Archives for 2018

The rental market is booming, enticing many owners into renting properties and becoming landlords. Large numbers of new landlords are diving into the market with enthusiasm, but without much planning and foresight.

The following are five of the most important things new landlords should be aware of before renting properties and entering the property rental space:

1. Clear Lease Terms Are Foundational

Essential to the landlord-tenant relationship is the lease. It should be well thought out and carefully worded. While there are many templates and boilerplate options available, a customized lease with all terms and parameters should be seriously considered. Landlords should spend considerable time on the lease before renting properties, so that everything is covered and all expectations of tenants can be clearly mapped out in black and white.

Include elements when renting properties such as:

• Tenant responsibilities (landscaping/degree of upkeep expected, amount of notice required when vacating, etc.)
• Fees or penalties, such as for late rent
• Terms regarding pets, storage, subleasing, etc.

2. A Cash Cushion is Crucial

While focus and expectation should be on everything going well, landlords should also be prepared in case they don’t. The ability to cover an emergency property repair or a bad tenant with reserve funds is essential. New landlords should establish an emergency savings account or quick loan option before renting properties. At least two months’ rent in the bank for every rental property is ideal if possible.

3. Carefully Consider Decisions About Management Before Renting Properties

Landlords must also consider if they will manage the property themselves, outsource it to a reliable tenant, or hire an outside management company. All options have pros and cons, although hiring a management company ensures that an experienced entity will be in control. They will already have reliable resources to call on for property emergencies ranging from repairs to legal disputes, and they will be on the ball in terms of keeping properties occupied.

4. Adequate Insurance is Important

Landlords renting properties that still have a mortgage will be required to carry insurance. However, this is a wise idea for all property owners. Insurance allows landlords to sleep more peacefully at night and know that there is a safety net for:

• Physical damage to the property (read the specifics carefully to ensure a full understanding of what is covered)
• Coverage for loss of rental income due to damages
• Coverage for property maintenance items
• Liability coverage for medical and legal costs

It should be noted that landlord insurance will not cover the tenant’s property, so landlords should consider requiring tenants have a renter’s insurance policy while on the premises.

5. A Reliable Tenant Screening Company is Indispensable

Screening tenants thoroughly and professionally is essential to success as a landlord. Bad tenants can damage the property, make it undesirable for other concurrent renters and ultimately cost the rental business money. A professional tenant screening company can run eviction and criminal records as well as credit checks.

The rental market is surging, with new landlords exuberant about all the benefits renting properties can bring. However, all landlords should bring attention to these five important aspects of the business before getting started and renting properties.

Source: http://www.king5.com/article/money/magnify-money/here-are-7-things-to-know-before-renting-out-your-home/507-506967949

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

With technology seeming to make a new leap every couple of weeks, the marketplace is in a perpetual state of flux. Now more than ever, it is important for landlords to keep up with the rental trends. Practices and parameters across all industries are changing and evolving all the time. This is true of the housing and rising rental market as well.

Landlords interested in keeping up with the times should consider taking advantage of the following six rental trends as 2018 unfolds:

1. Advances in Communication Options

Technology has certainly made communication easier across the boards, and landlords would do well to take advantage of these new channels. Younger renters and Millennials in particular are very accustomed to using communication methods such as texting and social media. Landlords should be up to speed to these rental trends and willing to use these channels to stay connected with current and prospective tenants.

2. The Internet of Things (IoT)

Despite concerns about the IoT being yet another channel for “big brother” to tap into consumers’ home lives, its growth can’t be denied. Some tenants might be looking for its features and conveniences, so landlords should consider adding some IoT elements to their properties. Easy and appealing additions include wireless Internet, USB charging outlets, electronic thermostats and fire/heat detectors, home security systems and other “smart” technology.

3. Online Marketing

Just about everybody is online these days, and the majority of renters start their search here when looking for a new home or apartment to rent. Landlords should take full advantage of these online marking rental trends which include sites like Craigslist, Apartments.com, Hotpads, ForRent.com and other top platforms to connect with interested parties.

4. Online Application Rental Trends

Facilitating the ability of interested parties in applying for rental properties online is a natural extension of online marketing. Ads can direct applicants to an automated online form to eliminate old fashioned paper forms and retain a digital record of correspondence. Online rental applications are convenient and can help with filling vacant units more efficiently. Landlords should ensure adequate encryption so that applicants’ personal data is stored safely and securely and data breaches can be avoided.

5. Professional Tenant Screening

As the world becomes more complex, so does the process of screening tenants thoroughly and accurately. Connecting with a professional tenant screening company helps with taking the guesswork out of the process and compliance with current state and federal laws and ensures it is done thoroughly.

6. Online Rent Payment Processing

The rental trends in the digital realm has also made it easier for landlords to get paid. The old, archaic system of clumsy paper checks has been replaced with slick, digital online processing. Sites like PayPal make it extremely easy for tenants to pay with a few clicks. The option of a monthly online checking account debit can make rent payment easier as well. Landlords might consider offering a small discount to tenants who sign up for automated deductions of rent payment versus manual payment.

The upcoming year promises continued evolution of technology, and with it more changes to the rental industry. Landlords should be aware of these six rental trends and consider making changes to their processes accordingly.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Source: https://www.forbes.com/sites/forbesrealestatecouncil/2017/12/22/rental-trend-predictions-for-2018-in-property-process-and-policy/

High-quality, trustworthy ideal tenants are crucial to success as a landlord. A less than ideal tenant can cost both time and money. They can also increase stress levels and make being a landlord a frustrating experience.

The following are five of the key qualities to look for in an ideal tenant to help ensure a positive experience for everyone involved.

1. Financially Sound

This is, of course, a major consideration when selecting an ideal tenant. If tenants are not financially viable and secure, they could quickly begin paying the rent late – or skip payments altogether. Ideally, the cost of rent should comprise one-third or less of the tenant’s income; however this can vary depending upon an area’s rental market and economy. A credit check with the assistance of a reputable tenant screening company can help to ensure that they are financially responsible and have a good credit rating with the credit bureaus.

2. No Criminal History

Having a criminal record is a definite red flag when it comes to rental applicants. It could be a sign that this behavior will continue in the future. However, check to ensure that state, city and local law allows landlords to factor criminal history into their decision; in some areas, doing so against the law. Enlisting the help of a professional tenant screening service can help to take the guesswork out of screening for criminal history. Landlords can enjoy the peace of mind that it will be done property and in compliance with relevant tenant’s rights laws.

3. Conscientious

The ideal tenant is also polite and conscientious. While it is more difficult to screen for this quality, a few calls to the tenant’s listed character references and/or former landlords can help to yield this information. What do their references say about them? Finding out their track record regarding on-time rent payments is important as well.

4. Respectful

Find out if the applicant kept past rental properties clean and in good condition during their time there. This is an indicator of the level of respect they have for the property of others. Ask previous landlords how they got along with other tenants in the building as well; respect for other people is just as important as respecting the property they will be renting. It is also an indicator that they will be respectful of landlord policies such as not subletting the property or giving a specific amount of notice when they will be moving out.

5. Friendly (but Not Too Friendly)

Everyone prefers to be around friendly, pleasant people. While friendliness is a positive quality in tenants as well, some personality types can take it a little too far. Tenants who try to tell their life story or vent about their personal lives may bring more drama than most landlords care to deal with. Landlords and property managers should screen tenants in this way during the initial interview. A tenant who seems too talkative or “needy” can turn out to be problematic in terms of complaints and personal drama. They could also take up excessive amounts of a landlord’s time.

Leasing to new tenants always involves some degree of risk; however, there are ways to mitigate and minimize this risk. Looking for the five qualities discussed here can help landlords to find the ideal tenants who will be problem-free and profitable.

Intuition goes a long way in finding an ideal tenant, and a professional tenant screener can assist in checking the backgrounds of potential renters. Professional tenant screening can also help ensure that screening is done in compliance with the Fair Housing Act and local laws.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Source: http://www.sfgate.com/business/networth/article/One-third-rule-not-always-feasible-in-Bay-Area-5300473.php