By Karina Estrella | Trepp

With homeownership rates sagging over the last 11 years thanks to shifts in demographic trends, apartments have become one of the most in-demand property types. As we wrote in our previous multifamily snapshot, apartment demand rose to its highest level in 25 years in 2017, which is a generational peak. However, some of the sector’s underlying financials are beginning to decelerate – at least when it comes to loans in CMBS. According to Trepp data, the average occupancy for multifamily CMBS loans has been trending downward over the past two years. Average occupancy was measured at a recent low of 93.1% in March, which is 60 basis points lower year over year.

Per Multifamily Biz, construction starts for seven of the 10 largest US multifamily markets dropped in 2017 when compared to 2016. The overall volume of multifamily construction starts was $194.7 billion last year, which is 7% lower year over year. However, it seems that the elevated levels from previous years continue to weigh on occupancy levels.

By Dwight Kay – Founder, Kay Properties and Investments, LLC

Investors considering a 1031 exchange often look at Delaware Statutory Trust and Tenant in Common Properties as a more passive, hands-off investment vehicle whereby they do not have responsibility for the day-to-day operations and management of a property. The question many investors have is which is the winner in the DST vs. TIC debate.

Before looking at the individual structure of the two investment options, in our opinion, investors must consider the real estate as the most important factor—the quality of the property and if the real estate makes sense.

 by Esther Schiller, Smokefree Air For Everyone (S.A.F.E.)

Tenant surveys conducted by the UCLA Center for Health Policy Research, the Los Angeles County Department of Public Health’s Tobacco Control and Prevention Program and the American Lung Association have been showing that most apartment residents want to live in a smoke-free environment. At the same time, these same surveys are also showing that most tenants don’t complain when they are breathing a neighbor’s tobacco smoke. They may not want to risk damaging a friendly relationship with that neighbor, or annoying the on-site manager who may also be a person who smokes. For whatever the reason, there seems to be a disconnect between owners and their tenants on this issue of smoking.

by C. Finley Beven, JD, CPM, CCAM

Unit #3 had been vacant for about 8 days. We were just finishing the “make over” process, ads were running, and we had begun accepting applications. While at the property, we happened to notice that someone was parking in the space intended for unit 3. It was highly probable that one of our tenants was using that space. As no current tenant was being inconvenienced at this time, we did not need to act in haste. We will resolve this, but we will do it thoughtfully.

By Nate Bernstein, Esq., Managing Counsel- LA Real Estate Law Group

In any landlord v. tenant litigation scenario, the risk of an award of attorney’s fees and costs against you or your company  (as the landlord or property management company) is a serious financial risk if your opponent prevails on the merits in landlord tenant litigation.  The risk can be present at the level of “law and motion,” the level of “trial practice,” or the level of “appellate practice.”  Landlords and property management companies are generally not “judgment proof.” Their assets are visible on the boulevard and the public title records !!   If the risk is not insurable, landlords and tenants have financial exposure if a tenant prevails in an eviction case or other type of litigation case. If you are a plaintiff in a hotly contested case, you have the burden of proof, and if you lose on the merits before a judge or jury you have exposure for an award of attorney’s fees and costs against you, not to mention a potential lawsuit for “malicious prosecution.”  

By Becky Bower | ApplyConnect

Whether you’re a networking newbie at multifamily events or you’re a true rental tradeshow veteran, knowing how to follow up with exhibitors and vendors after the conference is a crucial step to networking. Don’t let the connections you built up at a tradeshow go to waste. If you take the time to properly follow up and build relationships with your colleagues and vendor representatives, you’ll be able to reap the career benefits later on.

Jessica S. Weisman, Managing Partner of Client Education | Kimball, Tirey & St. John LLP 

Disability is the most common basis for the filing of housing discrimination complaints in California and nationally. According to the California Department of Fair Employment and Housing (DFEH) 2016 Annual Report, 39% of the housing complaints filed were based on mental or physical disability. According to The Office of Fair Housing and Equal Opportunity (FHEO), in 2016, out of 8,385 complaints, over 50%, 4,908, were based on disability.    

by Jessica S. Weisman, Managing Partner of Client Education | Revised from a previous KTS article prepared by D. J. Ryan, former Director of Education (Retired)

One of the most common questions asked by managers, leasing professionals, and owners during our fair housing trainings is, “What can I, or can’t I say, so I won’t get in trouble with fair housing?”

It should come as no surprise that what you say, type, text or post on social media could increase your potential for a fair housing complaint or lawsuit.

by Charlie Wade | VTS

Historically the primary focus of the vast majority of office landlords was to secure enough tenants to fill their buildings as quickly as possible. Their modus operandi was simple: persuade an occupier to sign as long a lease as possible, with a minimum rent-free period and on a maximum pounds per square foot rent, in the quickest way possible. Once the tenant signed on the dotted line the landlord could essentially not worry about that tenant/building until a lease event loomed large on the horizon.

This article was originally published on the Resident Screening Blog.

Since the housing crisis, the demand for affordable rental housing has skyrocketed as Americans have shifted from a homeownership mentality to a renter mentality. As Richard Florida from CityLab might argue, the migration from suburban homeownership to renting has been increasing since 2006. In fact, from 2006 to 2014 the number of U.S. renter households did increase by 5%. With a large percentage of the renter population concentrated in or near urban areas, some of the most major cities in the U.S. lack the necessary housing supply to meet the demand.