The Good, The Bad, And The Ugly Tenant Issues

By Elaine Bernabe

As a landlord, one has to understand that dealing with tenants is one vital part of the job. Even if the landlord hires a property manager to handle the bulk of the responsibilities and duties, he or she has to deal with the tenants in an indirect way. When dealing with tenants, the landlord has to be ready for the good, the bad, and the ugly issues that are bound to crop up.
Knowing some of these issues before they have a chance to rear their head is one way for landlords to ensure that they would be on top of every facet of their business. In connection, we would look at same instances of the good, bad, and ugly issues in this article.
Starting with the good issues, if you lucked out and got yourself a very good tenant that pays on time and takes care of the rental property then you are in good standing. The only thing that you have to worry about in this case is how to make the tenant feel appreciated to ensure that they would re-up once the current lease is over. You can give them some small gifts in any form. Or, you can do the best you can to attend to any maintenance problem the tenants may report.
There are times though when the landlord would have the bad luck of getting a bad tenant. These are tenants who pay the rent late frequently. They may also be annoying to their neighbors. A chronic complainer can also be considered as a bad tenant.
When dealing with this sort of tenants, it is best to keep documents regarding them. For example, any complaint from neighbors in writing should be compiled. When it comes to late payment of the rent, be sure to document it too. This way, if things take a turn for the worse, you would have supporting documents when you evict them.
The ugly issues would have to include non-payment of rent, rule-breaking, and being a general problem. If things get to the point when nothing you can do or say can make the tenant change, the only option would be is to evict the tenant. The process of eviction can be a complicated one too and it is therefore important for the landlord to be aware of it. In cases like this though, having a property manager that can handle the issue for you would be the best case scenario.
Elaine Bernabe invites you to visit http://www.saltlake-propertymanagement.com/Salt Lake Property Management Lake Property Management to learn more information about www.saltlake-propertymanagement.com Utah Property Management and how to grow your rental property business.
Article Source: http://EzineArticles.com/?The-Good,-The-Bad,-And-The-Ugly-Tenant-Issues&id=7015697 The Good, The Bad, And The Ugly Tenant Issues

My Renter Quit Paying Rent-What Should I Do

by Marco Santarelli

Non-payment of rent is a serious problem. It's one of those predicaments that places the owner in a hard situation. Moral and ethical values are sometimes challenged by the need to collect the rent. If your one two choices are to evict a family that has fallen on hard times, or to go weeks or months without getting paid, the right choice isn't always apparent. Most owners have a conscience and genuinely care about the safety and contentment of their tenants. So the challenge is finding a solution that works out well for your tenant, and also for your net result.

Being caring and compassionate is great, but at the close of the day, you depend on that rental income to pay for some, or even all of your debts and costs. We're going to talk about some options that aren't always clear. This includes the right way to have an open and effective discourse with your tenants, an effective strategy that may work out well for both parties, as well as the best plan for securing the rent. This will give you the information and attitude you require in order to be profitable and successful.

If you have a renter that is past due on the rent, then sitting down with them and having an open and sincere discussion may end up being really constructive. Most tenants who are coping with fiscal issues will be very pleased to have a talk. In the bulk of cases, they feel guilty and burdened by not having the ability to pay the rent in good time. It's an uncomfortable situation for both parties. So it's critical for both the landlord and the tenant to get their thoughts and feelings out in the open. Keeping it all suppressed will only create more anxiety and stress. Provide your renter with the opportunity to explain their scenario. Permit them to tell you in their own words why they are unable to pay rent charges.

Perhaps because of the state of the economy, their company decided to downsize which suggested terminating their position. Or maybe they had to handle health concerns that drained their checking and saving accounts. It's also possible that their auto broke down and needed repairs. In order to get it fixed so they could continue traveling to work, they had to give their rent cash to the mechanic. These are all eventualities that will prevent your tenants from paying their rent. But as the landlord, you also have to make your position known. Tell them that you also have bills and expenses every month. And since the bank won't give you more time on the home loan payment, you aren't able to give them more time to pay their rent.

Before threatening them with eviction, and we only suggest that as a last possible resort, see whether their cashflow difficulty is short-term or long term. If they recently lost their job, or had to cope with other bills and costs, it may only be a temporary problem. If that's the case, and their payment history has been solid up to that point, it might be silly to eliminate a good renter who dropped into a bad situation. Alternatively, if the difficulty will take more than a few weeks to solve, then your best plan of action is to get them out of the rental unit. You can't have a tenant living rent-free for an extended period of time. In order to do that with the absolute minimum amount of drama possible we suggest making the renter an offer that they can't refuse.

One attractive offer is usually to give the tenant a 5 to 7 day window for packing, cleaning, and moving out of the unit. And as a reward for their cooperation, you agree not to follow any back rent. You also agree not to file a legal action or eviction papers. Going the legal route for removing a tenant can be timely and costly. It will also cost you seriously more than the back hire they owe you usually. So it's one of those scenarios where you're better off simply cutting your losses. For the renter, they may also avoid having an eviction on their credit report. This is great because an eviction will destroy their FICO score for a few years. Once that occurs, it can be incredibly difficult to do anything in life which requires a background check for approval.

Most tenants experiencing financial problems will jump at an offer like that. Even if it's not what they want to do, it'll keep them out of court and protect their credit. If they are still on the fence , however , you can sweeten the bargain by employing the "Cash for Keys" Technique. This is when you offer the tenant a specific amount, typically a couple of hundred bucks, in exchange for the keys to their unit. It might not seem like rather a lot , however it might truly help them out with gas and moving costs. This may be the honest to goodness difference between the renter accepting or rejecting your offer. But at the close of the day, when talking about dealing with a tenant who is behind on the rent, communication is imperative!

Talk about the problem in order to get the best solution.

[For more articles like this please visit our Rental Property Investing Blog.]

About the Author:

Marco Santarelli is an investor, author and founder behind Norada Real Estate Investments — a nationwide property investment firm providing turnkey rental property in growing markets around the United States. "My Renter Stopped Paying the Rent - What Can I Do?" was originally published on our Real Estate Investing Blog.

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Impossible Real Estate Investment Loans

It seems as though everywhere you turn some newspaper or economist is announcing the end of the recession. While this may be true theoretically, little has changed as far as the literal economy goes. Recently, John O'Bryan (vice-chairman of real estate giant CB Richard Ellis) announced that while things may appear optimistic, the investment real estate game isn't picking up any speed.

In fact, CB Richard Ellis believes that the "global recessionary impact on the commercial real estate market has yet to run its course." Commercial real estate investments are simply at a standstill due to various factors, most of which are directly linked to the recent lending crisis.

Simply put, "the credit crisis and ensuing recession have dragged commercial real estate markets into very trying times... (Reuters)." Even if potential investors were interested in new commercial real estate ventures, the likelihood that lenders would consider approving new investment loans is slim to none.

Instead, lenders are holding onto their money as tightly as they have been since the recession began. Is the recession truly over? Not from a commercial real estate investment point of view. Some may even argue that the investment recession has just begun. Until lenders are willing (and able) to begin lending investors funds once again, there isn't much hope for the commercial real estate investment market.

Or is there? As some investors have recently begun to find out, there may be a way to gain investment dollars after all. Private lenders are now stepping in to pick up where traditional lenders have left off. With little more than an owned vehicle, lenders are able to secure the funds that they need to invest in commercial real estate.

Through the use of Car Title Loans, investors can quickly and efficiently gain needed monies. These loans only require that an investor owns a vehicle in good working condition. The better the vehicle in question is, the more money that a lender can secure.

While there's no doubt that the traditional lending route has hit all kinds of roadblocks, private lenders are ready and willing to create alternate ways for lenders to gain funding. No matter what newscasters and economists are saying, the economy is far from fixed.

Investing in commercial real estate is a great way to ensure that your money grows, just don't wait around for traditional lenders to start approving loan applications once again. Instead, look into a private loan and lock down your commercial investment.

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Should A Person Wish To Be A Landlord?

Any Search on the internet for the key phrase “making money in real estate”  produces more than 400 MILLION hits. Should you be one of those looking into possibly making an investment in real-estate a very important factor is precisely what will happen after I obtain my initial property and accept the identity of Landlord?

 

Owning along with managing investment real-estate can be at once satisfying as well as irritating. It can open the door towards a financially rewarding safe future or produce economic devastation. One of the secrets of achieving success is understanding what to consider and what to look out for in identifying property, tenants along with alternate revenue sources. Finding a good property, keeping it filled with paying reliable tenants, and selecting other ways for your properties to bring in hard cash will help ensure your experience in landlording is a favorable trip.

 

The first step along the path to profitable property investing is without a doubt finding a respected Real Estate professional that can help with your research. Look for one that's experienced with income producing properties not simply a residential specialist. Using a Professional does not lessen the importance of teaching yourself on the simple steps to finding the most suitable property for your requirements. Try to remember you are the one putting the cash at stake.

 

Once you have a professional to help you with the hunt, it is essential to look for a property that is priced properly, without the necessity for big repairs, as well as absent any potential tenant problems.

 

Pricing income producing properties differs from what you might be used to when shopping for your house. The value of your individual residence is usually determined by acreage and structure worth dependent on location as well as features. These kinds of parameters are just one aspect of prices of a revenue producing property. The most important value component is the quantity of net income the real estate is going to produce. A phrase you are going to hear regularly and ought to understand well is Cap Rate.

 

Cap Rate is a simple calculation that's determined simply by dividing the Net Operating Income of an apartment by the price. It is commonly expressed in percentage. It is best to evaluate the Cap Rate associated with a property you are looking at buying to make sure it is in line with other properties in the same general location and with similar general features. One side note, the Cap Rate is also a loose comparison between return for an investment in real estate and various other non-real estate investment strategies. As an example, you could utilize a Cap Rate of 8.0% to compare to the expected yield on the same amount of money invested in the stock market or perhaps a Certificate of deposit.

 

Nothing could mess up your investment quicker than a major repair. Whenever you do a walk-through of a property you should pay special attention to high cost/high maintenance things for example HVAC systems, roofs, electrical and plumbing systems. Prior to making any final purchase the property should really be adequately checked out by a professional who's experienced in the type of property you are prepared to purchase.

One particular record that should be component of your overall review is the rent roll from the present seller. The rent roll lists each individual unit, the amount of rent being paid, along with a report on when the payments have been made. This will give you a overview of any current payment concerns. In addition, notice during your walk through the fitness of the actual apartments, cleanliness and so forth. Plus look for any other warning signs that challenges could be in the near future. If there is an opportunity to talk to any of the tenants, pay attention closely. They will often discuss interesting and significant insights. I once entered a rental apartment only to be greeted by the current tenant’s pet pit bull, not aggressively, but he had one. Later on, another renter shared that he had been in fact raising pit bulls in his apartment and that he had once been accosted by a litter his neighbors pups while he was grilling a cheeseburger on the smoker out back of the apartment building. This individual had been unharmed; unfortunately his cheeseburger wasn't so lucky.

 

Being the owner of along with managing residential rental properties can certainly be a gratifying and lucrative experience. Just be certain and make the right choices along the route.

Equipping The Landlord Workplace

As with any entrepreneur, it is important that the Landlord possess an office at home where you can conduct the business of operating an enterprise with no interruption. This can be especially significant for the part-time landlord. Getting the time set aside is challenge enough. Possessing an efficient workspace is vital to maximizing that time. Let's jump into some terrific dwelling workplace ideas.

Initially see if you can come across a space that can be dedicated for the house office. Strive for any space out of frequent visitor areas to permit you to function without having distractions. Even the smallest apartments can offer you private spaces for those who get creative. How about that closet which is just wasted space? Consider moving the junk out and creating a private nook for your household workplace.

Once you have identified the space, it is time for you to start off equipping yourself for conducting the business of being a landlord. Each and every home workplace space begins with the desk. Whether you go classic or contemporary your desk should really be of adequate size to match your electronic necessities (additional on that later) you should still allow space for the inevitable paperwork. Desks can be obtained for very reasonable costs at any workplace retailer, discount retailer, or wholesale club.

Now that you simply have your desk you'll need a comfortable office chair. Just in case you plan on spending significant time at your desk, you will be properly severed to invest a little bit more for an office chair with an ergonomic style. Although chairs with ergonomic style will price a little bit much more, you'll be glad in the end of a lengthy day. So what exactly is most essential and often accessed tool on your new desk?

The computer. Here you've a lot of selections in addition to a wide price tag variety according to your requirements. You'll be able to go for the high-end sophisticated choice and go with the Apple iMac. Deemed by lots of as the cutting edge of computer technologies, doing a little searching it is possible at times to locate Apple iMacs at decreased costs in case you are willing to settle for an older model. Of course the most common...and most cost competitive computer systems are the Windows Based PC. Windows Based Computer are readily available from many different manufacturers and retailers and may generally be located in package deals that include things like monitors and printers that you will need for less than $500.

Now you've got your desk, your chair and your personal computer. What will immediately become your most beneficial tools is definitely the variety of software program programs you select to handle your enterprise. One of probably the most broadly used and accepted enterprise software programs will be the ubiquitous Microsoft Office. Accessible in unique configurations, Microsoft Office Home & Business enterprise version has all the key parts in the suite you will need including word processing, spreadsheet, presentation and email management. You won't want to stop with just MS Office. You will need some way to keep track of the money.

Unless you happen to be a trained accountant, certainly one of the easiest ways to handle the financial aspects of your enterprise is Intuits QuickBooks. QuickBooks is easy and intuitive even for the non-accounting major. You enter your transactions a lot like you would any home financial tracking computer software such as Quicken.

In today's fast paced world small organizations rely  much more on the mobile phone for communication, well what about the FAX? You may want to contemplate a FAX to Email Service. These services present a way for you to receive a FAX anytime anywhere via email. Now you may process tenant applications efficiently even when you happen to be out on the office. Don't forget your online presence either. Even should you be a computer system novice, most of your on-line service providers have easy to use platforms and readily obtainable customer service making it a snap to develop your online presence.

You are now off to a terrific start in your house workplace. You may want to add items as you go things like backup service for the computer, Filing Cabinets, and workplace supplies. Be a good shopper and look for bargains to save cash. Check with us routinely at landlords1call.com for guidance to help you run a cost-effective and profitable business enterprise.

The Best Property Management Is Free

There are many property management companies in the marketplace today. All companies have their own charges and fees that you must incur to contract their services. The truth is that the only property management companies that you should hire with are the companies that are FREE.

I know everyone believes there is nothing that is "free" and this is true in general but not from every perspective. When I refer to Free property management, I am talking about a property management company that provides added value to the properties that it handles. A value that would be unlikely to be reached by the owner managing the property themselves. Let's examine the value of good property management. Value can be expressed in many terms such as equity, lower turnover, higher rents, lower maintenance costs and most importantly, time. Time is the most important asset that exists. Simply put if you had all the money or goods in the world but you had no time to enjoy them, you don't have much.

Many property owners have full time jobs, family obligations, and little time to manage the property they own to maximum efficiency. Some of these owners work long hours in an attempt to "save" money by not hiring a property manager. After we examine this practice we will see that in most cases the property owner is actually losing money, and more importantly losing time.

The old saying "Time is money" will be a cornerstone of our analysis. Let's say the property owner in our example is an employee at XYZ Corp and is paid $20 an hour. A general price for property management is somewhere around 10% of collected rent. So we will pretend this owner owns a two family rental property and each unit rents for $700. That means the fee for professional management of this property will be in the area of $140 a month (10% of 700= $70 per unit , times 2 = $140). That equals 7 hours of income for the owner. So if managing this property takes more time than 7 hours a month, or the management of the property interferes with the work of the owner than the owner would actually be better off with a professional property manager.

The time analysis shows that there is not a lot of money to be saved by managing the property yourself, especially if you could use your time towards work you are paid for. However, the time analysis does not show the complete benefits of property management. If property management was easy and predictable there would be no property management companies. We all know that real estate repairs can pop up seemingly out of nowhere and late tenants can turn into evictions at any time. The main cost occurs during these times, when you need to evict tenants, repair the property, advertise and attract new tenants, and lease the unit to get rental income again. These are the times when property owners with other obligations really lose time and money. You see if a property owner is unable to manage the issues efficiently and loses just one month of rental income, they would have lost enough money to pay for close to a full year of professional property management in many cases!

Good property management will allow you more time to create income or spend time with family and friends. More time is a good enough reason to hire a property manager but that is not the end of the benefits. In addition efficient management will be able to pass savings on to the owner for routine repairs and maintenance through network contractors and vendors. They will be able to make smooth transitions from vacancies to new qualified tenants and maximize Cash flow. So I will conclude by urging property owners with other obligations to strongly consider professional property management, because sometimes the cost of trying to save money is just too high.

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Why Savings Money Is Important To The Rental Property Investor

Real estate investments, particularly in rental properties, have always been considered one of the best ways to accumulate wealth. Rental property investment, given the prevailing market, offers encouraging potentials in terms of return on investment, but it likewise entails costs, far above general expectations. The rental property business requires that an investor should be very dedicated and familiar with the nitty-gritty aspects of the business.

Most investors who are entering the business for the very first time generally don't give much thought to the innumerable expenses associated with rental property investment and real estate, on the whole. In the real world, you need to have considerable savings as back up funds before jumping in and in anticipation of surprise expenses that ordinarily accompany Metrics rental property management.  

A reason why it's advisable to have at least a total of half a year's worth of mortgage payments in savings ahead of investing in rental property is that tenants are not always predictable. It is common for a unit to end up unoccupied, and will need some repair or renovation before it can be occupied again; in this case there is cost of renovation involved as well the cost of an empty rental unit. Major damage caused by tenants is unusual, but it's a likelihood that you should not ignore.

A landlord is also likely to encounter non-paying tenants and if this happens, it usually takes some time to complete the eviction process to make them vacate the property and the unit becomes available for the next tenant. Although they are liable to pay you their outstanding balance on the lease, you can't be certain they can or will actually pay you what they owe. This risk, while it can be minimized through careful screening of likely tenants, has been experienced by even the most experienced landlords.

As well you need to have some money saved up for any unforeseen emergency. Septic tanks are likely to back up, appliances might suddenly stop working, or heating and cooling systems can break down. Pipes that get frozen can cost a lot of money to cleanup or repair, and acts of nature can even cost you big time. With enough savings money, you can immediately fix any broken item/items in the property, thus keeping it safe and in working order for the protection of your tenants as well. Check out the link to get more information on rental property Supplies.

Saving at least six months worth of mortgage payment goes beyond making sure you get to pay your mortgage promptly, it's also about being prepared to face any problem you may encounter at any time. Rental property management can indeed be very risky compared to regular property ownership and you must be prepared to take on anything that comes your way promptly, efficiently, and most importantly, financially.