Lead-Safe Certified? It's not just for Contractors

Lead-based paint was banned in 1978, but houses built before then probably still contain leaded paint. Children, particularly under the age of six, are most at risk from even small amounts of lead, and the damage can be permanent.

Common renovation such as sanding, cutting, and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to both adults and children.

To protect against this risk, in April 2008, EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning.

To go a step further, beginning on April 22, 2010 contractors as well as property owners who perform renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must now be certified in the new EPA Renovation, Repair & Painting Rule (RRP) and must follow specific work practices to prevent lead contamination.

Also before beginning work, you must provide tenants with a copy of EPA's lead hazard information pamphlet Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools (PDF)

To find out more go to the EPA website

Types of Property Management

What type of Property Management do you require?

Residential or Apartment Property Management

A Residential Property Manager will manage single family homes or a 1 unit property whether it be in a neighborhood, community or condominium association. They may also manage duplexes to large multi-unit or apartment buildings.

Vacation Rental Management
If you own a property in a popular vacation destination and want to rent it out on a nightly or short term lease you may consider using a Vacation Property Manager. These management companies specialize in managing vacation rentals and know the in's and out's of this type of business.

Commercial Property Management
A Commercial Property Management company will likely manage all types of retail and office space. This could include shopping and strip malls, warehouses, manufacturing, office building, parking facilities and hotels. If your property use is for anything other than residential housing, chances are it would fall in the commercial management category.



Community Association Management
If you are looking for a management company to oversee all aspects of the management of a community association as a whole, then look no further. You are in need of a Community Association Management company. They will take care of all maintenance, financials, enforcement of community rules etc.. for the whole community.

What to Expect From a Property Manager

Tenants
The first step to having a successful apartment is having the right tenants. A company does this by having a third party screener. The third party screens for the following: credit, criminal, eviction, sex offenders, employment and rental history. The goal is to put the highest quality tenant in your apartment.

Fair Housing
The Federal Government has set up laws called Fair Housing. The law states that no one can discriminate based on the following: race, color, sex, religion, handicaps, national origin, family status, and more if your state has added them. A property manager knows how important it is to follow these laws, and are working everyday to make sure that you as the owner of the apartments will never get fined from the Fair Housing.

Maintenance
Maintenance is a huge headache for most owners. You may find yourself wondering, is it time to replace the swamp cooler, or the kitchen sick. Is the water bill so high because there is a leak some where? Managers understands how hard maintenance is, that is why they should have trained employees that know what to look for when they are walking through your properties. Property managers know that a small leak can cause huge problem. The manager should send you a report of improvements that can be done to your property. This will allow your property to stay competitive in the market.

We know that good maintenance does the following:
1. Retains tenants.
2. Keeps your property competitive in the market.
3. Will prevent problems for the future.
4. Lowers turnover cost.
5. Will allow for increase in rent.

Make sure that these 5 things are happening for you.

Property Management
Property managers should want to help you keep your property to the highest standards. Some of the keys are; a great marketing plan to get the best value out of your property, walk through each property every 60-90 days, Walk through inspections are an important key not only to see what is happening in the property but it builds a better tenant relationship. The more we are in the properties the better tenants you will have. Another important key is book keeping, providing up to date book keeping, rent collection, automatically deposited to your account. Fast evictions are an essential key, have an attorney who works solely on evictions. Know that each of these keys are vital to keeping your investment successful.

Rent
It is our job as your manager to help your property value increase property value is tied to NOI. Rent increases or decrease done at the right time help to avoid high turnover cost. A good manager will watch the market for you.

Security deposits
Security deposits are moneys that are kept in a trust account by the management company to help pay for repairs done after a tenant moves out. Within fifteen days after the move out date the tenant will receive a deposit disposition form from the management company, this form will state if the tenant receives money back, or if they owe the property management company money for damages.

Move outs
As soon as they have notice that a tenant is moving out they inspect the property with a camera and inform the tenant what needs to be fixed and how much we will charge them if the things are taken care of. After the tenant has moved out they again go to through the property with a camera and record things that were not done. They then make all the necessary repairs before new tenants move in. This is to ensure you have evidence of all repairs, and to ensure that all work gets done.

Turn over expenses
The law says that a landlord may charge the tenants for reasonable items to be replaced when a tenant vacates the property. So, here are some cost the that landlord needs to be prepared to pay; locks changed, painting, carpet cleaning, and general cleaning of the property. Remember, these are general rules and exceptions are made.

About the author:
Dathan Jacobson of Fortress Property Management LLC. serving the Northern Utah area, graduated from Brigham Young University in 1993 with a Bachelor of Science Degree in Construction Management. Since graduation, he has been working as a Project Manager and Estimator for large builders in Utah. His experience has strengthened his knowledge of real estate and property management. His strong estimating, scheduling, and management skills are crucial in managing and maintaining rental properties.Dathan is honest, hardworking and dependable. Raised in Utah, he loves the area and people who live here. Helping and improving the situation of others brings him great satisfaction. He is a dedicated husband and a father of five.

Utah property management companies

How To Choose The Right Contractor for your Home or Investment Property ---------

10 Questions To Ask Before Inviting Him Into Your Home or to ask of your Property Manager:

1. Are you (contractor) licensed?

Make sure a contractor is properly licensed. In the State of Arizona, all contractors MUST be licensed. Anyone can say they are licensed. Make the contractor prove it by either showing you the license or giving you a copy of it. Remember to check the expiration date. Being licensed is the Law. If a contractor cannot provide a valid license, DON’T HIRE HIM!
If you live in a townhouse, villa, or high rise condominium building with four or more units, only a Building Contractor or General Contractor is permitted to perform remodeling work. Furthermore, hire a specialty contractor (trim carpentry, drywall, glazing, aluminum, plumbing, electrical, mechanical, roofing, etc.) to do only the type of work the license specifies. If you have any questions or doubts, call the Arizona State License Board.

2. Do you (they) carry general liability insurance?
Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or his employees. The insurance company will pay for the cost of replacing and/or repairing any damage that occurs. Anyone can say they are insured. Make the contractor prove it by having their insurance company FAX or mail to you a certificate of insurance with you named as the certificate holder.

3. Do you (they) carry workers compensation insurance?

Make sure your contractor carries workers compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor doesn’t carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor or any of his employees on your property. If the contractor is a one-man operation, he can be exempt from having to carry workers’ compensation insurance. If he is doing so legally, he can provide you with a copy of his construction industry certificate of exemption from workers’ compensation. This is very risky for you though. If he shows up with a helper and the helper gets hurt, with no workers’ compensation insurance, you may have to pay the medical bills. If the uninsured contractor is sloppy about verifying his sub-contractors workers compensation insurance and the subcontractor gets hurt, again you may have to pay the medical bills. In short it is much safer to deal with a fully insured contractor.

4. Will you provide me with a written lien waiver?
Your contractor should provide you with a written lien waiver at the end of the job. This is a legal document which say’s you the homeowner have paid the contractor in full for the services rendered and the contractor waives his right to place a mechanics lien on your property. If during the course of construction you receive any notice to owner documents from material suppliers or sub-contractors, it would be prudent to ask the contractor for a final release of lien from each one prior to paying the contractor his final draw. This protects you in case the contractor doesn’t pay his material suppliers or sub-contractors after you have paid him in full.

5. Are you a member of NARI or NAHB?
NARI stands for the national association of the remodeling industry and NAHB stands for the national association of homebuilders. It’s always a good idea to consider hiring a NARI or NAHB contractor. In most cases, both organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors. In order to become a member, the contractor’s background and references are thoroughly investigated.

6. Will you pay all the required building permits?

Make sure your contractor pulls all required permits. This is very important. When a contractor pulls the required building permits, you know things will be done to “code”. Also, many homeowners’ insurance policies require pulling a permit on any major remodeling to keep your home property covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the “hassle: with the inspectors. Some contractors may ask you to get the permits. This could be a warning sign that they are not able to pull the permit because they are unlicensed, or the work is outside of their license. A reputable contractor will permit every job where a permit is required.

7. Do you guarantee your work?
Your contractor should guarantee his work for at least one year from the date of completion. Some contractors guarantee their work for two or even three years.

8. Who will be in charge of the job?
Make sure the contractor or his foreman is on the job daily whenever work is being performed – especially if sub-contractors will be used. The responsible party must be intimately familiar with every aspect of your project. If you won’t be home during the construction and must leave the house unlocked, or leave a key with the contractor, you must feel comfortable. You can’t be worried about what is going on when you are not there.

9. Will you provide me with written references?

A good contractor will be happy to provide you with references. You should look for a well-established contractor who can give you several customer references from the last 6 months to one year. Ask for the name of the contractor’s accountant or banker. You want to ensure that the contractor is financially sound and won’t be declaring bankruptcy in the middle of your project.

10. How do you handle “dirty work”?

Construction is dusty and dirty! It gets everywhere, especially if any sanding is being done. Make sure the contractor will make an honest effort to keep the dust contained, or notify you when the heavy dust generating operations will take place or refuse container at the end of every day.

As Property Managers for the Phoenix area-we only work with highly qualified contractors or reputable handymen who work only for us and are held accountable to our high standards of quality and inexpensive repairs or rehab.

Hope this helps in holding your Property Manager accountable or to interview a contractor that you are looking at hiring now or in the near future.

Author:
Cecil Duarte- Designated Broker/Owner
Serving ValleyWide Realty and Management

Chandler Az 85286

Need a contractor in Arizona

Make Finding a Property Management Co. Easier on Yourself by Asking the Right Questions, Part 4 of 4

This is Part 4 of a 4 Part Series where we have outlined important questions to ask a property management company before hiring them.

Part 1 Companies Credentials

Part 2 Property Management Services
Part 3 Property Management Fees
Part 4 Tenant Screening Process

Property management companies come in all sizes, capabilities and expertise. Just because one works for one investor does not necessarily mean they will work for you. Below we have outlined some important questions to ask a company during your initial interview process regarding their tenant screening process. Their answers to these questions will give insight into their business capabilities and can provide you with an understanding of the type of services they offer which are important to you.

Part 4 - Tenant Screening Process

Your new tenants moved into your vacant apartment last month and everything seems okay so far. She works and he has his own business, a consultant of some sort so he works out of the apartment. You like the fact of having an adult around your premises because you have had some issues with neighbor kids being rowdy and figure the kids will be less of a problem with an adult being around during the day. On their application they showed ample income to afford the rent and they seem like a really nice couple so you decided there was no need verifying credit history, previous rental history or if any evictions were recorded against them.

Now read below the different types of background checks that you should have performed and using the scenario above you will quickly understand what unfavorable consequences could occur if this is not done.


Credit check
A thorough credit check report will show past to present payment history of applicant. This will give you good insight into an applicants ability to manage money and debt. All credit score reports come with what is called a "FICO" rating. The "FICO" rating or score runs between 305 and 850, with 850 being the best. A general rule of thumb is 650 and up is good, 550 to 649 is open for review, and 549 or less may not be a suitable applicant. Evictions, bankruptcies, mortgage defaults and judgements may also show up on a thorough credit check report.
Note, Individual landlords may no longer receive copies of credit reports, or actual credit scores, of an applicant. The Tenant Credit Check report will simply inform you when an applicant passes your minimum credit grade that you have chosen for your property. A good alternative is to use a property management company or real estate agent to perform this for you.

Employment verification
Never assume an applicant will tell you the truth whether it be verbal or written down on an application form. It's your responsibility to verify this information with the proper source. In this case it would need to be verified through the companies human resource department or other employment authority. Also you may verify employment income by requesting to see their last few months pay stubs. This can confirm income is from legitimate sources and not illegal activities.

Criminal background check
Criminal Report includes felonies, misdemeanors, traffic violations, and incarcerations. The information in a Criminal Report comes from State records, Court records, and Departments of Correction records. Searches are made using first name, last name, and date of birth. A sex offender or drug trafficking could jeopardized a whole community especially in a multi-family atmosphere where you must make your property safe and habitable for all.

Eviction check
This report is run by using the applicants SS# and name. It pulls the past addresses associated to him/her and searches the housing courts database for any filings or evictions matching the name of your applicant. Evictions Report can include all court-reported evictions for all 50 states.

Rental history
It's always good practice to contact any previous landlord. Sometimes if the landlord is trying to get a tenant to leave their apartment they may say favorable things about the tenant only so that you will take them. But, you can at least verify the accuracy of the information such as lease terms, rent amount, occupants living there etc. Also drive by previous living quarters for further verification.

Karen McDaniel

Property Management and Vendor Network

Make Finding a Property Management Co. Easier on Yourself by Asking the Right Questions, Part 3 of 4

This is Part 3 of a 4 Part Series where we have outlined important questions to ask a property management company before hiring them.





Part 1 Company Credentials
Part 2 Property Management Services

Part 3 Property Management Fees

Part 4 Tenant Screening Process

Rental management companies come in all sizes, capabilities and expertise. Just because one works for one investor does not necessarily mean they will work for you. You need to know some important questions to ask a company during your initial interview process regarding fees they charge for their services. The answers to these questions will give you a good grasp of the total management costs you will incur in exchange for the managing of your rental property. By knowing the answer to these questions before hiring them could prevent future misunderstandings and unforeseen expenses.

Part 3 - Property Management Fees

Unlike a real estate sales commission, there is no standard commission that is charged for rental management services. Usually you will see commissions ranging from 4-15% of the gross monthly rental income. In addition to a commission fee you could be looking at any or all of the following fees:

-Lease-up or set-up fee

-Lease renewal fee

-Advertising fees

-Mark up charges on repair work

-Early cancellation fee

-Service call fees..etc


Do yourself a favor and get familiar with asking the questions below when interviewing a property management company. After you are under contract with a management company is not the time too find out how much your expenses will be. And some of these fees can be negotiated to meet your needs.


Commission
How much do you charge as a monthly commission? Do you charge this if my property is vacant or only when occupied?


Lease-Up or Setup Fee
Do you charge an initial set-up fee, and when do I need to pay this? If I cancel prior to you placing a tenant in my property is this fee refundable?


Lease Renewal Fee
Do you charge me a fee when you renew a tenants annual lease that is soon to expire?


Advertising Costs
Who pays for advertising costs? If the property manager does, ask where they will advertise. If it means placing your listing on their own web site and other free online classified sites you may not be getting your monies worth. There are many good online rental or tenant resources that will bring in qualified tenants for a reasonable fee and you will want to consider these. Nothing is worst than having your property vacant, bringing in no money only because you or your property manager skimped on advertising.


Maintenance Mark-up Charges
Do you charge a "mark-up" or percentage over the actual costs of any repair work, service calls etc?
Just one of those things to be aware of, as these all eat into your profits.


Early Cancellation Fee
Is there a cancellation fee if I decide to cancel my contract with your company if after 3 months no tenant?
Note: If the management company has invested advertising dollars and lots of time and effort in searching for a tenant, they may well deserve to be reimbursed for their out-of-pocket expense.


All of the above are the most common fees to be charged for property management services. Asking these questions will make your job a lot easier when it comes down to hiring a company to manage your rental property.


For a detailed explanation of all of the above fee terms go to Property Management Fees

Karen McDaniel

Property Management and Vendor Network

The cost of rehabbing your investments - Expect it

Author: Joe Lavid of Property Management Inc. of SW Florida

I have a client "venting" his frustrations about the expense of upgrading his newly purchased duplex - a "foreclosure” that he rehabbing to get ready for tenants.

Does he have the right to vent?

The duplex purchased was for $55,000, and to get it ready for tenants he will need to spend about $3,500. The property 2 years ago sold for $240,000, overpriced maybe - but the revenue he will be receiving on the 2 units will be in excess $1300 a month.

People, who invest in these types of properties (foreclosures), do so in hopes of making good returns from them. Trying to set aside funds and budgeting is very important when dealing with a investment property. These costs include the cost of repairs, taxes, and advertising. The repair costs and taxes depend upon the age of the building and a proper provision for them has to be kept while determining the return from the realty.

Does he need a property manager? Well he resides in Europe, so definitely! For others, well the thought of dealing with tenants, preparing leases, taxes, maintenance, credit screening, annual reports, and eviction to name a few would be something to consider when taking a investment property.

Learn more about Property Management