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!

The post TENANT MOVE IN LETTER appeared first on Herman Boswell Property Management.

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!

The post 6 QUALITIES TO BE A SUCCESSFUL LANDLORD appeared first on Herman Boswell Property Management.

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.

The post WHAT FEATURES OF A RENTAL PROPERTY WILL ATTRACT TENANTS? appeared first on Herman Boswell Property Management.

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.

The post Landlords’ Rights in Texas appeared first on Herman Boswell Property Management.

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.

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!

The post LANDLORD RESPONSIBILITIES 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!

The post TENANT CHECKOUT LISTS appeared first on Herman Boswell Property Management.

It’s tax season again. And if you’re like most landlords, you’re busy tying up loose ends for Uncle Sam. But are you taking advantage of all the landlord tax deductions that are available to rental property owners?

Here is a list of the top landlord tax deductions that can help make the difference between whether or not you profit or lose money from your real estate investments:

1. Depreciation
The cost of a rental property is deductible through depreciation. But watch out: this only applies in the years after the year of actual purchase.

2. Interest
You can deduct the interest accrued on:

• mortgage payments on loans used to buy or upgrade rental property
• credit cards used for goods and services needed to maintain a rental property

3. Insurance
Premiums from insurance associated with rentals are also fair game for deduction. Following are several kinds of insurance that qualify:

• fire and flood insurance
• theft insurance
• landlord liability insurance
• health and worker’s compensation insurance (if you have employees)

4. Repairs
The cost associated with necessary and justifiable repairs (for leaks, broken windows, peeling paint, etc.) you make in a given year are fully deductible from your tax bill for that twelve-month period.

5. Employees/independent contractors
Whenever you hire anyone – from a repair person to an account or an attorney – to perform services for you related to your rental activities, you can deduct their wages or fees from your tax bill.

6. Casualty losses
If your rental property is destroyed because of a fire, flood or similar unexpected event, you may be able to get a deduction for all or part of your loss. How much you’ll be able to deduct will depend on how much of your property was destroyed and how much of the loss was covered by insurance.

7. Travel
If you have to do either short or long-distance travel that is related to your work as a landlord, then you can deduct the expenses related to that travel. Some of these activities can include:

• driving to a rental unit to deal with a tenant concern/complaint
• going to the store to purchase items for a repair work
• going to a professional conference or meeting related to landlording issues

At Herman Boswell, we specialize in helping landlords like you breathe a little easier. We’ll organize your business – and all the paperwork that goes with it – so that doing your taxes and managing your properties is a snap. Contact us today and let us show you a better way to go!

The post 7 LANDLORD TAX DEDUCTIONS appeared first on Herman Boswell Property Management.

A security deposit is a refundable deposit that tenants should pay before they move in to a property they have rented from you. As long as they abide by the terms of the rental contract they have with you, they should receive that money back once their lease has expired. Here are some security deposit tips on

However, there are some cases when you as landlord have a right to keep part or all of that deposit.

1. Early termination of the lease

Say that a tenant has to move out before the lease he or she has with you has expired. You have the right to take the costs associated with that breach – including those associated with courts and/or attorneys you may need to involve in the matter – out of the security deposit. How much you can claim and for what will depend, of course, on how your lease is worded on this issue.

2. Nonpayment of rent

Texas considers nonpayment of rent a breach of lease. When a tenant does not fulfill his or her contractual obligation to pay monthly rent, you are entitled to cover your loss with security deposit money.

3. Property damage

If a tenant has been careless with your property, you can use the security deposit to help repair such things as:

• large stains or holes in the carpet or on the walls/ceilings
• broken windows and/or doors
• cracked kitchen or bathroom countertop
• missing outlet covers
• excessive water damage to floors or walls
• un-returned keys

4. Cleaning costs

If a tenant has not made a reasonably effort to leave the apartment clean with no trash, food or personal belongings left behind, then you can subtract whatever it takes for you to make the apartment habitable for the next tenant.

5. Unpaid utility bills

If a tenant was required to cover utilities as part of their lease, you can use the security deposit to settle all unpaid utility bills.

Dealing with tenant issues – particularly those pertaining to rent and occupancy – can be time-consuming. Herman Boswell is here to help you with the day-to-day business of running your properties. When need the assistance of experts who understand property management like no one else in North Texas, contact us!

The post 5 SECURITY DEPOSIT TIPS FOR LANDLORDS appeared first on Herman Boswell Property Management.

You’re a savvy real estate investor, but are you a good landlord? For some people, managing properties is far more challenging than successfully buying and selling them. And to make land-lording financially viable, you also have to be willing to make a long-term commitment.  Here are some land-lording tips.

If you are wondering if the landlord game is right for you, ask yourself these six questions:

• Am I decisive?
• Do I enjoy working with people?
• Do I have good communication skills?
• Can I defuse potentially volatile and/or dangerous situations?
• Can I deal with uncertainty and risk?
• Do I have the discipline to stick to a long-term plan?

Too many people make the mistake of thinking that land-lording only requires that you find suitable tenants for your property, which is itself a lot of work. Once that’s done, all you have to do is just sit back and collect monthly rent payments.

Nothing could be further from the truth. Land-lording is a 24/7 job, especially if you’re managing more than one property and/or multiple family dwellings like apartment complexes. If a tenant has a problem, you need to be available to respond to it in a timely manner. And if you discover that it’s the tenant that’s the problem, then you need to be able to take steps to protect your investment and, in some cases, other renters.

At Herman Boswell, we’re in the business of managing people and properties. Let us help you achieve the peace of mind and financial security that comes from taking care of long-term real estate investments the right way. Contact us today!

The post LAND-LORDING TIPS – IS IT RIGHT FOR YOU? appeared first on Herman Boswell Property Management.