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You often hear us discussing the importance of inspections and preventative maintenance.
Where we do this in the Spring season, one of the best times of the year to perform these tasks is during Fall, in preparation for the winter months.
This week on the podcast, we are discussing what landlords should focus on to winterize their rental property.
We also dive deep into year-end business preparations in the office, which is something that really should not be overlooked. Budgets, analysis, planning, and tax prep are just a few of the items we will be discussing.
We know this is a busy time of year, but the peace of mind knowing we have done what we can to mitigate risk for our rental properties as well as our business, goes a long way.
LINKS
👉 Outdoor Water Spigot Covers/Socks for Winter Freeze Protection. Set of 2, $6.89
👉 Fall Maintenance Checklist FREE Download! Checklists: Winter Preventative Maintenance for Your Rental Property and End of Year Business Preparation
👉 Episode 67: Renters Insurance: Why Landlords Should Require It
👉 Property Management Software We Recommend:
👉 Episode 39: Part 1, The 50+ Must Ask Questions When Hiring a PM
👉 Episode 40: Part 2, The 50+ Must Ask Questions When Hiring a PM
👉Property Management Questionnaire when hiring a PM
👉Episode 35: How Small Gestures Make a Big Difference with Tenants
👉 The Fair Housing Institute: Fair Housing Courses and Certifications. Use code: YLR2024 for 15% OFF any course!
👉 Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
👉 Text Us a Question! Two methods available: SMS text to 650-489-4447.
OR https://www.buzzsprout.com/twilio/text_messages/2143553/open_sms
This text system is one way only, you need to include your email for a response.
Please allow 1-2 business days for us to get back to you regardless of method.
👉 Download our FREE Forms and Documents!
👉 Help other DIY landlords discover what we have to say… Please leave us a review of our podcast!
On Apple Podcast or ITunes, please scroll to the bottom of our main page (with our logo) and click “Write a Review”.
On Spotify, please click the 5.0⭐ on our the front page of our podcast page.
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By Kathleen Williams
Occupancy limit policies are crucial for managing apartments, whether located in a
densely populated city or a quiet suburb. However, developing and revising these
policies can be complex. Not only do you need to be aware of fair housing laws,
but also know local laws and municipal ordinances on occupancy limits.
How could you hope to balance it all? Better yet, balance it all while trying to avoid that fair housing violation? This in-depth look into not only building your policy but also enforcing it can help you achieve that balance. First, let’s take a look at how occupancy limit policies differ depending on the type of housing.
NAVIGATING OCCUPANCY POLICIES: FEDERAL GUIDELINES VS. PRIVATE SECTOR
Starting with federally funded housing, occupancy policies are already predetermined. You can
review the Keating Memo from HUD, which further explains the two person per room rule for this type of housing. However, this rule does not apply to housing such as private market or tax credit.
In all actuality, this rule has been labeled by HUD as possibly discriminatory based on familial status. Because of this, other forms of housing face the challenge of having to create their own occupancy policy and having to undergo constant revision.
BALANCING OCCUPANCY POLICIES: GUIDELINES, LEGALITIES, AND FAIR HOUSING
The best rule to follow when revising or creating your own occupancy policy is that of balance. Using the term balance as your foundation can be a little confusing, so let’s break it down.
A Balanced Policy:
First off, you need to decide upon clear guidelines without creating too much restriction. Top priority must be given to any local laws or any municipal code your property is governed under. Ensure your policy meets their minimum requirements for residents per unit or individuals per room.
The second step is to take a look at your units and your property as a whole. What can the size
and layout of the unit accommodate? Another great tip when revising or creating a policy is
resident details. This may include details such as whether a unit is occupied by all adults or if
there are children residing there as well.
There is an important note to remember when it comes to details for your residents within the
policy. You need to ensure that you do not mention specifics, such as age and gender, in order to avoid a fair housing violation. Sex is a protected category and in many states, age is a protected class.
What NOT to do: A recent example of a property forgetting these details resulted in a fair housing discrimination case. An apartment complex in Louisiana had a policy in place stating that two children of the opposite sex could not share a room. Leasing agents falsely claimed that the property’s policy was based on state law when, in fact, they were discriminating against both age and sex, inciting a fair housing violation.
ENFORCING OCCUPANCY POLICIES: STEPS AND FAIR HOUSING CONSIDERATIONS
Now that you know the foundations of a good occupancy policy, it’s time to understand how to enforce it without inciting a violation. The key first step: make sure you have all the information before proceeding with a lease violation. Once you can confirm that the resident is indeed breaking your property’s occupancy policy, there are a few follow-up steps to take.
- First off, have a discussion with the resident of the unit, being clear about the guidelines of why the violation was cited.
- Second, follow up on disciplinary measures as laid out by your property’s policy. This may be the requirement for the resident to move to a larger unit or simply cite a violation in the lease agreement.
Remember, as a landlord, you are permitted to enforce your policy. However, there is one fair housing hurdle you and your team should be aware of.
HANDLING ACCOMMODATION REQUESTS WITHIN LEGAL LIMITS
Accommodation requests are inevitable. This includes requests from residents that break policy, including those on occupancy limits. While you want to do your best to ensure
that your residents’ needs are met, there is one factor that needs to be considered. No
reasonable accommodation can supersede local law or municipal codes. As an example, let’s say a resident submits an accommodation request stating that they need to break policy on a certain unit’s occupancy limit. If that policy is based on local laws stating how many individuals can be in that size unit, you will have to find a different solution for that
accommodation. If the request does not break any local laws, then it is safe to follow your
property’s procedures to accommodate that resident.
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KEY TAKEAWAYS FOR EFFECTIVE OCCUPANCY POLICY MANAGEMENT
In short, balance is key when it comes to any kind of policy. In the case of occupancy limits, balancing both fair housing standards and local laws and ordinances when taking a look at your policy is the best course of action. If you’re starting a new policy or revising one currently in place, there are a few key steps that should be on your checklist:
✓ Ensure your policy is clear and concise but not too specific. Take care to avoid
discriminating against certain protected categories and classes. As shown in the court
case discussed earlier, these kinds of details in your policy can lead to a fair housing
violation.
✓ As a property manager, it is your responsibility to enforce your policies. Be careful when
investigating, documenting, and explaining any lease violations you carry out.
✓ Reasonable accommodations that violate your property’s policy can happen. Ensure that
whatever the request, it doesn’t break your state’s laws on occupancy limits.
Remember, balance is key to any property with these policies, no matter the location. Let this guide help you to ensure that your occupancy limit policy meets Fair Housing standards, keeping your residents safe in their homes and locking in that property management win.
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Provided by Avail
Knowing how to be a good landlord requires extensive knowledge of renting, as well as the right tools to make the process easier. But if you’re a first-time landlord, managing both a rental property and tenants can easily be overwhelming if you’re not sure where to start.
To help you become a successful landlord, we share expert tips on landlording to help you manage your first property, as well as resources to take advantage of right away.
9 Landlord Tips for First-Time Landlords
As a first-time landlord, it’s important to know the basics of managing a rental property for an overall positive experience. From tools to have on hand to best practices to keep in mind, we outline nine tips to consider when being a landlord for the first time:
1. Utilize a Property Management Software Platform
Managing a rental comes with tons of responsibilities, all of which can be time-consuming without a property manager. Luckily for you, property management software platforms have streamlined the process of advertising your rental, finding quality tenants, screening them, collecting rent, and more.
Avail (part of Realtor.com®) offers free rental property management software that helps landlords easily manage their rental online, hassle-free. You can create a free landlord account to set up your tenants, collect rent online, track rental property accounting, as well as explore an extensive library of educational content on landlording. Avail is free for unlimited units, but you have the option to upgrade to Unlimited Plus for $9/unit per month to create custom leases or a website for your rental business.
Plus, you can earn up to $500 in account credit with the Avail Referral Program by inviting 10 fellow landlords to Avail to create an account. Get started today by creating a free account in less than five minutes.
2. Determine a Fair Rent Price
Your rent price will determine whether or not a tenant will be interested in renting your property. Although protecting your investment is the first priority, it’s important to determine a fair market rent based on other rentals in your designated area. This ensures you find tenants that can afford to rent your apartment and reduces the chance of long vacancy periods.
To complete this step, you can research local properties with similar features for their rent price or invest in an Avail Rent Analysis report that shows how your rental compares to similar properties in your area, as well as rental benchmarks from the lowest to the highest rent.
Once you’ve established a rent price that you’re comfortable with, then you can begin advertising your rental property online to find potential tenants.
3. Find Quality Tenants
In order to find quality tenants, you’ll need to advertise your rental property across various websites to generate rental leads. Since most tenants search for their next apartment online, it’s important to find landlord software that syndicates your rental listing across more than one site to get your property in front of tenants.
When advertising your rental listing on Avail, your listing is syndicated out to Zillow, Trulia, HotPads, Zumper, Apartments.com, Realtor.com®, PadMapper, Apartment List, Walk Score, and Doorsteps all at once. You can also manage any generated leads directly through your landlord dashboard for less back-and-forth communication.
You’ll want to describe the unit in a few sentences with the address and set rent price, as well as take accurate and eye-catching pictures of the property.
4. Screen Potential Tenants
Once enough qualified leads have been generated, you’ll want to begin the tenant screening process. In addition to having tenants complete an online rental application, it’s best practice to include credit, background, and eviction checks to get factual information on who they are. However, some states put limitations on how much landlords can screen potential tenants, so you’ll want to do some research on local landlord-tenant laws before adding this to your application.
An Avail online rental application allows landlords to include custom questions, as well as advanced reporting such as a TransUnion credit report and background check for a one-time fee. Instead of paying out-of-pocket for the cost of screening a tenant, the cost can be offset to the applicant.
5. Create an Online Rental Lease
As a first-time landlord, it’s important to put together a rental lease agreement that complies with local ordinances and is reviewed by a lawyer before sharing with tenants. Not only does this ensure it’s a legally-binding agreement, but protects all the parties involved.
The lease agreement should include the monthly rent amount, security deposit amount, terms of lease, and clauses that protect both the landlord and tenant. Many of these clauses and disclosures will be dictated by the standard lease within your city, but it is a good idea to make sure the lease fits the needs of your rental, as well.
With Avail, landlords can easily create a lawyer-approved lease agreement for free or upgrade to Unlimited Plus to create a customized lease that can be cloned for later use. The lease agreement can be signed online for free and is stored in each parties’ dashboard to reference in the future.
6. Share a Move-In Checklist
Your rental property should be habitable and clean before moving in new tenants. To help document the condition of your property before and after they move in, you can use a downloadable move-in checklist to access on any device.
Tenants should be notified on how garbage, laundry, and newspaper delivery work in the area, along with any other amenities that the building or property provides. The more thorough you are with explaining the starting conditions of your unit, the less surprises you’ll have at the end of the lease.
7. Contract Your Contractors
If you’re not a handyman yourself, you’re going to need help handling maintenance at some point. If you don’t know of any good contractors in the area, try to find local contractors that can quickly and efficiently handle repairs for you. .
Talk to friends and family about finding a contractor, and look up contractors in your area online. Compare and contrast different options when hiring a contractor as this could become a good long-term relationship, so don’t be afraid to spend some time looking around.
Make sure to get referrals, proof that the contractor is insured, and a guarantee on the work. Allow your tenants to submit maintenance tickets online, so you can record issues, store photos, and communicate with your tenant online.
8. Manage Your Rental Income
Being a landlord is equivalent to owning your own business, even if you’re only managing one unit. If you treat it as a business, you’ll have the right frame of mind when making decisions.
As a first-time landlord, it’s advised to manage any income you’re generating from the rental in a separate bank account than your personal account. Not only will you need to store a tenant’s security deposit separately, but you’ll need a platform that can help you collect rent online and manage any other fees tenants are responsible for covering. Avail allows you to easily track payments for all your properties online, which can later be accessed during tax season.
9. Invest in Landlord Insurance
Just like tenants have renters insurance to protect their belongings, it’s important to invest in landlord insurance to protect you from property damage, loss of income, and liability. Landlord insurance premiums can cost anywhere from $800 to $1,200 annually, depending on the type of coverage you want.
Manage Your Rental With Avail
Becoming a first-time landlord is an exciting venture to take on and is less daunting than you think. Now that you know how to be a landlord with the tips we’ve shared, the next step is managing your rental with confidence by using landlord software like Avail.
Create an account to begin the process of managing your rental property like a seasoned professional.
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By Ryan Squires
When setting the rental rate for a rental property or looking for a new place, landlords and tenants frequently ask: “Are landlords required to pay for water and garbage?”
Typically, landlords aren’t required to pay for these utilities. However, different states and cities have their own laws dictating what utilities a landlord may be required to pay for, so it’s critical to understand the rules governing the area where you operate your business. And for tenants, finding properties that cover, or at least partially cover, utilities can sweeten the deal.
Our comprehensive guide examines whether landlords are required to pay for water and garbage.
Key Insights
- Are landlords required to pay for water and garbage? In most cases nationwide, landlords are not responsible for paying these utilities.
- Some localities, including New York City, require landlords to cover water and garbage collection. Always check your local laws to understand your responsibilities as a landlord or tenant.
- The property type often dictates who pays for what.
- TurboTenant has state-specific leases from all fifty states and a robust maintenance and repair tracking system so landlords and tenants can communicate clearly about any issues that may arise.
Understanding Landlord Responsibilities for Utilities
Most landlord-tenant disputes regarding utility bills occur when the lease agreement contains ambiguities. This often comes up when no clear language specifically dictates who is and isn’t responsible for each utility, including electricity, phone and internet, water, garbage, sewer, and anything else that could qualify as a utility.
However, a few other things might arise while renting a home that might raise questions for either the landlord or the tenant.
Utility Usage and Fairness
In multi-unit buildings where tenants split the cost of the utilities, a dispute could occur regarding each tenant’s responsibility. For instance, if one unit uses an extraordinary amount of electricity compared to others, a landlord could require the offending unit to cover a high portion of the bill to maintain fairness among all renters. This solution isn’t allowed everywhere, so check your lease and local laws to see if you live in an area where this kind of dispute could arise.
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Maintenance and Repairs
In certain instances, a tenant could claim that a landlord should be responsible for a portion of a utility bill if regular upkeep and maintenance are lacking and the cost of using the utility increases because of it. Additionally, outdated appliances or other features in a unit could also increase utility costs, and a landlord might be responsible for addressing the issue or could offer to cover a portion of the related utility.
In all cases, tenants and landlords should keep detailed records of any dispute, and tenants should always continue paying rent in accordance with the rental agreement terms so that a minor dispute doesn’t become a larger one.
How TurboTenant Can Help with Utility Management
So, are landlords required to pay for water and garbage? As you’ve seen above, the answer can get a little complicated. In most cases, no, but there are situations where landlords may be required to cover certain utilities.
TurboTenant can help.
As part of TurboTenant’s all-in-one property management software, landlords can create iron-clad lease agreements demonstrating who is responsible for paying what and when. And with rental maintenance management, tenants can quickly spot a leaky faucet, create a maintenance request from their smartphone, and get the water bill under control.
TurboTenant makes solutions for renting and managing property for the modern age. Sign up for a free account today or invite your landlord to check it out and see how TurboTenant makes life easier for renters and landlords.
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We all pay someone to do work for us at some point or another. But did you know that how you classify those funds paid (code and book that payment accounting wise), can determine if you think they are a 1099 worker or a W-2 employee?
This week on Your Landlord Resource we are discussing the two rules that the Federal government and potentially your state government use to determine the difference between the two.
It’s a short episode that’s packed with a lot of good info to keep your business out of trouble in case you are ever audited…and we are seeing a lot of people we know go through this right now and its NO FUN!
LINKS
👉 Episode 5: The Advantages of Employing Your Children in Your Business
👉 US Department of Labor: Myths About Classifications of Employees as Independent Contractors
👉 Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
👉 Text Us a Question! Two methods available: SMS text to 650-489-4447.
OR https://www.buzzsprout.com/twilio/text_messages/2143553/open_sms
This text system is one way only, you need to include your email for a response.
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👉 Download our FREE Forms and Documents!
👉 Help other DIY landlords discover what we have to say… Please leave us a review of our podcast!
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When you start them early enough, your investments can perform shocking feats of strength. They can even keep pace with the runaway cost of college tuition—which has more than doubled since 2000. The average cost of private college tuition and fees has reached $38,768, according to the Education Data Initiative, and you can expect that to keep skyrocketing between now and when your little one reaches college age.
Fortunately, real estate can help. Try these creative approaches to paying for your kids’ college education so you can stop worrying and start getting excited about your children’s university years.
1. Let Your Tenants Pay for Tuition
Imagine that the year your child is born, you buy a rental property for $360,000 and put down 20% on it. You borrow the rest ($300,000) with a 30-year mortgage at 6% interest.
After 18 years, you now have $554,870 in equity. That’s a tidy sum to pay for tuition, hopefully with plenty left over to go toward your retirement.
Your tenants have paid down your mortgage balance even as your property has appreciated in value. I assumed a 4% annual appreciation rate. For context, U.S. home prices appreciated an average of 4.8% annually from 1987-2023.
Oh, and that says nothing of your cash flow. Your rents have risen alongside inflation, even as your mortgage payments remained fixed. Your rental property should be paying a princely sum each month by now. It probably cash flows so well that you won’t want to sell or refinance it.
If you want to get even more aggressive with paying down your loan balance, you could buy with a 15-year mortgage. Just beware that your cash flow will take a hit.
2. BRRRR: One Down Payment to Rule Them All
If you wanted to get more aggressive with your rental strategy, you could follow the BRRRR strategy (buy, renovate, rent, refinance, repeat). The idea is that you force equity through renovation, then refinance to pull your initial down payment back out.
In the example, you still had to plop down $60,000 plus closing costs—no trivial amount. Imagine instead that you buy that property’s run-down neighbor for $240,000, put $50,000 into renovating it, and borrow the same $300,000 mortgage.
You end up with all the same long-term numbers for appreciation and rental cash flow. But now you don’t have a penny tied up in the property. You can reinvest that money in stocks, syndications, or more rental properties.
In fact, you could repeat the same BRRRR process indefinitely to generate infinite returns. Because there’s technically no limit on how many times you can recycle and reinvest the same capital, there’s technically no limit on your returns.
3. Infinite Returns on Real Estate Syndications
The BRRRR strategy comes with a huge drawback: It requires a lot of labor. Sure, you can get your money back out of each property, but your time? That’s gone forever as a less visible but no less real part of your investment in each property.
Some passive real estate syndications follow a similar strategy, just on a far larger scale. A syndicator buys a dilapidated apartment complex, renovates and repositions it as a higher-end property, and leases the units for much higher rents. They then refinance it and return passive investors’ initial capital—but all the passive investors retain their ownership interest.
In other words, you and I get our money back, which we can reinvest elsewhere. But we also keep collecting cash flow from the original property.
Many syndications target annualized returns in the mid-teens or higher. “Uh, don’t most syndications require a minimum investment of $50,000-$100,000?”
They do indeed—if you invest by yourself. That’s why I don’t. Our Co-Investing Club meets every month to vet deals together, and members (including me) can go in on them together with $5,000 or more. I use it as a form of dollar-cost averaging, a way to consistently invest more manageable amounts each month in high-performance real estate investments.
And the math shifts even more to your favor when you get your principal back to reinvest again and again. But that’s messier to project forward into the future, so we’ll leave the graph at the standard compounding rate.
Besides, we invest in other types of passive real estate investments, such as private partnerships, private notes, debt funds, and more. Infinite returns sound great on paper, but I’m more interested in finding asymmetric returns.
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4. Flip Houses with Your Teens
As your kids get closer to college, you can involve them in paying for their own higher education.
Flip a few houses with them. The profits from each house you flip could cover the cost of tuition for a year or more.
Even better, your teen will learn real-life skills such as forecasting ROI, negotiating, budgeting for projects, managing contractors, navigating bureaucracy such as permits and inspectors, and home improvement.
And maybe they’ll actually show up for those 8 a.m. classes if they helped pay for them by swinging a hammer and sweating all summer.
5. Kiddie Condo House Hacking
It turns out there’s a loophole for owner-occupied mortgage financing: Your adult children can satisfy the occupancy requirement.
That means you can buy student housing for them and their roommates with a primary residence loan. And their roommates can cover the mortgage payment for you, removing the need for either you or your child to pay for housing.
Again, your kids can learn some real-life skills, such as property management. Just make sure you only partner with them if you can trust them to manage an asset worth hundreds of thousands of dollars.
When they graduate, you can decide whether to keep the property as a rental or sell it and hopefully walk away with some profits.
6. Roth IRA Real Estate Investments
Roth IRAs offer more flexibility than any other retirement account. You can withdraw contributions at any time, penalty- and tax-free. You can even withdraw earnings early if you put them toward qualified education expenses, such as:
- Tuition and fees
- Books and other school supplies
- Equipment required for attendance
- The cost of special needs related to attendance
Imagine you invest in passive real estate investments for those 15% returns in the chart through a self-directed IRA. After 18 years, you decide you have enough to spare to help your kids with tuition—and so you do, tax-free.
Just make sure you actually can spare it. Your kids have dozens of ways to pay for college. You only have one way to pay for retirement.
Look Into Creative Combinations of Real Estate Investments
You can mix and match all these strategies, like Lego sets, to build an education fund. And these are just the tip of the proverbial iceberg.
Have you considered house hacking your own residence? You don’t necessarily need to move into a multifamily or bring in a housemate—my cofounder at SparkRental and her husband hosted a foreign exchange student, and the stipend covered most of their mortgage payment. Or you could add an ADU. Or you could rent out some or all of your home as a short-term rental, perhaps even when you’re not using it.
As mentioned, it helps if your kids have some skin in the game. Make them contribute in some way and make your help contingent upon performance. That could mean a minimum GPA or some other metric to make sure they don’t take your help for granted.
Get creative with paying for college with real estate. It doesn’t have to take a huge bite out of your net worth, but it does require advanced planning, thoughtful strategizing, and clean execution.
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Written by Amanda Walker
ezLandlordForms, a leading provider of property management solutions, is proud to announce the launch of its new Rent Payments feature. This new feature is designed to streamline rent transactions for landlords and tenants. It revolutionizes the rental management experience with industry-leading convenience, security, and efficiency.
Key Features and Benefits:
- Convenience: Landlords and tenants can now send and receive rent payments anytime, anywhere, with just a few clicks.
- Security: Advanced security protocols ensure that all transactions are safe and secure.
- Efficiency: Automated processes allow landlords and tenants to spend less time paying and processing rent while also minimizing errors.
“We are thrilled to introduce the Rent Payments feature, which marks a significant step forward in our commitment to providing comprehensive and user-friendly property management solutions,” said Kevin Kiene, President of ezLandlordForms. “This new feature will greatly enhance the rental management process, making it easier and more secure for our users to handle rent transactions.”
The launch of the Rent Payments feature is a natural next step for ezLandlordForms as it consistently strives to innovate and provide exceptional value to its customers. By integrating this feature into its platform, ezLandlordForms will be able to provide a more seamless rental experience for Landlords and Tenants and further support landlords through every phase of the rental process.
For more information about the Rent Payments feature and other services offered by ezLandlordForms, please visit ezLandlordForms.com.
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ezLandlordForms is a premier provider of property management solutions, offering a comprehensive suite of tools and resources designed to help landlords manage their properties efficiently and effectively.
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By Ryan Squires
Dealing with delinquent tenants who don’t pay rent on time is one of the most difficult aspects of property management. Tracking down late rent is time-consuming, receiving payments can take months, and it might require a long legal battle.
Reporting these tenants to a credit bureau can help show other landlords that they’re inconsistent with rent payments and help them avoid future headaches. While this process is an option for some landlords, it’s complicated and not an option for everyone. In this blog, we’ll break down everything you need to know about how to report unpaid rent to credit bureaus and other ways landlords can attempt to collect unpaid rent.
How to Report Unpaid Rent to Credit Bureaus
Landlords can leverage credit reporting as a tool to encourage timely rent payments. However, direct reporting to credit bureaus is typically reserved for large landlords who process numerous rental payments monthly. Smaller landlords may find it challenging due to the need for a merchant account.
An alternative for smaller landlords is Experian’s RentBureau. This service allows landlords to automatically deduct rent from tenants’ bank accounts and report payment history to Experian. However, tenants must opt-in, and the service doesn’t cover other tenant behaviors like evictions or property damage.
Alternate Options to Collect Unpaid Rent
Reporting late rent payments to a credit bureau isn’t an option for every landlord, so what alternatives do you have? Here are a few options for landlords who need to collect unpaid rent.
Eviction
Eviction is often the most effective way to recoup unpaid rent, but it can take the longest. The eviction process varies by state but generally involves filing a formal eviction notice with the court. If the tenant doesn’t vacate the property within a specified timeframe, a court order is issued, and law enforcement can remove the tenant.
Evictions are also typically reported to credit bureaus, which impacts a tenant’s credit score and demonstrates to other landlords that the tenant might not be reliable.
Collections Agencies
Hiring a collections agency can be a viable option for recovering unpaid rent. These agencies specialize in debt collection and have the resources to pursue delinquent tenants. Keep in mind that there’s usually a fee associated with using a collections agency, and they typically receive a percentage of the recovered amount.
Rent Reporting Services
Another avenue to explore is rent reporting. While not a direct collection method, it can incentivize tenants to pay rent on time. Some companies specialize in reporting rental payment history to credit bureaus.
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Consequences for Tenants
Reporting unpaid rent to a credit bureau can have significant consequences for tenants. A negative rental payment history can:
- Lower their credit score: This can impact their ability to secure loans, credit cards, or even housing.
- Make finding future housing difficult: Many landlords use credit reports as part of their tenant screening process.
- Result in increased rental costs: Tenants with poor credit may be required to pay higher security deposits or increased rent.
Tenants must understand the importance of timely rent payments and their potential impact on their financial well-being.
How TurboTenant Can Assist Landlords
Reporting unpaid rent to credit bureaus can be an effective tool for landlords to encourage timely rent payments and mitigate financial losses. However, it’s a complex process that might only be an option for some landlords. So, it’s essential to prioritize direct communication with tenants and explore alternative solutions.
TurboTenant offers multiple features designed to make rent payments easier. With TurboTenant, landlords and tenants can:
- Easily make online rent payments from any device.
- Automatically report on-time rent payments to build tenant credit.
- Distribute automatic rent receipts to tenants for accurate record-keeping.
- Send automatic rent reminders to reduce late payments.
- Set up autopay and eliminate late rent payments.
Sign up for a TurboTenant account today to streamline the rent collection process. All the rent collection features are free and give you a cost-effective way to battle late payments before you’re forced to consider reporting unpaid rent.
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As we approach the end of the year, it’s crucial for small landlords to get a clear picture of their rental property’s financial health. QuickBooks is a powerful tool that simplifies financial management for landlords, especially those who own fewer than 10 units. In this post, we’ll explain how you can use QuickBooks to organize your finances, track rental income, and prepare for tax season.
Your Landlord Resource is here to walk you through the best ways to use QuickBooks to ensure your rental business is ready for the end of the year.
Why Landlords Should Use QuickBooks
Managing a rental property business can get complicated quickly. Small landlords, especially those owning 1–10 units, need a system that can manage rent payments, track property expenses, and simplify tax preparation. QuickBooks does just that by offering:
- Expense and income tracking for each property
- Comprehensive financial reporting to give a clear business overview
- Tax preparation tools, such as categorizing deductible expenses
- Tenant management features to track rent payments easily
For small landlords who want to manage their rental properties like a professional, QuickBooks is a must-have tool.
Setting Up QuickBooks for Your Rental Property Business
To get the most out of QuickBooks, make sure you set it up properly. Here’s a quick guide for landlords looking to streamline their rental property finances:
1. Create Separate Accounts for Each Rental Property
If you own multiple rental properties, track each unit separately. QuickBooks allows landlords to set up different “Classes” or “Locations” to organize income and expenses by property. This is especially useful when comparing performance or preparing reports for individual properties.
2. Link Your Bank Accounts for Automatic Transaction Imports
QuickBooks integrates with your bank accounts, making it easier to track expenses like mortgage payments, utilities, and maintenance costs. You can save time by avoiding manual entries, and your accounts will always be up to date.
3. Track Rental Payments Automatically
You can set up recurring rent invoices for each tenant in QuickBooks, which makes it easy to send payment reminders and track who has paid and who hasn’t. This is essential for keeping cash flow steady and minimizing late payments.
QuickBooks Year-End Reporting for Landlords
As the year comes to a close, QuickBooks provides key reports that every landlord should run to prepare for tax season:
1. Profit and Loss (P&L) Statements
A P&L statement gives you an overview of how your rental properties performed during the year. QuickBooks makes it easy to generate this report, which is crucial for understanding your revenue and operating expenses.
2. Tax Summary Report
QuickBooks helps landlords prepare for tax season by automatically categorizing deductible expenses, such as property repairs, insurance, and utilities. You can easily generate a tax summary report that highlights all eligible deductions.
3. Prepare 1099 Forms for Contractors
If you’ve hired contractors to perform repairs or maintenance on your rental properties, QuickBooks helps you track payments and generate 1099 forms for tax purposes. This feature ensures you comply with IRS regulations and simplifies the process.
Why QuickBooks Simplifies Tax Preparation for Landlords
For landlords, tax season can be daunting without proper financial organization. QuickBooks provides several tools to help you prepare for taxes:
- Expense categorization: Automatically sorts expenses to make tax filing easier.
- Receipt storage: The QuickBooks mobile app lets you snap photos of receipts and store them digitally, making year-end documentation simple.
- Accountant collaboration: QuickBooks allows you to share your financial data directly with your CPA, ensuring they have everything needed to file your taxes accurately.
Conclusion: Get Organized Before the Year Ends with QuickBooks
QuickBooks is an invaluable tool for landlords, helping you organize your rental business finances, streamline operations, and prepare for tax season. By implementing QuickBooks now, you can ensure your rental property business is ready to close out the year with ease.
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It’s that time of year where the leaves start falling, and there’s a nip in the air each morning and evening. Time to put away the tank tops and pull out the sweaters! For landlords, Fall is the time of year for seasonal maintenance on their rental properties. Here are some reminders on what you or your property manager should be checking out as preventative maintenance…
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Tenant screening software is becoming more and more popular now that landlords are working to improve their applicant vetting processes.
In this episode, we will cover what tenant screening software is, why it matters, and how it compares to other options like using property management software or hiring a property manager.
We’ll also cover a couple real-life horror stories about tenant screening gone wrong and the legal liabilities landlords need to be aware of.
So, whether you’re using screening software or not, by knowing the risks, the best practices, and the best tools can make or break your rental business.
Of course, we will also compare some of the top software options out there.
LINKS
👉 Episode 49: Analyzing Credit Reports for Tenant Selection
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👉 SmartMove Tenant Screening Software
👉 Tenant Alert, Tenant Screening Software
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👉 The Top 5 Prescreening Questions We Always Ask and WHY
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