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!

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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!

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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!

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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!

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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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Tenancies run in cycles. A new tenant moves in to your rental apartment or home, stays for a period of time and then leaves. After that, you need to find a new tenant so you can keep up with proprietary bills. But what should you do between the time the old renter moves out and the new one moves in?

Take care of the small stuff

Tenants sometimes forget to have gas and electricity services turned off. So one of the first things you’ll need to do is contact the utility company to make sure everything is in order.

Evaluate the interior

No matter how careful a tenant has been, you’ll still need to make sure that the inside of the apartment receives at minimum a new paint job. You may also want to consider modernizing the kitchen and/or bathroom and adding up-to-date amenities like “smart” appliances or door locks. Remember: the more you invest in a rental, the more likely it is that you will attract higher quality tenants who can pay higher rent and will be more likely to stay for a longer period.

Don’t forget the exterior

Where applicable, don’t forget to also pay attention to the exterior of the property. What a potential tenant sees on the outside will leave a lasting impression, and you want that impression to be positive. Simple things like fresh exterior paint and or a few potted plants by the front door can do wonders for property image.

Replace the carpet or flooring

Once you’ve made all the necessary repairs on the inside and out, you may also want to think about replacing the carpet or flooring, especially if it shows signs of wear and tear. If you decide on hardwood floors, consider bamboo flooring instead. It’s cheaper and more eco-friendly and doesn’t scratch as easily as hardwood.

Herman Boswell has been in the North Texas property management business for more than 30 years. We have the know-how to help you keep up with the challenges of being a landlord. Let us show you a better way to manage your real estate investment properties: contact us today!

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Ink pen with agreement between landlord and tenant

Right of Entry in the State of Texas

Texas has no statute that governs when landlords can enter occupied rental units. So theoretically, that means you could enter residences any time you wish. But if you’re concerned about maintaining good relationships with your tenants, that’s not a good idea.

The smart way to go is to take into account what statutes in other states guarantee renters. What this ultimately means is that you offer your tenants reasonable privacy rights against intrusions.

In practice, you should try to give at least 24 hours’ notice before entering a rented apartment to make (or assess for) repairs or show the unit to prospective new tenants. The more time you are able to give your current renters, the better. You might also consider entering only at specified times, such as normal business hours during the workweek.

In the event of an emergency, such as a fire, burst water pipe, or gas leak, you have the right to enter without notice. You may also enter the premises if a tenant has moved out without notifying you or if you have a court order to do so. Under no circumstances should you enter just to “check up” on your tenant – that is a true invasion of privacy.

On occasion, a tenant will refuse you access. If a tenant does this repeatedly, then you can assert your right to enter, provided you do so in a peaceful manner. If the tenant still bars access and you suspect something is seriously amiss, you may need to take legal action.

Even though Texas has no set legal guidelines regarding right of entry, you may want to establish your own and put them in writing. That way, you protect your interests as well as those of your tenants.

Nobody said being a landlord was easy. And it doesn’t help that Texas law is sometimes unclear about the extent of your rights with respect to your tenants. The experts at Herman Boswell can help by creating a tenant management plan that you – and your renters – can live with. Contact us today!

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It’s sad, but true that even the most carefully screened tenants may one day end up violating lease provisions. And that’s because while most people want their living quarters to be clean and in good repair, not everyone will actually do the work necessary to keep a home in shape.

So how does a busy landlord nip problems – like dirtiness, an illegally kept pet or missing smoke detectors  – in the bud?

The best way is to have both routine and the occasional surprise inspections. During those times, you may notice trash/debris problems. Or you may see a proscribed animal on the premises or – even more dangerously – smoke detectors that have been taken off walls or deliberately disabled.

After you’ve noted down the problem, the next step is to immediately send written notices to the tenants in violation of lease provisions. This way, you make offending individuals aware of the problem and allow them to take steps to rectify the situation while also showing that you care about your property.

Of course, you could opt to talk to the individual(s) involved. But a face-to-face meeting or telephone conversation will not create the paper trail you may need in the event you have to eventually take your tenant to court. In fact, verbal communication may lead to confrontation and argument, both of which you would be wise to avoid.

Land-lording is a full-time job. That’s where the real estate experts at Herman Boswell come in. We help you keep up with the challenges of people and property management. You have a life to live: and we help you live it. Contact us today!

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Once someone signs your lease, you as landlord are legally bound to follow the rules and regulations as much as your new tenant.  You should also know that state and federal laws further govern how and under what circumstances you may terminate that lease.

Generally speaking, though, most states including Texas allow a landlord to terminate a lease or rental agreement if the tenant:

• fails to pay rent
• violates a clause in the lease or rental agreement, such as a no-pet or subleasing without permission clause
• violates a responsibility imposed by law, such as causing serious damage to appliances or the property, participating in illegal activity, or interfering with other tenants’ peaceful enjoyment of the property

If you find you must terminate a lease or rental agreement, you must send the tenant a notice of termination.  If the tenant continues to remain in the rental unit after receiving a termination notice, only then can you file an eviction lawsuit.

Eviction itself involves the court-ordered physical removal of the tenant and his or her property with the assistance of the police.  To begin the actual process, you must first must file a complaint with the court and wait for the tenant’s answer.  If the court rules in your favor, then you will be legally entitled to repossess the property.  If the tenant refuses to leave after receiving the notice of eviction, then you have the right to ask that a law enforcement officer forcibly remove the tenant.

By contrast, if a tenant illegally breaks your lease without a legally protected reason, then you have the right to sue for damages.  But you must mitigate damages by making a reasonable attempt to re-rent the unit.  If you find that you incur damages beyond what remains from the tenant’s security deposit, then you may sue the tenant for:

• the time the unit remained vacant
• the cost to find a new tenant
• attorney fees, if provided for in the lease agreement

The legalities of being a landlord are complex.  Often, they require more time than busy landlords like you can afford to invest in understanding them.  That’s where Herman Boswell can help.  Our property management professionals are schooled in every aspect of landlording, including the legal ins and outs associated with it.  For the real estate savvy more North Texans trust, contact us today!

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No matter how careful you are with your records, a tenant can still sue you over the return of a security deposit.  You can minimize the chance that you’ll have to go to court to haggle over back rent, cleaning costs and damage to your rental property by taking these four steps:

1: Review Texas laws for returning deposits

Texas gives landlords 30 days to itemize and return a tenant’s security deposit.  Put your itemization in writing and state how much you have applied toward back rent, cleaning costs and damage repair, along with how much a tenant can expect to receive in return.

2: Prepare a move-out letter

When a tenant gives you notice that they are ending tenancy, prepare a move-out letter that clearly and specifically states:

• the exact condition in which you expect your unit to be left
• your final inspection procedures
• the kind of security deposit deductions you can make
• where and how a tenant should return keys
• when and how you will send any refund that is due

3: Inspect the unit

To minimize disputes, do your final walk-through alongside the tenant rather than by yourself.  Also be sure to use some kind of inventory or landlord-tenant checklist when the tenant moved in so that you can compare the condition of the rental at the start and end of the tenancy.

It’s also smart to photograph or videotape the premises so that you have visual proof of what the unit looked like when the tenant moved out.  Ideally, you’ll also have done this before the tenant moved in so you can see any important differences.

4: Create an itemized deduction statement

After you’ve inspected the unit, prepare an itemized list of deductions for cleaning, repairs, back rent or other financial obligations required under your rental agreement. List each item, for example, a dirty carpet or damaged kitchen appliance, and the dollar amount of the deduction.  You may also wish to attach receipts, especially if you’ve already seen to the necessary repairs and/or replacements.

There’s no doubt about it: conscientious landlording takes time and effort.  That’s where the experts at Herman Boswell come in.  We’re here to help you manage your property investments and give you the peace of mind you deserve.  Contact us today!

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