Archive for the ‘Uncategorized’ Category

How do I set a market rent? Isn’t it just a matter of trial and error?

January, 2020

Setting the right amount of rent isn’t necessarily easy. It can be trial and error to find the right rent for your properties for your market. For comparison purposes at least three properties similar in size, features, and amenities in your local area should be used to determine a market rate.

Setting the rent much above the market rent can mean there are fewer applicants that respond to your advertised vacancy. Renters searching for a new rental can very quickly determine the value of a given type of unit in a particular area. For many tenants, a rent that is even a small percentage above market rent will eliminate that unit from their consideration. Fewer applicants mean a reduced pool of screened prospects from which to select a tenant. To fill the vacancy you might need to modify your rental standards or accept the possibility of an extended vacancy period.

Lower than market rent could mean reduced cash flow, perhaps a negative cash flow. However a slightly lower than market rent could also result in filling a vacancy sooner and help offset reduced monthly revenue.

There are many factors that influence market conditions and, accordingly, rent rates. Rent rates vary from area to area, location to location within an area, and market supply and demand. Influences such as the location of the property, the condition of the property, its amenities and upgrades, along with unit size and floor plans can attract the attention of renters looking for new housing.

My tenants’ lease is expiring soon. They have been good tenants but I think I can get a higher rent if I go to a new tenant. Is a renewal tenant really better for business?

January, 2020

The decision to retain a tenant or to allow lease expiration is not always an easy decision particularly when the current tenant has been a good tenant.

If you have analyzed market rents, you must have a rent amount in mind that you find acceptable for your business operations and are fairly confident that your applicant pool could support that amount. If these tenants are the good tenants that you would want to keep, why not make your renewal offer to them contingent on accepting the new rent amount (market rent). If they are agreeable or you can reach an acceptable compromise with them, you have avoided a perhaps unnecessary vacancy and its costs.

Keeping a current tenant by renewing the lease can simplify property management. Doing so is often not cost effective – landlords should do the calculations regarding the total cost of preparing the the vacant unit for a new tenant, including the potential longer vacancy period due to the higher rent; what that means regarding the increased rent needed from a new tenant who may not stay more than the initial lease term; and whether the rental market currently supports such a higher rent. Renewing a lease avoids the time consuming process of finding and qualifying a new tenant, and eliminates the costs of cleaning and updating a vacant unit.

Keep in mind that a move-out is costly for tenants as well. If the new rent is reasonable, tenants usually want to stay rather starting over with a new property and a new landlord.

However, while the option of offering lease renewal to the current tenants could make rental operations a little easier, there are several issues associated with a lease renewal that should be considered before you offer renewal or decide to market to a new tenant.

While your current tenants may have paid rent on time, been a good neighbor, and otherwise adhered to rental rules, you should conduct a property inspection to determine that the rental unit is being properly maintained by the tenants and their housekeeping is at an acceptable standard before offering a lease renewal. If the tenants have not fulfilled their maintenance responsibilities and the unit is not in good condition, you would not want to renew the lease and allow future potential damage to the property.

Many fixed term lease agreements are for a term of one year. A tenant who qualified under your rental standards a year ago may have had a change in his ability to meet your current qualification criteria. While many landlords require a tenant to requalify to current standards for a renewal of lease, you may be familiar with your tenants’ situation and confident that your tenants will continue to meet their rental obligations. You should always evaluate the potential financial risk of any tenant while being knowledgeable of applicable state or local laws regarding the use of credit reports in screenings. As a general consideration, if tenant screening is legally permissible, a credit rescreening of the tenants could be compared to the tenants’ credit screening at application. If there is significant difference in income to debt ratios, you may want to consider a renewal with conditions, e.g., an increase in the security deposit.

A lease renewal decision may be influenced by local area market conditions and the market position of your property. Starting over with a new tenant may allow for increased rents but there is potential for financial risk from applicants with unknown rental histories. With a lease renewal you at least have a rental history record to support your decision.

There may be other reasons that despite being good tenants you may not want to retain them as tenants. You still need to do market analysis to determine how to best market your property to attract new tenants.

How can a landlord help protect this business from rental scams?

January, 2020

The most common rental scams are identity theft and fictitious identities. Identity theft is fraud that occurs when an individual’s personal information is used without their knowledge by another individual to commit a criminal act. An applicant may use bits and pieces of the identity theft victim’s personal information, such as the victim’s true name, date of birth, or Social Security number, as well as his own information on the rental application. The applicant may be approved for tenancy based upon the qualifications of the identity theft victim. Using a variety of screenings and reference checking can help catch obvious discrepancies or red flags that need to be investigated.

Manufactured identities are fictitious identities created through the use of digital fraud. If you approve the applicant who is using a false name and background, as a tenant, he has the means to use your housing decision as a reference in obtaining credit or to commit other fraud. The tenant’s fraud may not be discovered until the tenancy is well along and may only be discovered if there is a material default of the lease.

If you use online rental applications, you should be particularly careful to verify the identity of the applicant. You will want to meet the applicant in person to review his application. An online application provides a level of anonymity that can create problems for a landlord since you would no way of knowing how the application was completed.

The simplest steps to help avoid business loss from rental scams is to recognize fraudulent behaviors, be alert to red flag issues, and thoroughly vet applicants throughout the application and interview process. Discrepancies, omissions or inconsistencies in information in the application itself, or as discovered during applicant interviews, or as revealed in reference verifications can help you identify red flag issues.

The timing of the investigation and verification process is critical to identify fraud before accepting the applicant to be your tenant. Once a tenant is installed, you must use the legal system to evict the tenant from the property and regain possession of your rental unit, which may take several months and be at great expense.

Landlord Rules and Regulations

January, 2020

A landlord has the right to set rules and regulations for his rental property.

The landlord’s rules and regulations, often referred to as the “house rules”, are in addition to the lease agreement terms and conditions. The house rules and regulations may be incorporated into the lease agreement or provided as a separate lease addendum. The signed lease and lease addendum legally bind the tenant to the landlord’s terms and conditions, rules and regulations during the period of the lease term.

House rules and regulations control the use of a rental property, its amenities, buildings, equipment, and common areas, for the benefit of the tenants’ safety, security, welfare, convenience, and enjoyment of the rental units; help protect the landlord’s property from damage and misuse; and ensure fair distribution of services and amenities to all tenants. Rules must be reasonably related to the purpose for which they were developed. House rules cannot be used for the purpose of the landlord evading his legal duties and obligations, nor can a landlord use house rules to deny tenant rights. The landlord’s house rules must apply to all tenants in a non-discriminatory manner.

The house rules provide the tenant with the landlord’s expectations of the standard of conduct required for living at the rental property. The tenant has the duty to perform to lease terms and conditions as agreed. Clearly established rules in language that a tenant readily understands provides the guidance and structure for compliance – what the tenant is required to do and what the tenant cannot do. The rules help to minimize confusion or misunderstanding of policies for day-to-day living requirements such as housekeeping duties and safety and security rules.

Most commonly a landlord will include a clause in his lease agreement that references an attached lease addendum for the landlord rules and regulations. The language in the lease clause may be similar to the following: Landlord reserves the right to establish and change from time to time his rules and regulations he deems appropriate for the common use and benefit of all tenants with proper notification to Tenant. Tenant shall comply with such rules and regulations as uniformly enforced in a non-discriminatory manner. Tenant has read and acknowledges receipt of the rules and regulation. Tenant understands material violations of rules and regulations may be grounds for termination of lease.  In the event of a conflict between the rules and regulations and the express terms of the Lease, the Lease terms shall prevail.”

House rules and regulations are usually detailed in language and scope in order to provide greater protection to current residents and the rental premises. Rules and regulations provide information and instructions to tenants on rental policies covering such matters as:

  • Rents
  • Landlord Entry to rental premises
  • Quiet Hours
  • Noise and Disturbance
  • Waste and Negligence
  • Guest Stays
  • Pets Policy
  • Maintenance and Repair responsibility
  • Keys and Lock-out policy
  • Housekeeping Standards
  • Trash and Garbage disposal
  • Vehicle Registration
  • Parking Regulations
  • Smoking Policy
  • Use of common areas
  • Services and Amenities

Provisions for Rule Changes

Minor Changes

A landlord may want to make changes to his house rules. Proper notice to tenants of a minor change in policy or practice usually requires a 15 or 30 day advance notification of change. A landlord would need to research state statutes to determine if a different notice period is required. A minor rule change would be a change that does not affect the tenant’s use and enjoyment of the rental premises or the agreed upon services and amenities at the time of his lease signing. As an example, a minor change might be a change in the access hours to the laundry facilities on premise. A notification period allows tenants to become used to the new rule.

Major Changes

For a fixed term lease, if the landlord wants to make major changes to the house rules that will affect the terms and conditions of the tenant’s lease agreement, such as changing the way(s) that the tenant has enjoyed living at the property by reducing services, interfering with the tenant’s right to quiet enjoyment of the rental property or that materially affect the tenant’s financial situation such as an increase in rents, a landlord cannot implement that change unless a tenant agrees in writing to the change through a signed lease addendum or the current lease agreement expires.

When a major change to lease terms and conditions is requested, a tenant has a choice to accept the change, refuse the change, or negotiate with landlord for possible alternative terms and conditions. If the tenant doesn’t sign the lease amendment, the amendment cannot go into effect. The landlord has no choice but to wait for the end of the tenant’s lease term and implement the change upon a renewal of the lease or a new tenant is installed.

Major changes such as rent increases or reductions in services or amenities have a significant impact on tenant decisioning to accept an offer of tenancy. Had the higher rent or fewer services been the offer in place when the current tenant signed his lease, the tenant might have decided to look for different rental housing. A landlord cannot arbitrarily change the tenant’s lease terms and conditions.

For a month-to-month rental agreement, a landlord must provide notice to the tenant of the proposed change, generally a 30 day notice period. State statutes may differ in the notification period requirements.

Renewal of Lease

A landlord can implement rule changes when a tenant’s lease agreement expires. If the tenant wishes to renew a lease when his current lease expires, the lease terms and conditions in effect at that time will be the terms and conditions of the tenant’s renewal lease. A landlord knowing that he wants to make major changes in lease terms and conditions should give adequate notice to a tenant whose lease will soon expire. The tenant should be allowed time to analyze the changing terms and conditions to decide whether to renew or not.

Safety and Security Reasons

However if a rule should be changed for safety and security reasons to protect tenants, a landlord may want to provide for that event by including in his lease a clause that waives the customary notification period and allows immediate implementation of the change in rules. Notification to the tenants would still be required that documents the reason and the need for the immediate change in rules.

New Tenant

A landlord can make new rules or major changes to existing house rules that will be the lease terms and conditions for a new tenant accepting tenancy.

Is an application deposit refundable? What if the applicant doesn’t qualify or changes his mind?

January, 2020

There is difference between an application deposit and an application fee. While the terms seem similar, they cover different issues. .An application fee is almost always charged for application processing but an application deposit is collected only in specific circumstances.

If a landlord collects an application deposit to hold a rental unit for an applicant, a refund of the application deposit will usually depend upon the circumstances of the matter including landlord-tenant statutes, the landlord’s written policies, and the language in the deposit/hold agreement.

If a landlord charges an application processing fee to conduct tenant screenings, including landlord analysis and evaluation of applicant qualifications, an application fee is considered non-refundable. This is generally true even if the applicant is rejected by the landlord. Once the tenant screening process has been initiated, the application fee becomes the landlord’s business funds.  If an applicant qualifies to standards and is offered tenancy but declines the landlord’s offer, the application fee is not refundable.

A potential applicant should clarify with the landlord the details of the application process and the terms and conditions of the screening process including fees. Once known, the potential applicant can decide if he has sufficient interest to apply for the rental and be tenant screened. There may be fine print in the application form that could make a difference in his decision to apply.

In some states landlords are required by statute to provide potential applicants with written notice of rental eligibility criteria to ensure applicants know what is expected and can self-elect to apply for a rental. If a potential applicant knows he would not or could not qualify to rental standards, there would be no need to apply and forfeit the application fee.

An application deposit to hold a rental unit can be collected in addition to the application fee. When the landlord holds the rental unit with a deposit from only one applicant, it is off the market and unavailable to other qualified prospective tenants who may have to be turned away. If the applicant later changes his mind and doesn’t accept the rental offer, the landlord may have suffered financial harm through lost business opportunity. In such a case, the landlord may have justifiable reason to retain all or part of the holding deposit.

If an application/hold deposit is collected, there should be a signed written agreement that unambiguously defines the terms of the deposit including the terms and conditions regarding acceptance or rejection of the applicant and whether a refund, full or partial, of the application deposit will be made according to the facts of the matter.

Is a signed application binding?

January, 2020

No, an applicant by signing the rental application does not create a binding agreement between himself and the landlord offering a rental unit. While an application is required by a landlord to begin the screening process, an application is not a legal document and therefore is not a contract between landlord and applicant. An applicant signifies his interest in the landlord’s offering of an available rental unit by submitting an application. However, a landlord is not obligated to offer tenancy to an applicant upon application submission nor is an applicant obligated to accept a landlord’s offer of tenancy after processing the application. The applicant in signing the application is asserting that his information is truthful and accurate.

Is it better to use an online application rather than a paper application form?

January, 2020

A rental application allows a landlord to collect and organize applicant supplied information relevant to qualifying the applicant for rental housing.  A landlord can request any business related information that would objectively point to the applicant’s ability to pay timely rent and comply with lease terms and conditions.

The format of a rental application is a business decision by the landlord. Determining which format to use can depend upon a landlord’s preference, the resources available to his business operations, and the market being served.

Paper applications and online applications can be equally effective, cost efficient methods to capture information for screening purposes provided there has been due diligence in the development and implementation of an application “form.”

When the same information is requested of every applicant, the same screenings are conducted on every applicant, and the same analysis performed to evaluate applicant screening reports, the type of media used to collect the required information may be only a matter of landlord preference. However, there can be no preference in the application and screening process itself. All rental practices must be non-discriminatory and legally compliant.

A rental application in paper form is the traditional format used by many landlords to begin tenant screening. There are some perceived benefits in using paper applications. The paper format is familiar to most potential renters; an application can be completed in the rental office after a showing; a paper supply is easily sourced; a paper document does not require computer skills or access to the Internet for completion and submission; paper forms appeal to a traditional rental market pool; paper applications provide ready documentation for legal compliances; and signed applications aid in defense of potential claims of discrimination and unfair treatment. The landlord is present at the time of application to verify applicant identity and answer general rental questions. On the other hand, paper applications require safe and secure handling, storage, and final disposal per legal guidelines. Access to application forms should be restricted to business purpose and forms secured for privacy requirements. A landlord will need to anticipate that some forms will be turned in with missing or incomplete information or the information may be hard to read due to handwriting illegibility. This will require additional time to be spent in clarification of information or require additional information to be provided by the applicant.

An online application process accessed through a landlord’s rental portal may appeal to certain demographic portions of the rental market. The application process can be initiated at the applicant’s time of choosing from a mobile device thereby making it easy for the applicant to apply for the rental. This is an effective method for those potential renters searching multiple rental offerings or their preferred method of doing business. The issue of incomplete or missing fields of data is remedied by the application program requiring all critical fields be completed before submission for processing. With the applicant e-signature consent to begin tenant screening, the process of qualification can immediately begin and results returned in a shorter timeframe. With potentially quicker turnarounds on reports, rental decisioning can be faster and vacancy downtime reduced. Applications are processed according to date and time submitted reducing potential claims of discriminatory treatment of submissions. A landlord will still be responsible for legal compliances, safeguarding of applicant information, and retrieval and handling of electronic files as required for business compliances.

Whichever format a landlord chooses to collect applicant information, the rental application is an important risk assessment tool, and can help reduce potential claims of discrimination in screening and selection of applicants. As documented in writing or electronic form, the signed rental application and the tenant screening results support the landlord’s decision to offer tenancy to the selected applicant.

Qualifying a Rental Prospect

December, 2019

Qualifying a rental prospect begins at the first point of contact between the landlord and a potential tenant. That initial contact could be as soon as the posting of a rental listing advertising a vacancy.

When posting the notice of vacancy, a landlord hopes to create interest in his rental unit that can be soon converted to a tenant in residence. Rental prospect response to the listing provides pre-screening opportunity to gather information, assess risk, and qualify the prospect to minimum rental standards.

The prospect’s answers to a few crucial screening questions can help determine if the prospect could qualify to the landlord’s rental standards and that an application should be pursued.  A few questions can be well worth the time spent to better protect the rental investment though risk assessment.

The prospect in turn may have questions to ask the potential landlord. The rental listing should have provided basic information about the rental unit – address, number of bedrooms and baths, monthly rental amount, and the required security deposit. During the conversation with the prospect, the landlord will have a chance to provide additional details on rental policies, qualification standards, rules and regulations, and expectations of every tenant.

Whether the initial contact is by phone or in person, it must not be used as a means to screen out prospects by asking leading questions or stereotyping prospects by language and speech patterns or by any other characteristic that is prohibited by federal, state, or local fair housing laws.

A landlord should have a standard set of questions to ask all prospective renters who contact them regarding a vacancy. Using a set of standardized questions will help avoid claims of discrimination.

What are some examples of questions? Some of the following questions may help determine the prospect’s rental situation. The answers can provide enough information for analysis and evaluation to advance a prospect.

“What questions do you have about the property?”

Allowing the prospect to go first with his questions provides a landlord an opportunity to listen to what the prospect feels is important, what needs clarification, or what requires confirmation.

“The anticipated move-in ready date for the unit is XXX. Does that fit your schedule?”

Typically a tenant is required to give a minimum of 30 days’ notice of move-out. If a prospect wants to move in immediately or within a very short time, it may signal a problem for any number of reasons. Responses that suggest poor planning on the prospect’s part, a pending eviction, past due rents or other lease violations at his current rental should be a red flag notice to the landlord. If the move-in date is greater than 90 days or indefinite, the prospect may not be a serious about moving and should usually not be considered as a candidate for tenancy.

“We offer a one year fixed-term lease. “How long do you plan to rent?”

Most landlords are looking for a stable, long-term tenancy, typically a one-year lease agreement. A response such as “it depends” may indicate a prospect isn’t committed to a firm decision for moving or has other issues that the prospect is unwilling to share with the landlord.

“Our standard application process is XXX. Will you have any problems completing the standard application process?”

The landlord should explain to interested prospects the landlord’s tenant screening process includes, as applicable, written application, credit report, background screening, and verifications for employment, rental housing history, and references.

If there is hesitation on the prospect’s part to agree to all or part of customary screenings, there could be any number of possible reasons including negative findings when screenings are conducted. If the prospect cannot agree to stated rental policies, the landlord may decline to go forward with the application process.

All adults living in the unit are expected to complete full tenant screenings and to sign the lease.

“Rent is XXX monthly. The security deposit is equal to one month’s rent. We collect first and last month rent plus the security deposit. The move-in funds total XXX, payable at lease signing.  Would that be a problem?”

The prospect should be made aware that possession of the rental unit will not be given unless all applicable fees, deposits, and rents are paid per terms and conditions of the lease agreement. If the prospect counters with alternative arrangements, such as payment installments, the landlord should be prepared to answer according to applicable landlord-tenant statutes for his state, and his previously stated business policies and practices. It may signal a red flag to the landlord if the prospect is not prepared to pay required move-in funds at signing.

“Why are you moving?” How long have you lived at your current address?

Typical responses are to get more/less space, be closer to work or school, changing jobs, or family responsibilities. If the prospect is evasive or offers vague reasons, there may be a problem with his current landlord or neighbors.  It can be a red flag and definitely something to consider if the prospect has a long list of complaints about his current landlord and neighbors.

Does the prospect have a history of moving frequently? What are the chances that the pattern will be repeated?

“How many people will be living in the rental property?”

Landlords set occupancy limits based on regulations and codes per local building, health, and safety standards as well as limitations set by property size and mechanical/system/utility constraints. A maximum number of occupants for square footage space may be specified by local ordinances. If the number of potential occupants exceeds recommended standards or the prospect indicates an uncertainty regarding the number of occupants (i.e., it varies), it could be a potential red flag for the landlord.

“Can you provide employment references and proof of income?”

A landlord must determine to the best of his ability that the prospect can prove a steady source of income sufficient for rent and living expenses. If a landlord requires an applicant to have a gross monthly income three times the monthly rental amount, a prospect needs to know that upfront.

“Can you provide previous landlord references?”

A landlord should require an applicant to provide rental housing history previous to his current landlord. Reference checking with previous landlords is an important part of tenant screening. The landlord will want to find out how well the former tenant paid his rent and generally performed according to the lease agreement.

If a prospect cannot supply satisfactory previous landlord references, it can signal problems. If a prospect asks this current landlord not be contacted, it could be for reasons such as lease violation warnings or notices.

“Have you ever had to break your lease?”

A landlord will want to know if a tenant sees a lease as a firm contract. A tenant who broke a lease because of job relocation is understandable. A tenant who broke a lease because they wanted a change of scenery is not.

Other Rental Policies

A landlord may want to provide information on other rental policies, such as pets, parking and vehicle registration. If the rental unit and property are smoke-free, a prospective tenant should be aware of such restrictions.

Last Question

After a landlord and prospect have discussed the rental terms and conditions, policies and practices, the landlord should ask the prospect if he has any other questions.  A landlord wants a prospect to be satisfied as a tenant living in the rental unit.  Although much information was already provided, the prospect may have thought of other issues that need clarification or should be discussed regarding his rental situation.

Pre-screening a rental prospect is a risk management practice that reduces the risk of installing a problematic tenant.

What about hoarding? I’ve heard that seniors hold onto everything. I don’t want to have nuisance on my property.

December, 2019

It isn’t only seniors that suffer from hoarding disorders. Studies have projected that one out of twenty Americans suffer from hoarding disabilities. The exact number of hoarders is difficult to determine since hoarding behaviors can remain undetected for months or years. It is often only discovered when a complaint is received from a neighboring tenant or a maintenance request for entry is refused by the tenant that hoarding behaviors can become evident to property managers.

Any tenant who suffers from hoarding disorder can cause serious problems in property management. As examples, hoarding behaviors can cause:

  • Risk of injury to others or to themselves,
  • Damage to the rental unit, other units, or common grounds,
  • Fire hazards,
  • Blocked emergency exits,
  • Pest infestations,
  • Unsanitary living conditions, and
  • Other habitability issues.

If you are concerned about nuisance, be sure to follow your rental policies and practices for regular property inspections for health and safety, maintenance inspections, and respond to tenant requests and complaints in a timely and appropriate manner.

You could consider adding language to your lease agreement that is covered with all tenants that clearly states your housekeeping standards, the tenant’s obligation to keep the rental unit in a clean and sanitary condition as provided at move-in, and the provisions for landlord entry for regular inspections for health and safety.

Fair Housing Act

Hoarding is a disability protected by the federal Fair Housing Act. Landlords must comply with the Fair Housing Act provisions for reasonable accommodations to try to help tenants with their disability. While reasonable accommodation is customarily requested by a tenant, a landlord or property manager should proceed with caution in dealing with a tenant hoarding situation. If the landlord or manager knew or should have known about the hoarding disability, there is a fair housing case to be made for the landlord/manager’s duty to accommodate the tenant to help resolve the issue. Care should also be taken to not extend special or extraordinary help that would not also be extended to other tenants as protected by the Fair Housing Act or your lease agreement. Legal advice may be appropriate before taking any action.

I recently bought a property that I think will be attractive to senior renters. What are some considerations for that market?

December, 2019

If you are considering marketing your property as senior living, age-restricted housing, usually referred to as 55+ living or a 62 + community, there are several issues to consider.

The federal Department of Housing and Urban Development (HUD) regulates senior communities to ensure their compliance with the Housing for Older Persons Act of 1995 (HOPA).

HOPA amended the requirements for qualification for the housing of persons who are 55 years of age or older portion of the housing for older persons exemption established in the Fair Housing Act.  However, a housing community is not exempt from the provisions of the Fair Housing Act that prohibits discrimination against any resident or potential resident on the basis of race, color, religion, national origin, sex, or disability.

If the housing community is intended and operated for occupancy by persons 55 years or older, the following requirements must be met in order to qualify for the HOPA exemption:

  • at least 80 percent of the community’s occupied units must be occupied by at least one person 55 years of age or older per unit;
  • the owner or management of the housing community must publish and adhere to policies and procedures that demonstrate an intent to provide housing for persons 55 years or older; and
  • the community must comply with rules for verification of occupancy through reliable surveys and affidavits.

Additionally the housing community must demonstrate an intent to provide housing for persons 55 years of age or older in policies and procedures that includes:

  1. a) the written rules, regulations, lease provisions, deed or other restrictions;
  2. b) the actual practices of the owner/management of the housing community used in the enforcement of the rules;
  3. c) the kind of advertising used to attract prospective residents to the housing community as well as the manner in which the community is described to prospective residents;
  4. d) the housing community’s age verification procedures, and its ability to produce, in response to a familial status complaint, verification of required occupancy.

Once a community meets the HOPA exemption requirements, housing communities can define their own rules on age restrictions that could be more restrictive than the federal law as long as the community is in compliance with state laws.

Due diligence should be conducted to clarify community rules and HOPA exceptions, particularly in the case that a resident has a spouse younger than 55 years.  Since typically only one person in the unit must be at least 55 years or older, there should be no issue for a younger spouse to occupy the unit. Clarification may still be needed in the case of children or grandchildren needing to reside in the unit but are under the community age requirement.

For senior living at a 62+ community, everyone in the household must be at least 62 years old. The only exceptions to the age requirement would be live-in aides, or healthcare providers.

If you are thinking in general about marketing your property to a specific applicant pool, such as seniors, be sure you understand fair housing requirements for marketing and advertising, and follow fair housing provisions against discrimination of the protected classes. You may inadvertently violate fair housing laws if you are not familiar with federal, state, and local requirements. Be mindful that senior tenants can be members of a protected class, such as a physical or mental disability. You cannot ask them if they require reasonable accommodations. If the tenant does make a reasonable accommodation request you are required to make the accommodation at your expense. Senior tenants will need to qualify to your rental standards as applicants in their own right.

You should offer your property to all rental prospects according to your rental policies and practices. If your property is maintained to habitability standards, has comparable amenities, market rents, and probably most important, a good location, you will find the property attractive to many prospective tenants.