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Monday, September 28, 2009

Landlords Who do Not Screen are Shooting Themselves in the Foot by Bill Gray

Landlords Who do Not Screen are Shooting Themselves in the Foot
Posted by Bill Gray on September 23, 2009
Of the 20 to 30 emails I receive per day from landlords with tenants who owe them money, 5 or 6 are from landlords who did not screen their tenants before they rented to them and are now upset that the tenant burned them. I shake my head when I read these requests for help.
For whatever reason, the landlord rented to someone who “looked okay” and then got upset when the tenant burned them. Would these landlords buy a used car sight unseen? Or show up at a dog shelter and say, “give me any dog, I don’t need to see it or know anything about it.”? Of course they wouldn’t. As absurd as this sounds, it is basically how they run their rental business.
As I scratch my head I always wonder why. Do they just not know how to screen? If this is the case, I am happy to help educate them on good business practices that will help them reduce the possibility of a tenant burning them, or help collect any debt that could not be foreseen. Most of my articles emphasize the good business practices landlords should use to minimize tenant debt.
The cynic in me says that a certain percentage of landlords who run their business sloppily, just don’t care who they rent to. The only advice I can offer these types of landlords is, “good luck”. That pile of debt you are writing me about is the by-product of the way you run your business. There is nothing I can do for you other than to ask you to reconsider how you go about being a landlord. To continue running your business as if it were a hobby will continue to cost you money and possibly get you sued if you violate the law.
Maybe they don’t want to spend the very small amount of money it costs to screen a tenant. Seriously? You don’t want to spend $20 to screen, but you are writing me for advice about the $6000 your tenant owes you? Think about how ridicules this scenario sounds.
As I have published in other articles, I do not consider myself a landlord or tenant advocate. I encourage landlords to run their businesses legally and in a way that minimizes their risk. I also expect tenants to pay their rent and take care of the property they are renting.
Please email me your questions and will try to help you.
Bill Gray Bill@thelandlorddoctor.com
www.thelandlorddoctor.com

Tenant Displaced From Unit Fights For Compensation

AC Outage Could Bring Rent Strike
by Robert Griswold
Tenant displaced from unit fights for compensation
by Robert Griswold
Q: Our son is renting a condo in an area where it gets very hot in the summer. Two weeks ago, he came home from work to find that his air conditioning unit was not working. It was after hours on Friday evening and he tried to reach the property management agency to have them check it out, but no one was in so he left a voicemail message on their answering machine. They have no emergency number and the office is open only Monday through Friday from 9 a.m. to 5 p.m. The temperature reached nearly 110 degrees that Saturday and Sunday.
My son was inconvenienced — he couldn’t stay in the rental unit because the heat was unbearable. We watched his dogs for him and he spent the weekend at a friend’s house and went to work from his friend’s house. He was able to reach the property management office on Monday and they came right out to fix the air conditioning unit that same day.
He called them on Tuesday to talk with them about his inconvenience and the disruption to his life. He is trying to get compensated for having to spend time away from the place he was renting, having someone else take care of his dogs, and the physical and emotional strain of not being able to live in a home that he is paying to rent. The property management company said not having air conditioning did not constitute an emergency, not even when it is 110 degrees. They claim that they actually do have an “on-call” person that regularly checks the answering machine throughout the weekend. But because their air conditioning company charges extra on weekends the earliest his air conditioning unit could have been fixed was on Monday, and that is what they scheduled.
He feels very strongly that he is entitled to significant compensation because his air conditioning unit ran for six hours straight to get the condo down from 96 degrees to 82. What are his legal rights? Can he withhold his rent for next month? Should he hire a lawyer? Maybe he should simply move out?
A: Clearly you and your son are very passionate about this issue and there is no doubt that he was inconvenienced. With temperatures over 100 degrees it can be very uncomfortable without the benefits of air conditioning. However, air conditioning is not automatically a required element of habitability in all areas, including some areas where it can get very hot at certain times of the year. So I would suggest he contact a local landlord-tenant attorney to see if there are some local laws that the attorney feels are applicable.
But let me offer a perspective as a property manager for the last 30 years, including many years in areas that can be very hot especially in the summer. I think your expectations may simply be too high.
The fact is that air conditioning units can and do go out on a Friday evening. Some landlords and property managers think that is when a disproportionate number of these types of problems seem to occur. Most repair personnel work Monday through Friday, and the few that may be willing to work on weekends or evenings will charge 1.5 to two times the usual labor rates, which are already quite high.
Thus, it isn’t reasonable to expect that an air conditioning unit that just happens to go out on a Friday afternoon could not be repaired till Monday. I understand the high temperatures and the impact on his personal living arrangements, but I think the response to this complaint by the landlord was very reasonable.
These things happen and unless you can show that the landlord was negligent and his failure to properly perform maintenance caused the air conditioning unit to break, then you have to understand that it takes time to respond to these situations.
In cases where such an outage constitutes an emergency — such as a threat to health or safety — the landlord may be required to make immediate repairs or to reimburse the tenant for emergency repairs. Again, check with a legal expert on applicable laws.
It may be appropriate for his landlord to offer him a rent credit for his inconvenience for the two or three days that he was without air conditioning. But your ideas of withholding next month’s rent or moving out seem to be overreactions.
We all face these types of inconveniences in daily life. Who hasn’t had a delayed airplane flight that led to missing a connection and completely disrupting one’s plans? But does that mean the passenger is entitled to a full refund? I know with my health insurance plan it can take days to get in to see someone and in the meantime I am in pain and have to limit my activities. But I certainly can’t refuse to pay my next month’s premium just because they couldn’t see me immediately. I can cancel my health insurance policy or vow to never fly on that same airline in the future, but moving out over this incident also seems to be adding to your son’s inconvenience.
I suggest your son sends a polite letter to the property management firm outlining the inconvenience and ask for a rent credit for the two days that he was without air conditioning. This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.” E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.Copyright 2009 Inman News
See Robert Griswold’s feature Landlord Too Lax on Noise Enforcement.

Friday, September 18, 2009

New Law Requires Pool, Spa Upgrade by Phillip Miller

New Law Requires Pool, Spa Upgrade
Avoid Hefty Fine, Pool or Spa Closureby Phillip Miller
By now most of you are aware that all public swimming pools must be compliant with the Virginia Graeme Baker Pool & Spa Safety Act. The Act, effective as of December, 2008, requires that all suction outlets be equipped with ANSI A112.19.8-2007-approved VGB covers.
If your pool is not designed with split main drains and equalizers (with drains separated at least 36 inches apart), it must have unblockable drains or have a secondary safety device, such as a safety vacuum release system (SVRS).
Many pools will not comply with the new legislation by merely changing the main drain covers, because the sump below the drain covers must meet the manufacturer’s written specifications.
In some cases, this will involve construction and design of a new sump.
It is important to have your drains checked and changed to insure your pool or spa is compliant. The fines are hefty, and are being enforced. Don’t risk your tenants being injured or your spa or pool being closed down.
Phillip Miller is the owner of Design Plastering Swimming Pool Renovations, which services most of southern California, and offers Padi Certified Scuba/Underwater Drain Replacement compliant with the Virginia Graeme Baker for most Pools and Spas. This eliminates the need to drain your pool or spa and in most cases the new drains can be replaced in minutes, saving you time and money. Call: (661) 295-0250 or (310) 287-0497 for a free phone consultation.

Thursday, September 10, 2009

Wait Before You Hand Over Keys to a New Tenant by Bill Gray

Wait Before You Hand Over Keys to New Tenant
by Bill Gray

Often after a tenant signs the lease, the landlord immediately hands over the keys. At this point, many landlords miss a critical opportunity to gain profit and minimize the risk that the tenant will eventually leave owing money.
In 30-40% of the tenant debt files I review, either the move-in inspection was done poorly, or not done at all. This makes it difficult to accurately document any damages the tenant may cause while he or she lives in your rental. In turn, this makes recovering the repair costs all the more difficult.
Often a landlord will simply hand the tenant a move-in checklist and say, “Let me know if you find anything wrong.” After the lease is signed, the landlord and all tenants who signed the lease must inspect the rental unit together.
With everyone present, it is very important to meticulously inspect and document the entire unit inside and out. Perform the inspection with your new tenant by your side. Do not just let everyone wander around the rental doing their own inspection. Some landlords go as far as using a urine stick to show there are no pet urine stains in the carpet. I encourage you to check for pet urine before move-in, and I highly recommend it upon move-out.
Make sure your move-in/move-out inspection sheet has room to document the condition of every area of your rental. It also must have spaces where you and your tenant sign the checklist both during move-in and move-out.
Take pictures of the general condition of the rental, especially of any area that may be disputed when the tenant moves out. Digital cameras make storing these photos very easy.
By inspecting the rental together and both signing the inspection sheet, you are sending a very clear message to your tenant without speaking the words: “I expect you to take care of my rental unit; if you don’t, you will be held accountable.”
Before you hand over the keys, perform a detailed move-in inspection with your tenant. You will increase your profit by minimizing the risk of debt when the tenant moves out.

Bill Gray is a tenant debt collection specialist. He offers discounts to AAOA members. For help, see Tenant Debt, or email your questions to Bill@thelandlorddoctor.com.

Wednesday, September 9, 2009

Landlord Quick Tip #20 Provided by AAOA

Landlord Quick Tip
Tip #20: Getting it Rented… Today!

First impressions don’t just count, they can cost you… big time!

Even if you are not in an area experiencing record high vacancies, tenants hear the news on the rental climate, and they are feeling empowered. The longer your unit is on the market, the more you’ll scare away prospects.

Do what it takes to make the place look top-notch BEFORE you run your ad:

Soak the dry spots in the lawn
Replace or clean the kickplate on the front door
Tame the shrubs
Clean the windows
Debug the outdoor lighting fixtures
Replace faded ‘for rent’ signs
Do something cute around the mailbox
Clean up the entry

Your property doesn’t have to look new to be appealing — just tidy. Top home stagers know it pays to engage the senses — smell as well as sight. Beautiful, fragrant flowers around the entrance go a long way. So does the aroma of just-baked cookies wafting through an open window. If all else fails, offer your prospects some fresh fruit to sample as they tour. They’ll remember your property as peachy!

How to Save 5% on Heating Bills in Less Than One Minute by David Lowe

How to Save 5% on Heating Bills in Less Than One Minute
Simply turning your thermostat down by 1 degree can save as much as 5% on your heating costs.
In the summer, increasing the temperature by 1 degree saves 5-8%.
Lower your water temperature to 120 degrees and see more savings.

Install low-flow showerheads to save the cost of water and energy.

Insulation around gaps can save as much as 20% in energy costs.

Installing a programmable thermostat, especially in rental properties, keeps bills from spiking, and keeps utilities low.

These tips provided by David, Lowe, with ControlTemp Thermostats, providing tamper-proof programmable thermostats. Check out ControlTempThermostats.com for more information.

See our Green Forum for more energy savings tips.