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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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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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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Our services include tenant screening, state-specific lease agreements with ezSign, over 500 landlord forms, and the newly launched rent payments feature. ezLandlordForms is among the select few companies that excel in all three critical areas of property management. With a focus on innovation and customer satisfaction, we continue to lead the industry in delivering high-quality, user-friendly solutions.
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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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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…
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.
A landlords one stop shop for tenant management…for FREE
You can’t beat free and the only time you pay is if you want to purchase a lease or have expedited rent deposits. Most everything else costs zip, zero, zilch.
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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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 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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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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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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