5 Ways to Ensure Tenants Change Their HVAC Filters

HVAC is an acronym that all landlords should become familiar with. HVAC stands for Heating, Ventilation & Air Conditioning (HVAC). The HVAC system is that will keep a rental unit cool in the summer and warm in the winter. That means that the HVAC unit has quite a huge responsibility in making your rental unit comfortable for tenants all throughout the year. 

This means that keeping the HVAC system running smoothly year-around not only saves the landlord a lot of money but that it can also cost if the HVAC system breaks down. 

What can a landlord do to ensure that the HVAC system stays up and running? Well, one simple step that can be taken is to ensure that the tenant is changing the HVAC filter on a regular basis.

How does the landlord ensure that their tenants are changing their HVAC filters regularly? Well, there are several approaches a landlord can take to ensure that the HVAC filters are changed in their rental units regularly. The following are a 5 of the ways a landlord can choose to approach this matter:

1. Make It Part of the Leasing Contract: Consider making it part of the lease that the tenants are responsible for replacing the HVAC filter on a regular basis to prevent the HVAC from having maintenance issues in the future. If the HVAC filters are not changed regularly the landlord can point out that the lease was not followed and that can make the tenant responsible for damages that the unchanged filters cause to the unit.
2. Consider Providing Residents HVAC Filters: The amount of time between HVAC filter changes will vary based on the unit's occupants and their needs, however, the average time between HVAC filter changes should be about 3 months (90 days). If you add a pet (cat or dog) to the unit then the filter should be changed every 2 months (60 days). Adding more than one pet (cat or dog) to the unit and the filter should be changed every 20 to 45 days. Providing tenants with the HVAC filters to change them often as they need to (based on the unit's occupants) gives the tenants no excuses not to change them on a schedule.
3. Change the Filters During Quarterly Inspections: Have the HVAC filters changed during a scheduled quarterly (every 3 months or 90 days) unit inspection. Many landlords do quarterly inspections for units (especially those with children and/or pets living in them) to ensure that there is no significant damage done to the property. This presents a great time for the landlord to change the filter in the unit to ensure that they do not go unchanged.
4. When the Filter is Inserted - Write the Date On the Side: Writing the dates on the filter when you provide it to the residents or change the filters yourself can give you a clue as to when the filters were changed last. If your unit has been recently vacated and you have HVAC problems and find a filter that is two years old, you will know what the reason for the issues are. Then you will know if the tenants who were neglecting to change their HVAC filters could have possibly contributed to the HVAC problems that you are having.
5. Let the Property Management Company Handle It: If you hire a property management company that oversees your properties, consider having them check the HVAC filters as part of their assigned maintenance for each unit. Property management companies can ensure that tenants are responsible and changing the filter if that was stipulated in their lease or ensure that they are doing it on a regular basis if it's considered "routine" property maintenance.

These are 5 key ways that landlord can incentivize their tenants to continue to change the HVAC filters and keep the unit running smoothly.

Conclusions:

These aforementioned measures can make it clear to the tenant that they need to be changing the HVAC filters regularly so that the HVAC system stays in good working condition. Ensuring that the unit is cared for properly can help the landlord avoid major expenses and repairs down the road.

10 Expert Tips to Keep in Mind to Ensure a Great Open House

Holding a successful open house is key when it comes to helping sell properties quickly and when real estate agents have to turn over properties for their clients. Open housesare when potential buyers see the home and determine if that specific property will meet the needs of their family (and their budget). Putting your best foot forward is crucial to ensuring that clients leave with the best possible impression of the property and are interested in making offers on the house that they saw.

Organizing and putting on a great open house is key to helping give visitors the best first impressions possible. Having said that, the following are 10F great tips to keep in mind when hosting an open house that will leave viewers coming back with irresistible offers:

1. Greet Everyone As They Enter: First impressions matter in the real estate world and there is no better way to make that impression than to introduce yourself to each person as they come in the door. Being there to support them through their tour and guide them through the open house helps to leave a "good taste" in their mouth and ensures that they notice all of the perks and selling points that make the property unique.
2. Learn About the Area: Understand the neighborhood and area that the home is located in. For example, if the area has a low crime rate that helps prospective homeowners feels safer or if the area has great schools it's up to you to highlight that! If it's close to the interstate or highway for an easy commute or has shopping nearby that adds convenience to the family's life it's up to you share with prospective buyers. The more perks the area offers the more people that will want to move there as they see that it fits their lifestyle.
3. Advertise the Open House: Sharing information about the open house both on social media and on the internet is a great way to get the word out that another new and awesome property is on the market! Hanging up signs around the neighborhood and also putting your information in newspapers is another way to get the word out. Using TV and radio advertisements helps also. Any way to share and spread the word is worthwhile. The more people who know about it, the more that will come if they are in the market for a new home. Finally, more people seeing the property means there's a better chance that someone will buy it.
4. Consider When You Are Holding Open Houses: Most open houses should either be held at night (but not too late - no later than 8 pm to 9 pm at the latest) and weekends. However, offer the option of customized viewing times for people who work an irregular schedule or have obligations that prevent them from coming at "peak" hours. The more flexible you are the more people that will come see your property which increases your chances of a speedy sale!
5. Provide Hor'Dourves & Drinks: Give clients a reason to hang around a bit longer. Providing light Hor'Dourves and drinks allows clients to stand around and chat with other open house guests while they enjoy a refreshment. It adds a nice touch to the event and makes the clients feel like it's appreciated that they came out. It doesn't have to be fancy but simple snacks and drinks can add a great finishing touch to the feel of an open house.
6. Up the Curb Appeal: Providing a nice, clean front yard and view of the home will give customers the best first impressions possible. Keep the home looking lively but not over cluttered with landscaping. Cut the lawn. Powerwash the porch and driveway to keep them as bright as possible. Ensuring that everything is in place will help clients picture themselves in that home before they even step inside!
7. Create a Neutral Environment: Keeping everything neutral helps appeal to more people's tastes. Using lots of neutral colors for everything from the color the home is painted to the walls painted inside helps people imagine their lives in that space. The painting also seems easier to many people if it's a white or beige color rather than bright, bold colors that may turn people off immediately. Light floor and wall colors also help open up space and make it look even bigger than it really is. Leave the slate blank so people can picture customizing it to their styles rather than doing anything too extreme that will turn potential buyers off from the property, despite how great it otherwise may be.
8. Clean Up After Each Open House: Keeping the home clean is the biggest key to selling it. Simple things like ensuring the beds are made properly and the pillows on the couches are organized is key to putting a neat and tidy look forward. Cleaning up footprints and vacuuming rugs and carpet can provide a clean, put-together look that will allow customers to see the home in the best light. 
9. Provide Take-Home Information: Provide basic information such as floor plans and basic information on the home and neighborhood for people to take home. This helps them when comparing their favorite properties before they make an offer. Referring to that can remind them of what they saw and helps them realize how great your property is compared to what else is on the market at that time!
10. Thank Everyone For Coming: Just like you greeted people when they came, leaving them with a warm and sincere "thank you for coming" makes them feel like their presence meant something and helps them feel appreciated. It also leaves them recommending you as someone other friends and family might use than needing someone in real estate to help them sell their home or move.

These are 10 great tips to help a real estate agent who is hosting an open house do so in a way that clients won't soon forget! 

Conclusions: 

Great curb appeal helps the customers relate to the home before they even step inside. Being a polite and gracious host will make a great first impression. Showing them around the property helps them note all of the property's perks that they may otherwise not have noticed. Providing information about the property helps them go home and compare it to other "favorites" they saw and ensures that you showcase what a great deal this property is compared to others on the market. Those great impressions can lead to more offers and faster sales times, even for newer real estate agents.

6 Tips for Determining Your Rental Renovation Budget

When it comes to renovating a rental property, it's easy to splash out all kinds of excess money on the property without being sure that you will get the money back when you go to the rent the unit out. This is why it's important to have a renovation budget for the rental unit(s) that you are looking to remodel. You want to consider a balance of both ensuring that the upgrades are tasteful and modern and will appeal to the renter group that you are targeting but you must also do it methodically and on a budget to ensure that you are not spending more than you can get back out of the unit in the future.

The following are 6 great tips to consider when renovating a rental unit to ensure that you get your money back and that you don't overspend making the unit feel both modern and livable as possible:

• Determine what you are willing to spend on the renovation and set the maximum amount you are willing to spend on the project.
• Consider where you might be able to get "cheaper" alternatives that still provide the same effect. For example, consider alternatives to granite countertops such as such as marble or consider using laminate flooring rather than its more expensive counterpart of wood flooring.
• Consider what tasks you might be able to do yourself to help save money and which ones you don't want to skimp on hiring experts to help you do.
• Consider possibly renovating one room at a time to keep the costs in check and the project from taking too long so that your rental unit is not sitting empty and losing won't lose too much money at one time.
• Consider energy upgrades that are green and energy efficient so that they are able to save money on utilities and other costs associated with the use of energy in their unit.
• Consider outdoor maintenance and be sure to keep the area appealing and looking nice. The outside of the home is what the prospective tenant will see first, so make that first impressions count. 

These are just 6 great tips and ideas to keep in mind when you are renovating a rental property for potential tenants. In the end, you want the space to look modern and livable yet you want to be sure that you are not spending more money than you will be able to get back from the tenant renting the property. 

Conclusions: 

When you are renovating your rental properties be sure to stick to your budget so that you can get your money back in the amount that you are able to ask for the monthly rent. While you want to upgrade the rental to make it modern and livable you also want durability to play a role as the more durable the materials you use are the less you will have to do when renovating in the future. That balance should create a clear idea of what your renovation budget is to ensure that you are both able to make your money go far as possible for you and that you are able to get your rental back on the market soon as possible.

5 Renovations to Make Your Rental Homes More Durable

When you are renovating your residential rental properties your first goal should be to make the residence more durable so that it lasts for the duration of more than one or two tenants' stays. Investing in good, quality construction materials and making smart renovations can help you both reap the most return on your investments (you can charge more rent for renovated spaces) and to help the property last through several to many tenants' stays.

When you are making renovation upgrades to your rental units, the following are 5 things to consider when it comes to making your property durable as possible:

Choose a More Durable Flooring:

There are a few options when it comes to the most durable flooring for a rental unit, especially if it's going to endure the beatings that both children and pets can bring along with them. Choosing something relatively inexpensive will help limit your investment into the upgrade, while also making the return on your investment high as the flooring should last through several or more tenants (depending on the length of their stays). Some quality options you can choose from include laminate, vinyl, and engineered hardwood (they are made with wood veneers and snap together easily as laminate flooring and don't require nailing down like real hardwood would).

Choose Practical Lights:

Practical lighting not only is relatively inexpensive to install but it also helps light up each and every room to allow tenants to have a well-lit residence that makes it easy for them to go about their daily lives. Traditional lighting such as track lights or switched outlets are quite neutral in taste and will meet the needs of almost all of your tenants.

Choose Durable Materials For Your Doors:

Not only do doors get used on a daily basis as people open and close them (and sometimes slam them!) for privacy, they also play a vital role in blocking out excessive noise from places like bedrooms where people need the home to be quiet. Quality materials that will withstand years of use and also absorb excess noise include fiberglass, aluminum, vinyl, and sturdy woods. Tenants will also appreciate having quality locks on their doors that are in good repair and work so they can secure their privacy as they wish. 

Consider What Your Countertops Are Made Of:

Considering that the kitchen is the most-used room in most homes, you will want to ensure that you have the most durable countertops possible. All the food preparation and baking can take a toll on many sorts of countertops, especially those made of softer materials or that are easy to scratch. The best picks for durability? Try a durable material like quartz or granite for something higher end, for something more affordable and budget-friendly consider going the way of laminate or tile.

Choose Quality Appliances: 

Many tenants will prefer stainless steel appliances in their kitchens. Most are considered durable and are relatively easy to clean, however, be aware that some appliances that do not have an appropriate finish may show every single smear and fingerprint that they come in contact with. Frequent cleaning is often a most to make these appliances look their best, yet many feel it's worth it to enjoy these durable appliances both for their aesthetic look and their performance in preparing and cooking food. 

If you choose to go for other appliances, consider some of what JD Powers says are the most durable brands on the market as of 2017 including the likes of LD, Bosch, and Maytag to name a few. 

Conclusions:

These are 5 of the top upgrades that can help add durability to your residential rental units without adding a huge bottom line to your business expenses. Moreover, if you make the initial investment, many of these items will withstand years of wear and will cut your costs in future years. Investing in durable materials will not only make fewer phone calls from tenants need things fixed but it will also help you avoid additional expenses between each and every tenant you have to replace less durable items.

What to Charge? Deciding on Monthly Rental Rates

You've just purchased a rental property, but before you can start recruiting tenants, you'll need to decide how much to charge for rent. Setting a reasonable rental price is extremely important; charge too much and you won't get any rental applications. Charge too little and you'll fail to make a profit.

By taking a few factors into consideration, you'll be able to set the right rental rate with confidence.

Maintenance and Upkeep

Start by considering your immediate and long-term maintenance costs. This should include not only expenses you can plan for (such as landscaping and general maintenance), but unplanned expenses as well. This can include anything from a burst pipe with water damage to removal of a dead tree.

Lost Income Between Tenants

You'll also want to consider potential losses when you have vacancies in your rental unit(s). While a unit sits empty, you're losing money because you're not collecting rent but you're still paying to keep the unit maintained. The smaller the turnover time between tenants, the better off you'll be financially. Still, you should plan accordingly in case you end up with a gap of a couple of weeks or even a full month of vacancy.

Area Rental Prices

Make sure your rental rates are competitive with similar properties nearby. There are plenty of resources for researching area rental rates, including sites Rentometer, which will help you determine if you're charging too much or too little based on area prices.

No matter what you end up deciding to charge for rent, consider how a property management company can help you optimize your earnings. Property management companies can handle things like routine and emergency maintenance, as well as finding new tenants to fill vacancies--all for a predictable monthly cost. Could hiring a property management company be beneficial to your rental property?

6 Renovations That Make Your Rental Family-Friendly

When you are renovating your residential rental houses to rent out to tenants, you want to ensure that you are doing everything you can to ensure that everyone is as comfortable as possible. This can also be challenging given that each family will look for something different that fits their specific family's needs. Moreover, as families are increasingly diverse in who makes up the family and what they need to accommodate them individually and as a whole, it can feel like being a landlord is more challenging than ever.

The good news is, there are still age-old items that are generally sought after in rentals to make the unit friendly and usable as possible to everyone in the family. The following are 6 renovations to consider next time you are upgrading your rentals to meet the needs of as many family members as possible:

Consider Properties with Higher Bedroom & Bathroom Counts:

Whether you purchase the property with more bedrooms and bathrooms or build an addition onto the existing structure to add more bathrooms and bedrooms to the house, many families will need more than a couple bedrooms to consider moving in. Many of these families may have multiple children for whom they would like separate bedrooms or they may have elderly parents living with them that need additional space and privacy. Providing extra space makes the rental more attractive to larger families.

Add Bathtubs:

For many children, showers are not a family-friendly option. Ensuring that at least one bathroom in the rental has a bathtub for bath time can ease many family headaches of imagining trying to figure out how smaller children are going to use the shower. 

Consider a Fenced-In Yard: 

Fencing in properties can allow for small children to play outside more safely or for pets to romp around without their leash. Providing a safe, secure yard will be a must for many families. A quality 6-to-8-foot fence with locks on the outside that does not allow children to easily get out will do just that.

Choose Darker Colored Carpets & Harder-Surfaced Floors:

Choosing medium to dark shades of carpets for the home or hard-surfaced floors such as linoleum or vinyl will make life easier for many families. Not only are these floorings more durable in many respects they also hide spills and make cleaning up stains much easier than light-colored carpets which will show every single bit of dirt tracked through the area. Surfaces that are easier to clean up and that are harder to stain will not only endure more use but will also stand up to the messiness of family life better than beige or white carpet. 

Install Sturdy Handrails Along Staircases:

If you have a rental that is more than one story tall be sure that the stairs have sturdy railings for tenants to hold on to. If the tenants are elderly or have someone staying with them who is not so steady on their feet, steady handrails on both sides of the stairs can save them from what could otherwise be a devastating fall. Same for small children who will grab the banisters as they learn to pull themselves up the stairs when they aren't so steady on their feet, either. 

Provide Adequate Lighting:

Providing adequate lighting with different adjustment settings (i.e. low, medium, high) can provide the tenants the option to choose how bright the lights are depending on the activity they are doing. It will also allow different family members to have different levels of light based on personal preference. Some people may like brighter lights while others prefer dimmer lights. Allowing this customization will be sure that all family members are well-suited in your rental property.

One Final Word: Consider Pet Policies:

As a landlord, yes, pets can be a liability and they can cause damage to the property. However, from the tenant's viewpoint, pets are part of their family. The leading reason tenants refuse to move into a rental is because they are not allowed to bring their pets (part of their family) with them. Most rentals do allow small caged animals or animals in tanks such as goldfish, hamsters, rabbits, gerbils, guinea pigs, reptiles, etc. into the premises. Many also do let tenants have cats and dogs. 

If your rentals are "NO PETS" as a policy, you may consider this again. You can certainly feel free to charge pet deposits ($250 to $500 is common) to protect your property, even a $20 monthly pet rent is common in some rentals.  Limits of 2 non-caged pets (cats or dogs) is also very normal. Same with breed restrictions (against aggressive breeds) or weight limits depending on the size of the rental. That way your property is protected, yet you will appeal to many more renters if their furry family members can come, too.

Conclusions:

In the end, it's all about making your rental as family-friendly as possible for everyone involved. These basic safety features and amenities are what many families will look for and will keep them coming back to rent from you again and again.

5 Ways to Get Past the Third House Slump

 

The "third house slump" might sound silly to many people yet many investors know that many banks and other traditional lending agencies begin to balk when the talk of purchasing any residential investment properties past the 3rd house. There are a number of reasons that banks and other lending agencies feel this way, however, as an investor you personally know you want a lot more than just a few properties to rent ou, considering you want to make your business lucrative as possible.
So, what is a residential real estate investor to do?
Fear not, there are ways around this "third house slump" as they call it. The following are 5 ways that you as an investor can get past that slump and continue to invest in properties and grow your business:

Get Approval From a Variety of Lenders:

This may sound ridiculous at first, however, most lending companies will limit an investor at borrowing money for mortgages on 3 to 4 properties at the most. However, the good news is that there are a few lenders that are known as "investor friendly" and they may be willing to give you loans for more mortgages - up to 10 to be exact.
So, that's a great start! Using some of these "investor friendly" lending companies can help you get started with up to 10 properties (the limit allowed by law) to rent out to potential tenants. These "investor friendly banks" are not the big names you know such as Wells Fargo or Chase but are rather smaller, more local lenders who are most likely not doing business nationwide. Some research will have to be conducted to find some smaller "investor friendly" banks and lending agencies in your area but they are out there and you can find them.

Consider Blanket Mortgages:

Blanket mortgages cover mortgages for multiple properties in the same loan. Consider getting a loan that may cover more than one property. That way you have fewer loans yet more properties to rent out under those loans, especially since many commercial banks will limit you to a few (maybe up to 10) mortgages being taken out at any one given time. This way you get more properties to invest in out of the deal without needing individual mortgages for each one.

Consider Private Lenders:

Sometimes private lenders may not have the big, impressive name of a Wells Fargo or Chase but these smaller lenders can make great alternatives to borrowing more money when you want to acquire more properties to grow your investments. This may require some research on your part, however, talking to other investors in your area may help you find other private lenders that you never even knew about as well.

Pay Off Some of the Properties You Have Current Mortgages On:

Paying off some properties that you already have a mortgage on is another great option you have as an investor. Once some of the mortgages are paid up, you open up more capital to spend on new properties as you will have fewer expenses once the mortgages on your existing homes are already paid off. Then you will be able to get mortgage loans out for a new property, even if it's from a private or specialized lender.

Save Up To Pay Cash:

If you are a fairly large investor that generates $10,000's or more of revenue per month, consider saving up cash to pay outright for properties. That way there is no mortgage company or loan required. If you can acquire properties for cash, the sky is the limit on how many properties you can own. This process may take longer to acquire each property but the trade-off of owning them 100% and not owing on a mortgage can make it worth it.

Conclusions:

These are just some of the ways that you can invest in more properties so that you have more residences to rent out and more chances to bring in money and grow your business. It may take some strategic planning on your part and possibly even a partnership with someone else who has experience in the industry to get things off the ground. However, one you get the first few properties in and are making a good quantity of money, saving to invest in more properties will help you grow your investment further.

5 Ways to Limit Your Liability As an Investor:

When you are the investor who is putting money up to purchase residential rental properties that people are staying in, you are putting yourself on the line in terms of liability. However, the good news is that there are measures that you can take to ensure that you are protecting yourself from liabilities and limit what you yourself are responsible for.

The following are 5 ways that you can maximize your profit and protect your investments while minimizing the liability you on you as an individual at the same time:

Create Paper Trails & Document Everything - Preferably Through A Property Management Company:

Documenting everything you do and dating the documents helps you provide a "paper trail" to provide evidence that you have followed the required steps and done everything "by the book" in the case of an issue arising.

Even smarter?

Hiring a property management company to manage your residential real estate investments for you. These companies are professionals trained to know the laws by which you must operate and are able to guide you on your way through all the laws and the "red tape" surrounding everything from purchasing properties to filing taxes to filing for evictions when tenants simply do not obey the rules or pay the rent on time.

Using one of these companies ensures that you are less likely to have an issue with the law. It also gives you the assurance that you are following the laws in place to protect tenants from illegal actions and ensures that you are not doing something wrong without even knowing it. These companies oftentimes have years of experience in the industry and can help teach you the right way to do things while handling the nuances of day-to-day operations for you while you focus on increasing your wealth and engineering further business growth.

Utilize A Land Trust When Purchasing Properties:

The problem with using your actual name on the properties that you invest in is that these records are visible and open for the entire world to read. If you use your own name on the properties you invest in you are making yourself a very easy target for anyone who wishes to come after you such as (past or present) tenants, lawyers, and attorneys.

The way around this?

Use a land trust: a land trust is an effective and simple way to keep your ownership of all of your residential rental properties private and to keep your ownership of these properties. This trust is a form of revocable, living trust that is used to take the title on a piece of real estate. This helps the investor who doesn't want to be seen by the public to keep a very low profile and allows them to make it so that their properties and wealth as well as investments are not as easily discovered.

Determine Which Type of Corporation Gives You a Tax Advantage:

Considering your investments as a corporation will be an effective tool to help you with the buying and selling (also known as "flipping" of properties. If you do indeed do this sort of business then having your business set up as a corporation so that the it can be the beneficiary of your trust, which will help limit your liability. However, if you are labeled by the IRS as a "dealer" there will be a 15% tax rate on your profits to cover what is known as a "self-employment tax" which is paid by anyone work works for themselves in any sort of business dealings.

Understand If An "S" or "C" Corporation Suit Your Needs Better:

If you are filing as a corporation, you will need to know if you are going to file as either an "S" or "C" corporation, it will largely depend in your business's needs. One is not largely "better" for residential real estate investors than the other. It's a matter of doing the research on the IRS website and determining which class of corporation will better meet your residential real estate investment needs.

Consider Joining a LLC:

A Limited Liability Corporation (LLC) is another tool that you can use to help limit your liability as an individual investor through a statute that is passed by each individual state. Each state will have different rules as to how their LLC's will operate, however, the most states do not restrict ownership and participation so this allows investors and corporations to participate in the LLC and to file for LLC status and protection.

Generally, the only types of entities that cannot be LLC's are entities such as banks or insurance companies. LLC's help by providing businesses with perks such pass-through taxes while most have no residency requirements. You are offered legal protections and limits the liability you personally have by owning the business (in this case rental properties) that you own, which in turn will protect your financial assets. LLC's also give your company or corporation increased credibility so that suppliers and other business partners are more likely to wish to work with your company knowing that you are authentic and real (not a scam).

Conclusions:

These are 5 of the actions that you can take or consider to help limit your liability as a residential real estate investor while still helping yourself grow your business and increase profitability without saddling yourself with additional liability.

In the end, working with industry professional who can help guide you also ensures that you are doing things properly, without causing issues for yourself that may come back to you in the future.

3 Levels/Tiers of Property Management: What Level of Property Management Fits Your Investment Style?

Every landlord needs something different from their property management company depending on a variety of factors. These factors include things such as how many residential rental properties they own to their management and investing style. Having said that, property management companies need to be different things to each investor that they work with.

Some investors will want the property management company to handle everything from repairs to inspections to resident complaints, while others will only want the property management company to handle certain key aspects of their residential rental units.

This is why most property management companies have developed something of a tiered system to provide different levels of support to investors based on their investment styles and their needs.

The following is a brief glimpse at what those levels are and what each one will usually cover:

Tenant Finder:

This first level or tier of assistance simply helps the landlord find appropriate tenants to fill their residential rental properties. The property management company uses their backgrounds, connections, and background check systems to thoroughly screen tenants before they approve them to begin to the actual rental process. After the tenant's initial screening, they are turned over to the landlord who finally decides if they are going to allow them to rent one of their properties or not, giving the landlord some say in the tenants that they rent to as well.

Landlord-Involved Plans:

The second level or tier of assistance is a landlord-involved tier. The arrangement of this tier allows the landlord to be involved with the management of his properties and allows him to do certain tasks if he wishes. These tasks include items such as finding & approving tenants, collecting rent payments, personally following up with tenants who have late payments, and being the main contact when repairs are needed. At this level, the company is also required to provide information to the landlord (investor) directly including a monthly report of rents collected, expenses paid, and overall profit levels.

Complete Property Management:

The third and final tier of management and provides the landlord with a complete property management experience. In these situations, the company takes over all day-to-day operations that are related to the day-to-day operations of the properties. This means that the company will do everything from finding you appropriate tenants to ensuring that all tenants are screened and that the issues/problems/complaints/questions/etc. of existing tenants are promptly taken care of at all times.

This level or tier of management also allows companies to handle the financial aspect of the investments for the landlord as well. This will include keeping all payments up-to-date and current including mortgage payments on the properties, paying HOA fees, filing taxes, etc.. This is the level of property management most often used by established landlords who are more interested in focusing their time on making new investments and growing their business and profitability, while leaving the property management company to handle any periphery issues that may arise in the meantime.

Conclusions:

Property management companies can be different things to different landlords. There is no right or wrong way to utilize the services that a property management company offers. It's all about the size of your investment and the goals you have as an investor. Property management companies are here to help, so allow them to utilize the tools and services they offer to best meet your needs.

2 WAYS PROPERTY MANAGEMENT COMPANIES REDUCE TURNOVER TIME

If you are a property owner who rents out their property, there are many good reasons to consider using a property management company to handle the business of renting for you. Here are two ways these companies ensure properties do not sit vacant for long periods of time.

PROPERTY MANAGEMENT COMPANIES FIND LONG-TERM, RELIABLE TENANTS

Part of a property management company’s job is to find the right tenants for the rental properties they manage. They put processes in place to vet potential occupants based on a variety of factors, including ones important to the property owner. The process typically includes an application, reference checks, and background checks to verify the information that has been provided.

In this way, they make sure whoever rents the unit will be able to pay rent on time, properly care for, and uses it in the ways it was intended to be used while the tenant lives there.

After the occupant moves in, the company is usually responsible for maintenance and upkeep on the property as well as collecting rent. So long as they communicate well with the renter and make sure any upkeep or maintenance issues are addressed in a timely fashion, the chances of the occupant renewing their lease is very high indeed.

THEY REDUCE THE WINDOW OF TIME BETWEEN OCCUPANTS

One of the things a property management company does, besides finding the right tenant for a unit, is make sure the unit sits vacant for as little time as possible. As soon as they know the current tenant is planning to move out, they start the process of finding a new occupant for the space. Doing this ensures the unit is vacant for a minimal amount of time, especially if the new applicant is approved by the time the current tenant is ready to leave.

IS IT WORTH IT?

While finding long-term, reliable tenants and reducing the time between occupants are important considerations, they are not the only things to keep in mind. In the end, there are many factors to weigh before hiring a company to manage rental properties. Do your research, take your time, and find the property management company that best suits your needs before you sign a contract.

8 CHANGES THAT NEED TO HAPPEN BEFORE YOU GET NEW TENANTS

When landlords are changing apartments out between tenants there are basic maintenance items that will need to be done to ensure the unit is ready for the next tenants to move into. Doing these routine maintenance items is key to keeping the units all looking neat, clean, and in top shape for the next tenant who is going to move in.

The following is a checklist of 8 things that need to be done between each tenant moving out and the next one moving in:

• Repair Any Damage Caused By Previous Tenants: If there is anything that needs replaced or repaired you will have to take care of that before welcoming new tenants into the rental unit. This will include things like a hole in the wall or a broken window. Maintenance of the unit will be necessary before the next tenant moves in to help ensure that the next tenant can live safely and healthfully in their new home.

• Clean the Property: Paying a professional to come in and clean the unit will be necessary before the next tenant is able to move in. It will help get rid of any dirt and grime left behind from the last tenant and make it sanitary for the next tenant to move into the property. This especially includes areas like the tub, toilet, sinks, refrigerator, and oven as well as washer and dryer and any other appliances that are in the unit for the new tenant to use.

• Deep-Cleaning the Carpets: Having a cleaning service come in and helping deep-clean the carpets will help remove all the dirt and grime that was left behind from the previous tenants. It not only keeps the unit clean but helps preserve the life expectancy of the carpet to have it cleaned on a regular basis. It also provides a nice, clean place for the new tenant to move into.

• Checking for Insects/Bugs: This might sound weird but many parts of the country have issues with a whole variety of insects at various times of the year. Ensuring that the unit is clear and free from bugs especially around windows and doors is vital before a new tenant moves in. Nothing will turn someone off faster than finding a dead bug or bugs in their new rental!

• Check Heating/Plumbing/Electric: Ensure that all utilities in the unit are working properly before allowing tenants to move in. This means they will be able to turn on the heat or air conditioning unit to keep the temperature comfortable or are able to turn the oven on to cook a meal. The tenant will need to be able to use electric plugs in the walls safely meaning there is no risk of sparking or other issues that can cause electronics to overheat or risk of the tenant getting shocked or otherwise injured. Checking all this to make sure it’s in order between tenants is vital to avoiding a future issue once new tenants have moved in.

• Review The Entire Lease with the Tenant: Go over each lease section by section when the tenants sign it so they understand what is allowed and what is not while they are renting the unit. This will include what quiet hours are in the neighborhood or this may include things like how many vehicles they may park on the premises or how many people are allowed to stay in the unit and for how long if they are not listed on the lease. It will also make it clear how many pets or what kinds of pets are allowed in the rental. Having them sign each section as you review it can help eliminate the questions and misunderstandings about how tenants are expected to conduct themselves.

• Change the Locks: Changing the locks before new tenants move into the unit is vital to keeping them safe and ensuring that people from past rentals don’t have a key to this person’s residence. Keeping everyone safe is the best bet and changing the lock with each tenant is the best bet.

• Collect Security Deposit & First Month’s Rent: Security deposits cover you as a landlord in case there is damage to your property. Requiring rent to be paid up front ensures that you are not going to have people living there not paying rent, so collecting it UP FRONT is in your best interest.

These are just 8 of the great tips that landlords can use to help ensure that their their tenants are moving into a clean and comfortable rental and are ready for them to live in and enjoy while they are staying at one of your properties.

6 Things Tenants Look for in a Rental Property

October 29, 2018Edit

Although things like location, walkability, and nearby amenities matter to tenants looking for a rental home, those decisions occur before you buy the property you intend to rent out. To make your existing rental as attractive as possible to new tenants, recognize the interior and exterior features most of them look for. These changes range from the simple to the extensive, but all can make a real difference on how many applicants you attract and what they are willing to pay for their monthly rent.

WHAT DO TENANTS LOOK FOR IN A RENTAL HOME?

One of the first considerations when deciding where to rent is safety.

OFF-STREET PARKING

Tenants want to make sure their family car or SUV will be safe from accidents and vandalism. A driveway also gives a place for kids to ride their bikes and have fun.

LOCKS AND ALARMS

Home security gives peace of mind that their belongings and the people they care about will remain safe while they live in the rental property. Install new locks with every change of tenant and make sure security systems are functioning properly.

Tenants also care about efficiency and function.

ENERGY-SAVING APPLIANCES

Not only are new ovens, dishwashers, and laundry machines easier to use, they save money on utility bills that most tenants have to pay themselves.

UPGRADED FIXTURES AND LIGHTING

With an open floor plan and plenty of natural light, this may not seem important, but properties still look and feel more comfortable when the lighting is bright and new. Use LEDs to save electricity as well.

Comfort, appearance, and curb appeal matter too.

NEAT LANDSCAPING

If the renters will manage the lawn and gardens, make landscaping low-effort but still attractive. Property managers can handle contracting with outside services if you prefer.

HEATING AND CENTRAL AIR CONDITIONING

These systems should be efficient and work very well. If the tenants cannot get comfortable in their home, they will think twice about renewing the lease.

Off-site and out-of-state property owners need assurance that these features are in good condition and maintaining their value as tenant attractors. A professional property management company can give you peace of mind that the changes you make to a property are having the desired results and a true boost to renter satisfaction.

How To Choose the Rental Properties You Invest In

Choosing the rental properties that you want to invest in can be challenging for landlords. In the end, landlords want to invest in properties that will be lucrative and will not only help them make their money back off of the investments that they have made but also to help them turn a profit.
Hand-selecting properties carefully can be the difference between losing $10,000s doing renovations before someone can event rent the unit versus simply having to spruce up the place a bit before it's "rent ready".
So What Do I Look For When Deciding What Properties to Invest In?
Anyone looking to get into being a landlord needs to know what to look for in potential properties that they will invest in. This can be the difference between investing in rental properties that turn out to be nothing but "money pits" versus investing in those that are going to help the landlord make money instead.
The following are some great tips to help new landlords decide which properties are worth investing in versus things that should tell them to "STEER CLEAR" of the property:

• Research The Area: Research the area to determine which types of homes are the most in demand at that time. This can help you determine which types of homes you want to invest in. This can be the difference between deciding to invest in townhomes versus condos or single-family units. Knowing what rents for the highest rates in that area will help you know what to focus on when you are purchasing properties to rent out.

• Set Your Criteria: Set the criteria on the properties that you will be purchasing for rental units. For example, you may only want to rent homes that are a minimum number of square feet in size or you might want to only purchase properties with a certain number of bedrooms and bathrooms. Other options for minimal requirements might include things like appliances must be from a certain year onward or that the property must be more recently renovated.

• Remember, It's OK To Start Slow: Just because you want to invest in rental properties does not mean that you have to go out and buy 25 properties to start. It's OK to start slow and build into it. There is a great article from the Washington Postthat even suggests buying a property a year is a great way to build up wealth in real estate over time. Take it at the speed you feel comfortable going at and can reasonably afford without spreading yourself too thin financially.

• Consider the Area You Are Purchasing Property Near: Consider the parts of town you are purchasing property in and how easy they are to rent out. For example, you will get more money out a rental in a safe community than you will in a community or area that has a higher crime and violence rates. Properties next to other distractions or annoyances such as an airport or train tracks may also affect the desirability of the properties being purchased.

• Have Each Property Inspected: The average home inspection will cost $300 to $500 per property. Yes, this may seem like a cumbersome expense to take on before you even purchase the property but it can save you a lot of unnecessary expenses later on. Inspections can reveal problems with the property that you otherwise wouldn't have known about. Structural issues and safety issues are taken very seriously when someone is renting a property and you are protecting both yourself from legal action and your tenants from dangers to ensure that your properties are in good condition before purchasing and renting them out.

• Understand Your Expenses When Choosing Rentals: This includes understanding the tax rates in the area. The amount of tax that you have to pay on your property will cut into your profits as a landlord. Some neighborhoods have different tax levels than others. Some cities, towns, and, counties that seem close in proximity have very different rates of taxes. Understanding this as you go in helps you calculate what you will pay before you take the leap and realize property taxes are too high. As a landlord, you pay these taxes, not the renter, so you are responsible for whatever those taxes may be!

• Consider the "Livability" of the Area: Choosing a neighborhood that is desirable to more people will lead to more successes in renting out your properties. This includes ensuring that there are good schools in the area, that the crime rates are low, and that the area has amenities people want to use and will enjoy. This will all entice people to move to the area if it's a quality neighborhood where people want to live.

The bottom line is that every area has great neighborhoods to live in and rental properties to purchase.
Finding the ones that people want to live in is the key to being a successful landlord. In the end, there are no guarantees, but ensuring that you are purchasing properties in an area where people want to live and can pay a good going rental rate will ensure that you are lucrative as possible in your future landlord endeavors.

5 Tips For How to Successfully Manage Multiple Properties

Being a landlord or property owner can be a stressful job. Add in the fact that you very well might be managing multiple properties and the job becomes even more challenging. The more properties that get involved, the trickier the entire managing process becomes. Many property owners are not sure how to handle the additional stress and balance all the responsibilities that come with managing the extra properties.
While managing multiple properties at a time is never easy, the good news is that the following are 5 tips that can help you organize the managing multiple properties a much easier process:

• Screen the Tenants Carefully: Carefully screening your tenants before they move in or utilize the property will make less stress for you in the future. Ensuring that tenants have a clean criminal background, have adequate income to pay the rental rate being charged, and ensuring they haven't had past rental issues can make your job much easier in the future. Keep in mind that no screening process is 100% foolproof, however, screening carefully can help you find more cooperative tenants moving forward. Keep in mind that this process may take more time at the initial screening process but that additional time and effort now can pay off tenfold in the future when those tenants are less likely to give you problems than the ones you don't screen carefully.

• Provide Equality For ALL: This might seem like the most obvious of all, however, it happens and sadly it happens all too often. It's not only illegal but it's also wrong to be prejudice against anyone based on any sort of race, gender identity, religion, sexual orientation, etc. for any reason. Any rentals you have on the market should hold an equal opportunity for everyone to rent that property if they are a qualified tenant.

• Pre Schedule Regular Visits: While it is very much illegal for a landlord to barge into a tenant's rented space to inspect it or see if something is going wrong, scheduling regular visits with the tenant to inspect their property is perfectly legal. Provide plenty of warning and keep the visits scheduled on a regular basis so it's no inconvenience for the tenant. Be willing to move visits if it fits the tenant's work schedule or social life. Don't make it an inconvenience for them but ensure that you are able to check to make sure things are going smoothly and that they don't need anything from you as well.

• Be Available to Tenants: While it's unreasonable to expect you to answer a phone call about a light bulb that needs to be replaced at 3 am, tenants will expect timely responses to their inquiries about issues with their rental. Setting a 24-48 hour response rate during business days will allow tenants to know that you care about their needs without making you go crazy. You won't feel like you have to be available 24/7/365 (because you have a life as well) yet it won't leave tenants feeling neglected or uncared for which is crucial to keeping quality tenants long-term.

• Set Aside YOUR Time: Even if it's a few hours per day, set aside time that you TURN OFF your business electronics and set time aside for you. Spend it with your family or do something you personally enjoy. This is critical to keeping that work-life balance in check. While it can be very hard to set limits on your work when you are self-employed in a position such as a landlord, it's vital to keep your work-life balance in check and to giving yourself time to unwind and relax.

These are just 5 great tips that will help you be the best property manager that you can be. Treating residents with respect will likely get you the same treatment in return! Be attentive to your resident's needs and their requests, comments, and concerns while also being professional and protecting your best interests. This balance will help you be the best landlord you can be and will keep your tenants happy well into the future!

7 TIPS FOR SUCCESSFUL HOME RENOVATIONS

Home renovations, property investments, or flips can be very stressful projects to undertake. It can be even more stressful if you are not sure exactly how to go about the renovation and what you should do to make the renovation go smoothly as possible.

Sure you can hire an architect to do all the work for you but if you are on any sort of budget that is quite a costly undertaking. If you are choosing the more DIY route, the following are 7 things to remember when you are going to renovate or flip a home:

• Budgeting Will Be Key: Budgeting will set a total price tag that you are willing to spend on a project. For example, if you are renovating your kitchen, you might say I am not willing to spend more than $10,000 on this project. Knowing how much you can spend will help you determine which projects are most important and will be tackled first.

• Do Your Research: Understand what features will have the highest resale value if you are ever looking to sell your home. For example, if you want both new countertops and new appliances then do some research and find which one will give you a better return value on your investment when you go to sell your home. If you ever plan to sell your home, determining which renovations offer the best return on your money you will have a better guide to determine which renovations you undertake first.

• Increase the Efficiency of Your Space: Renovations generally do not create more space. The square footage of your home is the square footage of your home, however, maximizing the space you have can make all the difference in making your home feel much larger than it did before the renovation. This is especially true for storage spaces, maximizing every inch can make the home feel like it has a lot more storage space than it did before. It will help you get the most out of your renovation and a great resale value if you ever look to sell your home.

• Consider Adding Natural Lighting with Skylights: Adding skylights to “dark” rooms such as bathrooms or closets can add plenty of extra natural light to the home, which makes these rooms more usable. A skylight is also a relatively “economic” option for your home about $400 and $1300 depending on the size from start-to-finish.

• Do Some of the Grunt Work For Yourself: Whether it’s hauling heavy objects or demolishing an existing structure to replace it with a new one, doing many tasks yourself can save you from having to hire outside labor. Laborers work is not cheap but if you become the laborer you can save quite a bit of the cost of the project by making it a true DIY.

• Visit Secondhand Stores & Recycling Facilities: You will find great deals at many junk yards, scrap metal facilities, secondhand stores, and other recycling plants. Everything from cabinets, tubs, sinks, or even front doors can be reused. You can find many of these prices at steep discounts by simply buying secondhand and renovating the items at home on your own. That way you can customize them to fit the renovations you are doing as well!

• Look At Garage Sales, Flea Markets, & Estate Sales: Many different garage sales, flea markets, or estate sales can offer great deals on gently-used or barely used second-hand furniture. This may be just the place that you find a great deal on dream piece a piece that looks like it was just made for that room you’ve been renovating.

These are a few great tips that you can follow to help make your renovation easy and effective as possible. Planning ahead is key. Make a budget and stick to it as closely as possible. This helps you undergo a smooth renovation you can afford while also adding value to your home in case you ever plan to sell your home again.