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Tag: tenant issues

Becoming a First Time Landlord

Written by MerGo Group on . Posted in Property Management Insights. No Comments on Becoming a First Time Landlord

Becoming a first-time landlord can be a rewarding but challenging venture. Here are some key steps and considerations to help you get started:

  1. Educate Yourself:
    • Familiarize yourself with landlord-tenant laws in your area. Each jurisdiction has its own rules, and it’s crucial to understand your rights and responsibilities.
    • Learn about fair housing laws to ensure you don’t discriminate against potential tenants.
  2. Financial Planning:
    • Assess the cost of ownership and see if the rent can cover those costs and leave room for anything unexpected as well as making a profit.
    • Costs include mortgage payments, property taxes, insurance, maintenance repairs, landscaping, snow removal, utilities that you would pay for (water/sewer usually), and vacancy if the unit isn’t rented during the transition.
    • Set aside funds for any other unexpected expenses (roof, appliances, windows, etc).
  3. Property Selection:
    • Choose a property in a desirable location. Consider factors such as proximity to public transportation, schools, and amenities.
    • Evaluate the property’s condition and any necessary repairs or renovations.
  4. Legal Formalities:
    • Draft a comprehensive lease agreement that outlines terms and conditions, rent amount, payment due dates, and other important details. Make sure to use a proper legal lease that will uphold in court.
    • Screen potential tenants carefully. This includes checking references, credit history, income, and conducting background and internet checks.
  5. Understand Your Responsibilities:
    • Be prepared to handle maintenance and repair issues promptly. A well-maintained property attracts and retains good tenants. It also reduces tenant issues, rent withholding, and other legal liabilities.
    • Stay informed about local building codes and safety regulations.
  6. Set the Right Rent:
    • Research rental prices in your area to determine a competitive rent for your property.
    • Consider factors like property size, amenities, and location when setting the rent.
  7. Insurance:
    • Obtain landlord insurance to protect your property from potential damages and liabilities. Regular homeowner’s insurance does not cover rental activities and if anything happens when a renter is living there then your insurance will not cover it if you do not have the correct comprehensive policy.
  8. Create a System for Rent Collection:
    • Establish a clear and consistent method for rent collection, whether it’s through checks, electronic transfers, or online platforms.
  9. Emergency Fund:
    • Build and maintain an emergency fund to cover unexpected expenses like repairs, maintenance, or periods of vacancy.
  10. Communication:
    • Maintain open and clear communication with your tenants. Respond to their concerns and requests in a timely manner. Be kind, professionally, understanding at all times without having to give into every demand.
  11. Networking:
    • Connect with other landlords, join local landlord associations, or attend real estate networking events to learn from experienced landlords and stay updated on industry trends.
  12. Tax Implications:
    • Understand the tax implications of being a landlord. Keep accurate records of income and expenses for tax reporting.

Remember, being a landlord requires ongoing commitment and responsibility. Staying informed, being proactive, and treating your tenants fairly can contribute to a successful and rewarding experience. If needed, consult with legal and financial professionals or a property manager for advice tailored to your specific situation.

How to Send a Lease Non-Renewal Notice

Written by MerGo Group on . Posted in Property Management Insights. 3 Comments on How to Send a Lease Non-Renewal Notice

Sending a non-renewal notice to a tenant is a formal process that must comply with local laws and the terms of the existing lease agreement. Here’s a general guide on how to send a non-renewal notice:

  1. Review Lease Agreement:
    • Thoroughly review the existing lease agreement to understand the terms and conditions related to lease termination and non-renewal. Make sure you are within your legal rights to issue a non-renewal notice.
  2. Check Local Laws:
    • Familiarize yourself with local and state laws regarding lease termination and non-renewal. Different jurisdictions may have specific requirements, such as the notice period and the information that must be included in the notice and/or provided to the municipality.
  3. Decide on Non-Renewal:
    • Most likely you are not obligated to give a reason to not renew the lease. If the lease has a termination date it’s best to say that a renewal will not be offered and the tenants must move out in accordance with their lease end date.
  4. Prepare the Non-Renewal Notice:
    • Draft a formal non-renewal notice. Include the following information:
      • Tenant’s name and address
      • Property address
      • Date of the notice
      • Statement indicating that the lease will not be renewed
      • Reason for non-renewal (if required by local laws)
      • Any specific actions required by the tenant, such as moving out by a certain date
      • Contact information for further clarification or questions
  5. Provide Adequate Notice:
    • Ensure that you provide the tenant with the required notice period as per the lease agreement and local laws. Common notice periods are typically 30 or 60 days before the end of the lease term. You could provide longer so the tenants have time to find a new living situation and you have time to find a replacement tenant.
  6. Deliver the Notice:
    • Choose an appropriate method to deliver the notice. Common methods include delivering it in person, sending it via certified mail with return receipt requested, or delivering it through an electronic method if agreed upon in the lease.
  7. Retain Documentation:
    • Keep a copy of the non-renewal notice and any proof of delivery. Documentation is crucial in case there are disputes or legal issues in the future.
  8. Follow Up:
    • Follow up with the tenant to ensure they received the notice and understand the terms. Be available to address any questions or concerns they may have. Afterall, this might come as a shock to the tenant especially if they feel entitled to or expect a renewal. Best to stay calm and just explain that it didn’t work out but you wish them the best of luck and are happy to help if possible.
  9. Comply with Local Laws and Lease Terms:
    • Ensure that you are following all applicable local laws and the terms outlined in the lease agreement. Non-renewal notices must adhere to legal requirements to be valid.
  10. Plan for Transition:
    • As part of the non-renewal process, consider preparing for the transition, such as inspecting the property, returning any security deposits after move out and no damages or unpaid rent, and arranging for the tenant’s move-out.

Always consult with legal professionals or property management experts to ensure that your non-renewal process is in compliance with local laws and regulations. Laws can vary, so it’s important to be aware of the specific requirements in your jurisdiction. Remember, this is different from a notice to quit or other eviction notices. We are not lawyers and this is not legal advice nor intended to be, but rather a general guide that can help. Always seek a lawyer for legal advice.

How Residents and Managers Can Retain a Good Relationship

Written by MerGo Group on . Posted in Property Management Insights. No Comments on How Residents and Managers Can Retain a Good Relationship

Tenants and property managers work to maintain a professional and respectful relationship to ensure a positive living experience for everyone involved. Here are some tips on how tenants and managers should treat each other to work cohesively.

  1. Communication:
    • Keep open and clear communication channels. Tenants should report any maintenance or other issues promptly, and notify their managers of any changes in your contact information.
    • Communicate politely and professionally, whether it’s in person, over the phone, or in writing; as this is a professional work setting environment and relationship.
  2. Respect Property Rules:
    • Familiarize yourself with the property rules and regulations. Abide by them to maintain a harmonious living environment for all residents. Managers are hired by landlords to follow and enforce the lease and property rules and laws that tenants are required to follow.
  3. Pay Rent On Time:
    • Pay your rent on time as per the terms of your lease agreement. Timely payments contribute to a positive relationship with your property manager and landlord.
  4. Maintenance Requests:
    • Submit maintenance requests through the appropriate channels provided by your property manager. Clearly describe the issue and provide any necessary details to help them address the problem efficiently. The goal of the management team is to fix the problem quickly and correctly.
  5. Keep the Property Clean and Well-Maintained:
    • Take care of the property as if it were your own. Keep it clean, report any damage promptly, and follow any guidelines for maintaining the property. Landlords and managers value residents who value their property and the better maintained a unit the longer the relationship can last usually with lower rent increases making all parties happy.
  6. Follow Lease Terms:
    • Adhere to the terms outlined in your lease agreement. This includes respecting noise levels, parking regulations, and any other stipulations set forth by the property management and landlord. The management company is required to follow the lease terms and enforce them as much as the tenant is required the same. Landlords hire management companies to enforce the lease.
  7. Be Courteous:
    • Treat property management staff with courtesy and respect. They are there to help and ensure the smooth operation of the property in return the manager will always treat the residents with respect and courtesy. One of the biggest things to remember is that managers are there to fix problems, not create them, and while problems arise that are unanticipated the team works hard to resolve them quickly and correctly. Although most people don’t understand, the team does empathize and sympathize with issues that arise as they too have lived through similar issues and problems.
  8. Notify in Advance:
    • If you plan to move out or have any changes in your circumstances that might affect your tenancy, provide advance notice to your property manager. This allows them to plan accordingly.
  9. Understand Their Role:
    • Recognize that property managers have responsibilities and tasks that go beyond individual tenant concerns. Be patient and understanding if they are dealing with multiple issues simultaneously.
  10. Feedback:
    • If you have feedback, positive or negative, communicate it constructively. Providing feedback helps property managers understand tenant needs and improve their services.

Remember, a positive and cooperative relationship between tenants and property managers is beneficial for both parties. By treating your property manager with respect and fulfilling your responsibilities as a tenant, you contribute to a positive living environment and make the overall experience better for everyone involved.