Property Management

When you own a property that happens to be part of a Homeowner’s Association or an HOA, there are a few extra things you often have to do as a landlord or a property manager. Not only do you need to make sure your tenant pays attention to your own rules and regulations, you also have to make sure your tenant understands the requirements of the HOA.

Lease Information

Your lease agreement needs to address and include everything that’s required and prohibited by the HOA. In most cases, tenants violate rules simply because they don’t know them. When you are able to provide all the rules and regulations of the HOA, the tenant will know what is expected. Be clear about what the violations might include and make sure your lease states how any violations will be handled.

Communication

Communicating with both the HOA and the tenants is critical. You’ll want to hear both sides whenever there’s a dispute, and find out if a mistake has been made or if your tenant really is in violation of something. Don’t jump to any conclusions and make sure you maintain a positive, respectful attitude when you’re dealing with all parties.

Stay Involved

It will help if you aren’t a stranger to your HOA. Make sure you know who is on the board, and even though you aren’t living at the property yourself, you still want to keep yourself in the loop. Follow any updates and communications put out by the HOA and make it a habit to read the board meeting minutes. If you don’t have time to stay on top of these things, work with a property manager who can handle the relationship on your behalf.

The relationship between you, your tenant and your HOA does not have to be combative. Make sure everyone understands what is expected, and you won’t have many problems.

If you have any questions about HOA violations, contact us at Your Dream Real Estate.

A successful landlord wants tenants who pay rent on time, take care of the property and stay for a long time. When you’re able to retain great tenants, you have lower turnover and vacancy costs, and your investment is able to grow in value. If you’re wondering how to renew a lease with your tenant, there are a few specific steps you need to follow.

Raising the Rent

Before you discuss lease renewal with your tenant, do a little research and decide whether or not you should raise the rent. If the rents in your market are climbing, you’re probably entitled to raise it a little bit. Just be careful, and keep the amount reasonable. If you have a great tenant who pays on time and causes little trouble, you don’t want to go chasing that tenant out of your property with an unrealistic rent increase. Don’t give good tenants a reason to leave your property.

Proposing Renewal

At least 30 days before the end of the lease, you’ll need to contact the tenants and find out if there is any interest in renewing. If you want your tenant to stay, make sure you say that. Showing tenants that you appreciate them is important. It’s also a good idea to offer an incentive, especially if a tenant seems undecided. Perhaps you can offer carpet cleaning or fresh paint or even a gift card to their favorite restaurant or store.

Inspect and Document

Once you and your tenant decide to renew the lease, conduct a thorough inspection of the property. This will help you and the tenant to determine what needs to be done and it also gives you the opportunity to make sure there isn’t any maintenance that needs to be done. Put any repair requests in writing, and make sure your lease is also renewed in writing.

Renewing a lease should be fairly straightforward, especially if you’re pleased with your tenants and your tenants are happy living in your property. If you have any questions about the process or what you need to do, please contact us at Your Dream Real Estate, and we’d be happy to provide more information.

As a landlord, it’s important that you’re familiar with the fair housing laws. They are meant to protect people from discrimination when it comes to housing.

Protected Classes

There are seven protected classes of people, and none of your marketing materials, screening techniques or criteria for accepting or declining tenants can violate their rights. Those protected classes are;

• Race
• Color
• National Origin
• Religion
• Sex
• Disability
• Familial Status

Disabilities are wide-ranging and they can be mental as well as physical. It might include someone who alcoholism or PTSD. Some tenants and applicants will require service animals, and you need to know how those differ from pets.

Tenant Qualification Criteria

Many landlords make mistakes with fair housing laws unintentionally. You can protect yourself from these potential errors by establishing a tenant qualification criteria and then applying it consistently to all applicants. You also need a written privacy policy that explains what you do with an applicant’s personal information. Remember to treat every applicant the same way – don’t make exceptions for one person and not another. That’s how you can get in trouble.

Accepting Applications

Document the date and time that you receive each application. That way, if you have several tenants who are qualified, you can offer the home to the first person who applied. When you deny an applicant, send an adverse action letter so they understand why they were denied. Finally, never share an applicant’s personal information with other people. You need to protect their credit report and other materials.

Fair housing is an important part of owning and managing rental property. In addition to treating everyone fairly, you need to keep all tenant areas clean and in safe condition so people with disabilities don’t have trouble. If you have any questions about this topic, please contact us at Your Dream Real Estate.

Disputes over security deposits are the most common types of disagreements that landlords and tenants have. There are a few things you can do to avoid any such tension when a tenant moves out and you determine how much of the security deposit to return.

Inspections

Conducting a move in and a move out inspection is critical. This will allow you to compare the condition of the property before a tenant moved in to the condition of the property after a tenant lived there. Make sure you have pictures, videos and other documentation so you can support your claims of tenant damage. You cannot charge for wear and tear, and you need to make sure that you are withholding a reasonable amount from the security deposit. For example, you cannot charge the tenants $25 for a scuff mark on the wall.

Move Out Procedures

At the time your tenant signs the lease, provide a written list of things that need to be done. You can remind the tenant about these written procedures again when you receive their notice to vacate. When a tenant is informed, there can be no disputes over what you have clearly stated is required in order to receive their full security deposit.

Timelines

It’s very important to have your tenant’s forwarding address so you can send the security deposit to the right place. You have 30 days from the move out date to return the security deposit and a letter that itemizes all the charges that were made. If the tenant wants to dispute something, invite them to do so in writing and ask for proof that you are incorrect about the charges. The check you send must be made out to all the tenants who are listed on the lease. You don’t need to include occupants who are not on the lease.

You don’t want to find yourself in court over a security deposit dispute or because you didn’t get the money back to the tenant within 30 days. Be thorough with your inspections and documentation, and keep the lines of communication open with your tenant.

If you have any questions about how to handle security deposits, please contact us at Your Dream Real Estate, and we’d be happy to help you.

The best way to ensure you get a high quality, long term tenant quickly is by charging a competitive rent. Setting the right price for your home is very important because you want to start collecting rental income as soon as possible. Vacancies are expensive.

Market Research

Understanding the local rental market is really going to help you set the right price for your property. You want to do a little research and find comparable rental prices in your local area. Make sure you’re comparing properties that are similar to yours; they must be in the same location, the same size and in generally the same condition.

Competitive Advantage

Once you know what others properties are renting for, you need to figure out why potential tenants will want to live in your house instead of other homes. Think about what makes your house special, whether it’s recent upgrades or great amenities or top notch school districts. Use these factors when you market your property so you get a lot of interest.

Avoiding Vacancy

It’s a good idea to consider lowering the rent just a little bit to help you minimize the vacancy, especially if you’re in a tough market or there are a lot of similar properties available. Waiting for a tenant who is willing to pay the higher rent will only cost you money. For example, if houses similar to yours are listed for $1,250 per month but they’re all vacant, you should price yours at $1,200 per month. It may seem like you’re losing $50 a month but you’re actually gaining. Losing the $600 over the course of the year (12 x $50 =$600) is much better than losing $1,250 because your home sat vacant for an extra month while you tried to rent it out.

Many landlords have an idea of what they want to earn on their property, and that idea usually depends on the amount of mortgage, expenses and additional cash flow. However, it’s really the market that determines the rent – not your own wishes. Get to know your local market and if you’re not sure what other houses are renting for, contact us at Your Dream Real Estate. We’d be happy to help you.

Evictions have a reputation for being complicated and expensive. While no landlord wants to go through the eviction process with a tenant, it’s important to take steps early if you realize that you’ve got a bad tenant who needs to be moved out of the property.

Reasons to Evict

There are two major reasons for why you might need to evict a tenant. If you are not getting the rent on a regular basis, eviction is necessary to protect your income and your investment. The other reason to evict is because the tenants are violating the lease in some way. Perhaps you’ve noticed unauthorized occupants or there are noise complaints and police activity at the house on a regular basis.

Filing an Eviction

Every eviction starts with a 3 Day Notice. If your tenants have not paid rent, you serve a 3 Day Notice that demands they pay the rent or leave the property. It’s important to send this notice properly. You can deliver it in person to the tenant or any occupant who is 16 years of age or older. You can also mail a copy of the notice, and if you do this, make sure you request a return receipt. You can also post the notice on the inside of the front door, but if you do that, we recommend that you send a copy by mail as well. At this point, you can negotiate with the tenant or follow through with the eviction.

Appearing in Court

If you decide to pursue the eviction because the tenant has not met their obligations, you’ll need to file with the court and wait for a court date. When you go to court, bring your lease agreement, your rent roll which shows how much the tenant owes you and any documentation or communication that reflects your attempts to resolve this issue with the tenants.

Writ of Possession

After the court rules in your favor, you’ll need to file in order to get possession of the property back. Schedule a date with the sheriff to deliver the Writ of Possession and help you get your tenants out of the property. When this happens, take pictures and videos so you can document the condition of the property after the eviction. If the tenant leaves belongings behind, you’ll need someone who can help you remove them. Then, you can change the lock and start getting it ready for the next tenant.

Evictions can be emotional and feel very personal. However, the best thing you can do for yourself and your investment is to learn from the experience and move forward. If you have any questions about how to avoid evictions, please contact us at Your Dream Real Estate.

Today we’re providing an investor’s guide to the rental market in Houston for 2015. In general, the market is strong and it’s a great time to buy rental property in this area.

Inventory

The inventory in Houston is pretty low right now, so it’s important to be creative when you’re looking for potential investment properties. You don’t want to rely only on the MLS. The drop in oil prices will lead to additional opportunities for investors in the Houston area, and you’ll be able to find real estate bargains in the market.

Return on Investment

Before you buy, make sure you understand the potential for cash flow and profit. Most people think the three most important things in real estate are: location, location, location. However, with rental properties, the three most important things are: cash flow, cash flow and profit. Do your math, analyze your numbers and get a good idea of what you can expect to earn in rental income and what your long term returns will be.

Great Property = Great Tenants

Tenants want high quality homes in good locations, so make sure you pay some attention to where you’re buying. You only want to buy properties in neighborhoods that have a high percentage of owner-occupied homes. These are desirable areas to good tenants. It’s also important to choose a property that’s in great condition and clean. The best tenants in the Houston area will be willing to fight for appealing homes in attractive areas.

Finally, don’t over-leverage your investments. If you do that, your entire portfolio will be at risk the next time the real estate market takes a dip. Leverage is an important part of investing, but it’s sometimes overused. Make sure you’re using it wisely when you invest in rental properties.

If you’re interested in exploring the Houston rental market, please contact us at Your Dream Real Estate, and we’d be happy to help you with our robust and hassle-free property management services.

Today we’re sharing six ways that using a professional property manager in Houston can save you both time and money.

Finding Tenants Fast

Professional property management will ensure you get your property rented out quickly. Property managers have access to a number of online resources, including the Multiple Listing Service (MLS). We also use sites such as Zillow.com, Trulia.com, Homes.com, Postlets.com, GreenSheets.com and a number of other websites. We also utilize local advertising resources such as newspaper and magazine listings. The goal is to get the maximum exposure for your property. Professional photos and videos as well as detailed descriptions also ensure that the marketing is successful. We help tenants imagine living in your home.

Tenant Management

Your property manager can also help you avoid bad tenants and if necessary, get rid of those bad tenants. Property management companies like ours have excellent screening procedures, so we are willing to guarantee the tenants we place. If an eviction ever becomes necessary, that guarantee ensures we evict bad tenants and replace them with good tenants at no cost to you. If you need help getting rid of a bad tenant, we know how to do that legally and efficiently.

Regular Inspections

In an effort to minimize damages, property managers will conduct inspections of the property. This helps you identify and rectify problems early, before they become too expensive. It also allows us to note lease violations such as overgrown weeds, which might involve a citation and a fee from the city.

More Free Time

It’s hard to put an exact value on your time. When you have a property manager taking care of your rental home, you don’t have to worry about driving by to make sure everything’s okay. You’ll receive statements, videos and reports every time a tenant moves out. Our videos are so detailed that you can see the inside of your oven when we’re conducting move out inspections. Instead of dealing with the details involved in day to day management, you can spend time on your family, your own career or on finding other investment properties.

Legal Problems

A professional property manager in Houston will keep you out of legal trouble. Lawsuits can be very expensive and if you’re able to avoid just one lawsuit or one eviction, the entire cost of property management is worth it to you and your investment portfolio.

Access to Tools and Resources

Your property management team can utilize online software so tenants can pay rent online with a checking account, debit card or check card. It’s fast, easy and efficient, and there are no excuses for rent not arriving on time.

If you’d like to hear more about how professional property managers can help you save time and money, please contact us at Your Dream Real Estate, and we’d be happy to talk with you.

Today, we are talking about five specific things you can do to increase the cash flow in your rental property. It’s important to educate yourself about the market so your investment property can bring you the maximum amount of rental income.

Flat Rate Fees

There are a number of professional property management companies to work with, but finding one that offers a flat rate management fee can save you a lot of money. Modern and innovative companies are embracing this type of fee structure and it’s better for you than the old method of paying a management company a percentage of your rent.

Efficient Software

You also need to make sure your property management company offers excellent software. This has an impact on your cash flow by providing tenants with a fast and efficient way to pay rent on time every month. Tenants should be able to pay 24 hours a day with a credit card or a bank account. When you know how to fully utilize technology, your rental properties will be more efficient and you’ll bring in more rent. It will also help tenants avoid late fees, so everyone benefits.

Vendor Relationships

Developing relationships with vendors and maintenance contractors will also help you earn more rental income. Property managers already have these relationships in place and they receive discounts on the services provided by vendors. This saves a lot of money on routine and emergency maintenance and repair issues. Good vendors will also help you make timely repairs so small issues do not become big, expensive problems.

Tax Help

While most investors are required to pay taxes on their rental income, you can offset that by deducting the expenses associated with your rental property, including the management fee. Talk to a tax expert who can help you save money on your rental income.

Low Vacancy

Vacancy is one of the most expensive problems that property owners face. Make sure your home is getting rented quickly to a high quality tenant.

If you have any questions about how to increase your rental income, please contact us at Your Dream Real Estate, and we’d be happy to help you.