Thursday, May 31, 2012

A Hip and Healthy Management Style


These day's it seems like more and more people are using Acronym's in the working place. Subsequently I would like to share one that's I have been using for years called PMBWA. Not only is PMBWA effective and powerful, but it is also good for your health! Here are variations on its commonly known names:

The Acronym: PMBWA
Property Management by Walking Around
Property Management by Wandering Around
Property Management by Walking About

Property Management by Walking Around compels you to really get out and just start walking around. Do nothing but walk and observe. That is all you have to do. Start at the top, the bottom, the outside, the inside, or any part you would like. Get into the thick of things. Walk around the parking lots, mechanical rooms, corridors, vacant spaces, but just walk.

While you are walking ask questions, talk to people, make inquiries, and introduce yourself the neighbors. Do not have a plan or carry anything with you but your smartphone. If you must take a note, just use the camera feature, call yourself and leave a voicemail, or a record a message. Do not carry notepads or anything else at all, because the notepad might make you think you need to find things to write down. It can also be a intimidating if you’re taking notes during a conversation with a tenant. Let your mind be free and just walk. Wherever you go, information will be gleaned. There is insight to be had from the properties you own, manage and maintain.

It is not easy, but consider doing PMBWA regularly. Nobody expects a property owner\manager to just walk around with no plan, direction, or destination! Remember, this is NOT a building inspection. You are managing your property just by walking around. It sounds unbelievable, but I bet you that you will learn so much and find out so many things that it will spark enthusiasm, excitement, or bring resolution to a matter you have contemplated or been challenged by.

Try it and let us know how it works for you!

Sunday, May 27, 2012

So, do you rent to sex offenders?

By Barbara Barnes Getty

Here’s a new one … I got a call about a rental property the other day and the guy asked some appropriate questions about the unit. He sounded like a good candidate. Toward the end of the conversation he asked, “So, do you rent to sex offenders?” Whaaaat?

I hesitated just a moment and said, “Um, I’d have to check with the owner … may I ask, what was the specific violation?”

Silence, then “Deviant behavior.” Hmmm … did he have sex with a goat? Did he expose himself in public? What? I decided to let it be …

“Well, I can check with the owner and you can give me a call maybe some time tomorrow …” He said thanks, and hung up.

First of all, I AM the owner, but I was taken aback and I use this little ploy all the time with my tenants. Most of them don’t know I’m the owner. (It protects me.) Secondly, I’d never been asked that question.

So, do you have to rent to sex offenders? Is it discrimination if you refuse?

The answer is “No” and “No.” You can’t discriminate against anyone regarding race, religion, sexual orientation, age or disability. But you CAN discriminate against people you feel will affect your ability to do business in a profitable manner. Sex offenders might fall into this category, right? Others who would?

People with really loud cars or motorcycles
People who are dirty
People who exhibit a nasty attitude toward you
People who’ve lied on their application or have prior evictions
People who want to squeeze six people into your two-bedroom house
People who smoke, do drugs or have pets of any type
People who have been at their job for a short time
Mr. Sex Offender didn’t call me back. If he had, I would’ve politely told him no and wished him luck as he moved on. Sexual abuse is a huge issue in this country. There’s a Sex Offender Registry that many people check out before they move into a neighborhood and renting to a sex offender would negatively affect my ability to do business. And beyond that, it just wouldn’t feel right.

Onward and upward ………

Saturday, May 26, 2012

Strange but True: Tenant Assaults Landlord



A Salem, Massachusetts woman is being summonsed to court by her landlord after she wiped her itch- mite infected arm on him.

The bizarre attack happened Saturday after an argument with the 60-plus year-old man. According to the Salem Police Department log earlier this week, the elder property owner brought over an exterminator to deal with complaints of bugs and mice in her apartment.

The exterminator refused to go in the apartment.

The police report says the infested woman was upset with her landlord and stated that he was treating her “like a leper and she went into the hallway toward him, wiping her arms on him.”

This caused the landlord to defend himself, by slapping her across the face.

Police have advised the woman that she could bring charges against her landlord for the assault. The landlord, in turn said he is applying for a summons for the tenant for assault and battery with scabies on a victim over 60.

Police did note that the tenant had many red scab marks on her arms. In addition, the woman admitted having a severe case of scabies.

Apparently, this is not the first conflict the two have been involved. A few weeks ago, then as now, the argument was about the poor condition of the apartment. The Board of Health has been notified of the property.

Thursday, May 24, 2012

CALL TO ACTION: Support Bill Support for HB2273 Modification of late fees for rent from 30 days to 10 day

Dear Joint Committee on Judiciary Chairs, Vice Chairs and Members,

I would like to see Chris Walsh’s bill HB2273 passed out of committee
and voted into law.

At this time, landlords are not allowed to charge a late fee unless
the rent is 30 days late. This change would allow landlords to
charge a late fee when the rent is 10 days late. Please see attached
study done by the MA Realtors showing how all other states in the
nation have a more equitable position on this matter.

Businesses such as mortgage companies, credit card companies etc are
able to charge late fees. It is unclear why landlords are not able to
do this. Most landlords have mortgage payments to make. If the rent
is not delivered on time, then the mortgage payment is not made and
the landlord is charged a late fee. It is unfair for the landlord to
not be able to charge a late fee to, at minimum, cover this cost.

The late fee can also be a motivator for some tenants to pay the rent.
It is another tool the landlord has to make sure payment is made.
Currently, the only tool the landlord has is the 14 day notice to
quit. This creates an adversarial relationship with the tenant which
is not in the best interest of anyone.

I would appreciate it if you would report this bill favorably and support it though passage into law.


Bill Text for HB2273 (HD2135) of 2011-2012 Session
An Act relative to the modification of late fees
Prime sponsor: Representative Chris Walsh (D)
04/30/2012 - H Extension order filed until 06/08/2012

Section 15B-1C of Chapter 186 of the General Laws, as apprearing in
the 2008 Official Edition, is hereby amended by deleting the word
"thirty"; and inserting the word "ten" in line 26.

Tuesday, May 22, 2012

Getting Rid of Bad Tenants, Finding and Keeping Good Ones

by Brendan O'Brien

When you're a landlord, most of your time is spent dealing with maintenance and tenant issues. If you're lucky (and you've done your homework), your tenants don't cause too many problems - and the problems that do crop up are minor.

However, despite your best intentions, the person who looked like a great tenant on paper can become the tenant from hell. Bad tenants cause real headaches, for a number of reasons: Evicting and replacing them is aggravating, costly, and time consuming Their disruptive and noisy behaviors can drive out your good tenants
They can cost you big money if they damage your property

Before I give you my hard-earned advice about how to find and keep good tenants, let me first describe the four types of bad tenants.

Deadbeats - Simple - these are the people who don't pay their rent.

Demanders - These types of tenants drive you crazy with their incessant demands. On the other hand, demanders are usually the best bad tenants to have because they have high expectations for themselves as well and are usually well-behaved and neat.

Disrupters - The worst kind of tenant: These people drive everyone else in the building crazy by playing loud music, arguing, or exhibiting other disruptive behaviors.

Destroyers - Not to be confused with a renter who accidentally breaks something, destroyers are the type that repair their motorcycles on your new carpeting or get drunk and break your windows.

So how do you weed out the deadbeats and destroyers? In addition, how do you work with the demanders and disrupters so they don't drive you and everyone else insane? What follows are my six tips for finding and keeping good tenants:

Check all references


As with job references, a prospective tenant's previous landlord won't give honest feedback because they're afraid of being sued. When conducting your reference checks, instead of asking questions regarding a prospective tenant's character (e.g.: "Was this person a good tenant?"), ask questions based on facts that can be documented.

You can ask, for example, if the tenant paid his rent on time each and every month and whether he had any late payments. You can also ask for any incidents of property damage or disruptive behaviors.

It also pays to verify job and income history to ensure your potential tenant can pay the rent each month.

While still useful, a credit check is less important. Due to divorce or medical issues, people find themselves having to sell the family home and become renters. Such events can kill someone's credit in the short-term - which is why it's much more important to verify job and income history. A person who is working and making good money will often be grateful for the opportunity to help put his life back together by being a good renter.

Set clear expectations from the get-go

Many tenant problems can be traced back to the landlord's failure to set clear rules and consistently stick to them. In addition to stating when the rent is due, the lease should also state any rules about modifying the property, acceptable noise levels, any building-wide rules (e.g. no on-property vehicle repairs, no pets, etc.), and contacting the landlord. During the lease signing, you should go over these rules and expectations in detail to be sure your tenant understands them.

Learn how to "read" potential tenants

As with anything, you cannot pre-judge people based on appearance. One of my best tenants has long hair, biker boots, and tattoos. One of my worst tenants was a gentleman in immaculately pressed slacks, tassel loafers, and a designer polo shirt. When meeting potential tenants, watch for the following:

Over-eagerness - Your landlord "antennae" should be humming if someone wants the place right away - like now. This could mean that they need to get out of their current situation fast.

Lateness - If a potential renter shows up to the appointment late, doesn't return calls, or seems unreliable, pay attention. Usually this type of person will be unreliable in terms of paying the rent, too.

General weirdness - Always pay attention if someone makes the hairs on the back of your neck stand up or if he or she just seems "off" in any way. Often times we dismiss our suspicions, only to find out later that we were right about our instincts.
Turn "bad" tenants into good tenants

As I said, demanders are the best type of bad tenant to have - they demand things because they have such high expectations, which means they want to keep a property looking nice and well-maintained.

To keep demanding tenants at bay, especially those who expect you to rush out at midnight to fix a broken light switch, give all your tenants a cell phone number they can call to report any problems, rather than your home phone or business number. Let them know what hours they can expect to reach you, then be sure to check for messages regularly.

Give disrupters the benefit of the doubt at first. People used to living in detached homes forget how noise travels through the walls of apartment buildings, so they may not be aware that their loud music or late night guitar playing is bothering others. Often, just asking them to turn down the volume is enough, but if the problem persists, they've got to go.

Enlist the help of tenants you can trust


As a landlord, you want to know immediately if there's a real emergency with your building - for example, if it's on fire or a water main is busted. However, you don't want to give out your home or business numbers on the lease - because then you have those pesky demanders calling you night and day.

In this case, you'll want to find the most reliable and trustworthy tenant you have and give him or her your personal phone numbers - with instructions they're to be used for emergency purposes only.

Be a great landlord

The best way to minimize bad tenant problems is to be a good landlord to begin with. This means staying on top of things and keeping your promises. Be proactive about maintaining your property, promptly fix things when they're broken, and ensure contractors and repair people arrive when promised.

In short, treat your tenants they way you would want to be treated. You wouldn't want to sleep in a bedroom with a broken storm window in the middle of winter - and neither do your tenants.

Finding and keeping great tenants takes some time and due diligence, but your efforts will pay off. State your expectations and rules up front, conduct full reference and job/income checks, and maintain your rental properties as if you lived in them. Your tenants will thank you.

Wednesday, May 16, 2012

How Cut Your Utility Bills in Half


During this the Greater Salem Landlord's May meeting Matthius Bohler of Next Step Living provided some great information on how to access the FREE programs that National Grid is offers consumers. You may already be familiar with program the MASS SAVES Program. But by using an agent such as Next Step Living it just got easier to navigate the energy savings.

Did you know:
The program offers a NO INTEREST 7 year loan for up to 25,000 in building upgrades

You qualify every year for the program?

You do not need to convert from oil to gas to qualify. If you have outdated gas furnaces you can upgrade

It all starts with an initial energy assessment. So make that appointment today with Next Step Living

Should you decide to particpate in the Mass Saves program using Next Step Living as an authorized agent for the energy assessment. Next Step Living will gladly contribute $10 for every assessment that is completed through the Greater Salem Landlord Association partnership.


All assessments completed through this link will drive a $10 contribution to GSLA. Just click on the link below and let the savings begin: http://nextsteplivinginc.com/gsla

Tuesday, May 15, 2012

Right of Entry: PART 2


Previously, I wrote about the specific Massachusetts law that does not allow a landlord to enter the leased premises without the tenant's permission. However, you should be aware that the same law lists specific situations in which landlord may enter the property legally.

The first circumstance
is if you have a tenant with a fixed term lease and the term is coming to an end, you may enter the premises in the last thirty days of the tenancy to inspect for property damage. The same holds true in the case of a tenancy-at-will if either party has given proper notice to terminate the tenancy (which is commonly 30 days notice).

The reason the law allows landlord access to the premises in this thirty day period is to assess damages to the unit before the tenant moves out. In case damage is discovered, the cost to repair would be deducted from the tenant's security deposit. (Security deposits will be discussed in a later blog.)

But even if the landlord has a right to enter and inspect, it is prudent that the landlord talk to the tenant and agree on a time for the inspection to occur, if possible. Remember, a tenant's feelings towards their privacy should be handled carefully.

A word of caution for all instances of landlord entry: Even with the tenant's consent, it's generally not advisable for the landlord to enter the premises without the tenant being present. In doing so, the possibility arises for the unscrupulous tenant to make allegations that valuables disappeared while the landlord was inspecting the apartment when the tenant wasn't home. Better to be safe than sorry.

The second circumstance
allowed by Massachusetts law is if the landlord has a court order enforcing his right to enter. For example: A troublesome tenant may block your path and simply not let you in. If this occurs, do not force your way in or you may be facing assault charges from the tenant. In that case, the only way to gain access to the property is to go to Housing Court and get a court order that affirms your right to inspect.

And to answer an often asked related question: In Massachusetts, never, ever change the locks or remove the tenant's property under any circumstances, unless you have an Execution issued by the court giving you the right to repossess the property

Sunday, May 13, 2012

Do you have the Right of Entry?



There are some mistakes that can snare even some of the most savey landlords. A fairly typical example is the question regarding a landlord's right to enter the leased premises:

Landlord:
"I want to go into the apartment to look around at what the tenant is doing. I think he has a cat when the lease has a no pet policy. From the street I can see that he painted one of the rooms blue, which the lease does not permit. I also want to make sure the fire exit isn't blocked. I'm going over there tomorrow to let myself in to inspect the property."

The landlord has legitimate concerns. There may be lease violations to address. She is also concerned about an important safety issue. Her assumption is that because she owns the property, she has a right to enter if she wants to. She couldn't be more wrong.

In Massachusetts, when a landlord rents an apartment to a tenant, she gives up her right to enter. The law forbids her from entering the property - even to inspect for defects or make repairs - without the express permission of the tenant.*

The lawful course of action to take here is to contact the tenant and obtain consent to enter the property for an inspection. The landlord and tenant should agree on a mutually convenient time for the inspection to take place. It's always a good idea to contact the tenants well in advance of an inspection; seven days or so.

Landlords are often dismayed by this news, but the spirit of the law might be better understood from the point of view of the tenant's right to privacy. When a tenant leases an apartment, it becomes their home in which the tenant has a reasonable expectation of privacy from the government and - as inferred by the Massachusetts law - the landlord as well. In effect, the law balances the tenant's right to privacy with the landlord's interest in the property.

*** Please note there are specific instances in which a landlord may enter the leased premises that I will discus in a future post.

Sunday, May 6, 2012

How to Lose Money and Get Your Rental Property Trashed by Your Tenants



Want to be lose your hard-earned money? Follow these 5 Rules as provided by Andrew Stefanczyk:

Rule 1
Choose the worst possible area. It is a fact that the location of your investment property will determine the kinds of tenants you will attract, and how much rent you can fairly charge.

Rule 2
Put the very best of everything in when fixing up an investment property. Luxury bathrooms, thick pile carpets, plasma TVs. Spare no expense.

Rule 3
Make sure you have absolutely no experience in making basic repairs. Not knowing how to fix electrical wiring, repair drains, and replace windows will cost you quite a bit of money down the road.

Rule 4
Do not screen your tenants. This may be the most important step to making sure you lose money as a landlord. Do not ask for or check references. Do not call previous landlords and ask questions like, Did they pay rent on time? How was the condition of the house or apartment when they left? Did they ever disturb neighbors with loud music or shouting matches? How often would you have to make special trips for repairs? Being as uninformed as possible about whom you rent to will make a huge difference and will increase the chances that you will get tenants that will trash your property and refuse to pay rent.

Rule 5
Make sure you have not learned about your rights as a landlord. Be completely unfamiliar with the eviction process to guarantee long, drawn out disputes with tenants. Most countries provide online information about tenant and landlord rights so avoid reading these.

I recommend that you not follow any of these rule since they will ensure complete failure as a landlord.

Saturday, May 5, 2012

GREATER SALEM LANDLORD MEETING: MAY 14


THE GREATER SALEM LANDLORD ASSOCIATION next meeting is May 14, 201, enter the Federal street "jury entrance. A Guest Speaker from Next Step Living, an outreach partner for National Grid will discuss access to the benefits offered by the state's MassSave Program, which provides no cost whole house energy assessments. Landlords are encouraged to bring tenant information and sign up your units for a no cost MassSave energy assessment right at the workshop!

Participants will learn:

· How hundreds of MA families have cut their heating bills by as much as 40% in 2011 by accessing MassSave funding

· How to use less energy and be more comfortable in your home - yes, it's possible!

· The health benefits of a properly weatherized home.

How to gain access to a Zero Percent Interest Loan to finance new windows, a heating system upgrade, additional insulation

Why tenants and landlords benefit greatly from this program

· Why National Grid wants us to use less energy.

· Building Science 101 - How your home loses energy today.

Friday, May 4, 2012

Ask An Attorney: Lease Question


It’S THE LAW by attorney Mark Burrell

Q. The lease I have with my tenant has expired but my tenant won’t move out. Do I have to give my tenant a notice to quit before beginning the eviction

A. No. If you have a written lease with your tenant for a fixed period of time, usually one year, and the tenant refuses to vacate the premises after the term of the lease expires, you can have the tenant served with a summary process summons and complaint without having first given the tenant a notice to quit.
If the tenant remains after the lease expires, the tenant is called a “tenant-at-sufferance”. But do not accept rent from the tenant after the lease expires. If you do, you will have converted the tenant-at-sufferance into a “tenant-at- will”, and a notice to quit must be given to a tenant-at-will before that tenant can be served with a summary process complaint. And remember, if you decide to accept rent from a tenant after you have begun the eviction process, endorse the rent check with the words “accepted for use and occupancy only” and give the tenant a receipt for the rent with those words included.This will preserve your right to move forward with the eviction.

Tuesday, May 1, 2012

Springing into Action with Spring Chores by Viktor Zimmer


Spring is finally upon us. Time to check out what the winter has done to the exterior of your investment -- roofing, gutters, exterior paint, caulking and the grounds should be all items on your checklist.

Your first priority should be your roof. Snow and ice can damage shingles and rubber roofing and should be inspected. If you have no experience in roofing it would be advised to hire a roofer to inspect and fix your roof. Don't wait too long because it will be harder to find a roofer to come out early summer for items like this because they will be busy with roofing jobs. If you plan to do this yourself, inspect for missing or broken shingles and tears in rubber roofing and nails sticking up. Preventive maintenance might save you from having to replace underlayment when your next roof job comes up.

Working down your checklist should be cleaning out your gutters. If you're inspecting your roof yourself this is a step you can do at the same time. Clogged gutters will not keep water away from your foundation and facia boards. Cleaning these will help keep your basement dry. Overflowing water will also get between your gutter and facia boards; prematurely deteriorating the facia boards. To eliminate this chore twice a year, you might look into installing gutter guards between now and fall.

If your house is painted you want to patch up flaking paint. Any spots you find should be scraped and painted to keep these flakes from growing and rotting the siding. If you don't have any of your original paint, take a few of the larger chips to a paint store and they can color match it with a paint scanner. If the paint is old take caution to have it tested for lead paint. If you wish to still do it yourself, the state requires you to take a class to learn hazards and what the homeowner can do and can't do.

While you're inspecting your paint look for brittle and missing caulking around Windows, corner boards and door trim. Take a putty knife and scrape out any brittle or cracked caulking and re-caulk. Keep your house sealed from the summer rains and keep down your cooling costs. Electricity like everything else is getting very expensive.

Have your grounds cleared of built-up leaves and branches. This lets new growth be protected from damage or disease. Dethatching your lawn will help uncover bare spots which you can fill with some grass seed. Simple maintenance will keep right your property looking good and will help retain tenants.