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!

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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!

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Late fees are an important part of any property management business.  That’s why it’s important that you make it clear when rent due dates, grace periods and late fees are due in all rental agreements you draw up with your tenants.

Following are five strategies you can implement to ensure you receive the rent due on your investment properties in a timely manner:

1. Define payment terms

Every lease agreement should begin with clear rent payment terms.  Information should include the day rent is due each month, what the grace period is (this can range from 3 to 5 days) and when rent is considered late.

2. Determine late charges

The late charges you establish should be fair, reasonable and be in keeping with monthly rent and/or state regulations.  In general, the total amount you should charge should not be more than one quarter of the month’s rent.  They can be assessed as:

• a flat fee due immediately after the grace period ends
• a percentage of monthly rent (usually 4-6%) based on rent amount
• a daily late fee that accrues each day after the grace period

3. Contact tenants

If a renter misses a rent deadline, give him or her a reminder via email or the telephone. Mistakes happen, but sometimes one late payment may lead to more in the future.

4. Set precedents – and stick to them

As a landlord, you need to be consistent with your late fee policies.  Failing to communicate and impose fees could cause you problems later, especially if you have to evict a tenant.  Courts need evidence that you are abiding by rules in order for you to protect your legal rights as a landlord.

5. Amend rental agreements

If your current leases do not have clear rent payment terms, consider revising them as soon as possible.  Depending on the kind of agreements you have, you may not be able to do this until renewal time.  Contact a legal professional if you need help.

Collecting, and enforcing, rental policies are among the difficult tasks busy landlords face.  But Herman Boswell can help.  Our professionals have the skills and savvy that get results.  Let us show you an easier way to manage your investment properties: contact us today!

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