Looking for a Property Manager ? 16 Questions to Ask, Final Installment13-16

  1. When do you typically pay landlords the rents collected?

Why is this important?  Remember that the property manager has a fiduciary duty to manage your money.  Knowing how long the manager waits between collecting rents and giving them over to you helps with your own business budgeting (because owning rental income properties is a business).  Don’t schedule to pay a bill on the 5th of the month if the collected rents will only be available in your account on the 10th.  Also, beware any manager who holds onto the rents longer than is truly necessary.  Typically rents should be paid to you before the 10th business day of the month.

  1. How do you pay rents collected?

Why is this important?  It is infinitely more efficient and faster to have rents direct deposited into your bank account, than it is to have to wait for a check.  However, the answer to this question will let you know if the method you wish to conduct your business is even available to you.  Some managers may not send out checks, doing everything electronically and you may prefer a check.  In addition, some methods of payment may incur a “service fee” which you will need to budget for and which you will definitely want to know, up front when you are still comparing your property manager options.

  1. How do you handle tenant emergencies?

Why is this important?  Income property owners need the dependability of long-term tenants in their properties.  Each time a property is vacant, that represents lost income for the duration of the vacancy.  Property managers who handle tenant emergencies well and who have access to repair people who can make emergency repairs as well as normally occurring ones timely and pleasantly are more likely to attract and keep the types of tenants an income property owner needs.  It is important that any property manager you hire knows that there is a correlation between how responsive the manager is to the tenant when there are issues at the property and how likely the tenant is to renew a lease.

  1. What is the eviction process in this state for tenants who don’t pay their rent and how long does it take to evict a non-paying tenant?

Why is this important.  No matter how great your property manager is, or even how great you are as an income property owner, evictions will happen.  They are greatly minimized with an excellent property manager, but even the best of managers cannot predict life events that sadly may put a tenant into a situation where rental payments are not made.  It is good for your business planning to know  the eviction process occurs and how long it might take from the date eviction proceedings are started, till the property is returned to you so it can be rented out again.  Unfortunately, in some states, the eviction process is very lengthy and a tenant can stay in a property for up to a year, without making a single rent payment.  Knowing this, lets you plan for perhaps  needing to make mortgage payments and property tax payments from your own funds, instead of rental income funds, for the duration of the eviction process.

Knowing the eviction process and in particular how your property manager handles that process also lets you know if the property manager is willing to both file an unlawful detainer action on your behalf and appear in court on the matter, or if you need to do that.  This is particularly important to know if you have an out-of-state income property that is being managed, because if your property manager will not file the matter for you, or appear in court on your behalf, you will need to travel to that state for each hearing.  There are often several hearings on an unlawful detainer action after it has been filed.

 

Photo Credit: Copyright,  Michaeljung

Five Signs Your Locks Need To Be Replaced

By: Ralph Goodman, Guest Author

Home maintenance is a huge responsibility that tenants and landlords have to worry about at some point in time. There are very few things on this earth that are meant to stay in pristine condition forever, and as such, maintenance plays a huge role in determining the longevity of any product, including locks. Some landlords install new locks on apartment doors and do not ever worry about replacing them until the lock is damaged to the point that a tenant is locked out of their home. The act of replacing door locks is one that should be undertaken every few years, but sometimes landlords and tenants are not sure what they need to look out for when it comes to replacing their locks. This is not a big problem at all, we are always here to help. Let’s take a look at some of the signs that it might be time for you to replace your locks.

1.Recent Break-In

If you and your apartment unit have been recent victims of break-ins and burglaries, then it might be a good time to replace the locks that you have on the doors around your home. In some cases, burglars end up damaging the locks to your home as they attempt to force their way in. In other cases, they simply show you that the locking mechanism you had in place is barely keeping you safe. This is one of the clearest signs for tenants and landlords that it might be time to replace your door locks.

Door locks play a huge role in your home security and decisions about them should never be taken lightly. Burglars tend to inflict a lot of blunt force trauma on locks, and this prevents them from being as effective as they once were. That is why it is imperative for tenants to talk to their landlords about damaged lock repair or replacement if they have been recent victims of a break-in or burglary. Landlords can also improve the locks to make them more resistant to burglars. This can be done by adding security pins to the lock, using longer screws to install the lock hardware, and also by utilizing deadbolts with a longer throw.

2.  Wear and Tear

Locks undergo a lot of stress over time, especially locks that are subject to heavy traffic day in and day out. Their constant use in conjunction with the effect that natural elements have on them leads deterioration over time. Old and worn locks tend to become rusty, and they start to stick, which makes the process of unlocking and opening a door a rather complicated one. Aside from the fact that it is a hassle to open doors, there is also the issue of your home security being put at risk. Locks that are old are much easier to pick and break, so it is advised that you replace your locks as soon as you notice this is happening to them.

In some cases, this natural aging process can be slowed by regular maintenance. This might involve lubricating the locks and handling them with more care. Properly maintaining your locks over time will decrease the chance of breaking a key in a lock.

3.  Changes In Your Neighborhood

In some cases, the indication that you need to replace your door locks does not come from the lock itself, or from within your home. There are times where the state of security in your neighborhood might change. Perhaps your community used to be one of the safest in the country, but if you or your neighbors are falling victim to a string of recent break-ins and other related crimes, it is a good indication that you should probably replace your locks. The locks on your door are meant to restrict the amount of access that people have to your home. If your neighborhood is becoming unruly, it is important to make sure that your locks are up to the task of keeping your tenants and your property safe, and if they are not, then you should replace them.

4.  Lost/Stolen Keys

In the event that your keys are lost or stolen, it is crucial that you replace the locks on your door. Misplaced or stolen keys automatically decrease the effectiveness of your home security, because your key control over your apartment unit or property has been reduced. There are some landlords who will make the assumption that no one will come back and attempt to use the key to gain access to your property, but it is always better to be safe than to be sorry.

Replacing the lock on the door will negate the possibility of anyone gaining easy access to your home or property, and it will help you boost your home security in the process. When you lose your keys, or if you suspect they are stolen, you should never dismiss it as a minor issue, because it is not. It is advised that you contact a trusted locksmith and have them replace your locks as soon as possible.

5.  Your Locks Are Old

This might seem like a really obvious point to most, but it will surprise you that there are landlords and property managers who do not change their locks for years. In some situations, it is easy to understand why. The lock has not failed you all this time and it continues to work fine, so why would you waste your time and money trying to replace a lock that has not let you down? I admire this way of thinking, but it is impractical. Technology moves fast, and there are always changes looming on the horizon. If you have not changed your locks in a very long time, it is a clear sign that you need to replace them, no matter how good it might seem to you. Make sure that your locks are able to withstand every modern method that a burglar can throw at them, so that they are keeping your property and your tenants safe.

Conclusion

There is never any downside to replacing the locks on your door, unless you replace them with locks that are worse (but why would you do that?). The locks on your doors are an integral part of your home security, and better security helps your property stand out from others. There are many other reasons that might prompt you to change your locks, however, these are the 5 most prominent ones that most homeowners deal with on a regular basis. Hopefully, this list will help homeowners make the right choices when it comes to their locks and also helps you stay vigilant when it comes to the state of your home security.

 

You can find more informative and lock and security related  blogs written by Ralph Goodman at:  http://united-locksmith.net/blog/author/ralph

Who Owns That Property?

How to find out who owns a property.

By: Eveline Brownstein (c)

There are many reasons why a person might want to know who the owner of a property is, but did you know that the owner of a property is a matter of public record?  Every county in the United States has a property tax assessor whose job it is to establish a value for every single piece of property in their counties.  The assessment will include assigning a value to the land and all of the structures on that land.  If deemed appropriate by the county and the state in which that assessor is located, it is also the job of the assessor to collect the property taxes for the properties in that county for the county and also for the state.

As a result of the meticulous job assessors are charged with to both identify properties, assign value, assess taxes and collect the taxes, assessors must keep thorough records regarding who owns each parcel of property within a county.  In some states, there are both county and city tax assessors.  Cities collect taxes for their local government purposes, including police and fire departments, park upkeep and other infrastructure, etc. In order for assessors to know who is responsible for paying the property taxes on the parcels of property within their jurisdiction, it is imperative they know who owns the property.

So, if you want to know who owns a property, the local assessor in the city or county where that property is located will have that information and since this is tax collection information, it is a matter of public record.  This means that anyone can have access to that information upon request.

These days, most assessors’ offices have interactive websites that make obtaining the information regarding the name of the owner of a property easy to achieve.  In areas where the assessor does not have an official website with the information readily available, an interested person can either visit the assessor’s office and request the information in person, or can mail a request for the information.  In some instances there is a charge for the assessor to provide the information, but in many cases information obtained via the internet is free.

Why Renters Should Consider Renter’s Insurance

By: Eveline Brownstein (c)

Tenants should know what a landlord is not responsible for, and should act accordingly.

Local regulations differ widely nationwide, but  there are some basic requirements of a landlord and there are some areas that leave a tenant vulnerable.  Tenants should plan for, and cover themselves, for those things a landlord will not be responsible for, or they risk having losses that they will have to pay for out of their own funds.

1.  Theft of a vehicle.  A recent article on Heraldnet.com covers one such instance.  A landlord is not responsible for a car stolen from the property.  As a driver, you are required to carry insurance to cover accidents.  In most states it is not necessary to carry vehicle loss insurance.  However, if you do not cover your vehicle for theft and it is stolen from the property, you are personally responsible for that loss.  Such a theft loss is not the responsibility of the landlord.

2.  Theft of personal property inside the home.  A landlord is not responsible for a tenant’s personal property, stolen from the home.  Renters are wisely advised to purchase a renter’s policy to cover a theft of personal property.  These policies are, generally speaking, affordable and they will give a tenant peace of mind.  One of my properties has an alarm system that I installed when I was living there.  I have had a number of subsequent tenants in that property, all of whom have elected not to activate the alarm system.  While this is clearly a choice my tenants make voluntarily, since I have provided access to an alarm and it has not been activated by a tenant, my responsibility for any thefts at the home is greatly diminished.  Tenants should especially consider purchasing renter’s insurance that includes valuables, if the renter intends to keep jewelry or collectibles on the premises.  A landlord will only be responsible for a theft loss if the landlord is directly responsible for the theft, for example: When giving workers access to the property for repairs and failure to lock the door when leaving the property.

3.  Flood damage of personal contents.  A landlord is not responsible for damage caused by a flood to the personal contents of a tenant.  This means that even if the landlord carries content coverage on a flood policy, that coverage will not cover a tenant’s possessions, should those be lost in a flood.  Renters who purchase renter’s insurance will also be able to purchase flood damage coverage to cover their personal belongings, should there be a flood in the home.

4.  A guest who experiences a personal injury.  While most landlords carry personal liability coverage that covers losses in the case of the personal injury of a tenant or a guest at the property, this does not eliminate the liability of a tenant from being also named in a lawsuit or a claim for personal injury, especially if it can be shown that the tenant negligently contributed to the injury.  For example, if the tenant personally places a large rock in a pathway where it can be tripped over.  Renters should exercise caution when inviting guests to the home, but should also cover themselves in the event that a guest is injured on the property as a result of an act of theirs and not the landlord’s.  Sadly, we currently live in a litigious society and forethought and protection from money judgments and lawsuits must be a part of what we consider when we make decisions about what we need.

These are just four reasons why a renter should consider purchasing renter’s insurance when renting a property.  A landlord’s policy will simply not cover areas that a landlord is not responsible for and a renter must decide what losses he or she can comfortably afford and what losses to protect against.

Four Tips For Making Your Rental Stand Out From Others In The Neighborhood

Why you should not neglect the exterior of your rental

By: Eveline Brownstein (c)

Everyone wants a desirable rental property that has tenant longevity. Here are my four tips for making your rental the most desirable one in the neighborhood.

1. Landscaping. Most rental referrals are from yard signs and people who drive past the property to view the neighborhood and the property itself. Don’t underestimate the power of a pretty yard. Frequently mowed grassy areas, clean flower beds and property trimming of trees and shrubs can go a long way to make a strong and positive initial impression of your property, making potential renters more interested in seeing the interior of the property.

2. Exterior condition. If the paint on the exterior of your house is peeling and faded, the initial drive-past could make a potential renter drive away permanently. Maintaining the exterior of the home by touching up the trim paint and painting the exterior when necessary will make your rental home a place renters want to call home.

3. House numbers. There’s no point in advertising a property if your rental home cannot be found or can easily be mistaken for the property next door. In addition, emergency personnel need to be able to easily identify your property (this is a good tip for owners and renters). Make sure that the property numbers are clearly displayed and easily readable, from the street. This can be achieved by regularly painting your curb numbers and by erecting onto the house some large house numbers that can be seen from the street. Make sure your rental can be found and identified by potential renters and the people they may invite as guests and the emergency personnel, who may need to find the home.

4. Don’t neglect the mailbox. A leaning, missing or broken mail box can send a message to a potential renter that you do not care enough to make minor repairs to the property. After all, new mail boxes are not expensive investments and repairing the posts for them are generally simple and easily done. A sad mailbox could signal to a potential renter that the interior of the house is as sad and that a landlord will be difficult to deal with when it comes to making home repairs.

Don’t neglect the exterior of your rental home. It is the first impression a renter will have of the type of landlord or property manager you are and what they can expect in the future. Sadly, you will never know if a potential renter was disappointed with the exterior of the home as most will not bother contacting the leasing agent if they were put off by the home’s exterior. A renter may even overlook minor imperfections in the interior of the home, if the exterior makes them interested enough to enter the home for a viewing.

What makes a good rental property?

Why what you buy is as important as where you buy.

So you’ve decided to buy a rental property and you are working with an agent to find that “right” property to purchase as a rental for others to live in.  What makes a good rental?  A lot of real estate agents appear to believe that distressed properties that they are not having much luck selling to others make good rental properties.  Even when I worked as a licensed realtor in California, I would never have encouraged an investor to invest in distressed property for a rental, unless that investor was willing to restore the property to pristine condition after a thorough home inspection that identified all of the issues with the property and a commitment to restore and repair those as new.

Any work not done on a distressed property, has the potential to create a habitability problem for a renter which will cause a landlord numerous headaches.  Habitability includes heat, ability to cook, hot water for showers and a leak-free, safe shelter, though most local municipalities add substantially to this list and a rental owner must know what the local regulations are before proceeding to list a home for rent.  It has been my experience that one of the first major items that is neglected in a distressed home is the roof.  Roofs run in the tens of thousands to replace and most owners of distressed homes find that they are unable to pay for the basic repairs and maintenance to a home, let alone a several thousand dollar roof.  If a roof is leaking at all, a home is uninhabitable and the roof must be water tight in order for it to meet the habitability requirements of a rental.

Another neglected area of a distressed home is the electrical wiring.  As homes age, the electrical wiring often needs updating and repair.  Many distressed homeowners neglect the wiring in their homes or can be unaware that there is even an issue with wiring.  I purchased a three-floor, Victorian home where the third floor had not been used or lived in for decades.  In fact, it had been sealed off to preserve the heat on the bottom two floors.  When I opened it up to reveal the most beautiful rooms with authentic, Victorian wood details, I had to remove the old knob and tube wiring in order to make the third floor safe for habitability.  The wiring problems were only apparent when we removed the old lathe and plaster (which was falling off the walls in chunks).  The rest of the house had been rewired, but since the previous owners had no intention of using the third floor, they had not bothered to remove the old wiring and rewire that floor.  Had I not engaged in the renovation of the third floor and left it sealed up, I may never have become aware of the old wiring issues on that floor of the home.  Even though it may have been attractive to have tenants on that floor, without engaging in a proper restoration and removal of potentially dangerous conditions, it would have been irresponsible to have anyone residing in that portion of the house, even a family member.

These are just two examples of why purchasing a distressed home for a rental may actually be inadvisable.  I sympathize with real estate agents who struggle to sell distressed homes, but they do not make suitable rentals unless the investor is willing to invest all of the money necessary to make the home completely habitable.  It should also be a concern for an investor that even if a home is brought to code for habitability according to local regulations, parts of the home may become uninhabitable within a very short period of time after the tenant is permitted to move into the home, simply because of the age of the home and the lower urgency of those particular repairs.  While the local government has regulations describing what constitutes a habitable home and those do protect tenants, rental income real estate investors should make sure that they always have the financial ability to maintain and repair a home within those regulations.  That financial ability can become more challenging when a home is purchased with existing repair needs.

So, here is my list of what to do to make it easier for you to purchase a great rental property:

  1.  Enlist the services of a real estate agent who understands what your financial ability to pay for repairs now and in the near future truly is.
  2. Be very clear about what repairs you are willing to make and what repairs you are not willing to make.  While a distressed home may seem like a great deal, the longer it takes to repair the longer it will be before you can generate income and, even after the home is generating income, it is more likely that a larger percentage of that income will have to be set aside each month in order for an owner to anticipate and pay for repairs that will need to be made.
  3. If you cannot afford a home in your “preferred” neighborhood, try the neighborhood next door (assuming it also meets the “best places to invest” criteria, of course).  A great real estate agent will never allow you to be narrow-mindedly specific about a neighborhood in which you should purchase a rental property, but will go over the pros and cons of investing in a general geographic area.  This will help you find the best rental home your money can buy for the best rental return you can expect to achieve and without the headaches associated with major repair costs.
  4. If you are not a contractor, a lack of contractor knowledge can make a distressed home a money pit, rather than an income-generating investment.  So, if you are still determined to purchase a distressed property, engage the services of a trusted contractor who can give you realistic and practical estimates for the necessary repair work to the property.  Don’t allow the contractor to suggest cutting corners.  Most reputable contractors will not allow you to do this, but investors are sometimes so concerned with the cost of repairs that they will ask a contractor if there are short-cuts to the repair issues.  Don’t ask.  In fact, someone without a construction background of any kind is well-advised to avoid a “fixer-upper,” in the first place.
  5. Buy the most house you can for the dollars you have and be willing to make minor repairs to bring the home up to code and fully habitable.  Your tenants will appreciate a clean and safe home.  One of the biggest errors a landlord can make is assuming that if the rent is low, a tenant will be willing to live in less-than-favorable conditions.  This is not only short-sighted, it is illegal and can lead to a landlord being cited by the local authorities.  If a home is cited by local authorities, the tenant may be asked to vacate the property, engage in repairs to the property at the cost of the rental income, or be due monies from the landlord.  None of these situations is consistent with rental income property investment goals and should be avoided at all costs.
  6. Always keep in mind that your rental property is your tenant’s home.  Yes, it is true that some tenants abuse rental homes and damage them without concern for the cost to the landlord, but if a landlord or property manager has done his or her due diligence with regard to tenant screening, then it is safe to assume that most tenants want a comfortable, clean and safe home for themselves and their families.  We tend to have an emotional attachment to that place we call home and we deserve that place to be safe and secure.  Great landlords can achieve long-term, tenant retention and timely rent payments by providing a home for a tenant, rather than simply a roof overhead (especially if that roof is leaky!)

Rolling out our new look

 

 

By: Eveline H. Brownstein

rentUSAnow.com has rolled out a new logo and new colors throughout the website.

Lots of hard work went into the creation of the new logo, which was refined and perfected by Bob Post of PG Promotionals, of Red Bank, New Jersey.  Many people contributed ideas and helped me decide on the final design.  Nick Berkland, a successful car salesman at Royal Oak Audi in Alberta, Canada contributed the USA image and was the person who convinced me that the logo needed changing.  My visionary in all these matters, Kevin Squires, helped me pick from a variety of designs I created, as did Jen Packer a neighbor and marketing guru and Anette Menzel who owns BeautyAura.com and who is a European Image Consultant, with extensive experience in making people look fabulous.

We are now embarking on an intensive marketing campaign to accompany our new look and we welcome your feedback on our efforts thus far.