Establishing a clear and consistent rent collection policy will help you avoid late rental payments and endless tenant excuses. There are a couple of things you can do to ensure that your tenants understand the importance of paying rent on time.

Grace Period

The grace period is something that most landlords incorporate into their rent collection policies to allow tenants who cannot pay on the first of the month to pay a day or two later without penalty. When you’re establishing a grace period, make it short and strict. Two or three days is usually the maximum you want to allow with a grace period. Many landlords allow up to five days. Just remember that the longer you wait to collect rent from your tenants, the longer it will take to remove a problem tenant. So make your grace period short and strict.

Penalties

Penalties and consequences need to be included in a rental collection policy so tenants understand what will happen if rent is paid after the due date and the grace period. Late fees should be firm but fair. In the State of Florida, they are not regulated, but judges do not like to see abuse. Don’t be afraid to require a late fee, but make sure it’s fair and that you are consistent in collecting in.

Collecting Past Due Rent

There are several options available to landlords when tenants do not pay. These things should be included in your rent collection policy. You can send the payment history to the credit bureaus, you can send the tenant to collections, and you can file for eviction and remove the nonpaying tenant. Ultimately, you can sue the tenant for money owed and hope that someday they will pay that judgment. Tenants are human and they go through hard times like everyone else. Be fair, strict, clear and consistent. With a good rent collection policy in place, you will avoid any financial and legal burdens. If you have any question about collecting rent from delinquent tenants, please contact us at RentCare Property Management.

When you’re searching for a property management company in the Orlando area, there are several questions that will help you determine whether the company is a good fit for your needs.

How long have you been in business?

You want to make sure you are dealing with someone who has experience in the property management field.

Are you a NARPM member?

The National Association of Residential Property Managers is an organization dedicated to providing education and networking opportunities to property managers to enhance their careers. It also has a lot of resources that property managers can use to better serve their clients.

How many staff members do you have?

It’s important to understand the size of your property management company and what the roles of each team member will be. You don’t want to deal with a property manager who handles everything from maintenance to financial matters to compliance, leasing and advertising.

How do you determine rental price?

A knowledgeable property manager has the resources to find out how the market is performing in your area. You don’t want to price it too high or it will be on the market for too long. Vacancy can be an expensive problemfor landlords.

What services are included in your fees and what are the prices?

You don’t want any surprises, so make sure you get a look at the management contract and you know what you are paying for.

How do you screen tenants?

Anyone can pull a credit report, a criminal record and an eviction report. Your property manager should go above and beyond by doing employment references, landlord references and even checking social media and the FBI most wanted records.

How do you market properties?

Marketing does not mean sticking a sign in the yard and hoping for best. Your property manager has to handle advertising more professionally. The listings should be syndicated online and available on many different websites so more potential tenants will see it.

What is your maintenance policy?

Make sure you are informed of any emergency maintenance procedures. You also want to know whether you are contacted for approval on maintenance that goes above and beyond stated limits. Allowing property managers to make all decisions on maintenance is like handing the manager a blank check.

How do you communicate?

You want to be informed. Ask about how often they will communicate with you and make sure the communication policy is comfortable for you.

What are your compliance and collection processes?

You need to know what happens if a tenant doesn’t pay rent and how long it takes the property manager to evict. Find out how diligently they inspect the property and what they do to keep it maintained.

Not all property managers are equal. You must feel comfortable with the company you are dealing with and the people you hire. If you have any questions, please feel free to contact us at RentCare Property Management.

Property owners who need to move out of the Orlando area often assume they will need to sell their homes. But instead of selling, it might be a better idea to rent that property outto high quality tenants who will maintain it and pay rent every month. Here are some of the benefits you should consider before you sell your home:

Cash Flow

When you rent your property out, you earn rental income. A few extra hundred dollars can be handy every month. This will be especially beneficial if you have a lot of equity in your property and you enjoy competitive loan terms on your mortgage.

Home Appreciation

Currently, home values are moving up and the expectation is that they will continue to climb at an accelerated rate. Home values did decrease in the early recession, but that’s why values are rising now. The real estate market is improving, and it makes sense to let those values go even higher before you sell.

 Landlord Experience

Having a rental property on the market can give you valuable landlord experience. You’ll work with a property management team as well as your insurance carrier to make sure your home and your interests are protected during the tenancy. You’ll develop relationships with professionals who understand and appreciate your situation. It might inspire you to invest in additional real estate in the future. You can learn how to maintain homes better and improve your financial situation. Don’t forget to discuss the tax benefits of renting out your property with your accountant. You’ll be able to take several deductions at tax time.

Retirement 

Real estate can be an integral part of your retirement income. It provides a constant stream of income in your golden years, and you’ll also have a piece of property that can be passed onto your children if you choose to do that.

If you have any questions, please contact us at RentCare Property Management, and we’ll tell you more about why you might be better off renting out your property.

RentCare Property Management handles a variety of real estate investment needs in and around Orlando, and today we’re sharing some of the reasons that you should consider us to manage your rental property.

Experience 

With more than 23 years of experience in the central Florida market, we have made many mistakes and learned from them. Now, we can help you avoid those same mistakes. We have seen changes in the market and changes in the law, and we stay up to date on all those new terms and regulations.

Expertise

We are a full service real estate company, which means we help landlords, tenants, buyers and sellers. Whatever you need in the Orlando, Florida area – we can help you find it.

Education

Getting certified and obtaining special designations in the property management field is important to us. We go to classes, conferences and meetings that further our education so we can be better property managers for our clients.

Resources

Our team is our number one resource. We have a staff of professionals who are always training to be efficient and provide excellence and service to all our clients. We work with professional vendors who are ready, willing and able to help us in an honest, affordable and available way.

Technology

From marketing to management, we take advantage of all available technology in order to manage your property more efficiently. We syndicate the advertisement of our properties on over 100 websites, and we use the MLS to reach tenants who may be represented by other real estate companies. We provide an owner portal which gives access to our clients 24 hours a day and 7 days a week. You can check in to look at your financials or see what’s happening with maintenance, inspections and special projects. Our technology also allows us to make fast rental payments to you.

Communication

We utilize advanced tools for communicating. You can reach us through chat rooms, texts, emails and access to your property management portal.

If you have any questions or you’d like more information, please contact us at RentCare Property Management, and we’d be happy to tell you more.

Making Sure Your Properties Shine On The Outside

 by Marc Courtenay in Business

First impression matter as much as ever! Curb appeal still can make a big difference when it comes to attracting quality residents. Don’t believe me? Do what I did and interview rental shoppers. Location and the area of town is one of the “Big 3 Criteria” for prospective residents. Affordability was also one of the 3 biggies. Then I asked prospects, “How important are the exterior looks of the rental property?”

Sure enough more than 80% of the people I polled said, in essence, “If it doesn’t look appealing upon first glance we don’t even stop to look at the rental.”  My anecdotal poll reminds us that most residents want to live in a house or an apartment building that they’re proud of. Owners want residents to “take pride” in the rental properties they own as well.

Since there’s a direct correlation between the number of average vacancies per year and the condition of the rental unit, it literally pays in the long run to have properties that look well-maintained and attractive. After you’ve done the obvious cosmetic improvements like painting, replacing rotting trim and adding touches like window shutters, the way to make your properties look good on the outside is to invest in some low-maintenance but attractive landscaping.

Whether you live in a dry area or not it makes good sense to consider replacing old or sickly shrubs and bushes with some attractive drought-resistant plants. You’ll be surprised at how beautiful they are too. Many drought-resistant, low maintenance plants are colorful, have lush texture and bloom during many seasons of the year. Take a look at this collage of amazing photos which will demonstrate the beautiful diversity among these kinds of plants.

These photos also offer a wide variety of landscaping ideas and designs. They include walkways, patios and even a minimalist approach that utilizes an abundance of ground-cover like wood chips and bark dust. Make sure if you have an office for your property management business or apartment complex that it’s a glowing representation of your maintenance standards and good taste.

Remember that locations that receive a great amount of direct sunlight are prime areas for this landscaping approach.  If the area is blasted with continual sunlight consider a landscape plan that focuses on drought-tolerant perennials. Your local nurseries can give you many ideas on which ones to consider for your region. Emphasize color and how the plants will look when driving or walking by the properties that you’re trying to improve.

If you don’t have the budget for a full-blown landscape upgrade then pick small, highly visible areas of your rental property to adorn. Make each spot a showcase of good taste that you can’t miss or pass by without sneaking an admiring glance. Corners and places away from walkways and parking areas are perfect for beautification.

Finally, we can’t all be good at everything we do in our professions. Yet we all have family, friends, employees and local experts who can give us ideas and valuable opinions on what we can do to improve the attractiveness of our rental properties. Ask for ideas and suggestions. You’ll be surprised what you’ll learn.

Fixing that Overwhelming Feeling

Rising Rents Are Hot But Facts Show They’re Cooling Down

Posted on PropertyManager.com  on 19. Apr, 2013 by Marc Courtenay in Real Estate

The top five growth markets, Seattle, WA, San Diego, CA, Nashville, TN, Richmond, VA and Palm Beach, FL were up between 0.9% (less than 1%) and as high as Seattle’s 1.50 increase to an average of $1,078. The first quarter 2013 was the slowest rate of growth since the end of 2011 according to a report released April 3, 2013 by Reis Inc., a real-estate research company. Rental rates have increased nearly 10% since the nadir of late 2009.  According to a report in The Wall Street Journal those who monitor this situation are becoming more concerned that rents for the multifamily apartment sector have most likely hit their zenith.Single family housing rents rose once again in the first quarter of 2013. Yet signs are beginning to reveal themselves that the seemingly endless months of rising rents may be coming to an end. The reasons are numerous but the biggest is a marked increase in the supply of rental units. In many regions of the country rents actually declined in the first quarter. Such diverse areas as Ventura Country, California and Washington D.C. were nearly flat or down slightly. Okay, Ventura County technically showed a 0.1% increase, but that’s like saying if the average rent was $1,400 at the end of 2012 it’s now up to $1,414 –per-month.

“There’s not a lot of room to keep pushing rents right now,” said Ryan Severino, a Reis senior economist. There are a growing number of renters who are returning to the homeowner markets as a number of lenders are tapping government-sponsored mortgage programs for first-time house buyers and those who were crushed by the housing market collapse of 2007-2009. New York City remained the nation’s most expensive market with average rents of $2,989. Wichita, Kansas was the least market that Reis tracks, with average rents down to $520. Reis, which is a publicly-traded company that trades on the NASDAQ stock market under the symbol REIS, continues to monitor the situation.

The big concern nationwide continues to be overdevelopment. In the Pacific Northwest not only are more apartment building coming on the market but droves of investors have been scooping up every low-priced house, even “fixer-uppers” and converting them to rentals. In Chicago in 2012 a shortage of vacancies prompted owners and landlords to raise rents as much as 20% over 2011 levels, according to Aaron Galvin, quoted in the Journal article, who is the owner of Luxury Living Chicago Realty. That’s quickly changing according to Mr. Galvin who indicated that hundreds of new rental units have been added each month. He was quoted as saying that he hasn’t seen a rent rise above 5% so far this year.

It’s important for Property Managers and Owners to keep their fingers on the pulse of their local economy. Raising rents arbitrarily can motivate residents to move or to consider buying a starter home. Many property managers I spoke with for this article say it’s better to be slightly below the average rent than too far above it. If you need to incrementally or gradually raise the rent consider giving your residents advance notice and some good reasons that they can relate with. If you’re having trouble filling vacancies you may want to offer incentives again, like offering a free month of rent for signing a 13-month lease.

Did you hear that? Now what?