Top 5 Mistakes Landlords Make with Their Investment Properties

1Managing an investment property is no easy task. It may sound like big money, but if you are not prepared it can turn into a huge money pit. As a landlord, you have a big responsibility to the property as well as the tenants. One small misstep could end up costing you valuable time, energy, and money. That is why you must make sure you do your homework before jumping in. Do as much research as possible. If you look up the latest real estate trends in the area or ask a local expert, you will be able to find enough information to help you make the best decisions when it comes to your investment property. Unfortunately, many landlords want to get started so quickly that they do not think before they invest. Here are the top five mistakes that landlords make with their investment properties:

1.Choosing the Wrong Tenants

This is one of the biggest mistakes you can make as a landlord. If you are renting your property out to a stranger, you must take the extra steps needed to make sure you get the best possible tenants in your property. If you do not know them very well, there are certain precautions you can take. Have them prepare the following:

a) Application Form: Have prospective tenants complete a written application form. This will include standard renter’s information such as names, numbers, employer, previous residences, income, etc. Each adult who will be living in the property would need to fill one of these forms out and minors can be added as well. They would sign that all the information they provide is accurate to the best of their knowledge.

b) Credit and Background Checks: Tenant screening is a great way to see how financially stable your prospective renter is. Credit reports often show if someone has been late on payments and the amount of debt they already have. A background check is very important, not just for your peace of mind, but also in consideration of the neighborhood. You would not want to rent the property out to a convicted criminal. It would compromise the safety of the area and could also bring down the property values.

c) Referrals: Asking for referrals from past landlords and current employer is a great way to go the extra mile in finding the perfect tenant. If the applicants have not be great renters in the past, then they probably would not move forward with their application if referrals are needed. A referral from an employer would also give you confidence that the tenant is gainfullyemployed and able to make a monthly payment.

2. Failing to Create a Thorough Lease Agreement

Creating a good lease agreement is where part of your research will come in handy. Many landlords will print the first form they see on the internet. Unfortunately, this form could be outdated and only relevant for a certain location. Make sure to find an application that has all your stipulations and current local regulations spelled out. Some tenants will comb through the entirety of the agreement to try to catch something that the landlord missed to exploit it. For this reason, it is very important that you create a thorough lease agreement. Be sure to add any rules specific to your property in an addendums section.

3. Lack of Communication

If you make yourself unavailable to your tenants, you are doing them and yourself a disservice. Your office should always be open and you should always be available by phone. Sometimes, home emergencies will come up and your tenants will need your ‘okay’ or your help to get the issues resolved. It can range from something small, like a door coming off its hinges, to something huge, like a flood or leak in the plumbing. The sooner you can get back to your tenants, the better for them and you. The longer you let an issue go, the more difficult it will be to fix a problem and the more resentment your renter could have for you. You want to make sure that your tenants have a good experience so that they are not criticalof you to future renters. This is especially important this day and age where you can review anything and anyone on the internet.

4. Setting the Rental Rate Too Low or Too High

Make sure you are setting the rental rate within the correct range for the property’s age and location. There is such a thing as setting the price too high and too low. If the rent is too high for the area or for how old the property is, no one will want to live there. The longer your home sits unoccupied, the more money you are losing each day. In the same vein, you do not want to set the rent too low. You may be able to get someone into the home quicker, but you could be leaving a lot of money on the table. The whole point in taking on an investment property is to make money. The best thing you can do is look at other rental properties in the area. Try to stick within the range of rental pricing you see in the neighborhood.

5. Delaying Eviction Process

If you do find yourself in the position of having to evict a tenant, try to get the process started as soon as possible. You can expect it to take about 30 days from start to finish, but many times, it is delayed because tenants will come up with excuses. As soon as you can tell there is a real issue, you should begin the process. The longer you wait to get it rolling, the longer it will take. The longer it takes, the more money you will be losing. It is important to note that the tenant is still legally obligated to pay the back rent owed to you. However, if a tenant has opted not to pay rent up until this point, you may be out of luck trying to collect it from them in the future.

Being a landlord is a tough role! If you avoid these common mistakes that most people make with their investment properties, you should have an easier go at it. The main thing to remember is that the more research and preparation you put into renting out your property, the more return you will see on your investment.

Source: realtybiznews.com

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We’ve Launched Our New Website & Video!

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WE’VE JUST LAUNCHED OUR NEW WEBSITE!

Here at Bev Roberts Rentals we are always looking to improve the services we offer. In an exciting step towards enhancing your experience, we have launched a brand new website. With a fresh look, feel and a new intuitive design, our new website is designed with you in mind. We are now mobile optimized! We understand your needs and how we can help you with a variety of leasing and management challenges. Fully optimized for mobile devices, our new site will allow you to access the information and services you need whether you’re at your desk or on the move.

 

WE’VE JUST LAUNCHED OUR NEW VIDEO!

For us, family-owned and operated means a family feeling with a professional approach. When you call on us, you’re not calling upon strangers for assistance, you’re working with our family. Serving customers directly is a primary part of our business model. We’re a family with values, beliefs and traditions, much like yours. That’s why we care on a personal level, not because it’s our business, but because it’s our way of life. As a family-owned and operated company, we take pride in providing you with more personalized services. Get to know our family better by pressing play below…

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.

Bev Roberts Rentals Will Be Closed Labor Day

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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.”

Is landlording causing you to experience excessive “noise” in your mind?

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Is #landlording causing you to experience excessive “noise” in your mind? Does it get worse when you have a #TenantProblem or #PropertyIssue?#BevRobertsRentals is crucial to maintaining sanity. Through Bev Roberts Rentals, close your mind to distracting and disturbing thoughts, and enjoy inner peace and happiness. Unravel your mind with Bev Roberts Rentals, before it unravels you.

Do what you love and you’ll never have a problem with Monday!

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We are a family owned and operated business that share a love of leasing and property management. We believe that working together as a family gives us an advantage over our competitors and has been the key to our success. It’s been proven that family owned businesses are more stable, have a longer time horizon and tend to have a high level of trust and commitment to customers, because how the company behaves reflects the family’s personal integrity. We have infused our core values into our company and it shows! As a family owned and operated business, we have a better understanding of our customers values, expectations and needs.

A Skilled Property Manager isn’t Cheap & a Cheap Property Manager isn’t Skilled.

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Why The Cheapest Property Manager Isn’t Necessarily The Best

When it comes to choosing a property management company, it’s worth paying attention to that age-old saying that ‘you get what you pay for’.

Choosing the cheapest property management company may seem like a good idea at the time, particularly if you’re feeling the pressure on your bank balance after purchasing an investment property, but cheap is not satisfactory when it comes to protecting your very valuable asset and it’s important to choose wisely.

Very simply, property managers aren’t all equal and quite possibly, the one that’s offering its services at the lowest fee could also be the one that delivers the least amount of value.   Of course, as a property investor, you would be looking at maximizing the returns on your investment so you wouldn’t want to waste money, but saving a few dollars on cheaper property management upfront could very likely cost you a lot more over the long run.

Let’s look at why price is misleading when it comes to making a choice of property manager.

Firstly, you need to evaluate what the property manager is offering for that price. You should ascertain how many properties each person manages and what services they provide. If they have a multitude of properties on their books with only one property manager looking after them all, they could end up being too busy to focus on the important details of your investment.

You should check how often they will be performing inspections and whether they will be corresponding directly with the tenant to handle any maintenance requests and so on. Very often, a property management company that offers its services for at a very cheap rate will do little more than place tenants and collect rent every month, leaving the property owner to do all the running around.

And that brings us to another very important point – quality of tenant. A reputable property management company will have an extensive database of prospective tenants and a proven strategy for attracting quality tenants quickly and efficiently.   And that’s important because if the leasing real estate agent isn’t totally focused on getting your property tenanted with the right type of person as quickly as possible, you could end up with costly vacancies or a high turnover of inappropriate tenants.

The best property managers also know their areas very well, and they’re able to make informed recommendations about what rents can realistically be achieved, what property upgrades are necessary in order to make the property more marketable or if anything can be done to attract a higher rent, etc. They are also proactive when it comes to alerting owners when leases are due for renewals, advising owners of changes to state and federal regulations.

Warning bells should ring if a property management company that is offering cheap rates has a reputation for high staff turnover.   If the employees aren’t happy, you probably won’t be happy either.

Ideally, your property manager should pride themselves on their ability to communicate and the way they diligently return phone calls – as they do at Bev Roberts Rentals, Inc., leaders in property management in the North Carolina Triangle Area.   Another thing that sets Bev Roberts Rentals, Inc. apart from their competitors is that each property owner has a single point of contact with one real estate agent from leasing to property management within our company – and that’s not something that happens too often in the property management game. In addition We are a family owned and operated business. We believe that working together as a family gives us an advantage over our competitors and has been the key to our success. Our family is committed to outstanding customer service that goes beyond normal client expectations. It’s been proven that family owned businesses are more stable, and tend to have a high level of trust and commitment to customers, because how the company behaves reflects the family’s personal integrity.

If this level of service appeals to you, feel free to contact one of Bev Roberts Rentals professional property managers at (919) 306-5665 or visit our website to see what personalized property management service looks like at http://www.RobertsRentals.net.