Assetsoft - Blog #Landlords

The Complete Guide to Property Inspections

Mon, 01 Nov 2021 10:42:47 -0500

Property Hunting is undoubtedly a difficult task when there are so many options to choose from. But no matter how much time passes by, they’ll always be expensive. And to make a decision where you’ll be spending a lot of your money, some expert advice is needed.

Property inspections play an essential role to determine, if needful maintenance of a place is carried out. Our brief guide to property inspection will help you better understand the concept and the considerations to be taken into account while arranging for a property inspection.

Importance Of A Property Inspection Report

Before buying a house, you must get hold of a property inspection report from the seller. The purpose of this report is to allow buyers to make rational decisions regarding the purchase.

A property inspection report consists of all that you should know about a house or property. It contains vital pieces of information about the place. This report can inform you whether the property or building is in a good condition and also if it is safe to be used. A property inspection report can tell you if there is any problem with the property which needs to be resolved.

When Should Tenants Ideally Be Notified About The Inspection?

According to the laws, a landlord must give their tenants a notice of at least 24 hours if they want any property inspection carried out. But it's better to notify the tenants at least a week before the examination since the idea may seem quite daunting to them. The inspection must be conducted at a time that both the tenant and the landlord may deem fit.

In What Way Should Landlords Request Permission For A Property Inspection?

According to the legal standards, the landlord should request permission for a property inspection in writing. They may ask for a handwritten note, an email, or even a text message. The document must include the following points:

●The address of the property to be inspected

●Who will be carrying out the inspection

●Date and time of the inspection

In some tenancy agreements, clauses scheduling in-house inspections throughout the year can be found.

Can A Landlord Enter A Property Without The Permission Of Its Tenants?

A landlord can enter a property without permission in the event of an emergency only. Emergencies of this kind may include gas leaks, ruptured water pipes, and similar instances. In all other situations, entering a house or property without permission can be regarded as trespassing. If a landlord enters the property without the tenant accompanying them, they must have the tenants' permission to do so.

What Happens If A Tenant Does Not Allow The Property Inspector To Enter?

Most tenants will likely have no problem with a property inspection as long as the landlord has followed all the rules. Sometimes, however, a tenant may simply not allow either the landlord or the property inspector to enter. That is why it is important to properly understand a landlord's right to gain access to the property.

But a landlord may issue an eviction notice in the event of a complete lack of cooperation of the tenants. In this notice, a landholder formally requests the tenants to leave the property when their fixed term comes to an end. But to issue this notice correctly, some procedures have to be followed. Otherwise, the statement will be treated as invalid.

A Property Inspection Checklist For Landlords

If property inspection is conducted thoroughly, it might detect problems that might turn out to be a major issue later. But a timely detection of these problems would ensure their timely resolution, and the process will not involve a lot of expenses if detected in its earlier stages. But a landlord must be watchful enough for these problems to remain unnoticed.

To find out if every nook and cranny of the property is maintained properly and is in good condition, it is important to follow a checklist. Both the interiors and the exteriors of a house must be carefully examined to check if they need to be repaired or not.

As far as the exterior portions of a property are concerned, the landlord must ensure:

If the gutters are overflowing
If the paving slabs are loose or not
If the fencing is in a damaged condition or not
If the outdoor area is maintained or not
Whether a lot of garbage is not being left outside
If the outbuildings, like the shed doors and garages, are safe or not

For the interiors, the landlords must be on the lookout for the following:

Damp and mold
Leaky faucets or pipes
Whether smoke detectors and carbon monoxide alarms are functional or not
Conditions of items such as electrical, furniture, and so on.
Condition of permanent fixtures and fittings such as bathroom suites, carpets, flooring, and light fittings.

Normal wear and tear should, however, be expected. There might be scratches and other marks on the furniture. Carpets might appear to be shabby as well. Even some electrical items might not be working anymore and will have to be replaced.

Property inspection thus helps landlords find out if their property is in a proper condition. It also helps buyers decide if they should invest in the property or not. Therefore, property owners need to carry out an inspection of their property before they consider putting it up for sale.

If any part of the property is found to be in a bad or poorly maintained condition, necessary steps may be adopted in time to counter the problems caused by it. However, for a property inspection to be carried out expressively, the tenants’ permission must be sought in the right way following the right procedure.

Have property management needs? We can help you find the right property management software, from Yardi to MRI Software. We can also help you automate common tasks easily through robotic process automation. Talk to the Assetsoft team today.

Busting Common Tenant Screening Myths

Mon, 16 Aug 2021 10:30:00 -0500

Renting out properties can be a tough job. From having to interview tenants, provide maintenance, manage accounts, and solve tenant problems, the list goes on. Whether it is noise complaints, damaging items, or constantly being notified about minor problems, these tenants can be a nightmare to deal with.

To avoid this, a good screening process should be implemented for all incoming tenants. This way you will be able to weed out those that have the potential to cause trouble in the future. As a landlord, a part of responsibility lies in selecting the best tenants for your property.

By doing this, you will be able to save yourself additional costs as well that come from damaged property, eviction fees, and lost rent. On average, a landlord would screen at least two applicants per vacancy before making a decision.

With so many myths about tenant screening it can be difficult to know the right from the wrong. In this post, we will be debunking some of the more common ones.

The top 4 common tenant screening myths

1. Only rent matters, nothing else

Can the tenant afford the rent on a monthly basis? Yes, this is the base criteria to determine a potential tenant and you should be running background checks, credit checks, and asking about their employment status during the initial interview.

However, there are other factors to consider that can affect both you and the other tenants in the property. It’s important that every tenant follows the rules set within your property so that problems don’t arise in the future. For this purpose, a basic screening checklist will go a long way in helping you find only the best tenants.

2. A high credit score means they are going to be a good tenant

Higher credit scores do not always translate to on-time payments, and in the same way, a low credit score does not mean that the renter will not make payments on time. Think about students, or new immigrants, or other young people who haven’t had a chance to build a good credit score yet. Don’t disqualify anyone with a low credit score. They might turn out to be a great tenant down the line

Ideally, you should request a complete credit report yourself about any potential tenants rather than allow them to hand you one of their own. While unlikely, people do use old or fake credit reports to fool landlords into renting out to them.

To automate the process of getting credit reports for each potential tenant, you can use the MRI Real Estate Software. There are on-staff investigators that will look into background and credit checks for all interviewees, saving you both time and money in the process.

3. The tenant screening cost should be covered by the property manager

Many property managers refuse to conduct tenant screenings because they believe the cost of the screening will come out of their own pockets. However, this isn’t true as landlords are able to charge the cost of the reports to the applicant as a rental application fee.

The typical application fee can cost anywhere between $25 - $75 (in the US) depending on where the property is located. Also, some points to be noted are:

Landlords cannot make a profit from these fees. They need to charge exactly the fee required for the report from the applicant.

Applicants can only be charged for screening if they are given written notice of what the screening will cover and reasons why their application could be denied.

The fee will have to be returned to the applicant if the application is rejected before the reports are run.

4. Any person without a social security number should be rejected immediately

To request a credit report, you need a social security number. However, don’t turn down an applicant if they are not able to give you one. There are people who don’t have one but still reside in the country:

Foreign employees on a work visa
Foreign students
People staying in the country for a few months

Instead, you should ask for an Individual Taxpayer Identification Number (ITIN) or any other valid form of identification which can also be used to request credit reports. Simply rejecting anyone without a social security number could lose you a good tenant.

5. It's better to have any renter rather than a vacant property

Having a small pool of applicants can be worrisome and you might be tempted to fill the vacancy as quickly as possible. However, you need to consider the implications of having a problematic tenant.

A vacancy for a few months will mean potentially lower rent payments each month, but it comes with no extra cost to you. Whereas, if you are forced to evict a bad tenant, you will have to pay over $3,000 on average (in the US).

The costs include:

Lost rent payments – The eviction process can take anywhere between 1 – 3 months to finalize. You will lose out on these payments if the tenant decides not to pay.
Complaint filing costs
Notice to the police
Miscellaneous fees
Attorney fees

Property clearance fees
Storage fees

6. Only one tenant reference is satisfactory

To gain further insight into a tenant’s background, it is recommended to contact their references. However, simply checking with one reference is not enough as the information provided cannot be 100% verified. Ideally, you should contact both their past employers and landlords to get the full picture.

The employer can tell you about the tenant’s behavior and personality at work, as well as any past problems (if any) they were involved in. The landlord can tell you about their rental payments and behavior around neighbors.

To help with this, Assetsoft can help you find automated solutions to screen all your applicants before you decide. With software such as Yardi and MRI, you can select low-risk and easy-to-manage tenants easily. To know more, talk to us today.

Tenants Could Enjoy More Benefits In 2021 - What Can Commercial Landlords Expect?

Mon, 12 Apr 2021 08:00:00 -0500

It’s been a year already since COVID-19 became a global crisis. It gave way to countless government measures to keep the health and financial consequences at bay.

Many of these regulations were supposed to end in these months, but the crisis isn’t quite over yet. Several governments have announced extensions on aid plans, primarily eviction moratoriums.

What does that mean for commercial property managers? If you’re unsure of what you can do about it, make sure to contact our strategy and leadership services for a fantastic edge.

The UK’s extension on landlord restrictions

The UK recently made headlines because it prolonged eviction moratoriums. It extended its forfeiture ban for three months, and it restricted landlords’ ability to demand debt repayments.

Additionally, it has also claimed that it intends to review current commercial lease legislation this year. It claims it's necessary to reconsider several issues related to the current Landlord & Tenant Act and rent payment models.

Is it only for financial complications?

The most important consideration for this extension is that eviction bans are solely for those who can’t pay rent due to the pandemic’s financial damage.

That means that other contract breaches still entitle landlords to evict tenants. The measure aims to aid tenants suffering from complications outside of their control.

What does it mean for landlords?

It's simple; landlords won't be able to evict tenants who failed to pay for their rent and debts within the announced period. However, they're not entirely at a loss.

If they can prove that tenants can pay rent but don't do so out of a will, they could gain leverage with the court. Unfortunately, it's still a considerable setback for recovery.

Mutual agreement is still fundamental

If the pandemic proved one thing, it’s the importance of nurturing healthy landlord-tenant relationships. This lesson will remain vital for landlords in these additional months.

Discussing conditions with tenants and offering alternatives could result in the same consideration from them. That's critical when they have the advantage of these restrictions.

Is Canada following this example?

Canada has employed similar measures to its peers: rent relief, lower mortgage rates, and eviction bans. It has also implemented stricter regulations regarding standard area maintenance and social distancing.

Recently, the government also extended its current regulations. While it extended rent evictions, the most noticeable difference comes with rent increases. It’s an additional restriction compared to the UK, but it comes with intriguing advantages for landlords.

Rent increases remain frozen

Canada extended its rent freeze until July 10th this year. Any increase set before that date isn’t valid, and tenants don’t have to pay the additional amount until the period ends.

Additionally, landlords can’t combine rent increases from this year and the previous one. This year’s increase can’t surpass 1.4% either.

Debt repayment period

Rent repayment also received a large time frame for owed amounts from March to August last year.

This period starts when the landlord provides the repayment plan, and it ends on July 10, with the rent freeze. Tenants must pay instalments on the exact due date for rent.

Unpaid rent evictions

However, Canada has been somewhat flexible with rent evictions due to financial difficulties. If the tenant failed to pay their total rent by the moratorium's end-time, landlords could evict them.

Additionally, landlords can send a notice to end the tenancy if the tenant fails to comply with the repayment plan by the period's expiration.

Advantages for landlords

Naturally, this means landlords aren't entirely at a loss in this case. We need to consider that Canada has been considerably supportive of all parties.

While these restrictions are primarily beneficial for tenants, insightful managers can leverage these exceptions to prevent tenants from abusing these measures.

The US: Eviction moratorium extensions as well

The US has also announced that it would prolong eviction bans, but that’s not the only approach it’s taking. Additionally, it has provided several guidelines for businesses to assess who’s eligible for this protection.

We also need to consider another vital difference between the US and other countries: relief bills. It’s one of the few countries delivering a direct financial stimulus to citizens—and even fewer sending checks to families.

Biden’s administration also kicked off the year with a new stimulus check, which we also need to consider.

Decisions from the CDC

The CDC has been the primary authority behind most health measures in the US, and it recently extended the federal moratorium for the entirety of March.

However, further extensions are possible, yet the total length isn't precise right now. Early March also saw the signing of an additional rescue bill.

Not everyone is eligible for eviction moratoriums

Again, this moratorium is only for tenants who can’t pay rent. It doesn’t forgive debts, and tenants are still eligible for eviction if they breach other contract terms.

Additionally, residential and commercial measures vary considerably in different states. A legal advisory will prove invaluable for any landlord and tenant in the upcoming months.

The latest relief bill: Did it aid tenants?

Last year closed with a significant relief bill providing $25 billion for tenant assistance, aimed for rent and utility overdue.

However, renters need to prove their eligibility for the government relief bill. That means showing that their income has been affected considerably, and they can't pay rent for reasons outside their control.

Considering the future: Other proposals from Biden

Biden has announced ambitious tenant protection measures for the future, but most of them focus on the residential real estate market.

However, rent assistance and greater eviction protections could hinder financial recovery for many commercial landlords. Additionally, individual state proposals could offset or worsen the effects of these restrictions.

Is Australia an exception?

As many of its emergency support measures start lessening, they’re yet to announce an extension for eviction bans.

It’s an uncommon sight among other countries strengthening their restrictions. While the moratorium is still ongoing in most of the territory, it has ended in many cities.

However, headlines could be misleading, as different cities have decided to extend their bans. For instance, the capital territory extended its ban until April 30th. That means that the most extended deadline is still a couple of months shorter than the UK.

Are eviction moratoriums ending?

Most eviction ban periods are reaching their deadline. Many states have ended their restrictions. Some closed last year with no eviction moratoriums in place.

However, not all regions are ending their eviction bans. Some have extended the period until the end of March or April, but not more than that.

No news about extensions

The primary reason why little is known about these regulations is that the government hasn’t released an official statement. Most of that responsibility has been left to each city.

On the other hand, there has been considerable silence since the beginning of March, so there are still chances for official extensions to release nationwide.

Landlord-tenant relationships are more crucial than ever

In states where eviction moratoriums have been lifted, nurturing a positive relationship with your landlord or tenant is critical.

Many landlords have excellent tenants who’ve failed to pay rent. With the eviction ban ending, keeping these tenants despite financial difficulties could be a worthy long-term investment.

New Zealand: A more liberal approach?

New Zealand seems to be the most liberal region regarding its market intervention. So far, notice periods for ending tenancies—and the valid reasons—have been the only target for the latest regulations. No news on outright eviction bans has surfaced.

Additionally, rent increases have been regulated considerably lightly. They've extended the allowed period to a year from six months and temporarily froze rent increases between March and September last year.

If you're unsure whether you can increase your rent and how much, consider working with an expert financial service.

Ending tenancies depends on their type

Not all tenancy categories are eligible for the eviction moratorium. Landlords can’t end fixed-term tenancies before the term’s conclusion.

However, periodic tenancies can end if the landlord provides the proper notice. There's no specific period for delivering the notice, but it's best to give the tenant enough time to relocate.

What about rent increases?

Since September 26th, the rent freeze isn’t in effect. That means landlords have been free to increase their rent for a while now.

However, they must wait for a year before increasing rent, and no additional increases can’t take place within 12 months. Fixed-term leases must allow for increases in the agreement.

Can landlords decide freely?

There’s no regulation limiting the size for the increase, only how to do it and the tenant’s option in case of a disagreement.

Additionally, landlords and tenants can agree on rent increases beyond 12 months. If the increase benefits the tenant (property improvement or a better agreement, for instance), the rent increase is possible.

Are tenants “out of luck”?

The most important takeaway from this analysis is the word “agreement.” Tenants must grow a good relationship with their landlords if they wish to keep their lease.

We must consider that a more substantial recovery for landlords could benefit tenants. Especially if they're in a strong industry, it'll be easier for landlords to accommodate leases to their tenants' needs.

Virginias March Legislation Changes: What It Means and How To Adapt

Mon, 08 Mar 2021 09:19:43 -0500

Since COVID-19 began, tracking legislation updates has been a hardship for everyone. Depending on your location, you might feel like laws change every other day. For some, that's unfortunately true.

The recent legislation changes in Virginia, beginning on the 1st of March, is an excellent example. Yardi’s ScreeningWorks PRO already informed all its customers, but many still feel lost regarding the law’s implications.

What does it mean? Why does it matter? More importantly, what can you do? That’s our topic for today.

What does this law entail?

The law relates directly to the landlord-tenant relationship. In essence, it's a way to guarantee that applicants rejected by landlords don't feel lost afterwards. That's because it's challenging to know what steps they can take after rejection.

To simplify things, this notice demands landlords to provide additional information to applicants after denying housing. This information primarily goes through their rights and what they can do.

The law applies to all applicants screened and denied housing on the 1st of March and later.

The implications for landlords: What do you have to consider now?

This law was a surprise for most companies and managers because of how sudden it was. Therefore, there's still a lack of information about the notice and what landlords need to start doing.

As a summary, you need to notify rejected applicants about their rights via the Virginia notice. This information is available for Yardi users right now. Additionally, you can set up your preferred communication channel so that it sends the required documentation to your denied applicants.

How can you curb these new challenges?

Now, the main obstacle isn’t to procure the information you need to convey to your applicants. It’s readily available for any users of Yardi’s ScreeningWorks PRO. It’s also easy to find with simple legal advice.

The genuine hurdle is finding the means to communicate everything to your applicants with little effort. It might not sound too challenging, but when you're managing several properties with a dozen applications per space, everything adds up.

Luckily, the real estate sector enjoys plenty of options to improve the relationships between landlords and tenants.

Streamlining communications

The first step to comply with these requirements is to make your communications as straightforward as possible. You don't want to spend too much effort and resources to abide by these new requirements.

That’s mainly because you don’t have to. For instance, most of our software services include comprehensive solutions to communicate with your tenants and teams. If you're implementing real estate apps, it's likely you already have the necessary features.

Modern ERP software

Additionally, modern ERP solutions have all the features you need to manage your properties from a single dashboard. That includes tracking maintenance and statuses, but communications are often overlooked features in these apps.

For instance, ScreeningWorks PRO lets you generate and download adverse action letters. You can email these in seconds to all your rejected applicants. Yardi also made a PDF of the Virginia law downloadable to attach to your email and send it immediately.

Tenant portals

Tenant portals, usually available via the most sophisticated property management platforms, are also remarkable for this task. You can screen and interview all your applicants via these systems, and that includes sending important notifications.

For instance, you can sort out your best applicants and segment those you want to reject. Their contact information can go into an email list, to which you can forward all the legally required documentation requested by the new Virginia law.

Implementing CRM Apps

Customer relationship management is becoming increasingly important in all industries, and real estate isn't an exception. You need to keep tabs on all your current and potential customers, and these apps let you manage your email lists and automate communications extensively.

Some of the most advanced CRM solutions, like Zoho and Salesforce, let you take care of all messages and notifications from a single dashboard. You only need your applicant’s email, and the system does the rest. As long as you set up the right message, there’s nothing else to do.

Do you need to change ERP software? Keep this in mind

ERP systems are an excellent investment for any company looking to streamline its operations. However, they also require lots of care to ensure you're investing in the right things.

ERP software is an extensive catalog. Every system has various intricacies and features that fit diverse requirements and preferences. A wrong choice in software can translate into monetary losses and operational disruptions.

We also have to consider other processes, like implementation, training, onboarding, and more. Luckily, our years of experience working with multiple software and clients has shown us the three vital considerations for successful integration.

Your real needs

The most crucial aspect to keep in mind is why you're getting an ERP system. They're excellent for streamlining communications and collaboration, but they're more than that. If you only want to send notifications, there are cheaper solutions,

It would be best to consider how much you want to do: your ERP software's features and capabilities. Even providers like Yardi have various products for different business sizes.

Cost-efficiency ratio

When choosing an ERP system, it’s common to look for “more bang for your buck” or as many features as you can for the best price. Everyone’s guilty of doing it, and that’s because it’s not necessarily a bad idea.

It's good to find as much value as possible, but if you're paying for more features than what you'll use, there's a problem. Cost-efficiency goes beyond value for money; we always help our clients focus on what they need and scaling later.

Hiring an effective service

Finally, you'll probably want to hire a software implementation service. Our experience has taught us that it's better to tailor our services depending on the client. That's why we recommend you look for personalized solutions.

Additionally, please consider hiring someone who offers implementation, training, onboarding, and support in a single package. That way, you can save considerably.