RENT REASONABLENESS NOTICE
February 23, 2005
RENT REASONABLENESS
PROCEDURE
HAKC determines rent reasonableness based on a database of market
comparable rents for similar units throughout the Kansas City metro
area. The database will be updated periodically as new information is added and old
information is deleted.
The HAKC uses a Data
Gathering Form to obtain rent reasonableness information at
initial and annual inspection. This form allows HAKC to consider
housing factors that relate to modest housing when determining
rent.
- Location
- Number of Bedrooms
- Housing Type
- Utilities (furnished or unfurnished)
- Size of unit and rooms
- Condition of unit and yard
- Appliances (Stove and/or Refrigerator)
- Parking (Off Street/Garage)
- Washer & Dryer
- Storms (Full or Partial)
- Air Conditioning (Window or Central)
- Additional bath
- Fire Extinguisher
The Data Gathering Form is used also by HAKC Inspectors to obtain
rental information on vacant units. HAKC Inspectors complete these
forms during the regular conduct of inspections when vacancy signs are
posted. These forms along with information obtained from other
sources are used to update rent reasonableness data.
When a Request for Tenancy Approval (RFTA) is submitted to
HAKC, the information contained on the HAKC Rent
Reasonableness-Data Gathering Form will be compared to units in
the rent reasonableness database. Units that are similar to the
subject unit based on the amenity information will be selected for
comparability and rent determination. The search results are reviewed
and an average rent is determined. This amount is compared to the
requested rent amount.
If HAKC database does not include at least three (3) comparable units
for a given bedroom size and unit type in a given area, HAKC will
adjust the rent of a comparable unit that is one bedroom size smaller
or larger by 15%. If the subject unit is one (1) bedroom size larger
than the comparables, the rent of the smaller bedroom unit will be
multiplied by a factor of 1.15. If the subject unit is one (1)
bedroom size smaller than the comparables, the rent of the larger
bedroom unit will be multiplied by a factor of .85.
Comparables in the rent reasonableness database are assumed to be in
average condition. HAKC may adjust units that are in good and very
good condition by applying factors of 1.02 and 1.04 respectively to
the comparable rent. Unit condition is determined by the HAKC
inspector.
If the requested rent amount is supported, the RFTA will be forwarded
to the appropriate staff for further processing. If the requested
rent amount is not supported, the owner, landlord or management
company will be contacted to discuss and negotiate the rent amount.
If agreement is made, the RFTA with the requested rent amount will be
forwarded for further processing. If an agreement on the rent is not
achieved, the rent and RFTA will be denied and the client will be
instructed to locate alternative housing.
The following documents are provided to assist you with
additional questions that you may have:
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