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When you collect rent, money goes to pay business-related expenses such as insurance, taxes and the mortgage. It also gets used for other bills, such as those that come from advertising, property maintenance, utilities, water and garbage. And if you have a bookkeeper or handyman, you need to pay them as well.

But what happens when your rentals aren’t bringing in enough to pay for everything and cash gets tight?

The first thing to do is go over your monthly bills carefully, paying special attention to what’s going on with heat, electricity and water bills.  Maybe you have a tenant who needs to open a window because the temperature is too high in his or her unit.  If you control the thermostat, you might want to ask your renters whether they are getting too much heat.

If your tenants control in-home thermostats, ask them if you can run a check. Explain the situation to them. Perhaps you can get your renters to regulate their controllers more carefully.  If it turns out that that defective thermostats are what are causing the problem, you may need to make a few replacements.

You might also consider putting in some weather stripping along windows and doors. If your rental home, condominium or apartment complex was built before 1970, the building itself may not have proper insulation.  You may want to look into this, but be sure to do the math so that you know how long it will take you to get a return on your investment.

If it’s the water bills that are out of control, then you’ll probably want to do an inspection of all the faucets, toilets and water heaters for leaks.  A slow drip from any indoor or outdoor water-bearing device can add up to quite a few extra gallons that you have to pay for at the end of the month.

No matter how tight things get, you should never tap into money saved for taxes nor should you even think about using the security deposits your tenants gave you when they moved in. Some states like Texas are less stringent about this than others, but as a matter of ethics, it’s to your benefit to keep that money separate.

At Herman Boswell, we believe that the one of the keys to successful landlording is good cashflow management.  Our experts pride themselves on staying on top of the financial issues that matter most to our clients.  When you need an experienced, top-notch team real estate management team to safeguard your investments, contact us!

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Everyone wants to live in a safe place. But when you talk to potential tenants about your rental property, you shouldn’t  tell them it’s a totally safe area because you cannot predict the future and an attempted break-in is always a possibility.  However,  there are a number of things you can do to enhance tenant security.

1. Make sure the property you are renting out is in compliance with local housing codes

You can get this information from the building or housing department, the health department and the fire department. If your property is part of the neighborhood association, find out whether that organization provides free security checks. Remember, if you don’t act reasonably to meet local housing codes, you may be found negligent if any harm comes to your tenants.

2. Be proactive about fixing broken doors, locks and windows and keeping your property well-maintained

If you have not made the necessary repairs to a rental unit to ensure its safety and a burglar enters the premises, your renters may decide that you are liable and seek damages in court. Your best defense is to prove that you installed the locks on doors and windows, had a well-lit entrance  and kept shrubs and trees pruned so no one could hide behind them.

3. Take appropriate safety measures on the inside and outside of your rental unit

Even if local housing codes don’t require it, you may want to consider putting in handrails on the stairs if they are not already there. You’re not obligated to put a handrail  or nonslip tile in bathroom floors or to tack down loose carpet ends. However, anything you can do to improve safety for your tenants is well-worth thinking about.

Some other measures you might want to take include:

•  installing burglar alarms and smoke detectors;
•  putting a fire extinguisher in the kitchen;
•   putting a peephole in your tenants’ door;
•  changing locks after one renter moves out and before another one moves in; and
•  installing window pins that keep windows from being opened more widely.

At Herman Boswell, we know how difficult–but also how crucial–it is to keep up with property safety issues, particularly if you’re renting multiple units in different locations. Our experts make it their business to do all the things busy landlords like you can’t, such as following up with tenants about potential security problems.  When you need the help of trusted professionals to help you make the most of your real estate investments, contact us!

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If own a rental property but do not engage a property manager, you might want to look over a few points so see if you could benefit from such service. It could be that your valuable time is being taken up administrating your properties or that you are having difficulty handling problems that you never expected to occur. It can be a full-time business.

The first point to consider is how you are feeling about managing your own property. Is it something you enjoy or is it something that you find emotionally stressful? There are numerous situations that arise in managing a property which can be troublesome – rent collection problems, damage to the property from hidden activities of the tenants, complaints from neighbors, and up to legal involvement either to remove a tenant or because they are suing you. If these situations cause you to lose sleep, property management is something you definitely should look at.

Another important factor you should consider is how close you live to the property. If you live far away, the time it takes to respond to an emergency, do inspections, collect rent is obviously greatly increased. Correspondingly, your willingness to do these things can drop due to the inconvenience and things can go awry due to lack of attention. Further, if you are not willing to be on call 24/7 in case of an emergency, you are looking at a potential disaster occurring to your property.

If you have a number of rental properties, these points magnify.

To do it yourself, you definitely need to have excellent administration in place to take care of the accounting and legal matters from renting as well the maintenance skills to look after the wide variety of fix-it problems that will arise not to mention the patience to find the right tenant when you have a vacancy.

Overall, it is quite a business. Herman Boswell Property Management can assist you with the rental properties you own, whether one or many. Having over 37 years of experience, we know the property management game inside out. Put yourself in our capable hands.

We manage properties in all the following areas:

Arlington, Bedford, Benbrook, Burleson,Cedar Hill, Colleyville, Crowley,
Duncanville, Euless, Fort Worth, Grand Prairie, Grapevine, Hurst, Lake Worth,
Mansfield, Saginaw, Southlake, Watauga, White Settlement.

Photo credit: Danilo Rizzuti

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When it comes to ending a tenancy, you need to be as clear about your move-out terms as you are about move-in ones. Doing so will help you avoid expensive, time-consuming complications that could jeopardize your rental business.

1. Giving notice

Make it clear from the day your tenants sign their lease that they must give you written notice when they decide to move out. Following are some basic guidelines for the most common lease types:

• fixed-term: tenant occupancy ends after a pre-arranged period of time
• month-to-month: tenants should give 30 days’ notice
• year-to-year: tenants should give 60 to 90 days’ notice

2. Rental unit viewings

You should always give current tenants a courtesy notice of at least 24 hours that you plan to show the rental to others interested in taking over the unit. The only time when this does not apply is if the lease specifies that no notice is required, especially in the last month of occupancy.

3. Move-out specifications

Make sure your tenants know that they need to clean the rental and all provided items – especially stoves, refrigerators and dishwashers – to get their full security deposit back. You should also tell them to repair any damages to the apartment that go beyond normal wear and tear and take all belongings when they leave.

4. Final inspection

On move out day, both you and your tenants should do a final inspection of the rental unit. Use the inspection report that the tenants filled out on move in day to determine if anything has been damaged. Make careful note of any damage and then sign the report together.

5. Returning the security deposit

If your tenants have damaged the rental, left it unclean or neglected to pay rent or utilities, then you have a legal right to deduct whatever money is owed from the security deposit. Be sure to specify how much you are taking out (and for what) to the tenant.

Busy landlords like you often don’t have the time to deal with all the issues that come with ending a tenancy. That’s where the experts at Herman Boswell come in. Our team of real estate professionals can help you take care of your business so that your business takes care of you. Contact us today and let us show you a better way to manage your property investments.

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Most rental property owners worry about protecting their investment. From physical damage to the property to insurance claims to lawsuits brought by tenants, there are myriad ways that you can lose money. Fortunately, minimizing risks in a rental business doesn’t require a ton of money or a staff of experts. All you need to do is learn where you’re vulnerable and then take commonsense steps to minimize that vulnerability.

Here are five tips you can take to protect yourself against liability as a landlord. By acting now, you’ll enjoy a big payoff: reduced likelihood of lawsuits, harm to tenants and guests, damage to your property, and financial distress to your business.

#1: Get the Right Insurance for Your Property and Business
Don’t wait until a loss occurs before you determine whether you have the right insurance for your business and property. Review your current policy with your agent or broker, then discuss coverage options that fit your needs.

#2: Make Your Property Physically Sound
Keep your property safe so that people don’t get hurt. To do this, learn the basic legal requirements for repairing and maintaining your property, and then follow them.

Implied warranty of habitability. Virtually every landlord must comply with a legal rule known as the “implied warranty of habitability.” This means you must make sure your rentals are in a “fit” and “habitable” condition when tenants move in, and you must maintain this condition throughout the tenancy. Get familiar with your state and local health, building, and safety codes, and strive to keep your property compliant. (To learn how to find the laws that apply to your rental property, see Nolo’s Legal Research area.)

Take steps to prevent injuries and losses. In addition, take other reasonable steps to prevent injuries and other losses. For example, take all tenants’ repair requests seriously and fix problems promptly. Inspect your property yourself for hazards. If you can’t address a hazardous situation immediately, warn tenants and visitors about the danger. (For example, put traffic cones around a pothole, or post signs and safety tape near a spill on the floor.)

#3: Make Your Rental Property Accessible to Disabled Tenants
Make your property accessible to tenants with mobility impairments and other disabilities. Check whether structures on your property must follow the Fair Housing Act’s “design and construction” requirements. (Generally, multifamily buildings that were designed and constructed for first occupancy after March 13, 1991 must comply.)

Regardless of when your buildings were constructed, seriously consider all requests from a disabled prospect or tenant to modify your building in order to meet that person’s needs. Review each request on a case-by-case basis and grant it if it’s reasonable. For example, a prospect’s request to install grab bars in the bathroom or lower kitchen cabinets is probably a reasonable modification request.

#4: Remove Environmental Hazards from Your Property
Removing environmental hazards is often trickier than removing other physical hazards. Environmental hazards often can’t be seen, and they may not become apparent until they cause injury or property damage. For example, a landlord might not learn of lead paint dust on her property until a family gets their child’s blood test results showing elevated levels of lead. What’s more, in some cases environmental hazards remain invisible even once they’ve caused damage, as in the case of carbon monoxide or radon.

Do your best to address environmental hazards before they cause serious damage. Here are some ways to do so:

•  Require tenants to report all leaks and flooding to you promptly so that you can take quick action to prevent mold.
•  Maintain your heating systems and appliances, and install carbon monoxide detectors in order to prevent carbon monoxide build-up.
•  Comply with federal testing requirements when employees or contractors work on asbestos-containing building materials, such as sprayed-on ceilings. These tests will reveal to workers what’s in your building, and you can use this knowledge to protect your tenants, too.

#5: Prepare for and Handle Disasters and Emergencies
Take steps to safeguard your business and protect your property, tenants, and employees in an emergency. For example:
Back up your computer files and keep important documents (such as a mortgage, note, and management contract) in a secure and fire-proof off-site storage facility.

• Report suspicious objects, activities, and mail to the police, and take bomb threats seriously.
• Document the location of utility shut-off valves, a step that can save lives and minimize damage if a fire or other disaster occurs.
• Create an emergency procedures manual with an evacuation plan that’s tailored to your property.

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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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