“Fiduciary” is basically defined by Black’s Law Dictionary as a term derived from Roman law which means, as a noun, a person or legal entity,
Your commercial tenant failed to pay rent. You have heard that things are not going very well for them, but now it is apparent. As
If you are planning any renovations to your investment or rental properties in the near future you should consider going as green as possible. Improving
Property managers and rental property management companies should help owners and investors improve their return on investment with every action they take with the owner’s properties. A prudent property manager will make suggestions on improving the exterior of the house with cost effective suggestions. Improvements will help retain existing tenants and will make the property much easier to rent if vacant. If your existing manager doesn’t make these types of suggestions maybe it’s time to look for a new property management company. The following is a list of six (6) easy and cost effective exterior improvements.
First impressions matter immensely, thus a property owner should never neglect their investment property’s landscaping. A real estate agent who is getting a property ready for sale spends time, energy and effort making the most of a property’s curb appeal to entice a potential buyer to buy for the highest possible price. A rule of thumb is that a realtor who invests $1 dollar of curb appeal improvements will gain their clients $3 of return at close of escrow. In the same vein, a property manager should counsel his clients to invest some time, energy and effort in sprucing up their rental property exterior landscaping to help attract more potential renters or keep the ones they have. The art of providing just enough curb appeal, just the right balance of attractive landscaping, while maintaining a fixed maintenance budget can be achieved through education, experience, and common sense. Experienced property managers should be able to put together a plan for their owners at no additional expense.
The cost of hiring a property management company to handle investment properties is significantly less than most property owners believe. Investment property owners who manage their own property with the idea that property management costs are too much might be mistaken as to the actual real costs. Additionally, a large percentage of property owners do not take advantage of all of the tax strategies available to them. For example, if a property owner manages their investment portfolio out of their home office there may be some business related items they are not expensing. Interest in all forms including mortgage interest, equity lines of credit interest, and any business loan interest are all expenses which are typically deductible. Losses like casualties, disasters, and thefts are expenses which properly accounted for are deductible.
The Fair Housing Act, enacted as part of the Civil Rights Act of 1968 under President Lyndon B. Johnson, was designed to eliminate discrimination in housing. Despite its passage over five decades ago, violations of fair housing principles persist. For property managers, compliance with these laws is not only a legal obligation but also a professional and ethical imperative. Failing to adhere to these standards can result in lawsuits, reputational damage, and substantial financial penalties. We look at key aspects of fair housing laws that property managers must understand, highlighting common challenges and best practices for compliance.
During winter and rainy months property manager and professional property management companies need to be mindful of potential water intrusion problems with each and every property in their portfolio. Many buildings start leaking right after construction, but do not manifest the water intrusion and building damage until years after the leakage has started. Water intrusion can lead to structural damage, rot, mold, termite, sick building syndrome and eventually significant mitigation repair costs.
A prudent property manager will spend time during periodic inspections of the property to help prevent these issues from occurring and also ferreting out any existing and ongoing issues. A property owner should expect nothing less from their property manager. If a property manager fails to take reasonable steps to detect and address water intrusion, they could be held liable for damages, particularly if the issue leads to further property damage or health risks for tenants. However, liability depends on the terms of the management agreement and whether the property manager acted within the scope of their responsibilities.
A California law enacted in 2009 is finally taking effect and causing concerns among property owners, sellers, buyers, and realtors. California’s water-saving plumbing laws, such as the requirements under Senate Bill 407, have significantly impacted investment properties by mandating the use of water-efficient fixtures in all residential and commercial properties. Effective since 2017, these regulations require property owners to upgrade older plumbing fixtures, such as toilets, showerheads, and faucets, to models that meet specific water efficiency standards. For investment property owners, these upgrades can present an upfront financial burden, especially for those managing multiple units or older properties. However, the long-term benefits often outweigh the initial costs. Water-efficient fixtures can reduce utility expenses, making properties more appealing to tenants and increasing overall profitability. Additionally, compliance with these laws enhances the marketability of properties and prevents potential fines for non-compliance. Understanding and budgeting for these upgrades has become an essential consideration for property investors in California.
Investors seeking diversification have frequently turned to a rental property or a collection of rental properties to even out and spread risk across their investment portfolios. As with any investment people should consider all of the issues, problems, and pitfalls along with the potential returns.
Unfortunately, a lot of investors aren’t aware of the potential problems and do not take the time to investigate these issues before they close escrow. A property management course and a course in basic real estate investment would be great investment time for someone considering rental properties as a source of investment income and long-term investment. Some of the problems and concerns are discussed below.
Partnering with Esquire Property Management Group allows owners to have peace of mind knowing their assets and properties are being evaluated on a daily basis for efficiency, appearance, and productivity.
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