Are you renovating, repairing or painting a home containing lead-based paint?
If you are a landlord or property manager the following will effect the way you do business with contractors or "handy men". Not adherring to specific regulations could result in fines from the EPA. It may be a good idea to bring your vendors up to speed ahead of time. Inform them about the new ruling and the date it will go into effect. It should be common practice in your business to let your current vendors know they will have to be certified to remain a vendor with your company. In addition, ask new vendors if they are aware of the April 2010 rule.
Many times in the training classes I hold with the property managers in our office I try to impress upon them that as property managers we have two jobs: one is to manage the assets of the owners; the second job is to manage liabilty. Requiring your vendors to provide proof of licenses, insurance, bonding and certifications as required is definitely one way to manage liability.
Beginning in April 2010, federal law will require that contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and follow specific work practices to prevent lead contamination.
Until that time, EPA recommends that anyone doing this type of work in pre-1978 homes, child care facilities and schools follow lead-safe work practices. The contractor should follow these three simple procedures:
- Contain the work area
- Minimize dust
- Clean up throughly
Use the links on the right side of this page to download a copy of the EPA brochure for your vendors or to visit the EPA website for more information.
Thursday, March 12, 2009
Tuesday, December 23, 2008
Landlords Should Re-think Their Game Plan
If you are a landlord, whether by choice or by default, these are times when conventional rental property management strategies need to be taken back to the drawing board for modifications.
It seems horrific news flows out of our HDTVs and Blackberries daily with no end in sight, at least for the near future. One failing market seems to drag others down with it. I recently heard an advisor state the bad news is creating more bad news. Maybe we need to disconnect from all forms of news feeds and try to concentrate on the business at hand one day at a time. If we ignore it, will it go away?
How is the Rental Market?
Almost daily I'm asked, "How is the economy affecting the single family rental business"? With home prices falling and mortgage rates going lower you'd think buyers might start hitting the pavement to shop for good buys. Not so. Buyers appear to be holding out just out of fear of the unknown. A house purchased today may not have any equity tomorrow. Lenders are also requiring more money down. The days of "no money down" or 2 or 3 percent down may be over. Sales of existing homes are down. Median prices are falling. Some forecasts predict more drops this summer. One thing is for certain, prices have got to fall low enough to entice buyers to take the risk. No one knows where that price is. The market has to seek its own level. Then there will be movement.
Lawrence Yun of the National Association of Realtors reported 45 percent of all home sales for November were "distressed sales". Not a good sign. Yun also says this may be the largest price drop since the Great Depression (there's that D-word). Right now, distressed sales are making up most of the market. People are deciding to stay put.
Good News - Bad News
There is enough daily bad news items hitting us, so try the following "good news - bad news" for relief:
- Good News: Orders for durable goods (a vital statistic) fell last week (but not as much as expected and yes this in this economy this is good news).
- Bad News: The jobless claim peaked at a 26 year high last week.
- Good News: Mortgage applications increased last week as homeowners shopped for refinancing at low interest rates.
- Bad News: Credit is still tight due to stringent qualifications.
- Good News: Orders for durable goods increased for November.
- Bad News: Signs of confidence are rare.
- Good News: Oil supplies increased in the US and the barrel price is dipping.
- Bad News: In Time Magazine Robert Chew writes of the Madoff scheme, "It harks back to December of 1929 and the image of bodies falling from buildings.
- Good News: Consumer spending was up for the month of November.
In these uncertain times, as the economy grinds to a halt and markets are rocking and reeling as fast as news hits the web, as an owner of a rental property are you asking yourself, "What should I do"? Do you have a plan in place? Are you in the red with your property? Are you a potential jumper ready to bail out at the next round of bad news? Or are you going to sit down, take a deep breath, and surmise a plan.
Rental Increases Slowed
In my observations owners have slowed down requests for rental increases. Many are afraid they will lose their tenants over a few dollars a month. If an owner has a tenant in place who is caring for the property and paying rent on time, asking for a rent increase may be a far fetched idea. I have seen tenants move for a few dollars less than they are presently paying. Tenants are also finding there are larger and better properties on the market for less than their current rent. Tenants are moving up and saving money.
If a tenant informs me they are thinking about moving instead renewing their lease I ask them, "What would it take for you to stay in the property"? Most answer lower rent.
My advice to owners in this market: If your tenant is serious about moving to another property for less money, you may need to think about offering the tenant a discount to keep them in the property. This may seem contrary to good advice, but with properties staying on the market for nearly three months or longer the owner will loose three months of rent compared to several hundred dollars offered as a discount.
In a recent drive to fill vacant properties in our management portfolio owners were asked to lower rents on properties that were on the market for many months. After dropping the rents more than half of the units were rented within two weeks and the owners began receiving cash flow.
Stop the Bleeding!
Rental inventories are increasing and will continue to increase until spring 2009. A vacant property on average costs an owner approximately $3,000. This is not chump change. We are talking real bucks here. A vacqant property that is over-priced will remain on the market even longer. There are more properties than there are tenants to go around. Rental shoppers need to have something that is an additional attractant in order to persuade them to consider a property. Price is the driver in this market.
A good plan for the present market does not have to be a complex strategy, but it does require taking the time to think outside the box. That box being conventional landlord reasoning.
10 Tips
Here are 10 tips that may help insure consistent income throughout this market:
1. Rethink rental increases.
2. Offer discounts if your tenant wants to move.
3. Keep the property in good condition.
4. Make repairs in a timely manner.
5. Invest in improvements, but don't over-spend on needless items.
6. Remember that a vacant property can cost you $3,000.00.
7. Make sure your tenant has a current lease.
8. If your tenant is paying late, consider working something out rather than beginning an eviction.
9. If your property is vacant, ask a professional what can be done to start some cash flowing from the property.
10. Keep in mind - every month the property is vacant you loose a month's rent. Strive to place a qualified tenant.
Dump and Run - think first
Occasionally I talk to an owner who is considering the "dump and run" method of disposing of a property. They think the only way out is to allow the property to go into foreclosure. Think more than twice about that strategy. Consider taking less for the property. Talk to a tax professional and an attorney about foreclosure and about the possible benefit at years end if you have a negative cash flow. I've seen too many owners take advice from the wrong people, or worse, fail to heed the wisdom of professionals and experts.
These are uncertain times and uncertain times call for unconventional thinking. When the market turns, you can revert to a strategy that produces more income during a market of more demand and less inventory.
Try Some Magic
Magic Johnson, NBA player for the Los Angeles Lakers had this to say: "When I'm under the gun and I've got pressure on me, I don't panic. I look for the right solution, and then I go for it".
As an owner of a rental property use Magic Johnson's logic:
- Don't panic.
- Look for the right solution.
- Go for it.
Consult with professionals whose organizations have proven track records and history. Develop a new game plan. Until the market turns, keep the cash flowing from your occupied property, even if you have to put up a few dollars to cover the mortgage and expenses. The alternatives can be devastating.
Jack McSwain, PRM, Realtor®
Managing Broker for Walter Williams Property Management, Inc.
Jack is a member of the National Association of Residential Property Managers, the Florida Association of Residential Property Managers and is past president of the Northeast Florida Association of Residential Property Managers.
Landlords Should Rethink Their Game Plan is copyrighted by Jack McSwain, PRM. For reprint information contact Jack at jmcswain@cbwwcorp.com
It seems horrific news flows out of our HDTVs and Blackberries daily with no end in sight, at least for the near future. One failing market seems to drag others down with it. I recently heard an advisor state the bad news is creating more bad news. Maybe we need to disconnect from all forms of news feeds and try to concentrate on the business at hand one day at a time. If we ignore it, will it go away?
How is the Rental Market?
Almost daily I'm asked, "How is the economy affecting the single family rental business"? With home prices falling and mortgage rates going lower you'd think buyers might start hitting the pavement to shop for good buys. Not so. Buyers appear to be holding out just out of fear of the unknown. A house purchased today may not have any equity tomorrow. Lenders are also requiring more money down. The days of "no money down" or 2 or 3 percent down may be over. Sales of existing homes are down. Median prices are falling. Some forecasts predict more drops this summer. One thing is for certain, prices have got to fall low enough to entice buyers to take the risk. No one knows where that price is. The market has to seek its own level. Then there will be movement.
Lawrence Yun of the National Association of Realtors reported 45 percent of all home sales for November were "distressed sales". Not a good sign. Yun also says this may be the largest price drop since the Great Depression (there's that D-word). Right now, distressed sales are making up most of the market. People are deciding to stay put.
Good News - Bad News
There is enough daily bad news items hitting us, so try the following "good news - bad news" for relief:
- Good News: Orders for durable goods (a vital statistic) fell last week (but not as much as expected and yes this in this economy this is good news).
- Bad News: The jobless claim peaked at a 26 year high last week.
- Good News: Mortgage applications increased last week as homeowners shopped for refinancing at low interest rates.
- Bad News: Credit is still tight due to stringent qualifications.
- Good News: Orders for durable goods increased for November.
- Bad News: Signs of confidence are rare.
- Good News: Oil supplies increased in the US and the barrel price is dipping.
- Bad News: In Time Magazine Robert Chew writes of the Madoff scheme, "It harks back to December of 1929 and the image of bodies falling from buildings.
- Good News: Consumer spending was up for the month of November.
In these uncertain times, as the economy grinds to a halt and markets are rocking and reeling as fast as news hits the web, as an owner of a rental property are you asking yourself, "What should I do"? Do you have a plan in place? Are you in the red with your property? Are you a potential jumper ready to bail out at the next round of bad news? Or are you going to sit down, take a deep breath, and surmise a plan.
Rental Increases Slowed
In my observations owners have slowed down requests for rental increases. Many are afraid they will lose their tenants over a few dollars a month. If an owner has a tenant in place who is caring for the property and paying rent on time, asking for a rent increase may be a far fetched idea. I have seen tenants move for a few dollars less than they are presently paying. Tenants are also finding there are larger and better properties on the market for less than their current rent. Tenants are moving up and saving money.
If a tenant informs me they are thinking about moving instead renewing their lease I ask them, "What would it take for you to stay in the property"? Most answer lower rent.
My advice to owners in this market: If your tenant is serious about moving to another property for less money, you may need to think about offering the tenant a discount to keep them in the property. This may seem contrary to good advice, but with properties staying on the market for nearly three months or longer the owner will loose three months of rent compared to several hundred dollars offered as a discount.
In a recent drive to fill vacant properties in our management portfolio owners were asked to lower rents on properties that were on the market for many months. After dropping the rents more than half of the units were rented within two weeks and the owners began receiving cash flow.
Stop the Bleeding!
Rental inventories are increasing and will continue to increase until spring 2009. A vacant property on average costs an owner approximately $3,000. This is not chump change. We are talking real bucks here. A vacqant property that is over-priced will remain on the market even longer. There are more properties than there are tenants to go around. Rental shoppers need to have something that is an additional attractant in order to persuade them to consider a property. Price is the driver in this market.
A good plan for the present market does not have to be a complex strategy, but it does require taking the time to think outside the box. That box being conventional landlord reasoning.
10 Tips
Here are 10 tips that may help insure consistent income throughout this market:
1. Rethink rental increases.
2. Offer discounts if your tenant wants to move.
3. Keep the property in good condition.
4. Make repairs in a timely manner.
5. Invest in improvements, but don't over-spend on needless items.
6. Remember that a vacant property can cost you $3,000.00.
7. Make sure your tenant has a current lease.
8. If your tenant is paying late, consider working something out rather than beginning an eviction.
9. If your property is vacant, ask a professional what can be done to start some cash flowing from the property.
10. Keep in mind - every month the property is vacant you loose a month's rent. Strive to place a qualified tenant.
Dump and Run - think first
Occasionally I talk to an owner who is considering the "dump and run" method of disposing of a property. They think the only way out is to allow the property to go into foreclosure. Think more than twice about that strategy. Consider taking less for the property. Talk to a tax professional and an attorney about foreclosure and about the possible benefit at years end if you have a negative cash flow. I've seen too many owners take advice from the wrong people, or worse, fail to heed the wisdom of professionals and experts.
These are uncertain times and uncertain times call for unconventional thinking. When the market turns, you can revert to a strategy that produces more income during a market of more demand and less inventory.
Try Some Magic
Magic Johnson, NBA player for the Los Angeles Lakers had this to say: "When I'm under the gun and I've got pressure on me, I don't panic. I look for the right solution, and then I go for it".
As an owner of a rental property use Magic Johnson's logic:
- Don't panic.
- Look for the right solution.
- Go for it.
Consult with professionals whose organizations have proven track records and history. Develop a new game plan. Until the market turns, keep the cash flowing from your occupied property, even if you have to put up a few dollars to cover the mortgage and expenses. The alternatives can be devastating.
Jack McSwain, PRM, Realtor®
Managing Broker for Walter Williams Property Management, Inc.
Jack is a member of the National Association of Residential Property Managers, the Florida Association of Residential Property Managers and is past president of the Northeast Florida Association of Residential Property Managers.
Landlords Should Rethink Their Game Plan is copyrighted by Jack McSwain, PRM. For reprint information contact Jack at jmcswain@cbwwcorp.com
Wednesday, December 3, 2008
A Tough Market Calls For A Tough Plan
Being in the property management business in the present market is certainly challenging. Many landlord/owners are finding their properties are competing for a smaller number of tenants in an ever increasing sea of vacancies. Properties are staying on the market longer because of the increase in inventories. Some tenant/applicants are finding their applications are being rejected because they have just experienced a foreclosure and it has tainted their credit record. Others are faced with evictions because they may have lost their job due to the economy or layoffs.
How do we as property managers and landlords/owners deal with the situation at hand? Rents are dropping in many areas because of increased inventories, but mortgage payments, taxes and insurance may have also increased.
Choices are few and far between. As a landlord/owner it may come down to deciding "how much cash can I pump into a property" to make up the difference between the rental income and the expenses on the property.
Another choice is ensuring the property is a top competitor in the market when you are faced with a vacancy. The way to do this is to be aware of two major considerations:
Condition - Is your property in the best condition it can be in? In the present market rental shoppers have many choices and condition is certainly a major consideration. If a property is pristine “move-in” condition and the tenant can actually take possession without putting forth any effort to clean it up, then that property moves to the top of the “shopper’s list”. If a property is in less than desirable condition it will be placed low on the shopping list or be eliminated altogether. Some rental shoppers are spending less time looking at properties that are not in better-than-average condition. One look and they eliminate it from their shopping list. The “curb appeal” may draw the shopper in, but if the interior fails to live up to the first impression you’ll be hearing doors slamming as they leave to rush off to the next prospect on their list of eight to ten properties.
Price – How do rental shoppers select a group of prospective properties? The answer is price. Location and bedrooms are important considerations, but the main driver behind choice is price. When a rental shopper looks at results from internet searches price is the playing field leveler. They know what they can and will pay and they know the competing properties. If you have a property for rent it needs to be competitively priced to draw attention. Without competitive pricing the property will continue to sit empty. That means no income. The longer a property sits empty the more the owner looses. The longer it sits on the market with a non-competitive price the more qualified tenants keep right on passing it up. Price a property correctly right up front and get it rented quickly. Don’t try to “fish” for that one tenant who will pay more. That’s not working in this market. Remember what kind of market we are in – more properties less tenants.
Some owners develop a false sense of security about their property, their market knowledge and what renters want. They fail to look at the property as a business. It’s difficult to turn loose with your heart and think with your head when you may have lived in a home for many years and now are faced with the need to find a tenant until the market is right for selling. But as an owner you have to be objective and not sentimental during this time. Occasionally I have to tell an owner that there is no way I can help them if they are not willing to cooperate with the market. It’s not that I’m making unreasonable requests. I’m just doing my best to help the owner by placing their property in a competitive position among so many other properties on the market.
If you are thinking about renting your property try these suggestions:
- Interview several property managers.
- Ask about their company and their experience.
- Learn the market or hire a professional who knows it.
- Take time to put the property in better-than-average condition.
- Price the property competitively.
- Shift from “heart thinking” to “head thinking”.
- Market the property where rental shoppers are looking.
If you can adhere to some straight-forward principles you can weather this market.
Jack McSwain, PRM, Realtor®
Managing Broker for Walter Williams Property Management, Inc.
Jack McSwain is a Managing Broker for Walter Williams Property Management
in Jacksonville, Florida.
Jack is a member of the National Association of Residential Property Managers, the Florida Association of Residential Property Managers and is currently serving as president of the Northeast Florida Association of Residential Property Managers.
A Tough Market Calls For a Tough Plan is copyrighted by Jack McSwain, PRM. For reprint information contact Jack at jmcswain@cbwwcorp.com
How do we as property managers and landlords/owners deal with the situation at hand? Rents are dropping in many areas because of increased inventories, but mortgage payments, taxes and insurance may have also increased.
Choices are few and far between. As a landlord/owner it may come down to deciding "how much cash can I pump into a property" to make up the difference between the rental income and the expenses on the property.
Another choice is ensuring the property is a top competitor in the market when you are faced with a vacancy. The way to do this is to be aware of two major considerations:
Condition - Is your property in the best condition it can be in? In the present market rental shoppers have many choices and condition is certainly a major consideration. If a property is pristine “move-in” condition and the tenant can actually take possession without putting forth any effort to clean it up, then that property moves to the top of the “shopper’s list”. If a property is in less than desirable condition it will be placed low on the shopping list or be eliminated altogether. Some rental shoppers are spending less time looking at properties that are not in better-than-average condition. One look and they eliminate it from their shopping list. The “curb appeal” may draw the shopper in, but if the interior fails to live up to the first impression you’ll be hearing doors slamming as they leave to rush off to the next prospect on their list of eight to ten properties.
Price – How do rental shoppers select a group of prospective properties? The answer is price. Location and bedrooms are important considerations, but the main driver behind choice is price. When a rental shopper looks at results from internet searches price is the playing field leveler. They know what they can and will pay and they know the competing properties. If you have a property for rent it needs to be competitively priced to draw attention. Without competitive pricing the property will continue to sit empty. That means no income. The longer a property sits empty the more the owner looses. The longer it sits on the market with a non-competitive price the more qualified tenants keep right on passing it up. Price a property correctly right up front and get it rented quickly. Don’t try to “fish” for that one tenant who will pay more. That’s not working in this market. Remember what kind of market we are in – more properties less tenants.
Some owners develop a false sense of security about their property, their market knowledge and what renters want. They fail to look at the property as a business. It’s difficult to turn loose with your heart and think with your head when you may have lived in a home for many years and now are faced with the need to find a tenant until the market is right for selling. But as an owner you have to be objective and not sentimental during this time. Occasionally I have to tell an owner that there is no way I can help them if they are not willing to cooperate with the market. It’s not that I’m making unreasonable requests. I’m just doing my best to help the owner by placing their property in a competitive position among so many other properties on the market.
If you are thinking about renting your property try these suggestions:
- Interview several property managers.
- Ask about their company and their experience.
- Learn the market or hire a professional who knows it.
- Take time to put the property in better-than-average condition.
- Price the property competitively.
- Shift from “heart thinking” to “head thinking”.
- Market the property where rental shoppers are looking.
If you can adhere to some straight-forward principles you can weather this market.
Jack McSwain, PRM, Realtor®
Managing Broker for Walter Williams Property Management, Inc.
Jack McSwain is a Managing Broker for Walter Williams Property Management
in Jacksonville, Florida.
Jack is a member of the National Association of Residential Property Managers, the Florida Association of Residential Property Managers and is currently serving as president of the Northeast Florida Association of Residential Property Managers.
A Tough Market Calls For a Tough Plan is copyrighted by Jack McSwain, PRM. For reprint information contact Jack at jmcswain@cbwwcorp.com
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