By Leah Maher
The multifamily rental market is evolving with changing tenant demographics, technological advancements, and changing work dynamics, not to mention that a ton of new construction is about to wrap up. This shift presents new opportunities for property managers to leverage
the demographic data and today’s innovative technologies to enhance their operations, increase foot traffic, and improve tenant retention.
THE IMPACT OF NEW APARTMENT SUPPLY ON THE RENTAL MARKET
A record number of multifamily units are set to hit the market this year. In 2022, building permits were issued for 707,000 multifamily units, the highest number since 1985. Projects initiated two years ago are now reaching completion. As a result, 2023 saw the most apartments enter the market since 1987. And 2024 is on track to surpass those numbers. Several factors are driving this increase in construction. Low interest rates in the early 2020s made financing more accessible for developers, while strong rental demand and rising rents
incentivized new projects. The surge in new apartment supply is already having a noticeable impact on rent prices and vacancy rates, which demonstrates the economic relationship between supply and prices. For investors and developers, these trends highlight the importance of carefully considering local market conditions.
EVOLVING TENANT DEMOGRAPHICS AND PREFERENCES
As noted in the previous section, markets with the most available multifamily properties are seeing a decline in rental value, which equates to more choice for the renter when selecting a home. To make sure your rentals are beating the competition, let’s discuss the insights we can deduce from renters’ demographic trends.
Gen Z’s Growing Influence
The majority of households are headed by adults under the age of 35. Crazy as it sounds, the oldest Gen Z’ers are nearing 30 years old. As a dominant force in the rental market, Gen Z’ers
are more likely to seek out properties with eco-friendly features, smart home technologies, and shared spaces that foster social interaction.
To attract and retain Gen Z renters, property managers should focus on:
✓ Providing self-touring options for interested renters, such as InstaShow
✓ Implementing robust digital platforms for communication, maintenance
requests, and rent payments
✓ Offering flexible lease terms and move-in options
✓ Creating Instagram-worthy spaces and amenities that appeal to social
media-savvy tenants
✓ Emphasizing sustainability initiatives and green building practices
✓ Providing high-speed internet and tech-enabled amenities throughout
the property
Remote Workers
Remote work opportunities have skyrocketed since the pandemic, significantly impacting rental property design and amenities. To meet the demands of remote workers, property managers are also focusing on:
- Upgrading internet infrastructure to
provide reliable, high-speed connectivity - Offering private meeting rooms and
business centers - Creating outdoor workspaces with Wi-Fi
access - Implementing package management
systems to handle increased deliveries
Increasing Number of Older Renters
While most renting households are headed by adults under 35, the 65+ age group is becoming the fastest-growing renter cohort in the United States. With specific needs and preferences that differ from younger demographics, they often seek:
- Accessibility features and single-level
living - Community spaces that promote social
interaction - On-site fitness centers and wellness
programs - Proximity to healthcare facilities and
public transportation - Enhanced security measures and 24/7
maintenance support
A landlords one stop shop for tenant management…for FREE
You can’t beat free and the only time you pay is if you want to purchase a lease or have expedited rent deposits. Most everything else costs zip, zero, zilch.
NEW BUILDS COME WITH NEW TECH: HIGHER RENTAL VALUE AND MORE REMOTE WORK OPPORTUNITIES FOR PROPERTY OWNERS
With 2022’s new construction finally market ready, most new builds come equipped with the latest technology. Built-in tech means higher rental value, better chances of attracting quality tenants, increased automation for property managers, and more opportunities to effectively manage multifamily units remotely.
Rise of Smart Home Features in Rentals
Smart home technologies offer convenience and energy efficiency to tenants while providing valuable oversight and notifications to property managers. Popular smart home features in rental units include:
- Smart thermostats for energy management
- Keyless entry systems, smart locks, and access control management
- Voice-controlled lighting and appliances
- Smart security cameras and doorbell cameras
These technologies not only attract tech-savvy tenants but also offer property managers improved security, reduced energy costs, and remote monitoring capabilities. Smart home features can lead to higher rental rates and increased property values, making them a worthwhile investment for many property owners.
ADOPTION OF AI AND MACHINE LEARNING IN PROPERTY MANAGEMENT
Artificial intelligence and machine learning are transforming property management practices, adding security amid the rise of real estate scams, and offering innovative solutions for various aspects of operations:
- Tenant screening: AI algorithms can
analyze applicant data quickly and
accurately, reducing bias in the selection
process. The latest touring software
verifies identities by comparing real-time
selfies to government issued IDs, also
captured in real time. - Predictive maintenance: Machine
learning models can forecast equipment
failures, allowing for proactive
maintenance and reducing downtime. - Energy optimization: AI-powered
systems can adjust building systems in
real time, maximizing energy efficiency. - Chatbots for customer service: AIdriven chatbots can handle routine
inquiries, freeing up staff for more
complex tasks
DIGITAL TOOLS CHANGING TENANT COMMUNICATION AND PROPERTY MARKETING
The adoption of property management software and apps is revolutionizing how property managers interact with tenants and market their properties:
- Online portals for rent payments, maintenance
requests, and lease management - Virtual reality tours for listings, and self-tours for
increased traffic and secure access management - Social media integration for community engagement
and brand building - Data analytics tools for market analysis and
performance tracking
These digital tools provide 24/7 access to services, streamline communication, and offer valuable insights into tenant preferences and behavior.
As technology continues to evolve, its integration into rental properties will likely deepen, offering new opportunities for innovation in the multifamily sector. Property managers who embrace these technological advancements will be better positioned to meet the changing needs of tenants and stay competitive in an increasingly digital marketplace.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
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.
Need a Lease Agreement?
A FREE account gets you access to over 200 free forms. Upgrade to a paid account (monthly, annually, or lifetime)
EZLandlord Forms Is Offering 15% 𝙊𝙛𝙛 For New Customers!
We cannot recommend these guys enough!
👉 State Specific Leases 👉 400 Forms to make your landlord-tenant relationship top notch 👉 200 FREE forms for those not ready to purchase 👉 4.8 Rating with over 5000 Reviews 👉 Pro Members get access to ALL leases and forms for $12 per month OR $75 if you purchase the annual membership 👉 YOU CAN BUY LIFETIME FORMS for $399
USE CODE 𝐒𝐓𝐀𝐂𝐈𝐄𝟏𝟓 to get 15% OFF ALL first-time purchases, EVEN THE LIFETIME FORMS!
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
- They are quick to build.
- They are cost-effective to use and maintain.
- They are minimalist, reducing clutter.
- They are a good option for a bachelor or a family of 2-3 members.
- They offer mobility to its residents.
Cons of Tiny House
- Putting a tiny house at permanent foundations requires a permit, which can be challenging.
- They are often too small to comply with the zoning laws.
- 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
- They are customizable.
- They are available in a variety of sizes.
- They are more complicit with zoning laws.
- They can increase property value.
- It can be used for multi purposes, like rentals, hobbies, to accommodate expanding family, etc.
Cons of ADUs
- They are usually more expensive than tiny houses.
- They are built on permanent foundations and can’t be moved.
- They have more utility expenses.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Source: Boston Real Estate Investors Association
If tenants don’t apply to have records sealed, they will still be publicly available.
A new law was recently signed by Governor Healey in Massachusetts that aims to protect tenants from the negative impact of eviction records. This law, part of the Affordable Homes Act, allows tenants to seal certain eviction records from public view and prevents these records from appearing on credit reports. It will come into effect on May 5, 2025.
What This Law Means for Tenants and Landlords
The goal of the law is to help tenants find housing without being blocked by past eviction records, which can be caused by financial difficulties. Tenant advocates believe this will reduce housing discrimination, but landlords are concerned. They often rely on eviction records as a key part of tenant screening and fear this change could make it harder to assess renters. Some landlords may respond by requiring higher credit scores or income levels for applicants.
Under this new law, the tenant has to take action to get their eviction record sealed. If they don’t apply to have it sealed, it will still be publicly available. But once a tenant does apply, the process of sealing the record is quick and easy, and landlords might not even know the record was sealed.
Different Rules for Different Types of Evictions
Here’s how the law handles different types of eviction cases:
No-Fault Evictions
A no-fault eviction happens when a tenant is evicted for reasons unrelated to their behavior, such as when a landlord decides to sell the property. In these cases, tenants can apply to have their record sealed. If the landlord doesn’t object within seven days, the court will approve the request without a hearing.
Non-Payment of Rent
For cases where tenants were evicted for not paying rent, they can apply to seal their record if they have had no evictions in the last four years. The tenant also needs to prove that financial hardship was the reason for the non-payment. Again, the landlord has seven days to object, and if they don’t, the court will automatically seal the record.
Evictions for Serious Issues (At-Fault Cases)
Evictions involving serious lease violations, such as criminal activity or property damage, are called at-fault cases. Tenants can apply to have these records sealed if they have been eviction-free for seven years. If the landlord doesn’t object within seven days, the court will typically seal the record. For certain criminal-related evictions, the court will need to hold a hearing to make sure sealing the record doesn’t compromise public safety.
Dismissed Cases or Tenant Wins
If a tenant wins the eviction case or the case is dismissed, the tenant can immediately apply to seal the record. The court will seal the record without notifying the landlord or holding a hearing.
A landlords one stop shop for tenant management…for FREE
You can’t beat free and the only time you pay is if you want to purchase a lease or have expedited rent deposits. Most everything else costs zip, zero, zilch.
Impact on Credit Reporting Agencies
This law also imposes new restrictions on credit reporting agencies. They will no longer be able to include sealed eviction records in their reports. Additionally, if an eviction record is not sealed but is still included in a report, the agency must specify the type of eviction, whether it was no-fault, non-payment, or for cause. These changes will make it difficult for credit agencies to report eviction information accurately, and many may stop reporting eviction records altogether in Massachusetts.
Changes to Rental Applications
Landlords in Massachusetts will now have to include a new disclosure in their rental applications. This allows tenants with sealed eviction records to legally answer “no record” when asked about evictions.
What Happens Next?
The law won’t be in effect until May 2025, giving the courts and credit reporting agencies time to adjust to these new rules. Landlords and rental agents will also need to update their processes. There’s still some uncertainty about how the law will be enforced and how smoothly things will run once it’s live, but for now, this new law represents a major change in tenant rights in Massachusetts.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Why Multifamily Syndication is Perfect for Generational Wealth
As high-net-worth individuals and families think about building generational wealth, they are looking for ways to create a legacy that spans decades. With the largest wealth transfer in history currently underway—estimated at $68 trillion over the next 25 years—today’s investors are exploring ways to diversify their portfolios beyond traditional stocks and bonds.
While single-family real estate and commercial assets are common choices, multifamily syndication is emerging as a powerful vehicle for creating long-term financial stability for future generations.
Multifamily syndication allows passive investors to pool their resources and invest in large real estate assets without the complexities of property management. This strategy not only offers impressive returns but also provides significant tax advantages, steady passive income, and scalability—key factors for those looking to build a lasting financial legacy.
Here’s why multifamily syndication is the ideal choice for those looking to secure generational wealth.
Why Multifamily Syndication is Perfect for Generational Wealth
1. The Largest Wealth Transfer in History
Over the next few decades, the U.S. will experience the largest inter-generational wealth transfer in history, with Baby Boomers passing down trillions in assets to Gen Xers and Millennials. As younger generations inherit this wealth, many are looking for new, strategic ways to grow and preserve it. Multifamily syndication fits perfectly within this context, offering a secure, scalable investment opportunity.
Unlike volatile stock markets, multifamily properties offer stable, consistent returns. These assets are less susceptible to the sharp fluctuations seen in traditional investments, making them ideal for those looking to protect their wealth for future generations. Rental income provides reliable cash flow, while the long-term appreciation of the properties increases the value of the investment over time.
2. Passive Income and Professional Management
One of the biggest draws of multifamily syndication is its tax efficiency, which is a significant advantage over traditional investments. Here are some key tax benefits:
- Depreciation: Investors can claim depreciation on the property’s value, which can offset the rental income and reduce taxable income.
- 1031 Exchange: Syndication allows for a 1031 exchange, where investors can defer capital gains taxes by reinvesting the proceeds from one property into another. This process can be repeated indefinitely, enabling your wealth to grow tax-deferred over multiple generations.
- Stepped-Up Basis: When you pass a property to your heirs, they benefit from a stepped-up basis, meaning the property’s tax basis resets to its market value at the time of inheritance. This drastically reduces the capital gains tax burden for your heirs if they choose to sell the property.
These tax strategies enable you to grow your wealth efficiently and ensure that a significant portion of the returns can be passed down to future generations, free of large tax penalties.
Estate Planning You Can Trust
Simple. Easy. Trusted.
Nolo’s WillMaker is America’s #1 estate planning software. Get immediate access to easy-to-use software and create your customized will today. Make a living trust, healthcare directive, power of attorney and so much more. There’s never been an easier, more affordable way to protect your family, home and assets.
3. Stability and Appreciation in the Multifamily Sector
Multifamily assets offer a compelling combination of stability and long-term appreciation. Rental properties, particularly those in growing markets, have a history of appreciating in value over time. As demand for housing remains strong, multifamily real estate continues to be a reliable investment that both provides immediate returns and appreciates steadily over time.
This stability is particularly important in times of economic uncertainty. People will always need a place to live, and multifamily assets benefit from a diverse tenant base that reduces risk. For investors thinking about legacy planning, this steady appreciation and reduced volatility make multifamily syndication a much more attractive option compared to riskier commercial real estate or the unpredictability of stock markets.
4. Diversification and Scalability
Multifamily syndication also offers an opportunity to diversify your portfolio. By participating in syndications across different geographic regions and property types, you can reduce exposure to localized risks. Moreover, syndications allow you to invest in large, institutional-grade assets that would typically be beyond the reach of individual investors. This scalability means you can build a substantial portfolio of real estate assets without the need for direct management.
By diversifying your investments, you protect the wealth you’ve built, ensuring that future generations benefit from a well-rounded, resilient portfolio.
The Future of Multifamily Investing: Preferences Are Changing
It’s not just about financial returns anymore. As Gen X and Millennials inherit wealth, they are bringing new preferences to the investment landscape. Today’s younger investors are interested in impact investing—they want their money to make a difference beyond profits. Multifamily syndications offer the perfect balance between financial returns and social impact, particularly when investing in affordable housing or sustainable real estate developments.
With Millennials showing increased interest in alternative investments, including real estate, multifamily syndications are well-positioned to cater to the needs of a new generation of investors who value both financial growth and positive societal impact.
Final Thoughts
As the landscape of wealth management evolves, multifamily syndication stands out as one of the most effective ways to build generational wealth. Its combination of passive income, tax efficiency, and long-term stability makes it an ideal investment for high-net-worth individuals looking to create a lasting legacy.
By leveraging multifamily syndications, you can secure your family’s financial future, ensuring that the wealth you’ve built continues to grow and benefit future generations. Whether you’re planning for your children, grandchildren, or beyond, multifamily syndication offers the perfect pathway to long-term financial security.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
By Patrick Marin-Finn
Securing a commercial loan for an apartment building can be a complex process, but understanding the typical requirements that banks look for can help streamline your application and increase your chances of approval. Whether you’re a seasoned investor or just entering the commercial real estate space, meeting the specific criteria set by commercial lenders is crucial to securing financing. Here are some of the most common requirements banks have for lending on apartment buildings.
1 Property Type and Purpose
The first consideration for any commercial loan is the type of property being financed. Banks typically focus on well-maintained, income-producing buildings. The loan application will be evaluated based on the property’s ability to generate consistent rental income, which serves as the primary source of repayment. In addition to the property’s size, banks will evaluate its
location. Properties in high-demand rental markets or areas with strong economic fundamentals are seen as less risky investments for lenders, which may also lead to more favorable loan terms.
2 Down Payment / Equity Requirements
One of the major factors commercial banks consider when lending for apartment buildings is the borrower’s equity contribution. This down payment, also known as the equity investment, is seen as a sign of the borrower’s commitment to the investment. Some banks may adjust these requirements depending on the borrower’s experience and the specific characteristics/income of the property.
3 Liquidity Requirements
In addition to the down payment, commercial banks often require borrowers to have a certain level of liquidity on hand. This ensures that the borrower can cover unexpected costs, such as repairs, vacancies, or other financial setbacks, during the loan’s term. As a rule of thumb, banks typically expect borrowers to have liquid assets equal to around 10% of the loan amount available. This liquidity requirement helps mitigate the risk of default in the event of unforeseen issues that might impact the property’s cash flow. For example, if you are securing a $5 million loan, you might need to have $500,000 in liquid reserves, such as cash, stocks, or other easily accessible assets. Having sufficient liquidity demonstrates financial stability and reassures lenders that you can manage the property effectively.
4 Experience in Real Estate
Commercial lenders place significant importance on the borrower’s experience in real estate investment, particularly when dealing with multifamily properties. Lenders are more likely to approve a loan for an investor with a proven track record of managing similar properties successfully. This includes experience in acquiring, managing, and operating apartment buildings. If you’re a new investor, banks may still lend to you, but you might need to bring on a more experienced co-investor or property manager to strengthen your application. Lenders will also evaluate the level of management expertise you have in place for the property. Having a reputable property manager or management company can be a key factor in getting the loan approved.
We use QuickBooks daily in our rental property business!
It’s used to invoice tenants for their rent, track expenses by property and unit number, and our tax advisor can log on anytime to get information he needs for processing taxes or analyzing our data for goal setting meetings!
QuickBooks is the #1 accounting software for small businesses, and today you can take advantage of 30% off your first 6 months of QuickBooks Online using our exclusive Business Affiliate link.
5 Creditworthiness and Debt Service Coverage Ratio (DSCR)
Your credit score is another critical element in securing a commercial mortgage. While commercial loans are generally based more on the property’s income potential than on the borrower’s personal credit, a strong credit score still plays a role in determining the loan’s interest rate and terms. Most banks prefer borrowers with a credit score of at least 680, though higher scores may be required for larger loans or more competitive terms. Another important factor is the Debt Service Coverage Ratio (DSCR), which measures a property’s ability to cover its debt payments. Banks typically look for a DSCR of 1.20 or higher, meaning the property
generates at least 20% more income than is required to cover debt payments. A higher DSCR indicates that the property is more likely to generate consistent cash flow, which reduces the risk for the lender.
6 Appraisal and Property Inspection
Before approving a loan, banks will require an independent appraisal of the property. This appraisal determines the market value of the apartment building and ensures that it is worth the loan amount. In addition to the appraisal, lenders may also request a property inspection to assess the condition of the building, identifying any potential maintenance issues that could affect the property’s long-term value.
CONCLUSION
Securing a commercial loan for an apartment building requires careful planning and preparation. Understanding the key requirements from commercial banks—including liquidity, down payment, experience, and financial metrics like creditworthiness and DSCR—can help ensure a smooth loan application process. If you’re unsure about meeting these requirements or navigating the commercial loan landscape, it may be helpful to work with a commercial mortgage broker who can guide you through the process and help you find the best financing options for your needs.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
By Adina Rogoz
As cities grow and evolve, so do challenges such as rising land costs, environmental concerns and the pressure to meet modern lifestyle needs. For real estate executives, these problems come down to one key question: Should you build from the ground up or revamp existing structures?
Building new brings the freedom of starting fresh and the ability to incorporate cutting-edge designs and meet the latest energy efficiency standards. However, it often comes with higher initial costs and longer timelines. Meanwhile, revamping existing properties can preserve historical charm, reduce waste and minimize disruptions to established communities—but it also means navigating the complexities of outdated infrastructure.
To unpack this complex topic, we reached out to Nick Sinatra, founder & CEO of Sinatra & Co. Real Estate, which owns and manages more than $700 million in real estate assets, including 5,000 multifamily units, most of which are located in the Northeast. Although the company focuses on acquisitions in core-plus markets, as well as residential development and management, it also invests heavily in urban infill and adaptive reuse projects.
What are the top factors that developers consider when deciding between building new or revamping an existing property?
Sinatra: It always comes down to the return on investment analysis. Then there’s capability—some firms don’t have the experience or stomach for an adaptive reuse. Putting a structure up based on a set of drawings is straightforward. Tearing into existing walls and building systems can be very challenging and provide many surprises. Additionally, most construction professionals can predict with a good degree of certainty how long a new build will take in a given market/location. That’s not always possible for renovations.
How does the timeline for revamping a building compare to a new build?
Sinatra: It really all depends. Sometimes renovations could be faster since you have walls, foundations, roofs etc., already in place. Sometimes there can be huge problems or unforeseen delays that take much longer than a new build. We typically build multifamily and mixed-use structures in 12 to 14 months—in addition to the entitlement timeframe.
What are the primary challenges associated with renovating an old building?
Sinatra: Surprises. When building new, an architect has a set of plans and the development team can go build it. With adaptive reuse, there can be unknown and unwanted problems behind walls and with other elements of the job that create unforeseen headaches—and costs.
In many cases, you cannot know for certain where items are located and what condition they are in until you physically get into the structure and, even then, something could be one way on a floor and then very different on another floor that was built years later or changed without plans or approvals years ago. Change orders tend to be more frequent with renovations versus new builds, especially with an inexperienced team.
What are the advantages of repurposing older buildings for modern use?
Sinatra: One of the advantages is marketability. Customers love the uniqueness and history that can sometimes be unlocked and celebrated when repurposing older, historic structures. Another advantage is community accolades. Most communities welcome the restoration and enhancement of noteworthy historic buildings versus knocking down and building new.
Lastly, uncovering, restoring and celebrating the craftsmanship of yesteryear. Many times, older structures were built with materials and techniques that would be cost-prohibitive in new construction. For example, we restored an office building in Buffalo, N.Y., that was completed in the late 1890s where the terrazzo floors were individually hand-installed one-inch tiles—they now look as beautiful as they did more than 125 years ago.
Tell us more about how Buffalo’s former Women and Children’s Hospital became Barton Apartments.
Sinatra: Developing buildings in Buffalo, one of our strengths is historic preservation. The conversion of the former Women and Children’s Hospital was certainly unique given the fact that it was a hospital—something we don’t typically associate with the word “historic.” When looking at the floorplans, we were able to effectively treat the former examination rooms and offices as essentially a framework for new apartment dwelling units.
The building has some wonderful exterior architectural detailing, but the inside certainly had the look and feel of a former hospital with linoleum flooring, interesting paint colors, etc. We were able to effectively work with the National Park Service to preserve any historic detailing with the plaster work while still modernizing the interior units and create a historic product that would still be attractive to the modern-day tenant base.
A landlords one stop shop for tenant management…for FREE
You can’t beat free and the only time you pay is if you want to purchase a lease or have expedited rent deposits. Most everything else costs zip, zero, zilch.
Are there any regions or cities where one approach is more advantageous than the other?
Sinatra: Some cities have been more focused over the last half-century on preventing the demolition of historic structures than others, so there is more supply to work with. For example, Charleston, S.C., has long been renowned for its rigorous preservation efforts, with ordinances dating back to the 1930s to protect its historic downtown. Similarly, cities like Savannah, Ga., have maintained their historic districts through strict zoning laws and the establishment of organizations like the Historic Savannah Foundation.
Another factor is economic incentives. Some cities and states offer economic incentives such as historic renovation tax credits to make the risks associated with the renovation projects more palatable for investment. For instance, Missouri offers a historic preservation tax credit that has spurred the redevelopment of countless buildings in cities like St. Louis and Kansas City, such as the renovation of the historic Union Station Hotel in St. Louis. Similarly, Maryland’s Sustainable Communities Tax Credit has encouraged developers to undertake large-scale projects like the redevelopment of the historic American Brewery building in Baltimore.
How do you expect urban development to evolve over the next decade?
Sinatra: It’s all about infill in the next decade. Land is scarce, and the opportunities will arise in a scattershot approach based on repurposing older buildings that have been vacated or have become inefficient or obsolete—think office to residential or enclosed malls into data centers or mixed-use. I predict more residential for sale and for rent, and more experiential real estate as people are still going to want to be in our urban cores for all the reasons we have wanted to for the past few hundred years.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Written by Kevin Kiene
A common question from Landlords is, what do I do when Tenants stop paying rent? It’s a frustrating issue for many Landlords and a top concern for investors considering getting started with long-term rentals.
While it’s a common source of angst, the reality is that the right property management systems can dramatically reduce the risk of having Tenants who are behind on rent. Landlords rarely have to deal with Tenants falling behind on rent when they:
- Keep their property in good condition
- Thoroughly screen Tenants and only rent to qualified applicants
- Communicate well with Tenants
- Have clear policies for late rent
That said, sometimes it happens and Landlords need to know what to do when it does. With that in mind, here’s a step-by-step guide for dealing with Tenants who fall behind on rent.
Step 1: Review Your Lease Agreement
Your Lease is crucial when things go wrong. Your Lease Agreement should specify the day rent is due each month. It also may provide a grace period for paying rent. Some states require grace periods, others don’t. Your first step should be checking the Lease to confirm that rent is late.
You should also review your Lease for details about late fees and late fee policies. Before contacting your Tenant, you want to make sure you’re familiar with all Lease terms dealing with late rent.
Step 2: Remind your Tenant That Rent Is Late
Ideally, you use a rent payment system that sends reminders when rent is due and past due. That said, sometimes a Tenant just forgets to pay rent. Start with a friendly reminder to your Tenant that rent is late. This can be as informal as a phone call or text. You can also send a Late Rent Notice.
More often than not, this reminder is all it takes for a Tenant to get current on rent. However, in some cases, there’s a bigger problem and you’ll need to work with Tenants. If this is the case, you want to talk with the Tenant about a plan to get them back on track. It’s important to strike the right tone in this conversation – you want to be firm, professional, and respectful.
Life happens and everyone has seasons where they get behind. If your Tenant is communicating with you, try to work with them to create a plan to get them back on track. This is ideal for both parties.
Step 3: Send a Notice to Pay or Quit
If your Tenant isn’t communicating with you or is unwilling to work with you, send an official Notice to Pay or Quit. The Notice gives the Tenant a set number of days to get current on rent or vacate the property. The period varies from state to state. Use your state-specific form to customize this official notice.
Many Landlords hesitate to take this step, but we’d encourage you to be proactive. It’s a good way to determine whether your Tenant plans to stay in the property or move out. If your Tenant isn’t going to stay, you want to figure this out as soon as possible.
Need a Lease Agreement?
A FREE account gets you access to over 200 free forms. Upgrade to a paid account (monthly, annually, or lifetime)
EZLandlord Forms Is Offering 15% 𝙊𝙛𝙛 For New Customers!
We cannot recommend these guys enough!
👉 State Specific Leases 👉 400 Forms to make your landlord-tenant relationship top notch 👉 200 FREE forms for those not ready to purchase 👉 4.8 Rating with over 5000 Reviews 👉 Pro Members get access to ALL leases and forms for $12 per month OR $75 if you purchase the annual membership 👉 YOU CAN BUY LIFETIME FORMS for $399
USE CODE 𝐒𝐓𝐀𝐂𝐈𝐄𝟏𝟓 to get 15% OFF ALL first-time purchases, EVEN THE LIFETIME FORMS!
Step 4: Consider a Cash-for-Keys Agreement
If the Tenant doesn’t pay within the period provided in your Notice to Pay or Quit, you have two options: offer a Cash-for-Keys Agreement or begin the eviction process.
In a cash-for-keys agreement, the Tenant agrees to vacate the property in return for a one-time cash payment. While this might sound counterintuitive to Landlords, it’s cheaper and faster than an eviction and a good last attempt to negotiate with Tenants.
We always encourage Landlords to try a cash-for-keys agreement as a way to minimize move-out costs and time. You want to get a bad Tenant out as soon as possible so that you can get a good Tenant in your property.
Step 5: Start the Eviction Process
If the Tenant doesn’t pay or accept a cash-for-keys agreement, it’s time to start the eviction process. We always encourage Landlords to hire an attorney to handle this.
The eviction process is time-consuming and complex, and it’s essential to do every step following state laws. A local attorney who specializes in evictions will ensure everything is done correctly and that the process goes as smoothly as possible. Plus, it’s one less headache for Landlords to handle.
Visit ezLandlordForms for Property Management Support
Whether you need a Late Rent Notice, a Cash for Keys Agreement, or an Eviction Notice, we’ve got you covered. We have over 500 property management forms to make it easy for you to self-manage your rentals.
Create an account today to access all of our property management forms and Landlord tools.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Provided by the Fair Housing Institute
As the new year begins, property management professionals have the opportunity to reflect on foundational practices that ensure both compliance and operational excellence. Among these, few aspects are as critical as robust fair housing policies, well-defined procedures, and professional written communication. These elements not only safeguard against legal risks but also foster trust and professionalism in interactions with residents, prospects, and team members. This article explores the essential role of policies and written responses, offering a timely reminder to recalibrate for the year ahead.
The Importance of Fair Housing Policies and Procedures
Fair housing policies and procedures serve as the backbone of any property management operation, regardless of the size of the portfolio. They provide a clear framework for staff to understand their responsibilities and adhere to fair housing laws, ensuring consistent application of these principles across the board. Moreover, well-documented policies act as a vital defense mechanism during fair housing investigations, demonstrating that actions taken were in line with established guidelines.
For property management companies of all sizes, the creation of a basic fair housing policy is non-negotiable. However, it is not enough to simply draft a policy and let it sit idle. These documents must be living resources, regularly reviewed and updated to reflect changes in legislation or operational needs. In addition to a general fair housing policy, companies should implement specific procedures addressing reasonable accommodations and modifications. These procedures must clearly outline the steps for processing requests and define the roles of staff members responsible for decision-making.
To ensure these policies are accessible and actionable, many companies utilize a centralized policy manual. This resource serves as a go-to reference for staff, housing key documents such as fair housing policies, reasonable accommodation procedures, and supporting forms. Regular training sessions are critical to reinforce the importance of these policies and ensure all employees understand their role in maintaining compliance.
The Role of Written Communication in Fair Housing Compliance
In the property management industry, written communication is not merely transactional; it is a direct representation of your company’s brand and commitment to professionalism. Emails, letters, and even social media responses all fall under the umbrella of marketing and must align with fair housing principles. As such, every written response must be crafted carefully to avoid potential issues of discrimination or misrepresentation.
One area where this is particularly critical is in responding to inquiries about unit availability. Consistency in responses is essential to prevent any appearance of favoritism or bias. For example, if two prospects inquire about the same unit, the responses they receive should not differ in ways that could be perceived as discriminatory. All leasing professionals should be equipped with standardized language to address these situations, ensuring a uniform and compliant approach.
Another consideration is the tone and content of written communication with residents. Professionalism must be maintained at all times, even when dealing with difficult or hostile situations. Emails represent an official form of communication, and as such, they should be approached with the understanding that their contents may later be scrutinized in legal or regulatory contexts. It is critical to remain composed, clear, and respectful, avoiding language that could escalate tensions or be misinterpreted.
We use QuickBooks daily in our rental property business!
It’s used to invoice tenants for their rent, track expenses by property and unit number, and our tax advisor can log on anytime to get information he needs for processing taxes or analyzing our data for goal setting meetings!
QuickBooks is the #1 accounting software for small businesses, and today you can take advantage of 30% off your first 6 months of QuickBooks Online using our exclusive Business Affiliate link.
Balancing Efficiency and Personalization in Written Responses
While templates and canned responses can improve efficiency, their use must be approached with care. Generic responses may be suitable for common inquiries, but personalized communication is necessary for more nuanced or unique situations. A failure to adapt responses to the context can leave residents or prospects feeling dismissed, potentially damaging the relationship and raising questions about the company’s commitment to fair housing principles.
This is where training becomes invaluable. Staff must be equipped with the knowledge and judgment to discern when a situation requires a tailored response. Ongoing training programs should address not only the technical aspects of fair housing compliance but also the soft skills necessary to bring a human element to written communication. This balance between professionalism and empathy is what distinguishes truly effective property management operations.
Preparing for Success in the Year Ahead
The start of a new year offers the perfect opportunity to review and strengthen your company’s policies and communication practices. Begin by conducting a thorough audit of your fair housing policies and written communication guidelines. Identify any gaps or areas in need of refinement, and make it a priority to address them.
It is equally important to engage your team in this process. Gather feedback from staff on the challenges they face when applying policies or crafting responses, and use this input to inform updates and training programs. Establish a schedule for regular policy reviews and training sessions to ensure these foundational practices remain top of mind throughout the year.
Finally, remember the power of written communication as a tool to build trust and foster positive relationships. By prioritizing consistency, professionalism, and a human touch, your team can set the tone for a successful year while reinforcing the company’s commitment to fair housing compliance and exceptional service.
Conclusion
In the property management industry, success is built on a foundation of strong policies, clear procedures, and professional communication. As the new year begins, take this opportunity to reaffirm your commitment to these principles. By investing time and effort into refining your fair housing policies and enhancing written communication practices, you can navigate the complexities of property management with confidence, fostering trust and compliance in every interaction. Let this year be one of growth, consistency, and renewed dedication to excellence.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
Provided by Rental Housing Journal
Generally, landlords are responsible for tree maintenance on their rental property unless the lease specifically states otherwise, tree experts say.
Trees are attractive to renters and potential tenants who want to live near beautiful trees so make sure the trees on your rental property reflect the quality of your rentals. Trees attract birds and purify the air to make living in your rental home more enjoyable.
It can be easy for a landlord to overlook tree maintenance until a tree emergency suddenly happens and then it is a sudden emergency tenants want taken care of.
So, it is important for landlords to evaluate and monitor the health and vitality of trees on their rental property and this is best left to an expert certified arborist such as those at Grove Tree Care in Oregon. Arborists should have credentials from respected institutions like the International Society of Arboriculture (ISA), as they are well-versed in the science and art of arboriculture. Staying current with the latest advances in tree health and safety is also important.
Need a Lease Agreement?
A FREE account gets you access to over 200 free forms. Upgrade to a paid account (monthly, annually, or lifetime)
EZLandlord Forms Is Offering 15% 𝙊𝙛𝙛 For New Customers!
We cannot recommend these guys enough!
👉 State Specific Leases 👉 400 Forms to make your landlord-tenant relationship top notch 👉 200 FREE forms for those not ready to purchase 👉 4.8 Rating with over 5000 Reviews 👉 Pro Members get access to ALL leases and forms for $12 per month OR $75 if you purchase the annual membership 👉 YOU CAN BUY LIFETIME FORMS for $399
USE CODE 𝐒𝐓𝐀𝐂𝐈𝐄𝟏𝟓 to get 15% OFF ALL first-time purchases, EVEN THE LIFETIME FORMS!
Other tree services to consider from an arborist are:
- Tree Pruning and Trimming: Enhancing the beauty and safety of trees through skilled pruning.
- Tree Removal: Conducting safe and efficient removals when trees pose a risk or are no longer viable.
- Stump Grinding and Removal:Clearing away remnants for a clean and usable landscape.
- Tree Cabling and Bracing: Providing structural support to preserve and protect your trees.
- Emergency Tree Services: Responding swiftly to urgent situations with a 24/7 emergency service in Wilsonville, OR.
Also, as a landlord it is a good idea to monitor tree health on properties that adjoin your rental as trees from a neighboring property could fall and impact your rental and tenants.
Remember if you have trees on your rental property, it is important to control the growth. Also, you do not want tenants taking it upon themselves to cut down tree branches. So, tree maintenance should be part of your preventative maintenance.
Too, if you have questions on whether landlords are responsible for issues around trees, it is best to check with your attorney.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇
By John Triplett
The Justice Department, together with 10 state co-plaintiffs, has filed an amended complaint in its antitrust lawsuit against RealPage to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters, according to a release.
The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters.
At the same time one of the landlords, Courtland Management, agreed to cooperate with the justice department and enter into a settlement to end the use of common rental-pricing algorithms and competitively sensitive data to set rents.
Atlanta-based Cortland manages more than 80,000 rentals in 13 states. A related federal criminal investigation that led to a May 2024 search of its headquarters has been closed, a spokesperson told ProPublica, which started the investigation into the pricing schemes.
The spokesperson said the company is “pleased” to announce the settlement. “We believe we were only able to achieve this result because Cortland has invested years and significant internal resources into developing a proprietary revenue-management software tool that does not rely on data from external, nonpublic sources,” the spokesperson said.
Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division said in the release, “While Americans across the country struggled to afford housing, the landlords named in the lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high.” The “action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
A landlords one stop shop for tenant management…for FREE
You can’t beat free and the only time you pay is if you want to purchase a lease or have expedited rent deposits. Most everything else costs zip, zero, zilch.
Justice Department Sues 6 Large Landlords
The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including:
- Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics.
- Regularly conducting “call-arounds.”
- Participating in “user groups” hosted by RealPage.
- Sharing information with competitors about parameters in RealPage’s software.
Co-plaintiffs in the case are the attorneys general of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington.
RealPage Senior Vice President Jennifer Bowcock called the federal case “flawed” and said the company is “committed to vigorously defending ourselves and our customers against the DOJ’s accusations.” RealPage has already changed its software to remove nonpublic data, despite its view that its technology was legal and “pro-competitive,” she told ProPublica.
A White House report released in December estimates the nation’s renters overpaid by $3.8 billion in 2023. The White House cited RealPage as the primary provider of rental-pricing algorithms. Companies like RealPage use their tools to suggest optimal rent for landlords to charge.
Did you enjoy this article?
This is an example of what is included on our FREE weekly newsletter, Landlord Weekly.
Subscribers get access to our free forms, email templates, and guides! As well as…
▪️Landlord Tips ▪️ Early Access to Our Blogs ▪️ Landlord Specific Articles by Other Industry Pro’s ▪️ Podcast Links
To check out a sample of our newsletter, click one of the links below👇