Lately on this platform we have had so many posts on real estate investing until the last time out that we discussed extensively on time related setbacks that frustrate real estate investment property assets, where I emphasized that the success of our rent control and regulation law hinges on the successful and productive administration of investment property.
Also I did remember I suggested in the post that if and only if government could institute a body such as the DHCR and SBAU that is the Division of Housing and Community Renewal and the Small Building Assistance Unit respectively to put an end to all of these problems of both homeowners and occupiers so that we can laid to rest all of these contentious issues and of course be history or a thing of the past.
In the last post, I firmly stated and stress that the DHCR and the unit perform so many functions for both the homeowners and occupiers by helping with the preparation of forms that has to do with lease renewal, application of major capital improvement, individual apartment improvement as well as the hardship rent increase which I didn’t really expatiate on enough due to the obvious reason of not much time on my side.
However today in this post we shall extensively discuss the provision and benefits homeowners stand to gain in applying for hardship rent increase because I don’t want people to be confused with that piece of information in order not to misconstrue this provision of the law as free for all.
I would love to set it on straight by delineating explicitly what this hardship rent increase or adjustment is all about and the fact that not everyone can apply or qualify for hardship rent increase because there are rules, Regulations and requirements to be met which are subject to the approval of the government constituted body and unit.
Without wasting much of your time I crave your indulgence to dive into the topic right away. Hardship rent increase is a provision of the law on regulated property in the United State that allows homeowners going through or experiencing severe and obvious economic hardship that hinder the successful and productive running of their investment property most especially if it fails in the administration and management of the property that reflect in the financial statement as well as complaints in poor rental service.
Homeowners in this precarious situation can take advantage of this opportunity by applying for hardship rent increase if they can meet the restrictions of the provision, regulation and can convince the government constituted body that they deserve to be awarded hardship rent increase.
Affected people or homeowners don’t just file for hardship rent adjustment because they are experiencing some sort of economic hardship, this involves some complex and complicated processes and rules and regulation to comply and adhere to before they are granted hardship rent increase.
If you must applying for this adjustment, you must have good reasons for the application as well as be able to genuinely show that you are going through hardship and whether or not the your application for hardship adjustment will be granted completely depends on the imprimatur or order of the government constituted body.
In addition there must be prove of ownership of the property for at least three to five years to enjoy this benefit, you must have at least five percent equity in the property, cost of capital improvement and the repayment of principal of the mortgage loan in financing the purchase of the property. The building or the property you filing for must also be a registered investment property that is rent regulated in accordance with the provision of the law.
Besides, as the homeowner you must meet all the requirements and satisfy all the conditions and sails through all the restrictions before you can file for or be granted hardship rent adjustment and there must be prove of poor rental and maintenance services as earlier mentioned which can be blamed on or traced to insufficient income and unproductive property management.
This regulation may also require the resolution to legal objections to real estate tax, lien on property, sewer and water charges for the year in question and also the unit will ascertain if claimed mortgage interest is reasonable to the operation and maintenance of the property.
Let me reiterate that prior to hardship rent increase is granted, the government constituted body or unit must ensure the application meets all necessary requirements. Some of these requirements and grounds for such application to be granted are when the future of the property looks so bleak and pretty black.
Secondly, If the additional rent hardship adjustment is required to bring up the cashflow, enable service maintenance and debt management as well as help keep the financial record or statement in black to the point that the homeowner or the applicant can be able to efficiently and productively manage his or her investment property and of course ensure and maintain the same net income when compare with the net income of the base year.
After thorough consideration of the application, the government body with constituted power to administer housing will take a decision by issueing an order to either grant or dismiss the application.
If the applicant does not present enough facts to work with or if there is incomplete of documents or the accuracy of the information provided by the applicant is questionable or perhaps applicant could not produce his or her federal income tax, certified financial statement etc that are needed to substantiate the need for hardship rent increase, then the application will not be granted and shall be dismissed.
However if all important and necessary requirements are satisfied the application for the hardship adjustment will be granted by issueing an order which is effective on the day of the issuance of order.
If you like what you have read or gain anything from this post, you can like and follow us to get more posts on real life issues and concerns on real estate investing and investment property management send directly to your email.
Join the community on our Facebook, Google + and Twitter page, like and follow Ordiez Resources Inc.
Ordiez Resources, Where The Future Of The Real Estate Industry Begins, This Is How Tomorrow Moves In Real Estate Investing And Investment Property Management, Serving And Guiding Humanity. http://www.ordiezresources.com
Remember that opportunity to serve and guide is our greatest privilege and making our clients happy and satisfied always is our greatest pleasure.
Hence if you Think Real Estate , Think Ordiez Resources Inc.
For Ordiez Resources Inc