Collecting rent is a significant part of your job as a landlord. But  it can also be one of the toughest. What, for example, do you do when a tenant gets behind on rent?  This can be an especially sticky situation if the tenant in question has gotten laid off or is experiencing other serious issues that are interfering with his or her financial stability.

The first time this happens, go to your tenant and ask what the problem is.  You can do this in person or by letter. Either way, keep a friendly and professional tone. No matter what may be going on don’t become emotionally involved in your tenant’s problems.  If the rent remains unpaid after your intervention and after a predetermined dated, then you’ll need to begin the eviction process.

You can also opt to have your tenant’s wages garnished.  Garnishment is a legal process that allows creditors to take a specified sum from a person’s wages, income tax refunds, or bank account to satisfy debts such as back rent. If you choose to do this, you’ll need to know where your tenant works and have his or her social security number.

Garnishing income tax refunds or a savings account is more likely to give you most of what you are owed.  Just as when you garnish funds from a tenant’s wages, you’ll need to have his or her social security number as well as the name of the bank where the savings account is located.

You can also garnish income tax refunds to be paid the following year. You’ll need to file papers by no later than the fall to collect money being refunded in the next year. Be sure you know when the exact filing deadline is, otherwise you may find yourself unable to collect what’s owed you through this particular process.

The experts at Herman Boswell are experienced professionals who know just how hard it can be to not only get the rent you’re owed, but also deal with tenants who won’t–or can’t–pay. We help you manage your real estate investments with a minimum of fuss and a maximum of satisfaction.  Contact us today!

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The Texas Association of Realtors released its first quarter report on the Texas housing market this week.

They found that the Texas real estate market had “gained positive momentum in the first quarter of 2012” and that the “volume of single-family home sales in Texas was 12% higher than the same quarter of 2011 and the median price increased by almost 3% over the same time frame.”

“The watchword for Texas real estate in 2011 was ‘consistency,’ in both sales volume and price. That allowed us to emerge from last year with stable sales volumes and strong property values,” said Joe Stewart, chairman of the Texas Association of Realtors. “Now, in 2012’s first-quarter results, we see a strong increase in sales volume and a meaningful increase in the median price. That indicates positive momentum for the year ahead.”

45,502 Texas homes were sold in the first quarter of this year, a 12% increase from the same quarter last year.  The price was also 2.7% higher than first quarter 2011 at $147,000.

Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, said: “We believe several factors are driving the strong performance of the first quarter, including continued job growth in Texas and some increased access to credit for home buyers. Most of all, we’re starting to see a shift in Texans’ attitudes toward real estate. Essentially, buyers and sellers have higher expectations for the market, so they’re beginning to take action and we’re starting to see the impacts.”

The real estate statistic of “months inventory” also decreased which is a healthy trend.  The stat measures the balance between demand and supply in the housing market and the Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market.  The months inventory decreased from 7.6 months in 2011-Q1 to 6.0 months in the first quarter of this year.

Stewart concluded, “If all the indicators play out as we expect, the Texas real estate market is in for a busy spring and summer.”

Photo credit: ddpavumba

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In another twist on “adverse possession,” a Woodlake Drive man, Chris Attig, filed such a claim on an abandoned property beside his home in order to protect his own property and the property value of the neighborhood. Attig decided he needed to take action last August after a break-in at the property, which has been vacant for two years, and filed the claim with Dallas County.

The property had already garnered three violations for rotting wood, litter, and a dirty pool from the city’s Codes Department.

Ally Bank apparently owns the $269,000 house but has done nothing to keep it up.

Upon filing the claim, Attig put chains on the doors and paid a $3,000 tax bill. He also invested $2,000 for a new fence.

Attig told News 8 recently, “I’m afraid that nobody’s going to step up and try to fix this property, and it’ll continue to be a threat to my family and all the families who are around here.”

He said he was not interested in living in the home or renting it and his only concern was maintaining the property so it will not continue to degrade the neighborhood. He was willing to drop his claim when someone stepped up to the plate to take care of the property.

News 8 contacted Ally Bank but it would not say anything about its plans for sale or even upkeep of the house.

The lesson is clear that owners of such abandoned homes need to take care of the properties. Property management is a skilled activity which saves time and ultimately money. The value of properties under management do not lose value due to decay and neglect and are maintained so that expense repairs are not necessary for later sale, lease or rental. This protects the investment and those around the property who become affected by its lack of care.

Herman Boswell Property Management has a lengthy history of successful and efficient property management in Arlington and surrounding areas.

Contact us if you have any questions.

Photo credit: renjith krishnan

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As a service, we are publishing here the information page from the Texas Attorney General on renter’s rights.

The thought that property management is an easy task that can be undertaken by anyone on a part-time casual basis is permanently dispelled by the following. It is a heavy responsibility being a landlord and one that takes time and attention as well as knowledge. Professional property management as done by Herman Boswell Property Management can make being a landlord an easy one not an onerous and unpleasant task.

Texas Attorney General
Tenant Rights

The relationship between Texas landlords and their tenants is governed by several statutes, particularly Chapter 92 of the Texas Property Code, and by various court rulings. However, the most important source of information about your relationship with your landlord is your rental agreement, whether it is written or oral.

Some landlords prefer oral agreements, but it is more common for them to require your signature on a written lease. Be sure to read the lease carefully before you sign it.

If you want to change a part of the lease, discuss it with the landlord. If the landlord agrees, the two of you should decide how you want to word the change, and then write it into the agreement. Both you and the landlord should then initial the change. For example, many standard leases prohibit pets, but your landlord may be willing to accept a pet if you put down extra money as security.

Peace and Quiet
Your renter’s rights as a tenant include the right to “quiet enjoyment,” as it is called in the law. This means the landlord cannot evict you without cause or otherwise disturb your right to live in peace and quiet.

If other tenants in your building are disturbing you, you should complain to the landlord. The landlord has a duty to see that you are protected from other tenant’s wrongful behavior. Of course, you may not disturb other tenants, either.

Except under certain circumstances and subject to certain conditions, a landlord may not interrupt utilities to a tenant unless the interruption results from bona fide repairs, construction, or an emergency.

Health and Safety
You have a right to demand that the landlord repair any condition that materially affects your health and safety. Under Texas law, by renting you the property, the landlord guarantees that the unit will be a fit place to live.

SB 1448 (81st Regular Session), effective January 1, 2010, now grants justices of the peace authority to order landlords to repair or remedy conditions affecting a tenant’s health and safety, as long as the cost of the repair does not exceed $10,000. Tenants can go to justice court without an attorney to obtain a repair order.

Under certain conditions, you and the landlord may have a written agreement that you will make needed repairs. The landlord does not have a duty to pay for or make repairs if you or your guests cause an unsafe or unhealthy condition through negligence, carelessness, abuse or accident—unless the condition resulted from “normal wear and tear.”

Also, the landlord must provide smoke detectors. You may not waive that provision, and you may not disconnect or disable the smoke detector.

Security
Although there are some specific exceptions, under Texas law, a dwelling must be equipped with security devices such as window latches, keyed dead bolts on exterior doors, sliding door pin locks and sliding door handle latches or sliding door security bars, and door viewers.

These devices must be installed at the landlord’s expense. If such devices are missing or are defective, you have the right to request their installation or repair.

If You Have Problems
If the landlord won’t make repairs needed to protect your health, safety, or security, and you follow the procedures required by law, you may be entitled to:

• End the lease;
• Have the problem repaired and deduct the cost of the repair from the rent; or
• File suit to force the landlord to make the repairs.

You MUST Follow These Steps:

1. Send the landlord a dated letter by certified mail, return receipt requested, or by registered mail, outlining the needed repairs. You may also deliver the letter in person. Keep a copy of the letter. Be sure that your rent is current when the notice is received.
2. Your landlord should make a diligent effort to repair the problem within a reasonable time after receipt of the notice. The law presumes seven days to be a reasonable time, but the landlord can rebut this presumption. If the landlord has not made a diligent effort to complete the repair within seven days and you did not have the first notice letter delivered to your landlord via certified mail, return receipt requested, or via registered mail, you will need to send a second notice letter regarding the needed repairs.
3. If the landlord still has not made diligent efforts to repair the problem within a reasonable time after receipt of the notice letter sent by certified mail, return receipt requested or by registered mail, you may be entitled to terminate the lease, repair the problem and deduct the cost from your rent, or get a court to order that the repairs be made. You should consult with an attorney before taking any of these actions.

Under Texas law, it is illegal for a landlord to retaliate against you for complaining in good faith about necessary repairs for a period of six months from the date you made such a complaint. Of course, you can always be evicted if you fail to pay your rent on time, threaten the safety of the landlord or intentionally damage the property.

You do not have a right to withhold rent because the landlord fails to make repairs when the condition needing repair does not materially affect your health and safety. If you try this method, the landlord may file suit against you.

Recovering Your Deposit. Most landlords require you to pay a security deposit to cover any repairs needed when you move out or to cover your failure to pay the last month’s rent. By law, landlords cannot refuse to return the deposit without a valid reason.

Deductions for damages. Under Texas law, you must give the landlord a forwarding address and the landlord must return the deposit — less any amount deducted for damages — within 30 days. If the landlord withholds part or all of your deposit, he or she must give you an itemized list of deductions with a description of the damages.

Normal wear and tear. The landlord may not charge you for normal wear and tear on the premises and may only charge for actual abnormal damage. For example, if the carpet simply becomes more worn because you and your guests walked on it for a year, the landlord may not charge you for a new carpet. If your water bed leaks and the carpet becomes mildewed as a result, you may be charged.

Advance notice requirements. You should check your rental agreement to see if it requires you to give the landlord advance notice that you are moving. Many leases require 30 days notice as a condition of returning your deposit.

If you give your landlord your new address in writing and you do not receive your deposit or an explanation within 30 days of your departure, contact the landlord. If you cannot resolve the problem satisfactorily, you may wish to consult an attorney. You can also contact the Better Business Bureau or your local tenant’s council. You can also file a complaint with this office.

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As landlord, you know that bad tenants are bad for business. That’s why it’s so important to research rental candidates before turning over the keys. But doing thorough background checks on individuals can also present its own set of headaches.

First, you need to make potential applicants to fill out an application with their name, social security number, driver’s license number, current address and get their permission to run a credit check. You also have to ask for personal, work and rental references, which will require you to make numerous calls and inquiries.

An interview, whether formal or informal, is also an important part of the process, as it gives you an idea of the kind of person you might be dealing with. A credit check is also crucial because it can give you much-needed insight into that individual’s rental history. Unfortunately, both take time.

When running a credit check, you may only get an incomplete view of an applicant because credit bureaus don’t always record rent payments. This will mean using the services of a company that specializes in researching potential clients to get a more accurate financial picture of the person who wants to rent from you.

You also need to check public, eviction and criminal records. Doing so will make certain that a potential tenant isn’t in bankruptcy, hasn’t ever been evicted or been the subject of court proceedings. Any of these factors could make for a scenario straight from your worst nightmare.

The experts at Herman Boswell Property Management understand how time-consuming checking out potential tenants can be. At the same time, we also know that careful screening is key to avoid doing business with deadbeats. That’s why we go the extra mile for you and treat your properties like the the important investments they are.

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Let’s face it: dealing with renters can sometimes be stressful. But if you have to also deal with tenants who have missed rental payments and don’t seem to care about coming up with a solution to the problem, then you have more problems—and bigger headaches.

Giving renters time to pay their missed payments is important; so is asking them to stay in touch with you regarding rent issues. If you find that your tenants are willfully disregarding your efforts and that more than a few weeks have passed, then you have to escalate the process, which usually means sending out an official notice to pay rent or face eviction.

If more time continues to pass and still don’t see the rent (and any late charges that may accrue), you may, in moments of extreme aggravation, consider your tenants out or shutting off their utilities. Of course, you don’t do either, because both actions are illegal.

Having exhausted other, more amicable means of settling the non-payment problem, you start legal proceedings against your renters. But before a lawyer can take action, you may have to show that as many as four months have gone by without you receiving rental payments from your tenants. In the meantime you’re losing money—and probably a lot of sleep as well.

Herman Boswell Property Management understands the needs of landlords like you. Managing investment properties is a more than full-time job that requires both business and interpersonal savvy. Count on us to handle even the most difficult rental situations with the integrity on which we made our name and through which we’ll protect yours.

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When you are a landlord, you’re not only responsible for managing tenants but also making sure that your rental units are both safe and habitable. And if you do what you’re supposed to, taking care of just that one aspect of rental property management can eat up more of your time then you expected or wanted.

If you are either renovating a home or condominium into an owner-occupied dwelling or buying a small apartment complex with just a few units, the first step is to determine what the zoning regulations and local building codes require.  The second step is to develop a budget as well as a list of what you must do and what can’t do, based on the funds available. For both steps, you need to go to City Hall.

Converting a home into a rental requires that you follow local building and zoning codes regarding renovations and building additions. You also have to meet codes that may have been ignored by previous owners because you are now responsible for the property.

Since building codes exist to ensure the health and safety of occupants, you are legally obligated to repair things that break or don’t work properly, such as kitchen or bathroom plumbing. You also have to keep the property free from rodent and insect infestation. And if there’s an emergency, you have to be available day or night to respond.

What you should not do are unnecessary renovations that cost you money. For example, you may think that purchasing expensive appliances or knocking down walls to gain extra space will give your property greater appeal and decrease the time it takes to get the unit rented. But the reality is that those kinds of upgrades won’t pay for themselves over the long haul.

Property maintenance is a full-time commitment; so is managing tenants. Why end up working the equivalent of two jobs when you could turn both of these landlording functions over to us at Herman Boswell Property Management? We have the experience and know-how to get the job done right. Contact us today and let us help you get more out of your investments–and your life.

Photo credit: David Castillo Dominici

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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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