BUILD THEM – THEY WILL COME!

The Dupre and Scott’s March survey of 20+ unit apartments reports that almost 9,500 new apartments were opened in 2016. 12,700 are expected this year in King, Pierce and Snohomish Counties and 62,000 more are planned between 2017 and 2020.

The survey shows that that new construction apartments typically get a rent premium of more than 40%.  Rent increases have averaged 3.3% annually since 1998, but in the last six months, Kitsap County had over a 4% on average increase.  The Eastside had the lowest at .75%.

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

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

Squatters in Washington State

The Washington State legislature has passed a law to help property owners remove squatters. A new law passed in May 2017, which goes into effect 90 days after passage, allows property owners to have squatters removed by law enforcement without having to go through the eviction procedure. The new process will allow an owner to file a declaration that a trespasser – not a tenant – is in possession of the property.  Law enforcement will then be able to remove the person immediately rather than going through the previously required eviction process.

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

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

 

WHO’s RIGHT – WHO’s WRONG???

The majority of landlord-tenant disputes are arguments over the landlord withholding part or all of the tenant’s damage/security deposit.  Typically, disagreements arise when landlords and tenants disagree about whether the tenant is responsible for repairs or cleaning and/or whether tenants believe the charges are unreasonable.

Unresolved disputes may result in a trip to small claims court.  Judges will want to see a lease with clauses that support the charges against the tenant’s deposit.  A complete move in/move out inspection report showing both the condition when the tenant took possession and at move out will be critical.  Copies of invoices documenting charges will be needed.  Judges will also check to see that the landlord complied with all aspects of the Residential Landlord Tenant Act, including mailing a “full and specific” deposit accounting within 21 days of the tenant vacating the property.  Judges tend to put the burden of proof on landlords so document everything!

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

 There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

SEATTLE, WASHINGTON

TERMINATE A LEASE?

A lease or rental agreement may be terminated by the landlord before the end of the agreement only for specified reasons, including the tenant not paying rent, seriously damaging the property (waste), seriously interfering with the rights of other tenants (nuisance), conducting an illegal business on the property, or violating an important rule or regulation. In all instances, proper notice must be given so the tenant can rectify the situation or contest the allegation.

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

 There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

NON-RESIDENT ALIEN INVESTORS

FIRPTA typically requires that taxes be withheld monthly on gross rental income for non-resident aliens. Passive rental income for foreign investors is subject to a flat 30% withholding tax. The withholding requirement is on gross rather than net income and the responsibility to collect this may apply to the leasing broker or property manager.  Foreign investor clients should be referred to an attorney or CPA prior to purchasing an investment property.

According to the IRS:

Before agreeing to manage U.S. real property for a foreign taxpayer, a real estate professional or rental agent should discuss with the foreign client whether the rental income will be taxed as investment income through withholding, or on a net income basis as, “effectively connected with a U.S. trade or business,” without withholding (although the owner may have to file estimated tax returns).

Please contact us for further assistance!

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

KIDS!! YEA or NAY?

You cannot deny tenancy to applicants just because they have children, even if you think the rental property is unsafe for children. Families are a protected class, so even if the property is such that owner thinks s/he could be assuming potential liability by renting to a family with children, the owner cannot deny tenancy on that basis. For instance, if an owner doesn’t want children in a houseboat because of concern that a child might fall off and drown, that decision is not the owners to make and denying tenancy on that basis would be considered discrimination.

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

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

CONTRACTOR REFERRALS

 

Referring a contractor who is not licensed, bonded and insured increases your liability and puts your clients at risk.  The person hiring someone who is not licensed, bonded and insured becomes potentially responsible for damage caused by unlicensed workers as well as medical bills and loss of wages for workers hurt on the job. Furthermore, the standard homeowner’s policy won’t provide coverage when knowingly using an unlicensed contractor. The Washington Realtor Hotline attorney says: In Washington State, there is a cause of action (a lawsuit claim) based on “negligent referral”. If broker refers a contractor to a party and the contractor damages the party, the party has a potential claim against broker for “negligent referral.” We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

Assignment & Subletting – Commercial Leasing

Most commercial leases prohibit a tenant from assigning or subleasing the leased premises to another party without first obtaining the landlord’s consent.  Often, a commercial tenant will execute a lease failing to insert language that a landlord will act reasonably when a tenant requests the landlord’s consent to an assignment or sublease.  A tenant, at the very least should negotiate that a landlord’s consent to an assignment or sublease should “not be unreasonably withheld, conditioned or delayed.”  A tenant needs to be concerned with this clause because most tenants do not realize that they could be in default under a lease simply because of (i) the death of a shareholder; (ii) the sale of the company and/or (iii) the reorganization of their company.  I have known landlords to hold up the sale/merger of a company because the landlord wants to renegotiate the lease as a condition to granting an assignment.  A tenant should attempt to have the lease permit certain assignments or subleases without obtaining the landlord’s consent, such as assignments to an affiliate company.

We are here to help you and your clients. For more information:

Contact: Sue Young, Director of Commercial Real Estate Leasing & Property Management: sueyoung@cbbain.com (email) or 425-636-4272 (direct)

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. 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 obtain the advice of an attorney well versed in these matters.

2016 Coldwell Banker Award Winners