Ask not what a property managers fees are, but if they are worth it. There are cheap property managers that give cheap service, so don’t be mislead by discounted fees. A key thing to understand about property managers is that their prices are ultimately driven and determined by their value.
When you have a #vacant #rental property, it costs you money each day it sits empty, so it’s important to reduce time between tenants to a bare minimum. Filling a unit with qualified tenants takes more than just putting up a for rent sign in the yard. #BevRobertsRentals is the key to minimizing the time that your rental sits empty. We act quickly and effectively in marketing and attracting prospective tenants who are ready to sign a lease agreement—all without putting your cash flow at further risk.
Happy National Peanut Butter Day! 🥜
Leasing is like Peanut Butter…
it can be Smooth or Nuts.
Call Bev Roberts Rentals for assistance! (919) 306-5665
The added income from a rental property can look very appealing to a young entrepreneur or someone seeking assistance with property payments. A first-time landlord should be acutely aware of the broad spectrum of duties expected from a rental property owner.
Tenant expectations are just as important as the expectations held by local and federal law. Renting out a property is not as simple as collecting money once a month. Here are a few important things every new landlord should know before leasing their first property.
Understand tax laws for property owners
Tax law may be a bit stale, but it is crucial for property owners to understand if they are looking to make money in an entirely legal manner. Take the time to do the proper research before investing time and money into property rental.
There are several opportunities to regain investment funds as well. Tax deductions are the brighter side of the business. Interest, repairs, and regular maintenance costs are all qualified tax deductions. Interest on property loans, mortgage loans, or credit card debts pertaining to the rental property can add up to a significant sum by the year’s end.
Know landlord rights and limitations
Every set of state laws is different. It is important that every new landlord knows their rights before renting their first property. Also, a property lease is a substantial agreement, but the landlord has the legal right to augment that contract at any time with the signature of the current tenant.
Above all, a landlord has the right to get paid in a timely manner. Owners have the right to determine the length of a tenant’s stay, and to legally evict those that do not pay their rent within an agreed upon time.
Know tenant rights and limitations
Tenants are also equipped with rights to protect their best interests. Tenants have the right to a certain amount of privacy. A landlord must notify the tenant 24 hours in advance before entering the property. The tenant also has the right to a safe and proper environment.
The landlord is responsible for making sure the home complies with local and federal housing codes. Also, tenants have the right to the best interests of their security deposit. Some states require the landlord to keep the funds in an interest-bearing account for the length of the lease, so it is best to stay up to date on local laws.
Screen for reliable tenants
It is important that a new landlord has a thorough screening system for potential tenants. Background checks are the best resource available to property owners for screening interested renters. They will provide valuable information on the potential client’s rental history.
It is best to make contact with a minimum of three credible references after initially meeting the clients. If it is a long distance rental relationship, then there are other agencies that will assist landlords with the process of tenant screening, like the National Tenant Network.
Decide what type of relationship is best
Before ever renting the first piece of property, a landlord must first decide what kind of relationship will be most suitable for doing business. Some property owners do very well building a friendship or partnership with their tenants. Some property owners are better landlords when they communicate in strictly business terms.
The nature of the newly formed tenant-landlord relationship should be clearly conveyed prior to signing a lease. Painting walls and changing fixtures are not always in the best interest of the owner and should be discussed before the property is rented to the prospective tenant.
#BevRobertsRentals turns the traditional perception of #PropertyManagement upside down. They have set forth procedures that streamline day-to-day operations to help maximize the bottom line. Their complete, full service property management system is based upon 25-plus years of experience in the business.
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There’s an old saying, “Good, Fast, or Cheap – Pick Any Two”. The concept is simple. Choose two of the three options: good, fast or cheap. You can’t have all three. If you want something fast and cheap, it’s not going to be good. If you want something good and cheap, it’s not going to be fast. If you want something good and fast, it’s not going to be cheap. There are certainly exceptions to this rule, but for the most part we’ve found this to be fairly accurate.
It really doesn’t matter what line of business you’re in, customers all want their product done good, fast and cheap; however, it is impossible to create work in this manner. It just does not work that way.
Property management companies are not all created equal: They don’t cost the same, they don’t deliver the same quality of service, and they don’t provide their services at the same speed. So why do landlords choose to evaluate property management firms solely on how much they cost? When the success of your investment property, worth hundreds of thousands of dollars, is at stake, why choose a “cheap” property management option?
Too often, the “cheap” property management option comes with many gaps, when compared to a more reputable and marginally higher-priced firm — gaps related to cost, quality and promptness. You wouldn’t expect steak and lobster at a fast food restaurant, just as you shouldn’t expect first-class management from a “cheap” property manager.
Question: I am a property manager at a low-income apartment complex. Last year, a tenant in a wheelchair told me that she needs the carpeting in the unit changed because her wheelchair gets caught in the fibers, making it difficult for her to move forward. We understand that we have responsibilities to accommodate people with disabilities, so we replaced the carpet with laminate flooring. The project cost us over $1,500.
Now another tenant who uses a walker brought us a doctor’s note saying that she also needs laminate flooring. I have seen her around the property talking to the tenant whose floors we did, so I know they are friends, and I know that’s where she got the idea to make this request. Do we have to replace the floors in her unit as well? What if all the tenants want new floors?
Answer: What your tenants have asked for is a reasonable modification — a structural change that gives an occupant with disabilities full enjoyment of the premises.
Although housing providers generally do have to allow reasonable modifications needed by persons with disabilities, tenants must pay for these modifications themselves unless the housing provider receives certain kinds of federal financial assistance. In that case, the housing provider has to pay for the modification unless doing so would create an undue financial and administrative burden.
The fact that you are a low-income housing provider and paid for the first modification may suggest that your complex does receive some form of federal funding, but you should discuss the matter with someone familiar with the funding at the complex and the requirements connected to that funding.
Neither the fact that the two tenants are friends nor the fact that you replaced the flooring in the other unit at your own expense changes your responsibilities under the law. This new request should be evaluated on its own merits: If the tenant has a disability and if the modification is necessary to allow her full enjoyment of the premises, then you must permit the modification.
This is true for every tenant who makes the request, regardless of how many there may be. But remember, of course, that if the tenant must pay for the modifications, the financial burden of replacing the flooring falls on the tenant, rather than on you. And if you do receive federal funding, if and when the cost of replacing the carpet with laminate flooring for multiple tenants rises to the level of an undue financial burden, you may not be required to grant further requests.
A final note, if the tenant would have to pay for the modification herself but cannot afford to do so, she may be able to get assistance from a nonprofit or charity. Contact a local disability rights agency to see what programs might be available in your area.
You’ve purchased a rental property, and now you’re figuring out how to get started as a landlord. Failing to specify all of your requirements and expectations in the lease is one of the more common landlord mistakes.
Smart landlords know the best way to safeguard their investment from potential tenant trouble is to craft a solid rental lease agreement that – at a minimum – includes these key things:
1. The basic clauses. Every rental lease agreement must list the parties to the agreement, which would be you and the tenant, along with the property’s address. You also want to state the term of the lease, which could be month-to-month starting on the first with a particular end date or an automatically continuing lease that remains in full force and effect.
2. Security deposit clause. Your lease should require the tenant to put up a security deposit that matches one month’s rent or more, depending on the value of furnishings and repair costs if something goes wrong. Some states require the landlord to place the tenant’s security deposit in a separate interest-bearing account and, at the end of the lease, return the deposit plus interest to the tenant, less any damages. Make sure you understand the laws and regulations in your area, and to save time and money over the long term, have your real estate attorney review your lease agreement to ensure that it follows the law. Security deposits can be a problem if not handled correctly.
3. Maintaining the premises. The lease should specify that tenants are required to maintain the premises, abide by noise control rules and not change the locks without your written approval. You will want to itemize the appliances (and any furniture, if applicable) that are part of the lease, and note their condition and any other special considerations. Don’t expect a tenant to follow oral requests, such as not parking in the driveway. All requirements must be spelled out in the lease agreement. Also note whether the tenant or landlord will be responsible for utilities. Take the time to clearly write out the details of your rental agreement.
4. Warning of concealed defect. In some jurisdictions, you have a legal duty to warn of a concealed defect known to you, or a defect that it is reasonable for you to know about. If you know the deck is crumbling and you fail to warn your tenant, then you may find yourself explaining the situation to a judge. Better to disclose the known defect in the lease and, best of all, fix it before the tenant moves in.
5. Subleasing clause. At some point, most landlords have a tenant who wants to sublet the apartment to a friend or stranger. To avoid trouble, make sure your lease agreement includes a subletting clause that requires the tenant to obtain your written permission before turning the rental over to someone else. When the tenant asks to sublet the property, you will be in a position to decline or accept their offer. But heed this caveat: If you want to agree to having the new tenant move in, then it’s best to end the original tenant’s lease and start the process from scratch with the new tenant. You should go through the entire background check with the new tenant, including a new security deposit and lease. Do not put yourself at risk by trying to enforce your original lease agreement against a new tenant who was not a party to it.
6. Termination. The best practice is to know your jurisdiction’s rules on terminating a lease and include those details in your rental lease agreement so your tenant will not be surprised. Terminations occur at the end of a non-continuing lease and also when there is an eviction. Evictions can be tricky; you may think you know the rules, but if you improperly notify your tenant of a coming eviction, you may find yourself on the wrong end of a lawsuit. You can find free eviction paperwork online, but if you are planning to evict a tenant, you would be wise to consult with an attorney.
7. After the tenant leaves. Would you ever hold a tenant’s personal property for unpaid rent? In some states it’s against the law for a landlord to confiscate a tenant’s property and demand rent money in return. Other jurisdictions consider the property abandoned and allow the landlord to dispose of the items. Most states require a landlord to hold the tenant’s property for a short period of time and give notice to the tenant, and some allow the landlord to claim a storage fee for the hassle. The key is to check your local laws and spell out in the lease what you plan to do with personal property left behind by the tenant.
Include these important clauses in your rental lease agreement and you will be well on your way toward building a successful real estate investment business.
On July 1, 2016, the North Carolina General Assembly passed Senate Bill 326. SB 326 modifies local government law regarding the inspection of residential buildings. The bill includes provisions that deal with reasonable cause for inspection, property permits, and allowing the sheriff and city police to assist a landlord in addressing crimes committed on private property. This bill also eliminated the ability of municipalities to operate a rental dwelling registration program as of January 1, 2017. Therefore, as of January 1, 2017 the City of Raleigh and the Town of Garner Rental Dwelling Registration program will be dissolved. Renewal notices will not be mailed out in February 2017.
Landlords, please remember to cancel any automatic bill pay schedules you may have set up with your bank for the rental dwelling registration program.
If you have any questions, please contact:
Town of Garner:
Town of Garner