Hiring, Screening, & Negotiating the Best Deals

 

By Fast Forward Property Managment

 

Featured in San Francisco Apartment Magazine & with The National Apartment Association's Units Magazine

 

Maintenance costs are one of the most significant expenses affecting the bottom line of property owners. The costs associated with landscaping, painting, plumbing repairs, replacing flooring and general maintenance can add up for any size property. In owning or managing a building, you quickly outgrow the folk advice of: “If it should move, but doesn’t, use WD-40; and if it shouldn’t move, but does, use duct tape.”

While some owners and managers do their own maintenance or have a staff that handles repairs, they may have to hire out some of their larger jobs to contractors. That’s why owners often want to know how to find skilled contractors who provide high quality work and give them a good value.

 

Click Here for the Complete Article

Top 10 Signs You Might Be a Landlord

 

1. You have the phone number to the plumber memorized

2. You have dreams at night about filling vacancies

3. You are on the V.I.P. list of the local towing company

4. You know the names of everyone in your building

5. The first of the month is cause for celebration

6. 3 AM calls are part of a normal week

7. You're shocked to hear a reason you've not heard before for why the rent is late

8. You receive the Fast Forward Property Management  Newsletter

9. Everyone at the hardware store knows you by name

10. You are an accountant, executive, handyman, marketing director, business 

       manager, paralegal, painter, & salesman rolled into one. 

 

Property Management Tip
 

An Alternative Approach to Late Fees

 

When people find themselves to be short on money they have to make decisions as to where the money they do have should go.  The triage decisions involved boil down to what bills are the least painful to skip, or what obligations cause the least problems if left unpaid.  Surprisingly, some people still do not pay their rent when they stand the chance to lose their home.   People with limited funds tend to pay the bills first that have consequences for not paying them on time.  Many owners we consult with do not charge late fees.   Others who charge late fees often do not enforce them.   Tenants often beg for the fees to be waived stating that if they cannot afford the rent, then they certainly cannot afford a late fee. 

 

One solution is to set up a reward for on time payments rather than a punishment for late payments.  Legal panels have said that although it is not spelled out in the law, most judges consider 6% to be a reasonable late fee for rent.  The difficulty becomes that an owner cannot evict someone for nonpayment of late fees if they get caught up on the rent that they owe.  However, there is not a limit on how much of a reward can be given for on time payment of rent.  When drawing up the lease, you can explain to a resident that the rent will be $100 per month higher, but that $100 will either be rebated or be taken off of the rent every month when the rent payment is made on time.   After the deadline, it is harder for the resident to ask for a reward not earned, than it is to ask for a waiver of a late penalty.   Setting up your system to reward rather than punish will make an atmosphere of happier residents, owners, and managers.