Thinking about inflation? You’re not alone. According to Google Trends, searches for the word hit an all-time high in May 2021, returned to average in August and spiked again in December. As long as inflation is on everyone’s minds, we thought it would be helpful to do a deep dive into statistics provided by the Yardi Matrix U.S. Multifamily Outlook 2022.

Will inflation affect multifamily for better or for worse in 2022? Let’s look at the data to find out.

The good news about inflation

To understand how inflation has affected multifamily over the past year, we first need to look at this sector within the context of the overall economy. Since the Great Recession, federal interest rates have stayed near-zero. They rose slightly, starting in 2016, before sliding back to near-zero territory in response to COVID-19. In 2021 alone, inflation rose about 7%, the fastest rate since the 1980s. Between record-low interest rates and rising inflation, there have been concerns of an overheated economy that could cause inflation to get wildly out of control.

By Ted Kimball, Esq., Partner, Kimball, Tirey & St. John LLP

• Q: My tenants are asking me to accept a rent payment from their cousin. Do I have to take this payment?

• A: Yes, a landlord is required to accept third party payments made on tenants’ behalf provided that the payment is accompanied by a statement that it is made on behalf of the named tenant and does not create a tenancy or grant any rights to the payee.

• Q: My tenant moved in a few years ago with a roommate, and they paid the security deposit together.  One roommate moved out and another roommate moved in.  At that time, the rent was increased, and they paid some additional security deposit. Who is entitled to the security deposit when the unit is vacated?

• A: You should make the check out to all of them unless you receive in writing from any one of them that they have relinquished all rights to the security deposit to the other tenants.

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:

I have a toilet that runs every ten or twenty minutes.  I have replaced the fill valve, the flapper valve and I have even scrubbed under the rim!  In other words, all the items I can think of that are replaceable in the tank are new.  What else should I be looking at? 

Sam

Dear Sam:

You replaced all the easy ones!!  When all else fails on a toilet leak down issue; it is time to put on your rubber gloves and get an adjustable wrench.  Chances are the problem lies with the Flush Valve Seat.  The rubber flapper valve seals against the flush valve seat (the big hole at the bottom of the tank.) to either keep the water in the tank or let the water out of the tank.  The seat may have a burr, crack or calcium deposits that allow a small amount of water to seep past the rubber flush valve.  Sanding the seat to remove the burr or calcium deposit is a short-term solution and rarely solves the problem for long.  A permanent solution is to replace the flush valve. Start by turning off the water supply, completely empty the tank and remove the water line.  Remove the two or three bolts holding the tank to the toilet bowl.  Turn the tank upside down and remove the large nylon or brass nut that holds the flush valve to the tank. Install the new flush valve.  Be sure the tank bottom is clean and no debris gets between the new valve’s rubber gasket and the tank. Tighten the large nut on the outside of the tank and you are ready to reassemble the tank and bowl and put the toilet back into action.   When reassembling the tank to the bowl, install new rubber washers and bolts.  

This continued record growth represents a 49.5% percent increase over last year’s $408 million in equity placements

Year-End Highlights:

● Kay Places $610 Million of Equity Investments in 2021

● Kay Grows Its Fully Integrated Real Estate Team and Robust Online Real Estate Investment Platform

(Torrance, CA) Torrance, CA-based Kay Properties, which operates one of the nation’s largest 1031 exchange property and real estate investment marketplaces, announced today it had posted another record year after successfully placing $610 million in equity for accredited investors participating in 1031 exchanges and direct cash investments.

By Marc Frenkiel

Property management is typically thought of as the operations that ensure real estate is maintained, both physically and financially. While this is undoubtedly the case, successful  property management companies know that there is also a more human aspect to it — and that incorporating empathy into property management leads to many desirable outcomes, such as renter satisfaction, stellar online reviews, positive word of mouth, and more renewals.

Empathy, defined as “the ability to understand and share the feelings of another,” is applicable to resident-property management relations when viewing it as one of service, rather than just management. Most good property managers do view their residents as “humans who live in homes,” rather than just “tenants who occupy units.” Through this lens, there’s a clear connection between property management and empathy. Residents want and deserve prompt service and kindness in their interactions with their property managers or landlords. 

By Nicole Seidner

With Omicron finally peaking, more mask mandates at their ends, and not to mention people’s wits, many are finally starting to ask: what about the forbearance programs? The mortgage forbearance program provided so much relief during the pandemic and many landlords relied on it while tenants couldn’t pay their rent. However, many tenants still cannot pay their rent. If the program ends before those same tenants find sturdy employment, so begs the question: what happens next?

All About Loan Forbearance

According to DS News, anywhere between 3.8 to 4.2 million homes were in forbearance last year, with the program expiring this year. Forbearance was the major step in helping COVID-affected homeowners avoid foreclosure during the pandemic, and with it out of the way, many still need help. According to Forbes Advisor, 151,153 people filed for foreclosures in 2021 and the number was higher in 2020.

By David Piotrowski, Law Offices of David Piotrowski

The “temporary” Los Angeles County eviction moratorium has been extended again and this time, many parts of the moratorium will remain in effect for all of 2022 and even into 2023! The Board of Supervisors has expanded the eviction moratorium and encouraged incorporated cities to create permanent rent control that would take over once the so-called “temporary” Los Angeles County eviction moratorium expires. The Board has created a three-phase plan to end the protections unless the Board decides to extend/modify the moratorium again in the future.

• Where Does the Los Angeles County Eviction Moratorium Apply? Does Your Rental Property Fall Within its Jurisdiction?

By Alan Pentico, Executive Director, Southern California Rental Housing Association

An initiative passed narrowly by voters in 2020 to protect wildfire victims and seniors has opened the door to massive tax increases that threaten tenants and the roof over their heads.  Proposition 19 removed important taxpayer protections from the State Constitution that for 35 years guaranteed parents or grandparents could transfer property to their kids without any change to the property tax bill. The removal of these protections has brought back the death tax to California.

Now, when property is passed from parent to child, it is reassessed to current market value, triggering a huge increase in annual property taxes. Too often, renters find themselves collateral damage to this untimely tax increase.

Go beyond the pet deposit and learn if requiring pet insurance is worth it

Article Contributed by Rent Spree                 

Disclaimer: This article is not legal advice. Any legal information is not the same as legal advice, where an attorney applies the law to your specific circumstances, so you should consult an attorney if you would like advice on your interpretation of this information or its accuracy. You may not rely on this article as legal advice, nor as an endorsement of any particular legal understanding.

America is a country of pet lovers; more than 100 million households have either a dog or cat and millions more have birds, fish, and other small mammals and reptiles. That translates into a $19 billion veterinary care market each year for everything from wellness visits to emergency services for US pets. To increase affordability and facilitate proper veterinary care, pet insurance policies have become more and more prevalent in recent decades, with a growing number of insurers offering various levels of coverage to meet the needs of pet owners.

By Bruce Mack and Dr. Gina G.

There is a viable solution for avoiding the pain and financial suffering Prop 19 has created and more.  To better understand the problem, you will want to get the background.

In November 2020, Californians voted to pass the Proposition 19 Constitutional Amendment. The new law went into effect on February 16, 2021 (roughly 1 year ago). To understand the impact of Proposition 19 on apartment owners, it is helpful to recognize that it modifies Proposition 13 (which was originally passed back in 1978),

However, Proposition 19 has changed these rules in several ways, including: