by Kenneth Powell | Oct 16, 2024 | Uncategorized
On April 25, 2024, Governor Wes Moore signed into law House Bill 693, known as the Renters’ Rights Stabilization Act of 2024, to protect Maryland renters who are experiencing housing instability. While the Act aims to strengthen protections for Maryland tenants, it also comes with significant consequences for landlords and developers managing residential and commercial properties. Opponents have sparked criticism and concern that the Act will create an unfavorable market for landlords and developers, thereby hindering efforts to increase the supply of affordable housing for the intended renters.
The Act will undoubtedly have a lasting impact on both the residential and commercial rental industries. The key provisions and areas affected by the Act are as follows:
- Tenant’s Right of First Refusal (Residential)
- Surcharge for Landlord-Tenant Cases (Residential and Commercial)
- Security Deposits (Residential)
- Warrants of Restitution (Residential & Commercial)
- Office of Tenant and Landlord Affairs & Tenants’ Bill of Rights (Residential)
Tenant’s Right of First Refusal (Residential)
The Renters’ Rights and Stabilization Act grants tenants a right of first refusal for residential rental properties that contain three or fewer individual dwelling units. This means that owners of such property are now required to give tenants the opportunity to purchase the rental property before selling to outside parties.
The Act does not mandate a right of first refusal in all circumstances. Excluded are situations involving residential rental properties with 4 or more individual dwelling units, transfers of title to a business entity wholly owned by the owner, transfers by a fiduciary, transfers of title in lieu of foreclosure of a mortgage/deed of trust, and family transfers, among other cases. Nevertheless, the requirement will be detrimental to the value and marketability of residential property, as owners will only be able to negotiate with other buyers after each tenant declines to exercise his/her right.
Surcharge for Landlord-Tenant Cases (Residential and Commercial)
The Renters’ Rights and Stabilization Act significantly increases the maximum surcharge for certain landlord-tenant cases filed in District Court, as follows:
- The District Court will raise the surcharge from $8 to $43 per case for summary ejectment cases, which include failure to pay rent actions.
- For civil, non-summary ejectment cases, the District Court surcharge will rise from $18 to $28 per case.
- Summary ejectment, tenant holding over, breach of lease, and warrant of restitution cases filed in Baltimore City will incur an extra $10 surcharge, in addition to the foregoing amounts.
The Act also says that these surcharges can’t be charged as a fee or cost to residential tenants. In most cases, a landlord can only take these non-Baltimore City-specific surcharges out of a tenant’s security deposit if (1) a court rules in favor of the landlord and orders the tenant to vacate the property; (2) the tenant’s lease agreement allows for the surcharge to be charged; and (3) the deduction does not go over the amount of the initial security deposit.
The increase in costs associated with court filings will, among other things, greatly suppress the ability of commercial and residential landlords and property owners to effectively manage their properties, deter small landlords from entering the rental industry, and trigger an increase in rental amounts causing more harm to tenants.
Security Deposits (Residential)
The Renters’ Rights and Stabilization Act limits the maximum security deposit a residential landlord may impose to 1 month’s rent, except under specific circumstances. This 1-month time period is a change from previous law, which permitted a landlord to impose a security deposit of up to 2 months’ rent.
Warrants of Restitution (Residential & Commercial)
The Renters’ Rights and Stabilization Act increases the time period a landlord (residential or commercial) is required to wait between receiving a judgment of possession in its favor and executing a warrant of restitution against a tenant from 4 to 7 days.
The Act also now requires (rather than permits) administrative judges to stay the execution of warrants of restitution for residential properties in cases of extreme weather, including winter storms, hurricanes, and excessive cold and heat warnings.
Although seemingly minor, these changes will still hinder the ability of landlords and property owners to address problematic tenancies efficiently, carry out essential property maintenance and enhancements, and collect rental income and reimbursements.
Office of Tenant and Landlord Affairs & Tenants’ Bill of Rights (Residential)
The Renters’ Rights and Stabilization Act creates an Office of Tenant and Landlord Affairs within the Maryland Department of Housing and Community Development, which will develop a Maryland Tenants’ Bill of Rights. All residential leases must now include the most current copy of the Bill of Rights.
For more information on the Act and how it will impact your property, please contact Kenneth Powell at 240.237.7855.
Click here for the full text of the Renters’ Rights and Stabilization Act of 2024.
by Kenneth Powell | Oct 12, 2024 | Uncategorized
If you’re a real estate investor looking to expand your portfolio, Calvert County, MD, should be at the top of your list. I’m Kenneth Powell, a seasoned realtor based in Lusby, MD, specializing in helping investors—both veterans and newcomers—find properties that offer appreciation and cash flow. Whether you’re looking for a steady rental income or long-term property appreciation, I am here to help you analyze potential properties, negotiate favorable terms, and even assist in tenant placement.
Why Invest in Calvert County?
Rising Home Values and Strong Rental Demand Calvert County’s housing market is thriving, with homes consistently increasing in value. Coupled with a severe shortage of rental properties, this is a prime market for investors seeking strong returns. The demand for quality rental properties is high, and homes are renting quickly. If you are looking for B+ tenants in a market with increasing home values, Calvert County offers a rare opportunity.
Rental Income Potential
Let’s look at some current rental listings to give you an idea of the income potential for a few property types in Calvert County:
- 3 Bed, 1 Bath Homes:
- Average rental rate: $1,400 to $1,900 per month
- Square footage: Ranges from 800 to 1,456 square feet
- Locations: Available in cities like Dunkirk and Lusby
- 3 Bed, 2 Bath Homes:
- Average rental rate: $1,800 to $2,475 per month
- Square footage: Ranges from 1,000 to 1,456 square feet
- Locations: Lusby, North Beach, and Chesapeake Beach
- Larger Homes (3+ Bedrooms):
- Rental rates go up to $3,950 per month for larger homes (up to 2,720 sq. ft.).
- This property is perfect for drawing in tenants seeking additional space and luxurious living.
Why Work with Me?
I understand that finding the right investment property can be challenging, but that’s where I come in. I help investors like you by:
- Analyzing the Property: I provide detailed cash flow projections and ROI analyses, ensuring that you make informed investment decisions.
- Negotiating Favorable Terms: I leverage my expertise to negotiate the best price and terms for your purchase.
- Tenant Placement: After securing the property, I can assist you in listing it for rent and finding qualified, long-term tenants.
- For out-of-state investors, my team handles all phases of the transaction. We focus on minimizing acquisition cost, repair cost, and adding value and will always put your interest first. Net Profit. Connecting the dots and communication are the key pillars that consistently delivered outstanding results.
Invest Now in Calvert County
With rising home values and a shortage of rental properties, now is the perfect time to invest in Calvert County. Whether you’re a seasoned investor or just starting, I’ll help you navigate the market and secure properties that maximize your returns.
For more information on available investment properties, contact me, Kenneth Powell, an experienced and trusted real estate expert in Lusby, MD. Let’s find your next cash-flowing investment today!
by Kenneth Powell | Oct 8, 2024 | Uncategorized
As of October 1, 2024, a new law, House Bill 54 (HB 54), has come into effect that impacts how property taxes can be managed, particularly for homeowners and heirs inheriting property in Maryland. This law introduces important provisions for installment payment plans for property taxes and offers relief for heirs or legatees inheriting homes. Here’s what you need to know:
What is HB 54?
HB 54 requires the Maryland State Tax Sale Ombudsman to create an installment payment program for homeowners to manage their property taxes. The new program allows homeowners to pay their property taxes in advance, make current payments, or catch up on taxes in arrears. This flexibility can be a financial lifeline for many, especially those struggling to keep up with payments.
Furthermore, HB 54 gives counties and municipalities the option to create their own installment payment programs specifically for taxes in arrears. This means local governments can now offer homeowners a way to pay overdue taxes over time rather than all at once, which could prevent homes from going to tax sale.
Key Benefits for Heirs and Legatees
One of the most important changes under HB 54 is the exemption it provides for property transfers from an estate to heirs or legatees. Before this law, all property taxes had to be paid in full before a home could be transferred from a deceased person’s estate. Now, heirs and legatees can enter into a payment plan, allowing them to assume the property without having to pay all outstanding taxes upfront. This can ease the financial burden for families dealing with inheritance and estate settlements.
How Does the Installment Payment Program Work?
The installment payment program offers flexibility for homeowners. Whether you want to make advance payments or catch up on taxes in arrears, this program provides an option to do so without fear of immediate penalties or tax sales. However, homeowners with a mortgage or deed of trust that includes escrow payments are not eligible for the advance payment option.
If a homeowner enters an installment plan and follows the payment schedule, local tax collectors are prohibited from taking further action, such as initiating a tax sale. This program can serve as a financial safety net for those at risk of losing their homes due to unpaid taxes.
Local Government Flexibility
In addition to the statewide installment payment program, local governments can now establish their own programs for taxes in arrears. These programs will give even more flexibility to homeowners in different counties or municipalities, making it easier for them to avoid tax sales and stay in their homes.
Why This Matters
For homeowners facing financial difficulties, this law provides relief by allowing more flexible options for paying property taxes. For heirs and legatees, HB 54 reduces the financial stress of inheriting property, especially when there are outstanding property taxes. This law is designed to help families stay in their homes and avoid the harsh consequences of tax sales.
If you have any questions or need assistance navigating the new changes under HB 54, feel free to reach out. My name is Kenneth Powell, and I specialize in helping homeowners, heirs, and investors manage real estate transactions smoothly and efficiently. You can contact me at (240) 237-7855 or via email at [email protected] for more information.
by Kenneth Powell | Sep 22, 2024 | Home Buyers Guide
The world of real estate has always had its ebb and flow, but the pulse of today’s mortgage market offers a shimmer of hope for many homebuyers. As we step into late September, the news of falling mortgage rates has captured the attention of seasoned investors and first-time homebuyers alike. According to the latest Bankrate lender survey, 30-year fixed mortgage rates have dropped to an average of 6.20%. To put it in perspective, these rates haven’t been this low since 2022.
A Glimpse into the Recent Decline
It’s no secret that inflation plays a major role in the fluctuation of mortgage rates. The brighter inflation news over the summer triggered the initial fall in rates, setting the stage for what we’re seeing now. Market volatility temporarily boosted rates in August, but it quickly led to an even more significant decline. This week, the Federal Reserve’s decision to cut its benchmark interest rate by half a percentage point propelled mortgage rates to a 24-month low.
While some buyers are eagerly jumping into the market, others remain cautious, hoping for rates to drop even further. In fact, a June Bankrate survey revealed that nearly half (47%) of homeowners would only consider purchasing a home if rates dipped below 5%. This shows that despite the current favorable rates, many are still holding out for what they believe could be a once-in-a-lifetime deal.
How This Affects Homebuyers
To better understand how these lower rates impact prospective buyers, let’s compare top offers on Bankrate to the national average. As of September 15th, the top offers listed on Bankrate came in at 5.53%, which is 0.78% below the national average of 6.31%. If you’re looking at a $340,000 loan, this seemingly small difference could result in a whopping $2,045 in annual savings on your mortgage. Over the lifespan of a 30-year loan, these savings compound, making a significant difference in your overall financial picture.
Refinancing in the Current Market
If you already own a home, you might be wondering if now is a suitable time to refinance. The short answer is: absolutely. With the average 30-year fixed refinance rate at 6.12%, homeowners can benefit from a decrease of 23 basis points compared to last week. And if you’re considering a 15-year refinance, rates are currently averaging 5.40%, which is also on the decline. This means that homeowners with older mortgages locked in at higher rates may want to seriously consider refinancing to take advantage of these lower numbers.
A Historical Perspective on Rates
While today’s rates offer hope, it’s always important to keep historical context in mind. Just a year ago, mortgage rates were hovering above 7%, and even five years ago, they were closer to 4.5%. While the journey of interest rates is often unpredictable, the current trends suggest a gradual easing over the coming months. The question remains: how low can they go?
What This Means for You
Whether you’re considering buying your first home, refinancing, or simply monitoring market trends, it’s evident that the current landscape presents numerous opportunities. Now more than ever, it’s essential to compare mortgage offers and shop around to find the best rates. A small percentage difference can translate into thousands of dollars saved over the life of your loan.
Bankrate, for example, can connect you with various types of mortgage offers that often fall well below the national average. By examining the lender’s interest rate, APR (annual percentage rate), and estimated monthly payment, you can make an informed decision about which loan best suits your needs.
The real estate market, much like the mortgage rates, is dynamic. But with the right insights and strategy, today’s buyers and homeowners can position themselves to make the most of the opportunities presented by these falling rates.
If you’re ready to explore your options or need expert guidance, Kenneth Powell and the Realty One Group Performance team are here to help you navigate the current mortgage landscape with confidence. Contact us today at 240-237-7855 to start your journey toward homeownership or refinancing with ease.
by Kenneth Powell | Sep 3, 2024 | Uncategorized
As a homeowner, ensuring your HVAC system is running efficiently is crucial to maintaining a comfortable home environment. Regular maintenance, including cleaning or replacing air filters and servicing the HVAC system annually, not only extends the life of your equipment but also ensures optimal performance and energy efficiency. Below, we’ll explore why HVAC maintenance is essential and highlight some trusted local companies in Calvert, St. Mary’s, and Charles County that can help you keep your system in top shape.
Why Regular HVAC Maintenance is Essential
- Improved Air Quality: Over time, dust, pollen, and other airborne particles can accumulate in your HVAC system, reducing the air quality in your home. A dirty air filter can lead to a buildup of these pollutants, which can trigger allergies or respiratory issues. Regularly replacing or cleaning your air filter can significantly improve the air quality in your home.
- Enhanced Energy Efficiency: A well-maintained HVAC system runs more efficiently, consuming less energy and saving you money on your utility bills. Unserviced or clogged air filters force the system to work harder to maintain your desired temperature, resulting in higher energy consumption.
- Extended Equipment Lifespan: Regular maintenance can extend the lifespan of your HVAC system by preventing breakdowns and reducing wear and tear. Annual servicing allows technicians to identify and address potential issues before they become major problems, saving you from costly repairs or premature replacement.
- Consistent Comfort: An efficient HVAC system ensures your home remains comfortable year-round. Whether it’s the sweltering heat of summer or the chill of winter, regular maintenance helps your system perform at its best, providing consistent temperature control throughout your home.
- Safety First: Regular HVAC maintenance also addresses safety concerns, such as checking for carbon monoxide leaks or ensuring electrical components are functioning properly. This can protect your family from potential hazards and provide peace of mind.
Trusted HVAC Companies in Calvert, St. Mary’s, and Charles County
When it comes to maintaining your HVAC system, choosing a reliable service provider is key. Here are some reputable HVAC companies in Calvert, St. Mary’s, and Charles County:
- Calvert County
- Burch Oil: With a long history of serving Calvert County, Burch Oil offers comprehensive HVAC services, including maintenance, repair, and installation. Visit their website at burchoil.com.
- Southern Maryland Heating & Air: Known for their expertise and customer service, Southern Maryland Heating & Air provides a wide range of HVAC services. Learn more at somdhvac.com.
- St. Mary’s County
- Shore Services: Shore Services has a reputation for reliability and quality, offering maintenance and repair services to keep your HVAC system running smoothly. Visit shorehvac.com to learn about their services.
- Dale Services: Specializing in HVAC maintenance and repair, Dale Services is a trusted name in St. Mary’s County. Visit their website at daleservice.com.
- Charles County
- Comfort Solutions: Comfort Solutions is a leading HVAC service provider in Charles County, offering everything from routine maintenance to emergency repairs. Learn more at comfortsolutionsinc.com.
- Rocky Run Heating & Air: With a focus on customer satisfaction, Rocky Run Heating & Air provides top-notch HVAC services throughout Charles County. Visit their site at rockyrunhvac.com.
Bottom-line
Regular HVAC maintenance is an investment in your home’s comfort, efficiency, and safety. By keeping your air filters clean and scheduling annual servicing, you can enjoy a healthier home environment, lower energy bills, and peace of mind. Whether you’re in Calvert, St. Mary’s, or Charles County, these trusted local companies can help you maintain your HVAC system and ensure it’s ready to handle whatever the seasons throw your way.
For more tips on maintaining your home and keeping it market-ready, explore our other blog posts or contact us directly. We’re here to help you make wise decisions about your home’s care and maintenance.
