No landlord ever wants to have to deal with a wrecked rental unit.  It’s expensive and downright depressing.  If you lease property of any kind, though, there are things you can do to protect yourself.

1. Find good tenants

One of the best ways to ensure that you avoid the trauma of seeing your rental units trashed is to make sure that you locate tenants  who will treat the home, apartment or condominium you’re leasing as though they owned it. That means interviewing each person who looks at your property and then running careful background and credit checks on them.

2. Collect security deposits

The state of Texas has no set rate or formula to help you determine how much security deposit you should collect from a tenant. A good rule of thumb is typically one to two months’ rent or whatever it might cost you to do things like repaint walls, reinstall carpet and/or repair fixtures and appliances in the event of damage.

3. Keep a regular maintenance schedule

When you provide regular upkeep for your rental units, you not only ensure that your property looks and functions as it should, you also get a chance to see for yourself how your tenant is measuring up. If what he or she is doing–or not–poses a threat to health and safety or if there’s damage that could decrease the value of your property, then you can begin eviction proceedings.

At Herman Boswell, we understand that being a good landlord can be a time-consuming. That’s why we provide property management services you can count on. Our team of certified DFW real estate experts can help you take care of your investments so that they can take care of you. Let us be your partner in landlording success!

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When you rent a house or apartment to a new tenant, you hope that the person will treat the rental with care. Unfortunately, though, and no matter how thoroughly you screen individuals, some will turn out to be home wreckers. Literally.

The ideal tenant is someone who communicates problems to you when they happen. For example, if a faucet or appliance needs to be repaired or replaced within the home, that tenant will say so. He or she will also maintain the exterior of the house or apartment to keep trash and other debris from accumulating.

Then there’s the tenant who will turn your property into a dirty mess. That person will cause you endless aggravation since you can’t evict a renter simply for being a pig and inviting ants and roaches into the house. If there’s no immediate threat to health and safety, the lease protects the tenant.

The worst kind of tenant, though, is the one who willfully breaks fixtures and appliances or does serious structural damage to your rental property. The good news is that you can evict the person on the grounds that he or she  is decreasing the value of your property. But—and not unlike the dirty tenant—this person will cost you plenty in terms of time, money and stress.

This is why you need the services of the real estate professionals at Herman Boswell Property Management.  Not only do we check out all the individuals to whom we rent, we also monitor the actual property that gets rented to make sure the tenant is treating it with the proper care. When you work with our team, you’ll always be assured that your property is in experienced hands: we do the managing so you don’t have to.

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Being responsible for a real estate investment of an apartment or home in Arlington requires that you put in much more work, particularly in maintenance, to ensure that its value is retained. If an individual does not have sufficient time to wear the property management hat fully then it becomes an absolute necessity that a professional be hired. In the end, it will save time and money.

There will, time and again, be considerations such as repairs and vacancies to deal with. A property manager will know all aspects that need constant attention to ensure any property is optimally taken care of. They spot issues that most real estate investors will not observe which will typically bring about problems in the future, such as maintenance issues with older electrical and plumbing fixtures.

The most critical error that most investors make when shopping for an Arlington property manager is carrying out the process hurriedly. It is important that you look through has many companies as possible and check for simple things such as the length of time they have been in business, their client base and location. It is also wise to pay a visit to any potential company that looks promising and get a feel for their premises. An active, friendly office is a good sign that other clients have faith in that particular company and how they are managing their properties.

Another suggestion is to make use of networks that are already available to you, such as family and friends. There is possibly someone out there who has sought out an Arlington property management firm at one point or another in the past and you can use their word of mouth in order to begin creating a list of potential options.

It is also advisable to seek out a property manager close to you. Those who have quickly picked out a company to carry out property management farther away from them often forget that this is a long term relationship that may require periodic meetings. It thus becomes time-consuming and cumbersome to engage effectively with them if they are too far from you.

Herman Boswell Property Management needs have been around the block on Arlington property management. Over the last 37 years, they have gotten it down on how to take care of your property and get it utilized to its maximum extent with its value retained and improved. If you are looking for a property management firm in the Arlington area, you can’t do better!

Review some of our methods for caring for property upkeep.

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If your property is within two miles of a suburban community, in what FEMA (Federal Emergency Management Agency) calls the “Wildland Urban Interface” (WUI), there is an increasing danger of being subject to wildfires that continue to occur due to the continuing drought conditions in Texas which are predicted to carry on into next year. Unfortunately, it has been found that more than 80 percent of wildfires in Texas now occur within this WUI area as many Texans have left urban areas, seeking the beauty and peace of nature, only to find they are now exposed to dry brush and grassland bordering or near their properties.

In fact, April 9th through 13th is Wildfire Awareness Week in Texas and FEMA is taking the opportunity to inform Texas property owners about how to safeguard their properties from the danger of wildfire incursion.

“Whether you own your home or rent, it’s important to have a plan in place to protect your personal property, family and pets from the devastation of a wildfire,” said Kevin Hannes, FEMA’s federal coordinating officer for the 2011 Texas wildfire recovery missions. “Make a plan, build a disaster supply kit and stay informed. Those are the three key components to staying safe under any hazardous conditions.”

There are a number of precautions and safeguards that FEMA recommends for property owners to take to minimize the risk to wildfires.

Make your property defensible:

• Create a fire-safe landscape zone ranging from 30 to 100 feet around the home.
• Plant only fire-resistant shrubs and trees. For example, hardwood trees are less flammable than pine, evergreen, eucalyptus or fir trees. Carefully space tree plantings to avoid creating pockets of fuel.
• Create “fuel breaks,” such as driveways and gravel walkways.
• Remove ground fuels like grass, leaves, pine needles, dead limbs and twigs within 30 feet of the home. Clear all flammable vegetation and other materials. Remove branches that extend over the roof or power lines. Mow grass regularly.
• Trim all dead branches from trees in the yard and prune low hanging limbs to prevent fire from climbing to the crowns of the trees.

Within the home:

• Use fire-resistant roofing material, such as ceramic or slate tile, or standing-seam metal roofing.
• Protect the home’s eaves with stucco or plaster to prevent flying embers from starting a fire. Consider designing the home without overhangs or use fire-resistant soffits to protect it from embers and hot gases.
• Ensure that exterior wall coverings are fire-resistant and not susceptible to melting. Concrete, fiber-cement panels or siding, stucco, masonry and metal are some recommended materials.
• Use metal mesh screens to keep fast-flying embers out of vents and chimneys. Vents should also be made of metal.

“Living in the Wildland Urban Interface is much like living in a floodplain,” said Kevin L. Hannes, FEMA’s federal coordinating officer for two wildfire recovery missions in Texas. “Texans should know what risks exist related to their location and they should adopt safety measures to protect their families and their homes.”

Property management is a key action you can take to protecting your property and your investment.  The experts at Herman Boswell Property Management  can help you with the many aspects of your property to keep it from harm’s way.  Give them a call.

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Being an income property owner is a huge commitment, but, if handled properly, that huge commitment can bring equally large financial rewards.

Income from Renters

The biggest benefit of owning a rental property is that the renters will provide you with a direct income stream. Those monthly rent checks go straight into your business account, ideally more than offsetting any expenses for the month.

For example, if you own a house that you rent out for $1,000 per month, that house when fully occupied will put $12,000 per year back into your accounts.

It’s hard to argue with a direct income stream like that. It is worth nothing, though, that those kinds of figures are optimistic ones and you shouldn’t just dive in expecting those results. Still, even partial results can be very good. If you can keep the property rented for just 75% of the year, that’s still $9,000 a year in income, after all.

Sweat Equity

The other factor that you should consider is that your sweat equity is likely to add additional value to the property as you maintain and upgrade it. Doing things like repainting the home, adding new siding, refinishing the inside, doing some basic landscaping to the yard, and so on will add value to the home without significant financial cost.

Not only will this allow you to charge more for rent, it will also increase the value of the property itself should you choose to sell it in the future.

If you enjoy home improvement projects, this should be a major attraction for buying a rental property. You’ll have the opportunity to fix it up upon acquisition as well as in between tenants, which will return very nice dividends for you.

5. Huge Tax Write-Offs for Income Property

As a rental property owner, you are entitled to huge tax deductions. You can write-off interest on your mortgage or on any credit cards used to make purchases for the property. You can write-off your insurance, maintenance repairs, travel expenses, any legal and professional fees, and even your property taxes. You can see a more extensive list at Nolo.com

On top of all of these deductions, the government also allows you to depreciate the purchase price of your property based on a set depreciation schedule, even if your property is actually appreciating in value.

Using our above example, you receive $3,480 in rental income for the year ($290 each month * 12 months). If you made this money at a regular job or in the stock market, you would lose a significant portion of it to pay income taxes. However, by owning a rental property, you can offset the $3,480 income with the depreciation expense for your property, thus being able to reduce or completely eliminate the amount of taxes you have to pay on this rental income.

Speak to an accountant to determine all of your specific tax write-offs.

Being an income property owner is a huge commitment, but, if handled properly, that huge commitment can bring equally large financial rewards.

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Death and taxes are two of life’s certainties. But as a landlord, you face one more certainty other people don’t — extreme time deficit. Property management is something that can consume every minute of every hour of your day…literally.

A landlord always has to ensure the safety of an occupied rental property. That it follows all housing codes and is in good repair. And when emergencies, like flooding or gas leaks, arise, a landlord has to respond immediately—even if the problem happens in the middle of night.

Then there’s the small matter of rent. Tenants need to pay on time but sometimes they don’t. As a landlord, it’s your responsibility to not only collect money owed but to stay on top of situations — such as failure to pay rent — that could lead to eviction and/or other legal action. And no matter how difficult the circumstances, you still need to handle these matters without sacrificing your professionalism.

And that’s just for the people who already live on your property.

If you need to find tenants, you have to go through the process of advertising the property online and with brick-and-mortar real estate agencies.  Then you interview potential tenants and do background checks. And even then, you’re not always guaranteed that a new renter will work out to your satisfaction. The person could end up breaking a lease for reasons beyond his or her control, such as a divorce or new job in another city, which leaves you needing to look for a new tenant and scrounging for time to do it.

Herman Boswell can help. Our property management experts work hard to maintain an open line of communication with tenants. Landlords always have the information they need to take the appropriate action. And when it comes time to find new renters, we not only provide you with detailed market analyses of rental property in your area. We also advertise your property through all channels, carefully screen all potential tenants and provide clear leasing guidelines.

We have been proud to serve North Texans for more than 30 years. Our current portfolio includes almost 900 clients and a track record that boasts low rates of eviction and of vacancy.

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Ink pen with agreement between landlord and tenant

Right of Entry in the State of Texas

Texas has no statute that governs when landlords can enter occupied rental units. So theoretically, that means you could enter residences any time you wish. But if you’re concerned about maintaining good relationships with your tenants, that’s not a good idea.

The smart way to go is to take into account what statutes in other states guarantee renters. What this ultimately means is that you offer your tenants reasonable privacy rights against intrusions.

In practice, you should try to give at least 24 hours’ notice before entering a rented apartment to make (or assess for) repairs or show the unit to prospective new tenants. The more time you are able to give your current renters, the better. You might also consider entering only at specified times, such as normal business hours during the workweek.

In the event of an emergency, such as a fire, burst water pipe, or gas leak, you have the right to enter without notice. You may also enter the premises if a tenant has moved out without notifying you or if you have a court order to do so. Under no circumstances should you enter just to “check up” on your tenant – that is a true invasion of privacy.

On occasion, a tenant will refuse you access. If a tenant does this repeatedly, then you can assert your right to enter, provided you do so in a peaceful manner. If the tenant still bars access and you suspect something is seriously amiss, you may need to take legal action.

Even though Texas has no set legal guidelines regarding right of entry, you may want to establish your own and put them in writing. That way, you protect your interests as well as those of your tenants.

Nobody said being a landlord was easy. And it doesn’t help that Texas law is sometimes unclear about the extent of your rights with respect to your tenants. The experts at Herman Boswell can help by creating a tenant management plan that you – and your renters – can live with. Contact us today!

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When you collect rent, money goes to pay business-related expenses such as insurance, taxes and the mortgage. It also gets used for other bills, such as those that come from advertising, property maintenance, utilities, water and garbage. And if you have a bookkeeper or handyman, you need to pay them as well.

But what happens when your rentals aren’t bringing in enough to pay for everything and cash gets tight?

The first thing to do is go over your monthly bills carefully, paying special attention to what’s going on with heat, electricity and water bills.  Maybe you have a tenant who needs to open a window because the temperature is too high in his or her unit.  If you control the thermostat, you might want to ask your renters whether they are getting too much heat.

If your tenants control in-home thermostats, ask them if you can run a check. Explain the situation to them. Perhaps you can get your renters to regulate their controllers more carefully.  If it turns out that that defective thermostats are what are causing the problem, you may need to make a few replacements.

You might also consider putting in some weather stripping along windows and doors. If your rental home, condominium or apartment complex was built before 1970, the building itself may not have proper insulation.  You may want to look into this, but be sure to do the math so that you know how long it will take you to get a return on your investment.

If it’s the water bills that are out of control, then you’ll probably want to do an inspection of all the faucets, toilets and water heaters for leaks.  A slow drip from any indoor or outdoor water-bearing device can add up to quite a few extra gallons that you have to pay for at the end of the month.

No matter how tight things get, you should never tap into money saved for taxes nor should you even think about using the security deposits your tenants gave you when they moved in. Some states like Texas are less stringent about this than others, but as a matter of ethics, it’s to your benefit to keep that money separate.

At Herman Boswell, we believe that the one of the keys to successful landlording is good cashflow management.  Our experts pride themselves on staying on top of the financial issues that matter most to our clients.  When you need an experienced, top-notch team real estate management team to safeguard your investments, contact us!

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Making the decision to hire a property management company is not easy but it’s often necessary for property owners inundated with the responsibilities that come with owning multiple properties. Knowing what to expect is the first step in having a great working relationship with your real estate property management team. Keep these dos and don’ts in mind when you hire a property manager.

Property Management Dos

Do: Keep communication open. For an owner, being able to effectively communicate with your property management team is critical to ensuring that your tenants’ needs are met and your reputation as an owner stays intact. When your property manager contacts you with tenant concerns like repairs, objectively consider the solutions that are offered. Even if you disagree with the property manager’s suggestions, by effectively communicating, you’ll set the tone that you are approachable and easy to work with. For property managers, communication is one of the most desirable qualities, as you’ll be communicating with both owners and tenants, as well as maintenance staff and contractors. Keeping the lines of communication open will help things run smoothly.

Do: Read the fine print. Whenever you work with a property management company, you will be given what’s called a Property Management Agreement. This important document outlines everything that is expected of the property manager, as well as what’s expected of the owner. Always carefully read over the Property Management Agreement and make sure you ask questions about anything that you don’t understand.

Do: Get to know your property manager. In the search for a property manager to help you run the day-to-day operations of your properties, it can be tempting to go with the first property manager you come across. However, for a successful long-term working relationship, it’s better to interview candidates until you find one who is a good fit. Once you choose the ideal property manager or management company, spend some time getting to know the person or people who will make your life as a property owner easier.

Property Management Don’ts

Don’t: Take a hands-off approach. As an owner, it can be tempting to let the property management company handle everything without any input from you. That’s not the best way to approach a property management partnership. Avoiding communication with your property management team is a recipe for disaster and good follow-up is essential to keep your properties running efficiently.

Don’t: Shy away from automation. Though property management certainly involves a lot of communication and human interaction, that doesn’t mean automation should be overlooked. From collecting rent payments to logging and resolving maintenance requests, some level of automation is essential for efficient property management. If your property management team suggests automation software or processes, be open-

minded and take the time to understand how technology and automation can work of you.

Don’t: Hire on the Fly. All rental management companies are not created equal, so take your time when deciding who to work with. Do your research by reading client testimonials, getting feedback from current or former clients (if possible), and asking the property management company to demonstrate how they get results for owners. If you have questions about any part of working with a property manager, be sure to ask upfront. Putting off questions or concerns until later can be disastrous.

Herman Boswell Property Management – Experienced Residential Property Managers 

By following these simples dos and don’ts, you can take the stress out of hiring a quality property management company. If you’re searching for a property manager in the greater Dallas area, Herman Boswell Property Management has a professional team of reliable property management associates who work with you to ensure you have happy tenants and profitable properties.

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