WASHINGTON STATE TO CONSIDER GROUNDBREAKING SUITE OF HOUSING AFFORDABILITY BILLSLawmakers are advancing a balanced mix of bills to boost homebuilding, fund affordable housing, and protect tenants.
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Northfield Properties does not accept a comprehensive reusable screening report the tenant may deliver by a consumer reporting agency.
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There are 9 bills in Washington legislature to control property owners of investment properties.
Below are just a couple. SENATE BILL 5600 Sponsor: Sen. Kuderer (D-48) / Housing Stability & Affordability Increases the notice requirements for nonpayment of rent, limits return of possession of property to non-payment of rent only, provides no enforcement mechanism and limits recovery for property owners to collect contractually obligated costs, including utilities, and allows tenancies to be reinstated after a court judgment against the tenant for non-payment. HOUSE BILL 1453 Sponsor: Rep. Macri (D-43) / Civil Rights & Judiciary Increases the notice requirements for nonpayment of rent, prohibits a landlord from offering fixed-term tenancies, limits return of possession of property to non-payment of rent only, provides no enforcement mechanism and limits recovery for property owners to collect contractually obligated costs, including utilities & fundamentally redrafts the summonsand complaint, and allows tenancies to be reinstated after a court judgment against the tenant for non-payment. ARGUMENTS AGAINST SB 5600 / HB 1453 Extension of notice to pay or vacate period significantly increases risks and costs to owners and tenants • Creates a drawn-out notice for performance of the basic tenant obligation to pay rent. • Significantly increases the expenses to the property owner with no effect and at no cost or risk to the tenant who would pay only rent owing initially. • Substantially increases the costs to turn and make-ready a unit when a vacancy exists resulting in higher costs to tenants. Bans landlords from “self-maintenance” of the property, increasing costs to tenants • Requiring receipts and / or estimates for any deductions from a security deposit precludes landlords from performing their own maintenance at a property. • Rents will increase, and deposit refund amounts to tenants will decrease, due to having to hire professionals at market rate for maintenance and repairs. Requires all leases to be renewed or convert to month-tomonth upon expiration of a fixed term • Would greatly harm landlords who plan lease renewals per the industry’s business cycle, or who set a lease agreement to expire at a planned date to allow for rehabilitation or sale. • Opens the door to “Just Cause” laws which forces tenancies to extend and prolongs problem tenancies – the industry is nonnegotiable in our position against Just Cause. Delays unlawful detainer for non-rent issues allowing disputes to drag out • Requires courts to stop an eviction to allow a renter time to cure conditions “capable of cure,” permitting tenants to continue to victimize and harass neighbors well past the statutory notice period. Reduces the chances of underqualified tenants finding housing opportunities • The provisions of this bill will force landlords to raise their screening criteria standards to reduce the chance that an applicant could fall behind on rent or fail to perform to the lease terms. • The provisions of this bill will reduce the working relationship property owners and tenants engage in prior to service of formal notice |
Water conservation is always going to be an issue that landlords face. After all, between showers, laundry,leaking toilets and dripping faucets every tenant you deal with will be using water, especially during those cold winter months.
Obviously, a decrease in overall water use bodes well for a property’s long-term financial health. The key to conservation, then, is understanding what factors go into the cost and use of water and making sure your tenants do as well. Tenants always concern themselves with high bills that materialize from their utility usage. From a landlord’s standpoint, his focus should be on educating tenants so they’re able to make smart choices with their water usage. Showers distribute nearly 17 percent of the water in people’s homes. Informing your tenants about the benefits of taking shorter showers and using hot water more sparingly will save both you and your tenant grief in the long run. The vital factor in water conservation is making sure your tenants understand it and apply it — which they will do, provided they understand the ways that doing so benefit them. Housing loss makes it virtually impossible to maintain stability in other areas of life. Don’t take any chances with your housing! Document every payment and communication with your landlord to protect yourself against housing loss.
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Northfield Properties does not accept a comprehensive reusable screening report the tenant may deliver by a consumer reporting agency.
FHA get trumped! Within two hours of President Donald Trump‘s inauguration on Jan. 20, the White House announced that the 0.25 percentage point reduction was being suspended indefinitely. Psych!
To many, this might seem like a subtle change—a quarter of a percentage point?!—but the impact is not minor to the typical FHA borrower. FHA loans are one of the few options that allow borrowers to put as little as 3.5% down on a home, although they do have to purchase mortgage insurance. If this sounds like you—if your lender has told you that the fee cut was critical to your ability to qualify—there are a few steps you can take to see if there is another path to homeownership. First, see if you qualify for other loan programs that offer similar flexibility in underwriting to FHA. Two important options to explore are VA loans (available to active-duty military or veterans) and USDA loans (available in rural areas and some small towns and suburban areas). If you thought FHA was the only route to take if your primary challenge is a low down payment, think again. If you have a credit score above 680, and ideally above 700, you can likely qualify for a conforming mortgage with a low down payment option. Explore down payment assistance options and other ways to put more money down. A higher down payment could lower your rate enough to offset the higher-than-expected premium. Waiting without exploring other options could result in buying and closing several months down the road when rates are likely to be at least 25 basis points higher and home prices are likely to be higher as well. In other words, waiting could cost you even more. Find a lender who will help you explore all available options and work through the pros and cons of each. While January’s FHA insurance premium gyrations may have psyched you out, homeownership could still |
Inauguration day
It seems like interest rates have been following tweets, they are up then down followed by a stutter step. So they real question is, what is trumps real impact going to be on the Real Estate investment market? Most seem to agree on interest rates going up! On west side of the mountains of Washington the economy is looking strong. Recently I have been getting e-mails about stated income mortgages are coming back. This could be a move away from stringent mortgage underwriting to more normal lending. So is this an indicator of possible lifting of compliance rules imposed on small-sized banks. Around 10,000 local and community banks have traditionally been the source of funding for construction and land development loans. With less regulatory burden, these small banks can make more loans and will boost home building activity. But changes to financial regulations on large banks like Wells Fargo could lead us back to a massive taxpayer bailout. I wonder what trumps position on zoning laws is? Zoning and environmental laws with storm water runoff issues are a huge burden for home construction, Just think of how much cheaper housing could be with lower shorter land development processes which means shorter development times which reduces the cost of housing/building . I wonder if Fannie Mae and Freddie Mac will survive. Is trump about reducing the role of government in people’s lives? Tax code: The like-kind exchange tax deferral (also known in the industry as 1031) could easily be on the chopping block. I wonder what Trumps position on commercial real estate depreciation will be? Did trump say he used depreciation to eliminate paying any taxes. . National Association of REALTORS made it known that depreciation should be allowed as an “active loss” for those who practice real estate as their profession. The current tax code makes this distinction, and is unlikely to be on the chopping block in the tax reform discussion, but with trump I think just about anything is possible. Walter |
Application Process and Tenancy Criteria
. When the screening report is completed, if your application can only be approved with conditions, these conditions must be met within 24 hours in order to maintain first position for the property. After 24 hours we will start processing other applications. Thereafter, once you meet the conditions, your application will join processing behind any application currently being screened. 6. If your application is approved, one of our property managers will contact you in order to confirm your desired move in date and discuss lease terms. The property manager will then prepare a lease agreement for you to review and sign. 7. The lease agreement must be signed and returned, together with the first month’s rent, within 48 hours in order to retain first position for the property. If the lease and deposit are not returned within 48 hours, then we will continue to process other applications on the property. Thereafter, once you return the lease and first month’s rent, your lease will be accepted subject to any application currently being processed. 8. All move in funds (rent, deposits and/or fees) must be paid by money order or cashier’s check. Cash and Personal checks will not be accepted under any conditions. Personal checks will be accepted starting with the second rental payment. 9. All rental payments are due on or before the first business day of each month and are late if not received by the 3rd day of each month. This means they must be received by the due date. A Northfield Properties late fee is ten percent (10%) per month, it is important that your payment is received by the close of business on the due date. There are no exceptions to this policy. RENTAL CRITERIA 1. Twelve months of verifiable residence history from a third party landlord required. Rental reference must be from within the past two years to be considered recent. 2. With good credit, rental history demonstrating residency, but not by a third party or not for sufficient term, will require an additional Security Deposit equal to 70% of months rent. Pet deposits start at 250 with ½ never being refunded 3. Home ownership will be verified through the tax assessor’s office or credit report. 4. Three or Four late payments or NSF checks for rent or mortgage within a twelve month period will require an additional Security Deposit equal to one month’s rent. 5. Two late payments or NSF checks for rent or mortgage within a Twelve month period will require an additional Security Deposit equal to one half month’s rent. 6. Any unlawful detainer action or eviction within the past three years results in denial, unless perfect credit and current good rental references can be obtained, in which case one month’s additional Security Deposit will be required. 7. Rental history showing between $50.00 and $750.00 in damage will require an additional Security deposit equal to one month's rent, if the amount has been paid in full. 8. Rental history with complaints (disturbance or other) will be denied if the previous manager would not re-rent or if there are more than three complaints. 9. Added Security Deposit equal to one month’s rent is required for any instance of unauthorized persons or pets in a unit rented by the applicant. 10. First time renters, with no established credit, will require additional Security Deposit equal to one month’s rent or a co-signer. 11. First time renters, with established credit, will require additional Security Deposit equal to one half month’s rent or a co-signer. INCOME REQUIREMENTS 1. Monthly household income must be equal to or greater than three times the monthly rent. In most cases Roommates are qualified together. However, we will only allow the combining of the top three (3) separate incomes to qualify for the income requirement. 2. Monthly household income of two and one half times the rent or better, but less than three times the monthly rent, can be approved with an additional Security Deposit equal to one month’s rent or co-signer, if total debt does not exceed 66% of income. Monthly household income of less than two and one half times rent cannot be approved. 3. A current paycheck stub, showing a minimum of the last 30 days, will be required if we are unable to verify income over the phone or fax. 4. Some form of verifiable income will be required for unemployed applicants. 5. Self-employed applicants will require proof of income by tax returns and bank statements. 6. Select properties will accept household income that equals 2.5 times the amount of monthly rent. EMPLOYMENT REQUIREMENTS 1. Verifiable employment is required. 2. Added Security Deposit of one month's rent will be required when employment does not meet the stated criteria. 3. Self-employed individuals must be verified through tax returns and bank statements. 4. Prepayment of last month's rent is needed for temporary or seasonal employees. 5. Military income may require an allotment. 6. Must have been previously employed in the same industry for at least the past 6 months at current or previous employment, if not added Security Deposit of one month's rent or a co-signer will be required. CREDIT CRITERIA 1. Good credit required. 2. Outstanding bad debts being reported on credit report which total more than $100.00 but less than $1,000.00 will require an additional half month's rent Security Deposit. 3. Outstanding bad debts being reported on credit report totaling more than $1,000.00 but less than $2500.00 will require added Security Deposit equal to one month’s rent. 4. Outstanding bad debts being reported on credit report totaling more than $2,500.00 will result in denial, unless the poor accounts are more than three years old and positive credit has been established since then. In this case, an additional Security Deposit equal to one month’s rent will be required. 5. Excessive unpaid collections (6 or more) will result in denial. 6. After a discharged bankruptcy, applicant must show at least six months of positive established credit. Any negative credit after a discharged bankruptcy will result in denial. Rental history will be considered for established credit. Added Security Deposit equal to one month’s rent will be required. 7. After a discharged bankruptcy, an applicant showing at least three years of perfect established credit may be approved without additional security. Rental history will be considered for established credit. 8. Applicants with less than 6 months worth of established good credit will require an additional security deposit equal to a half months rent. CRIMINAL CRITERIA 1. Any criminal offense which has taken place within the last seven years is a consideration for denial based on the following: o If there is a criminal conviction and the applicant has been out of jail/prison less than five years they will be denied. o If the criminal offense was of a physical or violent nature against either person or property, the applicant will be denied. o If the criminal offense took place more than seven years ago, or if the person has been out of jail/prison more than five years and has perfect credit and rental history, they may be approved. (They may only be approved if this was a one time offense and was not of a physical or violent nature. Multiple offenders will be denied no matter what the credit and rental history shows.) AUTOMATIC DENIALS 1. Any collection or judgment filed by a property management company or landlord within the last three years for over $300.00 will result in denial. If longer than three years and paid, will result in one month’s added Security Deposit. 2. Rental history reflecting more than $750.00 damage will result in denial. 3. Any current 3-day notice or unlawful detainer action or eviction will result in denial. 4. More than four late payments or NSF checks for rent or mortgage within a 12 month period will result in denial. 5. If unemployed and unable to verify sufficient income to pay rent, applicant will be denied. 6. False information or a gross distortion of the truth will result in denial. 7. Any applicant with a bankruptcy not showing as discharged is denied until shown otherwise. 8. Any criminal activity involving selling or possession with intent to sell drugs will result in denial, unless it was a misdemeanor and only one case over 3 years old. 9. Any criminal activity of a physical or violent nature will result in denial 10. An employment reference, in which the employer indicates that the employment will end and/or the income level will drop below 2.5 times the rent, will result in denial. 11. Any undisclosed previous rental address will result in denial. 12. An incomplete application will result in denial 13. Lack of response from the applicant for additional information after the 2nd business day will result in denial. GOOD CREDIT Good credit means that all accounts are in good standing and paid as agreed and that total debt to income, including rent, does not exceed 66%. |
