Lease Facts: Part One

 Lease Facts: Can You Require Tenants to Leave a Faucet Dripping During a Freeze?

 

 

Can You Require Tenants to Leave a Faucet Dripping During a Freeze?

In every climate, offering homes for rent comes with a unique concern: How can you ensure your tenants take good seasonal care of the property? Most of the time, landlords can complete these tasks with one or two scheduled seasonal maintenance visits. Clearing the gutters, checking drain and vent lines, trimming foliage back can reduce maintenance demand on your tenants. But what about the tasks that only your tenants can - and must - do when the winter freeze sets in?

Protecting your pipes is the single most demanding part of winter home maintenance that your tenants must do for themselves. Only your tenants can do things like open the cabinets and drip the taps to prevent pipes from freezing. But can you make them? The partnership between landlords and tenants is a complex one. But the short answer is "yes". In fact, we have several different solutions to help you address the risk of frozen pipes in a rental home.

 

Write a Pipe Care Clause into the Rental Lease

If your goal is to require tenants to take winter-care of a rental home's pipes, you can write it into the lease. The lease is a contractual agreement between landlord and tenant in which both parties agree to certain responsibilities and potential consequences. The landlord agrees to take care of key repairs and maintenance tasks, especially regarding the livability of the house and things beyond the tenant's control. The tenant agrees to adhere to the "house rules", and these can be (almost) anything that the landlord requests.

For example a landlord can require that tenants not smoke in the property, not have pets, or even respect neighborhood quiet hours. You can fine the tenant or even begin eviction processing if they break the rules they signed to in the lease.

Along these lines, if you write a clause that tenants must drip the pipes and open cabinets to protect pipes when the temperature drops, frozen pipes become their responsibility if they do not complete these steps. They agree to do this when they sign the lease and are contractually obliged, but will benefit if you email a reminder each late autumn.

 

Insulate the Pipes Before Renting the House

Of course, most landlords prefer a more hands-off approach because it is easier than trusting that all tenants a) read the lease carefully and b) remember all their obligations months and years after moving in. 

There are precautions you can take to minimize the need to drip pipes and open cabinets during a freeze. This can remove some responsibility from tenants and remove hassle for landlords.

Landlords in wintery regions often find it more worthwhile to fully insulate at-risk pipes before tenants move in. You can also perform surface-level insulation (like covering outdoor taps) during a seasonal visit to minimize the risk of frozen pipes in the winter.

 

Install Heat Wire Along the Most At-Risk Pipes

Of course, in deep freezes, insulation might not be enough. Depending on your location, it may be more effective to install a heat wire which runs a small electric current along the length of each pipe, generating heat and preventing a freeze. You can even install a smart switch that responds to the temperature or external signal so electricity isn't used during warm weather months.

 

Make Sure Tenants Understand Their Duty, and the Potential Consequences

Finally, don't forget the value of communication. Most tenants are reasonable people. When they first sign the lease, point out your frozen pipe clause and explain how to protect the pipes in case your tenants have never lived in a wintery region before. Then highlight any consequences that might be leveled if the pipes burst, from the unpleasant experience to any expense your lease may outline.

Then remind your tenants around autumn property maintenance to keep an eye out for freezing weather and to take good care of the pipes. Most tenants will gladly comply rather than deal with frozen pipes in the winter.

 

Working With Your Tenants to Protect Pipes from Freezing

No one wants to deal with frozen pipes. Your tenants don't want the cold, messy disaster and as the homeowner, you do not want the expense. The best way to protect the pipes of your rental homes is to combine tactics: Both pre-insulate  and/or heat your pipes and include a lease clause reminding tenants to drip the pipes during a deep freeze.

Together, you can protect your property and your pipes in all but the most extreme conditions. At Leaf Management, we know all the tips and tricks to create the best rental experiences for both tenants and landlords. Contact us today to learn about how a property management team can improve your home rental strategy.

ROOTS IN PIPES? WHAT TO DO

December 26, 2023

What to Do If There Are Roots in Your Rental Property Pipes.

Your tenant calls you to say there is something wrong with the plumbing. Despite their best efforts with Draino, vinegar, and plunging, the drains are slowed or fully stopped, and they don’t know what to do.

You nod sagely and send a plumber with a drain snake to clear whatever the blockage. You suspect there’s a wad of paper or, at worst, built-up mineral scale in there. But when your plumber reports back, you discover there are tree roots in the pipes. What do you do?  

The good news is that this is not an unusual problem. The bad news is that it’s pretty serious, and your tenants will need support while you conduct serious plumbing repairs.  Don’t worry, this guide will help you navigate how to deal with tree roots in your rental property’s underground pipes.

WHY TREE ROOTS GROW INTO PIPES

Roots seek water. They don’t care of the water is dirty drain water or fresh spring water, they just want water. If even a tiny leak or drop of condensation is on the outside of buried pipes, a tree root the size of a thread will tendril in, then grow larger as it drinks water from your drain lines. This can result in swollen tree roots that eventually break and/or completely block underground drain lines in a rental home.  

TREE ROOTS CAN BE SHRUNK WITH ROOT REMOVER

Your plumber will likely suggest root remover as the first step. Root remover is a safe chemical compound that causes tree roots to shrivel up and retract from your pipes. This can clear a blockage and, in some cases, may solve the plumbing problem in a matter of weeks. The chemical breaks down the root material to allow your tenant’s drain lines to flow again.

UNDERGROUND PIPE REPAIR

Of course, it is also quite possible that the roots have damaged your rental home’s underground pipes, and they will need to be repaired. Your plumber can provide an inspection to identify where the problem is. From there, you will need to unearth the pipe and replace the damaged section to prevent drain water from escaping into the yard where the root initially started.

INSTALL A ROOT SHIELD

While you’re down there, pipe repairs are a good opportunity for a landlord to have a root shield installed to protect pipes from root intrusion in the future. Your plumber can help you choose the right size and material to install a root shield along the length of the pipe under the yard.

TAKING CARE OF YOUR TENANTS DURING PIPE-ROOT REPAIRS

The course of repairing roots in the pipes can take a few weeks. This means it’s also important to assess whether your tenants need additional support while repairs are ongoing. Did the root block the sewer main or just one section of the home’s drain capabilities?

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If your tenants still have a working kitchen and at least one working bathroom, you can ask them to wait out repairs. However, if your rental home’s drains are completely blocked, you can take care of your tenants in a few ways.

• Discount partial rent for the percent of the month the house is not livable
  • This can give your tenants a financial cushion for a hotel or temporary alternate housing.
• Allow tenants to break the lease.
  • If repairs will take a month or more (time scale may be subject to state laws)
• Provide funds/alternate housing.
  • You can put your tenants up somewhere nearby, if they agree, while repairs take place.

You can waive rent for the days the property is not livable, allow tenants to break the lease, or put them up somewhere else.

CHECK YOUR STATE LAWS

If the house will be in an unlivable state for more than one week, check your state and local laws. Most states have minimum liability requirements, and there may be guidelines for how landlords can compensate tenants when major repairs become necessary.

RECOVERING FROM ROOTS IN YOUR RENTAL PROPERTY PIPES

If you discover roots in your rental property pipes, this is a serious issue, but one that can be repaired. In some cases, you can simply shrink away the tree roots with a chemical treatment. In a worst-case scenario, it may take a few weeks of repairs to remove the roots and repair the pipe. If the home is temporarily unlivable, work with your tenants to determine the best living solution.

A skilled property manager can be invaluable in this type of situation. To learn more about how to handle rental home repair emergencies, Leaf Management an help. Contact us for a consultation.

2024 Real Estate Trends

7 Rental Property Renovation Trends Holding Strong Through 2024

As a landlord, if you want happy tenants and the best rental prices, renovations are part of doing business. It is your role to keep properties in good quality. Tenants want homes that are bright, welcoming, and modernized no matter when the structure was originally built. In addition to maintenance matters like roof care and water heaters, the occasional renovation can help to keep your rental homes both appealing and high-quality.

To keep your rental home competitive in 2024, which renovations should you plan for during the next tenant turnover? Let's take a look at rental property renovation trends that are still going strong as we head toward 2024.

 

1) Fresh Coat of Paint

Every tenant turnover should start with a fresh coat of paint. Fresh paint gives you a chance to redefine the color-scheme to meet the latest color trends. It also removes old scuffs and can give almost any house that new-home feeling. Professional painting techniques such as clean lines and painting behind the baseboards make a difference. Along the same lines, a little molding goes a long way at the top and bottom of each wall and where cabinets attach.

 

2) Safety and Integrity Upgrades

Always make sure to prioritize safety-related upgrades first. If the siding is loose or warping, upgrade the siding before you choose more stylish interior upgrades. Have an inspector confirm that your wiring is safe, that your attic is navigable, and your plumbing is in good condition to ensure that your next tenants get a house that is in tip-top shape. They will appreciate the quality of your rental home as a result.

 

3) Installing Laminate Wood Floors

Old wall-to-wall carpets are out and wood floors are in. But not traditional and delicate hardwood floors. The latest in rental home flooring is laminate composite board. These floors look and feel like hardwood, but they are much more durable. Warm, springy, and beautiful, laminate boards are actually made with layers of wood board and laminate, which makes a moisture-resistant, scratch-resistant floor that is both beautiful and difficult for tenants to accidentally damage.

This trend has been going strong for over a decade, and the quality of affordable laminate board flooring is only getting better. Whether you're replacing cracked tile or ratty carpet, laminate wood floors are the way to go.

 

4) New Cabinet and Plumbing Hardware

You don't have to rebuild the kitchen to modernize the space. You might be surprised that subtle changes in the cabinet handles, drawer pulls, and sink hardware are all you need to bring your kitchen decades forward in style. Combined with repainting or refinishing the cabinets and you can create a whole new kitchen - with the same floorplan and an inexpensive upgrade plan.

If you want to go all-out without breaking the bank, replace cabinet doors with a new style but leave the hardboard emplacements. The same trick also works in any bathroom.

 

5) Swapping Ancient for Energy-Efficient Appliances

Upgrading appliances is a great renovation choice for rental homes. Many tenants are looking for a modern kitchen and recent, energy-efficient models for washers, water heaters, and ACs. Recent appliance upgrades can make any well-maintained rental home more appealing, and black or stainless steel appliances never go out of style.

 

6) Modernizing Outdated Details

Keep an eye out for remarkably outdated details. Rooster tile backsplash in the kitchen or glaring bathroom vanity lights can really date a house and make it less appealing than the home truly deserves. A few select renovations to modernize outdated details about a rental home can transform your property's desirability for modern tenants.

 

7) Updating Old Light Fixtures & Adding Light Coverage

Finally, if you've got the time and budget to get creative, upgrading a rental home's light fixture can be very rewarding. Start by replacing old, finish-flaking fixtures that clearly need an upgrade. Choose energy-efficient fixtures in attractively modern styles. From there, work with your electrician to add lights where a home has dark hallways or gloomy corners. Improving the illumination quality in a home can raise it's style, value, and appeal in one delightful improvement project.

 

Rental Home Renovations with Leaf Management

Renovating a rental home should be a joyful opportunity to reinvest in your property. You can have fun choosing practical and stylish upgrades and your future tenants will appreciate the modern, stylish, and welcoming result. Of course, if rental home renovations are not your idea of fun, you can always rely on a trustworthy property management team like Leaf Management, instead. We'll keep your properties attractive and energy-efficient so you can focus on your next investment strategy. Contact us today to learn more.

Rent Before Selling Flip House

 FHA Loans Are More Popular - Why You Should Rent a Flip Before Selling It

The popularity of property flipping has grown substantially among real estate professionals both full and part-time. The potential for big profit is the primary reason for this, helped out by the abundance of television that focuses on the topic. But buyers relying on FHA financing to purchase flipped real estate could see some restrictions headed their way. Some of these restrictions include timeline limitations and appraisal requirements. 

These restrictions will create an added challenge for buyers to secure an FHA loan. If you are reading this and are interested in flipping properties, consider renting them out instead. When you rent a property, it provides a different path that allows people to profitably manage timelines, or provide a totally different alternative to the traditional flip model. 

FHA Financing "Flipped Property" Restrictions

The Federal Housing Administration (FHA) is imposing certain restrictions on flipped properties to protect buyers from purchasing properties with an inflated value. Primarily, the restrictions involve appraisal requirements and timeline limitations. The following describes each of these new restrictions: 

Appraisal Requirements

The FHA requires a "second appraisal" for flipped properties. This is vital when the resale price within a certain period of time goes beyond a set threshold. The reason for this is simply to ensure that the property is accurately priced, and is intended to prevent buyers from overpaying. 

Timeline Limitations

Requirements on timelines are also being implemented by the FHA. If a property is being sold within 90 days of the seller's acquisition, there is added documentation and evaluation required to justify the higher resale price. It is in place to prevent fraudulent activity that artificially inflates prices. 

Why it Makes Sense to Rent Out Flipped Properties

1. Time Management: This is strategic, as it can allow an individual to manage the required timeline in a profitable manner. Income can be generated while waiting for the timeline to expire, ensuring that the property is not vacant during the time period, and the value of the property can actually increase over time. 
2. Cash Flow: When renting out a flipped property, the investor can create a stable monthly rental income. This can be helpful to cover debt service on mortgage payments or other operation costs. With the service of debt against the property, the investor can potentially profit from the appreciation of the value over time as well. 
3. Rid Yourself of Flipping Restrictions: Renting the property out also bypasses these FHA financing restrictions, since you are taking an alternative route to the traditional flip model. You avoid the additional appraisal requirement and timeline limitations and focus on long-term wealth through property ownership. It provides flexibility in your investment strategy and allows for more control when the time comes to sell. 
4. Value Appreciation: When you rent out a property, you get an opportunity for the property to appreciate in value over time. With fluctuations in the real estate market, investors holding onto flipped properties support the rental inventory for their communities, while also benefiting from potential appreciation of the investment. Generating the rental income while waiting for the right time to sell increases the overall return on investment. 

Flipping property continues to be a worthwhile investment opportunity, but it is important to consider the strict FHA financing requirements that potential buyers face. A willingness to consider an alternate path of renting an investment property can be a profitable alternative that allows the investor to bypass these restrictions. It allows for a stable cash flow and property appreciation opportunities instead of just sitting vacant. Weighing these options before jumping into the traditional flip model can save a lot of stress, and provide an even better return on investment.

Cloudy Windows - What to do?

What to Do About Cloudy Windows on a Rental Property.

You have a rental home with double-paned windows. Generally, this is a benefit in terms of energy-efficiency and temperature retention. It makes the home more comfortable and affordable for your tenants. However, you have recently noticed that the space between the panes of glass has become cloudy. How serious is this, and how would you fix cloudy windows on a rental property?

The property managers of Leaf Management have run into cloudy double-paned windows more than a few times. We can help you assess the situation and make a plan based on how important your cloudy windows truly are.  

ARE CLOUDY WINDOWS A SERIOUS PROBLEM?

Cloudiness in a double-paned window is a sign that the air seal between the panes of glass has been broken. This can happen when the window warps over time, or can be caused by exposure to moisture or direct sunlight. It means that your window has lost efficiency and is not as insulating as it used to be. For the most part, this is not a serious problem. The home is still secure, but not quite as energy-efficient as it used to be. 

However, there are two considerations when deciding how seriously to take your cloudy windows.

HOW HOT/COLD DOES YOUR CLIMATE GET?

Double-paned windows are important in climates where the summers get extremely hot or the winters get extremely cold. The more intense your temperature cycle, the more important it becomes to replace the double-paned air seal.

HOW BAD IS THE CONDENSATION?

You may also be worried about making your rental home presentable. Condensation can make your property slightly less attractive and it can be difficult to get rid of for photos and tours.

DOUBLE-PANED WINDOWS MUST BE REPLACED, NOT REPAIRED

It’s important to note that double-paned windows that have started condensating have a broken seal that cannot be re-sealed. You will need to replace either the window glass or the entire window to solve the problem. It’s up to you whether this is a valuable renovation this year or in the future.

HOW TO REMOVE CONDENSATION TEMPORARILY FROM DOUBLE-PANED WINDOWS

If you need to take pictures of your rental house or prepare it for a tour with future tenants, removing the cloudiness can be important. While difficult, you can generally discourage condensation using a space heater, hair dryer, and/or dehumidifier to remove the moisture from between the panes.  However, the condensation will come back. Your tenants may or may not care about the clarity of their windows, but it will fluctuate with the humidity and the weather conditions.

REPLACE THE GLASS IN THE WINDOW

If your window frame is still in good condition, you can have just the sealed, double-paned glass replaced in any window that has started to fog. This makes it possible to quickly and more affordably re-insulate a home and remove the issue of cloudiness in the window of your rental home.

REPLACE YOUR DOUBLE-PANED WINDOWS

The best way to fix fogginess in the windows is to fully replace the windows, window-frame and all. This is a valuable re-investment in your rental property and will provide greater energy-efficiency for years into the future. But it is also the most costly way to fix an otherwise not urgent issue.

KNOWING WHAT MATTERS WITH LEAF MANAGEMENT

Leaf Management is an experienced property management agency that can help you keep your rental homes in great condition, whether the issue is cloudy windows or clogged pipes. To learn more about property management and the fixes to common rental home problems, contact us today.

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Kitchen Details that Chase Renters Away

  Kitchen Details That Chase Away Renters (& How to Fix Them)

5 Kitchen Details That Chase Away Renters

Renting out an investment home, you want the house to look its best. Renters are often swayed by first impressions. They are following their hearts to their vision of a good home while checking for practical details in every home they tour. The kitchen is especially important when preparing your home for presentation on the rental housing market. If you hope to inspire future tenants and get the best price for your house, it's important to understand both what renters want to see and what they consider to be a red-flag to avoid. 

The last thing you want is for the natural charm of your kitchen to be overlooked due to a few off-putting details. When preparing your home to rent, be sure to avoid these seven things that cause concern for potential tenants.  

 

Stains, Scuffs, and Scratches

The kitchen is one of the busiest rooms in the house. Every day, meals are cooked and family activity flows through. Scuffs and even the occasional baked-on food stain are par for the course. But all that needs to disappear when it comes time to sell the house. After all, each renter wants to start fresh.

If your kitchen shows a few signs of wear, don't worry. You can always scour, refinish, and repaint every surface in the kitchen. Your countertop can be stripped and resealed to remove discoloration. Walls and cabinets can be repainted, and appliances or stove hoods can be given a fresh coat of epoxy to remove any previous light damage in the kitchen.

 

Dark and Gloomy Spaces

Lights that cast shadows are a no-go in modern home design. Of course, many older kitchens rely on poorly placed or oddly shaded ceiling lights that create gloomy corners. This is why lighting upgrades are among the most popular for kitchen renovation choice. You can add ambient lights with better light distribution in combination with stylish pendant lights above the island and even countertop lighting mounted on the underside of your upper cabinets.

Chase away the shadows and show your future tenants the true cooking potential of your pristine kitchen and layout.

 

Poor Quality Remodeling

Watch out for signs of low-quality remodeling. Issues like DIY tile or poorly fitted shelves may be something you can be proud of as the creator, but renters won't appreciate DIY work as much. The same goes for remodeling features that came with the house when you bought it. You can boost the value of your rental home by having skilled contractors repair or replace poor-quality work before listing your house on the rental market.

 

Lingering Unpleasant Smells

If there's one thing that tenants trust, it's their noses. If a house smells "off" they are likely to get a bad impression, no matter what the reason. Old food in the garbage disposal, lingering pet smells, or rising damp from water-damage cabinets; it doesn't matter. Bad smells are bad news when trying to sell your home, and air freshener often isn't enough.

After a day outside the house, come back with your senses "reset" and sniff around. If you detect an odd odor anywhere in the house - especially in the kitchen - locate the cause and make plans for repairs. You might need to get your kitchen drains cleaned, replace some old particle board that's grown a little mold, or enzyme-clean spaces where pets have spent time.

 

Signs of Neglectful Maintenance

After years of hardy service, your home may need a little maintenance before it can be sold. No matter how simple the repair, renters will notice things like rattling door handles, loose drawer pulls, or baseboards separating from the walls. They will infer that this means the house is in poor repair overall, even if this is not the case.

It is worth your while to do a wave of small maintenance repairs to ensure your home appears fresh and new to the casual observer. Tighten screws, touch up paint, reattach molding, and polish the tarnish off plumbing fixtures. You can also replace a few essential yet small pieces of hardware to make a positive first impression and subtly update the decorative style of your kitchen and home.

 

Keep Your Rental Homes Appealing with Property Management

Many of the features that chase away good tenants can be prevented with good property management. Your property managers will know when a fresh coat of paint and a little maintenance can work wonders on preserving the natural charm of each rental home. Contact Leaf Management today to learn more about how to keep attracting great tenants and keep your properties in top condition at the same time.

 

HVAC Abuse?

 HVAC Abuse: What It Is and How to Avoid It

Your Heating, Ventilation, and Air Conditioning system (HVAC) is central to keeping your home comfortable throughout the year. It works hard to regulate temperatures and maintain a healthy environment by filtering out pollutants. However, many homeowners unintentionally abuse their systems by neglecting regular maintenance or using them improperly.

Failing to look after your HVAC can lead to various problems, including premature wear and tear, increased energy bills, and costly repairs. To help keep your system performing optimally, this article discusses what HVAC abuse is and how to prevent it.

 

What is HVAC Abuse?

HVAC abuse refers to the misuse, neglect, or improper handling of heating and cooling systems that can result in harm or damage to the equipment, a decrease in its efficiency, and a shorter lifespan. Just like any other mechanical equipment, HVACs require routine maintenance and responsible usage to function optimally. 

 

Different Ways Individuals Abuse HVACs

Neglecting Regular Maintenance

Neglect is one of the most common forms of HVAC abuse. Consistent maintenance ensures your HVAC system operates efficiently and safely. Neglecting it can lead to clogged filters, dirty coils, and poor airflow. Over time, these issues can cause the system to work harder and consume more energy, which may increase your utility bills and shorten the lifespan of the HVAC unit.

Setting Extreme Temperatures

While it's natural to want a comfortable indoor temperature, setting the thermostat to extreme levels can harm your HVAC system. Pushing your AC to its maximum cool setting in the summer or cranking up the heat in the winter can increase your energy consumption and put undue stress on the system. Instead, opt for moderate temperatures that are comfortable and energy-efficient.

Overlooking Air Filter Changes

The air filter in your HVAC system plays a vital role in maintaining indoor air quality and system efficiency. Failing to periodically replace these components allows dust, dirt, and contaminants to accumulate. This not only hinders the system's performance but also lowers the quality of the air you breathe. 

Blocking Vents and Registers

Blocking vents and registers may seem like a minor issue, yet it can lead to significant problems. When vents are obstructed by furniture, curtains, or other objects, the HVAC system has to work harder to distribute conditioned air, which can strain the blower motor and minimize efficiency.

 

Steps to Take to Prevent HVAC Abuse

Preventing HVAC abuse helps ensure the longevity and effectiveness of your heating and cooling system. Here are some practical steps you can take to avoid abuse and extend the life of your HVAC system:

Schedule Regular Maintenance

Have your system inspected and serviced at least once a year by a qualified HVAC technician. During these visits, the technician can clean components, check for issues, and verify that everything is in good working order. Maintenance prevents abuse, saves you money in the long run by avoiding costly repairs and improves energy efficiency.

Change Air Filters

Air filters should be replaced or cleaned frequently, based on the filter type and the manufacturer's recommendations. Clean air filters ensure your HVAC system functions correctly while maintaining indoor air quality. This simple task can have a substantial impact on your system's performance and durability.

Use a Programmable Thermostat

A programmable thermostat allows you to set specific temperature schedules for different times of the day. This feature enables you to maintain a comfortable environment without overworking your HVAC system. For example, adjust the temperature to a cooler or warmer setting when you're home and set it accordingly when you're away or sleeping, saving energy and preventing abuse.

Clear Obstructions

Ensure all vents and registers are free from obstructions. Furniture, curtains, and other objects should not block the flow of air. Doing that allows for better airflow, reduces strain on the HVAC system, and promotes even heating and cooling throughout your living space.

 

Conclusion

Your HVAC system is a valuable asset that requires care and attention. HVAC abuse can lead to inefficiency, increased energy bills, and costly repairs. By following these steps and being mindful of how you use your heating and cooling system, you can enjoy a comfortable indoor environment and extend the lifespan of your equipment. 

How do you Know Your Ready to Hire a Property Management Company?

 6 Signs You're Ready to Hire a Property Management Company

Buying an extra house and renting it to tenants can be exciting. Becoming a landlord is a big financial milestone for most people, and it can be fun to go through the process of accepting tenants and looking after a rental house. However, there often comes a time when managing your rentals is less fun and more challenge than it used to be. Whether your portfolio is too big or your life has become more demanding, the best way to offload some of the landlord responsibilities is to hire a skilled property management company. 

Property managers specialize in ensuring rental houses are properly run, from tenant screening to maintenance and repairs. How do you know when you're ready to hire your first property manager? There are a few signs that any landlord can begin to recognize when it's time to keep enjoying the income and equity, but also hand over the managerial reigns.  

 

You Own Two or More Rental Properties

The more rental homes you own, the more time and effort it takes to manage them. Taking care of one house and family of tenants can be novel and fun, but two, three, five, or more rental homes can become more than one person can handle. Even with a great network of local service teams, you might start to feel that it's too much work to do by yourself. A property management company will unleash a team of pros to ensure each and every property (and their tenants) get the right amount of attention and care.

 

You Need More Time to Focus on Your Family or Career

Having the funds to buy a rental property probably means that you've got a good career going. If your career accelerates and demands more of your time, you may no longer have time for your landlording hobby. The same is true if family obligations arise, from having your first child to caring for sick relatives. Of course, someone has to continue tending your properties and their tenants, which is what a property management company does best.

 

You Don't Enjoy the Tenant Turnover Process

The single most challenging part of being a landlord is the tenant turnover process. When a tenant leaves,  you need to get the place cleaned, repainted, photographed, and re-marketed. You need to screen applicants, secure a new tenant, and walk your new tenants through the move-in/checklist/house-rules process. If this isn't your idea of a good time, it can become less fun with each cycle. Property management teams specialize in fast turnover with professional tenant screening processes so you don't have to worry when a reliable tenant leaves.

 

You No Longer Live Near Your Rental Properties

Sometimes, landlords have reason to move away from their original home city, which can leave valuable rental properties behind. If you live far away from your rental properties, you can still make sure they are taken care of by hiring a property management company in the area. There will be someone local that your tenants can call, who can perform turnover and inspections, and who can deal with local maintenance services.

 

You're Not Sure Who to Call for Repairs or Maintenance Services

Being an active landlord involves building a network of reliable home maintenance teams. However, if this isn't your thing and you're never sure who to call, you can still reap the financial benefits of owning an investment property. A property management team can handle the details of taking care of tenants and the rental house on your behalf.

 

The Novelty of Being a Landlord Has Worn Off

Lastly, you may have enjoyed being a landlord for a while, but for some, the novelty eventually wears off. If you are no longer having fun and just want the property to take care of itself, a property management company can easily make that happen for you. All you'll need to do is approve the occasional decision or maintenance expense and your management team will handle the rest.

 

When You're Ready to Hand Over the Reigns

If you have a local rental property (or several properties) and don't have the time or focus to be an attentive landlord right now, don't worry. Many investment homeowners partner with a property management company to ensure that their properties are well-tended and their tenants are kept safe. Leaf Management is proud to provide this service to investment homeowners throughout New England. Contact us today to learn more about how property management can work for you.

Ways to Insulate Your Property to Save Energy

Properly insulating property can help you save money on both heating and cooling the property. Insulation allows the home to maintain a more steady temperature, which means that less energy will be required to heat the home in the winter or cool it in the summer. The money saved on energy bills makes proper insulation a worthwhile investment that will eventually pay for itself.

The following are 6 tips to help ensure that your property is properly insulated to help your tenants save on energy bills whenever possible:

• Energy-Efficient Windows: Energy-efficient windows can cut about 10-25% off of your total heating bill upon their installation. This includes replacing your single-paned windows with their double-paned counterparts. Double-paned windows can help eliminate the issue of too much heat getting through the windows in warmer environments and too much cold air getting through the windows in colder environments. Either way, it requires less energy to cool or heat your home, which means you are saving money on your energy bill each month.
• Properly Insulate Your Walls: Properly insulating all walls of your home (including those that you do not use all the time) can help keep the heat in and the cold out during the winter and can help keep the cold in and heat out during the summer! Proper insulation for all rooms can keep the heat or air from all going to one or just a few certain rooms. It helps the entire home maintain a livable temperature without using extra energy. Soundproofing can be an additional bonus.
• Choosing the Proper Kind of Insulation: In a world where there are so many insulations choices, choosing which insulation is right for you can be tricky and confusing. Talking to a professional can help you understand which types of insulation are right for the spaces you are looking to insulate. For example, a fiberglass batt is a great option for virtually every home and it can be installed without the help or added expense of hiring a professional to assist you.
• Focus on the Interior First: Focusing on insulating the interior or your property first helps ensure the core, center rooms of your home are kept at a livable temperature first. These are likely the rooms that you use the most frequently. It also helps save the most money on air conditioning and heating costs as these are likely the biggest rooms in your home and take up the most energy to heat.
• Provide Outer Walls Extra Insulation: Providing your outermost walls with extra installation can help you ensure that you are keeping the heat or air inside your home. Heating/air conditioning the great outdoors (letting the heat or air escape your home) only wastes energy and forces you to spend more on your heating or cooling costs. Consider the extra investment of an additional layer of insulation on your outer walls now as it will more than pay for itself in the future when you save money on heating and cooling.
• Get a Quality HVAC System: Upgrading your HVAC system including your heating and cooling units can allow you to save up to 40% on your energy bills. Ensuring that you are upgrading both the heating and the cooling systems ensures that you are being more energy efficient year-around. If you use one more than the other (living in a hot or cold environment) be sure to get regular "tune-ups" on that system and keep it serviced regularly. This can save costly breakdowns or exorbitant energy bills for your family later on when something with the unit might not be working quite right.

These are 6 great steps to take to help you ensure that your property is properly insulated. This also helps you save your tenants money on the heating and cooling costs they pay while they are living at your property. Passing that savings on to your tenant is something they will appreciate and that can help you justify charging top dollar for your rental property.

An added bonus?

The extra soundproofing that keeps sounds from traveling from room to room will be appreciated if someone is watching TV and someone is sleeping in the other room as well!

Protect Your Investment - Part Two

 Protect Your Investment: When to Have the Roof Inspected - Pt 2

[Continued from Part 1]

 

5. If There are Snow, Moss, or Leaf Piles on Your Roof

Any time there are damp piles on your roof, this is cause for concern. Call for roof cleaning and/or a roof inspection if you see piles of snow that don't move, piles of leaves that seem to form a damp home, or moss growing on your roof. All can either create or indicate a dangerous and roof-damaging level of trapped moisture. They will need to be cleared away and the roof underneath should be inspected.

Tenants often have little to no control over whether leaves pile on the roof, and it takes a special tool just to sweep them off. Scheduling roof care in the fall, or whenever you notice discoloration from rooftop growth, can save your roof early.  

 

6. If Your Attic is Damp and Other Signs of a Roof Leak

Signs of a leak from your roof are always cause for a roof inspection. Ask your tenants to watch for water pooling in ceilings, the sight of damp running down walls, or the smell of mold in hidden places. During your twice yearly inspection, visit each attic and check to see if the beams are rotting with moisture or if the underlayment is damp. If any of these signs appear, schedule a roof inspection.

 

7. If Your Chimney or Roof Vents are Leaking

Rental homes with a fireplace and chimney are extremely appealing, whether the climate is warm or cold. But any features that interrupt the shingles on your roof can lead to a leak due to flashing and connection flaws.

Sometimes, the shingles are fine but the roof features may show signs of leaking. Call for a roof inspection if your tenants see that is water running down the inside or outside of your chimney, vents, and other features that extend out through a home's roof surface.

 

8. If Your Gutters Appear Damaged

Ask your tenants to keep an eye on the gutters and to call if they notice any damage or improper runoff. Your gutters are part of your roof system. If a bad storm or a mischievous animal has caused your gutters to come apart from the roof or show other signs of damage, this can cause real damage. Gutters that rip away from the house will damage the roof, while gutters that aren't doing their job can lead to water damage to the outer layers of the house. If you notice or your tenants report gutter damage, roofers can inspect the situation and conduct repairs that keep your roof system intact.

 

9. If You Notice Soft or Dark Spots on the Shingles

If you can see dark spots on your roof that don't coincide with shadows, consider calling a roof inspector. While most people will not notice these details, anyone who goes on the roof might. If your tenants climb up to retrieve a lost ball or to watch fireworks, ask them to report any areas of the roof that appear soft or damaged. Soft or spongy shingles could be losing integrity.

 

10. If the Roof Starts to Sag

Lastly, keep an eye on your roof's ridgeline and flat planes. These are created by the structure beneath the shingle layer including the beams and underlayment.

Watch out for any roof that shows signs of sagging along the planes or buckling at the ridges. Sagging roofs often indicate that the beams and underlayment have been moisture damaged and begun to rot. A free roof inspection will tell you just how urgent your next roof installation will be.

 

Take Care of Your Investments with Free Roof Inspections

Most local roofers offer free inspections with the understanding that if an issue is found, they will be your first choice for repairs. This means it costs you nothing but a small amount of time to remain vigilant and take good care of the roof for each of your rental properties. Your tenants will appreciate that you are literally caring for the roof over their heads out of concern for their health and safety, while proper roof care will ensure the long-term quality and value of your properties.

Of course, keeping track of the rooftops of every one of your rental homes can be a big task. If you're ready to leave it to the pros, contact us today to discuss our property management services.

Protect Your Investment - Part One

 Protect Your Investment: When to Have the Roof Inspected - Pt 1

Protect Your Investment: When to Have the Roof Inspected

Real estate is a long-term investment. Being a landlord is an opportunity to both make income from your properties and allow the value of each property to appreciate over time. However, without regular maintenance, even the finest house can lose value by falling into disrepair. A reoutine maintenance schedule is the best way to protect your investment. However, one of the most commonly overlooked items on a rental home's maintenance checklist is roof care.  

Roof inspections should be a normal part of any home maintenance routine. Because most neighborhood roofers offer free roof inspections and estimates, it makes good sense to have each rental home's roof inspected any time there are signs of trouble or an opportunity to detect damage before a problem develops. But when is the right time to have your roof inspected?

Let's go through all the best times to call for a free roof estimate to protect your tenants and your long-term investments.

 

1. Once a Year, Whether You Need It Or Not

Every home should have a roof inspection once a year, ideally immediately after the harshest weather of the year. This will give you an opportunity to catch any recent roof damage as early as possible. Roof damage can also accumulate slowly from a small issue into a larger one over time. Regular roof inspections can prevent you from missing something important - so that repairs can happen before there's a costly leak or structural attic damage to your home.

It is reccomended to schedule roof inspection at least once a year, whether the home appears to need it or not. This also gives you a chance to get a clear estimate of the roof's age, condition, and proximity to the next roof replacement.

 

2. If Your Roof Looks Ragged from a Distance

When it comes to roofing, "out of sight, out of mind" creates a commonly overlooked problem. However, your eyes can tell you if the roof is taking damage if you look at the roof's surface from a short distance.

Take a step out to the curb and look up at your roof. If it looks like all one color and texture, you're in good shape. However, if the roof looks "ragged", rough or apparently missing patches, call your roofer. This can mean you have numerous dangerous or damaged shingles and it's time for an inspection.

 

3. Before Storm Season or the First Snow

Every region has a unique storm season. Try to book a roof inspection before the first big seasonal storm and/or the first winter snowfall. Seasonal storms can be very hard on rooftops, especially the shingles. Let your tenants know that, for their safety, you would like to book a roof inspection before the storms hit to ensure the home is in the best condition possible. This will ensure that your tenants are protected and your roof is at it's most durable when the seasonal storms or heavy snows blow through.

 

4. After Every Major Storm

Major storms with strong winds fast enough to tear branches off of trees can also tear shingles off your roof. If your tenants hear a branch hit your roof - or even if no major damage is done - it's best to have a roof inspection after each storm to make sure that you won't discover a new leak the next time it rains. Quick shingle repair and replacement can have your roof back to peak condition in time for the next storm of the season.

Keep an eye on the weather. Alert your tenants after any major storms and schedule a roof inspection to ensure that they and the house are safe.

 

[Continued in Part 2]

Do's and Don'ts of Property Flipping

 he Do's and Don'ts of Property Flipping: How to Avoid the Red Flags That Turn Off Buyers

As a real estate investor or residential contractor, flipping a property can be lucrative. However, avoiding cutting corners or rushing the renovation process is crucial to maximizing profits. Hasty flips can often be identified by certain signs that turn off prospective buyers, and it is important to be aware of these signs to avoid making costly mistakes.

Lack of Attention to Detail

One sign of a hasty flip is a lack of attention to detail. While it may be tempting to focus on high-impact renovations, such as a new kitchen or bathroom, it is important not to overlook small details. It includes touch-ups on paint, fixing broken door knobs, and replacing outdated light fixtures. Neglecting these small details can give the impression that the renovation was rushed or not done to the highest standards.

Lack of Proper Permits and Inspections

Another sign of a hasty flip is a lack of proper permits and inspections. It is important to obtain all necessary permits and licenses and have the property inspected by a professional to ensure that it is safe and up to code. Skipping these steps can lead to costly fines or legal problems.

Ineffectively Completed Renovations

Poorly executed renovations are another red flag for prospective buyers. It can include shoddy craftsmanship, mismatched finishes, or unfinished projects. It is important to hire reputable contractors and ensure the renovation is done to a high standard, as poor-quality work can turn off buyers and decrease the property's value.

Lack of Curb Appeal

A lack of curb appeal is another sign of a hasty flip. While the property's interior is important, the exterior is the first thing buyers see and can be a deciding factor in whether they take a closer look. Pay attention to the landscaping, paint, and overall appearance of the exterior to make a good first impression.

Lack of Staging

Finally, a lack of staging can also signify a hasty flip. Staging a property can help buyers visualize themselves living in the space and make it easier for them to see the property's full potential. By neglecting to stage the property, it can be difficult for buyers to envision themselves living there and can decrease the property's appeal.

Conclusion

By avoiding these signs of a hasty flip, investors and contractors can improve properties efficiently and effectively to maximize profits. Attention to detail, proper permits and inspections, high-quality renovations, curb appeal, and staging can all help to increase the appeal of a flipped property and ensure that it is attractive to prospective buyers.

Are you a residential contractor or real estate investor looking to flip a property? Avoid the pitfalls of a hasty flip with the help of Leaf Management and Funding. Our team has extensive experience in rehabbing and managing properties, and we offer private financing options to help you get the job done right. Contact Leaf Management and Funding today to learn more about how we can help you succeed in property flipping.

House Warranty - Yes or no?

 Deciding on a Home Warranty for Your Rental Investment: All You Need to Know

A home warranty is a type of insurance policy that covers the repair or replacement of various systems and appliances in a home. These include heating and cooling systems, plumbing, electrical, and major appliances such as refrigerators and washing machines. A home warranty differs from homeowners insurance, which covers damage to a home from events such as fires or storms. In this guide we will look at home warranties, their pros and cons and some guiding tips when choosing a home warranty.

Benefits of Home Warranties

• For rental property owners, a home warranty can offer several benefits. One of the main advantages is that it can provide peace of mind. Owning a rental property can be stressful, especially if you have to deal with sudden emergencies or unexpected repairs. A home warranty can help alleviate some of this stress by providing a way to quickly and easily make repairs without worrying about finding a reputable contractor or paying out of pocket.
• Another benefit of a home warranty for rental property owners is that it can help to minimize costs. When a major appliance or system breaks down, the cost of repair or replacement can be significant. A home warranty can help to reduce these costs by providing coverage for a wide range of items. This can be especially helpful if you have multiple rental properties and need to budget for unexpected expenses.

Drawbacks of Home Warranties

• One potential drawback of a home warranty for rental property owners is the cost. These policies can be expensive, especially if you have multiple rental properties. It is important to carefully consider whether the cost of a home warranty is worth the potential benefits.
• Another potential concern is that home warranties may not cover everything. It is important to carefully review the terms of a home warranty to understand what is covered and what is not. Some home warranties may have exclusions or limitations on certain types of repairs or appliances.

Tips to Consider When Deciding on a Home Warranty.

Despite these potential drawbacks, a home warranty can be a valuable tool for rental property owners who want to minimize stress and sudden emergencies. To find the right home warranty for their needs, rental property owners should consider the following tips:

1. Research different home warranty companies and compare their policies and coverage.
2. Carefully review the terms and exclusions of each policy to understand what is covered.
3. Consider the home warranty cost and whether it is worth the potential benefits.
4. Read online reviews and ask for recommendations from other rental property owners.

Final Thoughts

Overall, a home warranty can be a valuable tool for rental property owners looking to minimize stress and sudden emergencies. However, it is important to carefully consider the costs and exclusions of a home warranty and determine whether it is worth the investment for your specific rental property

Leaf Management Financing Corporation can help with financing a home warranty for your rental investment property. They offer a range of financing options to help you manage the costs of owning and maintaining a rental property. By working with Leaf Management, you are sure that you have access to the financial resources you need to keep your rental property in good condition. Reach out to us and get a unique financial plan created for you.

Property Management Red Flags

 Property Management Red Flags: Here are 7 Tips on How to Identify and Address Issues with Your Current Service

Are you worried that your current property manager isn't up to par? It can be frustrating and stressful to have concerns about the management of your rental property, but it's essential to address any issues promptly in order to protect your investment. 

Here are seven key signs that your property manager may not be doing a good job.

Lack of communication

If you're finding it difficult to get in touch with your property manager or receive timely responses to your inquiries, this could be a sign that they are not fulfilling their communication obligations. Effective communication is crucial for addressing tenant concerns, maintaining the property, and ensuring the smooth operation of your rental.

High Tenant Turnover

High tenant turnover can be a red flag that your property manager is not effectively addressing tenant concerns or properly maintaining the property. This can lead to lost income and added costs associated with finding and screening new tenants.

Unresponsive to Maintenance Requests

Timely maintenance is essential for maintaining the value and appeal of your rental property. If your property manager ignores maintenance requests or takes an unreasonable amount of time to address them, this could indicate a lack of attention to their responsibilities.

Unsatisfactory Financial Reporting

As a property owner, you have a right to receive regular and accurate financial reports on the performance of your rental property. If you're not receiving these reports of unprofessional behavior: A property manager should conduct themselves in a professional manner at all times. If you notice unprofessional behavior, such as rudeness or inconsistency, it could signify that they are not taking their responsibilities seriously.

Poor Marketing

A good property manager should be proactive in marketing your rental property to attract potential tenants. If you're noticing a lack of effort in this area or if your property is consistently vacant, it could be a sign that your property manager is not effectively filling vacancies.

Lack of Transparency

A property manager should be transparent in their dealings with you and provide clear and concise information about the operation of your rental property. If you're noticing a lack of transparency or if you're having difficulty getting answers to your questions, it could be a sign that your property manager is not being fully forthright with you. If you notice discrepancies in the information provided, it could be a sign that your property manager is not effectively managing the financial aspects of your property.

Legal Issues

A competent property manager should be proactive in ensuring that all relevant laws and regulations are being followed. If you're experiencing legal issues, such as disputes with tenants or fair housing violations, it could be a sign that your property manager is not effectively handling legal matters.

Conclusion

If you're experiencing any of the issues outlined above with your current property manager, it's important to take action in order to protect your investment. One solution is to consider outsourcing your property management to a reliable and professional company.

At Leaf Management, we understand the importance of effective property management in maximizing the financial performance of your rental property. Contact us today to learn more about how we can help you take your property management to the next level.

Landlord to Homeowner

From Landlord to Homeowner: A Guide to Returning to Your Rental Property

Are you tired of being a landlord and ready to move back into your rental property? Whether you're downsizing, looking to save money, or simply miss living in your old home, transitioning a rental property back into a primary residence can be a daunting task. However, with a little planning and preparation, you can turn your rental property back into a comfortable, welcoming home.

Perform Maintenance and Repairs

After being used as a rental property, it's likely that your home will need some maintenance and repairs. This could include things like replacing old appliances, fixing any damage to the walls or flooring, and making sure the plumbing and electrical systems are in good working order. It's important to address any necessary repairs before moving back into the property to ensure that it is safe and comfortable.

Make Improvements

While you're going through the process of turning your rental property back into your primary residence, you might want to consider making some improvements to the home. This could include updating the kitchen or bathroom, adding a fresh coat of paint, or landscaping the yard. Making these improvements can not only increase the value of your property, but they can also make it feel like a brand new home.

Reapply for Homestead Exemptions and Insurance Coverage

If you previously had homestead exemptions on your property (which can reduce your property taxes), you'll need to reapply for them once you start living in the home again. You'll also need to update your insurance coverage to reflect that you're now living on the property. It's important to take care of these details to ensure that you're not paying more than you need to in taxes or that you're not underinsured.

Create a Budget

Before you start making any changes to the property, it's a good idea to create a budget to help you plan for the costs involved. This can help you make informed decisions about improvements and how much you can afford to spend.

Consult with Professionals

Depending on the extent of the repairs or improvements you want to make, you may want to consult with professionals such as contractors, electricians, or plumbers. These professionals can help you determine the scope of work needed and provide estimates for the costs involved.

Consider Working With a Financing Company

If you need financial assistance with the maintenance, repairs, or improvements you're making to your property, Leaf Management Financing Corporation can help. They offer various financing options to help you get the money you need to turn your rental property back into your primary residence.

Wrapping Up

By following these steps, you can make the process of turning your rental property back into your primary residence as smooth and stress-free as possible. Whether you're downsizing or simply didn't find being a landlord to be as profitable as you'd hoped, moving back into your home can be a great solution. Just be sure to take the necessary steps to get your property in good condition and to update your homestead exemptions and insurance coverage. With a little planning and some financing help from Leaf Management Financing Corporation, you can make the transition back into your home a success. Get in touch with us, we are always ready to help.