Cheryl Donato's Blog

Landlord Tip #95

2011-03-05T10:17:00.000-05:00

Tip #95: Do You Have My Back?
From bedbugs to building flaws, landlords get blamed for everything, and trigger-happy tenants are eager to stir up legal trouble in the hopes of wiggling off the hook for rent. Profit margins are already tight, and defending a lawsuit can blow a landlord right out of the water — even if they ultimately prevail.
Insurance coverage is a must-have for landlords.
It’s a good idea to meet with your insurance agent periodically to go over your specific coverage. Get them up to speed on any changes you’ve made to the property, any planned repairs or remodeling, and seek their advice on lowering your risks in this climate of lawsuits.
That way, you will have the coverage you need when you need it. And who knows–you may even find some ways to reduce your costs.

Repair or Buy: How to Decide Whether to Fix Your Appliances

2011-03-05T10:15:00.000-05:00

There’s a time in the lifespan of every appliance when you’re forced to ask that dreaded question: Is it really worth fixing? While ultimately that decision is between you and your dryer or dishwasher or hot water heater, there are a few ways to determine if a quick call to the repairman is better than dipping into savings.

How old is the appliance?

Most major appliances are designed to last anywhere from 10 to 20 years. While no guarantee that your appliance is going to last that long, if the equipment is far below its life expectancy, you may want to consider fixing. Even older machines may still have a lot of life left, but keep in mind that parts may become harder to find in the future.

How much will it cost to fix?

The repairman’s rule of thumb is that if repairs will cost more than half of the cost of a new appliance, go for the new one. But when considering the costs, remember that the new appliance cost soars above the sticker price when you add on delivery, installation and removal of your old appliance. It’s not uncommon to pay $100 or more for installation. On the other hand, remember that new, energy-saving models can help recoup the investment of a new machine in utility bills.

Are the new models made as well as your old one?

Modern appliances are decked out with innumerable gadgets and features. And while the leading technology can make appliances even more convenient, it can also amount to a costly and intricate repair. If your simple and older appliance can still do the trick, it may be worth the TLC to get a few more years out of it. By the time you are ready to buy, manufacturers will have worked out any kinks in that cutting-edge technology.

Can you repair it yourself?

Naturally, some jobs are best left to professionals—any time you smell gas, for instance. But many fixes don’t require a repairman. Check pilot lights and fuse boxes. Clean vents and coils of dust and debris. Replace belts and unclog blockages. Home improvement stores offer classes in do-it-yourself home repair and there are how-to resources online. If you do call a repairman, be sure to get a warranty for the work.

This information is provided by Jacob Martinez, Spokane Appliance Repair, open 24/7, providing major appliance repair, air conditioning and heating service in Spokane and Coeur d’Alene. Service call is free with the repair. Call 509 207-7138 for more.

Lanlord Tip #88 Information Overload

2011-01-04T11:34:00.001-05:00

If you are forever trying to remember passwords or wasting time logging on to website accounts, consider RoboForm – one of PC World’s “25 Things We Can’t Live Without.”
This service allows property managers to store tenant and vendor contact information, passwords and security codes, and other data for frequently-visited websites.
This system remembers all of your logins so you don’t have to. Access your favorite sites quickly and securely.
Save time with easy one-click form filling. RoboForm Password Manager will automatically fill in your data on almost any web form. No more needless typing.
Whether you are on your desktop, laptop, netbook, or mobile device, you can always securely access RoboForm Password Manager from anywhere.
And don’t worry about security: RoboForm is itself password-protected.

Meet the Neighbors

2010-12-26T04:41:00.002-05:00

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.

Landlord Qick Tip #56 Join the Circle

2010-05-18T09:11:00.000-04:00

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

Using Facebook as a Tenant Screening Tool by Janet Portman

2010-05-11T09:20:00.001-04:00

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.

http://www.jongordon.com/newsletter-051010-3waystobeapositiveleader.html

2010-05-10T09:51:00.000-04:00

http://www.jongordon.com/newsletter-051010-3waystobeapositiveleader.html

5 Great Reasons to Move Payments Online!

2010-04-30T10:28:00.001-04:00

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

If you are using "Craigs List" You Must Read This Post!

2010-04-25T10:45:00.000-04:00

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.

April Property Mgmt. Marketing Ideas by: Property Manager.com

2010-04-25T10:26:00.000-04:00

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!

What to Consider When Hiring a Property Management Company by Chris Thorman

2010-04-12T22:36:00.007-04:00

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.

What To Do When Tenants Abandon Their Pets

2010-04-09T08:32:00.002-04:00

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.

Resident Security Deposits-Are You Covered?

2010-04-08T12:40:00.000-04:00

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.

Easter Bunny Eviction Case!

2010-03-31T10:15:00.001-04:00

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.

http://www.jongordon.com/newsletter-032210-5waystothrive.html

2010-03-22T09:16:00.000-04:00

http://www.jongordon.com/newsletter-032210-5waystothrive.html

5 Biggest Mistakes Made by Rental Property Owners by Wallace Gibson

2010-03-19T09:05:00.001-04:00

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.

The Causes of Money by Brian Tracy

2010-03-14T06:15:00.001-04:00

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

Crime-Free Seal of Approval

2010-03-02T10:58:00.000-05:00

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

Reduce Resident Turnover by Gerry G. Banks

2010-02-27T19:20:00.002-05:00

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

New Landlord Regs on Leadbase Paint by SimplifyEm

2010-02-26T10:11:00.002-05:00

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.

Landlord Quick Tip #45

2010-02-26T10:01:00.002-05:00

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!

11 Benefits of Being Positive by Jon Gordan

2010-02-22T13:10:00.000-05:00

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.

Accepting Late Payments Can Land You in Court by Bill Gray

2010-02-19T11:02:00.000-05:00

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.

Landlord Quick Tip #43

2010-02-16T10:34:00.001-05:00

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.

Quick Tip #42

2010-02-12T22:20:00.000-05:00

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.

Landlord Checking Up on Their Tenants by Benny Kass

2010-02-12T22:09:00.002-05:00

How Can a Landlord Check Up on Tenants?

by Benny Kass, Inman News

DEAR 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?

http://www.jongordon.com/newsletter-122809-nofearinthenewyear.html

2009-12-28T16:22:00.001-05:00

http://www.jongordon.com/newsletter-122809-nofearinthenewyear.html

http://www.jongordon.com/newsletter-122109-memorymaker.html

2009-12-21T09:55:00.000-05:00

http://www.jongordon.com/newsletter-122109-memorymaker.html

http://www.jongordon.com/newsletter-121409-10thoughtsaboutleadership.html

2009-12-14T10:50:00.001-05:00

Enjoy these tips to leadership!

http://www.jongordon.com/newsletter-121409-10thoughtsaboutleadership.html

Landlord Quick Tip #23

2009-10-02T09:33:00.000-04:00

Landlord Quick Tip
Tip #23: Build a Tenant File ChecklistWhether it’s doing your taxes, collecting unpaid rent, filing an eviction, or defending a lawsuit for injury or discrimination, what you have — or don’t have, in your files will decide the outcome.
Here’s a good way to organize your tenant files, so you are sure to have the information you need, when you need it:
Copy of your rental ad, notes of initial phone conversation, first tenant meeting
The signed, completed application
The screening reports
Notes from all reference checks– personal, employment and emergency contact verifications
The signed lease
Copy of the first check/s
The signed move-in checklist and any amendments, along with photos, videos (or links to retrieve them)
All correspondence, including phone messages, repair requests, notes of conversations
Repair records
Record of each month’s payments
Tenant updates, including lease amendments, updated credit screens (long-term tenants), updated employment, reference, contact info
Copies of restraining orders, divorce decrees, police reports
Move-out Checklist and Photos/Video
Forwarding address
Security deposit reconciliation
Much of this information is confidential so make sure you keep it private, and safe.
Kudos if you calendar 90 days before move out — so you can take steps to retain your tenant before they start to look around. Remember not to shelve files where there’s unpaid debt — you have years to collect it.
Did we leave anything out? What else do you keep in your tenant files? Comment below if you have more suggestions.
Last week’s Landlord Quick Tip
Do you have a tip to share with other landlords? Contact our editor at kim@joinaaoa.org.

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

2009-09-28T12:10:00.001-04:00

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

Tenant Displaced From Unit Fights For Compensation

2009-09-28T12:00:00.000-04:00

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

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2009-09-21T14:37:00.001-04:00

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New Law Requires Pool, Spa Upgrade by Phillip Miller

2009-09-18T13:09:00.000-04:00

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

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

2009-09-10T11:05:00.000-04:00

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

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

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

Landlord Quick Tip #20 Provided by AAOA

2009-09-09T09:44:00.000-04:00

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

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

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

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

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

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

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

2009-09-09T09:36:00.000-04:00

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

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

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

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

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

See our Green Forum for more energy savings tips.

Current Market Conditions by Howard Bell

2009-08-28T09:49:00.000-04:00

Current Market Conditions
Apartment Vacancy Rate Hits Two-Decade Record

by Howard Bell

The economy’s decline leveled off significantly from April through June, confirming that the worst is behind us. GDP declined at an annualized rate of 1% in the second quarter, after shrinking an amazing 6.4 % earlier this year.But consumer spending, 70% of economic activity, continues to fall as Americans continue to save and reduce debt. Economists express concern that our basic spending habits have been permanently altered by this great recession. This is also having an effect on rentals as renters downsize or insist on rent reductions.With this as a backdrop we looked at rental rates which are a prime factor in evaluating a property. We clearly have a long way to go. The Dept. of Commerce chart indicates we are at a fragile beginning of a recovery. The key to successful property ownership now will be to keep it occupied and ride this out.Apartments.com StudyRent reductions at a 22 year highIn the second quarter the vacancy rate of 7.6% was an increase of 1.5% YOY. Landlords have been facing rising opposition to rent rates agreed to during the boom years. Tenants everywhere are asking for and getting rent reductions. Rents are in decline in every market nationwide in the current quarter with three with marginal exceptions, Tampa, Kansas City and San Antonio.According to an Apartments.com study: For the first time in six years, rents are down nationwide and vacancies are up.
Adding to this market pressure is competition felt from the shadow market or a surge of investor owned homes and condos that account for almost half of the rental stock, expanding the national rental supply.
Despite these recent obstacles, a national Apartments.com survey found that an overwhelming majority of renters are still looking for a new place to live this year and more than half are planning to pay the same or more in rent. (via Reuters) What To Do About Rent ReductionsTenant RetentionIf your are facing rent reductions and you want to retain the tenant, then ask for a new lease. In the 2001 recession, unemployment didn’t really recede for 18 months after the recession was technically over. Tenant retention locked in with a new lease is good strategy and will help you ride out this great recession.How to Rent it FasterStage it. Home staging for a rental plays the same role as staging for a sale. Painting the interior a light neutral color, is an inexpensive way to get a new and clean look and feel. Tired looking places take longer to rent. Leave lights on in each room, and leave blinds open to make rooms look brighter and larger.Sell it. Renting your unit or home is a sales process. Walk through the house as if you were a renter. Consider the negatives and be ready with answers that overcome its shortcomings. Be ready to talk up its features. Create a checklist of the things you like about the house. Use it to sell potential tenants. Check comparable rents with listing sites such as apartment.com or Craigslist. Consider consulting with a professional property manager to determine the right rent range if you still have difficulty.Focus Your AdvertisingUse Print TooConsider the profile of the people you are trying to reach and then advertise in the places where they would be likely to look for a rental unit. If you are renting that basic apartment or studio, you have a good chance of attracting people in need of a lower monthly rent. Think students or people starting out or starting over.Targeting your advertising you will save days on market. University campuses, free neighborhood papers, postings in local supermarkets or coffee houses might be the best place to reach that person.Of Course, the InternetIf you don’t have a professional website you could use the blogs. Sites such as blogger or even Facebook have become so easy to use that you might consider a page for your rental property that features a slide show of vacancies as they come up.As you receive phone calls you might ask them to go to your marketing page slide show and create an interactive conversation right there.Howard Bell PFP CCRM is the founder/editor of Your Property Path.com, featuring over 450 articles on property management, Your Property Path SF, trade talk for the San Francisco real estate industry, Your Property Path News Brief, snap news updates and real estate market info, and Your Property Path Amazon Store. Howard is a property manager in San Francisco and holds a certification in financial planning.See Howard Bell’s feature, New Home Equity Mortgage Available.

Social Networking Sites Report More Baby Boomers/Written by Jeremiah Owyang

2009-08-26T17:45:00.001-04:00

Social Networking Sites Report More Baby Boomers
“Baby boomers aren’t technology Luddites. More than 60 % of them consume socially created content. You’ll find them leaving their opinions on Web sites and joining social networks.”- Jeremiah K. Owyang (@jowyang), researcher with Forrester Research
There is this perception that adults over 50 only dabble on the Internet, but research is finding that they are spending more time online and interacting in robust social networking communities. Baby boomers using social networking sites such as Facebook™, MySpace™, LinkedIn®, Twitter and YouTube™ are not as uncommon as you may think.
According to The Pew Internet and American Life Project, boomers now account for 35% of all Americans online. A consumer survey of U.S. consumers, from the NPD group, Inc., a leading provider of reliable consumer research, shows that 61% of baby boomer Internet users (age 44 to 61) had visited sites that offer streaming or downloadable video, while 41% had visited social networks.
Baby boomers are finding social networking sites appealing for the same reasons most people do- to stay in touch with people. They are interested in reconnecting with old friends and classmates whom they haven’t talked to in more than 30 years. They enjoy sharing photos with family and friends and staying connected to their children and grandchildren. High school and college reunions are also being organized via Facebook. Nielsen Reports that moms (aged 40-50 with 3+ children) are heavy online shoppers who stay connected via social networking more so than mom’s 39-54. Some are even replacing e-mail with social networking sites for staying in touch with people on an ongoing basis. In addition to sites like Facebook, MySpace and LinkedIn, they are also using boomer-specific sites like eons.com, boommj.com, boomertowne.com and the aarp.org social network. According to Facebook, women over 55 remain the fastest growing group on the site, and growth among the teen and college-age set has been relatively paltry. In absolute numbers there are now even slightly more members between the ages of 45 and 65 than there are 13-to 17-year-olds. Analytics company iStrategyLabs has examined the demographics stats from Facebook’s Social Ads platform, and they have found staggering results. Interestingly, they found that the number of users aged 25-34 has grown 60.8%; the number of users aged 35 to 54 has grown 190.2%, while the number of users older than 55 years has grown a tremendous 513.7%.
Baby boomers are making themselves known in the social media space of the online world. Marketers who neglect to speak to them in the language they are now adapting to will miss out on a rewarding opportunity!
Tags: after 55, Baby Boomers, baby boomers social media, communities, community, Facebook, forrent.com, interests, leads, marketing, media, myspace, online, senior outlook, Seniors, seniors online, Social Networking, Twitter, videos, women, youtube
This entry was posted on Wednesday, August 26th, 2009 at 8:42 am and is filed under Property Managers & Owners, Senior Housing-An After 55 Housing and Resource Guide. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Reporting a Tenant to the Credit Bureaus/Written by the Landlord Doctor Bill Gray

2009-08-26T10:02:00.002-04:00

Reporting Previous Tenant Debt to Major Credit Bureaus
What happens if you do not pay your doctor, cell phone, or utility bill? You will not only receive some less than friendly phone calls, but your debt will also be reported to Experian, Equifax, and TransUnion. These major credit bureaus will then ding your credit report to show that you owe money, and most debts will remain as a collection account for up to seven years!
Why do companies go to the trouble of reporting these debts? They do it because reporting the debt to the credit bureaus makes it difficult for the debtor to obtain credit, thus increasing the possibility they will get paid the money they are owed. It may also lower FICO scores. If it did not work, trust me, they would not bother reporting.
So why don’t landlords report previous tenants that owe them money to the credit bureaus? It cannot be a matter of cost or a lack of time because reporting is very inexpensive and easy to do. Either landlords don’t know they can report, or they are apathetic about it.
Don’t assume because you sued the tenant and received a money judgment that the money you are owed will show up on one’s credit report. Many simply do not, due to simple clerical errors. You would be surprised at the number of evictions that don’t show up either. Make sure the debt is entered on the credit report as a collection account by putting it there yourself.
In today’s economy, we need every penny of profit we can find. I promise you there are millions of dollars in uncollected tenant debt just sitting in filing cabinets. I bet you have some yourself. This is lost profit, a percentage of which is recoverable.
Up to 50% of tenant debt is recoverable if it is reported to the credit bureaus. Of course, none of it is recoverable if you leave it in your desk drawer. So dust off those old files of previous tenants who owe you money. Report them to the credit bureaus and begin collecting some much needed profit.
To begin reporting tenant debt to all three credit bureaus click here: Start Reporting Now!

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2009-08-24T10:10:00.001-04:00

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Mobile Tipping Point: Beyond Voice

2009-08-21T14:23:00.001-04:00

Mobile Tipping Point: Beyond Voice

Your cell phone is evolving into a business productivity tool…

In the early days of cell phones, they were used merely for talking. Today, cell phones have a myriad of other applications. For many people, their cell phone is their daily organizer, music player, camera, GPS system, and news and weather device. But that’s just the tip of the iceberg. In the very near future, cell phones will also be people’s banks, credit card, keys, remote control, and video conferencing platform, just to name a few. Clearly, today’s cell phones are much more than phones, and tomorrow’s will revolutionize the business world.

In order to stay competitive and ahead of the curve, businesses need to look beyond what the cell phone is today and anticipate where it will be tomorrow. You have to ask yourself, “How is the cell phone changing my customers?” “What new service could I deliver on a mobile platform?” Or, “How are these beyond-voice-capabilities changing my customers’ customers?”

The fact is that if you don’t change with your customers, they won’t be your customers for much longer. For most businesses, their customers are changing rapidly. Are you changing and learning as fast as your customers are?

Because today’s technology is rapidly evolving, you have to go beyond keeping up. Merely keeping up will cause you to always be behind. Rather, you need to jump ahead based on what you know will happen.

What do you know will happen? We know there are three driving forces that create exponential technological change: 1) Processing power doubles every 18 months as it drops in price, 2) Storage capacity doubles, and 3) We get faster speeds and higher bandwidth. Because of the processing power being faster, your cell phone can go online and perform searches faster. Phone companies are continually upgrading their network so the 3G network becomes the 4G network. In less than a year processing power, storage capability, and speed have all doubled, and next year they will double again, making the cell phone as powerful as your current desktop computer.

Additionally, businesses need to look at other countries to see what they’re doing. As Americans, we tend to think we’re the first with technology, but that isn’t always the case (and it’s definitely not the case with cell phones). Whereas we have multiple standards for cell phone technology, many other countries have one national standard so everyone’s phone works the same way. As such, they can roll out new cell phone innovations much faster than we can.

Culture also plays a big role. The Japanese culture, for example, loves their devices and prefers using them over face-to-face conversation. So they have more cultural incentive to unveil the next cell phone use.

The bottom line is smart businesses will start seeing the certainty of technological change of cell phones and will recognize the opportunities that lie within. Following are some current and coming cell phone uses you need to be aware of and using.

Current uses:

· Mobile travel: Currently, some airports allow you to use your cell phone as your boarding pass. You simply download your boarding pass to your phone.When you approach security, you pull up the barcode of your virtual boarding pass and swipe your cell phone under security’s scanner. You can then go through security and board your plane without a paper ticket. Such technology saves your employees’ time when traveling and eliminates the last minute “where did I put my boarding pass” search.

· Mobile media: You probably already have music on your cell phone, and you may even have television programming. But now businesses can disperse training and education to employees as part of that mobile media. So while an employee is waiting in an airport for a flight, she can download the latest training information right from her phone.

· Mobile management: Need to know where your salespeople or delivery drivers are at all times? We all have triangulation or GPS as part of our cell phones. There are programs, such as Looped for the iPhone that allow you, with permission, to bring up a map and see where your employees are located right now. Granted, this program was developed for personal use, so that friends and family could see where each other are, but there’s no reason why a business couldn’t use it to locate employees, drivers, or anyone else who leaves the office for extended periods of time.

Future uses:

· Mobile finance: In the near future, you’ll be able to do banking on your cell phone, such as doing money transfers to other people. How do we know this? Because other countries are already doing it! For example, in Kenya, where we assume everything is behind the times, they have a mobile phone system where if someone owes you money, he can use his cell phone to transfer money from his account to yours. As the technology makes its way to the States, cell phones will become a vital part of people’s banking.

· Mobile commerce: There are places in the world where you can pay for your restaurant, auto service, groceries, parking meters, or any other item with your cell phone - without using a credit card. You’re simply using your mobile phone to pay for the transaction. To prevent fraud, cell phones will have biometric ID capabilities that can detect everything from the user’s fingerprint to voice pattern and facial recognition. Such measures are actually far more secure than using a credit card.

· Mobile customer service: As mega stores dominate the landscape, shoppers need more access to customer service personnel. Imagine a customer being in a huge warehouse type store and being able to use her cell phone to pull up a map of the store and locate the nearest customer service person. Or, even better, imagine that customer being able to touch an icon on her cell phone screen, which automatically lets the customer service rep know where she is and that she needs help. The technology to do this exists today; it’s simply a matter of businesses applying it to this scenario. Imagine the competitive advantage you’d gain if you were the first to roll this concept out.

Opportunity is Calling

The possibilities for tomorrow’s cell phones are limitless: Mobile data … mobile media … mobile finance … mobile commerce … mobile health … mobile marketing … mobile security … mobile location services - these are just the beginning. Over the next few years, cell phone apps (applications) will grow exponentially as well. We’ll see apps for specific segments, such as doctors, lawyers, real estate agents, etc. To stay ahead, your company needs to develop internal tools or apps for your employees that can give your organization competitive advantage, such as an app so salespeople can access key data right on their phone. Developing an app is relatively inexpensive and can work on iPhones, Blackberries and Smartphones.

Ultimately, as we move into the future of cell phone technology, the goal is to get businesspeople to not just crisis manage in the present, but to opportunity manage for the future. When you can start viewing your cell phone in that capacity, you’ll be connected to a whole new world of business that can make a significant impact on your company’s bottom line.

About the Author:

Dan Burrus is considered one of the world’s leading technology forecasters and strategists. He is the founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology driven trends to help clients better understand how technological, social and business forces are converging to create enormous, untapped opportunities. Dan has developed the first cell phone business application that allows the user to generate a business plan; the “Competitive Advantage Business Strategy Builder” will be launched in September 2009. For more information, please visit: http://www.burrus.com/.

Landlord too Lax on Noise Enforcement

2009-08-21T11:13:00.000-04:00

Landlord Too Lax on Noise Enforcement
Is poor management a valid reason to break lease?by Robert Griswold
Q: I have a question about noise. I live on the ground floor of a four-story “luxury” apartment community. We have a “quiet hours” clause written in all of our leases that states residents must be quiet from 10 p.m. to 6 a.m. The tenants who just moved in above me, a family of four, make a lot of noise between 11 p.m. and 2 a.m. almost every night.
I’ve informed the landlord and even bought a video camera to record the noises along with the times. I’ve shown several tapes to the landlord and he agrees that the noises (which include children screaming, running around, thumping, thuds and loud banging noises, in addition to foot traffic) are excessive. However, the tenants have continued virtually unabated with their noise-making.
What do I do if the landlord is unwilling or unable to stop them from waking me up in the middle of the night? I usually have to call security three nights a week. I have more than six months left on my current lease, but do I have grounds to break my lease early? Can I ask that they be given an eviction notice? Do I have grounds for breaking the lease early without penalty? For the last two months I haven’t been getting much sleep and I don’t know what to do.

A: One of the most prevalent complaints received by landlords is about the noise level created by another tenant. Such complaints are very challenging and a source of frustration for both landlords and tenants. A certain amount of noise is expected and must be tolerated when living in a multifamily apartment community. However, tenants need to be courteous and considerate of their neighbors.
Noise complaints are one of those issues that I believe require an escalating level of response. Ideally, just contacting your neighbor directly and asking them to be courteous should resolve the matter. But if that doesn’t work, then you were correct in contacting the landlord to see if he can intervene. The landlord already has a “quiet hours” policy so he certainly is aware of this issue and seems to agree that excessive noise is unacceptable.
The first step by the landlord or onsite property manager would be to make a phone call and ask the tenant directly but politely to be sensitive to others and keep the noise down as much as possible. If that doesn’t work, then the landlord should make a written formal request of your upstairs neighbor to cease and desist from any activity that could be disruptive. This written notice should be on a proper legal Notice of Breach of Lease form and cite the failure of the tenant to abide by the “quiet hours” policy.
If all else fails, you may want to contact your local municipality to see if it has noise ordinances, and make a formal written complaint. Many times these policies will require more than a single incident of excessive noise before they will take action. I have also seen municipal policies requiring that at least two or more neighbors be willing to file a formal complaint before the municipality will formally investigate the alleged noise violation.
If you are not able to resolve the issue with any of the above methods and are still interested in breaking your lease, then you should talk to your manager and point out that you believe the landlord has breached the lease agreement by failing to enforce their own “quiet hours” policy. You may find that the landlord is agreeable and will let you mutually agree to break the lease. However, if the landlord takes the position that you cannot break the lease, I would suggest you contact a local tenant-landlord attorney who can review your lease and will know the local laws and can advise you on the best way to proceed.
A lease is a formal legal document and you should be very careful and get proper legal advice before deciding that you will simply not honor this legally binding contract. I know that many tenants will just move out and are thoroughly convinced that the landlord has breached the lease but could find that the landlord disagrees and takes them to court seeking the balance of the lease payments — and then the tenant has to prove that the lease was indeed breached, and it can be difficult unless you have proper evidence.
I know you have video-camera evidence but that could be questioned in a court of law, so I feel it is much better if you have third-party verification of the noise complaints from either local law enforcement or a local municipal agency that handles noise complaints.
You indicate that you have contacted the apartment community’s security department several times per week so you can also see if they have been documenting your complaints in writing and see if you can get copies of these reports.
I have also heard that some tenants have successfully pursued small claims court actions directly against the other tenants for excessive noise. While this may be appealing on some level, it is certainly confrontational and could create a very stressful living environment. I would not recommend it, as you shouldn’t have to take the action yourself but should get the cooperation of your landlord or local code enforcement.
This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.”
E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.Copyright 2009 Inman News

See Robert Griswold’s feature, Is $450 Cleaning Charge Legal?

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2009-08-17T12:05:00.001-04:00

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Become a Pet Friendly Environment

2009-08-16T06:43:00.001-04:00

An Owner’s Best Friend
by Mindy Grill
Offering a pet-friendly environment is one way owners can attract and retain residents for the long term.
The stains, smells and noise can convince any apartment owner to avoid leasing to residents with pets. But by properly managing policies to allow animals into communities, apartment owners can make these pets their best friends.
Apartment owners who successfully implement pet policies will be pleased with residents’ renewal rates, along with their willingness to abide by the rules. Meanwhile, resident animal owners have been shown to take pride in maintaining the conditions of their apartment homes while treating their neighbors respectfully.
The unique bond that is created among animal owners helps to foster a sense of community among all residents and invaluable word-of-mouth marketing for pet-friendly communities. The results can be greater occupancy, improved cash flow and hardly a “zoo-like” atmosphere.
“I used to not allow pets at my communities, but eventually realized that I was losing almost half of my prospective resident traffic,” said Jim Stewart, President, Stewart Properties Inc., St. Louis, who spoke as part of a panel discussion on Independent Rental Owner (IRO) Best Practices at the 2008 NAA Education Conference & Exposition in June.
Many medium- to large-sized owners and management companies also have benefited from effective pet policies. Kettler Management, a McLean, Va.-based firm that serves the mid-Atlantic region, accepts pets at all of its communities. It limits breeds, not size.
“Residents who are willing to pay for their pets will take care of them,” said Cindy Clare, CPM, President, Kettler. “We have not had problems with noise or damage to the apartments any more than we do with residents that don’t have pets. It is a great source of ancillary income. We also have found a great sense of community from our pet owners and we do believe they stay longer.”
Surveys indicate that pets and apartments are ideal mates. Recent national results from numerous surveys show more than two-thirds of residents own pets. Some find that figure at more than 80 percent.
Stewart, who now allows pets at some of his communities, has a policy based on breed, not weight.
“Some of the smaller, yappy dogs can be a nuisance,” Stewart said. “But many larger ones, such as golden retrievers, are apartment-friendly because they mostly just quietly lay around.”
Stewart said one problem for owners is residents who try to sneak in pets. Leases should cover these violations, such as by listing a $100 pet fine and $10 a day thereafter. He said residents who are willing to fill out the addendum and pay the monthly fees will properly care for their pets.
Fees vary, and it’s not unusual for an apartment owner to charge a non-refundable pet deposit as well as a security deposit, plus charge an extra $15 to $50 per month in rent. (See “Pet Policy Particulars,” at right, for other details about pet policies and lease language.)
Pampered PetsThe stronger sense of community at pet-friendly communities is created when owners take the extra step by appealing to their pet owners with specialized amenities and events. Communities have hosted pet Halloween costume parades, offered goodie bags, arranged for pets to be photographed next to Santa Claus, hosted pet pool parties with doggie hot dogs and hamburgers on the menu and designated buildings as “pet-only.”
Pet-owner residents also form positive cliques within the community. “The majority of pet owners tend to be responsible people and want a clean environment,” said Valerie Covarrubias, Vice President, Corporate Communications, Riverstone Residential, A CAS Partners Company, Dallas. She said residents often remind each other to pick up after their dogs, so a lot of potential pet resident and non-pet resident complaints are solved without management being involved.
Stewart converted the under-utilized community tennis courts at some of his communities into fenced-in dog runs. When pets get dirty after being outside, pet owners can visit the indoor pet grooming area, which Stewart installed for approximately $10,000 at one of his communities. “It’s nothing more than a bathtub against a wall,” Stewart said. “But the owners—and their pets—love it.”
IRO Greg Guerrero, Apartment Services Company, Tulsa, Okla., said his communities offer most of the typical amenities—swimming pool, park, and playground and fitness room. “But the No. 1 amenity at our communities is the dog run,” he said during the NAA Education Conference session. “It’s really quite simple—just a chain-link fence built over a 50x100 foot area.”
Make Them StayTammy Kotula, Public Relations and Promotions Manager for Apartments.com, said that, according to a survey her company conducted in March 2007, more than one-third of respondents find it difficult to locate an apartment that accepts their pets. And 14 percent of the pet owners surveyed said a community’s pet policy is the first thing they consider when visiting and selecting an apartment.
One survey respondent said, “I love having a pet in my apartment because it feels more like home. The people in the entire building seem nicer and friendlier since the pets also brighten up the common areas.”
Stewart said that many residents treat their pets as if they are their children. “They won’t move anywhere without them,” he said. “So if they are happy in their apartments, they will stay longer.”
Mindy McCorkle, Operations Manager, Crosland, Charlotte, N.C., said that given this challenging economic environment, many residents are identifying those “nice-to-have” amenities that they can afford to live without. “But for pet owners, pet-friendly communities are must-haves,” she said.
Covarrubias said Riverstone Residential measures the effectiveness of its pet policies with surveys as well as its residents’ positive comments.
“It’s easy to quantify how many residents happily come into our management offices to chat with our associates who have a treat for their pets,” she said.
Diana Pittro, Executive Vice President, RMK Management, Chicago, said communities in her 9,000-unit portfolio are divided into those that do not allow pets, sites that only take cats and 30 percent that allow dogs and cats.
“Allowing dogs will keep residents longer, as they realize they don’t have to buy a home in order to own a pet,” Pittro said. “Allowing cats is generally the ideal way to go for a high-rise or a site with more empty-nesters. Cats are easy to maintain, but they do more damage to drywall and carpets.”
Marketing IdeasApartment owners should consider the following policies and events at their communities.
Doggie Adoption Day is a pet-friendly community marketing idea to consider that will bring positive publicity to a community and help animals in need, said Lisa Trosien of apartmentmarketing blog.com. Contact the local Humane Society or animal shelter and have it bring dogs for adoption. Make sure the shelter knows the community’s policies regarding weights and breeds. Communities also can try to secure public service announcements on local radio and television stations about the event.
Hire a professional pet groomer to visit the community and provide free services to residents’ pets.
hare fliers about pet-friendly communities at local veterinarians’ offices and pet stores. Allow residents who bring in the fliers to receive reduced pet deposits and/or pet fees.
Stewart Properties has a link on his Web sites marked “pets,” where residents and prospective residents can not only see what the communities have to offer four-legged friends, but also can view pictures of residents with the communities’ “Pets of the Month.”
Some owners are marketing their apartment communities as “no-pet” communities to entice residents who are either allergic or fearful of animals.
Mindy Grill is a freelance writer in Melville, N.Y. NAA’s Paul R. Bergeron III contributed additional reporting.
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Pet Policy ParticularsMost communities require residents to complete forms that include pet information such as its breed, weight, veterinarian name and whether the animal is up-to-date on its inoculations. Communities may require that all pets be spayed or neutered
Some communities ban specific breeds, such as pit bulls or rottweilers, and impose weight restrictions. Some communities allow only dogs and cats and exclude “exotic” animals, such as ferrets.
Communities should hold pet owner orientation events, complete with a well-drafted pet lease addendum and policies presented to pet owners upon the signing of their leases. Here, language that defines the penalties of violating the policies (size, number, type), in-unit and common-ground clean-up guidelines, city codes about noise, leash laws and the presence of animals on decks or patios should be explained. Also worth considering for inclusion in the lease is the apartment owner’s right to remove the pet permanently without the resident terminating the lease.
Promote cleanliness by giving clean-up bags to owners during this meeting. Owners also should consider including the right to add additional charges if subsequent pet odor, damage or fleas occur immediately after a resident has moved out.
One owner experienced added costs for sod replacement when dog owners did not walk the animals in designated areas. The firm’s policy now allows it to charge the resident back for this, especially if it is an area right outside his or her patio door.
Sources: Mary Gwyn, CPM, Apartment Dynamics, and various.
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Pets on the WebApartment search Web site PeopleWithPets, which connects pet owners to pet-friendly communities with vacancies, receives more than 1.5 million hits each month, according to site owner Alex Dobrow.
Apartments.com reported 11 million searches for pet friendly apartments on its Web site in 2008. Its survey said the number of communities that allow pets in the categories of dog, large dog and cat increased approximately 9.25 percent in 2008 over 2007, with a noticeable increase in those allowing large dogs. —M.G.

Landlord Quick Tip

2009-08-14T10:04:00.001-04:00

Landlord Quick Tip
Quick Tip #16: Have Your People Call My People

If your rental unit is carpeted, establish a relationship with a carpet cleaning service– someone that you like and trust to do a good job, before your next tenant moves in.

Then, encourage your tenant to use your preferred carpet cleaning company to do the move-out cleaning.
You know your unit will be clean.
The carpeting won’t be damaged by incompetence.
You can call and negotiate with the company if the carpeting needs re-touched while the job is still under warranty.
This way your new tenant can move in on time, and you can avoid a security deposit dispute with the previous tenant.

(Note: If you write this requirement into your lease, be sure to make it clear that the carpet cleaning is still the tenant’s responsibility– regardless of who they use.)

Don't Get Suckered by These Applicants

2009-08-14T10:01:00.001-04:00

You May be Desperate, But Don’t Let “Cash in Hand” Distract You
by Eric Boyd
I got a call on one of my vacant, available rentals today. The caller drove by the property, saw the sign, and called. They wanted to see it “right now”. I told them I couldn’t get over there to show it until 4pm, as I have other engagements until then. They said, “Well, we’re headed back to South Carolina to take care of some business so that wouldn’t work.” I apologized, and encouraged them to take a look around the outside and peek in the windows.A few minutes later, the caller’s wife called and said they like it, and asked what they need to do to rent the property.

I said that I could give them an application for them to complete. Then, I would conduct credit and background checks, and employment and rental verification.

She quipped that they didn’t have a previous landlord, since they own their house in SC. She then said, they were trying to get this done today, so they can go back to SC. They wanted to get this done before school starts, so they can get their kids registered. She said, “We have cash in hand, and are ready to get this doneI politely responded to her, and let her know that we don’t rush our tenant screening process. I stated that it is our duty to the property owner to ensure that tenants are properly screened, with thorough credit and background checks, and employment and income verifications. I shared that it has been our experience that taking shortcuts in the screening process leads to problems with tenancy, down the road. So, we avoid those shortcuts, at every opportunity. She thanked me, and we ended the call.In today’s housing market, there seems to be surplus of rental property. Because of this, it is taking much longer to get property rented. And, if you’re properly screening your tenants, it could take even longer to get it rented. So, desperation may set in. If you feel like you’re getting desperate, don’t let “Cash in hand” distract you from doing your due diligence. If you do take this shortcut, the upfront money you get, could cost you double or triple that amount down the road. This cost could come in the way of lost rent, or even worse, damages to your property.The caller said they own a house in South Carolina, but they’re trying to rent here in Jacksonville, Florida, 4-5 hours away. If they have a house in SC, why are they moving here, and what are they going to do with the house in SC? If I didn’t screen them, I wouldn’t find out if they have a mortgage on that house, which probably requires monthly payments. Sure, they may have the means to cover a mortgage payment and a rent payment somewhere else. But, if I didn’t screen them, then how will I be able to determine their income? How will I know if they’re 6 months behind on their mortgage? How will I know if they just filed bankruptcy? How will I know if they’re bouncing $30 checks at the grocery store? If I don’t screen them, I won’t know these things.I’m generally trusting of people. But, having been through the tenant screening process many times, I realize that people DO TELL LIES. Fortunately, we landlords and property managers don’t have to fall victim to these lies. Professional property managers have access to tenant screening services, which reveal the truth about tenant applicants’ credit history, debt status, and civil/criminal judgments. Property managers can also verify applicants’ employment and rental history. This information, combined with careful analysis of the provided data can help to place the best possible tenant in your rental property.In summary, don’t succumb to desperation. Don’t allow a tenant prospect to force you to alter your normal screening processes. Don’t let the chance at “cash in hand” to steer you from your due diligence. SCREEN THOSE TENANTS!!

Don't Break the Bank With Remodel

2009-08-14T09:48:00.001-04:00

Don’t Break the Bank With Remodel
Cost overruns more common than many thinkBernice Ross, Inman News
Whether you’re thinking about building or perhaps just remodeling your current property, there’s one mistake almost everyone makes — and it’s a costly one.
Back in the mid-1980s, I was one of three listing agents on an 83-lot subdivision called “The Summit Above Beverly Hills.” (You might have seen it in the tabloids — it’s where Britney Spears lives currently.) I decided to build a home there, and lived in it for 11 years. Recently, we just finished building our current home plus doing a major remodel on another property we own.On virtually every single custom home at the Summit, as well as on my own properties, I’ve seen the same pattern repeatedly. The final cost of the project was always 30 to 40 percent higher than what we initially budgeted. When you start a major building project, you’ll hear stories about cost overruns. The builder will warn you about making changes once the plan is complete. You will vow it won’t happen to you. Don’t fool yourself — you will probably go over budget just like everyone else.
What causes cost overruns? In the case of my Summit house, my lot was compacted fill. The building inspector decided that we needed 12 caissons to anchor the house more securely in an earthquake. The result was that the architect had to redraw the plans. We then had to go back to the city for approval. The additional cost was $12,000. While I wasn’t happy about this expense at the time, when the Northridge Earthquake struck in 1994, the only obvious damage was a crack in the marble on the powder room floor. The caissons did their job. Later inspections revealed a crack in the foundation and some twisting in the doorjambs. Given that nearby properties collapsed, I was happy my house was still standing.
Another common way that people go over budget is with upgrades. When we built our current house, we wanted to add “cans” in addition to the chandeliers and other overhead lights. The cans weren’t that expensive — about $40 apiece. What we didn’t figure in was the additional time that it would take the electrician to install the lights. What appeared to be a relatively inexpensive item ended up costing about three times more than we anticipated.
When you’re building a custom home, your radar is attuned to all the new gadgets and doodads that you can include in your house. For example, you may have planned on having a media room but didn’t realize that you would need special wiring to accommodate the cutting-edge system you just ordered. Now the builder has to open up the walls to do the installation. You may be having allergy problems and hear about a filtration system that removes most of the dust and allergens from the air. It’s not that much money in the scheme of things — it’s just that all these changes add up.
It’s common for a custom home to take 18 to 24 months to build. Wood, concrete and steel all fluctuate in price. Depending upon the type of contract the owner signs, the costs are either passed through to the owner or to the builder. If the builder agreed to a fixed price, you can bet that he or she will cut corners elsewhere to complete the house within the original budget.
One of the most expensive mistakes owners can make is deciding to rip out something after it has been installed. For example, the granite we ordered for our master bath was no longer available. When they installed our second choice, the granite didn’t match the cabinets. In this case, not only would we have incurred a $500 change fee, but we would also have to pay to rip out the granite we had selected. This meant we would have paid for two sets of granite countertops, two sets of installations, plus the removal of the first set of countertops. Fortunately, once the floors were installed, we realized that the cabinetmakers had stained the cabinets with the wrong stain. The builder had to pay for that error.
While new houses have their problems, remodels can be even more costly. The older the house is, the more likely there will be unexpected surprises that will take you over budget.
For example, the house we recently remodeled was 50 years old. We wanted to update the kitchen and add a master bedroom and bath. We knew the horizontal pipes needed replacing because they were galvanized steel. What we didn’t realize was that the vertical pipes needed replacing as well. When we replaced those pipes, we had to replace the sewer lines since they couldn’t handle the additional flow of water from the new plumbing. We also wanted to install a dishwasher, which required a new electrical box. That project went over budget by almost 100 percent.
To keep costs down, investigate thoroughly before committing to your final plans. If possible, avoid doing change orders. The bottom line — if you’re like everyone else, you will go over your budget by 30 to 40 percent — budget for it!

Landlord Charges Extra for Lawncare

2009-08-14T09:46:00.000-04:00

Landlord Charges Extra For Lawn Care
Rent it Right
Janet Portman, Inman News
Q: We rent a single-family home. When we moved in, I brought my own lawnmower and weed whacker, and used them to take care of the lawn. Now they’re broken, and the landlord refuses to purchase new ones. I was under the impression that the lawn and garden, if not maintained by the landlords, was to be maintained by the tenant but that the landlords had to provide the equipment to do so. Am I wrong? Now the landlords are claiming that if we don’t maintain the yard, they’ll hire a gardener and add the cost to our rent. –Paul P.
A: From the sound of things, a lot of unquestioned assumptions underlie both sides of this argument. If nothing else, your story illustrates why it’s a good idea to put all essential terms of a rental in writing.
First, here’s the lay of the land regarding maintenance. Landlords are responsible for maintaining the structural and common parts of rental property. Even if they delegate some of these tasks to the tenant (which is common in single-family rentals), they remain ultimately responsible if the tenant does a poor job.

For instance, property owners may be cited for maintaining a nuisance if the property becomes so run down that it attracts vandals, squatters, vermin or otherwise just looks awful, even if the lease specifies that the tenants will handle upkeep. Further, owners may be liable if someone is injured because the property is unmaintained and dangerous. But I’m not aware of any state law that dictates who must do yard work.
When it comes to who does what, landlords and tenants work it out between themselves. Aware that they are ultimately responsible for the property, landlords often don’t trust tenants to do a good job, and hire a gardening service instead. If they want to charge for this service, they factor it in when setting the rent — before the lease is signed. And just as frequently, tenants are happy not to be bothered with the chore.
On the other hand, residents who are capable gardeners (and want to save a bit on the rent) may ask to take on the job, which savvy landlords will agree to for a while, as a sort of probationary period. When the landlord sees that the lawn hasn’t turned brown, the shrubs are trimmed, and the leaves swept regularly, the arrangement becomes final. As to who supplies the tools, that’s something they negotiate.
Unfortunately, you apparently took on the job and supplied the tools without discussing whether the work and the equipment you supplied were considered part of the deal, as a form of rent. This might actually work against you. Sometimes, a person’s actions over time take on the legal force of expressed intentions. For example, landlords frequently offer rentals with appliances, and make minor repairs from time to time, but balk at expensive repairs. Tenants argue — correctly — that although nothing was said in the lease about repairing an appliance, the fact that the landlord regularly maintained it shows that everyone intended for the landlord to be responsible for the appliance, whether it needs a cheap hose replacement or an expensive rebuilt motor.
In your case, having taken on the yard work and supplied the tools, you may have implicitly signaled to your landlord that you were willing to do both as part of the deal — and when the tools wore out, you would be willing to buy new ones.
This theory isn’t a sure winner for the landlord, however, but that doesn’t mean that you’ll definitely prevail, either. For example, suppose you stop keeping up the yard, the landlord begins charging you for a gardening service, and you refuse to pay. The landlord tries to evict you for nonpayment of rent, and after a lot of time and expense, one of you wins.

Or, suppose you purchase the tools, deduct their cost from the rent, and the landlord sues to evict for nonpayment of rent. After a lot of time and expense, one of you wins. Again, you stop tending the yard, things deteriorate badly, and the landlord sues to evict you for not fulfilling your obligations. After a lot of time and expense, one of you wins. You see the pattern — nothing is certain but wasted time and expense, plus a smudge on your credit for having been involved in an eviction (even if you win, in some states).
The wise course for both of you is to get yourselves into mediation if you can’t resolve the problem on your own. Many cities and counties offer low- or no-cost mediation services for landlord-tenant disputes (in addition, small claims courts also offer mediation). A mediator will help the two of you reach a mutually agreeable solution (the mediator does not impose a resolution). When you add up the cost of protracted fighting in court and the consequences to you if you lose, the few hours you spend in mediation will look like a real bargain.

Converting Your Unit to Maximize Cashflow

2009-08-14T09:45:00.004-04:00

Converting Your Unit To Maximize Cash Flow
by Michael Monteiro
Although converting a unit into a larger (or different) space may be cheaper than purchasing a new property that fits your expanding investment property needs, it’s nonetheless a huge undertaking, both in terms of logistics and expense. If you’re thinking about a conversion, make sure that you carefully consider three important questions: Why? When? How?
Why should I convert my unit?For the purposes of this blog, we’ll consider unit conversion in the context of creating more bedrooms (for example, converting a one-bedroom unit into a two-bedroom unit). The obvious reason for this sort of conversion is to increase your cash flow.
Examine rental rates in your area to determine how much more money can be generated by renting out a multi-bedroom unit. Also consider the type of tenants that are generally seeking rentals in your area. For example, if your demographic is college students (who generally like to rent with roommates) or families (who generally have more people and, therefore need more space), chances are you would benefit by offering units that are set up for more than one tenant or couple.
Research is essential. In some cases, multi-bedroom units may generate only slightly more rent that single-bedroom units. Also, consider the costs of the conversion and calculate if the additional rent will not only cover the renovation, but also generate a higher profit margin over time. Last but not least, when considering the costs of conversion, make sure you account for rent that will likely be lost (not only in the unit undergoing conversion, but potentially in other units as well) during the construction process.
When should I convert my unit?If you’re at a point where you feel as though your tenant pool has outgrown the spaces you are offering or if you’re looking to increase the value of an investment property, it may be time to consider a conversion. You may also want to think about converting units as an alternative to buying additional property. Particularly during periods when it’s a seller’s market, converting may actually be more profitable than purchasing a new property with larger units in the long-run.
There’s another element of the “when” equation to consider as well: What time of year is the best time to convert your units? If you live in a region with harsh weather or unpredictable patterns at certain times of the year, plan your construction schedule accordingly. The last thing you want to do is have the project extended (i.e., lose rental income) due to factors beyond your control. If you live in a more temperate climate and weather is not a factor, consult with local contractors to find out when their slow season is. This may well guarantee you more attention and better rates. Finally, timing your conversion around natural rental cycles such as a month when the majority of your leases expire or (if you rent to college students) summer break will help minimize income lost during the construction period.
How should I convert my unit?Conversion is one of those instances where you are definitely best to hire a professional. Even if you have the know-how to handle this undertaking on your own, chances are the process will move along much more efficiently with a professional on the job.
Any way you cut it, converting your units will be a significant expense. Make sure that you thoroughly research potential contractors, striking a balance between cost and quality. Not only do you want to find an affordable contractor, but you also want to make sure the work is done correctly and efficiently. Ask other property owners for referrals and look on dependable review sites such as Yelp. Also be sure that you talk to a few different contractors so you can carefully weigh different options and, ultimately, choose the one that works best for you.
Much like investing in a new property, converting your units involves a significant up-front expense that can pay off in spades in the long-run. Carefully consider your whys, whens, and hows before beginning the conversion process and you’ve already mastered half the battle.

Managing Your Reputation Online

2009-07-30T20:21:00.002-04:00

A real Social Media CHALLANGE has become apparent in the past couple of days, evidenced by a certain management company that’s taking a lot of heat in the media, both on- and off-line. So how does a company respond adeptly, in real time, to controversy in this new world? Managing your reputation effectively in the social media sphere requires a four-pronged approach:
1) Be aware of the tools and services, and know their functionality. (e.g. understand sites/applications like Yelp, Digg, Apartment Rating sites, Twitter, Facebook, LinkedIn, FriendFeed and others, and why and how people/residents use these tools, or may prefer one tool over another).
2) Before you leap, look and listen to what is being said about you, our industry, and the competition in each of these networks to get an understanding of the environment.
3) Engage in a direct, trustworthy manner that positions the company as a peer instead of a bully … in other words, don’t use social media as your megaphone.
4) Be prepared for social media’s transparency. How you respond in a controversial situation will be at least as visible — if not more so — than what you’re responding to.
Engaging too soon, and without having a strategy or accurate understanding of the outlets, is bound to #fail. Engaging without listening first to what is being said about you is bound to #fail. But … and this is tricky … so, too is a strategy that abandons a proven “old way” of doing things completely in favor of a “new way”.

http://www.multifamilypro.com/blog/?p=185&awt_l=5ncUB&awt_m=1a.HXMNISwcgp8

Minimum Wage Increase

2009-07-29T09:17:00.001-04:00

Minimum Wage Increase
On July 24, 2009, the current Federal Minimum Wage rate of $6.55 per hour will increase to $7.25 per hour. All covered employers, regardless of size, are required to post the most recent Minimum Wage poster, even if your state’s minimum wage differs.
This is a good time to make sure you’re also displaying the latest Family and Medical Leave Act (FMLA) poster based on revisions finalized in November. The new mandated poster went into effect January 16, 2009.
Both of these required posters are available for download from the Department of Labor website at http://www.dol.gov/esa/whd/resources/posters.htm.
Tip: The Federal Government requires display of six posters, all of which are available in a convenient 6-in-1 format from Progressive Business Compliance.

High End rental Markets

2009-07-16T12:56:00.000-04:00

High-End Rental Markets on Downward Trend
A recent nationwide study of rents and occupancy, conducted by RealFacts for 2Q09, reveal that renters are showing resistance to paying a premium to rent an apartment in a high-end market.
Rents were in decline in every market nationwide in the current quarter except for a few modest increases in Tampa-St Petersburg, FL at 1.2%; Kansas City, MO at 0.7% and San Antonio, TX at 0.6%. On average, asking rents are down nationwide in the second quarter of 2009 from $968/mo.over first quarter at $978/mo. The markets that were hit hardest this quarter are high-end markets such as those in California. The San Francisco Bay Area, usually ranked as the most expensive place to live in the country, lost some of its luster this quarter. The current quarter’s decline comes on the heels of similar losses sustained in 1Q09.
The San Jose area posted the greatest decline for the current quarter at -3.8%, followed by San Francisco at -2.7% and Austin, Texas at -2.4%. Other struggling markets are Oxnard-Thousand Oaks at -1.8%; Riverside-San Bernardino, CA at -1.8% and Los Angeles at -1.6%. With the exception of Austin, TX what these markets have in common is that they are located in California and their average rental rates are over $1,000.00/mo.
The RealFacts survey demonstrates the effects of higher than average unemployment statistics in California. According to a May 2009 survey released by the EDD, California’s unemployment stood at 11.5%, compared to the National average of 9.4%. The San Francisco Business Times reported that the Bay Area lost 130,000 jobs from May 2008 to May 2009. Companies like Yahoo!, headquartered in Silicon Valley have had to make cuts of about 10% of its regular staffers.
On the brighter side of the rental markets, the rate at which occupancy has been declining in the past two quarters has slowed down in the second quarter of 2009. This suggests that asking rents are beginning to reflect what the market can bear. For example, in Oxnard California, the average rent went from $1551/mo. down to $1,473/mo. But the occupancy rate actually increased by nearly 1.0% in this same quarter.
Other markets that posted positive absorption this quarter were Orlando, FL, 0.6%, San Francisco, 0.4% and San Jose at 0.3%. All other markets were down. The highest drop in occupancy for the quarter was found in Boise, ID at -3.2%, Oaklahoma City, OK at -2.1% and Indianapolis, IN at -1.4%.
It’s seems today’s renter is looking for a bargain. There aren’t enough high income renters with good credit to commit to premium rents prevalent in high-end markets. Many renters have been forced out of high markets due to lack of employment opportunities or sufficient income. In some cases these renters decide to move to a location where housing is less expensive and where they can rent the same quality apartment unit for less than half the price.
(Source: RealFacts, http://www.realfacts.com/, phone: 415-844-2480)

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USATODAY.com - Generation Y: They've arrived at work with a new attitude

2009-05-20T13:28:00.000-04:00

USATODAY.com - Generation Y: They've arrived at work with a new attitude