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 Bigger Pockets
Home insurance prices continue to rise and could increase by another 6% this year after already rising nearly 20% in the last two years, according to one estimate. A combination of inflation and extreme weather events in some states has fueled the jump in prices, with the average annual rate increasing 19.8% between 2021 and 2023, a report from Insurify found.
The insurance comparison site estimates that prices will rise 6% to an average of $2,522 by the end of 2024 and could increase further in 2025 if the hurricane season is as bad as NOAA projections say it will be.
Where Insurance Costs Are Increasing the Most
Insurance rates aren’t the same across the board. Some factors are individual, like the size and age of the home, as well as claims history. Other impacts include where your home is located and how likely it is to be damaged.
Due to these various factors, not everyone will see their premiums increase this year. States more prone to climate catastrophes, such as flooding and wildfires, are more likely to see an increase in rates. Other states, like California, will only see a slight increase due to state regulations limiting how much rates can rise in a given year.
Louisiana, for example, is expected to have the biggest increase in rates due to hurricane damage. Meanwhile, rates are catching up in Maine, which has seen an increase in the sea level and subsequent flooding and coastal damage. Florida is also likely to see an increase in prices, although it already has some of the most expensive insurance in the country, with homeowners paying an average of $10,996 a year for coverage.
Here’s a look at the top 10 states where homeowners are bearing the brunt of increased insurance costs.
Why Insurance Costs Are Rising So Much
States with high insurance costs tend to be prone to extreme weather events. And with climate change increasing, some project that those weather events will get even more extreme in the future—which means homeowners in these prone areas are likely to be hit with large premiums.
According to a study from Realtor.com, nearly half of all homes in the U.S. are at risk from climate change. Many coastal states are in areas of relatively high risk of natural disasters, according to FEMA’s National Risk Index. Meanwhile, wildfires have become a growing risk in various areas across the country, with the damage they cause costing an estimated $394 billion to $893 billion annually.
Building repair costs have also increased since inflation has caused construction material costs to skyrocket in recent years. That means insurers have to pay more when a homeowner makes a claim—a cost that’s passed on when they increase premium rates.
Even reinsurance (basically insurance for insurers) has risen, further increasing prices, especially in areas prone to disasters like Florida. Some insurers (and reinsurers) have left areas they have deemed too high risk. According to Insurify, the number of available home insurance policies decreased by 35% in 2023.
As climate change increases, homes not in catastrophic weather areas could still see a lot of damage from events like large hailstorms and severe thunderstorms. But 60% of homeowners forgo flood insurance, according to a February 2024 Insurify study, and standard insurance doesn’t pay for flooding.
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What Increased Insurance Costs Mean for Investors
As climate change becomes more of a factor, it will not only cause an increase in insurance premiums, but it could affect the value of homes. According to Insurify, around 25% of homeowners feel like climate change has affected the value of their homes. Meanwhile, a Congressional report found that climate-exacerbated wildfires could diminish total real estate values by as much as $337.5 billion annually.
“Climate risk is a big deal,” Realtor.com economist Jiayi Xu said in a statement. “It can impact home values, insurance costs, and the overall stability of a housing market.”
Even homes that aren’t hit directly by extreme weather events are being impacted by rising insurance premiums, which only increases the cost of homeownership.
And it’s not just single-family homes being hit. Insurance for commercial real estate has also skyrocketed, which may be contributing to a slowdown in deals, as unpredictable insurance costs can impact an owner’s ability to underwrite a deal, Danielle Lombardo, managing director of insurance service provider WTW, told Pere News.
In other words, with an increase in natural disasters, real estate investors with properties across the board will need to pay closer attention to the climate and its potential impact on not just insurance prices but the overall prices of doing business.
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Provided by Rental Awareness
Yes, a landlord can raise the rent if a girlfriend moves in. However, it is important to review the terms of the rental agreement to see if there are any restrictions or provisions regarding additional occupants and rent increases.
Some rental agreements may have limitations on the number of occupants or specific rules about rent adjustments.
It is recommended to communicate with the landlord and review the agreement to understand the specific terms and conditions.
The Landlord-Tenant Relationship
Understanding the Landlord-Tenant relationship can be complex, especially if a girlfriend moves in and the landlord wants to raise the rent.
It is important to know the terms of the lease agreement and consult local laws to determine what actions can be taken in this situation.
One of the key aspects of renting a property is understanding the landlord-tenant relationship.
Landlord’s Rights And Responsibilities
As a landlord, it is essential to be aware of your rights and responsibilities to maintain a fair and respectful relationship with your tenants.
By understanding your rights, you can ensure that your property is cared for properly and that your tenants are abiding by the agreed-upon terms. Here are some key points to consider:
- Right to collect rent in a timely manner
- Right to enter the property for necessary inspections or repairs, with proper notice
- Responsibility for maintaining the property and making necessary repairs to ensure habitability
- Responsibility to respect the tenant’s privacy and only enter the property as outlined in the lease agreement or with proper notice
Tenant’s Rights And Responsibilities
As a tenant, understanding your rights and responsibilities will empower you to protect your interests and ensure a comfortable living situation.
By familiarizing yourself with these key points, you can advocate for yourself and maintain a healthy landlord-tenant relationship:
- Right to live in a habitable property
- Right to privacy and quiet enjoyment of the rental unit
- Responsibility for paying rent on time and in full
- Responsibility for maintaining the property in a reasonably clean and safe manner
Knowing The Laws And Regulations
Understanding the laws and regulations that govern the landlord-tenant relationship is crucial for both parties.
This knowledge provides a solid foundation for resolving any disputes or issues that may arise during the tenancy.
By being aware of the legal framework, you can protect your rights and uphold your responsibilities. Here are a few reasons why knowing these laws is important:
- It prevents misunderstandings and ensures compliance with local regulations.
- It helps in resolving conflicts or disputes based on factual information.
- It allows for informed decision-making when entering into a rental agreement.
- It establishes a sense of accountability and fairness in the landlord-tenant relationship.
By comprehending the rights and responsibilities of both landlords and tenants and staying informed about the laws and regulations, you can foster a mutually beneficial and harmonious living arrangement.
This solid foundation will contribute to a healthy landlord-tenant relationship, providing peace of mind for both parties involved.
Remember, knowledge is power, and by understanding the dynamics of this relationship, you can navigate any challenges or situations that arise with confidence.
Defining A “Guest” And “Tenant”
Wondering if your landlord can raise the rent if your girlfriend moves in? Understanding the difference between a “guest” and a “tenant” is crucial.
While a guest is usually temporary and doesn’t have tenant rights, if your girlfriend becomes a tenant, the landlord may have the right to raise the rent.
Always consult with your local rental laws for specific guidelines.
Differentiating Between A Guest And A Tenant
When it comes to determining whether someone is a guest or a tenant, it’s essential to understand the distinctions between these two categories.
While a guest is someone who stays temporarily with the landlord’s permission, a tenant is someone who has entered into a rental agreement with the landlord and has the right to occupy the property.
Furthermore, a guest typically does not pay rent, whereas a tenant is obligated to pay rent for their use of the rented space.
Criteria For Determining Tenant Status
The status of someone living in a rental property as either a guest or a tenant is typically determined by specific criteria set forth by the landlord or governed by local laws.
Although these criteria can vary, some common factors that landlords consider may include:
- The length of time the person has been residing in the property
- Whether the individual contributes to household expenses
- Whether the person has received mail or packages at the property
- Whether the landlord has given permission for the person to live in the property
It is crucial to consult the rental agreement or local laws to understand the specific criteria used to determine tenant status and the rights and responsibilities that come with it.
Impact On Rent If Girlfriend Is Classified As A Tenant
If your girlfriend is classified as a tenant, it could have implications for the rent.
Landlords have the right to revise rent prices, but usually, they can only do so when the lease term is up for renewal.
However, if the girlfriend is considered a tenant, their presence in the rental unit may be subject to additional rent charges as per the agreement.
This increase in rent could be based on factors such as the number of occupants, utilities usage, or other related expenses.
It is important to review the rental agreement or consult with the landlord to understand the exact impact on rent if your girlfriend is classified as a tenant.
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Reviewing The Lease Agreement
When it comes to rental agreements, it is essential for both landlords and tenants to thoroughly review the lease before making any significant decisions.
One common concern that arises is whether a landlord can raise the rent if a girlfriend or additional person moves in.
To address this question, it is vital to understand the provisions outlined in the lease agreement.
Importance Of Reviewing The Lease Agreement
The lease agreement serves as a legal contract between the landlord and the tenant, detailing the rights and responsibilities of each party.
By carefully reviewing the lease agreement, tenants can gain a clear understanding of the terms and conditions governing their tenancy.
Additionally, landlords can ensure that the lease agreements they create adequately protect their interests.
Provisions Regarding Additional Occupants
Lease agreements typically include provisions outlining the maximum number of occupants permitted in a rental unit.
Landlords often impose these limits to maintain a comfortable living environment, ensure compliance with safety regulations, and avoid overloading the property’s utilities.
The lease agreement might state that only the named tenant or tenants specified in the original agreement are allowed to reside in the rental unit.
In this case, if a girlfriend or significant other moves in without the landlord’s knowledge or permission, it could be considered a breach of the lease agreement.
On the other hand, some leases may explicitly allow additional occupants but require them to be added to the lease agreement through a formal process.
This process typically involves obtaining written consent from the landlord and potentially adjusting the terms of the lease, such as the rent amount.
Understanding the provisions regarding additional occupants in the lease agreement is crucial to determine whether the landlord can raise the rent when a girlfriend or additional person moves in.
How Lease Terms Affect Rent Increases
The terms and conditions outlined in the lease agreement have a significant impact on the landlord’s ability to raise the rent due to the addition of an occupant.
In some cases, the lease may explicitly state that the rent amount will not increase if an additional person moves in, as long as the total number of occupants remains within the limits specified.
In conclusion, reviewing the lease agreement is of utmost importance when considering any changes in occupancy or potential rent increases.
By understanding the provisions regarding additional occupants and the impact of lease terms on rent amounts, both tenants and landlords can ensure a fair and transparent rental experience.
Considering Fair Housing Laws
When considering the question of whether a landlord can raise rent if a girlfriend moves in, it is important to take into account the fair housing laws that exist to protect tenants from discrimination.
Fair housing laws, also known as anti-discrimination laws, establish guidelines and regulations to ensure that all individuals have equal access to housing opportunities.
Fair Housing Laws
Fair housing laws are regulations that prohibit discrimination in housing on the basis of certain protected characteristics.
These laws aim to foster a fair and inclusive housing market, while also safeguarding against practices that could lead to discrimination or unfair treatment.
Prohibited Grounds For Discrimination
Under fair housing laws, landlords are prohibited from discriminating against tenants on the basis of protected characteristics. Some of the common protected characteristics include:
- Race
- Color
- National origin
- Religion
- Sex
- Disability
- Familial status
It’s important to note that fair housing laws vary from country to country and sometimes even at the state or local level.
Landlords must familiarize themselves with the specific laws that apply to their jurisdiction.
Implications For Rent Increases Based On Girlfriend Moving In
When it comes to the situation of a girlfriend moving in, the fair housing laws primarily focus on discrimination but may not directly regulate rent increases.
However, landlords must be cautious and ensure that any changes in rent or rental agreements are not based on discriminatory practices or targeting specific tenants.
It’s important for landlords to treat all tenants equally and not single out tenants based on their relationships or familial status.
Charging higher rent or increasing rent solely because a girlfriend moves in can potentially be considered discriminatory and may be in violation of fair housing laws.
While there may not be specific laws directly addressing rent increases due to a girlfriend moving in, landlords should always approach such situations carefully and fairly.
Communication with the tenant, evaluating market rents, and following established rental policies can help ensure that any rent adjustments are justifiable and non-discriminatory.
Conclusion
It is important for tenants to be aware of their lease agreements and understand the rules surrounding additional occupants.
Landlords generally have the right to raise rent if an unauthorized person, such as a girlfriend, moves in.
However, it is always best for tenants to communicate openly with their landlords to avoid any misunderstandings or legal issues.
Keeping lines of communication open can help maintain a positive tenant-landlord relationship and ensure a smooth living situation for all parties involved.
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Join us on this episode where we are discussing bookkeeping and accounting tips for landlords, where you can learn to operate a profitable rental property portfolio where you can grow and scale your properties.
It is just like any other business. You must maintain good records that will in turn enable you to evaluate and understand your property’s performance and your return on investment or ROI.
Listen, we know this is not a sexy topic. But managing your records and finances for your rental property properly can lead to significant tax savings, more rental income, lower expenses, and thus, better profitability.
This episode covers why consistent bookkeeping is so important, what you should be tracking, creating a budget, and tips on setting up your books and accounts.
And in true fashion, we had so much to say that next week we will continue this conversation and discuss the accounting software that is available to rental property owners and self-managing landlords.
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👉 Episode 45: Basic Tax Strategies for Real Estate Investors
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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.
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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 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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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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You know how when you see investment properties for sale, sometimes you’ll see the term added value? Usually this implies the purchase price may be at a reduced rate because there are improvements that can and should be made to make the property more profitable.
Added value also means there is an opportunity for new rental property owners to apply their own business strategy and knowledge that may have been lacking from the previous owner.
In this podcast episode, we are discussing what to focus on to add this value to your properties, not only for your own business strategy, but also in case you ever plan to sell your rental property and want to receive top dollar.
Specifically, we are talking about improvements you can make to the exterior, interior, and behind the scenes with your business strategy that could make a big difference to your tenants and ultimately, your bottom line and profitability.
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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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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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