Moving out of one’s parents’ house is often thought of as a key milestone on the path to adulthood. But in the face of waning housing affordability, a growing number of Americans are continuing to live with their parents into adulthood. In 1970, just 7 percent of 25 to 35 year-olds lived in their parents’ homes, but as of 2022, that share has more than doubled to 17 percent.

Click here to read the full report at Apartment List.

However, perhaps of most concern to real estate investors were her remarks about housing:

“Harris also reiterated her stance on housing, saying she would take on corporate landlords and cap unfair rent increases. This seems to indicate that she is interested in moving forward with the Biden plan to cap the maximum annual rent increase for landlords who own more than 50 properties at 5%. Many housing advocates have come out against this policy. The National Association of Home Builders said it would worsen the current housing problem by discouraging the construction of more homes.”   – as reported by Yahoo!Finance

Stay tuned….

Click here to read the full story at Yahoo! Finance.

“All in, there are 5.8M fewer sub-5% mortgages in the market today than there were at this time in 2022. This has been a slow-moving change, as borrowers with lower rates have sold their homes or, to a smaller degree, refinanced to withdraw equity. The entire market is acutely aware of how elevated rates have been constraining origination volumes. But seen from another angle, the same dynamic is also serving to gradually enlarge the population of folks with high-rate mortgages, who are actively waiting for the moment a refinance makes sense. This would benefit both a growing number of homeowners and lenders.”  Said Andy Walden, ICE’s Vice President of Research and Analysis.

Click here to read the full report at ICE Mortgage Technology (formerly Black Knight).

America’s Republican-leaning red states are winning at drawing in new residents from blue states—but locals don’t like it one bit.

Bruce Ailion, a real estate agent and attorney with Re/Max Town and Country in Georgia, says it’s understandable why blue-state residents are buying properties in cheaper conservative areas.  “Property values are protected in well-governed, pro-growth, pro-business states that are tough on crime. Increasingly, those are red states,” he says.

In addition to that, red states tend to offer lower taxes and fewer regulations, adds Mike Rhoads, owner of Wild North Home Offers in North Carolina.

Click here to read the full report at Realtor.com.

By David Pickron

Maybe nowhere does the saying “time is money” apply greater than it does in our industry. For each of us, we are well aware of the expense of having a property sit empty for a month or more, painfully knowing the impact it has on our bottom line. Experience has taught me that in order to protect my investment, I have had to establish hard and fast timelines to ensure that my returns always stay on the positive side of the ledger. This starts right with my first interaction with a potential tenant, all the way through the move-out process.

Here is my counsel on laying out timelines for the first three critical pieces of the rental process:

Completing the Application-

I recommend setting a strict timeline for completing the application. My standard practice is to give the applicant 24 hours from showing the property to complete the application. This ensures that I still have the ability to show the property to other potential tenants without having to wait days or weeks for them to decide if they want the property.

Depositing Funds-

Once the application is approved and we have completed the on-boarding process, I require a non-refundable deposit within 24 hours to hold the property. Some landlords like to get the deposit before the application process, but I personally found that refunding that deposit if they are not approved is a hassle and if I can onboard quickly, I have the deposit soon enough with someone I know is qualified. Again, this is up to you to determine, but apply this to all your tenants.

Rental Payments and Moving into the Property-

Although you may see these as the same things, they are very different. This is especially true when it comes to source of funds. With the rise of government involvement in housing, specifically Section 8, they are trying to control the timelines surrounding your property. If you decide to rent to someone receiving government assistance, the process takes two months to complete. In this case, are you willing to give up two months’ rent as you wait and hope that the applicant and your property are approved? For me, I require you pay the first month’s rent and take possession within two weeks after the lease is signed.

This process may seem obvious to many seasoned landlords. But I have one question, should you put these timelines in your detailed criteria before someone applies? The answer is a resounding YES! With all the tenant complaints and fair housing that is coming against us landlords, sharing your required timelines in a criteria shows that you have a strict, written policy and that treating everyone the same is something you take seriously. Now as a landlord, I know things change, markets change, and if you need to change your timelines in a criteria, then simply document the change and date your criteria sheet. If today you require move-in in 2 weeks, nothing says you cannot change your criteria tomorrow to say 4 weeks if needed; just always, always, always document it.  If you need a sample detailed written criteria, please email us at info@rentperfect.com and we would be happy to get a copy to you.

David Pickron is President of Rent Perfect, a private investigator, and fellow landlord who manages all types of rentals. Subscribe to his weekly Rent Perfect Podcast (available on YouTube, Spotify, and Apple Podcasts) to stay up to date on the latest industry news and for expert tips on how to manage your properties.

Members of National REIA can take advantage of special pricing from RentPerfect; the solution for rental property owners and managers for screening & managing tenants.  Learn more by visiting www.rentperfect.com or calling 1-877-922-2547.

“Finding the best place to raise a family is difficult, between balancing an affordable cost of living with good educational opportunities, safety and enough recreation to keep kids entertained…”  Said WalletHub analyst Cassandra Happe.

Their top 5 best cities are:

1. Fremont, CA
2. Overland Park, KS
3. Irvine, CA
4. Plano, TX
5. Seattle, WA

Click here to read the full story at WalletHub.

“Since the second half of 2022, seasonal declines have been steeper than usual and seasonal increases have been more mild. As a result, apartments are on average slightly cheaper today than they were one year ago. “

Click here to read the full report at Apartment List.

“Americans resettling because of high cost of living do play a role in this development, but changes in immigration into the U.S. have also had a big part in the state’s ongoing population decline as immigrants increasingly diversify their destinations in the U.S., favoring – like domestic migrants – the Sun Belt states, but also smaller cities.”

Hat tip tip to Statista.

Click here to listen.

by George Skidis

If you have ever had a high water bill you know how frustrating tracking down the issue can be. We have and tracking down leaks in a mobile home park is excruciating.

According to Illinois American Water a typical household leaks almost 10,000 gallons of water every year. That is enough water to wash 300 loads of laundry.

Here are some tips to help you figure things out.

1. Locate and red tag the main shut off in the house. Teach ever family member or tenant where it is to shut things down in an emergency
2. Have the water company come out to read your meter. Turn off the main shutoff in the house and ask them if the meter is still moving. If it is still moving you either have a bad shut off value or there is a leak in the yard outside your building between the meter and the foundation. Replacing or repacking a shut off is an inexpensive option. To see if it is the shut off open the kitchen and bathroom sinks. If the water in the pipes drains out the leak is in the yard. If the water never stops running you have a bad shut off.
3. Check all of your faucets for drips. A leaky faucet can waste over 3000 gallons a year.
4. The outside faucet for the garden hose is a likely culprit. The outside faucet is known by several names; garden faucet, freezecock, sillcock, spigot, hydrant, bell valve and anti-siphon spigot to name a few. If somebody left the hose attached over the winter that faucet could not drain when the temperature dropped below freezing. The pipe behind it may have frozen inside your foundation. Once it thaws there can be a pinhole leak or a geyser. Make sure to disconnect the garden hose before the first freeze. Go into your basement or crawlspace to check for this leak.
5. A worn-out ballcock can slip and slip all night and pump water down the overflow tube. There are several types available today from the original float valve type to the modern universal fill valve in all their variations. Before you go the expense of replacing the ballcock, try replacing the $3 rubber flapper first and see if that is causing the leak.
6. Washing machine supply and drain line. If you find water under or around your washing machine, be it clothes or dish type, you need to check the supply lines and the drain lines for leaks and loose connections. Although your insurance policy covers water damage they do not cover continuous and repeated seepage, and they will not pay for the repairs to the washing machine unless it Is damaged by Fire, Lightning or some other named peril.
7. Another way to check for leaks is to turn off all equipment, machines, televisions, radios and whatever else you have that makes noise and just listen. That may also include sending your spouse and children to grandma’s house for the day but get things quiet and listen. If you hear water running, there just might be a problem.
8. Leaky tub spouts and shower heads. This one almost sounds ridiculous. Water is supposed to come out of the shower head and tub spout. What you are looking for is water coming out at the wrong time. If you pull up the diverter on the tub spout you should only have water coming out of the shower head. If it comes out of both the buildup of corrosion in the tub spout may be preventing the diverter from sealing properly. This wastes a couple of gallons of water each shower. As long as it is not too far gone, you can remove the tub spout and soak it in full strength vinegar for 24 hours or so. If you can’t remove it try a plastic bag and a rubber band to tie it over the spout securely. After 24 hours the vinegar should have loosened or removed the corrosion and hard water deposits. Following up and scrubbing with a retired toothbrush should finish the job.
9. The last tip is to challenge the water bill if you have checked everything and can’t find a leak. We were successful in this one time and saved over $1,000 in the process. Water meters and readers do make mistakes, occasionally.

Good Luck and Good Investing!

George Skidis is President and Founder of Illinois REIA