Unique Flips and Their Unique Risks

 

4 Unique Risks of Pier and Beam Flips—And How to Handle Them

Pier and beam homes are set on foundations of piers - concrete or wood posts set deep into the ground - and beams which support the house set on top of the piers. This type of foundation is excellent for regions with shifting soil and periodic flooding. So you'll see them frequently in regions where these conditions are common. Of course, like any architectural style, pier and beam homes also come with their own challenges.

When flipping a house with a pier and beam foundation,  it's important to watch out for the unique risks that come with a house that's up off the ground. Let's talk about what to expect and how to handle each challenge to make your flip a success.

 

1) Pests Below the House

Pier and beam homes have a crawl space that is usually not well-sealed this means it creates a sheltered space for pests to move in. From local insects to rodent colonies, any pier and beam property might be home to an entire secret "family" below. This can catch flippers unawares but if you know it's a risk, the proactive steps are easy to plan.

Have the area below the house inspected for pests big and small. If there are insects, call the exterminator. If there are bees, have them collected by a pollinator preservation service. And if there are rodents, call animal control for humane removal, if possible. Then leave deterrents and seal up the outer sheathing to keep them from coming back.

 

2) Hidden Mold Growth

Pier and beam can also hide a different kind of colony. Mold colonies love to live below pier and beam homes where moisture gets trapped between the lumber beams and the damp earth below.  It's dark and protected, the perfect environment for vast and dangerous mold growth. This can pose a health hazard and long-term structural hazard if undetected. But knowing is half the battle when it comes to mold.

Have the crawl space of your flip inspected for mold. Make sure mold isn't eating away at the wooden beams or any wooden elements of the piers. Check for sponginess and hidden spaces. If mold is found, call a local mold remediation service to have it removed. Extensive mold damage can mean you might need foundation repairs as well, but pier and beam repairs tend to be more affordable and less extensive than slab foundation repairs.

 

3) DIY Plumbing Arrangements

Another risk that you might not see coming with a pier and beam flip is DIY plumbing (or electrical) arrangements. Because previous owners could reach the plumbing under the house, they might have decided to get creative about adding new fixtures or repairing damaged pipes. This could cause some serious problems in the future, including issues with building codes. It may be even more problematic if there are DIY electrical splices down there.

Get your crawl space inspected by a licensed plumber and have anything questionable built to code. Do the same with electrician if you see unsafe or DIY-looking work below.  This ensures you will be legally protected and future residents will be safer when it comes time to sell or rent the home.

 

4) Damaged Piers or Sagging Beams

Pier and beam foundations also have a shorter lifespan than most slab foundations. However, the individual components can be shored up, repaired, or replaced more easily than a concrete slab. Check the level of the floors inside the home and check the pier and beam structure below the house to find out if there are any lurking maintenance issues or major repairs that need to take place before you complete the flip.

 

Flipping a Pier and Beam Property

When planning to flip a home on a pier and beam foundation, make sure to have the crawlspace inspected and calculate for proactive maintenance steps in your total flipping project budget.  While it is possible that a pier and beam home might have none of these problems, it's always better to never be caught by surprise.  Leaf Management has worked with properties in every architectural scope and our pros have useful insights to improve your local flipping strategy. Contact us today to learn more about how we can help you pick and plan the most profitablef flips.

Security Deposit Best Practices

 

Landlord Security Deposit Tips and Best Practices

Security deposits represent an agreement of trust and security between a landlord and their tenants. When a tenant pays the security deposit, they agree to take care of the property or accept deductions from the money they could get back. When a landlord sends the security deposit back, they are acknowledging that the tenants were good stewards of the property. It encourages responsibility, timely repairs, and teamwork to protect your investment. This is why it's important for landlords to have a rock-solid policy that both rewards good tenants and fairly covers expenses for undue damage and costs.

The security deposit covers for tenants who are rough on a house, even if they are not malicious, and eases guilt if tenants have to leave an inconvenient mess due to a personal emergency. It also rewards tenants who can take the time to fill holes, paint over scuffs, and request repairs before they leave by sending money to them during their move, when they likely need it the most.

So, what are the best practices for managing security deposits as a landlord? Here's how to use security deposits both to protect your properties and reward good tenants.

 

Set a Reasonable Security Deposit

The first step is to set a security deposit amount in proportion to the property. States that have laws regarding security deposit typically set the limit at this amount, as well. Setting the security deposit higher than one month's rent is only reasonable (and possible) in states with a higher limit and with high-end properties where your tenants are more likely to be high-income with more liquid capital to invest in a rental home up-front.

 

Define What Can Be Deducted From the Deposit

Next, clearly define the damage and expenses that can be deducted from a security deposit. This should exclude normal wear-and-tear that can occur no matter how quietly a family lives. It should include overt damage, unreported repairs, and cleanup required if the tenants left a mess.

What to Deduct

• Holes in the walls
• Burnt or badly scratched floors
• Broken plumbing and major clogs
• Unreported damage
• Unreported visible and excessive mold
• Unpaid utility bills
• Unpaid rent
• Abandoned property disposal
• Valuable property shipping to the tenant's new location
• Destroyed landscaping features

What Not to Deduct

• Minor nail holes 
• Scuffs on walls and doors
• Loose but not broken fixtures
• Worn but not damaged carpets
• Dry grass and flower beds
• A few missed non-valuable items (lost socks)

 

Complete the Move-In and Move-Out Inspections

Move-in and move-out inspections are valuable for both landlords and tenants. A move-in inspection proves the condition of the home just before the tenant moves in. Make sure the inspection is done right, with photographs and notes that are stored as records in your property manage documents or online platform. 

The move-out inspection proves the condition of the property immediately after the tenant moves out. Make sure this is also completed thoroughly with photos, notes, and records. The move-out inspection should be completed on the last day, with the tenant present if possible. If the tenant can't stay, complete the inspection ASAP after the truck is gone with a hard-coded timestamp.

This ensures that any damages you deduct from the security deposit are definitely left behind by the tenant. And if any damage occurs after they are gone, it cannot be charged to them.

 

Respond Quickly to Repair Requests

During the tenant's stay, make it clear that you welcome repair requests for the good of the property. Then, respond to requests with a friendly attitude and send your repair teams as quickly as possible. This builds a routine of teamwork with your tenants to keep your property in top condition, prevent little problems from growing into major damage, and addresses issues promptly.

Not only do quick and friendly repairs make tenants happy, it also increases the overall quality of the home when your tenants hand it back so there is a far lower chance of problems that could be charged to the security deposit. If tenants complete their duty to report needed repairs, they won't be charged for the repair costs.

 

Provide a Move-Out Checklist

Help your tenants leave the house in the best possible condition with a move-out checklist. When your tenants report that they won't be renewing the lease, or 2 months before their move-out date, provide a checklist of everything that will be included in the move-out inspection. 

Remind your tenants to:

• Fill nail holes from decorations and furniture installations they remove
• Touch up paint over scuffs and minor damage, or request your assistance to do so (if your paint colors are hard to match)
• Clear out all storage areas, including often-forgotten spaces like the attic or crawl space
• Broom-clean, vacuum, and wipe down the house. It doesn't have to be spotless, but empty and clean
• Request any final repairs before they are penalized

You can also provide a copy of the move-in inspection with photos and notes to show the move-in condition of the house. Tenants who address the move-out checklist can secure all or most of their security deposit returned.

 

Return the Security Deposit On Time

Check your state laws to determine your time limit on returning the security deposit. Check with your tenants on the best route to send them the money back, and do so within that time limit. If you make deductions, define each one in an itemized list including the damage and the repair costs.

Clarity can ensure that your tenants understand any deductions and appreciate your prompt return of money they can use to help smooth their transition to a new home.

 

Handle Security Deposits Right with Leaf Management

If you want to make sure every one of your rental homes handles inspections and security deposits correctly and on-time, Leaf Management can help. Our skilled property management team will ensure that move-in and move-out inspections are conducted with full documentation, your tenants receive timely repairs, move-out checklists are sent out, and security deposits are sent back with itemized deductions in time with the state laws for each property location. Contact us today to explore property management for your rental homes.

 

Adding Someone to a Lease

 Can You Add Someone to a Lease?

 

 

A rental home lease is usually one year long. However, life rarely conforms to that kind of schedule. When people need to change living arrangements, these moments happen organically. Perhaps your romantic partner is ready to move in, or maybe a good friend needs a place to stay. You might have a roommate moving out and need to bring in someone new. There are two sides to each situation. One side is personal and the other is logistics.

Inviting someone to live with you is personal, but adding them to the lease is absolutely necessary. Any time someone will be joining you for more than a single month, they probably need to also join your rental home lease.

 

Can You Add Someone to a Lease?

Yes. It's easy to add someone to a lease if you understand the process.

Reasons Why a New Person Might Need to Join Your Lease

• Moving In a Romantic Partner
• Welcoming a Friend Who Needs a New Place
• Taking Care of a Relative
• Sharing the Rent with a New Roommate

 

How to Add Someone to a Rental Home Lease

To add a new person to your lease, they will need to fill out an application. This provides information about the new person's income to run a background check . There will be a simple 4-step process:

1. Fill out a new tenant application
2. Pay the application fee
3. Complete the background check
4. Get added to the lease

An application ensures that landlords know who is living in their community and occupying each unit. In most cases, the new person will be approved - especially if you have already met the rent-to-income financial requirements. Then, the new person will be asked to sign a copy of the lease.

Landlord will make a new copy of the lease available with all current names, either printed or digital.

 

Why Add To Your Lease vs Just Moving In

There are plenty of reasons why someone might move in. Life happens, and living arrangements can change. However, a long-term guest is not the same thing as living together with a romantic partner or having an official roommate.

Equality

Two adults on a lease are equals. They are equally responsible for paying rent and taking care of the rental home. With only one person on the lease, the other person is just a guest. They are both staying on the good graces of the leased resident and also free to leave whenever they want without obligations. Sharing a lease is sharing permanance and equality.

Following the Rules

Leases also usually have rules regarding long-term guests. You could get into trouble if someone is living in your rental home that didn't go through the application process. This is seen as potentially unsafe by landlords because non-leased residents can lead to liability issues. If you don't want to violate your own lease, new living partners should apply, get their background check, and get officially added to the lease.

 

The Benefits of Adding Someone to Your Lease

Being on the lease provides some important benefits for everyone who shares a rental home. This isn't just for the sake of compliance with the lease terms regarding long-term guests. The current resident, new resident, and landlords benefit when everyone is on the lease.

Tenant Rights and Protections

The new resident gains the full rights and protections of a legal tenant. This includes the right to request repairs, access to amenities, and respect of their possessions as a rightful resident of the rental home.

Proof of Residence

The new resident can use their recently signed lease as proof of residence. This can be useful when applying for things like insurance, jobs, identification, and local discounts, among other things.

Shared Rent Responsibility

The current resident gains assurance that their new roommate can be held equally responsible for the rent. This often provides peace of mind when friends or friendly acquaintances move in together.

Liability for Damages

Likewise, all parties share liability for damage so no one can be left fully in the lurch if something goes wrong.

 

Can You Remove Someone from a Lease?

Yes. Swapping roommates is completely normal. When someone moves out, the practical answer is to have them removed from the lease. This gives you the right to take back their key and for all remaining (or new) residents to claim full control over the home.

You can have someone removed from the lease by talking to the landlord. If the person confirms that they are moving out, they can sign an addendum document that removes them from the lease for the rest of the term year.