Trends in Residential Leasing

Real Estate Law

Recently, the US Federal Reserve has published a variety of data concerning the affordability of rental housing in the United States based on the collection of consumer data from around the country. New facts are rapidly become evident about the state of the housing market in the USA form this data. It is becoming apparent that there is a shortage of approximately 250,000 rental for persons that fit into the extremely low income households market. Also, the number of rental units classified as affordable for people on very low incomes when compared with the demand for properties of this type fell from 40% to under 35% in the year 2010. It is also clear from the data collected by the US Federal Reserve that people in this income bracket spend approximately 75% of their income on rent. This is leading to a number of social trends such as the increased demand for affordable housing.

This data is confirmed by the analysis produced by a number of the Reserve Banks for each of the states of the USA. Indeed, banks such as the Reserve Bank of Philadelphia have produced data which confirms these findings across the third federal district enclosing the areas of the east part of Pennsylvania, New Jersey, and Delaware. This analysis leads to the conclusion that there will have to be a number of community development schemes in these areas and in other parts of the United States in order that there is a sufficient supply of housing in these areas in order to meet the growing demand and reduce the upward price pressure on people in these areas.

This means that a number of people will need to enter in lease agreements which will have to be negotiated between developers and other stake holders in the property development industry. The essential components of a valid lease usually include a term relating to commencement, the amount of rent to be paid and the manner of payment, the amount of any bond or security deposit to be paid, the conditions on which the person renting the property takes possession of the property, the relevant rights of the tenant to the quiet possession of the property and the termination of the lease on agreed terms, although this list is by now means exhaustive and the necessary terms will vary from state to state in the USA. If entering into any kind of leasing arrangement for a property, it is essential to have a documented lease for the purposes of securing your rights and entitlements in relation to the payment of rent and the property in general.