This is a common and somewhat tricky question I hear from our property management clients. Can I refuse to rent to Section-8 tenants, or do I have to accept them?
What is Section-8 and the HAKC? I sum that up in this article! Like most things the government is overseeing the answer is as convoluted and difficult as figuring out your taxes. While it may not be illegal on a federal level it may be a violation of some statute or regulation in your state or municipality. New York, for instance has ruled that refusing to accept a section 8 voucher from an existing tenant is somehow discriminatory. I have attached a document below detailing that court battle. While that ruling appeared to address only existing tenants who later qualify and receive section 8 funding, it left open (at least by my reading) the choice of refusing to rent to section 8 tenants who are applying to rent your property. That said I wouldn't want to be the one facing some liberal New York judge to be the test case for their axe to grind. By the same token, a California court has held that a landlord may refuse to accept section 8. I will also attach that document below. In a case with important and lasting implications for landlords, the California Courts of Appeal has found that a landlord may legally refuse to participate in the Section 8 Program.1 This important case interprets the California Fair Employment and Housing Act (“FEHA”), and in particular, California Government Code Section 12955 which prohibits discrimination based upon source of income. The Court of Appeal’s decision ends several years of conflict between tenant advocacy groups and landlords who disputed whether FEHA prohibited a landlord from refusing to accept Section 8 rental assistance payments. Once again this was decided, as well it should be by a State Court and not a Federal Court! But the fact remains that none of us want to be the bellwether case that makes it to the Supreme Court of the US! Most of these cases are handled outside of a courtroom because of the heavy-handed tactics of HUD and their contractors most of these cases never see the light of day. Most landlords are frightened into submission and settle before it ever become public. You can read how HUD uses extortion and coercion to entice guilty pleas form their victims in this article, Fair Housing Truths and Myths. Since our clientele is mostly investing in the Midwest, how do these two extremely liberal state court rulings affect us here in fly-over country? The answer is simple what happens on the coast is usually a harbinger of what is to come to the rest of America.
Sadly as America drifts more closely to the shores of shared misery brought to you by socialism and liberalism, we also are drifting headlong into more and more government intrusion in our lives and our businesses. This year because of a new pool regulation my favorite public pool won't be opening. This pool was operated as a not-for-profit and on a shoe-sting budget. With the new Obama Pool Rules they simply cannot afford to open.
So here are my suggestions on dealing with this question:
HECM Servicing Frequently Asked Questions (FAQs) With more and more HUD, Fannie May and other Government held foreclosures on the market it is becoming much more common to see homes listed with the phrase... "PROPERTY IS BEING SOLD SUBJECT TO 24CFR 206.125" So I have attached here the Frequently asked questions document from HUD to help explain this convoluted mess. Thanks for visiting Turn-Key Properties LLC Okay, you acquired a small commercial property, maybe your uncle left it to you or you managed to get a good deal on it. Now you're looking to lease it up and start raking in the big bucks like Trump! You jumped online to find a commercial lease you could use and you wound up here. The first thing you need is to understand the terms that are common in the commercial leasing industry, otherwise the forms will do you little good. CAM (Common Area Maintenance) : Amounts charged to tenants for expenses to maintain hallways, restrooms, parking lots, and other common areas. This may also include taxes, insurance, common area lighting, lawn care and snow removal. Building maintenance and improvements and even special assessments like road, sewer or water upgrades. CAM fees can escalate at a different rate than the monthly lease rate because they tend to be more variable. Your lease should differentiate between variable and fixed CAM fees. (see terms Net Lease and Gross Lease! Gross Lease: In a gross lease, the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership. Most apartment leases are gross leases. . Modified Gross Lease: The industrial modified gross lease is common among multi-tenant industrial buildings. As with a modified gross lease, the landlord will generally pays for the base year property taxes and building insurance. Tenants are generally responsible for their share of common area operating expenses and common area utilities. Services that the Landlord provides differs from lease to lease. There are numerous types of modified gross leases that are commonly utilized in multi-tenant office buildings. A modified gross lease is similar to a full service gross lease, except that some of the base services are not included by the landlord (taxes, maintenance, insurance and utilities). The most common types of modified gross leases excludes maintenance, janitorial and electrical. This type of lease is commonly utilized in medical office buildings or multi-tenant single floor office buildings, where different tenants have varying needs for electrical or janitorial services. In general, this type of lease requires separately metering individual office suites to determine electrical usage. Generally in a modified gross lease the Landlord has the right to expense pass-throughs utilizing a “base year.” Net Lease: In commercial real estate, a net lease requires the tenant to pay, in addition to rent, some or all of the property expenses which normally would be paid by the property owner (known as the "landlord" or "lessor"). These include expenses such as real estate taxes, insurance, maintenance, repairs, utilities and other items. Single net lease: In a single net lease (sometimes shortened to Net or N), the lessee or tenant is responsible for paying property taxes as well as the base rent. Double- and triple-net leases are more common forms of net leases because all or the majority of the expenses are passed on to the tenant. Double net lease: In a double net lease (Net-Net or NN) the lessee or tenant is responsible for property tax and building insurance. The lessor or landlord is responsible for any expenses incurred for structural repairs and common area maintenance. "Roof and structure" is sometimes calculated as a reserve, the most common amount is equal to $0.15 per square foot. Triple net lease: A triple net lease(Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three "Nets") on the property in addition to any normal fees that are expected under the agreement (rent, premises utilities, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area. PROPORTIONATE SHARE: (Pro Rata) The Tenant’s proportionate share of operating expenses are calculated on a square footage basis. Tenant’s Sq. Ft. divided by Total Building Sq. Ft. = Tenant’s proportionate share BASE YEAR: A “Base year’ is typically utilized in multi-tenant full services gross office building leases to determine “base” cost for operating expenses within the project. The base operating expense account is the floor over which any increases in operating expenses will be passed on to the tenants of the building. In general, a base year is calculated on a calendar year basis or the first 12 months of Tenant’s occupancy. EXPENSE STOP: An expense stop is the preferred method for expense calculation by a Landlord. This vehicle allows a Landlord to estimate the approximate expenses the building will incur and the tenant is responsible for payment of their proportionate share of actual operating expenses over the estimated expense stop. This is rarely utilized anymore as it led to fraudulent estimates of expenses in the past and unexpectedly high operating expense pass-throughs to tenants. DISCLAIMER: I am not an attorney, these forms are provided free of charge and I am not liable for any thing you do! Turn-Key Properties LLC our employees, pets, friends, family members and contractors are completely exempt from your stupidity! I/we strongly suggest you consult an attorney, lawyer, tax adviser and maybe even a member of clergy before using something you found online! By clicking on these links and downloading these forms you completely exonerate and exempt us and anyone else from your actions. These documents were posted March 20, 2012 and may or may not meet your state, local or municipal requirements. May God have mercy on your soul!
So you want to be a landlord, personally I'd advise you to hire a property manager but I'm generally very willing to help you get started. Most people simply aren't cut out for the unpleasant experiences that come with managing rental property, especially residential property. So to get you started I thought I'd give you a few pointers and offer some free forms to use and well as some free advice. Like everything else in America, there are so many stupid rules and laws you are required to abide by it would make your head swim. Most everyone knows you can not discriminate against anyone based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). But there is much more to the restrictions and guidelines... Lead Based Paint forms and signatures you must obtain on government documents. There are so many ways to get fined, sued or even jailed it would make your head spin around and toss some pea soup!. Here are a few... Title VI of the Civil Rights Act of 1964 Title VI prohibits discrimination on the basis of race, color, or national origin in programs and activities receiving federal financial assistance. Section 504 of the Rehabilitation Act of 1973 Section 504 prohibits discrimination based on disability in any program or activity receiving federal financial assistance. Section 109 of Title I of the Housing and Community Development Act of 1974 Section 109 prohibits discrimination on the basis of race, color, national origin, sex or religion in programs and activities receiving financial assistance from HUD's Community Development and Block Grant Program. Title II of the Americans with Disabilities Act of 1990 Title II prohibits discrimination based on disability in programs, services, and activities provided or made available by public entities. HUD enforces Title II when it relates to state and local public housing, housing assistance and housing referrals. Architectural Barriers Act of 1968 The Architectural Barriers Act requires that buildings and facilities designed, constructed, altered, or leased with certain federal funds after September 1969 must be accessible to and useable by handicapped persons. Age Discrimination Act of 1975 The Age Discrimination Act prohibits discrimination on the basis of age in programs or activities receiving federal financial assistance. Title IX of the Education Amendments Act of 1972 Title IX prohibits discrimination on the basis of sex in education programs or activities that receive federal financial assistance. Fair Housing-Related Presidential Executive Orders: Executive Order 11063 prohibits discrimination in the sale, leasing, rental, or other disposition of properties and facilities owned or operated by the federal government or provided with federal funds. Executive Order 11246, as amended, bars discrimination in federal employment because of race, color, religion, sex, or national origin. Executive Order 12892, as amended, requires federal agencies to affirmatively further fair housing in their programs and activities, and provides that the Secretary of HUD will be responsible for coordinating the effort. The Order also establishes the President's Fair Housing Council, which will be chaired by the Secretary of HUD. Executive Order 12898 requires that each federal agency conduct its program, policies, and activities that substantially affect human health or the environment in a manner that does not exclude persons based on race, color, or national origin. Executive Order 13166 eliminates, to the extent possible, limited English proficiency as a barrier to full and meaningful participation by beneficiaries in all federally-assisted and federally conducted programs and activities. Executive Order 13217 requires federal agencies to evaluate their policies and programs to determine if any can be revised or modified to improve the availability of community-based living arrangements for persons with disabilities. As you can see this list just keeps getting more and more ridiculous! Just wait til you are hauled into one of these Kangaroo Court "investigations", you will wish you had never invested in real estate. Here's a little story of how the whole scam works. Fair Housing Myths is an article we wrote several years ago. In addition one of the things I see most often that will get landlords in trouble are advertising screw ups. Please take the time to read this article about what you can and cannot say in an advertisement for any property you are renting or selling! Fair Housing words. But enough of that you wanted some free forms to get you started. NOTE: These forms may have been valid at the time I posted them, 3/19/2012 but I strongly suggest you consult an attorney before relying on anything you find on the Internet. This may or may not be all that is required by law in your situation, but the laws are so extensive and restrictive that no one can be sure at anytime that they are in complete compliance. At the very minimum consult with a professional before you engage in any real estate activity. I am not a lawyer and I do not know the laws of your particular state or municipality! Use these forms at your own risk. Turn-Key Properties LLC our members, founders, employees, contractors and even our pets, friends and family members do not accept ANY liability whatsoever for your use of forms you find here! AGAIN... Consult an attorney! By downloading these forms you agree to hold us completely harmless for any trouble you get into. Seriously, Talk to a LAWYER! Furthermore we are not responsible for any damn stupid thing you do! Why am I providing you with free documents... because frankly, eventually you will decide you can't stand doing this and will call me to manage your property. 816-313-8876.
Here is our latest list of available homes for rent, call us at 816-313-8876 for more information. To see more information on available homes for rent please follow this link! Turn-Key Properties LLC manages hundreds of rental properties throughout the KC Metro Area. In order to stay on top of the market we must have our finger on the pulse of rental activity, demand and current rental rates for a given area. Obviously the rates are determined by a number of factors;
_NEW YORK (CNNMoney) -- Federal officials hope to launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties.The program, which was cited by Federal Reserve Chairman Ben Bernanke last week as one way to address the housing crisis, would sell foreclosed homes now owned by Fannie Mae and Freddie Mac to investors in bulk. The properties would then be converted into rentals.
The story reads on, but somewhere in this mix, there are yet a number of questions to be resolved.
Read the rest of the story from (CNNMoney) As I have pointed out before, Landlord Licensing is nothing more than a TAX! Here Comes the Judge! While we were able to keep it from becoming a tax in Kansas City, MO they still did enact a requirement to register your rental property. Don't Forget -- Rental Registration is required for rental properties in Kansas City, Missouri. The City of Kansas City, Mo., is issuing a reminder to owners of rental dwellings located in the City in an effort to let them know they must renew or establish registration of their rental properties with the City's Neighborhood and Community Services Department on an annual basis. Annual registration of rental properties is part of the Rental Registration and Inspection Program that was established by the City Council, with passage of ordinance No. 071046 in October 2007. Registration may be submitted anytime during the month of January without incurring a registration fee. All rental properties must be registered within 30 days of becoming a rental property. Failure to register a rental dwelling within 30 days of the property becoming a rental will result in the issuance of an administrative citation fine of $50. For each month (or portion thereof) that a rental dwelling is not registered, an additional $50 fee will be assessed. For example, a property that was a rental in January, and not registered until August, will be assessed a fine of $350. Registration is required on a calendar-year basis and expires each Dec. 31. Online registration is available at http://www.kcmo.org/neigh. Registration forms can be downloaded and submitted by mail or in person. For more information about the Rental Registration and Inspection Program, visit http://www.kcmo.org/neigh or contact Shalisha Boles, Neighborhood and Community Services Department, 816- 513-3200. In October 2007, ordinance No. 071046 was passed requiring that all occupied rental housing units within the City limits of Kansas City, Mo., be registered with the City starting Jan. 1, 2008, and renewed each year. A $50 per month fine for failure to register began Feb. 1, 2008. The current ordinance is online at municode.com. Registration renewalRegistration renewal may be done anytime during December or January and there is no registration fee. Failure to renew registration of an occupied rental dwelling before February 1 of each year will result in a fine. For each month (or portion thereof) that a registration is not renewed, a $50 fine will be assessed. |
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