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How to Grow Your Rental Business

Growing Your Rental Home Business Using Equity Reinvestment

Once you start building your rental home business, the potential for growth is self-generating. Over time, each property builds equity which you can re-invest in both property improvements and down payments on new homes to add to your portfolio. Equity is a powerful asset in any real estate investment business. This is especially true with rental home,s where the business model is designed to steadily build up equity in each property over time.

How can you use equity to grow your business? Reinvestment is an effective strategy for any real estate investor.

Methods to Access Your Rental Property Equity

Renters are already slowly but surely paying each rental property mortgage and building your equity. How do you access that equity and make use of the funds? There are three popular methods.

Home Equity Loan

A home equity loan allows you to borrow against your equity, gaining access to the cash value of each property that you already possess in the form of a fixed loan. This is sometimes called a second mortgage.

HELOC

A home equity line of credit or HELOC is a rotating loan where you can borrow and repay as much as you need in rotation. This is ideal for repairs and upgrade projects and the money doesn't have to be used on the HELOC'd property. 

Cash-Out Refinance

A Cash-out refinance is when you refinance your mortgage at a higher amount than you strictly need. The extra loan amount is a way to transform equity into cash-in-hand.

Benefits of Equity Investment in Your Rental Properties

The equity already accumulated in your rental properties has a lot of potential. Currently, it is not earning you anything, simply building up to total property ownership. But with a little planning and financial strategy, you can put that equity to use by acquiring new properties or improving the properties you already have.

Make a Down Payment on a New Rental Property - Without Selling First

When you find a promising new rental property, the downpayment is a serious investment. While you might normally sell a house to buy the new property, with equity funds, you don't have to. Using an equity loan or cash-out refinancing, you can access the cash you need

The cost of buying a new investment property doesn't have to come from selling a property first. Instead, you can extract some of your equity from property that's partially paid off. Those funds can go toward your downpayment on the new property immediately while the opportunity is still available.

Turn Static Equity Into New Income Sources

Buying new rental properties with your current rental equity allows you to open new income streams. As soon as the new property is ready for a tenant, it can start earning. Depending on the neighborhood and home quality, you can charge enough to cover the new home's expenses and accelerate your ROI on the equity loan or cash-out refinance.

By using the money (property value) that you already possess, you can quickly increase your rental income and long-term earning potential.

Upgrade and Repair Your Portfolio Properties

In addition to buying new properties, you can also put rental equity funds toward property upgrades and repairs. After all, an up-to-date rental has a better earning capacity than a home that becomes shabby or outdated over time. While minor repairs may be included in your annual budget, major upgrades like new appliances, roof reinstallation, or timely renovations can be paid for with a HELOC, equity loan, or cash-out refinance funds.

Planning ahead for long-term rental profitability sometimes requires sizable reinvestment. With access to your equity funds, you can put the value you've earned in a property right back into keeping that property desirable and competitive as a rental home.

Growing Your Rental Business with Property Management Insights

If your goal is to grow your portfolio, you have more options than you might realize. By accessing the equity that you have already accumulated, you can invest in improvements and new properties to watch your potential for returns continue to expand.

Accessing your rental property equity is a pro strategy learned from years of property management services. If you're looking to expand your portfolio and your skills in maximizing long-term profitable rental homes, Leaf Management can help. Contact us today to learn more.

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Upscale Rentals

Evaluating Rental Potential in Upscale Neighborhoods

If you're looking for a quick way to profit from real estate, buying and renting out upscale homes seems like a smart investment. However, things are not always as they appear. It's true that luxury and high-end properties can rent for more and provide higher returns. But not all upscale properties are the same. What makes a property upscale and the factors involved in profitable rentals can vary quite widely.

At Leaf Management, we've seen it all. Let's dive into the meaning of luxury and upscale rental, along with the pros and cons of such investment plans.

Upscale Property Rental Myths

First, let's start by dispensing with a few upscale real estate myths. Many rental investment buyers have a few notions about luxury rentals that just are not consistently true. They can be true, but you can't count on them and disaster can strike in the times when these three common assumptions about luxury real estate prove wrong.

"Luxury Rentals Are Already in Top Condition"

First, homes in upscale neighborhoods are not automatically low-maintenance.

What makes a property "luxury" is not always high-end materials and great maintenance. Sometimes, an upscale property is in a crumbling yet beautiful historic building on a high-demand downtown block. Or a glorious estate with failing plumbing and flickering old wiring. Luxury is about what people will pay for it, not necessarily the structural integrity or upkeep quality.

"Rich Tenants are Better Behaved"

Do not assume that high-paying tenants will be more respectful of your property. Wealthy tenants are just as likely (if not more) to throw raging parties and expect you to pick up the bill.

"You Can Rent Any Property You Buy"

Not all upscale properties can even be rented. Always read the fine print. Many condo associations and gated communities drastically limit the number of properties that can be rented, and the quota may already be occupied. So don't buy an upscale rental property unless you're sure it can be rented.

The Pros of Investing in Upscale Rental Homes

What are the advantages of investing in upscale and luxury rentals? Even after removing the myths, these pros are clear for the world to see.

1. Tenants Pay More for Luxury

You can ask a much higher rent for luxury properties, especially in high-demand areas like downtown and prestigious neighborhoods. If you got the property at a good price, upscale rentals can be quite profitable.

2. Property Values are Probably Rising

When it comes to resale value, upscale locations typically see a steady climb in property values. Therefore you can rent the place out for a while and resell at a profit, in most cases.

3. Separate Market Stability

The luxury real estate market is separate from the typical housing market in any region. Wealthy residents create a more predictable demand providing more market stability if your property meets the required standards.

Cons of Investing in Upscale and Luxury Rentals

Of course, as with any investment, there are potential downsides. These are most likely to manifest for investors who are not careful in their research when selecting a property and property management strategy.

1. High Investment Cost

Luxury properties cost more, which means a higher initial investment cost. This, of course, means you also have more to lose should your investment go awry or prove less profitable than you initially calculated for.

2. High Maintenance and Upkeep Cost

Upscale properties can cost far more than expected in maintenance and upkeep. After all, you must use high-end materials for repairs and maintain top-of-the-line appliances. Most importantly, expect to save back about 1-2% of the property's sale value per year for repairs. Anything you don't spend, save for those big repairs like roof replacement and water heater repairs - just like a normal rental property.

3. Tenants Have Higher Expectations

Lastly, wealthy tenants have higher expectations from your property management service. They are more likely to demand repairs and be impatient with delays because they are paying more to live in luxury, and you are providing the property as a service.

Succeeding in Upscale Property Rental with Leaf Management

If you have selected the right property and prepared for the predictable expenses, you can make a tidy profit from renting out properties in upscale neighborhoods or investing in luxury homes. The final piece of the puzzle is a capable and experienced property management team to handle maintenance, repairs, and tenant care with the aplomb and responsiveness that your upper-crust tenants have come to expect.

At Leaf Management, we know exactly how to optimize an upscale property for profitability as a rental home. Contact us today to learn more about luxury and upscale property management services.

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Smart Devices + Rental Homes

Should You Include Smart Home Devices in Your Rental?

When preparing a property as a rental home, naturally you want to create an appealing and upgraded space. You might repaint the walls, replace old flooring, and of course, replace the old locks. You might caulk the windows and add new weather stripping. You might even replace the water heater or HVAC to ensure years of reliable service.

Shopping for the latest home features, you may also come across the desirability of smart home rentals. Smart home devices represent the cutting-edge of home technology, and some features are extremely desirable for modern renters. But is it a good idea for your property? Which of the many smart home upgrades are ideal for rental homes?

We can provide a quick and practical guide to smart home upgrades for any rental property.

Best Smart Home Features for Rental Homes

In the world of smart home design, some devices can make a home feel high-tech and high-quality. These are the best smart home features for a property owner to install before listing the home. In fact, you might even create an opportunity to increase your rental asking price. Here are the top four smart home upgrades that tenants are both practical and highly desired by tenants right now.

Smart Thermostats: Comfortable and Energy-Efficient

A smart thermostat is a programmable thermostat that can make smart decisions based on local and household data. It can remember temperature preferences and learn a family's routine, then optimize for energy efficiency and comfort. It can minimize power use when the house is empty and even adjust based on weather forecasts.

Tenants like smart thermostats because they make comfort easier and reduce the power bills. Investors benefit because they also extend the life of the HVAC and make the property more sustainable.

Smart Locks: Smart, Responsive Security

Smart locks are a useful way to increase home security. A smart lock can be locked using a phone app or voice command, on a schedule, or even based on a tenant's phone distance. This means the doors can lock themselves after dark, when tenants leave the house, and be easily operated by tenants during the day.

Keypad smart locks can even provide a separate code for each family member, codes that only work during certain times of day for guests and services, and create records of which code is used over time.

Smart Lights: Cool, Efficient, and Replaceable

Smart lights are normal screw-in LED light bulbs with RGBW (colorful and white) light options and smart home controls. They are easy to install and energy-efficient. They also make home life more convenient and fun with voice commands and routines instead of light switches.

Leak and Surge Detectors

Wifi leak detectors and surge detectors also provide you with live maintenance information, so that a leak below any sink or appliance or any unusual power fluctuations can be detected and repaired immediately.

Selectively Desirable Smart Home Features

Then there are smart home updates that can be cool, but are not universally desired. These should be installed with consideration for your audience and how each feature might be perceived.

Smart Home Appliances

There are tons of smart-home-capable appliances. Smart fridges that count the eggs, smart ovens that can pre-head with a wifi command, and so on. The usefulness of these appliances is still debatable. Some tenants will delight in having an all-smart kitchen or laundry, and some won't care, and some may think it's silly.

Video Doorbells

Video doorbells are an interesting convenience and security feature, but they're not for everyone. Some people will love being able to see out their front door at all times and use their doorbell as an intercom, but some may be uncomfortable being seen by their own doorbell coming home each day.

Smart Security Systems

Smart security systems are in the same boat. Some people will be excited about having wirelessly watchable security cameras and window alarms, and some will find this uncomfortable. That said, neighborhoods where most homes have security systems are more likely to consider this a positive upgrade.

What Smart Home Features to Avoid 

Lastly, there are a few smart home features that should be left to your tenants to decide on. These are either plug-and-play features that rely on personal preference or features that are a little too personal to share with one's landlord.

Plug-and-Play Smart Home Speakers

Smart lights, smart thermostats, and smart appliances are service-agnostic. This means their control apps can be connected to any smart home system. But the smart speakers decide which smart home assistant and network of services is used.

Let your tenants decide their own smart home core system. They might want Alexa, Apple, or Google, and the choice should be theirs. Plus, most smart home speakers are plug-and-play, making them more like furniture or personal devices rather than installed features like a thermostat or locks.

Smart Security Cameras

Interior security cameras are a touchy subject. If your tenants want internal smart cameras, let them choose, install, and fully control the cameras on their own. This way, there's no worry that anyone else might be watching their home interior.

Smart Home Upgrades for Rental Properties

With the right smart home upgrades,  you can increase the value and desirability of any rental home. From cozy apartments to lavish estates, a few smart home features can make a home feel convenient, comfortable, and cutting-edge. But it's also important to choose your upgrades carefully.

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DIY Kitchen Updates

DIY-Friendly Kitchen Repairs to Quickly Spruce Up Your Flip

Flipping a home to sell or rent is often about taking a shabby-looking house and sprucing up. A house with "good bones" still has a sound structure. It may have good insulation, well-built cabinetry, and a welcoming floorplan but the surfaces have become shabby and the style may be dated. This shows especially in the kitchen where people want to fall in love with a modern, charming space. 

The question is: How can you quickly DIY an older kitchen to make your flip more appealing without busting your renovation budget? Fortunately, we have several ideas that will bring your flip to life and transform the kitchen into a space that new buyers or renters will love.

1) Replace Small Kitchen Hardware

You don't have to rebuild your kitchen to modernize the hardware. In fact, kitchen hardware is one of the smallest yet most impactful ways to update your kitchen. Choose a new kitchen faucet such as a swan-necked pot filler with an extending hose for washing. Choose your favorite style of faucet handles. Then update your cabinets with a pack of new drawer-pulls and cabinet handles.   

2) Repaint Your Cabinets and Trim

Paint is one of the most affordable ways to completely transform your kitchen. You can also invest in vibrant (and washable) wallpaper for the parts of your kitchen with exposed drywall. A fresh coat of paint can give your cabinets and trim an entirely new color scheme. You can choose a new primary theme, accent colors, and contrasting colors. 

3) Strip and Stain Cabinets Instead

If you have painted cabinets, you can strip the paint and then restore the natural wood hues of your cabinetry. You can oil-polish the wood, or you can stain your wood cabinets to any natural shade you desire. Reseal the stained cabinets for a warm, welcoming look. If your cabinets are currently wood, you can stain them a new shade or paint them instead.

4) Re-Tile Your Backsplash

Your backsplash makes a big impact on the appearance of your kitchen. Many types of tile are quite affordable, making a new backsplash a great addition to any budget kitchen renovation.

5) Install New Decorative Molding and Cabinet Trim

You can even change the shape and style of your cabinets and kitchen design with the strategic use of molding and trim pieces. Trim pieces can add detail to your cabinets and subtly change their design style. Molding adds subtle elegance to your kitchen near the baseboards and ceiling. Explore shapes and style differences that you might prefer.

6) Place New Shades On Your Light Fixtures

You can also reinvent your existing light fixtures. most kitchen lighting can be completely transformed just by changing out which light shade you use. If the fixture is of standard sizes, you can swap out light covers for a completely different style. You can restyle flush lights, pendant lights, and even some chandelier styles.

7) Color Stain and Reseal Stone Countertops

Did you know that you can change the color of your countertops? While we don't recommend painting beautiful natural stone, you can color stain granite and other natural stone to give your countertop a whole new look without investing in new stone. Strip the current countertop seal, apply the stain, and then reseal your stone to protect it from moisture and unwanted staining.

8) Update Your Pantry Organization

Pantry renovations are very popular, but don't have to break the bank. Consider ways you can update your pantry organization without a costly new pantry system. You can install sliding wire drawers, new hanging shelves, and sectional spaces on your own. You can also update your pantry simply by organizing everything into baskets, trays, and matching dry storage canisters.

New Kitchen, New House

The kitchen is the heart of any home. The freshness and modern style of a kitchen can strongly sway buyers or renters which means focusing on kitchen updates with any flip. These DIY projects can help you completely change the look and feel of an older kitchen while keeping all the sturdy hardware and ergonomic flow of the original design

Leaf Management can help you choose the right renovations for your flip along with many other strategies to ensure every real estate investment has greater profit potential. Contact us today to learn more.

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Flipping One-Car Garage Homes

What to Do With One-Car Garages in a Two-Car Garage World?

Everything about it is perfect, or so you thought. You find an older home that has an attractive price tag and a delightful charm to it. The only problem? It only has a one-car garage, and you know that most of your prospective tenants are looking for a two-car garage. As a real estate flipper, you know that this could put some obstacles in the way of your plan to begin renting out the property as soon as possible. However, before you move on from this older home in search of another investment, consider the ways that you can still make this work. 

Install a Covered Driveway

Outright expanding the existing driveway is almost certainly too costly to make sense. Besides that, it is possible that such a project might fly in the face of local ordinances and/or building codes. As such, it is best to look for other solutions that can be far more effective for you. Among those options include installing a covered driveway. 

Among the benefits of a covered driveway include: 

Protection from the Weather - Vehicles that are parked under the covered driveway will enjoy protection from the outside elements in ways that they wouldn't if they were left out in the open. This is particularly useful during periods of stormy or snowy weather. 

Maintains a Cool Temperature in Your Vehicle - The summer months can be brutally hot in some areas, and it is not pleasant to get into a vehicle that has been left out in that heat all day. A covered driveway makes it possible to keep the internal temperature of the vehicle much cooler than it otherwise would have been. 

Improved Appearance for the Property - There is an upside to the curbside appeal of any property that has a covered driveway installed. People instantly recognize this as an upgrade, and they might even decide that they want to take a closer look at any property that has such features. 

These benefits can help to offset the fact that the property is limited to a one-car garage. Prospective tenants are more likely to be forgiving of that fact if they know that they have a covered driveway available to them. 

Covert a Portion of the Backyard Into a Parking Space 

Just because a property is limited to a one-car garage doesn't mean that more space can't be converted. In fact, many investors will seek to convert at least part of the backyard into a parking space to provide their tenants with a little more room for their vehicles. It is not necessarily the case that all tenants will want to utilize every square inch of their backyard for recreational purposes. Therefore, why not offer them more space to park their vehicles and help alleviate some of the issues around the lack of a two-car garage?

Offering a More Reasonable Price 

Another tactic that many savvy investors use is to simply offer to lower the rent that they charge or even lower the total selling price of the property that they are considering selling. In either case, this can prove highly effective. They are giving up a little ground on the asking price, but they are far more likely to attract interested parties by doing so. Giving up a little piece of the action because the two-car garage is not available shows that the investor is a rational and reasonable person who is willing to work with prospective buyers or tenants. 

Before dropping your asking price too far, make sure you have done your homework on the comparable properties in the area. You don't need to undercut yourself too far, and you certainly don't want to give up potential equity that you otherwise would have been able to cash in on. With that in mind, always make sure you offer to cut back on your asking price only to the point where it makes financial sense both for you and for the buyer. 

The lack of a two-car garage on any property does not have to mean that the property holds no value to you at all. In reality, there are plenty of outstanding one-car garage properties that you can snap up for a great price and potentially make a significant return on your investment. Simply understand what it will take for you to cash in on the available properties out there. 

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Remaining Solvent Amidst Flat Rental Rates

What to Do If Rental Rates Are Staying Flat?: A Guide for Staying Solvent

The bill for your property insurance hits your mailbox and you let out a sigh of frustration. Your premium has increased again, and yet, you aren't able to raise the rent on your rental properties to cover this added expense because rates in the area have remained flat. What is a landlord supposed to do under these circumstances? 

There are a few key strategies that any landlord can use when faced with rising costs in a rental market that remains stubbornly flat. We seek to explore what some of those techniques are and how you can use them to ensure that you can remain in the game even if rental rates aren't moving. 

Work on Tenant Satisfaction 

Focusing on tenant satisfaction might seem like an odd place to start when you are concerned about your own rising costs. However, this is precisely the area that you need to focus on. The reality is that it is far more cost-effective to retain a current tenant than it is to try to find another one. As such, you should do what you can to keep your current tenants happy. There are many ways that you can go about this, including:

Promptly Responding to Maintenance Requests - One of the top concerns for tenants in any rental space revolves around getting their maintenance requests fulfilled. They want to live in a safe and comfortable space, and this means that they might have to call out for a maintenance service request from time to time. The sooner that you can respond to those requests and resolve them, the happier your tenants will be.

Respect Their Privacy - Everyone expects and is entitled to a certain level of privacy while they are within their own living quarters. You should always be respectful of this fact and allow your tenants to carry out their day-to-day lives with the privacy that they deserve. 

Maintain Flexibility and Communication - Whenever possible, you should try to be flexible and understanding with your tenants. You might opt to bend some rules for them such as allowing pets in their space or working out a payment plan if they fall behind on the rent. Don't let your tenants take advantage of your kindness, but always try to be understanding of where they are coming from as well. 

Those are a few ways that you can improve tenant satisfaction in a meaningful way. Small improvements like this can have significant impacts on your ability to retain the tenants who already live in your rental properties. 

Diversify Your Pool of Tenants 

When rental rates aren't moving, you can still take that time to expand your tenant pool and diversify the kinds of people that you are marketing to. It may be the case that you need to diversify the type of tenants that you are reaching out. The more diverse your pool of potential tenants, the more likely it is that you will enjoy stable and predictable income and growth. That can't always be said when you limit the scope of people that you reach out to. 

Diversifying your tenant pool may look like taking out advertisements on platforms that you haven't before. It might also mean expanding your geographic reach to a larger segment of the population than you once did. When you do that, you can put yourself in a position to speak with as large of a segment of the population as possible. 

Make Low-Cost Upgrades

Not every upgrade that you make to a rental property has to be costly to be worthwhile. In fact, some of the less expensive upgrades can pay off in spades when rental rates refuse to budge. These upgrades add value to the property, and that will pay off for you when rates start to climb again in the future. Those rates will eventually start moving again, and you certainly want to ensure that you are ready to capitalize on them when they do. Take the time while things are a little stagnant to put in those low-cost upgrades. 

Be Patient and Wait for This Cycle to End

The world of real estate is cyclical, and you can fully expect that the rental situation that you are experiencing now is not the one that you will experience forever. Be patient and understand that rates will eventually climb once again. It is simply a matter of waiting until the tide turns and things begin to head in the right direction once again. 

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Security Systems, yes or no?

Should You Have Security Systems on Your Rental Properties? | Pros and Cons

Should You Have Security Systems on Your Rental Properties? | Pros and Cons

Home security systems seem like a universally good idea. They provide added protection and lower insurance rates. But the issue becomes more complex when you're talking about a rental home. People feel differently about a security system installed and managed by someone other than the resident family. So the question is: should you install security system for your rental property?

It's important to weigh your options, costs, pros and cons, and the likely response from your tenants as you make this decision.

Pros and Cons of a Rental Home Security System

Pros

Lower insurance rates for comprehensive security

Security systems discourage crime and mischief

Greater protection for your property and tenants

Record of activities surrounding the house

Protecting a home during renovations and vacancies

Cons

Significant upfront installation costs

Tenants may be uncomfortable

Cost of monitoring or maintenance

Security System Installation Costs

The cost to install a basic outdoor security system is becoming more approachable. Camera resolution, digital storage, and data transmission technology are all increasing in quality and affordability. However, a comprehensive or managed security system still represnts a significant investment of a few hundred to several thousand dollars. For a live monitored system, expect an ongoing expense as well.

How Tenants Feel About Rental Home Security

Tenants often have mixed feelings about a security system installed by their landlord. To be fair, cameras watching your lifestyle controlled by someone else are something that could make anyone uncomfortable. Even if you turn over control to your tenants during their stay, they have every reason to believe that you still have admin access and could be watching their outdoor activities. Indoor cameras, of course, are out of the question.

However, other forms of security systems may be welcome. For example, tenants often appreciate locking gates, security codes, and other non-camera-related security measures designed to keep them and the house safe without any risk of invading their privacy.

Liability and Security Cameras

Landlords must also be acutely aware of liability issues for any property decision. While security cameras provide more security for your property, they come with some serious liability considerations. If your camera, even one pointed at a driveway or side yard can see through a window into a private room like a bedroom or bathroom, there are problems. Cameras that include neighbors in their scope may also create liability related to others' privacy.

Liability also becomes an issue if you are storing or transmitting footage of private activities regarding either tenants or neighbors.

Alternatives to Security Camera Systems

The good news is that there are several effective alternatives to security camera systems. You can protect your rental properties and your tenants effectively without introducing the problems inspired by the cameras themselves.

These alternatives can still contribute to lower insurance rates from implementing effective home security emasures while your tenants remain comfortable and may even feel more secure as a result of the security system installation.

Motion-Activated Outdoor Lights

One of the reasons motion-activated lights are so commonly seen is their simple and non-invasive protective results. No thief wants to be spotlighted as they sneak up to a house, and people often appreciate a little extra light when coming home late. Motion-activated lights effectively discourage mischief. They will even chase off wild animals from causing trouble in the yard while making tenants feel safe in the dark.

Entrance Detection Security Systems

You can also install a security system that detects open doors and windows. Commonly known as house alarms, entrance detection security systems keep track of whether doors and windows are closed and locked. Tenants who enjoy a high degree of home security will gladly take over house alarm management, and feel more protected by the system. This allows you to closely monitor entry to the home without pointing cameras toward your tenant's private indoor spaces.

Tenants are also less worried that the landlord may have some remaining control over a house alarm system compared to camera access. Especially if the system beeps with every door opening even for someone who has the code.

Temporary Camera Installations for Renovations and Vacancies

The final consideration is home security during times when the property is either vacant or more vulnerable during renovations. One of the biggest advantages of a camera security system is that you gain added protection and the ability to monitor a home when a tenant is not in residence. You can ensure no one has tried to illegally move in to your vacant property or interfere with renovation materials overnight.

Fortunately, with the modularity of modern camera systems, it is entirely possible to temporarily install a camera security system during times of vacancy and then remove the cameras again before your next tenant moves in.

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Desirable Features that are Rental Liabilities

6 "Desirable" Features That Are Liabilities in Rentals

You want your rental home to be profitable. One of the best ways to charge a little extra rent is to have luxury features that renters love. While it's easy to find lists of desirable features, what the trend lists don't tell you is the risks that come with each upgrade. Certain features may be in high demand, but renters don't realize the liabilities involved.

Whether you're considering properties for your portfolio or profitable renovations, it's important to know the risks associated with otherwise attractive features in a rental home.

Swimming Pools

If you've ever lived in a home with swimming pool, you know how much work they require. Cleaning, covering, and chlorinating in a constant cycle or the water because not just green, but a fetid water-filled pit and mosquito breeding ground.

If you have a rental property with a swimming pool, either you need renters comitted to maintaining the pool or to provide a pool service to keep the pool in good condition. Even well-maintained, pools increase the risk of on-proprty injuries and accidents.

Wall to Wall Carpet

There was a time when carpets were considered the height of home luxury. Now we know how quickly they accumulate wear-and-tear. Carpets require regular cleaning and replacement every few years. They get stained, compacted, burned, and the carpet pad is a magnet for mold after spills and leaks. In contrast, laminate wood floors are extremely popular right now and provide a flooring that is both more elegant and longer lasting.

While you might not turn down a home with carpets, wall to wall carpets will likely need to be replaced in the near future.

Solar Panels

Eco-friendly renters love the idea of renting a home with solar panels. But they won't expect the responsibility of maintaining those panels. In addition, the tie-in to the home's power system and the electrical grid add to the liability potential if something goes wrong. Like a swimming pool, solar panels are a feature landlords must plan to maintain themselves no matter how attractive renters find them.

All-White Kitchen/Bathroom

Then there's the oh-so-trendy all-white kitchen (or bathroom). An all-white design may look amazing when clean. However, nothing shows dirt, spills, or damage like an all-white kitchen. Scuffs on the cabinets, scratches in the cooktop, and other little wear-and-tear occurences will make an all-white kitchen fade all too quickly. 

Rental homes benefit from durable and wear-tolerant designs. Neutral colors and textured surfaces will not only help your tenants enjoy their kitchen between pristine cleanings, but it will also minimise the need for touch-ups during turnover for your kitchens (and bathrooms) to maintain their appeal.

Whole-Home Generators

A whole-home generator sounds like a great idea. Who doesn't want backup power during storms and outages? The only problem is that a whole-home generator isn't one of those convenient "set it and forget it" features you can let your tenants take care of. A large generator connected to the home's power grid needs constant maintenance and inspections. And if something goes wrong, the generator itself can become a source of danger. It might produce carbon monoxide, become a fire hazard, or cause a power surge in the home's electrical system if poorly maintained or used improperly.

Basement Bedrooms

Finished basements can be a big hit with renters who like the extra space and the potential for a sound-proofed den or home office. Some homes have a basement kitchen or a convenient extra bathroom. What you want to avoid is a basement bedroom or suite unless you are 100% sure that the bedroom conforms to the building code. In most states and cities, bedrooms absolutely must have a window (for fire escape reasons) and not all basements are suitable. While a house might have a finished basement, you can't list that space as a bedroom (and should encourage renters not to use it that way) unless it meets bedroom safety design requirements.

Building a Secure Rental Portfolio

When building your rental home portfolio, avoiding unecessary liability should factor into your plans.  Why take the risk of unecessary property damage, tenant injuries, excessive maintenance requirements, unpredictable equipment failure, or future safety-related lawsuits when you don't have to? Simply avoid these high-liability features no matter how attractive they might be to renters in your area.

For more useful insights on how to keep your rental portfolio safe and profitable, call Leaf Management.

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Unique Flips and Their Unique Risks

4 Unique Risks of Pier and Beam Flips—And How to Handle Them

Pier and beam homes are set on foundations of piers - concrete or wood posts set deep into the ground - and beams which support the house set on top of the piers. This type of foundation is excellent for regions with shifting soil and periodic flooding. So you'll see them frequently in regions where these conditions are common. Of course, like any architectural style, pier and beam homes also come with their own challenges.

When flipping a house with a pier and beam foundation,  it's important to watch out for the unique risks that come with a house that's up off the ground. Let's talk about what to expect and how to handle each challenge to make your flip a success.

1) Pests Below the House

Pier and beam homes have a crawl space that is usually not well-sealed this means it creates a sheltered space for pests to move in. From local insects to rodent colonies, any pier and beam property might be home to an entire secret "family" below. This can catch flippers unawares but if you know it's a risk, the proactive steps are easy to plan.

Have the area below the house inspected for pests big and small. If there are insects, call the exterminator. If there are bees, have them collected by a pollinator preservation service. And if there are rodents, call animal control for humane removal, if possible. Then leave deterrents and seal up the outer sheathing to keep them from coming back.

2) Hidden Mold Growth

Pier and beam can also hide a different kind of colony. Mold colonies love to live below pier and beam homes where moisture gets trapped between the lumber beams and the damp earth below.  It's dark and protected, the perfect environment for vast and dangerous mold growth. This can pose a health hazard and long-term structural hazard if undetected. But knowing is half the battle when it comes to mold.

Have the crawl space of your flip inspected for mold. Make sure mold isn't eating away at the wooden beams or any wooden elements of the piers. Check for sponginess and hidden spaces. If mold is found, call a local mold remediation service to have it removed. Extensive mold damage can mean you might need foundation repairs as well, but pier and beam repairs tend to be more affordable and less extensive than slab foundation repairs.

3) DIY Plumbing Arrangements

Another risk that you might not see coming with a pier and beam flip is DIY plumbing (or electrical) arrangements. Because previous owners could reach the plumbing under the house, they might have decided to get creative about adding new fixtures or repairing damaged pipes. This could cause some serious problems in the future, including issues with building codes. It may be even more problematic if there are DIY electrical splices down there.

Get your crawl space inspected by a licensed plumber and have anything questionable built to code. Do the same with electrician if you see unsafe or DIY-looking work below.  This ensures you will be legally protected and future residents will be safer when it comes time to sell or rent the home.

4) Damaged Piers or Sagging Beams

Pier and beam foundations also have a shorter lifespan than most slab foundations. However, the individual components can be shored up, repaired, or replaced more easily than a concrete slab. Check the level of the floors inside the home and check the pier and beam structure below the house to find out if there are any lurking maintenance issues or major repairs that need to take place before you complete the flip.

Flipping a Pier and Beam Property

When planning to flip a home on a pier and beam foundation, make sure to have the crawlspace inspected and calculate for proactive maintenance steps in your total flipping project budget.  While it is possible that a pier and beam home might have none of these problems, it's always better to never be caught by surprise.  Leaf Management has worked with properties in every architectural scope and our pros have useful insights to improve your local flipping strategy. Contact us today to learn more about how we can help you pick and plan the most profitablef flips.

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Security Deposit Best Practices

Landlord Security Deposit Tips and Best Practices

Security deposits represent an agreement of trust and security between a landlord and their tenants. When a tenant pays the security deposit, they agree to take care of the property or accept deductions from the money they could get back. When a landlord sends the security deposit back, they are acknowledging that the tenants were good stewards of the property. It encourages responsibility, timely repairs, and teamwork to protect your investment. This is why it's important for landlords to have a rock-solid policy that both rewards good tenants and fairly covers expenses for undue damage and costs.

The security deposit covers for tenants who are rough on a house, even if they are not malicious, and eases guilt if tenants have to leave an inconvenient mess due to a personal emergency. It also rewards tenants who can take the time to fill holes, paint over scuffs, and request repairs before they leave by sending money to them during their move, when they likely need it the most.

So, what are the best practices for managing security deposits as a landlord? Here's how to use security deposits both to protect your properties and reward good tenants.

Set a Reasonable Security Deposit

The first step is to set a security deposit amount in proportion to the property. States that have laws regarding security deposit typically set the limit at this amount, as well. Setting the security deposit higher than one month's rent is only reasonable (and possible) in states with a higher limit and with high-end properties where your tenants are more likely to be high-income with more liquid capital to invest in a rental home up-front.

Define What Can Be Deducted From the Deposit

Next, clearly define the damage and expenses that can be deducted from a security deposit. This should exclude normal wear-and-tear that can occur no matter how quietly a family lives. It should include overt damage, unreported repairs, and cleanup required if the tenants left a mess.

What to Deduct

Holes in the walls

Burnt or badly scratched floors

Broken plumbing and major clogs

Unreported damage

Unreported visible and excessive mold

Unpaid utility bills

Unpaid rent

Abandoned property disposal

Valuable property shipping to the tenant's new location

Destroyed landscaping features

What Not to Deduct

Minor nail holes 

Scuffs on walls and doors

Loose but not broken fixtures

Worn but not damaged carpets

Dry grass and flower beds

A few missed non-valuable items (lost socks)

Complete the Move-In and Move-Out Inspections

Move-in and move-out inspections are valuable for both landlords and tenants. A move-in inspection proves the condition of the home just before the tenant moves in. Make sure the inspection is done right, with photographs and notes that are stored as records in your property manage documents or online platform. 

The move-out inspection proves the condition of the property immediately after the tenant moves out. Make sure this is also completed thoroughly with photos, notes, and records. The move-out inspection should be completed on the last day, with the tenant present if possible. If the tenant can't stay, complete the inspection ASAP after the truck is gone with a hard-coded timestamp.

This ensures that any damages you deduct from the security deposit are definitely left behind by the tenant. And if any damage occurs after they are gone, it cannot be charged to them.

Respond Quickly to Repair Requests

During the tenant's stay, make it clear that you welcome repair requests for the good of the property. Then, respond to requests with a friendly attitude and send your repair teams as quickly as possible. This builds a routine of teamwork with your tenants to keep your property in top condition, prevent little problems from growing into major damage, and addresses issues promptly.

Not only do quick and friendly repairs make tenants happy, it also increases the overall quality of the home when your tenants hand it back so there is a far lower chance of problems that could be charged to the security deposit. If tenants complete their duty to report needed repairs, they won't be charged for the repair costs.

Provide a Move-Out Checklist

Help your tenants leave the house in the best possible condition with a move-out checklist. When your tenants report that they won't be renewing the lease, or 2 months before their move-out date, provide a checklist of everything that will be included in the move-out inspection. 

Remind your tenants to:

Fill nail holes from decorations and furniture installations they remove

Touch up paint over scuffs and minor damage, or request your assistance to do so (if your paint colors are hard to match)

Clear out all storage areas, including often-forgotten spaces like the attic or crawl space

Broom-clean, vacuum, and wipe down the house. It doesn't have to be spotless, but empty and clean

Request any final repairs before they are penalized

You can also provide a copy of the move-in inspection with photos and notes to show the move-in condition of the house. Tenants who address the move-out checklist can secure all or most of their security deposit returned.

Return the Security Deposit On Time

Check your state laws to determine your time limit on returning the security deposit. Check with your tenants on the best route to send them the money back, and do so within that time limit. If you make deductions, define each one in an itemized list including the damage and the repair costs.

Clarity can ensure that your tenants understand any deductions and appreciate your prompt return of money they can use to help smooth their transition to a new home.

Handle Security Deposits Right with Leaf Management

If you want to make sure every one of your rental homes handles inspections and security deposits correctly and on-time, Leaf Management can help. Our skilled property management team will ensure that move-in and move-out inspections are conducted with full documentation, your tenants receive timely repairs, move-out checklists are sent out, and security deposits are sent back with itemized deductions in time with the state laws for each property location. Contact us today to explore property management for your rental homes.

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Adding Someone to a Lease

Can You Add Someone to a Lease?

A rental home lease is usually one year long. However, life rarely conforms to that kind of schedule. When people need to change living arrangements, these moments happen organically. Perhaps your romantic partner is ready to move in, or maybe a good friend needs a place to stay. You might have a roommate moving out and need to bring in someone new. There are two sides to each situation. One side is personal and the other is logistics.

Inviting someone to live with you is personal, but adding them to the lease is absolutely necessary. Any time someone will be joining you for more than a single month, they probably need to also join your rental home lease.

Can You Add Someone to a Lease?

Yes. It's easy to add someone to a lease if you understand the process. 

Reasons Why a New Person Might Need to Join Your Lease

Moving In a Romantic Partner

Welcoming a Friend Who Needs a New Place

Taking Care of a Relative

Sharing the Rent with a New Roommate

How to Add Someone to a Rental Home Lease

To add a new person to your lease, they will need to fill out an application. This provides information about the new person's income to run a background check . There will be a simple 4-step process:

Fill out a new tenant application

Pay the application fee

Complete the background check

Get added to the lease

An application ensures that landlords know who is living in their community and occupying each unit. In most cases, the new person will be approved - especially if you have already met the rent-to-income financial requirements. Then, the new person will be asked to sign a copy of the lease. 

Landlord will make a new copy of the lease available with all current names, either printed or digital.

Why Add To Your Lease vs Just Moving In

There are plenty of reasons why someone might move in. Life happens, and living arrangements can change. However, a long-term guest is not the same thing as living together with a romantic partner or having an official roommate.

Equality

Two adults on a lease are equals. They are equally responsible for paying rent and taking care of the rental home. With only one person on the lease, the other person is just a guest. They are both staying on the good graces of the leased resident and also free to leave whenever they want without obligations. Sharing a lease is sharing permanance and equality.

Following the Rules

Leases also usually have rules regarding long-term guests. You could get into trouble if someone is living in your rental home that didn't go through the application process. This is seen as potentially unsafe by landlords because non-leased residents can lead to liability issues. If you don't want to violate your own lease, new living partners should apply, get their background check, and get officially added to the lease.

The Benefits of Adding Someone to Your Lease

Being on the lease provides some important benefits for everyone who shares a rental home. This isn't just for the sake of compliance with the lease terms regarding long-term guests. The current resident, new resident, and landlords benefit when everyone is on the lease.

Tenant Rights and Protections

The new resident gains the full rights and protections of a legal tenant. This includes the right to request repairs, access to amenities, and respect of their possessions as a rightful resident of the rental home.

Proof of Residence

The new resident can use their recently signed lease as proof of residence. This can be useful when applying for things like insurance, jobs, identification, and local discounts, among other things.

Shared Rent Responsibility

The current resident gains assurance that their new roommate can be held equally responsible for the rent. This often provides peace of mind when friends or friendly acquaintances move in together.

Liability for Damages

Likewise, all parties share liability for damage so no one can be left fully in the lurch if something goes wrong.

Can You Remove Someone from a Lease?

Yes. Swapping roommates is completely normal. When someone moves out, the practical answer is to have them removed from the lease. This gives you the right to take back their key and for all remaining (or new) residents to claim full control over the home.

You can have someone removed from the lease by talking to the landlord. If the person confirms that they are moving out, they can sign an addendum document that removes them from the lease for the rest of the term year.

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Managing Rental Properties While Traveling

How to Manage Your Rentals When You Want to Start Traveling More

For years, you've managed your property yourself. Now, however, you need more flexibility in your life. Perhaps you've retired, and you're ready to start traveling more. Maybe you just need more space in your schedule. If you're ready for a change in your overall rental management responsibilities, these strategies can help you accomplish your goals. 

1. Have a Home Warranty

With a home warranty, the company responsible for maintaining that warranty will manage many basic callout responsibilities for you. They'll have a team of contractors on call who can take care of essential tasks, freeing you up to focus more on other responsibilities in your life. Furthermore, a home warranty can make those repairs more affordable, which means you can designate funds to your new travel plans. 

2. Build Up a Network of Contractors

When you don't know and trust the contractors doing work on your rental property, you have to keep a much closer eye on any repairs or maintenance. Furthermore, you may have to spend time finding the right company to come out and take care of those tasks--a time sink you don't want to have to worry about when you're on vacation. If you're trying to free up time in your rental management schedule, build up a network of trusted contractors. That may include:

HVAC maintenance

Yard work

Plumbing

General repairs

Cleaning

When you have those contractors already on call, you know who to turn to when there's an issue--and trust that they'll take care of those repairs effectively and efficiently. Furthermore, your team can take care of the regular tasks that go into maintaining or turning around a rental property, whether you need cleaners to come in and take care of move-out tasks or you need yard maintenance taken care of while you're between renters. 

3. Utilize a Property Management Company

If you've always managed your rental properties on your own, working with a property management company for the first time can feel daunting. A property management company, however, can take care of many of the tasks and responsibilities that fill up your schedule and demand your time, allowing you to enjoy more passive income from your rentals. Property management companies can handle:

Finding and selecting tenants

Collecting and managing rent payments

Inspecting your properties

Arranging for needed maintenance and repairs on the property

Checking in on vacant properties

With the help of a property management company, you won't have to worry about late-night, last-minute calls from renters, nor will you have to be there in person to take care of rent collection and other vital tasks. Instead, you can simply feel confident that your property is being taken care of while you enjoy your newfound freedom. 

4. Use Technology Effectively

Modern solutions allow you more freedom than ever to automate the tasks related to property management. You can automate messages for your tenants, including rent reminders or late rent notifications. Technology can also make it easier for tenants to automatically report problems with the property through a website or app, which means that you won't have to take those calls directly. Technology can even simplify rent collection: instead of having to make contact with a tenant directly, you can let them take care of those tasks digitally. 

5. Choose the Right Tenants

Some tenants naturally cause more problems than others--and that often means a lot of time and energy spent dealing with them. Whether you have a tenant that you have to chase down each month to get your rent payments or a tenant who has caused more damage than anticipated to the property, chances are, you're familiar with those challenges. Taking the time to screen your tenants properly can help avoid unnecessary time spent on your rental management efforts.

Make the Most of Your Time

When you have rental properties to manage, it can quickly become a heavy demand on your time and energy. However, when you have the right team on hand, you're prepared to automate essential tasks, and you have the right team on your side, those management tasks suddenly become much more manageable. Look for strategies that will allow you to reduce stress and free up time as you manage your properties. 

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Property Management Documents

What You Can Learn from Property Management Statements and Reports

How to Review Property Management Statements From Your PM

You are an investment property owner.  You own rental homes, townhouses, or apartments that are run by a property management service. Property managers handle the daily and monthly routine of keeping your tenants happy and your properties in good condition. This generally involves both collecting rent and covering expenses.

The business partnership relies on transparency, achieved through the monthly reports you receive from your property manager (PM). But how do you read the property management statements? Learning to read these statements with clarity can help you keep tabs on your business and understand when everything is going well or when there are signs of trouble.

Anatomy of a Property Management Report

A PM report usually comes in the form of a financial statement. This statement gives you a summary of income, expenses, and final balance for each month. The best place to start is by understanding what each typical segment of the report means in relation to your rental home business. 

The anatomy of a PM report includes:

Revenue

Expenses

Net income

Owner Distribution

There may be other details depending on your property manager and their reporting system. Here's what each of these sections means:

Revenue: Total Earnings

Revenue is your total income or earnings for the month. It includes the income from the rent roll (everyone's rent payments) along with any other sources of income like fees or deposits. Like any business, however, revenue is only the starting point.

Expenses: Itemized Costs

After revenue, expenses are listed. Expenses are often itemized with one or two words of detail explaining why the cost was accrued. Expenses represent your routine and one-time operational costs spent each month.

Expenses can include:

Maintenance and repairs

Utility bills

Landscaping services

Tenant turnover (marketing/screening)

Property management service

Net Income: Revenue - Expenses

Net income is your realistic profits, calculated by subtracting expenses from revenue. Net income is how much cash your property managers have at the end of the month after collecting rents and taking care of costs.

Owner Distribution: Take-Home Income

Lastly, "Owner Distribution" represents how much you are paid as the property owner at the end of each month. 

Business As Usual

The best way to determine if everything is going smoothly is when your monthly statements are all about the same. If your rent income remains stable and your expenses stay within an expected range in terms of cost and frequency, then your properties are operating in a steady fashion. Occasional unexpected repairs are also par for the course when operating rental homes.

Indications of Potential Problems

When it comes to reading your property management reports, consistency is key. When something changes, look closely to determine if it is a one-time anomaly or indicates a new problem. Signs of potential problems in your PM statements include:

Inconsistent income or expense trends

Unusually high additional income from fees

More repair orders than usual, especially if they focus on a single property.

Unexpectedly high maintenance costs

These and other inconsistencies should be paired with communication. Often, there will be a reason that will fit into a larger pattern, like replacing old appliances, tenant turnover, or repairs after a local storm.

Asking the Right Questions

When reading your property management statements, you will get the clearest view by asking the right questions. Don't hesitate to get in touch and talk about how the reports are laid out, what is included in each summary, or an itemized list of specific income sources and expenses. A good property manager is always ready to explain their process and help you understand what is going on with your properties in terms of both cash flow and context.

An initial discussion about your PM statements can help you keep a clear view of your properties through future statements and over time. Should anything unexpected appear in your PM statements, you can always inquire, verify, and make sure that your properties are still being managed in a practical and profitable way.

Mastering Your Investment Finances with Leaf Management

The best way to achieve full understanding and confidence in your property management reports is to work with a skilled PM team. Leaf Management always provides detailed monthly statements and full transparency regarding how your properties are managed and the effects on your cash flow.  Contact us to learn more about how we provide clear and helpful statements.

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Verifying Repair Requests

How to Verify That Property Repair Requests Are Legitimate

Protecting your investments requires constant vigilance. When you own rental homes, that involves carefully screening tenants, monitoring expenses, and keeping tabs on your property management team. Reviewing repair requests and expenses is only natural. But how can you confirm that each repair request is legitimate, necessary, and handled in the best way possible?

Verifying property repair requests is a natural part of monitoring your rental homes. Here are the practical steps you can take to ensure each repair is valid and correct.

Follow Up With Your Property Manager

When you see a repair request that you want to verify, the first step is to get in touch with your property manager. It's always fine to ask for context on a repair request or a reported repair expense. Your property manager can provide context for the situation, the original problem, and why the repair was necessary. 

They can share information on the contractors hired for the repair, their findings after an inspection, and the repair itself. If this aligns with your knowledge of the property, you may feel more confident about the situation or seek further verification that will align with the property manager's report.

Communicate with the Tenant

You can also check in with the tenant. Ask them about their recent repair request and what seems to be the problem. You can get the full story of their issue, from the first signs of trouble to their decision to request a repair. Hearing from the tenant can help you confirm that the issue is real and how it developed from their perspective. Tenants don't have anything to gain from false repair requests, and they often appreciate it when their landlord takes the time to learn about any problems they've had with the house.

Ask for Evidence of the Work Done

The next step you can take is to request evidence of the work done. There are several ways to verify that contractors worked on the issue, provided a report, and completed an invoice in alignment with their own business procedures. The contractors provide a third party verification that there was a legitimate problem, they worked on that problem, and then provided a standard invoice.

You can ask to see the inspection report or to be forwarded any email communications with the contractor. You can also get in touch directly to ask about the recent work they did or are scheduled to do on your property.

Understand the Issue and Repair History

The better you understand each property, the easier you can verify repair requests. Some of your houses will have old appliances that are more likely to need repairs. Some may have old plumbing that is prone to clogs or leaks. Each home has its own maintenance requirements and patterns. For some properties, you may already have a clear view of their maintenance needs. Newer acquisitions may be less familiar, and you can benefit from looking over the inspection reports and the growing pattern of maintenance requirements for each house.

Get the Big Picture with Statement Reviews

Another way to verify property repair requests is to routinely review your property management statements. This can help you get the big picture regarding patterns, expenses, and what is reasonable. It can give you a view of the typical rate of repairs for one property or for your portfolio of properties.  It can help you estimate reasonable expenses over a year or five years rather than assessing one repair at a time. 

It can still be useful to verify individual repairs, especially if the request was unexpected or if you are concerned about the maintenance of each home. However, getting a clear view of what is normal can help ease your concerns each time a repair request appears on your property management statements.

Stay Connected to Your Properties with Leaf Management

At Leaf Management, we help property owners enjoy full understanding of each property we manage, including maintenance patterns and verification of repair requests. If you want to keep your thumb on the pulse of your investment portfolio and enjoy clarity regarding each expense, we will ensure you stay in the loop while enjoying the convenience and efficiency of professional property management. Contact us today to learn more.

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Protecting Empty Rental Property During Winter

The most high-risk time to have a vacant property is in the depth of a harsh winter. Homes rely on the constant heating used by occupants to minimize winter damage. If it becomes necessary to leave a home vacant through an intense winter region like the Boston area, it's important to take steps to protect your property -especially older homes that may have more delicate systems and less insulation. The answer lies in proper winterizing. Weather Seal Windows and Doors Windows and doors in your rental home are the most likely to become a source of cold drafts and lost heat in the winter. In an older home, windows may rattle in their frames, proving that they are not effectively stopping airflow from the outside to the inside. If you can see light around your closed exterior doors, they are also allowing too much winter air through. To winterize windows and doors, start with the caulk tube around window frame parts that do not slide. Then take a fresh roll of weatherstripping and install it on each exterior door - possibly replacing the previous weather stripping. For double-paned windows that rattle, you may need a window replacement to regain the sealed-panes insulation effect. Fill In Cracks Around the House, Examine the interior and exterior of each property and look for cracks. Fill them in with caulk and sealant to keep the cold out in the winter and keep pests out in the summer. This will make the home more secure when vacant and later when you have new tenants. Insulate Your Pipes, Make sure your pipes are safe from freezing and bursting. You can winterize a rental home by insulating pipes or applying a tested heat wire line. Insulation helps pipes avoid freezing while a heat wire actually applies a small amount of heat to the pipes to prevent them from freezing entirely. Just don't rely 100% on heat wire if you are going to turn off the power during the home's vacant period. Turn Off & Cover Outdoor Faucets, Switch off all outdoor faucets and watering apparata and place an insulating cover over your outdoor faucets. This will prevent the cold from outside to start the process of internal pipes freezing. Ensure Proper Attic Ventilation and Insulation, Have each attic ventilation inspected. If necessary, improve the ventilation plan and add insulation to the structure for ideal winter care. An attic, when well-insulated and ventilated - can actually help with annual snow maintenance. The rising heat encourages snow to slide off and can even help to prevent damaging ice dams from forming. It will also improve energy efficiency when new tenants move in.  Maintain the Fireplace & Close Unused Fireplaces, Most older homes have at least one fireplace or wood-burning stove. For the primary fireplace, make sure the flu is working and the masonry is strong. This will help prepare it for your next tenants. In addition, any fireplaces that won't be in use for a while should be closed up to prevent heat loss through the chimney and can prevent wildlife from trying to nest in the chimney. Don't forget to clear out any fireplace debris, including ash traps, to ensure the home is clean and ready to be rented again. Fully Repair Your Roof and Siding. Knowing the weather, it is always best to enter a harsh winter with a fully maintained roof and siding. Winterizing a vacant rental home is the best time to maintain the roof and siding. This will both help prevent unnoticed winter damage and make the home more appealing to the next tenants that you bring in. A home with well-tended roof and siding is more capable of resisting damage during winter storms. Cover the Windows -- Minimize cold penetration through window glass not just with new caulk, but also heavy window coverings. Covered windows provide a degree of insulation and make a home look less vacant, which can reduce the risk of mischief. 

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Minimizing Late Rent Payments

How to Minimize the Risk of Late Rent Payments

On-time rental payments are the hallmark of a healthy landlord-tenant relationship. When your tenant pays their rent on time, it is an indication that they are financially stable and respect the terms of their rental contract. In contrast, late rent payments can indicate a number of potential problems, from one poorly timed paycheck to a slippery slope of financial instability. 

Late payments also pose a challenge for landlords when maintaining a steady cash flow and a good relationship with your tenants. No one wants to have to chase down rent, so what can you do to minimize the risk of late rent payments?

Accept a Wide Range of Payment Options

First, make it easy for your tenants to pay their rent in whatever way is most convenient. When rent can be paid the same way youre tenants handle their other bills and online shopping, it is more likely to be taken care of during each person's usual monthly routine. However, as we live in such a diverse and digitally hybrid world, each person's preference and routine may be a little different.

Popular payment options include:

Credit card

Debit card

Digital wallets (ex: ApplePay, GooglePay, PayPal)

Paper checks

Your best bet is to set up a tenant portal that accepts online payments using a conventional payment processing service that will be familiar to anyone who shops or pays for services online.

Enable Auto Payments

Auto-pay is a life saver for the busy and absent-minded. Many tenants don't mean to miss rent, but life is busy and monthly tasks are far apart. Auto-pay enables an automatic transfer from the tenant's bank account or credit card every month. 

Essentially, auto-pay is a rent subscription. Tenants that have many subscriptions or are familiar with auto-paying bills often prefer to put their rent on a timer instead of remembering to pay it manually each month.

Screen for On-Time Payment History

It's also important to select tenants with a positive payment history. When choosing future tenants, select applicants that appear to have a financial history of on-time payments and well-managed credit accounts. These are indicaators that a person is generally able to pay their bills on time through both financial security and personal responsibility.

Clarify Late Fees and Penalties

Let your tenants know that there are penalties for late rent payment from the outset. Include late rent fees in the lease contract and mention the late fee when you go over the terms with a new or prospective tenant. There's no need to stress the issue, but ensure that your tenants see and understand that a late fee or certain penalties will be enacted if they are X number of days late with the rent on any given month.

Provide a Small Grace Period

While a late fee can discourage careless late rent payment, it's also helpful to provide a grace period. A grace period is typically a few days after the rent date in which a payment can be late without penalty. Grace periods are useful to maintain good relations with well-meaning and responsible tenants because, as we know, delays happen.

Some tenants are paid on a specific day of the week, which doesn't always align with the first of the month.

A tenant may be paid on a bank holiday and unable to cash their check until a day or two later. 

A server error may delay or fail to send their payment.

A tenant may forget everything during a personal emergency or special holiday until next Monday rolls around.

The typical grace period is 5 days, but you can adapt your grace period based on what seems practical.

Send Reminders to Forgetful Tenants

Landlords have also had some success reminding absent-minded tenants a few days before rent is due. You can easily set up an automated message routine that will send an email or text message to tenants to help them remember to pay on time. This method is particularly useful when renting to students and other young populations who may be new to renting and responsible monthly routines.

Manage Every Tenant's Rental Schedule with Leaf Management

Reducing the risk of late rent benefits from a comprehensive approach and, sometimes, a personalized solution. The more properties you own, the more important your late rent prevention strategy becomes. Leaf Management can hel you balance the needs of your operating balance with individual tenant payment schedules. Contact us to explore property management services.

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Issues to Expect During Winter

he 7 Biggest Rental Property Problems You'll See in Heavy Winters

When you own a rental property in a wintery climate, be prepared for winter maintenance calls. Tenants rely on the tenant-landlord partnership to help keep the property warm, safe, and in livable condition despite the winter's best efforts. Heavy winters involve deep layers of snow, ice, far-below-freezing temperatures, and strange moisture issues. 

Hearty winter-region tenants will often be able to navigate many of the routine tasks like keeping the gutters clear and shoveling the driveway, but there are a number of tasks and maintenance issues that you'll want to address and plan for as the property owner.

1) Not Enough Hot Water / Water Not Hot Enough

Water heater troubles are a known issue in the deep winter. As the ambient temperature drops, water heaters struggle to get the tank to hot temperatures. Cooler air temperatures around the tank and colder water entering through the intake pipe both make up part of the problem.

If your tenants call regarding not enough hot water or their water is not hot enough, there are two likely solutions and enacting both is a good idea.

Flush and service the water heater - send a maintenance service to flush, clean, and tune-up the water heater. This can help you pre-empt leaks, pilot light problems, and temperature sensor calibration issues as well.

Wrap the water heater - Apply a special insulating blanket designed for water heaters to help keep the water warmer and safe from winter temperatures.

2) Plumbing Problems: Clogs to Burst Pipes

Cold weather often brings plumbing problems. Clogs are common because materials tend to congeal in the cold and are more likely to form a clog instead of flowing away. In extremely cold weather, pipes can even burst when the water inside freezes.

You can reduce the risk of both problems by insulating the pipes in your rental homes, especially in unheated spaces like the basement, attic, and crawl space. But it also helps to keep a plumber on call for winter clogs.

3) HVAC Heating Problems and Cold Drafts

Cold drafts, not enough heat, or the HVAC heater not working are crucial problems for your rental property during a heavy winter. It is your responsibility to keep your tenants warm with a working heating system.

For cold drafts:

Caulk up the windows

Reinstall weather stripping

Seal cracks

Add insulation to the attic

Have the HVAC air-balanced

For HVAC heating problems:

Send an HVAC service in the autumn before the hard winter sets in. Have them clean and tune up the heater.

Be prepared to send an emergency heating repair service at any time, day or night

Provide supplementary heating like firewood and battery-powered blankets during heating or power outages.

4) Leaks from Roof to Foundation

Heavy winters mean tons of snow and ice, which can lead to unexpected moisture problems. During the daily light melt and re-freeze cycle, puddles can cause problems for your foundation, while piled snow can cause problems for your roof.

Make sure your gutters, roof, and attic are in top form and ready for winter before the snows, and take steps to protect your foundation from winter moisture seepage. Foundation coatings and barriers are a popular choice.

If a maintenance emergency occurs mid-winter, have reliable contractors on-call who can do winter repairs.

5) Fallen Tree Limbs

Heavy snow can also wreak havoc on your trees. One of the most disastrous problems for a rental house is fallen tree limbs broken by heavy snow. Tree limbs can do serious damage to your roof and siding depending on the size and placement of the limb.

Trim trees so they don't overhang the house during warmer seasons to prevent fallen tree limb damage. If a tree limb falls during the winter, call for emergency repairs depending on the type of damage that was done.

6) Blocked Fireplace Chimney

If your rental house has a fireplace, you can bet that your tenants will test it out in the winter. Fires are cheerful, warm, and add to holiday cheer. But first, the chimney needs to be clear. From a hard-to-see flue control to birds nesting in the chimney, don't be surprised if tenants call to request maintenance so the fireplace works correctly.

If you're lucky, your tenants will know how to check before they light the first fire.

For homes with a fireplace, consider scheduling a chimney inspection and provide a quick guide to working the flue before the temperature plummets too far. Providing seasoned firewood can also help encourage only burning clean and advisable fuel.

7) Outdoor Wood Rot

For homes with a deck, porch, balcony, or wooden fence: watch out for winter wood rot. The moisture and cold combined can acellerate wood rot in the winter, leading to loose railings and crumbling deck boards. Sealing your deck and other outdoor wood assets in the summer is the best way to prevent the risk of outdoor wood rot during a heavy winter, but you can also advise tenants to regularly sweep the deck and clear heavy snow from the balcony.

Handle Winter Rental Maintenance with Leaf Management

Preparing a rental house to keep your tenants safe through heavy winters requires careful planning, and handling winter maintenance emergencies is a must. Gain the benefit of a team that understands winter climates with the help of Leaf Management.