Greater Baltimore Property Management Blog

1. Never Forget a Paint Color Again

Try to use the exact paint color/brand used for every rental lease agreement. This way, you will always know what paint was used when the tenant moves out and the property needs touching up! Also never use flat for rentals or you will find yourself hearing complaints and paying to paint the entire unit on every turnover!

No need to remember what color each place is painted that way, and no partial gallons of leftover paint sitting around – it just gets used on the next rehab.  We also use the same color on both walls and ceilings, which allows the painter to “spray” the entire unit rather than roll, cutting down the costs significantly (tip: choose a neutral color if you are going to do this. No one likes a dark ceiling!)

2. Save Money on Mini-Blinds

We like to make sure all units have clean, white mini-blinds in every window. When buying those miniblinds at Walmart or Home Depot, they typically cost around $4 for blind up to 36″ in width and $20 for blinds that are wider than 36″. Rather than spending $20.00 on each window for blinds, we simply use 2 blinds, side by side. Not only does this still look great for half the cost, it also makes it cheaper to replace just one side in the future if a blind gets damaged.

3. Forget the Mini-blinds Altogether

While I love using mini-blinds, they do get destroyed easily by kids and pets, plus they are a nightmare to clean. Put up a 99-cent curtain rod and some cheap curtains from Goodwill or eBay (like $4). This way, there are multiple benefits:

• Cheaper than the $8 mini-blinds for every window.
• Makes the place look nicer and more of a home feel.
• When the tenant departs they can be washed and rehung – no more throwing away damaged miniblinds that wind up in a landfill.  Then you don’t have to buy more mini-blinds either. Better for the environment and saves money on turnover.

4. Easy, Low Cost Carpet

I’ve tried a lot of different methods for getting carpet installed – from doing it myself to hiring contractors on Craigslist. However, for me, nothing has come close in terms of cost or convenience to just have Home Depot install it. In my area, Home Depot’s contractors will usually install a whole house of carpet for $97 (flat fee) if you buy the carpet through them. Carpet prices vary, but I typically spend under $1.00 per square foot for the carpet and choose the “72 hour guaranteed install” option. It is easy, simple, and cheap. Plus, I can order it, schedule it, and do 90% of the work online. 

5. Angry Tenants+Hollow Doors=Easy Fix

Maybe I just live in an angry part of the world, but I have a real problem with holes getting punched in hollow-core bedroom doors. Maybe it makes them feel more powerful knowing they can punch through 1/16″ thick piece of cardboard.  However, I’ve discovered a great fix for this.  Rather than replacing (or trying to patch… which never works), just buy a $6 mirror at Wal-Mart or Home Depot (they are about 4 feet long and 12 inches wide, like this one) and screw it to the door. Not only does it hide the hole, it makes the hallway look larger and ads some decoration to a boring space!

If you have a bad spot on the bottom half of your interior doors just go buy 2 cheap square metal vents (look like hvac return covers) and cut out the square almost the same size to fit one on each side of the door. It also helps airflow in the home.

6. Replace Flooring the Quick and Easy Way

If you have ugly vinyl flooring in a kitchen bathroom, or anywhere else, the demo can be expensive and messy. Instead, just install a floating vinyl right over the top!  My favorite flooring is called “Allure” made by TrafficMASTER and it comes in both a wood design and tile design. It works in the kitchen, bathrooms, or anywhere and anyone can install it in just hours. I can’t recommend this stuff enough!

I actually have actually begun to install it through entire homes, both for aesthetic reasons and because it lasts forever. This stuff can withstand kids, pets, spills, and anything your tenants throw at it.  It runs about $2 a square foot at Home Depot.

7. Appliances Looking Bad? Don’t Replace, Repaint!

I learned this trick from a local appliance repair company.  If you have a stove or refrigerator that is showing signs of age, usually with small rust stains shining through, a $5 can of “appliance paint” from the hardware store can make your appliances look as good as new. I always keep a can of this handy when turning over a unit and am continually amazed at how great it works!

8. No More Slippery Stair Treads

If your rental properties have wood steps, it is easy for those steps to get slippery after rain. For the safety of your tenants (and to reduce your risk of being sued!) nail down strips of roofing shingles on your stairs with roofing nails. Trust me – it actually looks great (no one will know it’s a shingle) and is extremely cost effective.

9. Appliance Sale!

Appliances go on sale at the big box stores around Christmas, Thanksgiving, Memorial Day, Labor Day, and the Fourth Of July, so take inventory each year of what you need and plan your purchases around those holidays. (The same is true for paint!)

10. Quick, Easy, Cheap Lock Changes

Several BiggerPockets members recommend using either KwikSet Smartkeys, which allow you to quickly change a lock in just minutes, or LandlordLocks.com, which allow you to change the lock cylinder easily and for around $5 each time.  

11. Use Apps to Simplify Your Life

Use those portable scanners that can quickly take receipts, leases, invoices, checks, etc and turn them into digital docs; Use tracking mileage apps, the flashlight app, and a Voip service — so voicemails can be delivered as files to your email inbox. 

12. Save Your Cabinet Bottoms

“Put scrap vinyl flooring under the sinks and curl up behind the plumbing.  This way, if there’s a sink leak, it’s not ruining the bottom of the cabinet.  If the tenant has a cleaning supply spill, it’s not ruining the bottom of the cabinet. It also looks pretty nice too.” 

13. Store Your Documents Online

“Use Google Docs so you can access your rental contracts at home or the office – easy and free!” 

14. Protect Your Walls Above the Shower

“I like to put small vinyl door stoppers on the walls above bathtubs. They let tenants know exactly where to put their shower curtain rod, and they also protect the walls from repeated installations.” 

15. Money Saving Tip for Agents

“If you’re a licensed agent buying a rental for yourself, you probably don’t want to take a commission.  Instead, you should consider rolling the commission into the purchase price as a credit/discount.  In other words, if you’re buying a property for $100K and are entitled to a $3K commission on the purchase, ask them to knock the purchase price down by $3K (to $97K) instead. Commissions are taxed at ordinary income and profits when you sell the rental are taxed at capital gains rates. So, you’ll save money on taxes by taking the profit on the back-end (when you sell) than on the front-end (as a commission). Two caveats:

1. If your marginal tax bracket is lower than your capital gains rates, you can ignore everything above.
2. If you plan to hold the rental forever, you’ll likely be able to earn more on the commission reinvestment than what you’ll save in taxes (time value of money). But, if you’ll be selling in fewer than 5 years, rolling it into the basis is probably a better investment.” 

16. Easy Tenant Retention Ideas

Here are  several great tips for keeping your tenants happy and paying!

1. Send birthday cards to each tenant with a $5 Starbucks card
2. Send a postcard to each ‘door’ once a quarter, asking them if there’s anything I can do for them.
3. On a tenant’s lease anniversary, give them an ‘upgrade’ of their choice, within reason. It’s usually something you would do when they move out anyway, you just get to do it with them there. Carpet shampooing is a favorite!

17. Keep Things The Same

“We use standard paint colors, the same tile, same faucets, same toilets, same door hardware, same shingles, same ceiling fans etc on all of our rentals. When we need to do repairs, touch-ups etc it is obvious what the specs are. Leftovers don’t get wasted, just stored until needed.” 

18. Automatic Lease Extensions

Lease clause that renews leases for another 12 months with a built in rent increase. Lease clause allowing tenant to buy out lease at any time for a specific dollar amount (

19. How to Keep Cats Out of the Flower Beds

“If you have cats in the neighborhood who have discovered your planting beds as a good place for their deposits, lay down chicken wire mesh on top of the soil and cover it lightly with mulch.  It is the only deterrent that has worked for us.  Plants can still be planted by cutting a spot in the chicken wire mesh.  You or your tenants can also place potted plants on top of it.  The cats try scratching once, get their claws caught on the wire and won’t come back.”

20. Easy Lease Signing and Storage

“Use Docusign for lease signings and file them away in Dropbox.” 

21. No More Broken Water Heaters

“When you buy a property, if water heater is more than 2 yrs old then just go ahead and replace with a new one, sell the old one on Craigslist and you don’t get the 2 am call that unit is flooding!

22. No More Broken Cabinet Drawers

Take out and flip over your kitchen drawers (bottom of the drawer facing upward). Take liquid nails or adhesive spray and apply the adhesive to all four inner creases where the drawers meet.  This will make the drawer stronger and should not break for years to come. 

23. Brighter Units

If you want your rental appear brighter and more appealing to renters.  Replace all the light bulbs in the home with the clear light bulbs that are usually meant for bathrooms. Renters will subconsciously remember your unit over the rentals that had poor light due to a cheap 40 watt bulbs.

24. Hire a Property Manager!

Buying and owning property is rarely easy or simple. When the property in question is in a distant location, the challenges multiply. Nevertheless, investing in out-of-state property might seem appealing if you live in an area where real estate is expensive. It might also be attractive if you already own your home but want to diversify your investments.

Regardless, here are the issues to consider before you decide to take the plunge.

Proximity And Access: This one is a bit of a no-brainer. You shouldn’t hire anyone to manage your property who’s not situated close enough to it that they can respond to maintenance emergencies at a moment’s notice. The closer they are to your property, the better. If they’re not managing other properties right in your neighborhood, they won’t be a good fit.

Legal And Local Knowledge: As we mentioned in previous articles, property management without a comprehensive understanding of local real estate laws and regulations is a recipe for trouble. You could end up on the wrong end of a lawsuit if you don’t make certain that your property manager knows the ins and outs of region-specific rules. These things change over time, which is why your property manager will need to stay up-to-the-minute current on all developments so that you don’t have to.

Proof Of Work: Without the property owner nearby, an unscrupulous management company might try to say they’ve performed certain tasks they actually haven’t. And if you can’t rely on them to provide clear proof that they’ve done the work they claim to have done, you won’t know one way or the other. So, make sure at the outset of your arrangement that you’ll receive hard evidence every time they walk the property or perform repairs. Dated pictures of recent inspections are a great place to start. “Before” and “after” pictures of repairs can also help make sense of the amount you’ve been billed.

Investing particularly for low price of entry and high promised yields is very attractive. But the process is not as simple as it may seem, so proceed with caution. If you keep these rules of thumb handy, you may find a reason to travel outside your local market for higher returns.

Key Take Aways

• Buy in a town you know, or get to know the town before you buy.
• Finding a property management team and a maintenance worker are as important as finding a real estate agent.
• Don't just tour the property. Get an inspection.
• The cheapest the cost of the firm is not a good indicator of value. Check reviews!!

Researching Property Management Companies?
PropertyWize is the best in the industry!We are committed to making you a successful investor. Our team wants to see you get a better return on your rental property. We know how to increase your profits all while decreasing your stress and frustrations. Our proven systems, and use of cutting-edge technology, sets us apart. Being a landlord is hard work. Put our experienced team of 10 individuals to work for you. Schedule a 30 minute consultation with an Experienced Manager Today!

The benefits of hiring an HOA Management Company can range from improved access to community management experts to the availability of HOA systems already in place to serve your community. Working with an HOA management company benefits not just the community development, but the HOA board, too.

When deciding between the costs and benefits of hiring a professional HOA management, consider the current capacity of your current board. Chances are, your elected board member could use a little help when it comes to the day to day responsibilities of running your association. Why not look for a trusted partner for your community? 

Why Hire An HOA Management Company? 5 Reasons You Should

Most of the reasons why an association management company benefits the HOA board and community they work with are centered around the fact that companies like them specialize in this line of work. Extensive experience, wide access to community management resources, and a broad range of professional contacts are only some of the benefits of hiring an HOA management company.

Smaller communities may be able to get by with a self-run HOA board, but once the development grows into a mid-sized community, the workload can increase exponentially. Mid-sized to large communities will require the attention of a full-time HOA staff. And at that point, you need to start weighing the costs and benefits of hiring a professional HOA management company to ensure the same level of service.

Some types of communities can make extensive use of the benefits of hiring an HOA management company that specializes in the niche. High-rise condominium developments, for example, require specialized knowledge in dealing with high-density living areas and the maintenance of a high rise structure. Retirement communities, likewise, have an entirely different set of requirements compared to single-family developments.

Think of the special needs of your community in mind as you consider the benefits of hiring an HOA management company:

1. When You Need Third-Party Financial Administration

One of the biggest pressures that elected HOA board members have to deal with is the financial side of running an HOA., especially so for board members that need to explain a new round of fee hikes to neighbors and friends, or worse, collect overdue assessments from residents they personally know.

That’s where one of the biggest benefits of hiring an HOA management company comes in.

An HOA management company helps with these types of transactions, and both sides can rest assured that an outside and independent company will not have a conflict of interest. As long as the company is fairly enforcing the policy of the HOA board, even delinquent payers will likely understand that there is no personal interest involved when the company is only doing its job of collecting payments.

2. When You Want to Maintain a High Level of Community Appeal

Many communities pride themselves on the level of visual harmony and aesthetic appeal that their development has maintained for itself. What is hidden behind the flawless landscaping and beautiful architecture, however, is the tremendous work that goes into keeping the community well-maintained. Oftentimes, this work requires the expertise of vendors specialized for certain types of maintenance services.

One of the benefits of hiring an HOA management company is the broad range of vendor contacts they have. A competent HOA management company can connect your community with reliable vendors that offer quality maintenance services. Over the long term, having this high level of maintenance service can translate to lower repair and replacement costs, aside from making your community a highly desirable place to live in.

3. When You Need Legal Expertise

It would be great if most elected HOA boards can include a resident who is well-versed in the current laws applied to an HOA. Most board members are unlikely to have a sufficient background when it comes to legal issues that can potentially affect the association. One of the main benefits of hiring an HOA management company is access to a legal opinion that you can use as a guide for your board decisions.

A professional HOA community manager is likely familiar with laws and court decisions that can affect the development. Even if they are not immediately familiar with the legal issue at hand, a typical HOA management community will have access to legal resources and professional contacts that they can refer to.

4. When You Need to Put Up HOA Systems

Putting up the appropriate HOA systems for managing the day to day responsibilities in your association is a must if your board is to function efficiently. In most cases,  most board members will not have the right background to implement these information systems. The investments involved in software, systems, services, and devices, can easily run into thousands of dollars and can take years if you’re implementing a system from scratch.

Established systems and technology vendors are just a few of the benefits of hiring an HOA management company that can save you a ton of costs. Using a prebuilt HOA system will also get your association up and running in less time, too.

5. When You Need to Expand Your Connections

Running an association is a group effort that involves everyone in the community as well as those outside it. Certain things are best left to the experts, and an HOA has no shortage of those. Landscaping, maintenance, law enforcement, condominium building management — all those require the extensive experience of vendors and agencies.

An HOA management company can give you valuable connections to all those and more. Perhaps the biggest benefit of hiring an HOA management company is the wealth of expertise and resources they have at hand, and a professional community manager can put all those to work for your neighborhood.

Work with an HOA Management Company You Can Trust

Having a successful community is always a work in progress. The HOA board should make sure they hire the right people to help them manage the community effectively. There are many benefits of hiring an HOA management company, given that the HOA board chooses the right one. If you want to know more about finding the right fit for your community’s needs, don’t hesitate to talk to us.

Researching Property Management Companies? 
PropertyWize is the best in the industry!We are committed to making you a successful investor. Our team wants to see you get a better return on your rental property. We know how to increase your profits all while decreasing your stress and frustrations. Our proven systems, and use of cutting-edge technology, sets us apart. Being a landlord is hard work. Put our experienced team of 10 individuals to work for you. Schedule a 15 minute consultation with an Experienced Manager Today!

This past year has been a difficult one for landlords. As the COVID-19 crisis has impacted the entire country, landlords have dealt with a variety of issues including shifts in housing patterns, a federal moratorium on evictions, and a need for implementing new procedures and protocols to keep properties and tenants safe. Here is a look forward to 2021 for landlords. 

As a new year looms and the COVID-19 vaccine rollout is underway, many landlords are optimistic about what 2021 will hold. While there is still much uncertainty as to what the next year will look like, there are a few trends that landlords can anticipate and plan for. Here are a few to keep in mind. 

Renters will Continue to Leave High-Density Areas for the Suburbs

One major trend of 2020 has been renters leaving high-density urban areas for the suburbs. The combination of so many employees working remotely and the loss of many perks of city living – like restaurants, events, and amenities – has caused many renters to look for a suburban rental with more space and a yard. 

Describing this trend, Stuart Miller of Lennar says, “There’s no question that there are people who are fleeing the cities…..There’s no question people are rethinking whether they want to be in high rise rentals with common spaces as amenities vs. having a home of their own with a backyard.” 

This trend will likely continue during 2021. Even once there is widespread distribution of the vaccine and a loosening of restrictions in cities, it’s likely that this trend will continue as more and more companies shift to having employees work remotely. This will mean that there will likely be reduced demand in urban areas with a simultaneous increase in demand – and rental prices – for rentals in suburban areas. 

There will Continue to be a Rise in Tenants Unable to Pay Rent

While the federal eviction moratorium was initially set to end on December 31, 2020, it will likely be extended through January 31, 2021, as part of the most recent stimulus package. However, even when it is lifted, landlords will see an increase in tenants unable to pay rent as there are still millions of Americans out of work. 

Hopefully, joblessness will continue to decline and will decrease dramatically after the widespread rollout of vaccines. Until then, however, landlords should anticipate an increase in tenants unable to pay rent combined with federal protections to help support these individuals impacted by COVID-19. 

The Rental Market Will Rely More Heavily on Technology and Go Contactless 

One major shift in 2020 has been a rise in rental markets going digital. Landlords and property management companies have worked to go contactless, setting up self-showings, online applications, e-signature services, and contactless rental payments. 

This is a trend that will likely continue into 2021 and will remain even after the COVID-19 crisis has passed. These systems enable property managers and landlords to be more efficient and to more effectively handle tenant turnover and property management. 

If you haven’t done so already, it’s a good idea to work towards going contactless by putting all forms online and utilizing an e-signature service. While this might sound daunting to some, by simply getting an ezLandlordForms Lease, landlords can instantly get access to all necessary, state-specific forms online as well as ezSignature and ezCloud storage. 

Conclusion

As we enter 2021, the end of the pandemic is in sight. That said, it will continue to impact rental markets throughout the year and likely into the following year. Uncertainty about the timing of vaccine distribution, the potential for new federal regulations, and the potential for long-term shifts in the rental markets leaves many questions about what the year will hold. 

Looking forward to 2021 for Landlords, they should go into the year planning for some of the shifts that seem likely while also anticipating some surprises and the need for flexibility as the year unfolds. For help with the tools and resources needed to be successful this year, visit ezLandlordForms or contact our team.

Article URL: https://articles.ezlandlordforms.com/landlord-and-real-estate-news/what-2021-will-look-like-for-landlords/?utm_source=automated-mailings&utm_medium=email&utm_campaign=newsletterjan

Researching Property Management Companies?
PropertyWize is the best in the industry!
We are committed to making you a successful investor. Our team wants to see you get a better return on your rental property. We know how to increase your profits all while decreasing your stress and frustrations. Our proven systems, and use of cutting-edge technology, sets us apart. Being a landlord is hard work. Put our experienced team of 10 individuals to work for you. Schedule a 15 minute consultation with an Experienced Manager Today!

For owners of rental or investment real estate, it’s common to form a limited liability company (LLC) and transfer title to the property from the individual owner to the LLC.

Transferring property to an LLC can limit your personal liability if someone is injured on the property and files a lawsuit against the property owner.

People who own multiple rental properties sometimes form a series of LLCs to insulate each piece of property from liability claims involving other properties.

Here are eight steps on how to transfer property title to an LLC:

1. Contact Your Lender

Transferring a real estate title to an LLC doesn’t transfer the mortgage. You personally are still obligated to make the mortgage payments on time. In addition, many mortgages have a “due on sale” clause, which means that if you transfer ownership of the property, the lender could require you to pay the full mortgage amount.

Your lender may be willing to allow you to transfer property title to an LLC that you own, as long as you remain fully obligated on the mortgage. Your lender could also require you to refinance the mortgage with the LLC as a borrower. Unless your LLC has an established income and credit history, you will also have to sign a personal guarantee that you will pay the mortgage if the LLC cannot. Finally, the lender could enforce the due on sale clause, requiring you to pay off the mortgage and seek new financing. You should understand your lender’s requirements before you try to transfer the title.

2. Form an LLC

You form an LLC by filing articles of organization with the agency that takes care of business filings in your state. You can form an LLC online or in person.

3. Obtain a Tax ID Number and Open an LLC Bank Account

If your new LLC has more than one owner, has employees, or meets certain other requirements, you must obtain a Federal Tax ID Number (also called an EIN or Employer Identification Number). You can do this yourself by filling out a form on the Internal Revenue Service website. Even if it’s not required, you may need a tax ID to open an LLC bank account.

Once you have a tax ID number, you can go to a bank and open an account in the LLC’s name. A separate bank account helps keep your LLC money separate from your personal finances. If you don’t maintain this financial separation, you risk losing the liability protection that your LLC provides.

4. Obtain a Form for a Deed

You can find a deed form at your county recorder’s office or on the Internet, or you can have an attorney prepare a deed for you. Deed requirements vary somewhat from state to state, so be sure you are using a deed form that is specific to your state.

There are two kinds of deeds: warranty deeds and quitclaim deeds. When you purchased your property, you most likely received a warranty deed that included a guarantee that the title was good and free of any claims or interests by third parties. A warranty deed passes that guarantee on to your LLC.

If you transfer title through a quitclaim deed, you are simply saying that you are passing any interest you might have in the property to your LLC. The quitclaim deed doesn’t guarantee that the title is good, or even that you own the property.

Because of the protection they provide, warranty deeds are typically used to transfer property between unrelated parties. Experts disagree on whether you should use a quitclaim or a warranty deed to transfer a real estate title to your LLC. Many people use quitclaim deeds, but some prefer to use a warranty deed because it gives the LLC some remedy if there is a title problem and it preserves the chain of title to the property.

5. Fill out the Warranty or Quitclaim Deed Form

You are the grantor and the LLC is the grantee. Make sure you specify your name as it is written on your current deed, and use the full legal name of your LLC. You may be asked to specify the purchase price, or “consideration” paid for the property. If there’s no money being exchanged, you should consult your county recorder or state laws to find out the minimum consideration required for the deed to be valid.

6. Sign the Deed to Transfer Property to the LLC

As grantor, you will need to sign the deed, and your state may require that you sign in front of witnesses or a notary. Some states also require a grantee to sign, so someone will need to sign on behalf of your LLC.

7. Record the Deed

Recording the deed creates a public record of the property transfer. You record a deed by submitting it to the registrar or other agency that handles real estate records in your county or city.

8. Change Your Lease

If you’ve transferred property that you rent out to others, you should amend any leases to reflect that the landlord is now the LLC, not you personally. Rent should be paid to the LLC and deposited into a separate LLC bank account. Observing these formalities will reduce the likelihood that you could be held personally liable if something goes wrong.

Transferring property to an LLC is a simple way to reduce your personal liability for claims relating to the property. But a property title transfer should be only part of your strategy. It’s also important to contact an insurance agent and obtain adequate liability insurance to cover any claims that might arise.

LegalZoom can help you start an LLC quickly and easily. Get started by answering a few simple questions. We'll assemble your documents and file them directly with the Secretary of State. You'll receive your completed LLC package by mail.

Article URL: https://www.legalzoom.com/articles/how-do-i-transfer-title-of-a-property-from-a-person-to-an-llc

Researching Property Management Companies?
PropertyWize is the best in the industry!
We are committed to making you a successful investor. Our team wants to see you get a better return on your rental property. We know how to increase your profits all while decreasing your stress and frustrations. Our proven systems, and use of cutting-edge technology, sets us apart. Being a landlord is hard work. Put our experienced team of 10 individuals to work for you. Schedule a 15 minute consultation with an Experienced Manager Today!

We actually started offering virtual showing tour in early 2019, mainly as an option for high-end luxury rental homes in order to provide visual access to prospects who are limited on mobility and find it difficult to attend traditional in-person showings and where we had an opportunity to attract out-of-state prospects who were relocating to Maryland. Nowadays, in light of the COVID-19 pandemic and with everyone practicing social distancing, virtual leasing and virtual 3D touring of rental homes has become more popular and even mandatory under the state of emergency. As a result, it was a no-brainer for us to immediately offer 100% online virtual 3D tours on all listed rental homes and to come up with innovative ways to attract, screen and successfully place qualified tenants regardless of pandemic restrictions. 

Digital leasing tools provide increased convenience for potential renters to view homes and allow our team members to focus more energy on serious and promising leads. With less physical showing, we actually have more captured leads, and faster and higher conversion rate. That’s a Win-Win (for our clients and our prospective residents)!

The required social distancing caused by COVID-19 shall soon pass into history, but by that time it will have changed our cultural acceptance to virtual showings; and the simplicity of virtual leasing will become a part of our new norm. 

In the past 6 weeks of our lockdown, we have experienced very positive results with virtual leasing and showings. We are helping to move our industry toward having every rental listing on the market upgrade to virtual tours, either by 3D interactive photos or video filming of a walk-through.  Here are the key benefits:

• More Effective Marketing and Advertising
• Interactive & User Friendly
• Saves Time & Energy
• Filters Less Serious Inquiries Out
• Homes are Rented even while Social Distancing
• Less Vacancy Days
• During peak season average vacancy days has reduced 20-50%

The number of units we manage has increased 6 times in the past 4 years and our online ratings have remained exceptionally high at 4.9 of 5.0 across all major platforms. One of “secret sauces” is that we always listen to the market and rely on innovative new technologies to provide better experience and streamlined processes.  Virtual leasing and showing is definitely here to stay, and we want to share our success with you when you partner with PropertyWize®… the Team that has already Mastered this new way of leasing homes. 

Interested in a Virtual Leasing Make Ready Checklist to prepare your home for a successful virtual listing? Provide us your information below and we will send you the checklist.  😊

Receive Checklist Now

 When is Peak Rental Season? 

Peak rental season is when there are more tenants looking for rental properties. This happens in the summer, specifically May to August.

When is Trough Rental Season?

Trough rental season is when there are less qualified tenants looking for rental properties and a lot of properties on the market.

Wondering why its extremely difficult for leasing between October- December 

• It’s hard to move during the winter. For most of the United States, moving in the winter requires moving furniture through snow and sub-zero temperatures.
• Parents typically want to move during the summer, so their children’s school year is not interrupted.
• Students who are renting while they’re in school want to sign a lease right before the school year starts.
• Graduates typically finish school in the summer and move into rentals.

What are the Benefits of Finding Tenants During Peak Rental Season? 

As a landlord, you want to make finding tenants, screening tenants, and signing a new lease as easy as possible. Searching for tenants during peak rental season helps you do just that. Here are the specific benefits:

Maximize Tenant Interest

If you list your property during peak rental season, more tenants will see your rental listing, which will result in more tenant leads. You want to list during peak demand so you can engage with more tenants.

Be Selective 

With a larger number of tenant leads, you can be more selective. When you’re selective, you increase the chances of finding quality tenants who pay rent on time and take care of your property. We’ll help you find quality tenants with our tenant screening advice. Learn how to:

• Review rental applications
• Verify tenant income
• Contact prior landlords
• Analyze tenant credit reports and background checks
• Accept or deny prospective tenants
• Avoid Rental Vacancies 

If you list your property when demand is high, you decrease your chances of having a vacant rental property. At PropertyWize, our online rental listings generate an average of 25 tenant leads per month, so a vacancy is almost never a concern.

Things to Consider Renting During Trough Season

Don’t panic or become desperate 

Make sure your rental property stands out in appearance and PRICE amount the competition.

Offer a leasing incentive to move.

Keep the same screening process but you may need to budget to drop the rent.

Know the cycles of leasing as it important when budgeting for new investment properties. We always inform clients that you may be able to a good deal but always know this time of year is very tough to rent homes to qualified tenants.

What Do PropertyWize do to assist with leasing during the Trough Cycle

Lease Terms

In order to make the most of peak rental season, you’ll want to get on a summer vacancy cycle. Beginning during the month of November, we offer an incentive for doing an 18-month lease term or in some rare cases we offer a 6-month lease option. That way, the next time you must search for tenants, it will be during the summer.

Turn up the Marketing Efforts

• During the Winter Season, we increase our marketing activity:
• Post to craigslist at least 2-3 times a week
• Offer Free Applications
• Make sure our Listings stand out by having professional photos and proper signage
• List to over 30 sites and counting including the top 6 (Zillow, Hotpads, Trulia, Craigslist, Go-Section 8, and Facebook Marketplace)
• Run Sponsored Ads on Facebook to drive more clicks
• Promote to all the Popular Facebook Groups
• Refresh leads more often to stay at the top of the listing’s webpage.
• Weekly email blast using Mail chimps and Go section 8
• Have brochure boxes in specific properties with flyers to generate more drive by traffic
• Co-Op with other Realtors and Tenant Placement companies
• Host Big Open Houses to drive in more traffic

Other things to consider when Leasing a Rental Home.

Amenities:

Going into 2020 all rentals should include the following amenities to attract the best quality tenants:

• Washer and Dryer
• Black or Stainless Appliance Package
• Window Treatments
• Central CAC
• Prompt and Professional Maintenance Service 

Location

Does this place have easy access to roadways and/or public transportation? Can I easily access grocery stores? Will my commute be reasonable for my preferences? Is this area safe? Are the school districts acceptable?

These are all questions renters are going to ask when looking for a quality place to live. You don’t necessarily need to provide all of these to have a rental that performs well, but they are certainly things to consider.

If your rental is near a University, there are some advantages for leasing during the trough season. 

For example, if you’re near a University, and tend to rent to students, then you should pay attention to the school’s annual calendar. You’ll want to sign a lease 30 days before the school year starts because students want to move-in right before classes start.

Keep in mind a few key details about timing: 

You want new tenants to move in right away to avoid a vacancy but leasing to the wrong tenant will cost you even more. So its best to wait for the optimal timing. 

Your new lease should be signed 30 days before new tenants move in

It typically also takes 30 days to find and screen tenants during the Peak Season and 60-90 days during the Trough Season.

Making the most of peak rental season will help you find more interested tenants, be selective, and charge a higher rent price. If you end your next lease during the summer, you can be on a summer vacancy cycle moving forward.

Researching Property Management Companies?

 PropertyWize is the best in the industry!

We are committed to making you a successful investor. Our team wants to see you get a better return on your rental property. We know how to increase your profits all while decreasing your stress and frustrations. Our proven systems, and use of cutting-edge technology, sets us apart. Being a landlord is hard work. Put our experienced team of 10 individuals to work for you. Schedule a 15 minute consultation with an Experienced Manager Today!

1. Protection from liabilities.

LLCs protect you from liability claims. Anything that’s a claim against a property—like, “Hey, I slipped and fell”—an LLC is an entity that can stand between you and that. The party will come after the LLC, not you personally.

Full transparency: there are ways around this. The most important one to mention is liability insurance. Now, I’m not saying insurance takes the place of an LLC—but you are not fully exposed if you don’t have an LLC but you do have insurance.

2. Provides tax write-offs.

Because it’s an entity with its own tax return, LLCs allow you to write things off (i.e., business-related expenses like your cell phone bill). You can try to write them off on your personal tax return, but it looks a little squirrelly to the IRS that it’s not a company claiming those business expenses. It makes things cleaner from a financing and tax perspective to write them off under an LLC.

3. Allows you to sell shares of the company.

An LLC operates as a business entity. As long as it’s registered properly with the SEC, you can sell shares—or in the instance of LLCs, what’s called “interests”—of the company to other investors who want to invest with you. Or you can sell the LLC altogether as a business that owns things.

There are times when an LLC is not appropriate though. So, when exactly shouldn’t you form one?

When NOT to Use an LLC

1. Don’t use an LLC if you’re house hacking.

Don’t use an LLC when house hacking, because it may prevent you from getting the financing you want. If you’re looking for low money down, Fannie Mae- or FHA-backed mortgages, this property can’t be in an LLC.

For these purposes, banks can only lend you that money under your personal name. Just get a really good insurance policy.

2. Don’t use an LLC if you don’t have 20 to 25% for a down payment.

If you’re buying a property for $100K, if you’ve got $20 to $25K to lay down plus some for closing costs, there’s no reason why you would not go out and start up an LLC. You can get commercial financing on these properties or financing from some other lender. If you encounter lenders who won’t do it, find another one, look on BiggerPockets, or walk into a small community bank.

More LLC Pro Tips

Here are a few final thoughts on the topic.

Avoid setting up your LLC online (unless you’ve been doing it for a while). Instead have a lawyer help you.

And absolutely have a lawyer help you create an operating agreement with the LLC. You can do this online, too, but I highly recommend NOT going that route—especially if you have partners.

A good lawyer can set up an operating agreement for you for less than $1,000. It’s worth it.

Bottom line, if you’re going to build a business around real estate investing, run it as a business. An LLC is a company.

If you’re looking to make this a side hustle or just something you do a little bit, then do it in your personal name and own one or two properties. That’s OK.

But, if in the future, you intend to build a big portfolio, set up an LLC. Operate as a business. Do it now—five years before you get to that point. I promise you, moving properties out of your personal name and into an LLC is not easy—it’s doable but difficult.

One last thing, set up the LLC where the property is. Don’t favor Nevada or some other state over others. The LLCs that own certain properties should be set up in the state the property physically exists in.

You’re going to have to pay a tax return in that state. So just set it up there.

The reason people talk about state-based LLCs is because they believe specific types of LLCs will prevent certain claims from jumping over the LLC and getting to you personally.

However, I’ve never seen any state-based LLC prevent anyone from getting ahold of a person specifically if that’s what they’re trying to do. Plus, that’s what insurance is for. Avoid the tax headache of setting up an LLC outside of the state the property is actually in.

I’m not a lawyer or CPA—neither is BiggerPockets. You should absolutely consult a lawyer or CPA about this subject. A lot of the information that I’ve gone through here today is my opinion, so it’s important to consult a professional.

Source: https://www.biggerpockets.com/blog/real-estate-llc-not-best-option?utm_source=newsletter

The best move a real estate investor can make is to not hire a bad property manager in the first place. Use these questions before hiring a new property manager and to routinely monitor the performance of your current manager.

Key questions to ask

Asking these questions can help separate the good property managers from the bad:

• Are they licensed, do they hold professional certifications, and do they adhere to a code of ethics?
• How long have they been in the property management business?
• Do they manage properties similar to yours?
• Do they have property in the same part of town as yours?
• Are they property management specialists?
• When and how do they pay monthly owner distributions?
• How often do they send out financial reports, and do they provide year-end reports and 1099s?
• Do they have an in-house maintenance crew and outside vendor network, and what type of work are they licensed to do?
• What is their current vacancy rate for all properties they manage?
• How often do they have to evict a tenant and do they handle the process in-house or through an attorney?
• What is their fee structure?
• Does the property management agreement automatically renew, and how is it terminated by either party?
• Will they give you a list of properties they manage so you can drive by and see their work in action?

4 Red Flags to Watch Out For

Believe it or not, a company can tick all of the boxes above and still end up being a bad property management company. That’s because they’re experts at telling you what you want to hear, then doing the exact opposite once the contract is signed and they’re collecting their fees.

Watch for these four red flags to avoid being victimized by a bad property manager:

1. Unprofessional behavior – Remember, they’re representing you as a professional real estate investor.
2. Maintain normal business hours only – An emergency can come up at any time on any day. If a property manager isn’t reachable around-the-clock, 365 days a year, move on to the next one.
3. Slow to respond – Think of the first time you meet a prospective property manager as a “first date.” If they’re slow to respond to your inquiry or late to an appointment the first time you meet, things will only get worse after you hire them.
4. Refuse to provide references, citing client confidentiality – You wouldn’t go to a doctor, lawyer, accountant, or even an auto mechanic without a good reference. So why would you put your property worth hundreds of thousands of dollars into the hands of a property manager who won’t let you speak with their current and former clients?

Researching Property Management Companies?

PropertyWize is the best in the industry!

We are committed to making you a successful investor. Our team wants to see you get a better return on your rental property. We know how to increase your profits all while decreasing your stress and frustrations. Being a landlord is hard work. Put our experienced team to work for you.

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I know the subject of this blog may have caused 3 reactions. Some people may have rolled their eyes and scrolled away. Or perhaps you were a bit excited, the title alone made you curious enough to continue reading as you are in the process of starting your real estate investing business; the more you know, the better. Like most of us, you smiled as you learned this lesson already and are glad to see someone bringing awareness to this part of investing.

I get it, we are all trying to maximize income and reduce expenses in any business venture but let’s think about it. 

Meet Investor Bob from Waco Texas. Bob recently   invested in a nice size 100-unit property in  Maryland. On paper the deal was sweet and came with instant cash flow. The property is in good condition and doesn’t appear to have many mechanical issues. It is currently 98% leased. Bob already had his mind set, if there were any hidden surprises, he already had plans on hiring a Property Management Team. Bob have been researching good companies, but because this will be his first experience and have nothing to compare the experience to, he decided that the fee is what will seal the deal. His plan was simple, he will interview some Property Managers who appeared to know what they were doing for the most part but charged the least percentage for the management fee. Bob already calculated what his monthly distribution would look like and figured this deal was too good to pass up on.

Besides just the management fee cost, some other things Bob forget to consider when selecting the best fit Property Manager:

a.      A la carte pricing of services (don’t assume services are covered under the management fee)
b.      Unnecessary use of pricey specialized contractors
c.      Not having enough well-established contractor relationships to help control costs
d.      Delays in getting a property rent-ready and re-rented (increased vacancy cost)
e.      Delays in filing FTP and processing evictions (including missing steps in the process)
f.       Delays in processing payments to the owner (where's my distribution?)
g.      Not appropriately charging-back tenants for damages and wasteful service calls (especially when the calls are placed as “emergencies”)
h.      Poorly screening prospective tenants (can cause damages and evictions)
i.       Insufficient monitoring and lack of inspections leads to deferred maintenance (looks good on paper… at first, but there is a substantial cost to you as an investor later)
j.       Insufficient or absent tenant retention policies (turnover is your biggest cost)

So, flash forward 6 months into Bob working with his new PM Company and he is beginning to stress out. He starts wondering, "Where is my distribution?" “Why haven’t I been updated on what’s going?” “Do I even have leases for all my units, and can I see how the tenants are paying?” What’s even more frightening is that he noticed the occupancy is tanking and his lender is already calling and emailing often for answers.

Ok, Bob thinks to himself, “Let me contact my PM team and schedule a conference, as something isn’t right.” There has to be a reasonable explanation as I’m located in Texas and they promised me they dealt with other clients like me who aren’t local. They even said they had tons of previous experience working with multi-family units.

Bob flies in to meet with the PM Team. They explain to you they have been working hard to get the community stabilized, but things have been chaotic. Slowly but surely, Bob realizes the confidence the team once had is gone and they admit to Bob they are overwhelmed and underestimated what the job would entail.

So, let’s rewind. The reason Bob chose this company is because they offered him a 6.5% management fee which was less than the average of 8-10% in the market. Bob had to admit to himself the more he thought on what went wrong, he did get a little glance into the future when he noticed the Property Management team only consisted of a husband and wife. The Wife was the Property Manager and Husband was the Maintenance tech. Initially they took a bit longer to respond to his emails as well as they were late to the initial phone conference and completely missed an appointment. The reason why Bob still decided to hire them was the low rate and that they showed how much they charged other clients for work orders. Bob even had the opportunity to speak to a current client for a reference.

Bob was sold, but now today, he is drowning in debt and has no idea how to end this headache.  

Here is the point:

By this small Mom and Pop Operation, doubling in size, they were so excited for the opportunity to earn more revenue. But with no additional resources to assist with the day today operations as they scaled up their business, their management quality suffered. Tenants requests weren’t handled in a timely manner, clients aren’t called back right away, etc. Tenants aren’t paying their rent and being filed on consistently. Complaints begin to increase, which increases the stress level on the owners of this company.

Every experienced property manager knows it takes a certain number of people to effectively manage a certain number of properties.  If there are not enough people, then the quality of management suffers.

So with this example, let’s say they collect an average of $1000/mo rents for 100 units, and they are charging an 6.5% management fee.

$1000/mo x 100 units = $100,000/mo rents collected x 6.5% = $6500/mo mgmt fee

Now Bob does recall them mentioning they are hiring a part time Admin to assist with the day to day operations.

Great!  Problem solved… well sort of. Although a new part time staff member has been hired, it is still not be enough to handle the workload.

Remember… the workload at least doubled, but the staff increased by only 50%.  That means the owners still have a bigger workload than they did before, which have caused management quality to suffer.

Ok, you are still not convinced. A company can still charge a higher rate and not be efficient. But let’s just say before this experience, you did more research and interviewing. The number one thing, especially for multi-family investors, you want to ask the management company is what systems it has in place.

What’s the difference?  All businesses need to deal with multiple areas of expertise to succeed, and property management companies are no different. They need to have processes in place for…

Marketing – advertising apartments for rent, advertising for new investor clients

Sales – showing and leasing apartments to new tenant, meeting with investor clients and signing them up for service

Operations – dealing with tenant requests, evictions, maintenance and repairs

Accounting – accounts receivable (money owed from tenants and investor clients), accounts payable (money owed to run the company)

Information Systems – all the technology required to run the business, including phones, voicemail, cell service, website, etc.

All of this takes experience, resources and education to learn and build for any company just starting out. However, where many property management companies fail is when it comes to making these systems repeatable.

Many new investors make the mistake of focusing on the property management fee while losing sight of more costly aspects of the management of their properties.  And many property managers know this and reduce this part of the cost as a sales gimmick. But now you know too much to fall for this.  
Always look under the hood.  😊  
Good Luck!” 

Researching Property Management Companies?

PropertyWize is the best in the industry!

We are committed to making you a successful investor. Our team wants to see you get a better return on your rental property. We know how to increase your profits all while decreasing your stress and frustrations. Our proven systems, and use of cutting-edge technology, sets us apart. Being a landlord is hard work. Put our experienced team of 10 individuals to work for you.

Don’t Delay Let PropertyWize End Your Headache Today!

End Your Headache Today!