Sometimes – and especially during times of economic uncertainty – it happens that rental units will stay empty for longer than you had anticipated. And this can be a problem, especially if you have to make mortgage payments on your property every month. So what can you do to minimize losses?

You have two choices. The first is to ride it out and wait until you can get a suitable tenant. The second is to consider collecting less rent just to keep money coming in.

If you choose the latter option, you’ll need to ask yourself whether or not you might be asking too much for the unit. In general, you need to know that renters are cost-conscious individuals who would rather have a little extra money after they’ve paid rent than know their money is going to a landlord.

Try lowering the price by a small increment (say, $25) and marketing the unit as a rent special. If that doesn’t do the trick, reduce the price again. Not getting the full price you want may make your budget tighter, but it’s usually much better to have an occupied unit that brings in money on a regular basis than a vacancy that drains your projected income.

Another strategy is to lessen the amount you’re asking for security deposit. But this can be risky. No matter how thoroughly your screening procedure, things can happen – such as illness or job loss – that can force a tenant into arrears. And a security deposit may be all you’ll be able to get to pay for missing rent.

At Herman Boswell, we understand how important your real estate investments are to you. Our team of professionals can help you come up with a plan to maximize tenant occupancy without compromising your financial future. When you need the know-how of the property management experts more North Texans trust, contact us!

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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!

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A well-drafted lease agreement isn’t just a good idea. It’s an absolute necessity. Without it, you could find yourself in trouble with any tenants you contract with and in more legal hot water than you really want. That’s why it’s important to include these 6 points in any document you hand over to anyone who rents from you. Make sure it gets checked by an attorney too.

1. Property description

Give the address, including apartment and/or building numbers and any other information that makes the property unique from all others.

2. Lease length/time frame

Put the exact beginning and end dates of occupancy. If there is a specific time of day you want the tenant to vacate the property, spell that out too.

3. Security deposits/rent payments

Be clear about what constitutes a security deposit (first and last month rent, pet/damage deposit etc.) and how and when you will release that money at the end of the lease.

With rent, specify exactly when it is due, how tenants can pay you and what penalties he or she can expect if rent is late.

4. Terms of renewal

State whether or not tenants can renew a lease and under what terms (month-to-month, annually). You may also wish to include an escalation clause to accommodate possible rent increases at the time of renewal.

5. Occupancy and sublet agreements

You should be very explicit about how many people can live in the rental unit and how the unit should be used. Do you want your tenants to use it for residential purposes only? Can they have a home office?

6. Landlord rights regarding entry/inspection

If the lease is long-term, you – or someone who works for you – will likely need to enter the rental unit to inspect it and/or do repairs. Include how much notice you will give. Also state how repair persons will gain entry.

As important as it is to draft a good lease agreement – preferably in tandem with an attorney – it’s also important to ensure that tenants understand and comply with the terms of that agreement. The experts at Herman Boswell can help you do just that. When you need the experience of people who know the ins and outs of property management and are here to help you make the most of your real estate investments, contact us!

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For Dallas area owners and other real estate professionals, the competitive market makes connecting with the right people more important than ever.

Owning a property is more than just collecting rent from tenants and scoping out new real estate opportunities. For busy property owners, enlisting the help of a property management firm serves several purposes – from interviewing prospective tenants to handling maintenance requests – but there’s one perk of hiring a property management company that often goes overlooked. Marketing! Successful property owners know that marketing to the right people at the right time is vital to attracting and keeping the best tenants. Effective marketing also solidifies your company’s reputation in the community and can open doors to more investment opportunities. So just how do property management companies facilitate effective marketing? Let’s take a look.

Property Management Companies Have a Larger Network

Effective marketing works by targeting large numbers of people in a strategic way. While a solo property owner may have a network, it likely doesn’t compare to that of a property management firm and its agents. Being realistic today’s real estate market is very competitive so it pays to have access to a more expansive network.

By enlisting the help of a property management company, owners uniquely position themselves to be seen by more tenants as well as real estate professionals. This two-pronged network will help property owners expand their businesses and attract higher quality tenants. For owners who frequently buy and sell, they will get access to more solid leads while allowing the property management company to leverage their network and do most of the footwork.

Social Media and Online Marketing

In today’s technology-driven world, there’s no way to discuss marketing without mentioning social media and online marketing. If a property owner is not using these forms of marketing, they are doing their business a disservice. A property management company can assist with coming up with the perfect online marketing strategy to drive website traffic, attract leads, and recruit prospective tenants.

When people are searching for a rental or investment property, the internet is one of the first places they look. Social media has also exploded as a way to connect with buyers and renters and solidify your web presence. A professional property management company will help property owners develop an effective web and social media strategy to achieve measurable goals.

Property management companies likely have a larger social following that they are more than willing to extend to the property owners they work with. By sharing relevant and strategically curated content on its social media channels, property management companies help property owners develop a strong web presence and increase their bottom line.

Enlisting The Help Of Longtime Residents

Social media and network leveraging definitely have their place in a comprehensive marketing plan but property owners should never underestimate the importance of longtime residents. When it comes to setting your properties apart from the competition, positive feedback from satisfied residents can go a long way. Property management agents are on the front line and interact with tenants on a regular basis, so they hold special insight into what attracts good prospective tenants and what encourages current tenants to renew leases. An experienced property management firm will have agents who know the keys to effective tenant screening and have the personality that fosters tenant trust.

Property Management Companies Take Your Business to the Next Level

For Dallas area owners and other real estate professionals, the competitive market makes connecting with the right people more important than ever. If you are looking to scale your property ownership business, seek a qualified property management firm with high-level expertise in various forms of marketing. Herman Boswell Property Management employs a team of professional property management associates who work closely with property owners to ensure financial success and long-term tenant satisfaction.

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Choosing an Experienced Property Management Firm

Both commercial and residential properties give owners a way to expand investment opportunities and enjoy passive income, which is why many owners are open to owning both types of properties. When it comes to property management, there are some common themes between residential and commercial properties. Whether you’re a residential property owner looking to venture into commercial properties or vice versa, it’s important to understand the similarities and differences between the two.

Tenancy Differences

Generally, tenancy types differ between residential and commercial properties. Residential properties refer to those that can accommodate up to four units and these are usually single family homes, condos, or duplexes occupied by tenants as living space. Residential properties can even be owner-occupied while still generating a profit from rental income.

Commercial properties, on the other hand, refer to buildings or land that is not designed for living space but is intended for businesses purposes. These properties typically have five or more units designed to be leased to separate business owners and include office buildings and retail space. Business owners rent commercial spaces from owners or investors and are designed to generate profit for both the owner and the tenant. Commercial property management also comes with higher expenses than residential management but these expenses are often passed on to the commercial tenants. Additional commercial expenses include but are not limited to, building maintenance, property taxes, and commercial property insurance.

Being aware of the differences between commercial and residential ownership is critical in hiring the right property management firm. Knowledgeable property management professionals will be able to navigate the often confusing world of commercial property management, saving owners valuable time and money that comes with self-management.

Maintenance

In larger commercial spaces like office complexes or shopping malls, on-site, full-time maintenance is standard. This contrasts sharply with residential properties that may only have a few tenants and may only require a handyman who works on an as-needed basis. In many cases, state law requires that commercial properties have on-site maintenance in place. Commercial maintenance needs to be organized, meaning the property manager will need to keep detailed records of ongoing maintenance requests, coordinate maintenance schedules, and advise tenants on how to initiate and track maintenance requests. A skilled property management company will be able to guide owners and ensure they remain in compliance with maintenance laws and ordinances.

Owner and Property Management Responsibilities Differ

Some may argue that owning commercial property management is a lot more difficult than residential property management, but this isn’t necessarily true. For owners and property managers, commercial properties may be slightly easier to manage than residential properties for a few reasons.

In general, commercial tenants shoulder a lot more responsibility compared to residential tenants. Since commercial properties aren’t designed for habitation, many of the laws that apply to residential tenants aren’t applicable to commercial tenants. Space for commercial use does not need to adhere to habitability requirements and the laws concerning eviction are completely different in commercial agreements. Additionally, most commercial properties are primarily used during daytime hours, so 24-hour maintenance isn’t usually required and late night noise complaints will be practically non-existent.

Leasing Is Simpler for Residential Properties

Another major component of property management – both residential and commercial – is leasing. In this case, residential leases are generally easier to execute than commercial lease agreements. Generally, commercial leases are more difficult to break an include several termination clauses that make it disadvantages to tenants. Commercial leases are more complicated, so it’s advisable to have a qualified property management team to deal with leasing details. Professional property management firms have the necessary tools, software, and skills to properly execute commercial leases, saving owners the hassle.

Choosing an Experienced Property Management Firm

One of the biggest mistakes an owner in Dallas can make is going into a commercial property ownership situation without full knowledge of what’s required. Navigating commercial property management is best left to professionals like those at Herman Boswell Property Management. The experts at Herman Boswell Property Management bring a wealth of knowledge and experience in both residential and commercial property management in Dallas, Texas, and demonstrate a clear understanding of owner and tenant expectations in both spheres.

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If you’re a landlord, your experience with real estate investment is probably more positive than negative. Unfortunately, though, a sizable minority of landlords – about 33% – report that they would not buy property to lease again.

Part of the reason this happens is because some would-be investors make decisions based on prevailing conditions, which are always in flux. Smart investors know that the way to building a real estate portfolio that yields good returns over the long-term is to stay the course.

Landlords also lose interest in real estate investment because they underestimate just how much effort actually goes into successful property management. Indeed, finding and keeping good tenants, and staying on top of all of the administrative, financial and legal issues can easily become a full-time job.

Here are a few ways you can avoid the landlord burnout trap:

1. Be money-smart
Know exactly how much money you can invest and don’t go beyond those limits. If necessary, consult a financial adviser. Remember as well that real estate investing is a marathon and not a sprint.

2. Don’t let real estate trends rule your life
It’s important to stay aware of what’s happening in the real estate market. But don’t let positive or negative media hype govern your decision to buy and lease property.

3. Do your research
Use the Internet to research the neighborhoods you’re interested in and visit them. Also try to get an idea of the property values in those areas and how they have fared over time.

4. Take stock of your personal and professional responsibilities
A landlord’s job is labor-intensive. If you’re not a full-time investor, know how much time you have available for landlording duties and stick to a schedule.

Another way to avoid burnout is to contact Herman Boswell. Our team of experienced experts can help you manage your property and put you on the road to long-term financial security. Let us help you achieve your investment goals today!

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Being a landlord means that you have to collect rent. This one task is probably the most important – and sometimes the hardest – thing you will do at the end of every month. Rent collecting requires business savvy as well as good people skills.  When you really think about it, it’s an art form.

The laws in most states require that rent be paid on the first of the month. In some states, however, tenants must pay their rent by the last day of the preceding month; and in still other states, landlords have the option of determining rent due dates. If you have rented property to someone who wants to move in after the start of the month then things can get a little complicated.  You can:

• collect partial rent for each day that remains in month plus a full rent payment when the new month begins  OR
• opt to start the rental cycle on the day the tenant moves in and collect payment every 30 days thereafter

You also need to make sure that the rental agreement between you and your tenant clearly states when and how you want to be paid especially if the due date falls on a weekend or holiday. It’s also important to put in writing when rent will be considered late and when you will begin to tack on late fees.

Then there’s the small matter of bookkeeping. You have to keep careful record of payments received for each individual tenant. And in the event a tenant owes you money, you need to monitor the outstanding balance and whatever payments have been made (or not) to clear it (or not)  from your books.

As if that weren’t enough, if your lease with the tenant states that he or she can pay for some of the repairs in the rental unit then the tenant can legally deduct those charges from the following month’s rent. And if the tenant feels that there’s a major problem with the rental unit then that person can legally withhold rent until the situation gets resolved. And as with everything else, you have to make note of everything and be prepared to deal with an angry–or unreasonable–tenant.

But you have options. The property management professionals at Herman Boswell can lighten your work load by serving as your rental unit representatives.  Regardless of whether you lease apartments, condominiums or homes, we have the expertise you need to maximize the returns on your investment. Contact us and make your life easier today!

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If you own and manage rental properties, you need to know that the presence of mold can put you at risk of litigation. In the last decade,tenants across the country have won hefty settlements from landlords for health problems – such as nausea, asthma, rashes and chronic fatigue – allegedly caused by exposure to toxic molds.

Mold comes in many colors and shapes. The ones that are a cause for concern come in black, white, green or gray varieties and go by such names as:

• stachybotrys
• penicillium
• asperligus
• fusarium
• paecilomyces

Some molds are visible and have a distinctively bad smell. Others are more difficult to detect and live between walls, under floors or in basements and attics. Buildings in Texas are especially vulnerable to mold because of the humid climate. Wherever moisture is present, mold thrives.

If a tenant claims that his or her rental unit has mold, the wise thing to do is act on the complaint right away. Most mold – such as the kind that grows on shower tiles – is not harmful to human health. It’s still important, though, that you show your tenants that you are taking their concerns seriously.

The first thing to do is determine what’s contributing to the mold. The most common causes are leaky pipes, windows and roofs. Since landlords in Texas are responsible for maintaining fit and habitable housing and repairing rental property, you will need to fix any structural problems that might be giving rise to the mold as soon as possible.

If you can’t pinpoint the cause, you should call an inspection company to run tests in the rental unit in question. Even if you are able to figure out what is behind the mold, it’s still a good idea to get official documentation. That way, you’ll be able to show that have acted in good faith and adhered to your responsibilities as a landlord.

At Herman Boswell, we understand the importance of staying on top of tenant concerns, especially where issues of health and habitability pertain. Our experts are here to help you manage your real estate investments so that you can have the peace of mind you deserve. Contact us today!

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After roughly seven months of possession, Ken Robinson’s time ran out in an upscale abandoned Flower Mound home this past week. Robinson started occupying the $340,000 home last July when his research could not find the owner nor the mortgage holder of the property. Using a little known Texas law of “adverse possession” he claimed rights to the house after filing a claim form with Denton County that he downloaded off the Internet and paying a $16 filing fee. He became an instant media and Internet celebrity with law students at SMU proclaiming his use of the law “genius.” Though his upset neighbors accused him of breaking into the home, he kept up the property, mowing the lawns and doing other landscaping work.

This past month, Bank of America finally stepped forward and foreclosed on the property and gave Robinson til February 13th to appeal or move out. Robinson quietly slipped away leaving the home again abandoned. The law of adverse possession can only be effective when a property has been abandoned and occupied over a period of years. So Robinson had no legal standing to remain in the property or argue it should be his as a result of his slight possession.

Robinson’s act of using adverse possession however had some consequences. It set an example and created many copycats claimants in Texas – all of whom were unsuccessful. In one amusing case, a person took over the home of someone who was only away on vacation, threatening them with legal action when they returned. Undoubtedly it was not funny to the homeowner nor to horrified neighbors.

This whole situation speaks of the need of adequate property management whether a home is abandoned or not. Having a property left unattended and uncared-for for a lengthy period of time is just an invitation not only to unkempt grounds and building disrepair but to vandalism and worse.

If you own rental property and it is currently vacant, it would be a wise investment to have the property cared for. Even if it is not vacant, Herman Boswell Property Management has 37 years of experience in handling property for investors. They know how to do things right and can use that experience to help you. Give them a call and find out.

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When it comes to marketing your rental property, you have a lot of choices–almost too many. You can put an ad in the local newspaper, list the property with a home finding agency and/or put up a sign in the front yard.  And that doesn’t even include your online options. It all depends on who you want to have as potential tenants.
Once you’ve figured out what might work best, then there’s the issue of what you should say about the apartment, home or condominium you want to rent. If you have any doubts at all, then you need to review the Fair Housing Act which describes exactly who is entitled to rent (or buy) from you.

Knowing what this Act–along with other state and local fair housing laws–says is especially important.  Any ad you place cannot contain words, phrases, symbols or images that could indicate or imply you have discriminatory preferences. You also have to watch out for any religious references. Saying that your rental unit is located near a  particular church or other religious establishment could suggest unintended limitations or exclusions.

The best way to market your property is to be as neutrally descriptive as possible. You can mention prices, amenities, when the unit will be available for move-in and whether references and/or a credit check are required. You can also talk about location–without referring to any religious establishments–and given address. And of course, you can talk about all the special features that make your unit stand out:  for example, spaciousness, affordability and quietness.

Even after you’ve figured out where to market your property and what you can legally say about it to make it sell, you need to have a plan in place regarding what you will do if your marketing approach doesn’t yield the results you want.  Pretty exhausting, isn’t it?

Herman Boswell is a property management firm that understands the needs of busy landlords like you. We are real estate experts that know what it takes to successfully market a rental unit to people who will be good tenants. That is, who will pay rent on time and treat your property with the respect it deserves. When you need a team that knows the DFW market like nobody else, contact us.

Photo credit: jscreationzs

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