Property Management Articles
Real Estate & Landlord Educational Articles
Thursday April 18, 2024
As a property owner, you can design a pleasing exterior while keeping the safety of your property and your tenant in mind. Natural elements, smart landscape design, and strategic plant selection can be incorporated to keep your property safe. Check out these easy exterior solutions to safeguard your rental property.
More and more tenants are requesting to pay their rents all at once, for many reasons. Whether they just sold their house, or they want to offer a lump sum due to a poor credit rating, the occasional tenant may want to put a large quantity of cash in your hand. While that sounds like a dream come true, it is important to evaluate why the tenant is requesting this, and if this makes sense for you.
As a real estate agent, you would think my response would be “Always!” but here is my unbiased opinion on this matter. Choosing a tenant, although time consuming, is not exactly rocket science; however, there is some skill involved. For this reason, brokers may be necessary to make the lives of property owners easier; but this convenience comes at a cost. Here are a few questions you should ask yourself before you decide to hire a broker or DIY.
It used to be easy for landlords to control energy costs at their rentals; they simply offloaded utility bills onto tenants. That still happens, but when tenants pay for electric, gas and water, they are more likely to demand efficiencies. Fortunately, it doesn’t take much effort to slash energy bills; the chance to save hundreds of dollars a year should be all the incentive you need.
No matter who pays the bills, a landlord’s chances of getting and retaining the best renters improve with the ability to cut energy costs. Either tenants renew the lease because the landlord gives them ways to save on their utility bills, or they stay because the landlord controls rising energy charges, rather than automatically boosting the rent.
Years ago, I leased a small second-floor apartment over a detached garage. They don’t let you do that in my town anymore. I think it has to do with updated building codes and safety rules. Anyway, like most college students, I abandoned my apartment over the holidays for a trip home. I saw what I thought was a good opportunity to save on my utility bills, and turned the heat way down.
New landlords often consider dipping into the pool of family and friends to fill vacancies in their rentals. After all, these people are known entities, whereas complete strangers come with unfamiliar histories.
Why, then, do some experts advise landlords to steer clear of relatives and pals? The easy answer is that doing so carries unnecessary financial risk. Specifically, landlords risk lost tax deductions and lost profits.
Here are some measures to consider if you are thinking of renting your property to some friends, or your adult children, or other relatives. If you have already leased to family or friends, see if you took the proper precautions to protect your investment.
A really nice tenant applied for your rental, but you’re on the fence. You like this person; in fact, you and this applicant have mutual friends and they vouched for the applicant’s warmth, courtesy and friendliness. The personal references checked out, you confirmed employment, and you reviewed recent paystubs.
But this applicant has had financial problems. Serious problems. Bankruptcy, a low credit score and even a prior eviction came up on the background check you ordered. The applicant was completely straightforward about the past, telling you in advance about an unfortunate divorce, a lengthy illness, and other unexpected setbacks that would appear on the background check.
The Latin word “addendum” appeared more than 230 years ago to define “something added.” Here we are in the early 21st century, and no one on Earth speaks Latin as his or her native language.
Yet, that word, addendum, is still in heavy use to describe something added to a book, to a magazine, to a yearbook, and, yes, to a lease agreement.
Even if you are in that small minority of folks who still remember a few words from long-ago Latin lessons, the use of lease addenda (that’s plural for addendum) may still stump you. So here’s the 411 on that important form.
There’s nothing fiercer than a momma protecting her young, and this goes for birds as well as humans. And, while society’s view of animals - especially pets - has seen a remarkable shift in recent decades, the age-old conflict of unwelcome birds occupying man’s roof eaves, dryer ducts, and stove fan vents continues.
It’s no fun having to dislodge a nest of invasive English House Sparrows, let alone beautiful natives like Purple Martins, Chimney Swifts, Red-Headed Woodpeckers and Mourning Doves. The hatchlings shriek and the momma dive-bombs, and falling off a ladder becomes a distinct possibility.
Knowing the upgrades to make to your rental will help you make the best of your investment.
Always make sure to take pictures of the condition of your rental unit as a record of its condition.
Landlords are some of the busiest people we know. Most have full-time jobs, and many manage their property portfolios with little or no professional help. They're on call for emergency repairs and tenant crises, and they must carve out time to show their rentals, and to meet incoming and outgoing tenants for the before and after walk-through tours.
The absolute last thing the average landlord wants to spend time on is grounds maintenance.
That isn't to say that no landlord cuts the grass at his or her rentals; in fact, many do. However, minimizing labor is essential in order to have time for other important chores, and to ensure that costs (including the landlord's labor or the fee for lawn care services) don't exceed profits.
Since rental income is the chief reason people consider buying investment properties, choosing the right rent amount requires a great deal of thought. But how do landlords decide what to charge?
Formerly, they spent weeks scanning newspaper ads for comparable rental units, and seeking advice from market experts. Now, though, anyone with internet access and a calculator can figure it out for themselves.
The two most important considerations in setting an appropriate rent amount are:
• Covering the cost* of owning the property
• Drawing a good pool of tenants
Landlords typically clean carpets, repaint and make minor repairs when a tenant moves out and before a new tenant moves in. At some point, however, addressing normal wear and tear just isn't enough to give a rental the facelift it needs. In that case, it may be time to consider a serious renovation.
How much work should a landlord perform to update a rental property? And, will the work merely keep a unit competitive, or do upgrades merit a rent increase?
The project scope, feasibility, timetable and return on upgrade investment each require careful consideration before taking a plunge into an overhaul of an investment property.
Congratulations! You launched your property management career and are officially a landlord. Although you have a new mortgage to pay, insurance to buy, and maybe some home repairs to cover, a small investment in some key tools will help you run your new business effectively.
Here are some suggestions based on the experiences of veteran landlords:
It's so easy for landlords to get the word out when they have a unit for rent. They simply post a description and photos online – usually for free – and get a world of tenants at their fingertips.
Why, then, are online rental ads often so unappealing?
Go ahead; choose any neighborhood, enter a few parameters and start going through the photos that pop up.
• Harrisburg, Pa. apartment complex: Two of the three shots are of the outside of the complex and the remaining picture is of a corner of a kitchen.
• Kansas City. Mo. apartment complex: Fifteen of 35 photos depict the outside of the complex – eight of them are of the complex swiming pool. Of the 20 indoor shots, a few show a bathroom and they are close-ups of a tub, toilet and sink.
When you’re thinking about entering the market as a landlord, the considerations are many. Before you get caught up in the minutiae of advertising the property, making cosmetic upgrades, or screening for the perfect tenant, be sure to consider the paperwork that may need to be completed before you may legally rent your unit. The requirements to move a tenant into a property vary greatly by municipality. A landlord should be prepared to encounter a process of legal filings, fees, and inspections, and should anticipate potential roadblocks. While the local requirements will dictate what must be done, a general understanding of the terminology and other considerations may make it easier to navigate this process.
As a nation, we are preparing to hand over the keys to the White House, one of the world’s most famous home-offices. The White House is an iconic building and National Historic Landmark with a colorful history, but in some ways it is just like any other temporary housing. The standard lease term is four years, with the opportunity for a renewal. The unit boasts 132 rooms and 35 bathrooms, with a private residence on the second floor. We have compiled some more White House history that can instruct today’s landlords in managing a successful rental property.
Moving Day
As her husband’s second term comes to a close, First Lady Michelle Obama recently joked that her family has to “get the old house cleaned up so we can get our security dep
The green movement may be about environmental consciousness and conservation, but when it comes to your rental properties, there may be an added bonus to going green – it may lead to more green in your wallet.
As international lawmakers have focused on greener policies, energy consumption has become an area of increased regulation.
The trend started with increased attention from government regulators on energy consumption. That led to tax breaks being available for property owners who install new energy-saving equipment.
How many times have you heard that proposal being made among friends? It is a living arrangement that once was mostly reserved for college students, graduates and other young adults who wanted to save on rent until they moved into more permanent lodgings. Now, it’s an increasingly popular option for 30-something singles and older adults who want to cut living expenses.
Kevin Williams* picked up the phone and heard his rattled tenant say that there were flies in his apartment. Kevin said he'd be there soon. He swung by the hardware store for some bug spray and met his tenant at the unit.
Kevin could have rolled his eyes and told his tenant to calm down. He could have told the tenant to buy some insect repellant and send a receipt with his next rent check. But he didn't. Instead, Kevin did what he's done since he bought his first investment property in Illinois nearly 30 years ago. He showed that he cared about his tenant and was committed to first-rate maintenance. Kevin knows that such thoughtfulness will be returned, enhancing his investments.
Here's a goose bump-inducing fact for you: Florida is home to more than 80 species of mosquitoes – more than in any other state or province in North America. Is it any wonder that lawmakers in Florida require that windows in rental properties have screens and that landlords repair those screens once every year? It's true! It's part of Florida's landlord-tenant law.
In fact, officials there are stepping up enforcement of that rule in light of the recent revelation that dozens of pregnant women in Florida are being watched for the Zika virus. The virus is carried by some mosquitoes and has been linked to serious birth defects.
What happens when tenants take repairs into their own hands? Unauthorized tenant renovations can cause expensive damage; here's what landlords need to know.
As HUD proposes making all of its public rental housing smoke-free, should private landlords follow suit and ban smoking in their rentals?
Landlords and rental investors' ability to budget for CapEx, or capital expenditures, is often the difference between successful investments and money pits.
Here are trends affecting landlords around the country, along with some tips on how you can earn even better ROI than the average landlord.
What do landlords do when their tenants break up, and one or both renters want to leave? Here are some tips to keep your lease income steady.
It's easier than ever for tenants to covertly record their conversations with landlords and sue them; use formal eviction notices and avoid emotional reactions.
If having a better landlord-tenant relationship isn't enough reason in itself, consider all the ways that friendlier tenants can boost your rental ROI.
Landlords and real estate investors have more complex accounting than most, and have twice the need to track their financial progress.
Does your tenant always pay the rent late? Here are some easy, actionable tips to not only collect the rent on time, but early!
For every landlord horror story of problems with tenants or rental units, there's a story of catastrophes avoided by catching them early.
Late fees can often get landlords into trouble, especially as they are often unspecified by state laws. Here's what landlords need to know about late rent charges.
Rent control may be a tenant's dream, but it creates a host of problems for landlords, along with unintended consequences.
Landlords and real estate investors notoriously fail to account for their labor costs, creating all sorts of problems in their business.
Looking for a summer project that will actually pay dividends? Consider these home improvement ideas for your rental property to boost rents.
Where marijuana fits among tenant's rights is growing increasingly murky, as state and federal laws conflict and case law is undetermined.
Failing to understand squatters rights can cause landlords drawn out eviction challenges, legal battles and even lost real estate.
Being an absentee landlord doesn't have to be a bad thing - here's how to be a landlord for out-of-state rental investments.
Accepting rent in bitcoins and other virtual currencies may appeal to some landlords, but do the risks outweigh the potential benefits?
They may sound similar, but eviction notices, violation notices and non-renewal notices have separate uses and consequences for tenancies.
Tenants often ask landlords if they can sublease the rental property, for early move-outs or use as a vacation rental, but is it a good idea?
Landlords need liability insurance more than most, given how often they're sued, so how does umbrella insurance for landlords stack up?
Per diem late fees on rent payments can be a useful incentive in your lease agreement, but are not legal everywhere and come with risks.
Managing vacation home rentals can be time consuming, but it can also be profitable and rewarding.
Cleaner streets actually do mean less crime, and factors like the height and density of trees are surprisingly correlated with lower crime.
Furnishing your rental property can lead to increased ROI, but it also comes with extra costs and risks. Here's what you need to know!
Thousands of landlords fall victim to real estate scams every year, from tenant scams to contractor fraud; here's how to protect yourself.
Flood damage often costs more than a rental property is worth, yet most landlord insurance policies don't cover it; how to protect yourself.
Cancellations can be ruinous for vacation rental owners, so here are four tips to cut your vacation rental cancellation rate in half.
Rental property pest infestations, from cockroaches to bed bugs and more, can be extremely expensive, but prevention is easy and affordable.
Deciding what to update in a house largely depends on what will actually boost value or rents, so here's a handy guide to home repairs ROI.
Home warranties can sometimes be effective in normalizing rental property maintenance costs and preventing large, unexpected repair bills.
The list of tenant rights is a long one, and not always obvious. Here are the most common tenant rights that landlords need to understand.
Successful landlords know how to leverage the success of those around them, and landlord associations provide the perfect opportunity.
While most states' laws favor tenants, landlords still have legal rights, and it's important to understand the extent of those rights.
Making green updates to your rental property can sometimes improve ROI and cash flow, making the investment worth calculating.
With the weather quickly changing from warm to cold, rental properties need preventative maintenance to stay in working order in the winter.
Halloween can cost thousands of dollars in vandalism cleanup and repairs, and can be dangerous for unwary tenants; follow these safety tips!
Solo property managers and landlords can systematize their rental businesses to be more efficient and effective, and collect better returns.
As more states legalize marijuana for recreational or medical use, some condo associations fight back by trying to ban its use by residents.
Contractors perform critical work on your investments and spend time in your tenants' homes; it's important to screen them VERY carefully.
Hoarders can make terrible tenants, between infestations, safety hazards of blocked movement and expensive evictions; what you need to know.
All businesses need to plan for (and protect against) the worst; property management and rental investing businesses are no different.
Today's younger renters in Generation Y or the millennial generation want different things than their parents; are you appealing to them?
Don't want tenants or their attorneys showing up at your home or work? PO boxes can be a cheap, effective landlord anonymity tool.
With an aging baby boom population and rising trend of ADA lawsuits, businesses and commercial landlords need to re-evaluate their compliance.
Experts say reluctant landlords benefit from a mindset shift, thinking of themselves as accidental investors rather than accidental landlords.
One landlord's harrowing tale of a manipulative serial tenant, who cost thousands. How can landlords handle (and avoid) nightmare tenants?
Vacation rental properties can be great sources of extra income... if managed properly. Avoid these common vacation rental mistakes!
Vacancies are ROI killers for landlords; review this recent survey of renters on what incentives would persuade them to renew their leases.
Video surveillance cameras are effective security devices for apartment complexes, but they can cause privacy concerns and landlord lawsuits.
More property managers nationwide are turning to doggie DNA analysis to enforce their dog waste policies, with excellent results.
Increasingly, landlords and Realtors are using drones to take aerial photos for rental and real estate listings, but uses don't stop there.
Like all businesses, real estate investing and property management businesses require a team of experts; here are who's needed for success.
With many states legalizing marijuana usage in some form, can landlords legally prohibit cannabis use in their rental properties?
As short-term subleasing becomes increasingly popular, more landlords and municipalities are trying to prohibit tenants from doing so.
After an Ohio tenant was stalked on Facebook and raped by another tenant, she sued the property management company, in a story troubling on many levels.
Just when landlords and property managers think they've been around the block, a new surprise awaits. Avoid these common sophomore mistakes!
Property issues can be solved with some handiness, common sense or a quick phone call to a handyman. Here are some issues that arise in property inspections.
The First Amendment protects rights to free communication, but does that mean tenants and condo owners can litter their lawns and windows with political signs?
It is difficult to find a reliable contractor, so here are some tips to help evaluate handymen and licensed contractors alike.
With this guide, landlords can learn to aggressively conceal the ownership of their rental property to prevent lawsuits and retaliation by embittered tenants.
Boarding houses were once a staple of American housing for young workers, and may become so again in areas with affordable housing shortages.
Landlords have more liability than most professions, and landlords are often sued based on the implied warranty of habitability; avoid becoming one of them.
Renters insurance is cheap and useful for both tenants and landlords - here's what you need to know as the landlord or property manager about renters insurance.
Landlord-tenant disputes are often heated, and can even turn violent. Here are several ways to improve both your cash flow and relationships with your tenants.
Here are 7 tips to keep your online reputation sparkling - while improving your relationships with tenants and landlord clients.
When a deck collapsed during a tenant's Fourth of July party, several guests were injured. Who is liable if they decide to sue over the accident?
HUD recently clarified and expanded its requirements that landlords accept tenants with service animals, and not charge additional fees for them.
Prevention is far better than cures, as hundreds of landlords and property managers have found by trying an new experimental crime prevention program.
A new survey by Rent.com shows that the majority of tenants do not maintain their rental properties adequately, keep renter's insurance or have a disaster plan.
Tenants can cause limitless damage to rental properties, then try to keep the deposit. Here are several tips for minimizing the risk of tenant property damage.
Grow-ops use a front-tenant for the rental application, then a marijuana operation moves in, drilling holes, stealing power and spraying water throughout.
Countless cities across the country require landlords to register their rentals, obtain occupancy certificates or both, and more are following suit every month.
Vacancy rates are among the most expensive hurdles landlords face. The answer? Keep the (good) tenants you already have, and boost your lease renewal rate.
From icy walkways to roofs collapsing beneath heavy snow, understand your liability as a landlord before the next snowstorm catches you unprepared.
Here are four ways to minimize losses to rent defaults and evictions, to help boost your rental property's ROI and keep your cash flow moving.
Tenant couples break up all the time which puts the rent payments, rental property and even the landlord at risk. Here are how to minimize those risks.
From depressing values to inviting crime, neighboring vacant homes are a property owners worst nightmare. What can be done to address neighboring vacant homes?
There are increasing opportunities in social media for landlords and property managers to slash vacancy rates and boost tenant retention rates.
Natural disasters can leave hundreds of thousands of residents without basic amenities and utilities. Can and should the landlord still collect the rent?
Winterizing your rentals is an excellent way to prevent damage, unnecessary tenant vacancies, and lawsuits, while protecting your investment and your cash flow.
Property management is a form of customer service, but too many property managers lose renters and management contracts over poor service to landlords, renters.
Catching lease violations early and establishing a paper trail of tenant notices is critical to enforcing your lease agreement and preparing for eviction.
There are increasing options available for electronic rent payments, but each has their own pros and cons. How should landlords accept rent?
Bed bugs have made a surprising and frightening comeback in the last decade, and no one has more to lose than landlords and property managers.
Foreclosure rates have continued to rise across the country, including rental properties with an active lease agreement in place.
Pools can be an enticing amenity for many tenants, but they also come with lots of maintenance, and potential liability for the landlord..
Reducing your vacancy rates to a bare minimum is critical to a successful real estate investing career - here are eight tips for slashing vacancies.
Rental unit costs rise over time, from property tax bills to insurance to mortgage rate increases, so here's how to raise the rent smoothly.
Try out these five tips to ensure your tenants (and your rental investments) perform at their best, from early rent to minimized lease violations.
Brush up on these common rookie landlord mistakes; if you can avoid these you will be off to a good start on your real estate investing career.
Anywhere money changes hands between strangers, there are scams. Here are some of the more common rent check scams that target landlords.
Here's a quick guide to a landlord's right of entry, to help clarify the blurry line between renters' privacy rights and landlords' property.
Toxic mold can kill or sicken tenants, create lawsuits or cause renters to take matters into their own hands and do massive rental property damage.
Robert Lattas, landlord and real estate attorney, explains what all landlords should know about rental property deductions and accounting.
Collecting back rent doesn't have to be a nightmare. Attorney Phil Taylor shows how a quick response to late rent can curb future rent collection problems.
Many Landlords make the mistake of getting too emotional and personal with their Tenants.