PropertyManagementMaven: April 2008

When I purchased my first Lexus several years ago, Lexus Financial gave me a one-page confidentiality statement regarding our relationship since I was financing the car through them.  I kept the statement and I started thinking about it...I have now incorporated it into my Resident Handbook so that residents KNOW how I handle their financial information:

CONFIDENTIALITY: There are limited instances whereby we can disclose or discuss the terms of our relationship and the status of your lease agreement without your written consent. Any request for information on your lease status should be requested in writing by all parties who signed the original lease agreement.

I only accept requests for landlord verifications in writing (with appropriate $25 fee); and I do not provide copies of tenants' lease agreement to the property owner EXCEPT in the instance of refinancing and then I scan and e-mail it to a specific person at the mortgage co.  If a property is closed with a tenant in place, I will copy the lease and send a COPY and retain the original with original signatures and I will advise the tenant IN WRITING that the property owner has been provided with a copy of their lease.   

I do not download/print applicant credit reports (they remain available online as I use Clear Screening) so that information is not in my file and is never provided to property owners.

As property managers we need to be considerate of our owner/client financial information AND the information on prospective residents AND tenants.

How do you safeguard this sensitive financial information???

Having used PALM software through 7 years and 3 devices, in addition to category contacts for OWNERS, BUSINESS/VENDORS, TENANTS, I also have PROPERTY information as a catetory with the directions to the properties AND a photo of the property exterior.  This information is helpful giving directions to prospects when arranging viewing appointments ESPECIALLY when the property is new construction where GPS may not be helpful AND when providing directions to vendors/repairmen.

Don't be afraid to define your own CATEGORY * I have for my lockbox HASP codes as well as sign/lockbox placement on my properties.

Bob's post about weekend Open Houses made me think about how much work I actually do on the weekend....

Started early Saturday AM with 8 posts to Craigslist for today...

8:30AM I went to take picture of exterior of a property I will make a property presentation to on Wed.  I went by the property 1X and one side of the garage was open and I went back a second time and it was still open so I took picture anyway.  I ususally try to copy/paste the photo from out MLS/Sold listings; however, the current is the only owner and there is no prior MLS listing and no photo on our county tax records.

9:30AM to 10:30AM * I put 2 For LEASE signs in 2 ground floor units and took pictures of 5 vacant/unsold units in high-rise condo unit that I am leasing for the unit owners with blessing of the bank.  There are actually 12 units and I have to be concerned with the sun coming in from the morning or afternoon since there are no window coverings yet and glare is a concern.  I have actually used a photo program to outline the exterior of the units on the exterior of the building which is a nice vistual.  I'm posting 2 listings per day on Craigslist and  as well as on my company website.

11AM * showed couple a home that is being vacated by the homeowner.  Took exterior pictures with azaleas in bloom....

I wanted to make it home for NASCAR qualifying from Talledega so I am processing and uploading photos for the condo units....

Check out the condo units at Glenwood Station .... http://VAHomes4Rent.com

I'll go in to my office tomorrow early to deal with any fax applications that may have come as well as check our post office box for returned leases....I want to be ready to watch the race tomorrow at 2P * #88 RULES although I want Michael Waltrip #55 to win the pole.

Up until a few years ago, Virginia had one of the lowest Small Claims court limits  * $2,500...then the VA legislature upped the limit to $5,000 and VA landlords are slowly educating themselves on how to use this court to their advantage....shortly after the increase, I had an eviction of a resident paying $1,295 with 6 months remaining on their lease...for the month they owed rent, I filed an eviction (unlawful detainer) for possession and a judgement for the deliquent rent.....at the SAME time, I filed a small claims court case for the remaining rent up to the $5,000 limit and I had BOTH suits served at the same time.  I got the eviction and they left and by the time the small claims court case was heard, I had cleaned, changed the locks and re-rented the property....I adjusted the amount downward for the monies owed above their security deposit and got a second judgement.

By doing this, I was able to serve the tenant while they were still in the rented property AND I have 2 judgements against her at 18% until paid.  I recorded both judgements and sent the judgement debtor a copy of the recording verification....she is faithfully paying me $100 per month until the judgements are paid off.

If you don't know how to use your state's Small Claims Court - Nolo Press has a paperback book on how to sue in Small Claims and state court websites have information on the forms, and court costs....go get 'em!!!

www.foxcarolina.com/news/15920768/detail.html

This has been a concern of mine for several years as landlords discuss having cameras in common hallways or directed at their rental property from off the property....I caution our service people to be mindful of their actions in the tenants' home when the tenant is not there * no smoking, no going through drawers, no handling the residents' items....they need to leave the unit CLEANER than when they found it.

My life as a property manager got a LOT EASIER several years ago after a PM trade asso luncheon where we brainstormed ways to raise our income.....my pen could not write fast enough....on the 1.5 hour drive home, I thought of all the ways I could actually GET PAID for the work I do and knowledge/expertise I have by the people who cause me to use that knowledge and expertise...hence, I started charging TENANTS for causing me to work....

$100 per resident notice fee to serve any notice * pay or quit, accept rent with reservation, NSF/Late Fee

$50 per resident for late fee/NSF fee * re-deposit any NSF check and send a rent with reservation letter (notice) demanding $300 with next rental payment.

$400 lease re-write fee...they want out of their lease, they advertise and find new prospective residents and I'll re-write the lease to them....I don't re-write the lease until the $400 is paid.

20% service charge for any non-rent items deducted from their security deposit....they clean the home and the carpets OR I'll re-clean and charge them the cost PLUS 20%.  In my check-out letter, I provide cards for a local carpet cleaner and house cleaning service.

Obviously, when monies are taken from the tenants' security deposit, I make my owner clients "whole" first from the deposit funds before I pay myself.  Having just presented my 2007 tax records for tax prep, I realized almost 30% of my income is NOW generated from tenant fees.

Having just read a post on the BADLANDLORDS website where an ex-tenant wants to file a fair housing complaint against their former landlord for providing a bad/inaccurate reference to their new landlord, I am glad I charge departing residents a small fee * equal to my credit check fee * for rental/income verifications.

I require the tenant sign the verification form, bring it to my office with their check and a SASE to where they want it to go.  I complete the paperwork, copy the verification for the tenant file and then mail. 

I don't do verbal/phone or fax verifications and I've actually turned away a federal investigator who wanted to do a security clearance on a former tenant because they could not provide the fee to take 30 min of my time.

In addition to utilizing a 19 page Resident Handbrook that is provided with our lease packet, I have a move-out procedure that has served me well......I offer lease renewals in Feb for leases that expire at NOON on the 3rd Friday or June or July....the month BEFORE the move out month, I provide a check out letter with the pro-rated last month rent per their lease along with a 2-page Move-Out Cleaning Check List AND the cards of a house cleaning service and carpet cleaning service....both of which I have used and approve of.  Residents are free to utilize their own services HOWEVER, if the cleaning is not done to MY SATISFACTION, I will have it re-done and take the cost from their deposit PLUS a 20% service charge which is in my lease.

By law, in VA, I am required to advise residents they can request to be present at my check-out inspection and since my procedure for arranging for this is in the Resident Handbook which is provided with the lease, my procedure is established no matter what residents may think the reason for the inspection.

My check-out inspection is for the RESIDENT to advise me WHY the property is in it's current condition....it is an exit interview on the condition of the property.  It is NOT for me to advise them what I will be charging for or how much of the deposit they may receive.....In VA, I have 45 days to make that determination and the check-out inspection is not for that purpose...I have 40+ days to find defects or items to charge departed residents. 

Note that I task residents with providing their forwarding address on a self-addressed envelope....most put stamps on it.

The following is a sample of my check out letter:

Your February, 2008 rent will be $ 766.50. I am enclosing a copy of our Check-Out Cleaning Checklist which you should use in performing the cleaning on the property. It is only a guideline and specific cleaning may be necessary for your particular home.

Be sure to remove all boxes and debris and to not leave any items by or in the trash containers. Toter garbage cans need to be emptied and the cans returned to the property and not left at the curb. Items too large for the containers should be disposed of off of the property or recycled at an area recycling center.

Enclosed please find information for Homestead Cleaning Services and Magic Carpet Service. Both of these firms provide excellent services at a reasonable price. If you clean the carpet yourself, you may be responsible for the cost of a professional cleaning if it is performed unsatisfactorily.

You may be present at the time we perform the check out inspection of the property; however, you must so advise us of your desire to be present by e-mail and we will notify you by e-mail of the date and time range * either 10AM-12Noon or 2PM-4PM we have scheduled the inspection. If you wish to be present at our check out inspection, the utilities should remain on for an additional 3 days in order to accommodate your request. We will schedule the property inspection ONLY AFTER we receive the property keys. At the check out inspection you will not be told of any damages or assessments to your security deposit nor will you be allowed to correct any deficiencies. Under Virginia law, we have 45 days to itemize and return your security deposit as we may determine additional charges and/or damages during this period.

Please return all property keys to our office before NOON on the last day of your lease AND provide a self-addressed #10/business size envelope with your forwarding address on it so that we may return your deposit as quickly as possible. With your envelope, provide evidence/fill invoice that the property propane tank was filled (Economy Propane) within 30 days of your lease termination as the tank was full when you took possession.

Although my area of Central VA is still cold and rainy (witness last Sunday's NASCAR race from Martinsville, VA), I'll be preparing my property list this week for our HVAC service co to arrange for their "spring maintenance" AC system check/filter change.

I am surprised how many homeowners do not utilize this service when I go to property presentations and I ask them who services your HVAC system? 

I used a "long established" HVAC firm for many years until they elected to concentrate on "new installation" for new construction homes and failed to perform the "fall service" on my properties several years ago....I went interviewing for a new firm immediately and found a GEM!!! 

I provide them with names and e-mail addresses of residents in the fall and spring as well as keys to the units and they do the rest....when I have a no AC call in the summer, they schedule a service call that day and when I have to have new AC systems installed, they actually have a portable system they can put into the home to keep my residents comfortable.

They alerted me to the new SEER regulations when they did the first fall property service and we identified units that may need to be replaced in the near future and were able to install these systems BEFORE the newer regulations requiring the more expensive equipment were mandated.

As a property mgmt firm with NO on-staff maintenance, I am very pleased to have garnered a support/resource of vendors who service my properties promptly at reasonable prices for my owners.  I use this PROVEN list of service vendors in my property presentations and see homeowners' eyes blink as they never realized this would be an IMPORTANT componant of the management of their rental property.