Pests, Bugs and Vermin

Small Critters Make Big Problems

Mosquitoes       Bed Bugs       Ants       Rodents       Roaches

As a property manager, I know that it's never too early to be thinking about pest prevention methods. Not only are many of these pests a pain for residents, but some can even be transmitters of disease, according to the Centers for Disease Control. Rodents, bed bugs and mosquitoes are just some of the major pests that can appear during the warmer months of the year and terrorize residents.

A good property management company should be proactive in pest prevention. Waiting until the last minute to take proper precautions could result in a nightmare. Maintaining a safe and pest-free rental property will also keep both tenants and landlords happy.

Property owners can safeguard against pest infestations by following these recommended tips by Orkin and the National Pest Management Association:

1.      Remove all unnecessary food and water sources.

2.      Seal cracks and crevices around doors and windows. Roaches can squeeze through the tightest openings.

3.      Keep gutters clear, and always keep direct water from downspouts away from the structure. Mosquitoes thrive in standing, stagnant water.

4.      Install screen windows and doors.

5.      Keep mulch at least 15 inches from the foundation. Also thin out vegetation. This could provide a breeding ground for mosquitoes and access for ants, roaches and termites to enter your home.

6.      Keep tree branches and other plants trimmed away from structures. Ants can access structures by traveling across branches that touch roofs and sides.

7.      Keep indoor and outdoor trash containers clean and sealed. Periodically rinse out dumpsters and keep lids closed.

8.      Maintain a one-inch gap between soil and wood portions of a building and pay close attention to dirt-filled porches and crawl spaces. Termites could have easy access to wood through cracks in foundation walls or if wood is in contact with the soil.

Don’t let a mild winter turn your rental property into a scene from a bad B movie. If  you suspect a problem, contact a qualified pest control professional who can recommend the best course of treatment. Is your rental property prepared for the likely early emergence of freaky pests?

This article originally appeared in Property Management Insider

Ten Top Benefits That Property Management Companies Provide to Homeowners

#1  Saving money with contractor relationships.

Good property management firms vet contractors, looking for the best prices and highly trained technicians who are licensed, bonded and insured. Outside services combined with an in-house maintenance staff and a capable supervisor to monitor routine inspections spot issues before they turn into major problems. Happier residents, fewer high-priced emergency repair bills.

#2  Increasing revenue with high-quality residents.

Screening residents preserves the revenue stream. Experienced property managers know how to spot red flags on applications and identify those applicants most likely to pay on time and take good care of the property. Advanced technology and screening tools allow leasing agents to evaluate dozens – or hundreds – of applicants thoroughly and quickly.

#3  Avoiding legal problems, financial pitfalls and scams.

Transunion reported that it costs landlords about $1,917 to evict a resident. The credit reporting agency recommends that property managers report rent payment history as a way to help renters improve their credit score and improve risk management for landlords.

A skilled manager understands landlord-resident laws governing resident rights, eviction processes and safety. A few other potential legal issues include:

• · Discrimination(Delete extra bullets on each point)
• · Leasing disclosures
• · Rent collection and late fees
• · Notification and access for inspection
• · Licenses and permits

#4  Boosting occupancy numbers.

A veteran property manager understands the importance of short vacancy periods. Managers offer owners access to proven marketing strategies and rate comparison tools to capture the highest return on investment based on community standards.

#5  Stabilizing higher retention rates.

Keeping residents happy is perhaps the best way to improve occupancy rates. A good property manager looks for ways to enhance the customer experience. That means renters have access to resident portals that make paying rent efficient and convenient. Maintaining a safe, attractive community and building relationships are two other ways managers increase satisfaction to curtail frequent turnover.

#6  Simplifying accounting and oversight.

An experienced property manager shares information about tax deductions and investment opportunities for owners’ consideration. While most managers don’t help owners prepare tax returns – that’s a job left to CPAs and tax professionals – they do provide tools like on-demand owner's statements and reports that keep owners informed about the income, expenses and maintenance requests.

#7  Defining the rent capture process.

Efficient rent collection processes ensure financial success for property owners and managers. The management team assumes responsibility for establishing and enforcing strict payment guidelines. That means homeowners don’t have to spend time and money chasing down the rent every month.

#8  Enjoying the benefits of property ownership without giving up personal freedom.

Some people invest in real estate as a means of funding an active retirement. With a reputable property management team minding the fort, owners can travel extensively, spend more time with family, or explore other hobbies and interests – without worrying about their property.

#9  Increasing property value.

Annual preventative maintenance inspections, repair or replace policies for appliances, and property upgrades to stay competitive – these protect your assets and increase value. Property managers stay in constant communication with owners about steps they can take to manage property value in the marketplace.

#10 Reducing stress.

The nine benefits above all serve to reduce the stress of property ownership. It’s not easy to put a price tag on living a life free from the hassles of being a landlord, but most would agree that less stress is definitely a valuable benefit.

Property Maintenance Can Be the Achilles Heel of Real Estate Investments

In the realm of real estate investment, property maintenance can be the weak point where profits are eaten up and headaches abound. Thus, proper property maintenance is a necessary evil in the business of property management. Necessary because naturally things may break, get old, worn, or require repair or replacement. Walls may need to be painted, carpets may need to be replaced, appliances can break down, and systems need occasional maintenance. Evil because all these cost money, and no one wants to spend more than he has to.

Property managers know there is a delicate balance between when to repair and replace and when to leave things as they are, postponing the inevitable for another season. A good property manager with a good property management company will make every effort to maximize the highest returns on the property. 

A wall may be a bit spotted or an appliance may show some wear and age, but when these factors will not negatively impact the anticipated rents a property will produce, then there may be no need to invest the funds now. On the other hand, when these issues become so pronounced as to have a negative impact on the appeal of the property, to the point where tenants are not willing to pay market rate, it's time to invest in some maintenance/repair.

Some landlords think that when they hand over their property to tenants in impeccable condition, then that is the way it should look when the tenants move out three years later. They want to forget that if they themselves had been living there for three years, they could not have kept it in the same condition either. Things will happen. Carpets can get dirty and spotted even in the family where there is a standing policy to take off shoes. Walls get dirty by dust and dirt adhering to them, not to mention children's sticky hands. Ovens used for cooking will get used and dirty. Heavy duty appliances like washers, dryers, dishwashers and refrigerators will sometimes break down.

What can be done?

In spite of the above reality, there are things a good property manager can do to save on expenses. This begins with a thorough walkthrough of the property with tenants at the time they move in, noting any items that are not perfect. It should be explained clearly to the tenants that they will be held responsible for anything not listed on the walkthrough document. That is, everything except normal wear and tear. For example, tenants would not be held responsible for worn areas in the carpet in high traffic areas but would be held responsible for spotting and stains.

The property should be inspected at least once or twice a year during the tenancy to make sure the tenants are taking good care of the property. Then at the end of the lease term, once the tenants have moved out, the property should be inspected again, comparing the notes when the tenants moved in with the notes when they moved out. Any issues not attributed to normal wear and tear should be charged to the tenants and subtracted from the security deposit.

Another thing to help mitigate the expenses associated with property maintenance is to have in place a home warranty for plumbing, electrical and major system failures. Some home warranties are better than others. See my previous blog on home warranties for more information on this topic.

Last, it also very important to have a good vendor list of inexpensive handymen, painters, appliance repair persons and other vendors who can be called upon occasionally to help maintain a property. Good property managers will surely keep an updated list of such providers to support their property management company.