Bubble Alert! Is It Getting Too Easy To Get A Mortgage?

There is little doubt that it is easier to get a home mortgage today than it was last year. The Mortgage Credit Availability Index (MCAI), published by the Mortgage Bankers Association, shows that mortgage credit has become more available in each of the last several years. In fact, in just the last year:

  • More buyers are putting less than 20% down to purchase a home
  • The average credit score on closed mortgages is lower
  • More low-down-payment programs have been introduced

This has some people worrying that we are returning to the lax lending standards which led to the boom and bust that real estate experienced ten years ago. Let’s alleviate some of that concern.

The graph below shows the MCAI going back to the boom years of 2004-2005. The higher the graph line, the easier it was to get a mortgage.

Bubble Alert! Is it Getting Too Easy to Get a Mortgage? | Keeping Current Matters

As you can see, lending standards were much more lenient from 2004 to 2007. Though it has gradually become easier to get a mortgage since 2011, we are nowhere near the lenient standards during the boom.

The Urban Institute also publishes a Home Credit Availability Index (HCAI). According to the Institute, the HCAI:

“Measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates … it is easier to get a loan.”

Here is a graph showing their findings:

Bubble Alert! Is it Getting Too Easy to Get a Mortgage? | Keeping Current Matters

Again, today’s lending standards are nowhere near the levels of the boom years. As a matter of fact, they are more stringent than they were even before the boom.

Bottom Line

It is getting easier to gain financing for a home purchase. However, we are not seeing the irresponsible lending that caused the housing crisis.

 

Source: The KCM Team | https://www.keepingcurrentmatters.com/2017/11/22/bubble-alert-is-it-getting-too-easy-to-get-a-mortgage/ | 11.24.2017

Notice of Entry, and Other Rules Your Landlord Needs to Follow

By  | Oct 2, 2017

With a rental lease set to expire, most landlords want to show the apartment as often as possible, which means they’ll need a notice of entry to get into your place. They’ll be eager to find new renters, but the law states they can’t just unlock your door at any time and pop in for a visit. They also aren’t allowed to show the apartment so many times that it creates a nuisance for you and disrupts your life.

If you’re a renter, read on for the rules of landlord entry, so you know what to expect.

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.

Landlord notice of entry

Landlords are legally obligated to provide a renter with notice that they’ll be entering the premises—for any reason. Whether that’s to show the property to a potential renter or to fix a leaky faucet, the law is clear: Legal tenants have the right to quiet enjoyment of their home.

“The landlord must provide reasonable notice in writing (generally, 24 hours) of his intent to enter—and to do it only during normal business hours,” explains Bryan Zuetel, a Realtor® and real estate attorney from Irvine, CA. If a tenant is home and consents to entry, the 24-hour notice can be waived. Then again, it is OK for a tenant to deny entry to their landlord if they show up unannounced.

If the landlord intends to rent or sell the property to someone new, they may ask you to allow additional showings, Zuetel says. And depending on what’s spelled out in your lease agreement, you may have to comply. “For example, under certain conditions, a landlord may require that the tenant permit a weekend open house during regular business hours, and the landlord may provide oral notice of entry to the tenant,” he says.

So pull out the paperwork you signed if you’re worried that your landlord is crossing the line. Landlords who are following those guidelines are probably in the clear.

How often can a landlord show an apartment?

Rental law does not specifically stipulate a maximum number of times a landlord is allowed to show an apartment to prospective tenants. It does, however, provide some cover for tenants. “The landlord may not abuse the right of access, or use it to harass the tenant,” Zuetel explains.

That might sound vague, but if you do feel like your landlord is abusing the right of access and bothering you too often, you should try talking to them first, before calling an attorney. “Let them know that you are feeling stressed from all the showings and ask for a break for a few days—that seems more than reasonable,” says Holly Pasut, a Realtor with Hines and Associates Realty in Cornelius, NC. If that doesn’t help, you can then seek legal action.

Jeanne Sager has strung words together for the New York Times, Vice, and more. She writes and photographs people from her home in upstate New York. Follow @JeanneSager
Source: https://www.realtor.com/advice/rent/how-often-can-my-landlord-show-my-apartment-2/ | 11.16.2017

11 Questions to Ask a Potential Roommate to Weed Out the Weirdos Fast

By  | Nov 6, 2017

Picking a roommate is a bit different from picking a spouse, a pet, or a nice couch—it’s a giant leap into the great unknown. What are some questions to ask a potential roomie to help you separate the special someone you can happily live with from all the freaks and weirdos who will drive you nuts? After all, even if everything seems fine at first blush, once a person moves in, all kinds of unsavory habits might suddenly rear their head—and by then, you’re kind of stuck. So, before signing on the dotted line with a stranger, be sure to review this list of questions for screening purposes. Trust us, you’ll be so glad you did!

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.

1. Do you smoke?

Living with a smoker is a deal breaker for many people; hence, this question is a staple on roommate matching websites.

Marin King, a real estate agent at Keller Williams NYC who specializes in rental properties, says potential roommates should absolutely clear the air not only on whether they smoke, but also on where it’s allowed if it’s allowed. For instance, some might not take kindly to seeing ashtrays on the back porch, even if it’s outdoors.

2. Are you a morning person or a night person?

Night owls and early birds don’t tend to mix well as roommates. Because you’re on opposite sleep schedules, you might feel you always have to tiptoe around. Research shows early risers and night people have different personality traits and behaviors that can make them clash worse than polka dots and plaid. (Fun, and not entirely surprising, fact: One study found that night owls, on average, consume more alcohol than morning people.)

3. What’s your work schedule?

Ideally your work schedules will be compatible, says Joe DeFilippo, a real estate agent and rental specialist with City Chic Real Estate in Washington, DC. This is especially important if you’re going to be sharing a bathroom, because you want to have ample time to get ready in the morning. (Having a roommate who’s impatiently waiting for you to get out already isn’t a great setup.)

4. Do you have pets?

Hate cats? Allergic to dogs? Well, don’t live with a roommate who has one! If you don’t mind having a four-legged friend around, though, you should still make sure your landlord allows pets, because many don’t.

5. Do you work from home?

Office dwellers might skip this question, but if you’ll be working from home, you should check to see whether you’d have the place to yourself. After all, one of the best things about working from home is that you have fewer distractions from co-workers, but your roommate could prove equally distracting, or even more so if he’s a chatterbox!

6. What do you like to do on nights and weekends?

If you enjoy hosting game night and dinner parties, rooming with a homebody can cause problems. After all, you should be able to entertain at home without feeling like you’re invading your roommate’s privacy.

Asking this question can also help you gauge if your prospective roommate is a party animal who’s going to treat your apartment like a frat house.

7. Have you ever had any issues with rent payments?

A landlord or property management company will usually look into each person’s rental history before approving a roommate, but you should still vet your roommate yourself. Why? Because if your roommate can’t pay his portion of the rent, you’re typically on the hook for paying his share. So, if someone says she’s had trouble paying rent on time in the past—or has had other issues with a previous landlord (e.g., arguments, fines, eviction)—look for a roomie who is more drama-free.

8. Are you in a relationship?

If you don’t want an unofficial third roommate, you need to set clear expectations about how often romantic partners can sleep over. This can become a big issue if your roommate’s significant other is a constant presence in your apartment; at that point, the person should be paying rent!

9. What indoor temperature do you prefer?

This might seem minor, but plenty of folks living in close proximity have strong disagreements over who controls the thermostat. This issue can also present financial concerns—if the person in the next room likes to constantly blast the air conditioning during the summer, for example, you could be looking at a fatter utility bill.

10. How often do you clean?

This is a better approach than asking someone straight up, “Are you a clean person?”—because few people will admit to being a slob. If you’re someone who can’t fall asleep if there are dishes in the sink, make sure you find someone who’s the same way. If you’re both lazy cleaners, you could agree to split the cost of a professional cleaning service once a month.

11. Are you still friends with your old roommates?

You certainly don’t have to become besties to be good roommates, but you do want someone who is pleasant and easy to spend time with. If your prospective co-tenant has had a long string of “bad roommates,” this could be a case of the pot calling the kettle black.

Daniel Bortz is a Realtor in Maryland, Virginia, and Washington, D.C., who has written for Money magazine, Entrepreneur magazine, CNNMoney, and more.

Source: Realtor.com | https://www.realtor.com/advice/rent/questions-to-ask-a-potential-roommate/ | 11.10.2017

‘We Gave Up the Perfect Apartment for Our Pet’

By  | Nov 2, 2017

If you had to choose between having the perfect apartment or a sweet, sloppy, loving pet, which would you pick?

Fifteen years ago, my husband and I found ourselves in this situation when we adopted a stray dog named Rocky—all high-strung energy and cuddles concentrated in a tiny Chihuahua body. He suited us perfectly.

The only problem? We didn’t check with our landlord first.

Worse yet, we loved our apartment: The kitchen was painted a burnt Tuscan orange, the bedroom was expansive with a walk-in closet and a brilliant blue color that made us feel relaxed and right at home. The location was perfect, a quarter-mile from my favorite yoga studio and a stone’s throw from the subway. Best of all? The rent was an affordable $900.

But that dog.

After we brought Rocky home, we did the right thing. We called our landlord. We figured since he’d approved our corpulent cat, he’d almost certainly approve the dog, too. Especially such a little dog!

Alas, our landlord said no. No dogs allowed.

What should we do? Well, we never really had a choice. Our hearts were set on that sweet little pooch with his big brown eyes and curly tail. So we found another apartment a few doors down that allowed pets.

Our new apartment had no dishwasher. It had no closet. It was in a run-down building with a bathroom so disgusting, we wore shower shoes the whole two years we lived there. It’s no wonder it allowed dogs.

The kicker? It was smaller and $400 more expensive than the place we’d just left.

The move was depressing and long. We did a terrible job packing, because we didn’t want to leave. We walked our things box by box down the street, feeling more and more angry with every trip. But we moved. And we settled Rocky and Melvin (the fat cat) into our new place.

A few weeks later, we were at the local dog park when we met a new couple who, to our surprise, had just moved into our old place. Even more shocking? They also had a dog—a Chihuahua named Percy.

“We just didn’t tell him,” they explained after we revealed how our own Chihuahua had been the reason we’d had to move out. “And once he found out when he saw us walking the dog and met him, he just let us stay.” Wait, what?

So what did I take away from this infuriating experience? Plenty. Here are five things I learned about mixing apartments and pets.

Ask your landlord before you meet the dog

We made the mistake of falling for Rocky before we confirmed that our landlord would approve. The best path is to clear the dog question with your landlord before you lose your heart to a furry one.

‘Don’t ask, don’t tell’ is a gamble, but it can sometimes pan out

Hiding a pet from your landlord is, of course, terrible legal advice. But it’s also possible that once or if your landlord finds out, he will OK it rather than go through the annoying and expensive process of finding a new tenant. It’s a gamble, of course. You could end up on the financial hook if your puppy or dog destroys something or if your landlord considers it a breached lease. But mostly, the worst-case scenario is mutually parting ways with your landlord and then you are no worse off than if you’d asked and he’d said no.

Introduce your pet to your landlord, and maybe he’ll melt

This isn’t going to work with a landlord who hates all animals, but our landlord was already OK with cats. The only difference between us and the tenants who followed us is that he’d met their Chihuahua. Had he met ours, he might have had a different reaction.

Offer to sign additional paperwork

If we had offered to sign liability clauses in the lease indicating that we would pay for any damage incurred by Rocky, our landlord might have been more amenable to his presence. We asked without that offer and, in retrospect, we could have made our request more appealing, and harder to turn down.

Propose paying more rent

If all else fails and you really want to keep the apartment, put more money on the table. For the dishwasher, the nice bathroom, the walk-in closet, and the feeling of home, we would have upped our rent considerably. We simply didn’t argue enough. We gave up too soon.

If all of these tactics fail and your landlord says it’s a no-go, the good news is this: We left that apartment in 2003. In the 14 years since, we have had three children and five houses. We moved out of the bad apartment and bought a condo—and never rented again. Rocky has been with us through it all. Today, he is gray around his temples and has lumps and bumps too numerous to count. He limps a bit and sometimes pees on the carpet, but he’s been in our lives for almost as long as my husband and I have been together—and we almost couldn’t imagine life without him.

In other words: It was worth it.

Sasha Brown-Worsham has written for the New York Times, Self, Cosmopolitan, and other publications. She lives outside New York City with her husband, three kids, and menagerie of pets.
Follow @sashabrownworsh

Source: https://www.realtor.com/advice/rent/we-gave-up-our-apartment-for-our-pet/ |  11.03.2017 |

Need help? Contact the best property management company in Toronto.

The Cost of Hiring a Real Estate Agent to Rent Out Your Home

By  | Oct 13, 2017

Hiring a real estate agent to handle the logistics of renting out your property can be a smart move—one that many homeowners make. An agent can create a listing for you, help you check out applicants, and generally manage other aspects of renting so you don’t have to. But before you sign a contract with an agent, you’ll want to figure out how much it will cost so you still come out ahead. Do the math!

Let’s take a look at how much it costs to rent out your home through an agent.

Real estate agent fees associated with rentals

The amount your agent will charge you depends on the list of responsibilities and the rate they plan on charging you.

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“There is no set commission,” says Beverley Hourlier, a Realtor® with Hilltop Chateau Realty in San Diego. But there are some common guidelines.

“I usually charge half of the monthly rent if I am just helping to lease,” Hourlier says. She adds that some agents charge a “lease up” fee, which is half the rent plus costs like running a credit report, plus a property management fee.

“If I property manage, then I charge 10% of the monthly lease,” Hourlier says. Keep in mind, property management is a little outside the wheelhouse of most real estate agents. If that’s what you’re looking for, you might want to hire a company separately. Some property management companies will find your tenant for an additional fee.

Although there isn’t a set commission for real estate agents involved in rentals, a common range is around the cost of one month’s rent.

“My charge to all of my rental clients is one month’s rent, which will be split between my broker and the renting broker,” says Juan Vazquez, a Realtor with RSVP Homes Realty in Hollywood, FL.

John Klein, a Realtor in Coral Springs, FL, also says a commission of 10% of the monthly lease or one month’s rent is standard.

With those ballpark figures in mind, make sure you and your real estate agent make a list of services they’ll provide to get your home rented out. That way you’ll know what their fees cover. If an experienced Realtor can bring you a responsible renter who can pay more, it could be well worth the fee.

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.

Need help? Contact the best property management company in Toronto.

Adriana Velez is a food, wellness, and home writer . Her work has been featured in Healthyish, Prevention.com, Lifehacker, She Knows, and CafeMom.

Source: https://www.realtor.com/advice/rent/how-much-will-it-cost-me-to-rent-my-house-through-a-realtor/ | 10.26.2017

5 Illegal Rentals You Might Be Living in Right Now

By Colleen Kane | Oct 12, 2017

You, holing up in an illegal rental? Never!

At least, that’s what I thought before I was kicked out of my own illegal rental when I was, oh, about eight months pregnant. Worst of all, I had no idea my cellar apartment was illegal. That’s a horror story for another time, but it has a universal takeaway: Knowing what’s legal in your rental market can save you a boatload of trouble in the long run.

Laws differ by location, so you can protect yourself by researching the building and its local ordinances. One starting point is simply to Google the building’s address (with quotation marks around it for best results), which might turn up reports of prior or outstanding violations. If you’re suspicious about something, it’s also worth checking your local department of buildings or building safety, which will have the certificate for your building (in my city, it’s viewable online).

If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.

So before you move into a rental, if you suspect something’s up, here are some features that are red flags.

1. You’re renting a basement, cellar, or attic

Basement apartments might seem sweet, but watch out—as I learned in my cellar fiasco, unusual often means illegal.

In New York City, in fact, basements are the most common form of an illegal apartment, and cellars and attics may not be far behind. (What’s the difference between “basement” and “cellar” for lower-level spaces? A basement rises at least 50% above street level, while a cellar has the majority of its space below street level, and different laws can apply to each.)

To be declared legal, a basement, cellar, or attic apartment has to meet criteria like having a minimum ceiling height (in New York, it’s 7 feet) and being zoned as living space. So if the space is mostly below street level, if its ceiling seems suspiciously low, or if its windows are tiny, definitely do more research on whether this space is legal to rent as a residence.

2. You’re renting a loft or converted warehouse

Love the industrial vibe of living in a loft or converted warehouse space? You’d better check local zoning ordinances and codes. Many of these former factories weren’t legally converted to residential units, or they aren’t up to snuff in terms of safety and fire codes. So, ask the landlord for a residential Certificate of Occupancy, and beware of lofts where typical residential amenities like bathrooms, plumbing, and electrical seem hacked into the layout in a way that seems less than safe. As the deadly Ghost Ship fire proved, some warehouse conversions are done without regard to fire codes. If living spaces seem crammed in a haphazard manner, if electrical wires are exposed, or if paths to exit are scarce, look elsewhere.

3. You’re renting an in-law suite

In-law suites, also called secondary units, are the common name for self-contained suites in private homes, with a separate entrance, kitchen, and bath. But if you’re considering paying rent to live in such a suite in a stranger’s home, proceed with great caution.

“What we typically find is that in-law suites were never permitted as such, making them illegal apartments,” says Robert Pellegrini, president of the PK Boston law firm. He explains that when homeowners add a new residential unit, they often don’t know they need to get permits for this second dwelling—even if a family member is moving in. So if you’re considering such a unit, make sure to ask to see permits. They may also be required to provide other features such as a separate electric meters and a parking spot.

4. Utilities are included

Great! How can you go wrong with free utilities? Here’s how: If everyone living in the building is on one gas meter, the building may not be zoned for separate dwellings. It’s a possible sign that the landlord is hoping to hide illegal rental units. Similarly, if you’re told you can’t have mail delivered to the apartment’s address, it may be an attempt to hide you, the less-than-legal renter.

But this is not always the case. “Often, it is less costly for landlords to simply include the utilities rather than remeter and/or separate the utilities,” points out Pellegrini. So go ahead and ask the landlord for documentation on the number of dwellings allowed in the building to make sure everything’s on the up and up.

5. There aren’t enough windows or exits

If you’re renting a bedroom in a larger apartment with other people, make sure that “bedroom” is legit. To officially qualify as a bedroom, in addition to a door, rooms must have a window, but there is some wiggle space here. For instance, a skylight counts as a window in some locations, and the window need not be facing the great outdoors; even a window facing another interior room with a window could pass muster. There also needs to be another exit from the dwelling other than your main entrance.

“If there are no other doors, the landlord must provide a fire escape,” says Pellegrini. “Failing this, there is no way you can rent there.”

Laws differ by location, but in New York, you might have a wrought-iron, balcony-style fire escape or emergency stairwells. Newer buildings may even have evacuation elevators.The old adage to never take an elevator in case of a fire may no longer apply across the board.

Colleen Kane has written for Fortune, Money, and other publications and websites.

Need help? Contact the best property management company in Toronto.

Source: https://www.realtor.com/advice/rent/illegal-rentals/ | 10.12.2017

Do Real Estate Agents Deal With Rental Properties?

By  | Aug 24, 2017

If you’re familiar with the struggle that is finding an apartment online, the idea of a real estate agent who can help you in your search might sound like a godsend. We all know real estate agents help people buy a home, but did you know they can also help people find properties to rent?

A real estate agent can save you the hassle of tracking down landlords and property managers from Craigslist, especially in bigger cities, though the services they provide (and the fees they charge) vary by location. Here’s what you need to know.

Real estate agents and rentals

What a real estate agent does to help you find a rental depends on the location—whether it’s a large city or a small town—and the agent. Sometimes the agent will guide your search from the very start, helping you find the right neighborhood, apartment size, and price range, then go with you to open houses. More likely though, you’ll already have a lot of that information decided, and the agent will send you listings that might be of interest to you.

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No matter what, once you’ve decided on a rental and have been approved by the landlord or management company, your agent should help you read and understand your lease.

“Most tenants can find a place without a real estate agent, but they forget to seek out someone who can help them understand what they’re signing when they sign a lease,” says Dillar Schwartz, a Realtor® in Austin, TX.

Your lease has all kinds of vital information in it, including what repairs you’ll be responsible for, the penalties for late rent, and even the terms for breaking the lease. You want to be sure you’re not signing anything that puts you in a bad position financially or violates your rights as a tenant.

Where you’re looking to live makes a difference

In cities such as New York or San Francisco with huge populations of renters, it’s common to use a real estate agent to find a rental property, and there are entire agencies that specialize in doing just that. In some cities, it’s more common for agencies that focus on rentals to be called “apartment locators,” but they provide essentially the same service.

In places where rentals are not as common, you might find that apartments, townhouses, and condos are more commonly handled by the complex’s management company. People renting out their homes in primarily owner-occupied suburban areas, especially those with HOAs, will often use real estate agents to help find renters who meet the neighborhood association’s requirements.

How do you find a real estate agent who deals with rentals?

“One place to start is realtor.com®, and do a search for rentals in the area you wish to live in, then contact the agents that represent those properties,” says Teri Andrews Murch, a Realtor in Auburn, CA.

Personal referrals are also a great way to find someone. Ask friends for the names of reliable real estate agents they have worked with. Even if those agents don’t work with rentals, they probably have a colleague they can connect you with who does. It’s important to find someone you trust, since that person will be helping you find your new home.

How much are real estate agent fees for rentals?

Broker fees are another thing that vary widely by location. In many places, the landlord pays the real estate agent to help find a desirable tenant. Apartment locator services are almost always paid by the landlord. In more competitive rental markets, the tenant will often be responsible for the real estate agent fee, sometimes called a “broker fee.” In fact, even if you find the listing on your own, some rentals will require you to pay a fee to the landlord’s broker for listing the property.

Fees can be as low as $50 to $75 for a credit check or application, but more common rates are one month’s rent or 15% of the annual rent on the apartment.

Before you start to work with an agent, make sure you ask what fees you will be responsible for paying.

Need help? Contact the best property management company in Toronto.

Audrey Ference has written for The Billfold, The Hairpin, The Toast, Slate, Salon, and others. She lives in Austin, TX.

Follow @audreyferenceSource: https://www.realtor.com/advice/rent/are-there-realtors-out-there-who-help-find-apartments-how-would-they-earn-commission-on-these-types-of-properties/

5 Bad Landlords You Might Meet—and How to Keep Them in Line

 

By  | Sep 14, 2017

Landlords wield an awful lot of power over their tenants—and where there’s power, it’s likely to be abused. We’re not saying all landlords are awful, but some sure can get annoying or offensive, or leave you in the lurch. To help you navigate these dicey scenarios, here’s a field guide to the five types of landlords you might encounter. We’ll show you how to deal with their worst behaviors so you can find a way to live happily under their roof.

1. The MIA landlord

You know that landlord who’s so impossible to reach, you wonder if he’s a figment of your imagination? Playing hard to get might work great for him, but tenants often need to get in touch with landlords for all kinds of issues, many of them urgent.

“All landlords, property managers, and building owners should be providing the tenant with emergency phone numbers,” says Denise Supplee, co-founder of SparkRental.com.

But if yours doesn’t—or rarely returns your calls or emails—it might be time to ignore polite decorum and be a squeaky wheel. Call and email daily if you must—it’s annoying, but it will likely get his attention. Or send a certified letter. Or, since you have to send a rent check every month, include a letter, pictures, or other evidence that details your problem with that check. If and when the check gets cashed, you’ll know your landlord received your complaints.

You might be tempted to withhold rent, but that’s rarely a good idea. Doing so can damage your rental payment history and credit score, or even give your landlord cause to evict you. In some states, withholding money is a viable option, but you should set that money aside in an account, because if you go to court and lose, you’ll have to pay it back.

2. The landlord without boundaries

On the opposite end of the spectrum are those landlords who are around way too much. Your landlord might call at all hours—or worse, drop by unannounced.

“A landlord is not permitted to drop by without notice,” says Supplee. That’s true even if he’s rapping on your door because you’re late on rent! In fact, in most places a landlord is required to give you 24 to 48 hours notice before visiting, and those visits are usually kept between the hours of 9 a.m. and 5 p.m.

So if your landlord’s barging in whenever he wants, you’ll want to politely but firmly make those restrictions clear. If you’re uncomfortable with being so direct, try something along the lines of, “I work long hours, so I prefer peace and quiet when I get home.”

If the problem persists, though, you might have to draw a harder line.

“Write down every date and time a landlord violates your privacy and send him a written request to stop,” says Supplee. “If the behavior continues, you may have to contact an attorney to file suit.”

3. The lazy landlord

Whether it’s a leaky faucet or a collapsed beam, your landlord is responsible for arranging and following through on certain repairs. So if he is dragging his feet, you have a few options.

“There’s a little-known tip called ‘repair and deduct,’” says Supplee. “Each state has its own requirements, but generally speaking, if the tenant gets the repair done, he or she can deduct the receipted amount from the rent.”

Thomas Mark, an attorney who specializes in tenant-landlord disputes, explains: “In court, you must show that the landlord knew about the problem and that he failed to repair the problem within a reasonable time.”

You can bolster your case with photos of the flaws, documented repair requests, inspection reports from professionals, and even witnesses in your apartment who can testify on your behalf.

4. The subtly discriminating landlord

Of course, you’d never choose to live under a landlord who’ll discriminate against you because of your race, gender, sexual orientation, or some other factor, but you can’t always tell right away. Some studies have shown that discrimination can manifest in subtle ways, like when landlords show you the laundry room and other facilities when showing you an apartment. Once you’ve moved in, a biased attitude might affect how long it takes them to respond to an email or phone call.

And “discrimination doesn’t have to be overt to be illegal,” says Mark. If a landlord makes you feel uncomfortable or unwelcome, you could have a case. When in doubt, contact the Leadership Conference on Civil and Human Rights to find out about housing discrimination enforcement agencies in your state.

5. The BFF landlord

Being pals with your landlord: What could be better? Don’t get too excited, though, because there’s a reason—several, actually—why it’s risky to do business with friends. For example, what toll will a rent hike take on your friendship? And what about repairs? At first, your landlord buddy might rush to fix your problems, but who’s to say he won’t count on your “understanding” that he can’t get to something right away?

Bottom line: Even if you’re pals, make sure there’s a rental lease in place outlining expectations in terms of rent, repairs, and other sticky issues. If you care about your friendship—and your home—it’s the best way to avoid messy misunderstandings.

Matt Christensen, who lives in Westlake, OH, has written for Maxim, Cosmopolitan, Men’s Journal, and other publications.

 

‘My Landlord Is Selling the House I Rent—What Are My Rights?’

By  | Aug 7, 2017

If “my landlord is selling the house I rent—what are my rights?” is a phrase you’ve Googled lately, we feel your pain. Since landlords own the property you’re living in, they do have the right to sell it whenever they want. Still, that doesn’t mean that they can just kick their renters out on the street immediately. Tenants have rights, too! Here’s what you should know and how to handle things when a landlord is selling your home.

Do you have to move when a landlord sells?

Don’t just assume you have to vacate immediately. If you’re lucky, your landlord might sell to a buyer who will be happy to sign a new lease with you once the sale goes through. So, check with the new owner. But if that’s not an option, or you’re unhappy with the new lease terms, you might have to move out.

When do you have to move?

If you’re on a month-to-month lease, in most states, landlords are required to give a 30-day written notice to vacate if they decide to sell. Some areas have different laws, though, so it’s wise to check. For example, lucky Seattle dwellers have 60 days

If you signed a lease for longer—like a year or two—you likely have the legal right to stay put until your lease ends. Even if the house sells before your lease is up, the new owner has to respect that legally binding contract.

“A lease is tied to a property, not an owner,” explains Lucas Hall, founder of Landlordology. So even if the homeowner changes, the lease remains. “Even a specific month-to-month agreement will transfer,” adds Hall.

Check for a ‘lease termination due to sale’ clause

Also check if your contract contains a “lease termination due to sale” clause. In that case, whatever is stated there stands; even long-term leases might not have any protection, Hall notes.

In other words, if you have eight months left on your lease but your contract says the lease termination due to sale is 30 days, then 30 days is all you get.

One piece of advice—which we’ll admit is information you maybe could have used sooner—is that you can negotiate how much time a landlord is required to give you if he terminates a lease due to sale. The catch is, you have to do it before you sign the lease.

“For example, if the landlord wants the option to terminate the lease due to sale, the tenant could require the landlord give at least 60 days’ notice, and/or require a ‘buyout’ of a certain amount of money,” Hall says.

If it’s too late to put this advice into action this time around, keep that little nugget  in mind for the future.

Look into a tenant relocation allowance

It sure would be nice if your landlord paid you to move out, wouldn’t it? Admittedly, it is rare, but there are some circumstances under which your landlord might be obligated to fork over some cash in order to get you to vacate, due to the fact that he’s decided to sell your building or upgrade it to condos.

In San Francisco, for example, under the Ellis Act, each tenant receives $5,555.21 if evicted from a unit. This is known as a tenant relocation allowance, or tenant relocation payment, and should be included in your state’s landlord and tenant laws.

Keep your landlord in line

While you’re still living in the rental, you have basic tenant rights. For example, your landlord can’t cut off your water or electricity, enter your rental without notice (except in an emergency), or hire a remodeling crew to work until 2 a.m. If you think your landlord is violating your tenant rights, contact a tenant lawyer or your local housing authority for help.

What happens to your security deposit

Your landlord is legally required to return your security deposit, sans any needed repairs or cleaning, after you move. State laws vary, but generally a landlord has 14 to 60 days to send you a check after you move.

When the time comes, treat the move like any other. Make sure you remove all of your property, clean the rental, and return the keys to the landlord. If possible, do a walk-through with your landlord, and give him a written notice that includes your new address. That way, you can end things on a good note before you move out, and on with life.

Angela Colley contributed to this article.

Cathie Ericson is a journalist who writes about real estate, finance, and health. She lives in Portland, OR.
Follow @CathieEricson

Don’t Budge: 7 Compromises You Should Never Make When Buying a Home

By  | Sep 21, 2017

Every successful home search begins with a wish list. Armed with your inventory of must-haves, you’ll know how to focus your search and recognize a potential home that isn’t worth your time.

Still, there’s a strange thing that seems to happen when you’re deep in the trenches of house hunting: The more you look, the longer that wish list seems to grow. But sooner or later, you have to own up to the fact that you can’t have everything—it’s inevitable that you’ll make some compromises somewhere.

And, in these days of tight inventory and cutthroat competition from other buyers, you might feel forced to waver far afield from your hallowed wish list in order to land a home.

That’s OK—it’s important to be flexible. But there are a few times when you absolutely should draw the line. Here are seven areas where you’ll want to dig in your heels.

1. Buying a fixer-upper when you really want turnkey

You have never swung a hammer, have a phobia of power tools, and always pictured yourself in something new and shiny. But that doesn’t mean you won’t fall in love with a charming, century-old farmhouse that needs a ton of work. Now’s when you have to decide: Are you up to the financial and emotional challenges of taking on major renovations?

 

It’s an option you should seriously consider (with the help of an experienced general contractor) if you’re in a highly competitive market. But if you don’t think your bank account or your marriage could survive many months of upheaval, stick to your guns and insist on a turnkey home, says Mike Kessler, a broker with TSG Residential, in Davidson, NC.

“There have been times when I’ve said to clients, ‘after being with you for a week, I really think we need to look at new construction,'” Kessler says. Many of those clients, he adds, were later grateful for the course correction, saying, “We would never have been able to enjoy ourselves in [an older] house.”

2. A good school district

Even if you don’t have children, you should make sure the house you’re eyeing has desirable schools nearby, says Tina Maraj, a Realtor® with Re/Max North Orange County in Fullerton, CA.

Does it matter if you’re not looking to have a few kids? Well, things can always change. But even if they don’t, good schools typically translate to a higher resale value—potential buyers with families will want to be in the right district.

Just make sure to do your research and determine where the home sits in relation to the school district boundaries.

“Often agents will advertise a property as being near such-and-such school area, but not necessarily specify the district, which can be very confusing,” Maraj explains. “It can be a real eye-opener if a buyer closes and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rated high schools.”

Go to the school district’s website to get a map of the district boundaries.

3. The floor plan

Does the home fit your minimum criteria in terms of number of rooms and the flow of the main living areas? If not, cross it off your list, says Sarah Garza, a Realtor and military relocation specialist with Trident Homes Realty in Arnold, MD.

Garza can share some personal cautionary tales: A military spouse, she’s moved 12 times in the past 20 years, buying and selling nine homes in the process.

“I regret that I compromised on layout in the past,” she says. “When I really needed four bedrooms, I’ve gone to three and then wished I hadn’t.”

Sure, you can add on. But don’t use that option as a fallback, Maraj warns.

“You can change a layout to make it an open floor plan, but it’s a lot more difficult to change the bedroom and bathroom count,” she says. “In the long run, you could end up having a lot of problems and taking on a really big financial undertaking.”

4. The neighbors

During your search, don’t just focus on the house you’re interested in—check out the neighboring homes as well, Maraj says. Are the properties well-kept, or candidates for an episode of “Hoarders”?

The condition of the properties around you can affect your future resale value. And they can just plain drive you crazy. Make sure you look—and listen—any time you visit your prospective home.

“You can’t change the house in front of you or to the side of you,” Maraj cautions. “And if there’s a barking dog every time you’re viewing the property, that’s another thing that you absolutely cannot change.”

5. Your budget

You’ve probably already determined how much you’re willing to pay for a home—and you shouldn’t budge on that number. But you should also dig in your heels on the additional costs beyond the sticker price. That means setting a budget for your monthly payments, HOA dues, utility costs, and real estate taxes—and sticking to it. (Hint: You want to do this before you start looking at homes, and definitely before you start making offers.)

Yes, a lender will give you a pre-approval and tell you how much house you can afford. But this is just one piece of the puzzle, and the costs of homeownership can still land you in a mountain of debt if you’re not careful, Kessler points out.

“I try to do a lot of pre-planning with clients about what can they really afford, as opposed to what the bank tells you,” Kessler says. “You never want to be house poor.”

6. Commute time

If you’ve already determined that you’re willing to take on a 30-minute commute, don’t be swayed to take something that’s even a few minutes longer, Garza says.

“Sometimes buyers fall in love with all the shiny bells and whistles of a house that’s an hour away from work, and want to compromise on what they’ve told me from the beginning,” she notes. “I tell them, ‘I know it doesn’t matter right now because you really love this house, but that’s two hours every day that you’ll be sitting in the car and not enjoying your house. Is that worth it to you?’”

She adds: Until you’ve actually driven the route to and from your potential home and your office, at the times you’ll be commuting, you should never consider compromising.

In some large cities, being just a few miles from the highway can tack on an additional hour of commuting. Could you handle that after a long day in the office? Think carefully before making the sacrifice.

7. Parking

Speaking of your car, if you own one (or two), you absolutely want a guaranteed spot to park, whether that means an enclosed garage, a driveway, or assigned parking.

“There are many communities that now restrict outside parking, guest spaces, and overnight parking, which could be a real homeowner nightmare if you have to fend for yourself,” Maraj says.

To avoid frustration after you’ve closed a deal, stick to your guns about the things that are most important to you while making your choice, and ignore the rest of the noise.

Wendy Helfenbaum is a journalist and TV producer who covers real estate, architecture and design, DIY, gardening, and travel. Her work has appeared in Woman’s Day, Metropolis, Costco Connection, Garden Collage, Parenting, Canadian Living, Canadian Gardening, and more.
Follow @wendyhelfenbaum