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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Most landlords know the qualities that make an ideal tenant, but what does it take to attract them?  Factors such as the location, landscape, and property amenities can be the make-or-break.  Landlords can gain a competitive edge and increase their chances of attracting excellent tenants if they have the following features of their rental properties:

Location

The first thing that tenants consider when looking for a place is its location. Many people look for rental properties near schools, business districts, transportation, and shopping malls. So, if you are looking to invest in a rental property, you want to look for these features. If your rental property is in an area with high demand, you can ask for higher rent.  Some prospective tenants will prioritize location over anything else and are willing to compromise on other amenities.

Safety and Security

More tenants are willing to live in your rental property if the area is safe and secure. With that in mind, location goes hand-in-hand with safety. The rental property must be in a safe environment with a low crime rate. The property should also have security devices and many landlords install alarm service systems in the premises.

Sufficient Parking Space

No one wants to spend a long time finding a parking spot after a long day at work or if they have groceries or other packages in the car. Parking spaces can be a pressing issue in properties located in urban areas. The streets are often busy, and some sites do not allow off-street parking.

Renovations

You can attract more people to rent your property if the space looks polished and organized. Even when the property has had several tenants staying in it over the years, it should not feel that way. Performing upgrades and renovations can make the property more attractive and functional. Kitchens and bathrooms are the rooms most often renovated.

Bonus Facilities: Backyard or Balcony Access

Some tenants prefer a property that has a designated place to sit back and relax. If your property has a backyard or balcony access, it can increase the chances of attracting more tenants. More often than not, places with these features can cost more, especially within urban areas.

Property Inclusive of Appliances

Appliances are another valuable bonus that tenants tend to look for. Most renters do not want to invest in major appliances. Installing new appliances including central air conditioning and a washer and dryer can attract higher-quality tenants.

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To provide a positive rental experience, you should be aware of landlord-tenant laws and fulfill your obligations as a landlord.  It’s also very important that you know the rights you have as a landlord. These rights include:

Right to Collect Rent from Tenants

As part of the rental agreement, all landlords have the right to collect rental payments from their tenants.

In addition to the rental amount, late fees may also be collectable.  Late fees are penalties collected when tenant does not pay the rent within the negotiated timeframe. Per Texas law, you can collect late fees if any portion of the rent remains unpaid two full days after it was due. However, landlords can only collect a late fee stipulated in the written lease.

According to Senate Bill 1414, landlords overdue fees must be reasonable.

• Pre-arranged late fees should not exceed 12% of the rent’s total cost for a property unit with four units or less.
• Pre-arranged late fees should not exceed 10% of the rent’s total cost for a unit in a property with more than four units.
• Pre-arranged late fees should not exceed the landlord’s uncertain damages related to the late payment of rent, including direct or indirect expenses, direct or indirect costs, or overhead associated with the collection of late payment.

Payment Methods

There are no specific payment methods required for both tenants and landlords to use. However, landlords can declare their preferred means of payment in the leasing agreement.

Landlords should notify the tenants in advance if they want to transition to a new payment method. Setting a requirement to pay online is considered an amendment to the lease. This arrangement can either be performed at the start of the new lease period or upon the written agreement of both parties.

When the lease agreement does not express a particular payment method, landlords cannot refuse any payment type. Tenants that pay their rent in cash must receive a receipt.

Right to Raise the Rental Costs

The law does not prohibit landlords from raising the rental costs in the event of lease renewal. Rent increases cannot be implemented until the lease term ends.

You can anticipate local rent control ordinances in Texas after the declaration of a state of disaster. Housing emergency regulations are usually approved by the governor before the adjustments in rent prices apply.

It is also important to note that landlords cannot increase the rent as a form of retaliation for their tenants exercising their rights. These right include tenants requesting repairs, making complaints about the unit, or joining a tenant organization.

Right to Evict Tenants

Landlords can practice their right to evict tenants, especially those who refuse to pay rent. Before you evict a tenant, you should be aware of the appropriate eviction proceedings in Texas. This process allows you to collect the remainder of the unpaid rent or any other costs associated with the eviction.

The following involves the legal terms typically utilized during eviction proceedings. As a landlord, it is essential to know these terms to determine their role in the process.

Forcible Detainer.  This process refers to tenants who stay within the rental property after the landlord revoked their right to stay. Whether their lease expired or was forfeited, they cannot dwell inside the rental property.

Hold-over Tenant.  Hold-over tenant is the term used to describe a tenant who remains at the rental unit without notifying the landlord.

Notice to Quit or Vacate.  Tenants should receive a notice to vacate from their landlord. According to the law, landlords must notify their tenants before starting the eviction process. Tenants need warning of the issues that arise and given some time to make changes.

Tenancy-at-Will.  This explanation refers to the leasing agreement between a tenant and a landlord bound without adequate documents. Put simply, tenancy-at-will is a verbal agreement. More often than not, this arrangement occurs with family members, relatives, close friends to the landlord.  Even if the lease is merely a verbal agreement, the law requires a formal eviction process before the tenant can leave.

Writ of Possession.  Writ of possession is typically the final stage of the eviction proceedings. It is when the court orders the authorities to remove the tenant in the property, return unsettled rental costs, or retrieve the landlord’s property from the tenant.

Eviction Process

Here are the steps you need to take before evicting a tenant from your rental property:

1. Inform the tenant by sending them the Notice to Vacate. Landlords can give up to 3 days to let the tenant move out before filing the eviction suit.
2. After filing the eviction suit, expect the eviction hearing to commence after at least ten days.
3. Once the judgment is issued, there will be no action taken for the next five days. This time frame allows either party to appeal. When the tenant decides to appeal, another hearing begins after a week.

Upon the final judgment, landlords can ask for the tenant’s writ of possession. Tenants receive a full-day notice before authorities remove their stuff from the rental property.

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When property managers handle repetitive tasks, they ease your burden to focus on more critical landlord duties. This reprieve allows you to concentrate on significant repairs and legal issues that require your immediate attention. Most of all, you get to explore new ventures or possible expansion opportunities, making project managers worth an investment.

Property managers can be a significant asset to landlords. Consider the following factors to determine if working with a property manager is the right move for you.

Expanding your Property Portfolio Means More Properties to Handle

As your property investment grows, you tend to manage more rental properties and units. You may obtain properties at different locations, some of which might not be near to you.  Arising issues can be challenging to handle alone and from afar.

Moreover, not all landlords who undertake this venture might can devote enough time to manage day-to-day tasks. Whether you have properties at different locations or are too busy with your other commitments, property managers are here to help. They can manage tasks such as collecting rent, handling tenant complaints, performing maintenance duties, and more. This opportunity allows you to concentrate on the steps you need to take to expand your property investment.

Property Managers Can Help You Manage Turnover Rates

High tenant turnover can affect your profit as a landlord. When more tenants leave, you need to allocate a budget for acquiring a new one. It takes a certain amount of time to advertise a property, run background checks on applicants, prepare necessary documents, and show the new tenant their unit.

The more time you let your property vacant, the more money you lose.

Working with a property manager can help you resolve this issue. They have extensive experience in handling rental properties and tenants. They have the right resources to advertise your available units across several channels. It is also their job to perform strict tenant screening and background checks to acquire a reliable tenant. Property managers can handle background and reference checks, as well as employment and income verification.

Property managers can also perform the following tasks to eliminate high tenant turnover:

Make the Property More Attractive to Tenants. Seasoned property managers have a clear understanding of the type of units that are sought after. This understanding allows them to determine the improvements needed to attract more tenants.

Set a Reasonable Rental Rate: As industry experts, property managers can help you come up with an optimal rental rate. They have access to the local real estate market, data on competing units, and other property management tools to help you make an informed decision.

Minimize Tenant Turnover.   Property managers can help you improve tenant retention by facilitating routine maintenance and repairs. You can also pay close attention to your tenants’ needs when you have a right hand by your side. Addressing all the concerns and inquiries in a timely fashion increases the chances of them staying.

Get Expert Help

You can always use a property management expert to handle instances with which you are unfamiliar. Working with a property manager allows you to differentiate a good tenant from a bad one. Right off the bat, they can see the red flags. They also have enough tools to verify crucial information about potential tenants.

A portion of property management goes into lease enforcement. Landlords have to make sure that both parties follow the terms of the lease. Property managers can assist you in dealing with difficult or non-compliant tenants. Once a tenant breaks a rule, property managers will immediately step in to deal with it.

They Keep You Out of Legal Trouble

As a landlord, it is your responsibility to study all the obligations and responsibilities you have. You should also be very familiar with the specific state laws surrounding property rental. Property managers can enlighten you about these topics and provide you with useful advice. There are a lot of technicalities involved, so it’s best to talk to an expert.

The Bottom Line

Suppose you are a landlord who is just starting in the industry; learning what to do as you go can be risky. Not everyone knows how to acquire suitable tenants, charge reasonable rent, and maintain properties. When things go wrong, it can cost you time and money.

Working with property managers allows you to prevent the pitfalls of managing rental properties. They have the experience, resources, and knowledge to handle everything it takes to succeed.

The post How a Property Manager Can Help Landlords Avoid the Pitfalls of Owning Rental Properties appeared first on Herman Boswell Property Management.

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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A well-drafted lease agreement isn’t just a good idea. It’s an absolute necessity. Without it, you could find yourself in trouble with any tenants you contract with and in more legal hot water than you really want. That’s why it’s important to include these 6 points in any document you hand over to anyone who rents from you. Make sure it gets checked by an attorney too.

1. Property description

Give the address, including apartment and/or building numbers and any other information that makes the property unique from all others.

2. Lease length/time frame

Put the exact beginning and end dates of occupancy. If there is a specific time of day you want the tenant to vacate the property, spell that out too.

3. Security deposits/rent payments

Be clear about what constitutes a security deposit (first and last month rent, pet/damage deposit etc.) and how and when you will release that money at the end of the lease.

With rent, specify exactly when it is due, how tenants can pay you and what penalties he or she can expect if rent is late.

4. Terms of renewal

State whether or not tenants can renew a lease and under what terms (month-to-month, annually). You may also wish to include an escalation clause to accommodate possible rent increases at the time of renewal.

5. Occupancy and sublet agreements

You should be very explicit about how many people can live in the rental unit and how the unit should be used. Do you want your tenants to use it for residential purposes only? Can they have a home office?

6. Landlord rights regarding entry/inspection

If the lease is long-term, you – or someone who works for you – will likely need to enter the rental unit to inspect it and/or do repairs. Include how much notice you will give. Also state how repair persons will gain entry.

As important as it is to draft a good lease agreement – preferably in tandem with an attorney – it’s also important to ensure that tenants understand and comply with the terms of that agreement. The experts at Herman Boswell can help you do just that. When you need the experience of people who know the ins and outs of property management and are here to help you make the most of your real estate investments, contact us!

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For Dallas area owners and other real estate professionals, the competitive market makes connecting with the right people more important than ever.

Owning a property is more than just collecting rent from tenants and scoping out new real estate opportunities. For busy property owners, enlisting the help of a property management firm serves several purposes – from interviewing prospective tenants to handling maintenance requests – but there’s one perk of hiring a property management company that often goes overlooked. Marketing! Successful property owners know that marketing to the right people at the right time is vital to attracting and keeping the best tenants. Effective marketing also solidifies your company’s reputation in the community and can open doors to more investment opportunities. So just how do property management companies facilitate effective marketing? Let’s take a look.

Property Management Companies Have a Larger Network

Effective marketing works by targeting large numbers of people in a strategic way. While a solo property owner may have a network, it likely doesn’t compare to that of a property management firm and its agents. Being realistic today’s real estate market is very competitive so it pays to have access to a more expansive network.

By enlisting the help of a property management company, owners uniquely position themselves to be seen by more tenants as well as real estate professionals. This two-pronged network will help property owners expand their businesses and attract higher quality tenants. For owners who frequently buy and sell, they will get access to more solid leads while allowing the property management company to leverage their network and do most of the footwork.

Social Media and Online Marketing

In today’s technology-driven world, there’s no way to discuss marketing without mentioning social media and online marketing. If a property owner is not using these forms of marketing, they are doing their business a disservice. A property management company can assist with coming up with the perfect online marketing strategy to drive website traffic, attract leads, and recruit prospective tenants.

When people are searching for a rental or investment property, the internet is one of the first places they look. Social media has also exploded as a way to connect with buyers and renters and solidify your web presence. A professional property management company will help property owners develop an effective web and social media strategy to achieve measurable goals.

Property management companies likely have a larger social following that they are more than willing to extend to the property owners they work with. By sharing relevant and strategically curated content on its social media channels, property management companies help property owners develop a strong web presence and increase their bottom line.

Enlisting The Help Of Longtime Residents

Social media and network leveraging definitely have their place in a comprehensive marketing plan but property owners should never underestimate the importance of longtime residents. When it comes to setting your properties apart from the competition, positive feedback from satisfied residents can go a long way. Property management agents are on the front line and interact with tenants on a regular basis, so they hold special insight into what attracts good prospective tenants and what encourages current tenants to renew leases. An experienced property management firm will have agents who know the keys to effective tenant screening and have the personality that fosters tenant trust.

Property Management Companies Take Your Business to the Next Level

For Dallas area owners and other real estate professionals, the competitive market makes connecting with the right people more important than ever. If you are looking to scale your property ownership business, seek a qualified property management firm with high-level expertise in various forms of marketing. Herman Boswell Property Management employs a team of professional property management associates who work closely with property owners to ensure financial success and long-term tenant satisfaction.

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Choosing an Experienced Property Management Firm

Both commercial and residential properties give owners a way to expand investment opportunities and enjoy passive income, which is why many owners are open to owning both types of properties. When it comes to property management, there are some common themes between residential and commercial properties. Whether you’re a residential property owner looking to venture into commercial properties or vice versa, it’s important to understand the similarities and differences between the two.

Tenancy Differences

Generally, tenancy types differ between residential and commercial properties. Residential properties refer to those that can accommodate up to four units and these are usually single family homes, condos, or duplexes occupied by tenants as living space. Residential properties can even be owner-occupied while still generating a profit from rental income.

Commercial properties, on the other hand, refer to buildings or land that is not designed for living space but is intended for businesses purposes. These properties typically have five or more units designed to be leased to separate business owners and include office buildings and retail space. Business owners rent commercial spaces from owners or investors and are designed to generate profit for both the owner and the tenant. Commercial property management also comes with higher expenses than residential management but these expenses are often passed on to the commercial tenants. Additional commercial expenses include but are not limited to, building maintenance, property taxes, and commercial property insurance.

Being aware of the differences between commercial and residential ownership is critical in hiring the right property management firm. Knowledgeable property management professionals will be able to navigate the often confusing world of commercial property management, saving owners valuable time and money that comes with self-management.

Maintenance

In larger commercial spaces like office complexes or shopping malls, on-site, full-time maintenance is standard. This contrasts sharply with residential properties that may only have a few tenants and may only require a handyman who works on an as-needed basis. In many cases, state law requires that commercial properties have on-site maintenance in place. Commercial maintenance needs to be organized, meaning the property manager will need to keep detailed records of ongoing maintenance requests, coordinate maintenance schedules, and advise tenants on how to initiate and track maintenance requests. A skilled property management company will be able to guide owners and ensure they remain in compliance with maintenance laws and ordinances.

Owner and Property Management Responsibilities Differ

Some may argue that owning commercial property management is a lot more difficult than residential property management, but this isn’t necessarily true. For owners and property managers, commercial properties may be slightly easier to manage than residential properties for a few reasons.

In general, commercial tenants shoulder a lot more responsibility compared to residential tenants. Since commercial properties aren’t designed for habitation, many of the laws that apply to residential tenants aren’t applicable to commercial tenants. Space for commercial use does not need to adhere to habitability requirements and the laws concerning eviction are completely different in commercial agreements. Additionally, most commercial properties are primarily used during daytime hours, so 24-hour maintenance isn’t usually required and late night noise complaints will be practically non-existent.

Leasing Is Simpler for Residential Properties

Another major component of property management – both residential and commercial – is leasing. In this case, residential leases are generally easier to execute than commercial lease agreements. Generally, commercial leases are more difficult to break an include several termination clauses that make it disadvantages to tenants. Commercial leases are more complicated, so it’s advisable to have a qualified property management team to deal with leasing details. Professional property management firms have the necessary tools, software, and skills to properly execute commercial leases, saving owners the hassle.

Choosing an Experienced Property Management Firm

One of the biggest mistakes an owner in Dallas can make is going into a commercial property ownership situation without full knowledge of what’s required. Navigating commercial property management is best left to professionals like those at Herman Boswell Property Management. The experts at Herman Boswell Property Management bring a wealth of knowledge and experience in both residential and commercial property management in Dallas, Texas, and demonstrate a clear understanding of owner and tenant expectations in both spheres.

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If you’re a landlord, your experience with real estate investment is probably more positive than negative. Unfortunately, though, a sizable minority of landlords – about 33% – report that they would not buy property to lease again.

Part of the reason this happens is because some would-be investors make decisions based on prevailing conditions, which are always in flux. Smart investors know that the way to building a real estate portfolio that yields good returns over the long-term is to stay the course.

Landlords also lose interest in real estate investment because they underestimate just how much effort actually goes into successful property management. Indeed, finding and keeping good tenants, and staying on top of all of the administrative, financial and legal issues can easily become a full-time job.

Here are a few ways you can avoid the landlord burnout trap:

1. Be money-smart
Know exactly how much money you can invest and don’t go beyond those limits. If necessary, consult a financial adviser. Remember as well that real estate investing is a marathon and not a sprint.

2. Don’t let real estate trends rule your life
It’s important to stay aware of what’s happening in the real estate market. But don’t let positive or negative media hype govern your decision to buy and lease property.

3. Do your research
Use the Internet to research the neighborhoods you’re interested in and visit them. Also try to get an idea of the property values in those areas and how they have fared over time.

4. Take stock of your personal and professional responsibilities
A landlord’s job is labor-intensive. If you’re not a full-time investor, know how much time you have available for landlording duties and stick to a schedule.

Another way to avoid burnout is to contact Herman Boswell. Our team of experienced experts can help you manage your property and put you on the road to long-term financial security. Let us help you achieve your investment goals today!

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One of the most important things you will do as a landlord is to determine how much you will charge per month for your rental units. If you are new to the landlord game or if you have just bought property in an area with which you are not familiar, here are a few things you’ll need to consider to arrive at a good and fair rent.

1. Market supply
How many comparable properties exist in the market where you will be renting? If the area has a lot of vacancies, your property will have a lot of competition. This will drive down the rent you’ll be able to charge.

2. Consumer demand
Some areas are hotter than others. Rental properties located in popular or up-and-coming areas are more likely to attract tenants. If this is the case for your home, condominium or apartment/apartment complex, you should have no trouble getting the rent you want.

3. Your goals
Regardless of where your property is located, you need to ask yourself what you want to achieve. Are you looking to rent your property quickly? Do you want to get the highest possible return? Or are you interested in getting just the right tenants for what you have to offer?

The lower you set the rent, the more interest you will generate in your property. You’ll have a larger pool of candidates to consider and will likely be able to get your unit rented in a shorter amount of time. Higher rates will mean fewer inquiries over a longer period of time.

The simplest way to assess the general real estate situation is to look at what other properties around the one you intend to rent are going for. Talking to a real estate agent and doing online research on sites like Rentometer.com can help you accomplish this task.

You also need to be aware that once you set the rent, you will need to increase it from time to time to maintain profitability. This is because you will have to be dealing with such issues as inflation and property appreciation, which increases your tax burden.

At Herman Boswell, we understand that dealing with rental issues like these can be time-consuming. Our associates make it their business to know real estate market values so that we can help you maximize the return on your investments. When you need property management experts, contact us!

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