Your best defense from a bad tenant IS….

Do you know the ONE thing that can be your best defense from a bad tenant? While you can prescreen, call references, order a complete background check, and verify employment, unfortunately bad renters can still slip through the cracks. Then, what?

Having an ironclad lease is truly your best defense against a lousy renter. If there is any room for interpretation within your agreement, then your tenant will give you quite a battle, and the eviction could get expensive. However, having all the rules outlined clearly in black and white will give you a stronger leg to stand on if it comes time to evict.

Make sure the restrictions as they pertain to pets, smoking, subletting etc., are made very clear, as well as the consequences for violating the terms. Also, all of your dates, deposits, and fees must be spelled out so there is no questions what your expectations will be.

Hopefully you won’t have to enforce the negative aspects of your contract, but a good landlord can never be too prepared.

Download a free sample lease and customize it for all of your rental needs.

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4-1-1 on Radon Testing

Landlords in Maine are scrambling to comply with a new law that requires radon testing in all residential rental buildings. The deadline was March 1, and while many are doing what they can to avoid being fined $250 per violation.

 

So, what is radon?  It’s a colorless, odorless, radioactive gas that forms from the decay of  radioactive elements such as uranium, which can be found in soil and rock. Radon can transmit from the ground to air and water. It can be found outdoors in low levels, but in homes, dwellings or well water it can spike at dangerously high levels.

 

Long term exposure to radon can cause cancer. You can buy home testing kits to test the levels on your property, or you can hire a professional. The Environmental Protection Agency (EPA) recommends that all buildings be tested below the third floor for radon detection.

 

Landlords can address problems with radon in rentals in several ways. First, you can provide good ventilation with open windows and fans to disperse the gas.  Also, proper sealing of the foundation and lower levels will help to keep the gas from seeping from the soil into the dwelling. A radon contractor would be the best source of knowledge for your particular region and structure.

 

The EPA also has more information for tenants on their website.  You can also find a radon contractor in your area here.

 

For this and more information on maximizing the profitability of your rental, please visit our website at http://www.alwaysscreen.com.

Top 5 Tenant Excuses

You think you’ve heard them all before, but then your tenant drops another crazy one. What are some of the worse excuses you’ve ever been given by tenants?

 

1. “But, it’s Christmas!”  Has there ever been a more frustrating excuse for not paying rent than the holidays? Some tenants actually think their “obligation” to buy presents outweighs their lease obligation to pay rent.

 

2. “That dog you see/hear on the property is not ours, therefore shouldn’t require us to pay a pet deposit or be evicted.” It doesn’t matter to whom the animal belongs to. If your lease prohibits pets, or requires an added security deposit than that is the rule governing the property.

 

3. “I smoke marijuana for medical reasons.” Anyone claiming this better have a really authentic doctor’s note. Also, it is still your right to include a smoking ban of ANY kind in your lease.

 

4. “My job won’t pay me.” This is why employment verification is so important. If someone has a legitimate job, they should be getting legitimately paid. Do your part to make sure you are renting to individuals who will not make excuses for late payments due to sketchy employment situations.

 

5.  “But my last landlord let me paint.” Again, if you don’t want tenants to do certain things then make sure your lease indicates just that. Be very clear on what is and isn’t allowed in your rental.

 

For this and more information about screening tenants, please visit our website at http://www.alwaysscreen.com.

Gold Medal Landlords

In honor of the Sochi Winter Olympics, ATS Inc. would like to recognize these landlords for their Gold Medal performance in the industry!

 

Bronze Medal: Shorenstein Building Management Company

 

In 2010, Shorenstein sought to reduce operating costs through energy efficiency measures. How did they do it? By implementing several programs to raise consumption awareness among tenants. Some tactics included turning down lights during non-peak business hours and flipping off key building functions on Saturday’s.  The company was able to trim $1.7 million off of their expenses for the year, and they also curbed their carbon monoxide emissions by 4,800 metric tons annually.

  

Silver Medal: Preservation Development Partners

This company recently purchased an affordable housing complex in the Bronx, and plans to keep the units accessible to low-income residents for at least another twenty years.

The building is houses 252 units, which will remain at a reduced-rate of 30% of residents income. The new owners are planning to spend about $35,000 per unit in renovation costs, and are now being praised for having the “tenants best interests at heart.”
 

Gold Medal: Willow Tufano

At the tender age of 14 Willow became a landlord in Florida.

Willow now owns two properties at the age of 16, and was recently featured in a film that promotes alternatives to public schools. Kudos to Willow on being one amazing real estate investor!

 

For this and more great landlord stories, and to get the fast, reliable tenant screening reports, please visit our website at http://www.alwaysscreen.com.

Landlords: Get Stranded on a Deserted Island

Pretend you are a landlord and want to disappear for a while on a deserted island. What things could you not live without? Assuming of course this island has wi-fi or a cell phone tower here’s our suggestions of what to take with you:

 

·         Your smart phone: Manage all of your online transactions (rent deposits, payments to vendors) from your phone.

·         Contact list that includes:

1.      Insurance provider information

2.      Repair and maintenance service contact information

3.      Tenants contact info and rental property addresses

4.      Local police and fire within proximity of your rental properties

·         Designate least one person back on dry land who knows the location of your lease agreements and other legal documents

·         Sunscreen

Who wouldn't want to be stranded on a deserted island?

 What items would you need to take with you before escaping to a (Semi)-deserted island?

 For this and more advice for landlords, please visit our website http://www.atshome.com

How to: selling property with tenants

Home values are improving in many areas around the US and perhaps you are now considering trying to sell while things are on the upswing. The only problem is, you have tenants and want to list while they are still living there because you can’t afford to keep your property vacant for months before a sale.

 

The good news is, it can be done.  Just make sure you follow a few bits of advice so selling your property can go as smoothly as possible for you, your tenants, and potential buyers.

 

The first step is knowing the laws for your jurisdiction, as they are different everywhere. How many days must you inform tenant of the home being put up for sale? Does the tenant have a right to refusal during their lease term?

 

Assuming you’ve done your homework, then know that having open communication with the tenants should always yield positive results. For example, make sure you give them at least 24 hours notice before a showing.  You don’t want to be in violation of your lease in the haste of wanting  a sale. Also, if the tenant isn’t prepared for a showing then it’s likely the property will not be shown in its best light. That will leave both potential buyers and your current tenants with a bad taste in their mouth.

 

For this and more information about selling a rental property with tenants, please visit our website at http://www.alwaysscreen.com

Landlording by the #’s

Here are some interesting numbers and statistics about landlording in the United States:

 

·         Rented single-family homes are on the rise in the wake of the housing bust. Thirty-two of this country’s top metropolitan regions 1/5 of all occupied single-family homes are rentals (USA Today)

 

·         29% of single-family homes in Las Vegas are now occupied by tenants (USA Today).

 

·         Landlord insurance typically costs 25% more than homeowners insurance. (Houselogic.com)

 

·         Expect annual repair and maintenance costs to run about 1% of your property’s value every year. So, if your home is worth $100,000, you will probably spend at least $1000 in repair and maintenance. (MSN Money)

 

·         If your state does not have a law regulating late rent fees, know that a good average is 5% added on to the amount owed. (NOLO.com)

 

·         32% of homes in the United States are renter-occupied (National Multi Housing Council)

 

  

 

For this and more information for landlords, visit our website at http://www.alwaysscreen.com

How Paint Color Affects Mood

Whether or not you decide to let tenants paint the interior is your decision. However, should you be so bold as to forego the standard neutral tones in favor walls with color, keep in mind that your decision could impact the mood of your renters.

Some psychologists believe that color changes the chemicals in our brains, which directly correlates to our brain energy and level of excitement. For example, it is believed seeing the color red can increase heart rate and make us more alert. Perhaps it’s not the best color to use in bedrooms where one goes to relax.



 

Orange is considered to be warm and joyful color. It reminds us of the sun and ripe fruit, and therefore would be best suited for gathering rooms such as a living room or kitchen areas. Your prospective tenants might be turned off to too bold of a color in bathroom or bedroom areas.

A blue bedroom can create a calming effect for tenants

Blue is considered the most relaxing of colors. It should be used in rooms where one wants to feel calm and centered, such as bedrooms, bathrooms, or a personal office space.  Green is on the same spectrum of blue, and is also considered to make us feel serene and refreshed. Keep in mind that you can add green to a room not just by painting, but by adding plants or having a window that looks out to a lush lawn or trees.

For this an other tips on decorating your rental property, please visit our website at http://www.alwaysscreen.com.

Landlords to get automatic police updates

The Illinois town of Rockford is about to launch a new landlord registry that will alert property owners of any 911 dispatches made to their rental. The Rockford Apartment agency said they hope the new system will help “bring stability” to neighborhoods, and help landlords to make better-informed decisions about the tenants residing in their rental properties.

In order to register for the alerts, landlords will have to submit their contact information and addresses of their rental units. Those who do not comply could face fines by the city.

 

The way it works is once emergency services are dispatched to a property, the police will update the database and send emails to landlords. Both residents and property managers are hopeful this service will aid them in better managing their tenants.

 

Landlords will know if the police are called to rentals

For this and more information about screening prospective tenants, please visit ATS Inc.’s website today!

Why your tenants are moving out (And how to get them to stay)

Retaining good tenants is a great way to save yourself a lot of money. If you have a mortgage on your rental property, pay for advertising , cleaning and painting services, then you know vacancies can get quite expensive.  You need to find out if losing a good tenant is worth several hundreds or thousands of dollars from your bottom line.

 

Save money by retaining tenants

 

1. If you have reliable tenants who give you 30 or 60 days notice without reason, follow-up with them in person to find out why they are moving, and determine if there’s something you can do to change their mind.

 

2. If they tell you the rental is too small, perhaps you own another property with more square footage that you can offer when it becomes available. Or, offer to provide a large, secure shed on the property. Better yet, offer to add more shelving to closets and garage areas.

 

3. If they tell you they want something “newer”, offer to put some money into those upgrades you’ve been avoiding.

 

4. If they tell you the rent is too high, perhaps weigh the pros and cons of lowering it. Offering a $20/month discount for one year might be enough incentive for them to reconsider. After all, moving is expensive and a lot of work. Your tenant might be inclined to stay put in order to save a couple hundred bucks, rather than shell out thousands on a deposit, movers, and setting up utilities. Plus, even if you lose $240 for a year, it still could be much more if you have a vacancy for 1-2 months.

 

For this and more landlord tools, visit ATS Inc.’s website today!

Poor tenants to get shown the back door

A New York real estate developer has unveiled plans to build a waterfront tower in the Upper West Side of Manhattan that will include both luxury condos and affordable rentals.  What makes this building unique is that the developer plans to include two separate entrances to the building – one for the wealthy and one for the lower-income tenants.

Officials speculate that the builder is looking to cash in on tax incentives by offering affordable housing, but they want to keep the lower-income tenants are kept separated from those with the big bucks.

Just how much will it cost to use the exclusive entrance to the building? Well, a neighboring building by the same developer sells 1-bedroom condos for $1,000 a square foot.

Poor tenants have to enter luxury buildings through the back

The Department of Housing Preservation and Development is still reviewing the plans, which some lawmakers are calling “a blatant attempt at segregation.”  

What do you think? Should separate building entrances for higher paying tenants be considered discrimination?  

For more information about property management services, or to get the best background check for your tenants, visit ATS Inc.’s website at http://www.alwaysscreen.com

Pros of renting to tenants with pets

In a competitive rental market, some real estate professionals might suggest you offer incentives such as free wifi, first months rent free, or a store gift card to qualified tenants just for signing a lease. Others say the solution could simpler: just allow pets.

While pets can be taboo for landlords because of the possibility they could damage your rental, they can also bring about some positive benefits to a property owner.

Let’s look at some of the Pros to allowing tenants to have pets:

·         Less vacancies

If you advertise your rental as “pet friendly,” chances are there will be greater interest in your property.  One study found that rentals allowing pets rented in 19 days, versus 29 days for non-pet-friendly units¹.   

·         More long-term rentals

The same study found that tenants with pets tended to rent for an average of 46 months, as opposed to non-pet-friendly units where the average tenant rented for 18 months.

·         More profit for landlords

Researchers also found that landlords who allow pets see more demand, and therefore can charge higher prices for monthly rent. How much higher? According to the survey, 20-30% higher rents.

Tenants allowed to have pets rent for twice as long as those who can’t

What is your stance on renting to a tenant with a pet? If you’ve had a positive experience, we want to hear about it. Comment below!

For more information about tenant screening, and other tools every new landlord or real estate investor needs, visit ATS Inc.’s website at http://www.alwaysscreen.com.

^{1 http://www.firepaw.org/CompanionAnimalRentersPetFriendly.pdf}

SF Landlords Sentenced to 4 Years In Jail

Last month, two married California landlords were sentenced to four years in jail after being convicted of several reckless acts aimed at evicting and scaring their tenants. The crimes took place over a two-year span, and led the couple to become dubbed, “Landlords from Hell.”

The district attorney in San Francisco said the landlords harassed their tenants by cutting off power and phone service, changing locks, and illegally removing and/or destroying their belongings. They even were charged with soaking the victims’ clothes and electronics in ammonia and using a chainsaw to cut a hole in the floor of one tenant’s unit. They also severed floor joists in hopes of making the building unsafe, and hoping it would ultimately it collapse under the tenants.

The duo also sent fraudulent emails pretending to be their victims. The emails were aimed at making it appear as though the tenants were threatening to kill the landlords’ children.

Authorities say the motive behind the attacks was all due to the landlords wanting to renovate the rental units and sell them off individually. However, California has strict laws regarding the harassment of tenants by landlords, and prohibits the eviction of tenants without just cause.

For more landlord tips or to get the best background check, visit ATS Inc’s website today!

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