It’s sad, but true that even the most carefully screened tenants may one day end up violating lease provisions. And that’s because while most people want their living quarters to be clean and in good repair, not everyone will actually do the work necessary to keep a home in shape.

So how does a busy landlord nip problems – like dirtiness, an illegally kept pet or missing smoke detectors  – in the bud?

The best way is to have both routine and the occasional surprise inspections. During those times, you may notice trash/debris problems. Or you may see a proscribed animal on the premises or – even more dangerously – smoke detectors that have been taken off walls or deliberately disabled.

After you’ve noted down the problem, the next step is to immediately send written notices to the tenants in violation of lease provisions. This way, you make offending individuals aware of the problem and allow them to take steps to rectify the situation while also showing that you care about your property.

Of course, you could opt to talk to the individual(s) involved. But a face-to-face meeting or telephone conversation will not create the paper trail you may need in the event you have to eventually take your tenant to court. In fact, verbal communication may lead to confrontation and argument, both of which you would be wise to avoid.

Land-lording is a full-time job. That’s where the real estate experts at Herman Boswell come in. We help you keep up with the challenges of people and property management. You have a life to live: and we help you live it. Contact us today!

The post WHEN A TENANT VIOLATES THE LEASE AGREEMENT appeared first on Herman Boswell Property Management.

Everyone wants to live in a safe place. But when you talk to potential tenants about your rental property, you shouldn’t  tell them it’s a totally safe area because you cannot predict the future and an attempted break-in is always a possibility.  However,  there are a number of things you can do to enhance tenant security.

1. Make sure the property you are renting out is in compliance with local housing codes

You can get this information from the building or housing department, the health department and the fire department. If your property is part of the neighborhood association, find out whether that organization provides free security checks. Remember, if you don’t act reasonably to meet local housing codes, you may be found negligent if any harm comes to your tenants.

2. Be proactive about fixing broken doors, locks and windows and keeping your property well-maintained

If you have not made the necessary repairs to a rental unit to ensure its safety and a burglar enters the premises, your renters may decide that you are liable and seek damages in court. Your best defense is to prove that you installed the locks on doors and windows, had a well-lit entrance  and kept shrubs and trees pruned so no one could hide behind them.

3. Take appropriate safety measures on the inside and outside of your rental unit

Even if local housing codes don’t require it, you may want to consider putting in handrails on the stairs if they are not already there. You’re not obligated to put a handrail  or nonslip tile in bathroom floors or to tack down loose carpet ends. However, anything you can do to improve safety for your tenants is well-worth thinking about.

Some other measures you might want to take include:

•  installing burglar alarms and smoke detectors;
•  putting a fire extinguisher in the kitchen;
•   putting a peephole in your tenants’ door;
•  changing locks after one renter moves out and before another one moves in; and
•  installing window pins that keep windows from being opened more widely.

At Herman Boswell, we know how difficult–but also how crucial–it is to keep up with property safety issues, particularly if you’re renting multiple units in different locations. Our experts make it their business to do all the things busy landlords like you can’t, such as following up with tenants about potential security problems.  When you need the help of trusted professionals to help you make the most of your real estate investments, contact us!

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Once someone signs your lease, you as landlord are legally bound to follow the rules and regulations as much as your new tenant.  You should also know that state and federal laws further govern how and under what circumstances you may terminate that lease.

Generally speaking, though, most states including Texas allow a landlord to terminate a lease or rental agreement if the tenant:

• fails to pay rent
• violates a clause in the lease or rental agreement, such as a no-pet or subleasing without permission clause
• violates a responsibility imposed by law, such as causing serious damage to appliances or the property, participating in illegal activity, or interfering with other tenants’ peaceful enjoyment of the property

If you find you must terminate a lease or rental agreement, you must send the tenant a notice of termination.  If the tenant continues to remain in the rental unit after receiving a termination notice, only then can you file an eviction lawsuit.

Eviction itself involves the court-ordered physical removal of the tenant and his or her property with the assistance of the police.  To begin the actual process, you must first must file a complaint with the court and wait for the tenant’s answer.  If the court rules in your favor, then you will be legally entitled to repossess the property.  If the tenant refuses to leave after receiving the notice of eviction, then you have the right to ask that a law enforcement officer forcibly remove the tenant.

By contrast, if a tenant illegally breaks your lease without a legally protected reason, then you have the right to sue for damages.  But you must mitigate damages by making a reasonable attempt to re-rent the unit.  If you find that you incur damages beyond what remains from the tenant’s security deposit, then you may sue the tenant for:

• the time the unit remained vacant
• the cost to find a new tenant
• attorney fees, if provided for in the lease agreement

The legalities of being a landlord are complex.  Often, they require more time than busy landlords like you can afford to invest in understanding them.  That’s where Herman Boswell can help.  Our property management professionals are schooled in every aspect of landlording, including the legal ins and outs associated with it.  For the real estate savvy more North Texans trust, contact us today!

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No matter how careful you are with your records, a tenant can still sue you over the return of a security deposit.  You can minimize the chance that you’ll have to go to court to haggle over back rent, cleaning costs and damage to your rental property by taking these four steps:

1: Review Texas laws for returning deposits

Texas gives landlords 30 days to itemize and return a tenant’s security deposit.  Put your itemization in writing and state how much you have applied toward back rent, cleaning costs and damage repair, along with how much a tenant can expect to receive in return.

2: Prepare a move-out letter

When a tenant gives you notice that they are ending tenancy, prepare a move-out letter that clearly and specifically states:

• the exact condition in which you expect your unit to be left
• your final inspection procedures
• the kind of security deposit deductions you can make
• where and how a tenant should return keys
• when and how you will send any refund that is due

3: Inspect the unit

To minimize disputes, do your final walk-through alongside the tenant rather than by yourself.  Also be sure to use some kind of inventory or landlord-tenant checklist when the tenant moved in so that you can compare the condition of the rental at the start and end of the tenancy.

It’s also smart to photograph or videotape the premises so that you have visual proof of what the unit looked like when the tenant moved out.  Ideally, you’ll also have done this before the tenant moved in so you can see any important differences.

4: Create an itemized deduction statement

After you’ve inspected the unit, prepare an itemized list of deductions for cleaning, repairs, back rent or other financial obligations required under your rental agreement. List each item, for example, a dirty carpet or damaged kitchen appliance, and the dollar amount of the deduction.  You may also wish to attach receipts, especially if you’ve already seen to the necessary repairs and/or replacements.

There’s no doubt about it: conscientious landlording takes time and effort.  That’s where the experts at Herman Boswell come in.  We’re here to help you manage your property investments and give you the peace of mind you deserve.  Contact us today!

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It’s important to trust your tenants. But if you have evidence that that renters are involved in illegal activities such as selling drugs, then you need to take steps to end their tenancy as soon as possible.

This is especially important if you are a landlord in the state of Texas.  Even if you didn’t know that any criminal activity was going, you can still be held liable should anyone be injured as a result of illegal activities. It’s absolutely critical, therefore, that you get help from such authorities as the police or your neighborhood association to help you mount a case against law-breaking tenants.

Your rental agreement should include a paragraph that clearly states that drug use and/or other criminal activities will not be tolerated on your property. Let renters know that you will terminate the lease and evict them immediately if you have evidence that anything illegal is taking place. If a tenant makes allegations against a neighbor, check it out: you can’t afford not to.

You should also make sure to run thorough background checks on all prospects. However, be aware that if you have more than four units on your rental property, state and local fair housing laws do protect former drug abusers. The only way you can refuse rental to such an individual is if he or she was convicted of selling or manufacturing drugs.

At Herman Boswell, we know how critical it is to stay on top of what happens on rental properties. We also know that effective tenant management takes skill as well as one thing most landlords never seem to have enough of: time. That’s why we have a team of dedicated specialists to help you take care of all your property management needs in the Arlington area. When only the help of trusted real estate experts will do, contact us!

The post HOW TO DEAL WITH LAW-BREAKING TENANTS appeared first on Herman Boswell Property Management.

Legally, you can use the information you receive through a background check in your rental decisions.  But beware: you must follow state and federal laws very carefully when you (1) obtain a background check and (2) notify a tenant of a housing request denial.

Get permission to do a background check in writing

When you do run a background check, federal law requires you to get a prospective tenant’s written permission.  Smart landlords typically will include this request in their housing applications so they get everything they need at once.

Determine your rental criteria and apply them fairly

You are free to set your own business standards for using tenant background checks in application decisions.  However, it’s in your best interest to ensure that you and any employees you may have are consistent in how you apply these standards to avoid charges of discrimination.

Understand the dos and don’ts of adverse actions

Federal law also requires that you notify a tenant in writing if information from a background check results in an “adverse action” against the tenant.  An adverse action can take the form of:

• an outright denial of the housing application
• requiring the prospective tenant to pay extra security deposit
• having him/her get a co-signer

If you do take an adverse action against your applicant, you must inform the person of the name and contact information of the credit bureau or tenant screening agency, as well as information on how the tenant can get a free copy of this report.

Watch out for criminal background exceptions

While it’s legal for you to deny a prospective renter housing because of a criminal background, a significant exception does exist to this rule.  You can refuse an applicant who has conviction for drug sales or manufacture, but federal disability laws protect recovering drug users.  Bottom line: you cannot use a conviction or simple possession or use of drugs to deny someone housing.

Keeping so many important details straight is one of the most daunting tasks busy landlords face.  But Herman Boswell can help.  Our real estate experts make it their business to stay abreast of all the rules and regulations that affect property management. For the peace of mind you deserve, contact us today!

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When you’re a landlord, not only do you have to worry about the usual headaches like leaky pipes and broken appliances, you’ve also got to steer clear of legal mistakes that could get you into a lot of hot water.

Be careful what you ask

The federal Fair Housing Act prohibits a landlord from refusing to rent for reasons pertaining to race, color, religion, national origin, sex or gender, disability, and familial status.  You should therefore avoid asking questions that may appear discriminatory or suggest an intent to discriminate.

Make proper health and safety disclosures

You need to tell prospective tenants whether certain conditions or situations apply to your rental property.  These typically include:

• notice of mold, when you know or have a reason to believe it exists
• notice of sex offenders that live in the area, if you have knowledge of this
• disclosure of recent deaths that occurred in the rental unit
• disclosure of lead-based paint if the property was built before 1978

You also need to take basic safety measures, such as providing locks and adequate lighting.

Repair as necessary

Every state imposes an “implied warranty of habitability” on all rental units.  That means that even if your rental agreement does not specify who is responsible for certain repairs, you must still make sure that the rental property itself is fit to live in.  Failure to make major repairs, especially when a tenant requests them, can result in a lawsuit.

Respect tenant privacy

You should never enter a tenant’s rental unit without first giving a 24-hour written or verbal notice, and this only when showing the unit to a prospective tenant, making a repair or inspecting the property.  The only exception to this is when an emergency occurs.

Being a landlord is tough, especially if it’s not your primary job.  But Herman Boswell can help.  Our real estate management experts have the skills and knowledge to protect your investment and offer you the peace of mind you deserve.  Don’t hesitate: contact us today!

The post LANDLORD MISTAKES TO AVOID appeared first on Herman Boswell Property Management.

The house money in human hands

PRICING YOUR RENTAL FOR MAXIMUM PROFIT

Getting the best price for a rental property may seem easy to do.  But the minute you begin looking more closely, it becomes clear that there’s more to rental pricing than meets the eye.

First impressions matter

When renters evaluate a rental property, they are not only looking at things like appearance, size and features, they are also sizing up the person doing the showing.  So the more professional and reliable you come across, the more prospective tenants will be willing to pay for your rental.

Do the homework

Before you actually start talking to tenants, you’ll need to know exactly how much you can, and should, ask for your unit.  To do this, you’ll need to look at the rental rates of comparable properties in and around the area where your property is located.  That way, if a prospective tenant should question the price, then you’ll have a basis from which to push back.

Stay aware of trends and laws

Make it your business to stay on top of trends in both the rental and real estate industry.  This means reading studies and reports for the facts and figures you need to help you make sure that you are not only pricing your property well, but also marketing it correctly.  You’ll also need to school yourself on the more technical parts of renting, including state and federal laws governing such things as liability and tax/investment issues.

Don’t cut corners

The best way to get top dollar for your property is to look over as many qualified prospective tenants as possible.  If landlording is not your main job, then you will have to set aside blocks of time in the evenings and on weekends.  You’ll also need to make sure that you review and screen candidate information, especially as it pertains to credit and finances, very carefully before finalizing any agreement.

Sound like a lot of work?  It is.  That’s where the experts at Herman Boswell come in.  Our property management professionals are here to help you get the most for your rental property.  For the financial peace of mind you deserve, contact us today!

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If you haven’t raised your rent in the last few years, consider this: according to the Bureau of Labor and Statistics, the rent index is currently rising at an annualized rate of 3.6%.  So you’re probably overdue for an increase.

At the same time, you may worry that by increasing your rates, you’ll lose good tenants.  It doesn’t have to happen that way, especially if you follow these simple guidelines.

Do your homework

Assess the current rental market in your area and the value of your specific tenants.  Some key questions to ask are:

• When was the last time you raised rents?
• How do your current rates compare to those of similar properties?
• What is the demand for rental units and what are the current vacancy rates?
• Should you increase rates only on in-demand units (for example, one bedroom vs. studio)?
• Which of your tenants are the most valuable and would you consider excluding these individuals from the increase to ensure you keep them?

Be prepared

Once you’ve determined how much to raise rent and on which units, be ready to address negative feedback with justifications for your action.  Legitimate reasons include:

• increased property taxes and fees
• higher utility costs
• increases in janitorial, repair and maintenance costs
• improvement projects designed to enhance tenant living spaces

Be sure to note the length of time since the last increase, especially if you haven’t raised rents for an extended period.

Communicate clearly

Announce the increase in a typed notice on letterhead in concise language.  Consider making explicit some of the main reasons you are raising rent to address complaints before they occur.  Be sure that you adhere to the specified advance notice requirements in your leases and that you make yourself available to tenants should they wish to discuss the increase with you in person.

Raising rent isn’t fun.  But it can be made easier if you have the help of a company like Herman Boswell.  Our professionals are experts in both real estate and tenant management and can see to all the details that go into raising rent the right way.  For the peace of mind you deserve, contact us today!

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