PropertyManagementMaven: June 2009

Interestingly enough, actually occupying a residential rental property is usually not one of the lease requirements.  To paraphrase The Eagles...."They can check-out any time they want, but they can never leave" (their lease until the termination)

This is usually the RUDE AWAKENING when residents purchase their "dream home" during an unexpired lease term....YES, they can leave their rented property and move into their new home, and YES, they need to keep the utilities on in their name, maintain the yard as the lease requires, maintain their renter's insurance and periodically check the property for leaks, etc.

Likewise, when they re-locate during the term of their lease, they are still required to maintain the property, utilities and are responsible for anything that happens at the property while no one is living there so renter's insurance is a MUST.

The practical procedure is for the residents to keep the utilities on and have their bills/mail forwarded to them, to maintain their renter's insurance, and hire a professional yard service to maintain the yard.....OR, they can hire the PROPERTY MANAGER who is attempting to re-rent the property on their behalf to maintain the yard, make sure the grass is cut AND pay the bills when they are presented.  A little more time consuming for the property manager so there should be compensation.  This service is over and above the service paid for by the owner's mgmt fee and property managers should have a % fee on these bills in their lease OR charge by the hour on a quarter hour basis.  I charge $160 per hour and bill in 15 min increments.  Once this is explained to residents, they realize that their relocation is more costly than just paying their rent while the property is vacant.

The recent death of Michael Jackson in a rented LA home is a reminder that property managers need to KNOW what their role is in the process when a resident dies.

Within hours of the media learning of Michael's collapse after a rehearsal for his upcoming tour, it was reported that he was living in a posh LA home renting for $100,000 per month.  The home was being rented by the backers of his upcoming tour and he was living in the home with his children and members of his staff and entourage.

Neighbors probably shared the rental amount with media as this type of information is easily available through back-fence gossip and public records.  The ins/outs of the various vehicles with staff, security and visitors would announce the occupants although TMZ had reported the address several times before the incident and a tour bus was actually passing the residence when the EMTs were removing MJ from the house.

The  property owner or property manager would have known that Katherine Jackson and daughter, Janet, would be allowed to remove personal items of the children as well as any valuable items and vacate the property as quickly as possible.

A property manager in NoVa had a resident commit suicide at the rented property and when the emergency medical techs arrived, the resident's lease, property manager's card and a note with the next of kin noted on it were laid out on the kitchen counter....again, rarely is the process this clear.

Many times, the process is not so clear......The property manager or landlord should first secure the property if a sole resident is involved and then refer to the rental application for the contact information of the "nearest relative".  Entry by authorities is common so taking photos of the resident's belongings in the property is a good safe-guard to inventory the contents. 

If the resident has a will, that makes the process easier; however, if no will is in effect, then the city or county may appoint a conservator to direct the property manager how to dispose of the resident's belongings. 

At no time should the property manager remove or disturb the deceased resident'sproperty and the re-renting of the propert should not attempted until the personal property and furnishings are properly removed.

While no one wants to anticipate this type of procedure as necessary, by being prepared for the eventuality, property managers and landlords can lessen the burden on the friends and families and act in the best interest of their property owner clients.

I'm heavy into move-out/move-ins and have had 3 property owners travel a few hours to come do minimal work on their property between tenants.

I met with one couple on Saturday at their old home/property as they were coming for the weekend to do minor repairs, skirt/clean up the trees and they expected to have to repaint.  The home was spotless after 3 years of the same residents with two growing to four kids...they were super pleased and she shook my hand when I was leaving with tears in her eyes indicating she heard so many horror stories and was so pleased they had chosen me as their property manager.

I have new client/property owners who were vacating on Saturday and had to return to the house for one last forgotten item and found my workman preping the walls for paint as new residents move in on Wed - 3 days to prep, paint and clean....they were surprised he was there on the weekend AND that there was already a detailed work order on the kitchen counter.

Lastly, local property owners who bought an undesirable rental home without PM advice 5 years ago and who then hired me to manage the home for them will spend days next week cleaning and mulching the yard of their NEW investment home. After 2 years of ownership of the "undesirable" rental home, they were able to 1031 exchange into a larger, more desirable home that I selected for them and have enjoyed 3 years of income since the day they closed on their purchase.  I've arranged for repairmen to perform the work that will be taken from the prior residents' security deposit on Friday, a few days before their new residents take occupancy.

These three owners all made a special point to call or offer their "thank you" to me.  Yes, it is my job and yes it has taken years of experience and developing resources to be able to dovetail these procedures to insure owners' properties are maintained and new residents' homes are ready for their occupancy; however, it is ALWAYS nice to be acknowledge for a job-well-done!