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Amidst challenges like increased prices and mortgage rates, those in search of homeownership are turning to areas outside of high-priced metropolitan areas. For landlords, recognizing these hot zip codes could provide valuable insight as to where to invest in your next rental property.
Realtor.com® has put together a list of areas currently favored in the real estate market. Using Realtor.com® housing market data, these are the hottest zip codes for rental property investment in 2022:
1. Brighton, NY
Located in the Rochester metropolitan area, Brighton offers a dense suburban feel to its residents. An abundance of bars, restaurants, and coffee shops make the area appealing for young professionals, while highly-rated schools are a major draw for families. The proximity to Rochester also makes it easy to find a way to spend the weekend on Lake Ontario.
In addition to the several draws of Brighton, the median listing price is more than 40% below the national average in July, making it a compelling location for investors to explore. But don’t wait — properties stay on the market for an average of six days before selling, so you’ll want to be quick to claim your next rental in this area.
- Zip code: 14618
- Metro Area: Rochester, NY
- Average purchase price: $275,000
- Average time on market: 6 days
2. Nashua, NH
Proximity to beaches, lakes, and mountains, a thriving downtown, and renowned schools make Nashua a popular choice to call home. Located 35 miles northwest of Boston, this city is a viable place to live for commuters — particularly those who don’t need to be in the office every day.
This city has garnered a lot of attention, and while there’s been a 27% increase in the median listing price reported by Realtor.com®, this growth reflects the interest in the area. More than one-third of shoppers from out of the area look for residences in Nashua.
- Zip code: 03062
- Metro Area: Manchester-Nashua, NH
- Average purchase price: $536,000
- Average time on market: 7 days
3. Worthington, OH
Situated north of Ohio’s state capital, Worthington, OH, is a small town that will give your renters the sparse suburban feel they seek. Meanwhile, landlords will also find plenty of value in investing in a rental property here.
The median listing price is $467,000, but prices start at around $250,000. The large selection of single-family homes makes Worthington an excellent place for new and established families, and downtown Columbus is only a 20-minute drive if a change of scenery is needed.
- Zip code: 43085
- Metro Area: Columbus, OH
- Average purchase price: $467,000
- Average time on market: 7 days
4. Derry, NH
Derry is a location for those seeking a community that feels more rural. Realtor.com® highlights listings situated along the edge of Beaver Lake, as well as options located in thick forests with plenty of space from neighbors. The average rental cost is also notable at $2,995.
The downtown area is appealing as well, and residents can enjoy the quaint, walkable environment with restaurants, breweries, a history museum, and more.
Properties in this area have been getting more than three times the average views, and also sell relatively quickly. Keep this in mind when searching for a rental investment in this zip code.
- Zip code: 03038
- Metro Area: Boston-Cambridge-Newton, MA-NH
- Average purchase price: $447,000
- Average time on market: 7 days
5. Windham, ME
With New England zip codes surging in popularity, Windham is not an area to be overlooked. Its location on Sebago Lake offers plenty of waterfront activities while other popular activities like hiking and antique shops are also easy to find.
This smaller town of about 18,000 offers a unique experience, and the abundant single-family homes average 1,920 square feet of living space. Despite recent price increases, the homes in Windham are, on average, less expensive than other options in the surrounding metro area.
- Zip code: 04062
- Metro Area: Portland-South Portland, ME
- Average purchase price: $505,000
- Average time on market: 10 days
6. Bethlehem, PA
Based on Realtor.com® data, Bethlehem has seen the greatest increase in median home prices since 2021 — more than 50%. The 18017 zip code is made up of suburbs on the northeast edge of town and large single-family homes that average approximately 2,700 square feet of living space.
If the rolling hills and stone bridges of the area aren’t enough of a draw, another advantage of this zip code is the proximity to New York City — approximately 90 minutes away — and Philadelphia, which is only about an hour’s drive from this area.
- Zip code: 18017
- Metro Area: Allentown-Bethlehem et al, PA-NJ
- Average purchase price: $424,000
- Average time on market: 8 days
7. Johnson City, TN
Johnson City stands out from other zip codes on this list. It’s not in the Northeast, nor is it within reasonable commuting distance to a large city. Despite this, the area has become a more affordable alternative to Asheville, NC, approximately an hour south.
In addition to the rivers, lakes, mountains, and outdoor lifestyle that the area offers, Johnson City also offers its residents a drastically lower price compared to major cities like Nashville and Knoxville. This benefit makes investing in this region a worthwhile option.
- Zip code: 37604
- Metro Area: Johnson City, TN
- Average purchase price: $329,000
- Average time on market: 10 days
8. Hooksett, NH
Another sparse suburban neighborhood, Hooksett is conveniently located about 20 minutes south of New Hampshire’s state capital, Concord. What sets this area apart from other New Hampshire hotspots is the privacy and seclusion it provides. There’s no definite downtown area, but that likely won’t be missed by those who prefer a larger home and more space to themselves.
Residences in Hooksett average around 2,200 square feet, so there are plenty of large single-family homes to invest in. And with attention coming from Boston and its surrounding area, there are plenty of opportunities to see the return on a rental investment.
- Zip code: 03106
- Metro Area: Concord, NH
- Average purchase price: $482,000
- Average time on market: 10 days
9. North Attleboro, MA
With parts of the area dating back as far as the late 17th century, North Attleboro has seen a revitalization in the past several years. This suburb of the larger Providence, RI, metro area offers a rich history while redevelopment projects breathe new life into the downtown area.
While this zip code boasts the highest average price of $587,000, the homes here sell faster than any other area on the list. Single-family homes are abundant, but mixed-use multifamily housing options are also appearing and may attract even more prospective residents looking for a place to rent.
- Zip code: 02760
- Metro Area: Providence-Warwick, RI-MA
- Average purchase price: $587,000
- Average time on market: 5 days
10. Auburn, ME
Located on the west side of the Androscoggin River, Auburn is an area favored for an abundance of outdoor options. Residents can wander the trails of Mount Apatite, enjoy time at a local ski resort, or spend time on the water at the river walk.
Auburn is a smaller town but also boasts the smallest median home prices on the list – 40% lower than the national average according to Realtor.com® data. Current listings average 1,600 square feet but could be ideal for those who would rather be outside than in.
The attention on Auburn comes from the pricier Portland area, as well as Boston, so it’s likely that landlords won’t have to worry about their properties not garnering attention.
- Zip code: 04210
- Metro Area: Lewiston-Auburn, ME
- Average purchase price: $267,000
- Average time on market: 12 days
Methodology: Realtor.com® analyzed listings data on over 29,000 ZIP codes to determine its Hottest ZIP Code rankings, which are based on January-June 2022 averages of: 1) demand, as measured by unique viewers per property on Realtor.com®; 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com®; limited to one ZIP Code per metropolitan area and ZIP Codes with at least 15 active listings each month. Time frames for metrics not factored into the ranking as noted, e.g. listing price trends based on June 2022 data.
Note: The markets where Realtor.com®’s “Hot Market Insights” are featured on listings and neighborhoods on its website may vary from the 2022 Hottest ZIP Codes, due to methodology differences such as time frames (monthly data updated each month vs. Jan.-June 2022 data).
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]]>The post Local Rental Owners Collaborative Launches in South Los Angeles to Preserve Housing and Prevent Tenant Displacement appeared first on Avail.
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LOS ANGELES, CA [April 15, 2021] – Today, the Los Angeles Local Rental Owners Collaborative (LROC) launched in South Los Angeles to support local, independent rental owners at risk of foreclosure or losing their assets to corporate buyers, and to help prevent the displacement of tenants who are struggling to pay rent. The pilot program, which offers qualifying owners comprehensive benefits like short-term rental relief grants combined with long-term financial consulting services, technology tools, and property management resources, was launched through a cross-sector collaboration between the Chan Zuckerberg Initiative (CZI), Roy + Patricia Disney Family Foundation (RPDFF), Coalition for Responsible Community Development (CRCD), Avail (a part of Realtor.com®), and Enterprise Community Partners.
In the wake of the COVID-19 pandemic and its economic fallout, many rental owners with smaller portfolios (2-20 units), especially immigrant and BIPOC (Black, Indigenous, and people of color) owners, are having difficulties maintaining their properties, a trend that can lead to greater displacement and gentrification in highly-competitive markets like Los Angeles. Today, nearly 31 percent of independent landlords are being forced to consider selling their rentals to make up for lost revenue, which threatens the quantity and quality of housing that is affordable to Angelenos, the majority of whom are renters from communities of color.
“The LROC program will bring much-needed relief to rental owners of small apartment buildings and their tenants in South LA. This program will address the loss of rental income since March 2020 and provide the opportunity to preserve affordable housing in our community,” said Mark Wilson, President, CEO & Co-Founder of CRCD. “This work supports CRCD’s efforts over a decade, to use Community Economic Development principles to impact change in the neighborhood. We are proud to partner in this collaborative effort made possible by the initial pilot funders, CZI, and philanthropic partner, RPDFF.”
Local, independent landlords own 76 percent of all unsubsidized, below-market housing units in Los Angeles County. In addition to short-term rental relief, the Collaborative also offers a strong network of support services, so rental owners can use their collective purchasing power to unlock efficiencies that institutional landlords already benefit from, like innovative technology tools and financial resources, and preserve their assets for working-class families.
“Our communities are at their best, and are their most vibrant, when everyone has a safe, affordable place to call home,” said Priscilla Chan, Co-Founder of CZI. “That’s what this partnership is all about. Through a unique combination of financial resources, coalition-building, and support services, the LROC helps stabilize and improve housing for those who need it most — particularly within Black and Brown communities that have been hit hardest by the pandemic and by decades of exclusionary housing policies.”
“Small rental owners are integral to many communities and often provide housing at affordable rates for residents who would otherwise be priced out of areas like South Los Angeles,” said Shawn Escoffery, Executive Director of the RPDFF. “This program is the key to stabilizing the affordable housing market and ensuring that mom and pop landlords aren’t forced to sell their properties during these difficult times. We look forward to supporting the LROC and working alongside our partners on this important initiative.”
CRCD, a Los Angeles-based nonprofit dedicated to sustainable community development, is the primary administrator for the program and will manage the approval process for applicants, as well as outreach to the local community. National affordable housing nonprofit Enterprise Community Partners, which helped design the program, will oversee financial management of the LROC and work directly with CRCD on its implementation and evaluation. Avail, the LROC’s technology partner, will host the application and provide program participants with online tools to help streamline rental payments, maintenance requests from tenants, and more. The program was co-developed by CZI, a philanthropic organization that provided seed funding for the effort. The RPDFF is also a philanthropic partner for the LROC.
“The LROC is providing exactly what our communities are telling us they need: direct relief for the BIPOC renters and small landlords in South Los Angeles who were hit hardest by the pandemic,” said Jacqueline Waggoner, President of the Solutions Division at Enterprise Community Partners. “As a collaborative, we can keep Angelenos in their homes, preserve neighborhood stability and work toward an equitable recovery from COVID-19. And with the support of generous funders like CZI and RPDFF, we can explore the possibility of expanding this pilot to communities nationwide.”
Applications to join the LROC open today for qualifying rental property owners within the 90011 zip code. For more information about the program, application process, and eligibility requirements, please visit avail.com/lroc.
“The pandemic has revealed the need for broad-scale investments in infrastructure that helps our communities be more resilient and our response to economic crises more efficient and effective. Unfortunately millions of small business, DIY landlords, and tenants have been unaware of the relief available to them and how to access it. We are proud to be partnering with the best-in-class organizations on the LROC pilot, leveraging intuitive technology and community-building tools to address these issues in Los Angeles. We hope to take this experience and apply these solutions nationwide,” said Ryan Coon, co-founder and CEO of Avail.
About the Coalition for Responsible Community Development
CRCD’s overall approach is neighborhood-based community development. The nonprofit organization has a long-term commitment to improving the quality of life in South Los Angeles, focusing on youth in the community and assisting them with education, opportunities to pursue career pathways, and meet basic needs. CRCD also addresses the longstanding neighborhood conditions where young people reside — such as poverty, unemployment, public safety issues, and the lack of affordable housing. Since its founding in 2005 by community members, CRCD has partnered in a combined investment of $125 million in South LA housing and real estate, including 370 units of permanent supportive and affordable housing, plus community space for support services, youth programs, a homeless youth drop-in center, a community garden, and commercial space for social enterprise. CRCD connected more than 3,000 young people with diplomas, jobs, and housing. Visit www.coalitionrcd.org for more information.
About the Chan Zuckerberg Initiative
The Chan Zuckerberg Initiative was founded in 2015 to help solve some of society’s toughest challenges — from eradicating disease and improving education, to addressing the needs of our local communities. Our mission is to build a more inclusive, just, and healthy future for everyone. For more information, please visit www.chanzuckerberg.com.
About the Roy + Patricia Disney Family Foundation
The Roy and Patricia Disney Family Foundation is guided by social justice principles and believes that inequities can be dismantled through strategic and systems-level interventions. We strive to understand and invest in on-the-ground solutions driven by experts — individuals and advocacy groups living and working in the communities they serve. The Foundation elevates organizations and ideas that address pre-existing and reinforcing conditions that lead to inequities. These groups lead with policy and narrative change, power building, and amplify the voices of marginalized groups. The Foundation currently invests in Affordable Housing Preservation, Criminal Justice Reform, and Environmental Justice in South and East Los Angeles (CA), New Orleans (LA), and Tacoma (WA) through its grantmaking and impact investing initiatives.
About Enterprise Community Partners
Enterprise is a national nonprofit on a mission to make home and community places of pride, power and belonging for all. To make that possible, we operate the only organization designed to address America’s affordable housing crisis from every angle: we develop and deploy programs and support community organizations on the ground; we advocate for policy on a nonpartisan basis at every level of government; we invest capital to build and preserve rental homes people can afford; and we own, operate and provide resident services for affordable communities. All so that people not only make rent, they build futures. With this end-to-end approach, 40 years of experience and thousands of local partners, Enterprise has built and preserved 775,000 homes, invested $61 billion in communities and changed millions of lives. Join us at EnterpriseCommunity.org.
About Avail
Founded in 2012, Avail is the first and only online platform for independent landlords and tenants that provides the tools, education, and support to make renting easy. Landlords across the U.S. use Avail to advertise vacant units, request rental applications and credit reports, sign leases, and collect rent — all online. Avail is a division of Move Inc., the operator of Realtor.com®, the company that pioneered the world of digital real estate more than 20 years ago.
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]]>The post Avail + LISC Partner to Help California Landlords and Renters Access COVID-19 Rent Relief Funds appeared first on Avail.
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While independent landlords across California are facing financial challenges due to the COVID-19 pandemic, much-needed aid from the CA COVID-19 Rent Relief Program, which is meant to provide monetary relief to renters and landlords, continues to sit untouched. An overall lack of awareness of the program, poor communication surrounding eligibility requirements, issues with distribution, and onerous long-term restrictions for participating landlords have all impacted the program’s ability to provide aid to those who need it most.
To address the distribution issues surrounding these funds, the Local Initiatives Support Corp (LISC) and Avail have partnered to host two joint webinar sessions meant to educate California landlords and renters on how to access much-needed rental assistance.
These sessions will be held on Wednesday, April 28 from 12 to 1 p.m. PT and Thursday, April 29 from 1 to 2 p.m.
What Is the CA COVID-19 Rent Relief Program?
This program is part of the state’s efforts to help independent landlords and renters who are facing financial challenges due to the COVID-19 pandemic. The program provides rent reimbursements to qualifying landlords and renters to cover unpaid rent accrued between April 1, 2020, and March 31, 2021.
Eligible landlords can receive 80% of their tenant’s unpaid rent, so long as they agree to forgive the remaining 20%. Qualifying tenants whose landlords are not involved in the program can also receive 25% of their unpaid rent accrued from April 1, 2020, to March 31, 2021, with the option to receive 25% of their monthly rent for future payments as well. Both renters and landlords can initiate the application process to receive these funds.
Qualifications
Those who can apply for California’s rent relief program include:
- Landlords who rent to tenants experiencing financial difficulties because of the pandemic, who owe past-due rent and are at or below 80% of the Area Median Income.
- Tenants who are suffering financially because of the pandemic, who owe money in past rent or utilities and are at or below 80% of the Area Median Income.
How Is the Rent Relief Distributed?
Landlords who apply will be reimbursed for 80% of past-due rent accrued between April 1, 2020, and March 31, 2021, in the form of a direct deposit. This comes with the understanding that said landlord will waive the remaining 20% of unpaid rent as part of the program’s requirements.
Eligible renters with landlords who are not involved in the program can apply independently to have 25% of their unpaid rent accrued between April 1, 2020, and March 31, 2021, be covered. These funds can either be sent to a landlord through direct deposit or to the renter themselves if the landlord refuses the payment. In this case, the renter will have to pay any missed rent to their landlord before June 30, 2021, thus providing secure housing under the extended eviction protections provided by SB91.
How LISC + Avail Webinars Will Help
Through these webinars, LISC and Avail will reach out to our community of independent California landlords, and their renters, to increase awareness of the state’s rent relief program and how it functions. The webinars will also help attendees understand the eligibility requirements for this program while assisting participants in their applications for the rent relief program.
Emails to sign up for these webinars will be sent out soon.
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]]>The post Oregon Decriminalize Drugs: What That Means for Landlords appeared first on Avail.
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During the most recent election cycle, Oregon became the first state to decriminalize the possession of small amounts of illegal drugs. Oregon Measure 110, which passed with 59% of the vote, makes personal, non-commercial possession of cocaine, heroin, methamphetamine, MDMA, psilocybin, LSD, methadone, and oxycodone, no more than a Class E violation, with a maximum fine of $100.
Oregon (along with the District of Columbia) also decriminalized psychedelic mushrooms.
If this trend of decriminalization continues in other states, what could it mean for property owners around the country, and what would it change?
Decriminalization vs. Legalization
First, it’s important to note that there’s a difference between decriminalization and legalization — although it’s a subtle difference, according to Thomas J. Simeone, attorney and managing partner at Simeone & Miller in Washington, D.C. “Decriminalized means that it is no longer a crime, subjecting you to criminal penalties, such as jail time,” he said.
However, Simeone says something that’s decriminalized can still be illegal, and result in other ways to be penalized, such as fines. “An example is traffic violations: run-of-the-mill speeding is illegal — it is against the law and can subject you to a fine.” However, he points out that going over the speed limit is not criminal because it is not a felony or a misdemeanor, so you’re not subject to criminal penalties.
How Decriminalizing Drugs Can Affect Rental Property Rules
When substances are declared to be legal, they have to be permitted when the law changes, according to Simeone. “However, landlords are not required to permit every legal action,” he said.
For example, he says it’s legal to own a pet, but some leases prohibit pets or charge extra for them. “Similarly, leases can ban smoking, which is legal for adults, so a landlord who wishes to ban the use of now-legal substances may need to add a provision to the lease.”
And Nick Wilder, founder of The Wilder Law Firm in New York City, anticipates an overwhelming response from landlords incorporating language in new leases that prohibits the use of such drugs as heroin, cocaine, and methamphetamine, etc. on the property.
Learn more about customizing rules in a rental lease.
He agrees with Simeone that just because a drug is decriminalized doesn’t mean it can’t be prohibited by a private company, like a property owner. “Restrictions will not end with mere drug use on the property; like people going outside for a smoke, a use-on-property only prohibition could lead to the unsightly specter of people going out in front of the building to shoot up.”
Wilder predicts that landlords will also prohibit renters and guests from entering the property while they are under the influence. “Sometimes, it may be hard to prove someone is under the influence when entering,” he said. ”But unfortunately, often it wouldn’t be hard to prove in many cases, since people who use these drugs tend to have a severe addiction which will show itself eventually.”
However, he also believes that different properties will have different levels of stringency, and says that some may become known for their lax drug use policies.
“One might ask whether any landlords would try to profit by making their property openly ‘drug friendly,’ however, the most important issues to landlords are paying rent on time, being responsible, and not causing any trouble — the last things hard drugs users are known for.”
Will a No Smoking Policy Suffice for Landlords With Concerns?
Gary Zaremba is a broker and owner at PepZee Realty in Dayton, Ohio, and he says that marijuana use is already legal there, so he has a no-smoking policy. “Since this applies to all smoking, it is not discriminatory,” he explains. “It allows folks who want to use marijuana to use it orally without affecting the ‘quiet enjoyment’ of others.”
However, Simeone warns against using general language. “For example, a no-smoking policy could be held by a court to refer only to cigarettes, cigars and pipes, since those are what most people think of when they think of smoking,” he said. “By listing the specific behavior to be prohibited, the landlord is more protected and less likely to have disagreements with the tenants and bad rulings from a court.”
Quiet enjoyment is the right to undisturbed use and enjoyment of a property by the tenant. It’s implied in all rental leases, even if it’s not specifically stated.
But to be clear, these smoked substances present a real threat to landlords. “This is both a fire hazard and potentially damaging to the property in the form of odor and discoloration,” Simeone said. “Having a tenant who smokes can lead to higher insurance premiums, as well.”
Other Rental Property Unknowns Regarding Decriminalizing Drugs
One phrase — the tenants’ rights to have ‘quiet enjoyment’ — will be a determining factor in whether illicit drugs are accepted or not, according to Zaremba. “If one tenant is snorting cocaine in the shared common spaces while another tenant is breastfeeding their child, is there an effect on either tenant’s quiet enjoyment?”
In this type of scenario, Zaremba says that some tenants would object to one of these actions, some would object to both, and some wouldn’t object to either. “If tenants complain to the landlord, we will be turning to our attorneys and the courts to sort this out.”
He also points to a scenario in which tenants might withhold their rent because they feel their lease rights are being violated. “This is similar to what some do when the tenant next to them blasts music and the complaining tenant believes the landlord or managing agent is doing nothing about.”
And Zaremba introduces another question to think about: “Will I be able to advertise a drug-free building like I do with a smoke-free or pet-free building (except for service animals)?” Or would that be a housing violation? “I believe these issues will be sorted out as different stakeholders claim their territory going forward,” he said.
For landlords in Oregon and elsewhere who are concerned about prohibiting certain drugs from their rental properties, using a customizable lease with specific clauses is the best way to address the issue and protect landlords from tenant or court disputes. Learn more about using a customizable, lawyer-reviewed, and state-specific lease to protect your rental property.
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]]>The post Increasing Property Taxes and Falling Rent: What Can Landlords Do? appeared first on Avail.
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In June of this year, Nashville voted to raise the city’s property taxes by 34%. In September, the mayor of Minneapolis proposed a 5.7% property tax increase. As cities grapple with how to find the funds to meet their budgets, increasing property taxes may become a more viable option that gains widespread acceptance in cities across the U.S.
Of course, the budget shortfalls are either directly related to — or at least compounded by — the pandemic. And this public health crisis has directly affected landlords. “NYC is experiencing a crashing rental market where many tenants have fled the city and few are waiting to replace them,” said Michael Shapot, licensed associate real estate broker at The Shapot Team/Compass in New York City. “Working virtually has enabled renters to move to less expensive areas outside normal commuting zones, leaving vacancies in the high-rent districts, many of which are available at a significant discount.”
And it’s not just the U.S. that’s struggling with falling rent. Waylon McGill of Fast Ontario Home Buyer in Toronto, Ontario owns six rental units with around 20 tenants. He says that many college students and young people have moved back in with their families. “And the problem is exacerbated by the fact that a lot of the major urban centers have significant numbers of AirBnBs and most of these are struggling badly,” McGill said. “So those landlords are converting those short-term rental units into long term rentals — and this is causing a major increase in supply in those markets.”
Falling Rent Puts Landlords Between a Rock and a Hard Place
According to an analysis by Apartment List, since March 2020, rent has fallen by 21.7% in San Francisco, 15.3% in New York, 14% in Seattle, 13.6% in Boston, and 12.2% in San Jose. Washington, D.C., Oakland, Arlington, Minneapolis, and Fremont round out the list of the top 10 cities with the steepest rent dips.
If more cities decide to increase property taxes, but rent is falling in some cities, and holding steady in other areas, what can landlords do to offset these higher taxes?
Gary Zaremba, broker and owner at Pepzee Realty in Dayton, Ohio, admits that he can’t speak to all markets. However, through his business and conversations with others in the residential rental business in Southern Ohio and New York City, he doesn’t see a lot of options for landlords. “Right now, with many people underemployed in the middle- and lower-middle-income brackets, some of my tenants are struggling with staying current on their rent.”
Zaremba says there’s no point in raising rents when the tenants are already having difficulties paying their existing obligations. “In some cases, I have raised rents and in those situations the increases were marginal — but these increases were to bring certain units up to market rates where I had long-term tenants as a way to create more income.”
However, Zaremba believes that landlords are definitely on the short end of the stick, especially since many municipalities are creating stricter eviction procedures. “This has meant landlords like myself are now in the housing subsidies business, since it is a longer and harder process to get non-paying tenants out of a unit.”
He points out that this isn’t to say that he’s indifferent to the plight of tenants — he’s just acknowledging how it affects landlords. “Since social service agencies are bereft of funding to handle the larger loads of struggling Americans, it is easier for municipalities to keep people in their apartments and let private landlords handle the brunt of these costs.” But while that may be a good solution for everyone else, it’s creating a nightmare scenario for landlords. “The snowball effect is that we will not be able to pay our real estate taxes or make our mortgage payments, which will result in increased foreclosures,” Zaremba explains.
Can Landlords Offset Increasing Property Taxes?
If landlords can’t raise their rent and they live in a city that’s increasing property taxes, what, if anything, can they do to maintain a profit?
“Maintain a profit? Light a candle, rub a rabbit’s foot, and say a prayer that lower rents and tenant-friendly courts don’t break the bank,” said Shapot.
However, depending on the type of property you have, McGill has a few strategies. “One is to convert short-term rentals into medium-term furnished rentals,” he recommends. “There isn’t much inventory in this niche in most markets and so there is still a good market for them. And, if you have short-term rentals, McGill recommends switching to long-term rentals. “But you will probably need to lower rents to attract tenants with the increased vacancies.”
And if you’re thinking of letting some of your planned maintenance lapse, he warns against it. “Typically, I can cut costs through preventative maintenance of building systems, which helps me to avoid bigger ticket issues later.” Still, he admits that it’s tempting not to fix anything and just wait until there is a crisis.
Zaremba agrees that maintenance always has to be a priority. “Roofs still have to be fixed and leaking plumbing repaired regardless of whether the tenant is paying or not,” he said. “Still, housing stock will fall into greater disrepair since there is less income from the building to handle expenses, let alone throw off a profit.”
Will the Rental Market Ever Return to Normal?
If landlords just hold on, will the rental market ever return to pre-covid levels? McGill thinks it will, since COVID-19 is a temporary shock. “There has been a significant trend for people moving towards urban areas for decades now, and it’s also where the vast majority of immigrants end up settling.” He predicts that most companies will not move to permanent work-from-home status. “Once the pandemic passes, those people will be required back in the office, so they will likely want to return to the cities.”
Also, he points to the cost of building new housing, and notes that since it’s so high, there will continue to be housing shortages. “And this will help rents return to their pre-Covid levels,” McGill said.
However, Zaremba is not as optimistic. “I do not see any reason they will rise soon since there is a glut of units and not enough solidly employed people to fill them.” He does believe that downtown urban areas will come back — but maybe not at pre-pandemic levels. “The pandemic is creating paradigm shifts that are still evolving and density is now the enemy.”
For his part, Shapot is cautiously optimistic that there may be a return, but it may be an altered return. “Eventually there will be an equilibrium where supply matches demand, but we may see less luxury rental housing and more affordable housing, which our area desperately needs,” he said.
“There is and will continue to be uncertainty, and we expect there might be bank workouts and forbearance, real estate tax concessions, as well as some foreclosures, shorts sales and a shakeup of the investment market, so hold onto your hats,” Shapot added.
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]]>The post Renter’s Choice Legislation: Here’s What You Should Know appeared first on Avail.
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The City of Atlanta recently passed an ordinance requiring that landlords allow renters to choose between paying a security deposit or purchasing a cheaper security deposit insurance plan. Earlier this year, the City of Cincinnati passed a similar type of security deposit insurance ordinance.
This renter’s choice legislation passed in both cities allows tenants to choose the best security deposit option to meet their financial needs. But how does it work and how will it affect landlords?
Here’s what you need to know about renter’s choice legislation.
Why Are Cities Passing Renter’s Choice Legislation?
In the past, renters only had one option: paying a security deposit before move-in. However, for some renters, paying the equivalent of one or two months of rent at one time can be difficult or impossible.
“Rental security insurance provides coverage to the landlord for potential damage to the property by the renter,” says Jonas Bordo, CEO and co-founder at Dwellsy. “Typically, the renter pays a fee to the security insurance company — generally a lower fee than the traditional security deposit — and the landlord can make a claim against that insurance to cover any damage beyond normal wear and tear on the rental.”
Not only is the amount of a rental security deposit typically much lower, but it can also be spread out, which makes it easier for a renter to pay.
How Does Security Deposit Insurance Work?
“Instead of tenants paying a large, upfront security deposit, they would instead pay a much smaller monthly premium — roughly $5/month for a $1000/ month property — very similar to renters insurance,” explains Rob Carrillo, property manager at Century 21 Haggerty in El Paso, Texas. However, he stresses that it is not renters insurance. “Rental security insurance will not protect their belongings, but rather would protect the landlord against any possible damages after move-out.”
But unlike a security deposit, renters will not get their money back if they select the rental security insurance option.
Renter’s choice ordinances may also vary by city, so the legislation can affect landlords differently.
For example, Atlanta’s ordinance applies to landlords with more than 10 rental units who require a security deposit that is more than 60% of the monthly rent amount. Renters who still prefer to pay the full security deposit will be given the option to pay at least three equal monthly installment payments as opposed to the one upfront security deposit payment that is usually required.
On the other hand, Cincinnati, which exempts landlords with 25 units or less, allows renters to choose from three different options:
- rental security insurance – paying $5 a month for the duration of the rental
- a security deposit installment plan spread out over at least six months, or
- a reduced security deposit, which can’t be more than 50% of the first month’s rent.
“I appreciate that the proposed laws only cover landlords with several properties (10 or 25),” says Domenick Tiziano, landlord and blogger at Accidental Rental. “This will allow the mom and pop landlords to continue to supply rentals to tenants with less-than-perfect credit by allowing them to collect the full security deposit allowed under the state law.”
In fact, he’s not sure if renter’s choice is a good idea. “I think this is one of those rental reforms that we will continue to see across the country as legislatures try to fix what they believe to be wrong with the system,” Tiziano says.
Where Else Has Renter’s Choice Legislation Been Adopted?
Aside from Atlanta and Cincinnati, no other cities have currently passed a similar ordinance, although several cities are pondering such a move. However, landlords in other cities are voluntarily offering rental deposit insurance.
“These security deposit programs are not as new as they may seem and are not something that started becoming available due to legislation,” explains Carrillo. “The programs are already used by property management companies across the country as an affordable alternative and have been picking up steam in property management discussion groups.”
Rhino, SureDeposit, and TheGuarantors are some of the companies that provide security deposit insurance. Besides Atlanta and Cincinnati, these companies operate in New York City, San Francisco, and Dallas — although they can be used by landlords in smaller cities as well.
Will Security Deposit Insurance Expand Housing Options for Renters?
Renter’s choice legislation will help renters afford more expensive housing options. “It is expected to assist renters who typically would not be able to afford the upfront costs of renting a property, while at the same time satisfying their obligation to be responsible for any damage they cause to the property,” Carrillo said.
Bordo agrees that it will certainly expand housing options. “Typically, a renter must come up with not just the first month’s rent, but also a security deposit, last month’s rent, and moving expenses all simultaneously.” And he says it could take years for some people to come up with that type of money. “So, any reduction in the amount of money that needs to be paid up front will make a new rental more accessible for more people — and this is particularly valuable at this time when many renters have run down their savings as a result of pandemic-related job loss or health care costs.”
How Does Renter’s Choice Legislation Affect Landlords?
Not all ordinances are a win-win, but Carrillo is cautiously optimistic. “It is expected to increase NOI (net operating income) for investors as vacancy losses should be minimized, since this will expand the market to more renters.”
However, he says landlords and property managers may have questions. “Since this is essentially an insurance, will landlords be at the will of an insurance adjuster to determine wear and tear as opposed to negligent damage?” Carrillo also wants to know how quickly damage would be addressed, so the turnaround time wouldn’t delay a new tenant from moving in.
In fact, none of the new options look particularly appealing to Tiziano. “I don’t think many landlords will go for the reduced or deferred security deposit payment options,” he says. “That’s because the deposit is really the only thing protecting a landlord from the cost of damage, non-payment of rent, eviction, etc.” Tiziano sees these changes as putting a significant burden on landlords and predicts that it will encourage them to adopt more rigorous screening standards.
“Also, one big risk that these laws don’t address is what happens if the tenant cancels the security deposit insurance?” Tiziano says landlords need to ensure that they’re notified if this happens. “They should also have the right to buy the insurance and charge the tenant if this happens — I didn’t see anything in the new laws that protect a landlord from this risk.”
While Tiziano thinks it’s great that the laws could help renters get into an apartment they might not have otherwise been able to afford, he is mainly concerned that landlords don’t have a recourse if renters cancel insurance, and they could end up being exposed financially.
That’s why Barry Saywitz, president of The Saywitz Company — a national commercial real estate brokerage, investment and management company that owns and manages over 1,000 units throughout Southern California — thinks voluntary adoption will be based on other factors.
“In markets where the vacancies are much lower, landlords do not need to take the risk and will just wait for a better-quality tenant, and therefore, tenants who need payment plans or this type of insurance will be left renting lesser-quality properties or needing to save up to be able to afford to actually move,” Sawwitz warns.
“As for the real estate markets in California as a whole and Southern California in particular, we do not see this rental security insurance playing an active role at the moment, nor do we foresee landlords taking full advantage of it.”
One dilemma Saywitz sees is that insurers might require all tenants in a particular property to sign up for the program. “This would make sense so that the insurer can average the risk with good paying tenants against those who might default.”
If only the high-risk tenants are insured, he questions how this program could be feasible. “While it is a worthwhile service, we do not see landlords jumping at the option and that may be a function of the tightness of the market, but it certainly makes good common sense in many instances.”
As other cities assess renter’s choice legislation as a possibility for renters and landlords, stay up to date with changing security deposit laws and other rental market legislation by signing up for our newsletter.
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]]>The post Do Landlords Need a Rental Registry to Rent Their Properties? appeared first on Avail.
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On September 14, 2020, city councilors in Syracuse, New York, passed legislation designed to stop landlords from evicting tenants that live in a one- or two-family rental home that is not listed on the city’s rental registry. The ordinance goes as far as prohibiting landlords from collecting rent from properties not on the rental registry.
However, landlords who join the registry can go back and collect rent from previous months — but they can’t evict based on back rent that was owed when these properties were not listed on the registry.
If this sounds confusing, we’ll break down what a rental registry is, how it works, and what landlords need to know about it.
What Is a Rental Registry and How Does It Work?
“Rental registry is essentially just registering your property with your city and getting approval to house renters on your property,” explains Luke Smith, founder of We Buy Property In Kentucky. “Typically, this requires you to submit information to your city government, such as address, name of ownership, contact information, and operating manager.”
In other words, you’re letting your local government know that you charge rent and that you have a taxable asset. “The government should receive taxes each month from your rental property,” Smith says. Some cities also charge a rental registration fee.
However, this isn’t the sole purpose of a rental registry. “In most cities in the United States that have a rent registry, it is used by the local government to be able to effectively enforce property standards and city code ordinances,” says Erik Wright, owner of New Horizon Home Buyers in Hixson, Tennessee.
Cities collect the landlord’s information to have a verifiable point of contact for property standard or code violations. Cities also collect this information in case they need to fine the landlord for these violations. “Cities are doing this in an effort to ensure quality housing for tenants that at least meet the minimum standards of living,” said Wright.
Rental Registries May Vary by City
If you’ve never heard of a rental registry, that’s because not every city has one. According to Smith, they tend to be more common in major cities. He believes that every city should have one, but acknowledges that smaller towns may be slower in setting up the process.
“Major metro areas require landlords to get a license from the city stating that they are allowed to rent out their property, and over the past decade, Airbnb has greatly increased the number of landlords in major cities,” said Smith. The proliferation of short-term rentals has also led to another reason why Smith believes major cities have rental registries. “They’re trying to ensure there are available houses for residents that want to purchase a home in the city.”
Wright agrees that rental registries can help larger cities collect important rental housing information. “It is used to collect data about the number of rental units, the current rent rates, and what housing services are offered,” he said. “This information is used to enforce the current rent control or rent stabilization regulations.”
Andy Kolodgie, owner of The House Guys in Washington, D.C., gave us some examples of how the rental registry is used in the DMV (District of Columbia, Maryland, and Virginia). “Alexandria, Virginia recently rolled out a mandatory rent registry to enforce the collection of short-term lodging taxes,” said Kolodgie, adding that the goal was to make sure that hotels and short-term rental properties pay the same amount of taxes on the rentals.
“Another example is Fredericksburg, Virginia, where the city government enforced a rent registry to pursue code violations and overcrowding issues,” Kolodgie said. Aside from the DMV, he says rental registries are common in cities with a large number of rentals, like college towns.
Baltimore, Seattle, Denver, Miami, Los Angeles, San Francisco, Louisville, and Narragansett, Rhode Island are just a handful of other cities with rental registries.
Benefits and Drawbacks of a Rental Registry
Remember that the city of Syracuse voted to bar landlords from evicting tenants in one-and two-family rental properties that were not on the city’s rental registry. But why did the city take such drastic steps? Well, that city’s registry was established in 2007, but it turns out that 60% of the properties in the one-and two-family rental property category are not on the rental registry. According to some experts, there are actually benefits and drawbacks to being on one.
“One of the ways a registry could benefit landlords is to more quickly notify them of any property standard issues they may not be aware of,” said Wright. “For example, if a tenant is responsible for the upkeep of the yard or exterior and it is being neglected, when the city issues a property standards violation, you will be notified because they have your contact information.”
Landlords could also gain a competitive advantage by registering, assuming everyone else does, as well. “If there are laws in your city preventing other rentals within a certain amount of distance, by registering your rental with the city, you eliminate your competition from moving into your area/neighborhood,” Smith explains. “And as the Syracuse ruling has shown us, if you aren’t playing by the rules in your city, you shouldn’t expect help from your local government if you need it when it comes to evictions or tenant problems.”
And that may be the most important reason for — and greatest benefit of — being on the rental registry. “Whatever fee you pay yearly (Syracuse landlords pay $150 every three years for each property) is well worth any legal support you will receive,” said Kolodgie. He explains that it’s absolutely necessary to be able to convict in the case of serious damage or financial harm. “If you lose this ability, you are running a high-risk operation and should focus more on being risk-averse.”
However, Kolodgie also points to at least two drawbacks. “The mandate increased the amount of bureaucracy and expenses as there are yearly fees to be registered.” Smith agrees with the expense drawback, stating “The only drawback from a rent registry as a landlord is that you have now informed your government that you have a cash producing asset rather than just a home, and now you will be expected to pay taxes on revenue.”
What Landlords Need to Know About Rental Registries
We’ve discussed the pros and cons of being on a rental registry, but there’s additional information that landlords should know. “Landlords need to know if their properties are covered by the law, as jurisdictions sometimes exclude certain owner-occupied rentals,” explains Domenick Tiziano, landlord and blogger at Accidental Rental.
Smith and Kolodgie also touched on the legal ramifications of not being on the rental registry if it’s a requirement in your city, but Tiziano drove that point home. “Landlords need to know that their rights might be severely limited if they do not comply with local registration requirements, and they can even be subject to stiff fines.”
While the Syracuse story recently made headlines, Tiziano says this practice is already in full swing in New Jersey. “The first question a judge will ask in an eviction proceeding is ‘is the property registered?’ and anything but a ‘yes’ response will result in an immediate dismissal of your eviction case.” He says the judge can’t even hear the case if the property isn’t compliant with the registration law.
And here’s something else to consider: “Many government organizations will not allow subsidized housing to a tenant if the landlord does not have their rental registered,” warns Smith. “For example, Section 8 will not allow renters to stay at a property that is not registered.”
Will Other Cities Follow With Their Own Rental Registries?
Is it likely that other cities (sympathetic to the plight of renters) will follow Syracuse and New Jersey, especially as a way to address evictions related to the pandemic? The economy isn’t close to recovering, and while homeowners have the option to backend their missed mortgage payments, renters are solely dependent on a temporary eviction ban issued by the Department of Health and Human Services and the Centers for Disease Control and Prevention, which is expected to end on December 31.
Smith believes that other cities will follow Syracuse in this ruling because it benefits them. “The more rentals that get registered means more revenue for the city — and don’t forget that cities are businesses that require revenue to stay profitable.” And by increasing the number of registered landlords, he says they have the opportunity to capture previously lost revenue dollars.
“Syracuse has made the tough controversial decision and now other cities can and will follow suit without appearing like the ‘bad guy’ as Syracuse has already set precedent.” However, Smith believes that landlords do not have anything to fear as long as they are following the requirements.
Wright agrees, and adds, “As a landlord myself, I don’t see any issue with this ruling as it mainly affects those landlords who do not take care of their properties to ensure that they meet the minimum property standards of a city.” He points out that these slumlords give the good landlords a bad name. “Most of us are trying to run a profitable business while also providing a quality place for our tenants to live and raise their families,” Wright said.
As cities draft and pass new legislation, stay up to date with rental property news and important landlord-tenant laws in your city by signing up for our newsletter.
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Because of the immense demand for housing in California, rental prices are spiking, and access to affordable housing across the state is limited. According to California’s Legislative Analyst’s Office, the average California renter pays 50% more for housing than renters in other states.
Currently, one-fifth of all California renters live in cities with varying forms of rent control that is allowed under the Costa Hawkins Rental Housing Act of 1995. This act, also known as the “anti-rent control law,” instituted three main restrictions to rent control in California: It allows landlords to raise rent on rent-controlled apartments to market rates each time a new tenant moves in, it restricts cities from applying rent control to units that were built after February 1995 (and in some cities, such as LA and Santa Monica, even earlier), and it exempts single-family homes and condos from being placed under rent control.
In 2019, Governor Gavin Newsom passed a rent restriction law that expanded rent control throughout the state. This law limited rent increases, stating that rent in all rent-controlled units can only be increased by 5% annually plus inflation, or increased by 10% — whichever is less — until 2030. This was the product of the strongly-disliked Proposition 10 announced in 2018 by Gov. Newsom, which intended to overturn the Costa Hawkins Act while expanding rent control.
Now, leading up to the November 3 elections, residents will be able to vote on whether or not to pass Prop 21, a new law hoping to further expand affordable housing and rent control in California.
What Is California Prop 21?
The main point of the California Prop 21 law is to modify the Costa Hawkins Rental Housing Act of 1995 in order to expand rent control across the state, thus superseding all local rent control laws. If passed, the measure will uphold two main changes to the current state of rent control:
First, the measure will allow local governments to impose limits on rent increases for new renters, thus inhibiting the aspect of the Costa Hawkins Act that allows landlords to raise the rent on a rent-controlled unit to market value once the current renter moves out.
That being said, individual governments will still have to allow for landlords to increase rent by up to 15% during the first three years after a new renter moves in. This is because every landlord in California has a legal right to a Fair Rate of Return, which allows them to increase rent just enough for them to be making some annual profits from their rentals.
Second, the measure will allow cities and counties to institute rent-control regulations on properties that are more than 15 years old, with an exception for single-family homes owned by someone with two or fewer properties. This means that, under Proposition 21 and barring said exception, properties built before 2005 will be eligible for rent control.
This proposal will be included on California’s November 3, 2020 ballot. Though the measure would go into effect in 2021, it does not state when it would expire if enacted.
Who Is Impacted by California Prop 21?
The California Prop 21 law will most likely affect landlords the most. Because many more properties would become eligible for rent control, some landlords would most likely experience a decrease in their rental incomes due to the limitations placed on the price of rent.
Some landlords would also not be able to raise the rent on a rent-controlled property to market value once the renter moves out, though a landlord’s Fair Rate of Return is still required under the new proposal.
Like most rent control laws, the main objective is to provide more affordable housing for California’s renters. As a result, some renters will be given many more rental options to choose from that are within their price range, with the hope that fewer renters will move due to rent increases.
How Will Proposition 21 Affect the California Rental Market?
If Proposition 21 is enacted, there are a few expected reactions that could affect the state’s economy and local sources of revenue. First, the state mentions that there’s a possibility that more landlords will sell their properties because of the rent control regulations. It’s also expected that the value of rental housing might decline, as landlords will not want to pay as much to acquire a property if they will be making less in rental income.
In terms of local and state revenue under Proposition 21, there is an understanding that both would likely be reduced over time, with property taxes being affected the most. This is because landlords would pay less property taxes due to the decrease in property value over time. However, more extensive rent control laws would also result in an increase in sales taxes caused by renters who have more buying power after paying rent.
Prop 21 Pros and Cons
Like many rent control bills, Proposition 21 comes with its share of disagreement surrounding whether or not it should be passed and how to approach the growing need for more affordable housing in California.
Those in favor of the measure voice that expanding rent control measures is the best way to provide more affordable housing to California renters. Not only this, but they state that it’s an effective way to lessen the homeless population in many of the state’s cities, an issue paid for by taxpayers to tackle. Proponents also argue that the measure will help with housing crises faced by veterans, senior citizens, and families.
Those against the measure state that the proposition, as well as expanding rent control legislation, will harm both renters and landlords. They argue that capping rent prices, and thus creating more affordable options, will disincentivize private developers from adding affordable housing units to their buildings. Landlords paying for the cost of their properties with a smaller rent income are concerned about the measure as well. Those who disagree with the proposition also cite an MIT study that found home values in areas with extreme rent control laws can see a decrease in home values of up to 20% — another point of concern for homeowners in the state.
The push for more rent control laws also bring into question the effectiveness of rent control as a way to create more affordable housing opportunities and help renters.
According to a study conducted by Brookings in 2018, rent control measures are actually found to do more harm than good in the long term. While renters find financial relief for a short period under rent control laws, these measures can lead to gentrification and a decrease in housing affordability overall. Still, the study notes that the ways that renters benefit from rent control, such as a decrease in displacements due to rent increases, should not be ignored.
Learn more about the pros and cons of rent control as a whole through Avail coverage on the topic, and stay up to date with all changing California rental laws to be better informed as a renter, landlord, and voter.
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As roughly 29 million Americans are estimated to be at risk of eviction by the end of 2020, private and public rent relief programs around the country have launched to keep renters in their homes and help landlords retain some of their rental income.
Landlords across the country have provided tenants with rent relief options like rent payments plans, rent discounts, and rent referrals, but Avail found that the majority of renters have been relying on government aid and assistance or taking out loans to pay their rent during the pandemic. But as future government assistance for those who are unemployed remains uncertain, renters have fewer financial resources to lean on.
In addition to a lack of rent relief options, evictions over unpaid rent during the pandemic will leave both parties at a disadvantage as eviction courts begin to reopen. Landlords will face average eviction costs of $3,500, according to data from TransUnion SmartMove, along with eviction processing times that will likely increase substantially due to a backlog of evictions. Many renters, on the other hand, will be left without homes in the face of a global pandemic that can require they have a safe place to quarantine.
To keep renters in their homes, the COVID-19 Eviction Defense Project has initiated a much-needed rent assistance program for renters and landlords in Colorado. Under the program, landlords will receive a single cash payment for up to five months of rent (including three months of rent owed and up to two months of future rent payments) if they forgive a portion of a renter’s debts.
The fund will pay 65% of rent debts directly to a landlord if that landlord forgives the other 35% of owed rent, and will pay landlords 75% of future rent if the landlord forgives the remaining 25%.
The fund then issues tenants a zero-interest loan to pay back over four years. Landlords keep their rent payments from the fund even if the renter defaults on the loan.
The program is available to renters in the Denver metro area, and more details about the program and who is eligible can be found here.
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]]>The post 11 States Extend CARES Rent and Mortgage Relief for August appeared first on Avail.
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With states facing an impending wave of evictions due to the end of the COVID-19 moratorium on evictions on July 24, some are taking rent relief and mortgage assistance into their own hands.
To offset a potentially massive housing crisis, individual states, counties, and cities across the U.S. are approving more funds for emergency rent and mortgage aid measures. These measures act as an extension of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by the White House on March 27, 2020 to help low-income families maintain housing during the pandemic.
Initial CARES funding provided at least $1.2 billion in funding for each state, some of which was used during the eviction moratorium and halt on foreclosures to help with rent and mortgage payments. Now, the following states decided to release more money from the initial CARES Act funding, thus helping homeowners (those who own their primary residence) and renters maintain housing until the end of August.
Florida
- Florida approved a total of $120 million to go to counties to further help with rent and mortgage payments affected by COVID-19.
- Individually, the Florida Keys received $838,069 to help with rent and mortgage relief. This comes from the Florida Housing Finance Corporation, which approved $638,069 to help those who fall under the 120% area median income in Monroe County. The other $200,000 is going to those who don’t meet that income requirement.
- Similarly, Coral Springs got $502,500 for rent and mortgage aid, as well as other services.
- Florida’s housing relief application.
Illinois
- Illinois approved an extra $300 million to help rental and mortgage assistance programs across the state.
- Those who are eligible have not paid rent sometime after March 1, 2020, made less than the maximum amount for low-income households in their area before COVID-19 began, and have had at least one adult lose their income due to the pandemic.
- Individual renters will get $5,000 to help with rent, while $15,000 will be given to those in need of mortgage assistance.
- Illinois renters and homeowners’ assistance information.
Indiana
- The state added $15 million to help their rental assistance program, which was originally $40 million since March 27.
- Those who are eligible were affected (medically or financially) by COVID-19, have a current lease, are asking for rental assistance at their primary residence, meet low-income standards of the area, are not currently getting any other government aid or assistance, and have documentation of their need for help (lack of rent or utility payments, notice of income loss, etc).
- Indiana Rental Assistance Program Application.
Maine
- MaineHousing will double rental assistance from $500 to $1,000 a month with CARES funding for a maximum of three months per renter, which covers a prior or current month.
- A renter is eligible if they are not already receiving government assistance, such as Section 8 or non-COVID-19 related housing aid. They can also apply if they meet income eligibility by area, have been laid off due to COVID-19, need to stay home with children due to the pandemic, loss of income, or reduction of work hours.
- MaineHousing Rent Relief Application and Information.
Minnesota
- Minneosta approved another $100 million towards housing assistance in the state. The program is accepting applications from mid-August through the COVID-19 Housing Assistance Program.
- On a county level, Winona County is getting $750,000 for housing assistance for those making 115% of state median income. Those applying need to have proof that they were consistently and regularly paying their housing bill up to the start of the pandemic in March.
- Minnesota housing assistance program information and application.
New Jersey
- New Jersey sent out more rent aid to individual counties in need of assistance. For Somerset County, that means receiving another $650,000 from CARES for eligible renters. This will come in the form of three-months assistance, or $3,000 upfront.
- Those applying need to prove their income has been affected by COVID-19, and that they have had issues paying rent since the start of the pandemic in March but had consistently paid their rent before that.
- Hudson County is also receiving another $12 million for rent relief. While the county is still deciding on how to distribute the money, that amount could pay the rent of 680 families in the area for six months. This is in a county where 40% of renters said they could not make August’s rent.
- Somerset County rent relief program information and application.
North Carolina
- Like New Jersey, North Carolina will be distributing more money to individual cities and counties in need of rent relief.
- Greensboro will get $2 million for those who are behind on rent in April, May or June and have an income that is less than 80% of area median income. This is roughly $37,000 for a single person or $69,000 for a family.
- Charlotte City will also get $8 million in relief for both rent and mortgage aid. Applicants are eligible if they make less than 80% of the area median income and have been hit financially by COVID-19. Mortgage payments had to have been timely and consistent until April in order to receive aid.
- Greensboro rent assistance application and information.
- Charlotte City Mortgage Assistance information and application.
Ohio
- Lakewood, Ohio received $1.5 million for low-income and moderate-income renters impacted by COVID-19. These funds will be applied retroactively to April 1 rent for those whose income meets HUD 2020 guidelines for assistance.
- Lakewood rent relief information and application.
Tennessee
- In Tennessee, the state sent $10 million in rent, mortgage and utility relief to Nashville for residents who can prove that they’re behind on these payments since the start of the pandemic. Applicants will go through an interview process to make sure they are eligible for the aid.
- Nashville rental, mortgage, and utilities information and applications.
Texas
- Houston, Texas approved $20 million in rent relief, with $5 million of that coming from independent donors. The money that was privately donated will be given to undocumented families that cannot recieve federal aid due to their citizenship status.
- Unlike the first rent relief package the city released back in May, this program will not distribute funds based on a “first come, first served” mentality. Instead, the city will be prioritizing those of the lowest incomes that need rental assistance.
- The program will begin accepting applications August 11, 2020.
Washington
- Washington’s Clark County approved $5.5 in rent assistance from the original CARES Act funding. Those who are eligible for assistance need to make less than 50% of median income in the area, or roughly $46,000 for a family of four or $32,000 for a single person.
- Like Clark County, Marysville also received another $250,000 from CARES funding. This money will give $1,500 to renters who have been behind on rent, live within the area, are considered low-income for the area, and have been financially hit by COVID-19.
- Washington rent assistance program information.
- Marysville rent assistance application.
More information on an entire list of state and local rental assistance programs can be found here.
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