landlord: Minimizing the Cost of Vacancy
- 05/03/11 04:42 AM
By Ben Holubecki, STML Realty Group, Glen Ellyn, IL As a professional property management company we have found that one of the most difficult concepts for rental property owners to grasp is the true cost of vacancy. Investors who have been in the rental game for a while understand that in almost all cases the greatest expense they will experience over the life of their investment property will be the cost of vacancy due to lost rent and preparing the property between tenants. 100% of our managed properties have or will go through a vacancy and prep period. Based upon our … (3 comments)
landlord: Are Renewal Incentives Worth It?
- 07/12/10 04:05 AM
Most landlords will agree that a vacant unit ranks right up there as one of their least favorite things. The bottom line is simple: A vacant unit is money down the drain. There are, of course, times of feast when rental units rarely remain vacant for even a few days in between one tenant and the next. But then there are the other, slimmer times, when people are saving their pennies and staying put. In this case, finding a new, quality tenant is much, much easier said then done — it can take weeks (in some cases maybe even months) to … (0 comments)
landlord: Taking Care of Vacated Units
- 07/06/10 03:21 AM
The last box has been hauled down the stairs and the moving van has pulled away from the curb. Now that your former tenant has vacated his apartment, it’s time for you to get to work, flipping the unit in preparation for the new tenant that’s on her way. We’ve talked about the differences between normal wear and tear versus damages previously—so now let’s take a look at what tasks you can expect to complete on a routine basis when a tenant moves out of one of your units. Cleaning Appliances No matter how cleanly your former tenant was—and even if … (0 comments)
landlord: Cash Vs. Accrual Accounting
- 06/21/10 03:45 AM
Although not all property managers have an accounting background, it’s nonetheless important that any landlord handling the books has a firm grasp on basic accounting principles. Perhaps most importantly, it’s essential to have a working knowledge of the differences between cash and accrual accounting. Quite simply, the difference between cash and accrual accounting comes down to when you enter information in your books. Cash Method Accounting With the cash method, information is entered into the books as soon as money changes hands. In other words, as soon as you receive a rent check, it’s entered into the books as income. And … (1 comments)
landlord: Staying On Top of Wear & Tear
- 02/08/10 06:15 AM
Wear and tear is a fact of life for every landlord. Since we’ve already spent some time on this blog looking at how to tell the difference between damage and wear and tear, let’s talk about the specifics of what to expect when it comes to basic apartment fix-it work and how to stay ahead of the maintenance game. Generally speaking, the best time to take care of wear and tear on a unit is between tenants. And often, this goes beyond just doing a thorough clean and making sure that everything is spic n’ span for your next tenant. While … (6 comments)
landlord: Managing Contractors
- 08/24/09 02:48 AM
Check out the Buildium Blog for more property management resources. Having a good stable of contractors at your disposal is one of the more underrated tools for property management success. Following are some points to consider and a few tips for finding contractors that will make you (and your property) look good. As a property manager, you’re not expected to know how to solve every single issue that arises under your watch. But you are expected to know exactly who to go to when problems occur. Contracted specialists are crucial to your business for a couple of reasons: 1. You want … (4 comments)
landlord: Tenant Complaint Strategy
- 06/29/09 02:56 AM
Check out the Buildium Blog for more property management resources. Whether you’re dealing with a tenant who files complaints rarely or frequently, due diligence is always essential. Tracking and addressing tenant complaints in a timely manner is important not only for keeping your tenants safe and happy, but also for protecting yourself and your property in the long run. 1. Encourage tenants to come to you. As with maintenance, tenants should be encouraged to come to you with any complaints they may have as quickly as possible. Sure, there might be some tenants that overuse this privilege, but the vast majority … (2 comments)
landlord: Tips for Tenant Eviction
- 06/22/09 05:58 AM
Check out the Buildium Blog for more property management resources. For obvious reasons, most landlords dread evicting tenants. But for as stressful as evictions can be, there are a number of things you can do to increase your chances of a positive outcome. Following are some tips to keep in mind should you find yourself in a position where evicting a tenant becomes necessary. 1. Have Sufficient Reason First and foremost, it’s absolutely imperative to ensure that the law recognizes your reasons for eviction as valid (be sure to check your specific state and local laws before beginning any eviction). … (3 comments)
landlord: The Basics of Subletting
- 06/04/09 02:19 AM
For some landlords, summertime means subletting time. And as we all know, subletting can be a tricky nut to crack. Part of being a good landlord is knowing how to carefully weigh your options and choose the scenario that has the best chance of working to your benefit in the long run. Such decisions often have to be made on a case-by-case basis, accounting for the specific tenant and situation in question. Subletting is a perfect example of precisely this sort of scenario. First and foremost, make sure that all of your rental leases contain a sublet clause requiring your tenants … (0 comments)
landlord: Tenant Damages or Normal Wear and Tear?
- 03/05/09 01:50 AM
Please visit the Buildium Blog for more posts about Property Management. We all know that security deposits are funds reserved for repairs beyond “normal wear and tear.” What’s sometimes not so clear, though, is what exactly constitutes normal wear and tear. This is one of those questions you should be ready to answer, both in order to give your tenants a specific idea of what is expected of them from day one and to make sure you remain in compliance with federal and state laws. Essentially, security deposit funds are reserved for any damages a tenant causes to the unit he … (2 comments)
landlord: Setting Your Property Management Fees
- 02/23/09 03:06 AM
Please visit the Buildium Blog for more posts about Property Management. As is the case with any employment scenario, when it comes to hiring a property manager, landlords walk a fine line between ensuring they hire the best help possible and obtaining the most competitive price. Particularly because property management is not a one-size-fits-all kind of field, setting your property management fee at a rate that is both profitable for you and appealing to potential customers can be tricky. While standard property management fees today are set at 10 percent of a unit’s monthly rent rate (and go down to as … (0 comments)
landlord: Renting in a Recession
- 02/09/09 02:48 AM
Please visit the Buildium Blog for more posts about Property Management. It’s only natural that the current state of the economy will have a trickle-down affect on vacancy levels and the going rate of rental units. At a time when everyone is tightening their purse strings, it makes sense that people are far more likely to think twice before moving. For renters, the moving process in and of itself is a costly one: transporting furniture and belongings from one location to another, putting down security deposits, and sometimes multiple months’ rent. All of these costs add up quickly. So what does … (0 comments)
landlord: Interesting Property Management Links
- 11/18/08 01:50 AM
Check out these cool Property Management Links: It’s getting cold outside. Know how to keep your units warm without breaking the bank. Want to know what your tenants are saying? Visit Tenants Together to see what tenants are talking about. The US Supreme Court recently handed down a decision regarding tenant-landlord law and the right to bear arms that all property managers should be aware of. Thinking about joining a local landlord association? Check out Landlord Groups to find your closest association. What are some common problems lessors encounter with their lessees? Check out these problems and tips on how to … (0 comments)
All things property management is a one stop destination for folks interested in learning more about managing real estate. Broken down into a variety of targeted columns, the information that you are looking for is easily accessible — from investing tips and best practices in The Intelligent Investor to the real-life dilemmas of property managers in Stories from the Front Lines. We’ve brought on contributing writers from across the country to share their respective expertise with you, whether you’re a landlord, a professional property manager, or an association board member. Your feedback, participation, and comments will help us deliver the information you need most. Feel free to contact us if you are interested in contributing.
By Ben Holubecki, STML Realty Group, Glen Ellyn, IL
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