In the hierarchy of commercial real estate, office space has long been king.
Developers and landlords lived by the conventional wisdom that there was no better use for your square footage than business offices because they commanded higher rents than industrial spaces.
Simple math, the thinking went.
Well, not so simple anymore. At least in Santa Ana, where a perfectly good office complex is being demolished in a dramatic demonstration of how weak the office rental market has become and how deep the demand for Amazon-style distribution centers runs in Southern California.
The owners of the shiny glass building on Harbor Boulevard close to John Wayne Airport made the counterintuitive calculation that they will be better off owning warehouses than trying to wrangle tenants willing to pony up for conference rooms and corner offices.
“We had to make a strategic shift,” said Dan Broder, who is in charge of the redevelopment by Kearny Real Estate Co., owner of the property formerly known as Elevate @Harbor.
Lagging post-pandemic occupancy rates prompted owners of the office complex formerly known as Elevate @Harbor in Santa Ana to tear it down and build a warehouse.
(Lawrence M. Pierce)
The shift was prompted in large part by the COVID-19 pandemic, which contributed nationwide to shrinking office populations and rising demand for home delivery of all manner of goods. Four years on, overall demand for offices remains well below pre-pandemic levels, raising questions about how many buildings built for white-collar labor still have a viable economic future.
“There are a lot of office owners looking at their properties and wondering if those properties still make sense as offices,” said Michael Soto, Southern California research director for real estate brokerage Savills.
Some have decided they don’t, and the result has been a shrinking inventory of offices over the last year in several U.S. markets, including Orange County, Savills said in a recent report.
Although those in urban centers making the decision to get out of the office game increasingly have looked to convert unloved offices to apartments, in some areas warehouses are hard to come by and, consequently, bring a premium, Soto said.
Orange County is prime territory for such switches, he said, because although it is still suburban in nature, it is densely developed with few empty sites available to build distribution centers.
“There’s real pressure to redevelop older office buildings,” Soto said.
The incentive to redevelop Kearny’s property was enhanced by its location in an industrial district, which spared the company from having to go through the time-consuming and challenging process of getting it rezoned for industrial use.
Demolition is underway of an office complex on Harbor Boulevard in Santa Ana that will be replaced by a distribution center.
(Dania Maxwell/Los Angeles Times)
It was a different world for office landlords in 2018, when Kearny bought the office campus for nearly $35 million. The landlord took over a property that was almost fully leased, Broder said. And even though a large tenant was set to move out, Kearny was unconcerned because there was every reason to expect the vacancy would be an opportunity to sign new tenants at higher rents.
Kearny announced that it would spend about $15 million to upgrade the property into a campus-like setting with landscaped grounds, a fitness center and 24-hour access meant to appeal to tenants in creative fields such as technology. Marketing materials boasted that South Coast Plaza shopping center was nearby.
Then came the pandemic, and by early 2022, with occupancy rates hovering at about 60% and the office rental market losing ground, Kearny started to discuss converting the property to another use, Broder said. He declined to disclose further financial aspects of the project.
Kearny negotiated lease terminations with its tenants and set about to knock down the building that dates to 1982 and replace it with Harbor Logistics Center, a far less sleek 163,000-square-foot warehouse and distribution complex designed by SKH Architect set to be complete by the end of the year.
It’s intended to be a “last-mile” facility, Broder said, for goods arriving from elsewhere to be distributed to the surrounding community.
Last-mile facilities have “dramatically” increased in value in recent years and provide “solid rent growth” for their owners, the commercial real estate trade group NAIOP said, as e-commerce businesses such as Amazon compete to deliver within one day of a customer order or even on the same day it is placed.
Frequently ordered goods can be delivered more quickly from a compact nearby warehouse than from a farther-away sprawling fulfillment center such as those found in the Inland Empire.
Meanwhile, office rentals and on-site attendance by tenants have continued to lag in Southern California in 2023 as companies have tried to balance hybrid work policies with their desire for more employee engagement, real estate services company CBRE said in a recent report.
The value of office buildings has been falling nationwide, with average property values down by at least 25% from a year earlier, according to a February report by real estate data provider CommercialEdge.
Rendering of the less sleek 163,000-square-foot warehouse and distribution complex that will replace the office complex.
(SKH Architect)
“The downward trend in office valuation is more pronounced in older and less ideally located buildings,” the report said, perhaps such as the aging campus Kearny is knocking down.
“This is not a one-off,” Soto said of the landlord’s switch from office to industrial use of its property. “Especially in dense suburban markets like Orange County where land is expensive, we are going to see more of this.”
All dogs may go to heaven, but California landlords aren’t as accommodating.
Pet owners can have a tougher time finding apartments because of the surfeit of landlords who don’t allow dogs, cats or other animals in their buildings. A new bill, however, seeks to open more apartments to renters with pets.
The legislation, in fact, would allow landlords to ask about pet ownership only after a tenant’s application has been approved, says Assemblymember Matt Haney (D-San Francisco), author of the bill.
Haney’s proposal would end blanket bans on specific pets, he said, adding that the measure would help ease California’s housing crisis.
Haney introduced Assembly Bill 2216 earlier this month, which he said in a news release requires landlords to “have a reasonable reason[s] for not allowing a pet in a rental unit.”
“I’ve heard from many constituents about the incredible hurdles and challenges they faced in finding homes simply because they own pets,” Haney told The Times on Wednesday. “They’ve been repeatedly denied because they have a dog — even if their dog is an emotional support animal — and they need accommodations.”
Haney said he found inspiration from a British bill introduced in Parliament in May that makes pet ownership “an implied term of an assured tenancy,” unless “the landlord reasonably refuses.”
Haney said that landlords’ restrictions on pets are crippling for the majority of California renters.
He noted that nearly 70% of the state’s 17 million renting families are pet owners and, of those, nearly 3 million live in Los Angeles County.
Statistics on pet ownership vary.
The American Veterinary Medical Assn. said that, in 2020, 45% of all U.S. households owned dogs and 26% owned cats. Among those, 39% of all renters favored canines and 29% preferred felines.
What is indisputable, Haney said, is the low number of rentals in California that say they are “pet friendly.” His staff identified daily listings over the course of a week on real estate website Zillow that showed 21% of available rentals in San Francisco allowed pets, and 26% in Los Angeles.
“California pet owners are over two-thirds of renters, and they’re excluded from units,” Haney said. “I’m a huge supporter of building access to housing, and this is a housing issue.”
Andrea Amavisca, a senior legislative advocate at the California Immigration Policy Center, said she and her partner spent more than a month trying to find a two-bedroom rental unit in Sacramento that permitted their small mixed-breed dog.
“Landlords that initially liked our application would suddenly stop answering our calls once they found out we had a dog,” Amavisca said in a statement. “Or others would require a pet deposit close to $1,000 that would put the unit totally out of our budget.”
Amavisca said it was unfair that nearly every landlord “had a different pet policy with fees that varied based on discretion,” meaning they could charge what they pleased. Some charged only $20 a month, while others asked for $100 and some wanted four-figure cleaning deposits.
Haney’s bill does not address fees, and the legislation wouldn’t bar landlords from excluding certain types of pets.
“We’re not saying every landlord should have to accept every animal,” Haney said.
Haney’s bill defines “a common household pet” as “a domesticated animal, including a dog or cat, that is commonly kept in the home for pleasure rather than for commercial purposes.”
When asked if boa constrictors, lizards, fish or other legally acquired pets met the definition, Haney said the bill was centered on “companion animals” such as dogs or cats.
Calls and emails to the California Apartment Assn. and the Apartment Assn. of California Southern Cities seeking comment on this bill were not returned.
California Oaks Property Management, which manages residential and commercial properties in Ventura County, listed a series of cons regarding pet ownership in a 2023 post to landlords that included property damage, noise complaints and liability issues from possible animal attacks.
California Oaks recommended that landlords charge an added deposit of $250 to $500 depending on breed.
Haney said he expected to receive some pushback from landlords.
“I understand some will be concerned about the potential of taking on renters with pets that do damage in ways they want to avoid,” he said. “I’m open to dialogue.”
The bill is in its infancy and has yet to be referred to an Assembly committee, according to state legislative records, although it may come up for a hearing March 9.
Renting in Los Angeles is about to become more difficult for many people.
The last of Los Angeles’ pandemic-era renter protections expired Feb. 1. For the first time since April 2020, owners of rent-stabilized apartments — 70% of rental units in the city — are allowed to increase rents. And the last chunk of any unpaid back rent is due.
Don’t expect a soft landing. Depending on how the city responds, it could find itself escalating a lose-lose conflict with local landlords, and the pain would be widely felt: More than half of Angelenos live in rental units.
Already the city is bracing for a spike in evictions and homelessness. An estimated 90,000 households have outstanding rent debt from the period when pandemic protections were in place, and roughly 60% may be unable to pay it.
The city’s fledgling renter assistance program has distributed only a fraction of its $30-million budget; it has 30,000 applicants requesting a total $473 million to cover back rent. A small minority of applicants have been approved but have not yet received money; they have been given a 120-day grace period to avoid eviction. But most applicants still have no idea whether they’ll be approved.
The dominoes started falling last year. Eviction filings doubled from 5,000 in February to 10,000 in April and May after tenants were once again required to pay full monthly rent (separate from unpaid back rent) to avoid eviction. Ever since, evictions have remained 20% to 25% higher than the old baseline.
After the uncertainty of recent years, many landlords are likely to be looking for more revenue and stability. The pandemic was a scarring experience for smaller landlords, many of whom found themselves squeezed as their nonpaying tenants were protected by the city and as rents remained frozen amid historic inflation. Of course, landlords are not entitled to perpetual positive returns. Housing, like any asset, has downside risk. Some landlords — especially those who aggressively scooped up new rental units anticipating a surefire payday — lost that bet during the pandemic.
At the same time, landlords are within their rights to evict tenants who don’t pay. They would also be justified in more carefully vetting potential tenants within the bounds of the Fair Housing Act. Rather than rent units quickly, they may let units sit empty as they wait to find more financially established tenants. This could make it even harder to secure affordable housing in L.A. — especially for those with unsteady incomes (gig workers, contractors, artists) as well as those with potential red flags that background checks will inevitably uncover (such as justice-involved individuals and renters with poor credit histories or past evictions).
The city has launched a tenants’ rights awareness campaign, which could deter some overzealous landlords. The city also aims to aggressively expand the availability of legal counsel for those facing eviction.
Legal representation is a core part of the judicial process — and it’s crucial that tenants be protected from unlawful evictions. However, paying a fleet of public defenders to contest and delay every attempt at eviction might add fuel to the fire while draining the resources of the city and landlords alike.
While universal right-to-counsel programs boast high success rates of keeping people housed, it’s unclear what percentage of these successes involve averting an illegal eviction versus a landlord giving up and eating the cost of lost rent. Ninety-six percent of evictions in L.A. in 2023 came from nonpayment of rent, which should mostly be cut-and-dried cases. There are also other, less costly ways to prevent illegal eviction filings from reaching court. In some cities, tenants with complaints about living conditions can protect themselves from landlord retaliation by legally withholding rent and depositing it in a third-party escrow account.
It’s expected that providing counsel will cost the city $68 million each year — and recall that the city dredged up only $30 million for its rental assistance program. These resources could be focused on rehousing displaced families as quickly as possible. Instead the city is pursuing a policy that further antagonizes landlords and sends tenants the message that they might be able to get away with not paying rent if they fight hard enough.
Los Angeles doesn’t have to go straight to the most costly and adversarial policy to reduce evictions and prevent homelessness. In Philadelphia, lawmakers made permanent an eviction diversion program at a cost of $15 million. Landlords seeking an eviction are required to participate in a 30-day mediation period with a single goal: settling disagreements out of court and without an eviction. Under this program, more than 70% of disputes have successfully come to an agreement outside of court. Hawaii did similarly, with 87% of cases resulting in settlement.
Los Angeles can ill afford a drawn-out power struggle with landlords. That risks creating a “survival of the fittest” landscape where only property owners able to weather and adapt to renter protections stay in the market. Corporations already own more than 40% of the city’s rental units, a figure that could grow if smaller landlords make good on their threats to exit the market, either selling out to corporate owners or taking units off the market. That’s potentially a huge problem for this rental market, which is already among the worst in the nation when it comes to housing production.
On a more promising note, the economy has been roaring with job creation and higher wages for those at the lower end of the income distribution. Many have been back at work after a tumultuous year of strikes. That bodes well for tenants facing their first rent hikes in four years.
But the fact remains that Los Angeles is one of the least affordable places to live in the country. That’s the root cause of the impending eviction crisis and why renters needed so much protection in the first place. If the city prefers to keep strengthening renter protections while simultaneously blocking developers from constructing affordable housing, brace for a new status quo: a stricter, even pricier rental market under the growing watch of aggravated landlords and faceless corporations.
George Zuo is an associate economist at Rand and a professor of policy analysis at the Pardee Rand Graduate School.
California Atty. Gen. Rob Bonta on Wednesday announced new consumer tools for tenants and landlords to understand how much rent can rise each year under a state rent cap law.
The law, which took effect in 2020, restricts rent increases in buildings more than 15 years old. Under the rules, rent can rise no more than 5% plus local inflation, with an ultimate cap of 10%.
However, until now the state did not provide an online resource that said exactly what the limits were for local areas. As a result, people had to find that information elsewhere or calculate local limits themselves using government inflation figures.
As of Wednesday, landlords and tenants can go to a state website to learn more about county rent limits, as well as eviction protections provided by the rent cap law.
Rent limits for individual counties can be found by scrolling down to the section labeled “Know Your Rights as a California Tenant” and clicking on your preferred language.
It’s unclear whether the state will publish the county limits each year when they change based on inflation data. Bonta’s office did not respond to a request for comment.
“Information on tenant rights should be accessible, easy to understand, and available to all Californians, and today’s consumer alerts aim to do just that,” Bonta said in a statement.
Under the state law, landlords of buildings older than 15 years in L.A. County can raise their rent no more than 8.8% through July 31, after which a new limit will be set based on inflation.
The state law does not override stricter local rent control laws, such as in the city of Los Angeles. There, if a property falls under the city’s rent stabilization ordinance, rent increases are currently capped at 4%, or 6% if the landlord pays for gas and other utilities.
Buildings that fall under the city’s rent stabilization ordinance are generally properties built on or before Oct. 1, 1978.
Times staff writer Liam Dillon contributed to this report.
As soon as the floodwaters subside in Southern California, many tenants will start the daunting task of assessing what’s been damaged or lost in their rental homes or apartments.
As of late Monday, authorities just in Los Angeles County responded to more than 300 mudslides, with 35 homes or buildings damaged by debris flows, including five that were deemed unsafe to enter.
If you were given evacuation orders, do not return to your home until the order has been lifted by the local authorities or the city.
Once you’re able to safely return to your rental and assess the damage, there are two things you should know.
First, damage to the rental property is not your responsibility, it’s the landlord’s. Getting your landlord to fix the damage, though, can be a challenge.
“Unfortunately, too much of this is a burden of the tenant to hold the landlord accountable,” said Larry Gross, executive director of the Coalition for Economic Survival.
Second, although a renters insurance policy can help under certain circumstances, it will not cover flood damage to your personal property.
Renters insurance reimburses you for damage to your belongings, including losses caused by some — but not all — natural disasters. The natural disasters that are not covered by rental insurance include floods, mudflows, sinkholes and earthquakes.
Janet Ruiz, communications director for the Insurance Information Institute, said flood damage is defined as losses caused by water that rises from the ground up. However, if water comes into your home from above — for example, when wind damages the roof or a window and rain cascades in — there is a possibility of coverage.
A water pipe that bursts and floods your dwelling is the other type of water damage that is covered by a renter’s policy, Ruiz said.
If your furniture, clothes, and computer are floating in a pool of floodwater in your living room, chances are good that you’ll have to pay out of pocket to replace them.
Your renters policy may still come in handy if you’re forced to move by the storms. Depending on the extent of the damage, a dwelling can be deemed uninhabitable. Your insurance might be able to cover the costs associated with temporary relocation; contact your insurance provider to find out.
Ruiz said most policies will pay for your additional living expenses when you are displaced from your home by a covered loss (such as damage caused by the wind) and need temporary shelter. Keep all your receipts to document your expenditures.
How to get your landlord to make repairs
Landlords have the responsibility to meet the habitability requirement for rental properties, meaning every rental unit must be maintained in a safe living condition. Part of the requirement is to provide “effective waterproofing and weather protection to the roof and exterior walls, including unbroken windows and doors.”
When a storm has damaged a rental — for example, high winds knock down a tree that lands and caves in a roof or rain has caused a roof leak — the landlord must fix it. State law also requires landlords to make sure their properties are free of dampness and visible mold.
Because of the legal requirements, it may be easy to get your landlord to fix flood damage right away. But most Californians don’t carry flood insurance, so the costs faced by your landlord could deter a speedy response.
Also, when a storm of this magnitude barrels through the state, contractors are usually overwhelmed with requests for repairs. A landlord who is trying in good faith to fix a rental might be stuck waiting until they can get a professional to do the work.
“Unfortunately,” Gross said, “there are too many [situations] where it’s not [repaired quickly] and of course it also depends on the severity of the situation.”
If a landlord doesn’t repair the damage in a reasonable time frame, a renter in the city of Los Angeles can file a complaint with the city’s housing department. This will prompt a visit by a code enforcement officer.
Landlords are also responsible when damage to the rental causes harm to the renter’s personal property. If your landlord won’t comply with your request for repairs, replacement or reimbursement, that can be a case for small claims court as well.
Gross doesn’t advise withholding your rent to try to get the landlord to fix damage to your rental, although you have that option. Doing so, Gross said, could lead the landlord to seek to evict you.
The Coalition for Economic Survival is one of several local organizations that can help renters understand their rights and advise them what can be done if a prickly landlord isn’t helpful. Here’s a list of some of the others.
Tenants Together is a statewide coalition of local tenant organizations, that offers resources and a directory to find an organization near you.
Basta, which has offices in Los Angeles and Long Beach, helps residents with habitability problems, among other services.
The Housing Rights Center serves Los Angeles County and has a housing rights hotline — 800-477-5977 — available from 8:30 a.m. to 5 p.m.
Flood damage to cars, including flooding from a storm surge, is covered if you have “comprehensive coverage,” also known as “other than collision” coverage, as part of your auto insurance. Comprehensive coverage is optional with a standard auto policy.
Ruiz said most people who took out a car loan to buy their vehicle will have comprehensive coverage because loan companies require it.
Some people with older cars do not elect to have the coverage, however. That’s because, “at the end of the day, you only get the value of the vehicle,” she said.
What else can renters with flood damage do?
You might not be able to get reimbursed for your lost items at the moment, but you can deduct the amount you lost on your state and federal tax returns.
To help in the future, renters can apply for flood insurance to protect their personal belongings through FEMA’s National Flood Insurance program. For renters, the program covers up to $100,000 in damage to the contents of a unit.
The National Flood Insurance Program is available to anyone living in one of the 24,000 participating U.S. communities or in a flood-prone area. You can see whether your community is part of the program by checking the “community status report” on the program website.
If your community is in the program, you can obtain a flood policy from a participating insurer. The National Flood Insurance program offers a list on its website.
The policy won’t go into effect, however, until 30 days after it’s purchased.
You can also reach out to private insurers to see if they offer their own version of flood insurance. But there aren’t many that do, Ruiz said, so your best bet is to stick with the National Flood Insurance Program.
Staff writer Grace Toohey contributed to this report.
Most renter protection programs launched during the pandemic in Los Angeles have expired, and tenants who couldn’t pay rent due to economic hardships brought on by the COVID-19 outbreak must pay rent again starting Thursday.
That includes back rent owed from Oct. 1, 2021, to Jan. 31, 2023. Tenant advocates say it is preposterous to expect renters to pay the full amount from that period. The end of such renter protection programs are likely to result in many struggling renters becoming homeless or leaving the city and state altogether, said Larry Gross, executive director with the tenants advocacy group Coalition for Economic Survival.
“For those who are struggling to make ends meet, this is going to place a tremendous increased burden,” Gross said. “These tenants are essentially on the track to economic catastrophe, and there’s not much being done for them.”
Rent increases can resume
Evictions for nonpayment can resume starting Thursday, according to the Los Angeles Housing Department. Anyone who receives an eviction notice from their landlord — referred to in the courts as an unlawful detainer — should file a response to the courts within five days or risk losing their case by default. The city offers assistance for tenants facing an eviction notice at stayhousedla.org.
Bianca Lopez, an outreach worker with We Are Los Angeles, signs up a tenant for an information seminar on renters’ rights on Jan. 18, 2024.
(Gary Coronado/Los Angeles Times)
Landlords can also increase rent over the next four months by as much as 6% annually if they pay for gas and electric in the tenant’s rental unit. This applies to rental units built before Oct. 1, 1978, and covered by the city’s Rental Stabilization Ordinance. These residents cannot be evicted without just cause, but tenants in units not protected by the RSO could see higher rent increases.
“The key thing for every tenant to know is their rights, and they need to not just react to whatever notice they get for from their landlord,” Gross said about rent increases and eviction notices.
Tenants should consider whether they face a legal or illegal eviction effort by their landlord. Renters can turn to legal aid clinics, such as the weekly Zoom meeting hosted by Coalition for Economic Survival, to determine what their options are and what resources they can use.
Landlords also cannot evict a tenant if they owe rent that is less than a certain threshold called the fair market rent of the unit. For example in 2024, the rent of a one-bedroom apartment is $2,006, and if a tenant owes less in rent, then they cannot be served notice, according to the city’s Housing Department.
The pet stays in the picture
The city enacted a tenant law during the pandemic that would not penalize renters who took in a pet, even if the pet was not allowed under their lease agreement.
The rule remains in effect for as long as the pet is alive but does not apply to pets who moved into the rental after Jan. 31, 2023, according to the ordinance. It was meant to deter people being forced to choose between keeping their pet or keeping their housing.
Councilmember Eunisses Hernandez said the new law is designed to address the wide-ranging effects that the pandemic had on some people’s lives.
“Many people lost their loved ones and were dealing with isolation from quarantine, which led many to get new additions to their families,” Hernandez said. “These pets have helped people get through difficult times, and tenants should not be evicted from their homes because of the pets.”
Rent relief from the city
Mayor Karen Bass’ office encourages renters to know their rights and suggests tenants who face eviction contact the Housing Department hotline at (866) 557-7368. Tenant advocates warn renters to seek advice if they receive a notice to vacate from their landlord, rather than self-evict.
“In order to confront this crisis, we must do all that we can to prevent people from falling into homelessness in the first place,” Bass said in a statement. “Together with locked arms, we will continue our work to provide resources for the people of Los Angeles.”
The city of Los Angeles operates a rental protection program, known as United to House L.A. Emergency Renters Assistance Program, but it has had problems. The program set aside $30 million for rental relief but accepted applications only for a few weeks in September and October. So far, the program has approved about 3,200 tenants to secure rental relief of up to six months of rent, but most have yet to get their payments. About a quarter of the $30 million in funding has been dispersed, and an additional 25,000 tenants who applied for the program are still waiting for an answer.
On Jan. 26, the City Council voted to protect tenants from eviction if they were approved to receive funding through the program but have not yet received any money. That protection could extend to more renters who get approval in the meantime, which should stave off an eviction notice from their landlord.
“Tenants who have already been approved for emergency rental assistance should not be evicted while they’re waiting for their checks,” Councilman Paul Krekorian said at the council meeting. “Their landlords are going to get paid, so they shouldn’t be putting tenants out just because the city took a little longer to get them the money.”
But there is uncertainty surrounding the funding and who could qualify.
“Unfortunately, many tenants in the queue haven’t been notified whether or not they’re even eligible,” Gross said. “So they’ve been holding on and waiting. Some of them waiting for letters and approval that will never come.”
“Households who reported being behind on rent were more likely to have children, to have a disability, to identify as Black or Latinx, and to have larger household sizes compared to other renter households,” the study authors wrote.
The survey said the number of tenants behind on their rent is greater than what is projected in publicly available data from local government agencies.
According to the survey, those who are newly vulnerable to eviction in Los Angeles include about 60% — or 90,000 households — who recently fell behind on rent and could be evicted for nonpayment. The remainder fell behind on their rent payments before Oct. 1, 2021, or fell behind the last several months. The most vulnerable group in danger of eviction for nonpayment are tenants who hold graduate degrees and are less likely to be in the labor force, compared with others with outstanding debt, according to the study authors.
Among Los Angeles landlords with outstanding debt due to tenants behind on their rent, about 70% reported problems paying for repairs and maintenance and about half said they are having trouble paying property taxes and other payments. Out of the landlords surveyed, fewer than half said they would move forward with filing evictions after August 2023. But landlord companies that own properties with 50 or more units said they were more likely to file for eviction.
“Our surveys show that 71% of large landlords intend to evict, compared to just 39% of small landlords (1-4 units) and 40% of medium size landlords (5-50 units),” the study authors wrote.
A new report from online rental platform Zumper found that in January, the going rate for a one-bedroom apartment in the US was $1,496, and $1,847 for a two-bedroom setup. Those two figures changed little from last month.
Rent is slightly below the record levels set in September but remains higher than last January. Median year-over-year rent growth rates this month were 0.3% for one-bedroom apartments and 1.4% for apartments with two bedrooms, according to Zumper. One-bedroom rent rose by less than 1% for the fifth-straight month after rising for 12 consecutive months starting in October 2021.
Apartment prices have been driven down by surging supply, Zumper noted. New units are going up rapidly across regions following years in which demand for rental units far outpaced supply.
“2023 was a record year for new supply across the country, and the multifamily industry will add even more inventory in 2024,” Zumper’s researchers wrote in their January rent report. “This jump in supply is good news for renters looking for a deal.”
A more competitive rental market isn’t just driving down prices. Many renters are now enjoying perks that would’ve been unheard of during the pandemic, including waived security deposits and a free month of rent, Zumper found. That trend can continue as interest rates slide, which will likely bring homebuyers back from the sidelines.
“Renters have more leverage right now than anytime in recent memory,” said Anthemos Georgiades, the CEO of Zumper, in a statement for the report. “Now is the time to renegotiate existing leases or score a deal on a new apartment.”
27 cities where apartments are getting much more affordable
Exactly half of the top 100 rental markets in the US saw median apartment prices fall from 2023, according to Zumper. However, those declines varied widely by region and were more significant in the Sun Belt than in the Midwest.
Below are 27 metropolitan areas where the going rental rate for a one-bedroom apartment is at least 5% lower than it was last January, according to Zumper. Along with each city are its year-over-year and month-over-month rent changes, average rent price, and national rent ranking among the largest 100 US real estate markets.
1. Scottsdale, Arizona
Scottsdale, Arizona. Tim Roberts Photography/Shutterstock via BI
Year-over-year rent change: -17.7%
Month-over-month rent change: -3.5%
Average rent: $1,670
National rent ranking: 24
Source: Zumper
2. Irving, Texas
Skyline of the Las Colinas area of Irving, Texas. iStock / Getty Images Plus via BI
Year-over-year rent change: -16.1%
Month-over-month rent change: -0.8%
Average rent: $1,250
National rent ranking: 61
Source: Zumper
3. Winston Salem, North Carolina
Winston-Salem, North Carolina. halbergman/Getty Images via BI
Year-over-year rent change: -14.6%
Month-over-month rent change: -1.1%
Average rent: $880
National rent ranking: 92
Source: Zumper
4. Greensboro, North Carolina
Sean Pavone/Shutterstock via BI
Year-over-year rent change: -13.9%
Month-over-month rent change: 5.3%
Average rent: $990
National rent ranking: 82
Source: Zumper
5. Boise, Idaho
Boise, Idaho. Charles Knowles/Shutterstock via BI
Year-over-year rent change: -12.8%
Month-over-month rent change: 3.2%
Average rent: $1,290
National rent ranking: 55
Source: Zumper
6. Augusta, Georgia
Augusta, Georgia. SeanPavonePhoto/Getty Images via BI
Year-over-year rent change: -12.5%
Month-over-month rent change: -1.2%
Average rent: $840
National rent ranking: 95
Source: Zumper
7. Buffalo, New York
Buffalo, New York. Getty Images via BI
Year-over-year rent change: -10.7%
Month-over-month rent change: 5.9%
Average rent: $1,080
National rent ranking: 74
Source: Zumper
8. Austin, Texas
Austin, Texas. Evan Semones via BI
Year-over-year rent change: -10.2%
Month-over-month rent change: 0%
Average rent: $1,490
National rent ranking: 35
Source: Zumper
9. Asheville, North Carolina
Asheville, North Carolina. Kevin Ruck/Shutterstock via BI
Year-over-year rent change: -8.4%
Month-over-month rent change: -2.1%
Average rent: $1,420
National rent ranking: 41
Source: Zumper
10. Arlington, Texas
Shutterstock via BI
Year-over-year rent change: -8.3%
Month-over-month rent change: 1.9%
Average rent: $1,100
National rent ranking: 70
Source: Zumper
11. St. Louis, Missouri
The Gateway Arch, St Louis, Missouri. joe daniel price/Getty Images via BI
Year-over-year rent change: -8.3%
Month-over-month rent change: 3.5%
Average rent: $880
National rent ranking: 92
Source: Zumper
12. Memphis, Tennessee
Memphis, Tennessee. Connor D. Ryan/Shutterstock via BI
Year-over-year rent change: -8.2%
Month-over-month rent change: 2.3%
Average rent: $900
National rent ranking: 90
Source: Zumper
13. Providence, Rhode Island
Providence, Rhode Island. Mihai_Andritoiu/Shutterstock via BI
Year-over-year rent change: -8%
Month-over-month rent change: -5.9%
Average rent: $1,600
National rent ranking: 25
Source: Zumper
14. Glendale, Arizona
Saverino and his boyfriend rented in the Phoenix suburb of Glendale before buying a one-bedroom condo in Mesa for $204,000. halbergman/Getty Images via BI
Year-over-year rent change: -7.7%
Month-over-month rent change: -5.5%
Average rent: $1,200
National rent ranking: 65
Source: Zumper
15. Colorado Springs, Colorado
Jacob Boomsma/Getty Images via BI
Year-over-year rent change: -7.6%
Month-over-month rent change: 0%
Average rent: $1,100
National rent ranking: 70
Source: Zumper
16. Wichita, Kansas
Sean Pavone/Shutterstock via BI
Year-over-year rent change: -7.2%
Month-over-month rent change: -1.5%
Average rent: $640
National rent ranking: 100
Source: Zumper
17. Houston, Texas
Houston, Texas. Sean Pavone/Shutterstock via BI
Year-over-year rent change: -6.9%
Month-over-month rent change: -1.6%
Average rent: $1,220
National rent ranking: 63
Source: Zumper
18. Oakland, California
Oakland, California city skyline. Jonathan Clark/Getty Images via BI
Year-over-year rent change: -6.8%
Month-over-month rent change: -1.4%
Average rent: $2,050
National rent ranking: 13
Source: Zumper
19. Dallas, Texas
Dallas, Texas. f11photo/Shutterstock via BI
Year-over-year rent change: -6.8%
Month-over-month rent change: -2.2%
Average rent: $1,360
National rent ranking: 46
Source: Zumper
20. San Antonio, Texas
Sean Pavone/Shutterstock via BI
Year-over-year rent change: -6.1%
Month-over-month rent change: 0.9%
Average rent: $1,080
National rent ranking: 74
Source: Zumper
21. Orlando, Florida
Orlando, Florida. Songquan Deng/Shutterstock via BI
Year-over-year rent change: -6%
Month-over-month rent change: 0.60%
Average rent: $1,580
National rent ranking: 26
Source: Zumper
22. Lincoln, Nebraska
Lincoln, Nebraska. Jacob Boomsma/Shutterstock via BI
Year-over-year rent change: -6%
Month-over-month rent change: 1.3%
Average rent: $790
National rent ranking: 97
Source: Zumper
23. El Paso, Texas
Northwest in El Paso, Texas John Coletti/Getty Images via BI
Year-over-year rent change: -5.8%
Month-over-month rent change: -5.8%
Average rent: $810
National rent ranking: 96
Source: Zumper
24. Bakersfield, California
Bakersfield, California MattGush/Getty Images via BI
Year-over-year rent change: -5.4%
Month-over-month rent change: -0.9%
Average rent: $1,050
National rent ranking: 78
Source: Zumper
25. Jacksonville, Florida
Jacksonville, Florida. ESB Professional/Shutterstock via BI
Year-over-year rent change: -5.3%
Month-over-month rent change: 0.8%
Average rent: $1,260
National rent ranking: 59
Source: Zumper
26. New Orleans, Louisiana
John Coletti/Getty Images via BI
Year-over-year rent change: -5.1%
Month-over-month rent change: 0%
Average rent: $1,500
National rent ranking: 31
Source: Zumper
27. Albuquerque, New Mexico
Albuquerque, New Mexico. Sean Pavone/Shutterstock via BI
In 2022, not long after a new owner bought the Highland Park rental home where Ana Lopez, 66, lives with her husband, the tenants began receiving offers to leave. At first it was about $22,000, she said. One of her neighbors took the offer and left. But Lopez, desperate to stay in the rent-controlled home where she has lived for more than two decades and pays $800 a month, repeatedly turned down the offers, even when the amount increased to $100,000.
After taxes, she felt, the money was not enough to remain long-term in her community, where the average monthly rent is more than $2,000 and the median sale price of a home is more than $1 million.
She’s felt pressured to go and has been informed that the owner plans to demolish the property. But, she says, “We’re going to keep fighting to stay in our home.”
Buyout offers — also known as “cash for keys” — have become a frequently used tool for landlords hoping to get tenants to leave rent-controlled apartments without going through a formal eviction process, which can take time, be costly and is governed by strict rules. But it has been difficult to say exactly how often renter buyouts happen across Los Angeles. Last week, data released by City Controller Kenneth Mejia’s office shed some light on the subject, showing that from 2019-23 nearly 5,000 “cash for keys” agreements were filed with the city.
Neighborhoods in Koreatown, Echo Park and Mid-Wilshire topped the list for the number of agreements. Lopez’s Highland Park neighborhood was also among the top ZIP codes.
In a statement, Mejia’s office said “tenant buyouts are a tactic that landlords use to compel tenants to move out of RSO (Rent Stabilization Ordinance) units or rent-controlled units, often so landlords can re-rent these units to new tenants at market-rate prices. In many cases, buyout amounts are not enough for tenants to afford continuing to live in the City of Los Angeles long term.”
Tenant advocates say the numbers reported to the city fall short of fully capturing the extent to which cash for keys is happening across the city. They note that the data include only agreements — not the offers, which often happen informally with a person knocking on the door or making a phone call. Even the agreements themselves, advocates say, may not end up being filed with the city.
“The number of such notices filed with LAHD is likely a tiny fraction of such agreements,” said Gary Blasi, professor of law emeritus at UCLA School of Law.
Landlords say the buyout agreements can be a useful tool, giving tenants an incentive to move and creating a win-win for owners, who get their units back, and renters, who leave with some money to help pay for housing going forward. The average amount of a buyout, according to the data was $24,704.
But tenant advocates say even that amount — or more — is often not enough to allow low-income families to continue living in L.A. neighborhoods where the cost of housing has soared in recent years, especially after taxes.
“When it comes as a lump sum you think, ‘That’s a lot of money’ but you also need to know what it’s going to cost you to stay housed on the open market,” Blasi said. “What looks to be like a big lump sum windfall could actually leave the tenant in a much worse situation than they are.”
Tenants and advocates also say that people who turn down the offers are often met with harassment by landlords.
“We’ve had tenants report that people come by their home every day at dinner banging on the door telling them they really should take the offer, or people who come by really late at night,” said Cynthia Strathmann, executive director for the nonprofit advocacy group Strategic Actions for a Just Economy. “And there’s other kinds of harassment, persistent neglect — a landlord will refuse to fix anything in the apartment and then really insistently offer them cash for keys until the pressure of living in an apartment that’s really in terrible condition will prompt the tenant to move.”
Strathmann said communities at the top of the controller’s list, like Koreatown and Echo Park, are ones where there’s an especially big difference between the monthly rent paid by a long-term tenant in a rent-controlled unit and what a landlord could command on the current market.
Chris Gray, president of the property management company Moss & Co., said cash for keys agreements became especially important tools for landlords after the pandemic, when many tenants racked up large amounts of unpaid rent debt.
“Landlords are in a tough position and all they want to do is get someone into their unit to pay rent,” he said.
An eviction through the courts can take months and cost tens of thousands of dollars in attorney fees, Gray noted.
“When you look at a whole picture like that, a landlord would be happy to forgive past rent debt of $30,000, $40,000, or whatever it may be, to get them out and avoid the whole eviction process.”
The city began regulating buyout agreements and collecting information about them in 2017 after tenant advocates began protesting what they saw as an increasing practice of property owners displacing residents of rent-controlled units without fully informing them of their rights.
The Tenant Buyout Notification Program requires landlords to provide information to renters when making a buyout offer. They must inform tenants that they are entitled to minimum compensation, which ranges from $9,900 to $24,650, depending on various factors including how long the tenant has lived in the home and whether they are elderly or disabled. Tenants are also told that they have the right to refuse or rescind the offer and to consult with an attorney or the housing department.
Under the program, landlords are also required to file any agreements with the L.A. housing department. Those filings are the basis for the analysis that was released by the controller’s office.
According to the data, buyout filings peaked in 2019, when there were 1,209 agreements. Last year there were 789 agreements filed with the city.
The buyout ordinance allows tenants to “bring a private right of action against a landlord who violates” the rules and to recover damages and a penalty of $500. But that’s a step many low-income residents are unlikely to take, Blasi said.
“I think the city should look again at the tenant buyout notification program and look to put some teeth into it and do some serious outreach to tenants and landlords about the existence of it,” Blasi said. “That can only help everybody who is operating in good faith.”
Winter can bring unique challenges and opportunities for vacation rental property managers and investors, whether you’re in the sunny climate of Orlando, Florida, or possibly somewhere wetter and colder like Seattle, Washington. If you’re looking to buy a property to turn it into a vacation rental, this comprehensive winter season VR maintenance checklist compiles insights and recommendations from seasoned professionals in the industry.
From yearly maintenance routines and safety inspections to adapting property management approaches and providing guest-centric amenities, these tips aim to ensure a delightful and hassle-free experience for guests during the winter season. Whether you’re preparing for snowstorms or optimizing heating systems, this Redfin article covers it all, emphasizing the importance of proactive measures, clear communication, and a guest-first mindset for achieving VR success in the competitive vacation rental market.
1. Have a maintenance checklist for each season
“As one of Seattle’s most successful short-term rental managers, we prepare our homes for winter and the holidays to ensure a great guest experience,” says Eva and Sid, co-founders of NICASA. “On the backend, we conduct annual maintenance, including gutter cleaning, covering outside hose bibs to prevent pipes from freezing, cleaning heater vents, and checking their functionality while preparing backups in case of any failures. We also place ice melt and shovels in homes to be ready for unexpected snowstorms — we recommend purchasing them in advance as they sell out quickly when storms occur.”
2. Get your guests tickets to local activities and events
At HomeSlice Stays, “We understand that the winter and holiday season is a special time for guests and their loved ones. We want to ensure that every moment of their stay is filled with joy, comfort, and relaxation. Our team is dedicated to providing the highest level of service and support throughout their visit. To add an extra touch of holiday cheer, we offer Christmas hot chocolate and champagne baskets as a warm welcome gesture. In addition, we offer tickets to local activities such as Enchant, Scottsdazzle, or maps for the best local holiday lights. It’s our little way of spreading joy and making your vacation feel special.”
“As a traveler and vacation home manager, we take safety extremely seriously,” says Caleb Hannon, COO of StayLakeNorman. “That’s why we use the winter time to do a robust safety inspection of all of our properties and luxury homes, from checking outdoor lighting, to testing smoke detectors, and all the way to cleaning out dryer vent systems. We conduct several preventive maintenance checks throughout the year, with the most extensive one just before winter to ensure our properties provide the best possible stay for our guests. Continuous preventative maintenance and safety inspections are key to ensuring vacation rental properties are ready for anything or anyone.”
“Here in Northern New England, we are lucky to have a slowdown in rentals between the foliage season and the busy holiday seasons, which allows us to fully prepare for winter,” mentions Bretton Woods Vacations. “Our climate is harsh in New Hampshire. I have personally seen temperatures as low as -35F. While rare, those temperatures bring on a suite of potential problems, from frozen pipes to dead car batteries. For those reasons, we change our cleaning protocols to ensure that thermostats are set no lower than 60F, and that sink base cabinet doors are left open to allow better air circulation. Our maintenance team also has jumper cables so that they can promptly intervene to help a guest in case of a vehicle that won’t start in the cold weather.”
5. Provide clear communication, instructions, and regular updates
“In my extensive experience with vacation rental management, specializing in Airbnb and VRBO, I’ve learned that guest reviews and safety heavily influence success,” suggests 5 Star STR.“Clear communication is another key aspect. In my short-term rental management approach, I make it a point to ensure our guests receive a digital guest book providing clear operating instructions on heating equipment and readily available emergency contact information. Our secret to 5-star reviews is our proactive communication and property DNA. We respond to guests within five minutes, 24/7, and deal head-on with any situation.”
“Taking proactive measures to prevent the spread of germs and allergens ensures a happy and healthy holiday for everyone – including your next guests,” recommends Justin Ford, Director of STR Safety at Breezeway. “Install new filters for all forced-air heating systems. These filters will capture airborne particles, including dust, pollen, and even viruses, preventing them from circulating throughout the property. Hosts should also consider adding air purifiers with filters to common areas. These will silently remove allergens, viruses, and bacteria from the air, creating a healthier and more comfortable environment for guests.”
7. Invest in comfort, technology, and guest feedback
Sophari says, “Our property management approach in Seattle revolves around creating a truly memorable experience for our guests during the winter season. Here’s how we blend these elements to make our vacation rentals special during the winter:
Temperature control and enhanced monitoring: We prioritize guest comfort by utilizing Nest devices to maintain a warm property during the coldest winter nights. Proactive measures, such as preheating vacant units before arrivals, ensure a cozy and welcoming environment from the moment guests step in.
Smart Locks and battery monitoring: We guarantee a hassle-free experience with SmartThings technology, connecting with Yale Smart Locks through our property management software. This system monitors smart lock battery levels to prevent lockouts and unauthorized access, ensuring a smooth check-in and restricting access only to valid reservation dates.
Guest feedback and continuous improvement: To consistently exceed guest expectations, we personally stay in our units annually or invite close friends and family for feedback. Aggregating this input, along with guest reviews, allows us to identify areas for improvement and enhance the overall guest experience.”
8. Be ready when unexpected weather arises
Brigadoon Vacation Rentals suggests that “Sometimes, guests’ plans for hiking, biking, or kayaking can be waylaid by rainstorms or occasional snowfall. Here are some tips to help prepare your vacation rental space for the winter season:
Soft furnishings: Warm blankets, plush throws, and cushions create a cozy atmosphere.
Rugs: Decorative rugs add warmth to hard floors.
Lighting: Battery-operated candles (for safety), fairy lights, or warm-toned lamps create a soft and inviting ambiance.
Seasonal: Rotate winter-themed decor.
Curtains: Consider heavy curtains for windows to help trap heat inside.
Heating: Turn the heat to 55 when vacant, but turn it up before check-in. Leave a few instant logs for the fireplace.
Winter reading: Create a cozy area with a comfortable chair, task lighting, and a selection of books.
Movies: The TV room should have plenty of blankets and pillows.
Games: Keep a collection of family-friendly board games.”
iTrip Los Angeles recommends, “Clean your rental from top to bottom, including ceilings, stairwells, baseboards, closets, and all the nooks and crannies. This will help with general upkeep and also help you identify opportunities for improvement. For example, you may notice while cleaning your window sills that they could use another layer of caulking. Or that your outdoor faucets still need to be winterized. You should also replace the batteries in your smoke detectors, inspect your furnace and space heaters, and change HVAC filters. Lastly, clean out the fireplace (including gas fireplaces) and test them out to make sure they’re working properly.”
10. Adapt property management to the winter and holiday season
Phillip Costa, co-founder of Desired Stays recommends, “Adapt your property management approach to the winter and holiday season. Increase the frequency of property inspections, focusing on heating systems to ensure functionality. Adjust cleaning routines to address mud and snow, maintaining a clean and welcoming environment. Enhance guest support with quick responses to inquiries and a detailed guide on winter activities and local holiday events, ensuring a smooth and enjoyable stay.
Schedule maintenance for heating systems to avoid unexpected breakdowns. Provide straightforward instructions for operating heating equipment, thermostats, and other appliances. Ensure a reliable Wi-Fi network and trouble-free smart home devices, offering a seamless and comfortable technological experience for your guests.”
11. Provide entertainment options for both indoor and outdoor
Zach Vavak, owner of Grand Welcome Lake of the Ozarkssays, “Fire pits are popular during the winter. Here at the lake, it’s a perfect spot to relax around a warm outdoor fire. We recommend getting comfortable chairs made from water-resistant materials. Indoor entertainment and outdoor experiences and activities at the lake are plentiful. If you opt for a cozy cabin or condo stay, provide indoor board games and TV streaming services. Meal delivery should also be available. If your guests decide to venture out, let your guests know the town offers a variety of options, like ice skating, Christmas light villages, indoor play areas, trampoline parks, indoor pools, and much more.”
“Hot tubs, saunas, and Jacuzzis are fantastic for keeping winter guests happy,” recommends Lucas Knowles, owner of Grand Welcome Southern Coastal Maine. “But better winter comfort doesn’t have to come with a hefty price tag. Adding extra blankets and boot warmers provides a cozy touch, while a well-stocked kitchen with wine glasses, a bottle opener, and hot cocoa can really elevate the experience. Proper cookware, mixing bowls, and a can opener are all easily forgotten items that guests will be relieved to find in the home, saving them an emergency trip to the store.”
13. Weather proof your rental, even in warmer climates
Ian Vogt, manager of Grand Welcome Destin & Miramar Beach mentions, “In Florida’s winter season, though lacking snow, essential tasks beckon attention. Key among them is weatherproofing—sealing windows and doors, inspecting the roof and gutters, and engaging professionals for HVAC system checks. Pool owners should adapt cleaning routines for cooler temperatures and activate heating for a delightful experience. Indoors, create a cozy ambiance with plush blankets in each bedroom, stock the kitchen with holiday cooking essentials, and consider adorning the vacation rental with enchanting holiday decorations for an extra touch of magic, consistently charming guests.”
14. Avoid technical difficulties using easy alternatives
Jay Breitlow, owner of Grand Welcome of Greater Orlando says, “We live in Florida so our challenges are unique to guests who stay in our homes but the most common issues we have are really quite simple. The first issue we run into is switching our thermostats from cooling mode into heating mode. It’s super easy when you know your thermostat but guests somehow always seem to have an issue. We highly recommend recording a video and saving to YouTube and then printing off a QR code for them to scan with the basics of how to use the thermostat.”
15. Prepare your water lines
Niyi Olumide, owner of Grand Welcome Houston recommends, “Opening faucets and dripping or draining water lines helps to avoid water getting stuck and freezing inside the pipes. Insulating our pipes with insulating tape or foam – padding sleeves is really important. We apply foam-padding sleeves to the outside of the pipes, which will help keep them warm and the insulating tape will also keep pipes warm, but will keep water out, as well.”
16. Focus on maintenance, cleaning, and energy efficiency during the winter
Owner of Grand Welcome Franklin, Josh Smith mentions, “Here are some notable changes in how we handle maintenance, cleaning, energy efficiency as well as guest support during the winter/holiday season.
Maintenance: schedule professional HVAC inspections leading into winter as well as into summer (Bi annual visits) to help mitigate any potential system issues.
Cleaning: If applicable, fireplace/chimney as well as outside gutters and downspouts cleaned.
Energy efficiency: programmable thermostats for interior HVAC is a huge efficiency saver. During the winter season, we set thermostats to 65F when vacant and 70F prior to guest arrival.
17. In-unit amenities and comfy furniture
“The key considerations for guest satisfaction revolve around comfort, quality, and attention to detail,” recommends Taylor Porter, Owner of Grand Welcome Hilton Head Island. “Comfortable furnishings such as mattresses, plush sofas, and ample cushions contribute to a relaxing and cozy atmosphere. Quality entertainment, kitchenware, and in-unit amenities, like a washer and dryer, add value and convenience to the guest experience.”
18. Create a grand experience outdoors and indoors
Lucas Ha from Sweet Vacation Rental says, “We’re prepping our Orlando and Tampa homes for a cozy winter. Picture fairy lights on palm trees without icy sidewalks. We clear walkways, trim fronds, and swap patio furniture for sturdy pieces with plush throws. Our fireplaces get professionally checked, and we add LED lights for festive cheer.
Indoors, we welcome guests with garlands, beach reads, and board games. The kitchen has spices for cocoa and baking. Bathrooms get spa vibes with fluffy towels and scented soaps. We test everything, from pool heaters to tech, and our guest book has local info. We update guests on weather and provide emergency contacts. Before arrival, our cleaning team works their magic, ensuring a sparkling space. We restock pool floats, sunscreen, and leave a welcome basket with fresh oranges and local honey.”
19. Require guests to also come prepared
“We manage properties in Northern Utah’s Wasatch Back and require our guests to have a 4-wheel or all-wheel drive vehicle to access their ‘home away from home’ during the winter,” says Mountain Luxury Real Estate. “Too often, our guests get stuck or are unable to drive safely from the airport due to intense winter weather. Of course, there are a few guests who visit during a dry spell and complain that they didn’t need 4-wheel or all-wheel drive; however, we prefer those complaints over ones like, ‘I slid off the road. Please refund me.”
“Our holiday season mantra is all about preemptive cheer and flawless experiences,” shares WISH Short Term Rental. “As winter settles in, our focus is on perfecting every detail for a seamless and cozy guest experience. We prioritize hassle-free access with smart lock systems, align pricing with festive market trends, and conduct comprehensive preventative maintenance, addressing heating systems and insulation. Our goal is to provide a welcoming and warm haven for guests, allowing them to fully enjoy their stay without worrying about anything other than packing in as much holiday fun as possible.”
21. Think gift baskets and coziness
“We’ve found that creating a warm and cozy environment is essential to providing an ideal winter getaway,” mentions Stay & Sea. “Little touches go a long way, we like to leave seasonal treats in our gift baskets for guests to enjoy. Supplying soft throw blankets and plush robes is a great way to help guests relax and feel at home. Many of our rentals offer fireplaces, saunas, and hot tubs. We can’t think of a better way to stay warm and toasty during the chilly winter months.”
“In colder months, offering a heated pool not only fulfills guests’ desires but also enhances your property’s market value. The ability to upcharge for extra electricity usage during cooler stays offsets the cost of pool heater installation, turning it into a lucrative opportunity. Market insights in Myrtle Beach, SC, show that properties with pool heaters experience a 10% increase in rental rates and a 35% boost in occupancy. It’s not just about having a pool; it’s about transforming your investment into a year-round retreat that attracts and rewards guests in all seasons.”
23. Create long term partnerships with local professionals
“A few simple practices can help you navigate the surprises the winter months bring in vacation rentals,” says Jessica from Hudson Valley Short Rental Management. “We like to stay proactive and pivot when we need to. Keeping a team of professionals on speed dial is essential. Check in with your plumber, electrician, and HVAC partners before the cold weather hits, and be sure to choose reliable professionals that answer emergencies and work weekends.”
24. Find a snow removal company that’s available 24/7
“As the winter season approaches in Colorado, one crucial tip for hosts that surprisingly gets overlooked is to have a reliable snow removal solution in place for your vacation rental,” recommends Highline Management. “There is nothing worse than experiencing an unreliable service that doesn’t come out during one of the biggest snowfalls, resulting in leaving your guests snowed in.
Given Colorado’s unpredictable weather, the key to a seamless stay lies in sourcing a reliable snow plow or shovel service in place from October through May. Make sure your service provider comes out to shovel and ice after the first inch of snowfall. We do see a lot of travelers coming from the warmer states that appreciate this precaution ensuring that their family is safe and taken care of during their stays.”
25. Provide back up plans for your guests
“As a professional short-term rental manager, we strive to create a cozy and welcoming environment for guests,” says Karen Hunt, Owner of iTrip Seattle. “We have a local inspector who personally checks each home and turns up the heat before guests arrive. During slick conditions and snowy weather, we send direct messages to our guests with alternative driving routes because Seattle has some steep roads. Our goal is to not only provide great vacation rental accommodations, but also help travelers have a five-star experience each time they visit.”
26. Provide exceptional customer service and frequent check-ins
“We’re in Scottsdale, AZ, so no snow, but plenty of snowbirds looking for some golf and sun,” says GemHaus. “Winter’s our peak season, and that means a lot more guests soaking up the desert vibes. The only hiccup? Our pools can get a bit chilly during the winter. We’re on it, though— helping guests figure out those pool heaters is like our winter sport. At GemHaus, we’re all about more check-ins, extra guest love, and making sure everyone gets a sunny winter getaway they’ll remember.”
27. Have the basic essentials ready for travelers
“One of the significant gestures we extend to all our guests is a welcome basket containing water, snacks, oatmeal, Skittles, and popcorn,” suggests Book It Vacation Rentals. “The Skittles are more of an inside treat for Seattle Seahawk fans. Additionally, we provide an excellent box that equips travelers with all their essential travel needs: a shaver, shaving cream, toothbrush, toothpaste, sewing kit, shoe polish, toothpicks, mini tissues, comb, and sleep spray.”
28. Complete inspections before and after arrival
“We conduct thorough routine house inspections on all our rental properties before guests arrive to ensure they are clean and ready for occupancy,” suggests West Lake Properties. “We provide all the necessary supplies to make our guest’s stay comfortable, including turning on lights both inside and outside, adjusting the heating as needed, and if necessary, clearing snow from the walkway to the front door.
Additionally, our post-stay inspections ensure that homeowners can rest easy, knowing that their property is well taken care of. We make sure the house is damage-free then we secure the place by locking all windows and doors, turning the heat back to an acceptable temperature, and ensuring that all lights are off.”
29. Provide guests with snow essentials for their cars
Picture Properties Vacation Rentals says, “If your rental is in an area where it tends to snow, make sure you have someone nearby and available to plow your driveway. Have a snow shovel, windshield scraper, and ice melt granules readily available for your guests to use during their stay. Another helpful tip is to make sure your housekeeper keeps the heat at 55 degrees Fahrenheit when they leave after each cleaning in order to guarantee your pipes don’t freeze. Even better, install a smart wi-fi thermostat so you can set the temperature remotely with your phone. Not only will you save your pipes and your heat bill, you can turn the heat on in the house before your guests arrive so they are cozy and warm from the start of their vacation.”
30. Decorate for the holiday season
DoCo Vacations mentions, “Our approach to preparing our vacation rentals is centered around thoughtfully curated holiday decorations that align with the unique vibe of each rental property. Recognizing the significance of festive decor such as Christmas trees and making holiday plans. We ensure each unit is adorned in a way that not only resonates with its individual character but also sparks joy and a sense of holiday spirit among our guests, often leading to shareable moments for our guests through their social media profiles. This makes content for us to use in our own social media marketing.”
31. Add detail oriented comfort and a insightful welcome booklet
David and Lori Raun from Shasta Lakeshore Retreat says, “At our lake retreat, we focus on ensuring a comfortable and memorable winter experience for families in our ten vacation rental homes. We provide extra blankets for added comfort and meticulously inspect wood fireplaces, supplying ample dry oak for warmth. Outdoors, a firepit with a heat lamp encourages cozy gatherings. For group retreats, we offer board and dice games for serene winter evenings. Our gift basket includes rich hot chocolate, and our welcome materials detail ideal winter activities in the area to help guests make the most of their getaway. Our welcome book and website detail ideal winter activities in the area, ensuring guests make the most of their getaway.”
32. Prioritize group oriented configurations and comfort
Linda Ross from Stay WildFlower says “At Stay Wildflower, we meticulously prepare our vacation rental homes for the season, focusing on creating a festive atmosphere that caters to our guests’ unique desires. We prioritize practical winter comfort by ensuring essential amenities are in place, such as stocked Nespresso machines and well-prepped fireplaces and fire pits for chilly nights. To enhance togetherness during the holidays, we enable groups to book configurations that allow everyone to stay together under one roof. Our commitment to guest satisfaction includes immediate and responsive support, ensuring a seamless and enjoyable winter stay in the heart of Los Angeles.”
Founder of Leasey.A, Juan Leal, says “From guest communication to maintenance challenges; technical difficulties can disrupt your business at any moment. These problems become especially difficult when hosting guests for the holidays.
If I could offer one piece of advice to property managers and rental investors, it would be to embrace new technology. Leveraging the power of an AI troubleshooting chat means you can offer support for your guests 24/7, even if your team is taking time off for the holidays. Using smart IoT devices to automate home amenities when the suite is vacant can dramatically reduce your operating costs during the winter months. IoT sensors can also help your team monitor the suite to detect potential issues like frozen pipes before they become major issues. In all, embracing new technology can lead to better guest experiences and fewer technical difficulties during the busy holiday season.”
34. Tricks to make the cold bearable for a more comfortable stay
Matt Floyd, Owner of Stay Classy Homes mentions, “As someone who grew up in Wisconsin and manages vacation rentals all around the country, here are a few recommendations as we head into the winter season:
Keep your guests cozy by providing hot chocolate packets and investing in boot warmers for toasty gear the next morning.
If you have a fireplace, consider partnering with a local firewood company for a discounted delivery. Stock extra fleece blankets for added warmth.
Prioritize guest safety by ensuring someone regularly shovels and salts pathways to prevent injuries.
Enhance energy efficiency with a smart thermostat, allowing remote temperature control to avoid high heating costs when the home is unoccupied.
35. Safety comes first
“As winter approaches, safety and comfort take center stage in our vacation rentals,” mentions WC Lodging. “We meticulously inspect properties, ensuring well-lit walkways and proactive measures against leaks. Our homes are equipped with safety essentials like handrails, emergency supplies, and functional heating systems.
Additionally, each Sonoma County house provides emergency contacts, including landline telephones, NOAA radios, and flashlights. In addition to clear safety instructions for rainy weather and heating appliances, our homes come equipped with extra blankets, pillows, puzzles, and games for an added touch of comfort and security during the winter season.”
“Being in close proximity to a ski area with colder temperatures, winter home preparation for incoming guests is paramount to our continued success,” says Mt. Baker Lodging. “Nothing is worse for guests than showing up to a dark, cold, and inadequately marked vacation home. With darkness upon us as early as 4:00PM, it’s important to be mindful that guests who are unfamiliar with the area need to be able to find their cabin or condo with a minimum of difficulty.
Once there, they need to be able to clearly see their way in while carrying their luggage, food, and personal items. Once inside, it’s always nice to be greeted by a warmed-up property. It’s worth taking the time to perform a walk-through on the day of guest arrival to make sure that all systems are in good working order, outside lights are on, and the heat is turned up. Technology is great, but nothing takes the place of seeing things with your own eyes. It’s the little details that create a great first impression, and keep our guests coming back year after year.”
37. Emphasis on prevention
“Winter is the time we conduct the majority of our preventive maintenance items on our properties,” says Manager Phil Caudle fromGrand Welcome Newport Beach “This includes swapping fresh batteries in our electronic door locks, smoke detectors, tv remotes controls and garage openers. Exterior home and patio lights are checked. Parasols and umbrellas are tied down or removed. This is also a good time to check the wear and tear on patio furniture as well and order new covers before the rains arrive.”
In 2021, four years after finishing her last jail term and living in transitional housing in Riverside County, Erica Smith was ready for a permanent home.
She’d saved enough to cover a security deposit and the first and last month’s rent for an apartment for her and her daughter. But after three months of searching, Smith ran out of money, having burned through $10,000 on stays in motel rooms. She’d never found a place to live.
Smith had a series of drug-related and theft convictions on her record. Numerous cities within Riverside had adopted laws called crime-free housing that aimed to prohibit landlords from renting to tenants with criminal histories.
“It’s just terrible,” said Smith, 54. “Why am I not able to provide a place for me and my daughter to live?”
Soon, Smith will have more opportunities for housing, courtesy of a new state law. Assembly Bill 1418, which takes effect Jan. 1, will ban local governments across California from enforcing crime-free housing policies. Not only do crime-free housing rules stop landlords from renting to those with prior convictions, but many also call for the eviction of tenants based on arrests or contact with law enforcement.
Dozens of cities and counties in California began implementing the laws during the wave of “tough on crime” measures in the 1990s, with local elected officials, police and prosecutors contending they helped keep neighborhoods safe.
Under AB 1418, local governments will no longer be able to mandate landlords evict and exclude tenants for alleged or prior criminal conduct. It does not prevent landlords from initiating nuisance-related evictions and screening prospective residents based on criminal histories of their own accord.
More than 100 cities passed crime-free housing policies between 1995 and 2020, covering potentially 4.5 million renters, according to a new report by Rand Corp., a Santa Monica-based nonpartisan research institution.
The study found that contrary to proponents’ claims, crime-free housing did not lower crime rates.
“Our overall finding is crime-free housing policies are completely ineffective,” said Max Griswold, an assistant policy researcher at Rand and the study’s lead author.
In contrast, the analysis determined that the rules increased eviction rates on average by about 20%, an effect Griswold called “unexpectedly large.” The study found that cities with crime-free housing policies have a larger percentage of Black residents than those without.
“They’re creating more segregation,” Griswold said of the rules. “At the end of the day, that seems to be their purpose.”
Momentum to curtail crime-free housing laws has grown in recent years.
A 2020 Times investigation found the policies had disproportionately affected Black and Latino renters in California. Last year, the city of Hesperia and San Bernardino County Sheriff’s Department agreed to pay $1 million to settle a civil rights lawsuit filed by the U.S. Department of Justice alleging crime-free housing policies targeted Black and Latino residents for removal.
Citing The Times’ story and the Hesperia case, Assemblymember Tina McKinnor (D-Hawthorne) introduced AB 1418 in February. Soon after, California Atty. Gen. Rob Bonta issued formal guidance to local governments urging them to reconsider their programs on racial justice grounds.
“Doing that on the heels of the big Hesperia case put cities on notice that the walls were closing in on them,” said Anya Lawler, a lobbyist representing the California Rural Legal Assistance Foundation and the National Housing Law Project, two nonprofits that are principal supporters of the bill.
Over the summer, California’s Reparations Task Force, in its recommendations for remedying the legacies of slavery and other more modern government-sanctioned policies that discriminated against Black residents,called for repealing crime-free housing laws.
AB 1418 attracted no formal opposition. It passed both houses of the Legislature without a dissenting vote in a committee or on the Assembly or Senate floors. Gov. Gavin Newsom signed AB 1418 in October.
Among the new law’s backers is the California Apartment Assn., the state’s largest landlord organization, which contended that local governments shouldn’t require landlords to exclude or evict tenants.
As AB 1418 made its way through the Legislature, the two largest cities in the Inland Empire, Riverside and San Bernardino, agreed to repeal their crime-free housing laws. San Bernardino did so as part of a settlement challenging the policy in a case filed by legal aid groups, and joined by Bonta’s and Newsom’s offices, on behalf of low-income residents in the city.
At a hearing on the policy in August, Michael Griggs told San Bernardino City Council members that he’d faced hurdle after hurdle trying to find housing. Griggs served six years in prison for robbery and assault charges related to a crime he committed as a teenager and was released in 2015.
Michael Griggs, 34, is pursuing a master’s in social work at Cal State San Bernardino. Because of his criminal history, he struggled for six months to find housing in the Inland Empire before finding a place.
(Myung J. Chun / Los Angeles Times)
While incarcerated, Griggs began taking college classes. He earned a scholarship to Pitzer College and now is pursuing a master’s degree in social work at Cal State San Bernardino.
After his acceptance into graduate school in 2022, Griggs said, he spent six months searching for apartments throughout the Inland Empire only to have landlords reject him because of his criminal history. He said he found a place in Highland, a city with a crime-free housing policy about 10 miles from campus, only because the landlord’s background check did not extend to convictions that occurred longer than seven years prior.
“People want to move forward with their life,” said Griggs, 34. “How can they move forward with their life without having the first fundamental thing, which is housing, a safe place to live?”
Griggs said he’s looking forward to AB 1418 erasing crime-free housing policies on a broader scale.
“It’s hard work to do this at the city level,” he said. “I’m happy that the state is stepping up.”
Local officials in Riverside and San Bernardino said they had already scaled back enforcement of crime-free housing programs. Ryan Railsback, a spokesperson for Riverside city police, said the department stopped dedicating an officer to overseeing crime-free housing rules in 2020 because of staffing shortages that emerged during the COVID-19 pandemic.
In San Bernardino, the discussions at the state and local levels about potential harms caused by crime-free housing rules led city leaders to reconsider them after three decades on the books, said Jeff Kraus, a city spokesperson.
“The nature of crime has changed,” Kraus said. “The laws have changed. People’s opinions have changed. It’s probably a good time to review them now.”
For Smith, who remains homeless and living in her car with her 12-year-old daughter, AB 1418 represents another chance. She’s protested crime-free housing policies alongside advocacy groups locally and at the state level, and recently obtained a federal Section 8 housing voucher that would subsidize her rent.
Smith has yet to find a landlord that will accept the voucher, but she is counting on that to change.
“I’m excited and quite hopeful that because I’ve been dutiful in opposing these crime-free rules that part of the reward will be that housing for us is coming very soon,” Smith said.
Stiiizy’s founder built a legal cannabis empire — while being landlord to black market dispensaries – Cannabis Business Executive – Cannabis and Marijuana industry news
When can a New York City commercial tenant claim harassment by a landlord?
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In any commercial lease, one major issue relates to the work that needs to be done to prepare a space for the tenant’s occupancy. Usually, the landlord will deliver the space pretty much as is, or with certain limited work completed. Then it’s up to the tenant to build out the space so it meets their needs.
In that process, the tenant wants to make sure it can change its plans if necessary as it rethinks how it will use the space. At the same time, the landlord wants to make sure the tenant doesn’t do anything crazy.
To resolve these conflicting concerns, the landlord will often pre-approve any of the tenant’s plans that are far enough along to be approved when the lease is signed. If the tenant wants to change anything, the tenant might need to go back to the landlord and get approval of the change.
Usually the landlord agrees to be “reasonable” about approving the tenant’s change. That basically means the landlord must approve it if an ordinary landlord in the same position—with no particular axe to grind or weird idiosyncratic agenda—would approve it.
Sometimes, though, the lease will say the landlord can withhold its consent “in Landlord’s sole and absolute discretion.” That language might suggest that the landlord could always disapprove anything and everything, with no obligation to be “reasonable,” thus preventing the tenant from making any changes at all.
A pending New York City litigation suggests that a landlord can’t act quite as unreasonably as a lease might seem to allow. In that litigation, the lease said the landlord could disapprove plan changes in its sole and absolute discretion. The landlord apparently used that authority to disapprove practically everything the tenant ever wanted to change.
Finally, the landlord came up with a new and different plan for the tenant’s work, which would have cost twice as much as the tenant’s original budget. Implicitly or explicitly, it became clear the landlord wouldn’t approve anything except the landlord’s new and different (and very expensive) plan. Eventually the landlord required the tenant to stop work.
The tenant sued the landlord on various grounds, including based on a New York City law that prohibits “harassment” of commercial tenants. That law defines “commercial tenant harassment” with incredible breadth: it’s anything a landlord does or doesn’t do that “would reasonably cause a commercial tenant to vacate.” The law then lists some examples, including any “repeated or enduring acts or omissions that substantially interfere with the operation of a commercial tenant’s business.”
The court had little trouble concluding that the landlord’s repeated disapprovals, if adequately proven, would constitute commercial tenant harassment because they continued over time and prevented the tenant from opening and operating its business. Eventually, they would lead the tenant to vacate the leased space. So the litigation proceeded, with the possibility that (among other things) a court might order the landlord to behave better.
Moral of the story: in New York City, at least, if a lease says that a landlord can act unreasonably, or disapprove things in its sole and absolute discretion, the landlord shouldn’t necessarily believe it. That principle could apply to much more than approval of changes in the tenant’s construction plans. For example, if a tenant wanted to sell its business but a mean landlord disapproved a whole series of reasonable purchasers that the tenant proposed, could the tenant claim “commercial tenant harassment”?
Other cases make it clear, however, that ordinary one-off disagreements about a lease or a tenant’s activities don’t rise to “commercial tenant harassment.” The New York City law also says a landlord’s efforts to collect rent and enforce its remedies for nonpayment don’t constitute harassment. Finally, a tenant typically cannot recover more than $50,000 from a landlord guilty of “commercial tenant harassment.” Therefore, tenants shouldn’t necessarily rejoice over having an all-purpose weapon for use against landlords.
The 6-year-old Palestinian boy allegedly stabbed to death by his Chicagoland landlord will be buried Monday afternoon.
“As they say, the smallest coffins are the heaviest,” CAIR-Chicago executive director Ahmed Rehab said in a statement announcing the 1 p.m. CT funeral for Wadea Al-Fayoume at the Bridgeview, Ill. Mosque Foundation.
The victim, who recently celebrated a birthday, will be laid to rest at Parkholm Cemetery in LaGrange, Ill. following the service.
The United States Department of Justice is investigating the killing of Al-Fayoume and the stabbing of his 32-year-old mom, Hanaan Shahin, as a federal hate crime. Shahin was stabbed multiple times but is expected to survive.
Their landlord, Joseph Czuba, was arrested in connection with the attack believed to be fueled by the war between Hamas and Israel that began last week.
“I am heartbroken by the abhorrent killing of Wadea Al-Fayoume, a six-year-old child who died after being stabbed 26 times with a military-style knife,” Attorney General Merrick B. Garland said in a statement announcing the federal government’s decision.
Will County Sheriff’s Office
Joseph Czuba, 71, was charged Sunday with first-degree murder and a handful of other crimes.
Iman Negrete places two teddy bears outside the Plainfield Township home, Sunday, Oct. 15, 2023, where Joseph Czuba, 71, allegedly stabbed 6-year-old Wadea Al-Fayoume to death and seriously injured his mother on Saturday after targeting them because they were Muslim. (Armando L. Sanchez/Chicago Tribune via AP)
The victims moved into the ground floor of the Plainfield, Ill., home where the attack occurred in 2021 and had no previous issues with Czuba, according to ABC News. Family members said Shahin left the West Bank 12 years ago to escape turmoil in the Middle East. Al-Fayoume’s father said his son enjoyed soccer and basketball.
MIAMI, FLORIDA: In an aerial view, the City of Miami skyline, where many renters reside in the … [+] apartment buildings. (Photo by Joe Raedle/Getty Images)
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With so many fluctuations in today’s market, securing the right tenant has become crucial—they will be a source of cash flow for your investment and losing one could lead to short-term or long-term losses. This means you’ll want to carry out solid research before presenting any leases. You’ll also want to make sure the terms are set up in a way that provides protection for your interests.
That said, the perception that this type of relationship is a “one-way street,” in which the tenants exist to provide rent for landlords and nothing more, is largely a concept of the past. Today, regardless of whether you are dealing with multifamily, office, or retail, you’ll want to consider what you as a landlord can offer renters. When done well, you can help tenants on their own success paths, which can bring benefits for everyone involved in the investment.
Carrying out Diligence
Before taking on a tenant, you’ll want to know, first and foremost, with whom you are dealing. For multifamily, this could be as simple as researching their history and carrying out a credit check. You can follow up on references too. Of course, there are countless nightmare situations which involve tenants who have a bad track record and lack the financial wherewithal to make payments. Taking steps to vet individuals before offering a lease will help you avoid those headaches later. Keep in mind that each state has rules regarding what you can and cannot do when verifying tenants. Speak with a good rental broker for advice on measures you’re allowed to take and to ensure you’re following the legal guidelines.
For office and retail investments, finding the right tenant can be even more important since the leases are typically longer-term. Retail spaces might have three- to five-year leases. It’s common for office leases to run 5 years, 10 years, or even more. In contrast, for multifamily the length of the lease might be only a year. You could also have fewer office and retail tenants than multifamily (or just one).
The Right Tenant Lease Terms
For office and retail, part of the negotiation process often involves how the tenant will initially take the space. There may be specific needs that the business has which require renovations or construction work. You’ll want to agree on how the building will be delivered. There could be tenant improvement allowances, which are given by the owner to help the tenant cover expenses related to moving into the space.
Many times, landlords will provide tradeoffs with tenants and offer free rent in exchange for the tenant carrying out the upfront work. On other occasions, the landlord may be responsible for a good portion of the tenant improvement allowance. In some cases, these types of concessions could mean that you, as a landlord, won’t receive rent for a year or two.
For this reason, you’ll want to do all that you can to ensure you’re bringing on a creditworthy tenant. You can speak to past landlords to verify that the tenant is financially capable and a good steward of the space. To know what’s commonly expected in your market, work with a local leasing broker who is familiar with the customs. Also bring in real estate counsel to help you get the best terms and protect your interests.
When Larry Haber, the managing partner of the Commercial Real Estate Department of the bi-coastal firm Abrams Garfinkel Margolis Bergson, joined an episode of my podcast, “The Insider’s Edge to Real Estate Investing,” he stressed the importance of legal considerations when setting up a lease. Be aware of the “good guy clause,” which states that a tenant who is current on the lease has the option of giving back the keys and walking away, provided the place is in good condition.
Financials for Office and Retail
Credit tenants have sufficient guarantees and financial backing, and are often household names or national chains. You can find credit ratings at places like Moody’s or S&P. Avison Young also has Net Lease Advisor, where you can check the average cap rate associated with a tenant along with cap rate trends. As of August 2023, Sonic was listed with a credit rating of B2 by Moody’s, B+ by S&P, and a cap rate of 5.34%. It had a cap rate of 6.10% in 2021 and 5.42% in 2022. CVS had an average cap rate of 4.8%, shifting from 5.70% in 2021 to in 5.40% 2022. Its S&P rating was BBB and Moody’s ranked it Baa2.
Smaller, non credit tenants will typically have a higher cap rate, and they will often pay higher rents to adjust for that. They may be asked for more security too, since they lack a corporate guarantee. If you’re planning to resell the asset, the tenant and associated cap rate could play a significant role. A bank might be looking for the lower risk that typically comes with a credit tenant that has a corporate guarantee.
Don’t Overlook Smaller Players
While some sources will view a national tenant as being more creditworthy than others, I always like to point out that a mom and pop tenant can be just as valuable. Many of these mom and pop tenants have held their business for a long time and maintain great pride in their space. They will often do everything possible to make the space work and carry on, even if there’s a downturn. This was especially true in certain areas post Covid, when we saw many national tenants close stores and make large scale exits.
With a changing market, the relationships you cultivate with tenants will continue to have utmost importance. As you set up a lease, understand what’s in the fine print, especially if you’re making a significant financial investment initially. When carried out well, you can have a long-term tenant who will ultimately become your partner in the building and investment.
The PwC Tower (left) has a zero vacancy factor. Photo / Michael Craig
Don’t call them ghost towers any longer because the chief of a billionaire landlord and a research boss have cited rising numbers of workers back in Auckland’s heart.
On Monday, Precinct Properties chief executive Scott Pritchard talked of office popularity soaring, “work from work” being the latest trend and a study of lift movement in buildings showing many of the approximately 10,000 people on two waterfront blocks returning Monday to Friday.
Gavin Read, JLL research head, backed that up, saying research his business released in May showed Auckland office block vacancies had dropped, as more people returned to work, commercial space made a comeback and more leasing deals were struck.
The ANZ Centre: 22 per cent is empty. Photo / Dean Purcell
Last year, the Herald reported on three big blocks with many empty floors. The ex-Chorus House at 66 Wyndham St was then 59 per cent empty, the former Lumley Centre at 88 Shortland St was 30 per cent empty and the ANZ Centre on Albert St was 22 per cent empty.
But JLL’s most recent survey found 66 Wyndham only 47 per cent vacant in this year’s first quarter, the ex-Lumley Centre now called Shortland and Fort only 5 per cent vacant and the ANZ Centre on Albert St just 7 per cent vacant.
Precinct sold half the ANZ skyscraper on the Albert/Swanson corner to giant American business Invesco in a deal struck in 2018, then the other half…
CHICAGO—Calling the terms of the agreement unfair and excessive, local woman Beth Lebold told reporters Thursday that her strict apartment lease only allowed her to have roommates under 95 pounds. “According to my landlord, I can’t have any roommates bigger than that, no matter how clean or well-behaved they are,” said Lebold, adding that if she were to follow the nonnegotiable regulation, she would have to give up her current roommate, Lucy, who was around 95 pounds when she first got her but had put on a lot of weight since. “The lease says it’s to prevent damage to the property, but that’s ridiculous. Lucy mostly just eats and sleeps all day, and she hardly sheds. I mean, I want to get my security deposit back, but maybe I can just hide her if the landlord ever comes over to fix the sink or anything.” At press time, Lebold was reportedly looking to rehome her roommate after she bit a neighbor.
Opinions expressed by Entrepreneur contributors are their own.
If you’re like most landlords, evictions are a last resort. However, despite the cost and trouble, some evictions are inevitable.
According to a recent White House Summit, the eviction rate in the U.S. was 14% in 2022. This means nearly three out of every 20 tenants were evicted in the past year. It’s safe to say that if you didn’t experience eviction this year, you will at some point in your landlord career.
When you need to evict a tenant, it pays to be prepared. By understanding the eviction process and best practices, you can save yourself time, trouble and expense. Read on to learn everything you need about evictions, from the basics to a step-by-step guide and the cautions to heed during the process.
Eviction, or unlawful detainer, is the legal process of removing a tenant from a rental property. It involves not only physically expelling the tenant, but also the legal documentation, filing and court hearing for eviction.
Evictions are both time-consuming and expensive. An average eviction costs around $3,500, but the entire process (including legal and court fees, lost rent, repairs and cleaning, tenant screening, etc.) can total up to $7,000. Evictions can also take around three weeks to a month or longer to complete.
Due to their costs, you should avoid evictions when possible. Some strategies for preventing eviction include performing thorough tenant screening and automating rent collection.
A caution: Even if it seems easier, never attempt a self-help eviction. You should never try to regain possession of your property without going through the proper legal steps. Instead, carefully educate yourself on the eviction process in your state. If it’s your first time evicting a tenant, or if the eviction gets complicated (e.g., your tenant filed for bankruptcy, hired a lawyer, etc.), it’s a good idea to have a lawyer walk you through the process.
Reasons for eviction
There are several reasons you might file for eviction. The most common is late rent. If a tenant does not pay on time, and you’ve waited for any grace periods required by law or included in your rental agreement, it’s time to initiate eviction.
Here are the other acceptable reasons for eviction:
If you’ve decided an eviction is warranted, the next step is to deliver the eviction notice.
There are three main types of eviction notices:
Pay-or-quit notices are for when the tenant has not paid the rent. In general, these notices require you to give the tenant between three and seven days to pay rent before eviction proceedings officially begin. This notice may also be called a rent demand notice or notice for nonpayment.
Cure-or-quit notices are for violations of the lease agreement. The tenant generally gets a certain number of days to correct or “cure” the violation before eviction proceedings begin. This notice may also be called a notice for lease violation.
Unconditional quit notices are for severe breaches of the lease or the law (e.g., selling illegal drugs). The tenant does not get any opportunity to correct their violation and must quit the unit immediately or within a few days.
The exact length of each notice varies by state, as does the terminology for eviction notices. In general, a plain “quit” notice does not allow the tenant to correct the violation, while a “pay-or-quit” or “cure-or-quit” notice requires you to wait the number of designated days before filing for eviction.
Remember that quit notices differ from grace periods, which are mandatory in some states. For example, landlords in Tennessee must wait a 5-day grace period before applying late fees and an additional 14-day pay-or-quit period before they can file for eviction.
Lastly, send the eviction notice by certified mail and also post it on your tenant’s front door. This way, you can request a receipt and get confirmation that they received it.
Step 2: Filing for eviction
In many cases, the threat of eviction is enough to resolve the issue. The tenant will often cure their breach or move out without going past the notice stage.
However, if you’ve delivered the appropriate eviction notice, and your tenant still hasn’t cured their breach within the notice period, it’s time to officially file for forcible detainer.
After you file a complaint at your local court, an eviction case will be created. The court will set a date for the hearing and send a summons to your tenant, informing them of the eviction case and their hearing date.
Step 3: The hearing and judgment
The next step is the hearing itself. Prepare for the hearing by gathering the necessary documentation:
The rental agreement
Proof of the lease violation or nonpayment, such as payment records, bounced checks, photographs or tenant communications
Copies of the eviction notice and USPS receipt
In essence, bring any documentation that will help prove the tenant’s noncompliance and support your case for eviction.
At the hearing, a judge will review the case, look over the materials you provide and issue a judgment for repossession of the property, assuming the court rules in your favor.
Step 4: Evicting the tenant and regaining possession
After the hearing, a local sheriff will give your tenant notice to quit within a set number of days (typically several weeks). If the tenant does not move, the sheriff may physically remove them from the property.
Only after the tenant has permanently left the premises can you remove the tenant’s belongings, change the locks and re-list the property.
If the evicted tenant still has unpaid bills, you do have options for getting your past-due rent. Your landlord insurance may cover unpaid rent, or you can file a claim in small claims court to retrieve your funds. It’s also possible to take the judgment to your tenant’s employer to garnish their wages or use a private debt collector.
Eviction mistakes
Despite the carefully designed procedures for eviction, landlords can occasionally get ahead of themselves.
Here are some things you should NEVER do during an eviction:
Attempt a self-help eviction: If you forgo the formal eviction process, you may be required to pay damages or return the entire security deposit.
Accept partial payments: This may delay the eviction process. Once you begin, do not accept any payments from the tenant.
Neglect proper notice: Always wait the appropriate number of days.
Remove tenant belongings before the judgment: Landlords may not infringe on tenant privacy or touch their belongings before the tenant is removed.
Shut off utilities or change locks: Do not turn off utilities or change the locks before the tenant has been removed. These constitute a self-help eviction and are illegal.
Harass the tenant: This is also illegal.
Evictions can be difficult, especially if you know your tenants well. However, you must remember that evictions are not personal, but rather part of running a rental business. Following the steps outlined above will help make evictions as smooth and painless as possible.
Opinions expressed by Entrepreneur contributors are their own.
As we swiftly turn the corner into 2023, there are many considerations on the minds of those in the real estate industry, including landlords. The past year has been one of change, and experts predict more challenges in the general real estate market and the rental landscape. If you’ve been in the game for a while, you probably realize that what is happening right now is part of a cycle, and things will eventually even out and stabilize once again. But if you’re like me, you want to experience more short-term success as a landlord today. Here are a few suggestions on resolutions to consider to make 2023 a successful year.
Invest in technology to advance your business and properties
As a business founder and owner, I am acutely aware of just how crucial it is to make investments to experience ongoing success. As an investment property owner, upgrading technological devices within your rental properties is a great place to begin. Whether it is upgrading kitchen appliances, installing security systems such as a Ring doorbell, upgrading in-unit laundry machines, offering fiber optic internet connection (if available) or installing AI technology that can ease the life of your tenants, current and future tenants will appreciate the investments in the property and will likely choose to stay put with these upgraded amenities.
Also consider investing in a technology platform to help you manage your rental properties. This investment can make your life and job easier as a landlord or property manager and allow you to have all documents on file electronically.
Depending on the technology platform you decide to invest in, additional benefits could include accepting online rent payments, scheduling maintenance and property inspections, marketing vacant properties with a single click and streamlining security deposit or surcharge features.
Your time is valuable — invest in a platform that will make your life and your tenants’ lives easy and headache-free. Do your research and find the best platform that fits your unique needs.
Whether you are considering investing in technology and upgrading your rental management system, having information readily available for your tenants is a goodwill gesture. If the technology route is not for you, having a good filing system for important documents regarding each tenant is important in general. If a tenant has questions about their lease or a simple question, you will have easy access to that information.
Better yet, some systems offer tenant portals so that they can access their own information at will. Over my years as a landlord and rental property owner, I’ve found that the easier you can make things for your tenants, the more likely they will continue to rent from you. And turnover is one of the most significant expenses for rental properties, so it is worth the investment.
Prep for continued increases in rental and property prices
This past year taught us that the housing market could be volatile. Due to the increasing cost of rent, mortgage rates and inflated housing prices, many landlords and property managers across the country have struggled to keep properties filled and struggled to collect rent payments. As inflation increases, a plan must be implemented to avoid struggles, such as late or unpaid rent payments.
Seek advice from veterans in the industry and research ways you can improve your proactive business plan to avoid hardships to the best of your ability. Creating a plan or improving on a preexisting one can be done over time and learned and improved upon through personal experiences or others’ experiences in the industry.
Retain employees in current economic conditions
At Rentec, we’ve been fortunate to have a high employee retention rate, even after 13 years of growth. I can’t emphasize enough how important it is to retain talent, especially in the current economic climate. Make sure to create a plan to keep employees and ensure they are happy with their job for the next year. Small gestures go a long way. A simple thank you card after a long week or hard project is appreciated and valued by many.
If possible and on budget, set aside funds to treat your employees. Providing a meal or small work retreat at a local park strengthens the bond between employees and is one good way to have an environment encouraging people to work hard. Combining gestures like this with fair compensation, including competitive salaries and benefits packages, can contribute to higher retention and overall satisfaction rates. I’ve found that one of the most vital actions on this front is to create open, two-way communication channels among leadership and staff, creating an environment of collaboration and teamwork.
While none of us can know what the coming year will bring, there are a few steps you can take to reach all your goals as a landlord or property manager or any other business owner. Investing in technology, creating efficient processes, watching market trends and focusing on employee satisfaction can help.
Remember, resolutions do not always have to be immediate; instead they can be implemented over time, on your best schedule. Even small improvements can go a long way in any business. I encourage you to begin creating a plan and consider options best suited for your business and investment properties to make the best of 2023.
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