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Oregon Landlord Tenant Laws

Oregon is one of the states that has wholly adopted the Uniform Residential Landlord and Tenant Act. An updated version of the Act was approved in July 2015, much of which has either been adopted into Oregon law or is pending. The information listed here at the time of publication is accurate according to current state statutes, but since changes can come rapidly, it is important to both verify that the state statutes remain accurate and to check with the local city or county to determine if there are additional statutes that may supersede those of the state.

The information published here is not meant to be construed as legal advice. A licensed attorney who specializes in landlord-tenant law should be consulted for any legal matters.

What Laws Cover Landlord-Tenant Relationships in Oregon?

At the state level, Title 10 Chapter 90 covers residential rental agreements, and Title 10 Chapter 91 further defines what constitutes tenancy, including some commercial arrangements. Oregon mostly gives tenant-landlord relationships for businesses and other commercial purposes the flexibility to structure their own leases, however, with much less mandatory regulation than is placed on residential relationships.

Both commercial and residential landlords in Oregon should also familiarize themselves with Volume 3 of the Oregon Revised Statutes, which covers a wide variety of issues relevant to rental agreements such as fencing, lost or abandoned property and special regulations relating to condominiums.

Cities and counties in Oregon also commonly have their own unique regulations that landlords need to be familiar with. For example, since there has been a great deal of development in Portland in recent years, the city has published their own training manual for landlords that covers all the pertinent laws and regulations. Other cities and counties may have similar resources available.

Security Deposit Rules

The state of Oregon allows landlords to ask for a security deposit, and does not set a maximum amount. The landlord is also not required to keep the deposit in a certain type of bank account or to pay interest when returning the deposit, but they must provide the tenant with a receipt. Any security deposit must be returned to the tenant within 31 days of the termination of the lease, however, and if any amount is withheld an itemized list of damages and charges must be provided to the tenant according to Stat. 90.300.

Oregon does allow landlords to ask for a pet deposit under Stat. 90.300, unless the pet is a registered service animal. It is important to note that any amount withheld from a deposit for carpet cleaning must be specifically mentioned in the lease, but there is currently a bill pending in the House (Bill 2689) that would eliminate that requirement if it is passed.

Failure to comply with these requirements allows the tenant to recover twice the amount due to them under Stat. 90.300.

Lease, Rent and Fee Rules

Stat. 90.220 states that rent must be paid by the tenant without notice or demand by the date that was agreed upon in the lease. Rent defaults to being due at the start of each month or week if another date is not specified in the lease. Landlords are not allowed to demand rent from a tenant prior to the first day of the period in which it is due, however. Tenants must also be given a means of paying their rent at the unit they are inhabiting, such as a mailbox or secured drop box, or by meeting the landlord at the premises. Regarding raises in rent, the landlord must provide 30 days notice in the case of monthly leases and seven days notice in the case of weekly leases.

Statutes 90.220, 90.260 and 90.300 further cover the payment of rent and fees. A four-day grace period is required from the initial date that the rent is due before any fees can be charged. If payment is made after the grace period, the law allows landlords to collect a reasonable flat fee provided this fee was made clear in the lease. If a flat fee has been spelled out in the lease and was agreed to by the tenant, the landlord can instead opt to charge a daily late fee equal to no more than 6% of the monthly flat fee. The landlord also has the option of charging a fee equal to 5% of the monthly rent every five days that the rent remains unpaid past the grace period. Landlords cannot combine these fees, however; they must choose one of the three, and if a flat fee was not spelled out in the lease, the only option left is to collect the fee equal to 5% of the month’s rent once every five days.

Returned check fees are restricted to no more than $35 plus whatever amount the bank charged the landlord for processing of the check. Landlords are allowed to recover attorney and court fees under Stat. 90.225. If a tenant abandons their lease, the landlord is allowed to collect 1.5x the monthly rent for the duration of the lease. Victims of domestic violence and members of the military who are deployed are allowed to break their leases early with proper documentation, however.

Stat. 90.365-368 permit tenants to withhold rent if a landlord does not provide vital services like heat, and allow them to deduct from the rent for the cost of emergency repairs. Landlords must also show a reasonable attempt to mitigate damages to the tenant.

Notice and Entry Rules

The advance notice that a tenant must give before moving out increases if the tenant has been at the dwelling for more than one year, according to Stat. 90.427 and 91.070. In the first year, the requirement is 30 days of advance notice for monthly leases and seven days for week-to-week leases. These amounts increase to 60 days and 10 days respectively once the tenant has occupied the residence for at least a year. For yearly leases that have no fixed end date, the tenant must always provide 60 days notice.

Stat. 90.396-398 spell out the emergency circumstances in which the landlord can break the lease with only 24 hours notice. If the tenant commits a drug or alcohol violation, commits a crime or is demonstrably a danger to themselves or others, the landlord can terminate the lease with a day’s notice.

Termination of a lease due to sale of the property has some complex circumstances that are covered in Stat. 90.427 and 91.070. The unit that the tenant is dwelling in must have been purchased separately from any other unit on the property, and the purchaser must intend to occupy the unit as their primary residence. The landlord must then ensure they provide notice of their intent to sell to the tenant within 120 days after accepting the offer. The landlord may then serve either a 30-day or 60-day notice to the tenant depending on circumstances spelled out in the referenced statutes.

Stat. 90.392-394 cover termination of leases for nonpayment or violation. In the case of weekly leases, the landlord must give the tenant 72 hours notice to pay the rent. For leases that last for a month or longer, the four-day grace period is in effect from the first payment due date. If the landlord gives notice on the fifth, sixth or seventh days of the rental period, they must give 144 hours notice in which the tenant can pay the rent plus any fees. If the notice is given on the eight day or later, 72 hours notice can be served.

Short-term and emergency notice situations are covered under Stat. 90.322. 24 hours notice is required for entry under normal circumstances, including showing the unit. Landlords may enter immediately in the case of emergency, but if the tenant is not present, they must leave notice that they entered within 24 hours of entering. Landlords are also allowed to enter to verify the tenant’s continued occupancy if they are observed to be absent for more than seven days in a row. Lockouts and utility shutoffs are not allowed under Oregon law.

Required Disclosures and Notes

Landlords must disclose the name and address of property owners and managers and give notice if the dwelling is within a 100-year flood plain. The landlord must also provide the tenant with a copy of the lease under Stat. 90.220.

Domestic violence victims have some special rights under Oregon law, as spelled out by Stat. 90.453. Domestic violence victims must establish their status with the landlord by filling out the VAWA Domestic Violence Certification, which is then appended to the lease. Once this is done, domestic violence victims have the right to request the landlord change the locks at any time, though they pay the expense. They are also entitled to end the lease with 14 days notice.

Small Claims Courts

The Oregon Small Claims Court limits claims to $10,000 at the state level, but some counties have established smaller limits. These counties are linked below.

Oregon Realtor Associations

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Kansas Landlord Tenant Laws

Kansas Residential Landlord Tenant Laws

In Kansas, landlord tenant laws are governed by two acts; the Kansas Residential Landlord & Tenant Act Kan. Stat. Ann. §§ 58-2501 – 58-2573 and the Kansas Mobile Home Parks Residential Landlord & Tenant Act Kan. Stat. Ann. §§ 58-25,100 – 58-25,126. These statutes are designed to fairly represent and govern both landlord and tenant. One of the most important things to do when renting in Kansas is to sign a lease. This document helps the parties avoid conflict and outlines what is expected of both the tenant and landlord. Although Law is fluid and subject to change, we will discuss several key statutes that govern tenancy. Each discussion will contain a link to the relevant statute at the time of this writing. This article is not intended as a substitute for legal council, only an informational offering regarding certain landlord & tenant act statutes.

First Things First

Before anything else, go over the lease so both landlord and tenant have a clear understanding of what is allowed on the property, what the tenant’s responsibilities and rights are, as well as responsibilities the landlord has. This offers the tenant a chance to discuss their expectations regarding what the landlord will be responsible for regrading the rental property, and the landlord to discuss his expectations and the responsibilities of the tenant as outlined in Kansas statute 58-255. For example will the landlord care for the lawn, or will it fall to the tenant?

Security Deposits

In Kansas a rental lease serves as legal documentation that records the amount of security deposit, pet deposit, any fees or incidental expenses the tenant may be responsible for. In Kansas, security deposits are limited to one month’s rent for unfurnished units, one and half month’s rent for furnished and allows for a separate pet deposit equal to no greater than one half month’s rent. Kansas has no statute governing the accrual of interest on the deposit, non-refundable fees, record keeping of deposit withholding, receipt of deposit or required written descriptions or lists of damages and related charges. Kan. Stat. Ann. §§ 58-25,100 – 58-25,126

Deposits are required to be returned within 14 days of the date the deposit withholding is determined, but no greater than 30 days form the date of vacancy. A deposit may only be used for damages due to tenant noncompliance or for rent still owing. Should a landlord fail to comply with the statutes governing return of the deposit, the tenant may sue to recover one and a half times the amount of the deposit. Kan. Stat. Ann. §§ 58-25,100 – 58-25,126

Lease and Rent Requirements

Kansas allows yearly leases to change to month to month agreements at the end of the year if the tenant wishes to remain in the property. There are certain instances that have no statute. For example, Kansas has no statute regarding:

  • Prepaid rent
  • Withholding rent for landlord failure to supply water or heat
  • Rent grace period–although many leases allow for five days after the due date
  • Bartering property repairs in exchange for rent
  • Property abandonment and early lease termination

Although Kansas has no statute regarding property abandonment, there is a statute requiring landlords to store any personal effects left behind for thirty days. Landlords may store it at the tenants expense and after thirty days may sell or dispose of the tenants personal belongings. However there are restrictions governing the use of funds raised through the sale and proper public notification requirements before the sale in Kansas Statute Kan. Stat. Ann. §§ 58-25,100 – 58-25,126.

Likewise, though there is no ordinance governing withholding of rent for landlord failure to provide basic and essential services, it does provide for tenants to terminate tenancy with a thirty day notice regardless of lease period and gives landlords a 14 day period to remedy the problem. (§§ 58-2559)

Kansas does govern when rent is due, placing due at the beginning of the month unless otherwise agreed upon in the lease. It is common in Kansas for landlords to prorate rent during periods beginning in the middle or the end of the month. The statute governing rent periods also allows landlords to charge 30 dollars for returned check fees. Rent increases are also governed in the statute along with late fees.  Kan. Stat. Ann. §§ 58-25,100 – 58-25,126

Finally, Kansas does not allow for any lease to include agreements to pay for attorney fees, either as the tenant or the landlord (§§ 58-2547(3)) and requires landlords to make reasonable attempts to reduce damages to former tenants by re-renting the property (§§ 58-2565(c)).

Notices and Entering Dwelling During Tenancy

Kansas has many statutes governing notice of entry of the dwelling by the landlord and notices as relating to termination of tenancy. Notice to tenant for extermination is not covered under Kansas statute, but a plethora of situations are. Let’s begin with termination of the lease. Notice of termination is not required with a fixed termination date in the lease. (§§ 58-2559) As mentioned, yearly leases with an open end date can be terminated with a 30 day notice before year’s end. (§§ 58-2559) In a month to month leasing agreement, the tenant must give a 30 day notice unless serving in the military and the move is a result of a transfer. However, a 15 day minimum notice is required should this scenario occur. (§§ 58-2570(b)) A week to week tenancy requires 7 days notice (§§ 58-2570(a)) and 24 hour leases are not governed by Kansas law.

At the end of tenancy, within five days of vacancy, the tenant and the landlord must walk the property together, taking a written inventory of the condition of the premises. Any damages are noted here and assist with figuring out how much of the deposit will be returned. Both landlord and tenant must sign the inventory and must receive a copy of the accounting. Most leases also require a similar walk through upon transferring possession of the property to the tenant. These two inventories are extremely helpful in achieving a fair and realistic settling regarding possible damages. (§§ 58-2548) The state of Kansas has several statutes regarding termination of the lease for nonpayment of rent (§§ 58-2507) (§§ 58-2508) and for termination of tenancy for lease violations. (§§ 58-2564)

Entry

Kansas protects both tenants and landlords with statutes regarding entrance into the rental unit. Landlords are required to give “reasonable notice for entry at a reasonable hour.” The statute leaves plenty of room for interpretation. What is a reasonable hour for one person, may not be considered reasonable by another. At any rate, that is how the statute is worded. Also covered are entry for maintenance during an emergency or normal business hours. Entry for showings is also allowed with the same notice to tenant. Kansas also provides for entry during an emergency without notice. (§§ 58-2557), (§§ 58-2557(b)).

When a tenant is absent from the property for an extended period of time, notice may be required if the period is longer than seven days. If the absence extends to 30 days, the landlord may enter the premises if the need arises. (§§ 58-2558 and §§ 58-2565) Kansas does not allow a landlord to lockout a tenant (and vice versa) nor does it allow landlords to shut off utilities in an attempt to get the tenant to vacate. (§§ 58-2563)

Disclosures and Notes

In Kansas, landlords must disclose any hazards that may be present on the property, such as lead paint or asbestos. This is covered under the statue governing landlord duties, (§§ 58-2553). This statute outlines landlord duties to the tenant while Kansas Statute (§§ 58-2555) outlines the tenant’s duties.

Small Claims

In Kansas evictions are not presented in small claims court but in district court. Small claims are limited to $4,000.00. For further information regarding property laws, the Kansas Association of REALTORS® has more information.

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Idaho Landlord Tenant Laws

Idaho has not adopted the Uniform Residential Landlord and Tenant Act into its rental law, and has a number of unique conditions that both landlords and tenants need to be familiar with. Idaho is also one of only a few states that does not offer tenants complete protection against retaliatory evictions, though there are some limited circumstances under which an eviction can be considered retaliatory.

Both landlords and tenants would be well advised to study and familiarize themselves with the statutes cited below, though nothing on this page should be construed as legal advice. Always consult a lawyer if you are uncertain of your rights and/or contemplating taking a matter to court.  And of course, always check local city and county ordinances to verify that they do not have terms that supersede state law.

What Laws Cover Landlord-Tenant Relationships in Idaho?

The quickest and easiest place for both landlords and tenants to brush up on their rights is by viewing the State Attorney General’s Landlord and Tenant Guidelines publication. If you want to go straight to specific statutes, Idaho Code 55-301 to 55-308 (Rights and Obligations of Owners) is the most relevant. Landlords and tenants both should also be familiar with Idaho Code 6-201 to 6-212 (Waste and Willful Trespass on Real Property) and Idaho Code 6-301 to 6-324 (Forcible Entry and Unlawful Detainer). And landlords will also likely want to look over Idaho Code 55-208 to 55-12 (Estates in Real Property) as well as Idaho Code 216-217 (Limitation of Action for Contracts).

Security Deposit Rules

Idaho has no maximum limit for security deposits, and landlords are not required to pay interest on them either, under Idaho Code 6-321. They are required to hold the deposit in a bank account or in escrow, however, and name the institution where it is being held in the lease. There is no statute regarding pet deposits or non-returnable fees, or on providing a receipt for the security deposit.

The landlord is given 21 days to return the security deposit from the end date of the lease under Idaho Code 6-321. The tenant may agree in writing to extend this up to 30 days, however. Landlords can only make deductions from the security deposit for items specified in the lease, and cannot make deductions for normal wear and tear. All charges must additionally be accounted for in an itemized list along with a written reason for each charge within the 21 days the landlord is allotted to return the security deposit. If the landlord fails to return the deposit and fails to provide such an itemized list within that time period, the tenant is within their rights to take legal action to have the deposit returned.

Lease, Rent and Fee Rules

The due date of the rent is to be established in the lease along with any late fees, as there are no statutes governing these items. There is also no statute on a grace period for unpaid rent,  prepaid rent terms or fees regarding abandonment of the property.
A fifteen-day notice prior to the beginning of the month in which the change will take place is required if a landlord wants to increase the rent, as stipulated by Idaho Code 55-307.

Landlords may sue in small claims court to recover either three times the returned check amount or the check amount plus $100, whichever of these is greater. Landlords may also recover attorney fees and court costs from a successful eviction proceeding, though in cases where they are required to provide three days notice of eviction they are also required to provide written notice that such fees can be recovered.

Tenants are not allowed to automatically deduct rent for repairs or to withhold it for failure to provide essential services, but they can give written notice of needed repairs and then sue the landlord if they do not make them. There is one small exception for working smoke detectors; if a smoke detector is needed, the tenant may install one themselves if the landlord does not respond to a written request within three days, and then deduct the cost from the next month’s rent. These terms are clarified in Idaho Code 6-320 to 6-324.

Notice and Entry Rules

Under Idaho Code 55-208, a month’s notice is required for a tenant to terminate a monthly lease or a yearly lease that has no end date. Weekly leases must have language in them that stipulates how much notice is required to terminate the lease.

Landlords are allowed to terminate a lease with 24 hours notice if they have reasonable evidence that anyone in the dwelling has engaged in the use, manufacture or sale of any controlled substance. Lease termination for non-payment or for a lease violation requires three days advance written notice.

There are no state statutes governing required notice before entry, even in emergency circumstances. The lease must stipulate these terms. Landlords do have the right to enter with three days notice if the tenant is absent from the property for an extended period of time.

Lockouts and utility shutoffs are never allowed under Idaho state law.

Required Disclosures and Notes

There are no statutes requiring landlords to provide a contact name and address or a copy of the lease. There are also no special protections required for domestic violence victims. Landlords are required to disclose the use of lead paint to tenants, however, and must also provide them with an informational pamphlet from the Department of Housing and Urban Development (HUD) on the subject.

The duties of the landlord are covered in full under the Attorney General’s guidelines. The duties of the landlord basically boil down to maintaining the premises in keeping with city and county ordinances and state laws, and ensuring that the property is safe and does not present a danger to the tenant’s health. The Attorney General’s guidelines also lay out the duties of the tenant. Tenants are required to refrain from engaging in unlawful activity on the property, keep the property clean and clear of garbage, use the appliances and plumbing appropriately and maintain a safe environment for everyone who visits.

As was touched on briefly at the outset, Idaho law does not offer specific protections for tenants from retaliatory evictions except in the case that they request a needed repair or that they join or form a tenant’s union. There is no specific statute that protects tenants from retaliation for complaints they make to a landlord or an outside agency. One may wish to consult an attorney in these cases as there may be prior rulings in the state that can be cited as precedent.

Small Claims Court

Small claims in Idaho are limited to $5,000. Eviction proceedings are heard in the local county district court rather than in small claims court. The state places a statute of limitations of four years on oral contracts and five years on written contracts, according to Idaho Codes 5-216 and 5-217.

Idaho Realtors Associations

How to Finance a Rental Property

 

Buying rental property has long been a mainstay for investors looking for a steady return. When you buy wisely and keep it maintained, you can add substantially to your portfolio.

But how do you finance rental property? The simplest and fastest solution is to pay cash. But it’s seldom the case that people can afford that, especially when they are just starting out.

Getting a conventional mortgage for rental property can also hit snags. This is definitely true when the home you want to buy is in poor condition. Banks are hesitant to let them qualify for certain types of financing.

Thankfully, there are several ways to finance your investment property. Here is a look at a few of your options.

The Conventional Method

Conventional financing means using the property you want to buy as collateral for the loan. You can get mortgages that last 15 to 30 years, all for a monthly payment that stays the same. With this method, you are usually required to come up with 20% to 30% for the down payment.

It sounds good, but as always, the devil is in the details. For example, many banks require that you can afford the mortgage on your rental house and on the house you are living in, without including future rental income in your loan calculations. You also can’t use it when figuring your debt-to-income ratio.

Home Equity Loan and HELOC

These are popular ways to finance rental property because most lenders let you borrow up to 90% on your primary residence and 80% on a vacation home.

With a home equity loan, you get the entire amount when you qualify. Like a mortgage, you pay a fixed amount each month for 15 or 20 years, which covers both principal and interest. In effect, this is the light version of the conventional mortgage.

A related method is called a Home Equity Line of Credit, or HELOC, and it works much like a credit card. You are able to charge or borrow funds from your line of credit as you need it. You get a bill once a month. As a rule, the minimum payment is the interest.

Cash-Out Refinance

This can be done two ways, on a primary or vacation home. It can also be done on a piece of investment property that you currently own.

Your primary residence or your vacation home is used as security for the loan. The process is just like a regular mortgage, and it takes about a month and a half to get your funds. As a rule, lenders let you borrow up to 80% of your home’s value. The outstanding amount on the original mortgage is first paid, then you get the rest of the funds, the “cash-out.”

If you already own a rental property, you can get a maximum of 75% of its value, as long as you bought it longer ago than six months. This is the standard amount for a one-unit property. For one with two to four units, the maximum you can borrow is 70%. If you have four or more properties financed, then the limit it 65%.

There is also a variation called the delayed financing exception. This means that you don’t have to go through the six-month waiting period and the refinance can happen immediately. This is possible if the purchase transaction involved no financing and you are able to meet several requirements. For example, the new mortgage must be less than the initial investment that was used for the purchase and no liens must show up in a title search.

Private Funding and Hard Money Loans

You might be thinking family and friends when you hear the term “private funding.” But the fact is, there are many people who offer private financing secured by a home. One big advantage is that it is usually faster than the process of getting a standard mortgage from a bank.

You will most likely end up paying a higher interest rate, but it is often worth it. Consider that if your property has a positive cash flow and appreciates, you may need the funding only for a short period. After that, you can get conventional financing on better terms.

A popular type of private funding is called a hard money loan. It is offered by individuals or by small groups who base their decision to lend you money on the value of the property you are buying, not on your credit score.

It doesn’t come cheap. The interest rate can be twice as high as a conventional mortgage and it usually has steep origination fees. You need to back up the loan with real assets. What offsets this for some investors are the facts that you can usually borrow up to 100% of the purchase price and there is little red tape to slow the process down.

Whichever method you use, it makes sense down the road to refinance your rental property with a conventional mortgage with a 15-, 20- or 30-year term. The rates are lower and what you pay is predictable every month, making it easier to manage your investments.

 

Lease vs Rental Agreement

The two most common arrangements between tenants and landlords are rental agreements and leases, and there are advantages to both for real estate owners and investors. While it might seem that the most advantageous arrangement would be a long-term lease that provides certainty for a landlord, this is not always the case, and in certain situations just the opposite can be true. This discussion will define both arrangements, and consider situations where one or the other would be more beneficial to a landlord.

What is a rental agreement?

A rental agreement most often takes the form of a month-to-month contract between renter and landlord, although the duration of the rental period can also be weeks or even days. Upon the expiration of the rental agreement, it could be renewed automatically by mutual consent of the two parties, or the landlord may want to increase the rental price for the next period, or the tenant might even be required to evacuate the premises.

It should be noted that in the event that either party desires to terminate this agreement, a notice of vacation might be required. Rental agreements also need not be formalized, documented arrangements between the two parties, but can be orally agreed to. This is not generally a good idea for either party because there are liability issues involved, and neither side is explicitly protected under some local habitation laws. In addition, anything agreed to verbally is pretty much impossible to prove in court, should a disagreement ever arise over specific issues.

Advantages of a rental agreement 

What a rental agreement lacks in certainty for landlord, it makes up for in flexibility. A good example where flexibility might come into play would be when you intend to have renovations done on a particular structure, and the contractor must start by a specific date. The shorter duration of the rental agreement would allow you to free up all necessary units in a building, so the work can be completed as scheduled.

If you are anxious to secure business from students in a college setting, offering shorter duration rental agreements can be one means of attracting that business, because it does not require long-term commitments. Renting out resort properties is also much easier through rental agreements, because you have the flexibility to charge higher rates during seasons of peak demand.

What is a lease agreement? 

As most people know, a lease is a kind of contract between renter and landlord which allows for the renter to occupy some kind of dwelling for a stated period of time. Most frequently, that period of time is 12 months, although longer leases are also fairly common.

For the term of the agreement, the landlord provides any necessary maintenance on the dwelling, and the renter agrees to abide by the specific stipulations within the contract, generally referring to requirements that maintain presentable interior and exterior appearance, avoidance of damage, and prompt payment of rental monies.

Advantages of leasing 

The biggest advantage of a lease agreement to a landlord is the surety of having a specific dwelling rented out to a tenant, at a guaranteed price for a fixed amount of time, which represents reliable income for the entire period. Legally, a renter cannot unilaterally break the lease agreement, and vacate the premises without notifying the landlord and fulfilling the terms of the lease. In some cases, lease stipulations require that a tenant pay a penalty for breaking the lease, and in other cases a tenant may be required to find a successor tenant prior to leaving.

Which is better? 

The answer to which arrangement is better for landlords and their investors really depends on the kind of dwelling being rented, and the plans you might have for such dwellings. For units intended to serve as de facto homes for tenants, a long-term lease with steady income is probably better. Properties used as seasonal dwellings, or properties scheduled for major renovations require the flexibility offered by rental agreements, and landlords should anticipate intermittent income.

Single Family vs Multi Family Homes

Single Family vs Multi Family Rental Properties

Investing in rental properties can bring a nice return on investment (ROI), especially if you approach it with the proper know-how and strategies. Learning from the mistakes of others is one of the best ways to know how to invest and manage your properties. One question you may have is whether it is best to invest in single family vs. multi family rental properties. Let’s compare these investments.

There are similarities between the two types of investments. Both types of properties:

  • have higher interest rates and require a higher down payment than buying a home as your primary residence. This is because investments are more risky for banks than a loan on a primary residence. The down payment is usually 20% since mortgage insurance is not available for investment properties. (Buy An Investment Property)
  • usually have a good ROI, with single family homes coming in as high as 20% and multifamily homes at 11-15%. As a general rule, if the rent you are able to charge is 1% or more of the cost of the property, you will have a positive cash flow. To calculate your best scenario, take your yearly rental income and divide by the cost of the property. Say you charge $1,500 rent per month on a home that cost you $150,000 including closing costs. $1,500 x 12 =$18,000/$150,000 = 12% ROI. Remember that if you take out a loan, the renters will be paying the loan back for you, so you will be building equity in the home each month. You will also want to figure in all of your expenses as you consider a property.
  • have tax benefits such as deducting mortgage interest and real estate taxes, advertising, management fees, insurance, etc. This publication on rental income and expenses from the IRS is very helpful in understanding what you can deduct.
  • need to be rented and maintained by you or a rental manager to whom you pay a percentage of the rental income.
  • are not subject to self-employment tax (SE Tax) which can be as high as 15.3%.

Single Family Rental Properties

Single family homes can be a great investment if you do things wisely, therefore some people feel they are a better investment. Here are some pros of renting single family vs multi family homes:

  • More Affordable. Single family homes can cost less than multi family homes and apartment buildings, so even people who have less money to invest can start out with one rental property and expand from there. You can slowly build up a portfolio of rental homes over time, say adding one home per year. In addition, mortgage requirements are not as stringent on single family properties.
  • Less Turnover. In general, there is less turnover with a single family home than with multi family homes. This is often due to families or couples looking to rent a single family home. Families or couples tend to pay rent more consistently than single people. Because of this, there is less time where the property is vacant. Investors also find that in general, renters of single family homes take better care of the home and property, although there are certainly exceptions to this rule. This often depends on the location and quality of the property.
  • Appreciation. Single family homes almost always appreciate more than multi family homes.
  • More Exit Strategy Options. If you decide to sell a single family rental property, you can sell it to another investor, a family looking to buy their own home, or lease it to the current renters on a lease-to-own basis. Buyers of multi family properties are limited to investors.
  • Location. Often the location of single family homes can be more desirable than multi family homes or apartment buildings. When looking for a property to invest in, consider the location, schools, comparable rents in the area, property taxes, crime rates, the job market of the area, and how many other homes there are for rent in the area.

Multi Family Properties

Some purport that multi family homes are a better investment. There is evidence that cash flow is better with these properties, however that may be offset by the quality of tenants and high turnover. Here are some pros of investing in multi family vs single family homes:

  • Financing. The government limits the number of properties that can be financed by one person. When considering multi family properties, keep in mind that those with more than four rental units are not subject to this limit. However one to four unit properties are limited.
  • Cost Per Unit Is Lower. Although the up front cost is greater, when comparing the two, the cost per unit is always lower with a multi family property.
  • Professional Rental Property Management Costs Less. In general paying a professional to manage your single family properties will result in 10% of the rent, whereas with multi family properties this amount is 4 to 7%.
  • Vacancy Expenses Are Lower. If a single family home goes vacant you are out 100% of the rent, however with a multi family unit, there is still rent coming in from the other units if once or two go vacant.
  • Less Locations to Manage and Maintain. In a multi family home all of your units are under one roof or on one property. Often mutliple repairs can be completed at the same time since the units share walls and the same property, avoiding multiple trips to the property or less cost to have maintenance companies make repairs.

Ultimately, both types of properties can be a good investment. It’s important to look at what you have to invest, how involved you want to be in the management and maintenance of the properties, how long you plan to keep the properties, how much you need to finance, and how much money you have stashed for emergencies. Both single family and multi family rental properties can set you up for steady income and early retirement if you invest wisely.

Arizona Landlord Tenant Law

Just like in other states, the relationship between landlords and tenants in Arizona is governed by The Residential Landlord and Tenant Act. This Act clearly stipulates the responsibilities and obligations as well as the rights of both landlords and tenants. If you’re moving or taking up residence in Arizona, you might want to know some of the key  Landlord-Tenant laws in the Act.

Security Deposit Rules 

Arizona statutes limit the amount of money that a landlord can ask as security deposit.  Landlords cannot take more than 11⁄2 of the monthly rent as security deposit or any rent paid in advance. However, this does not prevent a tenant from paying deposit that’s equivalent to 11⁄2  of the monthly rent in advance. Under Arizona Tenant Landlord Law, it’s allowed but must be written expressly in the lease agreement. Landlords can demand pet deposits plus additional fees but this should not exceed the limit of 11⁄2 of the monthly rent as well.

Should the Landlord fail to comply with statute on Security deposit, the tenant is allowed to recover the money due along with damages equal to twice the amount of deposit wrongfully held. As of now, there is no statute that requires tenants to make security deposit via bank account or landlords to record keeping of deposits.  Landlords are required to return deposits within 14 days and to send a written description or itemized list of charges and damages to tenants last known address.

Lease, Rent and Fee Rules

Tenants are required to pay rent without demand or notice as and when agreed by both parties. Unless agreed otherwise, rent should be paid at the start of the month within the dwelling unit or in equal monthly installments. Rent that is charged on tenants should be proportionate from month to month. While there is no statute for residential units, mobile homes have a grace period of 5 days. There’s no statute on late fees for residential units but for mobile homes, it should not exceed $5 per day.

At any given, the Landlord cannot take more than 11⁄2  of the monthly rent as deposit or any prepaid rent but the tenant is not prohibited from making voluntary payments in advance.  Tenants are permitted to withhold rent should the landlord fail to provide essential services such as heating and water to occupants of residential dwellings.  Tenants are allowed to conduct repairs and deduct the cost incurred from rent after submitting a proper notice and waiting for a period of 10 days ( for non-emergency repairs)

Landlords must not withhold more than $300 of the monthly rent.  The act also requires landlords in Arizona to ensure they take reasonable effort to mitigate damages to lessee. Where attorney or court fees are incurred, the landlord is allowed to recover it from the tenant.

Notice and Entry Rules

Unless there is an emergency, Arizona landlords are required to provide two days notice of entry. Tenants cannot withhold consent of entry unreasonably where the landlord wants to enter a premise to inspect the conditions or undertake repairs. And where the Landlord wants to make entry, he or she can only do so at reasonable times. The landlord is allowed to issue three kinds of notice to terminate tenancy lease: fixed end date, month to month, and week to week. Fixed end date requires no notice as it expires. Month to month requires 30 days notice while the week to week lease requires a 10-day notice from the day of lease expiration. Where the tenant remains in a dwelling unit without the express permission or consent of the landlord ( after expiration of lease), the landlord can take action to hold the tenant’s possession. If the tenant’s holdover is not in good faith, the landlord may additionally recover the due amount that should be equivalent to 2 months rents or twice the cost of damages sustained.

After receiving a tenant’s request of vacating a dwelling unit, the landlord is required to perform a move-out inspection. Where the tenant is being evicted for an irreparable breach and the landlord is concerned about the possibility of violence or physical harm by the tenant, the landlord is not required to conduct a move-out inspection. However, the landlord must issue a written notification to the tenant that he or she can be present during the inspection,

Lease Termination for non-payment should be given 5 days for the tenant to quit or remedy. Similarly, notice of termination for lease violation should be made 10 days for the occupant to remedy or quit and 5 days for noncompliance where health and safety concerns. Where the tenants have falsified information regarding criminal activity or previous eviction record, the landlord can make issue a 10 days notice for termination of lease.

The landlord is allowed to issue an immediate lease termination if the tenant is liable for the illegal discharge of a weapon, homicide, criminal activity, prostitution, or unlawful manufacturing, possession, storing, and selling of controlled substances. Equally, the landlord can issue termination where the tenant issues threatens or intimidation or assaults other tenants, or becomes a nuisance, or breaches an agreement that can otherwise pose significant safety, health, and welfare risks to the landlord, authorized agent or other tenants.

Landlords are allowed to create new rules and regulations for tenants and give them a notice of 30 days before they can into effect. Before making an entry into a premise, a landlord is required to issue notice 2 days in advance. The landlord can only make entry to dwelling units without notice in the event or emergency repairs. There’s no statute that allows the landlord to make entry where tenants are absent for extended periods. Where a landlord shuts off utility or fails to comply with the agreement for utility, the tenant is allowed to recover an amount that should not exceed two months of rent or twice the loss incurred.

Required Disclosures and Notes

Under Arizona law, all landlords are required to disclose certain information to tenants (usually through the lease/rental agreement). Tenants are supposed to be informed about the purpose of nonrefundable fee(if any), identity of any person who is authorized to act on the behalf of the landlord, and helpful materials on bedbug. It is the responsibility of the landlord to maintain a fit and safe premises as well. Equally, tenants must maintain the premises or dwelling units in good condition and not knowingly or negligently impair, deface, or damage any part of the premise.

Landlords or owners of residential property are required to register their properties with county assessor within their city or location. In addition, the landlord is required to disclose the valid name and address of the owner as well as any person who oversees or manages the property. Before a tenant occupies a premises, the landlord shall duly inform the tenant  in writing that  the Arizona Residential Landlord and Tenant Act is available at Arizona’s housing department website.

As a landlord, you are required to provide your tenants with a signed copy of the lease agreement or a move-in form that specifies what damages exist and a written notification to invite the tenant to inspect the dwelling during move-out inspection. Bedbugs is a cause of concern for many tenants. The landlord is required to provide tenants( both new and existing) with educational materials about bedbugs. Pursuant to that, the landlord must not enter into a lease agreement with any tenant should any dwelling unit have bedbug infestation.

Arizona law allows landlords to verify claims of domestic violence within their property.   Where there’s proof of domestic violence, the tenant can terminate the lease without being penalized. The landlord must change locks or keys if they are requested b victims of domestic violence at the expense of the tenant. Where losses are incurred because of early lease termination, the landlord can hold the offender in a Domestic Violence situation liable.

Landlords must not terminate or deny a tenant lease renewal, or withhold services to any tenant who has filed an official complaint with a local government authority, or who has been actively involved in tenant’s association in the last 6 months. The landlord is entitled to hold the tenant’s personal possession for a period not exceeding 10 days after writing and issue a declaration of abandonment. During this time, the landlord shall take reasonable care while holding tenant’s property or possession. Thereafter, the landlord can sell the property so as to settle outstanding debts. Any extra amount shall be emailed to the tenant’s last known address. Record of sale should be kept for a period of 12 months.

Small Claims court limit

Justice Courts in Arizona handle tenant-landlord disputes and small claims cases. The least you can ask for a small claims case in Arizona is $3,500 while the most you can ask is $10,000.  Often, small claims case are informal then typical courtroom proceeding and don’t always involve lawyers. Once a ruling is issued on small claims case, there is no appeal.

Conclusion:

Arizona Landlord- Tenant Laws are subject to change from time to time and may even vary from one county or city to another. You are solely responsible for conducting research and complying to laws applicable to your personal situation.  Should you have questions or concerns about your situation, we strongly recommend that you consult with the relevant government agencies or a property attorney or lawyer in your city or area.

links to relevant courts:

Justice Courts Arizona

Arizona Attorney General

Maricopa County Justice Courts

Arizona Small Claims Court

Other Useful Arizona Links

Arizona Department of Real Estate

Arizona Department of Housing

Arizona Association of REALTORS®

 

Top 15 Tax Deductions for Landlords

Top 15 Tax Deductions for Landlords

Paying taxes isn’t fun for most business people, but it is a necessary or compulsory part of life. As a landlord, paying your taxes doesn’t have to be a bitter pill to swallow, because federal law allows you to take advantage of a number of tax deductions on your rental income.  This article seeks to explore some of the top fifteen tax deductions you could benefit from as a landlord.

Taking advantage of these deductions could make the difference between gaining a sizeable amount of income on your rental property, and losing it.  There are some rules every landlord has to follow if they want to take advantage of these deductions, the crucial one being that you can only deduct necessary and ordinary expenses.

An ordinary expense is one that is accepted and common in your industry, such as paying contractors to repair a leaking roof. On the other hand, an expense is deemed necessary if it is appropriate and helpful in your line of business, such as advertising your premises so as to get tenants.  It is important to keep proper and detailed records of all your expenses concerning your rental property, so as to make the deduction claim and process seamless. Below is an elaborative list of the deductions you can make as a landlord:

1) Depreciation of Assets

Depreciation of assets refers to the things that you have purchased for business purposes, which depreciate over time and whose use goes beyond the current tax year. There are three major types of costs that you can depreciate, these include:

•    The value of the property (not the land, as land appreciates in value over time)

•    The cost of any improvements done on the property such as replacing worn out carpets, countertops, roofs, appliances and more.

•    Equipment, automobiles, laptops, and computers for business use.

These expenses are not deducted in a single year. They are spread over multiple years.

2) Interest

One of the biggest deductible expense you can make as a landlord is on any interest you accrue because of a loan or any other expense related to the rental property.  For instance, if you took out a mortgage or loan on the property, then you can deduct the interest accrued on the loan/mortgage when filling your property’s tax returns.  You can also make deductions on the interest accrued on your credit cards as a result of making payments related to improving or repairing the property.

3) Repairs

Repairs are a necessary part of owning a rental property, because “things will always break.” Repairs help landlords keep their premises in good working condition, they are, therefore, deductible. Examples of repairs that can be deducted when paying tax include:

•    Air Conditioning Repair

•    Painting

•    Fixture Repairs

•    Incidentals that are related to a repair

•    Plumbing Repairs

•    Labor Costs and Contractor fees

4) Travel Expenses

Both long distance and local travel expenses that are business related are deductible. For instance, if you use an automobile to travel to your premises regularly then the cost of maintaining the vehicle, the cost of gasoline and parking fees are deductible. If you use public transportation then you can deduct these expenses.  On the other hand, if you have to travel by air you can deduct the cost of your air tickets.

5) Legal and Professional Fees

You can also deduct the amount of fees you pay for professional or legal advice/work. These include real estate agent fees, attorney fees, accountant fees, and the fees you pay other to professional advisors, such as structural engineers.

6) Insurance

All insurance premium payments you make towards securing your business premises are tax-deductible, such as:

•    Fire/ Liability and Damage Insurance

•    Theft Insurance

•    General Liability Insurance

•    Flood Insurance Riders

•    Homeowners Insurance

•    Personal Umbrella Insurance

•    Mortgage Insurance Premiums

•    Workers’ Compensation Insurance

7) Management Fees

Managing your property can be quite a challenging task. For this reason, most landlords usually hire property managers or on-site manager to assist them: you are allowed to deduct these expenses, as well as those of other employees.

8) Commissions

As a landlord, you will sometimes be required to pay fees to tenants or managers for referring potential residents to hire out your premises. The IRS recognizes these commissions as being deductible.

9) Office/Operating Expenses

As a landlord, you need somewhere to keep your documents, records and even work. Any commercial space you use concerning your property can be deducted. If you work at your home office, then you can deduct square footage. You should also deduct any other operational expense, such as:

•    Pencils, Pens, and Staples

•    Ink & Printer Paper

•    Legal Forms

•    Phone Bills

10) Advertising

Some landlords use advertising as a way of getting their property occupied fast.  All the different types of advertising costs can be deducted, so whether you use Craigslist, signs, and banners, online ads or newspapers to advertise include these costs in your tax deductions.

11) Maintenance costs

Maintenance is not the same as repairs. Unlike when doing repairs, you are not fixing any broken thing or item when doing maintenance. For instance, the lawn has to be regularly maintained by cutting grass, but the lawn does not break. Other types of maintenance costs include:

•    Pest control and treatment

•    Homeowner Association Fees

•    Light Bulbs

•    Landscaping and Tree Trimming

•    Smoke Detector Batteries

•    Pool Maintenance

•    Janitorial Items

•    HVAC Filters

12) Casualty and Theft Losses

If you happen to lose rental income because your property has been damaged or destroyed, then you can make a tax deduction on part of or all of your loss. Loses that occur all of a sudden as a result of flooding, fire or some other unfortunate occurrence, are regarded as being casualty losses.  You can also deduct items lost as a result of theft.

13) Utilities

The costs you incur in services can be deducted when making your rental income tax returns. If your tenants happen to reimburse you for paying a utility expense, you can still make a deduction. You will, however, have to claim the reimbursement made as income.  Deductible utility expenses include:

•    Water & Sewer

•    Gas

•    Electricity

•    Trash & Recycling

•    Heating Oil

14) Start-up Expenses

A start-up expense is incurred even before a business has commenced. These costs are deductible, but they cannot be deducted in a single year because a start-up expense is still a capital expense (a cost that will benefit you for years and no just one year). $5000 is the maximum startup deduction you can make in the first year.

15) Passive Activity loss

Because you earn money from your real estate venture, it is regarded as a passive activity, in which losses incurred in this activity are deductible by up to $25,000 (special allowance). However, a landlord must actively participate in the real estate business to qualify for the passive activity loss deduction. For instance, you must be actively involved in management decisions including repair and maintenance decisions.  You must also have at least 10% interest in the rental property, to qualify for this deduction.

One of the aspects that make’s the real estate industry quite lucrative is the income you can make from your property. The other lucrative aspect of this industry is the various tax deductions you can claim such as maintenance and repair fees, employee payments, stat up expense and more. It is important to be as accurate as possible when making these deductions to avoid encountering any problems with the IRS. Where possible, keep some form of record such as a receipt for evidence.

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Nevada Landlord Tenant Laws

As Nevada has transitioned from having a mostly transient to a mostly fixed population, laws have strengthened somewhat in favor of tenants. However, the laws are still very different from those of neighboring states such as California, and it is important for both landlords and their tenants to be familiar with them. There are no landlord-tenant laws at the federal level, and while a number of states have voluntarily adopted the Uniform Residential Landlord Tenant Act as a loose national standard, Nevada is not one of them.

Keep in mind that the information presented here is not meant to be 100% complete, nor should it be considered equivalent to the advice of a legal professional. The information presented here is current as of the publication of this article, but can potentially change as laws are revised or new laws are drafted.

What Laws Cover Landlord-Tenant Relationships?

Title 10, Chapter 118 covers most of the state’s laws and regulations pertaining to landlord-tenant relationships. Chapter 118 is also known as the Nevada Fair Housing Act and covers potential discrimination issues. Title 10, Chapter 118A (the Residential Landlord and Tenant Act) covers residential rental agreements between landlords and tenants. Title 10, Chapter 118B deals specifically with manufactured home parks and residence in recreational vehicles. And Title 10, Chapter 118C covers commercial rentals.

One final section to be aware of is Title 3, Chapter 40 (Actions and Proceedings in Particular Cases Concerning Property). This further covers some specific issues of dispute that can potentially arise in rental agreements, including trespass, construction issues and maintenance of properties obtained at foreclosure auctions.

Security Deposit Rules

Though a security deposit equal to a month’s rent or less is something of an industry standard, under NRS 118A.242 Nevada landlords are allowed to ask for up to the equivalent of three months of rent as a security deposit should they so choose. The deadline for returning the security deposit is 30 days after the lease is terminated.

Any non-refundable fees, such as those for cleaning, must be listed by the landlord in the lease agreement. A written and itemized list of charges and damages must also be provided to the tenant in the event that some or all of the security deposit is not returned.

Nevada law does not require landlords to place the security deposit in an interest-bearing account while it is being held. The original amount is returned to the tenant less any charges or damages.

Nevada is one of the very few states that allows landlords to charge non-refundable pet deposits, except where issues with legitimate service animals might conflict with the Fair Housing Act. The pet deposit is a separate item from the security deposit, and the landlord is allowed to retain it to cover expected cleaning and maintenance from the presence of the pet after the tenant has moved out. While landlords cannot “double dip” on the security deposit, they can choose to charge an additional pet deposit at each lease renewal if they so desire.

Lease, Rent and Fee Rules

Nevada has no specific laws regarding late fees, returned check fees or prepaid rent.

If a landlord wishes to raise a tenant’s rent, they are required under NRS 118A.300 to give at least 45 days advance notice. The exception to this is if the term of the tenancy is less than one month, such as in a week-to-week rental arrangement, in which case the landlord only needs to give 15 days notice.

On the tenant protection end, NRS 118.355 allows tenants to withhold rent if certain essential services, such as electricity and water, cannot be accessed or if the landlord does not repair damages that render the unit in an uninhabitable condition. Tenants may also make vital repairs on their own and then deduct the cost of those repairs from their rent under certain circumstances.

Should a tenant continue to inhabit a dwelling after their lease is up with the consent of the landlord, but without a new lease drawn up, any previous agreement automatically converts to a month-to-month or week-to-week agreement, depending on what the rent payment arrangement was up to that point.

Finally, Nevada does not place a cap on recovery of court and attorney’s fees in the case of a legal dispute.

Notice and Entry Rules

The amount of notice needed to terminate a lease is governed by NRS 20.451. Month-to-month rentals require 30 days notice, and weekly rentals require seven days notice. There is no statute regarding longer rental periods, such as yearly leases. There is also no statute regarding advance notice for a move-out inspection.

Evictions for lease violations and nonpayment of rent are covered by NRS 40.2512-2516. Evictions generally require five days advance notice. However, if the eviction is due to a lease violation, the landlord must first give the tenant written notice of the issue and three days to fix it. If it is not resolved in three days, the landlord can then give the five-day eviction notice.

NRS 118A.330 covers requirements about advance notice before entry. In general, 24 hours notice is required before a landlord can let themselves in to a tenant’s dwelling. However, there is a provision for entering during emergency situations without any prior notice. There is also no specific statute regarding entry if a tenant has been absent from the property for an extended period.
Landlords may not lock a tenant out or shut their utilities off, under NRS 118A.390.

Tenants are granted the right to display the flag of the United States of America under certain conditions by NRS 118A.325. The flag must entirely be on the portion of the premises that the tenant has the right to occupy and must be displayed in a manner consistent with 4 U.S.C. Chapter 1.

The state has no specific statute for landlord responsibility in terms of special protections for domestic violence victims.

Required Disclosures and Notes

NRS 118A.200 covers the items that a landlord must disclose to a tenant. Among them are a move-in checklist detailing the inventory and condition of the dwelling at initial move-in, the conditions required for the deposit to be refunded, and any pending foreclosure.

Laws outlining what is considered “retaliation” are outlined under NRS 118A.510. In short, a landlord cannot take averse action toward the tenant if it is only taken after the tenant complains to the landlord about illegal or unsafe living conditions, or if the tenant brings these concerns to a government agency. Tenants are also protected from retaliation if they form a tenant’s union under these conditions.

Small Claims Court

In Nevada, eviction cases are not heard in small claims court. The state limit for payments is $7,500, but some cities have opted for lower limits. You will need to check with your local municipality to see if the limit is lower in your area.

The links below go to the small claims courts of the major cities and counties in the state:

Nevada Realtor Associations

Property Management Licensing and Certifications

Is it worth it getting certified as a property manager? The answer: it depends? While the courses themselves provide a lot of useful information, Landlords and Property Managers are not really the same job.

Landlords actually own property, while property managers are the people who actively manage these properties on behalf of the landlord. For smaller landlords, this may be the same person. Larger businesses and out of state landlords will often employ a property manager.

What does a Property Manager Do

The property manager’s responsibility will change depending on both jurisdiction and landlord, but usually involves:

  1. Renting out vacant properties
  2. Collecting Rent on behalf of the landlord
  3. Managing all issues surrounding the property (repairs, maintenance, improvements)
  4. Handling evictions
  5. Handling lease-ends, walk arounds etc

Does a Property Manage Need a License?

This question depends on the jurisdiction, so you’ll need to check both state and local laws. If you’re going to be involved in both the renting/selling on behalf of clients, then you’ll definitely need a real estate license.

Even if you’re jurisdiction doesn’t require specific licensing as a property manager, certification is still important. Below are what are considered the 5 best certifications and licenses for property managers:

Real Estate License

Most states require property management companies to have a real estate broker license, especially if the company is involved in collecting rent. If your company has a broker’s license, you may only need a salesperson’s license, as long as you are listed as working under the managing broker.

In states like Maine, Idaho and Vermont, property managers do not need to be licensed. Other states, like South Carolina, Oregon and Montana, recognize a property manager license instead of a real estate agent license.

To obtain a real estate license, check out the requirements of your state’s relevant agency. This is usually called a licensing board, agency or something similar.

Certified Manager of Community Associations

This certification was created by the Community Associations Institute, and is currently awarded by the National Board of Certification for Community Association Managers.

Certified members are kept up to date on local laws, and are required to undergo continuing education in order to maintain their membership.

Residential Management Professional

This certification was created by NARPM, the National Association of Residential Property Managers. This is probably one of the more highly recognized certifications for property managers. To be awarded this certification, you need to have a real estate license in good standing, 2 years minimum experience, and you must have managed at least 25 units.

Certified Property Manager

Created by IREM, the Institute of Real Estate Management, this is one of the more difficult certifications to achieve. You must have significant experience in property management and investing, and show that you either have a real estate license or are not legally required to hold one.

Certified Apartment Manager

This certification is awarded by the National Apartment Association. It’s best for those who work in larger apartment buildings or for bigger companies with a portfolio. You are required to take a series of classes, complete a project and then pass a final exam.