Good reads: This week in property management

A bizarre bedbug twist: Former Fox News reporter sues the landlord, case is thrown out.  If that doesn’t make you itchy enough, more on bedbugs.

A payout in waiting, another reminder that maintenance is king.

Interesting Q & A on month to month, when your tenants are house hunting.

Doubly good news in the Twin Cities, low vacancy and rent hikes to come.  And in Denver too!

How do you look at prospects’ income and obligations?  A new Harvard study says renters spend more.  The WSJ says it has to do with scarcity in affordable housing.

Cuomo gets aggressive about rent rules.

Tenant-Landlord coalition in Vancouver warns of supply trouble ahead in the local market. 

According to one analysis, rapidly rising food costs may soon encroach on tenants’ ability to pay rent.

What not to do about rising energy costs.

If you’ve made a few touchdowns, career-wise, maybe you can spring for Madden’s digs.  If that feels cramped, how about Lichtenstein?

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, affordable housing, customer satisfaction, customer service, insurance, investment, Landabout, Landlord, multi-family safety, news, Property, Property Management, reduced vacancy, rent, rental, safety, tenant relationships, tenant turnover, wealth creation

Good reads: This week in property management

Landlords take a stand in Minnesota and file suit over new ordinances.

From Australia, another lesson in checking and rechecking the insurance coverage on your investment property.

There must be at least 1,000 other ways to get rid of squirrels…

 Proposed federal spending cuts could have an effect on Section 8, inspections, dollars available for repairs, etc.

The Wall Street Journal on the very high stakes, different game for developers in China. 

Good things to come?  Rental vacancies expected to drop, rents expected to rise. 

Just rolled out:  Zillow takes on rental estimates.

Always a party:  rent control in the spotlight (again) in NYC.  And, in the city’s unique housing market, is it better to rent or buy? 

This week in “we can’t make this up”…Missing property report and squatters have a go at starting a school in Guy Ritchie’s mansion, currently under renovation.

Filed under: Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, affordable housing, customer satisfaction, customer service, investment, Landabout, Landlord, lease, lease law, multi-family, multi-family safety, news, Property Management, security deposit, senior housing, tenant pet policies, tenant relationships, unified communications, wealth creation

Good reads: This week in property management

Insecurity deposit.  SF landlord pays big for deposit swiping controversy.

Another craigslist rental scam leaves a family of four without housing.

Ever wonder who is responsible if your tenant is the victim of a break in?  This, plus questions of running a business from a rental residence answered.

Adding your two cents to tenants’ credit reports.  What do we think, property owners?

Are you an accidental landlord?  Tips on navigating tax time.

He just didn’t seem that creepy.  Quebec landlord accused of peeping in on his tenants.

Tenants need help figuring out who pays more for the big closet, and how much?  Enter Split The Rent.  Now we just need the app that removes all the awkward from settling up the dinner check when you’re dining out with *those* friends.

Denver stays hot:  Rental home vacancies at an all time low.

More good news?  Okay.  Better than elsewhere job growth keeps Boston’s multifamily in good shape.

Why do they move? Renters move for jobs, flexibility, money…some info to help you find your next prospect.

Energy consumption still a big unknown in multifamily, the space is left out of Obama’s Better Building Initiative as a result.

They must be reeeeeally good cigars:  Man agrees to pay tenants in a neighboring unit $2,000 every time he lights up.

 

Filed under: General Information, Green Building, Links, Property Maintenance, Property Management Topics, Real Estate Investment, Urban Renewal, affordable housing, customer satisfaction, customer service, eviction, foreclosure, green, investment, Landlord, real estate management, reduced vacancy, rent, rent increase, rental, security deposit, taxes, tenant relationships, tenant turnover, wealth creation

Understanding or unbelievable? When, how, and if to break the rules

So much about Tara Smiley’s post on Multi-Family Insiders got us thinking, but in particular we wondered how much is too much when it comes to breaking with your standards in order to close the deal.  Playing risky business with a renter’s credit history is one thing, but what about things like pet policies and criminal background checks?  You’re no doubt keeping an eye on your comps the way Tara is, and if you haven’t gone shopping in awhile you may want to go have a look.  While she saw a few cases of complete disregard for the traditional “rules”, you may find that things in your market are more subtle.  It pays to know about a few of the strings being loosened, and what they mean for you and your business.

Is Fido (the pitbull) a no no?

Pets, dogs in particular, will always be an issue with devotees on either side claiming they have the answer.  Many pet behaviorists and animal care experts claim that no breed is inherently dangerous, but there really is no fudging the numbers when it comes to animal aggression, injuries, and certain breeds.

That said, keep in mind that Teddy Roosevelt had a Pitbull in the White House.  Because of the human habit of training and breeding aggressive animals for sport no matter what, establishing rules based on a handful of breeds has proven to be an exercise in tail chasing (so to speak).  For instance, if Pitbulls get banned or restricted, you’ll almost always see a rise in Rottweilers.  Or Dobermans.  And yes, there have even been recorded cases of Cocker Spaniel attacks.  Statistics aside, problems, damage, and lawsuits have come from full range of multi-family dwelling animals.

The “right” answer when it comes to pets may simply be good judgment and your own instinct. Animals, like your tenants, are individuals.  Ask the right questions–find out if the pet has ever lived in a rental property before, if the animal has been to obedience training, and ask to speak to the animal’s vet.  Obviously, no animal who displays aggressive behavior should be welcome, and be clear about reserving the right to immediately remove any pet that does.

Convicted Arsonist?  Sure, come on in.

Second chances are a good thing, but how likely are you to be the one handing them out?

If your prospect is coming to you with open communication about a criminal past, you may already be one step ahead.  Let’s face it, even people who’ve made poor decisions need a place to live.  When it comes to deciding where to draw your lines here, it may be helpful to consider why you’re interested in a criminal history in the first place.  It’s not just because you want another form to fill out and another fee to pay.  You check because you want to do as much as you can to ensure the safety of everyone in your community.  Case by case?  It may be cliche, but not all criminal backgrounds are alike.  Should you consider the sex offender or the armed robber?  Not advisable.  When it comes the one time offender who screwed up 7 years ago, you may wish to take a closer look and consider that second chance.

Looking at credit where credit is due.

It’s true that credit has changed, but to say it no longer matters at all as Tara was told is a little far fetched.  If you have to make a spreadsheet to keep track of a tenant’s co-signers or, worse, you don’t even run a credit report, you may have too much slack in the reins.  It doesn’t appear that we’re out of the mortgage crises yet, and you will be taking to prospects with some pretty serious negative marks.  Giving these folks a housing opportunity is one thing, but turning a blind eye to those with chronic issues (and maybe even a negative rental history!) is quite another.  Pretend it’s 2005, and look at credit.  Then remember that it’s 2011 and listen.

At the end of the day, you’ll find that in any economic environment you’ll have competitors who will undercut you–and potentially themselves–to take the business.  But is it truly the business you want?  Shopping the, ah, eager community down the block will only give you a clearer picture of where you are and aren’t comfortable when it comes to bending the rules.  Remember that there will always be the guys signing off on that pet tiger and chasing prospects out the door with free televisions.  Decide where your line is, and know that it’s okay to stand firm by it.

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Real Estate Investment, Urban Renewal, affordable housing, banned breeds, customer satisfaction, customer service, eviction, foreclosure, green, home staging, investment, Landabout, Landlord, multi-family, multi-family safety, real estate management, reduced vacancy, rental incentives, security deposit, tenant pet policies, tenant relationships, tenant turnover

Please hold the animals: Renting to college students

“Who dropped a whole truckload of fizzies into the varsity swim meet? Who delivered the medical school cadavers to the alumni dinner? Every Halloween, the trees are filled with underwear. Every spring, the toilets explode.”

–Dean Wormer, National Lampoon’s Animal House

Ah, college.  The time in life so bursting with memories that many of us look back on it with a wistful fondness.  And maybe a pinch of horror.  Some of us more horror than others.

If you’re fortunate enough to own property in a college community, you’re either just beginning to weigh the advantages and disadvantages of renting to students, or you’ve already looked at the risks and rewards.  Regardless, college communities are target rich–new prospective tenants roll into town two to three times a year–and there is no question that renting to them can be highly profitable.  From a business perspective, eliminating the student population from your potential tenant pool makes very little sense.

So how to decide if renting to students is right for you?  Contrary to all the horror stories you may have heard, most students do not move in hellbent on hosting five parties a week and destroying everything they can.  In fact, if you look back on your own experience you may even remember some studying and quiet Sunday afternoons.  You can and should expect more damage and a few mistakes, but an inexperienced tenant doesn’t have to be an impossible one.  In fact, some of the extra care required of college landlords may be helpful for all landlords.  When it comes to dealing with new or inexperienced renters, care is the first word.

If you’re thinking of opening your doors to college students, study this.

• Expect higher than average repair costs and damage. Making your property a no party zone is sort of rolling out the welcome mat for mockery and defiance.  Unless you’re lucky enough to rent to the campus exceptions, parties and gatherings will, more than likely, take place at some point.  Prepare to repaint as often as each turnover season, and replace carpet on an accelerated schedule.  Build these additional costs into the monthly rent and charge a security deposit that makes you feel secure (and complies with any of your state’s security deposit limits or maximums).   As always, be clear in your lease language that your tenant is responsible for major damages and losses.
• Every man is *not* for himself. College students tend to live together, and college students tend to be a bit transient.  When it comes to collecting the rent in full, neither of these tendencies is your concern.  When screening and signing leases with multiple parties, each enters the agreement as though he or she has full responsibility for the rent.  If Joe + Mark + Brad becomes just Joe, Joe agrees to pay Mark’s 1/3 and Brad’s 1/3 until the lease ends or you both agree to a sublease.  It’s best to allow no exceptions.
• Use one year leases, charge more for school year leases. For some college students, a “year” in your property is considered August to May, which makes yours a very cold summer.  Because some students will always choose to leave for break, it makes sense to offer a 9-10 month lease at a premium and/or make subleasing options available.  While longer committments are preferable, you may find that shortened leases are helpful when it comes to making repairs, painting, etc. and getting units ready for new fall tenants.  Particularly if you’ve cushioned the financial hit ahead of time.
• For credit and other screening, talk to mom and dad.  Running a credit report on your student tenant may not be particularly helpful.  At this stage of the game, your tenant(s) may have little to no credit history, but it’s a fact that comes in handy.  Involving a student’s parent or guardian in the transaction is a wise move no matter what, not only to insure that your financial interest is backed but to help mitigate party problems.  Of course it’s not true for everyone, but having a parent’s phone number at your disposal when noise or damage gets out of hand can be a quick, effective solution…particularly if mom and dad are footing all or part of the bill.  Parent co-signers should be a rule when a student’s credit history is insufficient, and you may even wish to consider it a rule for all student tenants, even those with a history you’re comfortable with.  While you’re talking, take note of the parent’s interest level, willingness to cooperate with rules, and questions.  Most apples don’t fall far from the tree, and you may be able to learn a lot about your new tenant by watching mom and dad.
• Assume they’re all mama’s boys and pampered princesses–save your appliances! While it’s a scary thought to imagine a 19 year old who hasn’t touched a dishwasher or dryer, they’re rare but out there.  You can’t guarantee that they’ll be read, but you should include a handout of appliance usage instructions in a new tenant packet.  Also helpful are large, easy to read signs in communal laundry areas specifying the do’s and don’ts of washer and dryer use.  Insulting one or two “domestic experts” is worth it if you can save yourself one kitchen flood or prevent an appliance replacement.
• Think extra security during breaks. Nothing is more appealing to would be criminals than apartments containing more electronics than furniture that are  known to be deserted for a month.  If you don’t have onsite management, prepare for semester breaks by adding security to protect against break ins and vandalism.  It can be as simple as extra lighting programmed with timers, as complex as outsourcing a security service.  Anything you choose to do will protect your property and give your tenants extra peace of mind.
• No tolerance: Police visits, rent problems, and unauthorized guests.  Again, most college students are not there to cause trouble, but the ones who are will show themselves pretty readily.  Your lease should include some no tolerance issues and the consequences for violation.  If your property suddenly becomes a known problem house for the police, or you get the sense that it’s filled with squatters, or timely rent payments are becoming a fantasy, it’s best to cut your losses and find a new tenant or tenants.  If there is an upside to taking action in these extreme cases, it’s knowing that most of those kids won’t stick around long enough to bad mouth you to the college set.  If they do, people rarely trust the word of the guy majoring in beer pong anyway.

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Real Estate Investment, Urban Renewal, affordable housing, college housing, customer service, eviction, fair housing, foreclosure, investment, Landabout, Landlord, Property Management, real estate management, reduced vacancy, rental, security deposit, tenant pet policies, tenant turnover, wealth creation

Good reads: This week in property management

Security concerns?  Cut out the middle man and just rent out the police station.

Secondhand smoke…is it worth $2million?

The good, the bad, and the unfinanced:  Multifamily demand up, cash backing still hard to come by.

New Hampshire officially makes cable a privilege, not a right.

Interesting tax question for owners of mobile homes offering Section 8.

In the UK, trouble on the rental scene…more tenants late at year’s end.

Floods in Australia, the rent is still due.

Sacramento stays steady.  Good things to come here at home in 2011?

Going to the Big Game?  Check out this sweet manse for rent…your daily tab starts at $15k.  If Hollywood is more your style, you can pick up Orlando Bloom’s bachelor pad for a mere $18K/month.

 

 

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Real Estate Investment, Urban Renewal, affordable housing, customer satisfaction, customer service, fair housing, foreclosure, investment, Landabout, Landlord, section 8, tenant turnover, unified communications, Urban Renewal, wealth creation

Good reads: This week in property management

Good news: The good people of Cincinnati restore a renting family’s twice stolen Christmas.  Another rally to help, since holidays and fire are way too common.  As a result, some Chicago renters are forced to get fake with their trees.

Win-win:  Architecture firm beats the slump by working multi-family.

Rental conversion costs rise in Minnesota.  Duluth wants more $ to make it happen.

Aussies get organized, but is it okay?  Bad tenant lists under scrutiny.

Not so hot at anger management: Landlord-tenant dispute leads to arson. 

Code violations clear a rental property in St. Louis.

$1m rental discrimination lawsuit in Sioux Falls settles for $30K.  Elsewhere, a discriminatory ad draws a lawsuit of its own.  In CT, income bias.

In Elmira, they’re serious about landlord registration.  Don’t-have-to-pay-rent serious.

A whole lotta watta:  Des Moines landlord $100K behind in water bills.

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The Landabout blog will be back next week with more news and info you can use.  From all of us and the Landabout family, we wish you a happy holiday season and a prosperous new year!

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Real Estate Investment, Urban Renewal, affordable housing, customer service, fair housing, home staging, investment, Landabout, Landlord, lease, lease law, marketing, multi-family, multi-family safety, news, Property, Property Management, safety, Software, tenant relationships, unified communications, walkability, wealth creation

Extra baggage: Dealing with the unauthorized tenant

As a landlord, you know it’s best to play by the rules.  You take careful steps to screen your tenants and make them accountable for payment of rent, the appropriate treatment of your property, and each of the terms of your lease.  So who is the stranger who answers the door when you pay your “by the rules” tenant a maintenence call?

Unauthorized tenants are not as uncommon as we’d like to think.  They may be a guest of your authorized tenant who goes from couch surfer to roomate, a new significant other, or a subleaser by handshake.  Regardless, they are people who claim your property as a primary residence, and they may care very little about your rules.  In the worst situations, they may even see their under the radar status as an opportunity to break your rules…when you don’t have so much as a first name or cell phone number.  More often, extra “tenants” cause parking issues, laundry facility headaches, unexpected damage or noise, strain occupancy codes, and may even cost you income.  Doesn’t sound quite fair, does it?

How to Avoid Unauthorized Tenancy

As with most unwanted elements of leasing a rental property, head off problems by including an unauthorized tenant clause in your lease.  Allow for an appropriate guest period (take into consideration things like helping a relative recover from a medical procedure or a visit from overseas; 7 to 14 days is common with landlord notification for longer periods less than 30 days), then promise a hefty rent increase or termination of lease for those found to be in violation.  Be sure to specify that legal costs are the tenant’s responsibility should the matter end up in court.

Make a clear distinction between an unauthorized tenant and a sublease, if you permit them.  The big difference in terms of protecting your property and business is paperwork, and making this clear will help your tenants understand that you don’t discourage change, you simply want it done right.

Last, know your property or hire someone who will.  Unauthorized tenants aren’t known for making themselves known, and oftentimes it’s for a reason.  Knowing your property does not mean knocking on doors every three days to do a head count, but simply being onsite on a regular basis, talking to tenants to ask how things are going, and staying on top of maintenance and repairs.  Your legal tenants will be your best source for volunteering information when something is not right.  After all, they are playing by the rules and they’re doing the suffering when there is never an empty washer or a free parking space.

What to Do If You Find A Violation

When it comes to unauthorized tenants, it’s generally in everyone’s best interest to solve the situation amicably.  It can be difficult to prove unlawful occupancy, and you may even have to subpeona other tenants to verify that they’ve seen the person(s) coming and going at all hours, for long and consecutive periods of time.

First, you can serve your legal tenants a notice of lease violation, and include a rental application (with notice of any new deposit or rent requirements) to be completed by the guest within a period determined by you, anywhere from 24 hours to 7 days.  The tone should be firm, but allow them the opportunity to right the situation quickly.  Most people keeping this sort of secret will respond when it’s made clear that the jig is up, and your letter will explicitly tell your tenant that you are to recieve the appropriate paperwork or the guest is to vacate.  If not, it is appropriate to pass along a notice of intention to vacate and give your tenant (and guest or guests) the chance to get out before things get ugly.

Last Resort: What Happens If They Won’t Leave

If all attempts to restore this particular tenancy to the rules have failed, the steps in a typical legal eviction will apply.  If you’ve taken your time and made attempts to come to an agreement, you have plenty of documentation showing that your tenant violated their lease and you offered a remedy with no compliance.

In a perfect world, the situation doesn’t escalate to termination or eviction.  Your tenant doesn’t want to lose his or her home over an illegal roomate any more than you want to lose the lease.  There are ways to peacefully and profitably reach an agreement, and the best start is to treat the stranger as a new tenant who will play by the rules with a carefully managed second chance.

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Real Estate Investment, Urban Renewal, affordable housing, collection, customer satisfaction, eviction, fair housing, investment, Landabout, Landlord, lease law, multi-family, multi-family safety, Property, Property Management, real estate management, recession, reduced vacancy, rent, rental, security deposit, unauthorized tenant, Urban Renewal, wealth creation

Not snow sure about winter maintenance? Don’t be left in the cold when it comes to snow & ice

It seems so simple, right?  It’s winter, snow and ice will end up on your property.  You hire a plow, perhaps throw down some salt…then  head immediately back indoors where it’s warm.

Not so fast.  Winter may be the most wonderful time of the year, but it can also be the most litigious.  In addition to the ever popular “slip and fall” suit, snow and ice buildup can also become a factor in car accidents, missed work days, parking shortages, and injuries related to falling ice.  Any liability that involves such injuries, many of them potentially long term, are enough to give any property owner the chills.

When winter comes calling, it’s important to look at snow and ice removal as an important investment as opposed to a fleeting hassle.  Since you can’t stay warm if you lose your shirt, some things you should know about making your property winter safe for you and your tenants:

1. Hire a pro.

Yes, there is a trade association for that.  The Snow and Ice Management Association (SIMA) supports professional industry contractors, many of whom specialize in the multi-family industry and/or work with property managers.  Hiring a professional service will put your mind at ease, as many of them will already offer solutions for the suggestions below.

2. Choose a company that has reliable 24/7 service.

Placing the responsibility of snow and ice removal on your own maintenance staff may be handy, but it also assumes that you feel comfortable calling on them when winter weather hits.  Since Mother Nature keeps a schedule for no one (and more often likes to toss out surprises just prior to, say, the Monday morning commute) it is often logistically and financially more reasonable to hire it out.  The best snow and ice contractors know weather patterns and smart removal like the backs of their hands, and they expect to work all hours.

3. Keep a record.

Document (even if your contractor does as well, and the good ones will) the all snow and ice management you’ve done with times and dates.  Injury and accident claims, should they occur, can often be challenged with good record keeping.  As with all maintenance activities, documenting your efforts is the best way to prove that you’ve taken all reasonable steps to prevent accidents and injuries.

4. Check on your insurance.

Good snow and ice contractors will carry their own policies as well, but winter is one of the better times to review your policies and make sure they are up to date.  Even perfect winter maintenance will not guarantee a season free of incident, so now is the time to make sure you’re protected.

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Real Estate Investment, Uncategorized, customer service, investment, Landabout, Landlord, landscaping, lease law, multi-family safety, Property, Property Management, real estate management, rent, safety, snow and ice removal, tenant turnover, wealth creation

Good reads: This week in property management

The best holiday gift? Signs of recovery in the rental market.

The gifts keep on coming…occupancy improving and Denver is booming.  Rents are rising too.

Here’s an area that hasn’t seen many gifts in recently…multifamily starts expected to rise.

Role reversal…Advice to tenants on finding a good landlord, from a landlord.  Also, what your landlord isn’t telling you from the WSJ.

Priceless comments:  You’ve heard of the crazy that is the NY rental market, now read about what landlords in the area are asking for.

Sex and the (Giant) Salary: SJP snags a really expensive NYC apartment.

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, affordable housing, customer service, eviction, foreclosure, investment, Landlord, lease, multi-family, Property, Property Management, reduced vacancy, rental, tenant relationships, tenant turnover, Urban Renewal, wealth creation