Letting Tenants Run a Side Hustle From Your Property

 Should You Let Your Tenant Run a Side Hustle From Your Property?

Before allowing a tenant to run a side hustle from your property, knowing what you're getting yourself into is crucial. You also need to know the tenant's rights regarding running a business from home. 

Is it Illegal for a Tenant to Use a Residential Property for Business?

First, it's essential to note that there's a difference between occasionally working from home and basing the entire business on a residential property. Both approaches are legal, provided the property remains primarily residential. That's to say that no more than 40% of the property should be for commercial use. Most small businesses run from home offices, and it shouldn't be a problem for a tenant to use your property for business. 

However, your tenant should have confirmation in writing that you're happy to let them run their business from your property. Ensure you're confident of their intentions before permitting them. 

Factors to Consider Before Letting a Tenant Run Business from Your Property 

While you can allow a tenant to run a business from your property, many legal factors come into play. Running a business from a rental home has many risks and is likely to conflict the tenancy rules. Running a business instead of using the property for residency may also impact your landlord's insurance cover and make it void. 

Don't take the decision lightly, and don't grant permission until you carefully consider the following:
•    Does the council allow tenants to run businesses from residential properties?
•    Has the tenant got the relevant documents and insurance to run the business?
•    If you have a mortgage on the property, does the bank allow business operations on the property?
•    Does the Homeowners Association or any other corporate body that governs the property permit tenants to run businesses? 
•    Is the tenant aware that the landlord insurance doesn't extend to their business?

If you permit the business to run on your property, ensure you amend the rental agreement with a specific clause specifying that business insurance is the tenant's responsibility. They should agree to ensure the insurance remains current. 

Protesting Property Taxes

 

Effective Strategies To Protest Property Taxes for a Rental Property

As a homeowner, you may know how to protest property taxes on your primary residence, but how do you go about protesting the taxes on an investment property. This guide will help explain how you can effectively protest property taxes for rental properties.

How property taxes work for investment properties

To successfully protest property taxes on a rental property, you must first understand how the assessment of investment property works and what factors contribute to the total taxes you owe. Tax assessors typically base Real estate property taxes on the property's market value. They consider the size and features of your property and apply the tax rate set by your municipality to calculate your total property taxes.

You should also understand that investment property owners are not eligible for the same exemptions as owner-occupied homes, meaning the assessed value of your property is likely to be higher. For example, investment properties do not qualify for the homestead exemption, which allows you to lower your property taxes by capping the number of taxable value increases on your home.

Strategies for protesting investment property taxes

There are several strategies you can use to protest your investment property taxes. Below are the most common methods used by investors are:

1. Look for errors in the assessment

Often, an assessor may make mistakes when your property. Errors such as incorrectly measuring the square footage of your property, the plot size, or including inconsequential features are grounds for protesting your property tax. Therefore, if you believe the assessor has made an error, you can appeal the assessment and have your property taxes lowered accordingly.

2. Compare your assessment to comparable properties 

If you do not believe the assessor has made an error, you can still protest your assessment by comparing it to similar properties in your area. This process is known as a market value analysis. To do a market value analysis, you will need to find comparable properties recently sold in your area. Once you have found these properties, you can compare them to your property to see if your assessment is fair. 

3. Is the assessment reasonable

The most crucial factor in a property tax appeal is whether the assessment is reasonable. Therefore, if it is unreasonable and the value exaggerated, you have grounds to protest the property tax.

4. Gather evidence to support your case

Once you have decided on the best strategy for your appeal, you will need to gather evidence to support your case. The evidence may include recent sales data for comparable properties, property tax bills, photographs, or appraisals. 

Seek professional support

Protesting your property taxes can be a complex and time-consuming process. If you do not have the time or resources to protest your property taxes, you can always hire a professional firm to do it for you.  A professional will have the experience and knowledge to negotiate effectively on your behalf and get your property taxes reduced. 

Rolling Blackouts

 Keeping your Property and Your Tenants Protected From Rolling Blackouts

During the summer months, the days get very hot which puts a large strain on the power grid virtually everywhere. But in many places, the strain on the grid can lead to a rolling blackout. While this reality is one that both tenants and property owners must deal with, the process can be a little easier with some pre-planning. The following are ways you can better prepare your tenants and your property for summer blackouts. 

Install a Smart Thermostat

This is a win-win for everyone involved. Smart thermostats automatically adjust the temperature based on your personal habits over time. When no one is home, the temperature adjusts to something less strenuous on the power grid and also the electric bill. Smart thermostats have become more affordable, and they are also a desirable amenity for renters these days. 

Keep Freezer Full

Freezers that are full can keep contents cold for up to two days! Educating your tenants to move essential perishable foods into the freezer immediately during a blackout could be a useful tool to minimize the loss of food. It can also keep most of the frozen food useable, saving big money at the grocery store. 

Know Your Insurance Policy

Some insurance policies will allow claims on the loss of perishable food during blackouts. Some policies will not cover any damage due to a blackout. Knowing your policy and knowing the first point of contact right after a blackout occurs is very important. 

Establish Rules Concerning Generators

A generator can be useful during a blackout, but too often, people try to move the generator indoors, which is highly dangerous. Under no circumstances should a generator be allowed inside the property, and this should be spelled-out in your lease agreement if you live in an area prone to blackouts. 

Have your Electrical System Serviced 

Getting an annual check on your electrical system can be a useful tool to protecting your property. Make sure everything is in peak condition by having air conditioning units serviced, and your fuse box checked on an annual basis before it gets too hot. Technicians will have time in non-peak months, but trying to get them to check the system in the middle of the hottest part of the year, or right after a blackout could be next to impossible. 

Flooring Replacements

 Tips on How Often You Should Replace Different Flooring Materials

Many homeowners hardly know the best time to replace their flooring. Some follow strict remodeling rules, while others wait until a tile is missing or their hardwood floor gets warped to replace floors. You can always look for signs of wear, depending on the type of flooring in your home. This guide should help you.

Hardwood Floors

Wood floors are the best for the long haul. If well-maintained, they can last for 20-30 years. However, they're prone to water damage as wood expands when wet, and scratches and dents show easily. This is usually an excellent time to replace such floors.

Tile Floors

Tiles are great for kitchen and bathroom spaces because they're easy to waterproof and clean. Although tile floors are durable, they're prone to chipping and cracking, which creates a safety hazard if the grout comes loose. A significant advantage of tiled floors is that you don't have to replace the entire flooring. You can change the chipped tiles to give your floors a new look.

Carpet Floors 

Carpets come in handy for homeowners looking for affordable and comfortable flooring. The synthetic fibers create a soft surface to walk on, and modern rugs are made of nylon or polyester fibers, which are stain-resistant and durable. Carpet floors may last 7-10 years, but if they look stained and worn out, it is time to replace them.

Vinyl Flooring

Vinyl is an excellent alternative to stone floors. It doesn't need regular resealing and provides a more comfortable surface to walk on. Vinyl floors are also waterproof, making them impervious to stains and spills. However, vinyl is a little more delicate than other floor types, and you need to be extra cautious when dragging heavy materials on the surface.

Laminate Floors

This durable flooring type lasts a decade or longer before a replacement becomes necessary. Moreover, technological advancements have improved its quality and thickness, enhancing longevity. Laminate floors are also prone to water damage, stains, and wear, which indicate when to replace them.

Strategies to ensure tenants pay on time

  Strategies to Ensure Tenants Pay Rent Checks on Time

All landlords crave an ideal situation where their tenants pay rent checks on time. Unfortunately, this is not always the case. Some tenants will likely experience hiccups and fail to make rent check payments on the agreed time. Untimely rent payments can happen severally either due to tenants' forgetfulness or financial hardships. 

If you are a landlord who is struggling with tenants whose rent checks are always late, there are strategies that you can implement to remedy the situation. Below are six strategies you can implement to ensure timely payment of rent each month.

1. In-person Communication with Your Tenant 

It is essential to communicate with your tenants one-on-one on the issue of late rent check payments. When the behavior persists, talking to them will help you understand why they pay late and whether that will change. It will also be an opportunity to clarify the rent due dates and highlight possible consequences as stipulated on the lease contract. 

2. Introduce Online Payment Methods

The use of cash or paper checks is an outdated payment method. It would be best to consider whether hiccups associated with this obsolete method could be the course of late rent check payments. If that is the case, it will be prudent to consider introducing online payment. Online payment is more simplified and will increase the likelihood of your tenants paying on time.

3. Send Rent Checks Reminders 

Thanks to modern-day technology, landlords have the means to communicate with their tenants remotely, such as emails or phone numbers. As a landlord, you can utilize these communication channels to send reminders on rent checks to tenants who are always late. 

4. Introduce Payment Incentives

They show gratitude and appreciation when your tenants pay rent checks on time. For instance, tenants could earn a discount on rent when they pay their rent checks on time. A discount strategy can be applied if it does not affect business profitability. For instance, ensure the rent is higher to cover the discount incentive.

5. Impose a Penalty Fee for Late Payment

To curb subsequent late payments, the lease contract between you and the tenants should prescribe consequences for late payment of rent checks. Tenants are more likely to pay on time to avoid penalties. 

6. Hire a Property Management Company

Sometimes tenants fail to pay their rent checks on time due to a lack of adequate follow-up. Hiring a property management company can ease the burden of a landlord who is constrained to collect rent checks and follow up promptly. Property management companies will manage the property on your behalf, collect rent checks, and do day-to-day follow-ups.  

Notably, tenants have an obligation to pay their rent checks on time, just like property owners have responsibilities to keep the property habitable. If you need any assistance on property management, feel free to contact Leaf Management. We guarantee the best and exceptional service. 

Flooring Replacements

 When To Replace Existing Flooring Based on Materials' Lifespan

Different types of flooring have different lifespans. Aside from unexpected damage and stains, the material used plays a critical role in determining how long your flooring lasts. Every material differs in longevity and durability. However, the material is just one among various factors that dictate the duration a floor will remain in good condition. Other factors include:

• Installation
• Quality of the material
• Regular maintenance
• Amount of traffic

Below is a quick guide to help rental property owners and investors determine the appropriate time to replace existing floors and what materials are best. 

1. Tile Flooring

Tile flooring is one of the most durable options on the market. With proper installation and care, tile floors can last for 5 decades. However, tile is not indestructible. Heavy traffic, dropped objects, and poor maintenance can lead to cracked or chipped tiles. 

2. Carpet Flooring

Carpeting is not as durable as tiling, but it can last several years with proper care. The average lifespan of a carpet is 5-7 years. However, this can vary depending on the quality and amount of traffic. High-quality, low-traffic areas can see carpets lasting up to 25 years. 

Carpet padding also affects the durability of your flooring. The most favored foam-based carpet padding, Rebond, lasts 10 years. However, high-quality padding like urethane can last for 25 years.

3. Vinyl Flooring

Vinyl flooring is a popular choice for rental properties because it is durable and easy to clean. However, vinyl is not as durable as tile or carpet. The average lifespan of vinyl flooring is 10-15 years. 

4. Hardwood Flooring

Hardwood floors are a classic choice for rental properties. They are relatively easy to clean and maintain and can last a lifetime with proper installation. The average lifespan of hardwood floors is 100 years. However, the elegant glossy shine of wood flooring will start fading after 25 years. 

5. Synthetic Wood Flooring

Synthetic wood flooring is a popular alternative to hardwood floors. It mimics the appearance of real wood and is more affordable and easier to maintain. The average lifespan of synthetic wood flooring is 15-25 years. 

 

Although some flooring types have long lifespans, you may need to replace them sooner due to unexpected damage, poor installed and maintenance. Rental property owners and investors should consult with a flooring expert to determine. 

Increasing Property Security

 3 Ways to Increase Property Security Without Deterring Prospective Tenants

Security is a key aspect that any home owner considers as a top of priority for his tenants. Leaf Management estate emphasizes the importance of enhanced security measures, even if privately installed, to protect clients in case of any eventualities.  

Why Enhance the Security on Your Property?

The world is very unpredictable, and so it's better to be safe than sorry where home security is concerned. A protected house is less likely to attract burglars as the intruders prefer easily accessible property. To avoid any possibility of negative branding of insecurity, the property owner can install discreet and effective security measures that are not conspicuous to potential clients. 

Below are three ways to enhance security without deterring potential clients:

1.    Clear Any Bushes, Trees or Shadowy Areas in the Property

Trim any bushes, hedges and trees that may conceal the main entrance to the house. Mow down the grass to lit up any dark and shadowy areas in the compound. A well-lit and clear compound will not conspicuously appear as security measure to a potential tenant, but it will effectively deter any potential intruders. 

2.    Install Private Motion Sensors 

Install motion sensors lights to light up dark areas lie the backdoors and the side of the house, that are rarely visited at night. Whenever there is a movement in the darkness the motion sensors light up. Since the sensors only light up at night whenever they is a movement in the dark, the client will not perceive their installation as a sign of insecurity. 

3.    Install a Video Doorbell

With a video doorbell, a tenant is able to monitor and answer front door calls from anywhere.  The doorbell allows the client speak to visitors at real time and can also detect motions at the door.  A client may consider the video doorbell an efficient and convenient feature, while it also enhances security on the property. 
Yes, it's prudent and advisable for a property owner to enhance the security in his own, but can also do it inconspicuously to avoid any negative image to potential clients.  The installed security measures can be discreet and at the same time effective. 

Sincerely,