New HUD Procedures - Posted by Frank Notaro

Real Estate Investing
1

Posted by ken in sc on July 29, 2003 at 07:22:17:

Your letter should state “increases in taxes and insurance of (fill in the blank, mine is 12%) for the past year will require a slight increase in rent to account for the higher expenses”.

Save this letter as unfortunantly it will be applicable year after year. Hopefuly the percentage will go down.

Ken

2

New HUD Procedures - Posted by Frank Notaro

Posted by Frank Notaro on July 28, 2003 at 21:40:04:

I got this letter from the Housing Authority today.

THE SECTION 8 PROGRAM NOW REQUIRES A WRITTEN REQUEST FROM YOU, THE LANDLORD, IF A RENT INCREASE IS REQUESTED.

Pursuint to HUD Regulations, all increases must be determined to be "rent reasonable’ unless your unit is governed by the Township of Woodbridge Rent Leveling Board. Rent Reasonableness is determined by our agency and based on rents charged for “unassisted” units of similar age, type and amenities within the township.

It is necessary that you provide written notice to your tenant at least 60 days prior to the anniversary of your lease expiration date. A copy of this written request must be forwarded to our agency within the same time eriod prescribed above. THERE ARE NO AUTOMATIC YEARLY INCREASES AND INCREASES SHALL NOT BE APPROVED UNLESS THEY ARE REQUESTED AS NOTED HERIN.

Since I only have owned the place 4 months and have no prior records, I need a way to justify a 5 percent increase in rent. I am in the middle of remodeling the front enterence and stairwell, but I’ve done all the work myself. I haven’t spent all that much money on it yet. The only thing I can think to use to justify a rent increase is the fact that property values have gone through the roof in central NJ.

Does anyone know anywhere I can get documentation to back up my claim?
Does anyone have any other way to justifu a rent increase?

Any help would be appreciated.
Frank