The post HOW TO SUCCESSFULLY HANDLE RENT INCREASES appeared first on Herman Boswell Property Management.

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!

The post PRICING YOUR RENTAL FOR MAXIMUM PROFIT appeared first on Herman Boswell Property Management.

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!

The post RAISING RENT appeared first on Herman Boswell Property Management.

Raising rent is not easy to do. In fact, it can be almost as difficult as asking for a raise from your boss. But strategies do exist that can help you move beyond the angst.

The first thing you need to know is that you do not need to explain why you are raising the rent to your tenants. Your one legal responsibility is to inform renters in writing A) that an increase is coming and B) how much that increase will be.

That said, following are two simple but highly effective ways you can adjust tenant rent so as to lessen the psychological impact it will have on both you and your tenants.

Strategy 1: Make small increases at the time of lease renewal automatic

Most tenants expect a slight rent increase at renewal, usually in the amount of $20 to $50. But if you suddenly add $200 or more after not having raised the rent for a long period of time, you’ll very likely receive some negative feedback. A good rule of thumb is to increase rent between 3% and 5% a year.

You might consider making an exception to this if you have a good tenant you’d like to see stay on. In that case, you might waive the rent increase if they renew for another year. You can always make up the difference by raising the rent when that person finally moves out.

Strategy 2: Send an increase notice 60 days before lease end

Sending a rent increase letter this far in advance lets you know what the tenant’s intentions are. If he or she doesn’t plan to renew the lease, you have time to start marketing and showing the place without having a vacancy period.

You’ll need to state what the new rent will be and the date it becomes effective, which would be the day after the lease ends. If you have a fixed-term lease, you could include or attach a new lease with your letter or email. If you have a month-to-month lease, the tenant won’t need to sign a renewal since it automatically renews every month.

Herman Boswell understands that successful landlording not only requires substantial infusions of time and energy, but also good business and interpersonal savvy. That’s why our real estate professionals are ready to share their expertise with you when you need it.

\You have a life to live and investments to protect: let Herman Boswell help you on the road to better property management today!

The post HOW TO POLITELY RAISE THE RENT appeared first on Herman Boswell Property Management.

If you’re a Texas landlord who rents out property that’s part of a home owner association, it’s wise to familiarize yourself with the state laws that affect Home Owners Associations.  It’s yet another task on the never-ending landlord do-list.  But knowledge is power, especially when it comes to keeping your real estate investments safe.

Following are summaries of the top 3 Texas Home Owners Association laws that you need to know about.  They are the newest ones on Texas law books and took effect between September 1, 2011 and January 1, 2012.

Law #1: Regarding Home Owners Association records

Covenants, conditions and restrictions (CC&Rs) – the Home Owners Association governing documents that dictate how the homeowners association operates and what rules the owners (as well as their tenants and guests) must obey – must be recorded in the real estate records of the county where your property is located.  So should any amendments to them.

The same holds true for articles of formation, bylaws, design guidelines and any rules or policies affecting you as a homeowner.  A Home Owners Association must also post these documents online.

If an HOA does not adhere to these guidelines, then those rules, bylaws etc. are unenforceable.

Law #2: Regarding Home Owners Association board meetings

All Texas Home Owners Associations must give notice to home owners of in-person board meetings.  With certain exceptions for executive sessions, they must open these meetings to homeowners.

What this means for you as a landlord is that if you have not received notice about a meeting that concerns such issues that directly concern you (for example, fines and home assessment increases), boards cannot consider/decide upon those issues.

Law #3: Regarding annual owners’ meetings

Texas Home Owners Association boards must hold annual owners’ meetings.  If they do not, then you as a property owner have the right to call one.

If the board still will not hold a meeting following such a demand, then you and other home owners may form a committee to elect board members.

At Herman Boswell, we know that landlords can get squeezed between responsibilities to tenants as well as other entities like home owner associations.  This is where we can help.  Our team of real estate professionals can monitor each area of your life as a landlord so you don’t have to.  For property management expertise you can count on, contact us!

The post TOP 3 HOME OWNERS ASSOCIATION LAWS TEXAS LANDLORDS SHOULD KNOW ABOUT appeared first on Herman Boswell Property Management.

Family home in a north American suburb.

REMOTE LANDLORD PROPERTY MANAGEMENT

Do you own investment property in North Texas and live outside that area – or even in another state?  It’s a challenge for sure!  But sometimes that challenge can be overwhelming, even for the most organized individuals.

Following are four tips to help you succeed as a remote landlord.

1.  Automate as many of your services as possible

Some common problems that can cause friction between tenants and remote landlords are lost keys and lighting and/or watering systems that don’t turn on (or get shut off) at the proper time.

To avoid dealing with these hassles, you may consider investing in digital and/or automated systems.  For example, you could purchase a keyless entry service that allows for lock management from a smartphone.  And you could install automatic lights and/or sprinkler systems.

2.  Prepare a list of recommended services

Gathering a list of local services will ensure that your tenants have everything they need for almost any situation.  For example, you could provide information on all the local hospitals, police stations, and repair services.

You could also make a list for entertainment purposes, like parks, shopping areas, and restaurants.  Many tenants will appreciate this amenity, especially if they happen to be new to the area where your rental property is located.

3.  Hire a permanent cleaning/maintenance service

When a tenant vacates a property, you will need to make sure the premises are presentable for the next renter.  The best, most cost-effective way to handle this is to look for a service that is (1) on call and (2) offers a discount for long-term services.  Remember: one-time cleaning and maintenance services are much more expensive than hiring a person or company for the long term.

4.  Find a trustworthy property management team

Probably the single best thing you can do as a remote landlord is invest in the services of a property management company.  No matter where you call home, Herman Boswell can assist you with tenant placement/management, rent collection and maintenance.  Our experts are here to give you the freedom, flexibility and peace of mind you deserve: contact us today!

The post REMOTE LANDLORD PROPERTY MANAGEMENT appeared first on Herman Boswell Property Management.

Most tenants will maintain your rental property to a reasonable degree, follow the rules outlined in their lease and pay their rent on time each month.  Deadbeats, though, won’t.  When faced with uncooperative renters, eviction may be your best, and only, option.

Gather evidence

If your tenant is responsible for any property damage, take photos.  Also save paper copies of all written and electronic correspondence with your tenant regarding any other infractions, including noisiness and late and/or unpaid rent.

Go over the lease

Note any sections that the tenant has violated.  Be sure you are able to document your findings.

Send a notice of eviction

State the reasons for the eviction and what date the tenant must vacate the property.  Consult all local eviction laws, which vary from state to state.

File the eviction at your local courthouse

To make the eviction official, you’ll need to file the appropriate legal paperwork.  Your tenant will receive written notice that you have filed a case against him.

Take all evidence to court

The tenant might leave the property after you file the eviction notice.  But he or she may still take the case to court and argue against the eviction.  In that case, use your evidence to convince the judge that you have a renter who deserves to be evicted.

Dealing with tenants, even good ones, is hard work.  So having even one bad tenant could make your life hell.  But Herman Boswell can help.  Our experts know exactly how to handle difficult tenants in a way that will minimize damage to you and your property.  For the peace of mind you deserve, contact us today!

The post Evicting Deadbeat Tenants appeared first on Herman Boswell Property Management.

CoreLogic, a California-based provider of real estate information and analytics, issued a report that home prices in the Fort Worth-Arlington area decreased in January from a year ago. While this might be seen as bad news, this figure includes the sales of distressed properties and only represents a 1.9 percent drop compared with January 2011. Without the distressed sales included, home prices in the area are actually increasing by 3 percent. Distressed sales include short sales and real-estate-owned transactions, or properties sold by lenders.

Nationally, the trend was lower. Home prices, including distressed sales, declined by 3.1 percent in January, the sixth consecutive monthly decline. However, when distressed sales are excluded, prices were seen to still be declining by 0.9 percent. So things are definitely better than the national average here in the Arlington area.

CoreLogic’s chief economist Mark Fleming, commenting on the report, said, “Although home price declines are slowly improving and not far from the bottom, home prices are down to nearly the same levels as 10 years ago.”

In another report, the company found that completed foreclosures were down across the nation in January. There were 69,000 completed foreclosures in January 2012 as compared to 80,000 in January 2011. Texas ranked fifth as the state with the largest number of completed foreclosures over the last year ending in January 2012 with some 57,000.

The post THE REAL ESTATE MARKET IN ARLINGTON appeared first on Herman Boswell Property Management.

LANDLORDING : THE HIDDEN COSTS

 

Real estate concept.

The learning curve for new landlords can be steep.  There’s learning how to deal with tenants, maintenance and legal issues and of course, all the paperwork that goes with renting properties.

But that’s only part of the story.  If you are a novice landlord, you will also have to be prepared to cope with other costs that you may not have considered.

Increased insurance and tax costs

Rental properties can be more expensive to insure than regular properties.  For example, the premium for a rental home can run as much as 25% more than typical homeowner’s insurance.  Rent may help to cover increased costs – so long as it is occupied.  There may be times when it is not, such as the period between tenancies.

Unless you live on your rental property, you’ll likely be subject to an increased tax burden.  At the same time however, some expenses associated with renting the property may generate tax breaks.  Consulting with tax professionals can help clarify the possibilities inherent in your particular situation.

Administrative charges and legal fees

Landlords have to pay for administrative costs related to actually getting new tenants. This can include those associated with interviewing, checking credit histories and also references.  Additionally, many cities require that owners register rental homes, make them available for examination and absorb all costs associated with both.

Should a tenant need to be evicted or in the event of some other legal dispute, you’ll need to be prepared to pay for the services of a lawyer.  And sometimes the fees can be quite hefty, up to $200 per hour or more.

Maintenance costs

A landlord often has to spend money on upgrades to rental properties to attract suitable tenants.  And even after people do move in, he or she will usually be under some kind of contractual obligation to fix maintenance issues as they arise.  A security deposit can usually help offset these expenses – unless the tenant completely trashes the property, which does unfortunately happen.

With so many hidden costs, how can a new landlord get in the game and win it?

The experts at Herman Boswell can help you not only manage your investment properties, but enhance profitability.  Our dedicated professionals are among the most trusted names in property management in North Dallas.  For the peace of mind and security you deserve, contact us today!

The post LANDLORDING: THE HIDDEN COSTS appeared first on Herman Boswell Property Management.