INVESTOR LOANS with a catch

Freddie Mac has a new program that will offer lower cost financing to investors of apartments who agree to cap rent increases for the life of the loan. The goal is to create rent control by keeping units in private hands and controlling the rate of rent increases.

Recently investors have been buying less expensive buildings in need of renovation and then raising rents, resulting mid-priced apartment rents raising even faster than luxury units.  According to RealPage Inc., average rents for midrange Class B properties rose by nearly 20% from 2012 through 2017, while high-end, Class A rents rose by 16.6% on average.  This initiative will help Freddie Mac fulfill its mandate from the Federal Housing Finance Agency to lend to underserved communities.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

SEATTLE & Property Ownership

The City of Seattle contracted with the UW to study the impact of recent changes in rental ordinances. The Seattle Rental Housing Study (SRHS) was published in July 2018.  Tenants surveyed expressed skepticism about the effectiveness of the ordinances while the landlords surveyed found the ordinances highly burdensome and ineffective.  Highlights of the study follow or you can read the entire study at https://www.seattle.gov/Documents/Departments/CityAuditor/auditreports/UWSRHSFINAL.pdf.

• Legislation targeting landlords has led to, and is leading to, an increase in owners selling rental properties (40% of respondents), especially for mom-and-pop landlords (47% of respondents own/manage one unit). Every time landlords sell, rents are pushed up.

• Small rental owners charge lower rents and have more flexible screening criteria than large, corporately held rental housing.

• A large majority of rental housing owners (61%) rely upon their rental property as a long-term retirement asset or secondary source of income. Only 12.7% of respondents rely on rental income as their primary source of income.

• The large majority of landlords are not wealthy; 59% are cited as earning less than $75,000 per year. Only 8% reported incomes over $150,000 per year.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance. 

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

 

CHANGING TENANTS

The tenants in a lease cannot be changed without the signatures of all parties to the lease.  This is important when roommates share a rental and one wants to move out before the other.  Unless all roommates, any co-signers, and the landlord agree in writing otherwise, the vacating tenant remains responsible for all terms under the lease, including payment of rent and repairs for tenant caused damage.  The vacating tenant will remain responsible until either all of the original tenants vacate or a written amendment to release the vacating tenant is signed by all.  This is true even if the original agreement has expired and the tenancy has converted to a month-to-month agreement.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

 Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

 

BUYING A TENANT OCCUPIED PROPERTY?

What you need to ask for if you represent someone buying a property with a tenant in place?  The following should be requested as part of the buyer’s due diligence:

• Lease and any addendums – the property is subject to the lease terms.  At the end of the lease or if a month-to-month rental agreement, terms can be changed with a 30-day notice.

• Move in inspection report – the tenant cannot be charged for any damages unless there is a written move in inspection report.

• Rent ledger – this will tell the buyer whether the tenant pays rent on time.

The following need to be transferred at closing:

• Any deposits and prepaid rent (last month’s rent).

• Pro-rated rent for the month of closing.

• Keys (easy to forget if buyer isn’t taking possession at closing).

• Tenant contact information.

The seller must notify the tenant in writing that the deposit has been transferred to the buyer and the buyer must notify the tenant in writing of the Washington State bank and branch where the deposit will be held in trust, where to mail rent and who to contact in case of a problem.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

 Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

RENTAL RATES – UP OR DOWN?

The increase in new construction apartments has resulted in higher vacancy rates and lower rents.  In Seattle, new apartments are offering up to two months free rent.  According to CoreLogic, vacancy rates in apartments range from 3.9% in Des Moines to 25% in downtown Seattle.  This has impacted the single-family rental market as well, which had the slowest increase in rents since the recession this year.

In 2017, Seattle’s rent growth was the highest in the country with a 5.2% increase year-over-year.  In 2018, Seattle’s rent growth dropped to 22^nd in the nation, according to ApartmentList.com.  Rent growth also slowed in Portland.  Nationally, rent grown has slowed from 3.6% in 2015 to 1.5% year over year in 2018.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

RENTERS INSURANCE

The content found above was created by Amica Insurance Company. Coldwell Banker Bain is not affiliated in any way with Amica insurance and this video was posted for informational purposes only. You are advised to obtain multiple quotes from different insurance carriers.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

FAIR HOUSING – BETWEEN THE LINES

You know that fair housing laws require you to treat everyone the same, but that that means you must treat all rental applicants and tenants the same in even the subtle aspect of the rental process.  Examples include:

–          If one tenant moves in mid-month and you allow him/her to pay pro-rated rent rather than a full month’s rent, then you must do the same for everyone.

–          If you require photo I.D. from one applicant, you must do so from all applicants.

–          If you ask one applicant if s/he is a legal resident, you must ask all applicants if they are legal residents.  (There is no requirement to verify proof of legal residency when providing housing in Washington State.)

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

 

 

NOTICE TO ENTER A RENTAL PROPERTY

In Washington State, the amount of notice required before a landlord can enter the rental property varies depending on the reason.  The Landlord Tenant Act requires a landlord to give a 48-hour notice if the owner wants to enter for maintenance or an inspection.  A 24-hour notice is required if the landlord wants to show the property to a prospective tenant or buyer.  The owner can enter without notice only in the case of an emergency.  The tenant has the “reasonable” right to say no to a proposed time of entry.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

DISABILITY UPGRADES – RENTALS

Fair housing laws require that landlords permit, at the expense of the person with a disability, reasonable modifications of the rental property if necessary for the tenant’s full enjoyment of the premises. The landlord can require that the tenant restore the property to its original condition when the tenant vacates IF the modification will interfere with the next tenant’s use and enjoyment of the rental.  The addition of a wheelchair ramp, adding grab bars in the bathroom or modifying plumbing to accommodate dialysis equipment could all be considered reasonable modifications.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

 Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

FAIR HOUSING AND THE ADA

The Fair Housing Act (FHA) and Americans with Disabilities Act (ADA) define service animals differently.  The ADA prohibits discrimination against people with disabilities in public areas, such as employment, transportation, public accommodations and access to state and local government programs and services. The FHA protects a person with a disability in housing.

While the ADA has a very specific definition of a service animal, the FHA does not.  Under the ADA, a service animal is defined as an animal, almost always a dog, that has been individually trained to do work or perform tasks for an individual with a disability. The task(s) performed must be directly related to the person’s disability.  Emotional support animals, comfort animals, and therapy dogs are not service animals under Title II and Title III of the ADA.

On the other hand, both service animals and emotional support animals are allowed in housing.  These animals do not need to be trained and the person with a disability need only provide a letter from a health care provider stating that the person has a disability and that the animal provides assistance and/or necessary services related to the disability.

We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.