It happens. Despite all your marketing and advertising efforts, you just can’t seem to find good tenants – or any tenants at all – for your rental home, apartment or condominium. And you have no idea how to fix the situation.

However desperate you may feel, don’t succumb to the temptation of loosening your screening requirements for new tenants. A bad renter – someone who pays rent late, damages the rental unit or disturbs other neighbors – is not worth the price of getting the unit occupied.

Instead of taking a chance on a risky tenant, ask yourself the following questions:

(1) Is the rental price I’m asking too high compared to similar properties?

If so, consider lowering the rent. Check rents of comparable rentals in your community on websites like Craigslist and visit a few properties that are similar to yours. You may discover that charging slightly less than what seems to be the going rate is a good way to find and keep great tenants.

(2) Does my rental house, apartment or condominium need repair work?

The condition of a rental unit may be affecting tenant interest. Simple things – like a paint job, new carpeting or window coverings – could make the difference between whether your unit gets rented or continues to remain untenanted.

(3) Is my print and/or online rental ad failing to draw in prospective clients?

Compare your ads to those you might find in similar venues. You may find that you’ll need to rewrite and/or repackage the contents of the ad to make it more appealing.

(4) Would I attract more prospective tenants if I allowed pets?

If you don’t allow pets, consider changing your policy. You may have more paperwork to deal with, but many landlords find that tenants who own pets are more responsible, appreciative and stable than those who don’t.

(5) Would tenant incentives – like a resident referral program – help me get new renters?

Some landlords have great success with programs in which they pay a premium to pre-existing tenants who refer other lease-signing renters to them. If you don’t have a lot of other tenants, consider offering new tenants things like:

• free rent for one month
• free parking
• free satellite service

If you do provide incentives, be sure to offer them in a way that is both fair and consistent to avoid charges of housing discrimination.

The experts at Herman Boswell can help you get your units rented without compromising your bottom line. That’s because we know the real estate market in North Texas like no one else. When you need help from experts who treat your real estate investments like their own, contact us!

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When it comes to ending a tenancy, you need to be as clear about your move-out terms as you are about move-in ones. Doing so will help you avoid expensive, time-consuming complications that could jeopardize your rental business.

1. Giving notice

Make it clear from the day your tenants sign their lease that they must give you written notice when they decide to move out. Following are some basic guidelines for the most common lease types:

• fixed-term: tenant occupancy ends after a pre-arranged period of time
• month-to-month: tenants should give 30 days’ notice
• year-to-year: tenants should give 60 to 90 days’ notice

2. Rental unit viewings

You should always give current tenants a courtesy notice of at least 24 hours that you plan to show the rental to others interested in taking over the unit. The only time when this does not apply is if the lease specifies that no notice is required, especially in the last month of occupancy.

3. Move-out specifications

Make sure your tenants know that they need to clean the rental and all provided items – especially stoves, refrigerators and dishwashers – to get their full security deposit back. You should also tell them to repair any damages to the apartment that go beyond normal wear and tear and take all belongings when they leave.

4. Final inspection

On move out day, both you and your tenants should do a final inspection of the rental unit. Use the inspection report that the tenants filled out on move in day to determine if anything has been damaged. Make careful note of any damage and then sign the report together.

5. Returning the security deposit

If your tenants have damaged the rental, left it unclean or neglected to pay rent or utilities, then you have a legal right to deduct whatever money is owed from the security deposit. Be sure to specify how much you are taking out (and for what) to the tenant.

Busy landlords like you often don’t have the time to deal with all the issues that come with ending a tenancy. That’s where the experts at Herman Boswell come in. Our team of real estate professionals can help you take care of your business so that your business takes care of you. Contact us today and let us show you a better way to manage your property investments.

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Should you let your tenants keep pets in the units they rent from you or not?

Allowing domesticated animals on your property can pose risks, such as possible property damage and tenant injuries. But you can effectively reduce the risks associated with being in charge of pet-friendly housing.

The first thing to do is include a pet agreement in rental unit leases. Make sure that all tenants read over and sign the pet agreement, even if they do not own a pet. That way, if they decide to get an animal pal later on, they will know what to expect if they want to continue renting from you.
Following are some provisions you may wish to include in your pet agreements:

I. Kinds of Pets Allowed

Be sure to be very specific about which types of pets are OK for the unit(s) you are renting. Some landlords only permit common domesticated animals such as dogs – be careful which ones – cats, guinea pigs, rabbits, hamsters, gerbils and small reptiles. You should also be clear on how many such pets you will allow.

It’s also good to ask your tenants about the pets they plan on keeping. Some possible questions might include:

• how long the tenant has had the pet
• whether the pet has caused any problems in the past
• who will look after the pet when the tenant is away

II. Requirements for identification, licenses and vaccinations
Tenants should know that all dogs and cats should wear ID collars or tags that include proof of current vaccinations. You should find out what your local ordinances require concerning regular pet vaccinations and licenses and insist that tenants give you proof – such as copy of a vet bill – that they are in compliance with those laws.

III. Tenant pet responsibility
Your tenants should agree to keep their animals under control at all times so that those pets don’t become a nuisance to other tenants. Make cleaning up after pets a requirement, especially in any common areas. Have an agreement in place that addresses where and how pets are to be supervised and consider asking pet-owning tenants to carry renters’ liability insurance.

IV. Pet fees
Some landlords find it helpful to levy a pet fee in addition to a security deposit (in Texas, this is legal, though not in other states). Should you do this, keep the amount reasonable, around $300 or so. If you do not and your tenant takes you to court, a judge may not enforce any pet fee provision you may have.

Be aware that you should never charge extra for service animals as they are not pets. They are “companions” that accommodate a disability.

The final thing to remember about your pet agreements is to make them easy for you to change. You can do this by stating that you have a right to amend all rules when you give tenants reasonable notice (this is usually 30 days).

In a dog-eat-dog world, it’s hard to stay on top of everything when you’re a landlord, especially one that’s open to pet-owning tenants. That’s why Herman Boswell exists: to help property owners on the go take care of the little things that can make a difference to a landlord’s success. When you need property management expertise, contact us!

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Most rental property owners worry about protecting their investment. From physical damage to the property to insurance claims to lawsuits brought by tenants, there are myriad ways that you can lose money. Fortunately, minimizing risks in a rental business doesn’t require a ton of money or a staff of experts. All you need to do is learn where you’re vulnerable and then take commonsense steps to minimize that vulnerability.

Here are five tips you can take to protect yourself against liability as a landlord. By acting now, you’ll enjoy a big payoff: reduced likelihood of lawsuits, harm to tenants and guests, damage to your property, and financial distress to your business.

#1: Get the Right Insurance for Your Property and Business
Don’t wait until a loss occurs before you determine whether you have the right insurance for your business and property. Review your current policy with your agent or broker, then discuss coverage options that fit your needs.

#2: Make Your Property Physically Sound
Keep your property safe so that people don’t get hurt. To do this, learn the basic legal requirements for repairing and maintaining your property, and then follow them.

Implied warranty of habitability. Virtually every landlord must comply with a legal rule known as the “implied warranty of habitability.” This means you must make sure your rentals are in a “fit” and “habitable” condition when tenants move in, and you must maintain this condition throughout the tenancy. Get familiar with your state and local health, building, and safety codes, and strive to keep your property compliant. (To learn how to find the laws that apply to your rental property, see Nolo’s Legal Research area.)

Take steps to prevent injuries and losses. In addition, take other reasonable steps to prevent injuries and other losses. For example, take all tenants’ repair requests seriously and fix problems promptly. Inspect your property yourself for hazards. If you can’t address a hazardous situation immediately, warn tenants and visitors about the danger. (For example, put traffic cones around a pothole, or post signs and safety tape near a spill on the floor.)

#3: Make Your Rental Property Accessible to Disabled Tenants
Make your property accessible to tenants with mobility impairments and other disabilities. Check whether structures on your property must follow the Fair Housing Act’s “design and construction” requirements. (Generally, multifamily buildings that were designed and constructed for first occupancy after March 13, 1991 must comply.)

Regardless of when your buildings were constructed, seriously consider all requests from a disabled prospect or tenant to modify your building in order to meet that person’s needs. Review each request on a case-by-case basis and grant it if it’s reasonable. For example, a prospect’s request to install grab bars in the bathroom or lower kitchen cabinets is probably a reasonable modification request.

#4: Remove Environmental Hazards from Your Property
Removing environmental hazards is often trickier than removing other physical hazards. Environmental hazards often can’t be seen, and they may not become apparent until they cause injury or property damage. For example, a landlord might not learn of lead paint dust on her property until a family gets their child’s blood test results showing elevated levels of lead. What’s more, in some cases environmental hazards remain invisible even once they’ve caused damage, as in the case of carbon monoxide or radon.

Do your best to address environmental hazards before they cause serious damage. Here are some ways to do so:

•  Require tenants to report all leaks and flooding to you promptly so that you can take quick action to prevent mold.
•  Maintain your heating systems and appliances, and install carbon monoxide detectors in order to prevent carbon monoxide build-up.
•  Comply with federal testing requirements when employees or contractors work on asbestos-containing building materials, such as sprayed-on ceilings. These tests will reveal to workers what’s in your building, and you can use this knowledge to protect your tenants, too.

#5: Prepare for and Handle Disasters and Emergencies
Take steps to safeguard your business and protect your property, tenants, and employees in an emergency. For example:
Back up your computer files and keep important documents (such as a mortgage, note, and management contract) in a secure and fire-proof off-site storage facility.

• Report suspicious objects, activities, and mail to the police, and take bomb threats seriously.
• Document the location of utility shut-off valves, a step that can save lives and minimize damage if a fire or other disaster occurs.
• Create an emergency procedures manual with an evacuation plan that’s tailored to your property.

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You’ve just found out that renters at an apartment complex you own have just formed a tenants’ association. Don’t despair! You can stave off trouble and take charge of the situation if you can keep your cool and do these three things:

1. Dig for information
Talk to your tenants and try to find out what motivated them to form an association. Usually, renters won’t do this unless something significant – or an escalating pattern of smaller problems – has caused them to want to take action.

2. Make improvements
Defuse the situation that drove your tenants to band together by taking swift action to redress the problem(s). Then come up with a plan that shows you are a responsive landlord going forward. This will require that you take a careful look at your property and business practices and especially how you’ve been communicating – or not – to your tenants.

3. Go to association meetings
Offer to attend association meetings or send an employee on your behalf. Doing so will:

• keep you abreast of what’s going on;
• relieve some of the anxiety you may feel about the association’s existence; and
• show tenants that you care about your property and want them to be happy living there.

Know that association members are under no obligation to let you attend their meetings. If they are not willing to let you attend, let them know that you would at least like to meet with association leaders to discuss any issues the group may have.

You should also be aware that retaliation is a bad idea. It will damage your reputation, both as a landlord and a businessperson. Be fair in your dealings and treat a tenant association just like any other group at your property, so long as members abide by your rules.

If you still feel like you’re up against a wall, then it’s time to call the experienced property management professionals at Herman Boswell. We can help you not only deal with crisis but come out ahead. Contact us today and let us show you a better way to manage your properties!

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Sometimes – and especially during times of economic uncertainty – it happens that rental units will stay empty for longer than you had anticipated. And this can be a problem, especially if you have to make mortgage payments on your property every month. So what can you do to minimize losses?

You have two choices. The first is to ride it out and wait until you can get a suitable tenant. The second is to consider collecting less rent just to keep money coming in.

If you choose the latter option, you’ll need to ask yourself whether or not you might be asking too much for the unit. In general, you need to know that renters are cost-conscious individuals who would rather have a little extra money after they’ve paid rent than know their money is going to a landlord.

Try lowering the price by a small increment (say, $25) and marketing the unit as a rent special. If that doesn’t do the trick, reduce the price again. Not getting the full price you want may make your budget tighter, but it’s usually much better to have an occupied unit that brings in money on a regular basis than a vacancy that drains your projected income.

Another strategy is to lessen the amount you’re asking for security deposit. But this can be risky. No matter how thoroughly your screening procedure, things can happen – such as illness or job loss – that can force a tenant into arrears. And a security deposit may be all you’ll be able to get to pay for missing rent.

At Herman Boswell, we understand how important your real estate investments are to you. Our team of professionals can help you come up with a plan to maximize tenant occupancy without compromising your financial future. When you need the know-how of the property management experts more North Texans trust, contact us!

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When dealing with tenants, putting things in writing is critical. One useful strategy is to give new renters a move-in letter on or before the day they move in to their new rental.

A move-in letter can include information about:

• your expectations regarding rental upkeep
• what to do about safety hazards
• repair and maintenance procedures
• how to get a security deposit back
• how to reach you, especially in emergencies
• trash disposal and recycling
• laundry facilities
• your policies regarding short and long-term guests
• inspections
• keys and locks and what to do if there is a problem with them

As a courtesy, you might also want to include any forms and/or information your new tenants may need for cable/Internet hookups and landline phone service. You can also include change of address cards, a map of the community and a list of local schools, post offices, stores and hospitals.

Move-in letters can also contain move-out information. Restate your policies regarding lease renewals and terminations. Also tell your tenants that you will inspect the apartment for overall cleanliness and damage. Encourage tenants to take an end-of-lease walk-through with you so that they know how much of their security deposit they can expect to receive.

Land-lording can be a paper chase, especially when you’re dealing with multiple tenants. This is where the real estate professionals at Herman Boswell can help. Our experts are here to simplify your record-keeping and deal with the other day-to-day responsibilities that go along with being a landlord. Contact us today and let us show you a better way to manage your real estate investments!

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Being a landlord is almost like being a superhero. You have to be very good at doing many different kinds of things to get the job done right. Here are six qualities that define a good landlord:

1. People skills

A good landlord is flexible and can keep cool even in the most trying circumstances. He or she is also a good communicator and assertive without being aggressive.

2. Management expertise

Land-lording requires that an ability to organize and prioritize many different tasks and set goals. It also means being able deal effectively with work interruptions and solve problems under pressure.

3. Business know how

Renting is a business. Landlords need to be able to market their properties, collect money from tenants and make tough business decisions that may include having to evict non-paying and/or difficult tenants.

4. Handyman skills

A landlord who can do simple plumbing, electrical and carpentry work as well as furnace and water heater maintenance can save money. Basic handyman knowledge also makes it easier to hire the right people for jobs that require more expertise.

5. Bookkeeping savvy

Landlords should have an understanding of financing, interest rates, credit reports, filling out and filing business reports and preparing income tax returns.

6. Financial stability

A good financial record is crucial. This means a solid credit history as well as money set aside for any and all eventualities and emergencies.

Each area that is a weakness will make your job that much more challenging. Even if you have all these bases covered, you may find that you lack one thing: time. At Herman Boswell Property Management, we’re here to make managing property a snap because we know that even the most committed superheroes need a little help sometimes. Let us simplify your life: contact us today!

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Your tenants know that they have to take care of the apartment, condominium or house they rent from you. If they don’t, they can be evicted. But it’s a two-way street. As the landlord, you have landlord responsibilities to keep that property habitable or risk fines and/or lawsuits for violating state laws and local housing codes.

On your end, you have to make every effort to ensure that your rental property is clean and safe and be prepared to deal with issues such as:

• plumbing, electricity and heating/cooling
• structural integrity (walls, roof, foundation)
• internal/external presentation (no chipped/peeling paint)
• landscape maintenance (lawns trimmed, no trash on the property)

It’s a lot of work to be sure, but the upside is that the better maintained your property, the better your chances of finding good tenants. And the more prompt you are about responding to problems like pest control, leaky faucets, malfunctioning heaters/coolers, the more likely you are to actually keep those good tenants.

By the same token, your tenants need to know what you expect from them. From the day they sign the lease, you should emphasize the importance of cleaning up around the property, taking out the trash regularly and communicating about problems in a timely manner. Keeping a rental unit clean and safe is, after all, a joint responsibility.

At Herman Boswell, we know how important it is to develop relationships with tenants based on trust and mutuality. But for busy landlords on the go like you, that can be a challenge. Our team of real estate professionals can help you take care of your tenants. If property management responsibilities are making you feel like there’s no exit, contact us!

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TENANT CHECKOUT LISTS

You’ve scrutinized your new tenant’s background and credentials and they look good. But things can happen in or on your rental property that you won’t find out about until that tenant leaves. And if you haven’t covered your bases, you could be stuck with repair or replacement bills that aren’t your responsibility.

This is why it’s important that you make sure your tenants fill out an inventory and premises checklist when they move in and when they move out. The checklist simply verifies the condition of the rental unit at the beginning and end of tenancy. You should actually be present when your renters fill it out so you can both make sure that it’s accurate.

The document itself typically contains an itemized, room by room inventory of the whole apartment. Following is a partial list of the things of which it should take note:

• the floor, ceiling and walls
• carpets, drapes and/or blinds
• electrical outlets
• cabinets, windows and doors
• kitchen appliances
• bathroom plumbing and fixtures
• locks

The checklist should also provide space where a tenant can make comments regarding the condition of the items and where you, as the landlord, can initial the observations as you go over them.

At the end of a tenant’s lease, you can compare the move-in to the move-out checklists to determine if anything in the rental requires repair and replacement above and beyond normal wear and tear. If so, you can then figure out what needs to get subtracted from a tenant’s security deposit.

As straightforward as this process may seem, it’s one that can be very time-consuming, especially if you own more than one property. Herman Boswell understands the needs of busy landlords like you. Our team of property management experts is here to help you manage your real estate investments the right way. When you need the know-how of industry professionals, contact us!

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