The Landabout Blog

Making Property Management Manageable.

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, , , , , , , , , , , , , , , , , ,

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, , , , , , , , , , , , ,

Bitten: Property management, bedbug infestations, and who is responsible

If you were ever tucked in as a child with the sweet sing-songy phrase, “Sleep tight, don’t let the bedbugs bite” you may not have the worst opinion of the pest known as the bedbug.  Outside of your grandmother’s nuturing rituals, however, bedbugs are highly frustrating and anything but cute.

Bedbugs are small, parasitic insects from the family Cimicidae.  Although they will feed on any warm blooded animal, they have a particular soft spot for the taste of human blood.  They are flat, reddish-brown in color, wingless, and about the size of an apple seed when mature.  Because of the microscopic hairs on their bodies, they may look as though they have stripes.  They are elusive and generally nocturnal, and because not all humans have a reaction to their bites, infestations can progress and spread to a serious degree before a problem is even detected.

Gross, right?  Wait, there’s more.  Unlike other pests (rats, mice, roaches, ants, etc) bedbugs aren’t at all selective.  They aren’t drawn to filth, and there is very little that can be done to prevent them.  They are extremely adept hitchhikers, and will gladly move in with the rich, the poor, the meticulous, and the messy.  Having a warm blooded animal around would seem to be their only screening criteria, but even that doesn’t pass the test.    Able to live up to 18 months (no, that’s not a typo) without feeding, they are content to wait it out in duct work, walls, carpets, or any number of other hiding places until their next meal moves in.  Bedbugs do have a few natural enemies, but because they tend to be other bugs like roaches, spiders, and biting ants, most people are reluctant to invite those kinds of troops to fight a bedbug war.

Fifteen or twenty years ago, you would have had a much tougher time finding cases of bedbug infestation.  Chances are, if you were a property manager back then, it wasn’t even on your radar.  This is because bedbugs were all but eliminated from the US by the 1960s.  A variety of factors, including a sharp spike in international travel, the banning and regulation of certain pesticides like DDT, and even an increase in the sale and exchange of second hand furnishings have given the bedbug new power.  Cases have steadily been on the rise since the mid 1990’s, and by some accounts the number of  infestations nationwide has increased up to 500% in that time period.  In NYC alone, complaints jumped from 1,839 in 2005 to 8, 830 in 2008. 

Overwhelmingly in property management, the biggest question after “How do I get rid of them?” is “Who has to pay for it?”  It’s question that is not at all black and white.  Treatment is often a long term process with multiple visits from a service provider and can be expensive (a few hundred dollars if detected early, thousands in other cases). Some non profit organizations will help with the cost for low income victims, but all cases will require a great deal of landlord/tenant cooperation.  No one could or should put cost aside, but bedbugs are unique in their obstinance and neither party can get them out on his or her own.  Laws vary by state, and the expense is often considered to be the tenant’s.  However, the rise in cases has more states adopting tenant protections when it comes to bedbugs, and more courts are finding against property management companies in these matters.

Unlike most damage to your property, the origination of a bedbug infestion is often impossible to pinpoint.  Culpability is not only difficult, it becomes extremely tricky when you consider a tenant plagued by bedbugs may have picked them up on a movie theatre seat, or by brushing up next to the wrong person on the train.  Yet placing extermination costs solely with a property owner is arguably unfair as well, particularly if a tenant fails to report the problem early or doesn’t cooperate with treatment preparations and follow up.  That said, when it comes to disputes, a court may fall back to the unique nature of this problem.  In 2004,  Judge Cyril Bedford sided with a tenant in Ludlow Properties, LLC v. Young.  The tenant refused to pay rent for six months because of a persistent bed bug problem, and Judge Bedford wrote, “Although bed bugs are classified as vermin, they are unlike … mice and roaches, which, although offensive, do not have the effect on one’s life as bed bugs do, feeding upon one’s blood in hoards nightly turning what is supposed to be bed rest or sleep into a hellish experience.”

By now, you’re already reviewing your lease to check on your pest control treatment language.  Nearly as important as the guidelines you establish for financial responsibility are your requirements for treatment preparation, temporary displacement, and any necessary moving or discarding of personal property that goes along with it.  First and foremost, when you learn about a bedbug problem, don’t lose months in a back and forth debate over who will pay.  One female bedbug can lay 500 eggs over a year, and they are mature and ready to feed every three to five days in as little as 5 weeks.  To say time is of the essence is a horrible understatement, since a bedbug family can turn into a booming metropolis, infecting not just one but all of your units, in the blink of an eye.

When it comes to deciding just how much responsibility you will take (should your state’s laws leave it up to you), there are a few important things to consider.  As mentioned before, a bedbug issue should be approached differently than any other pest or damage concern, and the importance of working with your tenant(s) to solve the problem can’t be overemphasized.  For this reason, fully absorbing or sharing the cost of elimination may be in your best interest. 

Taking on or sharing responsibility allows you one important liberty that can have an impact on a successful result: control over the pest management provider.  Having a say in the extermination process means being able to work with someone who has direct experience with multi-family dwellings, which is extremely important since bedbugs are crafty travelers.  Having a tenant in a multi-family property hire his or her own exterminator to treat a single space may simply send them running into another unit.  In fact, when an infestation begins, you can generally count on the fact that it won’t be or stay confined to a single living space.  Now a problem that began in one unit becomes the problem of two or more units, and the question of who pays to fix it gets even fuzzier.

Unfortunately, basic fairness can’t really be a tool in the handling of bedbugs in a rental property, as nothing is fair in bedbugs.  No human behavior or habit invites them, and they are exceptionally difficult to remove.  Yet, the job is impossible without making it a group effort.  Though it’s an expense that no one wants to take on, agreeing to do so in full or in part may be the best solution to a problem that really bites.

Filed under: General Information, Property Maintenance, Property Management Topics, Real Estate Investment, , , , , , , , , , , , , , , , , , , , ,

Good reads: This week in property management

Good news: The good people of Cincinnati restore a renting family’s twice stolen ChristmasAnother 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, , , , , , , , , , , , , , , , , , , , ,

Good reads: This week in property management

Fun landlord find of the week:  Boom!  WWII explosives.

Speaking of boom, rent at gunpoint?

And…no less explosive:  A very chilly lawsuit in NY.

The good news is a mile high:  Rental outlook positive in Denver.

Rethinking the 60 day notice…death should probably get y0u off the hook.

Is the rent too damn high?  Meet Rent-O-Meter, tenant tool that can come in handy on the other side as well.

Looking to rent the perfect spot for a heroin packaging mill?  The first step is choosing a low profile location.

Not loving the satellite dish bouquet look?  DirectTV hopes they have your answer.

 

 

Filed under: General Information, Landabout Features, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, , , , , , , , , , , , ,

Successfully taking the “zombie” out of property management


As a property manager, you’ve probably seen everything. In a world with deity-laced grilled cheese sandwiches and television shows about women who turn their uteruses into clown cars, protecting oneself and one’s property from the ever rising tide of crazy is no longer as straightforward as it used to be. It could even be said that the statement, “When hell is full, the Undead will walk the Earth” has never been more real. While we don’t have access to the data, chances are good that things are close to capacity downstairs. Therefore, it’s best to prepare, do your research, and be willing to pound some zombie cranium if duty calls.

Surviving a zombie attack begins with recognition. Knowing your enemy is the first step, and, fortunately for us humans, zombies aren’t practiced in camouflage. A zombie will display a set of very distinct characteristics, but what separates the victims from the survivors is the ability to know them at a glance and take serious, immediate action. Because zombies can be mistaken fairly easily for your garden variety vagrant or drunk, pay particular attention to a subject’s keen, unnatural interest in brains and his or her indifference to the odor and unsightly nature of decomposing flesh. A zombie is also far less personable than a drunk, and will lack even the most basic communication skills.

Immediately following confirmation of an attack, know that you will not have a great deal of time to collect yourself. This is why preparation is so imperative, but more on that later. As a human, you possess a number of skills that will play to your advantage. The first is your brain (ironically the one bit of you your enemy craves). Learn to recognize the weapon in everyday objects, and look for creative barricading solutions. By choosing to stay with your property and defend it, you are accepting a challenge, but not an insurmountable one. Please note that you should never use a basement as a bunker, or any area that has an entrance but no exit. If you are forced to flee, choose a path with a low zombie density, arm yourself, and move quickly. Their erratic form of locomotion makes most zombies slow, and outrunning them shouldn’t be a concern. Keep your eyes open, and know your route before you go.

The first step in defense is reinforcing all windows and doors and collecting your survival materials. Because there are a number of tasks to manage in a very short time, you should take on this project with as many uninfected buddies as possible. Remember that reanimation can take up to 24 hours, so make it clear to all of those on your team that anyone presenting with zombie symptoms will be taken out immediately, no questions asked. Members of your group will learn very quickly that a zombie attack allows for none of the following: emotion, nostalgia, or jokes.

To lock down your building, preparing in advance is the key. For property managers, we recommend filling a storage unit on premises with zombie attack essentials. Note: Unless prospective tenants ask about zombie readiness, it is best to omit this information during tours and showings. A complete zombie preparedness kit should include:

  • A dozen or more rechargeable chainsaws. Keep an eye out for sales and ask about buying in bulk. While guns and other firearms are effective when aimed correctly, it is difficult to keep the amount of ammunition on hand required to withstand a long-term attack, and you’ll likely find yourself in the midst of the paperwork hassle of an FBI watchlist.
  • Stackable 5 gallon buckets for water collection. Gathering as much tap water as possible as quickly as possible should be a priority. Assume that all municipal utilities and systems will be lost almost immediately. Also on this note, prepare to shed any ideas you maintain about modesty and toilet use.
  • A collection of coats, pants and other clothing made of a sturdy material such as leather, as well as a number of cycling and other helmets. Designs should offer cover to more vulnerable parts of the body like the neck and arms, and most importantly, your head. These items have the added advantage of being easily explained away to the suspicious, as you have simply been saving them to donate to a disadvantaged motorcylists’ club.
  • Foodstuffs that will not break down over a term of days, months, or even years, and (for the most severe attacks) seeds and soil for indoor gardening. Foods with long term staying power include Twinkies and Ding Dongs, or essentially anything with a name that sounds more like an insult than a snack.
  • A supply of random, innocuous garden tools, crowbars, and combustible cleaning products to use as a backup weapon supply. These items will chop and burn things nicely and run solely on human power, a plus if or when your supplies run scarce.

In terms of additional preparation, take note of any tenants and neighbors who may exhibit a predilection toward zombie safety and awareness. These people may ask you about extra storage space for the 1,000 freeze dried military rations they purchased on eBay (just in case) or openly talk about helping a “friend” build a bomb shelter just before Y2K. These are the people who will be your trusted allies and partners in a zombie attack, so it’s wise to stay close.

Finally, some basics for surviving an attack that every property manager should know:

  • Location, location, location. Think carefully before investing in a property located near a cemetery or morgue. Because zombies will initially emerge from these areas, you’ve just purchased a little bit of zombie ground zero.
  • Make good use of outdoor mats and rugs. Not only will they reduce slippage and accidents for your tenants, they make for easy cleanup in the event of a brief zombie attack. Rinse and resume.
  • Practice cracking soft, slow, round things open. As everyone knows, the only way to permanently un-animate a zombie is to destroy its brain. This process will get easier over time, and rest assured the zombie you’re disposing of won’t feel a thing. Basic decapitation, while cool and satisfying, leaves you exposed to risk that the separated parts of the zombie will still function. If you opt to use this technique by accident or for sport, be sure to finish the job immediately. Zombies are as persistent as they are unattractive, and will pursue their pleasures even in the midst of serious injury.
  • In the end, zombie management is an every man for himself game. Choose your partners wisely and stay together for as long as possible, but always be ready to destroy some rotten brain—even if that rotten brain used to be the tenant who was always a month ahead on his rent and offered to help with the landscaping.

Reprinted from the Landabout Blog, 2009. Happy Halloween!

Filed under: General Information, Green Building, Landabout Features, Links, Mission Statement, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , , , , , , ,

Manage like a Yankee

Love them or hate them (and let’s face it, there really is no gray area), the New York Yankees know how to succeed in business. Even if you cringe at the mere sight of those stripes and are only rooting for injuries this playoff season, there are very few who wouldn’t give their eye teeth to have more Yankee-style triumphs on the job.

What can we learn from the team whose enemies are as passionate as their fans? Quite a lot, and you can even maintain relationships with Bostonians while you study up. Evil Empire or Greatest Team that Ever Played the Game, here’s the good stuff we can all take away. You know you’re playing like a Yankee when you:

Act As If

Act as if the game is already yours, like those other guys on the field are simply a formality. Act as if your vacancies are already filled and your waiting list is already growing. To be clear, this is not about swagger or arrogance. Rather, it is simply the opposite of desperation.

Rental incentives, while nice and arguably required these days, can cheapen your product if handled the wrong way. As a professional property manager, you work hard to offer a nice place to call home and provide your tenants with impeccable customer service. Chasing your prospects out the door with free iPods and extended periods of free rent may attract the sort of tenants who bail as soon as the perks dry up. Worse, it can leave others walking away wondering about fine print or hidden horrors. You and your staff should exude an air of confidence that comes with knowing you’re offering a great residence and great service. Save the iPods for the pool party, or as a gift of appreciation for signing that lease.

Pay for Talent

Fortunately for property managers, leasing office Jeters are far less expensive than the shortstop variety. However, it doesn’t mean they come cheap.

Turnover can be one of the most expensive hurdles your business faces. Happy employees tend to stay put, and they make sure they’re putting all they can into their performance. Certainly money isn’t the only thing that makes a happy employee, but it’s definitely high on the list. If you’re not already getting creative with your benefits package, start looking into ideas like flex time or a 401K plan/match to supplement salaries. Most driven individuals are eager to work on a pay for performance basis, which gives you the opportunity to offer innovative bonuses for those who do the most to help the business. Doling out a bit of extra cash for 100% occupancy? Sounds like a win.

Inspire Loyalty

Remember Johnny Damon’s famous hair? It became a lot less important when he was offered a Yankee uniform. What’s the only thing that would make a player scarcely blink before surrendering a trademark to the barber, or lead a fan to risk life and limb to walk into Fenway? Why loyalty, of course.

For you, keeping your tenants and staff true only to you needn’t come with mounds of cash or a decades long history in the business. Fair business practices and honest, personable service is more than half the battle. It’s okay to follow your own rules and still deal with problems on a case by case basis. In a human business that asks you to grant a fair amount of deference to human shortcomings, you are allowed to be firm and understanding all at once. Be a good employer, be a good landlord, and in this Internet age you can watch it come back to you in online reviews and social media sites. Yes, your tenants’ Facebook friends put more stock in what they say on there than anything you could say in your advertising.

Get Noticed

It didn’t take long for the population to start turning out jokes about the new Steinbrenner memorial at Yankee Stadium being one of the few things you can see from space. It is true that making dwarves of DiMaggio and Ruth is one way to get remembered, but fortunately there are a lot of other ways to leave a mighty impression and don’t require the Steinbrenner fortune.

Start getting noticed by getting involved in your community in positive ways. Volunteer, sponsor community events, and join your local Chamber of Commerce and/or Apartment Association. Even a backyard BBQ to help a local charitable organization can put you a handshake away from the people you serve. To meet the people who can help you take your business to the next level, it’s important to stay in the game.

Filed under: General Information, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , ,

Good reads: This week in property management

Embarrassed about the size of your units?  (After you get your mind out of the gutter) see what one apartment dweller does with less than 300 sq ft, proving that size is what you make it.

Also on making the most of apartment living, how to make a recycled apartment garden.

Landlord licensing still a hot topic, button in Utah.

Interesting Q & A about notice, lease terms, and making a reasonable effort to fill a vacant unit.

Update from a previous link…the flag wins.

Here’s a new way to dodge fees:  I’m going to need you to be Mormon.  

No, the fat lady hasn’t arrived yet:  Troubled Iowa landlord plans to call 90 witnesses at his upcoming sentencing.

NJ landlord steps to the plate to provide residents a place to swim this summer.

From the hardly the best advice file, a look at delayed foreclosure evictions and living “rent free”.

In Hawaii, the term “fair and reasonable” gets a day in court.

Who needs furniture when you have 2,000 lbs. of pot in your pad?

Storm season is here…lightning strikes in KC, starts multi-family blaze.

In Milwaukee, a project to remake the term “projects”.

Filed under: General Information, Green Building, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , , , , ,

Good reads: This week in property management

Just as MSNBC announces that the gap between renting and buying is getting narrower, others may be using The Times’ interactive calendar to learn that it’s not necessarily the case in all markets.  In Hartford, and in Providence, they even put it in wage terms.  Talk about hot topics–the WSJ takes a look, too.

The Cubs aren’t the only ones who don’t miss him.  Milton Bradley is a Messy Milton.

In Seattle, protection for landlords whose tenants skip out on their bills.

Notes on becoming a landlord in DC.

Code fatigue prompts one CA landlord to fight back as she attempts to rehab.

Q & A:  the whole two wrongs thing…Yes, rent is still due in a foreclosure.

Who wouldn’t want to go to something called a Schmooze? The good news and optimism is just icing on the schmooze.

Filed under: General Information, Landabout Features, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , ,

Good reads: This week in property management

Charleston landlords speak up about ordinances, fees, and the like.

Yech, landlord faces a real life episode of Hoarders.  Unfortunately property damage won’t have such a happy, tidy ending.

Good Landlord?  Get it in writing in Utah.

When you bum a dumpsville like the Hamptons, you’re kind of leaving yourself open to this stuff.

Waiting for the check to clear.  Yes, it’s very necessary.

Dude, you are not. going. to. believe this.  I totally forgot to pay the rent.

HUD takes on gay discrimination.

Have an extra three million and a thing for poorly written teen novels?  Team Edward registration not required.

Tarantino takes on his own brand of property investment.

There’s a different definition of ‘ugly’ in Iceland.  Just take a spin through Björk’s closet.

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , ,