Five Ways a Property Management Company Can Save You Time and Money

If you’re a landlord, you know that managing rental properties is more than just collecting the rent. You have to think about finding the right tenant, dealing with maintenance issues, complying with the law, and so much more.

Managing properties gets very complicated, very quickly. If you manage multiple properties, you know how the complications can multiply.

A full-service property management company can substantially reduce the time you spend thinking about mundane tasks like rent collection, maintenance requests, and finding new tenants. The property manager automates many of these tasks, allowing you to focus on what you care about the most — your job, your family, even purchasing more rental properties.

Understanding Compliance

Understanding state laws, codes, and compliance issues is one of the most complex areas of owning rental properties. A professional property management company has set procedures and manuals to ensure you’re in compliance with the law — so you don’t have to reinvent the wheel.

Property managers also understand the issues surrounding taxes, fair-housing and anti-discrimination laws, and eviction procedures. Companies can address these concerns by leveraging their collective knowledge to deal with these various issues and provide you with the information you need to file your taxes — or even evict a troublesome resident.

Finding The Most Qualified Tenants

I have been managing properties and overlooking operations for a San Diego property management company for 13 years now. I can tell you from experience that vetting residents is one of the most important and time-consuming activities you will undertake as a property owner. Finding reliable tenants can mean the difference between making money or losing money on your investment property.

Reliable property management companies have time-tested procedures to screen out the troublemaker residents from the ideal tenants, while complying to all the laws and regulations previously mentioned. A property management company knows how to handle tenant screening to find residents for your property.

How do you find those qualified tenants? It all comes down to marketing your rental.

To begin, invest a little into the presentation of your property. This extends beyond just cleaning your property into identifying the character of the neighborhood, understanding the type of residents who come to that neighborhood, and what they want in a rental. For example, when we’re working with properties downtown, we know people renting want easy access to their job, a parking space, and information about public transit to get around San Diego. The more you can talk up the nightlife and things to do, the more valuable your apartment building becomes.

Similarly, renters in more residential areas like South Park, Bankers Hill, and North Park here in San Diego are more likely to be interested in settling down. These neighborhoods are populated by single-family homes, parks, and other family-friendly activities. An experienced property manager can leverage this information to secure residents in a timely manner for you.

Day-To-Day Property Management

You will note a common theme in these sections. Property management companies come with a library of knowledge and experience that they can leverage into all aspects of day-to-day operations. The right property management company will have set procedures on when to conduct safety checks, maintenance, and other scheduled inspections and affairs. Most managers will also have a set system for responding to resident concerns, securing a handyman, and collecting rent.

Developing these processes can be extremely time consuming as an owner. You’d need to understand, first, the basic dos and don’ts of tenants rights, and then find the right paperwork or vendors to help you with each stage of move-in or move-out. When things go wrong, it can be quite expensive to find the right people to help at the drop of a hat. Property management companies work with specific vendors across all their properties. Typically this means that they can negotiate better rates than just one property alone can get.

Value for Price

Most property management companies will charge between five to ten percent of the rent. If you only have a few properties, these rates are far cheaper than hiring your own managers.

The management company handles all of the costs associated with managing a team and provides you with the benefits of having an experienced staff. Moreover, property management companies can leverage economies of scale which enable them to retain an experienced, professional team who will provide the best possible service to you and your tenants.

Tenant Services

Finally, property management companies are invaluable if you don’t live near your property. One of the biggest issues confronted by property owners is the ability to move.

Maybe you have a new opportunity or want to change locations. If you’re handling the day-to-day services for your rental property, your options are limited — unless you want to sell.

A full-service property management company removes some of these worries by handling your rentals on your behalf. If you are the primary point-of-contact, you need to be available to work with your residents.

However, a property management company can free you up to move wherever you want (or even purchase properties wherever you want) because the company can collect the rent, maintain the properties, and every other aspect of day-to-day management. Hiring a company to manage your properties is not only convenient but also a great choice for property owners looking to increase their portfolio without having to get tied down. Investing in the right property management company can pay off.

About Micki O’Toole:

Micki is the general manager of PropertyADVANTAGE, a San Diego property management company that specializes in single-family homes and HOA management. They provide comprehensive, full-service packages as well as tenant placement to property owners and communities in San Diego and Riverside counties. Get in touch at info@propadvantage.com.

Cary, Raleigh, Apex, Fuquay, Morrisville, Holly Springs, Durham, Chapel Hill, Garner, Wake Forest. Residential rentals Wake County, RTP, RDU.  http://www.RobertsRentals.net. Triangle area rental homes and property management.  Bev Roberts Rentals

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Tenant Hurricane Procedures

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Please only call Bev Roberts Rentals when absolutely necessary, so that we may keep our lines open for emergency concerns. Please refrain from calling to get storm updates. Our team is currently getting inundated with phone calls and emails. It’s not that we don’t want to hear from you, we appreciate the concern and covet your thoughts and prayers right now. We understand that everyone is worried about Hurricane Irma, but per the North Carolina governor, Roy Cooper, “It’s too soon to know how North Carolina will be impacted.” Please keep in mind that this is our home too – so our team takes this very seriously! Many of us have lived here though numerous storms and hurricanes, so understand there is a “wait and see” period with hurricanes requiring patience. Do not panic when you see headlines declaring a state of emergency. The state of emergency allows us to get a plan activated and the teams and equipment in place in case the hurricane makes landfall in North Carolina.

Instead of calling, please use the links below for Bev Roberts Rentals information updates. Bev Roberts Rentals works hard to keep tenants and landlords informed – prior, during and post storm. We recommend everyone monitor Bev Roberts Rentals here:

Facebook: https://www.facebook.com/bevrobertsrentals/

Tenant Preparation Procedures:

Stay tuned to the local news media and follow all recommended precautions and instructions. We would like you to take a few minutes to review the hurricane plan we utilize.

  1. Log into your Tenant Portal and review your contact information. Please inform us if any of this information needs updating. Each manager utilizes this information to notify tenants of important changes, problems and/or issues.
  2. Take photos of the home and your contents at their current state for insurance purposes. After the storm, inspect the home for damage, take photos, and report damage to Bev Roberts Rentals. If possible, submit photos via the online Maintenance Request system.
  3. Please write down the below contact information for your property manager, and keep it in a safe place: Bev Roberts: (919) 630-3882 or bev@robertsrentals.net, Craig Brockman: (919) 609-3131 or craig@robertsrentals.net, and Nick Roberts: (919) 244-1649 or nick@robertsrentals.net
  4. Turn off main water to house if a pipe leak is noticed. If you smell gas, turn off main gas valve.
  5. Anchor or shelter outdoor potted plans, awnings, patio and lawn furniture, grills, and trash and recycling receptacles.
  6. Turn off propane tanks.
  7. Close all windows.
  8. Do not open refrigerator unless necessary. In case of lengthy power outages, remove food from refrigerator prior to spoiling to prevent odor damage. Empty ice bucket to prevent damage to floor from melting ice.
  9. Insert wedges in sliding patio doors; if not protected, damaging winds will lift them off their tracks and blow them into the house.
  10. Lower radio and television antennas, protect satellite dishes.
  11. Close all outdoor electrical outlets.
  12. Secure garage, porch doors, and storm doors.
  13. Purchase a flashlight (do NOT use candles) and extra batteries.
  14. Charge all cell phones.
  15. Unplug electrical equipment.
  16. Do NOT tape or board up windows. This can actually cause more damage to the windows or siding of the house.
  17. If you are instructed to evacuate the home by local authorities: If possible, please notify Bev Roberts Rentals, lock all doors, turn off main breaker, turn off main gas line, turn off main water supply to the home.

Why Renters Insurance Matters for Landlords

1Do you know someone who owns a house and doesn’t have homeowners insurance? Most likely, you don’t. That’s because if someone has a mortgage, their lender requires the home is insured. Which makes sense. If the house burns down, the lender’s money goes up in smoke.

 

In the world of renting, renters insurance is just as important, but few people understand exactly why.

 

Let’s start with the basics. Renters insurance protects renters and landlords.

 

For starters, renters insurance covers a renter’s personal belongings, something a landlord’s property insurance doesn’t cover. Without renters insurance, a renter would have to pay to replace everything stolen in a burglary or damaged by a fire. Renters insurance will also cover the cost to replace a stolen bicycle or laptop, even if the theft happens someplace other than home.

 

It also protects renters from liability if they accidentally damage their place. If a renter accidentally starts a kitchen fire or overfills the bathtub, with renters insurance they won’t be liable for the damages, even if they damage a neighbor’s place.

 

What many people don’t know is that the liability coverage benefits landlords, too. Without renters insurance, a landlord could be responsible for the cost of damages and repairs if their renter accidentally damages the property.

 

It’s important that renters carry renters insurance. Just like mortgage companies require homeowners insurance, most landlords require renters insurance in their leases. If possible, landlords should verify that renters have a current policy.

 

With renters insurance, both renters and landlords can relax knowing they’re covered. That means less stress all around!

 

Source: huffingtonpost.com

Bev Roberts Rentals Will Be Closed Labor Day

US Flag Picnic

Dear Landlords & Tenants,

Bev Roberts Rentals will be closed on Monday, September 4, 2017 in observance of Labor Day.  We will return to regular business hours on Tuesday, September 5th at 9:00 AM EST.  As customary, we will remain available by phone and appointment while the office building is closed.  The outdoor drop-box is checked daily. The online portal system is available during non-business hours as well.

Tenants… As a friendly reminder, please be aware of the lease terms due to the Federal Holiday:  “All rents shall be paid in advance on or before the first day of each month.  Tenant shall pay the late fee if any rental payment is five days or more late.  Tenant understands and agrees postal delays, envelope post-mark dates, bank discrepancies, online payment system errors, weekends or holidays, or any other pretext does not constitute a waiver of late fees.”

10 Things All Landlords Should Remember To Ensure Good Tenant Relations

1Investing in rental property can be highly rewarding if successful, as it can help build your net worth and make a profit by generating a steady monthly income. This type of investment takes work, however, with landlords having to worry not only about finding the right property but also about maintaining it, making it attractive for potential tenants and finding suitable and trustworthy renters.

All experienced landlords have their share of tenant horror stories, ranging from dealing with unruly renters to facing significant property damage, but with a proper screening process in place, most problems can be avoided. Establishing a professional, positive relationship between landlord and tenant can help the former obtain a solid return on investment and the latter achieve a higher quality of life. Below, 10 real estate experts with Forbes Real Estate Council share some of the most important things any landlord should remember to improve their tenant relations.

1. Over-Communication

Keeping good lines of communication open can solve many landlord/tenant problems. Make sure tenants understand why things are happening, and give good advance notice for anything disruptive. – Jeremy Brandt, WeBuyHouses.com

2. Tenants Are People, Too

The opportunity to serve others comes with a variety of faces. As a landlord, the ability to engage with tenants as stakeholders brings conscious leadership to our everyday interactions. Home is where the heart is, and supporting people as they create a home is a gift. Realizing you are part of impacting the social/emotional environment for others, brings a humanitarian vibe to a traditional role. – Susan Leger Ferraro, Peace, Love, Happiness Real Estate

3. Boundaries And Limitations

As our investment platform scaled nationally, we noted the variation of landlord-tenant laws as some geographic regions favored landlords disproportionately. We found it essential to understand the legislative dynamics of the community by partnering with local experts to mitigate our liability and legal exposure. – André Bueno, The BM Group

4. Being Approachable

Many tenants are afraid to contact their landlord about issues. From landlords, I hear that tenants don’t tell them about repairs until they are really bad. From tenants, I hear they don’t want to call because they don’t want to bother the landlord or are afraid. Be approachable. Be supportive of you tenants. One way we can help landlords have better tenants is teach tenants about maintenance. – Michelle Ames, HorsePower Realty/Realty Executives Metroplex

5. Trust Is The Key To A Better Relationship

My company was born from my own awful renting experience when I was pitted against other potential tenants in a bidding war. Even worse than the high monthly rent, I ended up with was the poor relationship with the landlord that ensued. Renters who have a poor experience leasing their home are more likely to churn from their lease. Landlords should make sure they build trust in the leasing phase. – Anthemos Georgiades, Zumper

6. Better Protocol

The majority of horror stories typically boil down to one thing: horrible tenants, right? However, it is incumbent upon the landlord or property manager to have a proper, thorough and strictly held vetting process for which to qualify the people who will be occupying your investment. If you’re allowing just anyone, the nightmare began before the lease even started; you just didn’t realize it yet. – Tracy Royce, Royce of Real Estate

7. The Little Things

I’ve come to the conclusion that succeeding in real estate comes down to doing the little things on a consistent basis. The same thing goes for being a landlord. Little things such as a move-in package and holiday gift cards for tenants, responding quickly to maintenance requests and being pleasant can be the difference between a tenant that will want to stay and pay and one that won’t. – Engelo Rumora, List’n Sell Realty

8. Careful Lease Review Before Signing

Many people sign documents without thoroughly reading them. Although it is not your job to hold your tenant’s hand through committing to the terms you have laid out, if you take the time, in the beginning, to make sure they understand and are willing to comply with all the terms, there will be fewer surprises later on and less chance of conflict. – Hillary Hobson, Highest Cash Offer

9. Tenants Are Clients

Every landlord should remind themselves that tenants are their clients. They’re also trusting those clients with a very valuable asset. It’s best to be respectful, communicate openly and professionally and take care of tenants so they take care of the rental property. A landlord’s behavior influences the tenants’ behavior. – Dave Zirnhelt, Snap Up Real Estate

10. Having A Property Manager

I own a property management company that collects rent, handles tenant requests/repairs, takes care of everything from A-Z. Take the stress off your shoulders as the landlord and let a professional handle the “dirty” work for you. Let us be the “bad” guy, while you vacation in the Bahamas with friends. The less you interact with your tenant, the better your relationship will be with them. – Angela Yaun, Day Realty Group

Source: forbes.com

Is now a good time to be a landlord?

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Is now a good time to be a landlord? We get this question a lot.

Recent articles have reported compelling data regarding the rental market: 

The Wall Street Journal reported “the homeownership rate is hovering around a five-decade low”, because people “no longer see owning a home as an essential part of the American dream.” People also realize “houses are not necessarily the best places to store wealth.”  As a result, there is high rental demand.

According to CNBC, “more people are renting than at any other point in the past 50 years.” As more and more renters enter the market, rent prices will continue to rise.

So what does this all mean?

  • It’s a great time to be a landlord
  • Rent prices will increase
  • More interested tenants
  • Lower chance of a vacancy

We’re excited to share this news with you. If you have any questions, please contact us at (919) 306-5665 or visit our website at: http://www.RobertsRentals.net.

9 Sneaky Fees to Watch for When Hiring a Property Manager

security-deposit-piggy-bank-moneyTo many landlords, property management services are superfluous, cutting their profit margins to a minimum in exchange for basic services. But the reality is that property managers can make your life extraordinarily easier—and most charge a reasonable enough rate that you can draw a monthly profit from your properties (headache-free).

However, when you’re searching for a property manager to handle your landlord responsibilities, it’s important to note that not all fee structures are the same. If you don’t understand how a manager’s fees work, you won’t be able to compare apples to apples, and you might end up shaving your profit more than necessary if you aren’t prepared for those fees when they come up.

9 Fees to Watch For

These are some of the most common “hidden” fees, extra fees, and differences in fee structure to watch for when comparing providers or finalizing a contract:

1. Rent Due and Rent Collected

Many property managers will charge fees as a percentage of rent, but watch how this is worded—there’s a difference between charging as a percentage of rent due and a percentage of rent collected. A percentage of rent due means your company will charge you based on how much money a tenant owes you; a percentage of rent collected means your company will charge you based on how much money a tenant actually pays you—and is generally more favorable. If you’re charged based on rent due, you’ll end up paying for property management even when your property is vacant and you have no money coming in.

2. Early Cancellation

You may also be charged an early cancellation fee should you break the contract with your property manager before the end of its outlined term. For example, if you agree to work with them for a year and you want out after eight months, you might pay an additional few hundred dollars. Be especially wary of this fee with untested property managers.

3. A La Carte Management Fees

“A la carte” management fees refer to a suite of extra fees a property manager may charge you in addition to basic services. Usually, a property manager will either charge a higher price (and no additional fees) or a lower price, with multiple additional fees, somewhat evening out. Accordingly, it pays to know what fees are applicable and what they might run you. The remaining items in this list could all be classified as a la carte management fees.

4. Vacancy

If a company isn’t charging you the full cost of management while your property is vacant, there may still be an additional vacancy fee. Rather than collecting a percentage of rent due, they may collect a smaller amount from you as a kind of retainer.

5. Advertising

When it comes time to seek a new tenant, some property managers may charge you an additional advertising fee. This would cover the cost of creating media (such as taking photos) and placing it on sources like online listings or paper publications.

6. Leasing

A leasing fee may apply when you find a new tenant for your property. This covers the cost of drafting and securing a new lease agreement and is generally low in cost. If the cost here is high, it should raise a red flag, especially if your resulting tenant turnover seems to increase.

7. Lease Renewal

Lease renewal is even simpler than initial leasing, but it may still require a fee. You may need to draw up new paperwork or renegotiate terms with a tenant, and that means your property managers will be doing a bit of extra work. Expect minimal fees here as well.

8. Maintenance

Property management fees should cover basic instances of maintenance and repair, but some companies may charge extra for big jobs, or for an inspection between tenants.

9. Eviction

Eviction can be a messy process, and if you ever need to evict, you’ll be grateful you have a property management service in your corner. Most property managers will handle the eviction completely on your behalf, but some will charge you an extra fee for the extra work involved. Expect to pay at least a few hundred dollars for this process.

Apples to Apples

Different companies might charge money in different ways, but if they’re offering similar services, you’ll likely find the bottom-line price of each to be competitive with one another. The big difference here is how you plan on using your property management company; for example, if you’re looking for long-term arrangements, an early cancellation fee shouldn’t factor much into your decision. Try to consider all these factors and all price points when comparing providers and making your decision.

Source: biggerpockets.com