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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