Source: Landlord Gurus
Before you get down to marketing your rental you need to decide on some basic rental terms you’ll be asking a renter to agree to. Below is a brief rundown.
Each property is different, so you’ll want to make sure you think carefully about what will work best in your case. Here are some common rental terms:
- 1-year lease
- Something shorter than a year, like for student housing
- Month-to-month
Something else to think about is whether the tenancy ends at the end of the term. For example, if it’s a one-year lease, at the end of the year, is the tenancy over or will it automatically revert to month-to-month?
Animals
Do you accept pets at all, and if so what kind and how many? For example, some of our properties will allow cats but not dogs.
Be careful not to lump Service Animals and Emotional Support Animals into your “pet policy”, as they are NOT considered pets and there are strict rules about what you can and cannot do when people have them.
If you do allow pets, consider the different types of pet fees and things you might need to ask for. For example, charging for pet screening, pet deposits, and pet rent. Are you going to charge a flat fee for having a pet? Or will you charge monthly?
Setting the Rent
You can quickly survey listings on Zillow, Craigslist, etc. to get a feel for how the competition is priced. Many property management software products also have free rent estimation features. You could also use products that give you comparables, trend lines for local rent, and pricing suggestions.
Utilities
You’re also going to want to decide how you and your tenant will handle utilities.
Which utilities can tenants put directly in their names? Generally, these should be metered separately so that they are only paying for what they use, but sometimes there are exceptions or tradeoffs.
Where not separately metered there are multiple ways to charge tenants for utility costs:
- RUBS: Ratio Utility Billing System — charging tenants for actual utility expenditures, usually calculated based on square footage or occupancy.
- Submeters
- Flat fees: For example, $40/person/month for water, sewer, and garbage.
WiFi
Will you provide WiFi for the property, or do tenants pay for their own service? Consider whether your building is wired in such a way that tenants can get their own service easily, and without a bunch of new holes being drilled.
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Parking
Will parking be included, or is it an extra fee? Some places, like Seattle, require parking to be separate.
Deposits and Fees
Consider whether you want to separate deposits for different purposes, or use one umbrella security deposit. We often just take one general security deposit. Note that there are requirements in some places regarding how you handle the money.
A security deposit is generally fully refundable but can be used for unpaid rent or fees, repairs, cleaning, or other amounts due.
Another type of deposit is a cleaning deposit, which tenants pre-pay for having the unit cleaned at move-out. They don’t need to deep clean anything at the end. This is a good way to handle concerns regarding cleanliness and having to hire cleaners without compensation.
Going back to pet deposits and fees, decide whether you want to collect a fee that’s not refundable. This can be used for services at the end of the tenancy to prepare your rental after having a pet in it.
Next is application fees. Nowadays, screening services will collect a fee, which makes it easy, as you don’t have to worry about collecting or refunding fees.
There are also some miscellaneous fees for things like storage or locker fees. If you have those amenities on your property, that’s something you can charge for. Amenity fees are something that we have seen at larger, nicer complexes. They might tack on a fee because they have a nice fitness center or other amenities that tenants can use.
Another thing that we charge for is a lockout or lost key fee. If the tenant does not want to pay that fee, they can instead hire a locksmith to let them into the property.
There will also be move-in costs. When the tenant first moves in, what will they have to pay upfront? Usually, it’s the first month’s rent and possibly the last month’s rent that you’ll collect upfront. Along with any of the deposits you choose to charge. In some places, there are regulations on how much you can collect.
Takeaway
Before marketing your property, be sure to decide on the things you’ll need to communicate upfront. This includes the things that we went over in this article, such as animals, rent, deposits, and fees. This will ensure that prospective tenants understand what they’ll be getting themselves into.
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By Ryan Squires
Ideally, the landlord-tenant relationship is built on great communication, timely issue resolution, and prompt rent payments. Although most tenants pay their rent as they’re supposed to, it can be stressful for landlords when days go by without a check or a promise to pay.
So, how can you ensure timely payments without pestering your tenants endlessly? How can you maintain a solid working relationship with your tenants so they understand the importance of timely payments? And how can you make sure that you maintain a solid foundation for your investment and properly anticipate your cash flow?
In this rent reminder guide, we’ll review some strategies for landlords and tenants to ensure timely rent payments.
Key Insights
- Understanding when rent payments are expected is a key component in understanding the cash flow of a landlord’s investment. It can dramatically impact maintenance schedules, property tax payments, and other property expenses.
- Rent reminders can be sent in various ways, including email, text messages, and push notifications. They should be polite, clear, and to the point.
- TurboTenant is a free-to-use property management platform that offers multiple ways to remind tenants to pay rent on time, regardless of how many properties they manage.
Understanding the Importance of Timely Rent Payments
Renting out property is an investment; receiving rent payments is critical to ensuring a return. Whether you own and lease out one or multiple properties, fully understanding your cash flow is crucial to effectively running your business.
For landlords, rent payments past their due date can lead to delayed maintenance, deficient cash flow, and a chain of potentially delayed payments for other property expenses, including property taxes, utilities, or other costs incurred from owning and renting a unit.
Late payments are generally subject to the lease terms for tenants, which can lead to late payment penalties and, eventually, potential legal consequences like eviction.
How to Set Up Rent Reminders
As a property manager, developing smart strategies to remind tenants to pay rent, ensure timely payments, and build a strong relationship with your tenants is essential. One way to set up a rent reminder is to utilize property management software like TurboTenant.
Many rent collection platforms offer the ability to automatically remind tenants through push notifications, text messages, or emails every month before rent is due. These methods are beneficial because they shift the conflict associated with asking for late rent to software. Now, you don’t have to be the bad guy.
Landlords can also offer auto payment options for tenants, where rent is automatically deducted monthly from the payment method of a landlord or tenant’s choice. This is a great way to ensure that rent is always on time.
Best Practices for Rent Reminders
Creating an effective rent reminder process is a great idea, especially for landlords who manage a large number of properties, where it can become challenging to keep track of each tenant.
In general, reminder messages should be concise, clear, and to the point, which helps set clear expectations. Here are some tips and best practices to help make the process as easy as possible for all parties.
Clear Communication from Day One
The best way to establish a positive landlord-tenant relationship is to ensure that the tenant thoroughly understands the expectations set out in the lease agreement. Explaining rent collection due dates, grace periods, and payment methods will smooth the process.
Use Multiple Reminder Channels
Not everyone is great at checking their email these days, so landlords might opt to send a rent reminder notice by text message, push notification from property management software, or even a quick phone call to check-in.
Send a Quick Thank You
Confirming receipt of rent payments and thanking tenants for paying on time is also a great way to make sure the tenant feels like a part of the rental process and not just a cog in a faceless business transaction. A quick “thank you” takes no time at all and can help build trust and a solid relationship foundation.
Sample Rent Reminder Messages
Keeping open lines of communication with your tenants is a great way to make sure they pay their rent on time. It also establishes a positive relationship that encourages tenants to stay in touch about maintenance or repair issues.
Here’s an example of a rent reminder email:
Hi [Tenant],
Just a quick reminder that your rent for next month is due on [Due Date]. Please make sure your payment is made on time to avoid any late fees. As a reminder, you can make your payment via [Option 1], [Option 2], or [Option 3].
If you have any questions or need assistance, please don’t hesitate to contact me at [Phone / Email].
Thank you,
[Landlord name]
And here’s a rent reminder text message sample:
Hi [Tenant], this is [Landlord] reminding you that rent for your unit is due on [Due Date]. Please make your payment by this date to avoid any late fees via [Option 1], [Option 2], or [Option 3]. Thanks, and have a great day!
Rent reminders through push notifications are usually even shorter than text messages and are straight to the point:
Hi [Tenant]. Rent is due on [Due Date]. Please let me know if you have any questions.
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Dealing with Frequent Late Payments
Frequent late payments from a tenant can be challenging for landlords and potentially disastrous for tenants. So, what’s the best way to handle habitually late rent payments?
Understanding the root cause of late payments is the first step in determining a course of action. If tenants are experiencing temporary financial hardships, figuring out how to navigate it together could resolve the issue quicker than expected or encourage the tenant to find other ways to pay rent on time. Meeting with the tenant to go over the lease agreement and reinforce the terms in the lease could also help the tenant understand what’s at stake for them if they continue to pay rent later than the due date or an outlined grace period. Making sure they have their own copy of the lease guarantees they have a copy to reference.
For tenants experiencing hardship and frequently paying rent late, establishing a payment plan could also help ease the burden and quickly bring the tenant back into good standing. Any plan like this should be put into writing and signed by both parties and can be kept alongside the lease agreement for easy reference.
Legal proceedings could be the next step if the frequency of late payments increases to unsustainable levels. At this point, landlords might need to begin an eviction process and should consult local laws about how best to proceed in this situation.
How TurboTenant Can Help with Rent Reminders
TurboTenant’s free landlord software provides access to a comprehensive rent collection system that sends automatic reminders, applies late fees, and sends receipts automatically. There’s zero cost to landlords, and tenants pay a small $2 ACH fee in the free plan. That fee is waived when landlords upgrade to Premium.
Then, via TurboTenant’s integration with REI Hub, our robust rental accounting system automatically inputs rent payments, tracks expenses, and compiles it all in easy-to-generate reports that make tax time easier than ever. It’s an excellent tool for landlords who want to automate as much of their processes as possible to save time and increase accuracy.
Sign up for a free TurboTenant account today, and let us be the bad guy when your tenant needs a rent payment reminder.
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By John Triplett
Are you and your property management providing reasonable accommodations for the deaf and hard of hearing to communicate effectively?
In the field of property management, effective communication is not just a courtesy—it’s a mandate under fair housing laws.
Ensuring that every individual, regardless of hearing ability, has equal access to housing information is not only ethical but also legally required.
This commitment to accessibility includes providing reasonable accommodations for the deaf and hard of hearing, a demographic that often faces significant barriers in accessing housing services. Are you and your team ensuring equal access?
How do I stay fair housing compliant?
Fair housing regulations stipulate that property managers must be equipped to communicate effectively with all prospects and residents. This inclusivity explicitly extends to individuals who are deaf or hard of hearing. When a deaf or hard-of-hearing resident requests an interpreter, this is considered a reasonable accommodation.
Interestingly, unlike other accommodation requests that require a more extensive review process, the need for an interpreter is often so apparent that it bypasses the usual procedural requirements. This streamlined approach underscores the importance of immediate and unimpeded communication.
But what if I can’t get an interpreter right away?
Despite the clear mandates, the practicalities of providing on-the-spot interpreter services can be challenging. It’s generally unrealistic to secure a sign language interpreter without prior notice. However, property managers are still obliged to facilitate communication as per fair housing standards.
Creative solutions become essential in these scenarios. Utilizing readily available tools such as whiteboards for written communication or exchanging SMS text messages can provide interim solutions that uphold the standards of accessibility and ensure that critical information is conveyed effectively and promptly.
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How do I prepare for the best-case scenario?
To truly embody the spirit of fair housing, property management teams should proactively prepare to meet the needs of deaf or hard-of-hearing individuals. This preparation involves more than just recognizing the need for accommodation; it requires active and ongoing training of staff. Role-playing scenarios can be an effective method for training, helping staff practice and prepare for real-life interactions.
Additionally, investing in services such as online, on-demand interpreters can significantly enhance a property management company’s ability to provide immediate and effective communication solutions. These investments not only comply with legal requirements but also demonstrate a genuine commitment to inclusivity.
Are you ensuring equal access?
The provision of translation services for the deaf and hard of hearing is a clear example of how property management can and should function under the guiding principles of fair housing.
Property management professionals can ensure that all residents receive the high standard of service they deserve by understanding the legal imperatives, embracing creative problem-solving, and investing in thorough preparation. Ultimately, these efforts reflect a broader commitment to equality and accessibility, pillars upon which the integrity of the property management industry rests.
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Listen On:
As landlords, it’s essential to balance protecting your property and tenants with complying with anti-discrimination laws. This episode explores the intricacies of how the Fair Housing Act intersects with tenant screening practices, focusing on HUD’s 2016 guidance regarding criminal records.
We explain why a blanket “no criminal history” policy can lead to unintended discrimination, particularly under the concept of disparate impact. You will learn the importance of conducting individualized assessments that take into account the nature and severity of the crime, how long ago it occurred, and any evidence of rehabilitation. We also break down state-specific laws, such as “ban the box” ordinances that restrict when and how landlords can inquire about criminal records.
Of course, we are providing practical advice on documenting decisions, staying compliant with evolving state and local laws, and common pitfalls to avoid, like relying on arrest records or treating applicants inconsistently.
If you’re a landlord navigating tenant screening, this episode will equip you with the knowledge to create a fair, legally compliant, and effective criminal background check policy. You’ll want to tune in for actionable insights and avoid legal risks while protecting your investment.
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👉 Episode 6: Creating Standard Operating Procedures for Your Business
👉 Episode 49: Analyzing Credit Reports for Tenant Selection
👉 Fair Housing Information: US Dept. of Housing and Urban Development. This is your primary source for federal fair housing laws and regulations, including HUD’s 2016 guidance on the use of criminal background checks.
👉 The Fair Housing Act: This page from the Department of Justice outlines the full text of the Fair Housing Act and includes information on the enforcement of fair housing laws.
👉 Learn more about your local landlord-tenant laws: Look up “YOUR STATE/COUNTY”+ Local Housing Authority.
👉Get certified in Fair Housing Laws: The Fair Housing Institute. Use code YLR2024 for 15% Off any course purchase.
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By Daniel Sharabi
There is no question that Ratio Utility Billing Systems are a benefit to housing providers. Regardless, conversations around RUBS among uninformed housing providers can lead to confusion and misconceptions regarding Ratio Utility Billing Systems.
While more traditional methods, such as flat fees or equal splits, offer simplicity, they lack fairness and precision. Enter Ratio Utility Billing Systems (RUBS), an ideal solution for a fair and streamlined billing process. Less-than-seasoned housing providers may share a laundry list of negatives they’ve heard regarding RUBS. Check out these common misconceptions of housing providers surrounding Ratio Utility Billing Systems that we are here to debunk.
MYTH #1: RESIDENTS WILL THINK I’M BEING UNFAIR
A concern among housing providers is that RUBS might not be perfectly fair. Residents who conserve utilities like water might end up subsidizing those who use more. This can lead to frustration and disputes. Explaining the logic behind the formula can be an uphill battle in the eyes of a housing provider.
Residents in well-maintained units with newer, more efficient dishwashers and low-flow showerheads might feel they’re subsidizing those who use more water, creating tension between residents and potentially leading to finger pointing and resentment toward the housing provider.
MYTH BUSTED
The right RUBS system can factor in square footage, occupancy and more so that billing is both
transparent and fair. Residents should be able to see how their bills are calculated and why the bill is what it is. Housing providers can also offer a “goodwill deduction” for any reason, including for a resident who has concerns about subsidizing other residents unfairly.
MYTH #2: COMPLIANCE WILL BE A HEADACHE
RUBS regulations can vary by location. Housing providers need to be sure they are following all the rules to avoid legal issues and many don’t want to take on that headache. Maintaining accurate records of occupancy changes, appliance upgrades, and historical usage data is crucial for a fair RUBS system. Housing providers may fear finding themselves dealing with the burden of meticulous record keeping to avoid legal trouble.
MYTH BUSTED
The right RUBS platform has compliance assistance built in. “At Livable, we provide a lease addendum for our housing providers so they are covered legally,” Sharabi explains. “Of course, housing providers need to make sure that they are in compliance with all local ordinances and regulations, but the lease addendum goes a long way toward achieving that.”
“We do always recommend that you check with your attorney before implementing RUBS for your residents, but our system is designed to aid with compliance for housing providers.”
“Livable Pro is so easy you can do it yourself,” Sharabi says. “We designed a user-friendly interface that makes it simple to set up RUBS. Just plug in the information as asked and you’re all set!”
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MYTH #3: IMPLEMENTING RUBS IS MORE TROUBLE THAN IT’S WORTH
Setting up RUBS properly requires choosing a fair formula, clearly communicating it to residents, and handling disputes fairly. This can take time and effort and many housing providers are reluctant to try.
MYTH BUSTED
“Livable Pro is so easy you can do it yourself,” Sharabi says. “We designed a user-friendly
interface that makes it simple to set up RUBS. Just plug in the information as asked and you’re all set!”
MYTH #4: RUBS IS ONLY FOR BIG COMPLEXES OR HIGH-RISES, NOT SMALL OWNERS LIKE ME
Some housing providers may believe that ratio utility billing only works or makes financial sense if you have a lot of units to bill.
MYTH BUSTED
“We created Livable Pro for the independent rental owner,” says Dan Sharabi, CEO of Livable. “Livable has never had unit minimums or a required commitment. We want housing providers to be able to hold residents accountable for their use, driving conservation, whether they have one rental unit or 1,000.”
CONCLUSION
Even with well-defined guidelines, disputes about RUBS bills may occur. Housing providers often fear being caught in the middle, mediating between residents who feel unfairly charged and the need to maintain a fair system for everyone. Housing providers considering RUBS should be prepared to navigate these potential resident concerns and ensure they have fully accessed the resources RUBS provides to effectively implement and manage the system. The reality is that the benefits of RUBS far outweigh the effort required for it to revolutionize your
billing. Ratio Utility Billing is a cost-effective way to allocate utilities, save you money and practice good conservation. Housing providers should explore the benefits of RUBS for themselves before listening to outside misconceptions.
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Provided by the Fair Housing Institute
An upsurge of tenants requesting reasonable accommodation due to allergies can create a challenges for rental housing providers.
There has been a noticeable upsurge of residents requesting reasonable accommodations due to allergies. This is likely due to an increase in people suffering from both chemical and environmental sensitivities. A resident requesting accommodation due to allergies can create a challenging situation for the housing provider. This raises two questions:
- Are properties required to offer reasonable accommodations for allergies?
- If yes, what are some best practices to follow?
What Criteria Do Allergies Need to Meet?
In order to determine if an allergy meets the criteria for a reasonable accommodation, we must first determine if the allergy qualifies as a disability. The Fair Housing Act defines a disability as a mental or physical impairment that substantially limits one or more major life activities.
For most of us with allergies, while the reactions may be uncomfortable, it is probably reasonable to state that those reactions do not “substantially limit one or more major life activity,” thereby rising to the level of a disability.
To help you determine whether the allergies meet the criteria, you need to have reasonable-accommodation request and verification forms that can be filled out by a third-party verifier. It is okay for your reasonable-accommodation forms to highlight the difference between a disability and an impairment. Your forms can also include a section for the verifier to provide pertinent information regarding allergy testing to determine what the tenant is allergic to. It is important to note that only a third-party verifier can make the determination if the allergy is in fact a disability and what accommodations need to be met.
If the allergy is not a disability, then management is not legally required to accommodate the resident. On the other hand, if the allergy results in the resident’s throat closing and hives, these symptoms would probably be considered a fairly substantial limitation to major life activities and would meet the criteria for a reasonable accommodation. Now you are faced with how, and to what extent, modifications can be offered. This can be especially difficult in a multifamily setting.
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Creating a Reasonable Accommodation Plan
Once a reasonable-accommodation request has been verified, it is time to create a plan that addresses the needs of the resident. The housing provider wants to provide reasonable accommodations, while also not limiting the use of chemicals and products by other residents and staff, particularly those that are critical to building maintenance. This is where open communication to discuss alternatives is critical between the resident, the property owner or manager, and the verifier. HUD and the courts now view the “interactive process” as an essential step by housing providers during the reasonable-accommodation process, whether the property plans to deny or offer the resident an alternative accommodation. Documenting the plan is also a critical best practice and ensures that everyone clearly understands the plan.
Fair Housing Training Is a Must
Dealing with reasonable-accommodation requests can be quite dynamic. Regular Fair Housing training is a must for property-management professionals. Property-management professionals are best served when regularly trained to identify the issues and then discuss them as a team. If you are not clear on the legal requirements, reach out to a qualified fair housing attorney. The more you know, the better you will be when dealing with complex reasonable accommodation requests.
Use code YLR2024 for 15% OFF any course purchase from the Fair Housing Institute.
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By Ryan Squires
While most of us are used to paying rent on a standard schedule due on the 1st of the month, more landlords have recently offered flexible options to suit tenants’ needs. A flexible, or partial rent payment, allows tenants to pay their rent in a way that more closely matches their life or work situation.
In this article, we’ll cover just about everything there is to know about flexible rent payments, from what they are to how to set them up.
Key Insights
- Landlords can set up flexible rent payments on any cadence a landlord, and tenant agrees to. Depending on the specific arrangement, tenants can make payments bi-weekly, weekly, or semimonthly (1st and 15th of the month)
- Offering partial rent payments to tenants can create goodwill between landlords and tenants by providing a customizable arrangement. It can attract new tenants, especially in places with a high number of gig workers or freelancers.
- Many flexible payment apps are on the market, but TurboTenant makes collecting rent payments, partial or not, easy, and the service is free for landlords.
Understanding Flexible Rent Payments
An increasing number of landlords have offered flexible rent payments in recent years, and many tenants find the arrangement more manageable due to increasing housing costs and non-traditional work schedules.
Landlords could arrange a few different types of flexible rent payment options depending on the tenant’s situation. It’s important for both landlords and tenants that the specific payment schedule is laid out clearly in the lease agreement to ensure no misunderstandings or miscommunications.
Typically, a partial rent payment arrangement would look like this:
- Weekly or bi-weekly payments: Smaller, more frequent installments for rent payments can be more manageable for tenants who find budgeting one lump sum every month challenging.
- Split payments or semimonthly: Rent could be split into two or more monthly payments. For instance, tenants could pay half their rent on the 1st and the other half on the 15th.
- Custom schedule: If a tenant’s paycheck follows a non-traditional payment schedule, a custom schedule might be arranged where payments are sent in lump sums at suitable intervals for both parties.
- Pay-as-you-go: The least common flexible rent payment scenario is when tenants only pay for the time they spend using the property.
Benefits of Flexible Rent Payments
There are several ways flexible rent payments can benefit tenants and landlords.
Tenants
A flexible rent payment plan can help tenants who receive bi-weekly or irregular paychecks. Instead of paying one lump sum every month, portioning out rent paid over the month can alleviate a financial burden and make it less likely that they’ll miss a payment or incur late fees.
Many tenants appreciate this flexibility, which can lead to high satisfaction and retention levels.
Landlords
Partial rent payments adhering to a precise schedule can help reduce the risk of late or missed rent payments, allowing landlords to anticipate cash flow more fully and accurately. A consistent cash flow over the month can help cover costs that crop up suddenly.
Offering a flexible rent payment schedule can also attract a broader range of tenants, especially in areas with a high concentration of gig workers or freelancers paid on non-traditional schedules.
Potential Drawbacks of Flexible Rent Payments
While there’s a lot to be said for a flexible rent payment scenario, it may not be ideal for everyone.
For landlords with a significant number of units, allowing many tenants to pay rent on a flexible schedule can become unwieldy and complicated to track, especially when tenants are on different flexible payment schedules.
Regardless of the number of units, tracking different payment timings can become an administrative challenge, forcing landlords to devote valuable time to bookkeeping and cash flow management compared to a standard rent arrangement.
Additionally, while no federal laws prohibit flexible rent payments, there could be restrictions depending on where the rental property is located or if a governmental housing program subsidizes the property.
For instance, if a rental unit is governed under a Homeowners’ Association (HOA), the HOA guidelines might prohibit non-traditional rent payment schedules.
Landlords should ensure that local guidelines allow for flexible rent payments if there’s tenant interest.
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Setting Up Partial Rent Payments: A Guide for Landlords
Landlords interested in setting up flexible tenant rent payments should evaluate the financial impact before jumping in. Understanding the cash flow rate against weekly or monthly expenses is crucial to satisfying obligations like mortgages, property taxes, and maintenance costs.
Once the financial implications are fully understood, landlords must determine how comfortable they are collecting partial rent payments and by which frequency. Will payment schedules be customized per tenant? Is it better to establish a weekly or bi-monthly cadence? Is it best to use a payment processor to handle rent?
If a landlord feels comfortable with partial payments and can adequately track and account for them, they should make any necessary adjustments to their lease agreements. The language explaining the flexible rent schedule should be clear and concise, and the timing, method of payment, and penalties for missed or late payments should be thoroughly outlined.
Or should a landlord filter everything into a flexible rent payment app, like TurboTenant’s mobile app, to streamline the process and keep all rent and property-related expenses contained in one rental accounting software?
For landlords wishing to switch existing tenants to a flexible plan, addendums can be signed by both parties and added to the lease for all future payments.
Using Flexible Rent Payments: A Guide for Tenants
For tenants who find themselves in or are looking to explore a partial rent payment agreement, it’s crucial to fully understand the terms of the arrangement as outlined in the lease.
If this is a new option tenants are exploring with their landlord, taking stock of your financial situation and paycheck schedule will help to dictate how often it makes sense to make a partial rent payment. Communicate with your landlord about the plan and discuss options that make the most sense for all parties. Landlords are often willing to work with their tenants to make sure that rent is paid on time.
Additionally, tenants can encourage their landlords to use a property management app like TurboTenant to help them track and schedule all upcoming rent payments automatically.
While we’re all familiar with paying rent on the 1st of every month, a bi-monthly or other partial payment schedule could quickly become more complicated. However, using a dedicated rental app makes it easy to set up recurring payments without regularly checking in and updating payment options.
How TurboTenant Supports Flex Rent Payments
TurboTenant is a fully featured landlord software platform designed to make the rental experience easy and painless for landlords and tenants across the United States. While the thought of implementing a potentially complicated partial rent payment scenario might seem overwhelming, TurboTenant streamlines the rent collection process to make it simple to set up and even easier to implement.
Within the platform, landlords can set up a payment schedule for their tenants and send automated reminders each month before the rent is due.
Further, TurboTenant offers granular control over partial rent payments for flexible rent schedules that occur in lump sums throughout the month. All financial information is tracked per unit and tenant to make it easy for landlords to quickly determine who has paid, what rent might be outstanding, and when to expect the next payment.
By offering mobile apps for landlords and tenants, TurboTenant makes communicating directly within the app simple, eliminating missed text messages and phone calls, and creating a paper trail of communication should problems arise.
Regardless of your property management needs, TurboTenant is here to assist you every step of the way. So, sign up for a free account today to see how TurboTenant can make your investment easy and profitable.
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October 6-12, 2024, is Fire Prevention Week. Since we have many firefighters in our family who are constantly reminding us of what we need to be on top of regarding fire safety in our rental properties, we thought we would do a shorty episode to go over fire safety tips.
In this episode, we are focusing on who is responsible for what tasks. So, we are discussing all the fire safety responsibilities that the landlord must take care of and then jumping over to the other side and discussing what the tenants must handle.
And newsflash, even if the tenant has some responsibility in making sure your rentals remain safe, it is up to you to manage that they are following through and doing those tasks. We are also including what landlords need to do to mitigate the risks of tenants not following through.
As this episode runs much shorter than our usual episodes, I hope you can make the time check this important episode out.
LINKS
👉 Episode 29: Rental Property Fire Safety Essentials, Pt 1
👉 Episode 24: Rental Property Fire Safety Essentials, Pt 2
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By Emily Koelsch
California passed two bills in 2024 that impact Landlords and Tenants. We’ve updated our site with the necessary changes. To help Landlords comply with these new requirements, here’s a summary of the 2024 changes to California Landlord-Tenant laws.
Assembly Bill 12 – Changes to Security Deposit Regulations
Assembly Bill 12 went into effect on July 1, 2024. It limits security deposits to one month’s rent for furnished and unfurnished rental units. This is a significant change from the previous limit of 2 months’ rent for unfurnished rental units and 3 months’ rent for furnished rental units.
Bill 12 provides a notable exemption for “Small Landlords.” A “Small Landlord” is defined as a Landlord who:
- Owns no more than 2 residential rental properties that include no more than 4 dwelling units; and
- Holds the properties as a natural person, an LLC where all members are natural persons, or as a family trust.
Landlords who meet this qualification may charge up to 2 months’ rent for the security deposit.
Any Landlord who qualifies for this exemption and charges 2 months’ rent should provide Tenants with this Exemption Disclosure documenting that they fall into the category of Small Landlord.
California Senate Bill 567 – Changes to No-Fault Evictions
California Bill 567 went into on April 1, 2024. Here are the notable impacts it has for Landlords:
No-Fault Just Cause Evictions
Bill 567 changes the requirements for terminating a Tenancy due to the Landlord moving in and substantial remodels.
Under California Civil Code § 1946.2, Landlords may not terminate a Tenancy if Tenants have been in a property for at least 12 months without “just cause.” Landlords may terminate a Tenancy for no-fault just cause if:
- The Landlord or the Landlord’s spouse, domestic partner, children, grandchildren, parents, and/or grandparents intend to occupy the property;
- The Landlord plans to withdraw the property from the rental market;
- A government order requiring the Landlord to remove Tenants from the property; or
- Intent to demolish or substantially remodel the property.
Landlord or Family Member Moving Into the Rental Unit
As of April 1, 2024, Landlords may only terminate a Tenancy for the owner moving in if:
- The individual moving in is the owner or the owner’s spouse, domestic partner, child, grandchild, parent, or grandparent.
- The family member moves in within 90 days of the end of the Tenancy.
- The family member resides in the rental unit for at least 12 months as a primary residence.
Landlords who meet these requirements must provide Tenants with a 60-day Notice to Vacate that includes the name and familial relationship of the person moving into the property.
Landlords who violate this requirement can be subject to monetary damages including treble damages and punitive damages.
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Substantial Renovations
Bill 567 also sets out new requirements for Landlords who terminate a Tenancy for substantial renovations.
As of April 1, 2024, to terminate a Tenancy for substantial renovations, Landlords must provide Tenants with a Notice to Vacate that:
- Includes details about the work being completed, including when it’s starting and how long it will last;
- Attaches all applicable permits;
- Notifies the Tenants of their right to reoccupy the property if the work isn’t started or completed; and
- Advises Tenants that they should give the owner their contact information if they’re interested in re-occupying the property after renovations.
Government authorities can seek injunctive relief and monetary damages against Landlords who violate these provisions.
Limits on Rent Increases
Bill 567 also states that the current limits on rent increases will be in effect until January 1, 2030. The current statewide rent control limits rent increases in a 12-month period to not more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower.
Owners who violate the rent control laws are liable to Tenants for damages up to three times the amount that rent payments exceed these limitations.
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By David Pickron
When it comes time to perform a move-out inspection, it’s critical to engage your four senses, especially smells, to ensure that you don’t miss something that could end up costing you thousands down the line.
“Oh, I had a friend bring her little dog over maybe once or twice while I lived there.” That’s a direct quote from a recently moved-out tenant. Funny thing is, I went to the property the day after she moved out and all of the windows were open … in August … in Phoenix.
As I walked in, I caught the overwhelming odor of what seemed skunky, but I just could not put my finger on it. No wonder she wanted the windows open to air out the place and somehow save her security deposit.
When I asked her if she had been smoking or vaping marijuana, she adamantly denied it. “Did you ever have any pets in the property?” I asked. Refer to the first sentence of this article to see her answer.
I shut the property up and a few days later returned to start the rehab for my next tenants. Sure enough, when I opened the property that had been sealed shut for just a few days, the smell of urine overwhelmed me.
Turns out it was a combination of the urine smell and the smells from a nearby dairy that made me think it was initially marijuana. And just this week I met the carpet guys at the property and to no one’s surprise, when the carpets were pulled up, there were urine stains over every square inch of the carpet and pad. That little dog must have had some kind of bladder for just being there once or twice.
Now before you think I am anti-pet, I’m not. I have three adult Bernedoodles — Wellington, Winston, and Aspen — that bring me pure joy. And I’m not anti-tenant either, as I have multiple short-, mid-, and long-term rental properties that produce a great income and are valued assets. My challenge here lies in the fact that tenants will go to great lengths to avoid any extra expense that comes after they vacate a property.
When it comes time to perform a move-out inspection, it’s critical to engage your senses to ensure that you don’t miss something that could end up costing you thousands down the line. Here’s what I recommend:
No. 1 – SIGHT
If you have copies of photos from the initial move-in inspection, compare those with the current condition of the property. Things like holes in walls are obvious, but do you remember the paint color that was in the property at time of move-in? Or what appliances were there when the tenants took possession? (Was that room really pink with stars on the ceiling?)
If you own multiple properties or if a tenant has been in a home a long time, you may not remember exactly what was in place. I’ve seen tenants break my nicer appliances or fixtures and replace them with cheap ones, hoping I wouldn’t notice. Always, always take pictures of the property before a tenant takes possession so you don’t have to rely on memory.
No. 2 – SMELL
As my story above illustrates, the nose always knows. What I didn’t tell you is a week prior to the tenants moving out, I visited the property and it smelled great. The tenant asked specifically when I would be arriving and dolled the place up with air fresheners.
Quite literally, if it doesn’t pass the smell test, something is likely wrong at the property. To get the best results, turn off the HVAC system for a couple of days and seal the house up. Smells such as cigarette or marijuana smoke, mildew, or pet urine will become more pronounced once the air stops moving.
INSPECTIONS ARE IMPORTANT!
How else do you know if your tenant is following lease terms and if any unreported maintenance is needed?
Our single-family home inspection checklist is very thorough and includes space for notations if an area is satisfactory, needs attention, or is damaged.
We cover all areas of your rental unit, up to four bedrooms and four bathrooms: Interior (up to second story), exterior, garage, basement, attic, etc.
It also includes inspections of appliances, smoke/carbon detectors, fire extinguishers, air filters, and HVAC.
Don’t forget places to complete the tenant information and places for them to sign off on the inspection results!
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No. 3 – SOUND
When I walk into a vacated home, I listen for all types of sounds. Is there an unreported leak somewhere that I can hear, as in the toilet? When the HVAC system turns on, does it sound right? Maybe I should inspect the filter to see why the A/C is struggling. Same goes for dishwashers and washers and dryers. Run all the faucets in the home and listen for any issues that might be related to the plumbing.
No. 4 – TOUCH
During the move-out inspection, I like to feel for things like drywall repairs the homeowner may have completed. Open the cupboards and make sure they glide smoothly. A lot of homes now have stone countertops, and depending on the stone, it may visually hide gouges or cracks caused by homeowner behavior. I also feel with my feet as I walk the property, as unreported water leaks can lead to warped or loose floors that I may not see but can definitely feel.
I teach new landlords all the time about the importance of finding the right tenant to be their “business partner” in maintaining and caring for a property. But even the best tenants can and do create problems for us as housing providers when they move out of our properties. Little things are expected, but when it comes to professionally and effectively managing our portfolios, we have to use everything in our arsenals to protect our assets. Using your senses to sense scents (and other issues) just makes sense.
Speaking of making sense, require a security deposit big enough to cover carpet replacement, as that is usually the biggest replacement item that holds those offending odors.
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