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Posts Tagged ‘renter’

On the Spot Thought: Only the Landlord Should Be Able to Change the Locks on a Rental

November 11, 2013 Leave a comment

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All sorts of bad things can happen when a tenant changes the locks, especially when the landlord or property manager doesn’t have a key.

Among them:  the tenant might refuse access to the apartment for inspections, there could be an emergency within the apartment (fire, water overflows, medical issues) and the landlord can’t get in to address it, or the tenant could move out leaving the door locked behind him.   These scenarios leave the landlord with little option but to break the door down, or take it off at the hinges… neither of which is preferable over being able to just use a key.

Changing the locks poses another possible problem in that sometimes a tenant might undertake the process himself, even though he’s not particularly skilled… and the door gets so badly damaged that replacing it entirely becomes necessary.  So who has to pay when that happens?  The tenant won’t be happy, but how can it be the landlord’s responsibility to pay for a damaged door under these circumstances?

Make certain to add this requirement into your lease!

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Check out our Real Estate, Housing & Land Use blog at http://realestatehousingandlanduse.wordpress.com.  That blog offers additional information on real estate and housing issues, as well as updates on our Real Estate, Housing and Land Use Conferences.

You can also find us on Facebook at http://www.facebook.com/onthespotrentals and http://www.facebook.com/mainerealestateinvestorsgroup.

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Getting a Divorce? Consider a Neutral Interim Third Party to Manage that Real Estate…

February 19, 2013 Leave a comment

Divorces stink. No way around it, and no matter how cordial everyone’s trying to be. The easiest divorces are usually those where there are no kids, no wealth and no real estate involved.

Add any – or all – of those three into the mix, and it suddenly gets very complicated. No matter how well you used to communicate, or how much you once trusted the other person, questions can start popping up….

A divorce when real estate is involved can get nasty really fast. Who’s in charge of the day to day management? Who collects the rents? Who pays the bills? Who’s pocketing money or squandering it on personal – not business – expenses? Is the property for sale – and if so, who’s hiring the broker, and who’s agreeing to the listing price? Are the lawns being mowed? Are the furnaces being maintained? Are the units being filled? Are those bills really being paid?

We know of several situations in which a divorce dragged on and on not because of arguments over the kids or someone’s affair or who gets the house… but because of the real estate. Even when it’s in one partner’s name, fights over real estate can get very messy, and keep a divorce in the courts for far longer than is good for anyone (except the lawyers).
Image - Broken Heart Line Drawing
If you own real estate and are thinking of getting a divorce – or are already in the midst of one – you might want to consider hiring an interim property manager to handle the finances and day to day management of the property. (Or you could ask the court to appoint someone, in which case both you and your spouse will be asked to provide the names of 2-3 property management companies along with their fee structures.)

Yes, you’ll pay around 10-11% of the rental income to the property manager (some of which might have ended up going to the legal guys anyway), but you’ll rest easier knowing exactly what’s going on with that real estate.

One quick tip… Make sure the property management firm you choose is impartial. This doesn’t necessarily mean that you should choose someone you don’t know, but it definitely does mean you should choose someone who knows that his job is to manage the real estate to the best of his (or her) ability – and not to get involved with taking sides in the divorce.

As I said, divorce stinks. Take a bit of the pain away by letting someone else manage the headaches of the real estate for a while.

I Want to Find an Apartment for $350 per Month in My Town

February 8, 2011 Leave a comment

Question & Answer on a Real Estate Site:

My fiance and I want to rent an apartment in our town for about $350 a month.  Can anyone help?

My amended and de-identified response (and I sure wish I’d been able to offer some hope for this couple):

Good morning,

My husband owns a property management & leasing company (http://www.onthespotrentals.com), and hears this kind of question several times a day. “Where can I get an apartment for under $500?” “I want to rent a 3 bedroom house, utilities included, for $700 a month”, etc. Many people will add that they’re “handy” and can fix the place up in exchange for reduced rent.

The unfortunate reality is that there’s almost nothing out there that’s that cheap (and if it was, you truly would not want to live there).  Last year (Fiscal Year 2010), the Fair Market Rent for a one-bedroom apartment in your county was $705 per month. That’s twice what you want to pay, and means it will be almost impossible to find anything in your price range.

I’ve heard tenants complain that the landlords are overcharging, and gouging the tenants with their prices, but mostly that’s not at all true.  It’s very expensive to own & maintain an apartment building (I know this from personal experience because I used to own several). Depending on the size of the building and its orignal cost, the mortgage, taxes and insurance can easily be a couple of thousand dollars a month. Then there’s heat, and common electricity, and water/sewer, and maintenance, and snow plowing and lawn care… many buildings lose money on a monthly basis – the landlord is just hoping to make money in the long run.

I do hope someone else has a different answer than I can offer, but I’m afraid you’re going to find it extremely difficult to get an apartment for as little as you’re looking to pay.

Good luck,
Linda Snyder
Marketing & Development
On the Spot Rentals

Sad to Say, Some Prospective Tenants Will Lie Even When There’s No Reason To.

January 2, 2011 1 comment

01.02.2011. 

My husband John (“Johnny On the Spot” of On the Spot Rentals) is always very clear with prospective tenants about background checks. 

The application is not a formality, he will do the background checks, and if they have anything he should be aware of, they’d better fess up now—since if they tell him their background is clean, and he finds out otherwise, that will immediately disqualify them.

John is also upfront with prospects that he knows the economy has been horrendous and that many people now have poor credit records as a result.  He says his biggest concerns are a history of evictions or skipping out on rent and utility bills… past behavior is indeed a predictor of future.  He gives prospects the opportunity to discuss what he will find before he undergoes the credit & background checks. 

You would think that most people would be relieved, and would own up to past hits or black marks.  Amazingly, he’s run across just a small minority of people willing to offer up the truth—even knowing he’s going to find out within the next 24 hours. 

A surprising number will look him right in the eye and say they understand, but actually they aren’t ready to make a decision on an apartment yet, even though they’ve just completed all the application forms.  Worse, quite a few have looked him right in the eye and said, “Of course… but you’ll find nothing to worry about.” 

For example, there was the State prison guard who laughed and said, “I’m a State employee.  I couldn’t work for the State if I had a criminal background”.  Yet she did, and three (3!) recent evictions, too.

And there was the couple who said, “Yes sir, we understand” and turned out to have a string of evictions, had skated repeatedly on utilities bills, and had even moved from another state, apparently to avoid the court system because of non-payment of more than $17,000 in child support… and in the past 3 years had skipped out on another $18,000 in child support.

It was this last couple who was the final straw.  John, who had wanted to avoid asking prospects upfront for the $25 per person fee it costs for the credit history & background check (this does not include his time chasing down employers and former landlords for references), immediately implemented the same policy that many other property management companies have. 

Now, before he will submit an application for a background check, he gets the $25 per person fee upfront.  No $25, no background check; and therefore no way the prospect will be allowed to rent the house or apartment.

It’s been an eye-opening and expensive lesson for a small businessman who believed that if he were open and honest, that others would be in return. 

Thank goodness for such wonderful people as the young wife who recently said, “My husband has a felony assault charge from several years ago, but he’s stopped drinking since then”, or the couple who had a plausible explanation for the eviction John would find. 

It’s so cliché, but still…. the truth is always the best route to take.

http://www.onthespotrentals.com

http://www.facebook.com/onthespotrentals

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