Bracing for Winter: Winterizing Property

As cold weather approaches, there are chances of interior or exterior pipes getting frozen. To avoid freezing, the following precautions need to be taken. We do alert tenants to complete the following to work together to avoid any property damage from the cold winter weather.

• December 22nd: Open until 12:00 PM

• December 25th & 26th: Closed

• December 29th: Open until 12:00 PM

• January 1st & 2nd: Closed

Fire Prevention Tips: Safeguarding Your Investment and Tenants

October is Fire Prevention Month, a time to focus on fire safety. We, as property managers & owners, have a duty to keep properties and tenants safe. Let's work together to protect our investments and the residents. Fires can be devastating, both emotionally and financially, but with proactive measures, we can significantly mitigate the risks.

Here are some immediate fire prevention tips, perfectly timed for this Fire Prevention Month:

1. Prompt Inspection of Alarms and Detectors:

   - Smoke Alarms and Carbon Monoxide Detectors: Regularly inspect and test alarms on every floor to ensure they function correctly. Swiftly replace batteries and faulty units.

2. Emergency Equipment Ready:

   - Fire Extinguishers: Confirm that fire extinguishers are easily accessible, especially in the kitchen and garage. Tenants should be educated on their locations and usage.

3. Electrical Systems Check:

   - Wiring Inspection: Conduct a thorough examination of your property's electrical systems. Promptly address any anomalies or potential hazards to prevent electrical fires.

4. Outdoor Spaces:

   - Clear Pathways: Keep outdoor pathways clear to ensure swift evacuation if necessary.

5. Regular Property Inspections:

   - Routine Checks: Conduct regular property inspections, paying close attention to potential fire hazards. Address issues immediately to reduce risks.

6. Stay Prepared:   

   - Emergency Contacts: Ensure all tenants have access to emergency contact numbers, fostering a sense of security and preparedness.
 

By actively implementing these measures, we not only protect our investments but also create secure environments for our valued tenants.

Officially Launching in 2024: The Resident Benefit Package!

We're excited to announce that this game-changing program will officially launch on January 1st, 2024!

Starting from the new year, the Resident Benefit Package will be automatically included for all new tenants in our managed properties. For our existing tenants, this exciting package will be introduced upon lease renewal, ensuring everyone can benefit from these exceptional benefits. We are genuinely excited about this upcoming launch and believe it will further strengthen the positive rental experience we offer.

We are dedicated to ensuring the success of this initiative, providing top-notch services to both you and your tenants. If you have any questions about how this new package will impact your property or if you'd like more information, please don't hesitate to reach out to us.

PropertyWize Realty | Invest Secured By Real Estate

Should I Rent to Section 8 Tenants? A Guide to the Housing Choice Voucher Program

The term “Section 8 tenants” refers to renters who qualify for the government’s Housing Choice Voucher Program.

• How do people qualify, and what exactly is this program?
  • Renters who qualify must have an extremely low income, and if they do, the program helps them afford local housing by paying for 33%-75% of the rent. Some people in this program are elderly, some are disabled, and some simply have little or no income.

Landlords are divided on whether they should or must rent to Section 8 tenants, and for good reason. The laws vary state to state, and even county to county.

The Fair Housing Act (FHA), a federal law, doesn’t prohibit landlords from discriminating based on Section 8. However, some states, counties, and municipalities do, often by prohibiting discrimination based on “source of income” or “public assistance status” – considering them a “protected class.”

Here’s an overview of the pros and cons.

Pros & Cons of the Section 8 Program

• Section 8 Waitlist
  • Pro: Guaranteed Rent

    • “Guaranteed Rent” – Two words that are music to a landlord’s ears. It almost sounds too good to be true.

      But, under the Section 8 program, you are guaranteed at least a portion of the rent to be paid to you by the government – the U.S. Department of Housing and Urban Development (HUD), to be exact.

      And because you’re dealing with the federal government, this could be a mixed bag. Which brings us to our first two cons...

  • Con: The Approval Process

    • As with any government agency, red tape is involved, and Section 8 is no different.

      First, you must fill out paperwork, and then your local Public Housing Authority, which operates under the Housing Choice Voucher Program, must approve your rental property.

      Then, your property must undergo an inspection, and if approved, it must continue this type of inspection annually.

      To pass, your property needs to meet acceptable health and safety codes. And whether your house is approved could depend on how stringent the inspector is in your area (meaning – you should expect to repair minor issues).
      
      Also it’s important to note, the inspection process includes inspectors that typically can make their own rules when it comes to deciding which items that needs repairs. In our experience, there is no real way to be proactive since every inspector is completely different. 

  • Con: Subject to Rent Control

    • If you are approved, the Housing Authority then reviews your lease and often restricts how much you can charge for rent. In other words, you can’t necessarily charge what you like.

      You can’t charge whatever you want.

      You generally can only charge what other properties in your area charge. So your property will be subject to a sort of appraisal process to determine rent.

      Note that sometimes, depending on the area your property is in, you might receive more rent through HUD than you would by going through the open marketplace (but I wouldn’t count on it).

      HUD then agrees to pay a certain percentage (this varies by case) of the rent. Your tenant pays the remainder, which usually amounts to 30% of their gross income.

      Generally, a tenant only pays about 30% of the rent amount.

  • Pro: Long-term Tenants

    • Many Section 8 tenants, after being approved for the program and after finding a place to rent, tend to stay put for a while.

      Moving is allowed, but Section 8 tenants need to notify the Housing Authority, give you proper notice, and find another place. In other words, it’s a hassle.

      Plus, when Section 8 tenants sign a lease, it’s generally for at least one year.

  • Con: You Hurry Up and Wait

    • It usually takes a long time to go through the Section 8 process.

      By the time you fill out the paperwork, get an inspector to come out, make necessary repairs if required, get the inspector to come out again to check your repairs, get a tenant in, and then receive rent, you might have been able to rent the place to someone else sooner. Meanwhile, you’re receiving no income.

      The vacancy caused by delays due to red tape usually outweighs any benefit of the program.

Section 8 tenants have a bad reputation. And just like any stereotype, there could be some truth to it, but every case is different.

People complain that Section 8 tenants are masters at manipulating the system, and many landlords are left holding the bag.

As with all tenants, there are so many things that can go wrong. For example:

• They lose their voucher, and then won’t leave,
• They destroyed your property, and the housing authority won’t compensate you,
• They moved extra people in despite that being against the rules.
• They become a nuisance to their neighbors.
• They may be guilty of other lease violations.

Some people, whether they are temporarily down on their luck, are disabled, or live on a fixed income, might not be able to afford housing without some help, but they could make wonderful tenants.

The key is for you to run a background check and credit report, and to call prior landlords. Do your due diligence before accepting any tenant.

• But just as there are horror stories with Section 8 tenants, there are good experiences too.

Even with properly vetting tenants, there is still no guarantee that nothing will go wrong when dealing with people. The best offense is to protect your investment by working with a reputable management company as well as purchasing additional insurance for yourself.

Some Municipalities Require Participation

Some municipalities require landlords to accept Section 8 tenants, meaning that whether you want to deal with a government agency or not, you have to, even though this should be the landlord’s decision.

For example, if a Section 8 tenant fills out a rental application in a municipality that requires landlords to accept it, and if that applicant passes your screening process, you need to start the ball rolling to have your property approved… unless you rent it to another qualified applicant first. (After all, the government is not known for moving fast.)

Even California and the city of Chicago protect people in the program; however, many states like Colorado allow a landlord to “opt-in,” rather than being required to participate.

Note that you don’t have to accept an applicant just because they have a Section 8 voucher. In jurisdictions that require you to take Section 8 tenants, you are encouraged to screen them as you would anyone else.

You need to contact your local or state fair housing agency to determine what the law is in your jurisdiction.

Pros and Cons of a Home Warranty for Rental Property

A home warranty offers several advantages; but, they also have some disadvantages too. 

Pros of a Rental Property Home Warranty

They provide flat rates for repair which can save money. They bring good selling points in getting prospective tenants. They contract with the best local contractors to make repairs. The cost of a rental property home warranty and service calls are tax-deductible.

Cons of a Rental Property Home Warranty

They don't have a real sense of urgency and if the repair is considered an emergency, a delay from the appliance company can cost you a good tenant, or worse liability issues resulting in legal action. They spend as little time and money on your home as possible, so they may choose to repair problems instead of replacing damaged items such as air conditioners and electrical systems. Since repairs do not always last as long as replacements, you could face more expenses soon. Some items may not be covered by the warranty without an additional policy upgrade cost. They usually spend a lot of time to get a simple repair done and if you need to make a claim, the process can be time-consuming too.

A home warranty can be a helpful tool for those who want added protection against the cost of repairing or replacing certain home appliances and systems. However, before deciding whether a home warranty is the best option for you, it is essential to carefully consider its costs, coverage, and restrictions. There are numerous drawbacks to purchasing a home guarantee. 

Twelve Proactive Resolutions For Investors

12 resolutions to ensure the success of any investment, at any time of year.

1. Review your property insurance annually. 
   • While it is critical to keep insurance up-to-date, you must also keep up with the numerous changes that impact it. Nobody wants to discover that their insurance has expired or is insufficient.
2. Organize tax information on investments.
   • Begin preparing investment records for your tax accountant as soon as possible to avoid overlooking any vital deductions.
3. Review your ROI.
   • Make time to review your return on investment (ROI) for each property once a year. Knowing your income and expenses might help you plan for numerous other resolutions discussed in this article, such as a maintenance plan or even purchasing a new investment.
4. Consider precautionary measures.
   • It is not realistic to believe that your investment property will not require repairs. Preventative maintenance can help you avoid expensive and unnecessary major repairs.  Make a budget for routine repairs while creating your annual budget. During the holidays, no one wants that emergency maintenance call.
5. Make long-term maintenance plans.
   • Rental property usually considered as a long-term investment. Roofs will age, carpets will deteriorate, water heaters may fail, and so on. Creating a budget for major costs will help if they occur or if an unexpected emergency occurs.
6. Examine your investment portfolio.
   • Perhaps this is the time to think about selling your home and investing in another. It could also be an excellent moment to add a new property to your portfolio. Contact us for a realistic rental value for any property you are considering purchasing.
7. Review current tenancy.
   • Check your Owner's Portal regularly for any updates from us. It's possible that a lease renewal is on the horizon, and you'll need to encourage a tenant to stay. It may also be time to serve a tenant with a notice. Knowing what is going on in your property is preferable than being taken by surprise.
8. Keep up with legislation.
   • When it comes to investment property, there is always something occurring in the courts, such as bedbugs, hoarding, mold, and so on. We will try to make every effort  to keep you informed of any major developments that may have an impact on you. This email newsletter is being sent to you because we want to keep you updated. It is critical that you stay current on legislation that may affect your property.
9. Always adhere to Fair Housing.
   • Fair Housing impacts many aspects of investment property, including advertising, showings, applications, and renting. Investors who violate Fair Housing laws and regulations may face severe penalties. Following Fair Housing regulations is critical to a successful investment.
10. Never, ever retaliate.
    • Unfortunately, tenants can be incredibly annoying and difficult. A property owner may become enraged as a result of this. However, it is critical that the court not interpret any action taken by a property owner as retribution. This is a sure way to lose in court. Before taking any action, consult with us to avoid triggering a legal problem or incurring financial harm.
11. Utilize risk management techniques.
    • All of the prior resolutions are self-evident. They are also techniques to exercise risk management and protect your investment, if you think about it. When you use this approach, you boost your chances of making a highly profitable investment.
12. Be a part of the team
    • It is essential for property owners and property management companies to work together as a "team." We fight to preserve your investment, and we are more successful when you consider us an integral member of the team. Please let us know if you have any questions or issues, and we will gladly assist you.

Turnover Management Process