Checking twice: Tenant Move in and out list

Even if you do not ask for a security deposit it is always a good idea to have an apartment condition statement signed by both you and the tenant. The following is a handy check list for you and your tenant to go over as your Tenant moves in. Once completed have them sign the bottom then when it is time for the Tenant to move out take the signed copy as you conduct a walk through with them.






____ All receptacles and switches work, proper polarity checked
____ GFCI receptacles tested and working
____ Switches and receptacles are the proper color
____ All device plates installed straight and tight to the walls
____ Light bulbs installed in all fixtures and all in working condition
____ Telephone Jacks working
____ Cable TV Jacks working
____ Network jacks working
____ Door Bell working
____ Toilets all working
____ Faucets all working
____ Showers, bathtubs, and whirlpools all working
____ No scratches, chips or nicks on any plumbing fixtures
____ Hot water heat, each zone working properly
____ Painting satisfactory in all rooms, closets and stairways no touch-ups required
____ Walls, no dents, scratches, nicks or bad finish
____ Windows all working and sealed properly
____ Doors all working and sealed properly.
____ All the glass windows and doors good with no cracks or chips
____ Wood floors properly installed and finished with no stains or marks
____ Carpets properly installed with no stains and all seams match
____ All interior wood trim and moldings in place and properly installed
____ All Air Conditioning working properly
____ Heating units working properly
____ Appliances like the washer, dryer, and oven ect. are all working properly
____ All cabinets and counter tops checked for scratches, nicks, cuts, cracks or chips
____ All tiles checked for scratches, nicks, cuts, cracks, or chips
____ All cabinet doors open and close properly
____ All cabinet hardware installed properly
____ Check all options such as garbage disposal, multi jet showers, steam baths, saunas, intercoms, concierge phone, alarm system, etc.
____ Received all instruction manuals, directions and warranties
____ Fireplace works properly, Draft and damper working
____ Make sure all the keys are accounted for
____ Check all the common areas of the building

Are Fannie Mae's & Freddie Mac's to Be a Thing of the Past?

The Obama administration released its proposal to change the role of the government in the mortgage market.
The intent of the administration is to reduce the federal government’s role in mortgage insurance and rely more on the private sector to determine mortgage rates and qualifications.
Michael D. Berman, CMB, Chairman of the Mortgage Bankers Association is pleased with what is now on the table. “We are gratified to see that one of the concepts they articulate closely tracks MBA’s proposal, released eighteen months ago, that visualizes a workable, commonsense system driven by private capital. Our proposal envisions an explicit, but limited, government guarantee of lower-risk mortgage-backed securities. The guarantee would be paid for by fees used to build a fund to protect taxpayers. We continue to believe that this is the most prudent approach, one that places the primary risk on private investors and ensures sufficient liquidity during times of economic stress in order to provide affordable mortgage finance in all types of mortgage markets. Our proposal directly addresses the problems that caused the failure of the Fannie Mae/Freddie Mac system.”
The proposal that went to Congress suggested three approaches: phase out Fannie and Freddie, but keep FHA to guarantee some percentage of mortgages; charge fees to consumers to pay for insurance; or have the government serve as a reinsurer. Right now, Fannie and Freddie guarantee roughly half of all mortgages. These options are likely to decrease the number of borrowers qualified to purchase a home, and drive rates higher as the market adjusts.
Secretary Geithner indicated that, regardless of the plan ultimately adopted by Congress, it will take about five years to phase in — and phase Fannie and Freddie out. Geithner also indicated that there have been discussions regarding the impact the plan will have on the rental market, as more and more potential home buyers find they no longer qualify for mortgages with new insurer rules and higher rates. In an interview over the weekend, he made reference to a possible government program to help renters, but offered no details.

HOW TO AVOID TENANT PROBLEMS

Bad tenants are a huge problem. When you have good tenants in your rental property, everything runs so much more smoothly. Even if you think you are pretty good at detecting problem tenants and avoiding them, some can still get past the best screenings by the best or landlords or property managers . So, be cautious to not depend on your own first impressions of tenants and do the most thorough screening that you can.

Here are some helpful tips that may assist you as you try to avoid having any problem tenants move into your property.
Before you even consider a tenant, they should complete a rental application. The application should only be accepted if it is completed in full. Be careful to follow all Fair Housing laws to the letter. Any infractions could land you in hot water with a discrimination lawsuit. As a general rule, you are not permitted to deny anyone the ability to rent housing based on race, religion, family status, etc.

Be sure to verify the identity of any potential applicants with a photo identification. Be sure that any driver’s license number information is documented on the rental application. Take the time to copy the photo identification so that you have a record of this. Invest the time and small cost to obtain a background check. Failing to do so can lead you to possibly accept tenants that have criminal or bad financial histories. This can help you avoid tenants that have previously failed to pay rent or cause property damage.

A credit check is imperative. Before you do this, you do need to obtain permission from an applicant. Make this a standard part of your rental application, because you will need the Social Security number of the applicant to do so.

Obtain references from any applicant. Included in the references should be the previous landlord so that you can get an idea of what kind of tenant the applicant may be. If there was a problem, it may not have been reported to any authorities and may not show up on a routine credit report or background check. Character references, such as a boss, previous neighbor or other person associated with the applicant should be contacted as well. Never fail to contact the references!

Lastly, be sure to include a specific code of conduct in your rental application and your signed lease. The code of conduct should explicitly state expectations and consequences. This document should be signed and dated by both landlord and tenant.
Adhering to these guidelines will help you avoid many of the common problems that landlords and property management companies encounter.

According to Jeffery E. Taylor, aka “Mr. Landlord,” there are 18 essential tips that all new landlords should know. They are:

1. Treat landlording as a business. Develop a system and a set of written procedures for all steps in your rental process.
2. Get a good state-specific lease and be sure your lease is clear regarding all expectations you have for your residents’ responsibilities. (Many leases make too many assumptions of what is to be expected.)
3. Believe in yourself, but do not believe anything put on the rental application. Verify it all.
4. Thoroughly screen your applicants. Along with running credit checks, be sure to check eviction records and possible criminal background on all applicants.
5. Get the cooperation of your residents and start advertising and showing rentals BEFORE the lease is up.
6. Fill vacancies faster by reaching out and serving a “niche” target market.
7. Keep your relationship between you and your residents in a business-like manner and treat all residents with respect.
8. Conduct regular inspections of your properties.
9. Enforce your rules consistently and immediately.
10. Keep good records and document everything.
11. Use Craigslist and postlets.com to advertise your rentals. They’re free.
12. Look for ways to reward your long-term residents even if in only small ways.
13. Join and participate in your local landlord association to get continued support, education, and encouragement from other landlords. Also seek out one or two mentors.
14. Become extremely familiar with the state landlord tenant laws where your own rental property.
15. Learn as much as you can about your local rental market and what other landlords and managers are charging, offering, and doing.
16. Always look to expand your business network with other landlords, contractors, suppliers, professionals, and community contacts. Network with individuals who are growing, progressive, and honest.
17. Seek further training and education.
18. Don’t give up! Don’t let the small percentage of rental challenges take your focus off your big goals.
Landlording is not a get rich quick scheme, but can generate long-term wealth when done correctly.
About the author:
Jeffrey E. Taylor, C.P.L. is CEO of Mr. Landlord, Inc., a national property management consulting firm—coaching over 50,000 landlords annually. He is the publisher of the Mr. Landlord Newsletter, the largest circulated real estate newsletter in the country, with over 10,000 monthly subscribers. Jeffrey Taylor has been interviewed on numerous radio talk shows and quoted in hundreds of publications, including The Wall Street Journal, Smart Money, and Personal Finance Magazine. Known to thousands as Mr. Landlord, Jeffrey Taylor is the author of a dozen publications, books, and reports on various aspects of rental property management.

Senate Backs 1099 Repeal

Reforming the Reform: Senate Backs 1099 Repeal

The Senate today didn’t repeal health care reform, but it did get rid of a provision that would impose a major paperwork burden on small businesses next year.

All 47 Republicans voted for an amendment to repeal the health care reform law enacted last year, but all 51 Democrats present voted against it. The amendment, which would have been added to legislation reauthorizing the Federal Aviation Administration, needed 60 votes in order to be approved.

But by an 81-17 vote, the Senate did pass an amendment that would repeal a health care reform provision that requires businesses to file 1099 forms with the Internal Revenue Service any time they spend more than $600 a year with any other business. That requirement, which is scheduled to go into effect in 2012, is a significant expansion of the current 1099 reporting requirement, which applies only to payments to unincorporated service providers.

Senators agreed with small businesses that complying with this requirement would be a nightmare. The only question was to how make up for the revenue that the provision was designed to generate. In theory, third-party reporting of payments to businesses makes them less likely to hide income from the IRS.

The amendment that passed directs the Office of Management and Budget to tap up to $44 billion in unspent funds appropriated for other purposes to cover the revenue that would be lost by repealing the 1099 requirement.

That’s the approach Republicans prefer, but many Democrats wanted to raise taxes on oil companies and multinational corporations instead. They contend Congress shouldn’t hand over spending decisions to the executive branch.

The amendment sets “a terribly dangerous precedent,” said Senator Daniel Inouye, a Hawaii Democrat, who chairs the Senate Appropriations Committee.

Difficult decisions on how to reduce spending lie ahead, he said, and its Congress’ responsibility to determine where these cuts will be made. Delegating these decisions to the executive branch “may be politically expedient,” Inouye said, but it also is “thoughtless and rash.”

Nevertheless, the Senate’s decision to tap unspent money to pay for the cost of 1099 repeal makes it much more likely to be agreed to by the House, which already passed total repeal of health care reform. Business groups hope 1099 repeal is enacted quickly because businesses would need time to change their accounting systems if the requirement does go into effect next year.

Business groups opposed the tax increases in the Democratic amendment, contending raising taxes on oil companies would increase energy costs.

“This amendment will cost good-paying manufacturing jobs,” said Aric Newhouse, senior vice president at the National Association of Manufacturers. “Discriminatory tax policies that pick ‘winners’ and ‘losers’ and pit industry sectors against each other undermine U.S. competitiveness, innovation and job growth.”



Read more: http://www.portfolio.com/views/blogs/capital/2011/02/02/senate-votes-to-repeal-1099-health-care-requirement#ixzz1D018wRw6

Is becoming a Landlord for you

Tempted to buy a rental property as an investment? Make sure you have the characteristics to handle becoming a landlord!
One of the most common ways to invest in real estate is to buy a house or small apartment building and rent it out. According to the latest American Housing Survey, there are more than 33 million rental housing units in the U.S., about 60 percent of which are owned by individuals.
Acquiring a rental property sounds like easy money-you'll acquire equity in the property while someone else pays the mortgage. But dealing with maintenance and business issues-not to mention the occasional ornery tenant-isn't a job for everyone. Before you hang out a vacancy sign, ask yourself if you have the skills to handle the job of landlord:

Commitment
Being a landlord is a hands-on job, and you don't get to set your own hours. If a tenant calls in the middle of the night to report a burst pipe, you must deal with the problem. That's why experienced landlords suggest living no more than 45 minutes from your rental property.

Patience
Landlords who try to fill vacancies as quickly as possible may wind up with less-than-ideal tenants. No property owner wants to leave a rental unit empty for long. But taking time to screen applicants is always worth it. You should do a credit check, ask for and follow up on personal and business references and call the applicant's previous landlord.

Fairness
Screening your applicants doesn't mean you can reject them for reasons such as age or race. If you do, you can be sued for discrimination.

Savvy
You don't need to be a lawyer or accountant to be a successful landlord, but a little knowledge of the law and accounting principles helps. You need to be familiar with the laws governing landlord and tenant relationships in your community, and understand the tenant's rights as well as yours as a landlord. Bookkeeping skills and knowledge of relevant tax rules will help you keep tabs on the profitability of your investment.

Detachment
Many good landlords are friendly and approachable. But beware of becoming too chummy with your tenants-you may need to be firm if someone falls behind on rent. If you're a doormat, some tenants will treat you like one.
Do-it-yourself skills
If you can wield a hammer, wrench and trowel, you can save money and make sure repairs are handled promptly. If your handyman skills are limited to mowing the lawn, you'll need to hire skilled workers, and the expense will cut into your return on investment.

Tolerance
Being a landlord can be like having a roommate. You'll have to put up with habits that may not jibe with yours, as well as the occasional damage to your property-particularly if you're renting out a furnished unit. Make sure you can deal with this.
Few people possess all these qualities, but four or five are essential to making it as a landlord. If you're not landlord material but still want to invest in rental property, consider hiring a property management company to look after repairs, rentals and so forth. This could cost 10 to 15 percent of the total rental income from your property, so make sure your investment will still pay off.