Ah, the holidays...carolers singing the landlord blues, cash registers ringing everywhere but your Quicken account, tenants skating on thin ice and free sleigh rides for everyone!
Local news troubleshooters love to broadcast a woeful Cratchit family being evicted on Christmas Eve and portraying the landlord as Ebenezer. No matter that rent was due 24 days prior, Scrooge won't win the sympathy vote here.
This is the time of year when tenants of all income levels seem to be forgetful on paying rent (maybe it's the eggnog). Be prepared to hear every reason possible and keep your business hat on, no matter how frosty the wind blows. Business is business as Scrooge aptly stated.
If you choose to waive late fees, it's up to you. Just remember this, they will expect it next time too. Do I sound cold to you? I assure you, I'm not. If the heat conks out in the dead of winter, I will send someone out ASAP, even if they are late on rent. I expect the same courtesy in return, in the form of on time rent. Now there's a Christmas present all my tenants could gladly give their landlords this year!
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Tuesday, November 27, 2012
Friday, November 2, 2012
Move Outs, Move Ins
Last and first week of every month are crazy time in the wacky world of property management. How to make that time run a bit smoother? Make sure to fill out a detailed walkthrough with your tenant (have them sign it) at move in. Note all carpet stains, tile chips, non-working items, condition of the property and take pictures. Don't forget to snap pictures of the yards and pool if tenant will be in charge of that maintenance. I just got a home in central Scottsdale back, and tenant killed off the backyard grass. Didn't bother to water it for two years! What to do when that happens? Get an estimate from a yard guy on how much to replant grass and remember to estimate water expense in bringing yard back to life. Those expenses can all be deducted from tenant's security deposit.
A detailed walkthrough at move in will make your move out much easier. Also, note down on that first walkthrough how many house, mailbox and pool keys along with garage door openers were issued to tenant. This is usually where your tenant has a short memory and swears you only gave them one house key. If they do not hand you the same amount of all keys at move out, they can be charged for the locksmith bill and all related expenses. At move out, whip out your initial walkthrough as a guide and again, get their wet signatures at the final walkthrough as well.
If you are a newbie in this field, you might be shocked or even astonished at what condition some properties will be handed back to you. As for me, NOTHING surprises me anymore. Even the one I got back that looked as if a heavy metal band high on meth had taken a sledgehammer to the walls, and a herd of bulls had stomped its way through the carpet. The tenant had the gall to ask if he was getting his security deposit back. I won't post pictures to protect the stupid.
Written and precise walkthroughs will be useful in landlord/tenant disputes, it is an essential risk management tool for your landlord toolbox.
A detailed walkthrough at move in will make your move out much easier. Also, note down on that first walkthrough how many house, mailbox and pool keys along with garage door openers were issued to tenant. This is usually where your tenant has a short memory and swears you only gave them one house key. If they do not hand you the same amount of all keys at move out, they can be charged for the locksmith bill and all related expenses. At move out, whip out your initial walkthrough as a guide and again, get their wet signatures at the final walkthrough as well.
If you are a newbie in this field, you might be shocked or even astonished at what condition some properties will be handed back to you. As for me, NOTHING surprises me anymore. Even the one I got back that looked as if a heavy metal band high on meth had taken a sledgehammer to the walls, and a herd of bulls had stomped its way through the carpet. The tenant had the gall to ask if he was getting his security deposit back. I won't post pictures to protect the stupid.
Written and precise walkthroughs will be useful in landlord/tenant disputes, it is an essential risk management tool for your landlord toolbox.
Tuesday, October 16, 2012
No Really, I Mailed Rent Days Ago...
As the old adage goes, if I had a nickel (although it would be $1 now, with inflation and all) for every time I've heard that line. When I was new and relatively green at this property manager gig, I would listen to the tenant's late rent excuse and many times, relent on adding on late fees. But, as anyone in this brutal business knows, you give them an inch they take a yard.
So no more Mr. Nice OK If You Are Late Landlord, I issue 5-day late notices promptly certified on the 5th day rent is not received and late charges included or rent won't be accepted. Once in a blue moon, envelopes arrive postmarked by the 1st, but somehow were not delivered till days later. It happens, but usually the postmark is after the 1st and that is late. Tenants will pay their cable bill before they will pay their rent nowadays. Priorities, I suppose.
In the 20 years I've been a landlord, there have been few evictions, thank goodness. I owe it all to my go to landlord/tenant attorney, Andrew Hull. His website is loaded with absolutely vital information if you plan on managing your own Phoenix rental. But again, for the measly amount we charge, why oh why would you want the headache??
So no more Mr. Nice OK If You Are Late Landlord, I issue 5-day late notices promptly certified on the 5th day rent is not received and late charges included or rent won't be accepted. Once in a blue moon, envelopes arrive postmarked by the 1st, but somehow were not delivered till days later. It happens, but usually the postmark is after the 1st and that is late. Tenants will pay their cable bill before they will pay their rent nowadays. Priorities, I suppose.
In the 20 years I've been a landlord, there have been few evictions, thank goodness. I owe it all to my go to landlord/tenant attorney, Andrew Hull. His website is loaded with absolutely vital information if you plan on managing your own Phoenix rental. But again, for the measly amount we charge, why oh why would you want the headache??
Tuesday, October 9, 2012
The Absolute One Thing Rental Investors Need To Know
Ok, there is definitely more than one, but at the top of the list is... hire a professional property manager. For the measly amount of money we charge you per month, you avoid all of the following: no phone calls on your vacation from high-strung tenants about a stove burner being out; the tedious job of hunting down late rent; the joy of screening potential renters, which inevitably includes listening to the "story" as to why their credit stinks (there is ALWAYS a story); fielding calls from the tenants neighbors who, having nothing better to do with their time, complain about a leaf straying into their yard; HOA complaints, enough said there; coordinating, arranging and checking contractors for repairs done, and the list goes on. All you need to do is cash your monthly check when you hire a professional property manager and soak in the Caribbean sun on that vacation.
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