Property Management Kit For Dummies, 4th Edition

Tramadol Ordering Title Page Copyright Page Table of Contents Introduction About This Book Foolish Assumptions Icons Used in This Book Beyond the Book Where to Go from Here Part 1 So You Want to Be a Landlord? Chapter 1 Residential Property Management Understanding Property Management Considering the benefits Confronting the icky parts Examining Types of Real Estate Renting Your Property Preparing the property Knowing how much to charge Capturing prospects’ interest Turning interest into property visits Picking your tenants and signing the deal Getting Your Hands Dirty: Managing the Property Moving tenants in and out Collecting rent Keeping the good tenants Dealing with troublesome tenants Maintaining the property Protecting your investment Chapter 2 Do You Have What It Takes to Manage Your Own Rental Property? Understanding That Managing Residential Rental Property Is a People Business Identifying the Types of Real Estate Owners The inadvertent rental property owner The buy, fix, and flip or refinance owner The long-term investment rental property owner Recognizing the Advantages of Owning Rental Property Eyeing the Unique Characteristics of a Good Manager Realizing that good management makes a difference Separating your personal style from sound management Managing your time Delegating management activities Knowing that your style is unique Being Honest with Yourself about Your Skills and Experience Chapter 3 Managing Your Residential Property Yourself or Hiring a Pro Managing Your Rental Yourself The advantages The drawbacks The distance factor Exploring Professional Management Eyeing the pros and cons of using a pro Understanding what a good property manager does Telling the good from the bad Compensating your property manager Making sense of management agreements Being aware of the tax consequences Chapter 4 Taking Over the Property Knowing What to Get Up Front A comprehensive list of personal property included in the sale A copy of the entire tenant file of each current tenant A seller-verified rent roll and list of all tenant security deposits A copy of all required governmental licenses and permits A copy of all the latest utility bills A copy of every service agreement or contract A copy of the current insurance policy and loss history Working with the Current Tenants During the Transition Meeting the tenants in person Inspecting the property Inspecting the rental unit Using a new lease or rental agreement Evaluating the current rent Part 2 Renting Your Property Chapter 5 Getting Your Residential Rental Property Ready for Prospective Tenants Viewing Your Rental Property from a Prospective Tenant’s Shoes Paying attention to the exterior and common areas Making sure that the interior is up to snuff Preparing Your Rental Unit the Right Way General cleaning Maintenance Painting Final cleaning Carpet or floor-covering cleaning Using Outside Contractors Chapter 6 The Big Three of Property Management: Rent, Security Deposits, and Rental Contracts Setting the Rent Examining the return on your investment Conducting a market analysis of rents in your area Coming Up with a Fair Security Deposit Figuring what you can legally charge Keeping security deposits separate from your other funds Avoiding nonrefundable deposits Paying interest on security deposits Increasing (or decreasing) deposits Considering security deposit alternatives Choosing the Type of Rental Contract You Want Contemplating a lease Eyeing a periodic rental agreement Getting your contract in writing Chapter 7 Formulating a Marketing Plan Developing a Successful Marketing Plan Determining your target market Thinking about what your renters stand to gain from your property Understanding the Importance of Good Advertising Eyeing the different approaches Knowing which approach gives you the most bang for your buck Getting your property to rent itself Being Aware of Fair-Housing Laws Chapter 8 FOR RENT: Effectively Using Advertising to Generate Interest Analyzing Your Advertising Options Talking the talk: Word-of-mouth referrals Showcasing your site: Property signs Broadening your horizons: The Internet Reading all about it: Newspapers Papering the neighborhood: Flyers Creating chat: Community bulletin boards Going where the jobs are: Local employers Meandering through other tactics to try Chapter 9 Handling Prospects When They Come A-Calling Understanding Why First Impressions Are Important Standing out from the crowd Being professional and well organized Valuing Phone Conversations Preparing for Rental Inquiry Phone Calls Being prepared with basic phone techniques Answering the phone Providing and obtaining the basic info Selling the prospect on your property Prequalifying the prospect over the phone Handling phone objections Converting phone calls to rental showings Planning for Open Houses and Walk-Throughs Holding an open house Scheduling individual appointments Providing directions to the property Chapter 10 Strutting Your Stuff: Making Your Property Memorable Showing Your Rental Unit Showing a vacant rental Showing an occupied rental Taking the First Steps to Get the Renter Interested Prequalifying your prospect during the rental showing Resolving your prospect’s objections Convincing your prospect Inviting your prospect to sign on Having your prospect complete a rental application Holding your prospect’s deposit Developing priority waiting lists Handling Mandatory Disclosures and Environmental Issues Lead-based paint Asbestos Radon Sexual offenders Chapter 11 Eenie, Meenie, Miney, Mo: Selecting Your Tenants Understanding the Importance of Screening Establishing Tenant Selection Criteria Why having criteria is important How to create your criteria Verifying Rental Applications Confirming identity Going over occupancy guidelines Investigating rental history Validating income sources Reviewing credit history Checking criminal history Talking with all personal references Dealing with cosigners Making your final decision Notifying the Applicant of Your Decision Avoiding Housing Discrimination Complaints The ins and outs of fair housing Steering and chilling Children Reasonable accommodations Reasonable modifications Companion or service animals Americans with Disabilities Act Sexual harassment Part 3 The Brass Tacks of Managing Rentals Chapter 12 Moving In the Tenants Establishing the Move-In Date Meeting with a Tenant Before Move-In Covering the rules with your new tenant Reviewing and signing documents Collecting the money from your tenant Inspecting the property with your tenant Giving your tenant an informational letter Distributing the keys to your tenant Setting Up the Tenant File Preparing a Welcome Package for Your New Tenant Chapter 13 Collecting and Increasing Rent Creating a Written Rent Collection Policy When rent is due Where rent is paid How rent is paid Dealing with Rent Collection Problems Collecting late rent Charging late fees Handling returned rent payments Dealing with partial rent payments Serving legal notices Raising the Rent without Sending Your Tenants Running Figuring out how to raise the rent Keeping your tenants (relatively) happy Chapter 14 Keeping the Good Tenants (And Your Sanity) Knowing What Tenants Want Timely and effective communication Quick responses to maintenance requests Consistent respect for privacy Equal enforcement of house rules Fair rental rates and increases Recognizing the Ins and Outs of Renewing Leases Reducing your turnover Offering incentives for tenants to stay Following up with tenants after move-out Chapter 15 Dealing with Problem Tenants Recognizing and Responding to Common Tenant Problems Late or unpaid rent Additional occupants Inappropriate noise level Unsupervised children Exploring Alternatives to Eviction Negotiating a voluntary move-out Using mediation or arbitration services Taking your tenant to court Giving ’Em the Boot: Evicting a Tenant Serving legal notices Filing a formal eviction action Following the do’s and don’ts of the eviction process Collecting judgments Handling Unusual Tenant Situations Bankruptcies Illegal holdovers Broken rental contracts Assignments or subleases Departing roommates Domestic problems Tenant deaths Chapter 16 Moving Out the Tenants Requiring Written Notice of Your Tenants’ Move-Out Plans Providing Your Tenant a Move-Out Information Letter Walking Through the Unit at Move-Out Getting the 411 on the walk-through Paying the security deposit — or not Defining ordinary wear and tear Using a security deposit itemization form Keeping receipts for repairs and cleaning Deducting from the security deposit Dealing with Special Situations Forking out the dough: When damage and unpaid rent exceed the security deposit Having your facts straight: When disputes arise about the security deposit Reclaiming what’s yours: When the rental is abandoned Part 4 Techniques and Tools for Managing Your Residential Property Chapter 17 Working with Employees and Contractors Surveying the Ins and Outs of Bringing Employees Onboard Establishing job functions, work schedule, and compensation Screening employees Knowing your responsibilities Working with your manager Staying on the alert for danger signs Firing an employee Building Your Contractor and Vendor Dream Team Recognizing what to look for Avoiding common pitfalls Chapter 18 Maintaining the Property Recognizing the Importance of a Maintenance Plan Being Prepared for Maintenance Issues Emergency maintenance Preventive maintenance Corrective maintenance Custodial maintenance Cosmetic maintenance Handling Rental Property Maintenance Responding to tenant maintenance requests Keeping tenants from doing repairs Tracking the life span of your appliances Purchasing parts and supplies Chapter 19 Keeping Safety and Crime Prevention in Mind Tackling Crime in and around Your Rental Property Turning to crime-prevention programs Paying attention to tenant questions and complaints about safety-related issues Responding to crimes when they occur Taking Necessary Crime-Deterrent Precautions Keys and access-control systems Lighting Security services Prioritizing Tenant Safety With tempered glass With safe cords (or no cords) for window coverings With anti-tip brackets for free-standing ranges With appropriate enclosures and signage for swimming pools, spas, and hot tubs Addressing Environmental Issues Fire safety Carbon monoxide Electromagnetic fields Mother Nature’s wrath Mold Bedbugs Part 5 Money, Money, Money! Chapter 20 Two Necessities of Property Management: Insurance and Taxes Developing a Risk-Management Plan Cover Me, I’m Going In: Making Sure You Have the Insurance You Need Telling the difference among types of insurance coverage Determining the right deductible Talking with Tenants about Renter’s Insurance Understanding the Tax Angles Sheltering income with depreciation Minimizing income taxes Grasping (and appealing) property taxes Chapter 21 Financial Management and Record-Keeping Organizing Your Files Maintaining Property Records Taking Care of Business: Accounting Creating a budget and managing your cash flow Doing your accounting manually Using software for accounting Chapter 22 Finding New Ways to Increase Your Cash Flow Considering Nonrent Revenue Earning some cash with the wash: Laundry machines Stowing some dough: Storage Selling your space: Parking Converting the World Wide Web to cash: Internet access Cashing in on the ol’ dining room set: Furnished rentals Putting Lease Options to Work for You Taking Advantage of Government Programs The scoop on rental subsidy programs The lowdown on the Housing Choice Voucher program The 411 on rehabilitation loans Working in Niche Markets Taking another look at your pet policy Renting to students Catering to senior citizens Designating your rental units smoke-free Part 6 The Part of Tens Chapter 23 Ten Reasons to Become a Residential Rental Property Owner You Can Diversify Your Investments You Don’t Need Much Money to Start It Can Be a Second Income You Gain Tax Advantages Real Estate Holds Its Value You Get Leverage It Beats Inflation You Can Shelter Your Income You Get a Positive Cash Flow It Can Help You Retire Chapter 24 Ten Ways to Rent Your Vacant Rental Unit Maintain Curb Appeal Keep the Unit in Rent-Ready Condition Establish a Competitive Rent Offer Prospects a Rate Guarantee Provide Wireless Internet Access Offer Referral Fees Accept Pets Offer Move-In Gifts or Upgrades Contact Corporate Relocation Services Accept HUD’s Housing Choice Vouchers Appendix About the Online Kit Materials Index EULA