Ziegel Group Realty
Sherman Oaks REALTORS® – Property Management – Leasing Services – Real Estate Attorney

Baby Boomers as Tenants

How to get Baby Boomers Tenants?

Who are the Baby Boomers? The generation of people that were born Between 1945 and the early 1960s.

Baby Boomers accounts for about 30% of the renters market.
According to data from the Joint Center for Housing Studies of Harvard University, renting increased for adults between ages 50 and 75 from 2004 to 2013.

So what are some Baby Boomers looking for?

Baby Boomers are looking to downsize while still keeping a high quality living. Landlord should try to offer higher end amenities, a quiet relaxed environment, the ability to entertain family and friends when visiting,  and please do not mention any senior citizens when advertizing of describing your property.

Read our article about: Amenities tenant are searching for in a rental

* Less Space – with the kids all grown up and out of the house, there is no need for so much space and they are ready to downsize.

* Less expenses – moving to a rental eliminates the need to pay Property Taxes, Homeowners Insurance, maintenance, repairs, etc.

* Selling their House allows the money to be used for other investments or lifestyle changes.

We at the Ziegel Group always highlight convenience when marketing properties to baby boomers, including maintenance services, length of lease agreements, and any community features that would encourage baby boomer renters to invite their family over to enjoy community pools, recreation rooms or picnic areas on the property.

https://en.wikipedia.org/wiki/Baby_boomers

Property Management Company

Why should you hire a Property Management Company?

Congratulations! You are an owner of a rental property. Deciding to work with or hire a property management company to represent your property is a big decision. While some owners self-manage their homes, using a management company is an alternative way to secure rental income for less stress and less dedicated time.
We at the Ziegel Group keep your property occupied by a reliable tenant and handle the dirty work, like late night phone calls, maintenance management, hunting down rent payments, or dealing with an eviction process.
Every task that we perform for your investment is done to promote the success of the property. If you are new to the industry, the Ziegel Group Property Management will also have all the appropriate leases, applications, notices of entry and other relevant documents, as well as screening procedures and knowledge of the landlord tenant laws in your state.
Some owners will base a management decision purely on the cost of services, and while cost should be considered, it is important to understand that our knowledge saves you money!
At the Ziegel Group monthly Property management fees starts at just $49

https://ziegelgroup.com/about/

landlord insurance vs. homeowners insurance

 Know the difference: Landlord Insurance vs. Homeowners Insurance

Insurance policies designed specifically for landlords provide added protection for financial loss and obligations associated with your rental properties.  While some landlords assume they can rely on their standard homeowners insurance to cover their rental units, homeowners coverage it usually not sufficient to protect an investment property.

Homeowners insurance covers owner-occupied homes while landlord insurance covers liability and damages connected to tenant occupied homes.

Depending on the insurance company you work with and the options you choose, your policy may consist of some or all these types of insurance coverage:

Dwelling Coverage – covers structural damage to the rental property from things like fire, vandalism, or a broken water heater.  The more expensive dwelling coverage policies will also cover damage caused to appliances or equipment on the property and damaged inflicted by malicious tenants.

Liability Coverage – provides coverage for expenses associated with injuries that occurred on your rental property that you are found to be legally responsible for.

Personal Property Coverage – covers damage to your personal items on the property (not your tenants’) like curtains or light fixtures.  This is especially important if your rent out a furnished home.

Loss of Income Coverage – if your property becomes unlivable due to damage and you can no longer collect rent from tenants, some policies allow you to receive the lost rental income for a limited amount of time until it is rentable again. However, most standard landlord policies won’t cover the lost rent due to an eviction or missed rent payments by tenants.

Flood Coverage – beyond dwelling coverage, specific flood coverage can protect you from water damage caused by things like negligent plumbing issues, rain, or busted pipes.

Acts of Nature Coverage – dwelling coverage has further limitations to structural damage or total loss as the result of tornadoes, hurricanes, and earthquakes which is why acts of nature coverage is important to consider.  Depending on your region you might need special protection to cover your property for instances like these.

Legal Fee Coverage – covers fees and costs of legal counsel if a tenant sues you or you need legal representation in court for owed rent money or ignored eviction notices.

Make sure you are appropriately protected in the event you need to file a claim for your rental property.  Without landlord insurance, you may find your claim is denied under standard homeowners insurance.  Landlord insurance is typically more expensive than homeowners insurance because landlords require more protection for their tenant occupied property.

When choosing your landlord insurance policy consider language about cash value versus replacement costs. If your property is older, the cash value can be significantly less the actual amount it costs to replace or rebuild damaged property.

Not every landlord will choose to include every available coverage option in their policy.  It is up the you to decide how much you want to spend on your premium in order to manage costs for damage or liability associated with your rental property.  An insurance provider will be able to review these coverage options and more to help you find the best policy for your needs.

Insurance for Tenants

Landlord insurance only protects the owner’s property and covered belongings.  Your tenants’ personal possessions are not covered under your policy.  It is good standard practice to require tenants to have their own renters insurance, which is an inexpensive way for your tenants to protect themselves and cover the cost of damaged or stolen goods.

Article courtesy:   rentecdirect.com

 

Ziegel Group Professional Tenant Screening, Tenant Credit Check, Property Management

Approved Credit report form with paperwork

Property Management for Professional Tenant Screening

It is highly recommended to screen a tenant with a credit report. The report gives insight into how well the tenant pays their bills. We at the Ziegel Group always screen tenants after accepting an application. Credit scores are a very legitimate and important piece of information that will give you an idea as to whether or not your tenant can be counted on to pay the rent and if they have enough cash leftover after paying off debtors. A credit score under 600 used to disqualify an applicant but nowadays credit scores are looked upon with a little more leniency than they used to be. The economic downfall in 2008 has changed this criteria a bit. A closer look has to be taken at the credit report. Many people, people looking to rent homes in fact, had their homes foreclosed upon and their credit has taken a big hit. If a prospect has a squeaky clean track record other than the foreclosure or short sale I often will consider it as less of an infraction since it is so common and really something that was not an option to many homeowners who found themselves in a bad mortgage. Another item that I overlook is poor credit history due to medical bills. We all know that medical bills can be extraordinarily expensive and sometimes unavoidable. Some things on a credit report that I never overlook are when a prospect hasn’t paid their utility bills, if they have an eviction, or collections that are within the last 6 months.
It’s important to look at the credit report closely as it can really paint a very accurate picture of how the prospect handles money. Tracking down tenants to collect rent every month is not something that any landlord or property manager wants to do. A credit check shows you current and delinquent accounts, collections, monthly obligations, account balances, FICO credit score, and more.
• Credit Scores are not as straight forward as you might think. Different credit reporting agencies report scores differently, so basing a decision on a score is not always going to provide the same results across all major credit agencies. For example, if the tenant recently lost their home to short sale or foreclosure, their score might be very low based entirely upon the loss of their home and should be factored in accordingly. Most landlords I have spoken with do not reject prospective tenants based on poor credit from the loss of a home.
• When a score is near or above 650, generally you can count on the tenant as a responsible bill payer. However, it’s still a good idea to review the content of the report to make sure there are no current obligations past due. If current obligations are past due, this is an indication that the tenant is financially strapped and may not be able to afford rent.
• Another component of a poor credit score can be related to medical bills. An uninsured person with even a short hospital stay can rack up tens to hundreds of thousands of dollars in medical bills in short order. It’s fairly impractical for most people to pay these bills at the time of visit and as such they can often be turned into collection. Because of this medical bills are often disregarded or lesser regarded when considering a prospective tenant’s credit worthiness. It is however important to take into consideration the tenant will have a portion of their income going to these bills, likely from garnishment. This reduces their income to afford rent and will impact your income to rent formula.

One of the biggest cash flow killers in property management is tenant turnover.

Tenants Turnover

When a tenant moves out of your rental property, not only do you miss out on monthly rental income from the unoccupied unit, but the costs continue to add up when you factor in the additional steps it takes to get your newly vacated unit rented again.
Costs Associated with Tenant Turnover:

Administration Costs – Time is money in most industries, and property management is no exception. When it comes to budgeting tenant turnover, you need to factor in the administrative time it takes to market your newly vacant property, process move-out paperwork, coordinate repairs and cleaning services, screen new applicants and process lease agreements for future tenants.

Marketing Costs – Sometimes a simple online listing is all it takes to get your vacant unit rented fast. But in a slower market, advertising your property can involve signs, flyers, or print ads, all of which will contribute to your bottom line.

Showing Costs – For serious prospects that want to visit your listed property, you will need to schedule time out of your day to present the vacant unit in person. If you live far away from your rental property, showing your unit in person can get expensive when you factor in traveling expenses.

Application Processing – Property managers and landlords should always approve rental applicants after reviewing tenant screening reports to discover an applicant’s financial responsibility, job stability, law abiding behavior and rental history. Credit, criminal, and eviction reports all cost money, which can be deferred to the applicant, but they involve time to review in order to make the best approval decision.

Cleaning Costs – Despite your tenants’ best efforts, they might not be able to get your property back to the level of cleanliness you require for the next tenant. Even if you use their security deposit to cover the cost of cleaning and repairs, there might be extra expenses that go beyond the deposit that will come out of your pocket. If the vacating tenant has lived in the property long enough, some of restoration expenses will not be covered by the security deposit at all.

Repair Costs – Once a tenant vacates the home, you have the opportunity to conduct a thorough inspection which may reveal some home maintenance repairs that must be handled before the next tenant moves in. Not only will repairs cost you money, but the longer it takes to get the property market ready, the longer you will be without rental income.

Lost Income – Without steady income coming in from regular rental payments, you will notice a hit to your bank account, that will continue to add up the longer your property sits vacant. This is will be especially noticeable if you are relying on rental income to cover a mortgage payment on the property.

Save Money During Tenant Turnover
Although tenant turnover is unavoidable in this industry, there are some steps you can take to manage the transition and keep costs at a minimum.

Start marketing the vacant property early – As soon as your current tenant gives notice about their intent to move, start looking for a new tenant. In a perfect world, you will have a new tenant ready to move in as soon as the current one moves out.

Minimize in-person showings – Only show the property to serious applicants, and try to get some initial screening questions out of the way in a phone interview, by asking some qualifying questions about income and job stability. You can also host an open house to show the property to multiple prospects at once.

Do a move-out inspection prior to your tenant vacating the unit. Set up a time to do a walk-through with your tenant so you can point out areas that need to be cleaned or fixed by your tenant. This step will help your tenants take an active approach to getting the property back to the condition it was when they moved in. You can also take this time to make a note of what additional maintenance you will need to do once the unit is vacant.

Reduce Tenant Turnover – The simple solution for avoiding tenant turnover is prevention. While you won’t be able to stop a tenant from moving out of town for a new job or to be closer to family, preventing local moves is the best way to keep vacancies at a minimum. Maintain a positive landlord-tenant relationship with good communication and timely response to tenant requests. Keep your rent priced at a fair market value and keep up on maintenance and property features.
Best case scenario, you will find a long-term, reliable tenant who pays rent on time and takes care of the property, with no intention of moving. But if one of your tenants does decide to move out, understanding the true cost of tenant turnover will help you budget your expenses and manage the process more efficiently.

WHEN A TENANT’S PERSONAL PROPERTY HAS BEEN LEFT IN THE RENTAL UNIT

When tenants move out of a rental unit, they are required to also move their personal property. (Personal property is everything which a person can own except for land. Personal property is also referred to as personal possessions or personal belongings.) California law has three different procedures which a landlord may follow to remove and dispose of personal property left in a rental unit after a tenant has vacated. A landlord who has properly followed one of the procedures cannot be held liable for any damages related to the property.
The three procedures apply to the following three situations:
1. The tenant has requested that the property be returned.
2. It appears that the property has been abandoned.
3. It appears that the property has been lost. (The owner is unknown.)
Which procedure a landlord should follow in any particular case depends upon the situation.
Some General Guidelines For All Situations.
Store property safely . . .
When a tenant has left personal property in a rental unit, the landlord should safely store the property. A landlord may choose to leave the property in the rental unit. But if the unit may be rented soon, the landlord should store the property elsewhere. Wherever the landlord chooses to store the property, it must be kept in a safe place, where the property will not be damaged or stolen. In storing the property, the landlord must use reasonable care to keep it safe. If property is lost or damaged, and if the landlord did not act in a deliberate or negligent manner in storing and caring for the property, the landlord will not be liable for any storage related loss
Act reasonably . . .
In deciding whether or not a particular case fits into the lost property situation or the abandoned

property situation, a landlord is held by the law to a certain standard. And in deciding who the property owners are or might be, the landlord is held to that same standard. The standard is: A landlord must act reasonably, and the landlord’s actions must be based on a reasonable belief.
The law defines a “reasonable belief” as the actual knowledge or belief that a prudent person would have, given the facts then known by that person. Generally a landlord is not required to conduct an investigation to obtain more facts. But, if a landlord has information which indicates that an investigation would provide more facts about the identity of the property owner, and if the cost of the investigation would be reasonable in view of the probable value of the property, then the landlord should make the investigation. If an investigation should have been made but wasn’t, then the landlord is held to a higher standard – the reasonableness of the landlord’s actions would be judged as if the landlord had conducted an investigation and had known the facts which the investigation would have revealed.2
What all this means is that in deciding whether the property left behind is abandoned or lost, the landlord must keep in mind all of the facts that the landlord knows or ought to know about the situation. And in deciding who the property owner or owners might be, the landlord also must keep in mind all of the facts that the landlord knows or ought to know. For example, if the landlord knows that a telephone call or two, or a search of public records, would give the landlord more information about who the property owner is, and if the value of the property is significantly more than the cost of the phone calls and public records search, the landlord should make the calls and do the search. If the property left behind are records, you must presume that the tenant is the owner unless you are given proof otherwise.3
Avoid unlawful self-help …
When a landlord disposes of personal property by properly following one of the three legal procedures, the landlord can avoid the possibility of being held liable for unlawfully taking or converting the property.4
If a landlord goes about disposing of the property in some other way, resorting to self-help methods, the landlord could be liable for money damages.5
Animals …
If a tenant leaves an animal in or around a rental property without proper care and attention, you must take charge of the animal and immediately notify animal control officials.6 In the meantime, you are responsible for following any ordinances or laws that deal with animals.7
If the tenant has left livestock, consult Sections 17001 and following of the Food and Agriculture Code.
Please remember . . .
The steps outlined in this legal guide are only for situations where personal property has been left in a rental unit which has been vacated by the tenant. If the tenant has not vacated the unit, a landlord has no legal right to dispose of personal property in the unit. If a landlord believes that a unit has been abandoned by the tenant, the landlord must follow certain legal steps to declare the rental unit

abandoned. Only after the rental unit is legally considered abandoned can the landlord dispose of personal belongings left in it on that basis.
SITUATION NO. 1: Where The Tenant Has Requested Return of Property
This topic is addressed in LT-4, “How to Get Back Possessions You Have Left in a Rental Unit.”
SITUATION NO. 2: Where The Property Is Apparently Abandoned
To dispose of apparently abandoned property without risking liability for damages to the landlord, a landlord must follow the steps below. If the tenant left the unit because of a court-ordered eviction, the timing of the steps is slightly different. This difference is discussed below in the bold bracketed [ ] sections.
Steps to follow with abandoned property.
To dispose of personal possessions which apparently have been abandoned, the landlord should take the following steps:8
1. a. Write a notice to the former tenant or tenants.9
[No notice is required for former tenants who were evicted under a writ of possession.10 A notice already is contained in the writ of possession form which the sheriff is required to serve upon the evicted tenant or tenants.]
b. Write a notice to any other person whom the landlord believes may be the owner of some or all of the abandoned property.11
The notice12 must:
(1) Give enough information about the property so that the possible owner can identify it.
(2) Tell the tenant or other possible owner receiving the notice the place where the property may be claimed.
(3) Give the tenant or other possible owner a deadline after which time the property cannot be claimed.
[A tenant who is evicted under a writ of possession has 15 days after the landlord takes possession of the rental unit to pay reasonable costs of storage and to take possession of items left in the rental unit.]13
(4) Tell the tenant or other possible owner what the landlord intends to do with any of the property which is not claimed by the deadline.

(5) Tell the tenant or other possible owner whether reasonable costs of storage will be charged before the property is returned.
2. Deliver the notices to the tenants and other possible owners of the property.
3. Meet with the tenant and other possible owners when they come to claim the property.
4. If by the deadline, the tenant or other person pays the landlord any properly demanded storage costs, the landlord must release the property to the tenant or to any other person who the landlord reasonably believes to be its owner.14
5. If the property is not released and if the landlord stated in his or her notice that he or she intended to sell the property at a public sale, the landlord must release the property to the former tenant if, before the actual sale, the tenant claims it and pays the reasonable costs of storage and of advertising the sale.15
6. If, after the deadline, there is any property which was not claimed by the tenants or any other people notified, depending on the circumstances, the landlord must do one of two things with the remaining property:16
a. If the landlord reasonably believes that the property is worth less than $300, he or she may keep it, give it away, sell it or destroy it.
b. If the property is reasonably believed to be worth $300 or more, the landlord should arrange to have it sold at a public bidding sale after giving notice of the sale through publication. Both the landlord and the tenant have a right to bid on the property at the sale. After the property is sold, the landlord may deduct the costs of storage, advertising the sale, and conducting the sale. The remaining money must then be paid over to the county. The county can then give the money to the property owner if the owner claims the money at any time within one year after the date when the county received the money.
What should the notice say?
Under California law, the notice must contain certain information.17 Sample notices (one to a former tenant and one to a person other than a former tenant) are attached. A landlord may use this sample notice, but will have to fill in additional information, such as the description of the property, the place where the property may be claimed, and a date by which the property must be claimed. These are the legal requirements:
1. A description of the property.
The property should be described both in sufficient detail, and in a way which gives all possible owners enough information for them to determine whether or not the property might be theirs. The legal limitations of liability provided to a landlord do not apply to property which is not described in the notice. However, if the property includes a container (for example a trunk, or box) which is secured (that is locked, fastened or tied, in a way which would keep anyone from easily getting into it), then the contents of the container need not be described in the notice.18
2. A deadline for claiming property.
A date must be specified by which the potential owner must claim the property. The date given must be at least 15 days after the notice was personally delivered or, if the notice was mailed, a date not less than 18 days after the notice was mailed.19
3. Charge for storage.
The property owner may be charged for the reasonable cost of storage of the property, and that the charges must be paid before the property is released to the owner.
4. Where the property is located.
This should include both the address where the property was left and, if different, when the property may be claimed by the owner.
How should the notice be delivered?
The notice may be delivered to the tenant or other possible owner by either:
1. handing the notice to tenant or other possible owner –that is, personally delivering the notice; or
2. mailing the notice by first class mail with postage prepaid to the tenant or other possible owner at her or his last known address.
In addition, if the landlord has reason to believe that the notice sent to the person’s last known address will not be received by the person, the landlord also must send the notice to any other address, if known, where it would be reasonable to expect the person to receive the notice.
And, if the notice is sent by mail to the former tenant, one copy of the notice also must be mailed to the tenant at the address of the rental unit that the tenant vacated.
How should storage costs be charged?
If a former tenant claims the property, the landlord may charge the tenant the reasonable costs of storage for all personal property left at the rental unit, but only to the extent that the tenant has not paid those costs to the landlord previously.21
But, if an owner other than the former tenant claims a portion of the property, the landlord may only require that person to pay the reasonable costs of storage for the property that person claims.22
In any event, the landlord cannot charge more than one person for the same costs.

If the landlord has stored the personal property at the rental unit, the cost of the storage must be the fair rental value of the space reasonably required for such storage for the term of storage.24
What is the landlord’s liability?
Once the landlord has given the proper notices, whether a landlord is liable to anyone for the property depends upon whether the property was released to someone or whether the property was disposed of in another way.
Property was released:
If the property is released to the former tenant, then the landlord is not liable to any person for that property.25
If the property is released to someone other than a former tenant, and if the landlord reasonably believed that person to be the owner of the property, the landlord is not liable for that property to:
a. any person to whom notice was given; or
b. any person to whom notice was not given unless such person proves that: (1) prior to
releasing the property, the landlord believed or reasonably should have believed that such
person had an interest in the property; and, (2) that the landlord knew or should have known, upon reasonable investigation, the address of such person.26
Property disposed of in another manner (not released):
If the landlord reasonably believes that the total resale value of all the property is less than $300, the landlord may dispose of the property in any manner.27 However, if the landlord reasonably believes that the total resale value of all of the property is $300 or more, the property must be sold at a public sale by competitive bidding.
If the property is disposed of in either of those ways, the landlord is not liable for the property to:
a.
any person to whom notice was given; or
b.
any person to whom notice was not given unless such person proves that: (1) prior to disposing of the property, the landlord believed or reasonably should have believed that such person had an interest in the property; and, (2) that the landlord knew or should have known, upon reasonable investigation, the address of such person.28
SITUATION NO. 3: Where The Property Apparently Is Lost
To dispose of apparently lost property (legal owner is unknown) without risking liability to the owner, a landlord must follow these steps:

If the value of the property is reasonably believed to be $100 or more,29 the landlord must:
1. Turn the property over to the police department of the city where the property was found. If the property was found outside of the city limits, then the property should be turned over to the sheriff’s department of the county were the property was found.
2. Fill out a written statement describing the property, explaining when and where the property was found, whether he or she knows who owns the property, and that he or she has not withheld or disposed of any part of the property. The statement, which is known as an “affidavit” or “declaration,” must be signed under penalty of perjury.30 A blank form for the statement should be available at the police or sheriff’s office.
The law enforcement agency is then obligated to make reasonable attempts to find the property owner. If the property is not claimed by the owner within 90 days, the property belongs to the landlord if its reported value is less than $250. However, if the reported value of the property is $250 or more, the police or sheriff’s department must publish a notice of the property once in a newspaper of general circulation. If no one claims, and proves ownership of, the property within seven days after the published notice, and if the landlord pays the cost of publishing the notice, the property belongs to the landlord.31
3. If the law enforcement agency refuses to accept the property, then to avoid being held liable for damages to the property, the landlord should handle the property according to the same abandoned property procedure above which the police or sheriff would apply.
NOTICE: We attempt to make our legal guides accurate as of the date of publication, but they are only guidelines and not definitive statements of the law. Questions about the law’s application to particular cases should be directed to a specialist.

Source: The Law Office of Efrat Levy

http://elevylaw.com/what-to-do-when-a-tenants-personal-property-has-been-left-in-the-rental-unit/

Should I hire a property management company?

Some landlords manage properties on their own or with the help of an employee, such as a resident manager. But sometimes landlords need more help or are not interested in nor have the time to deal with the day-to-day issues that arise when leasing real property. That is when a property management company is needed and can be of service.

Property management companies can be a huge asset to your business and even save you money in the long run.

What Does a Property Management Company Do?

At the Ziegel Group our property management company deals directly with prospects and tenants, saving you time and worry over locating, screening, and interviewing prospective tenants, marketing and leasing your rentals, collecting rent, handling  maintenance and repair issues at our discounted rates, responding to tenant complaints, and when necessary, even pursuing evictions. Plus, a good management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands. Finally, the Ziegel Group is an independent contractor, so you avoid the hassles of being an employer.

When Should You Hire a Property Management Company?

Hiring a property management company has its disadvantages and advantages.

Consider the following factors to determine if hiring the Ziegel Group as your property management company would be a good decision for your investment or business.

You should consider hiring a property management company if:

You have little experience in maintaining a house for others. We know to cost of repair and maintenance and use our own in-house staff or contractors at a discounted rate.

You have lots of properties or rental units. The more rental properties you own and the more units they contain, the more you’re likely not to have the time to deal with the day-to-day management of dealing with tenants and thus the more likely you are to benefit from a management company.

You don’t live near your rental property. If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.

You’re not interested in hands-on management. Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring the Ziegel Group to manage your property.

Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if isn’t not your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money.

You don’t want to be an employer. If you hire a resident manager or other employees to help with your property, you become an employer. You’ll have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company isn’t your employee (it’s an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer.

Your property is part of an affordable housing program. If you participate in an affordable housing program, things can get complicated. Usually, in these programs the landlord receives financial assistance, which may be in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to continue receiving the assistance, the landlord must comply with a complicated set of rules. With so much at stake, it’s often worth hiring a property management company that has expertise and experience with the particular housing program in question.

The Ziegel Group. We are here to serve you and would be pleased to have a consultation with you to determine whether we can serve you as your Property Management Company. Call us today to set up an in person, video, or telephonic appointment.

 

 

 

Adding Value to your Home

Are you thinking about making some home improvements, but want to make sure they’re renovations that will actually pay you back in the long run?

Good news: From a complete kitchen renovation to small do-it-yourself projects like repainting light fixtures, there are a variety of cost-effective projects that could help your home have more curb appeal.

If you’re considering making some home improvements, check our list of smart and worthwhile projects.

Project #1: Upgrade Your Bathroom

Do you want to upgrade or remodel your bathroom, but concerned about spending too much money? Fret not. Remodeling your bathroom is one of the most profitable home improvement projects, says Marie Leonard, home improvement expert and author of Marie’s Home Improvement Guide.

“As far as getting a return on your investment, the best money is in upgrading or remodeling your bathroom or kitchen,” says Leonard. “All the realtors will tell people that you have the greatest chance of getting your money back on those two.”

And as far as bathroom improvement projects go, Leonard says you have the option of going big and doing a total renovation (replacing toilet, tub, vanity, floor, etc.), or you could do a simple upgrade, which is much less expensive.

For example, “some people will just replace the toilet and vanity, because tubs are so expensive,” says Leonard. In other cases, “they might put down a vinyl floor or new tile floor and then replace the fixtures, like the faucet and the towel bars. It’s much less expensive [than a total bathroom renovation], but still adds value to your home.”

Project #2: Upgrade Your Kitchen

As Leonard mentioned earlier, upgrading your kitchen is another smart renovation worth investing in.

And Lipford offers a similar view, noting that a kitchen remodel is a smart, worthwhile project that could help increase the value of your home.

“The value of a home is driven by the ‘salability’ of said home,” says Lipford. “A house with an out-of-date or obsolete kitchen is very hard to sell, so a price compromise usually takes place.”

But what if a complete kitchen remodel is not in your budget? Not to worry. Leonard explains how you can make small, yet smart, upgrades:

“You can get new countertops; you can repaint your cupboard doors; you can get new handles; you can update your appliances,” she says. “There are different levels of things people can do, depending on their budget.”

Project #3: Refinishing or Repainting Your Front Door

On first thought, the condition of your front door may not seem like a significant factor in the overall value of your home. But according to experts, you may want to reconsider that thought.

Here’s why: The front door is a very important part of a home’s curb appeal and contributes greatly to the home’s overall value, says Lipford.

“It’s usually the first opportunity to influence a guest to your home, or a potential buyer of your home, because they’re going to see that from the road,” explains Lipford. “It’s the nose on the face of the house, and it’s important to showcase it in the best light that you possibly can.”

Luckily, Lipford says that refinishing or repainting your front door is one of the least expensive home improvement projects, and it’s one you can do yourself – if you’re up for the challenge.

“This is a very do-it-yourself friendly project,” says Lipford. “But if the homeowner is not comfortable tackling this, it is still a very good return on investment, even if you choose to hire a contractor to do the work.”

 

 

Upgrade your aging apartment

Everyone wants more for less. This is especially true with apartment renters. They want their apartments to be modern, spacious, and to include amenities for their rent, but don’t want to pay top dollar. To appease and appeal to potential renters, apartment managers need to upgrade their stale apartments, but at the least possible cost.

When it comes to breathing new life into your stock, focus on four categories that will improve your apartment’s appeal to potential tenants: the inside of the unit, the building’s appearance, energy efficiency, and the “extras” that go along with renting one of your units. Find out from the experts what changes they are making to their stock in order to increase appeal.

What’s on the Inside Counts
A floor-to-ceiling remodel is probably not the fix you’re looking for. And luckily, most apartment stock can be revived without turning to that solution. “In today’s economy, you really can’t build your way to higher rents,” says Armand Brachman, principal at Dominium. “What I mean by that is, you can’t go out and spend a lot of money and expect to get more rent, because right now we don’t have the renters in the marketplace that can afford to pay those rents. Start looking at things that you can do to make a difference and at how you can set yourself apart from your competition. Some of the most common low-cost ways to make a difference are applying new paint, carpeting, and doing a really thorough cleaning.”

The inside of the apartment unit may be clean and freshly painted, but still may not attract renters because there’s nothing special about the unit itself. In that case, try adding an accent. “Offer an accent wall in the living room,” says Christopher Canale, vice president of operations at GPX Realty Partners. “This will cost $50 and sets you apart from the typical white box that they have been walking into.”

After applying that fresh coat of paint, look at the kitchens and bathrooms of the apartment units. “We found that what renters really focus on and that makes a big difference are your kitchens and bathrooms,” Brachman says. Bring tired, outdated units up to today’s standards with simple fixes in the kitchens and bathrooms.

Replacing old cabinet doors and hardware, as well as old countertops, can make a tremendous impact on the unit’s appearance, thereby making it more appealing. “Ideally, if the cabinets need to be replaced, put in new countertops, and that really makes a difference,” Brachman explains. Even if the current cabinets are in good condition, at least update the hardware.

“Upgraded kitchens and baths give a new resident the feel of a home instead of the feel of just renting someone else’s old apartment,” explains Canale. Not only is this good for your tenants, it’s also good for you. “It instills a sense of pride in your resident, who hopefully will take better care of the property.”

In addition, take the time to replace appliances and either replace or thoroughly clean the flooring.

“Change outdated lighting fixtures,” elaborates Canale. “No one wants to live in an apartment that feels old. Updating also sends an unspoken message that you do invest in your property, no matter how small. Outdated apartments do not move easily.”

Outward Appearances Matter
Even though people are taught not to “judge a book by its cover,” they do. The outside appearance of a building can speak volumes about a property’s maintenance standards and upkeep – inside and out. Give your potential tenants the best possible image of your property from the second they pull up to the building – balance your exterior upgrades with the upgrades you make on the interiors.

“Limited amounts of new landscaping and new signage could enhance the appearance of your project,” says Stan Braden, chairman and principal at KTGY. If your complex has carports or uncovered parking spaces instead of individual garages (which can be negative to some tenants), point out the positive aspects – including privacy, open space, and mature landscaping.

Landscaping may work wonders for a unit that is already in good shape, but not if the unit is already worn out due to deferred maintenance or in need of significant repairs. “Consider new roofing, new siding (if applicable), or new balcony railings,” explains Braden. These fixes may be justified to make the project look refreshed. “If you need to replace any exterior material due to termites, dry rot, or other issues, why not select a new replacement material and give your project a new look?” he says.

Brachman agrees with the premise of giving your building a new look by changing the siding. “If you have a little more money available, putting new siding on a building definitely improves the curb appeal and the appearance of your property,” he says.

Energy Efficiency Makes Units Shining Stars
Energy efficiency is on everyone’s mind. Especially if potential tenants are paying their own energy bills, they are interested in units with energy-efficient appliances.

“Take a look at what kinds of things you can do to the property to improve and reduce operating expenses,” recommends Brachman. “That might be things like putting in energy-efficient light fixtures and replacing furnaces (and HVAC systems) with more energy-efficient ones, both of which cut down the operating costs. Start looking at how you can save on energy costs, and ultimately, that helps the bottom line for the owner. Start focusing more and more on those mechanical items.”

These energy-efficient improvements can serve as a marketing tool for your units. “Let’s say that the tenants pay their own utilities,” says Brachman. “We will show them what their utility costs are, and typically, we’ll show them that the new air-conditioning or heating unit will cost them less than the earlier one. Newer equipment works better and is more efficient, and I think tenants appreciate it.”

Replacing older appliances with energy-efficient ones may cost more initially, but you’ll make more money than you would with an empty unit.

Perks Are a Plus
Amenities make your units stand out. “Upgrade the club room, fitness center, and pool/spa area,” says Braden. “Older apartments may have laundry rooms throughout the property with coin-operated washers and dryers. Is there space and proximity to utilities and plumbing to add a stacked washer/dryer to each unit? This is not always practical, but if justified, the existing laundry facilities can be converted to other uses, including tenant storage, an activity area, open space, etc.”

“Ask your tenants and prospective tenants what is most important to them,” says Braden. “Depending on the quality of your on-site management, you may want it involved in the process, or consider a survey of your tenants and potential future residents.” If you can find out what is important to your future and current tenants, you can concentrate your budget on the areas that will attract tenants, and therefore generate income.

Desired perks can be as low-cost as offering “pet friendly” units (no special remodeling or renovations needed to allow pets in certain units) and adding Wi-Fi to the property.

Shop Around
If you don’t know what your competing properties are offering, then you don’t know what you’re not offering and why your units may not be appealing. “Shop your competition,” says Canale. “Where would you prefer to live?”

“If your competition in a marketplace looks better, has had a face-lift, has been remodeled – to stay competitive, you’re going to have to remodel also,” Brachman says. “In today’s environment, there’s more supply than demand. You can’t fall behind your competition, so you always need to be aware of who your competitors are, what they are doing, what their product looks like, their pricing structure, and their rent levels.”

Back to Basics
Brachman gives an example of a unit in Cleveland, to illustrate how the basics of good property management – not a lot of money – can turn around apartment occupancy. “We did some basic painting where it was needed, we added some blinds to the units, and we put new door latches and pulls on the cabinets,” he says. “Just by doing that simple stuff we were able to significantly improve the occupancy of a property that a lot of people didn’t think was leasable.” Picking up trash, cutting grass, and planting flowers are low-cost ways to make your property more appealing and more renter-friendly.

“Just get back to the basics of good property management,” Brachman says. “You don’t have to spend a lot of money; you need to have the people in place to make it look good.”

Source: Buildings.com