PropertyManagementMaven: January 2010

I love doing real estate photography - especially when the agent and/or sellers have taken the time to make sure the home is looking its best.  But, of course, there are times when it's a challenge ...

  

I did a photo shoot recently of a home that had been staged ... I'm sure the stager did the best she could under the circumstances, but there were some problems: electronic equipment (DVD player, cable box, etc.) on the floor next to the TV; an office desk with the particle-board backing facing the door.  The worst thing was the light bulbs ... yes, the light bulbs!  Many of the fixtures had burned out or missing bulbs and a few had a mixture of incandescent and fluorescent bulbs!  Oh, and all of the batteries had been removed from the smoke detectors (I have no idea why) - there must have been at least 10 of them beeping incessantly all over the house!

This job was a rush referral from another photographer, so I had no chance to speak with the agent regarding preparation.  But it reminded me that I have a flyer I used to send to homeowners about preparing their home for photos.  For some reason, I got out of the habit, but I've resurrected it (and added a bullet point about light bulbs!).  Here it is ... feel free to share it with your clients when you use a professional photographer.  I welcome your suggestions for any additions to the checklist!

Congratulations!  You're working with a REALTOR® who knows the importance of having professional quality photos to market your home.  Studies have shown that buyers choose the homes they want to see based on the quality and quantity of pictures they see online.  In order for me to get the best possible images of your home, I'll need your help.  Here are some things you can do to prepare your home for a photo shoot:

OUTSIDE

• Remove vehicles, trash cans, recycle bins, etc. from driveway and front of house.
• Sweep driveway, walkways, porches, patios and decks.
• Remove hoses, sprinklers, garden tools, children's/pet's toys.
• Mow the lawn; trim back shrubs/bushes from walkways and doors; remove weeds from flower beds and around shrubs/bushes. 

INSIDE

• Hire a professional stager!  A stager can make sure your home shows at its absolute best.
• Open window coverings (curtains, drapes, sheers, blinds) to let in as much natural light as possible.  Of course, if the view out a window isn't pleasing, leave those coverings closed.
• Turn off ceiling fans - moving fan blades just look like a blur in the photos.
• If time and budget permits, have windows professionally cleaned.  Clean windows let in more light than dirty windows.  Consider removing window screens as well.
• Make sure all light fixtures have the proper type of bulbs - do not mix fluorescent and incandescent bulbs.  Replace any burnt out bulbs
• Eliminate as much clutter as possible, including children's toys, clothing, piles of newspapers/magazines.  Remove anything from the floor that doesn't belong on the floor.
• Remove toiletries and other personal items from bathroom counters; close toilet lids; remove/replace old or dirty towels, washcloths, etc. 
• Make all beds neatly (avoid wrinkles, lumps, etc.); clear dressers of personal items.
• If your child's bedroom has his/her name spelled out on the wall or otherwise visible, you may wish to remove it.  If removal isn't feasible, be sure to alert me and I will attempt to edit it out from the final photos.
• At your computer workstations, stow or unplug dangling cables/wires; clear papers.  Straighten up and/or remove items from bookcases.
• In the kitchen, remove most, but not all, items from the counters.  Items that can be left out might include:  decorative canisters, a colorful bowl or platter, no more than one countertop appliance.  You want it to be uncluttered, but not sterile.  Items to remove or hide from view include:  dish towels, pet dishes, trash cans.  Remove everything (magnets, pictures, calendars, etc.) from the outside of the refrigerator.  

www.GlendaCherryPhotography.com
www.GlendaCherry.com

 

Double tapped circuit breakers are one of the most common electrical defects that I find while doing home inspections in Minneapolis and Saint Paul, and they're usually one of the easiest defects to correct.  Today I'll explain what double tapping is, when it is and isn't a problem, why it's a problem, and how to correct this condition.

Definition: I don't know of any official definition of a 'double tap'.  This is just what us home inspectors say when two wires are connected under one screw or terminal inside an electric panel.  Sometimes this refers to two wires at one circuit breaker, other times it refers to two wires connected under one screw at the neutral bar.  Today I'll be focusing on improperly double tapped circuit breakers.

When it's NOT problem: Double tapped wiring is ok if the circuit breaker is designed for two wires.  If a circuit breaker is designed for two wires, it will say so right on the circuit breaker, and the terminal of the circuit breaker will be designed to hold two wires in place.  The circuit breaker shown below is designed to accept two wires, and I highlighted and blew up the portion of the label that tells me that two wires can be attached.  This is acceptable.  To my knowledge, the only manufacturers  that make circuit breakers that can be double tapped are Square D and Cutler Hammer... but not all of their circuit breakers can be double tapped.

When it IS a problem: This is a problem when the circuit breaker isn't designed for two wires.  The label on the circuit breaker will clearly state this.

 

Why it's a problem: If the circuit breaker isn't designed to hold two wires, the wires could come loose at some point in the future, even if they feel very tight today.  Loose wires can lead to overheating, arcing, and possibly a fire.

How to fix: The fixes I'm going to list below are a few common ways of dealing with double tapped circuit breakers.

Pig Tail This is usually the easiest and best repair.  The offending wires simply get disconnected from the circuit breaker, connected to a single wire with a wire nut, and that single wire gets connected to the circuit breaker.   Now, I know what you're thinking: "What's so tough about that?"  The answer is nothing.  This is a quick and easy fix.

Different Circuit Breaker Another simple repair would be to replace the circuit breaker with a type that is designed for two wires, as long as the panel is designed for it.

If there are more problems going on besides just a double tap, the repair might get more involved.  For instance, if a homeowner finished off a basement and added a circuit for the basement bedroom on to the circuit breaker for the bathroom receptacles, simply adding a pig tail for the wires wouldn't be a proper repair, because the bathroom receptacles can't be on a shared circuit.   In this case, the wires would need to be split off on to two separate circuit breakers.  There are a few ways to do this.

Add A Circuit Breaker If there is room in the panel, another circuit breaker can be added, and the wires split off to the two different circuit breakers.

Install A Tandem Breaker If the electric panel is designed to use tandem breakers, and a tandem breaker can be properly used in lieu of the offending circuit breaker, this is another acceptable fix.  Some people refer to tandem breakers as half-height or half-size breakers.  This is basically a way to install two circuit breakers in one slot.

If a panel will accept tandem breakers, it will say so inside the panel, and the specific locations where tandem breakers can be used will be identified.  A panel may allow all tandem breakers, notandem breakers, or some tandem breakers.  The photo below shows a panel that allows some.  As you can see, eight more circuits could be added to this panel, as there are currently no tandem breakers being used.

When none of the above solutions are possible, the repair might involve replacement of the panel with a larger one, or the addition of a subpanel.  This would obviously get much more expensive.

Reuben Saltzman, Structure Tech Home Inspections - Email - Minneapolis Home Inspections

                    

Renter's Insurance Myths

If you're wondering what's the big deal about renter's insurance -- like you need another way to spend your monthly paycheck? -- first consider these common misconceptions:

Does the landlord's Cover my Insurance?. In most cases, a landlord's insurance covers only structural damage to the building itself-and many landlord policies don't even go that far if the damage is caused by a tenant. If you leave the tub running and it turns your floor into cardboard and dribbles downstairs, damaging your neighbor's couch, you may be liable for the whole drippy mess. If your building went up in flames, your landlord's coverage would include repairs, but only to the building, not to the possessions of tenants.

How much is the Coveragee. Is $10 to $20 per month too much? In March of 2002, unofficial online quotes from two major carriers produced annual rates of $147 ($12.25 per month) and $203 (under $17 monthly) respectively. Both quotes had a deductible of $500 per incident, and included medical coverage for others, on-premise or off-premise. Assumptions were that the house contained a smoke alarm and fire extinguishers.

Is anything else covered with the renter insurances? Renter's insurance extends beyond on-premise theft and hazards. If your suitcase is stolen while you're on vacation, you'll likely be covered. Same with property stolen from your car. If you're prone to barroom brawls-well, you might need more help than renter's insurance, but you'll probably be covered if you hurt someone. Speaking of injuries, you'll also likely be protected if someone slips and sprains their ankle at your annual dance-a-thon; you may even receive compensation for legal defense costs in the case of a lawsuit.

My stuff isn't really worth much. You might be surprised at how quickly all those books, CDs, and kitchen appliances add up. According to StateFarm.com, most people own more than $20,000 worth of property. Refer to the lists in this article to make an inventory of your possessions prior to contacting an insurance carrier for a quote. (Some Web sites help you with this step, such as http://www.statefarm.com/insuranc/renters/howmuch.htm.) List each item along with its year of purchase and what you think it would cost to replace it today.

Types of Coverage

Personal property coverage

As with any insurance policy, coverage varies by state, company, and type, but here are some basic examples of personal property to include in your inventory. Items not listed here may still be insurable; ask agents about customizing your policy with more options.

Property typically covered:

• Stereo systems, VCRs, and television sets
• CDs, DVDs, videos, and tapes
• Cameras and other photography equipment
• Movable appliances, including microwave oven
• Furniture
• Sports equipment
• China and glassware
• Clothing
• Books
• Miscellaneous

Property typically covered with limitations:

• Home computers
• Cash, including coin collections
• Checks, traveler's checks, and securities
• Jewelry and watches
• Precious and semi-precious stones
• Comic books, trading cards, and stamps, including collections
• Antiques and fine art
• Goldware and silverware (theft)
• Rugs, wall hangings, and tapestries
• Firearms (theft)
• Furs or clothing trimmed in fur
• Boats or other watercraft, and related equipment

Natural hazards coverage

Again, natural-hazard coverage varies by state and company, but most policies protect your property against losses created by the following:

• Vandalism
• Water damage from failure of plumbing or appliances
• Frozen water pipes
• Hail
• Windstorm
• Smoke
• Explosion
• Vehicles or aircraft

For a higher premium, most insurance carriers offer options to add coverage for hazards not included in a standard renter's policy:

• Earthquake, landslide, or other damage caused by movement of the earth
• Water damage cause by an underground source or flooding
• Nuclear-hazard damages

Alexandria VA is a city that has made a commitment to "affordable housing".  One of the policy tools to achieve fair and affordable housing has been "Section 8 rent vouchers".

Section 8 was designed to make housing affordable for the poor and working poor. Sadly, I think the Section 8 program has worked counter to its stated goals, reducing the affordability of housing and at the same time increasing the number of people dependent on the government. Here's why.

As many already know in some neighborhoods, a high percentage of residents use Section 8 vouchers to suppliment or pay rent. In these neighborhoods and in any investment in America, the value of the investment is a factor of the income that investment produces. Thus, the more income a property generates, the more money a property is worth. Section 8 artificially pumps up the amount of income that a rental unit produces. A high income producing property is worth more money than a low income producing property. Thus, Section 8 increases value and reduces affordability in the neighborhoods where Section 8 housing is prevalent.

It is not uncommon in Northern Virginia to find a situation where a tenant pays $25 to $250 monthly but because of Section 8 assistance the landlord receives $1800 monthly. Because the value of a property is directly related to the income of a property, that means that instead of being worth $35k to $70k, the same property is worth $200k to $400k. These rents and sales price are out of reach for working-poor and middle income folks.  They simply can't afford to pay the same the rent that Section 8 pays. Furthermore, the working poor and many middle class folks can't afford to buy at the price that Section 8 justifies.

Therefore, Section 8 hurts the economically-disadvantaged renters that would loved to own or rent a decent property close to the city.

Section 8 houses also forces workers to live in out-lying suburbs because it would be senseless for a hard-working poor to middle income person to pay top-rent for a neighborhood in an at risk neighborhood. This means that Section 8 also hurts taxpayers who have to pay for congested roads, because the working poor must live in out-lying areas.

Lastly, Section 8 hurts buyers and small-time investors because the prices in these neighborhoods are artificially propped up by the guaranteed Section 8 income. 

So, what would happen if there was no Section 8? 

Some Section 8 renters would be displaced. They would be forced to find housing that they could afford. That would cause hardship and pain.  As I know myself through personal experience, hardship and pain create motivation. Motivation creates opportunity. Opportunity creates wealth. Many Section 8 residents would be forced to disperse to outlying areas that they could afford.  This would break up poverty pockets and would weaken the influence of gangs and hopelessness.

If Section 8 were no more, the value of many formerly Section 8 properties would plummet.  That's because landlords and investors would bail out of a neighborhood where they can only collect $250 to $500 rent where they used to collect $1800 rent. That would hurt the investors who are highly leveraged in those neighborhoods and freeze those who could weather the storm.

When the prices in the neighborhood bottom out, groups of people such as the working poor, minorities and small-time investors would have a huge opportunity to buy in this neighborhood. Once these people started buying in the neighborhood, the neighborhood would transform from a bastion of hopelessness into a place of hope and opportunity.

Little guys could buy and live in property that is closer to the city and this would start a cycle of empowerment rather than a cycle of impoverishment.

Tell me why I'm wrong ...

---

About the Author --- Will Nesbitt is the principal broker of Condo 1 Alexandria / Will Nesbitt Realty LLC. Will is a realtor who specializes in condos, townhouses and single family real estate in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

Employing a quality repair man can be chellenging and a lot of people have had sour experiences with repair men. Many times they will not even show up, they will not return telephone voicemails, and a lot of them, if given the occasion will swindle you.  And if you can't count on hi, so will your tenants.  They will be more likely to renew their rental agreement.

Here are seven tips to hiring a great repair man.
   
Write up a to-do file of all the repairs that need to be finished ahead of you make any phone calls.
Your list could include: Replace light fixture, new bathroom vanity, install garage door, etc. If you keep this list within reach while you are setting up potential phone calls, you will be able to provide the repair man a better impression of all the handiwork that needs to be finished in your apartment.  They will realize the scope of the work before they go into your residence.  Not all repair men consider themselves a Renaissance repair man and the majority will tell you if specific repairs are outside of her realm of expertise.

Create your list of repair man prospects.
The easiest way to commence your search is to investigate your local newspaper or telephone directory and find listings for "house repair".  Know that, "simplest" does not neccessairly mean "best".

Many of the top repair men do not solicit business because they do not need to.  Since if you are a respectable repair man, you will secure a reputation that keeps you more occupied than you have time in the week.  After a brief amount of time, they no longer have a desire to solicit business.  They have word of mouth referrals and will stay in demand all 12 months if they are really high-quality. 

How do you find these respectable repair men?  Easy.  Ask around.  You can inquire with your friends, call a local HOA board or friends who live close by. 

Secret Tip: Try communicating with a real estate agent that focuses on promoting distressed properties or property flipping.  They will not only know repair men that do respectable repairs, but do it in the amount of time required and for a low price.

Ask questions before you even ask a repair man for a price.
A few inquiries might include:
How do you estimate your work?
Do you give complimentary estimates?  If not, how much money and does that apply to the repairs done?
Do you charge by the hour or by the job?
Do you have a minimum amount of time that you work?  For instance, if it is a really little job and takes him only fifteen minutes, some repair men will have a two hour minimum, so be sure you ask.

Write down everyones hourly cost.

Inquire if they add a surcharge for supplies.  From time to time they will charge ten to twenty percent above cost for supplies they have to go secure.  If this is the case, request if you can acquire them on your own and have them put in by the repair man. If so, most repair men will tell you precisely what you have to buy.

Get at least 3 bids.
Do not always choose the cheapest one.  You will ordinarily find the medium bid to be the ideal combination of skill, experience and price.

Get your bid written down on paper.
Look at your estimate and make sure it states everything you have agreed to: Labor, materials, job due date, etc.

Do not pay for everything up front.
Any repair man worth his weight in salt will expect partial payment up front with additional payments to come during the course of the job.  Final payment should only be made once the job is completed to your satisfaction.

Having a great handyman can be the difference between someone filling out a rental application and signing a rental agreement or not!

Bill Clinton was the 42nd president of the United States. George W. Bush was the 43rd president.

NASCAR team Hendrick Motorsports (#5, #24, #48, #88) has loaned a 45-passenger plane to Missionary Flights International for use in taking support teams in/out of Port-au-Prince.  

We are far removed from the time when the Landlord held all the cards in Massachusetts residential leases.  it would be more accurate to say, "Landlord Beware!!!" Even before the recent economic downturn which Massachusetts has been experiencing began, Landlords hav been on the run. Evictions for non-payment are certainly not automatic or swift. if a family with children is involved, or a person with special needs is your tenant, you may be looking at a year or more to get people out, even if they are not paying rent.

A new scam by tenants has also arisen where the Landlord owns a Condominium Unit, and cannot keep up his mortgage or monthly common area payments. The tenant just stops paying the rent and makes a deal with the Condominium Trustees to pay the monthly fees directly to the Condominium Association. With the length of time that foreclosures are taking, this can put the tenant in a "cheap rent situation" for an extended period of time.

A word of caution to all prospective Landlords. Familiarize yourself with the rules of security deposits and collecting last month's rent.

     1. Security Deposits.  a. Never, ever collect a Security Deposit without having a tenant sign a Condition Statement. If you leave the condition of the rental unit open to "discussion" when the tenant vacates, you are asking for a lawsuit. Once the tenant acknowledges that the rental unit is in perfect condition, or notes exceptions as they exist, the road to retaining all, or a portion, of the security deposit gets much easier.

 b. Make sure that the security deposit is placed in a segregated savings account with the tenant's social security number being credited with the interest. A failure to so segregate these funds has been adjudicated as a consumer protection violation in Massachusetts, with consequent treble damage liability lurking.

     2. Last Month's Rent.As long as it is so labeled, this payment can be used by the Landlord. The Landlord needs to understand that he or she MUST make annual payments of interest to the tenant on this prepayment. Failure to make these payments may also leave the Landlord subject to consumer protection penalties,

At Topkins & Bevans, we advise Landlords on how to proceed on a statewide basis. Do not hesitate to contact us with any questions you may have on lease drafting or operations. We are glad to provide timely and accurate responses.