Customer Support

Thank you for your timely response and explanation of the difference!
As new Landlords, we were excited about finding this site. The electronic application process was wonderful as it allowed us to simply enter the applicant’s name & email address then sit back and wait to view the three reports (Employment, Background & Credit). The applicant paid the fees and your service handled the consent forms & other authorizations.
The contract was nice too but we did run into some glitches:
First, it doesn’t have option to pull any information from rental application. We tried to find the applicant’s address & phone numbers to get started but they were not viewable so we had to call them.
Once entered we were moving along well but it didn’t pull any information set up originally with applicant such as Pet Deposits, Non smoking, state variances, etc.
Once finished, we purchased the contract download. The download could not be saved. We even tried copying it into MS Word and had difficulty saving the soft copy. There were several typos, spacing issues and grammatical & punctuation errors.
We had to add property description, correct verbiage to state house rather than apartment, insert missing paragraph on Inspections (copied from sample), delete repeated paragraph, etc.
Overall, I believe the terms of the contract will serve as protection to us but I thought you might like the feedback.
We have already told several people about your site (Realators, Investment Bankers, Insurance Agents and other acquaintances).
Thank you again!
Eugene
Kellyville, OK

Before You Buy Renter’s Insurance

Renter’s insurance is something every renter should have. It is inexpensive, depending on the amount you take out and your area you will likely pay between ten to twenty dollars a month for the coverage. It will protect you from theft and loss from fire. Most people have been robbed or know someone who has been robbed. This policy will protect you from paying for everything out of cost.
What Does Renter’s Insurance Cover?
Your renter’s policy will protect you if you are robbed, or if your apartment burns down. Additionally renter’s insurance includes liability protection. This protection will cover medical expenses if someone is hurt inside your apartment. This insurance will help you to replace items that are damaged or stolen. The liability insurance is also nice, because it will protect the assets and savings that you have acquired.
What Isn’t Covered by Renter’s Insurance?
It is important to realize that a renter’s insurance policy does not cover everything. Most insurance policies will not cover a flood. You will need to purchase an additional policy to cover flooding. This is especially important if you live in a flood plain area. Many apartments will let you know if they are located in a flood plain.
How Much Coverage Should You Purchase?
You need to determine the amount of your insurance policy. When you do this, you should carefully consider the costs of everything you have. If you are robbed, you will likely only need to replace jewelry and electronics. If you are the victim of a fire, then you will need to replace your clothing, your furniture and other personal effects in addition to your electronics.
Read the Fine Print for Limits and Exclusions
It is important to read your policy carefully. Some insurance companies put a limit on the amount that they will cover in different areas. They may limit the total amount that they would pay in electronics to $500.00. If this is the case, then you would need to purchase an additional policy to cover those items. If you work from home, you need to consider the cost of the equipment that you use. You may need an additional policy to cover your liability in relation to your job.
Take Advantage of Discounts for Your Policy
When you purchase your renter’s insurance, it is important to shop around. You can receive a discount when you get it through the same company as your car insurance. You should check for discounts through your job, professional associations, and alumni associations as well.
By Miriam Caldwell, About.com Guide

10 Inexpensive Ways to Spruce Up Your Rental or Rehab Property

This was the one useful thing I have ever received from your company so far. Thanks and keep it up.
Adele
10 Inexpensive Ways to Spruce Up Your Rental or Rehab Property
by Bill Bronchick
It’s easy to fix up your properties if you have unlimited cash. However, you need to keep your repairs to a minimum to stay profitable. You also need to keep your properties in good shape to attract tenants or buyers. There are the basic improvements, such as carpet and paint, but these can still costs thousands of dollars. The following are some inexpensive ways to improve your properties with very little cash.
#1) New Electrical Switch Plates
This is such a minor, yet overlooked improvement. Most rental owners and rehabbers paint a unit and leave the old, ugly switch plates. Even worse, some even paint over them.
New switch plates cost about 50 cents each. You can replace the entire house with new switch plates for about $20. For the foyer, living room and other obvious areas, spring for nice brass plates. They run about $5 each – not much for added class.
#2) New or Improved Doors
Another overlooked, yet cheap replacement item is doors. If you have ugly brown doors, replace them with nice white doors (you can paint them, but unless you have a spray gun it will take you three coats by hand).
The basic hollow-core door is about $20. It comes pre-primed and pre-hung. For about $10 more, you can buy stylish six-panel doors. If you are doing a rehab, the extra $10 per door is well worth-it. For rentals, consider at least changing the downstairs doors.
#3) New Door Handles
In addition to changing doors, consider changing the handles. An old door handle (especially with crusted paint on it) looks drab. For about $10, you can replace them with new brass finished handles. Replace the guest bathroom and bedroom door handles with the fancy “S” handles (about $20 each).
#4) Paint/Replace Trim
If the entire interior of the house does not need a paint job, consider painting the trim. New, modern custom homes typically come with beige or off-white walls and bright-white trim. Use a semi-gloss bright white on all the trim in your houses.
If the floor trim is worn, cracked or just plain ugly, replace it! Home Depot carries a new foam trim that is pre-painted in several finishes and costs less than 50 cents per linear foot. Create a great first impression by adding crown molding in the entry way and living room.
#5) New Front Door
You only get one chance to make a first impression. A cheap front door makes a house look cheap. An old front door makes a house look old. If you have nice heavy door, paint it a bold color using a high-gloss paint. If your front door is old, consider replacing it with a new, stylish door. For about $125, you can buy a very nice door.
#6) Tile Foyer Entry
After the front door, your next first impression is the foyer area. Most rental property foyers are graced with linoleum floors. Consider a nice 12″ Mexican tile. An 8′ x 8′ area should cost about $100 in materials.
#7) New Shower Curtains
It amazes me that many landlords and sellers show properties with either no shower curtain or any ugly old shower curtain in the bathroom. Don’t be cheap – drop $40 and buy a nice new rod and fancy curtain.
#8) Paint Kitchen Cabinets
Replacing kitchen cabinets is expensive, but painting them is cheap. If you have old 1970′s style wooden cabinets in a lovely dark brown shade, paint them. Use a semi-gloss white and finish them with colorful plastic knobs. No need to paint the inside of them (unless you own a spray gun), since you are only trying to make an impression.
Americans spend 99% of their time in the kitchen (when they are not watching TV). A fancy modern faucet looks great in the kitchen. They can run as much as $150, but not to worry – most retailers (Home Depot, Home Base, etc) often run clearance sales on overstocked and discontinued models. I have found nice Delta and Price Pfister faucets for about $60 on sale.
#9) Add Window Shutters
If you have ugly aluminum framed windows, consider adding wooden shutters outside. They come pre-primed at most hardware retailers and are easy to install. Paint them an offset color from the outside of the house – (e.g., if the house is dark, paint the shutters white. If the house is light, paint them green, blue, etc.).
#10) Add a Nice Mailbox
Everyone on the block has the same black mailbox. Stand out. Be bold. For about $35 you can buy a nice colorful mailbox. For about $60 more, you can buy a nice wooden post for it. People notice these things….and they like them!

Cash Flow Isn't Always Easy

My wife watches all sorts of TV shows with one of her favorites being with Scott McGillvray. He has a great show about cash flowing properties and at the end of each one he shows how much money the person will be pocketing each month and I just have to laugh. That number is always assuming that nothing goes wrong.
Lets look at our own housing situation. How many months have you had nothing go wrong with your house? Just last month we had a broken door, broken door handle, broken garbage disposal and some plumbing problems as a result. Other months it is always something else and we are no different. When you buy a cash flow property you are buying the good and the bad so sure you will have some months when you make money, but you’ll also have months where you lose money. In the end you are banking on the appreciation of the home while having good renters or leasers who take care of the place. It just isn’t as easy as a half hour show makes it out to be.

Buy and Hold Coming to an End Soon

I’ve talked to several people lately about different real estate strategies to use and the one that has been the most popular among smart real estate investors has been the buy and hold. NOT THE FLIP. People flip homes when the market is moving at a pace that allows them to get a house quickly and turn it for a profit. But the investors that are absolutely cleaning up right now are the ones who are buying homes and holding them. Why is that?
First, the interest rates have been low enough for so long that if people have money to put down they can get these low rates on properties. A man I work with in Las Vegas has been buying up plenty of 100k houses and getting them rented while having extremely low payments on those houses. Why is this a good idea? Plainly, even if the interest rates go up in the area he is in a spot where renters will always be able to afford his payment and if the area goes up in value with the economy then he is sure to really increase the equity in each property. It’s a win across the board for him now.
Second, interest rates have started to go back up. When interest rates go back up something interesting will happen that the country isn’t prepared for at the moment. The housing values will have to stay still or even drop. I say this because the average person owns a 3 bed/2 bath house in our country and if they can’t afford an average payment at a 6% interest rate or higher then the market will have to adjust so they can. By getting these homes now at low rates you are setting yourself up for the best long term success because you can afford the payment at the low rate and it isn’t going to adjust on you like it did during the serious downswing we had a couple years ago.
Real estate is a great way to make long term wealth. Each day I deal with great owners of homes or apartments and they really see things for how they are when it comes to our market. I get great advice from them daily and I love to pass it on to you.

Common Expenses for Rental Properties

Here are some common expenses that you can expect and prepare for when owning either apartment units or rental properties.
* Carpet: Carpet is something that always needs being cared for. Think about it. You need to get the carpets cleaned when someone moves out and moves in. The carpet might get stained or ruined as a result of use or overuse. Carpet may just be old and out of style. When carpet goes out of style it is something that can keep someone from renting the property. Many property owners simply put in high wear carpet that is neutral in color because it doesn’t wear out easily and it matches everything for a long time. Its the way to go if you ask me. Other people will allow renters to do what they want with the carpet. When I owned my properties I would do ‘lease to own’. When someone signs a lease to own it gives them the ability to do what they want to the property which gave me a chance to make a little extra money by getting specific carpet guys or paint guys into the property.
* Paint: Things happen. Unless you are doing a lease to own, never let a renter paint the property. People have unique ideas on color and it rarely turns out right. Also, when someone moves in and out they are inevitably going to do some damage to the walls. Once that happens you will have to paint. Keep gallons of generic paint colors around that you can touch up with that has already been matched to the existing colors. Use basic colors that don’t go out of style and blend easily. You want it to look nice but also you have to think about making money on the property. Money is made by not coming out of pocket for unnecessary things.
* Plumbing: One of the most important things to always check when buying a rental is to look at the plumbing. Look for signs of water damage on the walls and ceilings. Check to see how old the pipes are and if the water is soft water or not. All these things matter because the most expensive type of damage to a home is water damage. We’ve lived in several different places over the last few years. In one home we were using the shower and the water was draining to the garage. It sounded and looked like a rainstorm in there. Water damage almost always causes mold and that can cause health problems for everyone.

What rising interest rates mean for the rest of us?

July 5th, 2013

In case you haven’t noticed, rates are slowly slowly starting to climb up. What exactly does this mean for the average homeowner? In fact, homes are actually starting to sell again in our country and building is taking place again. In our local community here we are seeing a big increase in commercial business that is actually very exciting to see. What happens when homes start to move again?
Let’s look at question 2 first and then answer question 1 because they have a direct tie on one another. When homes start to move again it creates less supply. When you have less supply the demand becomes automatically greater and the prices start to go up. Scarcity creates more demand for something in almost every case and that drives pricing. For example, a home near us sold for around 500k last week. It was a very nice home and the neighborhood is considered very good so people want to live there. When a house goes on the market in our area it is automatically generating interest and people bid up the prices on the homes. That should make perfect sense to everyone reading this and should be pretty basic.
Now how does the rising interest rates effect that? This is the most important thing to really discuss today and why I tell people that this is probably the ending of one of the best times to buy a house in the last 50 years. The rates at which you can borrow money are so so so low right now that everyone needs to take advantage. Let me give a real life example: If you were to buy a 300k home right now the interest rate you would get would be around 4.6%. Very good rate, not as good as a year ago but still very good. If you put 20% down you would have a payment of around 1233 dollars. That’s a 240k loan basically. Now, if you took the same loan amount but had a 6% interest rate (great for my earlier days), you would have a payment of 1424 dollars. 200 dollar increase a month for the same house. You don’t want to add that up over a 30 year period do you?
These scenarios are very real. To get the most bang for your buck today you want to buy as soon as you can before the rates start to climb up even more AND THEY WILL. Historically speaking we just can’t sustain interest rates this low for this long of a period of time. If you have the chance to buy then buy while you can get the most house for the least amount of money because really, this won’t last much longer.

Paying for Real estate education

August 29th, 2013

I know, what a strange topic right? In reality though I wanted to talk about something that has come up quite a bit lately in the news. Donald Trump is being sued by the State of New York for offering real estate education and having people pay for it and I’m not sure at all what he did wrong.
I’ve read the complaints where people claim that they paid for things that didn’t happen or didn’t take place. People complained about paying for services that never happened. I get that and I agree with them. If you pay for a service that isn’t provided then you have every right. Where I get a little bothered is where people pay for the service and the service is fulfilled and then they ask for a refund. This falls under the classification of education. If I attend college and I study criminal justice but I decide not to do anything with that degree then is that my fault or the schools fault. Do I get a refund? NO. Of course you don’t get a refund at all. When a company makes an agreement with an individual it goes 2 ways. One is the company promising to provide and educational service with the other party doing what they are supposed to do. If I charge someone 500 dollars to attend a real estate seminar and they attend and learn then I’ve done my part. That person has no right to a refund unless I do not fulfill my part of the obligation. But once the education is taught the responsibility falls to the person who received it. While, in theory, I could make a real estate transaction for someone it simply doesn’t fall into my responsibility as an educator. That’s where Trump is coming in. If people were told they would make specific amounts of money or anything outside of the area of education then Trump has to fulfill that but if people were sold education then it is that specific persons job to turn that education into action.
Would I pay for real estate education? Of course I would. I would pay for any type of education that can benefit me in my life. Some of the best and brightest minds have paid for educational services that have served them very well. Real estate is an area of life where people can make or lose a lot of money so it is best to know what you are talking about. Think about it, if you paid 5k for an educational experience and you learned something that saved you 15k on your current housing situation you would be very glad wouldn’t you?

The Top 10 Apartment Resident Complaint

March 28th, 2014

When experiencing an uptick in vacancies, most property managers ask themselves what could be causing their resident to leave. Without asking former tenants directly (or waiting for a bad review) how can you discover the reason for their discontent? Thankfully, J Turner Research, a marketing research firm serving the multifamily industry has done just that. They surveyed 10,000 U.S. apartment residents regarding their satisfaction, and have published their results by ranking the top 10 apartment resident complaints:
1. Rental rates
2. Poor grounds / common area upkeep
3. Disorganized staff / lack of communication with staff
4. Quality of response to maintenance requests
5. Overall customer service of management staff
6. Quality of parking / parking availability
7. Concerns over security / safety / lighting
8. Lack of upgraded amenities
9. Pets not on leash / poor pet waste removal
10. General lack of preventative maintenance
According to their findings, apartment residents across the nation have been more unhappy about rental rates than any other issue. In fact, residents mentioned the cost of rent more than twice as often as concerns about pet waste, which has been a big source of dissatisfaction in the past. Rent prices were nearly three times more likely to be cited by disgruntled tenants than noise, which surprisingly didn’t crack the top ten. This could be proof of a softening in rent fundamentals, which have been experiencing somewhat of a rebound since the country began to recover from the recession.
Aside from rental rates, residents are most often unsatisfied with on-site customer service from management professionals and members of the maintenance staff, which factored into three of the top five complaints.
How You Can Use This Information
While there are a number of complaints that would be worth addressing, it seems the best opportunity to improve resident satisfaction levels is by resolving any issues with the onsite staff’s response to resident concerns. And, because the relations between residents and community staff have such an impact on the community’s reputation and online ratings, this should definitely be one of the key focus areas for multifamily properties moving forward.
Another way property managers can improve customer satisfaction is by completing any deferred maintenance, upgrading appliances, or updating amenities and common-areas. This is particularly important when a community’s curb appeal factors into online ratings and reviews.
Analysts go on to suggest that “communities with the highest levels of customer satisfaction also benefit from the best online ratings and reviews.” Therefore, as property managers continue efforts to maintain a positive reputation, it remains crucial to measure customer satisfaction—and dissatisfaction, and asses how well efforts to improve these issues are actually working.
Sara Thompson writes about property management in partnership with Zenith Properties NW, LLC in Vancouver, Washington. For more tips and advice, visit http://www.zenithpro.com/blog/.
By Sara Thompson in BusinessPropertyManager.com a Service of AppFolio

OCCUPANCY BY WHO’S STANDARD, Part I of II

April 29th, 2014

OCCUPANCY BY WHO’S STANDARD, Part I of II
By Jo Becker, Education/Outreach Specialist, Fair Housing Council
Serving Oregon and SW Washington
I recently read an article on screening by a representative of a NW property management firm. In it was included the company’s screening requirements, as well as what was apparently their stock occupancy standard for all units: “Maximum occupancy of no more than two (2) persons per bedroom.”
There is a growing body of case law across the country in which housing providers – both landlords and condo / homeowners’ associations – have lost cases in which they’ve had two-people-per-bedroom policies. At this point, we have not seen a housing provider loose a case with a two-plus-one policy1, so long as it takes into account other factors such as the overall size of the unit. The recommendation we’re seeing come out of these cases is that housing providers ought to thoughtfully consider a separate occupancy standard for each, individual floor plan, based on several factors.
The Fair Housing Council has put out more than one article on occupancy standards and related fair housing implications (available at www.FHCO.org/occupancy.htm) but this is a topic that continues to come up in classroom sessions and Hotline questions. Having also just read a couple stunning reports detailing the legal and historical context for occupancy standards, I thought I’d dive back into the subject anew to reiterate fair housing cautions and share some very illuminating information.
What follows is the first in a two-part series detailing research and commentary by two occupancy policy experts and fair housing advocates. In this article, we’ll look at the work of Tim Iglesias of the University of San Francisco School of Law as he explores the legal implications and disparate impact of overly restrictive occupancy policies, including two people per bedroom. In the next article, the work of Ellen Pader, an anthropologist and Associate Director of the Housing Research Center at the University of Massachusetts Amherst provides revealing historical and cultural perspectives behind our country’s occupancy policies.
THE PROBLEM
Tim Iglesias states clearly that “overly restrictive private ROS [residential occupancy standards]… substantially reduce the housing choices… Demographic trends and the prolonged economic recovery which prompts more doubling-up promise this issue will only grow in importance.” What’s more, there are profound societal fair housing implications, regardless of individual intentions.
Iglesias proffered some suggestions to the Dept. of Housing and Urban Development (HUD) in a document entitled Recommendations to HUD Regarding Application of the FHAA2 to Residential Occupancy Standards. In it he states that, “the two-person-per-bedroom standard discriminates against families. New empirical evidence demonstrates that this finding applies to substantial proportions of studios and one-bedroom apartments…” He sites a study that “found that families with children run afoul of the standard more than ten times as often as other households. Ten percent of families with children live in one-bedroom units, and nearly three-quarters of those families exceed the two-person-per-bedroom standard.
In addition, regardless of the type of unit to which it is applied, the two-person-per-bedroom standard has a disparate impact across racial lines. National studies show that the proportion of African Americans excluded by this occupancy standard is statistically significantly higher than for whites; the proportion of Asians excluded is higher than the proportion of blacks; and the proportion of Hispanics excluded is the highest of all. Indeed, more than one-third of all Hispanic children living in one-, two-, or three-bedroom apartments in the United States in 2007-2009 would have been displaced by rigorous application of the two-person-per-bedroom standard. Overall, the study found that when applied the two-person-per-bedroom standard substantially limits the housing choices of many thousands of families, especially Latinos, Asians and extended families.”
Iglesias asserts in a 2011 Memo to Fair Housing Advocates that, “[t]his problem is particularly acute in nicer housing in neighborhoods with attractive amenities (e.g., good schools, access to shopping, jobs and medical care).”
He also explains that two-person-per-bedroom, “has a dubious origin:
1. There is no objective evidence that the two-people-per-bedroom standard was calibrated in any way to be a standard which presumptively avoided discrimination.
2. and, the two-people-per-bedroom standard predates the 1988 FHAA, which was intended to be remedial legislation to address previous discriminatory practices against families.
3. …research examining the historical origins of the two-person-per-bedroom standard has found that it was neither scientific nor otherwise objectively grounded, but merely the product of classist and ethnocentric paternalism.
According to Iglesias, “there is no objective evidence that the two-people-per-bedroom standard is necessary – much less uniquely suited – to protect landlords’ reasonable interests.
1. Rather, [it] is merely the housing industry’s traditional standard.
2. It’s really a prophylactic policy that errs widely on the side of protecting landlords’ interests and is not designed to avoid discrimination.
3. Moreover, in jurisdictions where FHAPs [Fair Housing Assistance Programs] employ a “two-persons-per-bedroom-plus-one” enforcement guideline, there is no objective evidence that landlords using this more generous standard have suffered any so-called “overcrowding effects.”
“Arguments that the two-person-per-bedroom standard has legal force are weak. Even if the Keating Memo3 has some legal force, it would be the whole memo, not the [two-person-per-bedroom] standard standing alone.” The memorandum “provides that a two-person-per-bedroom standard is “presumably reasonable” (ambiguous but apparently meaning presumptively compliant with FHAA), but that all private residential occupancy standards are subject to a multi-factor analysis to determine whether or it violates the FHAA.”
THE HARM
The problems with overly restrictive occupancy policies are numerous, leaving a multitude of households with few options. Many are harmed as they are forced to “reconfigure their household composition,” as Iglesias puts it, “[and] split up and deprive its members of their desired living situation. Splitting up the family can conflict with deeply held cultural preferences / norms to live closely as a way of life and to keep together the intergenerational family, the extended family, or both.”
If unwilling to “reconfigure its composition,” then the family must either:
• secure more housing than desired which imposes additional costs,
• accept inferior quality housing, such housing often poses health risks to residents or
• accept an inferior location, “…typically in an area with worse schools, more crime, and decreased access to jobs, transportation, shopping, and other amenities. Cumulatively, movement to these inferior locations increases economic and racial segregation.”
“Finally, the denial of housing choice by the application of a restrictive residential occupancy standard may also constitute illegal discrimination.” Iglesias goes on to site a multitude of cases that reference the discriminatory harms incurred by ROS3.
THE JUSTIFICATION
Why do landlords impose ROS? Iglesias asks then answers the question:
1. “They do this for a variety of reasons. Some are legitimate some of the time, but they are often overstated. And landlords have a hard time documenting a clear and direct linkage between a legitimate business reason and a particular ROS.
2. Landlords’ traditional arguments for imposing a ROS are summarized by the phrase “overcrowding” and include:
a. preventing a variety of economic costs caused by so-called “overcrowding,” including concerns about future property value and profits, increases in “wear and tear” costs…, extra expenses for utilities and garbage, increased (risk of) damage to the property, increased insurance costs, and increased management costs;
b. preventing nuisance-type harms to other tenants and neighbors from “overcrowding,” including noise and increased demands for parking;
c. to promote often paternalistic concerns about the habitability / quality of life of tenants, including the safety and appropriateness of facilities for children and purported psychological harm to tenants from living in “overcrowded” spaces, and
d. to avoid overtaxing the carrying capacity of one or more systems of the housing unit (e.g., water or sewage).”
THE PROBLEMS WITH THE KEATING MEMO
Iglesias argues that HUD’s enforcement practices have enabled the two-person-per-bedroom standard to become de facto law, but that new empirical evidence demonstrates this standard is often discriminatory. Part of HUD’s implicit involvement includes what was issued as an internal document from a HUD staff, Mr. Keating, but which has come to be seen as an endorsement of two-people-per-bedroom policies. (You can view the Keating Memo and subsequent guidance from HUD at www.FHCO.org/occupancy.htm.)
As Iglesias notes, “[s]ometimes defendants seek to use HUD’s Keating Memorandum as a “defense” of two-person-per-bedroom standards because the Keating Memo states that this standard is “presumptively reasonable.” While many courts have made reference to the Keating Memo and the two-person-per-bedroom standard, no court has ever properly analyzed whether it owes any deference to the Keating Memo. Even if the Keating Memo is due some deference, such deference would be to the whole memo including its factors analysis…”
The Keating Memo is problematic for many reasons, including its use of the two-person-per-bedroom standard as “presumptively reasonable” and its lack of clarity in how to apply the factors it advices housing providers to consider, such as the size of bedrooms and the unit, the configuration of unit, other physical limitations of the housing, state or local law, and other relevant factors.
Iglesias notes that, “any private residential occupancy standard – including two-persons-per-bedroom – is subject to review using the factors stated in the [Keating] memo… [T]he misunderstanding among many that the Keating Memorandum provides a “safe harbor” for landlords who impose a two-person-per-bedroom standard” has caught a growing number of housing providers by surprise.
Among other things, Iglesias urges HUD to “adopt a regulation to define the appropriate liability standard and defenses and to establish a true safe harbor for landlords. The Keating Memorandum provides a useful form for this standard, but specifics need to be worked out.” He goes on to theorize that “[i]f studies were conducted, they are likely to show that 2.5 people per bedroom or 3 people per bedroom is a more appropriate safe harbor, at least for studio and one-bedroom units. The Keating factors must be further specified, e.g. setting the square footage of a regular-size bedroom and defining when additional habitable space requires allowing additional occupants.”
Check back here for the next in this two-part series. Don’t forget to go back and take a look at FHCO’s earlier articles on occupancy policies posted at www.FHCO.org/occupancy.htm for additional information in the meantime. Of course, you can find information about familial status and race, color, and national origin and other protected classes at the Council’s site as well.
This article brought to you by the Fair Housing Council; a nonprofit serving the state of Oregon and SW Washington. All rights reserved © 2014. Write jbecker@FHCO.org to reprint articles or inquire about ongoing content for your own publication.
To learn more…
Learn more about fair housing and / or sign up for our free, periodic newsletter at www.FHCO.org.
Qs about this article? ‘Interested in articles for your company or trade association?
Contact Jo Becker at jbecker@FHCO.org or 800/424-3247 Ext. 150
Want to schedule an in-office fair housing training program or speaker for corporate or association functions?
Visit www.FHCO.org/pdfs/classlist.pdf
At the Fair Housing Council (FHCO), we have long recommended a policy of two individuals per bedroom plus one more individual for the unit. For example, a housing provider might limit a two bedroom-home to five individuals. This “two plus one” formula can help insulate the housing provider from fair housing violations based on occupancy in most situations. That being said, additional factors should always be considered in developing individual policies.
2 The federal Fair Housing Act (FHA) of 1968 coupled with the Fair Housing Amendments Act (FHAA) of 1988 protected the following classes in a housing: race, color, national origin, religion, sex, familial status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Washington law covers martial status, sexual orientation, and domestic violence survivors, and honorably discharged veterans / military status. Additional protected classes have been added in particular geographic areas; visit FHCO.org/mission.htm and read the section entitled “View Local Protected Classes” for more information.
3 U.S. v. Lepore, 816 F.Supp. 1011, 1013-1014 (D.C. Pa 1991)(reciting facts of effects of threatened eviction); U.S. v. Hover, 1995 WL 55379, 2-3 (N.D. Cal. 1995)(resiting facts of denial); Sams v. HUD, 76 F.3d 375 (Table)(1996); HUD v. Patricia Trucksess, FHEO Nos. 03-10-0065-8, 03-10-0068-8, 5-6 (alleging injuries from the discrimination, including loss of connections to siblings living in same/nearby apartment house)

Tax Time Doesn't Have to Be Taxing

Tax time is here again and you should be aware that rental income isn’t the only way to make money when you rent a property. There are many incentives and tax advantages given to rental owners that entitle you to larger profits. Some of these money saving advantages are available monthly, and some of which are available annually when filing your taxes

Were you aware that often the entire amount of your property loan payment is tax deductible? This means that both the principle and interest payments made towards your property loan may possibly be deducted from your rental income. In addition, the interest that you pay on credit card purchases for your rental property is also tax deductible. As a real estate investor, you want the rental income to match as closely as possible to the property expenses to minimize tax liability.

Some of the other common property expenses that are tax deductible include repair and maintenance costs, home office expenses, casualty or theft loss, all related travel to the property to make repairs or do regular inspections, professional fees such as an attorney or accountant, hazard insurance premiums, property depreciation beginning from year two of the rented property, and even a portion of your landlord association membership dues. The government provides us these tax exemptions to encourage greater real estate investing. Real estate investing plays a strong role in the economy, from the laborers who repair and build houses, to the mortgage broker who secures the property loan. Your investment dollars help to strengthen the housing sector in many ways and these tax deductions is our government’s way of saying “thanks”.

The major key to taking advantage of the available write-offs is good record keeping. A complete year-to-date file of your properties income and expenses will help ensure accuracy and assist your tax preparer in capturing the largest possible tax deductions for your business. So start by organizing your credit card statements, mortgage and insurance statements, and receipts. In addition, always check with a tax adviser or the IRS about other returns, deductions, or advantages that may be available for your situation specifically. The tax laws change often, so consulting with a professional who is familiar with real estate investments will keep you up to date with what’s available to you as an investor. And don’t forget that their fee is a write-off!

Also, talk to each other. Real estate investors can help one another by just sharing their own experiences. The tax rules for landlords are pretty favorable. Let us learn from our peers, and the professionals, how to only pay our fair share of taxes.

Katie Poole – Hussa is a Licensed Property Manager, Continuing Education Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at Katie@SmartPM.com