The Five Hardest Parts Of Being A Landlord

Rental properties are great investments that generate monthly cash flow. They enable investors to build wealth, but they can require a lot of work.

Many investors make the mistake of thinking that they can be DIY landlords, or do everything themselves when it comes to managing their properties.

If you’re thinking about managing your rental properties yourself, this article will provide you with the five hardest parts of being a landlord.

#1 – Finding And Screening Quality Tenants

The first challenging part of being a landlord is finding and screening quality tenants.

Renting to quality tenants is important because this step is going to lead to you earning the most ROI from your rental property possible.

Once you start communicating with prospective tenants, the key to success with choosing the right tenant involves following these criteria:

  • They must have a good credit history and score
  • Their income must be solid. In most areas, a tenant is expected to earn 3X the monthly rent.
  • A prospective tenant should be able to pass your rental verification without anything coming up that could be cause for concern, such as a past eviction.

#2 – Managing Maintenance

After you find qualified tenants, the next difficult aspect of being a landlord is managing the maintenance of your rental property.

Staying on top of maintenance is important because, if you fall behind on maintenance or don’t keep your word to resolve maintenance problems, you may end up having an unhappy tenant. This tenant could potentially withhold rent until you resolve their maintenance issue.

As a landlord, you should have relationships with contractors in the area who you can call when you need maintenance or repairs at your rental property.

Besides having a vendor matrix, you should also have an infrastructure in place that will dispatch maintenance professionals immediately to resolve maintenance problems.

#3 – Staying Up To Date With State And Local Laws

Another hard part of self-managing rental properties is The laws are changing regularly for landlords. Today’s owners have to know what’s happening with issues like rent control, eviction moratoriums, and Fair Housing laws.

Keeping up with Federal, State, and local laws are important because failure to know the latest laws which affect landlords could easily result in you being sued by your tenants or fined by the local government.

#4 – Dealing With Non-Payment And Evictions

We’ve provided you with three challenging aspects of being a landlord but #4 is so far the most difficult.

When a tenant doesn’t pay rent on time, you have to know how to collect the rent and post the correct notices at the right times.

If a tenant continues to not pay their rent, you also have to be ready to take them through the eviction process. This can be another complicated process in itself, especially if you’re unfamiliar with evictions and have never gone through the eviction process with a tenant.

#5 – High Maintenance Tenants

Last, of all, a very hard part of being a landlord is dealing with high maintenance tenants.

High maintenance tenants are people who can require assistance at all hours of the day, night, weekends, or on holidays.

No landlord likes to deal with high maintenance tenants because they can take up all of a landlord’s time and energy.

Dealing with high maintenance tenants immediately is important because a problem tenant could lead to complaining neighbors, HOA rules violations, and other problems that may lead to the landlord having to evict the tenant.

What Is The Solution To The Problem?

Instead of having to deal with the hard parts of being a landlord, the solution is to hire a property management company.

With a professional property manager, you can have confidence that they will handle all aspects of your property including tenant selection, maintenance, rent collection, evictions, and staying up to date with local laws.

When you hire a property management company like GoldenWest Management, you can enjoy earning passive income from your rental properties while having peace of mind in knowing that your property is being managed by a professional.

Contact GoldenWest Management

At GoldenWest Management, we specialize in property management for San Diego, Arizona, and Nevada.

Having offices in three states gives us the ability to manage a wide variety of rental properties but we still treat every client like they are our only client.

To learn more about the property management services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.

When is it okay to charge copay?

By GoldenWest Management

Another common question that most owners and investors have asked us over the years is if it’s okay for them to charge their tenants a copay when it comes to repairs that need to be made at their rental properties.

The answer to this question is that it’s perfectly acceptable to charge your tenant a copay, as long as the repairs that need to be made are not related to health, safety or other habitability issues.

Minor repairs like replacing light bulbs should be the tenant’s responsibility and if the tenant does not want to make those repairs themselves, or they are unable to, they should be made to pay a portion of the cost.

What Repairs Should You Not Charge A Co-Pay For?

Depending on your area, the most common repairs that you should not charge a co-pay for include repairs related to heating, cooling, water heater, stove, oven, or the mainline to your rental property since these types of repairs are all typically expected to be made by the owner.

In California, landlords are expected to make repairs like those mentioned in this article because of the Implied Warranty of Habitability. If a landlord fails to make repairs to their rental that affect habitability, the tenant may be legally able to withhold rent until those repairs are made.

Even though some landlords may not like to make repairs, it’s important for every landlord to remember that all appliances have a “lifespan” and they will eventually wear out so those repairs will come unless a tenant damages those appliances maliciously.

Make Sure Your Lease Is Clear About Repairs

One of the best things that every landlord can do to protect themselves is to make sure that their lease is clear about what repairs the tenant is supposed to make and what repairs the landlord is supposed to make. Repairs made necessary by misuse, negligence, excessive wear and tear, or
destructive activities of Tenant, other occupants, guests, invitees, pets or others, whether authorized or unauthorized. Doing this will clear up any misconception about repairs and save time/money.

Get Property Management Here

For property management in San Diego, Phoenix or Las Vegas, contact GoldenWest Management today by calling us at (866) 545-5303 or click here to connect with us online.

 

 

 

GoldenWest Management
Investment Property Solutions
CA LIC# 071791904

Effective Tips for Dealing with Tenants Who Have Been Locked Out of Their Rentals

By GoldenWest Management

Ask any owner or landlord and they will tell you that besides chasing down tenants who don’t pay their rents on time one of their lease favorite jobs is to be on call for tenant emergencies, especially when those tenants become locked out of their rental properties.

Thankfully, you can eliminate the problem of dealing with locked out tenants by following these effective tips.

Tip #1 – Make Your Tenants Call and Pay for The Locksmith  

Although it’s perfectly acceptable to call a locksmith one time after your tenant has been locked out, you should have a clause in your lease which states that if your tenant is locked out again they will be faced with having to call and pay for a locksmith themselves.

Tip #2 – Install Deadbolts and Or Door Knobs That Won’t Lock on Their Own

One of the easiest ways to eliminate the problem of your tenants locking themselves out of their rentals is to install door knobs that won’t lock on their own, or deadbolts, that way tenants will not be able to unknowingly lock the doors to their rentals without actually having their keys in their hands.

Tip #3 – Charge Tenants for Going Out to The Rental

Let’s say that instead of calling a locksmith you’re willing to go out to your rental property yourself to let your tenants back in, in this case you should inform your tenant that it’s not going to be cheap for you to come out and they will have to pay you $25 to $50 each time you have to come and let them back into their rental property.

Tip #4 – Purchase A Realtors® Lockbox

Another handy way to handle situations where your tenant is locked out of their rental property is to purchase a Realtor’s® lockbox and place it in a secure location outside of your rental property that way if your tenant locks themselves out of the rental they can call you for the code to the lockbox and have a way back into the rental property.

Tip #5 – Get Property Management

By far the most effective solution for dealing with tenants is to hire a property management company because this takes the task of managing your rental property out of your hands and will make owning rentals easier for you.

To learn more about the property management services we can offer you contact GoldenWest Management today by calling us at 866-545-5303 or click here to connect with us online.

 

images

 

 

Investment Property Solutions
AZ LIC# CO583886000
CA LIC# 071791904
NV LIC# B1000408

How to Get Your Security Deposit Back on a Rental

One of the biggest disappointments a tenant will face in a rental property transaction with a property manager or landlord is when he or she opens up that check for their returned security deposit.  We’ve seen and heard about many times where tenants were not happy with the return.  This is unfortunate because, as we’ve stated in previous articles about security deposits, losing a security deposit is completely preventable.  Disappointment over security deposits is typically a result of the following: Continue reading “How to Get Your Security Deposit Back on a Rental”

Why You Hate Your Property Manager (and Why You Might Be Wrong to Do So)

Property management is a challenging business where the property manager serves two different sets of customers with conflicting needs.  As a marketer for a multi-state property manager, I have witnessed the razor-sharp line that a property manager has to  walk in his place between the tenant and the landlord.  At times, it can sometimes seem impossible to stay the course of this line, and I’ll share my insight into why that is.

The business of property management is one where the landlord compensates the property manager to relieve them of the burden of owning investment property (a.k.a, managing tenants).  The late night phone calls with repair requests, the destruction to property, the late payments, not to mention the screening of and securing decent tenants – these are all part of the burden that the property manager bears.  The owner, usually, doesn’t want to deal with the tenants, fixing up the property, or worry about collecting money.  Usually, the property owner wants to make his investment by purchasing the property, and then simply collect checks by handing over the property to the property management company.  In other words, they don’t want to do the “dirty work”.  Despite this unenvious position, the property manager must do the bidding of the owner in order to get paid.  If the owner feels that the service is not up to his standards, he can take his business to the next property manager in the area as switching costs are typically not that high. Continue reading “Why You Hate Your Property Manager (and Why You Might Be Wrong to Do So)”

Challenges in being a landlord

At Goldenwest Management, we’ve managed properties for hundreds of landlords, and worked with hundreds more tenants over the past decade.  Most of you who follow this blog know that being a landlord isn’t easy.  Tenants come in a variety of personality and quirks.  If you are lucky enough to find the one that improves your property, then thank your lucky stars because these types of tenants are a rarity.  Most tenants will fall into an average range where the rent is paid on time, and no major issues arise.  The trick is to avoid the problem tenants.  These may be difficult to spot unless you have a seasoned screening process.  Even then, bad tenants can slip through the cracks.  For example, one article from the Durango Herald talks about undocumented pets, and tenants putting holes through the drywall.  Another article from the Hamilton Spectator, shares a sad story about a landlord whom lost her home after months of tenants not paying rent (and disappearing).  We’ve also heard stories of tenants selling illegal drugs, conducting illicit behavior, stealing materials from the property, and more.  These can be troubling situations, so make sure that you protect yourself appropriately (see our article on how to choose great tenants and/or how to handle a problem tenant).  If you really find that you are in over your head, use a property manager to help.

 

 

Investment Property Solutions
AZ LIC# CO583886000
CA LIC# 071791904
NV LIC# B1000408

Why Renting a Home is Good for Your Budget!

Rentals.com Why Renting a Home is a Good Idea
Rentals.com Why Renting a Home is a Good Idea

If you’re in the process of deciding whether to rent or buy a house, you might be interested to learn that deferring home ownership could be advantageous for your budget. Rentals.com has a great article offering some reasons as to why this might be true.  These include:

  1. Living where you want (not where you can afford) – Improving your standard of living
  2. Not having to handle (or pay for) most maintenance issues
  3. Not paying for Utilities (where included)
  4. Access to Free Amenities
  5. Stabilizing your Budget
  6. Investing your Down Payment

Rather own your home?  Take some of the pain and risk out of it by hiring a property manager.

 

 

Investment Property Solutions
AZ LIC# CO583886000
CA LIC# 071791904
NV LIC# B1000408

What is the safest way for a Tenant to conduct an early termination of their lease?

Over the years GWM has seen several different early lease termination situations. They range across the spectrum in terms of ease and accommodation to all-out war between Landlord and Tenant, but one thing is for certain; without a legal reason for breaking the lease, there is going to have to be some sort of compromise or settlement between Landlord and Tenant if penalties are to be avoided.

In truth a Landlord may hold a Tenant financially responsible for re-marketing the property, leasing commissions, and lost rent. In reality, the Landlord would rather negotiate a flat fee settlement that is positive for both parties.

There are two typical settlements that we see that seem to leave both Landlord and Tenant walking away in a win-win situation.

The first settlement is when the Tenant pays a flat marketing fee (usually $200 -$300) and the Landlord begins to Market the property for rent. The Tenants assist with showings and when a suitable prospect is found, the property is leased. It is not a sublease, so the Tenants simply vacate the premises (following lease guidelines for moving-out) and their obligations are finished. The Tenant does a lot of the leg work with showings, etc…, but they are very much in control of how quickly the property rents.

The second settlement is where the Tenant moves out at the end of a calendar month. They agree to pay the next month’s rent, as well as leave the property in the condition outlined under the lease move-out terms. In addition to paying the rent, the Tenants also agree to forfeit their security deposit if the Landlord is unable to lease the property within 30 days. The benefit for the Tenant is that they are not responsible for showings, marketing or when or how much the Landlord is able to lease the property. The Tenants may lose their security deposit but they can forget about any future obligations with the property.

Of course, there are Tenants who try to “leave” their security deposit behind as they move out without notifying anyone. Often the properties are not left in good condition and the Tenant usually takes the attitude of “come try to find me and sue me.” But in reality, they will end up owing a lot more and if they ever have ever have a desire to lease a decent property, get a government job, by a car with a good interest rate, or buy their own home, they may regret that “middle of the night” move-out.  Landlords are usually able to add marketing fees, penalties, unsubstantiated move-out repairs and charges, and without having to wait much more than a month get a judgment rendered on the Tenant’s credit. Then they just sit back and wait, sometimes having to re-file the judgment once or twice every 3-5 years. 50% of those Tenants with Judgments end of paying the entire judgment off within 5 years…people grow up and find they can’t run from their record.

 

 

Investment Property Solutions
AZ LIC# CO583886000
CA LIC# 071791904
NV LIC# B1000408

Tips for Finding a Rental near the University of Arizona

One of the biggest mysteries is how to find the best houses, or at least the ones closest to campus every year. It seems that most students can’t find a home that is decent around the UofA campus unless they start looking in January, roughly 8 months before they will move into that new place!

For many this means trying to find out who their new roommates will be just as they are finally getting used to (or sick of) their current roommates. 10 years ago students wouldn’t start looking for a new home or apartment until after spring break. Today the same can be said, except those students are the same ones who call our office desperately trying to find something within biking distance and are constantly told “we don’t have anything else that close.”

This year GWM has put together a few simple rules to help you secure that great home close to campus without losing your mind.

  1. Start Early – If you haven’t started looking at homes by the first of February, you are going to miss the best deals.
  2. Determine what side of the campus you want to live (sam huges, between park and mountain, south of the stadium) and try to find out the ballpark price for homes or condos on that side of school.
  3. Figure out if you want a house or an apartment…the best rule of thumb for this is if you will only live by yourself or with one other person, then look at apartments (or condos). If you need a yard, want a garage or want to be with a bunch of friends for the year, then start focusing on a house.
  4. Don’t try to identify all your roommates right away. Instead If you can identify at least one and in the best case a third person, then you are in great shape. Landlords don’t need everyone, but they will want one or two Tenants plus Guarantors (yes, that means mom or dad most likely).
  5. Get your Co-signer or Guarantor(s) ready! Every college student will need a guarantor because most of them don’t have credit history, a job (that pays enough to cover 2.5 times the rent) or references from previous rentals. This means that a parent or guardian will most likely have to fill out an application and submit it with your application in order to be approved for that house you like.
  6. Remember – its first come first serve! So the longer you take to turn in applications or come up with the security deposit, the more likely another organized group of students will come in and rent that house from beneath your nose!

Investment Property Solutions
AZ LIC# CO583886000
CA LIC# 071791904
NV LIC# B1000408