Existing-Home Sales Retreated 3.3% in June; Monthly Median Sales Price Reached Second-Highest Amount Ever

by Elsa Soto | Jul 27, 2023 | Blog, Buyers, Homeowners, News, Real Estate News, Renters, Sellers

Existing-Home Sales Retreated 3.3% in June; Monthly Median Sales Price Reached Second-Highest Amount Ever

WASHINGTON (July 20, 2023) – Existing-home sales slipped in June, according to the National Association of REALTORS®. Sales varied among the four major U.S. regions, with the Northeast experiencing gains, the Midwest holding steady, and the South and West posting decreases. All four regions recorded year-over-year sales declines.

Total existing-home sales¹ – completed transactions that include single-family homes, townhomes, condominiums and co-ops – receded 3.3% from May to a seasonally adjusted annual rate of 4.16 million in June. Year-over-year, sales fell 18.9% (down from 5.13 million in June 2022).

“The first half of the year was a downer for sure with sales lower by 23%,” said NAR Chief Economist Lawrence Yun. “Fewer Americans were on the move despite the usual life-changing circumstances. The pent-up demand will surely be realized soon, especially if mortgage rates and inventory move favorably.”

Total housing inventory² registered at the end of June was 1.08 million units, identical to May but down 13.6% from one year ago (1.25 million). Unsold inventory sits at a 3.1-month supply at the current sales pace, up from 3.0 months in May and 2.9 months in June 2022.

“There are simply not enough homes for sale,” Yun added. “The market can easily absorb a doubling of inventory.”

The median existing-home price³ for all housing types in June was $410,200, the second-highest price of all time and down 0.9% from the record-high of $413,800 in June 2022. The monthly median price surpassed $400,000 for the third time, joining June 2022 and May 2022 ($408,600). Prices rose in the Northeast and Midwest but waned in the South and West.

“Home sales fell but home prices have held firm in most parts of the country,” Yun said. “The national median home price in June was slightly less than the record high of nearly $414,000 in June of last year. Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month.”

Properties typically remained on the market for 18 days in June, identical to May but up from 14 days in June 2022. Seventy-six percent of homes sold in June were on the market for less than a month.

First-time buyers were responsible for 27% of sales in June, down from 28% in May and 30% in June 2022. NAR’s 2022 Profile of Home Buyers and Sellers – released in November 2022⁴ – found that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.

All-cash sales accounted for 26% of transactions in June, up from 25% in both May 2023 and June 2022.

Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in June, up from 15% in May and 16% the previous year.

Distressed sales⁵ – foreclosures and short sales – represented 2% of sales in June, virtually unchanged from last month and the prior year.

According to Freddie Mac, the 30-year fixed-rate mortgage(link is external) averaged 6.96% as of July 13. That’s up from 6.81% the previous week and 5.51% one year ago.

Single-family and Condo/Co-op Sales

Single-family home sales decreased to a seasonally adjusted annual rate of 3.72 million in June, down 3.4% from 3.85 million in May and 18.8% from the previous year. The median existing single-family home price was $416,000 in June, down 1.2% from June 2022.

Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 440,000 units in June, down 2.2% from May and 20.0% from one year ago. The median existing condo price was $361,600 in June, up 1.9% from the previous year ($354,800).

Regional Breakdown

Existing-home sales in the Northeast grew 2.0% from May to an annual rate of 510,000 in June, down 21.5% from June 2022. The median price in the Northeast was $475,300, up 4.9% from the prior year.

In the Midwest, existing-home sales were unchanged from one month ago at an annual rate of 990,000 in June, slumping 19.5% from one year ago. The median price in the Midwest was $311,800, up 2.1% from June 2022.

Existing-home sales in the South faded 5.4% from May to an annual rate of 1.91 million in June, a decrease of 16.2% from the previous year. The median price in the South was $366,600, down 1.2% from June 2022.

In the West, existing-home sales declined 5.1% from the previous month to an annual rate of 750,000 in June, down 22.7% from one year ago. The median price in the West was $606,500, down 3.4% from June 2022.

About NAR

The National Association of REALTORS® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.

# # #

For local information, please contact the local association of REALTORS® for data from local multiple listing services (MLS). Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

NOTE: NAR’s Pending Home Sales Index for June is scheduled for release on July 27, and Existing-Home Sales for July will be released on August 22. Release times are 10 a.m. Eastern.

¹ Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

² Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).

³ The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

⁴ Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s REALTORS® Confidence Index, which include all types of buyers. The annual study only represents primary residence purchases, and does not include investor and vacation home buyers. Results include both new and existing homes.

⁵ Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s REALTORS® Confidence Index, posted at nar.realtor.

SOURCE

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Landlord’s Guide to Single-Family Rentals

by Elsa Soto | Jul 21, 2023 | Blog, Homeowners, News, Real Estate News, Renters

Landlord’s Guide to Single-Family Rentals

Landlord’s Guide to Single-Family Rentals

Single-family homes usually serve as people’s main homes, but nowadays, more and more folks are turning into landlords and renting out their houses instead of selling them right away. It’s a cool way to make some passive income with a property you already own, without having to buy an extra place to rent out.

Keep on reading to learn more about single-family rentals and the awesome tools that can help you manage your rental properties like a pro!

What Is a Single-Family Home?

Single-family homes come in two types: detached homes, which stand alone without sharing walls with other residences, and attached dwellings, which are separated by ground-to-roof walls. If you own a single-family home, you typically own the entire property and the land it sits on. On the other hand, if you have a condominium (or condo), you only own the interior of your unit and share common areas with other members of the association.

Another perk of single-family homes is that they don’t share utilities with others, and the responsibility for all costs associated with the property lies solely with the homeowner.

The Pros and Cons of Single-Family Rentals

As more tenants lean towards single-family homes over traditional apartments, it’s clear why landlords find them so valuable. However, before you rent out your property to tenants, it’s essential to be aware of the pros and cons. Let’s take a look at them!

Pros of Single-Family Rentals

Bigger space: As rent prices continue to climb, tenants are increasingly open to trading prime location and trendy amenities for more budget-friendly options that provide ample space. Single-family homes come to the rescue here, offering more room to breathe, which can boost your chances of quickly filling vacancies, especially if you set a competitive rent price.
Enhanced privacy: Opting for single-family rentals grants tenants a higher level of privacy and eliminates any hassle of dealing with other tenants around.
Less red tape: Unlike rentals in multifamily properties that often come with additional rules beyond the landlord’s regulations, leasing a single-family home allows landlords to enjoy greater flexibility in deciding what is permissible and what isn’t.

Cons of Single-Family Rentals

A steeper price tag: If you don’t already own a single-family home, be prepared to pay a higher purchase price, a larger down payment, and higher closing costs compared to what you might encounter with a condo.
Greater financial responsibility: As a single-family home is a standalone property, the owner bears the brunt of all financial obligations. This includes covering costs such as property taxes, homeowners association (HOA) fees (if applicable), utilities, maintenance, home improvements, and more.
Maintenance falls solely on your shoulders: When you own a single-family home, you won’t have the luxury of on-site staff to handle tenant maintenance requests. Instead, you’ll be personally responsible for finding and hiring contractors to tackle the necessary upkeep, which may add to your operating costs.

Are Single-Family Homes a Good Rental Investment?

Single-family homes make for excellent rental investments, especially when priced fairly and competitively. It’s also a perfect option if you’re thinking of moving out of your primary residence but would rather keep the property instead of selling it.

However, as with any investment, it’s crucial to analyze the property’s profitability before committing to renting it out. Take a closer look at key factors such as the neighborhood, property taxes, average rents, and property history to determine if you can generate a profit each month. Only then should you proceed with finding tenants for your rental venture.

Are Single-Family Homes Better Investments Than Multifamily?

Absolutely, both single-family homes and multifamily properties can yield a fantastic return on investment (ROI). However, figuring out which option suits you best relies on various factors to consider.

Rental demand within the local area: The demand for rentals can vary significantly from city to city, with tenants seeking different types of accommodations. While some areas might show a higher preference for condos and apartments in multifamily properties, others may lean more towards single-family homes, such as detached houses or townhouses.

Rent pricing: Typically, you can command higher rental rates for properties in high-rise to mid-rise buildings, given the additional amenities that boost their overall value. In contrast, single-family homes often come with a more affordable price tag, making it easier to attract tenants in your area who are seeking to save on their rental expenses.

Vacancy rates: Rental demand plays a significant role in how quickly a property gets filled. Depending on the area, one type of property may take longer to find tenants than another. If you notice that single-family homes tend to take more time to fill compared to condos in multifamily properties, this is an essential factor to consider when deciding which property type to rent out.

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

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Benefits of Using a Property Management Company?

by Elsa Soto | Jul 14, 2023 | Blog, Homeowners, News, Property Management, Real Estate News, Renters

Benefits of Using a Property Management Company?

Benefits of Using a Property Management Company

When it comes to your investment, having a competent property manager can make a world of difference. Seasoned real estate investors swear by the fact that a good management company is worth its weight in gold. So, let’s dive into a few ways a top-notch property manager earns their keep:

Higher Quality Tenants

Imagine tenant screening as the protective moat and drawbridge surrounding your fortress. While it can be a headache to remove a troublesome tenant once they’ve settled in, it’s far easier and more beneficial to avoid accepting them altogether. By conducting a comprehensive screening process, you ensure that your tenants are dependable and:

Pay on time
Rent longer
Put less wear and tear on the unit
Generally cause less problems

A seasoned property management company has encountered countless applications and mastered the art of swiftly uncovering crucial details about candidates. They possess the expertise to analyze this information and identify any red flags. Entrusting the screening process to a management company not only saves you from rental scams targeted at property owners but also protects you against potential discrimination lawsuits arising from an inconsistent screening approach. This invaluable experience, which helps you steer clear of undesirable tenants, scams, and legal entanglements, is undeniably one of the most substantial advantages a property management company brings to the table.

Fewer costly and time consuming legal problems

Experienced landlords understand that a single problematic tenant can lead to substantial legal and financial complications. A reliable property manager possesses up-to-date knowledge of the latest landlord-tenant laws and takes proactive measures to safeguard you from potential lawsuits. It’s important to note that each state and municipality has its own set of laws, in addition to federal regulations, which encompass various aspects including, but not limited to:

Tenant screening
Safety and property conditions of the property
Evictions
Inspections
Lease addendums
Terminating leases
Handling security deposits
Rent collection

By evading just one lawsuit, you can easily offset the cost of property management fees and save yourself valuable time and unnecessary distress.

Shorter vacancy cycles

A property manager plays a vital role in accomplishing three essential tasks that directly impact the speed at which your vacancies are filled:

Enhance and get the property ready for renting – With the expertise of a property manager, you can receive valuable recommendations and effective supervision for cosmetic enhancements that optimize your rental income.
Set the ideal rental rate – Setting the rent at the right level is crucial; too high leads to prolonged vacancies, while too low means losing money each month a tenant occupies the unit. Determining the optimal price necessitates a deep understanding of the local market, analysis of recently sold comparable properties, and access to reliable rental rate tools.
Efficiently promote your property – A proficient property management company has crafted numerous compelling advertisements and possesses the knowledge of what to say and where to advertise, ensuring a larger pool of potential candidates within a shorter timeframe. Moreover, due to their extensive volume, they can often secure more cost-effective advertising rates both online and offline. Additionally, they are well-versed in sales tactics and excel at closing deals during phone inquiries and property showings.

Better tenant retention

While the impact of lost rent is apparent, a high tenant turnover rate comes with equally significant challenges. The turnover process entails extensive cleaning, lock changes, wall painting, and potentially even new carpets or minor repairs. Additionally, there’s a considerable amount of effort involved in marketing the property, conducting showings, screening new tenants, and facilitating their smooth transition. This entire process is both time-consuming and costly, but it can often be prevented by prioritizing tenant satisfaction and providing excellent care.

A reputable property management company implements a proven tenant retention policy that fosters tenant satisfaction and encourages long-term stays in your properties. Such programs rely on a consistent and systematic approach, which is precisely where a reliable property management company excels.

Tighter rent collection process

Effectively managing rent collection and late payments can make or break your success as a landlord. Ensuring timely rent collection is crucial for maintaining a steady cash flow, and it’s essential for your tenants to recognize that this is non-negotiable. By enlisting the services of a property manager, you create a protective barrier between yourself and the tenant. They handle the challenging aspects of dealing with excuses, pursuing rent payments, and, if necessary, initiating eviction proceedings, sparing you from these unpleasant tasks.

If given the opportunity, tenants can take advantage of you as a landlord. It’s crucial to establish clear expectations and ensure they understand the consequences of not adhering to the lease agreement. Property managers possess an advantage in this regard because tenants perceive them as individuals who are simply carrying out their job duties and are bound to enforce the terms of the lease. In fact, many property managers will attest that managing units for others is often easier than managing their own, precisely for this reason.

When it comes to evictions, the eviction process is governed by stringent laws. Mishandling or attempting to evict a “professional tenant” can lead to a significant disaster. However, a reliable property management firm is well-versed in the legal requirements and possesses an effective process to achieve the best possible outcome based on the circumstances. The prospect of never having to deal with another eviction can be a compelling reason to seriously consider hiring a property management company.

Assistance with taxes

Enlisting the services of a property management company not only aids in identifying eligible deductions but also assists in organizing the required forms and documentation for those claims. Furthermore, it’s worth noting that the property management fees themselves are tax deductible, providing an additional benefit in terms of tax savings.

Lower maintenance and repair costs

Maintaining good upkeep and promptly addressing repairs not only ensures tenant satisfaction but also preserves the value of your investment, making it a crucial aspect of property management. By engaging a management firm, you gain access to their dedicated in-house maintenance staff as well as a network of licensed, bonded, and insured contractors who have already undergone thorough vetting for competitive pricing and quality work. This can result in substantial cost savings compared to independently searching for service providers through directories. The management firm benefits from volume discounts and possesses familiarity with the contractors, enabling them to intelligently supervise the work and address maintenance issues effectively.

Increase the value of the investment

Preventive maintenance involves implementing systems that proactively identify and address maintenance and repair issues at an early stage, before they escalate into more expensive problems. This entails establishing a written maintenance check program, maintaining detailed documentation of maintenance tasks, and conducting regular maintenance visits. Additionally, a management firm can provide valuable recommendations and insights regarding upgrades and modifications, including their impact on rental potential, maintenance requirements, and insurance considerations.

Personal benefits for owners

Experience reduced stress – Say goodbye to handling late-night emergencies, pursuing rent payments, carrying out evictions, dealing with tenants who cause damage, encountering rental scams, managing unreliable vendors, and drowning in paperwork. By enlisting the assistance of a property management company, you can alleviate these burdens and enjoy a more relaxed landlord experience.
Gain increased freedom – Embrace the freedom to reside and invest in any location of your choice, without being tied down to the proximity of your properties. Moreover, you can live and travel without the constant obligation of being readily available for your tenants’ needs. Once you have secured the services of a reliable management company, it becomes irrelevant whether you reside in the same state. In fact, some landlords reside in different countries and effortlessly collect their monthly rental income without ever setting eyes on the property.
Reclaim your time – Time is a valuable resource, and for many investors, their time can be more effectively utilized in areas other than tending to property management tasks. By prioritizing asset management, you shift your focus to working on the growth of your business, rather than being consumed by the day-to-day operations. Moreover, freeing up your time allows for more quality moments spent with loved ones, engaging in activities that bring you joy and fulfillment.

A final thought

Certainly, this ideal scenario assumes that the management company you choose is competent, trustworthy, and well-suited for your property. It’s important to note that making a poor choice in selecting a management company can lead to a host of headaches and challenges of its own. Therefore, thorough consideration and careful evaluation are crucial when deciding on the right management company for your property.

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

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How Much Can a Landlord Charge for Damages?

by Elsa Soto | Jun 30, 2023 | Blog, Homeowners, News, Property Management, Real Estate News, Renters

How Much Can a Landlord Charge for Damages?

How Much Can a Landlord Charge for Damages?

If you want your rental business to thrive, it’s crucial to find tenants who will take good care of your property throughout their lease. Unfortunately, there may be times when you come across parts of your rental that are in worse condition than when your tenant first moved in.

That’s why it’s vital to understand how much you can charge tenants for any damages they cause. We’ve got you covered with all the essential information on charging tenants for damage to your rental property. So, let’s dive in and make sure you’re in the know!

What Is the Most a Landlord Can Charge for Property Damage?

The amount landlords can charge tenants for property damage varies from state to state, so it’s a bit of a mixed bag. But here’s the deal: in your state, the amount should be reasonable and clearly spelled out in the lease agreement.

Usually, landlords dip into the security deposit to cover repair costs, but if you decide not to do that, you might be able to slap tenants with some property damage-related fees. Either way, you gotta know your local landlord-tenant laws about security deposits and find out if you’re allowed to charge those extra fees.

Oh, and don’t forget to back up the amount you’re deducting from the security deposit. Just whip up a security deposit return letter, where you break down the deductions and give a solid explanation for each one. It’s all about making things crystal clear, my friend.

Property Damage vs. Normal Wear and Tear

Once you’ve got all your findings properly documented, it’s time to distinguish between property damage and normal wear and tear. Property damage refers to any harm caused to the unit due to tenant neglect or abuse.

Let’s break it down with a few examples of property damage:

Unauthorized alterations like new paint or wallpaper.
Those pesky large holes in the walls.
Scratches on the kitchen counters.
Appliances that have been damaged due to misuse.
Scratches or urine stains left behind by furry friends.

On the other hand, normal wear and tear is the natural deterioration that occurs in a rental unit over time. Here are a few examples of what falls under normal wear and tear:

Faded paint, as it happens over time.
Wallpaper that has come a bit loose.
Wear patterns on carpets from regular foot traffic.
Dents on walls caused by door handles.
Cracked light switch plates that come with normal use.

To ensure you’re on the right track, it’s essential to familiarize yourself with the local landlord-tenant laws, especially those that outline the differences between property damage and normal wear and tear. This will help you avoid mistakenly charging tenants for ordinary wear and tear situations.

How to Determine Damage Costs

Another crucial aspect to consider is determining the appropriate amount to charge for property damage. While you want to ensure the cost is fair, creating a standardized list of repair costs can be quite tricky. Here are a few factors to take into account when deciding how much to charge for damages:

Age of the item: The repair cost for a brand new item may be higher compared to something that has been in the property for several years.
Original cost: Understanding the initial purchase price of an item can provide insight into the estimated repair costs.
Repair or replacement: In some cases, the damage may be severe enough to require complete replacement rather than repair. Consider the possibility of irreparable damage when determining the charges.
Time and expertise required: While minor repairs may be manageable, certain tasks may demand a significant amount of time or the assistance of a professional contractor.

When it comes to presenting charges for damages, you have a couple of options. Some landlords prefer to disclose the charges at the end of the tenant’s stay, providing a final breakdown of costs. On the other hand, others opt to provide a tenant charge list at the beginning of the tenancy. This list outlines different types of damage along with estimated repair costs. By having tenants sign this list, they are made aware of their responsibilities, reducing the likelihood of disputes arising. However, keep in mind that unexpected repair costs can arise, which may pose a challenge if they exceed the initial estimates.

Ultimately, it’s your call on when to present the charges to the tenant, based on what works best for you and your rental business.

How to Inform Tenants of Property Damage

Let’s face it, discussing the withholding of a portion or the entire security deposit with your tenant can be an uncomfortable situation for everyone involved. That’s why it’s crucial to maintain clear communication and keep them informed throughout the entire process. As a landlord, you can achieve this by following these steps before, during, and after the tenancy:

Before Move-In To cover all your bases, make sure your lease agreement includes all the necessary information. This helps set clear expectations for both you and the tenant, reducing the chances of surprises. Research the local laws and ordinances, and include clauses in the lease agreement regarding:

Security deposits
Rental property walk-throughs
Differentiating normal wear and tear from property damage
Tenant responsibilities for maintenance

If you’re struggling with writing the lease, you can access lawyer-reviewed lease agreement templates through an Avail account. These templates not only meet state disclosure requirements but also allow you to customize them with specific clauses and rules for your rental property.

During the Tenancy Throughout the tenant’s stay, make sure you stay on top of regular maintenance tasks you’ve agreed to handle. Ignoring maintenance requests can make it difficult to charge tenants for any resulting damage. Addressing these requests promptly also helps you determine whether the issue is related to normal wear and tear or actual property damage.

If you want to streamline the process of managing maintenance requests and keep a record of repairs and associated costs, Avail offers a maintenance tracking feature. It allows tenants to submit requests online, share photos, and communicate with landlords through the app. You can also document how and when the issue was resolved, as well as assign an expense amount to each ticket for future reference.

Moving Out During the move-out phase, conduct a thorough inspection with your tenant to identify any unexpected damages. This is an opportune time to make note of any issues for which you may need to withhold funds from the security deposit.

Once you’ve identified the damages, it’s a good practice to provide the tenant with a list of deductions along with the refunded portion of the security deposit. This helps ensure transparency and clarity regarding any withheld funds.

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

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Pet Ownership: Rental Risks

by Elsa Soto | Jun 16, 2023 | Blog, Homeowners, News, Property Management, Real Estate News, Renters

Pet Ownership: Rental Risks

When you come home, your pet is always thrilled to see you, and they make the best company for TV binging or taking a stroll. But things can get a bit tricky when you’re renting and want to be a pet parent.

If your lease doesn’t allow pets, you might think about sneaking in a furry buddy, especially if your landlord rarely shows up. It seems tempting, right?

But here’s the deal: keeping a pet without your landlord’s approval can land you in serious trouble. If your little friend ends up damaging the rental property, you’ll be the one footing the bill for repairs. And if your pet causes any trouble for other tenants or even random folks, you might be stuck with the costs and legal fees. So, better play it safe and get the go-ahead from your landlord.

Fines

So, here’s the deal: sneaking in a pet without your landlord’s approval can sometimes land you in hot water. They might hit you with some fines, and guess what? These fines usually apply to each and every furry friend you bring in. Now, some landlords might have a fixed fine amount, but there are others who can try to charge you for every single day your pet lives in the rental.

But here’s the catch: if you want your landlord to charge you fines, they gotta include all the nitty-gritty details in the lease. If they demand an amount that isn’t clearly mentioned in that fancy document, you could potentially file a case in civil court and try to get your costs back. Just keep in mind, though, that the court won’t be able to grant you the green light to keep your pet legally. So, tread carefully!

Pet removal

If your lease explicitly states a no-pet policy and you decide to bring a furry companion into the picture, your landlord has every legal right to request the removal of the animal from the property. If you’re determined to keep your pet, it means you’ll have to consider moving out.

However, moving out during an active lease can be a bit tricky. You’ll likely have to break the lease, which could result in hefty penalties, find someone to sublet your rental, or negotiate an agreement with your landlord to terminate the lease agreement ahead of schedule. It’s a tough situation, but exploring these options might be necessary if you want to hold onto your pet.

Eviction

The good news is that many landlords are open to working things out with their tenants, even if the lease is broken due to a pet situation. However, it’s important to note that not all landlords will be as understanding. If you’re caught sneaking in a pet, your landlord might exercise their right to evict you.

Facing eviction can have some serious consequences. Your landlord may take legal action to sue you for the remaining lease payments. Recovering from an eviction can be challenging. It can tarnish your rental history, making it harder to find future landlords who are willing to rent to you. So, it’s crucial to consider the potential long-term impact before taking any risks with your pet and your lease agreement.

Adding a pet the right way

I get it, sneaking in a pet may seem like an easy way out, but let me tell you, there’s a more straightforward and better solution: just ask your landlord. Believe it or not, many landlords are actually open to the idea of having pets, especially if you’ve been a responsible and reliable tenant.

If your landlord gives the green light, it’s essential to get everything in writing. Request your landlord to include a pet clause in your lease agreement, specifying important details like the breed, weight, and any deposits or pet-related payments required to cover potential damages.

Honesty is always the best policy, so it’s better to have an upfront conversation with your landlord about your current or future furry friends.

Now, if you want to avoid any hassle altogether, you can actively search for rental properties that explicitly allow pets. It saves you time and ensures a pet-friendly living environment right from the start.

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

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Can My Landlord Sell the House I’m Renting?

by Elsa Soto | Jun 9, 2023 | Blog, Homeowners, News, Property Management, Renters

Can My Landlord Sell the House I’m Renting?

Is your landlord planning to sell your house? Rest assured, you’re not alone. As the property owners, landlords do have the right to sell their property whenever they please. However, this doesn’t mean they can simply evict you or tamper with your security deposit in an instant.

But hold on, tenants have rights too! If a buyer emerges and your building gets a new owner, this new landlord might introduce changes that could impact the place you’re renting.

So, let’s delve into what you should know about your tenants’ rights when your landlord decides to sell the property, whether it’s a fantastic duplex or a regular old apartment.

Do I have to move when a landlord sells to a new owner?

No need to jump to conclusions and start panicking about eviction or rushing to find a new rental place just yet. Just because your landlord is selling the house you’re renting doesn’t automatically mean you have to start hunting for a new home.

If luck is on your side, the outgoing landlord might sell to a buyer who’s more than willing to sign a new lease with the current tenants once the sale is finalized. So, it’s worth checking with the new owner to see if that’s a possibility.

However, if that option isn’t on the table or you’re dissatisfied with the new lease terms, you may have to consider moving out and finding a new rental property.

When do you have to move from the rental property?

If you happen to be on a month-to-month lease, most states typically require landlords to provide tenants with a written notice of 30 days if they decide to sell the property to a buyer or new landlord. However, it’s worth noting that rent laws can differ in various areas, so it’s wise to conduct a thorough check. For instance, residents of Seattle who rent are fortunate to receive a 60-day notice. To determine where you stand, tenants can consult their state’s landlord-tenant laws on Avail.

Now, if you’ve signed a fixed-term lease for a longer period, like a year or two, it’s highly likely that you possess the legal right to continue residing in the rental property until your lease reaches its end. Even if the house or apartment gets sold before your lease expires, the new owner is obligated to honor the terms of the legally binding contract with the tenant.

Lucas Hall, the founder of Landlordology, aptly explains, “A lease is tied to a rental property, not an owner.” This means that even if the homeowner undergoes a change, the lease remains intact for the renter or tenant.

Hall further adds, “Even a specific month-to-month agreement will transfer.”

Check for a ‘lease termination due to sale’ in your renter’s clause if your landlord is selling house

Also, it’s essential to check if your contract includes a “lease termination due to sale” clause. In such cases, whatever is specified in the clause takes precedence. Surprisingly, even long-term leases may not offer much protection for the tenant, according to Hall.

In simpler terms, let’s say you have eight months remaining on your lease, but the contract states that lease termination due to sale requires a 30-day notice. Unfortunately, you’ll only have those 30 days left as your rental period, regardless of having paid a security deposit. Your landlord will want you out so that the new owner can step in.

Here’s a nugget of advice that might have been useful earlier: you can actually negotiate the amount of time a landlord is obliged to give you if they terminate a lease due to a sale.

The catch is, you need to do this negotiation before becoming a tenant and signing the lease for your rental home.

“For instance, if the landlord wishes to have the option to terminate the lease due to a sale, the tenant could request a minimum of 60 days’ notice and/or require a specified ‘buyout’ amount,” suggests Hall.

If it’s too late to implement this advice in your current situation, keep it in mind for future reference when signing with a new landlord. Additionally, you can obtain updated information by contacting on of our property management professionals here at RE/MAX heritage.

Look into a tenant relocation allowance from the landlord

Wouldn’t it be great if landlords actually paid tenants to relocate from the apartments they rent?

Well, let’s be honest, it’s not something you come across every day, but there are certain situations where your landlord might be compelled to offer some financial incentive to encourage tenants to vacate. This usually occurs when the landlord decides to sell the building to a new owner or convert it into condominiums.

Tenants rights when landlord sells property: Keep your landlord in line

As long as you’re residing in the rental property, you have certain fundamental tenant rights that should be respected. For instance, your landlord cannot make threats of eviction, disconnect your water or electricity, enter your apartment without proper notice (unless there’s an emergency), or hire a remodeling crew to work until the wee hours of the morning.

If you believe your landlord is infringing upon your tenant rights, it’s crucial to seek assistance. You can reach out to a tenant lawyer or get in touch with your local housing authority for guidance and support.

What happens to the security deposit that you gave the landlord

Once you’ve moved out, your landlord is legally obligated to return your security deposit, deducting any necessary repairs or cleaning expenses. The specific timeframe for this process varies depending on state laws, typically ranging from 14 to 60 days after you vacate the apartment.

When the time comes, treat the move-out process like any other. Ensure that you take all of your belongings, thoroughly clean the rental property, and return the keys to the landlord. If possible, consider doing a final walk-through with your landlord and provide them with written notice containing your new address.

By wrapping things up on a positive note with your landlord before moving out, you can smoothly transition to the next phase of your life, whether it involves finding a new place to rent or even becoming a homeowner yourself!

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

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