Situation
I believe that there are some maintenance issues at my house and I want to check them out. How do I convince my tenant to let me in?
Response
How would you like to be notified about an inspection? That would be the best way to handle your tenant.
Contact the tenant and let them know the reason for the inspection. Be specific. Let them know you are worried about their safety and comfort.
Schedule a time that will work for both of you. Work with the tenant's schedule and their feelings about being there when you do the inspection.
Be careful about scheduling a time when a minor is in the home without an adult. It is never a good idea to enter a home under those circumstances.
Wednesday, March 9, 2011
Friday, March 4, 2011
Should I allow a dish to be installed?
Situation
My tenant wants to install a dish on the house for Direct TV. I think it looks ugly and I fear that it may cuase damage.
Response
Your concerns are legitimate. The dish is ugly and could cause damage.
But there are ways to guard against these problems if you want to keep the tenant.
Most of the time dish placement is not limited to one location. Check with the installer to see if the dish can be hidden on the back side of the roof for example, where it cannot be seen from the street.
Most professional installers are good at protecting the house. Make sure that only a professional installs the dish and do not let the tenant do it or his friend.
You could also ask the tenant to increase the security deposit and to remove the dish when they move.
The question is do you want to keep the tenant or go through another vacancy. A vacancy will cost you more than the repairs for moving the dish.
You should also check with your HOA if you have one to make sure dishes are allowed.
My tenant wants to install a dish on the house for Direct TV. I think it looks ugly and I fear that it may cuase damage.
Response
Your concerns are legitimate. The dish is ugly and could cause damage.
But there are ways to guard against these problems if you want to keep the tenant.
Most of the time dish placement is not limited to one location. Check with the installer to see if the dish can be hidden on the back side of the roof for example, where it cannot be seen from the street.
Most professional installers are good at protecting the house. Make sure that only a professional installs the dish and do not let the tenant do it or his friend.
You could also ask the tenant to increase the security deposit and to remove the dish when they move.
The question is do you want to keep the tenant or go through another vacancy. A vacancy will cost you more than the repairs for moving the dish.
You should also check with your HOA if you have one to make sure dishes are allowed.
Wednesday, March 2, 2011
Can I raise the rent in the down economy?
Situation
The cost of your rental unit continues to increase due to increases in taxes, maintenance, insurance and just about everything connected to your property. But with this down economy, can you really raise rents?
Response
There are many factors to consider when you want to increase rents. While your costs may be rising, your tenant or potential future tenants are also experiencing cost of living increases and that factor must be considered.
The biggest factor is what is happening in your market. If your current tenant decided to move to a similar unit in a similar neighborhood, what would he have to pay for rent? You can figure this out by going to some of the internet rental sites that specilize in your type of property and compare.
If your tenant can rent the same home in a similar neighborhood for a lot less than what you are charging, then your tenant will probably move. If comparable property rents for a little less, the tenant may or may not stay. If the rents are higher, he will stay.
The trick is to balance the rent you are charging with the rents in the area. If you want to be sure that your tenant stays, keep the rent a little below that of other units on the market. If you are willing to take a little risk, keep your rents at the same rate as other homes in the area. If you don't care if you lose the tenant, raise the rents above the market.
Keep in mind that having a vacancy is expensive. It takes about 2 months to rent a unit after it is ready to rent. It costs a fair amount of money to fix up a unit after a tenant leaves. If the tenant has been there for several years, it could cost thousands to paint, install carpet and blinds and replace all of the other things that have worn out over the years.
If you decide not to raise the rents, I would suggest that you advise the tenant that you feel they are great tenants and that you invite them to sign a new 1 year lease at the same rate because they are such good people.
Another thing to consider is whether you community has any rent control limitations on raising the rent.
The cost of your rental unit continues to increase due to increases in taxes, maintenance, insurance and just about everything connected to your property. But with this down economy, can you really raise rents?
Response
There are many factors to consider when you want to increase rents. While your costs may be rising, your tenant or potential future tenants are also experiencing cost of living increases and that factor must be considered.
The biggest factor is what is happening in your market. If your current tenant decided to move to a similar unit in a similar neighborhood, what would he have to pay for rent? You can figure this out by going to some of the internet rental sites that specilize in your type of property and compare.
If your tenant can rent the same home in a similar neighborhood for a lot less than what you are charging, then your tenant will probably move. If comparable property rents for a little less, the tenant may or may not stay. If the rents are higher, he will stay.
The trick is to balance the rent you are charging with the rents in the area. If you want to be sure that your tenant stays, keep the rent a little below that of other units on the market. If you are willing to take a little risk, keep your rents at the same rate as other homes in the area. If you don't care if you lose the tenant, raise the rents above the market.
Keep in mind that having a vacancy is expensive. It takes about 2 months to rent a unit after it is ready to rent. It costs a fair amount of money to fix up a unit after a tenant leaves. If the tenant has been there for several years, it could cost thousands to paint, install carpet and blinds and replace all of the other things that have worn out over the years.
If you decide not to raise the rents, I would suggest that you advise the tenant that you feel they are great tenants and that you invite them to sign a new 1 year lease at the same rate because they are such good people.
Another thing to consider is whether you community has any rent control limitations on raising the rent.
Tuesday, March 1, 2011
My tenants want me to spray for bugs.
Situation
The tenant has roaches and wants me to spray for bugs. I think they are terrible housekeepers and they probably brought in the bugs.
Response
There are requirements that the Landlord must meet in order to comply with the "warranty of habitability" You can go to this website,
http://www.dca.ca.gov/publications/landlordbook/problems.shtml
to read what the Department of Comsumer Affiars says about this warranty of habitability.
The portion of the warranty that covers bugs is this:
"A dwelling also may be considered uninhabitable (unlivable) if it substantially lacks any of the following: Clean and sanitary buildings, grounds, and appurtenances (for example, a garden or a detached garage), free from debris, filth, rubbish, garbage, rodents, and vermin."
This warranty also states:
Keep in mind that roaches can come from many sources including old shopping bags, old boxes, old clothes and from bugs that cling to clothes. All of these items would have been brought in by a tenant and therefore not a Landlord responsibility.
It is also true that bugs have to have something to eat. If open food containers and food scraps are left on counters and in cupboards, this is encouraging bugs to stay and grow. Again, this is under the control of the tenant and therefore a tenant responsibility.
With this in mind, I would suggest that you work with the tenant at least once, to attack this problem from multiple directions. Require the tenant to make sure the house is clean. Have them clear out their cupboards and drawers and countertops. Supply the tenants with "roach bombs". Require the tenant to follow up the bombs with spraying once a week for a couple of weeks.
If they do all of these things and it doesn't work I suggest that you pay for a professional pest control visit with a promise from the tenant to cooperate and keep the unit extra clean from now on. See if that works.
The tenant has roaches and wants me to spray for bugs. I think they are terrible housekeepers and they probably brought in the bugs.
Response
There are requirements that the Landlord must meet in order to comply with the "warranty of habitability" You can go to this website,
http://www.dca.ca.gov/publications/landlordbook/problems.shtml
to read what the Department of Comsumer Affiars says about this warranty of habitability.
The portion of the warranty that covers bugs is this:
"A dwelling also may be considered uninhabitable (unlivable) if it substantially lacks any of the following: Clean and sanitary buildings, grounds, and appurtenances (for example, a garden or a detached garage), free from debris, filth, rubbish, garbage, rodents, and vermin."
This warranty also states:
- Keep the premises "as clean and sanitary as the condition of the premises permits."
- Dispose of trash and garbage in a clean and sanitary manner.
If you have provided a unit that is clean upon movein and with no bugs apparent you have probablaydone your duty. If, 6 months later, there are roaches, you may feel that this is a housekeeping responsibility of the tenant and therefore, the responsibility of the tenant to get rid of the bugs.
Keep in mind that roaches can come from many sources including old shopping bags, old boxes, old clothes and from bugs that cling to clothes. All of these items would have been brought in by a tenant and therefore not a Landlord responsibility.
It is also true that bugs have to have something to eat. If open food containers and food scraps are left on counters and in cupboards, this is encouraging bugs to stay and grow. Again, this is under the control of the tenant and therefore a tenant responsibility.
With this in mind, I would suggest that you work with the tenant at least once, to attack this problem from multiple directions. Require the tenant to make sure the house is clean. Have them clear out their cupboards and drawers and countertops. Supply the tenants with "roach bombs". Require the tenant to follow up the bombs with spraying once a week for a couple of weeks.
If they do all of these things and it doesn't work I suggest that you pay for a professional pest control visit with a promise from the tenant to cooperate and keep the unit extra clean from now on. See if that works.
A friend of a friend works as a handyman and wants to work on my rental. Is it a good deal?
Situation
A friend of a friend works as a handyman and wants to work on my rental. Is it a good deal?
Response
If all goes well and this friend does a great job for a cheap price, you win.
What happens if things don't go so well? What if things work out badly? What if they go horribly wrong?
How big of a risk are you willing to take?
Some terrible things that could happen are:
1. The repair is done poorly and needs to be redone.
2. The "repair" is defective and causes damage to your property. For instance, the leaking pipe stays repaired for 2 days. The tenant leaves for the weekend. The pipe leaks again and $10,000 in damage is done to the house and $2,000 to the tenants furniture.
3. The workman is rude to your tenant and threatens them. You lose a tenant.
4. The workman hires someone as a helper and the helper gets injured and sues you for damages.
5. You pay for parts up front and the guy takes off with your money
6. The workman steals from your tenant and the tenant sues you for damages
7. The workman damages something while making the repair and then charges you to fix that too.
8. The workman is injured on the job and is disabled for life. He sues you for damages.
9. The workman claims that you paid him "under the table" when you should have paid him and witheld taxes. Now the Federal Government is after you for not complying with tax law.
This is not an exhaustive list but represents some of the things that could happen. Are you prepared to deal with these? Are you covered by insurance if they do happen?
I have seen all of these things happen to people who use "cheap labor". How high is your risk tolerance?
A friend of a friend works as a handyman and wants to work on my rental. Is it a good deal?
Response
If all goes well and this friend does a great job for a cheap price, you win.
What happens if things don't go so well? What if things work out badly? What if they go horribly wrong?
How big of a risk are you willing to take?
Some terrible things that could happen are:
1. The repair is done poorly and needs to be redone.
2. The "repair" is defective and causes damage to your property. For instance, the leaking pipe stays repaired for 2 days. The tenant leaves for the weekend. The pipe leaks again and $10,000 in damage is done to the house and $2,000 to the tenants furniture.
3. The workman is rude to your tenant and threatens them. You lose a tenant.
4. The workman hires someone as a helper and the helper gets injured and sues you for damages.
5. You pay for parts up front and the guy takes off with your money
6. The workman steals from your tenant and the tenant sues you for damages
7. The workman damages something while making the repair and then charges you to fix that too.
8. The workman is injured on the job and is disabled for life. He sues you for damages.
9. The workman claims that you paid him "under the table" when you should have paid him and witheld taxes. Now the Federal Government is after you for not complying with tax law.
This is not an exhaustive list but represents some of the things that could happen. Are you prepared to deal with these? Are you covered by insurance if they do happen?
I have seen all of these things happen to people who use "cheap labor". How high is your risk tolerance?
Monday, February 28, 2011
What is an emergency that needs to be addressed right away?
Situation
How do I know if a repair needs to be done now or if it can wait?
Response
There are certain habitability issues that a Landlord is required to take care of right away. They include:
1. Water service
2. Electrical service
3. Toilets that function
4. Doors that are secure
5. Windows that are secure
6. Heater that functions when temperatures get cold (open for interpretation)
7. AC that functions when temperatures get hot (open for interpretation)
8. Roof that is water tight
The law generally states that if one of these things is not being supplied by the Landlord that they need to rememdy the problem within a "reasonable amount of time". Reasonable is the word that causes the problem. What might be reasonable for the Landlord is not reasonable for the tenant.
My general advice is that numbers 1-7 should be done within a couple of hours of notification by the tenant. If they can't be repaired in that time (need to get parts) then within 24 hours for sure.
It's important to keep the tenant on your side. I suggest that you communicate with tenant about what you are doing and why it might take longer than you would like. Most tenants are understanding.
If you can't make the repair right away, offer something to make them feel good. Ask them what they think would be fair. Most tenants will ask for something reasonable. Give it to them if it is reasonable. Maybe you can supply them with a portable heater or a fan. Maybe you need to put them up in a hotel room for a night.
If you work together with the tenant you will save money in the long run.
How do I know if a repair needs to be done now or if it can wait?
Response
There are certain habitability issues that a Landlord is required to take care of right away. They include:
1. Water service
2. Electrical service
3. Toilets that function
4. Doors that are secure
5. Windows that are secure
6. Heater that functions when temperatures get cold (open for interpretation)
7. AC that functions when temperatures get hot (open for interpretation)
8. Roof that is water tight
The law generally states that if one of these things is not being supplied by the Landlord that they need to rememdy the problem within a "reasonable amount of time". Reasonable is the word that causes the problem. What might be reasonable for the Landlord is not reasonable for the tenant.
My general advice is that numbers 1-7 should be done within a couple of hours of notification by the tenant. If they can't be repaired in that time (need to get parts) then within 24 hours for sure.
It's important to keep the tenant on your side. I suggest that you communicate with tenant about what you are doing and why it might take longer than you would like. Most tenants are understanding.
If you can't make the repair right away, offer something to make them feel good. Ask them what they think would be fair. Most tenants will ask for something reasonable. Give it to them if it is reasonable. Maybe you can supply them with a portable heater or a fan. Maybe you need to put them up in a hotel room for a night.
If you work together with the tenant you will save money in the long run.
How quickly do I have to act on an "emergency" plumbing issue?
Situation
It's Sunday at 10:00pm. The tenant calls up with a plumbing leak in the kitchen. Do I have to call a plumber and get it done right now?
Response
Why is it that these kind of calls always seem to come at the worst times?
The answer is "It depends".
It's important to contact the tenant for more information. How much water is leaking? Where is it coming from? Is it the water feed line or is it the sink drain? The more you know about the problem the better the decision you can make.
You want to protect your investment, maintain a good relationship with the tenant and protect the tenants belongings.
You might be able to talk the tenant through the process of turning off the water under the sink. You might be able to advise them to not use the sink for the evening. Adjust to the situation and see if you can temporarily fix the situation for the night.
If you can, make sure you follow up with a permanent repair in the morning.
It's Sunday at 10:00pm. The tenant calls up with a plumbing leak in the kitchen. Do I have to call a plumber and get it done right now?
Response
Why is it that these kind of calls always seem to come at the worst times?
The answer is "It depends".
It's important to contact the tenant for more information. How much water is leaking? Where is it coming from? Is it the water feed line or is it the sink drain? The more you know about the problem the better the decision you can make.
You want to protect your investment, maintain a good relationship with the tenant and protect the tenants belongings.
You might be able to talk the tenant through the process of turning off the water under the sink. You might be able to advise them to not use the sink for the evening. Adjust to the situation and see if you can temporarily fix the situation for the night.
If you can, make sure you follow up with a permanent repair in the morning.
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