What Can I Expect From a Good Property Manager?
Finding a renter in Boise is easier than you think. Many property owners try to do their own management and I do not recommend that. From my own personal experience, each time I have directly managed a property that I owned, I was taken advantage of by the tenants. A good property manager does several things to protect the property owner from being taken advantage of, and is something you should consider for the following reasons.
A good property manager will screen prospective renters and filter them according to rent history, background history and credit score. Keep in mind that each of those reports will cost money but may be worth it when placing someone in a real estate investment you own. The reason that the property manager will look into the rent history of the renter is to establish a consistent record of payment of rent, and maintaining the property. If a renter doesn’t maintain the lawn or keep the house up as they should, that is important information for a property owner to have. The background history of an applicant is important because if they have a history of vandalism or some kinds of violent crime, the property owner has the right to decline their application. The credit score comes into play just as a character validation. If the applicant has the history of keeping up their bills their credit report will indicate that.
Floor Mats – Why Renting Floor Mats is Like Flushing Money Down the Commode For Most Businesses
Did you know that to rent a 4′ x 6′ floor mat costs about $5.00 per week or about $260.00 annually. Most floor mat rental companies require a three year contract to lease their mats. Under this scenario the cost over a three year contract can be well over $700.00. The unfortunate fact is that most companies that lease or rent their floor mats use more than one mat, so the financial impact is usually much greater. Add the following fees and the real expense for floor mats starts to snowball:
- Bogus “delivery fees” (Seriously, if I pick the mat up will these be waived?)
- Cleaning charges (If they don’t clean the floor mats, will these also be waived? What am I paying for?)
- Fuel surcharges (Again, will these charges be waived if I decline delivery and cleaning?)
- Environmental Charges (What’s this for – global warming?)
When faced with the option of either purchasing or renting your floor mats the following question is often posed, “Who will clean the mats if I purchase them?” I would hazard a guess that regardless of whether one buys his entrance mats outright or chooses to enlist the services of a mat rental company, that the end user will still be tasked with periodically cleaning the mats.
Tenant Selection – Process Or Skill?
Investors spend hundreds and even thousand on “motivation” and education for real estate purchases. Hours with agents combing property profiles, data and formulations for ROI. Weeks even months evaluating “deals”. And in the climate of today, upwards of 45 days in escrow if using traditional financing methods. Yet when it comes to tenant selection it is a few questions and a “how fast can I get a tenant” approach. I’m in the business of minimizing vacancy so I recognize and understand the mentality.
Most don’t realize tenant selection and screening as a skill or art. By making the right selection initially it can make everything that happens from that point forward much easier to deal with. Most problems with the tenant actually began prior to giving them the keys because they handle the presentation and viewing wrong.
You must first eliminate and then investigate. With the initial phone call don’t just jump the gun on getting them inside the property. Ask questions based on needs, desires and direction. Identify the motivation for moving, selection of property and area. So unless they lie on the phone or leave “something” out, you can attempt to eliminate and then investigate. During the initial elimination period you can ask questions [with the proper approach] about income, credit, evictions and convictions.
Basement Apartments For Rent – What Owners Should Know Before Renting
Basement apartments are a great way for renters to gain cheep, affordable space in very hip urban cities like Boston and New York City. Renting basement areas out is a great way for owners and landlords to make storage space usable with a simple basement-refinishing project. With the rise of these “basement conversion” apartments, cities and towns are now enforcing laws regarding habitable space, and basement-waterproofing companies are urging them to listen.
An apartment in an exciting urban area is great to have, but if the apartment you’re buying was constructed prematurely and not brought up to code, your apartment can be a very unsafe place for you and your family.
When you have your basement inspected before finishing make sure that you have enough head height to accommodate refinishing in the first place. A full head height basement ranges (by state) between 7′-9′. If you install a drop ceiling or a rigid board ceiling, your “after head height” has to allow for access to pipes and still allow for a person to stand with no obstructions. Each town has different ordinances so check with your local building inspectors before starting construction.
Problem Tenants – Just Say No!
Problem tenants can be a Landlords worst nightmare. Some characteristics of problem tenants are destroying your property, not paying rent, and even suing you. So, people who invest in rental property want to avoid problem tenants like the plague.
Pre-screening renters is a good way to avoid problem tenants. As a Landlord, the first interaction you have with a perspective tenant is usually on the phone. Once you make the initial contact with your potential renter, you should have a list of questions ready to determine if you move on to the next step or not. Some questions you should ask would be rental history, income, employment history, credit history, and if they have any pets or children. Most potential tenants will be happy to answer your questions, but be leary of people who seem reluctant to answer. Also, be cautious of people who complain about the property managers at their current residence.
After you pre-screen your tenants; you would then move on to the rental application, as long as you were satisfied with the potential renters previous answers. In order to fill out the paperwork, you should have the applicant physically come in to pick it up. Read more