We just observed the 10 year anniversary of 9/11. The take away for me was the reminder of how precious life is and the fact that our lives as we know it can be turned upside down in an instant.  So how does that impact owning rentals?

We need to be prepared.  Once you own real estate you need to have a living trust, a will, written instructions for family, insurance such as Term Insurance, that would cover the mortgage on the rental so the loan would be paid off and the surviving family members can receive the income from the rental.  Have a list of all your contacts associated with the rental – plumber, accountant, gardener, insurance agent etc. Have a file with everything related to the rental so people know where to go to get info. 

Make sure bank accounts have appropriate names on the accounts for the rentals.  I added my husband to my bank accounts even though I own the rentals so that in the event of my passing he can still access the accounts, pay bills etc.

Life can get complicated when things happen unexpectedly try to be as prepared as possible.

I have a client that knew he was ill and terminal and came to me to take over management of his rentals so that when the time came it wouldn’t be a burden to his wife.  Now, we are educating his wife about the properties and working with her.  Her comment to us all the time is, “Thank you for handling all this for me.  It is such a relief.”  I really admire her husband for taking action to protect his wife.  He truly loved her.  I feel blessed to be able to lift the burden and to protect her.

If you have property management needs in Santa Cruz County check us out we might be able to help you.  www.PortolaRentals.com

Kathleen

Every landlord has had something go wrong with their tenant, the rental, a vendor the list goes on.  How you handle the issue will reveal what kind of landlord you are or the type of business you operate.  I will share with you a recent experience and how I handled it.

I offer placement services in addition to full management.  I had a very high-end home in Aptos, CA on the golf course.  It was owner occupied and they didn’t get out of the property soon enough for us to turn it over before the tenant moved in.

The owner also had a long laundry list of things they wanted done to the property prior to tenant moving in – within 3 days.

In addition we had advertised the property with washer and dryer and owner decided to remove them because they weren’t working properly.  I informed the owner they had advertised and should provide the appliances.  We decided that we would offer the tenant money towards a used set of washer and dryer and they could get what they wanted.

We informed tenant of the lack of washer/dryer immediately.  Well it didn’t sit well with them.  Screaming, yelling, why should they have to spend time replacing the appliances, they wouldn’t have rented the house had it not had these appliances etc etc. 

One repair the owner wanted to do was stain the deck which is an access point to enter the house.  I advised this should be done after the tenant moved in.  Well owner went ahead and did this and the day the carpet cleaners arrived they couldn’t get into the property.  So they had to go the following day now we are 24 hours away from tenant move in.  Owner has friend going in to clean the house and I still have to do the move in report that goes with the lease. 

Tenants have asked if they can meet me on move in day at the house at 8:00am.  This is an exception to how we do business but in order to accomodate them since they were so upset over the appliances I agreed to meet them. So I am there at 7:00am to do the move in report and make sure the house is clean – well one of the bedrooms (hardwood floors) was not clean.  There I am cleaning the house myself with my cleaning supplies from my car – thank goodness I am prepared.  Carpets are still damp because it has been less than 24 hours but the good news is there is a washer and dryer in the house!

I meet the tenant tell them the house is clean and they will be really happy there is a washer and dryer in the unit.  I give them the keys and leave.

That afternoon I get calls from our emergency answering service from irate tenants who are upset the carpet is damp(they say soaking wet) we get carpet cleaner back and set up fans!  They have a melt down and continue to relive the washer/dryer stress even though they now have one.  They were threatening lawsuit, etc etc. 

From my experience when people are this upset it isn’t about us something personal is going on and we are taking the brunt of it.

So, this is how to handle a situation when things start going south.

1. Listen, let them vent, take notes
2. Try to calmly explain the situation (hard when you are being personally attached)
3. Don’t take comments personally – it is a business try to solve the problem
4. Always apologize even if you didn’t do anything wrong – apologize that they didn’t have the smooth move in experience they should have, or that things didn’t happen according to their expectations.
5. Ask for their recommendations of what you could have done or could do in the future to avoid this situation from happening again.
6. Be open minded enough to consider their ideas
7. Implement ideas if it makes sense
8. Drop off a small gift and card – again apologizing for the unfortunate circumstances.  This is what I did. By they way – they were in a heated arguement when I arrived – so my intuition was correct – not about me.
9. If you do make changes to how you do business based upon their recommendations – send another thank you card and inform them of the new business policy in place as a direct result of their feedback. I did this as well.

I have always learned the most and grown personally from the mistakes and trying situations.  If life were easy we would never make changes and often for the better.  Try to stay positive and always take the high-road.

How you handle adversity is a true reflection of the kind of business person/landlord you want to be.

If you are looking for property mgmt services in Santa Cruz County please visit my website www.PortolaRentals.com

Kathleen

This month a new law was passed that stipulates if you apply for rental housing and you are denied because of your credit the property mgmt firm must give you your FICO score.  The State of California requires that if an applicant asks for their credit report you must provide it to them.

If you are looking for a great place to rent or a great property management company in Santa Cruz please contact www.PortolaRentals.com.

Kathleen

Today it is law that all homes have Carbon Monoxide Detectors installed in them. Having personally known people who have died from Carbon Monoxide it is well worth putting the detector in your home.

Rental properties have until July 2013, but in our company we have already installed them in all of our units.

If you have interest in rentals in Santa Cruz please visit my website www.PortolaRentals.com.

Kathleen

There are a number of scams out there for rental housing.  Here are a few tips.

Craig’s List users make sure to water mark your photos and check your ads regularly.  Also, go to property regularly to make sure there is no unusual activity.  I always say in my ads – tenant occupied.  Have neighbors keeps their eyes open for you.  They are the best security around. 

What to do if someone rents a home from you and then as a business (sublets the units out to people who wouldn’t qualify)?  Again, keep in touch with neighbors.  Enforce the lease, google the person who is renting the property prior to signing the lease to see if they pop up on any scam notices.  Let potential tenant know well in advance the neighbors are very good friends with the owners.  That may disuade someone who might want to sublet or set up a grow operation in the house or other illegal activity.

Stay sharp, listen to your intuition, ask neighbors to assistance and do your due diligence.  Lastly, document everything and enforce the rental agreement (it is a legal document the occupants are signing)

A few basic things to keep in mind and you will be A-Ok.

For information about rentals in Santa Cruz please visit my company website:  www.PortolaRentals.com

Kathleen Richards

Try this quiz: Wear & Tear (W&T) or Damages (D)

1. Furniture scratches on wall
2. Crayon drawings on wall
3. Picture hook hole in wall
4. Molly bolt hole in wall
5. Hole in wall from doorknob
6. Dent in wall from doorknob
7. Mildew caulking in tub or around sinks
8. Dead light bulbs
9. Worn carpet at front door
10. Stains all over carpet
11.  Bent electric stove coils
12.  Bent blinds – more than one slat
13. Large tear in new vinyl
14. Smudges on new vinyl

Answers are:  W&T = 1,3,6,7,9,14  D = 2,4,5,8,10,11,12,13

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards, M.S. MPM, RMP

Security Deposits are always a topic for heated discussion.  What is wear and tear versus damage?  Leaving a house dirty is not wear and tear.  It is dirty and cleaning can be deducted from deposit.  Security deposits aren’t to be used for last month rent because you may not have enough money left to cover cleaning or damages.

Try this quiz: Wear & Tear (W&T) or Damages (D)

1. Furniture scratches on wall
2. Crayon drawings on wall
3. Picture hook hole in wall
4. Molly bolt hole in wall
5. Hole in wall from doorknob
6. Dent in wall from doorknob
7. Mildew caulking in tub or around sinks
8. Dead light bulbs
9. Worn carpet at front door
10. Stains all over carpet
11.  Bent electric stove coils
12.  Bent blinds – more than one slat
13. Large tear in new vinyl
14. Smudges on new vinyl

Answers are:  Check back next week for the answers!

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards, M.S. MPM, RMP

I just had a fire in one of my rental homes and thankfully the tenant had renters insurance.  Moreover, we had a copy of the owners insurance and were able to get in touch with the insurance company on behalf of the owner.  It is important that you are listed as additionally insured on the clients insurance.  This way you get copies of the insurance for the file.

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards, M.S. MPM, RMP

Rental properties always need maintenance here is a list of To Do’s to get ready for the season and to prevent you getting that call on Christmas Eve when you have a house full of guests and aren’t in the mood to deal with a maintenance emergency on your rental.

1. Check heater and install new filter.  Have heater cleaned annually by heating company.
2. Check stove and oven to make sure it works correctly.
3. Clean gutters so water drains away from the property
4. Check sump pumps if the property has one
5. Clean the fireplace so no fires in the flue
6. Install weather stripping around doors and windows.
7. Clean roof of debris that can catch fire (embers from fireplace) or create leaks in home because water can’t drain away properly. Have roof inspected every 5 years to make sure it is still sound.
8. Have trees on property trimmed annually and checked for safety by an arborist. 
9. Make sure outside lighting on property is working. 
10. Install new batteries in smoke detectors and carbon monoxide detectors 
11. Ensure walk ways are safe – repair cracks to sidewalks.
12.  Make sure tenants have a fire extinguisher in the kitchen area and flash lights in case of power outage – candles can be dangerous in an emergency.
13.  Lastly, check with tenants regarding plumbing – is everything draining properly?  If not, get plumber to clean lines before all the guests show up and the toilet backs up.

Keep in mind tenants often are afraid to mention small fix it items and live with it because they don’t want their rent increased.  They don’t call you until there is an emergency so be proactive.

Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.

Kathleen Richards, M.S. MPM, RMP