Landlords or property managers are essential people in the apartment or home rental process. They help you sign and understand the lease, fix and address issues within your apartment, ensure the apartment and complex remain safe and clean and are your go-to person for any problems.
But, it’s important to know the boundaries of what a property manager can and cannot do. Read on for more information about landlord-tenant law and your rights as a renter. Knowing these 10 things a landlord cannot do will help you feel safe in your home.
1. Enter without proper notice
Your landlord is not allowed to enter your apartment without giving proper notice.
In many states, the landlord may not enter without first giving 24-hours notice. The format of notice may vary from place to place. Some apartment contracts state that notice must come in written or electronic form. Double-check your lease before moving in so you can know what to expect.
Once the landlord has permission, the tenant must let them into the apartment. Property managers usually enter to make repairs, to show the apartment to future tenants or to perform a routine check.
The only time the landlord may enter without notice is if there is a true emergency.
2. Force a tenant to leave
While evicting a tenant is legal, doing it without going through proper legal channels is not. This means that the landlord must give the tenant notice before evicting them.
The amount of notice does vary from place to place — ranging anywhere from days to months. If the landlord evicts a tenant without doing it properly, they can face serious consequences.
They also cannot turn off the tenant’s utilities without notice, especially if the apartment is in an area with extreme weather.
3. Raise your rent randomly
Once you sign a lease, it is a legally binding contract. This means that the landlord can not randomly raise the rent without cause.
There are a few instances where the rent can go up —some of these include the addition of a pet or significant remodeling.
The other time rent can go up is if the apartment is within the city’s rent control area. These usually state that landlords can raise the rent only by a certain percentage as specified. This is something you’ll want to check before signing a lease. However, outside of these situations, the rental rate negotiated in your initial lease holds strong.
4. Discriminate against a tenant
Landlords can not discriminate against current or future tenants. According to the Fair Housing Act, landlords cannot discriminate based on nationality, gender, race, disability or family status.
The Fair Housing Act also states that the landlord cannot say that an apartment is not available when it is, can’t harass you and can’t end a lease due to race, gender or family status.
5. Prohibit service animals
If you have a trained service animal according to the Americans with Disabilities Act, a landlord must rent to you even if there is a “no pet” rule.
Service animals, such as seeing-eye dogs, are exempt. You’ll likely have to show paperwork about your service animal, but, you will be able to rent an apartment with one under the law.
6. Allow lead content
Landlords are not allowed to rent apartments that contain lead-based paint or any lead content. This is more common in older homes or apartments but it is still something to consider.
They are responsible for checking the lead content, making repairs and ensuring they do not rent dangerous apartments with lead exposure to people.
7. Use a security deposit for wear and tear
Security deposits are part of almost every leasing contract. They are typically held for the duration of the lease and given back when the lease is over.
The landlord is not allowed to keep the security deposit to recover things such as normal wear-and-tear.
The only time they can keep it is if there are unusual repairs that aren’t normal wear-and-tear or if you break a lease early. They also aren’t allowed to charge a security deposit that is over the state’s limit. This changes from state to state so make sure to double-check what your state limits it at.
8. Refuse to make reasonable repairs
A landlord’s job is to make sure that your apartment is safe and livable. Refusing to make reasonable repairs could end in legal action against them.
Things such as removing mold or lead paint or fixing the utilities are something the landlord must help with. These are repairs that could endanger the tenant.
It is also illegal for landlords to ask tenants to make major repairs such as fixing the balconies or stairs.
9. Use your space
As per your leasing agreement, it is the renter’s right to the space you’re leasing. This means that the landlord cannot withhold space that is legally yours.
Spaces such as parking garages or storage units cannot be used for the landlord’s personal use.
10. Change the locks
Your landlord is not allowed to change your locks without letting you know. If they want to remove you from the apartment, they must go through legal channels to do so. Changing your locks without notice could end in serious legal troubles for the landlord.
What to do if your landlord breaks these rules
If you find yourself with a landlord that breaks any of these laws, you have some options. First, file a claim with the Department of Housing and Urban Development.
Make requests in writing and photograph any damage if your landlord refuses to make repairs. Should your landlord continue to neglect the problems, then you can call your local department of health and report the problems. If your landlord changes the locks without telling you, you can call the police. The landlord does not have the right to refuse you access to your apartment, even if they want to evict you. If you ever file a legal claim against your landlord they are not legally allowed to retaliate against you.
Know your rights
It is so important to know your renters’ rights. There are landlord-tenant laws in place for this very reason. Your landlord can not take advantage of you when renting an apartment. Make sure to do your research on landlord-tenant law and know exactly what a landlord cannot do so you’re not taken advantage of. With this knowledge, you’ll be better served and ready to rent an apartment.
Ashley Singleton is a writer who loves following and writing about current lifestyle, DIY and home improvement trends. You can read some of her other work on the Lady Spike Media website. In her spare time, she performs stand-up comedy in Los Angeles.
I bought my first rental property in 2010 and I admit it was much easier to buy rentals that cash flowed back. At least it was easier in my area in Northern Colorado. A lot of people wish they could go back in time to buy investment properties (me included) but no one has invented a time machine yet. Wishing for the impossible will do you no good. Since we have to live in reality can you still make money in today’s market with rental properties?
Why is it harder to buy rental properties in 2024?
It is harder to invest in real estate in 2024 due to multiple factors.
Interest rates are much higher than they have been for decades. High-interest rates are making it tougher on everyone in real estate. The high rates make it harder to cash flow no matter what prices are. They also make it harder to refinance properties which can be a big part of investing in rentals.
Housing prices are higher than they have ever been. Now, in most markets housing prices will always be higher than they ever have been, that is how the economy and inflation works. However, prices are still high and that makes it tough to buy rentals that make money.
There is record low inventory in most areas of the country. When there are fewer homes for sale it makes it harder to find deals which is what most real estate investors are looking for.
Many areas of the country are enacting tenant-friendly laws that make it harder on landlords. Rent control, free attorneys for tenants, no-cause evictions are all making it harder on landlords.
There is a growing ideology claiming landlords are evil and hurting society because they raise prices and take housing away from owner-occupants.
It is important to know that even though these things make it harder for real estate investors trying to buy now, rising prices have made many existing real estate investors very rich. Landlords also help the housing market, they do not hurt it.
How do you make money with rentals in today’s market?
I hope I did not scare everyone off with the doom and gloom of the last section of this article. However, there are still ways to make money with real estate in today’s market. How do you make money with rentals?
High interst rates make it tougher to make money but they are coming down and they should continue to decrease over the next couple of years. Real estate investors have made money with higher rates for decades even if it is harder to do so.
Housing prices are higher but there are still good deals out there. There will always be good deals no matter how high prices are. The key to investing in real estate is getting a good deal whether you or flipping or buying rentals. Good deals can make up for all of the other issues.
While there are few houses for sale right now there are still houses and multifamilyl and commercial real estate for sale. Real estate investors also do not need to buy only properties that are for sale. There are also off-market deals that can be just as good or better than on-market deals.
There are a lot of areas that are enacting more laws against landlords. However, there are still many areas that are landlord-friendly and I made list of the best states for landlords here.
It may be tougher to invest in real estate now than ten years ago but it is still definitely possible to make money with rental properties.
What strategies can you use today to make money in real estate?
It might not work to buy a single-family house in Denver or Seattle or Miami as a rental anymore if you want it to cash flow. While it might not work in every city there are still many areas where you can make money with single-family homes. There are also different strategies you can use to make money with real estate.
Invest in different markets. Not every market will work for every real estate strategy. It is really hard to start out as an investor in an expensive market. There are many markets with affordable real estate and while it is not easy investing in a different market could be the route to take.
Being a landlord may not be the right move for you right now. It is possible to flip houses and make money in some markets when you can’t make money with rentals in those markets.
Switching to a different type of rental may help as well. I switched from single-family rentals to commerical real estate in 2016. I also added in some multifamily properties as well. They often cash flow better than single-family rentals in expensive markets.
If you cannot afford to invest in your market, finding a partner may be another way to make real estate work in your area. Many people love to have their money in real estate but do not have the time to find the right investments.
While it is not easy to invest in real estate right now, it is rarely easy. Even when I bought my first rental properties many people (including those in the industry and in my family) told me I was an idiot. They told me the market would keep crashing and real estate would never come back. It was also tougher to get loans back then and there were not nearly as many educational sources about real estate either. I learned most of my strategies from reading books, some that were decades old that I hoped would still hold true when I was investing.
Conclusion
There is no perfect time to invest. The only way to know when the timing is perfect is years or decades after that time occurred. Waiting rarely works out but luckily there are many ways to invest in real estate even if rentals won’t work for you in your market right now. If you want to learn more about investing in other markets I put together a very detailed webinar on the subject you can watch below.
You can sense it in the ubiquitous “Help Wanted” posters in artsy shops and restaurants, in the ranks of university students living out of their cars and in the outsize percentage of locals camping on the streets.
This seaside county known for its windswept beauty and easy living is in the midst of one of the most serious housing crises anywhere in home-starved California. Santa Cruz County, home to a beloved surf break and a bohemian University of California campus, also claims the state’s highest rate of homelessness and, by one measure based on local incomes, its least affordable housing.
Leaders in the city of Santa Cruz have responded to this hardship in a land of plenty — and to new state laws demanding construction of more affordable housing — with a plan to build up rather than out.
A downtown long centered on quaint sycamore-lined Pacific Avenue has boomed with new construction in recent years. Shining glass and metal apartment complexes sprout in multiple locations, across a streetscape once dominated by 20th century classics like the Art Deco-inspired Palomar Inn apartments.
And the City Council and planning department envision building even bigger and higher, with high-rise apartments of up to 12 stories in the southern section of downtown that comes closest to the city’s boardwalk and the landmark wooden roller coaster known as the Giant Dipper.
“It’s on everybody’s lips now, this talk about our housing challenge,” said Don Lane, a former mayor and an activist for homeless people. “The old resistance to development is breaking down, at least among a lot of people.”
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Said current Mayor Fred Keeley, a former state assemblyman: “It’s not a question of ‘no growth’ anymore. It’s a question of where are you going to do this. You can spread it all over the city, or you can make the urban core more dense.”
But not everyone in famously tolerant Santa Cruz is going along. The high-rise push has spawned a backlash, exposing sharp divisions over growth and underscoring the complexities, even in a city known for its progressive politics, of trying to keep desirable communities affordable for the teachers, waiters, firefighters and store clerks who provide the bulk of services.
A group originally called Stop the Skyscrapers — now Housing for People — protests that a proposed city “housing element” needlessly clears the way for more apartments than state housing officials demand, while providing too few truly affordable units.
City officials say the plan they hope to finalize in the coming weeks, with its greater height limits, only creates a path for new construction. The intentions of individual property owners and the vicissitudes of the market will continue to make it challenging to build the 3,736 additional units the state has mandated for the city.
“We’ve talked to a lot of people, going door to door, and the feeling is it’s just too much, too fast,” said Frank Barron, a retired county planner and Housing for People co-founder. “The six- and seven-story buildings that they’re building now are already freaking people out. When they hear what [the city is] proposing now could go twice as high, they’re completely aghast.”
Susan Monheit, a former state water official and another Housing for People co-founder, calls 12-story buildings “completely out of the human scale,” adding: “It’s out of scale with Santa Cruz’s branding.”
Housing for People has gathered enough signatures to put a measure on the March 2024 ballot that, if approved, would require a vote of the people for development anywhere in the city that would exceed the zoning restrictions codified in the current general plan, which include a cap of roughly seven or eight stories downtown.
The activists say that they are trying to restore the voices of everyday Santa Cruzans and that city leaders are giving in to out-of-town builders and “developer overreach laws.”
The nascent campaign has generated spirited debate. Opponents contend the slow-growth measure would slam on the brakes, just as the city is overcoming decades of construction inertia. They say Santa Cruz should be a proud outlier in a long string of wealthy coastal cities that have defied the state’s push to add housing and bring down exorbitant home prices and rental costs.
Diana Alfaro, who works for a Santa Cruz development company, said many of the complaints about high-rise construction sound like veiled NIMBYism.
“We always hear, ‘I support affordable housing, but just not next to me. Not here. Not there. Not really anywhere,’ ” said Alfaro, an activist with the national political group YIMBY [Yes In My Back Yard] Action. “Is that really being inclusive?”
The dispute has divided Santa Cruz’s progressive political universe. What does it mean to be a “good liberal” on land-use issues in an era when UC Santa Cruz students commonly triple up in small rooms and Zillow reports a median rent of $3,425 that is higher than San Francisco’s?
Beginning in the 1970s, left-leaning students at the new UC campus helped power a slow-growth movement that limited construction across broad swaths of Santa Cruz County. Over the decades, the need for affordable housing was a recurring discussion. The county was a leader in requiring that builders who put up five units of housing or more set aside 15% of the units at below-market rates.
But Mayor Keeley said local officials gave only a “head nod” to the issue when it came to approving specific projects. “Well, here we are, 30 or 40 years later,” Keeley said, “and these communities are not affordable.”
Today, with 265,000 residents, the county is substantially wealthy and white.
An annual survey this year found Santa Cruz County pushed past San Francisco to be the least affordable rental market in the country, given income levels in both places. And many observers say UC Santa Cruz students contend with the toughest housing market of any college town in the state.
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State legislators have crafted dozens of laws in recent years to encourage construction of more homes, particularly apartments. While California has long required local governments to draft “housing elements” to demonstrate their commitment to affordable housing, state officials only recently passed other measures to actually push cities to put the plans into practice.
Regional government associations draw up a Regional Housing Needs Assessment, designating how many housing units — including affordable ones — should be built during an eight-year cycle. The state Department of Housing and Community Development can reject plans it deems inadequate.
For years 2024 to 2031, Santa Cruz was told it should build at least 3,736 units, on top of its existing 24,036.
Santa Cruz and other cities have been motivated, at least in part, by a heavy “stick”: In cases when cities fail to produce adequate housing plans, the state’s so-called “builder’s remedy” essentially allows developers to propose building whatever they want, provided some of the housing is set aside for low- or middle-income families. In cities like Santa Monica and La Cañada-Flintridge, builders have invoked the builder’s remedy to push ahead with large housing projects, over the objections of city leaders.
The Santa Cruz City Council resolved to avoid losing control of planning decisions. A key part of their plan envisions putting up to 1,800 units in a sleepy downtown neighborhood of auto shops, stores and low-rise apartments south of Laurel Street. Initial concepts suggested one block could go as high as 175 feet (roughly 16 stories), but council members later proposed a 12-story height limit, substantially taller than the stately eight-story Palomar, which remains the city’s tallest building.
City planners say focusing growth in the downtown neighborhood makes sense, because bus lines converge there at a transit center and residents can walk to shops and services.
“The demand for housing is not going away,” said Lee Butler, the city’s director of planning and community development, “and this means we will have less development pressure in other areas of the city and county, where it is less sustainable to grow.”
A public survey found support for a variety of other proposed improvements to make the downtown more attractive to walkers, bikers and tourists. Among other features, the plan would concentrate new restaurants and shops around the San Lorenzo River Walk; replace the fabric-topped 2,400-seat Kaiser Permanente Arena, which hosts the Santa Cruz Warriors (the G-league affiliate of the NBA’s Golden State Warriors), with a bigger entertainment and sports venue; and better connect downtown with the beach and boardwalk.
Business owners say they favor the housing plan for a couple of reasons: They hope new residents will bring new commerce, and they want some of the affordable apartments to go to their workers, who frequently commute well over an hour from places such as Gilroy and Salinas.
Restaurateur Zach Davis called the high cost of housing “the No. 1 factor” that led to the 2018 closure of Assembly, a popular farm-to-table restaurant he co-owned.
“How do we keep our community intact, if the people who make it all happen, the workers who make Santa Cruz what it is, can’t afford to live here anymore?” Davis asked.
The city’s plan indicates that 859 of the units built over the next eight years will be for “very low income” families. But the term is relative, tied to a community’s median income, which in Santa Cruz is $132,800 for a family of four. Families bringing home between $58,000 and $82,000 would qualify as very low income. Tenants in that bracket would pay $1,800 a month for a three-bedroom apartment in one recently completed complex, built under the city’s requirement that 20% of units be rented for below-market rents.
The people pushing for high-rise development say expanding the housing supply will stem ever-rising rents. Opponents counter that the continued growth of UC Santa Cruz, which hopes to add 8,500 students by 2040, and a new surge of highly paid Silicon Valley “tech bros” looking to put down roots in beachy Santa Cruz would quickly gobble up whatever number of new units are built.
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“They say that if you just build more housing, the prices will come down. Which is, of course, not true,” said Gary Patton, a former county supervisor and an original leader in the slow-growth movement. “So we’ll have lots more housing, with lots more traffic, less parking, more neighborhood impacts and more rich people moving into Santa Cruz.”
Leaders on Santa Cruz’s political left say new construction only touches one aspect of the housing crisis. Some of the leaders of Tenant Sanctuary, a renters’ rights group, would like to see Santa Cruz tamp down rents by creating complexes owned by the state or cooperatives and enacting a rent control law capping annual increases.
“No matter what they build, we need housing where the price is not tied to market swings and how much money can be squeezed out of a given area of land,” said Zav Hershfield, a board member for the group.
The up-zoning of downtown parcels has won the support of much of the city’s establishment, including the county Chamber of Commerce, whose chief executive said exorbitant housing prices are excluding blue-collar workers and even some well-paid professionals. “The question is, do you want a lively, vital, economically thriving community?” said Casey Beyer, CEO of the business group. “Or do you want to be a sleepy retirement community?”
Just days after the anti-high-rise measure qualified for the March ballot, the two sides began bickering over what impact it would have.
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Lane, the former mayor, and two affordable housing developers wrote an op-ed for the Lookout Santa Cruz news site that said the ballot measure is crafted so broadly it would apply to all “development projects.” They contend that could trigger the need for citywide votes for projects as modest as raising a fence from 6 feet to 7 feet, adding an ADU to a residential property or building a shelter for the homeless, if the projects exceed current practices in a given neighborhood.
The authors accused ballot measure proponents of faux environmentalism. “If we don’t go up,” they wrote, “we have less housing near jobs — and more people driving longer distances to get to work.”
The ballot measure proponents countered that their critics were misrepresenting facts. They said the measure would not necessitate voter approval for mundane improvements and would come into play in relatively few circumstances, for projects that require amendments to the city’s General Plan.
While not staking out a formal position on the ballot measure, the city’s planning staff has concluded the measure could force citizen votes for relatively modest construction projects.
The two sides also can’t agree on the impact of a second provision of the ballot measure. It would increase from 20% to 25% the percentage of “inclusionary” (below-market-rate) units that developers would have to include in complexes of 30 units or more.
The ballot measure writers say such an increase signals their intent to assure that as much new housing as possible goes to the less affluent. But their opponents say that when cities try to force developers to include too many sub-market apartments, the builders end up walking away.
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Santa Cruz’s housing inventory shows that the city has the potential to add as many as 8,364 units in the next eight years, when factoring in proposals such as the downtown high-rises and UC Santa Cruz’s plan to add about 1,200 units of student housing. That’s more than double the number required by the state. But the Department of Housing and Community Development requires this sort of “buffer,” because the reality is that many properties zoned for denser housing won’t get developed during the eight-year cycle.
As with many aspects of the downtown up-zoning, the two sides are at odds over whether incorporating the potential for extra development amounts to judicious planning or developer-friendly overkill.
The city’s voters have rejected housing-related measures three times in recent years. In 2018, they decisively turned down a rent control proposal. Last year, they said no to taxing owners who leave homes in the community sitting empty. But they also rejected a measure that would have blocked a plan to relocate the city’s central library while also building 124 below-market-rate apartment units.
The last time locals got this worked up about their downtown may have been at the start of the new millennium, when the City Council considered cracking down on street performers. That prompted the owner of Bookshop Santa Cruz, another local landmark, to print T-shirts and bumper stickers entreating fellow residents to “Keep Santa Cruz Weird.”
Santa Cruzans once again are being asked to consider the look and feel of their downtown and whether its future should be left to the City Council, or voters themselves. The measure provokes myriad questions, including these: Can funky, earnest, compassionate Santa Cruz remain that way, even with high-rise apartments? And, with so little housing for students and working folks, has it already lost its charm?
You’ve likely heard the terms rent control, rent-controlled apartment or even rent-stabilized apartment on television, in books or at the movies. But, what do these terms mean?
Does rent stay the same every year? Do rent stabilization, rent regulation and rent control mean the same thing? How does a renter find a rent-stabilized unit?
We’ll answer common questions about rent-controlled apartments and share how rent-stabilized units influence renters and property owners, family members and even the neighborhood around rent-regulated apartments. And, we’ll show you how to find one of your own.
What is rent control?
Rent control is a legal term for when a government agency (like a city or state) imposes restrictions on how much landlords can increase rent. Regulations vary by city and state. But, they generally limit the maximum amount a landlord can charge each month and restrict the annual rent increase.
What’s the purpose of rent control?
Rent stabilization and rent control aim to maintain affordable housing options for low and moderate-income tenants. These measures prevent sharp increases in rent, prevent some evictions and help keep people in their homes.
It’s useful when the supply of affordable apartments, condos and rental homes is low. It’s common in urban areas where the occupancy rate is high and the demand for housing sends prices soaring.
States and cities often enact price controls after a war or economic downturn. New York City was one of the first communities to impose rent regulations during World War II. The state of New York took over from the federal government in 1950. New York City now has over a million rent-stabilized apartments overseen by the NYC Rent Guidelines Board.
How does rent control work?
There are two types of rent control. Vacancy control protects current and future tenants. The city or state determines where to cap rent increases. The terms apply to future leases.
Vacancy decontrol means rents stay stable while the current tenant is in the apartment. Once that lease is up, the property owner can increase the rent. In some places, it can’t go higher than a particular dollar amount. In others, landlords can increase rents to whatever the market can bear.
Apartments tend to stay regulated. They may become deregulated if an owner claims it as a primary residence or if a tenant’s income exceeds a particular limit for two consecutive years.
What’s the difference between rent control and rent stabilization?
Rent control and rent stabilization are different. They’re both versions of rent regulation, a term that refers to limits on monthly and yearly rent increases.
Rent control is strict. It usually limits rents to a specific dollar amount. It includes older leases from when rent freezes were more common.
Rent stabilization limits price increases to a particular percentage. It’s much more common. For example, only a small percentage of New York City’s one million rent-stabilized apartments are under a true rent control agreement. The majority of these affordable homes are rent stabilized.
How can I find rent-stabilized apartments?
It depends on where you live. And, it’s not easy.
That’s because only a few states allow rent stabilization. In fact, rent control is illegal in many places. Consult this rent control map from the National Multifamily Housing Council (NMFC) to see what your state offers.
Protections vary within a state’s borders. In California and Oregon, rent stabilization laws apply to the entire state. In other places, rent stabilization measures are only available in particular cities.
Cities that allow rent control and rent stabilization often register rent-stabilized apartments with the city’s housing division. A renter in New York can consult a list maintained by the New York Division of Housing and Urban Renewal. Similar organizations (often called a rent board or rent guidelines board) may list available properties and provide valuable guidance. City offices and the city council may also offer apartment rental resources.
Can you inherit a rent-controlled apartment?
Even if your city or state offers rent regulations, actually finding a rent-regulated unit is a challenge. Rent-stabilized tenants are very aware of what a great deal they’re getting, so they move less often. Stumbling upon a stabilized apartment is rare. Renters in some very competitive cities have been known to read the obituaries to try to score a rent-stabilized apartment before it goes on the market.
But, even then, there’s no guarantee that the landlord will list the apartment. In New York City, a new tenant can inherit an apartment in a rent-controlled building if they occupy it for two consecutive years. So, if a long-term resident has planned ahead and invited a family member to move in with them for at least two years (and if the building is older than 1947 and the family lived in it since at least 1971), the general public will probably never see that apartment listing.
What kind of buildings contain a rent-stabilized or rent-controlled unit?
A rent-stabilized apartment is often found in an older building. Price controls typically apply to a building that contains six or more units. Language stating it’s a continuously occupied primary residence is common.
For example, in New York City, most true rent control tenants reside in buildings built before Feb. 1, 1947. Renters must have lived in their apartment since July 1, 1971, to qualify.
Focus your search on older buildings and buildings that contain rent-stabilized units. Eliminate an apartment building if it doesn’t have at least a half dozen units inside. Cross-reference these buildings with available units to increase your chances of a match.
How can you secure a lease for a rent-stabilized apartment?
If you’re lucky enough to find a rent-stabilized unit, act quickly. Competition is fierce.
Schedule a tour immediately. Document your rent history, bring the paperwork the landlord requires for the application and prepare for a background check. You may need to accept certain expenses without negotiation (like a pet fee or parking fee) in exchange for saving more money on rent every month.
If the apartment, the building and the neighborhood are a fit, sign the lease right away. Make sure any roommate or family member on the lease is available to sign it, too.
If you’re one of the fortunate ones who inherit a rent-controlled lease (after living there for two years, of course), protect it. Promptly pay rent (and every fee) and renew your lease.
Then, plan for the future. Your descendants will have to live there for two years if you want to pass it on.
How do rent-controlled apartments affect renters?
Your monthly rent payment is a major expense. Finding a rent-stabilized apartment is an effective way to keep housing costs down.
Rent-controlled apartments help keep low and moderate-income residents in their homes. This is especially important for people on fixed incomes, like the elderly and the disabled. Rent control can prevent some evictions and increase housing stability.
If residents can afford their rent, it’s easier to build their credit and rent history. Saving money on rent means people can pay down debt, increase their savings and provide a more financially secure life for themselves and their family members.
How do rent-stabilized apartment buildings help communities?
People who can easily afford their current apartment renew their leases more and move less often. They deepen their ties to their neighbors and patronize local businesses. Rent stabilization can lead to community renewal and stability.
How does a rent-controlled apartment affect a landlord?
The ability to renew a lease for less than the market rate is a great deal for a tenant. It’s not such a great deal for a landlord.
If a landlord can’t count on rent increases to keep up with inflation or taxes, they have to find new ways to pay their bills. They might charge a parking fee or increase the pet fee and deposit. Your landlord may delay maintenance or repairs or invest less money in their building.
They might raise the rents on other apartments to make up for the cost of maintaining rent-controlled homes. A landlord may also convert rent-stabilized apartments into condos to earn more revenue and protect their investment. This reduces rental inventory.
Apartment owners may build condos or vacation homes instead of apartments if local laws prioritize rent-controlled apartments. That makes it harder to find an affordable primary residence.
Rent control is a great way to go
Rent control and rent stabilization affect landlords, tenants and entire cities. It’s a challenge to obtain a rent-controlled apartment, so if you find one, hold onto it.
The information in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Alicia Underlee Nelson is a freelance writer and photographer. Her work has appeared in Thomson Reuters, Food Network, USA Today, Delta Sky Magazine, AAA Living, Midwest Living, Beer Advocate, trivago Magazine, Matador Network, craftbeer.com and numerous other publications. She’s the author of North Dakota Beer: A Heady History, co-host of the Travel Tomorrow podcast and leads travel and creativity workshops across the Midwest.
Elizabeth Hirschhorn, the Brentwood tenant who did not pay rent for her luxury Airbnb rental for 570 days, moved out of the unit on Friday.
The move was exactly one month after The Times chronicled Hirschhorn’s contentious tenancy, which began with a cordial stay on Airbnb and ended with her and Sascha Jovanovic, the landlord and property owner, suing each other.
“I’m a little overwhelmed, but I finally have my home back,” Jovanovic said. “I had such a peaceful weekend once she left.”
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During her stay, which began in September 2021, Hirschhorn said that the lease was extended off Airbnb and that the unit was subject to the Rent Control Ordinance, so Jovanovic would have to evict her if he wanted her to leave. She also argued that she didn’t have to pay rent since Jovanovic never obtained an occupancy license for the guesthouse.
Jovanovic, who lives on the property, was at the home on Friday being interviewed for a documentary detailing the battle between him and Hirschhorn when he saw three men, who turned out to be movers, walk into the guesthouse.
He said he asked why they were there, and they didn’t clearly say why. He suspected she could be moving out but feared it also could be a home invasion, so he called the police.
The police arrived, and once all of Hirschhorn’s belongings were packed, they escorted her off the property, Jovanovic said.
Jovanovic and his attorney, Sebastian Rucci, knocked on the door to confirm she was gone and then entered the guesthouse and found it empty. Within an hour, a locksmith arrived and changed the locks.
As of now, it’s unclear whether Hirschhorn moved out permanently, or if she’s planning to return to the property.
Jovanovic and Rucci said they hadn’t heard anything from either Hirschhorn or her legal team, so they assumed she had moved out for good. On Saturday, Rucci emailed Hirschhorn’s attorney, Amanda Seward, to figure out the next steps regarding Jovanovic’s eviction lawsuit against Hirschhorn.
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“My review of the case law is that once a tenant abandons the unit, the unlawful detainer is dismissed. If you wish, I can file the dismissal, or we can file a joint dismissal,” Rucci wrote.
Seward replied that they “may have jumped the gun,” according to the email exchange reviewed by The Times.
“Ms. Hirschhorn had discussed with me concern over the constant harassment and surveillance, and also the desire to get the things repaired that needed to be repaired. Subject to my discussions with Ms. Hirschhorn, please be advised that you have no authority to change the locks or to assume abandonment of the unit,” Seward wrote. “Further, you have violated the law by entering without permission and changing the locks.”
Neither Hirschhorn nor Seward immediately responded to a request for comment.
Rucci said he’s planning to drop the unlawful detainer lawsuit, assuming Hirschhorn has moved out for good. But he’ll still pursue damages in a separate lawsuit, since he claims Hirschhorn owes roughly $58,000 in unpaid rent. Hirschhorn said she owes nothing since Jovanovic never had a license to rent the unit, and her lawsuit accuses him of multiple forms of harassment and intimidation in attempts to get her to leave the place, which Jovanovic has denied.
Hirchhorn’s tenancy became a viral story in the days and weeks after The Times chronicled the saga. News vans posted up outside the home, and paparazzi followed Hirschhorn whenever she left.
“Drones were flying above my house every day. It was crazy,” Jovanovic said.
Now, he plans to address the mold damage in the unit, which was an issue during Hirschhorn’s stay that eventually soured their relationship. He also plans to get the necessary permits from the city, which was another issue; Jovanovic never obtained a license to rent the unit, and Hirschhorn argued in court that he wasn’t allowed to charge rent on a unit he didn’t have a license for.
After that, he plans to turn the space into a recreation room for his two adolescent children.
“We need to get the bad energy out and turn it back into a happy, family space,” he said.
The housing market in Boise is always evolving. As of the latest data, the Boise housing market presents a somewhat competitive landscape for prospective homebuyers, with houses receiving an average of two offers and being sold in around 21 days. This pace underscores a brisk but not frenetic market, allowing buyers some breathing room to make the right decisions at the right time.
The Boise housing market at a glance
A key indicator of market health, the median sale price of a home in Boise stands at $515,000, marking a modest year-over-year increase of 1.0%. This gentle price ascent reflects a market that is growing steadily, avoiding the pitfalls of sudden spikes or declines that can lead to instability.
Even more telling is the median sale price per square foot, which has seen a slight decrease of 3.8% since last year, possibly pointing to larger homes entering the market or a shift in the types of properties being sold.
The volume of sales tells a more nuanced story. In 2023, Boise saw 227 homes sold, a decrease of 19.8% compared to the previous year. This drop could reflect a variety of factors, including a potential shortage of inventory or a change in buyer sentiment. Nevertheless, the median days on market — a metric indicating how long homes are listed before a sale is agreed upon — has dropped from 34 to 21 days year-over-year, revealing that while fewer homes are being sold, those that are listed are moving quickly.
Competition in Boise’s housing market
Boise’s real estate market competitiveness is further clarified by the Redfin Compete Score™, which rates areas on a scale of 0 to 100, with 100 being the most competitive. Boise scores a 61, illustrating a market where homes often receive multiple offers but typically sell for about 1% below the listing price. Homes categorized as “hot” may sell for around the list price and go under contract in as few as 5 days, showcasing the desirability of certain listings.
Furthermore, the sale-to-list price ratio in Boise is 99.1%, up 1.2 points from the previous year, indicating that homes are selling close to their asking prices, a sign of a healthy market where there is a good balance between buyer demand and seller pricing.
Investing in Boise real estate
For those considering Boise as their next home or investment, these figures paint a picture of a market that is competitive but not overheated. The city’s real estate market is managing to keep pace with demand without succumbing to the volatility seen in other regions. This suggests a sustainable growth trajectory for Boise’s housing sector, making it an equally attractive proposition for buyers and investors.
Find a beautiful house in Boise
The Boise housing market is characterized by a stable yet competitive atmosphere, with homes selling relatively quickly and for near asking prices. While the number of homes sold has seen a downturn, the overall health of the market remains robust, reflected in the consistent sale prices and the competitive nature of listings. As Boise continues to attract attention for its quality of life and economic opportunities, its housing market is poised to maintain its steady course.
Renting in Boise
Turning our attention to the rental market in Boise, it also reflects the city’s broader economic trends and the influences affecting the housing market.
Rental markets in cities like Boise are typically influenced by several factors including the availability of housing, population growth and economic conditions. As home prices rise modestly, it can signal a corresponding shift in the rental market. Potential homebuyers who are priced out of purchasing may turn to renting, which can increase demand for rental properties and, subsequently, rental prices.
Average rent in Boise
In markets characterized by a competitive housing environment with rapid sales and close-to-list prices, rental properties often see high occupancy rates. Landlords and property managers may have the leverage to ask for higher rents, especially if the local economy is strong and the population is growing, which seems to be the case with Boise.
How the housing market affects the rental market
Additionally, when home sales decrease, as noted with the 19.8% year-over-year drop in Boise home sales, the rental market might absorb those who are waiting for the right time to buy or who prefer the flexibility that renting offers. This can lead to a decrease in rental vacancies, further pushing up rental prices.
However, it’s important to note that rental prices are also subject to regulatory changes, like rent control laws and the development of new rental properties, which can increase supply and potentially stabilize or lower rents.
Apartment rent ranges in Boise
$501 – $700: 1%
$701 – $1,000: 4%
$1,001 – $1,500: 29%
$1,501 – $2,100: 35%
$2,101+: 30%
Considering these factors, those looking to move to Boise should be aware of the potential for a competitive rental market. Prospective renters may face quick turnaround times on rental listings and should be prepared for a possibly dynamic pricing environment. Like the housing market, the rental market in Boise is likely to be resilient, reflecting the city’s economic stability and appeal as a growing urban center in Idaho.
Find the best spot for you in Boise
Those considering Boise as their home should weigh the pros and cons of renting versus buying in a market that is robust and thriving, with both sectors offering opportunities and challenges that reflect the city’s desirability as a place to live and work.
If you’re ready to settle down in Boise, find your home in just a few clicks with Rent.
Can you negotiate rent? The short answer is yes. After all, you never get anything unless you ask for it.
So, how do you go about negotiating rent? Rental negotiations can be tricky, so it’s always in your best interest to be strategic when talking to landlords. Here are different ways to negotiate rent, gain bargaining power, take action and (hopefully) get a lower rent from your property manager.
1. Understand the rental market
The first step in negotiating rent is to do your research ahead of time. Look around and understand what surrounding apartment rates are. Compare apples to apples. If you’re interested in a new development, then look at other new developments.
Make sure you have a clear understanding of the amenities that are available and how they compare to the unit you’re considering. For example, if one neighboring apartment complex offers covered parking, a gym and a pool, you’ll want to compare that to an apartment complex with similar offerings. After all, those amenities increase the price of rent. Make this info known to your property manager.
Rental rates are not a secret, but they can change from day to day. Get a competing rate in writing if you can, and if it’s lower than the one being offered, have it with you when you go to negotiate. A lower rate in a similar apartment is a great tool for negotiating a lower price on your own apartment.
2. Consider the time of year
For property managers, timing is everything and there are seasonal trends in the moving and rental industry. In other words, think about the broader supply and demand trends during any given season.
If it’s the end of the month, vacancies are high and you’d be willing to leave if you don’t get what you want, that could be a time when a manager is more likely to be amenable to your offer. However, if you don’t have an alternate place to move ahead of time, you may not want to start negotiating rent until something else is lined up.
As a rule of thumb, winter is usually a good moment to broach the topic of cheaper rent, as it’s harder to find tenants during that time of year. Summer is peak rental season, so you’ll need to be a little more persuasive if you’re trying to negotiate rent during the peak moving season.
3. Sell yourself as a good tenant
Looking for another lesson on how to negotiate rent? If you’ve never rented in that particular complex a few letters of recommendation from personal references will go a long way toward convincing a manager you’d be a tenant worth having, even at a lower rate.
Think of it as a resume for your living situation. Get a letter from previous landlords or apartment managers that says you make on-time rent payments and cause them no problems. Get letters that speak to your character from a former boss, neighbor, or someone in a non-profit organization or church. Just like in a job interview, these professional references can help you negotiate rent and sell yourself as a good tenant for your potential new landlord.
If you’re trying to renew your existing lease at a better rate, remind the manager that you’ve always paid your rent on time and anything else that’s positive. Have you kindly alerted them to maintenance concerns? Have you helped in an emergency? Have you assisted during holiday parties? These situations can go a long way and help you lower the cost of rent on your upcoming lease.
4. Exchange value for price
What’s a lower rent price worth to you? Would you consider doing something above and beyond paying rent that offers tangible value to your property manager?
Think of jobs or tasks around the property — maintenance, cleaning, administrative, marketing — that would increase the underlying value of the owner or manager’s investment. Helping with some of these activities could cut down on expenses and thus, justify the price reduction you’re looking for.
Another “how to” negotiate your rent tip is to bargain with amenities and other things of value. Are you willing to give up your parking space to reduce rent each month? Or, can you pay six months of rent upfront or in cash? Would you be willing to sign a longer lease at a lower rate?
Think like a manager. Everything has a value and most everything is fair game to negotiate or trade with. Don’t be afraid to ask what your manager needs. If he or she has flexibility in pricing (and they usually do), then you might be able to help each other.
5. Experiment with the lease terms
Offering a different move-out date, extending your lease term or reworking the end of your lease term to fall during high season (spring or summer) are some of the ways you may be able to play with lease dates and terms that might be attractive to a leasing manager.
Get your negotiation in writing
As with many things in life, you can ask for and negotiate anything — including rent. If you’re a good tenant, can be persuasive and ask for what you want and need, you can negotiate the terms of your lease and rent prices and walk away with a lower rental rate.
After you’ve worked out a reduced rate with your landlord, make sure you get the new deal in writing so you have a paper trail and proof of your newly negotiated rate.
FAQs around rent negotiations
Rent negotiations are tricky and require a wealth of knowledge and understanding.
How can I negotiate rent for a rent-controlled apartment?
Negotiating rent for a rent-controlled apartment is different. In these cases, research local rent control laws and regulations to understand your rights and limitations. While you may not have as much room for negotiation on the base rent, you can explore negotiations on other aspects, like utilities or improvements.
How can I negotiate rent if I have a low credit score or a poor rental history?
If you have a low credit score or a poor rental history, you can still negotiate rent. Tips to overcome this include offering to pay a larger security deposit, providing a co-signer or demonstrating your commitment to improving your credit and rental history. This can help build trust with the landlord and potentially secure a lower rate.
What if my landlord refuses to negotiate the rent?
If your landlord is unwilling to negotiate the rent, consider proposing alternative terms, such as a longer lease or prepayment of rent. If negotiations remain unsuccessful, you may need to decide whether you’re willing to accept the current rent or look for another rental property.
Can you negotiate rent? It’s worth a shot!
Negotiating rent is not only possible but also a valuable skill for renters. By following these steps, you can strategically and effectively negotiate your rent with confidence. Understanding the rental market, considering the timing of your negotiation and presenting yourself as a desirable tenant are essential elements in the process. Remember, communication is key in this process, and being prepared, courteous and persistent can lead to a mutually beneficial agreement with your landlord.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.
The Federal Deposit Insurance Corp. (FDIC) looks to have found a way forward for the portfolio of affordable-housing assets it took over from failed lender Signature Bank.
In its announcement that it has begun the process to sell the $33 billion of commercial real estate loans from Signature, FDIC said it will create joint ventures with potential buyers of the approximately $15 billion in loans for multifamily residences that are rent- stabilized or rent-controlled.
The regulator said the move is part of its obligation to ensure that it helps preserve affordable housing “for low- and moderate-income individuals.” The majority of these loans are for properties in New York City.
FDIC said that it will retain “a majority equity interest” in the venture while the winning bidders will be tasked with the “management, servicing and ultimate disposition of the loans.”
“Operating agreement will provide certain requirements that facilitate the financial and physical preservation of these loans and underlying collateral,” it said.
A spokesperson at FDIC told Newsweek that the “joint venture transactions enable the FDIC to retain a majority interest while transferring day-to-day management responsibilities to private sector professionals who also have a financial interest in the assets and an obligation to share in the costs and risks associated with ownership.”
The decision by FDIC to want to preserve affordable housing for low-income residents comes at a time when rent in New York City has skyrocketed. Median rent in September in New York is a little over $3,700, which is 77 percent higher than the national median, according to real estate site Zillow, and has gone up by more than $200 from the same time last year.
There were fears by some New Yorkers that the assets could be sold to new owners that were more interested in squeezing profits out of the properties rather than maintaining their rent-controlled or rent-stabilized status, as reported by The City earlier this year.
In March, the New York Department of Financial Services shut Signature Bank down after its collapse in one of the largest bank failures in U.S. history and appointed FDIC as the receiver of the failed lender’s assets. Flagstar Bank, a subsidiary of New York Community Bank, took over the deposits and some assets of the former Signature Bank in a deal struck in March by the regulator.
The shift could help FDIC find buyers who might have been reluctant due to rent stabilization or rent control, according to The Real Deal, a real estate-focused news outlet.
But some analysts say the properties remain attractive, despite the high interest rates.
“Even in this environment, there are buyers of rent-stabilized buildings and lenders who make loans on them, because if the underlying properties are valued at cap rates near today’s interest rates, they would be very safe investments to own as a loan or as real estate in the case the loans are not performing,” Matt Pestronk, president and co-founder of Post Brothers, a real estate developer based in Philadelphia, Pennsylvania, told Reuters.
FDIC said the marketing for Signature Bank’s portfolio will occur over the next three months and the deals are expected to conclude by year’s end. The New York City-headquartered Newmark & Company Real Estate is advising on the sale.
If you’ve been living in the U.S. these past few years, you know that rental rates have skyrocketed. Because of this, many renters cannot avoid spending more than the recommended 30% of their gross monthly income. This makes it all the more aggravating to find out your monthly rent has been raised by your landlord before your contract is up.
Raising rent can make sense in certain cases such as the market value going up. However, in other circumstances, a rent increase may be unnecessary or downright illegal.
It’s important to be educated on what can and can’t be done when it comes to your lease. Here is what you should know about your tenant rights and what you can do about it.
Can your landlord raise the rent?
The short answer to whether or not your landlord can raise your rent is yes and no. The city you live in, rent control laws and your lease will determine if it is legal or not. These are the circumstances when your landlord can and can not raise the rent.
Month-to-month leases
If you signed a month-to-month lease, landlords are within their rights to raise the rent at the end of each month. Similar to a 12-month lease, a monthly lease is still a binding contract. So your landlord would still be required to give you advance notice (generally about 30 days) and can only raise the rent at the end of the month.
Year-long leases
Typically, rent increases occur when your lease is up. So if you signed a year-long lease and your landlord tried to raise the rent six months in, that is not acceptable. Rent increases are only legal once the 12-month lease has finished.
The terms and conditions of your rent should all be laid out clearly in the rental agreement you sign at the beginning of your tenancy. Unless stated otherwise in the lease agreement, yearly and monthly rent increases are only allowed under the above conditions. That’s why it’s important to thoroughly read through and understand your rental agreement.
Keep in mind that a rent increase can also impact your security deposit. Since the rent is now higher, you may have to up the amount of the deposit as well.
Adequate notice
There are some circumstances under which your landlord legally cannot raise your rent. The first is without providing adequate notice. This is generally is about 30 days ahead of the proposed increase. It’s also illegal for a landlord to increase rent for discriminatory reasons or in retaliation for previous conflicts.
Discrimination
If you believe the rent increase is in response to a past conflict you had with the landlord or because they are discriminating against you based on your race, gender, sexual orientation or other reason, those are grounds to possibly have the increase overturned.
What to do if your landlord raises your rent
Receiving a rent increase is jarring and upsetting for anyone, especially since rent is already inflated. Finding out you may have to pay more or move is bound to trigger some strong emotions.
But you’re not without recourse and options for how to handle the situation. If you receive a rent increase notice and are unsure what to do, there are a few steps you can take.
1. Know your city’s laws
Renter’s rights can vary widely at both city and state levels. What’s legal in one city in your state isn’t always legal for other cities you may live in. This is why it’s crucial that, if you learn of a rent increase, you check your local laws.
This can pertain to whether the timing of the notice is legal, or if the increased amount is legal. Some states or cities don’t have set or maximum amounts for rent increases, leaving it up to the landlord’s discretion. So if there are no laws that set a cap or limit, your landlord can hike up the rent as much as they see fit.
2. Get it in writing
In most states, it’s required that any rent increase notice be served to the tenant in written form. This could be as a letter or email. If your landlord verbally told you they will raise the rent, that is not legal. If your landlord is trying to raise your rent and doesn’t provide written proof, that’s evidence you may use in case the situation goes to court.
3. Double-check your lease
Read through your lease to make sure that the rent increase notice is legal. This includes checking that the notice arrives in an appropriate time frame and adheres to any other relevant clauses.
4. Report any illegal actions to the proper authorities
If you determine that the rent increase is unlawful for whatever reason, you should report your landlord to the respective authorities in your area. This could be a local government agency or department related to housing or a housing and tenants’ rights advocacy group. They can point you in the right direction.
5. Speak with your landlord
Assuming the rent increase is legal, you still may not want to pay it. Maybe you are unable to afford the new proposed amount. Maybe you feel that based on your good rental history in that unit, it’s unnecessary or unjustified. Whatever the reason, you can try to negotiate with your landlord. You can do this in two ways.
The first would be to send them a rent negotiation letter. In the letter, you should describe in clear terms why you can’t or don’t think you should pay the increase.
You can detail your financial situation, or make reference to your rental history. Have you always paid the rent on time and in full? Are you a model tenant? Highlight those reasons the landlord will want to keep you on as a renter.
You can also arrange a meeting or call your landlord to negotiate the rent increase. When doing this, make the same points as you would in a negotiation letter but are able to have a straightforward conversation.
6. Organize with the other tenants
If all other attempts to negotiate with your landlord have failed, you may find strength in numbers. Check with the other tenants in your building to see if they are OK with the rent increase.
Collective action is a powerful tool. If the majority of the building opposes the rent increase and the landlord moves forward, they could be facing multiple people moving out at the same time. This gives them more work to suddenly try to fill the empty units. Having reliable, trustworthy tenants makes their job easier. This incentivizes them to work in good faith with the tenants they have.
7. Pay the increased amount
Unfortunately, if your landlord won’t budge and they are within their rights then you will have to pay the increased rent or find a new apartment to rent.
Getting a rent increase notice isn’t the be-all, end-all
Unless you live in a city with rent control, occasionally dealing with rent increases is, unfortunately, a necessary part of a renter’s life. Sometimes they can also feel very unfair. But by using the above resources, you can fight or even stop a rent increase.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Ashley Singleton is a writer who loves following and writing about current lifestyle, DIY and home improvement trends. You can read some of her other work on the Lady Spike Media website. In her spare time, she performs stand-up comedy in Los Angeles.
For most states, the pipeline for construction of single-family homes specifically designed as rentals is booming. However, not all states are jumping on the trend. Market conditions in 10 states are such that this kind of construction isn’t a priority. In fact, these states are seeing no additional construction of single-family homes for rent, according to reporting at Axios.
On a per-capita basis, Arizona is the state with the most built-for-rent housing in the construction pipeline with 2,011 units planned or under construction per one million inhabitants, according to data from the National Rental Home Council (NRHC). Coming in at a “distant second” is North Carolina with 1,071; while Texas is in third place with 856. The nationwide average sits at 345.
No single family rental construction in 10 states
However, despite data from Zillow that illustrates that to meet the housing supply needs of the nation, the United States needs 4.3 million more homes, there are 10 states that aren’t constructing built-for-rent housing, the reporting explains. Among them are Oregon, Massachusetts and West Virginia, where there is no built-to-rent construction of single-family homes “ongoing or planned at all,” based on NRHC data.
Why are these states lagging, some of the reticence likely has to do with a lack of favorable market conditions for construction, according to David Howard, NRHC’s CEO.
“Portland and, more broadly, the state of Oregon have many of the kind of drivers that housing developers are looking for when they enter a market,” Howard told Axios. But that enthusiasm could be diminished in a state like Oregon due to its limits on annual rent increases.
Banning rent increases in Oregon
Last month, the state banned rent increases higher than 10% in years of high inflation, and the law went into effect on July 6. The bill was drafted in response to complaints from the state’s renters, as some areas saw increases of as much as 14.7% in 2022.
“The debate highlighted the high rate of rental ownership in the state Capitol, where passive income from owning property makes it possible for lawmakers to afford to be in Salem for months each year on their $35,000 legislative salary,” according to reporting at the Oregon Capital Chronicle. “Portland Rep. Thuy Tran, [also a] landlord, was one of only two Democrats who voted against the measure.”
Measures such as rental increase bans put builders on edge, Howard explained to Axios.
“Say what you will about the legitimacy of various rent control and rent cap regimes […] it’s something that causes developers to pause in their consideration of whether they want to enter a market,” he said. “I think developers have gravitated toward other markets where there perhaps is more certainty.”