PropertyManagementMaven: February 2010

Via Antonio & Alexia Cardenas "The Realtors In Motion" Remax In Motion (Alameda County - San Leandro, CA.):

This cry for help came in from one of my clients via a voice mail message. Owning a rental property provides great tax breaks and potentially good financial returns, but also exposes the individual to major legal liabilities. This individual was in a lot of trouble and needed to take a quick lesson in Landlord 101. Based on my experience, I  put together the following list of 7 basic aspects for my new investor-client to study, and to help him become a good law-abiding landlord and a savvy investor.

• Educate yourself about your duties, responsibilities and liabilities of a landlord. It is a business in which ignorance is NOT a defensible argument. If you have to go to court to either collect your rents, evict somebody, or even worse; being sued by one of your tenants, you better know your job very well and be prepared, it could cost you the entire investment property and more, if you are not.
  

• Join a group of "Apartment Owners Associations." Become a subscriber and get involved in their discussions.  These people will be your best allies. The AOA group provides professional guidance and will help and support you in making your business of providing housing for others more profitable, easier and more enjoyable. They will have real time alerts on new laws and local proposals that can affect the business of apartment owners.

• Chose your tenants carefully! Be fair and color blind when interviewing potential tenants. There are strict rules about discrimination of any kind. Your own personal beliefs should not dictate who you rent to. Develop a consistent and clear procedure to always use when choosing your tenants. Tests are regularly conducted by the Fair Housing authorities and the penalties are severe.

• Maintain your rental properties! Landlords who do not spend money in maintenance or repairs, will invariably spend much more money defending their actions or lack off in court when a tenant gets injured or harmed because of lack of maintenance. The value of a rental property is based on income and overall physical condition. A clean, safe and well maintained property will always provide high rental values with less tenant turnover.
  

• Do not get personal, seek legal advise when dealing with trouble tenants. There is a set of steps that must be followed exactly when enforcing a lease or rental agreement. The correct forms must be used, the timing must be absolute, and even the wording on the document must be specific and appropriate for each situation. If it is not done right, the entire process must start all over again. Let the professionals handle these situations.

• Know thy Limits...! Even if you consider yourself a "handyman," and know how to swing a hammer or use a power tool, know when to call the professionals. Can you really tackle a plumbing or an electrical problem? Hiring the right professional could shield you not only from personal injuries to yourself or your tenants but from legal liability. The key here is to do it right; do not think "expenses" think instead "tax reductions."

• Put together a team to help you run your business. Do not wait until you need an attorney to look for one. Begin by asking other landlords in the area if they know someone locally. If possible, get to meet them, find out what their fees are, their work schedules, where are they located etc. Do this for everybody. You will need a good plumber, electrician, roofer, flooring specialist and painter. If you do your homework, you will know exactly who to call when an emergency arises. Taking care of tenants problems right away is a good solid block in which to build a strong relationship with the most valuable partner you will have in your rental business: YOUR Tenant.

A rental property pays back at least in 3 different ways: Appreciation: in a healthy real estate market, properties go up in price. Depreciation: When you own a rental property you can deduct the improvement (the value of the building) one 27th of its value every year for 27 years. And finally, Income: the rent paid by the tenant, minus expenses. Keep your tenants happy and they in turn will respect your property, pay you good rents and stay in place longer.

       Antonio & Alexia Cardenas      "The Realtors In Motion" 

         CRS, GRI, E-Pro Certified. Serving the east shores of the San Francisco Bay, Alameda and Contra Costa counties: specially the following cities: Castro Valley, San Leandro, San Lorenzo, Hayward, Oakland, Pleasanton & Dublin.

                  Visit us on line at: www.listedbyantonio.com or call (510) 326-4263 Call us, We'll come and TANGO with you!

The “Support Our Troops” slogan on US ice hockey goalie Jonathan Quick's helmet  at the Olympics violates IOC rules.  Quick will be told to remove it according the International Ice Hockey Federation..

Via Lane Bailey - REALTOR & Car Guy (Diamond Dwellings Realty):

Image via Wikipedia

I ran across an article that parses IRS data on which states are gaining population and which are losing population.  GA is doing pretty well on the list... only a couple of states gained more population that we did here in GA.  Texas and North Carolina picked up more households than the 37,000+ Georgia picked up.  The big losers were Michigan and New York.

The information was assembled by the AP from IRS data points.  Here is a link back to the article.

The fun part is figuring out why...  Jobs, taxes and corporate relocation would be the things that would pop to the front of my mind.  Michigan has been getting pounded for a decade on the jobs front.  As the economy slowed down, that wasn't improved.  New York, New Jersey and California have all increased taxes on the wealthy, and there has been a flight to lower tax states like Florida and Nevada as a result.  Texas has also been very business friendly.  North Carolina has become a central point for tech oriented companies, and might even get a bigger reputation that Silicon Valley in CA.

Image via Wikipedia

Georgia has reasonable taxes and a friendly business climate.  Hartsfield Airport in Atlanta connects to the world in a way that few airports elsewhere can... Atlanta is VERY connected.  The climate is mild, but not as hot as FL during the summer...

But there is no question that the I-85 corridor, extending through Alabama, Georgia, South Carolina and North Carolina is one of the best business corridors in the country right now...

Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2009 Lane Bailey. 

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Rental Home - Charlottesville, VA Single family rental,

> Click here for full details, additional photos, and an inquiry form < Single family 1724 Monet Hill Court Charlottesville VA 22911  4 beds/3.5 baths $2595 / month    Gibson Management Group, Ltd. Wallace S. Gibson CPM  PO Box 106 Keswick, VA 22947-0106   Phone: 434  97 99723 Email: cvillecpm@aol.com Website: http://VaHomes4Rent.com Location information 1724 Monet Hill Court  Charlottesville VA 22911  Planned Community: Montgomery Ridge Elementary School Zone: Hollymead Jr. High School Zone: Sutherland High School Zone: Albemarle Nearby College/University: UVA/PVCC Driving Directions: 29N, R on Polo Grounds, L into Montgomery Ridge, L on Monet Hills Detailed listing information Remarks: Parade of Homes award winning design....LARGE home with open floor plan on quiet cul-de-sac......living room, dining room, home office, family room w/FP, eat-in kitchen with GAS stove, stainless appliances and granite counters, 2-Car garage....FULL walk-out basement....3 bedrooms upstairs w/LARGE master suite with GIGANTIC master closet.... Bedrooms: 4 Bathrooms: 3.5 Monthly Rent: $2595.00 Date Available: July 1, 2010 Lease Info: 12 months Deposit Payment Details: Listing broker Application Fee (Standard): $25.00 Sec Deposit (Refundable): $2595.00 Pets: Possible, with approval Fireplace: One fireplace Heat: Gas heat Cooling: Central air Approx Square Feet: 5200 Dwelling Type: Single family Property Description: Borders preserve / public land Floor Coverings: Carpet Ceramic tile Hardwood Window Coverings: Mini-blinds All listing information is provided by the managing or leasing agent, is deemed reliable but is not guaranteed, and should be independently verified. Information is © Copyright 1997-2010 HERO PM and individual providers of data, who are bound to a membership agreement. HERO PM and all their websites are interactive computer services. Unauthorized reproduction strictly prohibited.