Dealing with bad tenants can be tricky enough—though such scenarios are not ideal, at least you have a contract on your side to dictate certain rules and behaviors that ensure the comfort of all your tenants. But what happens in a case involving bad neighbors, when you don’t have the benefit of a pre-existing agreement on your side? Depending on the set-up of your property, a bad neighbor can potentially be just as disruptive (or perhaps even more so) than uncourteous tenants in your own property. Following are some suggestions to help mitigate this sort of scenario.

Consider neighbors when property hunting.
Time and time again in this blog, we’ve highlighted the importance of doing extremely thorough research when seeking out an investment property. And guess what? We’re about to dole that same information out once again. With so many other factors to take into consideration when selecting a property, evaluating potential neighbors is one of those things that all to often falls by the wayside. But on a day-to-day basis, your property’s neighbor can have a considerable impact on your tenants’ quality of living. And if that impact is a negative one, you may very well find yourself with high turnover or an undesirable vacancy rate. So, with this in mind, taking neighbors into account is a consideration when purchasing a property.Visit your potential property at various times of the day to see if there are any red flags (be sure to do this at times when neighbors are likely to be home, such as weeknights or on weekends). If you pick up on any noise or behavioral issues, you may want to consider what sort of impact this might have down the line.

Meet your neighbors.
This sounds simple, but neighbors are much more likely to make more conscientious decisions when they are taking a specific person into consideration as opposed to an anonymous “neighbor.” As soon as you purchase your property, take a few minutes to introduce yourself to your neighbors—this doesn’t take much, just a five-minute chat will do.

Have a calm and rational conversation should an issue arise.
While “pre-screening” neighbors will certainly help you avoid problems down the line, it’s not fail-safe. After all, properties change ownership and if you have a neighboring rental property, you could find yourself dealing with someone else’s bad tenant.

If you become aware of problematic behavior either from your own observations or tenant complaints, have a polite but frank chat with the neighboring property owner, whether that’s the house occupant or a fellow landlord. This simple step may be all it takes; sometimes people are unaware of the effect their actions are having on others and may simply need a bit of enlightenment. Should you have this sort of conversation and find that the issue persists, try one more conversation, preferably at the time the issue is actually occurring.

Involve the authorities.
Although it’s not ideal and can be uncomfortable because it inherently involves a party that you will presumably deal with in the future due to proximity, if the offending behavior is chronic and involves some sort of legal violation (such as noise past a certain hour or reckless public behavior) call the non-emergency number of your local police force and put the matter into a third-party’s hands.

Remember, as with most things, the best way to avoid dealing with problematic tenants is to prevent the problems from happening in the first place. Hopefully, by executing the first three recommendations, you will never reach the point where you have to act on the fourth.

Comments »

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

Understanding what the Fair Housing Act means for your property management company is an absolute must — it can help you avoid some serious legal troubles and a hit to your company’s reputation. These links will help you further understand the intricacies of the Act and provide you with some useful tips for advertising.

• Here is the FHA in all its glory, straight from the Department of Justice.
• FHA laws at the state level may provide additional protections. Check out your state’s unique laws to ensure that you don’t miss anything.
• Check out these examples of discriminatory advertisements so that you know what kind of language you need to avoid.
• Be aware that there can be exceptions when it comes to advertising for roommates or shared housing. Check out these useful guidelines here.

Comments »

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

The Fair Housing Act (FHA) exists to ensure that all potential tenants are given an equal opportunity to obtain residency. This anti-discrimination  policy means that, as a landlord, you are not allowed to base tenancy at your property upon any of the following factors, including: age, race, color, religion, familial status, or handicap. This law is straightforward enough; however, there are certain common instances in which landlords find themselves inadvertently in violation of this act. A common slip-up that can potentially lead to legal troubles down the line is searching for a certain “type” of tenant based upon your property’s location, amenities, or general pre-existing demographic. Consider the following scenario.

 As clearly stated in the FHA, you cannot base your decision upon whether or not to accept a tenant on their situation or life circumstances. For example, even if you prefer to rent to students, you absolutely cannot refuse to rent an available unit to a family of three simply because they are a family rather than a single student. Remember, though, the average tenant wants to find a living situation that is comfortable for them.

In the above scenario, for example, if you have a ten-unit complex that is primarily occupied by students, chances are other students (as opposed to families or young professionals) are going to be most enticed by your property. To achieve maximum visibility among this target demographic, you should place advertisements in outlets that cater to the university population in your area—school-affiliated publications, websites and bulletin boards at local college hang outs, for example. Explain in your advertisement that the unit is perfect for college students based on its proximity to the university. As prospective tenants want to find a situation that is most conducive to their lifestyle, chances are a self-selection process will occur. Bear in mind, however, that your advertising may in no way, shape, or form indicate that your unit is only available for students—that is in violation of the FHA.

If, for example, a family of three (as opposed to a student) is interested in the unit and meets all of the necessary qualifications (including reference, credit, and criminal checks) and the apartment is available, you are obligated to rent to them. No matter how strongly you feel that your complex may be unsuitable for families rather than students, under the FHA denying them tenancy will count as discrimination in a case where that decision is based solely upon their status and situation.

No matter how pure your intentions are, if your practices are not in line with the FHA, you can find yourself in a significant predicament. Local and state laws may provide additional stipulations. If ever you are in doubt of how FHA laws apply to you and your property, immediately seek legal counsel or clarification from an association or other in-the-know professional agency—this is one of those cases where ignorance can have severe repercussions.

Comments »

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

If you are managing property in an area with frequent criminal activity, taking the necessary precautions to protect your tenants and your property is a worthwhile investment. There are several steps that you can take that will both raise your property value and keep your retention rates from plummeting. Check out these links to help secure your property and the surrounding neighborhood.  

• Installing a home security system may be the most effective method of protecting your individual properties from criminal activity. Check out ADT’s website for more information on their award-winning security systems.
• The National Neighborhood Watch Institute provides inexpensive reflective signs to let potential criminals know that your neighborhood has a plan in place.
• If your property is in a high-crime area, it’s possible that theft and criminal activity are taking place on your property. Make sure that you and your tenants know their duties and risks.
• State Farm provides a fantastic guide to protecting yourself against home burglary — by heeding their advice, you’ll greatly diminish your chances of being burglarized.

Comments »  

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

It’s a fact: Some neighborhoods are more safe than others. It’s also true that while a neighborhood may be quite safe at the time you purchase an investment property, things can go downhill at any time (happily, this phenomenon can work in the opposite direction as well). To make things even trickier, high crime rates aren’t necessarily limited to “bad” areas. Sometimes crime can trickle into nicer areas from surrounding neighborhoods, which is why it’s important to really do your homework before investing in a property—some hazards are simply not immediately obvious.

If, for any of these reasons (or completely different ones), you find yourself with a property in an area that is suffering from regular criminal activity, there are steps you can take to help make your property a safer place for tenants to reside.

Form a Neighborhood Watch Program
This is one of our favorite options, because it goes beyond just protecting your property and tackles the larger issue—making your entire neighborhood a safer, more enticing place to live. The results of accomplishing this are huge for you and include increasing property value and potentially lowering vacancy rates.

If your neighborhood does not already have a Neighborhood Watch Program, it does take some effort to start up but, again, the payoff is big. Begin by advertising the group to neighbors through fliers and notices in local publications (such as alternative weekly newspapers and online publications), and through social networking services. Once you have interest, set up a meeting and devise a plan, which includes safety patrols in the area during nighttime hours. It’s also worth having neighbors post signs on their properties advertising the fact that a neighborhood watch exists as this, in and of itself, can be a deterrent to crime. Contact your local sheriff and have them send a representative to the meeting to help provide tips and guidelines for creating a plan of action and the most safe, effective program possible.

The National Sherriffs’ Association has a number of great tips and tools for starting up and registering an official program in your area. You can also search USAonWatch.org to find out about any existing programs in your area.

Communicate with Your Tenants
There is a tendency to avoid advertising criminal activity in your surrounding area so as not to harm the reputation of your property or alarm existing tenants. However, if you are aware of crime in your neighborhood, it’s actually very important to inform tenants and to provide them with tips for safeguarding themselves and their property.

Much like a neighborhood watch program, having actively involved and alert residents can go a long way toward preventing crime. Just make sure that your communication is not alarmist—information should be provided in a straight-forward, factual manner and tips for protecting and safeguarding property should also be included in the same memo. (Also be sure to include contact information for local police and Neighborhood Watch Programs so that suspicious activity can be reported.)

Safeguard Your Property
Criminals often look for signs of neglect according to James Wilson and George Welling’s “broken window” theory. The gist of this theory is that if would-be criminals see signs of neglect, they are more likely to commit acts of vandalism or crime. Keep your property in good order and make it clear at just a glance that it is a carefully protected area. Install outside lighting (including motion detector lights), put up alarm system signs in conspicuous areas, and secure all doors and windows. Be sure to check out our previous blog post for more tips on safeguarding your property against crime.

There’s no quick fix for ridding an area of crime. But a concerted and consistent effort can definitely make a significant impact over time. Do what you can to make your property as safe as possible and recruit community members and tenants to do their part in keeping their eyes open, making your neighborhood a safer place for everyone.

Comments »

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

While “going green” used to be seen by some as notoriously trendy, it has now become the norm. Many of your competitors have likely already gone green, which could be giving them a leg up on you in the eyes of prospective clients or tenants. There is no reason to wait any longer — taking small measures over time to green up your properties can be as good for your bank account as it is for the environment. Check out these sites to get started on the right foot.

• Check out Energy Star’s list of energy efficient products — appliances, electronics, heating, plumbing, and lighting — all of which can save you a bundle.
• Planet Green’s Top Green Cleaning Tips offer low-cost ways to immediately start greening up your properties.
• More and more, tenants are asking their landlords or property managers about their green credentials. This could be a great way to market your business to eco-concerned tenants of property owners.
• You probably aren’t managing properties like these, but they are fascinating case studies on just how far green property management can go. Check out 15 of the Greenest Buildings in the World.

Comments »

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

Gone are the days when going green was a cutting-edge, leftist notion. With environmental issues at the forefront of the media, going green is  now firmly in the mainstream, quickly becoming the norm rather than the exception. Even with all of these new, more eco-friendly options on the market, the truth of the matter is that completely greening your properties and your business in one fell swoop can be an expensive endeavor up-front (though most green measures will likely save you money in the long-run). Our suggestion? Take small measures over time that won’t break the bank in the short-run, will save you money in the long run, and will make you feel great about doing your part in the process.

Appliances
Installing energy-efficient appliances in your properties (dishwashers, refrigerators, washing machines, etc.) is a great way of incorporating greener, more energy-efficient elements into your properties. Not only will your property be more energy efficient by using less water and producing fewer greenhouse gas emissions, but you can also cut down significantly on utility bills by using water and energy more efficiently.

Speaking of saving money, you can save some cash up front with energy efficient appliances as well. Rebates are often available for ENERGY STAR certified products, of which there are many. Not only do energy efficient appliances offer you the chance to be greener and save on utilities, but they’re also something that (sooner or later) you need to purchase anyway. You don’t have to break the bank by going out and buying new dishwashers for each and every one of your units all at once. Just take it one step at a time, replacing old appliances as necessary with new, more environmentally friendly versions. Over time, you’ll find yourself with a much greener property.

Green utilities
Many local utility companies are now offering green energy and electricity options; this means that the energy provided is from 100% renewable sources (such as wind). One of the great advantages to this green tactic is that it involves money you’ll be spending anyway (though green energy sources are sometimes a bit more expensive than their not-so-eco-friendly counterparts). You have to pay your utility bill every month anyway—why not feel good about it? For more information on availability and pricing in your location, take a look at the U.S. Department of Energy’s Green Power Network.

Cleaning products
Every little bit helps and it’s okay to start small. If you want to be more eco-friendly in the short-term, but are unable to make a significant investment, try taking small measures such as purchasing green versions of cleaners and other household products for use both on your properties and in your property management office. These days, green versions of common cleaning products can be found pretty much anywhere and include everything from glass to carpet cleaners. Click here for a categorized listing of just some of the eco-friendly cleaning products available on the market today.

Of course, there are many other ways to green up your act–the sky’s the limit! Be sure to check out this listing of rebates and incentives by state to see how you could be saving money and the environment by greening up your property.

Comments »

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

Keeping your lease agreements up to date and in compliance with federal, state, and local laws is the best way to protect yourself and your investment in your property. Here are some great resources to help you keep that lease flawless. 

• It’s very important, even as a property manager, to understand Tenant Rights and Responsibilities. Here is a breakdown of those rights and responsibilities in Massachusetts — most states have similar pages.
• Have you decided that hiring legal counsel is the way to go? You can find a real estate lawyer by state or province here.
• The National Lease Program Webinars are a great industry resource and an invaluable place to ask experts any questions that you might have regarding your lease agreements.
• Your local Building Owners and Managers Association can also be a great reference when looking for state specific lease information. Locate BOMA in your state here.

Comments » 

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management

If there’s one document in property management that simply has to reviewed (and updated as necessary) on a regular basis, it’s your lease. This  is, after all, the document that will ultimately determine your rights and protect your best interests when it comes to issues both big and small.  Because you’re dealing with a host of rules and regulations on the federal, state, and local levels, it’s imperative that you not only adjust your lease as necessary when laws change, but also that you’re in compliance and protected on all three fronts.

If you’re not proficient in legalese, chances are reviewing your lease (and, moreover, identifying those elements that need to be changed) is a daunting endeavor at best. Following are some tips and best practices for keeping your lease up-to-date and your best interests protected on an ongoing basis.

Hiring Legal Counsel
Yes, this can be a somewhat expensive option. However, consider the fact that a water-tight lease can potentially spare you legal costs of a far more unpleasant variety in the future and additionally saves you a ton of time (as compared to reviewing and revising a lease on your own). Suddenly, the cost of hiring a legal professional to review your lease becomes a far more appealing option. If you do choose to take this route and don’t already have a trusted lawyer in your contact base, talk with real estate and property management professionals for references to proven lawyers that specialize in such matters.

Professional or Association Meetings and Seminars
Taking part in professional groups and associations on both a local and national level can benefit your business in any number of ways. Particularly in the case of associations, it’s their job to keep close tabs on all of the legislative and legal issues that affect your profession. Most associations offer updates on such issues in addition to regular meetings and seminars designed specifically to guide you on issues such as leases, contracts, and other legal concerns. While professional groups in your area may or may not have meetings and seminars specific to this topic, such gatherings offer the perfect forum to exchange information on issues like this and to learn about any developments that may affect you.

Experience
Just as important as an up-to-date knowledge of laws and regulations is your own experience. Let’s say, for example, you’ve had consistent issues with tenants’ pets on your property. You currently have a pet policy in your lease, but know from hard-won experience that your life would be made easier by just disallowing them altogether. In such scenarios, take your own best advice and alter your lease to make it reflect a more manageable, optimal situation for yourself. One word of caution, though: Even in situations like this, you still want to ensure that such changes are not in violation of standing federal, state, or local laws by utilizing one of the aforementioned resources.

In the end, the most important thing is that you make a commitment to yourself to review and update your lease on a regular basis. Perhaps you want to schedule a lease review into your calendar as a recurring task the first week of every year. Whatever you do, don’t let it fall to the wayside. Always be alert to changing regulations that may affect you and potential problems that become apparent from your own experience with tenants your tenants.

Comments »

Property Management Software Rental Property Management Software Landlord Software HOA Software Property Management