Peter Kmosko, CCXP, PAL’s Post

📉 Landlords: Frequent Lease Terminations Hurting Your Finances? 🏚️💸   For landlords, frequent lease terminations can be a major financial setback.   However, a few strategies exist to mitigate these risks and protect your investments. Some more, some less known. Here they are: 💪🏠   🔐 > Require Security Deposits The true baseline is to collect a security deposit (1-2 months' rent) to cover unpaid rent or property damage if a tenant breaks the lease early. 💰 > Include Lease Break Fees Specify a fee in the lease contract that tenants must pay if they terminate early. This compensates for lost rent and the cost of finding a new tenant. 🔎 > Conduct Thorough Tenant Screening Carefully screen tenants' credit history, income, and references to identify those most likely to stay long-term and reduce turnover risk. At LordLand.AI we are testing specific however quick time to value behavioral questionnaires to potential tenants, that will assess potential risks quickly. 🤝 > Maintain Positive Tenant Relations Provide good service and respond promptly to tenant needs. Ask for tenant satisfaction feedback at least once per year. This fosters longer tenancies and reduces the likelihood of early terminations. At LordLand.AI we are again testing easy-to-use automated relationship automation, that will focus on both excellent new tenant onboarding but also regular satisfaction checks to learn about potential unwanted lease ends ahead. ⚖️ > Pursue Legal Action When Needed If a tenant breaks the lease outside of agreed causes or prematurely, consider legal action for breach of contract to recover damages. This acts as a deterrent. 📅 > Require Proper Notice Specify how much advance notice (30-60 days) tenants must provide to terminate early. A good tenant relationship will help here to get a heads-up early. This gives you more time to prepare for vacancies. 🚫 > Avoid Frequent Rent Increases Moderate rent increases help retain tenants long-term, while excessive hikes may prompt more tenants to leave. Check also our other post about the rent setting strategy.   While you can't eliminate the risk of early terminations, these strategies can help mitigate the financial impact and encourage more stable tenancies.   Careful screening, clear lease terms, and good tenant relations are key! 🔑✨ We at LordLand.AI are working to deliver features through our AI assistant ADA to help you with all this. Try it today. It is free.   Marek Lani Vitaly Berezka, MEng, MBA   #LandlordTips #PropertyManagement #RealEstate #TenantRelations #FinancialProtection #LeaseManagement photo credit: ranchomesarentals

Please don’t make this mistake if you’re buying a rent roll. Messing up the order for onboarding your new landlords. There’s a logical order for this process, and I follow a clear step by step system when I work with real estate agency principals to help them on-board a rent roll purchase. It’s not just about merging data. You have to get the order right. Here are some examples: Maybe the new rent roll is way behind on their routine inspections, so you want to jump straight in and get them done that month. Maybe the new rent roll has heaps of expired leases and you want to get those tenants back on fixed leases ASAP. Or maybe the whole rent roll hasn’t had rent reviews in years, and you want to show the landlords that you can maximise their returns right away. But that’s not the right order or approach. If the routines are 6 months late, who cares if they’re another 3 weeks late? If the leases are all expired, it’s going to take more than a week to fix that problem. If the rents haven’t been reviewed for years, they can wait another few weeks. You need to prioritise the onboarding of your new landlords before getting caught up in the other “busy-ness” Need help with this process? Send me a DM to book a Zoom call with me

Please don’t make this mistake if you’re buying a rent roll. Messing up the order for onboarding your new landlords. There’s a logical order for this process, and I follow a clear step by step system when I work with real estate agency principals to help them on-board a rent roll purchase. It’s not just about merging data. You have to get the order right. Here are some examples: Maybe the new rent roll is way behind on their routine inspections, so you want to jump straight in and get them done that month. Maybe the new rent roll has heaps of expired leases and you want to get those tenants back on fixed leases ASAP. Or maybe the whole rent roll hasn’t had rent reviews in years, and you want to show the landlords that you can maximise their returns right away. But that’s not the right order or approach. If the routines are 6 months late, who cares if they’re another 3 weeks late? If the leases are all expired, it’s going to take more than a week to fix that problem. If the rents haven’t been reviewed for years, they can wait another few weeks. You need to prioritise the onboarding of your new landlords before getting caught up in the other “busy-ness” Need help with this process? Send me a DM to book a Zoom call with me

When conducting a quick screen of a potential real estate transaction, many operators tend to glance at a rent roll and focus solely on the occupancy statistics. Is it 90% occupied? Where are the vacancies? Where is the upside in rent? Though these questions are important, they lack a deeper sense of the deal's merits. In this environment, deals need to be heavily scrutinized. It's not enough to focus on vacancies to determine a deal's viability. You have to read in between the lines. For instance, two properties, both with no vacancies might seem similar on the surface, but, after a deeper dive into their respective rent rolls, that might not be the case. How so? One property might have an average tenant tenure of 1 year, whereas the other property has an average tenant tenure of 3 years. One property might have deposits on each unit and the other might not have any deposits. One property might have poor collections with several tenants 60 - 90 days late, whereas the other property might have robust collections. Each of these data points can be extracting from a rent roll / aging report and be the difference between a successful investment and a terrible loss. Underwriting correctly is imperative. Reach out if you need a hand.

7 Mistakes That Landlords Make and don't Realise If you’ve recently become a landlord or are considering purchasing a second home for renting purposes, you’ve likely been introduced to a large bevy of responsibilities and duties you never expected you’d have. You can also find many mistakes landlords make. While renting out your property can be an extremely lucrative business venture, many enter the realm of rentals without proper knowledge or education on the subject and find it’s not as easy as expected. We’ve laid out the top mistakes landlords make when they run into, and the things you can do to avoid them. 1. Neglecting Proper Tenant Screening: One of the biggest mistakes landlords make is not screening tenants thoroughly. It's crucial to conduct background checks, verify income, and check references to ensure you're selecting reliable tenants. 2. Skipping Legal Documentation: Failing to have a solid lease agreement in place can lead to misunderstandings and legal issues down the line. Make sure to have a detailed lease that outlines all terms and conditions to protect both parties. 3. Ignoring Property Maintenance: Neglecting regular maintenance can result in costly repairs and decreased property value. Stay proactive by addressing maintenance issues promptly and conducting routine inspections. 4. Setting Incorrect Rental Prices: Overpricing or underpricing your rental property can deter potential tenants or lead to financial losses. Conduct market research to determine competitive rental rates in your area. 5. Poor Communication with Tenants: Effective communication is key to a successful landlord-tenant relationship. Be responsive to tenant inquiries, address concerns promptly, and maintain open lines of communication. 6. Not Understanding Landlord-Tenant Laws: Ignorance of landlord-tenant laws can land you in legal trouble. Familiarize yourself with local rental regulations to ensure you're compliant and protect your rights as a landlord. 7. Lack of Financial Planning: Failing to budget for unexpected expenses, vacancies, or repairs can strain your finances. Create a financial plan that accounts for all potential costs and ensures your property remains profitable. By avoiding these common mistakes, you can enhance your landlord skills, maintain positive tenant relationships, and achieve long-term success in the real estate industry. Stay tuned for more insightful real estate tips and tricks in my upcoming blog posts! Happy landlording, my beloved Clients! Follow us on; Instagram: https://lnkd.in/dW7UQyfY #realestatetips #realestateinvestmenttips #realestateagent

Every landlord dreams of finding the perfect tenant, someone who will care for their property as if it were their own. But how do you find that needle in the haystack? The answer lies in a thorough tenant screening process, and ezLandlordForms, a reputed service provider based in Florida, USA, has perfected this art.   I’ve had the opportunity to work closely with ezLandlordForms, and their approach to tenant screening is nothing short of meticulous. Allow me to share their step-by-step process that ensures you find the best tenants for your property.   Step 1: Pre-Screening Questions Before diving into the detailed tenant application, ezLandlordForms emphasizes pre-screening questions as an essential first step. The pre-screening process starts with basic but revealing inquiries, such as: How many proposed occupants are there? This question helps landlords ensure that the number of occupants aligns with their property’s capacity. Do you have any pets? Even if a landlord doesn’t allow pets, asking this question ensures there are no surprises later. It also helps gauge a tenant’s transparency. When would you like to move in? This question aligns the tenant’s timeline with the landlord’s availability. Is the security deposit and first month's rent available now? A quick financial check is crucial to ensuring the prospective tenant can meet the basic move-in requirements. These questions set the stage for the rest of the process and provide early insights into a prospective tenant’s suitability.   Step 2: Rental Application Once the pre-screening questions are satisfied, the next step is the rental application. ezLandlordForms provides a comprehensive application form that captures vital information. This form includes: Name and Date of Birth: Current Address: Financial Situation: Employment Status and History: Past Homes and Rentals:    Step 3: Tenant Screening The heart of the tenant screening process lies in the detailed checks ezLandlordForms conducts. This is where they truly excel, using cutting-edge tools to provide landlords with the data they need to make an informed decision. A Thorough Credit Report: The credit report offers a deep dive into a tenant’s financial behavior. This report highlights any outstanding debts, credit card usage, and payment history. A solid credit score is a good indicator that the tenant is responsible for their finances. A Nationwide Criminal Background Report: ezLandlordForms runs a nationwide criminal background check to ensure that the tenant doesn’t have a history of criminal activities. This is an essential step in maintaining the safety and security of the property and other tenants. An Eviction Proceeding History: A review of any previous evictions is crucial in determining whether the applicant has a history of being a problematic tenant. ezLandlordForms leaves no stone unturned in finding this information. https://lnkd.in/g68z4KAD

Here’s the 3 huge mistakes you should avoid as a landlord… If you want to simplify your real estate business: 1. Not Analyzing Deals Correctly. Don’t buy a property without accounting for potential vacancies, maintenance, or replacements. Take the time to be honest about the math upfront, so affordability isn't a problem later. 2. Choosing Tenants Based on Gut, Not Data. Many landlords move in tenants they "like" instead of relying on data.  Ask: Do they make three times the rent? Do they have solid references from past landlords? Have they held a stable job for six months? Decisions based on data, not emotions, prevent issues. 3. Not Enforcing Rules. If rent is due on the first, don’t let payments slide to the fourth, sixth, or later. When rules aren’t enforced, tenants push boundaries.  Just like kids, people will test limits if you allow it. Set boundaries, and stick to them. If you want to avoid these mistakes effectively, I’m a big fan of how TurboTenant helps in all of these areas. They have a free tenant screening tool that takes care of online background and credit checks. Over 700,000 landlords already trust it to find qualified tenants. You can also make rent less stressful for you and your tenants by using their rent collection software. For those of you that actually want to scale your real estate business, you can learn more here about TurboTenant and all of their incredible tools so you can buy back your time - https://lnkd.in/gkp5yAV6 This is a sponsored post, but I only work with companies that will make your life better as a real estate investor. TurboTenant is one of those companies.

Here are some aspects that landlords may sometimes overlook regarding the security deposit refund process: 1. Taking too Long: According to California law, landlords have a maximum of 21 days after the resident vacates the property to refund the security deposit. Exceeding this timeframe may lead to forfeiting the right to retain the deposit and potential liability for triple the deposit amount. 2. Confusing Wear and Tear for Damage: It’s crucial to differentiate between wear and tear and damage. While deductions can be made for resident-caused damages, deductions for wear and tear or property improvements are not permissible. Incorrect charges for wear and tear may result in liability for triple the amount. 3. Treating a Deposit as “Non-Refundable”: Legally, deposits are refundable, and landlords cannot deem them as non-refundable. Understanding the distinction between a deposit and a non-refundable fee is essential to avoid legal issues. 4. Forgetting to Check the Final Utility Bill: Final utility bills should be considered when determining deductions from the security deposit. Landlords may need to obtain the final billing statement from utility companies to ensure accurate deductions. 5. Over Charging for The Landlords Time: While landlords can charge for materials used in repairs, charging excessive fees for personal time involved in property maintenance is not permissible. 6. Not Considering the Life Expectancy of an Item: Landlords should consider the life expectancy of items when charging for replacements. If an item’s life expectancy has been exceeded, landlords cannot charge for damages, regardless of the item’s condition at move-out. Using a life expectancy formula can help determine appropriate deductions. ☎ 714.612.5373 📬 sylvia@sylviaharsin.com 🖥 sylviaharsinhomes.com Sylvia Harsin | DRE# 01117662 | Coldwell Banker Realty #owner #landlord #renting #2024 #localagent #huntingtonbeach #oc #la #coldwellbankerrealty #luxurylifestyle #buy #sell #invest

Tips for First-Time Landlords Understand Your Legal Obligations: Become an expert on the landlord-tenant laws in your area, including fair housing regulations, lease requirements, and eviction procedures. Compliance with these laws is crucial to avoid legal issues. Screen Tenants Thoroughly: Conduct a thorough screening process for potential tenants, which includes credit checks, employment verification, and references. Choosing the right tenant can prevent many problems down the line, such as missed payments and property damage. Create a Detailed Lease Agreement: Draft a comprehensive lease agreement that outlines all terms and conditions clearly, including rent due date, penalties for late payment, maintenance responsibilities, and rules regarding pets or alterations to the property. Clear communication through a well-drafted lease can prevent misunderstandings. Be Prepared for Maintenance: Maintenance issues will arise, and how you handle them can significantly affect tenant satisfaction and the longevity of your property’s condition. Set aside a budget for regular maintenance and repairs, and respond promptly to tenant maintenance requests. Set Competitive Rent Prices: Research local rental markets to set a competitive rent price that attracts tenants while ensuring you make a reasonable profit. Pricing your property too high can lead to vacancies, while too low could affect your revenue. Develop a Financial Plan: Keep track of all income and expenses related to your rental property. This includes maintenance costs, mortgage payments, property taxes, and insurance. Proper financial planning helps in maximizing your investment’s profitability.

Renters Credit Check - Credit Checks For Landlords. Tenant Screening and Its Critical Ingredients. Renters credit check is highly significant if you are aiming to have the rent paid by your tenants on time without hiccups. Attracting the best possible prospective tenant is the first step to selecting the best possible tenant. Well, the type of prospective tenant you attract is largely contingent on a number of factors. These factors basically include the rate of rents,neighborhood, unit mix and your marketing methods. #FrizeMedia https://buff.ly/2I1QbPB @Charlesfrize @Ageless_2u @DynamicFrize #rentalproperty #DigitalMarketingServices #MarketingTips #rentalproperties #rentalmanagement #rentalincome #rentalservice #propertyrental #CreditCheck #propertyinvestor #PropertyInvestment #propertymanagement #propertymaintenance #FrizeMedia