Posts Tagged Property Mangement Economic Drivers

RENTAL PROPERTY MANAGEMENT – ALWAYS HAVE A PET CLAUSE (CLAWS)

Do You Have a Pet Policy?

 We recommend that you include a “pet clause” (pun intended!) in every lease or rental agreement you enter into.  It doesn’t matter whether or not you allow pets in your property . . . always include language concerning conditions for having a pet.  If you don’t allow pets and you lease it with that condition, Tenants have been known to bring pets in anyway (say it isn’t true!).  Seriously, a Tenant may get the emotional tug at their heart strings by a cute, sad-eyed puppy and they simply can’t resist.  They buy the dog and decide to hide it from you.  If that dog . . . especially if it is a puppy, causes damage to your rental property, and you have no terms and conditions the Tenants have agreed to, recouping costs for repairing damage caused by the animal can become fuzzy at best.  If you allow pets and your Tenant signs your agreement regarding pets all the better!

Our pet clause was crafted by one of our owners who was an attorney and this is the best pet clause I have seen . . . you might say it has “claws” . . . sorry . . . I couldn’t help it!  To download our documents forms and checklists (including our killer pet clause) or to order a CD with the same information or if you just want more tips on how to effectively manage your investment property, visit our web site at: http://www.ManageToMakeMoney.com or call 949-689-4344.

To view a short video on this subject click on this link: WATCH VIDEO

Thank you for reading!  Best of luck with your properties!

Pat and Kris

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RENTAL PROPERTY MANAGEMENT – TENANTS BREAKING THEIR LEASE

Tenant Breaking Their Lease

Life happens and Tenants break their leases for many reasons . . . they can’t pay any longer and are skipping out or something as innocent as getting a great deal on a short sale and just learning that they have to close in 2 weeks . . . YIKES!!  Either way, you have to know the Tenant’s and your responsibilities when this happens.

As you probably already know, the Tenant has the responsibility for the rent through the end of the term of the lease as stated in their lease agreement . . . and to leave all the utilities on and pay for them until the property is re-leased (if you used our lease form).  You, as the Landlord, if you want to be able to collect any rent through the end of their lease term, must immediately and diligently market the property for lease again.  Be careful not to market the property at a higher rent amount than the previous Tenant paid or you may have difficulty in collecting money for lost rent in court if . . . you “Jacked the Price up” which is how a judge may see it.  You will only be entitled to the lost rent between the time your previous Tenant vacated or last paid rent and the beginning of a new lease with your new Tenant . . . no double dipping!

One other very important detail, as soon as the Tenant vacates the property, do an “Estimated” final accounting of their security deposit . . . or Move Out Statement.  Of course you won’t know all the final numbers when you prepare this and that is why it is called an “estimated” statement.  But, in this statement, you are going to assume that you will not find another Tenant for the property before the end of the lease term.  You will also estimate the costs of any repairs over and above “normal wear and tear” the Tenant may have caused.  This will show a worse case scenario.  Send the statement out within 21 calendar days (in the State of California) of the Tenant moving out with a check for any amounts left over from the funds (typically security deposit) you are holding for the Tenant.

Within 21 days (calendar) of all the repairs having been completed and either the end of the lease term has come or your new Tenant has moved into the property, you will need to do what I call a “True-Up” Move out statement.  This will show all of the actual costs to your Tenant, giving them credit for any time of their lease that the new Tenant will be in the property (you can’t double dip on rent) and cut a check for any differences.  Oh yeah, be sure to include copies of receipts for all work performed that you are charging the Tenant for.

The subject of Tenants breaking their lease along with many other property management challenges are covered extensively in the new Property Management Training Program; Manage to Make Money . . . . the Real Estate Series.  This new series has been developed around the book: Manage to make Money . . . Your Guide to Profitably Managing Rental Properties (available for California, Oklahoma, Kansas or Missouri) written by Pat and Kris Larkin who are seasoned real estate professionals and specialists in the area of Property Management.

 To visit their website and see the full spectrum of Rental Property resources; Books, E-Books, Documents, Forms, Form Letters for nearly every occasion, Checklists, Videos more money saving tips and tools . . . and the list goes on and on, go to: ManageToMakeMoney.com

 For a short video on this subject CLICK HERE

Thank you for reading!

Pat and Kris Larkin

 

 

 

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RENTAL PROPERTY MANAGEMENT – 24 HOUR NOTICE OF ENTRY

What do you do when need to access your rental property but are unable to coordinate schedules with your Tenants? There are times when you need to get into your property to make repairs, show it to prospective Tenants, show it to prospective buyers or just to inspect the property and you can’t get a hold of your Tenants. We suggest that you go by the property and post it with a “24 Hour Notice of Entry” This is a legal document which tells the Tenant that in approximately 24 hours, you will be coming into the property to; and then you state your purpose.

Now you have to be judicious with the use of the 24 hour notice and not use it every week to go into your property. Your Tenant is entitled to the quiet use and enjoyment of the property. If you are using the notice to have repairs done… always accompany your workmen into the property. Also, it is a best practice that if/when you enter a Tenant’s property, that you have someone accompany you. In our our litigious world, this is for your own protection. It is also a good idea to try to contact your Tenant “one more time” before you enter the property. Also, document all the attempts you made to reach them or access the property.

You will be amazed at how when your Tenant receives their 24 Hour notice, they are miraculously available to meet you there!

In conclusion If you can’t reach your Tenant for access to the property, post a 24-Hour Notice of Entry, document all attempts to communicate with them and be sure that you accompany your workers when you/they go in.

To view a short video on this same subject CLICK HERE

For our 24 Hour Notice of Entry form or more down-to-earth tips on how to effectively manage your rental property, visit our web site at: ManageToMakeMoney.com.

Thank you for reading!

Pat & Kris

 

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RENTAL PROPERTY MANAGEMENT – DEALING WITH “CHALLENGING” TENANTS

When my wife, Kris and I were traveling and staying with some friends, we walked into the room they had prepared for us and on the lamp was an antique looking sign which read: “Our guest bring us great joy… some when they arrive… and others when they leave!” I felt that way about our Tenants… sometimes, it’s the waiting for the joy at the end!

We are all challenging people to live with… some more than most! We categorize our challenging Tenants into three primary categories: 1.) Students 2.) Entitled Tenants and 3.) Those Tenants who upset the neighbors around them. In a way, they all have similar attributes… they want to live their lives… any way they choose… regardless of how disruptive they may be to others around them. Many of these Tenants “bully” their way through life… pushing their way through. Our tip for dealing with all types of challenging Tenants is to show respect to them, but also show your resolve. Be assertive in requiring that they go by the same rules that most others on the planet go by. We have developed what we call a “No” letter and it very respectfully says something to the effect of “Thank you for your concern about (whatever the concern is). However, this is not a situation in which we will be able to meet your expectations at this time.” (then state whatever clause in the lease which applies). Another option, if they are disturbing the neighbors or causing damage to the property is to threaten them with a notice to comply with their lease or move. There is a very strong chance that your Tenants won’t like either response. But with your resolve… you will get this challenging situation under control.

In summary: Don’t allow your Tenants to get the upper hand in your relationship… push back with respect and their legal obligation of their Lease Agreement.

To view a short video on this same subject, please CLICK HERE

If this tip has been helpful to you, please visit our website at: ManageToMakeMoney.com where you can find our “No” Letter and many more tools, tips and techniques for managing your rental property profitably.

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RENTAL PROPERTY MANAGEMENT – RETURNING SECURITY DEPOSITS

Many people don’t know that if you fail to return your Tenant’s security deposit within the time frame allotted by your particular state . . . there can be some very serious consequences.  As an example, let’s assume that your state mandates that you are to return your Tenant’s security deposit to them within 21 days (3 weeks).  In many states, if you fail to return the deposit within that time frame then first, you will lose the right to charge the Tenant for anything!  It doesn’t matter if your Tenant owes you for three months of rent, late charges and they tore up your property . . . by returning the money late . . . you waive your right to charge the Tenant for anything at all.  But wait . . . there’s more!  Also, in many states if you miss the deadline, your Tenant is entitled to TWO TIMES the amount of security deposit.  Translation: if the Tenant paid a $2,000 security deposit and you miss the return date, you could have to pay them $4,000 AND not be able to charge them for any back rent or late fees owed or for repairing any damage they may have done to your property!   So be sure to check the specific laws in your state.  A good place to start is to google “tenant landlord laws (insert your state’s name)”

This tip is part of the scores of information contained in our Property Management Training Program; Manage to Make Money . . . . the Real Estate Series.  This new series has been developed around our book: Manage to make Money . . . Your Guide to Profitably Managing Rental Properties 2nd Edition.

To view a short video about returning security deposits click on this link.

To visit our website and see our large selection of books, e-books, downloadable forms and documents, videos and tips go to: www.ManageToMakeMoney.com

Thank you for Reading!

Pat and Kris

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RENTAL PROPERTY MANAGEMENT – TENANTS BREAKING THEIR LEASE

Tenants Breaking Their Lease

One thing which occurs more often in Rental Property Management is Tenants breaking their lease.

Let’s face it, life happens and Tenants break their leases for many reasons . . . they can’t pay any longer and are skipping out or, it is generally something less sinister like . . .  getting a great deal on a short sale and just learning that they have to close in 2 weeks . . . YIKES!!  Either way, you have to know the Tenant’s and your responsibilities when this happens.

As you probably already know, the Tenant has the responsibility for the rent through the end of the term of the lease as stated in their lease agreement . . . and to leave all the utilities on and pay for them until the property is re-leased (if you used our lease form).  You, as the Landlord, if you want to be able to collect any rent through the end of their lease term, must immediately and diligently market the property for lease again.  Be careful not to market the property at a higher rent amount than the previous Tenant paid or you may have difficulty in collecting money for lost rent in court if . . . you “Jacked the Price up” which is how a judge may see it.  You will only be entitled to the lost rent between the time your previous Tenant vacated or last paid rent and the beginning of a new lease with your new Tenant . . . no double dipping!

The subject of Tenants breaking their lease along with many other property management challenges are covered extensively in our new Property Management Training Program; Manage to Make Money . . . . the Real Estate Series.  Click here for a workshop near you: Workshop.  This new series has been developed around one of our books: Manage to make Money . . . Your Guide to Profitably Managing Rental Properties which is now available for California laws as well as many states in the Midwest.  It is a virtual Survival Guide for anyone managing Rental Properties!

Imagine yourself having challenges with your rental property . . . NOW imagine yourself having a solution to nearly all of your rental property issues!   Visit our website at http://www.ManageToMakeMoney.com and check our books, e-books, documents, forms and checklists and much much more!  You never knew that life managing rental properties could be this easy!

Click on this link for a short video about what to do when Tenants break their lease:  Tenants Breaking Their Lease

Thank you for reading!

Pat and Kris

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RENTAL PROPERTY MANAGEMENT – EARLY TENANT MOVE IN

Few of us would ever allow our Tenants to move in before their lease begins but . . . many of us do unwittingly!

Would you ever knowingly allow your Tenant to move into your property early?  Perhaps unwittingly.

Think about this scenario for a minute:  You have rented your property and the lease begins on the 1st of the month which is a Sunday.  For our convenience, many times, we may be inclined to give the Tenants the keys on a Friday or Saturday, so that we don’t have to do it early Sunday morning.  What happens so many times is that the Tenant is excited about their new place and now that they have the keys they go by just for a look . . . just to “breathe it in”.  When they get there, they remember those two boxes in the back of the car . . . “Gee, if I get those out, then I can start with an empty car on moving day.” Once those boxes go from their car to the house or condo, technically, they have “moved in”!

Now, let me ask you, what is the effective for their renter’s insurance?  Chances are, it doesn’t take effect until the 1st.  why would it start sooner?  Without that date (the now NEW move in date) being covered in their lease or their renter’s insurance being in effect . . . you, the Landlord, are liable for any damage, or injuries they may occur during that time between when they moved the boxes in until the lease start date on the lease!

To solve this issue, we always wrote the lease to begin on the day we gave them the keys and, required the Tenant to have their renter’s insurance effective on that date also.  You don’t necessarily need to charge them for the extra days rent . . . just cover yourself legally and from a liability perspective.

In summary, think through the date relating to move in dates and “possible” move in dates.  You might just save yourself some heartache.

To view a video on this same subject click on this link:  Early Move In

If you have any questions about this subject, fell free to contact us via our free service; ManagementLink.  Simply click on the link and type in your question or issue.  We will get back to you within 24 hours with an answer.

Thank you for reading!

Pat & Kris Larkin

We have founded and developed “Manage To Make Money” which is a resource for anyone, novice or professional who manages rental properties.  We provide Books, Documents and Forms, Live Seminars, E-Books, Free Webinars, Tips and Private Consulting.  Check it out!

Manage To Make Money – Cottonwood Falls, Kansas 949-689-4344, Info@ManageToMakeMoney.com

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