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Property Management advice
What Do Property Managers Do?
The main reason someone hires a property manager or management company is to protect their real estate investment and passive income. Investors hire property managers to manage their rental properties for a variety of reasons, from wanting a local professional to handle a property to a desire to take a more hands off approach with their properties.
But what does a property management company or manager do when tending to the properties they oversee? Let’s go over a few common responsibilities typically held by property managers. (I have covered this topic on other pages but I will provide it again as a quick summary.)
But what does a property management company or manager do when tending to the properties they oversee? Let’s go over a few common responsibilities typically held by property managers. (I have covered this topic on other pages but I will provide it again as a quick summary.)
1. Follows Landlord-Tenant Laws And Regulations
As an investor, especially if you own multiple properties in several different states or areas, it can be difficult to keep track of all the different landlord-tenant laws and regulations. A property manager can help avoid potential legal headaches by taking care of these regulations. Since we are typically experts in the specifics like rent control limits, fire ordinances, local fair ousing requirements, or even crime prevention in areas that we work, we are often better equipped to deal with local laws and regulations.
As an example, in some states there are specific requirements on how much a tenant can be charged as a security deposit. I have to know the area might be better equipped to make sure tenants are charged the correct amount rather than the property owner accidentally asking for a deposit beyond the legal limit and creating a potential legal issue because they weren’t aware of the local laws.
2. Acts As A Local Presence For Out-Of-Town Owners
As the expert on-site, property managers also act as a local presence for out-of-town owners. If a property owner has lived in Hawaii their entire life, they may not be equipped to deal with the intricacies of managing property somewhere they’re unfamiliar with, like California in my case. A property manager takes care of the details locally – along with other things that come up, like maintenance and other operational issues that would be difficult to handle remotely.
3. Handles Maintenance Requests
A property manager or property management company also handles maintenance requests and other in-person upkeep. A landlord that is slow to respond to maintenance issues can quickly cause tenant frustration – which is why it’s useful to have a manager onsite to address tenant concerns right away.
Maintenance requests could be anything from broken appliances to unwanted pests or wildlife in a tenant’s home, so having someone on-site to take care of these issues as they arise is vital. A lack of landlord support with issues in rental properties can cause tenants to take their business elsewhere when their lease is up, so it’s important to have a strong local presence to take care of tenant needs.
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4. Shows And Leases Vacant Units
Working with a property manager can also help owners eliminate the potential financial loss of having an empty unit sitting around for an extended period of time. Rather than trying to market a property remotely to potential tenants, its usually better to rely on a property manager to attract new tenants and renew existing leases.
Tenants aree often uneasy about or unwilling to move into a property without seeing it first - and showing off properties may not be an option if the owner lives out of state. Working with a property manager allows owners to have someone present on the property to fix problems and show off the full potential of spaces to potential tenants.
5. Collects And Deposits Rent
Property managers also collect and deposit rent as a part of their duties for the properties they oversee. Some property managers and property management companies will collect rent using online sites or payment apps to help get money to the property owner quicker but its often essential to have someone there in person. We often also handle delinquent payments, collections and evictions. The tasks that might be difficult for investors to handle from afar are dealt with efficiently to save owners money and time.
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Understanding a Lease
- Leases are legal and binding contracts that set forth the terms of rental agreements in real estate and real and personal property.
- Certain things are guaranteed (the property is guaranteed for the tenant's use, and the landlord is guaranteed specific payments for the use of the property).
- These contracts stipulate the duties of each party to effect and maintain the agreement and are enforceable by each. For example, a residential property lease includes:
- The property address
- Landlord and tenant responsibilities
- The rent amount
- A required security deposit
- Rent due date
- Consequences for breach of contract
- The duration of the lease:
- Pet policies
- Other essential information
If you're considering signing a lease agreement to rent a property, such as a residential apartment or a commercial property, you should be aware of your legal rights and responsibilities. Signing any kind of a lease is a contract, so you will have to abide by it.
Not all leases are designed the same, but all of them have some common features. These include the rent amount, the due date of rent, the expiration date of the lease. The landlord requires the tenant to sign the lease, thereby agreeing to its terms before occupying the property.
Most residential leases are standard with the same terms for all tenants. Leases for commercial properties, on the other hand, are usually negotiated in accordance with the specific lessee and typically run from one to 10 years, with larger tenants often having longer, complex lease agreements.
The landlord and tenant should retain a copy of the lease for their records. This is especially helpful if and when any disputes arise.Lease terms can vary quite a bit. You might get a month-to-month lease or a fixed-term lease. There are typically guidelines set forth for how and when a tenant can back out of a lease, and breaking the lease early can have negative consequences. Lease agreements may stipulate that a tenant must stay in the residence for 12 months, or they may permit you to leave early if you give 30 days' notice. It's important to consider how flexible you need to be before you sign on the dotted line.
Not all leases are designed the same, but all of them have some common features. These include the rent amount, the due date of rent, the expiration date of the lease. The landlord requires the tenant to sign the lease, thereby agreeing to its terms before occupying the property.
Most residential leases are standard with the same terms for all tenants. Leases for commercial properties, on the other hand, are usually negotiated in accordance with the specific lessee and typically run from one to 10 years, with larger tenants often having longer, complex lease agreements.
The landlord and tenant should retain a copy of the lease for their records. This is especially helpful if and when any disputes arise.Lease terms can vary quite a bit. You might get a month-to-month lease or a fixed-term lease. There are typically guidelines set forth for how and when a tenant can back out of a lease, and breaking the lease early can have negative consequences. Lease agreements may stipulate that a tenant must stay in the residence for 12 months, or they may permit you to leave early if you give 30 days' notice. It's important to consider how flexible you need to be before you sign on the dotted line.
Be Aware of the Security Deposit: Knowing how much you owe for the security deposit is important to know before you sign the lease. Sometimes, it can be as much as two month’s rent, which might be a lot to take on financially.
Additionally, knowing the amount of the security deposit and what it’s used for is crucial to know when you move out. “Make sure you understand the terms of [the security deposit], such as when it will be returned and what costs may be deducted from it,” Martin says. “You should also make sure that your landlord has provided a receipt for the deposit so that you have proof of payment in case there are any issues later on.” Check for Property Damage: Always know what kind of shape the property is in before you move into it. “Check the condition of the rental property before signing the lease. Take photos and videos of any existing damage or structural issues,” says Troy Shaffer, real estate expert and founder of Blu Corporate Housing .
If you’re moving into a place that has preexisting damage, make sure that’s noted in the lease so you don’t end up financially responsible for it when you move out. Look for Fees: The lease will often detail different fees you might owe as a tenant. These can be for things like paying rent late, having a pet, utilities and other costs. Each lease is different when it comes to these, so it’s important to make sure you look over the lease carefully for any fees associated with the property. Find Out the Maintenance Policy: For most rentals, landlords will cover the cost of maintenance. Make sure it says that in the lease, or delineates what tenants will cover and what landlords will cover in some way.
Additionally, knowing the amount of the security deposit and what it’s used for is crucial to know when you move out. “Make sure you understand the terms of [the security deposit], such as when it will be returned and what costs may be deducted from it,” Martin says. “You should also make sure that your landlord has provided a receipt for the deposit so that you have proof of payment in case there are any issues later on.” Check for Property Damage: Always know what kind of shape the property is in before you move into it. “Check the condition of the rental property before signing the lease. Take photos and videos of any existing damage or structural issues,” says Troy Shaffer, real estate expert and founder of Blu Corporate Housing .
If you’re moving into a place that has preexisting damage, make sure that’s noted in the lease so you don’t end up financially responsible for it when you move out. Look for Fees: The lease will often detail different fees you might owe as a tenant. These can be for things like paying rent late, having a pet, utilities and other costs. Each lease is different when it comes to these, so it’s important to make sure you look over the lease carefully for any fees associated with the property. Find Out the Maintenance Policy: For most rentals, landlords will cover the cost of maintenance. Make sure it says that in the lease, or delineates what tenants will cover and what landlords will cover in some way.
What Is a Lease?
Leases are generally legally-binding contracts between two parties: the lessor and the lessee. They involve a piece of property rented out by the owner (the lessor) to the lessee or the tenant. Leases can be verbal agreements but are normally drawn up in writing. Both parties agree to the terms of the lease, including the rental amount, length of time for the contract, as well as any consequences that may result if either party doesn't uphold the terms and conditions of the contract.
A lease is a contract outlining the terms under which one party agrees to rent an asset—in this case, property—owned by another party. It guarantees the lessee, also known as the tenant, use of the property and guarantees the lessor (the property owner or landlord) regular payments for a specified period in exchange. Both the lessee and the lessor face consequences if they fail to uphold the terms of the contract. A lease is a form of incorporeal right.How
What Benefits Do Leases Provide for Landlords and Tenants? Signing a lease provides both landlords and tenants with clear terms and conditions outlining the relationship and the rental agreement. Doing so also establishes the rights and responsibilities of each party involved. For instance, leases provide both parties with structure, in that they establish the cost associated with renting and the length of time under which the lease is exercisable. This provides both parties with stability. A lease also gives both parties a clear understanding of what happens when either party breaks or goes against any of the terms laid out within the lease contract.
You should read the entire lease before you sign.Of course, before signing any legal agreement like a lease, you should always read everything carefully. Ask the property manager or landlord about any questions you may have and clarify any issues.
A lease is a contract outlining the terms under which one party agrees to rent an asset—in this case, property—owned by another party. It guarantees the lessee, also known as the tenant, use of the property and guarantees the lessor (the property owner or landlord) regular payments for a specified period in exchange. Both the lessee and the lessor face consequences if they fail to uphold the terms of the contract. A lease is a form of incorporeal right.How
What Benefits Do Leases Provide for Landlords and Tenants? Signing a lease provides both landlords and tenants with clear terms and conditions outlining the relationship and the rental agreement. Doing so also establishes the rights and responsibilities of each party involved. For instance, leases provide both parties with structure, in that they establish the cost associated with renting and the length of time under which the lease is exercisable. This provides both parties with stability. A lease also gives both parties a clear understanding of what happens when either party breaks or goes against any of the terms laid out within the lease contract.
You should read the entire lease before you sign.Of course, before signing any legal agreement like a lease, you should always read everything carefully. Ask the property manager or landlord about any questions you may have and clarify any issues.
Read your Lease
Rental leases can feel very routine. You pay a deposit, you sign a lease , and you’re good to go, right?
Read the Entire Lease - Admit it: you probably didn’t read every last word of the last lease you signed. But, experts stress that reading every part of the lease is extremely important. It actually pays to read the lease a little closer before signing it. After all, most leases are a year or more of your life. You don’t want to be stuck with living conditions that make you miserable, or have something catch you by surprise. Here’s what housing experts advise tenants to look for before signing their next lease .A lease is a legal, binding contract outlining the terms under which one party agrees to rent property owned by another party.
It guarantees the tenant or lessee use of the property and guarantees the property owner or landlord regular payments for a specified period in exchange.
Residential leases tend to be the same for all tenants, but there are several different types of commercial leases.Consequences for breaking leases range from mild to damaging, depending on the circumstances under which they are broken. “When it comes to leases, many people unknowingly ignore a lot of fine print.” “Read all of the clauses carefully, These may include clauses such as restrictions on noise, occupancy limits, or subletting policies. Make sure you read thoroughly through these so that you are aware of the expectations and can adhere to them.”
Read the Entire Lease - Admit it: you probably didn’t read every last word of the last lease you signed. But, experts stress that reading every part of the lease is extremely important. It actually pays to read the lease a little closer before signing it. After all, most leases are a year or more of your life. You don’t want to be stuck with living conditions that make you miserable, or have something catch you by surprise. Here’s what housing experts advise tenants to look for before signing their next lease .A lease is a legal, binding contract outlining the terms under which one party agrees to rent property owned by another party.
It guarantees the tenant or lessee use of the property and guarantees the property owner or landlord regular payments for a specified period in exchange.
Residential leases tend to be the same for all tenants, but there are several different types of commercial leases.Consequences for breaking leases range from mild to damaging, depending on the circumstances under which they are broken. “When it comes to leases, many people unknowingly ignore a lot of fine print.” “Read all of the clauses carefully, These may include clauses such as restrictions on noise, occupancy limits, or subletting policies. Make sure you read thoroughly through these so that you are aware of the expectations and can adhere to them.”
Know Your Rights as a Tenant: Tenants’ rights vary from state to state. Before you sign a lease, get acquainted with your state’s rights for renters. This will help you know more about how much your rent can be raised legally, notice anything that might be illegal in a lease, and help you in the future if problems were to come up.
“[Understand] when and how much rent is due each month, what recourse you have if there are any issues with the property, or if there is a dispute between you and your landlord. Understanding these rights can help protect you in the future,”
Be Aware of the Termination Process: You probably won’t live at this rental forever, so you need to know what it takes to leave.
“Understand the termination terms. Do you have to provide a certain amount of time notice that you will be vacating or renewing? Most likely the answer is yes. Renters who fail to notify their landlord/agent that they plan on renewing their lease may be faced with a notice to vacate and forced to move,”
Understand What Happens if You Have To Break the Lease
You never intend to break your lease, but life happens, and sometimes you have to. Make sure the consequences of this are laid out in the lease.
“Depending on where you live, a number of things can happen if you break your lease, Paying 1-2 months of rent is a common penalty for breaking a lease, but this can range depending on your landlord and/or the lease terms you have agreed to.”
Can You Break a Lease?
Breaking a lease agreement is technically a breach of contract, which can bring unpleasant consequences including potential lawsuits, a derogatory mark on your credit report, and future difficulty in renting property.
It's possible your lease agreement will allow you to terminate your contract early without legal ramifications, but you may forfeit your deposit. Generally, it's best to communicate clearly with your landlord, notifying them as soon as possible if your situation changes (for example, due to a job loss or relocation).
Either party can break a lease. But doing so isn't advisable as there may be consequences involved. Tenants may be responsible to pay the landlord early release charges and/or the remaining balance to pay off the lease. In some cases, breaking a lease may even hurt a tenant's credit score. Landlords may have to provide tenants with alternate living spaces while others may face civil or legal challenges if they break their leases without cause. Regardless of whether you're a tenant or landlord, it's always a good idea to talk to the other party involved to avoid any negative consequences and end the lease amicably. Certain protected groups, such as active military members or victims of domestic violence, may break their leases without any consequences as long as they are able to provide some proof.
It's possible your lease agreement will allow you to terminate your contract early without legal ramifications, but you may forfeit your deposit. Generally, it's best to communicate clearly with your landlord, notifying them as soon as possible if your situation changes (for example, due to a job loss or relocation).
Either party can break a lease. But doing so isn't advisable as there may be consequences involved. Tenants may be responsible to pay the landlord early release charges and/or the remaining balance to pay off the lease. In some cases, breaking a lease may even hurt a tenant's credit score. Landlords may have to provide tenants with alternate living spaces while others may face civil or legal challenges if they break their leases without cause. Regardless of whether you're a tenant or landlord, it's always a good idea to talk to the other party involved to avoid any negative consequences and end the lease amicably. Certain protected groups, such as active military members or victims of domestic violence, may break their leases without any consequences as long as they are able to provide some proof.
Special Considerations In a Lease Break
Consequences for breaking leases range from mild to damaging, depending on the circumstances under which they are broken. A tenant who breaks a lease without prior negotiation with the landlord faces a civil lawsuit, a derogatory mark on their credit report, or both. As a result of breaking a lease, a tenant may encounter problems renting a new residence, as well as other issues associated with having negative entries on a credit report.
Tenants who need to break their leases must often negotiate with their landlords or seek legal counsel. In some cases, giving a certain amount of notice or forfeiting the security deposit allows tenants to break their leases with no further consequences.
Some leases have early termination clauses that allow tenants to terminate the contracts under a specific set of conditions (job-related relocation, divorce-induced hardship) or when their landlords do not fulfill their contractual obligations. For example, a tenant may be able to terminate a lease if the landlord does not make timely repairs to the property.
The terms of a lease cannot violate state or federal law. So a clause that allows a landlord to enter the premises at any time without notice or one that, via court action, grants a landlord to recover more than statutory limits allow is not enforceable.
Tenants who need to break their leases must often negotiate with their landlords or seek legal counsel. In some cases, giving a certain amount of notice or forfeiting the security deposit allows tenants to break their leases with no further consequences.
Some leases have early termination clauses that allow tenants to terminate the contracts under a specific set of conditions (job-related relocation, divorce-induced hardship) or when their landlords do not fulfill their contractual obligations. For example, a tenant may be able to terminate a lease if the landlord does not make timely repairs to the property.
The terms of a lease cannot violate state or federal law. So a clause that allows a landlord to enter the premises at any time without notice or one that, via court action, grants a landlord to recover more than statutory limits allow is not enforceable.