General rules to follow for an efficient and fire hazard free dryer:

1

General rules to follow for an efficient and fire hazard free dryer:

1. Clean the lint trap screen after each dryer cycle.

2. Wash the lint trap screen after 20-30 loads. Let it air dry before replacing.

3. Use a vacuum hose to suck out any remaining lint inside the dryer where the lint trap is stored.

Looking for the Perfect Tenant? Seek out These 6 Traits!

1Your most important decision that will determine the success or failure of your rental is the person you put in the property. A bad tenant can potentially cause years of stress, headache and financial loss, while a great one can provide years of security, peace and prosperity.

So, don’t underestimate the importance of renting to only the best tenants. While it’s not possible to know with 100 percent certainty what type of tenant your applicant will be, here are six telltale signs and traits that will give you a pretty darn good indication that this person is great tenant material:

1. The ability to pay

The first and foremost quality of a good tenant is his or her level of financial responsibility and ability to afford the rent. Without proper payment, the landlord may be forced to evict the tenant and face potentially thousands of dollars’ worth of legal fees, lost rent and damages.

Most landlords require that a tenant’s (documented) income equal at least three times the monthly rent. Many tenants believe that they can afford more than they really can — so it is the landlord’s job to set the rules to protect his or her investment. If the tenant is already financially responsible, income that amounts to three times the monthly rent should be sufficient.

2. The willingness to pay on time

While some landlords look at late rent as a benefit because of the extra income from the late fee, a late-paying tenant is more likely to stop paying altogether. The stress generated when the rent doesn’t come in is not a pleasant experience and can be avoided by renting only to tenants with a solid history of paying on time.

3. A positive long-term outlook for job stability

While a tenant may be able to pay the rent and pay it on time right now, his or her ability to do so in the future is often determined by the job situation. If this person is the type to switch jobs often or has had long periods of unemployment, you may find long periods of missed rent.

4. Cleanliness and housekeeping skills

No tenant stays forever — and upon departure needs to leave the property in good condition. As such, it is important that the tenant’s day-to-day lifestyle be clean and orderly. This means taking good care of the property.

5. An aversion to crime, drugs, and other illegal activities

A person who has no regard for the law will also likely have no regard for your policies. Tenants who engage in illegal activities will cause you nothing but stress and expense. So, be sure to run a background check on your prospective tenant to ensure he or she doesn’t have a shady past.

That said, keep in mind that a prospective tenant’s past history of drug or alcohol abuse could be considered a medical problem — and thus something you can’t reject him or her over without being guilty of violating fair housing laws. If this person is selling drugs, that’s different from using. Be sure to study up on the fair housing laws in your area.

6. The ‘stress quotient’ — how much stress will this person cause you?

The final quality of a great tenant is something I call the “stress quotient” or, in other words, the amount of stress a tenant will cause you as landlord. Some tenants are very high maintenance and constantly demand time and attention. Others simply ignore the terms in their lease and need constant babysitting, reprimands and discipline (late fees, notices, phone calls, etc.). This type of tenant will only be a thorn in your side.

So, is a perfect tenant even possible?

Obviously, no tenant is going to be 100 percent perfect, so deciding how much near-perfection you require is a personal choice that largely depends on your desired involvement and the community in which your property is located. If tenants are difficult to find, it may be financially advantageous for you to rent to a less-than-perfect tenant in order to fill a vacancy.

Notice the use here of “less-than-perfect tenant,” and not “anyone.”

On the other hand, if you have plenty of applicants to choose from, you can be significantly more picky. Just remember, it’s much better to have your unit vacant a little longer while you wait for the right tenant than to rent to the wrong person.

So, how exactly do you weed out the bad tenants and find those quality tenants? The answer involves setting strict qualifying standards and screening your applicants to verify whether or not they meet those standards.

Source: stamfordadvocate.com

Pokemon Craze!

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Use #PokemonGO as a way to get out of your house, and #BevRobertsRentals as a way to get into your next one! #PokemonCraze

What Do Rising Rents Mean for Investors?

House Icon Shows House Price Going UpThe cost of renting has fallen slightly in the last year among the top 25 largest rental markets, according to a report from Trulia this week. However, affordable listings are on the decline in metros such as Oakland and Orange County in California and Phoenix, Arizona.

In Oakland, for example, the share of affordable listings declined by nearly 20 percentage points year-over-year in April 2016 from 66.0 percent down to 46.2 percent, according to Trulia. Meanwhile, in metros such as New York City, Miami, and San Francisco, rents remained sky high—in San Francisco, nearly 91 percent of two-bedroom homes rented for more than $3,000 per month in April, and 63 percent of two-bedrooms rented for more than $4,000.

Are rising rents prompting renters to enter the housing markets as buyers? Some recent reports say they are—but this is not necessarily the case, according to Dennis Cisterna, CRO of Investability Real Estate, Inc.

“High rents are not necessarily driving people to homeownership,” Cisterna said. “While rents are increasing in markets like San Francisco, New York and Miami, the initial down payment to become a homeowner can be cost-prohibitive in areas where home values are high. It’s a delicate balance. You may have the right monthly income to be able to pay high rent, but you don’t have the cash on hand to make a down payment on a home in those markets.”

“High rents are not necessarily driving people to homeownership.”

Dennis Cisterna, CRO, Investability Real Estate, Inc.

The rising cost of rent has not caused the demand for single-family rental homes to shrink, according to Cisterna.

“It’s no secret that the single-family rental market has experienced serious growth over the past decade, and while we will probably see a stabilizing of the market, there is still strong demand,” Cisterna said. “Today, it’s not about diversification so much as it is about evolving and innovating to improve the investor experience through technology, market intelligence and services.”

Does the high cost of rents mean good news or bad news for investors in these markets?

“It really depends on the objectives of the investor,” Cisterna said. “Most cities with high rents also have high home prices, so while your annual cash flow may be low, the investor balances out the opportunity with an asset that is appreciating over time. That being said, investors should be cautious when investing in a property based on potential appreciation. The proposition of appreciation, regardless of the likelihood, is speculative in nature and carries with it a lesser degree of certainty than a property with strong in-place cash flow. Experienced investors practice identifying properties in stable markets with consistent demand. Variables like schools, crime, and local economies are big factors that impact property demand, values and rents—and can therefore indicate how an investor will bode in specific markets. Market data and property analysis tools have improved dramatically over the past several years, giving buyers better insight and transparency into their purchases.”

Source: dsnews.com

Should You Invest in Rental Property?

for-rent-signRental properties sound ideal at first: If you purchase a turnkey property, and then you get good tenants, acting as a landlord certainly can be an ideal way to make some extra money (especially if you buy in an ideal rental market). However, if you choose to take on a rental that requires a renovation, unexpected expenses can arise; plus, most landlords won’t have ideal tenants every time. There are many pros and cons to owning rental properties, and jumping right in can be tempting, but it can also be a disaster. Before you make a decision, it’s a good idea to look around for ideal properties, ask advice from other landlords, consider the financial implications of your decision, and determine whether you really have the time and energy to become a successful landlord. Here are the pros and cons to consider before purchasing a rental property.

The pros

Obviously, owning a rental property (or multiple properties) can add to your income. According to Money Magazine, the best ways to make more money on your rental properties include decreasing vacancy, minimizing turnover, using late fees, and adding additional services.

Becoming a landlord also gives you a chance to decide how involved you want to be in your job. If you are taking on rental properties as your full-time job, you may be confident that you can handle everything yourself. On the other hand, if you are hoping to keep working at a separate full-time job, you might prefer to hire a property manager, or at least use contractors for issues that are time consuming. The good thing about owning rental properties is that you can definitely determine how much you want to work, and that isn’t a possibility at many jobs.

Rental properties can also give you peace of mind as you grow older. If you purchase rental property, and you hold on to them for many years, you can later sell them and make money later due to home appreciation. You can also benefit from tax benefits.

The cons

Owning rental properties isn’t always a smart financial idea. Finding tenants often requires more than simply putting up a sign on the lawn; especially if you live in an oversaturated rental area, you may have to spend a great deal of time and money on advertising. In order to attract the best tenants and have a wide pool of applicants, you may need to pay for newspaper, magazine, or even social media advertising.

In addition, you will want to carefully screen potential tenants (you will want to besure to ask for their social security number, employment, income and credit history, references, and past evictions), and if you end up with a bad tenant you could face bounced checks, lack of income, and damage repair. If you can’t find a tenant or the property has to be repaired over a significant amount of time, you will also lose money. You also may face legal ramifications.

Owning rental properties can also require a lot of time. You can delegate some or all of the responsibilities, but you will have to pay someone else to do it (which means loss of rental income). At the minimum, if you choose to do everything by yourself, you will need to attract tenants, fill out paperwork, fix problems, perform regular maintenance, and handle phone calls and rental fees; these things alone can take a good deal of time.

Decision time

Should you invest in or purchase income property? Consider your stage of life before you do. If you are extremely busy, rental property ownership won’t necessarily be the best idea for you unless you are willing to hire help. Also, you will need to take out a loan unless you have a lot of extra money lying around, so you also need to consider your credit standing.

Your personality and abilities should also be considered: Some people would enjoy the social aspects of being a landlord, but others would not be able to go after tenants who owe money or need to be evicted. According to Landlord Station, a good landlord will keep good relationships with tenants, complete repairs quickly, maintain the property and keep renters safe, and keep the grounds clean. If you think you can do these things, then investing in a rental property might be the right choice for you.

Source: cheatsheet.com

– See more at: http://www.american-apartment-owners-association.org/property-management/real-estate-investing/invest-rental-property/#sthash.hgVVk5gb.dpuf

Apartment Complex’s Demand That Tenants ‘Like’ It On Facebook Backfires

facebook-like-social-mediaA Utah apartment complex that ordered its tenants to “like” the property on Facebook is now backpedaling as the Internet lashes out against the bizarre requirement.

Tenants at City Park Apartments in Salt Lake City spoke out against the policy after finding a “Facebook addendum” taped to their doors last Thursday. Those who did not “like” the complex within five days of signing their lease would be found in breach of the agreement, KSL News reports.

Residents also had to let City Park Apartments post pictures of them and their guests on its Facebook page, and were forbidden from posting any negative comments about the complex on any public forum or page.

“I don’t want to be forced to be someone’s friend and be threatened to break my lease because of that,” tenant Jason Ring told KSL News. “It’s outrageous as far as I’m concerned.”

While residents were predictably angered, so were many social media commenters. Since issuing the addendum, City Park Apartments has racked up overwhelming negative reviews on Yelp — where it currently boasts a one-star rating — as well as on ApartmentRatings.com. An unofficial Facebook page for the complex also shows a 1.1-star rating. Some Facebook and Yelp users are going so far as to call the policy fascist.

A tenant lawyer who spoke to KSL News said the addendum was likely illegal because it potentially discriminated against the elderly, the poor and people who simply choose not to have a Facebook account.

The controversial addendum was intended to “provide some protection to [the apartment complex’s] residents and its owners from usage of photos on its Facebook page from all community events,” the Law Offices of Kirk A. Cullimore, representing City Park Apartments, told The Huffington Post in a statement on Tuesday.

The addendum that appeared on residents’ doors “went beyond” what the complex intended and was not carefully reviewed before its release, the firm stated.

“At no time was any resident in jeopardy of eviction or action from City Park for failure to sign the addendum or ‘friend’ City Park Apartments. City Park has not implemented the addendum nor is it requiring its residents to execute it,” the statement continued.

The complex also sent a letter to tenants on Tuesday to clarify that the addendum “went beyond the original intent,” according to a copy obtained by HuffPost. City Park Community Manager Ana Raphael signed the letter.

“While we openly encourage residents to follow the property Facebook page for announcements and feedback, this is not mandatory and an absence of engagement on Facebook in no way affects any residential lease agreement,” the letter stated.

Source: huffingtonpost.com

What is the Value of a Single Lease Renewal?

Whether you operate a shoe shine stand or a multifamily property your business is built on renewals, or re-occurring income from existing customers.  In multifamily, a high percentage renewal rate makes for a much more predictable income stream.

The value of a lease renewal can be quantified.  Granted, while different for each property, the amount is one that has a direct impact on asset value, particularly when multiplied by their effect on year-over-year Net Operating Income.

Lower turnover, higher profitability

Focusing on renewals has significant downstream impact on operations.  Each renewal equals one less turnover (make-ready) making the math pretty easy.  Use the following math to calculate savings from increases in renewals.

  • A) What is the average costs of a single make-ready?
  • B) What is the average costs of gaining one renewal?

Cost of A minus the cost of B equals direct savings from eliminating a single turnover.

Now let’s apply this to a 100 units development that is experiencing 50% turnover versus the same development with 25% turnover.

If the average costs of  each turnover is $650, then fifty turnovers per years cost $32,500.  Reducing turnover from to 25% from 50% saves $16,250.  Thus, expenditures to secure renewals in any amount less than $16,250 generates real savings.

But wait! There’s More!

This is just the initial, easy-to-calculate savings.  The “real” savings comes from the reduction in days vacant.  Each renewal removes turnover expenditures and days vacant for that particular unit.

In our example from above, with turnover reduced to 25% from 50%, assuming that days vacant were 15 days with rents at $900, then the revenue generated from avoiding these days vacate equates to $11,250 (25 units each vacant for two weeks).

Additional costs savings from increases in the renewal rate show up in the form of make-ready overrun cost avoided, the potential necessity of flooring and fixture replacements and appliances.

The next layer of savings comes in the form of management administrative time.  Maybe a little more difficult to quantify, but a costs all the same.  This includes leasing and make-ready oversight, for example.

Consider the impact on value for properties under your control.  What is increase in property value derived from one additional dollar to net income?  Now multiply that times $50,000 or $100,000.

Source: multifamilybiz.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