concept.
The Advantages of Investing in Mixed-Use Properties
- Diverse Revenue Streams
A key advantage of mixed-use properties is the diversification of income sources. By combining residential and commercial leases in one location, investors can access multiple streams of revenue. Residential units generally provide a steady income through rent, while commercial spaces can command higher rental rates and offer longer lease terms, contributing to a more stable cash flow.
- Reduced Investment Risk
Investing in mixed-use properties can also lower risk. These properties tend to be less affected by economic fluctuations than single-use buildings because they are not dependent on just one sector. For example, if the commercial market experiences a downturn, the residential side of the property can still generate revenue, and vice versa. This balance offers investors a degree of protection during economic downturns.
- Increased Tenant Retention
The convenience of having amenities and work close by can lead to higher tenant satisfaction and retention in mixed-use developments. Happy tenants are less likely to move, which helps to reduce turnover costs and vacancy rates. Additionally, the businesses operating in the commercial spaces benefit from the constant foot traffic from the residential community, which can help sustain their operations.
- Enhanced Property Value
Mixed-use properties often become key elements of the neighborhoods they’re in, driving up property values. Well-maintained commercial spaces can make residential units more appealing, while a lively residential community can attract businesses to the commercial spaces. Moreover, these properties often spur further economic development and revitalization in the surrounding area, leading to an overall increase in property value.
- Tax Incentives and Zoning Advantages
Investors in mixed-use properties might qualify for various tax incentives aimed at encouraging urban development and revitalization. These can include lower tax rates, grants, or other financial perks. Zoning laws in many cities are also increasingly supportive of mixed-use developments as part of a broader initiative towards more sustainable and efficient land use.
- Sustainability
Mixed-use properties promote sustainable urban growth by minimizing the need for extensive commuting, thus reducing carbon footprints and enhancing the pedestrian-friendliness of an area. This aspect of sustainability attracts tenants and customers who prioritize environmental concerns and seek convenience and quality of life in their residential and shopping experiences.
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Challenges of Mixed-Use Development
Despite the many benefits, mixed-use developments come with challenges, including the complexity of managing different types of spaces and tenants, higher initial capital requirements, and the necessity of choosing a strategic location that supports both residential and commercial activities. Investors must also navigate complex zoning laws, building codes, and an often demanding approvals process.
Mixed-use property investments offer compelling advantages for those looking to expand their investment portfolios and capitalize on the synergy between residential and commercial real estate. By understanding the unique benefits of these properties, investors can realize enhanced returns while contributing to the development of dynamic, sustainable communities. As urban populations continue to grow, the demand for integrated living and commercial spaces is likely to increase, making mixed-use developments an intelligent choice for proactive investors.
Whether you’re a seasoned real estate professional or just starting out, mixed-use properties are worth considering for their blend of flexibility, stability, and sustainability, standing out as a smart investment path for the future.
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By John Triplett
New data from the U.S. Census Bureau shows a growing number of Americans are spending at least 90 minutes each way traveling to and from work, a practice known as “super-commuting,” Apartment List says in a new report.
While the super-commuting trend is not new, the pandemic provided a “brief respite, eliminating commutes for many and reducing commute times for the rest as traffic abated. As the economy went remote, the number of super-commuters fell by over 1.5 million even as demand for suburban and exurban living remained strong,” the report’s economists say in the report.
The report says the city-to-suburb migration is more recently focused on homeownership and affordable cost-of-living options. That has encouraged families to head to the lower-density suburbs while keeping jobs in the central city.
The latest population estimates from the U.S. Census Bureau show suburbanization vividly, with high-growth counties forming visible rings around urban cores.
Wages Are Higher for Those Willing to Commute Long Distances
“The latest census data clearly show that workers are willing to trade lengthy commutes for higher incomes. In 2022, the median wage eclipses $50,000 for workers who spend at least one hour commuting, and is actually lowest for those who live within a quick 15-minute trip to work,” the Census Bureau report shows.
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The nationwide super-commuting rate is 2.7 percent, but double-digit rates can be found along the peripheries of several large metros in California and Texas, as well as Seattle, New York, and Washington, D.C.
The Los Angeles region has more super-commuters than anywhere else. The nation’s highest super-commuter rate can be found in Palmdale, a 60-mile drive from Los Angeles, where 16.9 percent of all workers commute at least 90 minutes for work.
Super-Commuting and its Implications
Apartment List senior research associate Rob Warnock writes, “The relationship between where people live and where they work continues to evolve. A record number continue working from home; however, many employers appear to be shifting back to in-person or hybrid arrangements.
“This is putting more commuters on roadways and transitways daily – including more super-commuters – and resuming the pre-pandemic trend. Worsening commutes for drivers increase car-related expenses, impact physical health, and amplify the environmental consequences of suburban sprawl. Meanwhile, worsening commutes for transit riders harm quality-of-life in urban cities and disproportionately affect the car-free households that tend to be lower-income. Altogether, this trend may increase tension between workers and employers, as they negotiate working arrangements that affect their commutes.
“Housing is, of course, central to any attempts at cutting back on super-commuting. In cities and suburbs alike, dense construction and infill development (built at a rate that scales appropriately with job growth) can improve housing opportunities so that those who wish to live closer to work can afford to do so,” Warnock says.
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By Kathelene Williams, The Fair Housing Institute
Occupancy limit policies are crucial for managing apartments, whether located in a
densely populated city or a quiet suburb. However, developing and revising these
policies can be complex. Not only do you need to be aware of fair housing laws,
but also know local laws and municipal ordinances on occupancy limits.
How could you hope to balance it all? Better yet, balance it all while trying to avoid that fair housing violation? This in-depth look into not only building your policy but also enforcing it can help you achieve that balance. First, let’s take a look at how occupancy limit policies differ depending on the type of housing.
NAVIGATING OCCUPANCY POLICIES: FEDERAL GUIDELINES VS. PRIVATE SECTOR
Starting with federally funded housing, occupancy policies are already predetermined. You can review the Keating Memo from HUD, which further explains the two person per room rule for this type of housing. However, this rule does not apply to housing such as private market or tax credit.
In all actuality, this rule has been labeled by HUD as possibly discriminatory based on familial status. Because of this, other forms of housing face the challenge of having to create their own occupancy policy and having to undergo constant revision.
BALANCING OCCUPANCY POLICIES: GUIDELINES, LEGALITIES, AND FAIR HOUSING
The best rule to follow when revising or creating your own occupancy policy is that of balance. Using the term balance as your foundation can be a little confusing, so let’s break it down.
A Balanced Policy:
First off, you need to decide upon clear guidelines without creating too much restriction. Top priority must be given to any local laws or any municipal code your property is governed under. Ensure your policy meets their minimum requirements for residents per unit or individuals per room.
The second step is to take a look at your units and your property as a whole. What can the size
and layout of the unit accommodate? Another great tip when revising or creating a policy is
resident details. This may include details such as whether a unit is occupied by all adults or if
there are children residing there as well.
There is an important note to remember when it comes to details for your residents within the
policy. You need to ensure that you do not mention specifics, such as age and gender, in order to avoid a fair housing violation. Sex is a protected category and in many states, age is a protected class.
What NOT to do:
A recent example of a property forgetting these details resulted in a fair housing
discrimination case. An apartment complex in Louisiana had a policy in place stating that two
children of the opposite sex could not share a room. Leasing agents falsely claimed that the property’s policy was based on state law when, in fact, they were discriminating against both age and sex, inciting a fair housing violation.
ENFORCING OCCUPANCY POLICIES: STEPS AND FAIR HOUSING CONSIDERATIONS
Now that you know the foundations of a good occupancy policy, it’s time to understand how to enforce it without inciting a violation. The key first step: make sure you have all the information before proceeding with a lease violation. Once you can confirm that the resident is indeed breaking your property’s occupancy policy, there are a few follow-up steps to take.
Second, follow up on disciplinary measures as laid out by your property’s policy. This may be the requirement for the resident to move to a larger unit or simply cite a violation in the lease
agreement. Remember, as a landlord, you are permitted to enforce your policy. However, there is one fair housing hurdle you and your team should be aware of.
HANDLING ACCOMMODATION REQUESTS WITHIN LEGAL LIMITS
Accommodation requests are inevitable. This includes requests from residents that break policy, including those on occupancy limits. While you want to do your best to ensure that your residents’ needs are met, there is one factor that needs to be considered. No reasonable accommodation can supersede local law or municipal codes. As an example, let’s say a resident submits an accommodation request stating that they need to break policy on a certain unit’s occupancy limit. If that policy is based on local laws stating how many individuals can be in that size unit, you will have to find a different solution for that accommodation. If the request does not break any local laws, then it is safe to follow your property’s procedures to accommodate that resident.
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KEY TAKEAWAYS FOR EFFECTIVE OCCUPANCY POLICY MANAGEMENT
In short, balance is key when it comes to any kind of policy. In the case of occupancy limits, balancing both fair housing standards and local laws and ordinances when taking a look at your policy is the best course of action. If you’re starting a new policy or revising one currently in place, there are a few key steps that should be on your checklist:
✓ Ensure your policy is clear and concise but not too specific. Take care to avoid
discriminating against certain protected categories and classes. As shown in the court
case discussed earlier, these kinds of details in your policy can lead to a fair housing
violation.
✓ As a property manager, it is your responsibility to enforce your policies. Be careful when
investigating, documenting, and explaining any lease violations you carry out.
✓ Reasonable accommodations that violate your property’s policy can happen. Ensure that
whatever the request, it doesn’t break your state’s laws on occupancy limits.
Remember, balance is key to any property with these policies, no matter the location. Let this guide help you to ensure that your occupancy limit policy meets Fair Housing standards, keeping your residents safe in their homes and locking in that property management win.
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Source Rent.
In today’s fast-paced world, renters have diverse preferences when it comes to apartment hunting. Offering a variety of tour options is key to attracting a wider pool of qualified applicants. Here’s a breakdown of the most popular tour types and how to leverage them:
The in-person classic: building rapport and trust
- The gold standard: In-person tours remain a valuable tool. They allow potential renters to get a real feel for the space, ask questions, and connect with the leasing team.
- Pro tip: Schedule tours during daylight hours and highlight natural light. Be prepared to answer questions about the neighborhood and amenities.
Virtual tours: convenience at your fingertips
- Perfect for long-distance inquiries: Virtual tours offer a convenient alternative for renters who can’t visit in person.
- Maximize impact: Invest in high-quality virtual tours with 360-degree views and narration highlighting key features. Make them easily accessible on your website and social media platforms.
Self-guided tours: flexibility for busy schedules
Catering to busy renters: Self-guided tours allow potential renters to explore the property at their own pace, 24/7.
Ensuring security: Implement a secure access system with clear instructions. Provide detailed maps and highlight important features with signage.
Pre-recorded video tours: a quick look and feel
- Showcasing multiple units: Pre-recorded video tours are a time-saving option, especially when showcasing multiple units with similar layouts.
- Keep it updated: Ensure video tours reflect the current state of the property and highlight any recent upgrades.
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The power of choice:
By offering a variety of tour options, you cater to different preferences and schedules.
- Highlight your options: Clearly advertise the various tour options available on your website and listings.
- Flexibility is key: Allow potential renters to choose the tour format that best suits their needs.
Remember:
- Regardless of the tour format, prioritize high-quality visuals, clear communication, and a professional presentation.
- Leverage technology to offer interactive elements like 3D floor plans or virtual staging.
- Train your leasing staff to be knowledgeable and engaging during in-person tours.
By providing a variety of tour options, you cater to every click and make your property accessible to a wider range of potential renters. This translates to a more efficient leasing process and a higher chance of finding the perfect match for your units.
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By Richard Berger
There are new refrigerant requirements coming for apartment communities in the HVAC field for 2024 and beyond to replace R-22 and R-410a.
For apartment communities, there is massive change ahead regarding refrigerants.
While the changes are not at the technician level yet – and won’t be until later this year regarding behavior and supplies – the financial impact is expected to be huge beginning in 2025, according to Paul Rhodes, founder, Directional Maintenance Services.
In response to regulatory changes, the refrigerant industry has been doing its best to create a refrigerant that will most adequately replace R-22 and R-410a. There are several alternatives, and each presents its challenges for apartment maintenance technicians, owners, and customers.
Last year, the Environmental Protection Agency (EPA) adopted a final rule accepting several refrigerant alternatives for use in new residential and light commercial air conditioners and heat pumps.
So, which one should you use? Well, that depends. The two main reasons refrigerants are being replaced are due to how much they deplete the ozone – measured as ozone depletion potential (ODP) – and much heat they trap in the atmosphere, measured as global warming potential (GWP).
The new refrigerants must have a low enough GWP to meet AIM Act standards.
The Most Common Apartment Refrigerant Replacement Contenders
Currently, the most common replacements to be used in systems designed for R-22 are R438A, which is also known as MO99, R422D, and R421A. These replacement refrigerants are often referred to as being “drop ins.”
“When that term is being used it often means you must change the oil, clean the line set, change the line drier, and then make sure compatible oil is being used,” says Mark Cukro, president of Plus One, Inc. “Think of it this way: An automobile owner could use several types of oil in a vehicle, but it is harmful to mix them or have multiple types in a system at the same time,” he says.
For systems designed to use R-410A, there is no replacement. Instead, the entire system will require replacement to be compatible with R-454B and R-32. These system changes are due to the new refrigerants being slightly flammable and require certain safety measures.
One big change is that both are listed as A2L by ASHRAE instead of the rating that R410A has (A1). The rating change means that due to increased flammability concerns, the new system is not allowed to be mixed with portions of the old system.
What’s Required by 2025
R410A is the apartment refrigerant being used in systems currently being produced. While it has no ozone layer effect, it does have a significant negative rating in terms of climate change, meaning a high GWP. There is no “drop in,” so the price of it will rise, by design, to encourage the change to the newer systems/refrigerant.
These are the systems that the AIM act requires to be no longer used after 2024 to force adoption of the new refrigerants. Parts for systems containing all refrigerant types will continue to be available if repaired and may remain in service.
The new refrigerants found in residential systems required to be produced in Jan 2025 are either R32 or R454B. These are the A2L-listed refrigerants referenced above. They have no effect on the ozone layer and minimal impact on climate change.
Due to this distinction, there is no compatibility with R410A, which leads to the large cost that properties will need to absorb.
Example: If a straight cool/split system condensing unit is to be replaced to an A2L refrigerant system, the property is required to replace the evaporator/air handler as well. In the change from the R22 to R410A systems, if performed correctly, the property would only be required to replace the outside unit.
More refrigerant options are on the way, Cukro says. However, the industry overall has not yet really settled on one refrigerant as “the one” to be the industry-wide replacement, he says.
“Select one replacement refrigerant that suits you best and stay with that,” Cukro recommends, “so you don’t wind up with an unknown number of alternatives in the field that can’t be easily identified.
“While it may be tempting to purchase the least expensive refrigerant each time, if that leads to having six different refrigerants on the same property it may be counterproductive, very costly, and difficult to keep good records,” he said.
“R410a is still the choice refrigerant being used by contractors for new installations. So, keep everything simple to track, easy to work on and purchase, and make sure you have the correct equipment as the safety requirements are updated and change.”
On a positive note, the new refrigerants work quite well, are safer for the ozone layer and have a lower warming potential than the refrigerants being phased out.
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Managing HVAC System’s Service History
The apartment industry will need to adjust and adapt as the new apartment refrigerant replacements emerge, Cukro says.
Rhodes, host of The Maintenance Mindset Podcast, says that in the short term, if maintenance teams know how to properly work with current refrigerants, the impact will be minimal procedurally because the same safe-use rules apply. The cost of materials (refrigerant and systems) will accelerate depending on the supply/demand economics.
Thinking longer-term, at the end of this summer, R410A equipment will begin to sell out as suppliers will not want overstock to carry into 2025. At the same time, manufacturing companies will transition their manufacturing lines to new refrigerants so that they have stock before January 2025. Prices will continue to increase.
Maintenance mobile work order apps such as AppWork help maintenance teams to track HVAC work-order data such as the number of callbacks, completion times, and service ratings. It automatically identifies HVAC work orders from the work-order description and uses that to categorize, prioritize, and even assign the work order, accordingly.
Technicians can include the Freon used during work orders and the Freon levels so the next time a technician works on the AC they can check the unit’s service history to see what they or another technician did the last time the unit was serviced.
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