PropertyManagementMaven

This is the THIRD of a Series of Posts for Assisting Reluctant Landlords From Making Common Mistakes!!!

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Tue, 21 Apr 2009 07:22:36 -0500

Reluctant Landlords see the $$$ and not the $$$$$$$....they chase the few bucks they will loose if they do not rent their property QUICKLY and have to come out of their pocket for a mortgage payment and they do NOT see the many bucks they will loose if they take the wrong/unscreened residents who stop paying their rent, loose their jobs, or as is the more common case, vacate the property with no notice.

Reluctant Landlords who rely on real estate agents to locate and screen residents fair little better. Most real estate offices no longer have access to credit screening services as a result of their E&O insurance requirements and manditory site inspections by the screening service. As support staff has been reduced in many offices, these services have been discontinued and the agents may not know that they no longer have access to these basic tenant screening resources.

Likewise, they rarely have the proper forms for the leasing service. The lead based paint disclosure for SALES is NOT the same lead based paint disclosure for RENTALS....agents do not know this. In many states, there are mold disclosure requirements for one or both activities.

Tenant move-in inspections may be mandated by state landlord-tenant laws and if they are not followed, claims against the tenants' security deposit may well be forgiven at the end of the lease term.

A month of paying a mortgage versus 3 or 4 months of vacancy in mid-winter or a long drawn-out eviction is not worth the risk of not doing it RIGHT!!

Wallace S. Gibson, CPM * Over 45 years of property management experience to serve you *

Gibson Management Group, Ltd. is a full-service property management company. Our management program is tailored to high end single family homes of character, country and estate properties as well as town homes.

We offer listings in the city of Charlottesville and Albemarle county as well as Greene, Louisa counties and the Lake Monticello area of Fluvanna county.

"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almightly God...." Anonymous

Now leasing quality rental homes in the Central Virginia area for summer availability * http://VaHomes4Rent.com

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans

"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous

Bank Held "A" Rating from the BBB When Closed by Feds

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Tue, 09 Mar 2010 16:05:35 -0600

March 8, 2010

By Scott Lee Jordan, freelance writer and business owner

Centennial Bank of Ogden Utah held an "A" rating from the BBB at the time it was closed down by federal authorities on March 5, 2010.

Based on research completed by the Better Ethics Bureau, the BBB did not consider Centennial Bank's financial condition when it gave the troubled bank its second-highest rating.

It appears that the BBB rated Centennial as "A" primarily because the bank had been operating more than 7 years and had a favorable complaint record with the BBB.

The "A" rating of Centennial Bank in Ogden, Utah strongly indicates the BBB believes if a business has been around for a long time with little or no complaints it is also financially strong and operationally sound as well. The Centennial Bank fiasco shows once again how flawed this BBB reasoning is.

Closer scrutiny reveals the BBB's rating system actually has little to do with trustworthiness or reliability, and that the BBB is content to let the public find out for itself if a business is truly reliable or not.

Of course, Centennial's "A" casts doubt on all BBB ratings, high or low. Certainly, failing banks with A grades cheapen the value of any other high marks the BBB may publish.

Last week, the Better Ethics Bureau pointed out that the BBB gave passing marks to two other banks that were failing and were eventually closed by federal authorities.

If the BBB cannot get it right with something as important to the public as millions of dollars in life savings and bill paying money, how can it be trusted when it comes to auto mechanics, beauty salons or anything other business?

And its rating system isn't the BBB's only problem. Websites such as bbbRoundUp.com, www.BetterEthicsBureau.org, and www.MechanicsResponds.com, and a growing list of journalists, freelance writers, business owners and consumers are exposing a number of ethical and operational problems at the BBB, including its complaint handling system and lack of transparency.

The Better Ethics Bureau warns business owners and consumers alike to be wary of any BBB rating, and the BBB itself, until the BBB corrects these issues and proves to the public it is operating in a trustworthy manner.

Another consequence is that more and more business owners realize that being a member of the BBB may hurt a reputation more than help it. This is partly because the BBB gives A+ ratings only to businesses that pay membership fees, and the public is awakening to this pay-for-play scheme.

Looking ahead, the Better Ethics Bureau believes BBB board members could be named individually in lawsuits for faulty BBB ratings and other BBB deficiencies. As public discontent with the BBB increases, BBB board members will be exposed more and more to culpability issues. The Better Ethics Bureau cautions current and potential BBB board members accordingly. (See BoardSource.org, Richard T. Ingram: Ten Basic Responsibilities of Nonprofit Boards for an example list of non-profit board member responsibilities.

As for the depositors of the former Centennial Bank of Ogden, Utah, it looks like Zion National Bank will buy only the FDIC insured deposits, according to the Associated Press story linked below--very unfortunate, particularly if any depositors had relied on the BBB's advice to "Start With Trust".

Author's note: As of Monday, March 8, 2010, the Centennial Bank in Ogden, Utah, was still rated "A" by the BBB.

Associated Press (3/5/10), leva M. Augstums & Marcy Gordon: Banks Shuttered in Fla., Ill, Md., Utah

Change Your Batteries On Smoke Detectors When You Change Your Clocks

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Tue, 09 Mar 2010 06:32:50 -0600

What a GREAT reminder for something so SIMPLE and IMPORTANT!!! Please go to original blog for comments!

Via Jeff and Heather Rickert, Realtor®, RSPS (Keller Williams Real Estate):

As the March 14 2010 change to daylight saving time nears, all fire officials urging people to use the twice-a-year event as a reminder to install fresh batteries in their home smoke alarms.

Working smoke detectors can decrease the risk of dying in a home by nearly 50 percent by providing an early warning and critical extra seconds to escape.

Woman in your life turning Five O? Get her the ICON Barbie 50th Birthday

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Tue, 09 Mar 2010 05:36:34 -0600

As a little girl growing up in the 50s, Barbie was THE DOLL to have...she is turning 50 * Happy Birthday Barbie!!!

With SPRING, comes the requests for Pest Control for Rental Properties * here's a TIP

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Mon, 08 Mar 2010 12:12:29 -0600

Rental residents who have moved into a single family home or duplex from a multi-unit property may be used to the property owner being responsible for extermination services and pest control as a part of their rental agreement.

However, once they rent a single family home, they should be prepared to take care of “critter control” themselves. As the weather gets warmer, ants will appear as well as mosquitoes and other flying insects.

Ants are easily handled with ant stakes purchased from the grocery store and placed around the foundation. Instructing residents to use “bug lights” in exterior light fixtures and making sure these bulbs are in place when residents move-in is a good way preventative maintenance tip as it makes sure the light bulb is not taken to be used INSIDE the home AND they do not attract insects around the entry to the property.

Defaulting Homeowners to get $1,500 in Relocation Expenses Under new Federal Program

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Mon, 08 Mar 2010 11:43:46 -0600

The Obama Administration will attempt to curb the rising tide of housing foreclosures by paying homeowners to leave their property.

Beginning April 5th, in an effort to streamline the short sale process, the lender will get $1,000, any second lien holder will get $1,000 and the defaulting homeowners will get $1,500 for vacating the property.

With over 5million homeowners at risk of foreclosure, the administration wants to "standardize" the short sale process and make it easier on the borrower and much easier on the lender.

Homeowners will get assurances from the lender that they will not be sued later for any deficiency and their credit will not be effected and fewer communities will appear blighted by massive foreclosure/REO signs in the neighborhood.

Guidelines for NORMAL Wear and Tear when Dealing with Tenant Deposit Disbursements!

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Mon, 08 Mar 2010 05:39:22 -0600

Wear & Tear               Damages

Worn out keys                   Lost keys

Loose or stubborn door lock           Broken or missing locks

Loose hinges or handles on doors        Door damage from forced entry

Worn w/traffic dirt on carpeting        Torn, stained or burned carpeting

Carpet seam unglued                   Rust or oil stains on carpet

Scuffed up wood floors            Badly scratched/gouged floors

Linoleum worn thin                Linoleum with tears or holes

Worn countertop                   Burns and cuts in countertop

Stain on ceiling from rain/leak     Stain on ceiling from tub leak

Plaster cracks from settling            Wall Marks from kids/carelessness

Faded, chipped or cracked paint         Unapproved (bad) tenant paint job

Loose wallpaper                       Ripped or marked-up wallpaper

Balky drapery rod                   Broken drapery rod

Faded curtains and drapes               Torn/missing curtains and drapes

Heat blistered blinds                   Blinds with bent slats

Dirty window or door screens            Torn or missing screens

Sticky window                       Broken window

Loose or inoperable faucet handle       Broken or missing faucet handle

Toilet runs or wobbles                Broken toilet seat or tank top

Urine odor around toilet                Urine or pet odor throughout unit

9/11 Memorial work goes Overseas!

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Mon, 08 Mar 2010 06:33:02 -0600

This is a DISGRACE and the NC senator who did not advocate for this employer AND NC voter/employees should not be reelected

Via Home Realty Group:

A North Carolina company has failed in its bid to win a $5.5 million contract to supply granite for a 911 Memorial. The contract was awarded to an Italian company. The North Carolina Granite Corp. has stated that it might have to lay off workers in response to not being awarded the contract. Some controversy has arisen concerning the finalization of the contract, with officials of the NC based company saying they have not heard from anybody concerning the contract while US Senator Richard Burr acknowledges that the contract is a done deal. He is advocating action that would allow the NC company to participate in the construction of the memorial.

Does this make sense? With millions of people out of work, we continue to ship jobs overseas. With all the mob action in NY, one might think that there was collusion on this.

Sandra Bullock to Display her RAZZIE next to her OSCAR!!!

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Mon, 08 Mar 2010 06:15:35 -0600

One of my favorite actresses, Sandra Bullock, won an Oscar for Best Actress for her role in The Blind Side. Earlier in the day she won a Razzie * Golden Rapsberry * for the WORST actress for her role in All About Steve. She arrived at the Razzie ceremony with a truck load of DVDs of the movie for the audience. She says she will put both awards side by side as they should be!

The Biggest Tax Mistake Real Estate Investors Make

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Mon, 08 Mar 2010 02:54:08 -0600

First-time investors are often confused that if they use a property manager they are no longer considered "active" which is incorrect.

Via Ilyce Glink (Think Glink Publishing):

It’s that taxing time of year, so break out your pencils and start sweating.

If you’re a real estate investor, it’s easy to run afoul of the complicated IRS tax laws. To start with, if you own investment real estate, you first have to figure out which category of real estate investor you fit into:

Active Real Estate Professionals make the decisions about buying, selling, and leasing their investment real estate. The IRS says active real estate professionals spend more than 50 percent of their work life actively engaged in the business of buying, selling and managing your properties, which has to amount to at least 750 hours per year.

Passive Real Estate Investors contribute money to the purchase or upkeep of the property but don’t participate in the day-to-day property management. Passive investors are limited to $25,000 in losses due to their real estate.

If you decide that you’re an active real estate professional, the IRS then asks you to make a choice between whether you’re a flipper or a long-term investor.

The IRS considers you to be a flipper if you buy and sell real estate properties frequently. What’s the magic number?

Read the full article here: http://moneywatch.bnet.com/saving-money/blog/home-equity/the-biggest-tax-mistake-real-estate-investors-make/1756/?tag=col1;blog-river

As April 15 approaches, MoneyWatch is publishing daily tax tips. Please check back frequently for the latest advice from our experts.

Donate to your Local Animal Shelter Not the National Humane Society

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Mon, 08 Mar 2010 02:46:06 -0600

In our area we are fortunate to have a GREAT no-kill sanctuary * Caring for Creatures in Fluvanna county * they have wonderful, dedicated staff and get the community involved.

Via Larry Brewer (Keller Williams ):

Like a lot of people, I thought that my donations to the National Humane Society would work it's way through the system and come back to help abused and neglected pets throughout the country.

I was wrong.

I scanned the tax return information on their website this morning, and became very angry. The National Humane society has assets of over 200 million dollars, and it appears to be used primarily as a fund for lobbiest (or funnel money to politicians). What really made me mad was that no money made it's way back to any of the local animal shelters.

If you want to fund politicians, give to the national Humane society. If you want to help neglected pets, give to your local shelter. The two are not connected.

This posting and the contents written here are the intellectual property and opinions of Larry Brewer of Keller Williams Realty. Providing real estate services to clients in Nashville, Brentwood, Franklin, Spring Hill, Green Hills, and the middle Tennessee area

This is UNSPORTSMAN-LIKE Conduct * NASCAR PARKS #99 after Driver WRECKS the #12 in Hotlanta

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Sun, 07 Mar 2010 16:19:38 -0600

This is one of my FAVORITE NASCAR tracks and today's race did not disappoint me....Carl Edwards intentionally wrecking the #12 was a disappointment. NASCAR champion Kurt Busch brought the multi-race winner BLUE DUCE to Victory Lane!!!

600+ GM Dealers May Be Re-Invited BACK to the Prom! They May have OTHER DATES!

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Sun, 07 Mar 2010 06:19:11 -0600

GM offering reinstement letters to 600+ dealers who were RIFFED (reduction in force) over a year ago may be a welcome distraction for the media and administration expecting dealers to beg to be reinstated; however, many of these dealers have other automakes on their lots, have reduced their sales and repair staff AND economized to stay in business * LEAN and MEAN * if you will.

Why would a dealer who has been shafted with no reason given want to get back in? Auto dealer groups are welcoming the chance for reinstatement to get the GM brand back on the roads; however, from the dealer's perspective, if they are surviving WITHOUT GM - why go back and trust the government that does not honor its agreements? again...

Four More Banks Closed by FDIC in MD, IL, FL, UT * 26 so far this year

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Sun, 07 Mar 2010 06:01:19 -0600

Mr. President, it's the ECONOMY!!!

Last week, 4 more banks in MD,FL, IL and UT were closed by the FDIC and their toxic assets (real estate and bad loans) were absorbed by larger, more solvent institutions. Lenders are collapsing at the fastest rate in 17 years.

The two banks in UT and MD were closed as no other bank could be found to take them over. The IL and FL banks were absorbed by banks which had already taken over 2 banks previously.

This does not bode well for our economy and the current admininstration and congress should be concentrating on THE ECONOMY so that these bank failings do not continue to happen and the economy AND EMPLOYMENT can recover!!!

KUDOS to the Iraqis for Braving the Potential for Violence to Vote Today

Wallace S. Gibson CPM * GRI (Gibson Management Group, Ltd.) — Sun, 07 Mar 2010 02:38:17 -0600

I'm wondering what people would have said had they been watching our great country 235+ years ago while we were struggling to become a nation.

At that time, many of our citizens were not considered citizens and did not have the right to vote. As the Iraqis cast their ballots today, our nation and the world should be watching them with pride and reverence for what they have accomplished, how far they have come and their determination to stand on their own!