BiggerPockets

Landlords Beware When Renting!

Wednesday, November 16

 

What items Tenants Damages in an Apartment?

 

Here are few things to watch out when renting your apartments

Dishwashers--they use the dial to run them through their cycle. This will strip the timing mechanism. Dishwashers should be allowed to run through their cycles fully, not set to rinse again or dry again. Since a dishwasher should last between five and twelve years, if the control knob breaks before that, it is above and beyond ordinary wear and tear.

Water heaters--do not wrap them in an insulating blanket, no matter what the environmentalists claim. Doing so voids their warranties and the Underwriter's Laboratory certification. The insulating blanket makes them too hot and can overheat the wiring. If a tenant wraps a water heater, thinking they are saving energy, and the water heater goes out, that is beyond ordinary wear and tear. Tenants will sometimes drain an electric water heater without turning the electricity off. That will burn out the elements.

Water heaters last from eight to twelve years. Burnt out wiring or elements are beyond ordinary wear and tear.

Ranges--gas ranges will last indefinitely. About the only thing a tenant can do to damage one is break a knob, and it happens. But accidents happen, and it is probably ordinary wear and tear.

Electric ranges, on the other hand, do not last as long, about 15-20 years. Tenants will remove elements to clean and not put them back in properly, shorting out either the element or the entire wiring on the stove.

Furnaces--It is important to change the furnace filter once a month. Leave a dirty filter in and risk ruining the fan motor. If necessary, get the tenant a supply of filters with the instruction to change it the first of every month, whether he thinks it needs it or not.

Storm doors--tenants remove the wind spring and the door flies open, breaking the glass, springing the hinges, or whatever. With no mistreatment, storm doors will last until they are too ugly to leave up. If a tenant breaks one, it is above and beyond ordinary wear and tear.

Driveways--Concrete is damaged by something known as "point loading." That happens when a heavy vehicle is parked on the same spot for a long period of time or over and over. Eventually that weakens the concrete in that spot and it cracks. The cracks radiate out from the spot of the point load. If your tenant has a heavy vehicle,, ask that he park it in different places on the driveway. Point load damage could be considered above and beyond ordinary wear and tear.

Cabinets--most tenants will not pick up a screwdriver and tighten a screw that is coming loose. Many don't know what a screwdriver is. Then, when the door comes loose from one hinge, they will let it hang from the other one. Cabinets should last for 20 to 30 years. If they are damaged from tenant neglect such as that, it is above and beyond ordinary wear and tear. It doesn't cost a tenant anything to tighten a screw. At the same time, though, a periodic inspection would probably have discovered a loose cabinet door.

Floors, hardwood, tile, vinyl--You know what the life expectancy is when you buy the flooring, and it varies by quality. If you buy cheap vinyl, and a tenant's high heel pokes a hole in it, you got what you paid for. But if a tenant drags something sharp across the floor and scratches or cuts the flooring, that is above and beyond ordinary wear and tear.

Doors (hinged)--tenants have been compared to teenagers: if something doesn't work the first time, force it. Things get caught in doors, such as broom handles on the hinge side of the door, and then the door gets sprung. Screw holes are stripped and hinges get bent. Doors last indefinitely, if used properly. Damage to them is above and beyond ordinary wear and tear.

Doors (sliding)--These come off their tracks, and despite the fact that it is easy and costs nothing, tenants don't put them back on their tracks. Then they come loose and get banged around, damaging the tracks so they have to be replaced. Take the cost of damage out of the security deposit.

You can't be there all the time to watch to see that a tenant doesn't do anything stupid or destructive. Previous landlords can often give you some insight on how well a tenant took care of a property. Some tenants are simply unconscious: they don't mean to do any harm, they just have no way to connect what they have done with the damage. One of the mysteries of life.

Deciding whether damage is beyond ordinary wear and tear often boils down to a landlord basic, deciding if something was used in a way it wasn't designed for. If it wasn't, it is damage which should be paid by the tenant.

For more information, visit www.delvalproperty.com

About the Author:

 

Mike Lautensack is the owner of full service Residential Property Management company based in and around Philadelphia, PA. He advises real estate investors how to build wealth and financial security through hassle-free ownership of investment real estate with their “No-Hassle Property Management Program.” This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation while it GUARANTEES you will never receive a late night emergency call, deal with a lengthy eviction proceeding or ever have to interact with an irate tenant.

Property Management Agreements for RENTAL OWNERS!

Thursday, October 27

 

What to Look for in Property Management Agreements

Too many agreements are written so all the management company is supposed to do is send the right amount of money.

Every so often I get calls and email from landlords who have had trouble with a property management, a company that manages property for several rental property owners, not the on-site variety of manager (though I get calls about them, too). Usually the complaints have to do with the property management company not having done the job the landlord was led to believe it would do.

 

I have responded to complaints such as, "he never checked references, he just rented to anybody," or "he let the tenants get away with murder,". After the landlord has started having these problems he or she reads the management agreement and finds out that, contrary to what he or she was led to believe, the management company is not responsible for anything. Too many agreements are written so all the management company is supposed to do is send the right amount of money, and that's only because it will get into trouble with the real estate agency of the state if it doesn't.

 

 

 

4 Ways to Raise Private Money For Real Estate Investors

Saturday, October 01

Now that the mortgage market for buying investment real estate is all but dead - investors need to have other sources available or go out business. Fannie and Freddie will no longer be available for investor mortgages, traditional banks and saving and loans will not touch investors loans for many years to come and hard money lenders, when available, can have total cost over 25%.

The answer is private money raised from people, not banks, through a process called private lending. Here are the four top ways to attract and develop your group of private lenders.

Private Lending Group Presentations

A private lending presentation involves getting 5 to 20 people into a room and doing a group presentation where you lay out the details and benefits of your private lending program. This may not be for everyone depending on your comfort level of talking in front of a group of people. But there is big advantage of doing group meetings. When people start to ask questions and tell positive stories a certain level of group think starts to take effect and can be very powerful on the attendees.

One-on-One Meetings

If you are not comfortable with group meetings - one-on-one meetings are a great alternative. I generally recommend a breakfast meeting in a quiet restaurant where you can have 15 to 45 minutes of time with your prospect. Like the group meeting you need to lay out your private lending program's details and benefits.

Out of Town Prospects - Creditability Kit

If the potential prospect is out of town you will need a good creditability kit you can send in the mail. It is very important to follow up two or three days after you send the package to see if they have any questions. Even if they do not participate right away, keep in contact and they may invest some time down the road after a number of follow up contacts.

Existing Private Lenders

If you already have a private lender, or lenders, be sure to keep asking them if they would like to participate in more deals. You will be shocked that most investor only give a very small investment to start and wait to see how things turn out before giving you more money. So keep asking and do what you say you are going to do they will develop a better relationship and trust level with you. As the relationship grows they will invest larger and larger sums to grow your real estate investing business.

And I invite you to learn more about Private Lending and get FREE instant access to a 60 minute audio and 20-page eBook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by going to http://www.learnrealestateinvestingblog.com/

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Kit

3 Helpful Tips for Renting Out Your Home

Monday, September 12

 

Home ownership has always been a part of the American dream, but that dream may be changing. In 2011 more and more potential home buyers believe that renting is the better option.

An online survey done by the National Apartment Association, 76 percent of consumers think that renting is preferable to owning a home in today’s market.

What I have seen is that some homeowners believe it’s better to rent out their home than to sell it for less than its worth, if they can sell it all. Those considering renting out their home should not make a quick decision without speaking to professionals. If you decided not to speak with a professional you could find your self in a bad first-time landlord situation. Del Val Realty and Property Management., a company that provides tenant screening services to property owners, and a “No Hassle” full service property management serving Philadelphia and Western Suburbs.

Here are a few good tips.

Tip #1. Look at the numbers. Renting might be the best option. Leaving your home vacant can cost you money each month. Consider all potential costs, including property taxes, income taxes, homeowners insurance and maintenance inside and outside of the home. Renting your property will help take care some of these expenses ; you will have to put a portion of it back into the property.

Tip #2. Find quality tenants. Nightmare tenants can be, well, a nightmare. Prepare for a careful screening process. Many private landlords can’t access the quality screening products available to larger businesses without going through a lengthy certification process. Some Large property management compaines will take of just the tenant screening process and getting your property rented to the right tenant.

Tip #3 Use a comprehensive lease. Whether you use a template or hire an attorney to write your lease, make sure that the lease clearly states your expectations. The lease should state who is responsible for what, when you expect rent to be paid and what penalties you will impose if it is late.
For more information, visit www.delvalproperty.com

 

Very Lucrative way to invest in Real Estate!

Thursday, September 01

3 Ways- 2 Sell your house fast!

Thursday, August 25

 

In 2011 has been a buyer market and many homes stayed on the market and was harder to sell at full market value. No matter how bad the economy is you can sell your home!

 

Here are a few Tips on how to boost your chances of selling your home!

 

Tip #1. Work with a qualified Realtor: A good realtor that have sold home in your area will go the extra mile to line up potential buyer's for your home. Additionally, a qualified Realtor will have the insight on local prices and financing options. Taking advantage of the pricing insight can save months of useless showings and time in general. The specific knowledge of financing options may allow a buyer who does not qualify to get a new financial source to get the deal completed.

 

Tip #2. Clear the clutter: Taking the time to pack up your belongings and furniture and put them into storage will make the world of difference to a Potential buyer. A buyer like to see how their furniture will look in the space and giving them the opportunity to do so will help sell. Other ways is to update kitchen and bathrooms will add value and get you close to the price your asking for.

 

 

Tip # 3. Sell for less: List your home 10-15% lower than other houses on the market in your area. You will see the results right away many buyer's are looking for a bargain and if you list your home at great price you will have plenty of potential buyer's.