Your tenant tells you that a boyfriend/girlfriend or spouse is moving in with them. Worse yet, they don’t tell you and you find out another way. Maybe it’s not a significant other, but a sibling, cousin or even a parent. What should you do?
1. Review Your Lease
You must act right away or the new person could end up with the rights of tenancy. First, read your lease to see what was specified about overnight guests. For those who haven’t had this situation, they may want to ... Read More
Your property has certain selling points, and some of them probably seem obvious to you, such as a dishwasher, a walk-in closet, and a big backyard. You might think it makes perfect sense to highlight these amenities. But are these really what your prospective tenants are after? Just because you, as the landlord or the property manager, think a given feature makes a unit stand out doesn't mean that's actually the case. Since you view the unit from your unique perspective, you might be mi ... Read More
Even well-behaved pets can scratch up floors and walls, and dogs and cats can leave behind fur, dander or worse that you have to clean up when the tenant moves. A pet deposit is like insurance for any damages the pet may cause if the landlord fears that the damage may surpass the amount covered by the security deposit. It can be paid as a small monthly amount on top of the normal rent or as a one-time deposit on move-in, like the security deposit.
However, you may want to take a different appro ... Read More
Many landlords and property management companies treat credit scores like they're a straightforward indication of the quality of a tenant, but this may not be the case. If you dig more deeply into a credit report and try to puzzle out the story it tells, you may find information that can mitigate the importance of unpaid bills, bankruptcies and so forth. But where do you go for the information that can help you figure out why a credit report looks the way it does?
You should ... Read More
Lease-signing incentives are common, especially in competitive rental markets. However, incentives shouldn't just be used to get tenants into your properties; they should also be used to keep them there. Tenant turnover can result in thousands of dollars in lost rent, marketing expenses and make-ready fees per month, according to Multi-Family Executive. Retaining good tenants is good business any way you look at it. Incentives that appeal to your tenants' personal tastes, wants and needs ... Read More
In an ideal world, your tenants get along without any problems. In reality, minor and major problems occur as a result of differing lifestyles, lack of communication, or inconsiderate behavior. Your tenants should handle most minor disputes among themselves, without requiring your input, as solving every issue that comes up between tenants could take a significant amount of your time. Some of your tenants may expect meditation with all of their disputes, though, and some situations require your ... Read More
When you want to expand your business and buy more rental properties, understanding current real estate trends is critical. Housing patterns can vary considerably from place to place and current events can change trends rapidly, but some general trends are at play that may be advantageous for your business.
Low Mortgage Rates
Mortgage rates in the United States have stayed low in 2015 and can be expected to do so in the future. The Fed has kept interest rates low because of precarious situ ... Read More
Smokers make up 16.8 percent of adults in the United States, according to the Centers for Disease Control. You broaden your potential renter pool if you allow smokers to rent from you, but you have to consider the long-term implications of having smokers in your rental property. Smokers are not a protected class under the Fair Housing Act, so you have complete control over whether these renters are allowed in your property without discrimination concerns.
Long-Term Property Concerns
When a ... Read More
Bad tenants are a fact of landlord life. You do what you can to minimize the risk of bad tenants through credit checks and screening services, but a great tenant on paper may be a nightmare to deal with in person. Tenants may threaten you for several reasons, such as attempting to avoid an eviction, stopping you from realizing they're breaking their lease clauses, and attempting to intimidate you. How you handle threats from tenants depends on the situation and the consequences for taking ac ... Read More
Competitive rental markets require you to go beyond a basic listing to get renters' attention. You need a way to make potential tenants feel like they're already living in your property before they step foot in it. Use online tools to help your listing stand out from the crowd, especially among more tech-savvy tenant pools such as millennials.
Floor Plan Creation
A floor plan lets potential tenants know how much space they have to work with in your property, the general room config ... Read More
As a landlord, you may have to deal with many tenants’ issues. You can’t possibly know every law that impacts your property and residents. At the same time, you don’t want to ask an attorney every time you have a question or concern. Because each state and even each city has its own laws, you need to know where to look when you require information.
Even when you're researching local information, you must know the federal and state laws regarding the matter since those will ... Read More
Living in a community means being considerate of those around you. As a landlord, you must ensure that your tenants maintain this basic courtesy for their neighbors. In return, you must deal with their complaints about others’ noise.
Start Out Right
The best way to deal with noise issues is before they happen. Include a section in your lease about noise and any rules or regulations to be followed. For instance, if there is a noise ordinance in your neighborhood, the lease must comply ... Read More
Your tenants have the right to the quiet enjoyment of their home without you telling them how to act, but there are some lifestyles that threaten the health and safety of your property. Tenants who are very messy or who suffer from a hoarding disorder create an environment where the rental unit is unhygienic, a fire hazard and at risk for major property damage. You often don't have the option of simply evicting tenants for these conditions, as that action may run afoul of the Fair Housing Ac ... Read More
Evictions are major red flags on your tenant's credit and background reports, but they don't always appear on these reports. Most rental applications ask tenants about previous evictions, but it's rare for a previously evicted tenant to admit this information willingly. An eviction on record makes it more difficult to receive a rental application approval, so many tenants avoid disclosing this information upfront. You rely on your tenant reports to tell you whether there has been a p ... Read More
When you're screening potential tenants, it can be difficult to figure out what factors you should take into account. It's tempting to ignore some huge red flags in the interest of having a wider range of tenants to choose from or to give someone who otherwise seems worthwhile a chance. What are the factors you should definitely be paying attention to during a tenant screening?
1. Bad Credit
Weeding out bad credit scores can dramatically shrink your pool of potential tenants, but c ... Read More
A tradeline is any item on a credit report, whether positive or negative. Negative tradelines indicate credit-harming behavior such as paying bills late or having debts in collection. When you're screening potential tenants, negative tradelines on a credit report are a bad thing, but some are worse than others.
What Goes on a Credit Report?
Many landlords only look at the FICO score when they're screening tenants, and that may be all you need. A FICO score is effectively an overvie ... Read More
Maybe your property has been badly damaged by clients or weather, or maybe there's been some general wear and tear on the property that's forcing you to take action. Whatever the case, you may find yourself unexpectedly in a position where you need to complete major repairs.
It can be difficult to know where to start, especially when tenants already occupy your property. Follow this advice to know how to carry out these repairs.
Make Plans for the Repairs
Going into your repairs w ... Read More
Every landlord has heard horror stories about tenants who have brought in bed bugs, dropped bowling balls through the floor, refused to leave the property, or some other atrocious lease violation that leaves the apartment in bad shape. These stories aren’t made up either – oftentimes you will find landlords who have had to deal with many bad situations like these and who, hopefully, have learned something from each one.
The good news is that by effectively screening potential rental ... Read More
How to Gather Information When Screening Rental Applicants Without Appearing to Discriminate
Landlords are not allowed to discriminate against applicants based on gender, age, race, religion, and other criteria. You are also not allowed to ask questions about those subjects. A seemingly harmless “How old are you?” could be taken the wrong way and land you in trouble.
Many landlords fear that the appearance of discrimination may prevent them from getting enough information in the ... Read More
Should Landlords Take the Plunge and Get a Real Estate License?
As a landlord, you've probably heard whispers about the tax advantages and other benefits of getting your real estate license. What you've heard is true: the tax advantages alone can justify becoming a real estate professional. However, if you have a full-time job or only own a couple of rental properties, the advantages are less clear cut.
Potential Benefits of Being a Real Estate Professional
Let's f ... Read More