If you're considering investing in a rental property, you may be wondering how much work to expect in your new role as landlord.  The amount of work depends largely on the type of building, its condition, and the tenants you acquire.

A single-family dwelling as opposed to a four unit building will present different issues and challenges.  With more units comes more mechanical items to maintain and repair, such as appliances, heating and cooling systems, etc.

In general, the better the condition of your building at the time of purchase the less work you will likely have to attend to.  Deferred maintenance from a previous owner on small items can turn into big, ongoing problems for a subsequent landlord.  A minor leak in pipes that is not corrected in a timely fashion can turn into floor and/or ceiling issues and mold or rot problems.

The difference between a profitable or disastrous can often be attributed to how much work an investor is willing to put into their property.  A successful landlord must be willing to screen tenants, respond immediately to repair requests, and track down overdue rents.  If a landlord cannot or does not want to handle these areas of work on their own, it would be in their best interest to hire a management company to take care of all these important details on their behalf.  For excellent service in the Greater Los Angeles, Fort Worth and Oklahoma City areas, contact us at www.GoldenEstateManagement.com. 

This morning I read a simple question, "How do you start your day?"

Not, "What do you do when you get up?" or "What is your routine?"  The question was aiming at attitude.  How do you wake up in the morning?  Do you start your day feeling energized and looking forward to the challenges, adventures and rewards that await you?  Or do you start your day feeling tired thinking of the twenty-four hours ahead, with a sense of dread or drudgery about the tasks you must attend to?

Chances are the way you start your day is also reflected in the way you approach many things in life.  How do you approach your work, raising your children, your social life, your health and fitness?  We all have a long laundry list of responsibilities that can feel overwhelming at times.  How would our attitude about that list change if we simply tried re-framing our approach?  Tomorrow morning, if that sneaky little sense of tiredness and dread creeps into your thoughts, try changing the story in your mind.  Look at the day as a new opportunity to grow, change, appreciate, and start afresh.

In order to provide a rental unit that may be reasonably secured by a tenant, a landlord must provide locks on doors and windows.  Some jurisdictions have specific laws regarding what kind of locks a landlord is to provide.  Below is a list of locks and safety devices a landlord is generally required to provide:

• a window latch on each exterior window
• a doorknob lock or keyed deadbolt on each exterior door
• a sliding pin lock on each exterior sliding glass door
• a sliding door handle latch, or security bar on each exterior sliding glass door
• a key-less bolting device (one that can only be locked and unlocked from the inside) and a peephole on each exterior door

If a lock breaks due to normal wear and tear, a landlord may not charge the tenant for replacement or repair of that lock.  If, however, a lock or device is damaged due to misuse by the tenant, tenant's guests or family members, the landlord can require the tenant to pay for it.

Golden Estate Mangement strictly adheres all guidelines and local laws regarding security for the tenants of the buildings we manage.  For more information about all of our services, visit www.GoldenEstateManagement.com.  We serve the Greater Los Angeles, Fort Worth, and Oklahoma City areas.

As the warmer weather of summer approaches, it's natural to want to open up our doors and windows and let in the fresh air.  Keeping our homes well ventilated with circulating air helps keep down the cost of air conditioning and is a greener choice for overall energy use.  Just make certain your smart about it, in terms of safety.

Many home burglaries happen in the summer months, simply because home owners and renters tend to be more lax about locking up windows and doors on a regular basis.  Make certain that when you leave your home you've locked all doors and windows, even if you're only planning on being out for a short period of time.  It's smart to leave a radio playing or small light on to give the impression that someone is home, or will be within a short period of time.  Consider placing a few interior lights on timers, to go on at certain times of day and installing motion detector lights outdoors in walkways, near garages and laundry rooms. 

While home, make sure no one can enter your home undetected through an open screen door or easily accessed windows. 

Simple, inexpensive precautions can help you, your family, and your tenants be safe and secure this summer and all throughout the year.

When an income property occupied by tenants changes ownership, what happens to those tenants?

Nothing.

The new landlord must honor the terms of the lease agreement between the previous owner and the tenants.  Change of ownership is not cause for eviction, unless there is a provision in the lease agreement permitting the landlord to terminate the lease upon sale of the property.

A lease is not a unilateral instrument.  Both the landlord and the tenant have to abide by the terms agreed upon by both parties.  If the landlord agrees to rent the unit to a tenant in exchange for monthly rental payments for a specific period of time, neither party can break the lease without cause or a specific clause written into the lease.

Relocation, however, may be an option.  A landlord who has recently acquired a tenant-occupied building will need to check with state and local rent control laws.  In most cases, a landlord can terminate a lease after 90 or 120 days, and must usually pay relocation expenses and fees for the tenant.

A new landlord can ask for a new lease agreement with a tenant, however the tenant is not required to sign one, especially if the new agreement is not advantageous for the tenant. 

The first and probably most obvious type of rental property to avoid is any property that would create a negative cash flow.  After all, it's called an "income" property.  A property that will cost you money each month is not a wise investment

Do not invest in properties that have upcoming costs or expenses that are not predictable.  Unknown or indeterminable costs can turn a profitable property into a costly endeavor that will cost you money month after month of ownership.  For example, if the city has stated that a new sewer line will be installed in the street there is no way to estimate what the cost might be to connect the property to the new sewer line.  It may be a very simple repair at little cost.  Or it could be a massive job requiring the removal of intrusive tree roots and rocks with could end up being a small fortune.  If there are any stated unknown upcoming costs on a property, pass it up and move on to something that is less risky.

Avoid properties that could be difficult to rent.  A vacant building will not be giving you the revenue you need to cover your mortgage and operating expenses, let alone make a profit.  Some locations might be inherently difficult to find renters for, depending on the proximity of roads, train tracks, or other noise factors.  Ask yourself if you would want to live in a place that had undesirable neighbors such as a junkyard, an extremely noisy nightclub, etc.  If the monthly amount you would need to collect is likely to be unattainable it would probably prove to be a bad investment.