Current Vacancy:
FRPM’s current vacancy is 1.1% and below is a graph showing the trend.  It's winter, but the weather has been relatively nice so the rental inquiries haven’t come to the complete stand still that we've seen in the past.

Click to enlarge image

End of the Year Statements and Tax Reporting:

First Rate Property Management will send out the 1099’s and End-of-Year Statements at the end of January.  However, for any owner that received funds from HUD, Section 8, or the Housing Authority, we will first wait to received the 1099 reporting from that agency to double check for accuracy and then mail those out immediately afterwards.  Your 1099 and End-of-Year Statement will also be uploaded onto your online statements for future reference.

For those in partnerships, the K-1’s can’t be completed until the EOY statements and 1099’s are completed.  So look for your K-1’s to be sent out near the end of February.

Idaho Incomes are 3^rd Lowest in Nation:
It’s not uncommon for an out-of-state investor to look at Boise rents and state, “Rents are low”.  Rents do appear low in comparison to a lot of cities across the nation, but perhaps not as low as one would expect in comparison to income.  Below is a link to an article stating that Idaho income levels are currently third lowest within the nation.  First Rate Property Management manages in the Boise, Meridian, and Eagle areas, all of which fall in Ada County.  I can tell you that the income of our applicants for our multi-family rentals, like duplexes, four-plexes, and apartments is far less than the average income stated in this article.  In fact, their income averages are probably half as much.

http://boiseguardian.com/Income

Boise Property Manager Files Bankruptcy after Fair Housing Complaint:
A fellow colleague recently filed bankruptcy, after receiving several fair housing complaints, due to the legal costs and the amount of compensation wanted by the complainant.  I obviously don’t know all of the specifics and I only know one side of the story.  My sole purpose is to describe an incident and the arguments for and against the complaint.  The message here is that fair Housing is a serious issue and can put a Landlord out of business.

The complaint was generated by a local Fair Housing Advocate, not from a tenant.  This advocate found discriminatory language in their lease, such as requiring adult supervision for children under a specific age and that support/companion animals require inoculations and proper licensing.  Most reading this are going to think that sounds very reasonable and perhaps even prudent.  Where the intent may be reasonable it’s the wording used to express it that causes issue.  This property manager’s attorney reviewed his lease and approved it and even after the complaint, the attorney found no issue with the wording.  Property managers and owners have come to me with this case and their concern is that this property manager is going out of business and no actual tenant was harmed or discriminated against.  I would assume that the complainant’s position is that this wording is discriminatory and possibly caused would-be applicants to not apply.

Owner’s question decisions First Rate Property Management make all the time regarding Fair Housing Issues.  Most concerns are those regarding Reasonable Accommodations and Modifications.  A typical Reasonable Accommodation is for a support or companion animal.  Owner’s who don’t want pets in their rentals have a hard time understanding that a support or companion animal is not considered a pet.  We cannot unreasonably deny this request, nor can we charge more rent or collect a deposit.  Most owners’ arguments are that pets cause increase wear and tear and often times, damage to the property.  I do not dispute that.  But it’s the law.  Next owners want to know what is wrong with the tenant that makes them need a support or companion animal.  Again, the law prohibits us from asking that question.

A more recent common accommodation or modification request is coming from felons who claim to have committed the crime that they were convicted of while under the influence of drugs or alcohol.  Recovered drug addicts and alcoholics have some protection under Fair Housing.  Should a recovered drug or alcoholic request an accommodation or modification of a Landlord’s written rental policies that deny felons, the landlord can not unreasonably deny their request.  This decision and what makes it unreasonable is complicated.  Landlords faced with such a decision better know the laws or know who to consult with to be sure they comply.  As the story above clearly shows, an inadvertent and what may appear to be a very minor issue can cost you.  That’s why First Rate Property Management employees attend Fair Housing classes taught in the area.  We find that HUD and the advocacy groups’ position on certain issues are not all the same.  So we want to know all of them and take the conservative approach in order to reduce the risk to our owners and of course our selves.

http://boiseguardian.com/Income


Tony A Drost
http://www.frpmrentals.com/

http://www.boiseinvestmentproperties.net//

First Rate Property Management, Inc
Boise, ID