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The 3 Biggest Deferred Maintenance Mistakes That Condominiums Make

We all know that supplemental fees and increasing condo fees are the last thing owners want to consider, especially when it’s for something that doesn’t typically impact your day-to-day life in your home.  However, preserving your building envelope can be the best proactive investment your association makes…just ask any owner that has paid a special assessment for an annoying leak that turned in to a major building facade job.

Want to get the maximum number of years from your building’s exterior and not lose your wallet or wage war with your fellow neighbors?  You need a maintenance plan that the association must stay devoted to and in addition to that, here are the 3 biggest property maintenance and construction mistakes you should try to avoid:

1) Neglecting your roof until it leaks or endlessly patching to avoid a replacement

Aside from being a money pit, a constantly leaking roof can lead to a civil war among affected unit owners and the Board.  Also, what may seem like a minor drip, could be the tip of an iceberg: things like mold and wood rot could be hiding behind painted walls, causing illness to those with sensitivities and also an attractive breeding ground for certain types of insects. What’s more, insurers these days typically do not cover mold and remediation is very costly.

Avoidance will turn in to more money spent than just addressing the issue head-on. A proactive tip is to schedule annual inspections by your roofing vendor.  They will survey the structure, clean out gutters, clear drains, and patch or repair vulnerable areas. They will also inspect and repair copper downspouts and detailing, roof flashing, and other metal finishes that may deteriorate or leak over time. Regular visits from the same vendor will become an excellent resource for planning out the expected life span of your roofing materials.

If you already have a leak and can’t seem to chase it down, a structural engineer will be your next best resource.  They will pinpoint a targeted approach and can also help create a scope of work to ascertain bids from multiple vendors.  That way money isn’t wasted on guesswork and a clear plan can be made.

2) Neglecting your masonry and not making regular annual inspections

Masonry and brownstone deterioration can be major sources of water infiltration in a building.  With New England’s extreme weather conditions, it’s especially important to put forth a little preventative maintenance to avoid any surprises. Each year the freeze and thaw that occurs will break open cracks in deteriorating brownstone and masonry, allowing water to enter your building and cause damage to interior infrastructures.  Often times buildings will go through cycles of chasing elusive leaks year after year, patching and repainting the interiors of units only to find that they have wasted time, money, and patience on a leak that was coming from masonry and has now damaged interior wooden structures.

Most roofers may even note masonry issues on chimneys when they are doing a roof inspection, however it’s best to have a structural study performed every 5-years by an engineering firm.  These envelope studies include a thorough exterior review by a structural engineer that explores each surface of your building.  They will let you know areas of weakness, targeted advice for immediate repairs, and expectations over the coming years.  This tool will allow your association to plan appropriately and fund future projects for re-pointing masonry or performing brownstone patches.

3) Neglecting paint and exterior wood repairs

In addition to roofs and masonry, the last important area that should always be maintained on a regular cycle is exterior wood and paint. Performing an annual visual inspection each spring on window sills, dormers, siding, and any other painted surface will ensure that wood rot or decay doesn’t go unnoticed.  Rotten sills can contribute to masonry damage, since water will filter down past the sills in to exterior walls and freeze during the winter.  This will cause the cracks and damages noted earlier.

Every Association should build a 5-year painting plan that rotates the annual maintenance and painting of the building’s exterior.  This will ensure that each area is tended to and repaired as necessary, preventing a larger and more formidable project down the road that could require assessments and financing.  The exterior envelope study performed every 5-years can be a good tool for planning your starting point.

The post The 3 Biggest Deferred Maintenance Mistakes That Condominiums Make appeared first on Mediate Management Company.

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5 Tips For Maintaining A Self-Managed Community

When it comes to routine maintenance, self-managed communities are at a disadvantage. Large Boston property management companies like ours are able to use their size to reduce costs and attract vendors to each individual community, but a self-managed community doesn’t have that kind of leverage. Large management companies also have more resources in place to learn about vendors and minimize risks. To help even the score, self-managed communities should consider the tips below.

Compliance 

One of the most important aspects of self-managing a community involves making sure that the community is abiding by all relevant laws. When it comes to vendors, this includes paying payroll taxes when applicable. In general, each vendor may be considered either an independent contractor or an employee. If the vendor earns more than 50 percent of his income from your association, he may be considered an employee, and you must pay the applicable payroll taxes. Conversely, if the vendor earns less than 50 percent of his income from your association, you can consider him and independent contractor and simply issue a 1099.

Vendor Selection

Shop carefully for your vendors and always remember to choose someone who isn’t involved with the association. For example, agreeing to hire a board member’s uncle to perform maintenance work may be a recipe for disaster, as the vendor may expect special treatment because of his relationship with the association. To ensure that you get the best possible vendors, try to network with other associations and make connections with some of their vendors.

Communication 

Clear, frequent communication is absolutely essential to the success of your projects. When dealing with vendors, make sure that you clearly explain the project through the use of diagrams and written specifications. You should also make sure that each vendor is providing you with a detailed proposal that includes information about the cost to the association, the type of materials they would use and the amount of time it would take to complete the project. After you choose a vendor and allow him to begin work, continue to communicate with him about the status of the project as it progresses.

Insurance 

Never hire a vendor who doesn’t have sufficient insurance. If something goes wrong during a project, the vendor should have an insurance policy capable of fixing the problem and repairing any damages your property sustained. Before hiring a vendor, ask for proof of insurance. The certificate he provides should show that he possesses automobile insurance, non-owned automobile insurance and general liability coverage. The policy should also name your association as an insured party. For more information, consult your insurance agent.

Relationships 

Finding good vendors can be challenging. After you enter into a relationship with a respectable vendor, take good care of him. Pay all of your bills on time, keep the lines of communication open and treat him with respect at all times. If a vendor completes emergency and routine repairs to your specifications, show your appreciation to that vendor by allowing him a priority bid on your larger project. A vendor who feels a sense of loyalty to your association will be more likely to complete jobs accurately and efficiently, even when you’re in a bind.

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Mediate Management Company Boston Superb Five Star Review by Candys H. - https://youtu.be/xU0r4mwVVcs

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The Crucial Responsibility: Stepping Up To Serve On The Board Of Trustees

As the community’s primary source of guidance and leadership, a condo association’s board of trustees carries a great deal of responsibility. The board must learn how to deal with complaints from residents, enforce the association’s rules, work with third party companies like Boston condominium management  and continuously work to improve the association as a whole. To be effective, the members of this board must be willing to dedicate both their time and energy to the betterment of their community on a daily basis.

Because of its demanding nature, running for a position on the condo association’s board is not to be taken lightly by any resident. However, stepping up to serve the community in this way can also be rewarding. Members of the board are highly involved in the association’s day-to-day activities. Unlike other residents, board members have unique influence over the way the community operates, and they have the power necessary to make a positive difference in their surroundings.

Why Some Residents Won’t (or Shouldn’t) Run for the Board

Unfortunately, many residents avoid running for the condo board even when they believe that they would be good at the job. Participating in board meetings and other activities requires dedication, and few people are willing to give up their free time in favor of extra work. Many residents also avoid the condo board because they are afraid to take on the responsibility that comes with a position of leadership. Furthermore, dealing with complaints from residents can be aggravating, and enforcing association rules has the potential to affect the reputations and social lives of the board members involved.

Perhaps more upsetting is the fact that some residents who do lobby for a position on the board of trustees are doing so for the wrong reasons. For example, the resident who lives beneath a rambunctious neighbor may be tempted to run for the board simply so he can enforce stricter noise regulations. This individual doesn’t care about the good of the community; he is only concerned with his own agenda. Once he has accomplished his goal, he will “coast” until his term is complete. Such an individual is not an asset to any board of trustees.

When Residents Should Run

In spite of the potential drawbacks, residents who do favor the greater good of the community should still consider running for the board of trustees. Without a strong board, maintenance suffers, regulations are ignored and communities lose their cohesiveness over time. Although it may not be the most popular position, someone still has to fill it.

The best board members are those residents who aren’t afraid to appropriately express their opinions and take a stand. Board members should also be ambitious, strongly dedicated to the continuous improvement of the community and unafraid of hard work. Finally, any resident considering running for the condo board should make sure that he or she has the time required to fulfill all of the duties that accompany the position.

The post The Crucial Responsibility: Stepping Up To Serve On The Board Of Trustees appeared first on Mediate Management Company.

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Considerations on Whether To Allow Marijuana In Condos

Marijuana use is still illegal under federal law. However, recent changes to Massachusetts state law allow people who have certain debilitating conditions to grow and/or use marijuana for medical reasons. This new development presents a unique challenge for condominium boards, since some residents may now wish to grow, store and utilize marijuana inside of their units. We would like to provide you a few things to consider when deciding to allow marijuana in your managed condos.

Potential Issues

Allowing unit owners to grow or smoke marijuana inside the building can cause multiple problems for the condo board. Most obviously, smoking inside the building is a fire hazard. If unit owners leave marijuana cigarettes lying around or use them near flammable substances, a fire may result and cause damage, injury or even death. Likewise, marijuana use in the building exposes other residents to second hand smoke, which may compromise their enjoyment of their homes and make them uncomfortable. Furthermore, if any children live in the building, their parents may not want them exposed to marijuana use. Any residents who feel that their rights have been violated may file lawsuits against the condo board, which can be expensive, stressful and time consuming for the association.

Marijuana use in a condominium complex may cause damage to the walls and ventilation systems, and any fire caused by marijuana smoking can cause significant damage to the building’s structure. Unfortunately, many insurance policies specify that smoke damage, caused by standard cigarettes or marijuana won’t be covered. Thus, condo boards that allow marijuana use in the building may find themselves without an insurance payoff in the event of damage.

Unfortunately, the situation becomes even more complicated when the rights of disabled residents come into play. Residents with debilitating medical conditions who have a prescription for marijuana may feel that their rights are being violated if they can’t grow and use marijuana in their own homes.

Implications

Even though Massachusetts state law has approved marijuana for medical use, federal law has not. Furthermore, Massachusetts state law specifies that organizations, such as condo boards, are not required to allow smoking inside of their facilities. In the end, it is up to the condo board to decide whether or not to permit residents to use or grow this substance inside their homes.

The issue of marijuana use in condos is extremely complicated. At the time of publication, no rules are set in stone for boards to follow. To determine the best course of action, condo boards must consider what is best for the community. If the condo board doesn’t want to deal with residents using marijuana in the building, one option is to ban smoking altogether. In most cases, it’s best to ban both regular cigarettes and marijuana in order to prevent claims of discrimination.

However, even if the board decides to ban smoking, it should still be prepared to consider each situation on a case-by-case basis. Boards must be flexible when dealing with residents who have serious medical conditions, and accommodations may be necessary in some situations. Above all, condo boards must be willing to communicate with residents about the community’s governing documents, policies, smoking bans and possible accommodations for residents who have valid prescriptions for medical marijuana.

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A Portfolio Approach to Energy Performance

“Energy Hogs”

Multi-family communities have an opportunity to enhance their comfort and satisfaction while reducing one of the largest controllable costs they face: the cost of energy.  Associations are positioned to simultaneously reduce operating expenses, increase net operating income, improve their image and help protect our environment.

Strategic investments that reduce energy use also improve asset values.  Associations should raise awareness about the energy savings potential in their communities by educating residents and providing a path toward higher stages of sustainability.  Whether it’s performing energy audits, comparing their energy usage with other communities, or discussing ways owners can reduce costs, associations should involve the community at each stage to educate and engage residents. Partnering with an experienced Boston property management company to help with these efforts is also an option you might want to consider.

How to Reduce Energy Use

Associations can analyze trends in energy consumption to actively manage operating costs.  An energy management program, including benchmarking and tracking of improvements, can identify profitable, energy-saving best practices.  For instance, replacing incandescent bulbs with longer lasting energy efficient bulbs saves money while reducing the labor costs associated with continuous bulb replacement.

Whether it’s replacing lighting, windows or other building components, deciding how to reduce energy use requires energy data from the community in addition to comparative data from other multi-family communities.  While not an exhaustive list, here are some of the factors to consider:

Climate

Age of building

Water consumption

Physical layout of property

Market demand for energy

Energy requirements of amenities – elevators, HVAC systems, washers, dryers, gyms, garages, and pools.

Reducing Energy Costs

Before starting a project geared to reducing energy use and costs, ask “how many years will it take the monthly energy savings to payback the project costs?” Lighting upgrades, natural gas conversions, control system upgrades and low flow toilets have each saved communities money.

But neither the amount of savings nor the time-to-payback are always consistent across communities.  Therefore, communities should benchmark and compare their community to other communities, analyze targeted cost reductions and prioritize them.

Set Goals for Improvements

Communities should get motivated, get educated, and get started toward improved health, home, community, and environment!  However, forward looking projections can be met with skepticism if historical data is lacking and energy savings cannot be confirmed.  That’s why associations should assess trends in building performance and frame discussions around best practices in energy efficiency.

If $400 – $575 in savings per home per year is the community goal for each owner, perhaps a simple manual could recommend specific actions to maximize the likelihood of goal achievement.  For instance, peak energy demand affects the cost of energy.  So, in addition to committing to strategic retrofits, communities might use demand management to maximize energy use at off-peak hours.

Measurement Challenges

The numerous benefits of energy efficiency are easier to quantify at the community level than the level of the individual unit owner.  For example, the amount of energy savings is affected by the quality of construction and ongoing management in addition to the quality of energy audits.  Therefore, investments at the community level should be coupled with the collection of the following basic energy data:

Benchmarks – total fuel expenses, energy use and current commodity prices

Monitor opportunities – energy savings opportunities and whether an energy audit is needed

Analyze trends – energy use projections and demand management predictions

Measuring Solutions – maintain data on the performance of retrofits and capital projects

Reporting and Improvement – collect data and compare dataset with energy audit reports

In Massachusetts, legislation is driving change and creating opportunities involving annual benchmarking, required audits and retro-commissioning in large buildings.  Associations should evaluate the energy performance of the multifamily building they manage and compare it against itself and other buildings.  To make prudent energy decisions, they should develop an energy management plan, compare it with a portfolio of multi-family buildings and measure improvements over time.  Associations should lead the way in reducing operating expenses from energy use to increase net operating income and help protect our environment.

The post A Portfolio Approach to Energy Performance appeared first on Mediate Management Company.

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Investigating How Reasonable Accommodation Requests Are

Condo associations deal with a variety of requests from their residents on a daily basis. In most cases, the association can easily decide whether or not to grant the request based on the cost, feasibility and necessity when it comes to onsite property management. However, when requests made by residents involve accommodations for a disability, the situation becomes more complicated.

The Federal Fair Housing Act

Under the Federal Fair Housing Act, disabled individuals are entitled to an equal opportunity to enjoy their homes. The act requires condo boards and other housing providers to grant reasonable accommodation requests made by handicapped residents. In addition, the act also requires condo boards to respond to requests made for accommodations in a timely manner.

The Federal Fair Housing Act defines “reasonable accommodations” that permit handicapped residents to enjoy their homes without causing extreme administrative or financial burdens to the condo association. Because there are no hard and fast rules for determining whether a resident’s request is reasonable, condo associations must consider each request on an individual basis.

Before a condo association is legally required to consider a request, the requester must show the board that he has a disability or impairment, such as blindness or the inability to walk, that makes the accommodation necessary. If the requester is able to demonstrate this need, the board must consider accommodating it. When considering the request, the board should factor in the cost, amount of work required and any alternative accommodations that could be pursued. If the board chooses to deny the request, it must be able to show clear evidence that making the accommodation would be too difficult or expensive for the board to handle. Otherwise, a court may force the board to comply with the resident’s request.

Assessing Questionable Requests

Many requests, such as the request for a wheelchair ramp, are obviously reasonable. In cases such as this where the disability is apparent, condo boards are not permitted to request further information and must comply with the request if at all possible.

However, the appropriate response to some requests, such as the request for an emotional support animal in the home, isn’t always clear. When requests are questionable, the Federal Fair Housing Act allows condo boards to request more information from the resident in question, such as documentation from a doctor that supports the need for accommodation.

Avoiding Problems

Regardless of the nature of a resident’s request, condo boards should proceed with caution. Discrimination lawsuits can be very expensive, especially if the court finds in favor of the resident. Outright rejection of requests almost always results in a lawsuit, so condo boards should follow an established procedure for assessing each request presented. Procedures should include a formal review of the request, its necessity and its feasibility. Before denying any request, condo associations should consult with a qualified attorney who has experience in the industry, and they should draft a written response to the resident that details the reasons for the denial.

The post Investigating How Reasonable Accommodation Requests Are appeared first on Mediate Management Company.

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How To Prepare For Your Association’s Annual Meeting

The association’s annual meeting is perhaps the most important management-related event of the year. Because this meeting is so essential to the association’s future, it’s important to begin planning for the annual meeting well in advance. Below are some tips from Mediate Management Company to follow as you prepare for your association’s most highly-anticipated gathering.

Prepare Early

Long before the meeting, take the time to create both a pre-meeting and post-meeting checklist. The pre-meeting checklist should include reserving the venue, planning an agenda, advertising the meeting to association members and checking the status of any open issues from the previous year’s meeting. For the post-meeting checklist, include following up on issues brought up in the meeting, updating records appropriately and making notes to help with the next year’s meeting.

During this preparation process, you should also make a list of important documents and other helpful items, such as projectors or PA systems that need to be brought to the annual meeting. Finally, consider the questions you are most likely to face from members and draft a list of possible responses.

Get Organized

Bring structure to the association’s annual meeting with a detailed agenda. When creating the agenda, be sure to:

List the question and answer portion of the meeting on the agenda as “member comments.”

Leave plenty of time to tabulate any ballots from the meeting.

Schedule appropriate speakers to cover each topic.

Acknowledge community helpers and committee members.

Schedule time for election of directors. (Keep in mind that officers should not be elected during this meeting).

Use scripts when possible to make the meeting run smoothly.

Create a structured sign-in process that allows you to keep track of every member present at the meeting and ensure that all attendees are current on dues.

Leverage Professionals

It may be prudent to retain professionals, such as lawyers and CPAs, to help you prepare for the meeting and deal with the issues that arise during it. For example, if you believe any governing documents could be amended at the meeting, you should have an attorney present to oversee the process. These professionals can also help you during any of the planning meetings you schedule before the main event.

Acknowledge the Meeting’s Strong and Weak Points

When your annual meeting is over, sit down with your support staff to discuss the meeting’s successes and failures. Make notes about the procedures that worked well, as well as those that need to be changed before the next year’s meeting, and file them away until planning time rolls around again. You should also take this time to go over your post-meeting checklist.

Keep in mind that the post-meeting checklist should typically be completed and submitted to the appropriate recipient within two days of the meeting. If changes to association records were ordered at the meeting, associations should update these records as soon as possible. Finally, associations should always mail a copy of the meeting’s highlights, action item list, questions and comments within 10 days of the annual meeting.

The post How To Prepare For Your Association’s Annual Meeting appeared first on Mediate Management Company.

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Stop Winging It: How Boards Can Avoid Decision Failure

Condominium boards exist to make decisions in the best interest of the community and then follow through. However, when it comes time to act, the board may find reasons to stall or back down. In such cases, the board becomes essentially ineffective. Some of the most common sources of decision failure include:

Fear of Backlash – Some board members may be afraid to act because they know the decision that needs to be made will anger their neighbors, and they don’t want to be held responsible.

Lack of Information – In some cases, the board may see that an issue clearly needs to be solved, but it make not have enough information to come up with a proper solution.

Fear of Change – Because board members are often residents too, they may be just as likely as other residents to be afraid of the changes that come with big decisions.

Avoiding Increased Workload – Many decisions the board is faced with involve a significant increase in workload. If board members are already busy, they won’t want to add to their responsibilities.

Denial – Sometimes, the board may avoid making a decision because members are in denial that a viable solution exists. They may not like the options presented, or they may be afraid of choosing from among them.

Regardless of the source of your board’s decision failure, the situation can usually be rectified by enacting a clear procedure for decision making and action, as well as for dealing with roadblocks.

1. Create a Timeline

To prevent the board from stalling on a difficult decision, create a clear timeline that applies to every issue you face. The timeline should include a specific deadline for discussing the issue once it has been brought up.

2. Listen to Board Members

In some cases, board members may simply be stalling when they bring up potential roadblocks. However, that doesn’t mean that the roadblocks won’t pose a problem, so listen to each member’s issues and try to formulate solutions for each.

3. Form a Committee

When dealing with a particularly difficult problem, establish a committee of board members that will continue working on the issue outside of regular meetings.

4. Consult Third Parties if Necessary

Sometimes, you simply can’t come to a decision on your own. In such cases, you can resolve the problem by hiring a third party such as a property project management services company to review the issue and make the decision for you. Make sure that the party you hire is agreed upon by the board, and that the board agrees to follow whatever recommendation the third party makes about the issue.

The post Stop Winging It: How Boards Can Avoid Decision Failure appeared first on Mediate Management Company.

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An Effective Moving Policy Saves Money

An effective moving policy helps associations avoid the costs of repairing building entrances and common areas, as well as other significant fees, after residents move in or out of condos.  Boston property managers at Mediate Management Company recommend associations create moving policies before the summer months and certainly prior to the heaviest day of student rental turnover, September 1st.

As part of the moving process, furniture, boxes and odd-shaped items must be maneuvered and may collide with doors, walls, floors and fixtures if extra care isn’t exercised.  People tend to prop doors open during moves for convenience and perhaps to help avoid scraping doors.  Unfortunately, as they attempt to move their belongings, they may inadvertently allow the entry of an uninvited person or animal slipping through an unwatched doorway.

Aside from the bumps and scrapes, people rushing on their moving day tend to leave trash in units, hallways or on the curb, even if it’s not a trash day.  This can result in trash disposal fees if the waste isn’t properly disposed of, and in worse situations, trash left in basements of buildings can attract vermin.  Within days, people moving in also have a large number of cardboard boxes to dispose of and need to flatten them down for recycling to avoid fees.

A moving policy protects the association from moving costs by maintaining order and helping to ensure buildings are cared for during moves.  In some condos, a majority of units are rented and the building operates much like an apartment building with a high rental turnover.  Rules and guidelines, when applied to moving activities, help facilitate moves while protecting the building and the association from unwanted costs.

The following moving policy is an example intended to provide specific rules used to guide moving activities:

The Property Manager must be provided with a seven (7) day written notice of the scheduled move date and time. This notice can be submitted via mail, email or fax. Any special moving arrangements must be made prior to the seven (7) day notice.

All moving activity must be scheduled and performed during the following times:  Monday-Saturday 8:00 AM – 6:00 PM. If you need to conduct your move outside of these days and hours, please contact Management to request approval of your move day and time.

The respective unit owner(s) will be required to pay a fee of $100 each time a new owner/tenant moves into the building. A check must be made payable to The Condominium Trust and included with the seven (7) day notification. The memo line on the check should indicate “moving fee”. The $100 fee covers both the move in and the move out for an individual owner/tenant.

The $100 moving fee is non-refundable. Any damage or debris-removal that exceeds the $100 fee will be repaired or removed by the Trust at the unit owner’s expense.

Moving companies are required to provide a Certificate of Insurance.

Maintaining the safety of the residents of the Condo is a primary concern of its Board. Therefore, it is the responsibility of the owner/tenant to ensure that the doors to The Condo are properly secured during the entire course of the move. Doors shall not be propped open for any reason, unless the owner/tenant can provide someone to watch said door. Likewise, at the close of the move, it is the owner’s/tenant’s responsibility to ensure that all doors have been properly closed and secured.

Items that do not fit in the unit or that the owner/tenant no longer wants are NOT to be stored in the common areas/basement of the building. These items will need to be disposed of by the owner/tenant at his/her own expense.

A copy of the Condominium Rules and Regulations should be attached and provided to all owners/tenants.  They must adhere to the Rules and Regulations for the building or applicable fees for non-compliance will be applied.

Some associations struggle to find a source of income to pay for damages and fees associated with moving and look to raise association fees.  A better way is to create a financial incentive for residents to care for the Condominium during their move.  A moving policy, by asking individuals who create costs to bear those costs, serves to align incentives among the people moving and the unit owners and Trustees.

Moving policies come in many different shapes and sizes, with varying amounts charged for reimbursable and non-reimbursable deposits or fees. If unit owners prefer, they can charge these costs back to their tenants and incorporate these charges into their leases. If the sample policy above does not seem to fit the needs of your association, feel free to take a look at these examples to help shape your association’s policy.

The post An Effective Moving Policy Saves Money appeared first on Mediate Management Company.

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AirBnB and Subletting: 5 Keys You Must Know To Succeed

Boston is home to numerous colleges and universities including MIT, Harvard, Boston University and Boston College. The student population puts pressure on the demand of rental properties, making property management in Boston necessary. Consequently, many students turn to sites such as AirBnB or Timeshares to find tenants willing to sublet.

What is subletting?

Subletting is when a tenant who has a current lease contract decides to either rent a room in their apartment or the entire apartment to another tenant on a short-term basis.

Why tenants sublet

According to Property Investment Project website, tenants can opt to sublet their apartments if they will be away for some months. Some tenants sublet as a way of raising finances to meet rent and utility bills.

5 Keys of Subletting For Effective Property Management in Boston

  Add a Subleasing Clause to the Rental Agreement

According to Raleigh Werner, a relocation expert, in his article on JumpShell, subletting should be an official agreement. To protect themselves in subletting situations, landlords should add a clause that allows for this. To be included in the lease is the fact that renters shouldn’t sublet any part of the leased premises without prior written permission from the agent or owner. Property owners can seek help from a real estate lawyer in Boston to help them draft and add this clause.

Let Tenants Find a New Tenant for Subletting

Remind tenants that it’s their duty to find new tenants interested in subleasing, but assist them where necessary. For example, you can charge the advertising cost to the existing tenant.

Run a Background Check on Potential Subtenants

Once potential clients express interest in your property, screen them to determine their eligibility for being good tenants. Each landlord has his or her qualifying standards. If they meet your standards, approve them. According to Off-Campus Housing, landlords should evaluate a sublessee based on a financial assessment; not discrimination.

Let the New Subtenants Know the Regulations

Although they’re subtenants, they will reside on your property, and it’s essential they know what’s expected of them. You may want to take them though the tenants’ regulations so they know the dos and don’ts of staying on your property.

Get an Insurance Company that Allows Subletting

Some insurance policies don’t allow for subletting. In such cases, if the landlord allows for subletting then the property insurance becomes void. However, some companies dealing with property management in Boston offer specialized services inclusive of insurance that allows property owners to sublet. Landlords can work with such companies and benefit from subletting.

Boston Property Management

In closing, property owners should carefully weigh their options before deciding whether to permit subletting. Depending on your situation, you can use subletting to ensure no part of your property remains vacant. Our expert property managers at Mediate Management can help you determine if subletting is a viable option for you.

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How to Master Energy Efficiency for Your Rental Property

Mastering energy efficiency offers property owners numerous benefits – one major benefit being lower energy bills. You may be surprised to know that maximizing energy efficiency also benefits the economy, both at the national and global level. It saves the economy billions of dollars in energy production costs while increasing the national gross product. To help you make a positive impact on your wallet and the environment, below are the top 3 energy concerns for property management in Boston and their solutions.

Property Management in Boston – Energy Concerns and Their Solutions

Boston property owners can renovate their buildings to add equipment that save energy as follows:

Air Conditioning

According to the Real Estate Boston website, air conditioning accounts for up to 48% of the overall utility bill for rental property owners. In addition, air conditioning releases significant amounts of carbon in the air.

Solution: Use the appropriate size of AC units in relation to your building size and design. Often, property owners assume that the bigger the AC unit the better, but the truth is an oversize AC unit doesn’t perform optimally. Another option is to automate air conditioning systems.

Lighting

Some tenants notoriously leave lights on even when not using them. The accumulative effect of this behavior is that at the end of the month the property owner receives a high energy bill.

Solution: Install sensors and dimmers. They sense lack of activity in the corridors and either dim the lights or put them off. Use compact fluorescent lamps and LED lamps. You should see a considerable reduction in your energy consumption and bill after that.

  Insulation

Poor insulation puts pressure on the heating and cooling systems as they attempt to sustain favorable thermal conditions in the property.

Solution: Go for quality insulation materials. Ideally, the building should be checked for air leaks before insulation. Specialists perform the blower door test to detect air leaks in the building. To prevent leaks, you should seal chimneys, access points, pipes and electrical conduits.

Weatherizing Boston Rental Property

The Greenovate Boston Organization points out that weatherizing property will significantly reduce carbon pollution, and enhance energy efficiency in it. Weatherization is achieved through proper insulation and plugging air leaks.

Working with a property energy specialist to assess energy efficiency in rental property is the first step to mastering energy efficiency. Those in charge of property management in Boston stand to benefit by saving substantial amounts of money and making the lives of their tenants more comfortable.

Property Management Boston

Notably, there are numerous building automation systems available on the market such as automatic thermostats, lighting automation systems and HVAC automation systems that centralize and computerize energy efficiency efforts. Speak with one of our rental property managers at Mediate Management about the best ways to improve energy efficiency for your property rentals.

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Our Economist's Top Tips for Buying a Home in 2016

There’s a lot of tried-and-true advice out there for would-be home buyers (including our own). But the housing market is changing all the time, and if you’re on the hunt for a home, you need to stay aware of the latest trends—and how they’ll hit you where you live (literally).

In order to help buyers land their dream home in 2016, the realtor.com® economic data team has done its homework on the stats that matter to come up with a short list of its best advice.

“Buyers looking to close this year need to keep an open mind and be prepared to move quickly when they find a home that meets their needs,” says Jonathan Smoke, our chief economist, citing “fierce competition among buyers.”

Start your search early

The No. 1 tip that his team came up with, Smoke says, is to kick off your home search early.

“If you’re intending to purchase, based on the volume of house hunters who are just like you, consider doing it sooner rather than later—you’re likely to get a better price and a better mortgage rate,” he says, pointing out that there’s far more inventory available relative to the number of sales in the off-peak months.

More than 85% of buyers who plan to purchase in the next year intend to buy in the spring or summer of 2016, according to the most recent realtor.com survey. With roughly 50% more listings inventory relative to the number of potential home sales expected in January and February, buyers who start their search early face less competition with nearly the same number of homes. Comparison shop for mortgages

“Work as hard on the mortgage as you do on finding a home—this will pay dividends over the life of the mortgage that you have,” Smoke says. “Don’t just assume that the 30-year fixed mortgage is the best for you.”

Mortgage rates are expected to reach 4.65% by the end of the year (while prices are predicted to rise 3% year over year), but many consumers aren’t aware of the variety in mortgage products that can affect what they pay, Smoke says.

Read the entire article here: Our Economist's Top Tips for Buying a Home in 2016