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What Can A Landlord Charge For Security Deposit

August 16, 2021 by

Information Here is Courtesy of Nolo  Your Legal Encyclopedia!

All states allow landlords to collect a security deposit when the tenant moves in. Half the states limit the amount landlords can charge, usually not more than a month or two worth of rent — the exact amount depends on the state. (For the maximum amount in your state, see Chart: Security Deposit Limits, State by State.) Many states require landlords to put deposits in a separate account, and some require landlords to pay tenants the interest on deposits.

Landlords use the deposit to cover unpaid rent and perform needed repairs or cleaning that results from more than normal use. But your security deposit should not go towards remedying ordinary wear and tear during your occupancy. For instance, a landlord cannot withhold your deposit to pay for house cleaning, carpet cleaning, or repainting unless these chores were necessary because of your unreasonable use of the rental. You can protect your security deposit by recording the condition of the premises when you move in, by using a move-in checklist and/or taking pictures. For more information, see the article Protect Your Security Deposit When You Move In.

In North Carolina:
One and one-half months’ rent for month-to-month rental agreements; two months’ rent if term is longer than two months; may add an additional “reasonable” nonrefundable pet deposit.

In South Carolina:  No statutory limit

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Competence in Property Management – Carolina Living Real Estate

May 5, 2021 by

Charlotte and Winston Salem NC.  Carolina Living Strives to Be trustworthy and Ethical in all we do!

We thought you might like to see some of what the law covers with regard to Competency and what we strive for:

Competence in Property Management

In North Carolina, three separate statutes govern the rules for the conduct and practices of property management. These include the following.

  • NC Residential Rental Agreements Act
  • NC Security Deposit Act
  • NC Vacation Rental Act – We do not handle Vacation Rentals at this point.

Because these laws are state statutes and not NC Real Estate Commission rules, they must be followed by everyone who leases property in North Carolina.

NC Residential Rental Agreements Act

In general, the lease agreement between a landlord and tenant establishes the guidelines of their relationship. However, the following items listed in the North Carolina Residential Rental Agreement Act take president over the terms that may be included in a lease.

What the Landlord Is Required to Do

  • Maintain facilities
  • Comply with building codes
  • Keep common areas safe
  • Keep premises in safe and habitable condition

What the Tenant Is Required to Do

  • Keep the occupied premises clean and safe
  • Dispose of trash and waste in a safe manner
  • Keep plumbing fixtures clean
  • Not deliberately or negligently cause damage to the premises or tamper with smoke detectors
  • Comply with applicable building codes
  • Be responsible for damage inside the premises
  • Notify the landlord of issues with the smoke detectors
  • Pay rent according to the terms of the lease and pay a late payment fee when late

What Happens If a Dispute Arises?

  • Abandonment of lease if the procedures outlined in the lease agreement are followed
  • Early termination by military personnel if there is a hardship
  • Small claims court if the landlord and tenant cannot settle their differences on their own
  • Eviction by court order through a process called summary ejectment

The act also covers security deposits, a landlord’s obligations during the lease and at the end of the lease, and issues related to normal wear and tear.

Contact us if you need more information.   We stay up to date on the laws.

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North Carolina Notice Requirements to Terminate a Month-to-Month Tenancy

March 15, 2021 by

Carolina Living Real Estate and Property Management is your experienced Charlotte and Winston Salem Area Professionals!

A great resource for legal information, this article is curtesy of Nolo.com

It is easy for landlords and tenants to end a month-to-month tenancy in North Carolina. (The situation is more complicated when it comes to breaking a fixed-term lease.)

In most situations your landlord does not need to give you a reason (although acting on discriminatory or retaliatory motives is illegal). A landlord can simply give you a written notice to move, allowing you seven days as required by North Carolina law and specifying the date on which your tenancy will end.

Your landlord may legally provide less notice in specific circumstances–for example, if you have not paid rent, if you have violated other terms of your rental agreement (for example, bringing in an unauthorized tenant), or if you have violated basic responsibilities imposed by law (such as by dealing drugs on the rental property).

Notice Requirements for North Carolina Tenants

It is equally easy for tenants in North Carolina to get out of a month-to-month rental agreement. You must provide the same amount of notice (seven days) as the landlord. Be sure to check your rental agreement which may require that your notice to end the tenancy be given on the first of the month or on another specific date.

In some situations, you may be able to move out with less (or no) notice—for example, if your landlord seriously violates the rental agreement or fails to fulfill legal responsibilities affecting your health or safety.

North Carolina State Law and Resources on Terminating a Month-to-Month Tenancy

Check North Carolina state law (N.C. Gen. Stat. § 42-14) for the exact rules and procedures for how landlords must prepare and serve termination notices and for any special rules regarding how tenants must provide notice. See the Laws and Legal Research section of Nolo for advice on finding and reading statutes and court decisions.

 

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5 Steps to Follow When Applying for Forbearance

December 16, 2020 by

More Helpful Info From Your Charlotte Realtor and Property Manager

5 Steps to Follow When Applying for Forbearance | MyKCM

If you’re currently feeling the stress of affording your mortgage payment, or if you know someone who is, there’s still time to get help. For homeowners experiencing financial hardship this year, the CARES Act provides mortgage payment deferral options, creating much-needed relief in these challenging times.

It’s important, however, to understand how forbearance works. It’s not automatic. You need to take action now and apply for the program before these options expire.

A study by the Urban Institute determined:

“Approximately 400,000 homeowners who became delinquent after the pandemic began have forgone forbearance and become delinquent. These borrowers may not know they are eligible for forbearance.”

Thankfully, there’s still time to apply for forbearance, even if you’re just learning about it now. Doing so may be the game-changer you need to stay in your home, just when you need it most. Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), explained:

“The increase in new forbearance requests may be the result of additional outreach to homeowners who had previously not taken advantage of forbearance opportunities.”

If you need to apply for forbearance but aren’t sure how to begin the process, the Consumer Financial Protection Bureau (CFPB) published 5 steps to follow when requesting mortgage forbearance:

1. Find the contact information for your servicer

Look at your mortgage statement to find the phone number for your servicer (the company you send your mortgage payment to every month). The Consumer Financial Protection Bureau encourages you to use the number on your statement to avoid scams.

2. Call your servicer

Explain your situation so your servicer can determine your best course of action. Be sure to ask any questions you have about the process.

3. Ask if you’re eligible for protection under the CARES Act

The CARES Act protects homeowners with federally backed loans (FHA, VA, USDA, Fannie Mae, and Freddie Mac). In addition, some private servicers are also providing forbearance programs.

4. Ask what happens when your forbearance period ends

Depending on the plan available to you, there are different options you may be able to consider. Your servicer will help you get a better understanding of what’s available.

The CFPB also recommends asking questions like:

  • What happens to the payments I miss?
  • What are my repayment options?
  • When will repayment be due?
  • Are there any fees?

5. Ask your servicer to provide the agreement in writing

A written agreement allows you to see exactly what type of program you’re agreeing to. It also helps you make sure it matches what you discuss with your provider over the phone.

Bottom Line

Help is out there for homeowners in need, but it’s important to apply now while this benefit is still available. The Consumer Financial Protection Bureau says: don’t wait, forbearance is not automatic. It must be requested. Reach out to your mortgage provider today so you can get the assistance you need to protect the hard-earned investment you’ve made in your home.

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A guide For Landlords When Tenants Ask For Early Termination of Lease

October 27, 2020 by

So your tenant wants to break the lease early. Now what? They signed a legal document that binds them to the terms, including to pay rent through the move-out date you, the landlord, specified. However, as much as the lease serves to protect the landlord, there are laws are in place to protect tenants when they want out. As a property owner, it’s important you know how to handle these situations to make sure you communicate clearly and fairly, follow legal protocol, and ultimately, meet your bottom line.

Why Does the Tenant Want to Terminate their Lease Early?

Tenants want to break their leases for a bunch of different reasons—personal, professional, or because the landlord breached the lease. Depending on the reason, the landlord might be legally bound to release the tenant without damages (as long as the tenant follows protocol). In other situations, it makes sense to be compassionate and work with the tenant to find a solution.

Military Deployment: If your tenant is called for military or active duty, the Servicemembers Civil Relief Act allows those in the armed forces, National Guard, the National Oceanic and Atmospheric Administration (NOAA), and the U.S. Public Health Service the right to break their leases to start active duty or if their orders take them far away (50 miles is the accepted minimum distance). However, the tenant must first give you a 30-day notice, which is effective 30 days after the date the following rent payment is due. Meaning, a soldier could give you notice on July 17, but would still be responsible for paying August’s rent. After 8/31, though, they’re free to go.

Domestic Violence: In some states (like Nevada and Washington), landlord-tenant laws allow survivors of domestic violence, sexual assault, stalking, or unlawful harassment to break a lease and move if necessary. If your tenant sends an early termination of lease letter with this as the reason, consult your state laws to see what your obligations are. Even if your state doesn’t protect victims, it’s not advisable to force your tenant to stay in an unsafe situation.

Job Loss: It makes sense to be compassionate here. If your tenant can no longer supply the income that would allow them to pay rent, it doesn’t make sense for them to continue living in your rental. At this point in their lives, they wouldn’t have been able to pass the screening criteria you set forth when you rented the unit to them. Allowing them out of the lease is much less time consuming, arduous, and expensive than pursuing an eviction or getting a debt collector involved. Work with your tenant(s) to find a solution that works for both of you.

Divorce/Illness: Just like a job loss, a divorce or serious illness can severely impact your renters’ finances. Even though you’re not legally obligated to release your tenants from a lease in these extenuating situations, giving your tenant(s) an out makes a tough situation a little easier for all parties involved. For example, when a couple in your unit decides to split, rental payments could become a major source of contention. Similarly, if a tenant shares with you that they have to vacate because of a death in the family (either a co-tenant or a relative), or because of a serious illness, it’s advisable to be compassionate.

Job Transfer: Your tenants don’t have control over their job transfers, and some state laws allow tenants to break their lease for this reason.

Uninhabitability: As a landlord, you’re obligated to provide a safe and habitable place for your tenants to live. That means working gas, heating, electric, plumbing systems; operational sinks, toilets, showers; non-leaking roofs and walls; freedom from health hazards and pests; etc. If the unit is not livable or you’re unresponsive when a safety issue presents itself, your tenants are legally allowed to break the lease and walk away without covering your damages for loss of rent. After all, you’re not holding up your end of the bargain.

Intrusiveness: Though you own the property, you don’t have the right to enter it as you please. You must give your tenants a minimum 24-hour notice for entry unless there’s an emergency. Tenants have the right to privacy, and if you violate that, the tenant may break the lease. However, tenants must first give you a formal written warning telling you to stop coming over unannounced. Rarely may tenants break the lease for this reason without a written notice on the books.

If the tenant found a place they prefer, is moving in with their partner, plans to buy a home, or is relocating out of town, the landlord not on the hook to release them early. 

Pro tip: Be prepared for your tenant to present false charges citing inhabitability or intrusiveness if they want to get out of paying you and the issue escalates to court. Keep maintenance records and photographs to show you maintained the unit well and made repairs quickly.

Your Duty to Mitigate Damages (Search for a New Tenant)

When your tenant sends you a formal early termination of lease letter and plans to vacate the unit prior to the end of the lease, in most states you’re obligated to search for a new tenant (legally coined “mitigate damages”). Legally, you can’t hold the tenant to the terms of the lease and collect rent from them while the unit passively sits vacant through the end of the lease.

Even if your tenant decided to end the lease during an off-season or at a time inconvenient to your schedule, you must make an effort to re-rent the unit. You might have to go through the same procedures you normally would at the start of the season, like marketing the rental, showing the unit to prospective renters, and so on. However, you don’t have to rent to the first person who indicates interest. You still must complete your screening process to be sure the applicant meets all of your criteria.

While you’re searching, your tenant is still responsible for paying rent. And in a few states, you can hold the original tenant liable for all of rent through the end of the term. However, once you fill the unit, your previous tenant is off the hook. Collecting double rent payments on the same unit is downright illegal.

Do Not Let the Tenant Find an Informal Sublet

As an act of good faith, the tenant might offer to help find a new tenant. This is not required, but can facilitate the process. You can also formally ask them to help you. As you would for any applicant you’d find on your own, screen the applicants the tenant finds and hold them to the same requirements.

Note: Do not allow the tenant to make commitments on your behalf by informally finding a sublet. You want to maintain your control over who you allow to live in the unit to make sure they’ll be good tenants and not damage your property or cause problems.

Early Termination of Lease Clause, Buy-Out Option, and Fees

To save both you and the tenant from all the complicated process of finding a new tenant, consider writing an early termination of lease clause into your leasing paperwork from the get-go. If you formalize the allowance of an early termination with associated fees, you can protect yourself as well as give the tenant an easy way out. It frees the tenant from being responsible for the remaining balance of the lease as well as gives you some cash to cover a few months of an empty unit while you search for a new renter. An early termination fee is typically two month’s worth of rent. Any more would be considered excessive by courts.

Many early termination of lease clauses include an early termination fee. However, you don’t have to include the option of paying a fee—you may simply require they pay rent until you find a replacement tenant. Additionally, if you don’t include an early termination of lease clause at all, the law requires the tenant to cover your losses until you find someone new. However, it helps to spell it all out in the lease.

What to Include In an Early Termination of Lease Clause with an Early Termination Fee

Work with your lawyer to develop a solid early termination of lease clause. Some points you may want to address are listed below:

  • Minimum notice for a tenant to request an early termination of lease (typically 30-60 days)
  • Notice must be written and signed by all tenants involved in the termination
  • Cost of the early termination fee (typically 1-2 months or rent)
  • The landlord will officially consider the lease terminated after receipt of the signed notice and early termination fee
  • All other rent for prior months or charges owed will be paid prior to the tenant(s) vacating
  • If the tenant does not follow the process, vacate before the agreed upon date, pay the termination fee, pay other incurred charges, or any combination of the latter, the attempted early termination will be void and every other aspect of the lease will apply

Draw this up with the proper legal language and include it clearly in your lease. When signing on new tenants, go over each clause to make sure everything is fully understood.

The Buy-Out Option

An early termination of lease clause will help set the guidelines for a buy-out option—that is, the fee the tenant would pay to get out. However, the landlord doesn’t have to have an early termination of lease clause to negotiate a buy-out.

Because you’re allowed to continue charging your tenant for rent until you find a replacement, tenants might find it more attractive to pay a non-refundable fee to end the relationship and vacate. As previously mentioned, this fee is typically two-months worth of rent. If the tenant has more than two months left on the lease, this might seem like a deal. And if you find someone in less than two months, you don’t have to refund the tenant a prorated amount for the time there was overlap. However, if you end up searching for a new tenant longer than two months, you can’t go back to the original tenant and ask them to cough up more.

It’s up to you whether you want to include a fee or require the tenants pay rent until you find a replacement. On one hand, offering a buy-out is convenient and simple, but on the other, you might find yourself searching longer than you bargained for—and be out more money than you anticipated. If you’re concerned you may have to take your tenant to court for refusing to pay rent while the unit is vacant, a buy-out option is a good way to reduce this risk. In the event you do have to take your tenant to court, all you need to do is present a signed copy of the lease and state which months your tenant owes you for. Also, be prepared for the tenant to present false charges about inhabitability and intrusiveness to get out of paying as previously mentioned. This is especially necessary if the tenant simply ups and leaves regardless.

Don’t (Necessarily) Seize the Security Deposit as Rent

Requiring an early termination fee is legitimate, however, seizing the security deposit and using that as rent is not advisable. You collected the security deposit to make any repairs to the unit caused by the tenant’s occupancy beyond fixing normal wear and tear. If you put this money toward rent, you no longer have the funds to make the repairs as you normally would need when a tenant moves out.

You also should consider that a tenant who wants to terminate their lease will likely anticipate losing their deposit. In this case, they’re more apt to deliberately damage the unit or not pay the rent anyway. You’ll need this deposit to make the repairs and then file a claim for uncollected rent.

Requiring an Early Termination of Lease Agreement

Nothing is official until it’s in writing. Make sure your tenant draws up a written notice to terminate the lease and signs it. Keep it with your records. Additionally, confirm you’ve received the payments you’ve requested prior to them vacating (termination fees, unpaid rent, other charges, etc.).

Should You Let Your Tenant Terminate Their Lease Early?

As always, it depends. Your relationship with your tenants and reputation as a landlord matters just as much as your bottom line. You can’t make them stay, but you can remind them of their obligations on the lease continue to hold them financially responsible until you fill the unit. A rock-solid lease will help you out and make sure you’re compensated when tenants want to leave. Additionally, consult with an attorney any time you think your rights and responsibilities outlined in the original lease may change as well as to avoid the instance of a lawsuit (initiated by either you or the tenant).

Keep in mind that if you let one tenant break their lease and not another, you run the risk of discrimination. It’s best to have a policy you can apply to all tenants.

Managing your tenants, finances, and documentation is a lot of work, especially when things get complicated. Consider bringing on Carolina Living Real Estate to handle all of the ins and outs of tenant turnover, leasing, communication all that comes with managing your property.

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Are You A Charlotte Real Estate Investor?

October 1, 2020 by

carolina living real estate

With many years of experience helping investors with buy and hold or flips, we are confident we can help you make smart decisions.

Where Are Home Values Headed Over the Next 12 Months?

As shelter-in-place orders were implemented earlier this year, many questioned what the shutdown would mean to the real estate market. Specifically, there was concern about home values. After years of rising home prices, would 2020 be the year this appreciation trend would come to a screeching halt? Even worse, would home values begin to depreciate?

Original forecasts modeled this uncertainty, and they ranged anywhere from home values gaining 3% (Zelman & Associates) to home values depreciating by more than 6% (CoreLogic).

However, as the year unfolded, it became clear that there would be little negative impact on the housing market. As Mark Fleming, Chief Economist at First American, recently revealed:

“The only major industry to display immunity to the economic impacts of the coronavirus is the housing market.”

Have prices continued to appreciate so far this year?

Last week, the Federal Housing Finance Agency (FHFA) released its latest Home Price Index. The report showed home prices actually rose 6.5% from the same time last year. FHFA also noted that price appreciation accelerated to record levels over the summer months:

“Between May & July 2020, national prices increased by over 2%, which represents the largest two-month price increase observed since the start of the index in 1991.”

What are the experts forecasting for home prices going forward?

Below is a graph of home price projections for the next year. Since the market has changed dramatically over the last few months, this graph shows forecasts that have been published since September 1st.Where Are Home Values Headed Over the Next 12 Months? | MyKCM

Bottom Line

The numbers show that home values have weathered the storm of the pandemic.  I believe if you are waiting to jump in you may be missing an opportunity.  While it is a sellers market,  there is no sign that a significant fall is going to occur.

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Prepare for Costs To Rent You Charlotte Area Home

February 24, 2020 by

The following Information is a re-print from Freddie Mac

You’ve decided renting is the route for you— so now what? Before you start scoping out the perfect rental, you need to get a firm handle on your finances. It’s important to take inventory of your financial situation and create budget before signing a contract.

Start by asking yourself the following financial questions:

When is the last time you checked your credit?

Landlords want to be assured that you will pay your rent on time every month. One indicator they often use to assess your ability to pay your rent is your credit history and score. Having a better score will often make you a more appealing applicant, giving your landlord confidence that you’ll pay your rent in full and on time. Be sure to pull your credit report a few months before you start looking for a rental so you have time to correct any errors.

Credit also plays a role after you sign your lease. Missing payments, bouncing checks or terminating your lease improperly could hurt your credit rating.

Have you saved for upfront costs?

  • Application Fees: During your search, you may have to pay an application fee. If you apply to multiple properties these fees could rack up quickly.
  • Deposits: In addition to your first month’s rent, many landlords will require a security deposit of about one month’s rent upfront. A security deposit protects the landlord from potential damages, and if the property is in good condition when you move out you are entitled to get your security deposit back.
  • Pets: If you have a pet, your furry friend may come with additional fees. Some landlords may require you to pay a onetime pet deposit or a monthly pet fee.

Have you accounted for recurring costs?

  • Utilities: Apartment utilities will likely include electric, gas, water, trash, internet, and cable if you choose to have it. Be sure to ask if your rent includes any of these utility costs – and which ones you’re responsible for.
  • Amenities: Some communities may charge a monthly fee for amenities such as onsite gyms and pools.Additionally, some rental agreements charge an extra cost for parking.
  • Insurance: Renter’s insurance is important – and many rental agreements require that you have it. If disaster strikes, renters insurance generally protects your belongings inside of your home for a relatively low monthly cost. Shop around and evaluate multiple renter’s insurance offerings.

What you spend on housing should still allow you to build savings. You need financial reserves for life’s unexpected emergencies and should consider future major expenses such as a down payment on a home, a wedding, or college tuition.

Contact Carolina Living Real Estate to help you with your next home!

 

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Should you offer a deal to find new tenants?

February 12, 2020 by

Carolina Living Property Management

You have a great property. However that doesn’t mean you’re immune to bad luck with tenants and increased competition When you are having a problem and possibly bleeding money, a discount or incentive can sometimes help speed up the tenant search and reduce the negative financial effects of vacancies.

The benefit of filling your space may very well be worth some added expense. However make sure you first do a cost-benefit analysis making sure adding an incentive won’t make your ROI too low or in the negative.

Here are some techniques to consider.

  1.  Offer incentives/discounted rates:  Evaluate your current ROI and the rent offered by your competition. Compare the costs of offering a monthly reduction against those of an extended vacancy and your holding costs. Do you have the room to lower your rates if it means signing a tenant more quickly?  You could also, instead of a rent reduction, reduce any extra fees ( for pets, for maintenance etc. ).   Also you can negotiate with your property management company and see if they will work with you on their fees.  Ask us!
  2. Consider a longer or reduced lease term.   Some tenants are looking for shorter term lease.  While this is not best case scenario for owners it certainly brings in income instead of siting vacant.  The point of an extended lease is to keep your renters making regular contributions to your business. Keep an eye on your local market and any proposed tax changes to assess the risk of settling into a longer-term agreement. While you’ll receive less money for your unit, it may prove more consistent and reliable down the road.
  3. Be Flexible:  Offer some flexibility with your terms to find new tenants who may be perfectly great renters but need this flexibility that other landlords lack. Pet-friendly homes are enticing to animal lovers searching for a place that accepts their furry friend. You eliminate about 60% of population not allowing pets. Adding flexibilty with regard to decorating  may win some prospective tenants over. You could add an early lease termination clause.  This is appealing to some  as it gives them degree of freedom not offered from your competitors.
  4. Offer upgrades or 1st month free:  You see the free month oftentimes offered by apartments and it can be a great incentive since security deposits are also required at the start of the lease.   It is better than sitting empty.

Call Carolina Living Real Estate.  We have a great track record of keeping our owners properties rented!

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Reasons You Might Want to Raise the Rent On Your Charlotte Rental

January 7, 2020 by

Not that you need convincing. Well, maybe you do…

There are many reasons to raise the rent. Not one of which is because you want to be a mean and nasty landlord. Don’t feel guilty. Raising the rent is necessary for several reasons. Let’s break them down:

1. Your regular expenses have gone up.
You definitely need to raise the rent if your regular monthly expenses have gone up. This could be a number of expenses: property taxes (like me in my example), insurance, HOA dues, property management fees, or even the mortgage payment (if you have a variable interest rate or recently made a refinance to a shorter term, for instance).

2. You’ve remodeled or otherwise improved the property.
Did you spend money remodeling or otherwise improve the property? Or are you planning on making some major improvements? If so, you’ve increased the value of the property and you likely need to raise rent.

3. The market supports it.
Get a rent estimate from Cozy and look at the comparable rents. Are you seeing similar units renting for much more? Ask your property manager in the area what they are charging for similar units. If rents are rising all around you, the market is trying to tell you it’s time to raise your rent.

4. To ensure your tenant expects it put a clause in the lease.
Always raise the rent by at least $25. Do this even if there is no other reason for you to justify a rent increase.

Why? Simple. So your tenant will come to expect it, and so you will be able to negotiate down from there.

If you don’t make this move first, then you won’t have any wiggle room if your tenant (who you want to keep happy) leads off negotiations by asking you to lower the rent for good behavior. Since you’ve thrown the first punch, you’ve now got some room to pull back once the tenant starts in on trying to negotiate better rent.

No one is going to fret too much over $25–you won’t lose them. And if they balk, have a discussion and negotiate something favorable for both of you.

5. Your tenant is leaving.
Finally, if your current tenant is leaving, this is the time you must raise the rent. You need to test the market again and start high with your offer. If you end up right back where you were that’s okay. At least you didn’t lose rent. And this is your one and only chance to reset the rent. Go big if the market supports it.   We can help!

How Much to Raise the Rent
So how much should you raise the rent by? That depends. We recommend letting us check our MLS for comparables.    You can also check Rentometer.com for additional input

You want to make sure you are getting the best value for the property. But you also don’t want to limit the number of prospective tenants. There are a few factors for you to consider which you should let a professional guide you.

Things You Can Do to Justify Raising Your Rent (aka Add Value)
As a landlord, the best kind of rental increase you can hope for is one that’s based on some added value you’ve brought to the arrangement. After all, other increases are typically forced upon you by external factors.

1. Improve/remodel the property.
Adding some new paint, carpet, and fixtures might just be all you need to justify a decent rent increase. These thing costs less than $1,000 in most properties and can be done quickly in between tenants or possibly even when you have someone in it.

Beyond basic repairs, a bathroom or kitchen remodel can certainly help to improve rents. But don’t make major remodels before you understand your market enough to know how those remodels will have you stacked up against comparable units. It doesn’t necessarily pay to have a bathroom twice as nice as anything in your market.

2. Reconfigure the property.
Can the unit be subdivided into multiple units? Can a portion of the unit be rented out as a temporary rental (i.e. Airbnb)? Can you add an additional bedroom or bathroom?

These questions are, of course, best asked before you purchase a rental property. But it doesn’t hurt to attempt to look at your rental unit from a different perspective once you have it. Always be questioning how you can add value.

3. Add-on services and appliances.
Offer to take care of cable TV, internet service, landline phone, and other services for your tenant. They might be willing to pay a premium to avoid the hassle of multiple bills. If you have multiple units, you could potentially qualify for a discount.

Additionally, you could lease appliances (washer/dryer, TV, etc.) to your tenant for a small monthly fee.

Is it Legal? Do Rent Control Laws Prevent Me from Raising the Rent?
“so long as a landlord follows the Fair Housing laws (non-discrimination of protected classes), then a landlord can raise rent at the end of a lease term.

Landlordology.com has a great state by state guide on the legality of raising the rent, along with some handy example letters you can send tenants regarding the raise in rent.

The bottom line: Raising the rent is just a part of life. Don’t be afraid to do it. And always be looking for ways to make your property more valuable to justify an increase in rent.

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62% of Buyers Are Wrong About Down Payment Needs

October 9, 2019 by
62% of Buyers Are Wrong About Down Payment Needs | MyKCM

According to the ‘2019 Home Buyer Report’ conducted by Nerdwallet, many first-time buyers still believe they need a 20% down payment to buy a home in today’s market:

“More than 6 in 10 (62%) Americans believe you must put at least 20% down in order to purchase a home.”

When potential homebuyers think they need a 20% down payment to enter the market, they also tend to think they’ll have to wait several years (in some markets) to come up with the necessary funds to buy their dream homes. The report continues to say,

“The truth: 32% of current U.S. homeowners put 5% or less down on their home, according to census data.” (as shown below):

62% of Buyers Are Wrong About Down Payment Needs | MyKCM

The lack of knowledge about the home-buying process is unfortunately keeping many motivated buyers on the sidelines.

Bottom Line

Don’t let a lack of understanding keep you and your family out of the housing market. Let’s get together to discuss your options today.

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