The COVID-19 Crisis has had a direct and significant impact on real estate investors in the following ways:
Late fees cannot be charged,
Evictions can not occur for at least 4 months,
Some tenants are not able to move-out at the end of their leases,
Some tenants are refusing to allow entry for required maintenance,
Homes can not be shown to prospective tenants or buyers when occupied by tenants,
A new VA law further protects furloughed Government workers from being evicted for an additional 60 days, and
Another VA law (unrelated to COVID-19) will be effective July 1st that will allow tenants to make their own repairs and charge landlords under some scenarios.
Fortunately, less than 2% of the tenants in our managed portfolio are late with their rent payments. However, many of our managed properties are being listed for rent over the next few months and the challenges with showing occupied properties do impact those landlords. We are completely committed to maintaining our landlords’ best interests and have implemented several new policies/procedures to do just that.
As we juggle many changes and much uncertainty, our company is stable, our staff is healthy, and we continue to strive to provide excellent management services. We know that landlords are concerned with how the global pandemic may affect their tenants, their homes, and their cash flow. We are receiving lots of calls with questions from our property owners and from the residents of those properties. We are also getting calls from people who are self-managing who have no idea how to handle this situation or where to even start. We know that landlords will be relying on us more now than ever. Despite our physical office being closed, there is no reason to expect this change to affect the level of service that we strive to provide.
We are fully staffed. We are completely up-to-date with the daily changes driven by national and local regulations. Our property management staff members are working from...
On December 23rd, our listing agent received a call from a prospective tenant requesting to view one of our managed properties that had painting in progress. The property was scheduled to go on the market in the next few days. The prospective tenant asked to view the property that day, even though it was not yet ready-to-rent. Our agent scheduled an appointment that afternoon.
The prospective tenant loved the house, was willing to accept the home without the painting being completed, and was requesting an immediate move-in date. He explained that he was moving from Maryland to Woodbridge to care for a sick family member. He wanted to occupy the home within 2 days since his family members would be able to assist with the move over the holiday. The applicant stated that he had excellent credit and substantial income. He completed an online application within 30 minutes of viewing the property. He also offered to paint the home himself so that he could move immediately rather than waiting for the scheduled work to be completed.
Most self-managing landlords would be excited about this scenario and the option of having the home rented before the new yea...
All of our employees have read and EMBRACED this phenomenal book and the perspectives that it promotes. Our employees are committed to the following habits:
THE FIRST HABIT: Amazing People Show Up Ready to Amaze – Our staff is ready to provide excellent service to our landlords, tenants, and applicants every day! We show up on time (or early), we love our jobs, and we know that our level of responsiveness has a huge impact on our landlords’ bottom line and on our tenants’ sense of “home”.
THE SECOND HABIT: Amazing People are Proactive – We focus on anticipating future needs and risks. Therefore, during the fall and winter months, our staff is working on ways to improve all of our processes…upgrading our software, automating manual processes, hiring new vendors, finding ways to do everything better so we can be ready to roll for the spring rental demand!
THE THIRD HABIT: Amazing People Want Feedback (The good, the bad and the ugly!) – Our maintenance system requests feedback for every completed work order. We love your...
Our property management agreement includes a provision for our staff to authorize any maintenance costs up to $250 on behalf of the owner. This provision is critical to our ability to provide effective management of your property.
If your tenant reports a leaking pipe, a sparking outlet, a gas leak in the oven, or a lack of heat in December, we will need to promptly dispatch an appropriate vendor. Such licensed or specialized vendors charge between $75-$125 for a service call or diagnostic fee. Upon diagnosis and proposal of a repair, the vendor is owed the service call fee. If the overall proposed repair cost is under $250, it does not make financial or logistical sense for us hold off approving these minor repairs when doing so could result in a second service call fee and an increase in the cost of the repair.
The vendors that we dispatch on a regular basis (Popes Heating and Air, J.E. Black Electric, ASAP Appliances, Repair 99, JC Plumbing, Red & Blue Plumbing Services, Workhouse Plumbing, C&P Plumbing) have been working with us for years, providing us with excellent service and competitive rates. They have handled THOUSANDS of maintenance calls for us. We t...
Nope! Unfortunately, that will not be an option for our managed properties.
Use of a co-signer is prevalent in the car loan and student housing industries.
Accordingly, the software, credit reporting systems, and collection practices for those industries include a streamlined process for use of a co-signer. In the single family rental market in Northern Virginia, the process is not commonplace, our regional leasing contracts do not have a provision for co-signers, rent payments are typically not reported to credit bureaus, and late rent usually triggers the eviction process.
We do occasionally have requests for use of co-signers. These requests are generally related to young adults who have not yet established credit, not yet developed a rental history, or not yet achieved an income level that will support the qualifying criteria to rent a property on their own. In these cases, we allow for the parent who offered to co-sign to apply as a tenant on the lease. The parent would need to sign the lease and be held fully responsible for all terms of the lease.
After further discussion with willing parents, and a full understanding of why we do not off...
The lease (developed by the Northern Virginia Association of Realtors) between the landlord and the tenant is 14 pages long. Less than ONE page pertains to the topic of paying rent. There are lots of other details involved in a lease regarding start and end dates, required notices, responsibilities of each party, and rights that can be evoked when certain events or circumstances occur.
Because the lease is the legal document agreed to by all parties, any decision to change terms of the lease should be memorialized in writing. A verbal agreement is typically entered into based on an optimal set of circumstances. Should those circumstances change, verbal agreements are often forgotten or remembered differently by each party.
Two years ago, the owner of one of our managed properties stopped in to see the tenant on the day of move-in. The landlord provided the tenant with a bag of grass seed an instructed her on how and when to apply the seed. A few months later, the tenant reported to us that she was concerned about the responsibility that the owner had put on her regarding the grass seed and that she would not be applying the seed to the lawn. As our management comp...
While landlords and property managers have always been required to test smoke alarms, a new Virginia Landlord Tenant Law now requires that tenants be provided with an annual written certification that smoke alarms are correctly installed and functioning properly.
In order to fully comply with this new requirement, we have hired Stop Loss LLC to conduct the annual certifications. Stop Loss inspectors are all off-duty fire fighters who have a vested interest in ensuring our managed properties are compliant with state laws and are free of safety risks. In addition to testing all smoke alarms, inspectors will walk through the home and identify any other fire safety risks.
Inspectors will ensure that smoke alarms must be located in each bedroom and on each level of the home. Smoke detectors must also be less than 10 years old. Inspectors will replace any defective alarms and install any missing smoke alarms. For homes that have natural gas utilities, one Carbon Monoxide alarm will also be installed.
Owners are charged for these certifications. Tenants will be held financially responsible if they have removed or disabled any smoke alarms. These certifications will...
New landlords often ask me what the most important things they need to know are before they transition their home into a rental property. In response to that question, I usually review the risks associated with vacancy, with late rents, and with deferred maintenance. But most new landlords are already familiar with those risks. So, I'd like to share the Nine Lessons that I’ve learned in the past ten years of management that often take a landlord by surprise.
Gas hot water heaters are expensive to replace. Due to permit requirements and the need to bring venting up to current code, the cost to replace a gas hot water heater could easily exceed $1500. Tenants want hot water now. While not considered an actual emergency, lack of hot water that is not addressed promptly usually impacts the relationship between landlord and tenant. If you have a gas hot water heater that has exceeded its life expectancy, please incorporate that into your planning budget.
The home warranty company is not going to replace your HVAC system. Many landlords with older homes maintain a home warranty with the expectation that the warranty company will replace the system. Warranty comp...
Attending NARPM® events and participating in
online property management discussion groups is a
great way to get ideas from around the country on
how to handle challenges, grow your business, develop
policies and procedures, and brainstorm with fellow
property managers. As I’ve participated in these events
and discussions over the past eight years, I’m always
surprised when I hear property managers refer to some
of their clients as accidental landlords.
The accidental landlord moniker is often used to
describe a homeowner who purchased their home
recently, or at the top of the market. That landlord is
typically moving out of the area due to a job transfer
and cannot sell the home without bringing money to
the table. But the term accidental landlord conjures
up an image in my mind of a landlord tripping and
falling, getting his or her knees scraped or arm broken,
as they stumble their way through the risks and pitfalls
of owning a rental property. As property managers, we
shouldn’t want, expect or tolerate anything accidental.
Rather than referring to our landlords as having accidentally entered into their relationship with a tenant
and their responsibility to the...
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