Landlord Quick Tip
Posted: 19 Dec 2010 02:46 PM PST
Tip #86: Meet the Neighbors
One of the best ways to retain good tenants is to allow them to develop a sense of community within the rental property.
Meet The Neighbors is an “intranet” provider that allows tenants in apartment communities to stay in touch with one another.
Designed by the creator of the Lunch Club in NYC, this free service offers a secure homepage for each community or apartment complex, and allows tenants the opportunity to meet one another, connect on common interests, and feel like they are a part of a neighborhood.
The format offers a notice board to alert tenants of upcoming events or rule reminders.
Participation is voluntary. Landlords can register the building and offer the link to new tenants, or put an interested tenant in charge.
Go here to see a demo: http://imsource.com/betas/mtndemo/demo1.html.
Sunday, December 26, 2010
Tuesday, May 18, 2010
Landlord Qick Tip #56 Join the Circle
Landlord Quick Tip
Posted: 17 May 2010 07:50 AM PDT
Tip 56: Join the Circle
Imagine having a cup of coffee every morning with a nationwide expert on marketing residential rentals, or having lunch twice a week with a professional who can show you how to determine the optimum amount of rent.
You can meet these industry powerhouses from you home or office computer by joining the networking group Multifamily Insiders free of charge, as you drink your morning coffee.
Multifamily Insiders is the interactive social hub for the apartment industry, providing a place for landlords, multifamily professionals and investors to network, coordinate more effectively, share ideas, experiences, and knowledge with each other, all for free!
The site has the largest collection of multifamily-specific blogs and discussion groups, as well as document sharing, job listings, and other networking opportunities. Whether you self-manage, or are purely an investor of apartment properties, Multifamily Insiders is a valuable resource in your business.
As an AAOA member your free Multifamily Insiders membership will provide you with instant access to the advice and comments of multifamily professionals from across the country.
Supercharge your property management knowledge by taking advantage of your free Multifamily Insiders membership today.
Click here to register your free account: Multifamily Insiders Registration Page
Posted: 17 May 2010 07:50 AM PDT
Tip 56: Join the Circle
Imagine having a cup of coffee every morning with a nationwide expert on marketing residential rentals, or having lunch twice a week with a professional who can show you how to determine the optimum amount of rent.
You can meet these industry powerhouses from you home or office computer by joining the networking group Multifamily Insiders free of charge, as you drink your morning coffee.
Multifamily Insiders is the interactive social hub for the apartment industry, providing a place for landlords, multifamily professionals and investors to network, coordinate more effectively, share ideas, experiences, and knowledge with each other, all for free!
The site has the largest collection of multifamily-specific blogs and discussion groups, as well as document sharing, job listings, and other networking opportunities. Whether you self-manage, or are purely an investor of apartment properties, Multifamily Insiders is a valuable resource in your business.
As an AAOA member your free Multifamily Insiders membership will provide you with instant access to the advice and comments of multifamily professionals from across the country.
Supercharge your property management knowledge by taking advantage of your free Multifamily Insiders membership today.
Click here to register your free account: Multifamily Insiders Registration Page
Tuesday, May 11, 2010
Using Facebook as a Tenant Screening Tool by Janet Portman
Using Facebook as a Tenant Screening Tool
Posted: 10 May 2010 08:34 AM PDT
Rent it Right
by Janet Portman, Inman News
Q: When I screen potential tenants, I talk to their current landlord and their employer, ask for references, and order a credit report. Some of the landlords in town are also regularly looking on the Internet, to see if the applicant blogs, has a Facebook page, and so on.
One friend told me that when he looked at the Facebook page of an applicant he was about to rent to, he saw that the person is really into partying and drinking. My friend didn’t rent to him.
Should I be looking at Facebook pages, too? –David R.
A: Your question calls for two answers: a legal one and a practical one. From a legal point of view, should you be checking applicants’ Internet postings? And, from a practical point of view, is it a good idea?
The steps you’ve been taking when screening tenants are the tried-and-true methods that careful landlords have been using for years to weed out risky applicants: those whose past actions indicate that they may not pay the rent or may not be considerate residents and neighbors. Although these methods are commonly used, they are not legally required.
It’s possible that a court might rule that these tools are the “industry standard,” which might make them quasi-mandatory, but it’s unlikely. Running a residential rental business (unlike, say, car manufacturing) is engaged in by too many people, in too many varied ways, to conclude that it’s an “industry” with common metrics and procedures.
So because you’re not legally required to do even what you’re already doing, it’s very unlikely that a judge would consider checking for Internet postings to be a legally necessary step in the screening process. Consider, for example, the issue of screening for those who are legally required to register as convicted sex offenders.
No state requires landlords to go online and look for their applicants on these lists, and California specifically forbids them from doing so. If you’re not required to consult the Internet for information as serious as registration for one of these crimes, it’s not reasonable to think that you’d have any duty to search for evidence of partying.
This conclusion has to be adjusted, however, for one situation: If you’re hiring a resident manager, you are screening not only a tenant, but a future employee, who will have access to tenants’ personal information and even their homes. You have a duty to make sure that you do not place a dangerous tenant manager in that position — in other words, your duty to screen has changed significantly.
Careful landlords do investigative background checks for tenant managers, with the legally required advance notice to the applicant. These investigations may turn up relevant information, including the applicant’s postings on the Internet.
So much for your legal duty. What about the practical value of hopping online and checking out your applicants? It’s hard to resist, and indeed you may learn information about your applicants’ lifestyle and habits that would reasonably lead any landlord to say, “No thanks on this one.”
As long as you’re looking at Web postings that are available to the public, your applicants will have no legitimate beef if you reject them based on what you see and read. But be careful — you can safely reject any applicant only when your reasons for doing so, no matter where you found the information, are legally justified, and not based on that applicant’s membership in a protected class, such as race and religion.
For example, suppose you have an applicant who passes every good-tenant test you have, but who also has a Facebook page that proudly announces her membership in a particular religion. If you reject her, and rent to someone whose qualifications were less sturdy, you’re setting yourself up for a fair housing claim.
The rejected applicant may argue that your knowledge of her religion, gleaned from your visit to her Facebook page, must have motivated your decision — why else would you choose someone less qualified?
On the other hand, if your visit reveals that this person is a party animal who loves to host regular “keggers,” plays the kettle drum, and collects stray cats, you have solid grounds to reject.
Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of “Every Landlord’s Legal Guide” and “Every Tenant’s Legal Guide.” She can be reached at janet@inman.com.
Copyright 2010 Janet Portman
See Janet Portman’s feature, Higher Risk, Higher Deposit.
Posted: 10 May 2010 08:34 AM PDT
Rent it Right
by Janet Portman, Inman News
Q: When I screen potential tenants, I talk to their current landlord and their employer, ask for references, and order a credit report. Some of the landlords in town are also regularly looking on the Internet, to see if the applicant blogs, has a Facebook page, and so on.
One friend told me that when he looked at the Facebook page of an applicant he was about to rent to, he saw that the person is really into partying and drinking. My friend didn’t rent to him.
Should I be looking at Facebook pages, too? –David R.
A: Your question calls for two answers: a legal one and a practical one. From a legal point of view, should you be checking applicants’ Internet postings? And, from a practical point of view, is it a good idea?
The steps you’ve been taking when screening tenants are the tried-and-true methods that careful landlords have been using for years to weed out risky applicants: those whose past actions indicate that they may not pay the rent or may not be considerate residents and neighbors. Although these methods are commonly used, they are not legally required.
It’s possible that a court might rule that these tools are the “industry standard,” which might make them quasi-mandatory, but it’s unlikely. Running a residential rental business (unlike, say, car manufacturing) is engaged in by too many people, in too many varied ways, to conclude that it’s an “industry” with common metrics and procedures.
So because you’re not legally required to do even what you’re already doing, it’s very unlikely that a judge would consider checking for Internet postings to be a legally necessary step in the screening process. Consider, for example, the issue of screening for those who are legally required to register as convicted sex offenders.
No state requires landlords to go online and look for their applicants on these lists, and California specifically forbids them from doing so. If you’re not required to consult the Internet for information as serious as registration for one of these crimes, it’s not reasonable to think that you’d have any duty to search for evidence of partying.
This conclusion has to be adjusted, however, for one situation: If you’re hiring a resident manager, you are screening not only a tenant, but a future employee, who will have access to tenants’ personal information and even their homes. You have a duty to make sure that you do not place a dangerous tenant manager in that position — in other words, your duty to screen has changed significantly.
Careful landlords do investigative background checks for tenant managers, with the legally required advance notice to the applicant. These investigations may turn up relevant information, including the applicant’s postings on the Internet.
So much for your legal duty. What about the practical value of hopping online and checking out your applicants? It’s hard to resist, and indeed you may learn information about your applicants’ lifestyle and habits that would reasonably lead any landlord to say, “No thanks on this one.”
As long as you’re looking at Web postings that are available to the public, your applicants will have no legitimate beef if you reject them based on what you see and read. But be careful — you can safely reject any applicant only when your reasons for doing so, no matter where you found the information, are legally justified, and not based on that applicant’s membership in a protected class, such as race and religion.
For example, suppose you have an applicant who passes every good-tenant test you have, but who also has a Facebook page that proudly announces her membership in a particular religion. If you reject her, and rent to someone whose qualifications were less sturdy, you’re setting yourself up for a fair housing claim.
The rejected applicant may argue that your knowledge of her religion, gleaned from your visit to her Facebook page, must have motivated your decision — why else would you choose someone less qualified?
On the other hand, if your visit reveals that this person is a party animal who loves to host regular “keggers,” plays the kettle drum, and collects stray cats, you have solid grounds to reject.
Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of “Every Landlord’s Legal Guide” and “Every Tenant’s Legal Guide.” She can be reached at janet@inman.com.
Copyright 2010 Janet Portman
See Janet Portman’s feature, Higher Risk, Higher Deposit.
Monday, May 10, 2010
Friday, April 30, 2010
5 Great Reasons to Move Payments Online!
Your Paperless Office: Five Great Reasons to Move Payments Online
Posted: 28 Apr 2010 04:34 PM PDT
A single check seems small enough. But added up, the checks your property management company deposits or prints can ultimately bury your staff under a mound of paper. If you are on the way to a paperless office but haven’t yet tackled electronic payments for receivables and payables, you are paying more than you need to run your operation.
Many property management companies use a blended approach of electronic and paper-based payments, although the trend is clearly towards electronic payments. Most electronic payment implementations involve a combination of one or more of the following:
Moving resident rent payments, application fees and other receivables online using ACH (Automated Clearinghouse) and credit cards.
Moving your payables online by sending electronic payments to vendors, owners or investors, employees and others.
You may have already implemented check scanning for receivables or MICR laser check processing for payables. Congratuations – both these technologies are effective ways to streamline your backoffice. However, these methods still carry handling costs. Electronic payments can dramatically reduce these costs even further.
Here are five great reasons you should implement electronic payments as part of your paperless office initiative:
1. Improve efficiency and accuracy. After all, isn’t that the reason you decided to go paperless in the first place? With electronic payments, your staff can save a significant amount of handling time and reduce errors. According to independent studies, each paper check you eliminate can save your company at least $2.00 in handling costs.
2. Greater security. Each time a check is handled, whether it’s by the post office or your backoffice staff, the odds of a loss or security issue is increased. Online payments are a more secure way of getting the payments into or out of your account.
3. Improve cash flow and visibility. Rent payments made using an ACH system are deposited more rapidly than a traditional paper check. Notification of non-sufficient funds occurs faster as well. In addition to faster funds availability, electronic payments provide your accountant and management team with a more real-time view into receivables and payables.
4. Fewer trips to the bank by you and others. Payments you receive online are automatically deposited at the bank, saving you trips to the bank and improving deposit security. Your payables are deposited directly as well, and although this doesn’t affect your bottom line, it’s the greener way to go.
5. More convenience for your customers. Payments by paper check are clearly on the decline, and forward-thinking companies are offering innovative electronic payment methods to their customers. In property management, you can provide more convenience to your customers: residents, vendors, investors/owners, and employees. These customers expect it.
You can find electronic payment solutions from multiple sources, including your bank, independent payment processing companies, and from your property management software vendor. Once you get started with electronic payments, you can streamline your operation even further and start to unbury your staff from that mound of paper.
For More information on Online Payments go to www.heartlandpaymentsystems.com/cherylniesz
Posted: 28 Apr 2010 04:34 PM PDT
A single check seems small enough. But added up, the checks your property management company deposits or prints can ultimately bury your staff under a mound of paper. If you are on the way to a paperless office but haven’t yet tackled electronic payments for receivables and payables, you are paying more than you need to run your operation.
Many property management companies use a blended approach of electronic and paper-based payments, although the trend is clearly towards electronic payments. Most electronic payment implementations involve a combination of one or more of the following:
Moving resident rent payments, application fees and other receivables online using ACH (Automated Clearinghouse) and credit cards.
Moving your payables online by sending electronic payments to vendors, owners or investors, employees and others.
You may have already implemented check scanning for receivables or MICR laser check processing for payables. Congratuations – both these technologies are effective ways to streamline your backoffice. However, these methods still carry handling costs. Electronic payments can dramatically reduce these costs even further.
Here are five great reasons you should implement electronic payments as part of your paperless office initiative:
1. Improve efficiency and accuracy. After all, isn’t that the reason you decided to go paperless in the first place? With electronic payments, your staff can save a significant amount of handling time and reduce errors. According to independent studies, each paper check you eliminate can save your company at least $2.00 in handling costs.
2. Greater security. Each time a check is handled, whether it’s by the post office or your backoffice staff, the odds of a loss or security issue is increased. Online payments are a more secure way of getting the payments into or out of your account.
3. Improve cash flow and visibility. Rent payments made using an ACH system are deposited more rapidly than a traditional paper check. Notification of non-sufficient funds occurs faster as well. In addition to faster funds availability, electronic payments provide your accountant and management team with a more real-time view into receivables and payables.
4. Fewer trips to the bank by you and others. Payments you receive online are automatically deposited at the bank, saving you trips to the bank and improving deposit security. Your payables are deposited directly as well, and although this doesn’t affect your bottom line, it’s the greener way to go.
5. More convenience for your customers. Payments by paper check are clearly on the decline, and forward-thinking companies are offering innovative electronic payment methods to their customers. In property management, you can provide more convenience to your customers: residents, vendors, investors/owners, and employees. These customers expect it.
You can find electronic payment solutions from multiple sources, including your bank, independent payment processing companies, and from your property management software vendor. Once you get started with electronic payments, you can streamline your operation even further and start to unbury your staff from that mound of paper.
For More information on Online Payments go to www.heartlandpaymentsystems.com/cherylniesz
Sunday, April 25, 2010
If you are using "Craigs List" You Must Read This Post!
Landlord Slapped With Fine Over Craigslist Ad
Posted: 22 Apr 2010 08:21 AM PDT
Landlord Must Issue Warning to Others on Craigslist
Massachusetts Attorney General Martha Coakley announced a settlement between her office and a Revere, Massachusetts landlord over allegations that his rental ad in Craigslist violated state discrimination statutes.
This judgment is the result of a continuing statewide investigation by the Attorney General’s Office into reports of widespread discriminatory housing advertisements on the Internet.
“As more families face tough financial times and have no choice but to rent, landlords and real estate professionals must recognize that the rental market is a regulated industry,” said Attorney General Coakley. “While we hope that this enforcement initiative will have a deterrent effect, our office will continue to monitor Craigslist.”
The Attorney General’s Office has settled 20 similar cases and filed six other complaints against landlords and real estate agents across the Commonwealth accused of violating state anti-discrimination laws on Craigslist.
In this case, the landlord used Craiglist to advertise a unit for rent in Revere, stating “no Section 8.” The Massachusetts Anti-Discrimination Act prohibits landlords and others involved in property rentals from discriminating against people who use state or federal housing subsidies to pay for all or a portion of their rent.
The settlement requires the landlord attend trainings on state and federal fair housing laws. He has also agreed to place “Equal Housing Opportunity” in any future rental property ads. And, in an effort to increase awareness of this important issue, the landlord is required to place postings on Craigslist informing other Craigslist users that the Attorney General monitors Craigslist for discriminatory advertising and that it is against Massachusetts law to state a discriminatory preference against recipients of housing assistance subsidies.
He will also pay $750 to a local charity that provides legal services to poor and low-income persons in housing and a variety of areas.See Fair Housing “Zero-Tolerance” Policy Netting Huge Awards Against Landlords.
Posted: 22 Apr 2010 08:21 AM PDT
Landlord Must Issue Warning to Others on Craigslist
Massachusetts Attorney General Martha Coakley announced a settlement between her office and a Revere, Massachusetts landlord over allegations that his rental ad in Craigslist violated state discrimination statutes.
This judgment is the result of a continuing statewide investigation by the Attorney General’s Office into reports of widespread discriminatory housing advertisements on the Internet.
“As more families face tough financial times and have no choice but to rent, landlords and real estate professionals must recognize that the rental market is a regulated industry,” said Attorney General Coakley. “While we hope that this enforcement initiative will have a deterrent effect, our office will continue to monitor Craigslist.”
The Attorney General’s Office has settled 20 similar cases and filed six other complaints against landlords and real estate agents across the Commonwealth accused of violating state anti-discrimination laws on Craigslist.
In this case, the landlord used Craiglist to advertise a unit for rent in Revere, stating “no Section 8.” The Massachusetts Anti-Discrimination Act prohibits landlords and others involved in property rentals from discriminating against people who use state or federal housing subsidies to pay for all or a portion of their rent.
The settlement requires the landlord attend trainings on state and federal fair housing laws. He has also agreed to place “Equal Housing Opportunity” in any future rental property ads. And, in an effort to increase awareness of this important issue, the landlord is required to place postings on Craigslist informing other Craigslist users that the Attorney General monitors Craigslist for discriminatory advertising and that it is against Massachusetts law to state a discriminatory preference against recipients of housing assistance subsidies.
He will also pay $750 to a local charity that provides legal services to poor and low-income persons in housing and a variety of areas.See Fair Housing “Zero-Tolerance” Policy Netting Huge Awards Against Landlords.
April Property Mgmt. Marketing Ideas by: Property Manager.com
April is one of my favorite months in property management because it’s full of ANTICIPATION! We’re all waiting for that first big weekend, when the leasing season really kicks in to high gear for all those late May and early June moves. Instead of waiting this year, why not take a proactive approach with some fresh ideas to drive traffic to your door?! Here are three ideas to get your creativity flowing:
1. Not only is it easy being green, but it’s a great sales pitch! Tap in to the good feelings around Earth Day this year, April 22nd. This holiday, conceived in the 1970s by a senator from Wisconsin, has grown exponentially in popularity over the last few years due to the climate change concerns. You can make a good impression by tying in your move-in concession to Earth Day by planting a tree in the new resident’s name (there are services that will do this for just $1!), donating the cost of offsetting the carbon footprint of their move in, or even offering them a green move in gift, like a box of CFL bulbs for the lights in their apartment – a move that not only is eco friendly, but super wallet friendly for them as well!
2. April 16th is National Stress Awareness day, so what better time to invite people to come in and check out the stress free living that your community offers! This is a great chance for outreach with the community around you, since you can involve local massage schools or day spas in the marketing event by asking them if they’d either be willing to donate a coupon off their services OR spend a day in your club house, providing those services to people who come in to tour. Nothing is better the day after filing your taxes than getting a nice massage or pedicure. And it could be great for the business, since it helps them find clients.
3. April is also a great month in most of the country because it’s warm enough to start to see some outdoor activities, however, if you live in a large metro area like I do and have kids, I’m sure you know exactly how expensive some of those city teams can be for kids to play on. If you have the open space in your community, like a large courtyard or play field, why not send out fliers to a local school and offer to host dodge ball or kick ball games Thursday evenings for kids in their third or fourth grade classes? It brings people in to your community, and if you leave your office open until 7:30 those nights, you have a good chance of tapping into families who may be thinking about moving this summer. Best of all, you look like a community that understands how important and tight costs are right now to everyone, even kids.
These are just some springboards for your teams to start with. There are tons of great ideas out there for this month, you just have to sit still for a moment and think about them!
1. Not only is it easy being green, but it’s a great sales pitch! Tap in to the good feelings around Earth Day this year, April 22nd. This holiday, conceived in the 1970s by a senator from Wisconsin, has grown exponentially in popularity over the last few years due to the climate change concerns. You can make a good impression by tying in your move-in concession to Earth Day by planting a tree in the new resident’s name (there are services that will do this for just $1!), donating the cost of offsetting the carbon footprint of their move in, or even offering them a green move in gift, like a box of CFL bulbs for the lights in their apartment – a move that not only is eco friendly, but super wallet friendly for them as well!
2. April 16th is National Stress Awareness day, so what better time to invite people to come in and check out the stress free living that your community offers! This is a great chance for outreach with the community around you, since you can involve local massage schools or day spas in the marketing event by asking them if they’d either be willing to donate a coupon off their services OR spend a day in your club house, providing those services to people who come in to tour. Nothing is better the day after filing your taxes than getting a nice massage or pedicure. And it could be great for the business, since it helps them find clients.
3. April is also a great month in most of the country because it’s warm enough to start to see some outdoor activities, however, if you live in a large metro area like I do and have kids, I’m sure you know exactly how expensive some of those city teams can be for kids to play on. If you have the open space in your community, like a large courtyard or play field, why not send out fliers to a local school and offer to host dodge ball or kick ball games Thursday evenings for kids in their third or fourth grade classes? It brings people in to your community, and if you leave your office open until 7:30 those nights, you have a good chance of tapping into families who may be thinking about moving this summer. Best of all, you look like a community that understands how important and tight costs are right now to everyone, even kids.
These are just some springboards for your teams to start with. There are tons of great ideas out there for this month, you just have to sit still for a moment and think about them!
Monday, April 12, 2010
What to Consider When Hiring a Property Management Company by Chris Thorman
If a property owner has a growing number of properties, it’s inevitable that a day will come when they ask, “Should I outsource the day-to-day operations of my business to a property management company?”
Deciding when to outsource and which company to hire is one of the most important business decisions a property owner can make. Choose wisely, and an owner will be rewarded with the peace of mind that comes with responsible property management. Choose incorrectly, and an owner will be working harder after hiring a property management company.
Whether an owner has one or one hundred properties, it’s important to consider whether or not they’re prepared to hire a property management company. Handing over the management of property is a major decision. Before making that choice, owners will want to make sure they understand the following:
* The implications of self-owned management;
* The pros of outsourcing management to a third party;
* The corresponding cons; and,
* The alternatives to outsourcing.
Let’s take a look at each consideration in detail.
What’s Involved in Effective Owner Management?
Owning and managing property require two different skill sets. Unfortunately, many property owners purchase property not knowing the full responsibility that management entails. Before a person jumps into purchasing rental properties, they’ll need to understand what is going to be required of them.
* Knowledge of landlord/tenant law. Familiarity with the state laws that govern the landlord/tenant relationship is a must for any property owner. If owners aren’t comfortable with their level of knowledge or experience in this area, they could be leaving themselves open to lawsuits and fines. For example, the federal Lead-Based Paint Hazard Reduction Act requires the disclosure of lead-based paint and hazards before the lease of most units built before 1978. Owners can face a $10,000 fine if they fail to do so. Airtight contracts and leases are also extremely important for protecting owners from lawsuits and recouping lost costs.
* Time and expense spent visiting properties. Rental properties are going to require regular visits to check on the condition of the property, perform emergency maintenance or show vacant units. If owners’ properties are far away from home or each other, they will spend a lot of time in transit. If owners attempt to self-manage too many properties, they run the risk of spending all their time performing routine visits instead of managing the company.
* Responsibility for repairs and maintenance. A landlord needs to have a diverse range of skills to perform maintenance themselves. At the very least, a landlord needs to have basic plumbing, electrical, carpentry and landscaping skills to properly maintain a property. If they’re not well-versed in these areas, they’ll be spending revenue on repair services. While family members and friends can be labor outlets, relying on such help comes with inherent risks.
* Effective tenant screening. An owner will quickly need to become good at weeding out problem tenants during the screening process. If an owner only has a few units and has to replace a problem tenant a few times a year, their profit is likely going to drop dramatically. Credit checks, employment verification and collecting references are key in this process.
* Ability to deal with difficult tenants. Even if landlords screen tenants thoroughly, they will inevitably interact with unhappy or unruly tenants. Whether the tenant is simply unhappy or in violation of rules and facing eviction, a landlord needs to stand firm in the face of adversity and enforce the rules of the lease. If they’re not able to confront people, a property owner risks being taken advantage of by tenants. In the most extreme cases, landlords may even need to rely on lawyers or courts to settle issues and pay hefty fees.
* Good property management software. If an owner is managing a decent number of units, they’ll want to invest in software to manage their properties. Investing in a robust property management system has the ability to increase efficiency by:
o Accepting rental payments online;
o Performing credit and criminal background checks;
o Decreasing advertising costs by automatically posting units to popular listing sites;
o Automatically reminding tenants to pay their rent;
o Eliminating poor record keeping by automating certain processes; and
o Creating letters and tax forms automatically from pre-existing data.
A solid property management system can be a good tool to have, especially for a novice property owner.
Benefits of Hiring a Property Management Company
If a property owner decides that they’re not able to properly manage their property, it’s important to understand what side effects they should expect. In general, a well-run property management company will yield these results for owners:
* Increased revenue. A property management company is more experienced at advertising and usually has access to larger pool of potential renters, meaning units typically stay vacant for shorter periods of time. A property management company also has a better understanding of the local rental rates, putting them in a position to maximize the amount you can charge per property.
* More free time. Naturally, once an owner hands over the responsibility of managing its properties to a company, they’re going to have extra time on their hands. This is perhaps the most obvious – and enjoyable – benefit of hiring outside help. The property management company becomes the owner’s one point of contact for all things related to their property, eliminating the need to juggle a number of different vendors and services. A property owner can also use this extra time to expand their portfolio and focus on growing the business.
* Reduced direct costs. A property management company is be able to perform preventative maintenance, reducing the direct costs to the property owner. Furthermore, a management company will likely have extensive knowledge of local landlord/tenant laws, helping shield the owner from costly lawsuits. One lawsuit avoided may pay for years of property management fees. Finally, the management company likely has more experience screening tenants. This reduces vacancy cycles and damages from poorly screened tenants.
Drawbacks of Hiring a Property Management Company
Of course, outsourcing management involves risks that need to be considered. A property management company that is negligent in responsibilities could cause more headaches for their owners. The most common downsides include the following:
* Cost. A property management company will charge an owner between 3%-12% of the property’s gross monthly rent to manage it, depending on the level of service. For a property with a large number of units, this can be a significant cost.
To illustrate these costs, the table below shows monthly management fees for various amounts of units, assuming a 10% management fee on units rented at $1,000 per month.
Monthly Property Management Company Commission
Keep in mind that management fees aren’t the only fees that may be assessed by a property management company. Many companies charge additionally for creating or renewing leases, performing maintenance, and advertising vacant properties.
* Possibility of developing a bad reputation. The most vocal tenants in any community are those who are unhappy with management. Unfortunately, as more and more tenants flock to web sites to voice their disapproval with property managers, a property owner can can earn a bad reputation that will be displayed online indefinitely. Many rental property rating web sites have been around for nearly a decade now, which means bad reviews exist long after management has been changed or improved.
* Potential for inadequate record keeping. In most cases, a property management company is solely responsible for all record keeping, including accounts payable and receivable, service records and tenant complaint records. If the management company does a poor job keeping records, the owner may be completely lost once they part ways. Inadequate record keeping can also leave an owner with no ground to stand on if a tenant files a legal complaint.
* Vulnerability to lawsuits. It was mentioned before that a good property management company can help an owner avoid lawsuits. The opposite is true with a poorly run management company. A company that doesn’t keep up to date on changes in landlord/tenant law, or worse, doesn’t have a good understanding of the law in the first place, is leaving the owner open to a lawsuit. A single lawsuit could cripple a owner.
Ultimately, a property owner must determine if the benefits of hiring a property management company justify the expense. Owners who are able to outsource to effective companies and focus on growing the business would likely agree that the pros of outsourcing outweigh the costs.
Not Ready To Hire a Property Management Company?
An in-between option that exists between outsourcing and owner-management is hiring a residential manager. A residential manager is a person who lives on-site in one of the units and takes care of basic tasks related to the management of the property.
These basic tasks may include:
* Showing vacant units to prospective renters;
* Performing light maintenance and clean up; and,
* Coordinating with repair persons to fix maintenance issues.
If owners find themselves stretched thin but still not ready to hire a property management company, hiring a resident manager can be a good bridge between those two options.
Choose Wisely
Whichever route a property owner decides to take, a firm understanding of what property management entails will be essential for success. For the owners who choose self-management, they’ll need to become property management experts. For the owners who outsource their management, not knowing the industry will only lead to trouble down the road.
The lesson here is know the ins and outs of an business, no matter who manages it.
This article comes from Chris Thorman, who blogs about property management software at the Software Advice blog. It was originally published here: What To Consider When Hiring a Property Management Company.
Deciding when to outsource and which company to hire is one of the most important business decisions a property owner can make. Choose wisely, and an owner will be rewarded with the peace of mind that comes with responsible property management. Choose incorrectly, and an owner will be working harder after hiring a property management company.
Whether an owner has one or one hundred properties, it’s important to consider whether or not they’re prepared to hire a property management company. Handing over the management of property is a major decision. Before making that choice, owners will want to make sure they understand the following:
* The implications of self-owned management;
* The pros of outsourcing management to a third party;
* The corresponding cons; and,
* The alternatives to outsourcing.
Let’s take a look at each consideration in detail.
What’s Involved in Effective Owner Management?
Owning and managing property require two different skill sets. Unfortunately, many property owners purchase property not knowing the full responsibility that management entails. Before a person jumps into purchasing rental properties, they’ll need to understand what is going to be required of them.
* Knowledge of landlord/tenant law. Familiarity with the state laws that govern the landlord/tenant relationship is a must for any property owner. If owners aren’t comfortable with their level of knowledge or experience in this area, they could be leaving themselves open to lawsuits and fines. For example, the federal Lead-Based Paint Hazard Reduction Act requires the disclosure of lead-based paint and hazards before the lease of most units built before 1978. Owners can face a $10,000 fine if they fail to do so. Airtight contracts and leases are also extremely important for protecting owners from lawsuits and recouping lost costs.
* Time and expense spent visiting properties. Rental properties are going to require regular visits to check on the condition of the property, perform emergency maintenance or show vacant units. If owners’ properties are far away from home or each other, they will spend a lot of time in transit. If owners attempt to self-manage too many properties, they run the risk of spending all their time performing routine visits instead of managing the company.
* Responsibility for repairs and maintenance. A landlord needs to have a diverse range of skills to perform maintenance themselves. At the very least, a landlord needs to have basic plumbing, electrical, carpentry and landscaping skills to properly maintain a property. If they’re not well-versed in these areas, they’ll be spending revenue on repair services. While family members and friends can be labor outlets, relying on such help comes with inherent risks.
* Effective tenant screening. An owner will quickly need to become good at weeding out problem tenants during the screening process. If an owner only has a few units and has to replace a problem tenant a few times a year, their profit is likely going to drop dramatically. Credit checks, employment verification and collecting references are key in this process.
* Ability to deal with difficult tenants. Even if landlords screen tenants thoroughly, they will inevitably interact with unhappy or unruly tenants. Whether the tenant is simply unhappy or in violation of rules and facing eviction, a landlord needs to stand firm in the face of adversity and enforce the rules of the lease. If they’re not able to confront people, a property owner risks being taken advantage of by tenants. In the most extreme cases, landlords may even need to rely on lawyers or courts to settle issues and pay hefty fees.
* Good property management software. If an owner is managing a decent number of units, they’ll want to invest in software to manage their properties. Investing in a robust property management system has the ability to increase efficiency by:
o Accepting rental payments online;
o Performing credit and criminal background checks;
o Decreasing advertising costs by automatically posting units to popular listing sites;
o Automatically reminding tenants to pay their rent;
o Eliminating poor record keeping by automating certain processes; and
o Creating letters and tax forms automatically from pre-existing data.
A solid property management system can be a good tool to have, especially for a novice property owner.
Benefits of Hiring a Property Management Company
If a property owner decides that they’re not able to properly manage their property, it’s important to understand what side effects they should expect. In general, a well-run property management company will yield these results for owners:
* Increased revenue. A property management company is more experienced at advertising and usually has access to larger pool of potential renters, meaning units typically stay vacant for shorter periods of time. A property management company also has a better understanding of the local rental rates, putting them in a position to maximize the amount you can charge per property.
* More free time. Naturally, once an owner hands over the responsibility of managing its properties to a company, they’re going to have extra time on their hands. This is perhaps the most obvious – and enjoyable – benefit of hiring outside help. The property management company becomes the owner’s one point of contact for all things related to their property, eliminating the need to juggle a number of different vendors and services. A property owner can also use this extra time to expand their portfolio and focus on growing the business.
* Reduced direct costs. A property management company is be able to perform preventative maintenance, reducing the direct costs to the property owner. Furthermore, a management company will likely have extensive knowledge of local landlord/tenant laws, helping shield the owner from costly lawsuits. One lawsuit avoided may pay for years of property management fees. Finally, the management company likely has more experience screening tenants. This reduces vacancy cycles and damages from poorly screened tenants.
Drawbacks of Hiring a Property Management Company
Of course, outsourcing management involves risks that need to be considered. A property management company that is negligent in responsibilities could cause more headaches for their owners. The most common downsides include the following:
* Cost. A property management company will charge an owner between 3%-12% of the property’s gross monthly rent to manage it, depending on the level of service. For a property with a large number of units, this can be a significant cost.
To illustrate these costs, the table below shows monthly management fees for various amounts of units, assuming a 10% management fee on units rented at $1,000 per month.
Monthly Property Management Company Commission
Keep in mind that management fees aren’t the only fees that may be assessed by a property management company. Many companies charge additionally for creating or renewing leases, performing maintenance, and advertising vacant properties.
* Possibility of developing a bad reputation. The most vocal tenants in any community are those who are unhappy with management. Unfortunately, as more and more tenants flock to web sites to voice their disapproval with property managers, a property owner can can earn a bad reputation that will be displayed online indefinitely. Many rental property rating web sites have been around for nearly a decade now, which means bad reviews exist long after management has been changed or improved.
* Potential for inadequate record keeping. In most cases, a property management company is solely responsible for all record keeping, including accounts payable and receivable, service records and tenant complaint records. If the management company does a poor job keeping records, the owner may be completely lost once they part ways. Inadequate record keeping can also leave an owner with no ground to stand on if a tenant files a legal complaint.
* Vulnerability to lawsuits. It was mentioned before that a good property management company can help an owner avoid lawsuits. The opposite is true with a poorly run management company. A company that doesn’t keep up to date on changes in landlord/tenant law, or worse, doesn’t have a good understanding of the law in the first place, is leaving the owner open to a lawsuit. A single lawsuit could cripple a owner.
Ultimately, a property owner must determine if the benefits of hiring a property management company justify the expense. Owners who are able to outsource to effective companies and focus on growing the business would likely agree that the pros of outsourcing outweigh the costs.
Not Ready To Hire a Property Management Company?
An in-between option that exists between outsourcing and owner-management is hiring a residential manager. A residential manager is a person who lives on-site in one of the units and takes care of basic tasks related to the management of the property.
These basic tasks may include:
* Showing vacant units to prospective renters;
* Performing light maintenance and clean up; and,
* Coordinating with repair persons to fix maintenance issues.
If owners find themselves stretched thin but still not ready to hire a property management company, hiring a resident manager can be a good bridge between those two options.
Choose Wisely
Whichever route a property owner decides to take, a firm understanding of what property management entails will be essential for success. For the owners who choose self-management, they’ll need to become property management experts. For the owners who outsource their management, not knowing the industry will only lead to trouble down the road.
The lesson here is know the ins and outs of an business, no matter who manages it.
This article comes from Chris Thorman, who blogs about property management software at the Software Advice blog. It was originally published here: What To Consider When Hiring a Property Management Company.
Friday, April 9, 2010
What To Do When Tenants Abandon Their Pets
Hungry, Scared and Potentially Lethal: What To Do When Tenants Abandon Their Pets
Posted: 08 Apr 2010 09:24 AM PDT
It’s bad enough when a tenant runs out owing you money. Or, when you have to dispose of the couch they tossed to the curb before they left behind a messy unit. But nothing beats the trauma of re-entering your unit to find abandoned pets.
Often, these animals are scared and frantic from lack of food or water. One realtor discovered a Rottweiler living in the bushes behind a foreclosed home she was listing. Desperate for water, he had punctured a jug of anti-freeze and was drinking what he could as she arrived.
With the foreclosure crisis looming, many animal shelters are brimming with abandoned animals. As a result, more of these animals may end up euthanized than find homes. A number of grassroots organizations are attempting to rescue these animals in need by taking on some of the overload.
Let’s consider what you need to do as a landlord when you find an abandoned pet.
First, you must determine if the animal is legally abandoned. Follow the same local rules for abandoned property in general:
The lease has expired and the tenant has given no indication they will remain on the premises,
The tenant has given notice they have moved, or
You have legally evicted the tenant.
If the animal is legally abandoned, consider safety first – yours and your neighbors’.
You don’t know why the animal was abandoned. You are assuming it is because the owner couldn’t afford its care, but it may be sick, or vicious.
The animal is stressed, and may behave badly. This is especially true if it has been foraging for food or water, or spooked by strangers around the property – workers, kids making noise in neighboring yards. A dog may continue to dutifully guard the premises and view you as an intruder.
If you were aware that a pet was on your premises, you may be liable for any injuries to neighbors, including other tenants. See more on Landlord Liability for pets.
For these reasons, calling your local police department’s animal control to file a report and request they remove the pet may be your most prudent choice. Not only is it best to go with the trained professionals, but depending on the animal’s condition at the time, the tenant may have committed a crime. It is best for the police to record how the animal was treated.
Alternatively, you can bring the animal to a shelter. But with the foreclosure crisis still looming, the shelters in hard-hit areas are brimming with abandoned animals. As a result, more of these animals will be euthanized than find homes, to the anguish of those directing these programs. They may not be keen to take on yet another pet. A number of grassroots organizations are trying to step in by taking care of animals when there is no room at the shelters.
But not everyone calls the police or takes the animal to a shelter. One landlord felt such pity for an abandoned dog, he took it home. The two bonded, and have been best friends ever since.
While that’s a happy ending to a tragic story, landlords can’t be expected to take in every pet they find abandoned.
Whatever you choose to do, remember that there are laws protecting a tenant’s property – even when it is abandoned. Once you take “possession” you need to follow the rules regarding notice to the tenant or face financial penalties in many states.
Property Management Pro James Safonov explains, “Due to the requirements a pet may need to remain healthy or at least stay alive, the landlord may contact the local humane society or equivalent to pick up the pet. A posting ought to be placed on the door (and mailed to the last known address) where the pet was taken to. The agency picking up the pet needs to be informed who the owner is so they may have the opportunity to pick the pet up.”
James Safonov is a profession Property Manager with HomePointe in Sacramento, California. You can reach James at jsafonov@homepointe.com. HomePointe provides full service property management, leasing, accounting, and maintenance.
Posted: 08 Apr 2010 09:24 AM PDT
It’s bad enough when a tenant runs out owing you money. Or, when you have to dispose of the couch they tossed to the curb before they left behind a messy unit. But nothing beats the trauma of re-entering your unit to find abandoned pets.
Often, these animals are scared and frantic from lack of food or water. One realtor discovered a Rottweiler living in the bushes behind a foreclosed home she was listing. Desperate for water, he had punctured a jug of anti-freeze and was drinking what he could as she arrived.
With the foreclosure crisis looming, many animal shelters are brimming with abandoned animals. As a result, more of these animals may end up euthanized than find homes. A number of grassroots organizations are attempting to rescue these animals in need by taking on some of the overload.
Let’s consider what you need to do as a landlord when you find an abandoned pet.
First, you must determine if the animal is legally abandoned. Follow the same local rules for abandoned property in general:
The lease has expired and the tenant has given no indication they will remain on the premises,
The tenant has given notice they have moved, or
You have legally evicted the tenant.
If the animal is legally abandoned, consider safety first – yours and your neighbors’.
You don’t know why the animal was abandoned. You are assuming it is because the owner couldn’t afford its care, but it may be sick, or vicious.
The animal is stressed, and may behave badly. This is especially true if it has been foraging for food or water, or spooked by strangers around the property – workers, kids making noise in neighboring yards. A dog may continue to dutifully guard the premises and view you as an intruder.
If you were aware that a pet was on your premises, you may be liable for any injuries to neighbors, including other tenants. See more on Landlord Liability for pets.
For these reasons, calling your local police department’s animal control to file a report and request they remove the pet may be your most prudent choice. Not only is it best to go with the trained professionals, but depending on the animal’s condition at the time, the tenant may have committed a crime. It is best for the police to record how the animal was treated.
Alternatively, you can bring the animal to a shelter. But with the foreclosure crisis still looming, the shelters in hard-hit areas are brimming with abandoned animals. As a result, more of these animals will be euthanized than find homes, to the anguish of those directing these programs. They may not be keen to take on yet another pet. A number of grassroots organizations are trying to step in by taking care of animals when there is no room at the shelters.
But not everyone calls the police or takes the animal to a shelter. One landlord felt such pity for an abandoned dog, he took it home. The two bonded, and have been best friends ever since.
While that’s a happy ending to a tragic story, landlords can’t be expected to take in every pet they find abandoned.
Whatever you choose to do, remember that there are laws protecting a tenant’s property – even when it is abandoned. Once you take “possession” you need to follow the rules regarding notice to the tenant or face financial penalties in many states.
Property Management Pro James Safonov explains, “Due to the requirements a pet may need to remain healthy or at least stay alive, the landlord may contact the local humane society or equivalent to pick up the pet. A posting ought to be placed on the door (and mailed to the last known address) where the pet was taken to. The agency picking up the pet needs to be informed who the owner is so they may have the opportunity to pick the pet up.”
James Safonov is a profession Property Manager with HomePointe in Sacramento, California. You can reach James at jsafonov@homepointe.com. HomePointe provides full service property management, leasing, accounting, and maintenance.
Thursday, April 8, 2010
Resident Security Deposits-Are You Covered?
Resident Security Deposits – Are You Covered?
Posted: 08 Apr 2010 07:00 AM PDT
When Judy moved out of her apartment, the property managers at one of New Mexico’s top management companies were mortified by the extent of damages. The front door was covered in dents, and windows were broken in both the bedroom and the living room. The carpet was covered in cigarette burns and ugly purple stains, and the bathroom tile was curled up and peeling from excessive water damage.
The only consolation was that the management company had a significant security deposit on hand that could be used toward the damages. Yet, within two months, Judy received her security deposit back, with interest, leaving the management company responsible for the tab.
Why?
Because management personnel made a costly error. They failed to provide Judy with an itemized statement of damages, a process required by state law. In fact, they didn’t send Judy anything at all. They simply kept her security deposit.
How can you make sure that your company avoids this common error, and doesn’t end up paying out of pocket for extensive damages?
Note that most states require property management companies return tenant security deposits or provide former residents with an itemized statement of damages within 30 days of the date of vacancy.
Know your state’s specific statutes. States such as Nevada and New Mexico use the 30-day rule, while Florida requires property management companies to mail security deposits within 15 days of vacancy, and provide an itemized billing statement for any damages within 30 days of vacancy. California currently allows 21 days for refunds or statement receipt, and Indiana allows 45 days for refunds and statements.
Don’t assume your former residents don’t know the state statutes. Anyone with an Internet connection can easily locate this information. It’s vital that you know it as well.
Be sure to provide an itemized list of damages. A generic bill for $400.00 is not sufficient. State statutes generally require property management companies to detail each charge that is applied against a tenant’s security deposit. Some states, such as California, also require receipts to be included with the statement. Again, learn your state’s statutes and abide by them.
Although careful tenant screening can often prevent excessive property damages, it’s important to not let simple mistakes prove costly to your company. Know the statutes, abide by them on a timely basis, and you’ll be able to retain the funds that are rightfully yours.
Posted: 08 Apr 2010 07:00 AM PDT
When Judy moved out of her apartment, the property managers at one of New Mexico’s top management companies were mortified by the extent of damages. The front door was covered in dents, and windows were broken in both the bedroom and the living room. The carpet was covered in cigarette burns and ugly purple stains, and the bathroom tile was curled up and peeling from excessive water damage.
The only consolation was that the management company had a significant security deposit on hand that could be used toward the damages. Yet, within two months, Judy received her security deposit back, with interest, leaving the management company responsible for the tab.
Why?
Because management personnel made a costly error. They failed to provide Judy with an itemized statement of damages, a process required by state law. In fact, they didn’t send Judy anything at all. They simply kept her security deposit.
How can you make sure that your company avoids this common error, and doesn’t end up paying out of pocket for extensive damages?
Note that most states require property management companies return tenant security deposits or provide former residents with an itemized statement of damages within 30 days of the date of vacancy.
Know your state’s specific statutes. States such as Nevada and New Mexico use the 30-day rule, while Florida requires property management companies to mail security deposits within 15 days of vacancy, and provide an itemized billing statement for any damages within 30 days of vacancy. California currently allows 21 days for refunds or statement receipt, and Indiana allows 45 days for refunds and statements.
Don’t assume your former residents don’t know the state statutes. Anyone with an Internet connection can easily locate this information. It’s vital that you know it as well.
Be sure to provide an itemized list of damages. A generic bill for $400.00 is not sufficient. State statutes generally require property management companies to detail each charge that is applied against a tenant’s security deposit. Some states, such as California, also require receipts to be included with the statement. Again, learn your state’s statutes and abide by them.
Although careful tenant screening can often prevent excessive property damages, it’s important to not let simple mistakes prove costly to your company. Know the statutes, abide by them on a timely basis, and you’ll be able to retain the funds that are rightfully yours.
Wednesday, March 31, 2010
Easter Bunny Eviction Case!
Easter Bunny Eviction Case Going to Trial
Posted: 29 Mar 2010 08:46 AM PDT
A woman who claims she was evicted last spring over an Easter decoration will get her day in court. The case is scheduled to go before a jury tomorrow — just in time for this Easter holiday.
The Boulder, Colorado woman refused to pay rent after her property manager removed a “Peeps” decoration displayed in the hallway outside of the woman’s apartment. The manager has stated she was concerned the sugar might attract pests. The landlord filed for eviction over the unpaid rent, and the tenant counter-sued, claiming she was driven from the property.
The case quickly made national news, and rose to celebrity status when the tenant was invited to speak to Comedy Central’s fake newsman Stephen Colbert, who satirically portrayed the events as an attack on Easter.
At stake is about $2,000 in unpaid rent – and more than $10,000 for the landlord’s attorneys fees.
The jury will decide, possibly on Good Friday, whether the tenant was justified in withholding her rent payment in protest over her decorations.
If the jury doesn’t agree with the tenant, the court then will determine whether the landlord was justified in incurring such a hefty legal bill to resolve this case.
We’ll bring you the verdict as the case goes forward.
For more see Landlord Gives Easter Bunny the Boot.
Posted: 29 Mar 2010 08:46 AM PDT
A woman who claims she was evicted last spring over an Easter decoration will get her day in court. The case is scheduled to go before a jury tomorrow — just in time for this Easter holiday.
The Boulder, Colorado woman refused to pay rent after her property manager removed a “Peeps” decoration displayed in the hallway outside of the woman’s apartment. The manager has stated she was concerned the sugar might attract pests. The landlord filed for eviction over the unpaid rent, and the tenant counter-sued, claiming she was driven from the property.
The case quickly made national news, and rose to celebrity status when the tenant was invited to speak to Comedy Central’s fake newsman Stephen Colbert, who satirically portrayed the events as an attack on Easter.
At stake is about $2,000 in unpaid rent – and more than $10,000 for the landlord’s attorneys fees.
The jury will decide, possibly on Good Friday, whether the tenant was justified in withholding her rent payment in protest over her decorations.
If the jury doesn’t agree with the tenant, the court then will determine whether the landlord was justified in incurring such a hefty legal bill to resolve this case.
We’ll bring you the verdict as the case goes forward.
For more see Landlord Gives Easter Bunny the Boot.
Monday, March 22, 2010
Friday, March 19, 2010
5 Biggest Mistakes Made by Rental Property Owners by Wallace Gibson
5 Biggest Mistakes Made by Rental Property Owners
Posted: 18 Mar 2010 10:45 AM PDT
by Wallace Gibson, CPM, GRI
JUST LOOKING IN THE LOCAL NEWSPAPER CLASSIFIED ADS or ONLINE RENTAL LISTINGS for COMPARABLE RENTAL RATES…. Prospective tenants have many ways to check comparable rental rates besides the newspaper and Craigslist. Local property managers, Realtors, the Internet listings. Property owners renting their own property need to check these sources in addition to the newspaper. Local property managers can provide a list of rental rates – current and past – for various areas, subdivisions, buildings. For apartment rental rates, owners should check the Internet listings on Craigslist, their local apartment association and community sites.
LISTENING TO WHAT OTHER PEOPLE ARE GETTING FOR SIMILAR PROPERTIES…. While this information should be put in “the mix” in determining the property’s rental value, there are often circumstances that are not relayed that could cause the information to be less than helpful.
A country property often reported as being rented for $1,600/month was, in fact, being rented in one year increments to residents new to the area who did not know that the property was over-valued. When the tenants determined they were paying $200/month too much, they quickly found other property as they no longer trusted the property owner. The rental property owner then had a vacancy and downtime which, in reality, brought his annual income to the market rate of $1,400/mo which, if he had quoted this market rent originally, he would still have a tenant in residence and not had the hassle of multiple move-outs and the expenses of re-renting.
VACANCIES ARE BAD….Planned vacancies are good. Vacancies allow for major renovations and repair projects – replacing a bathroom in a property with only 1 bath, rebuilding a deck/porch/patio, replacing carpet/refinishing hardwood floors, converting fuel sources (propane to gas). Sometimes these can be done with a tenant in place; however with a little pre-planning, a lot of hassles and inconvenience can be avoided.
Another reason is to put the property in the “proper rental cycle.” Many rental markets are geared to the school year – either public schools or colleges or universities – more prospective tenants are planning for September and October move-in dates and avoiding the “back to school rush” of late July and August.
USING A POORLY WRITTEN OR PREPARED LEASE…. There are numerous sources for good lease documents including a low-cost computer program that can be purchased from Nolo Press (LeaseWriter) where the document can be formulated for the specifics of the state in which the rental property is located. Unless a lease is prepared for the specifics of a property or the desires of the rental property owner, the use of an attorney is unnecessary. Most local property managers will share their lease format. In a pinch, forms can be purchased from the local Realtor association. From whatever source, the forms should be no more than 3 years old and clearly state the duties of the resident and property owner.
AND LASTLY, NOT CHECKING ALL PROSPECTIVE ADULT APPLICANTS’ RENTAL/CREDIT HISTORY…This is the easiest part of the process and is most often the portion of the process that rental property owners are least likely to perform. Most states allow for the collection of a credit check fee to allow rental property owners to check a would-be rental resident’s credit. In addition to the old standby of a “retail CBI” report, property owners can now obtain a “scored” credit history much like a mortgage credit report that will alert them to the prospect’s past delinquencies, recorded judgements and the possibility of their being over-extended on their current credit obligations. These are all valid “business criteria” that a prospective landlord should use when screening applicants for their rental property.
Wallace Gibson, CPM, GRI, is the owner/broker of Gibson Management Group, Ltd., a full-service property management company offering 45 years of professional property management services for investment property owners in Central Virginia * Charlottesville, Fluvanna, Louisa and Greene counties. Her firm’s website is http://VaHomes4Rent.com and she blogs at www.propertymanagementmaven.com.
Posted: 18 Mar 2010 10:45 AM PDT
by Wallace Gibson, CPM, GRI
JUST LOOKING IN THE LOCAL NEWSPAPER CLASSIFIED ADS or ONLINE RENTAL LISTINGS for COMPARABLE RENTAL RATES…. Prospective tenants have many ways to check comparable rental rates besides the newspaper and Craigslist. Local property managers, Realtors, the Internet listings. Property owners renting their own property need to check these sources in addition to the newspaper. Local property managers can provide a list of rental rates – current and past – for various areas, subdivisions, buildings. For apartment rental rates, owners should check the Internet listings on Craigslist, their local apartment association and community sites.
LISTENING TO WHAT OTHER PEOPLE ARE GETTING FOR SIMILAR PROPERTIES…. While this information should be put in “the mix” in determining the property’s rental value, there are often circumstances that are not relayed that could cause the information to be less than helpful.
A country property often reported as being rented for $1,600/month was, in fact, being rented in one year increments to residents new to the area who did not know that the property was over-valued. When the tenants determined they were paying $200/month too much, they quickly found other property as they no longer trusted the property owner. The rental property owner then had a vacancy and downtime which, in reality, brought his annual income to the market rate of $1,400/mo which, if he had quoted this market rent originally, he would still have a tenant in residence and not had the hassle of multiple move-outs and the expenses of re-renting.
VACANCIES ARE BAD….Planned vacancies are good. Vacancies allow for major renovations and repair projects – replacing a bathroom in a property with only 1 bath, rebuilding a deck/porch/patio, replacing carpet/refinishing hardwood floors, converting fuel sources (propane to gas). Sometimes these can be done with a tenant in place; however with a little pre-planning, a lot of hassles and inconvenience can be avoided.
Another reason is to put the property in the “proper rental cycle.” Many rental markets are geared to the school year – either public schools or colleges or universities – more prospective tenants are planning for September and October move-in dates and avoiding the “back to school rush” of late July and August.
USING A POORLY WRITTEN OR PREPARED LEASE…. There are numerous sources for good lease documents including a low-cost computer program that can be purchased from Nolo Press (LeaseWriter) where the document can be formulated for the specifics of the state in which the rental property is located. Unless a lease is prepared for the specifics of a property or the desires of the rental property owner, the use of an attorney is unnecessary. Most local property managers will share their lease format. In a pinch, forms can be purchased from the local Realtor association. From whatever source, the forms should be no more than 3 years old and clearly state the duties of the resident and property owner.
AND LASTLY, NOT CHECKING ALL PROSPECTIVE ADULT APPLICANTS’ RENTAL/CREDIT HISTORY…This is the easiest part of the process and is most often the portion of the process that rental property owners are least likely to perform. Most states allow for the collection of a credit check fee to allow rental property owners to check a would-be rental resident’s credit. In addition to the old standby of a “retail CBI” report, property owners can now obtain a “scored” credit history much like a mortgage credit report that will alert them to the prospect’s past delinquencies, recorded judgements and the possibility of their being over-extended on their current credit obligations. These are all valid “business criteria” that a prospective landlord should use when screening applicants for their rental property.
Wallace Gibson, CPM, GRI, is the owner/broker of Gibson Management Group, Ltd., a full-service property management company offering 45 years of professional property management services for investment property owners in Central Virginia * Charlottesville, Fluvanna, Louisa and Greene counties. Her firm’s website is http://VaHomes4Rent.com and she blogs at www.propertymanagementmaven.com.
Sunday, March 14, 2010
The Causes of Money by Brian Tracy
The Causes of Money
By: Brian Tracy
Never Worry About Money Again
You must aim to reach the point where you have enough money so that you never have to worry about money again. The good news is that financial independence is easier to achieve today than it has ever been before. We live in the richest country at the richest time in all of human history. We are surrounded by more wealth and affluence than ever before. Your job is to get your fair share.
Financial Success Is Not An Accident
The Law of Cause and Effect applies to money as much as to any other subject. This law says that financial success is an effect. As such, it proceeds from certain, specific causes. When you identify these causes and implement them in your own life and activities, you will get the same effects that hundreds of thousands, and even millions of others have gotten. You can achieve whatever level of affluence you really want if you will just do what others have done before you to achieve the same results. And if you don't, you won't. It is as simple as that.
Your Beliefs Determine Your Success
There is perhaps no other area where universal laws are more in evidence than in the acquiring and keeping of money. In America today, there are several million men and women who have started with nothing, or deeply in debt, and achieved financial independence. Their attitudes and behaviors have been studied in great depth. We now know the keys to wealth creation better than ever before. And what we know is that your most cherished beliefs on the subject of money will be the primary determinants of how much you acquire and how much you keep over the course of your working lifetime.
Brian Tracy
By: Brian Tracy
Never Worry About Money Again
You must aim to reach the point where you have enough money so that you never have to worry about money again. The good news is that financial independence is easier to achieve today than it has ever been before. We live in the richest country at the richest time in all of human history. We are surrounded by more wealth and affluence than ever before. Your job is to get your fair share.
Financial Success Is Not An Accident
The Law of Cause and Effect applies to money as much as to any other subject. This law says that financial success is an effect. As such, it proceeds from certain, specific causes. When you identify these causes and implement them in your own life and activities, you will get the same effects that hundreds of thousands, and even millions of others have gotten. You can achieve whatever level of affluence you really want if you will just do what others have done before you to achieve the same results. And if you don't, you won't. It is as simple as that.
Your Beliefs Determine Your Success
There is perhaps no other area where universal laws are more in evidence than in the acquiring and keeping of money. In America today, there are several million men and women who have started with nothing, or deeply in debt, and achieved financial independence. Their attitudes and behaviors have been studied in great depth. We now know the keys to wealth creation better than ever before. And what we know is that your most cherished beliefs on the subject of money will be the primary determinants of how much you acquire and how much you keep over the course of your working lifetime.
Brian Tracy
Tuesday, March 2, 2010
Crime-Free Seal of Approval
Crime-Free Seal of Approval Could Reduce Landlord Liability, Attract Tenants
Posted: 01 Mar 2010 02:23 PM PST
Police Offer Crime Prevention Certificate Training for Property Managers, Landlords
When a tenant commits crimes on your property, it’s a nightmare for you and for the entire neighborhood.
The Mesa, Arizona Police Department decided to do something about the number of crime reports generated from rental properties: talk to landlords. Police officers found that many landlords were unaware of the crimes being committed, and also of how to prevent crime on their properties. The officers developed an education program designed to foster cooperation with landlords.
The Crime Free Multi-Housing Program was successful -so much so that it took to the road, and has now spread to around 2,000 cities in 44 states.
Completion of the program requires three steps: First, the property manager or landlord attends an 8 hour seminar to learn about crime prevention and awareness, and to develop a better understanding of how to work with the police. Then, an officer will inspect the property and look for vulnerabilities, like easy-to-rig locks, and make recommendations to reduce crime. Finally, the manager or landlord must commit to participate in an annual community awareness training – although that is tagged a ’social’.
The police departments participating are hoping to reduce the number of calls and create safer neighborhoods.
Landlords stand to gain from lower risk of lawsuits, attracting better tenants, and fewer property management headaches.
And who knows, maybe if you show your certificate to your agent, you just may get a break on your property insurance!
See more on Crime Free Multi-Housing
Posted: 01 Mar 2010 02:23 PM PST
Police Offer Crime Prevention Certificate Training for Property Managers, Landlords
When a tenant commits crimes on your property, it’s a nightmare for you and for the entire neighborhood.
The Mesa, Arizona Police Department decided to do something about the number of crime reports generated from rental properties: talk to landlords. Police officers found that many landlords were unaware of the crimes being committed, and also of how to prevent crime on their properties. The officers developed an education program designed to foster cooperation with landlords.
The Crime Free Multi-Housing Program was successful -so much so that it took to the road, and has now spread to around 2,000 cities in 44 states.
Completion of the program requires three steps: First, the property manager or landlord attends an 8 hour seminar to learn about crime prevention and awareness, and to develop a better understanding of how to work with the police. Then, an officer will inspect the property and look for vulnerabilities, like easy-to-rig locks, and make recommendations to reduce crime. Finally, the manager or landlord must commit to participate in an annual community awareness training – although that is tagged a ’social’.
The police departments participating are hoping to reduce the number of calls and create safer neighborhoods.
Landlords stand to gain from lower risk of lawsuits, attracting better tenants, and fewer property management headaches.
And who knows, maybe if you show your certificate to your agent, you just may get a break on your property insurance!
See more on Crime Free Multi-Housing
Saturday, February 27, 2010
Reduce Resident Turnover by Gerry G. Banks
Make a Dedicated Team Effort to Reduce Resident Turnover
We have over 23 apartment communities in seven states in our portfolio, including approximately 12 in one metro area. In that metro area, turnover traditionally runs approximately 70% in class B product and our experience was in line with the metro averages. We analyzed that our greatest opportunity to increase portfolio returns was to reduce resident turnover. We estimated that each turnover costs us approximately $2,000. plus. This is a combination of down time, utilities, labor, apartment preparation costs, marketing, and more.
Solution: We decided to dedicate a full time team to the number one goal of reduction of turnover in our major metro area. We identified our best two leasing agents in our portfolio and moved them to a centrally located, separated office in the clubhouse of one our properties. We gave them the assignment of tracking lease renewals by property, month, and floor plan, and the goal of working with each properties staff to reduce turnover and to be pro-active in lease renewals. We utilize the software “Rent Roll” for on site lease management. Using the F-148 report which details month by month and floor plan by floor plan lease expirations they review each properties lease expirations in the upcoming months and establish goals, plans, and ideas for each property. As an example, if they see a particular property has a large number of leases expiring three months from now, they will go in and analyze those leases and see which leases are closest to market rent. They, or property staff, then use various materials to contact those particular residents with a small incentive to renew now, with no increase to some month where we have less potential turnover. They design, coordinate and attend lease renewal parties. They track each properties progress on lease renewal follow up, making sure that each resident is being contacted well in advance, and follow up is made. They have designed and implemented contests between the properties with an emphasis on renewals.
The Results: As of the end of the Third Quarter our turnovers have dropped by approximately 7% from last year. Turnovers through the third quarter are 172 units less than for the same period last year. We are also seeing the workload of staff flattened out by managing expiration dates better and a resulting reduction in overtime. Further, now that the program is really rolling and in place we are optimistic we will be able to improve upon those numbers in the quarters ahead.
Contributed by: Jerry G. Banks
Apartment Management, Multifamily Brainstorming Sessions, Resident retention
We have over 23 apartment communities in seven states in our portfolio, including approximately 12 in one metro area. In that metro area, turnover traditionally runs approximately 70% in class B product and our experience was in line with the metro averages. We analyzed that our greatest opportunity to increase portfolio returns was to reduce resident turnover. We estimated that each turnover costs us approximately $2,000. plus. This is a combination of down time, utilities, labor, apartment preparation costs, marketing, and more.
Solution: We decided to dedicate a full time team to the number one goal of reduction of turnover in our major metro area. We identified our best two leasing agents in our portfolio and moved them to a centrally located, separated office in the clubhouse of one our properties. We gave them the assignment of tracking lease renewals by property, month, and floor plan, and the goal of working with each properties staff to reduce turnover and to be pro-active in lease renewals. We utilize the software “Rent Roll” for on site lease management. Using the F-148 report which details month by month and floor plan by floor plan lease expirations they review each properties lease expirations in the upcoming months and establish goals, plans, and ideas for each property. As an example, if they see a particular property has a large number of leases expiring three months from now, they will go in and analyze those leases and see which leases are closest to market rent. They, or property staff, then use various materials to contact those particular residents with a small incentive to renew now, with no increase to some month where we have less potential turnover. They design, coordinate and attend lease renewal parties. They track each properties progress on lease renewal follow up, making sure that each resident is being contacted well in advance, and follow up is made. They have designed and implemented contests between the properties with an emphasis on renewals.
The Results: As of the end of the Third Quarter our turnovers have dropped by approximately 7% from last year. Turnovers through the third quarter are 172 units less than for the same period last year. We are also seeing the workload of staff flattened out by managing expiration dates better and a resulting reduction in overtime. Further, now that the program is really rolling and in place we are optimistic we will be able to improve upon those numbers in the quarters ahead.
Contributed by: Jerry G. Banks
Apartment Management, Multifamily Brainstorming Sessions, Resident retention
Friday, February 26, 2010
New Landlord Regs on Leadbase Paint by SimplifyEm
New Landlord Regs on Lead Paint
As a landlord, property manager or property management company, there is a responsibility for the safety of the tenants. This means properly preparing for the renovation and keeping persons out of the work area. It also means ensuring the contractor uses lead-safe work practices.
Beginning April 2010, federal law will require that contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, apartments, residential rental properties built before 1978 to be certified and follow specific work practices to prevent lead contamination.
Until contractors are required to be certified, make sure your contractor can explain clearly the details of the job and how the contractor will minimize lead hazards during the work.
1. Ask if the contractor is trained to perform lead-safe work practices and to see a copy of their training certificate.
2. Ask them what lead-safe methods they will use to set up and perform the job in your home, child care facility or school.
3. Ask if the contractor is aware of the lead renovation rules. For example, contractors are required to provide you with a copy of this pamphlet before beginning work. A sample pre-renovation disclosure form is provided at the back of this pamphlet. Contractors may use this form to make documentation of compliance easier.
4. Ask for references from at least three recent jobs involving homes built before 1978, and speak to each personally. Always make sure the contract is clear about how the work will be set up, performed, and cleaned.
5. Share the results of any previous lead tests with the contractor.
6. Even before contractors are required to be certified you should specify in the contract that they follow the work practices described on pages 9 and 10 of this brochure.
7. The contract should specify which parts of your home are part of the work area and specify which lead-safe work practices should be used in those areas. Remember, your contractor should confine dust and debris to the work area and should minimize spreading that dust to other areas of the home.
8. The contract should also specify that the contractor clean the work area, verify that it was cleaned adequately, and re-clean it if necessary.
Once these practices are required, if you think a worker is failing to do what they are supposed to do or is doing something that is unsafe, you should:
1. Direct the contractor to comply with the contract requirements,
2. Call your local health or building department, or
3. Call EPA’s hotline 1-800-424-LEAD (5323).
Download guide for handling lead based paints Lead Hazard Information for Landlords, Property Managers and Property Management Companies (1.41Mb pdf)
This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software.
As a landlord, property manager or property management company, there is a responsibility for the safety of the tenants. This means properly preparing for the renovation and keeping persons out of the work area. It also means ensuring the contractor uses lead-safe work practices.
Beginning April 2010, federal law will require that contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, apartments, residential rental properties built before 1978 to be certified and follow specific work practices to prevent lead contamination.
Until contractors are required to be certified, make sure your contractor can explain clearly the details of the job and how the contractor will minimize lead hazards during the work.
1. Ask if the contractor is trained to perform lead-safe work practices and to see a copy of their training certificate.
2. Ask them what lead-safe methods they will use to set up and perform the job in your home, child care facility or school.
3. Ask if the contractor is aware of the lead renovation rules. For example, contractors are required to provide you with a copy of this pamphlet before beginning work. A sample pre-renovation disclosure form is provided at the back of this pamphlet. Contractors may use this form to make documentation of compliance easier.
4. Ask for references from at least three recent jobs involving homes built before 1978, and speak to each personally. Always make sure the contract is clear about how the work will be set up, performed, and cleaned.
5. Share the results of any previous lead tests with the contractor.
6. Even before contractors are required to be certified you should specify in the contract that they follow the work practices described on pages 9 and 10 of this brochure.
7. The contract should specify which parts of your home are part of the work area and specify which lead-safe work practices should be used in those areas. Remember, your contractor should confine dust and debris to the work area and should minimize spreading that dust to other areas of the home.
8. The contract should also specify that the contractor clean the work area, verify that it was cleaned adequately, and re-clean it if necessary.
Once these practices are required, if you think a worker is failing to do what they are supposed to do or is doing something that is unsafe, you should:
1. Direct the contractor to comply with the contract requirements,
2. Call your local health or building department, or
3. Call EPA’s hotline 1-800-424-LEAD (5323).
Download guide for handling lead based paints Lead Hazard Information for Landlords, Property Managers and Property Management Companies (1.41Mb pdf)
This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software.
Landlord Quick Tip #45
Landlord Quick Tip
Tip #45: Do the Math
In this economy, you may be one of many landlords sitting with vacancies longer than usual.
One key to quick rental is setting the right rent.
If you start out too high, you scare away prospects at a critical time. The result: another month’s vacancy.
If you are in a high-vacancy market, consider lowering the rent slightly before you advertise the unit. It may save you in the long-run.
Here’s an example:
If units like yours are going for $750, your daily prorated rent is $25. Offer the unit for $725, and you just may get a better selection of applicants. You “lose” $300 over the term of a 12 month lease ($25 x 12), versus losing $750 if your unit sits vacant for another month.
You can also offset the reduction if you lease for 6 months, and increase the rent at renewal — maybe the market will have improved by then!
Tip #45: Do the Math
In this economy, you may be one of many landlords sitting with vacancies longer than usual.
One key to quick rental is setting the right rent.
If you start out too high, you scare away prospects at a critical time. The result: another month’s vacancy.
If you are in a high-vacancy market, consider lowering the rent slightly before you advertise the unit. It may save you in the long-run.
Here’s an example:
If units like yours are going for $750, your daily prorated rent is $25. Offer the unit for $725, and you just may get a better selection of applicants. You “lose” $300 over the term of a 12 month lease ($25 x 12), versus losing $750 if your unit sits vacant for another month.
You can also offset the reduction if you lease for 6 months, and increase the rent at renewal — maybe the market will have improved by then!
Monday, February 22, 2010
11 Benefits of Being Positive by Jon Gordan
11 Benefits of Being Positive
Over the years I've done a lot of research on the positive effects of being positive and the negative affects of being negative. The research is clear. It really does pay to be positive and the benefits include enhanced health and longevity, happiness, career advancement, athletic performance, team building and financial success. Being positive is not just a nice way to live. It’s the way to live. In this spirit here are 11 benefits of being positive.
1. Positive People Live Longer - In a study of nuns, those that regularly expressed positive emotions lived on average 10 years longer. (The Nun Study)
2. Positive work environments outperform negative work environments. (Daniel Goleman)
3. Positive, optimistic sales people sell more than pessimistic sales people. (Martin Seligman)
4. Positive leaders are able to make better decisions under pressure. (Heartmath.org)
5. Marriages are much more likely to succeed when the couple experiences a 5 to 1 ratio of positive to negative interactions whereas when the ratio approaches 1 to 1, marriages are more likely to end in divorce. (John Gottman)
6. Positive people who regularly express positive emotions are more resilient when facing stress, challenges and adversity. (Several Studies)
7. Positive people are able to maintain a broader perspective and see the big picture which helps them identify solutions where as negative people maintain a narrower perspective and tend to focus on problems. (Barbara Fredrickson)
8. Positive thoughts and emotions counter the negative effects of stress. For example, you can't be thankful and stressed at the same time. (Several Studies)
9. Positive emotions such as gratitude and appreciation help athletes perform at a higher level. (Heartmath.org)
10. Positive people have more friends which is a key factor of happiness and longevity. (Robert D. Putnam)
11. Positive and popular leaders are more likely to garner the support of others and receive pay raises and promotions and achieve greater success in the workplace.
Over the years I've done a lot of research on the positive effects of being positive and the negative affects of being negative. The research is clear. It really does pay to be positive and the benefits include enhanced health and longevity, happiness, career advancement, athletic performance, team building and financial success. Being positive is not just a nice way to live. It’s the way to live. In this spirit here are 11 benefits of being positive.
1. Positive People Live Longer - In a study of nuns, those that regularly expressed positive emotions lived on average 10 years longer. (The Nun Study)
2. Positive work environments outperform negative work environments. (Daniel Goleman)
3. Positive, optimistic sales people sell more than pessimistic sales people. (Martin Seligman)
4. Positive leaders are able to make better decisions under pressure. (Heartmath.org)
5. Marriages are much more likely to succeed when the couple experiences a 5 to 1 ratio of positive to negative interactions whereas when the ratio approaches 1 to 1, marriages are more likely to end in divorce. (John Gottman)
6. Positive people who regularly express positive emotions are more resilient when facing stress, challenges and adversity. (Several Studies)
7. Positive people are able to maintain a broader perspective and see the big picture which helps them identify solutions where as negative people maintain a narrower perspective and tend to focus on problems. (Barbara Fredrickson)
8. Positive thoughts and emotions counter the negative effects of stress. For example, you can't be thankful and stressed at the same time. (Several Studies)
9. Positive emotions such as gratitude and appreciation help athletes perform at a higher level. (Heartmath.org)
10. Positive people have more friends which is a key factor of happiness and longevity. (Robert D. Putnam)
11. Positive and popular leaders are more likely to garner the support of others and receive pay raises and promotions and achieve greater success in the workplace.
Friday, February 19, 2010
Accepting Late Payments Can Land You in Court by Bill Gray
Accepting Late Payments Can Land You in Court
by Bill Gray
There are many reasons why you shouldn’t allow a tenant to pay rent late, but the legal implications must always be at the top of the list.
Unfortunately, by being the nice guy or gal, and accepting late rent payments, you might be establishing grounds for a Fair Housing lawsuit.
Last year, I sat in on a seminar given by Milwaukee landlord-tenant attorney Tristan Pettit, where I learned that case law has been established that says you cannot accept late payments from one tenant and not accept late payments from another.The Fair Housing Act makes it illegal to “set different terms, conditions, or privileges for sale or rental.” By accepting late payments from one tenant and not another, you may be violating the law.
Any trip to court can be precarious and expensive in terms of time and money. You can never be certain of what the outcome of a court case or dispute is going to be. Any good attorney will tell you that avoiding court altogether is always preferred.
To compound the issue of being sued for a Fair Housing violation, consider what you are doing to the terms of your lease by habitually accepting late rent. Let’s say your lease requires the rent to be paid by the third of the month. But for the last six months, you have accepted the rent on the fifteenth.
Suddenly, in the seventh month you put your foot down and demand the rent be paid by the third, but the tenant ignores you and continues to pay the rent on the fifteenth. In the eight month, you file for eviction when the tenant again is late with his or her rent.
If the tenant were to hire a savvy attorney to represent them, the attorney could easily argue that you had amended the terms of the lease by accepting the rent late the first six months of the lease. Not only could this force you to continue accepting the rent, it could cause a counter suit.
Enforce the terms of the lease and require that the rent be paid on time—from each and every tenant. Doing so may keep you out of court.
The information contained in this article is provided for informational purposes only, and should not be construed to be legal advice. Consult a local landlord-tenant attorney to discuss your specific situation.
Copyright 2010 Bill Gray
Bill Gray is a tenant debt collection specialist, which makes him a tenant screening specialist. For tenant debt concerns, email him at Bill@thelandlorddoctor.com. Visit Bill Gray’s blog at TheLandlordDoctor.com.
See our seven part series, Vital Tips to Increase Your Debt Collection.
See Bill Gray’s feature, Tenant Screening Tips: Beyond the Basics.
by Bill Gray
There are many reasons why you shouldn’t allow a tenant to pay rent late, but the legal implications must always be at the top of the list.
Unfortunately, by being the nice guy or gal, and accepting late rent payments, you might be establishing grounds for a Fair Housing lawsuit.
Last year, I sat in on a seminar given by Milwaukee landlord-tenant attorney Tristan Pettit, where I learned that case law has been established that says you cannot accept late payments from one tenant and not accept late payments from another.The Fair Housing Act makes it illegal to “set different terms, conditions, or privileges for sale or rental.” By accepting late payments from one tenant and not another, you may be violating the law.
Any trip to court can be precarious and expensive in terms of time and money. You can never be certain of what the outcome of a court case or dispute is going to be. Any good attorney will tell you that avoiding court altogether is always preferred.
To compound the issue of being sued for a Fair Housing violation, consider what you are doing to the terms of your lease by habitually accepting late rent. Let’s say your lease requires the rent to be paid by the third of the month. But for the last six months, you have accepted the rent on the fifteenth.
Suddenly, in the seventh month you put your foot down and demand the rent be paid by the third, but the tenant ignores you and continues to pay the rent on the fifteenth. In the eight month, you file for eviction when the tenant again is late with his or her rent.
If the tenant were to hire a savvy attorney to represent them, the attorney could easily argue that you had amended the terms of the lease by accepting the rent late the first six months of the lease. Not only could this force you to continue accepting the rent, it could cause a counter suit.
Enforce the terms of the lease and require that the rent be paid on time—from each and every tenant. Doing so may keep you out of court.
The information contained in this article is provided for informational purposes only, and should not be construed to be legal advice. Consult a local landlord-tenant attorney to discuss your specific situation.
Copyright 2010 Bill Gray
Bill Gray is a tenant debt collection specialist, which makes him a tenant screening specialist. For tenant debt concerns, email him at Bill@thelandlorddoctor.com. Visit Bill Gray’s blog at TheLandlordDoctor.com.
See our seven part series, Vital Tips to Increase Your Debt Collection.
See Bill Gray’s feature, Tenant Screening Tips: Beyond the Basics.
Tuesday, February 16, 2010
Landlord Quick Tip #43
Landlord Quick Tip
Tip #43: Snowmageddon!
With 49 states experiencing snow this winter, (lucky Hawaiians!), many rental property owners are now facing the ugly side of Old Man Winter – ice damming.
Ice dams occur when the top of a roof is warmer than the bottom. As snow or ice melts from the top and rolls downward, the water cools and then re-freezes near the bottom. If the weather stays cold, the dams builds in size, and ultimately shove water up under the shingles and into the house, damaging the interior.
Unfortunately, doing nothing is not a good option.
Ice damming is one of a property owner’s biggest headaches, in part because it happens when the roof is too icy to access safely.
The trick to eliminating ice dams is to keep the roof temperature consistent. While there are heated de-icing kits available, it may be easier to keep the roof consistently cold rather than hot.
Check your roof for ice dams. The location of the dams gives you an indication of the source of the problem.
Find out why your attic is releasing heat onto the roof – the insulation may be packed too tightly to allow proper ventilation, or there may be air leaks around vents, for instance.
Consider cooling the attic down with fans.
Find out why the heat from the house is escaping into the attic in the first place.
Unfortunately, your best option may involve a roofing re-do this spring.
Tip #43: Snowmageddon!
With 49 states experiencing snow this winter, (lucky Hawaiians!), many rental property owners are now facing the ugly side of Old Man Winter – ice damming.
Ice dams occur when the top of a roof is warmer than the bottom. As snow or ice melts from the top and rolls downward, the water cools and then re-freezes near the bottom. If the weather stays cold, the dams builds in size, and ultimately shove water up under the shingles and into the house, damaging the interior.
Unfortunately, doing nothing is not a good option.
Ice damming is one of a property owner’s biggest headaches, in part because it happens when the roof is too icy to access safely.
The trick to eliminating ice dams is to keep the roof temperature consistent. While there are heated de-icing kits available, it may be easier to keep the roof consistently cold rather than hot.
Check your roof for ice dams. The location of the dams gives you an indication of the source of the problem.
Find out why your attic is releasing heat onto the roof – the insulation may be packed too tightly to allow proper ventilation, or there may be air leaks around vents, for instance.
Consider cooling the attic down with fans.
Find out why the heat from the house is escaping into the attic in the first place.
Unfortunately, your best option may involve a roofing re-do this spring.
Friday, February 12, 2010
Quick Tip #42
Landlord Quick Tip
Tip #42: They’re Taking Names!
2010 is a U.S. Census year. Every household is required to answer a census questionnaire.
That includes your renters, so landlords and property managers need to know the rules.
Questionnaires will be mailed out to individual households in March, and responses are due back April 1.
If a tenant does not respond to the government questionnaire, they may get a visit from a census worker. That probably won’t happen until late spring or summer.
Landlords and property managers in multi-family buildings have to allow access for census workers to buzz or knock on front doors of specific tenants who have not responded to the census mailing. The census worker may have to return a number of times to catch the person at home. They must be allowed repeated visits, but their requests for access have to be reasonable.
If the census worker is unable to contact the tenant after repeated attempts, the landlord or property manager may be asked to provide demographic information about that unit.
The 2010 Census has several parts, or surveys, going on at once. Only the 2010 Census and the American Community Survey are mandatory. You do not have to allow access for others.
Obviously, this census process will bring out identity thieves and other criminals who will pretend to be census workers to gain access to your tenants.
Here are some tips to help you confirm that a census worker is legit:
Before you allow entry, you have the right to ask for ID. Workers are issued a government badge. Cross-check the badge with personal photo ID.
You can call the National Processing Center to verify the person’s employment. Try 1-800-923-8282 – you may be transferred to a different office. There will be a number of regional offices as well, but be careful if you get the verification phone number from the person you are trying to verify.
Ask them to tell you the specific name of the survey – cons don’t always do their homework.
Ask for proof that they are carrying a confidentiality statement with them – they are required to read it to each person they interview.
Make sure they have something with them to record data. This year, most census workers will be using hand-help computers.
You may see a bag, probably black, with “U.S. Census Bureau” printed on it.
Census workers will not request to come inside the unit.
Census workers will not request personal financial info or SSN’s — they may ask for general income data.
Be suspicious for those who ask to “canvas” – knock on random doors, or need to meet with quite a few renters.
Watch for someone who demands immediate access without time to call to verify or otherwise throws their weight around – threatens to have you arrested, for instance.
And don’t forget to fill out your own questionnaire — or you’ll have a census worker at your door.
Tip #42: They’re Taking Names!
2010 is a U.S. Census year. Every household is required to answer a census questionnaire.
That includes your renters, so landlords and property managers need to know the rules.
Questionnaires will be mailed out to individual households in March, and responses are due back April 1.
If a tenant does not respond to the government questionnaire, they may get a visit from a census worker. That probably won’t happen until late spring or summer.
Landlords and property managers in multi-family buildings have to allow access for census workers to buzz or knock on front doors of specific tenants who have not responded to the census mailing. The census worker may have to return a number of times to catch the person at home. They must be allowed repeated visits, but their requests for access have to be reasonable.
If the census worker is unable to contact the tenant after repeated attempts, the landlord or property manager may be asked to provide demographic information about that unit.
The 2010 Census has several parts, or surveys, going on at once. Only the 2010 Census and the American Community Survey are mandatory. You do not have to allow access for others.
Obviously, this census process will bring out identity thieves and other criminals who will pretend to be census workers to gain access to your tenants.
Here are some tips to help you confirm that a census worker is legit:
Before you allow entry, you have the right to ask for ID. Workers are issued a government badge. Cross-check the badge with personal photo ID.
You can call the National Processing Center to verify the person’s employment. Try 1-800-923-8282 – you may be transferred to a different office. There will be a number of regional offices as well, but be careful if you get the verification phone number from the person you are trying to verify.
Ask them to tell you the specific name of the survey – cons don’t always do their homework.
Ask for proof that they are carrying a confidentiality statement with them – they are required to read it to each person they interview.
Make sure they have something with them to record data. This year, most census workers will be using hand-help computers.
You may see a bag, probably black, with “U.S. Census Bureau” printed on it.
Census workers will not request to come inside the unit.
Census workers will not request personal financial info or SSN’s — they may ask for general income data.
Be suspicious for those who ask to “canvas” – knock on random doors, or need to meet with quite a few renters.
Watch for someone who demands immediate access without time to call to verify or otherwise throws their weight around – threatens to have you arrested, for instance.
And don’t forget to fill out your own questionnaire — or you’ll have a census worker at your door.
Landlord Checking Up on Their Tenants by Benny Kass
How Can a Landlord Check Up on Tenants?
by Benny Kass, Inman NewsDEAR BENNY: When does a landlord have the right to enter one of his rental properties? For example, the smoke detector was going off and the renters were away for the weekend. Or the lease says that three adults can live on the property, yet the landlord knows that four adults are now living on the premises. Can a landlord enter the property (without the consent of the renters) at any time? –Barbara
DEAR BARBARA: While I do not know the laws in every state, I suspect they are the same. You — as a landlord — own the property and clearly have the right to enter the property.
However, most leases I have reviewed contain the following language: “The landlord shall have the right to enter onto the property for any reason on reasonable advance notice to the tenant; however, in the event of an emergency, the landlord may enter at any time.”
Some leases spell out what a “reasonable time is” — such as 24- or 48-hour advance notice. So, review your lease. It may contain such language, and if it does not, your future leases should have it. And if your lease is silent, I suggest you follow the guidelines of the language of those common leases.
But let’s look at your two examples. If the smoke detector is ringing and the tenants are not at home, I consider this an emergency, which would give you the right to enter without notice. But to check on the number of tenants living at the property, in my opinion, is not an emergency.
I suspect you will respond and say, “Well, if I have to give them advance notice, when I show up they will hide the fact that there is another tenant in the property.” Yes, that’s a possibility, but even though you are the landlord, your tenants deserve a modicum of privacy.
Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. Questions for this column can be submitted to benny@inman.com.
Copyright 2010 Benny L. Kass
See another Benny Kass feature, No Capital Gains Tax on Home Exchange?
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