Commercial Property Managers – Why They Have No Time and Work So Hard

If you are reading this, you are likely to be a commercial property manager or you know one; either way the question has hit the spot and you understand what I am saying. It is a fact, many if not all commercial property managers have very little time to spare in their average working day.…

If you are reading this, you are likely to be a commercial property manager or you know one; either way the question has hit the spot and you understand what I am saying.

It is a fact, many if not all commercial property managers have very little time to spare in their average working day. They are the hardest working of most commercial real estate people because they have to control and produce the property performance for the landlord; it's the central part of their job. That takes time, effort and commitment.

Property management is not like selling or leasing a property where you can move across a number of projects and keep all of them moving in some form or another. In property management you have to stick with some very complex issues that can take days if not weeks to resolve. You can manage some really difficult properties with real challenges.

Add to this fact the tasks that each property presents every day with tenants, landlords, maintenance, and leasing, you have some real work to do. It is unrelenting and consistent. It does not go away. That is why you have no time to spare.

Given all of this observation, it should now be said that good commercial and retail property managers are some of the most qualified professionals in the industry. They generally know far more about property performance, tenant mix, and lease optimization than sales and leasing people. They know how to make a property work.

To give you some idea of ​​what I am saying here, the role of a commercial or retail manager would typically involve many things including:

  • Lease management
  • Lease optimization
  • Vacancy management
  • Fit out approvals and controls
  • Refurbishment and renovations
  • Lease negotiations
  • Tenant mix strategy and analysis
  • Maintenance management and planning
  • Building income and expenditure budgets
  • Risk management
  • Due Diligence practices and systems
  • Energy management
  • Retail trade analysis and customer sales strategy
  • Landlord reporting and communications

So this list goes on. You can see why a property manager is really the central part of the property performance equation. A landlord needs a good property manager to help them with a complex property.

It is interesting to note that the inexperienced landlords of this world will consider outsourcing property management requirements to the cheapest real estate agency or property manager. Considering that these landlords are putting their income and expenditure in the hands of potentially one inexpensively person or group, and that person may have little real knowledge or relevance to the future of the property, the risk of damage to the property performance is very real.

So the message here is for all experienced and qualified property managers to ask for a reasonable and relevant fee for the services offered. Stay firm on your fees; those landlords seeking and taking discounts from other agents will soon realize the error of their ways and will likely come back to you when the property is financially derailed and the vacancies are rising.

When you are asked to fix a problem in a previously poorly managed property, charge a solid and fair fee for the issues involved. You are the professional and your services are worth good money. Professional commercial and retail property management is not an experiment for the feint hearted.

Does Your Property Manager Own Rental Real Estate?

Here's a great question to ask when hiring a Property Manager: “Do you own rental property?” If the Property Manager does own rentals, you should feel much more comfortable. Why, you ask? I understand a common misconception out there: If the Owners of a PM Company own rental real estate, they will steer rental prospects…

Here's a great question to ask when hiring a Property Manager: “Do you own rental property?”

If the Property Manager does own rentals, you should feel much more comfortable.

Why, you ask?

I understand a common misconception out there: If the Owners of a PM Company own rental real estate, they will steer rental prospects towards their properties first. I get that fear but, in most organizations, it's truly unfounded.

The reality is that owning rental real estate is a huge plus for both the customer (you) and the Owner of a PM Company. I own a Property Management Compnay and I've also owned rental properties through Indianapolis for much longer. Without question, owning and managing my own rental properties has provided me with tremendous experience that I've been able to leverage with all of my customers.

We all understand that rental real estate is a real business. Cash flow, particularly with single family homes, is oftentimes extremely tight. So, you need a Property Manager that can make good decisions. Bad decisions can eventually lead to trouble and trouble often leads to a lot of wasted time and expense for both the Property Manager and Owner.

When members of my staff bring me conflicts, I always try to look at it from both the Owner and Tenant points of view. Specifically, I ask myself, “If this was my property, how would I want it handled?” Trust me, you will not get that kind of insight from a Property Management company that does not own rental real estate.

Again, back to making good decisions … there are very few times that my staff has brought my questions that I could not answer. Or, more importantly, bought me issues that I had not personally experienced with my own Tenants or properties. So, I can leverage that background to make the right decision quickly, which saves everyone time and effort.

Do not get me wrong … there's no question I've made my fair share of bad decisions, but most of those bad decisions were very early in my investing career and I only ended up hurting myself, not a customer.

As for steering prospects to my properties … well, that just does not happen. The real estate I own, in almost every case, does not compete, from a price point, with our 3rd party customers. So, if a Tenant prospect is looking for a 4 bedroom in Fishers, I will not have anything to offer.

Student Rubbish or Rubbish Residents?

I want it and I want it now – or I'm throwing my rattle in the bin! I was not always a student landlord. I, like most, was once a student too – but I Was perfect! Actually I remember failing at school in every conceivable way. It was worse because others (mostly teachers and…

I want it and I want it now – or I'm throwing my rattle in the bin!

I was not always a student landlord. I, like most, was once a student too – but I Was perfect! Actually I remember failing at school in every conceivable way. It was worse because others (mostly teachers and especially the really clever ones) could not understand what I could not understand, so maybe they were not so clever! I was incapable of explaining what I did not know. Teachers, though they knew, were incapable (and thereby arguably culpable) of communicating what they knew, to me. Result – raaaah ! This was a frustrating time or, in modern parlance, “a rubbish time”. Some of the best teachers are those who took longer to forgive subjects themselves and then knew how difficult it was for others and how important it was to 'spell it out' by repetition!

We live in an instant society with same day delivery, “Today Not Tomorrow”. Personally I hate queuing! This instant expectation impacts if in / tolerant we are or become. Older long-term residents know when bin-day is and this to the point they never forget it. I could wonder that such events are the highlight of the week for some, given the importance attached to it when compared to other matters of higher priority to most. Long term residents also know 'what' to put inside each bin. Yawn, the complexities of what to put in recycle sacks; they know to position the bin, with lid sealed closed, exactly touching the boundary of their properties, failing which bin men (sorry ladies, bin operatives) almost certainly go out of their way way to refuse the refusal. Meanwhile whilst unclear it attracts all sorts of attention: a 'Street Scene' fine, rodent revelry and disdainful resident demeanours. No implication connecting the latter two. Locals know that if they do not return the bin after reason is removed, the bin might be stolen or borrowed , eg as a means to access an open window by burglars or when keys to a neighboring property are misplaced following a student's 21st party night out (the issues of noise is covered in a separate article); locales know that an uncollected bin set on fire by the front door might prevent escape. They know how to recycle: plastic, aluminum, card, paper, all of the correct grade, etc. Residents know that, until mid 2013, Canterbury has no door-step recycling of glass, unlike other cities from where students came. Residents seem to know it all. All that is … except one tiny, but majorly important detail … one consideration that fails to credit local's many years of accumulating wisdom (if not rubbish) – they do not know why other people do not know what they know but take for granted. Some local residents belittle 'reprehensible', behavior with euphemisms, describing students as “intellectually challenged” because students have yet to reach long-term residential minimum standards of perfection.

Try and explain notions of tolerance and you may be met by a pair of determinedly deaf local residential ears. To locals it is so very obvious, but not yet to students. On the other hand, when explaining to students the importance of “rubbish rules”, they are green-minded, apologetic, open and very responsive, with most often grasping it. Others seem oblivious to the rules seemingly slipping between wet fingers. One house which has been 'trying' as regards rubbish, have improved enormously, but still they have not yet got the hang of 'it', not because 'it' is hard, but because 'they' are hard. What are “they”? “They” are the numerous rules, do's and don'ts in Canterbury, compounded when compared to the rules back home. To be fair to tenants, no sooner have tenants awarded the understanding concepts, than the academic year is over and the recycle-learning curve continues with any new intake.

Personally, I would choose my imperfect but reasonably minded students for neighbors over any perfectly intolerant local neighbors any day! This is not to say all local neighborhoods are intolerant – some, having endured years of suffering, have frankly had enough and have given up – who can blame them? There appears to be a large number of locales who just do not understand what students do not understand.

What do you understand , sorry – I mean what do you think …?

Real Estate – Invest Your Money Wisely

Real estate had temporarily lost its sheen because of the sudden contracting of the market that had left property owners stranded. However, indications are that the worst is over in this industry and the market is beginning to look up once more. This is actually a very good time to purchase commercial or residential property…

Real estate had temporarily lost its sheen because of the sudden contracting of the market that had left property owners stranded. However, indications are that the worst is over in this industry and the market is beginning to look up once more. This is actually a very good time to purchase commercial or residential property because prices are extremely low. Even so, you need to be extremely careful with regards to how you invest your money in property.

It is fairly easy to find properties for sale these days because foreclosed units are still coming on the market. This actually creates a good situation from the rental point of view because you are bound to find plenty of renters for residential units. Make sure that the home you purchase is in an area where there is great demand from renters. It should ideally be close to recreation areas or within easy distance of the CBD.

You also need to make sure that the home you purchase has a clean title. Check all the paperwork in order to ensure that there will be no doubts at a later date. You should also check the house thoroughly in order to assess what condition it is in. If you have to spend a lot of money to repair or renovate it then your profit margin will diminish. Beside, you will only be able to rent it out after a while.

If you are borrowing money in order to pay for the property then you bought to get the best possible terms from your lender. Have talks with more than one lender in order to figure out which one can offer the best rates to you.

You will realize that the task of investing in real estate becomes very easy if you get help from an agent. Realtors who have plenty of experience and contacts will be able to help simplify the entire process starting from identifying the best property. They will also help you find the most suitable funding for your purchase. Make sure that you select a realtor who is familiar with the particular locality you want to invest in.

Put a lot of thought into the purchase in order to ensure that your returns are higher than the interest cost on the loan. You will certainly be able to start creating wealth if you invest your money wisely in real estate.

Selecting A Real Estate Agent – How to Choose the Right One

There is very little doubt these days that investing in real estate is a good idea. People have begun to let go of their fears and have started to put money into the economy once again. There are many fantastic investment opportunities available these days especially since large numbers of properties have been foreclosed by…

There is very little doubt these days that investing in real estate is a good idea. People have begun to let go of their fears and have started to put money into the economy once again. There are many fantastic investment opportunities available these days especially since large numbers of properties have been foreclosed by banks which are looking for buyers with ready cash. It is very tempting for you to consider doing the entire transaction on your own in order to save money. However, it is a fact that an agent would be able to get the best possible deal for you.

Selecting a real estate agent to do business with is not an insignificant thing. If you make the right choice then the person you select will be able to get the job done in the quickest possible manner. There are a few characteristics that the best real estate agents possess and you would do well to look for them in your interactions with realtors.

At the very outset, you need to select a realtor who is highly experienced. This person needs to know the ins and outs of the business and should also have excellent contacts in the industry, especially in the area you are interested in. This will ensure that the person knows about the most suitable properties available in a particular area. You will get the best possible advice from the person and will there before be able to make a very good investment. There is a lot of paperwork to be done when a property deal is closed and your agent should be able to help you with them.

You also need personalized service from your realtor because a cookie cutter approach to buying property is the wrong one. Only after understanding your long term plans as well as cash flow situation should the realtor suggest properties to invest in. If the agency is extremely large and busy then it might not be able to offer you the personalized service you deserve.

You will need to find an agency that strikes a balance between all these features. This will ensure that the property deal is a profitable one for you. It goes without saying that the company should also be a highly reputed one. Feel free to get into discussions with more than one real estate agency before selecting any one of them to deal with.

Investing In Real Estate – Is It Really a Good Idea?

Have you always had the dream of investing in a piece of real estate? Lots of people think that this is a very good idea but they have unfortunately lost a great deal of money because the markets shrank drastically. It is quite normal for you to be worried that your property will diminish in…

Have you always had the dream of investing in a piece of real estate? Lots of people think that this is a very good idea but they have unfortunately lost a great deal of money because the markets shrank drastically. It is quite normal for you to be worried that your property will diminish in value. People have known for long that this is a very good route towards wealth creation. In addition, experts believe that this is a very good time to purchase a property because the market is showing definite signs of a recovery.

It is a very wise decision to invest in real estate because you will be able to get multiple income streams from it in due course of time. For starters, your property is very likely to increase in value after a reasonable amount of time. Secondly, you will be able to generate rental income from the property as well. Thirdly, you can leverage the property to get a substantially large loan that you could use to acquire another property or even to invest in various money making options. Even if you do not rent out your property you could stay in it and save money on rent. Besides, there is also the psychological benefit of being a property owner rather than a renter.

It is only a good idea to invest in real estate if you get the money for it at a very low rate. You should try to borrow as little money as possible. In fact, it is not a good idea to buy the property if the interest amount on the money to buy it is higher than the rentals in that area.

Buying property is a major step in one's life. You can benefit from your real estate investments as long as you put a lot of thought into where you buy your property. This generally requires expert knowledge which usually is owned by a good real estate agent. Needless to say, you bought to hire the services of an experienced agent who is known to offer highly personalized services to clients. After all, this is your wealth at stake here. This will enable you to zero in on the best possible property without too much of trouble. Considering how easy it is to buy property if one gets professional help it will not be surprishing if you wish to buy a second property.

Getting the Best Real Estate Deals – Factors to Watch Out For

The real estate market has been through some tough times over the past few years but signs are that things are looking up of late. People are gaining more confidence in the market and this is reflected in the increasing numbers of transactions taking place and also in the value of each transaction. As a…

The real estate market has been through some tough times over the past few years but signs are that things are looking up of late. People are gaining more confidence in the market and this is reflected in the increasing numbers of transactions taking place and also in the value of each transaction. As a matter of fact, this is a great time for you to invest in property as well. However, there are a few things that you have to watch out for because they can influence the overall profitability of your deal.

The cost of real estate is affected by infrastructure plans in the area. Property values ​​in an area tend to increase if there are plans to build roads in that area. On the other hand, residential properties that are located too close to the road will suffer because of disturbance from the noise and air pollution that will inevitably result from it. It is a good idea for you to do some research on what development plans there are for an area before you actually purchase property there. It will also be an advantage if the place is well connected by public transportation.

If the proposed property you wish to purchase is next to an open space such as a park or a wooded area then you bought to be willing to spend extra money to buy the property. It is unlawful that the space will be developed and this will ensure a better quality of life for people living in the house.

You should also study demographic trends for the area where you wish to purchase real estate. You'll need to know whether people are interested in moving to that area because this will also bring lots of support services to the area. You can also be assured that you will find it easy to rent your property out, should you wish to do so at a later date, if there is a lot of migration to that area.

Make sure that you make a detailed study of the market before you invest in real estate. Do not buy property that is very highly priced because there is less likelihood that it will appreciate in value. After all, you need to ensure that you get adequate returns on the money you have invested in your property. Make sure that you get all the help and expert assistance you need before you invest in property.

Paying for an Expensive But Reliable Janitorial Cleaning Services Is Worth It

Janitorial cleaning services does not come cheap these days, some may be cheap but unreliable or reliable but their services can be costly. It is better to go with the reliable janitorial cleaning services, even though it may cost more, it will be worth it in the long run. The pros of choosing reliable personnel…

Janitorial cleaning services does not come cheap these days, some may be cheap but unreliable or reliable but their services can be costly. It is better to go with the reliable janitorial cleaning services, even though it may cost more, it will be worth it in the long run. The pros of choosing reliable personnel to do the cleaning and maintenance for your company outweighs the cons. Problems will result in the end if you rely on cheap janitorial service to work for you.

Hiring a cheap but unreliable janitorial service can cost you more in the long run rather than help you save expenses. Remember that a clean and comfortable work area can help your employees be more productive. Having a dirty and unhygienic workplace can cause setbacks to your production; this can cause low morale to your employees plus it can create a negative impact on your company's reputation which is basically based on the appearance and the cleanliness of the establishment. Cheap price comes with a hefty price tag in this situation because of their cheap labor cost, janitorial services provider often use substandard materials or equipment in their operation to cope up with their expenses. They will result in using low quality detergents or cleaning agents. They will lack sophisticated equipment also that will help them do the job easier and faster. Getting a cheap janitorial service can cost more in the long run rather than helping you cut expenses.

The confident feeling that will get you because you put your trust on somebody reliable and could get the job done is priceless. Paying for an expensive but reliable contractor to manage the cleaning and maintenance of your establishment is worth it. You can be assured that their personnel will be professionals, courteous to your employee and your clients that they will meet in the area. Some reputed janitorial cleaning services use state of the art technology in their operation so that they could get the job done faster and much efficient. They also have all the equipment needed for the safety of their workers and all of those that are using the area in which they are cleaning. Some expensive company that provides janitorial services has a selection of personnel that you can choose. They also have an efficient system in doing their day to day work which is very important.

Having to pay more for reliable service of janitors will be more beneficial to your company in the end. A cleaner and more orderly workplace will result in productive employees. The peace of mind that you will get in knowing that your place is orderly and clean is priceless.

Being An Organized Landlord – The Importance Of Tenant Files

One thing that continuously surprises new landlords is the sheer amount of paperwork required to manage a rental property. If you are thinking about investing in a rental property and managing it yourself, you should definitely own a file cabinet; If you are more technically savvy, then you need to have a printer and scanner…

One thing that continuously surprises new landlords is the sheer amount of paperwork required to manage a rental property. If you are thinking about investing in a rental property and managing it yourself, you should definitely own a file cabinet; If you are more technically savvy, then you need to have a printer and scanner for your computer. Paperwork is a must when managing a rental property, because it will protect you and your tenants if any issues arise.

One question that I get asked a lot is, “What paperwork should be saved, and what can be thrown out?” My answer to that is save everything! There is no way to know what might become relevant later, so the easiest way to keep track is to keep everything in one place. Since we are in the technological age, this has become much less of a burden, but it does take some time to set up properly. However, this article is not about setting up your office, so I'll get back to the topic at hand.

All your communication with your tenants should be documented in writing, and this includes random, spur of the moment conversations in passing. Now I'm not saying you need to go out and buy a tape recorder and carry it with you everywhere you go, but a notepad is definitely a must. Make a note of all conversations, the time, date, and a brief description of what was discussed. This is good for many reasons, as it can act as a cheat sheet for getting to know your tenants. It can also be used to verify your records for tax purposes, but that is another article as well.

Any complaints, violations, notices, work orders, receipts, etc. should all be kept in the tenant file, with copies provided to the tenants. This file is your insurance policy in case of any disputes, and nothing bolsters an argument better than written, documented proof of what occurred, especially in eviction cases or other legal disputes. This is another reason to document all your encounters with your tenants; a record of all contacts could very quickly end any “he said, she said” type of arguments when it comes to legal matters. If you keep meticulous records, your odds of winning a tenant dispute improve dramatically.

Tenant files should begin with a renter's application, and include a copy of the driver's license or government issued id, credit reports, and any other information that you used when doing a background check of your tenant. From there the file should be expanded to include the move in inspection inventory list, and then any confidential paperwork generated during the course of the tenants' residence. As I said before, meticulous records are a landlords' best friend.

Once a tenant has moved on, I would not recommend immediately using that file as kindling. I have found that it is a good idea to hold on to that file for at least a year, as you may be contacted as reference for a departed tenant, and keeping those files are a good way to provide accurate information to the inquiring party. Nowadays, that is not very difficult to do, because most of your records should be digital; This will allow to keep a record exclusively, without having to invest in another file cabinet or building up massive amounts of clutter.

If you are going to invest in a rental property, I suggest you get comfortable with paperwork, and discipline yourself to document everything … it is vital to the success of your venture!

Should You Hire A Property Manager? 5 Tips To Help You Decide

Once you have a rental property, you need to decide how you are going to manage it. Are you going to be doing everything yourself, or do you want more of a hands off, truly passive income? Answering that question is essential to answering the next question, which is, “should I hire a property manager?”…

Once you have a rental property, you need to decide how you are going to manage it. Are you going to be doing everything yourself, or do you want more of a hands off, truly passive income? Answering that question is essential to answering the next question, which is, “should I hire a property manager?”

There are pros and cons to either method, but the best way to figure out if a property manager is right for you is to take an honest assessment of your goals, as well as your current situation. Ask yourself the following questions and use your answers to help you decide.

1. Do you want to answer emergency phone calls at 2 am? Every landlord has had this happen at least once, and if the situation is bad enough for a tenant to call in the middle of the night, then it is probably something that needs to be addressed as soon as possible. If you do not want to be bothered in the middle of the night for tenant emergencies, you may want to consider a property manager.

2. Do you want to chase down tenants for rent money? It is a fact of life that occasionally you are going to have to confront a tenant about unpaid rent, possibly more than once. Do you want to spend valuable time that could be put to better use playing bill collector? If you answered no, you may want to consider a property manager.

3. Do you want to deal with the eviction process? Every once in a while, you may be forced to evict a tenant; this process can be lengthy and time-consuming, and it is not pleasant for anyone. If you are not prepared or able to spend the time necessary for this process, you guessed it, a property manager may be right for you.

4. Are you handy? An obvious reason to consider a property manager is repairs. If you are not handy enough to stop a leaky faucet in your own home, you definitely are not going to want to try fixing things in a tenants' apartment. In this case, you might not need a property manager, just a reliable repair man, but it all depends on how implied you want to be.

5. Do you have a day job? I saved this one for last because it is the most obvious. If you already have a full-time job and a family, you probably do not want to spend your spare time fixing things in someone else's residence. This is definitely a situation tailor-made for a property manager; your tenants are taken care of, and you do not have to sacrifice what little free time you have.

There are other factors that must be considered before hiring a management company, particularly how much they are going to cost you, (usually 10% of any rented collected). However, if you are looking for a truly hands off investment, or you do not have the time or ability to manage your rental properties by yourself, a property management company can be the answer to your problem.

Commercial Real Estate Agents – Property Management Services and Solutions That Work

When it comes to agents managing commercial property today, it is fundamentally important that they provide real expertise to the process. Commercial property is complex by nature and performance. Experience and knowledge will be part of the core skill sets to be provided to the clients that agents act for. There are a number of…

When it comes to agents managing commercial property today, it is fundamentally important that they provide real expertise to the process. Commercial property is complex by nature and performance. Experience and knowledge will be part of the core skill sets to be provided to the clients that agents act for.

There are a number of key factors to be controlled in the provision of professional commercial property management and leasing services, and here are the main ones:

  1. Make sure you control the tenants within the tenancy mix so that you can optimize their occupancy in the property. A successful tenant or group of tenants will make it easier to improve the rental within the property and keep your vacancy factors lower. As part of this process the property manager needs to get very close to the tenants in an ingoing way. Regular dialogue and meetings regards occupancy and property usage will help the property manager understand developing problems and challenges that the tenant is experiencing.
  2. The management of leases within the property is closely aligned to the tenancy mix and the plans of the landlord. Leases present certain challenges that need to be managed such as rent reviews, options, make good provisions, refurbishments, relocations, and property maintenance. Every tenant to be placed in the property should be matched to a lease that is prepared and aligned to the landlord's property investment plans. Every lease that is negotiated should be approached on the basis of its integration into the surrounding tenancy mix. Look at the bigger picture and not just at the single lease negotiation.
  3. As a property gets larger and more complex, the maintenance management procedures become more sophisticated and critical. A well maintained property allows the tenants to successfully operate their businesses and hence pay the rental. Regrettably a number of landlords will take shortcuts or overlook certain maintenance matters to save on property cash flow. Whilst this may be satisfactory to a point, a poorly maintained property can be easily seen by tenants, customers, and future potential purchasers. Adopt a prudent but wise maintenance management process to support the future of the property for the landlord.
  4. The financial performance of a commercial property is a fine balance between optimizing the income and controlling the expenditure. Realistically, the income to be generated from rents should be appropriate to the local property market but not too high where it can be aggressively destroying the tenancy mix. High levels of rental have direct impact on the tenant's ability to trade. High levels of rental will also move tenants to other properties nearby at the first opportunity. If your local property market has an abundance of vacant space, you need to be very careful as to how you manage and optimize your rental and tenant relations.

Good financial performance within a commercial property is usually obtained by carefully establishing a property budget prior to the commencement of each financial year. The landlord and or property manager will have relevant discussions as part of putting this budget in place.

It is of note that a property with high outgoings or levels of expenditure will become unattractive to new tenants in any lease negotiation. If tenants are too worried about the levels of outgoings within the concessions as part of the lease negotiation, then they are likely to request a gross rental from the landlord to remove the uncertainty of outgoings escalation.

These are some of the big reasons why commercial property management is just so special; landlords need skillful agents to help them, and not inexperienced generic agents. Agency staff and personal applied to the commercial management and leasing process should be suitably qualified and very experienced. Landlords expect the best property management service and this only comes from the right personnel exercising the correct commercial property management processes.

How Should Landlords Deal With Tenants’ Union?

Aside from the fact that being a landlord is a tough task to handle for many especially the uninitiated, prospective landlords should also consider that it is full of surprises. No matter how you prepare yourself to take on the duties of being a full-time landlord, there is still the chance that you would be…

Aside from the fact that being a landlord is a tough task to handle for many especially the uninitiated, prospective landlords should also consider that it is full of surprises. No matter how you prepare yourself to take on the duties of being a full-time landlord, there is still the chance that you would be made unaware of an issue like your tents forming a union.

If you are a landlord owning a large apartment complex and your tenants decided that it is within their right to create a union, would you know what to do? There are certain things recommended for a landlord to stick to when such an occasion arises. We will look at these things in this article.

The first thing that you should do as a landlord is to go on a fact finding mission. You have to learn the reason behind your tenants forming a union. It is possible that your tenants may have issues with you as the landlord or the property manager you hired. But keep in mind that an issue would have to be significant large for them to decide that it is in their best interest to form a union. Be swift in learning what their concerns are so that you can come up with a remedy that would appease them as long as it is within your list of responsibilities.

Fixing the problem is recommended to be taken in a two-step plan. First, swiftly remove the reason why your tenders are up in arms so to speak. Surprise them by fixing the things they have an issue with. The next step is to go further. This means making positive changes that would lead your tenants to be outstanding ones mobbing forward.

When fixing the cause of the problem though, make sure that you do not cave in to unreasonable claims. For instance, if they are organizing a union because they want to force you to lower the rent even if the market does not dictate it, be tactful and explain to them that their agreeing to their demand is not reasonable. Also, caving in to unreasonable claims would not do much to earn their respect.

After making the changes, try not to be proud about it. That will only make you look like a braggart and that will not help in winning their respect. It is better to have them realize that their problems have been solved without much fanfare.

By knowing how to deal swiftly with the aforementioned issue, you would have an easier time attaining success for your business.

Common Legal Mistakes Every Landlord Should Avoid

To be a successful landlord, you would need a combination of know-how about the business, and a good work ethnic to name a few important things. Where know-how is concerned, you have to be well-versed with every facet of the business. If you fail to do your homework as far as understanding the business you…

To be a successful landlord, you would need a combination of know-how about the business, and a good work ethnic to name a few important things. Where know-how is concerned, you have to be well-versed with every facet of the business. If you fail to do your homework as far as understanding the business you are in, you are opening yourself to a world of risk.

For instance, you can easily find yourself in legal trouble for a small slip-up. That said, we will look into some of the most common mistakes that landlord can make that would ever land them in court.

Every landlord knows that it is important to have a lease agreement that both parties would have to sign. After that though, many landlords fail to see the importance of drafting their own agreement. One might think that a generic lease form would do because he or she only has one rental property and there should be no need to make that extra effort to draft a lease agreement when one can just find one online and print it.

The problem with using a generic lease form as is is that you are not sure whether it is up to date. Let's say that said lease form was made two years ago and last year, a particular regulation concerning tenancy in your state was amended. If you use the outdated lease agreement, you could find yourself breaking the new law in place.

Another major responsibility that a landlord has to shoulder is screening tenants. Without a proper screening system in place including interviews, one could find himself with a bad tenant. During the interview process though, the landlord should keep in mind that there are questions that could land him or her in legal hot water.

Some questions can be construed as a form of discrimination. Due to the Fair Housing Act, it is illegal for a landlord or the property manager to ask about possibly questioning question concerning religion, disability, ethnicity, and similar things.

Charging late fees is a common practice for landlords to ensure that their tenant would be motivated to pay the rent on time. If you are going to do this, make sure that you charge only within the limits set by the government agency concerned. Going over the limit could result in the tenant taking you to court.

These are just some of the most common mistakes that landord can commit which could lead to a bunch of legal problems. Whether you are going to manage your property on your own or you will hire a property manager, it is important that you commit these things to mind in order to avoid them.

Tenant Injuries: When Are Landlords Responsible

Owning a rental property and managing it to ensure success is not an easy task for anyone especially greenhorns. If you are therefore looking to make your first venture in the rental property business, it is important that you understand what you are going up against. By understanding the challenges ahead, you would be better…

Owning a rental property and managing it to ensure success is not an easy task for anyone especially greenhorns. If you are therefore looking to make your first venture in the rental property business, it is important that you understand what you are going up against. By understanding the challenges ahead, you would be better prepared moving forward.

Since there is a ton of things you need to learn about the industry, it is recommended that you take this on one step at a time. Understanding every responsibility you will have as a landlord prior to investing heavily in rental properties would make it easier for you to be prepared. One thing for example that you need to pay attention to is your responsibility regarding tenant injuries.

When it comes to tenant injuries, the first thing that a landlord should keep in mind is that he or she will only be responsible if he or she was negligent in maintaining the property which historically caused the injury. With that said, the tenant needs to prove several things before they can claim that the landlord is liable for the injury.

First off, the portion of the concessions that caused the accident should have the responsibility of the landlord to maintain. After that, the renter should also prove that the landlord has not taken steps to correct the issue because resulting to an accident. The problem should also not be prohibitively expensive. If the tenant is genuinely hurt with matching medical reports to prove it and it is clear that the landlord was negligent in fixing up an issue that directly caused the accident, then the landlord would be liable for the accident.

If these things can be proven by the tenant, they can file a personal injury law against the landlord's insurance company. The lawsuit could demand payment for medical bills, lost earnings, emotional distress, pain, disfigurement, or permanent physical disability depending on what applies.

A landlord's duty should there before be taken seriously. If an issue with the property has been reported, it is vital that the landlord should work to have it fixed as soon as possible. If you are looking to be a landlord and you are not much of a fixer upper, you can always hire a rental property manager that can handle repair and maintenance responsibilities for you. While this would slowly reduce the alertness potential of your business, it should be viewed as one way of protecting the investment.

Rent Collection Issues For The Property Manager

Of the many responsibilities that the landlord or a property manager has to handle, one of the most important things related to the income-generating part of the business is collecting the rent. Without a proper system that is to be followed in collecting the monthly rent, the whole business can end up in not learning…

Of the many responsibilities that the landlord or a property manager has to handle, one of the most important things related to the income-generating part of the business is collecting the rent. Without a proper system that is to be followed in collecting the monthly rent, the whole business can end up in not learning as much as the landlord would want.

For the landlord or the property manager, it is important to think about collecting rent as an issue that does not begin on the date when it would be due. In fact, it would begin the moment the tenant fills out the rental application.

When it comes to assuring that the potential tenant can pay the rent on time, the landlord has to check past rental references provided by the applicant. The property management company should also perform credit checks. The tenant should also be interviewed. If the landlord can screen tenants to ensure that they would be able to pay on time, then the next step in rent collection should be considered.

The lease agreement should be very clear regarding the issue of rent collection. In drafting this agreement though, the landlord or the manager should make sure that the important points are highlighted and easy to understand. For instance, the date and time when the rent would be due should be stated in the agreement. The tenant should also be made aware where the rent is to be paid. Of course, if the tenant fails to pay the rent on time, the consequences should also be included in the rent agreement. If the tenant signs the rental agreement, then they would be legally required to follow it to the letter.

When setting the consequences for late payment of rent, the landlord should take into consideration the fact that sometimes, even good tenants can fall on bad times. This could result in the tenant paying the rent late after years of paying it on time. The management company or the landlord should know how much latitude they can provide to a good tenant that has been occupying the property for an extended amount of time.

By taking these things into consideration, the landlord or the property management would be able to create a system for rent collection. This would allow the business to achieve its maximum e-learning potential. Being an investor, one of the largest goals should be getting good return on the investment and with a good rent collection system in place, getting good return within a small amount of time is very possible.