Obama's Cautious Approach to Reducing China-Taiwan Tensions
In recent Congressional testimony, Retired Admiral Eric McVadon, our former defense attaché in Beijing, revealed that how one forecasts the future of China is often a function of one’s leaning, either toward ‘China bashing’ or ‘panda hugging’. So far, optimism and pessimism about the progress in Beijing’s negotiations with Taiwan seem to be evenly balanced. Both these views seem to have created a healthy debate among President Obama's advisers.
Rental Property Tax Benefits
People who own residential rental properties are afforded numerous tax benefits. You are allowed to offset your rental income with rental expenses. If you own rental property it is critical that you understand the tax advantages afforded to you that will enable you to protect your income and lower your tax burden.
Help for the Rental Property Owner - Is There Such a Thing
We all know how difficult it's been in this economy The real estate market has taken a huge hit with record foreclosures, a failing mortgage industry and homeowners seeing their home equity disappear
A Guide to Buying your First Rental Property and Becoming a Landlord
I have read a lot about how you have rule with an iron fist to keep your tenants in line. Our philosophy is much more laid back, and it has worked out well for us. Every property is different, but this was our experience.
In today's America, most landlords own only a few rental properties, and managing a rental property and lease agreement is merely something most landlords do as a side investment while working a full time job and raising a family. However, landlords fitting this description tend to invest only minimal time in their rental properties, which can lead to greater headaches and frustrations down the road. By following just a few rules, most landlords can minimize the headaches associated with being a landlord, which far outweighs the initial investment of time.
Rule 1: Proper Screening with a Rental Application
The first step in screening tenants is having them fill out a full rental application, which includes an authorization to perform background/credit checks. After interviewing lease prospects, collect a rental application fee, and spend it on pulling credit reports. Additionally, be sure to verify their income and employment, and their rental payment history.
Rule 2: Use a Written Lease Agreement with Your State's Legal Language
Every landlord is tempted to either use a verbal lease agreement or pick up a cheap one from the office store, but it's an urge that must be suppressed. The lease agreement will be the first document referenced, if you and your tenant have a disagreement, so you want it to be comprehensive and clear. Additionally, you want it to hold up in rent court, should you have to evict the tenants for breach of lease agreement.
Rule 3: Address Maintenance & Repairs Immediately
There will be many repairs and updates that your tenants request, many of which you'll decide not to do, but you MUST respond quickly to all repair requests, whether to perform them or to inform the tenant that you don't currently have the budget for them. Many repairs can prevent other damage if they're addressed quickly (such as a roof leak), which means that the faster you respond, the lower the cost. Other repairs may prevent disputes and litigation, if performed quickly (such as the furnace dying in January), so be sure to act quickly and decisively on all repair requests, even if your answer is "no."
Rule 4: Resolve Disputes with Your Tenants Immediately
Landlords and tenants will have disagreements over the years, no matter how reasonable either of them may be. The trick is to prevent a dispute from becoming a lawsuit, which will cost you money and time even if you eventually win it. When a dispute arises, sit down with the tenant in person, with a copy of the lease agreement handy to reference as needed, and try to find a resolution on the spot. It's worth noting that some tenants are simply a disaster waiting to happen, and it may be cost effective to just help them relocate to someone else's rental property, allowing you to start over with a better tenant.
Rule 5: Keep Written Copies of Any Communication with Your Tenants
While you should have some conversations with your tenants in person (such as resolving disputes and raising the rent on the renewal lease agreement), it's extremely important to also put any conclusions in writing and sign them with the tenant. This will create a paper trail that can be referred to later on to resolve disputes before they become lawsuits, or act as evidence in court if need be.
Rule 6: Automate Rental Collection like Clockwork
Your rental business is a business, like any other, and should run in a systematic manner. The moment a tenant becomes late on rent, they should receive a notice that paves the way for you to file eviction, and as soon as you can legally file eviction you must file for it. By doing so, you can send a strong message to your tenants that you take property management seriously, and that you will not tolerate breaches of the lease agreement. Your tenants will perform better in the future, after seeing that you mean business.
No matter how many rental properties you own, following these simply rules will help each lease agreement perform better, and reduce your costs as a landlord. Being a landlord may be a side investment project for you, but you need to treat it as a priority when your rental properties demand your attention, and by doing so you can avoid the majority of unnecessary costs and landlord - tenant disputes and litigation.
Brian Davis is a traveling landlord and photographer who owns several rental properties. He contributes to online real estate publications such as NuWire Investor and EZ Landlord Forms, who provide real estate news, free rental application forms, and custom lease agreement contracts for each state.
