We’re well into the 2020s now, and many apartment communities are getting with the times by adding eco-friendly amenities to units. This is a clear win/win for everyone involved — the renter, the property manager and Earth as a whole. If only all decisions were so clear-cut!
Green amenities for eco-friendly renters
The list of available eco-friendly amenities is constantly growing and changing. Here are a few of the most common green features that renters can find during their apartment search.
1. Non-smoking buildings
Cigarettes and their smoke are not only bad for people’s lungs — they’re also terrible for the planet, too. Toxic cigarette butts are not only unsightly litter but they also pollute the land, water and air with nasty chemicals. E-cigarette waste is now also a growing concern.
To protect people and the planet, many apartment communities are designating all or some buildings as “non-smoking.”
Featured communities that offer non-smoking buildings:
2. On-site recycling
One would certainly hope that in this day and age on-site recycling is a given, but not all apartment communities offer it.
Definitely check to see if this ultra-important amenity is available. If not, inquire with your landlord about how to get it started!
Featured communities that offer on-site recycling:
3. ENERGY STAR® certified appliances
If an appliance dies nowadays, chances are good that the apartment community will replace it with an ENERGY STAR® certified version. The federal government backs such models because they provide the necessary function (dishwashing, clothes drying, refrigeration, etc.), but in a more energy-efficient manner.
Although these models are more expensive up front, they actually save the landlord money over time because it costs less to power them. In fact, 2019 alone saw ENERGY STAR products save about $39 billion in energy costs.
Featured communities that offer ENERGY STAR® certified appliances:
4. Certified efficient windows
Another in the portfolio of ENERGY STAR products certified efficient windows can save money and lower greenhouse gas emissions. Replacing single-pane windows can save $101 to $583 per year and thousands of pounds worth of carbon dioxide!
Featured communities that offer certified efficient windows:
5. Electric vehicle charging stations
Electric vehicles are finally on the upswing in the U.S. Savvy apartment communities are adding EV charging stations to their list of amenities to attract eco-minded renters. This is a big deal because the majority of charging happens at home, rather than at public charging stations.
So, if a community can’t accommodate a potential renter’s car charging needs, the tenant will keep looking until they find a place that can.
Featured communities that offer EV charging stations:
6. Solar panels
It wasn’t that long ago that solar panels were too expensive for anyone but the very affluent to afford. Now, they’re coming down in price and many apartment communities are taking advantage.
Although installation still isn’t cheap, over time solar installations save a lot of money on utility costs. Then, of course, there are the environmental benefits, like lower levels of greenhouse gas emissions and other harmful pollutants.
Just be aware that this eco-friendly amenity often comes with higher rent prices to cover the installation cost, so you’ll probably pay more for peace of mind.
Featured communities that offer solar panels:
7. LEED certification
More common among brand-new or newly renovated properties, LEED (Leadership in Energy and Environmental Design) certification is a green building rating system used all over the world.
To get LEED certification a property must meet a bunch of standards, designed to improve indoor air quality, reduce pollution, limit exposure to chemicals and lower energy consumption, among others. The typical renter pays up to 20 percent more per month on rent for these green upgrades, but definitely reap the physical benefits, so there’s that.
Featured communities that offer LEED certification:
8. Smart thermostats
Here’s one eco-friendly amenity that isn’t pricey at all to install. Smart thermostats take the guesswork out of heating and air conditioning.
For one, they sense once you’ve left the building and adjust the temperature setting accordingly (no sense paying to overly heat a space no one’s occupying at the moment). You can also easily set a schedule and check on or adjust it remotely.
All of these perks mean that energy is saved (not to mention the dollars saved for whoever pays the bill too).
Featured communities that offer smart thermostats:
9. Upgraded HVAC filtration
HVAC systems have come a long way in recent years. So when the old ones die (or become woefully inadequate) property managers often opt to replace them with upgraded versions. An ENERGY STAR-certified system is ideal because they are 10 to 15 percent more efficient than the unrated versions. Every bit of efficiency saves money and energy because it more seamlessly cools and heats the space.
Featured communities that offer upgraded HVAC filtration:
10. Community gardens
Many renters are no longer stuck only growing whatever fits inside or on their tiny porch. Instead, lots of apartment communities have established community food and flower gardens as a way to encourage community, healthy eating and good old-fashioned outdoor time.
Some even include community compost heaps, where residents can responsibly dispose of compostable waste like eggshells, veggie scraps and coffee grounds!
Featured communities that offer community gardens:
Eco-friendly amenities are here to stay
Every eco-friendly amenity really adds up when it comes to helping the planet. Even if the unit you’re in (or the one you’re looking at) doesn’t sport some of these, broach the subject with the landlord. It can’t hurt to inquire, and maybe some positive changes will result!
A freelance writer based out of the Atlanta area, Alia has penned articles during her decade+ career for such sites as HowStuffWorks, TLC, Animal Planet, Zillow and many more. Her favorite things to write about include fitness, nutrition, travel, healthcare and general lifestyle topics. A graduate of the University of Georgia, Alia’s an avid Dawg, but she also loves reading, sewing, eating all things chocolate and playing sports with her husband, three boys and beloved border collie, Flash.
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.
In our latest real estate tech entrepreneur interview, we’re speaking with Daniel Shaked from Home365.
Without further ado…
Who are you and what do you do?
I am the CEO and Founder of Home365. We are a new breed of property management companies which leverages quite a bit of technology and artificial intelligence to make the entire process of owning real estate much more profitable, predictable and hassle free. First, we conveniently bundle a multitude of services for a one-rate fee, including management fees, repairs, maintenance, tenant placement and rent loss due to vacancies. To generate this fee, we look at the various data points of the home including the age, location, renovations, appliances, etc. But we also use this data and a series of sensors throughout the home to monitor systems so that we can predict any major issues and be proactive with maintenance. This saves landlords up to 50-percent in maintenances costs traditionally paid.
What problem does your product/service solve?
What we are really doing is offering refined communication between all the parties involved and improving customer service. Tenants, landlords and service providers communicate through Home365’s own app, which uses intuitive technology to report maintenance issues schedule repair visits and track the process from beginning to end. Tenants also have the ability to send video of the problem directly to the service provider. After scheduling an appointment, the tenants can track the movement of the maintenance worker through a map feature to save time and frustration. All fees are covered by Home365 without any additional cost to the property owner.
What are you most excited about right now?
I am most excited about our recent launch into the Las Vegas market which has a large number of property owners. We acquired Pangea Realty & Property Management, a Las Vegas company that currently owns over 300 single-family homes in Southern Nevada to begin our service.
What’s next for you?
My next step is to acquire more properties to use our service. My company is actively looking at deals in Florida, Texas and California.
What’s a cause you’re passionate about and why?
I’m really big on working with young entrepreneurs to get their ideas and businesses off the ground. I think it’s important to support the next generation pursuing new ideas. Most new businesses don’t make it, so it’s important for me to help them keep moving forward until they find the one that does. The momentum we have right now to help those ideas move to next steps is incredible.
Thanks to Daniel for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
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.
Rent is a universal expense — almost everyone pays either rent or a mortgage. In fact, rent usually takes up about 30 percent of your salary but in some cases, it is even more. If you’ve found yourself facing hard times financially and are struggling to make ends meet, you may want to create a rent reduction letter to give to your landlord.
It may seem nerve-wracking to ask your landlord to reduce the cost of your rent. After all, you signed a lease and agreed to the price. However, you’ll never know if you don’t ask.
We’ve created a thorough guide that’ll walk you through reasons to ask for a rent reduction, how and when to ask your landlord and what to do if you’re denied. If you’ve found yourself in this situation, we’ve got you covered with detailed information.
7 scenarios to ask for a rent reduction
Everyone’s financial history is different. Some people are struggling to pay rent because of a low-paying job while others have had an unexpected emergency pop up that negatively impacted their budget.
Here are some examples of different reasons you could write a rent reduction letter to your landlord.
1. Financial trouble
If you’ve found yourself in a situation where money is suddenly tight, this could qualify for a rent reduction. Life happens and it’s common for unexpected bills to pop up. Perhaps you were in an accident and now have medical bills to pay for or your car broke down and needs repairs.
Regardless of the circumstance, if lowering your rent would help ease your financial burden, even for a short period, it’s worth asking for. Just remember to clearly explain the situation and let your property manager know that this was out of your control and not a result of poor financial management.
2. Loss of job
When you signed your lease, you may have had a steady job that paid well. Now, you’ve lost your income and can’t make your monthly rent until you secure another job.
If this is your situation, you could write a rent reduction letter and explain the scenario to your landlord because they might work with you until you find new employment.
3. Took a pay cut
While you may still be employed, sometimes, you’ll be faced with a pay cut. If this happens, your income is suddenly less and bills are harder to pay. This scenario may qualify you for a rent reduction.
It is up to the landlord, but if you clearly explain your situation, they may negotiate with you.
4. Neighboring properties have lower rent
Generally, apartment complexes in the same neighborhoods have similar prices for rent. But, if you begin to notice that neighboring properties pay significantly less in rent compared to you, you could bring this up to your property manager in your rent reduction letter.
Landlords want to stay competitive with their pricing and have all of their apartments occupied and if they’re not, you can potentially leverage this for a lower rent.
5. Lacking common amenities
If your apartment complex lacks basic amenities like a laundry facility or covered parking stalls, you could use this to negotiate a reduction in rent.
Often, rent is more expensive when the property includes amenities like a playground, gym, on-site laundry and covered parking. If your apartment complex lacks these things, you could talk to your landlord about adjusting rent to reflect this.
6. Poor property upkeep
Everyone wants to live in a facility that is safe and clean. In fact, landlords are legally obligated to ensure that each apartment is habitable.
If you think your apartment is lacking general safety and sanitary measures, first, talk to your landlord about addressing that and second, use this to negotiate the price of rent.
7. The lease agreement is not being met by property managers
A lease is a legal contract that binds tenants and property managers to certain terms. Tenants agree to pay rent and keep their apartment clean and landlords agree to provide a safe and clean living environment.
If you believe this contract is not being met, you can talk to your landlord and ask for a rent reduction if the lease agreement is not being held up by both parties.
How much to reduce in rent?
So, you’ve decided that you will ask for a rent reduction but need to determine how much is reasonable to reduce. Well, this depends on a few factors like the city, neighborhood, amenities offered and your situation.
You need to assess how much would ease up your financial load while also being reasonable with your request. For example, you probably won’t get your landlord to reduce your rent in half and will likely get shot down immediately if you ask for that.
To determine a fair amount to ask for in your rent reduction letter you need to do your research. You can see what neighboring apartments are renting for; you can ask your neighbors how much they are paying and you can see what the average cost of rent in your city and state are.
If you come prepared with this information, you’ll likely have an easier time negotiating a fair rental reduction rate.
When and how to ask for a rent reduction
Once you’re ready to write a rent reduction letter, it’s all about when you send it and how you ask for what you need. The best time to ask for your rent reduction is right away because you don’t want to get behind on payments and then ask. When you first realize that you need a lesser rent payment, it’s time to start drafting your rent reduction letter.
The next best time to ask for a rent reduction rate is when your lease is up for renewal. It’s easier to draft up an entirely new lease than it is to rewrite an existing lease.
Ways to make a good case in a rent reduction letter
To make a good case for yourself, showcase that you are an outstanding tenant to your landlord. Here are some ways you can vouch for yourself to better your chances of getting a rental reduction.
Steady payment history
Have you always paid your rent on time, or even early? Have you had a steady payment history in the past? If this is the case, your property manager is more likely to sympathize with you and understand that you’ve truly fallen on hard times and could use a little wiggle room on your rate.
Show them your payment history and use this to your advantage.
Some money is better than no money
If you can still pay rent but just a lesser amount, some money is still better than no money. You can talk to your landlord and help them understand that you’ll still be paying rent and that they’ll still get an income, albeit a bit less than before.
Longer lease
Do you plan on staying at your current location long-term? If so, you can compromise and sign a longer lease at a lower rate.
Property managers want to keep their apartments occupied, so if you can sign a longer lease instead of month-to-month, they may reduce your rental rate.
Sample rent reduction letter
You can send the rent reduction letter via email or mail. Check and see how your landlord likes to receive communication and tailor your letter to that.
Follow our template below to create your rent reduction letter. Simply update everything in ( ) and you’ll be good to go.
Download the sample rent reduction letter PDF
Download the sample rent reduction letter Word Doc
(Your Name) (Current Address of Your Apartment with Unit Number) (City, State, Zip Code)
(Date)
(Landlord or Apartment Company’s Name) (Address as Printed on Your Lease) (City, State, Zip Code)
Re: Request to Lower Rent Payment for (Unit)
Hello (Landlord name),
This is (Your name) and I am a tenant in (Building #, Unit #). I’m reaching out to you because I’d like to discuss lowering my monthly rent moving forward. I enjoy living here and would like to continue renting from you, but my financial circumstances have changed and a reduction in rent would be incredibly helpful for me.
I’d like to highlight that I’ve lived here for (insert tenure) and in that time, I’ve always paid my rent on time, kept the apartment in great condition and have been a courteous neighbor and tenant. I believe I’m a great fit for this community and an exemplary tenant.
To make sure my request was reasonable, I’ve done research to see what similar complexes are renting for and what others are paying in rent. This makes me believe that a minor reduction in rent is reasonable and fair with the market.
I’d like to ask for a (insert dollar amount) reduction to my monthly rent, however, I’m open to negotiate and compromise. If you accept this request, I’d be able to continue my lease and call this home.
Can we schedule a time to meet and discuss this in more detail? I’m eager to find a way to make this work for both of us and find a compromise that meets both of our needs. Please let me know when we can chat.
Thank you,
(Signature) (Your Name) (Current Apartment Address and Unit Number) (Phone Number) (Email Address)
What to do if you can’t reduce your rent
Because it’s up to the landlord whether or not to reduce your rental rate, they may say no. If that’s the case, don’t get too stressed because there are still other options available to you.
Look for a new place
If you need to, you can find a new place to rent at a lower cost. You may have to wait until your lease ends or pay to break your lease but it may save you money in the long run to find a less expensive place to rent.
You can compare rental prices in different areas here.
Adjust your budget
It’s smart to reassess your budget to find out where you can save extra money. Maybe it’s something small like cutting back on your daily coffee habit or something more substantial like consolidating credit cards for a lower interest rate.
Either way, taking an honest look at your budget and seeing where you can save can help you make your payments and ease financial stress.
Pay rent bi-weekly instead of monthly
Sometimes, it’s a matter of adjusting your payment due dates that’ll make things a bit easier. For example, instead of paying your rent monthly in a large sum, ask if you can pay every other week so the payment itself is a bit smaller and leaves you with more money to pay your utilities and other bills.
Advocate for yourself
You have to advocate for yourself. No one else knows your struggles and if you don’t ask for what you need, you’ll never get it.
By writing a rent reduction letter to your landlord, you may get what you need which will enable you to get back on your financial feet.
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.
There’s an upside to owning and managing properties.
Okay, so you’re thinking about managing your rental property, but you’re not sure if you should handle everything yourself or hire someone to do it for you. Let’s break it down.
According to a survey by the U.S. Department of Housing and Urban Development, almost half of the 49.5 million rentals in the U.S. are properties with one-to-four units. Most of these are owned by individuals, and only about 22 percent are professionally managed.
So, if you’re a landlord with a smaller property, chances are you’re the one taking care of things. But what does that really mean for you and your tenants? Let’s dive into the nitty-gritty of managing your property effectively.
What’s property management?
Think of property management as the secret sauce for your success as a landlord. It’s about making sure you’re getting the most out of your rental and handling your investment like a pro. Now, it might sound like a never-ending job, but there are four big things you need to focus on:
Finding and screening tenants
This is like picking the right teammates for your rental squad. You want reliable tenants who’ll treat your place well. So, there’s background checks, credit checks, employment verification – the whole shebang.
Keeping tenants happy
Once you’ve got good tenants, you want to keep them, preferably beyond even a yearly lease. Happy tenants mean steady income for you and years without having to worry about turning over the apartment. So, you need to build a good relationship, fix stuff when it breaks and maybe throw in a little incentive to keep them around.
Drawing up a lease agreement
This is like the rulebook for your rental game. The lease agreement is legally binding, so you want it to be solid. Some landlords get lawyers involved, others rely on experienced property managers to get it right.
Handling the money stuff
This is where you get into the financial side of owning and renting property. Budgeting, forecasting and understanding taxes are all part of the deal.
Why do people try property management as a side hustle?
Renting out properties has always been a favorite way to make some extra cash without doing much. As long as your rent is competitive and you’re not spending more than you’re making, it’s a sweet deal. Plus, in a good market, you can even build up some equity.
But here’s the catch – managing a rental property is not exactly a walk in the park. It involves marketing, managing, dealing with repairs and crunching numbers. That’s why a lot of new landlords end up hiring a property management firm.
Is now a good time to be a landlord?
Well, that depends on where you’re at and what you’re striving to get out of the deal. The rental vacancy rates in the U.S. were at 6.6 percent in the third quarter of 2023, a bit higher than the previous year but still below the long-term average. The rent and interest rates vary across the country, so you’ll need to do some homework on your local market.
The upsides of property management
Working with a property management firm can take a load off your shoulders. They handle things like rent collection, maintenance and dealing with tricky tenants. It’s like having a rental superhero on your team.
Potential downsides of property management
Of course, there’s no such thing as a free lunch. Property management firms charge a fee, usually between 8 and 12 percent of your monthly rent. So, if your place rents for $1,500 a month, you’re looking at shelling out around $150 to the management company. Also, some landlords like to be in the driver’s seat and make all the decisions, so giving up control can be a downside.
What about the tenant’s perspective?
If you’re looking to rent, you might be wondering if it matters whether your landlord is a person or a property manager. Well, it depends on what you’re into. Some folks like the perks that come with big managed communities, while others prefer the charm and personal attention you get from a home owned by an individual.
Should you hire a pro or DIY?
Ultimately, it’s your call. Take a look at your cash flow, monthly income and expenses. Do you want a laid-back income stream, or are you itching to get your hands dirty in property management? If you’re eyeing a real estate empire, a property management firm might be in your future.
In the end, whether you’re the landlord or the tenant, it’s all about finding the sweet spot that works for you.
At Rent., our goal is to be the most efficient digital resource to help people find and live in a place they love. We strive to help renters make informed decisions by providing them with valuable information and advice, including money-saving tips, local guides, HD photos and certified ratings and reviews from actual residents.
Los Angeles-based rental management software provider RentSpree successfully passed an audit regarding its data protection strategy, obtaining the System and Organization Controls (SOC) 2 Type II compliance. SOC 2 is regarded as the premier data security standard for Software as a Service (SaaS) providers.
Developed by the American Institute of Certified Public Accountants, the SOC 2 Type II audit examines a company’s controls related to security, availability, processing integrity, confidentiality and privacy. RentSpree’s audit report received a “clean” opinion from national audit firm Sensiba LLP.
“This achievement is huge for us and was a top priority this past year as the integrity of our systems and the policies and practices we have in place to protect sensitive information is integral in today’s marketplace,” said Michael Lucarelli, CEO and co-founder of RentSpree.
In addition to Sensiba LLP, RentSpree also worked with Drata, a leading compliance automation platform, to streamline its compliance efforts and monitor its security controls, the news release said.
RentSpree offers rental software solutions such as tenant screening, online applications, document automation, e-signatures, denial and approval communications as well as property landing pages. In October, RentSpree also added a rent reporting feature.
Security is top of mind for those in housing. Recent cybersecurity incidents in the industry emphasized the exposure of the sector to cyber threats. In the fall of 2023, title insurance companies First American and Fidelity National Financial suffered cyberattacks. So did non-bank mortgage lender and servicer Mr. Cooper, as well as data host for property listing information Rapattoni. According to security company Astra, there are 2,200 cyber attacks per day in the U.S. on average across all industries. The financial impact of those attacks is significant, costing companies an average of $9.44 million.
During the tenant screening process, landlords often need to sift through tons of applications from potential renters. With so much competition, how do you make yours stand out?
One way is by knowing exactly what essential information to fill out so you can complete the application quickly and correctly. You don’t want to leave anything out and risk your application being delayed or rejected. There are only a few pages to give the landlord a complete picture of you and what you bring to the table as a tenant. You need to show them that you’re a responsible and honest tenant who won’t cause property damage or fall behind on rent. Knowing how to fill out an apartment application to rent an apartment lets you prepare ahead of time. The faster you get your completed, well-rounded application in, the faster you may be in your new home.
Everything you need to include on a rental application
All rental applications are going to look slightly different, from the formatting to how the different sections are organized. But all rental applications should cover the following complete information.
1. Personal and contact information
Typically, the first section on a rental application will be for personal and contact information from the prospective tenant. It’s also an easy section to complete before diving into the rest of the application.
There will likely be a section for the day’s date for you to fill in. Then you can move on the rest of the personal information about the applicant: you.
Your full name
Current address
Phone numbers (include both your home and cell phone number)
Email address
Date of birth
Social Security number
Driver’s license number
If you don’t have a driver’s license, any kind of official, government-issued ID will do.
Other occupants
Most applications give you a section to add the name, age, and contact info for the other people you’ll be living with. But each person who is going on the apartment’s lease needs to fill out their own separate application with their own personal information. If you’re signing the lease with roommates or a partner, you’ll be submitting multiple applications.
This also helps the landlord follow proper health and safety laws and regulations in your area. They can’t have five people living in a one-bedroom apartment. It’s unsafe and against the law.
Know your rights
It’s also important to know what sensitive information a potential landlord legally cannot ask you. During the rental application process and listed on the rental application itself, you cannot be asked about:
Race
National origin
Sex or sexual orientation
Religion
Disabilities
2. Apartment information
Some landlords may include sections or lines for information about the specific rental property or unit. This could include the address, unit number, size of apartment or square footage. But it also may cover monthly rent, upfront costs and pet fees (if applicable).
Oftentimes, the landlord can or will fill in this section themselves to avoid mistakes or errors. After all, they’re the landlord and know all the essential information about the unit. If you do have to fill out this section yourself, just be sure to double-check that all the details are correct. You can also ask the landlord to look it over for verification.
This way, both you and the landlord or property manager are on the same page about exactly which rental property or unit you’re interested in leasing.
3. Employment history
One of the most important sections of how to fill out an apartment application focuses on your employment history. After all, your prospective landlord wants to make sure you can pay the rent on time and in full each month.
In this section, add details about your current employer or work situation. Include information like your job title, work address and how long you’ve worked there. You’ll also want to provide contact information for your employer. Landlords and property managers typically contact employers to verify the employment of a potential applicant.
This section also includes one of the most essential pieces of info for landlords: your income. After all, you need to prove that you have a steady stream of income from some source so you can afford rent. Depending on the application, it may ask for your hourly rate, annual salary or monthly income. It may also ask if you’re part time or full time. As proof of income, you’ll need to provide recent pay stubs or bank statements as part of your application. Requesting two to three months of pay stubs or bank statements is the norm.
If you have a big savings account, you can also provide evidence of this. If you’re between jobs, just started somewhere new or are self-employed with a variable monthly income, having a good nest egg assures landlords. You can also provide more employment history by attaching your work resume. This is only a good idea if your previous work history reflects well on you. If you tend to leave jobs quickly or aren’t on good terms with former employers, it can hurt your case.
It’s also OK if you don’t have a previous employer or just started a new job. There are other ways you can prove you’d be a reliable, trustworthy tenant.
Other sources of income
If you have other sources of income apart from a routine job, you can also give that information to the landlord. Other sources of income can include:
Inheritance
Annuity
Severance payment
Unemployment
Disability
Social security
This can help bolster your claim that you make enough money each month to cover rent.
4. Rental history
Landlords want to ensure that a potential tenant is responsible and reliable. As such, nearly every rental application will have a section where you can fill out your residence history.
You usually only need to provide information about your last one or two rentals, including your current one. Add details about the address, the cost of rent and your move-in and move-out dates.
You’ll also need to list the contact information for current and previous landlords. References from past landlords are one of the best ways landlords vet potential tenants. For that reason, it’s always a good idea to stay on good terms with your previous landlord, because they become potential references once you move out. A good recommendation from a property manager or current landlord who liked you can go a long way. It shows you paid rent on time, took good care of the property and are an upstanding tenant.
If you don’t have any rental history, don’t worry. You can ask a family member or someone you trust to act as co-signer. Some applications may have a brief section where you can indicate if you’re having a co-signer or who they are. Otherwise, mention it to the landlord so they can loop the co-signer in and send them any relevant documents.
5. References
Along with the landlord references, some applications let you provide character references to vouch for you as a person. Professional and personal references from colleagues, friends or co-workers help verify that you’re a reliable person and help the landlord get a good sense of your character. Most landlords won’t accept references from family members. This section should ask for reference names and contact information.
Not every landlord requires or adds this. If they don’t, you can sometimes attach signed letters of reference directly to the application. You can also attach a rental cover letter or renter resume to add a little more depth.
6. Extra details
Not all rental applications will need these extra bits of information, as it depends on the rental property and landlord.
Emergency contact
Just in case, some landlords ask for emergency contact information upfront. If you’re approved, they’ll add it to your file later. It also comes in handy if they can’t get in touch with you during the rental application process.
List an emergency contact’s name, phone number and their relationship to you.
Pets
Lots of renters these days have pets, so you’re likely to see at least one reference to whether or not you have pets on a rental application.
If you do, the landlord usually asks for more background information about the animal such as breed and weight. That way, if they don’t allow the particular animal, they’ll let you know sooner and save you and themselves the trouble.
In addition to knowing how to fill out an apartment application, having a pet resume is a good idea for these situations. Similar to a work resume, it covers all the essential information a landlord would need to know about your pet. Add details like the pet’s name, species, breed, weight and gender. Make sure to include updated vaccine information as well.
Vehicles
If the apartment has on-site parking available and the rental unit has a parking space, you can provide your vehicle information upfront. List the make, model, color and year of each car, in addition to the license plate numbers.
Smoking
Many landlords have strict rules regarding smoking on their properties. If they do, they’ll likely have a small section asking if you smoke or not.
7. Credit and background check permission request
As part of how to fill out an apartment application, landlords need to run a background check and credit check on prospective tenants. There should be a specific section for you to sign, giving the landlord permission to run these checks.
Prior to the credit and background check section, you may also be asked if:
You’ve ever been convicted of a crime
Broken a lease
Declared bankruptcy
Been evicted
These are all potential red flags for renting, but don’t always mean an immediate “no.” Having a heads-up they’ll appear on the background check is helpful. It also shows the landlord that you’re honest about your past.
8. Bank information for the application fee
To cover the costs of running background checks and getting a credit report, most landlords and property managers charge application fees. These fees also cover any administrative costs incurred while processing the application. Within this section, list relevant information such as:
Bank name
Bank address and phone
Bank account number
Credit obligations (loans) with a monthly payment
Some applications will have a list of these fees. That way, you know what to expect.
9. Sign on the dotted line
Rounding out how to fill out an apartment application form is the signature section. Both you and the landlord should sign and date it. The signatures validate the document and serve as proof of payment.
This section wraps up the application. Congratulations, you’re done and have officially applied to a new apartment! Now comes the waiting to see if you beat out the other applicants and are the right tenant the landlord is looking for.
Completing the rental application process
After you’ve filled out rental applications with all the requested information, it’s time for you to sit back and wait to hear if your application has been accepted. During this time, the landlord does their screening reports. The tenant screening can take anywhere from two to three days. Sometimes it takes longer if it’s taking the landlord a while to verify some of your information.
Being accepted to your new apartment
Once you hear the good news that you’ve been accepted, you have a few final steps to follow before hiring movers.
Pay the security deposit and the first month of rent payments
As you finalize the rental process, you’ll need to pay for the security deposit, first month’s rent and any move-in fees.
Generally, writing personal checks is the easiest way to handle this transfer. But increasingly, modern-day renters prefer the ease and convenience of online portals. That way, they can pay rent, review the lease agreement, request maintenance repairs and more in one place.
Sign the lease
Once you’ve reviewed the lease and everything is in order, officially sign the lease to make the apartment yours (temporarily).
A rental application form template
To give you an example of what some apartment applications may look like, check out our sample template. You can also download this PDF or Word document template if you want to practice or get all the information in one place.
Know what to expect when filling out a rental application
Renting a new apartment can be a hassle. But by knowing how to fill out an apartment application, you can prepare in advance to help the process go smoothly and efficiently.
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.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
The lowest possible credit score is 300 for FICO® and VantageScore®. Your credit score doesn’t start at 300, but it can drop due to negative marks on your credit report.
The average credit score in the United States was 716 as of 2022, according to Experian®, and this is a credit score that many people would be happy to have. Using the FICO® score range, 714 falls within the “good” range, but what is the lowest credit score?
There’s a common misconception that the credit score you start with is zero, but that’s not the case. Today, you will learn what the lowest credit score is and the factors and situations that affect your score. Most importantly, we’ll give you some tips to potentially improve your credit, which could save you money and give you more access to lines of credit and loans.
What’s the lowest credit score?
A 300 credit score is the lowest credit score you can have, but this isn’t necessarily the score that you start with. You don’t get a credit score until you have a bill reported to the major credit bureaus. If you’re making your payments on time, you may have a credit score that starts in the 600s. Typically, if you have the lowest credit score of 300, there are negative marks on your credit report that are lowering your score.
Your credit score may differ depending on which scoring model you’re looking at. While the most popular scoring model is FICO, there is also VantageScore®. Both scoring models have a total scale of 300 to 850, so the lowest possible credit score is 300 for both models.
Using the table below, you’ll notice that the ranges are slightly different, but they use a scale of 300 to 840.
FICO
VantageScore
300 – 579 (Poor)
300 – 499 (Very poor)
580 – 669 (Fair)
500 – 600 (Poor)
670 – 739 (Good)
601 – 660 (Fair)
740 – 799 (Very good)
661 – 780 (Good)
800 – 850 (Exceptional)
781 – 850 (Excellent)
5 reasons people have low credit scores
As mentioned, it’s a misconception that your credit score starts at zero. In reality, some derogatory marks can lower your credit score to 300. Your credit score comprises different factors like your payment history, debt, credit age, new credit inquiries and mix of credit types. In many cases where a person has a low credit score, they’re taking actions that negatively affect the five main factors that determine a credit score.
Your credit score is a simplified way for lenders to assess risk. Negative marks on your credit may be a red flag to lenders that you are not capable of paying back a loan. Some of the most common reasons people have low credit scores include:
Poor payment history: Your payment history makes up 35 percent of your credit score, so missing payments and late payments can lower your score significantly.
Collection accounts: When you stop making payments on an account, the lender can sell your debt to a collection agency. This can negatively affect your score for up to seven years.
Bankruptcies and foreclosures: Depending on which type of bankruptcy you file, it can hurt your credit for the next seven to 10 years. Foreclosures stay on your credit report for seven years, according to the Consumer Financial Protection Bureau.
Too many hard inquiries: Each time you apply for a credit card or other services that run a hard inquiry on your credit report, it can hurt your credit.
Errors on your credit report: Sometimes, lenders or other businesses that report to the credit bureaus make mistakes. For example, they may say that you missed a payment. If this happens, you can dispute the errors and potentially help your credit.
Keep in mind that some of the above will hurt your credit more than others.
6 tips to improve your low credit
Achieving the max credit score of 850 is difficult and takes time, but it’s an attainable goal for everyone to improve their low credit. You can improve your low credit with some simple steps and good habits. Even if you have the lowest credit score of 300, over time, you can raise your score to good or even excellent.
Pay off collection accounts: One of the first things you can do to work on your score is to pay off your collection accounts. These hurt your credit quite a bit, so paying them off helps. When you do this, be sure to send a pay-for-delete letter to potentially have the negative mark removed from your report.
Address errors on your report: If there is an error on your credit report, disputing the error may get it removed from your report and improve your score.
Set up automatic payments: Making your payments on time should help improve your credit. Even if you pay just the minimum on your credit cards, on-time payments are beneficial. If you have the funds, you can make additional payments to pay down your debt faster as well.
Keep your credit utilization low: Your credit utilization is the amount that you owe compared to your total credit limit. Ideally, you want this below 30 percent. For example, if you have a $1,000 credit limit, you wouldn’t want to owe more than $300.
Monitor your credit: A great way to work on your score is to check your credit regularly. This can alert you to errors and allow you to adjust your behaviors if you see your credit dip. This is also a great way to stay motivated as you see your credit begin to improve.
Apply for more lines of credit: Yes, applying for too many lines of credit can hurt your score, but you can apply strategically. Having more lines of credit increases your max credit limit and can lower your credit utilization. This also helps with improving your credit age and payment history if you make your payments on time.
Don’t let errors harm your credit
Errors on your credit report can be frustrating and difficult to navigate when you’re dealing with the major credit bureaus. While you can do it on your own, help is available. If you have a low credit score due to errors on your credit report, you don’t have to go through the credit repair process alone. Lexington Law Firm has helped thousands of people repair their credit and has sent out over 221 million credit challenges since 2004. We have a team of credit professionals who are here to help you with your credit by challenging the credit bureaus on your behalf while also providing other services like credit monitoring. To get started, sign up today.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Nature Lewis
Associate Attorney
Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.
Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!
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?