Written by Emily Koelsch
Bad rental outcomes are something new and seasoned investors dread. When it comes to bad outcomes, evictions are a worst-case scenario for most Landlords. Evictions are expensive, time-consuming, and stressful.
For most owners and property managers, they’re a last resort after missed rent payments, ongoing Lease violations, or illegal or dangerous activity on the property.
The bad news is that evictions are more expensive than most Landlords realize. But, the good news is that the right systems can dramatically reduce the risk of evictions and other bad rental outcomes.
To help you avoid this Landlord nightmare, here’s an in-depth look at how costly evictions are and some tangible ways to reduce the risk of having to evict a Tenant.
Required Steps in the Eviction Process
To appreciate how costly evictions are, it’s helpful to understand the required steps in the eviction process. While specific requirements vary from state to state, the general process for filing an eviction includes:
- Providing your Tenant with the required notice. Most evictions are the result of either nonpayment of rent or a Lease violation. Before filing an eviction, Landlords must issue a Notice to Quit that states the reason the notice is being sent and gives the Tenant a specific amount of time to either pay rent, cure the Lease violation, or vacate the property. The notice period varies from state to state but is usually between 3 days and 14 days.
- If the Tenant fails to pay rent, cure the Lease violation, or vacate the property after the required notice period, the next step is filing an Eviction Complaint with the local court. In addition to filing the Complaint, you must service the Tenant with the Complaint and a Summons.
- The Tenant can either answer the Complaint or wait to respond at the hearing.
- After a scheduled hearing, the judge will rule in favor of either the Landlord or Tenant. If the judge rules in favor of the Landlord, you’ll receive a Court Order or Warrant of Eviction stating that the Tenant has to vacate the property by a specific date.
- If the Tenant does not comply with this Court Order, you can ask a local law enforcement officer to remove the Tenant and their possessions from your property.
- Once the Tenant is removed from the property, the Landlord must change the locks, remove all personal property of the tenant, make necessary repairs, and deep-clean the property. After the property is cleaned and back in good condition, the Landlord can list it and begin searching for a new Tenant.
A Breakdown of Eviction Costs for Landlords
The entire eviction process usually takes around 2-3 months and costs landlords an average of around $3,500. That said, the cost of evictions can range from around $2,000 to $10,000.
Here’s a breakdown of expenses Landlords face during a standard eviction:
Legal Fees
We always recommend that Landlords hire an experienced local attorney to handle their eviction. While this can be expensive, it’s worth the cost to ensure that your eviction is handled correctly, that you’re successful, and that you comply with all laws.
The legal fees for an uncontested eviction generally start around $500. However, if your case is contested, these fees can easily be around $1,000-$2,000.
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Court and Filing Costs
Every state has fees for filing an Eviction Complaint. These range from $15 to $150. In addition, there are court fees, which are usually around $50. Landlords also must pay a service fee to have the Summons served on the Tenant, which ranges from $30 to $150.
If law enforcement is required to remove the Tenant after a Warrant of Eviction is issued, this is an additional fee that usually ranges from $50 to $500.
Unpaid Rent
Past due rent is the most common cause of eviction proceedings. Whatever the reason for your eviction, likely, you won’t receive any rent payments during the eviction process. Eviction proceedings generally take around 2 to 3 months.
To allow time for all steps of the eviction process plus time to prepare the property for a new Tenant, Landlord should anticipate a minimum of three months with no rent payments. Using the average rental price in the United States of $1,554, that would be a loss of around $4,662 for the average Landlord.
Property Repairs and Turnover Costs
Once the Tenant is removed from the property, the Landlord has to:
- Change the locks ($150)
- Make necessary repairs, which can range from a couple of hundred dollars to thousands of dollars depending on the condition of the property
- Deep clean the property ($200 – $500)
In some states, Landlords are also required to store any personal possessions left behind after an eviction. This means additional work and fees for Landlords.
It’s worth noting that, in addition to the many tangible expenses of evictions, they are time-consuming and stressful for Landlords to deal with. Evictions mean lots of additional work, hours, and nuisances for Landlords.
Be Proactive About Reducing the Risk of Evictions
Given how difficult and expensive evictions are, real estate investors should be proactive about preventing evictions. Fortunately, the right property management systems can drastically reduce the risk of bad rental outcomes.
Here are three steps to help you avoid evictions:
- Always screen tenants. Effective tenant screening ensures that you only rent to qualified applicants who will pay rent on time and take care of your property. Screening all applicants and only renting to qualified applicants is the best way to prevent evictions.
- Use a detailed Lease Agreement that provides clear guidance on rental policies, property rules, and late fees. At move-in, go over the Lease with your new Tenants and ensure they understand all Lease terms.
- Be consistent about enforcing the Lease and proactive if a Tenant violates the Lease. If you’re consistent about enforcing Lease terms, including late fees, you reduce the risk of Tenants falling behind on rent. If Tenants do fall behind on rent, be proactive about addressing it. If your Tenant is communicating with you, try to work with them to come up with a plan to get them back on track. If your Tenant is not willing to work with you, consider a Cash for Keys Agreement or move forward with a Notice to Quit for Nonpayment. The longer you wait, the more costly and difficult the process becomes.
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By Scot Aubrey
When you hear the word “rot” in relation to real estate, all sorts of bad visions and horror stories immediately come to mind.
In fact, that word often translates in our minds to money, as in, how much is it going to cost me to repair whatever is rotting. Allow me to introduce a new way of looking at this word in a much better way, one that when done right, can actually add to your bank account rather than being a drain on it.
While every investor is intimately familiar with ROI, return on investment, which carries a great weight when evaluating a property, many may disregard an equally crucial factor, and that is ROT, or return on time.
For purposes of this article, we will examine return on time to help you become an even more successful and satisfied investor.
Gut Reaction
If you will, please take the next thirty seconds and stop reading.
I want you to think about your portfolio by specific address if you can and think of or say aloud the address of one of your investments.
How do you feel when you hear that address? Many of you probably have that “perfect” property that houses great tenants who pay on time and even manage some of the most common maintenance items out of their own pocket. This property brings a smile to your face and good feelings, knowing that it is an asset that provides a great return on both your time and your investment.
Others of you had a physical, maybe even violent reaction when you thought of a property that is less than your ideal. Tenants that pay late consistently, that call you for even the simplest repairs, which cause friction with their neighbors. You know the one because it takes up an inordinate amount of your time and more than once you have considered offloading it, and its attendant problems, out of your portfolio and your life.
The Analysis
While return on time is an often-overlooked real estate investor metric, it needs to play a critical role in your decision-making, particularly when time is limited.
After all, time is money and every second you spend managing a property with a low ROT can feel like a total waste because you are sacrificing time that could be spent with family, on a hobby, vacationing or finding your next great property.
While there is no universal formula for ROT, you can begin by evaluating the benefits, satisfaction, or personal wealth derived from the time spent on a specific property. Time is finite, and therefore, optimizing how time is spent is just as important as financial investments.
ROT focuses on the time and the intangible returns that come from using time effectively. ROT is based on the principle that time, like money, is a limited resource. Time cannot be bought back once spent; therefore, ROT considers the opportunity cost of how time is spent.
Is the time spent working on a project worth the long-term value or the personal satisfaction gained from it? That is the key question in any analysis you perform with ROT in mind.
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A Balanced Approach
Decision making focused solely on ROT could result in the neglect of profitable opportunities if that is the only metric considered.
Every investment you approach has to include a thorough look at the financial AND time aspects required to create a positive return.
For example, let’s say you found an underpriced property in a great neighborhood, but the home needs an extensive remodel to make it appealing to the majority of the market.
You also found a home in the same neighborhood that is turn-key ready but costs 75% more than the fixer upper. ROI and ROT would be evaluated when deciding between these two projects—one that offers a higher ROI but requires more time, and another that is less lucrative but can be completed more quickly. Only you can determine how much each factor weighs into your decision-making process, but both must be a major component of your final determination.
Conclusion
While both ROI and ROT are critical for evaluating decision-making in both personal and professional contexts, they serve different purposes. A lot of other factors will influence your investment path as well.
Is this a hobby or profession? What is your age and how many years left do you have to grow your portfolio? What kind of financial backing do you have if things go sideways?
These questions, and so many others can help you determine how and when to use ROT as a measurement in your present and future investing. And if you are still feeling heartburn from the earlier exercise where you thought about your portfolio, be bold enough to cut out the rot and move on to an investment that brings you both joy and financial freedom.
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By Beau Thoutt
Whenever tax season rolls around—bringing with it all those dreaded forms and reports—many landlords enlist the help of a real estate tax accountant. However, if you’re interested in financial guidance, investment advice, or suggestions on structuring your business, you may want to hire a CPA instead.
A CPA, or certified public accountant, can take on various responsibilities depending on the situation. For example, a CPA might help you minimize your tax liability or restructure your real estate business accounting to maximize your investments.
While tools like TurboTenant or rental accounting software can assist with some of these tasks, hiring a CPA offers certain advantages for landlords who need a broader range of services.
To help you decide whether or not it makes sense to hire a real estate CPA, we’ve put together a guide that covers the basics of what CPAs do, the key benefits of working with them, and how to find the right fit according to your portfolio.
Read on to learn everything you need to know about working with CPAs for real estate.
What is a real estate CPA?
CPAs assist landlords with the many financial and accounting duties of managing rental properties. Depending on the landlord’s needs, a CPA might include handling taxes, advising on purchases, or resolving accounting issues.
Qualified real estate CPAs are highly valuable to landlords and must complete rigorous state-mandated education to become fully licensed. They must also take ongoing courses to stay current on tax codes and other legal changes that affect rental property ownership.
In short, real estate CPAs can take on a wide range of responsibilities. They can represent landlords and property investors before the IRS in the event of an audit. Many also advise on financial decisions beyond tax season, such as investment planning, capital gains strategies, rent collection, and more.
Differences between CPAs and real estate tax accountants
Though the layman often views real estate CPAs and property tax accountants as interchangeable, the two roles differ in key ways.
While property accountants typically receive some form of certification, CPAs hold higher professional designations. As such, they must complete continuing education to stay current on tax laws and code changes. And while most real estate tax accountants only work during tax season, CPAs typically work year-round and provide a wider range of services.
Real estate tax accountants generally have a more limited role in supporting landlords. As a result, many landlords choose to hire a CPA for more in-depth guidance and ongoing support throughout the year.
The Benefits of Hiring a Real Estate CPA
Landlords can use TurboTenant’s free property management software to assist with accounting, lease administration, and online rent collection. However, hiring a real estate CPA may benefit those who need more specialized, professional guidance in managing the financial side of their portfolio.
Tax Expertise
Because CPAs need to pursue continuing education, a real estate CPA will be well-versed in all relevant real estate tax laws. This knowledge helps landlords stay on top of deadlines and other important details, ensuring compliance with changing codes and regulations.
Efficient Business Structuring
CPAs do more than manage taxes. They can help landlords structure their businesses more efficiently, offering insight into whether operating as an LLC, an S corporation, or a sole proprietorship is better. These decisions can lead to significant long-term savings.
Downsizing Tax Liability
Though operating a rental property carries significant tax benefits, you need to know how to use them to your advantage to maximize savings during tax season. CPAs can help reduce your tax liability and navigate complex processes like 1031 exchanges, maximizing your deductions, and capitalizing on other tax advantages to lower what you owe.
Maximize Investment Returns
Real estate ownership of any kind is an investment, and a CPA can help you get the most out of that investment, offering advice to help you maximize profits from your rental property. Some often include guidance on expanding their clients’ rental portfolio, while other investment property tax accountants provide insights on market trends and creative financing options.
Professional Networking Opportunities
Any CPA worth their salt typically works with a broad network of other professionals in the real estate industry, such as real estate agents and attorneys. Hiring a real estate CPA makes it easier to connect with other trusted, qualified experts when you need help with another part of managing your rental portfolio.
Long-term Financial Guidance
As helpful as real estate tax accountants may be, CPAs typically assist landlords with many aspects of managing their rental portfolio beyond taxes. So, if changes or unexpected issues arise, a CPA can help the landlord navigate anything that might impact their portfolio or real estate business.
Detailed Record Keeping
As a landlord, you always have a lot on your mind, and the last thing you want to do is spend your free time juggling receipts and records.
As professional landlord tax accountants, CPAs help clients maintain thorough, detailed records of all financial aspects of their business, which saves landlords valuable time and provides peace of mind if unexpected issues arise, such as audits.
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Do you need to hire a real estate CPA?
As valuable as working with a real estate CPA can be, it’s natural to wonder whether you truly need one. After all, CPAs don’t offer their services for free, and hiring a property investment accountant can be costly.
You can use TurboTenant’s easy-to-navigate rental property accounting software to handle some of the tasks a CPA would perform.
However, landlords who want the more human aspects of working with a CPA, such as personalized investment advice or qualified IRS representation, may still prefer to hire an accountant for property owners.
CPAs can be especially helpful for landlords dealing with complex tax or business situations, such as purchasing real estate through a trust or buying property in a foreign country. Landlords who find accounting overwhelming may also want to work with a CPA to reduce the stress of record-keeping and avoid potential audits.
Ultimately, you’ll need to decide whether hiring a real estate CPA is worthwhile or using real estate accounting software like TurboTenant or REI Hub can get the job done.
How to Hire a Real Estate CPA
Ideally, you know someone who already works with a CPA and can rely on word-of-mouth referrals to find the right fit.
If you’re starting from scratch, a simple Google search should be enough to get going. Just be sure to look for reviews and other references that speak to a CPA’s expertise.
Beyond reviewing a CPA’s track record, you’ll need to consider several other key factors during your search. Choosing the right CPA depends largely on what you hope to gain from the relationship, so keep these concerns in mind as you decide.
Billing and Fees
First and foremost, you’ll need to make sure the CPA you choose fits within your budget. When speaking with a potential CPA, ask how much they charge, when, and if there are any bonuses or additional fees that may apply in certain situations.
Some CPAs charge flat rates, others bill by the hour, and some add fees for more complex services. Understanding all aspects of their pricing structure is crucial before moving forward.
Licensing and Specializations
As mentioned, CPAs must complete state-mandated education and stay current on continuing education requirements to remain licensed. However, some CPAs hold additional licenses or certifications, which can be helpful for landlords who need more specialized services.
For example, a CPA might also have a real estate license, which is useful for those seeking property investment advice. Some CPAs may focus on residential real estate, while others specialize in commercial properties. Understanding these specializations can make a big difference in finding the right CPA for your needs.
Tax Planning Services
When hiring a CPA, landlords should determine whether their services include tax planning and tax return preparation. Though the two may sound similar, tax planning is a longer-term process that takes place throughout the year and often requires more involvement from the landlord and the CPA.
Landlords should also ask who at the CPA’s office will be responsible for filing the taxes. CPAs don’t always handle the entire process themselves, so it’s essential to confirm that the person preparing and submitting the return is competent, experienced, and properly supervised.
Approach to Investing
Like all investors, some CPAs take an aggressive approach to growing their clients’ real estate businesses, while others are more risk-averse. This is an important factor to consider when choosing a CPA, as you’ll want to work with someone whose values and investment goals align with yours.
CPA Agreement
When you decide to work with a CPA, you’ll need to create a CPA agreement, ensuring that both parties understand their roles and responsibilities. Doing so clarifies all key details of the relationship between the CPA and the landlord, prevents misunderstandings, and ensures expectations are clearly defined on both sides.
Real Estate Software: Your New Tax Accountant?
Regarding the financial side of managing rental properties, working with a real estate tax accountant can be helpful. However, hiring a CPA may offer even greater benefits for landlords who want to stay current on property tax laws, receive year-round financial guidance, and maximize their investment portfolio.
To streamline the process of managing your rental properties, consider using TurboTenant’s free landlord software. The platform includes tools like lease agreement management and rent collection, helping you operate your rentals with less hassle.
Sign up for a free account to learn more.
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Provided by Bigger Pockets
After reaching an all-time high in 2007, single-family home prices collapsed 27.4% until hitting a low in 2012. Since then, the Case-Shiller U.S. National Home Price Index has exploded by 141.23%.
Don’t you wish you had a time machine and could buy a home at 2012 prices?
You don’t, and you can’t, of course. But you can invest in another type of real estate that’s coming off a similar collapse in prices.
Multifamily apartment building prices have fallen by 23.5% since reaching a peak in July 2022, according to CoStar. The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) fell 28.1% before bottoming out and starting to rise again.
And you don’t need millions of dollars to invest in multifamily properties. You can invest fractionally with $5,000 and enjoy all the cash flow, appreciation, and tax benefits of ownership.
Why Multifamily Looks Like It’s Bottomed Out
First, take a moment to remember the narrative around real estate in 2011-2012. The mood was bleak—all you read were doom-and-gloom headlines, and the narrative was all negative. In other words, there was “blood in the streets.”
Today, you are in the same mood in multifamily real estate. Investors are running scared after three years of capital calls and distressed sales.
Every investor knows the famous Warren Buffett’s advice to “be fearful when others are greedy, and greedy when others are fearful.” But the mood among investors is far from the only reason to consider multifamily right now.
Dropping construction starts
What drives market prices? Supply and demand—and multifamily housing supply rose sharply between 2021-2025.
But after peaking at 614,000 in late 2022, multifamily unit housing starts have dropped to 370,000 as of February. You can thank the “blood in the streets” for that.
In 2024 alone, new multifamily construction starts fell by 25%.
So yes, the U.S. saw a lot of housing construction post-pandemic. But that surge in new construction has passed and crashed, while the country remains in a housing shortage.
Continued housing shortage
Rising rents
A 2024 report by Zillow estimated that the U.S. is still short 4.5 million housing units. Most markets don’t have to worry about an oversupply of housing. Quite the opposite.
Multifamily prices are calculated based on rental income. And rents keep rising faster than inflation. In fact, rents are one of the primary drivers of inflation. As of February, rents nationwide are up 4.2% year over year.
Rising prices
After hitting a low in 2024, multifamily prices have started rising again.
The Commercial Property Price Index (CPPI) index, calculated by MSCI Real Capital Analytics, shows multifamily properties hitting a low in February 2024, leveling out over the next few months, and rising since.
The CPPI also shows multifamily prices far below their long-term trend line:
That means they have some serious catching up to do, marking now as the perfect time to buy into the market.
Multifamily cap rates are starting to compress again
After seeing how low they could go in 2021, multifamily cap rates expanded sharply from 2022-2023. But in 2024, they stabilized, and in the second half of the year started shrinking again, according to the CBRE’s 2024 Cap Rate Survey.
As a refresher, cap rates are the other part of the price equation for commercial real estate. You divide a property’s net operating income (NOI) by the cap rate to come up with the value.
Lower cap rates mean higher prices. So, one of the drivers of rising multifamily prices is cap rates turning around and compressing again.
How to Invest in Multifamily Without Betting the Farm
I get it: There’s a lot of uncertainty in all financial markets right now, real estate included. The Trump tariffs and trade wars, as well as recession uncertainty, all make for fearful investors. So, how can you invest in multifamily while keeping your risk in check?
Invest small amounts
If you invest in a multifamily syndication yourself, it typically requires a minimum investment of $50,000 to $100,000. I don’t like that. So, I go into these investments with other people through a co-investing club.
It’s how I practice dollar-cost averaging with my real estate investments, steadily investing $5,000 each month.
Protect against recession risk
Some investments are recession-resilient, continuing to thrive even during downturns.
For example, I’ve invested in mobile home parks with tenant-owned homes. If a renter has to choose between paying a $500 lot rent and paying $6,500 to move their mobile home, which do you think they’ll pay?
Likewise, I’ve invested in multifamily properties that get a property tax abatement for setting aside 50% of their units for affordable housing. Those units have a waiting list—imagine how much more the demand would rise in a recession.
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Here are other recession-resilient real estate investments for more examples.
Don’t count on compressing cap rates
The trend line looks positive for cap rates compressing again. But I’m still not counting on that for the success of my investments.
In my club, we generally like to see strong cash flow in the multifamily investments we vet. We like collecting distributions, like properties that don’t rely on price improvements for returns.
With strong cash flow, the operator (and you) can sit back and hold the property long term, waiting out rough patches—all while collecting plenty of rental income.
Diversify with other property types
Yes, it looks like a great time to buy multifamily properties. But you should look to diversify your portfolio. That includes taking a look at industrial properties, mobile home parks, raw land, hotels, and vacation rentals.
I don’t have a crystal ball, so I can’t predict the next hot asset class. And I don’t have to because I invest in so many different types of properties.
Diversify across states
I have cash tied up in over 30 properties across 13 states and counting.
Again, no one knows where the next “hot” market will be. Who cares? Spread your money across many geographical markets, and you’ll catch some of the hot ones.
Diversify across other passive investments
Syndications are just one type of passive real estate investment but aren’t the only option. You can also invest in private partnerships, private notes, secured debt funds, and real estate equity funds. That also helps you invest for different timelines, including some investments as short as nine months.
Final Thoughts
Multifamily properties experienced a bear market from 2022-2024, along with the losses and fear that come with them.
The bottom of a bear market doesn’t look and feel optimistic yet. The press and mood remain mostly negative at the bottom before it becomes obvious to everyone a new bull market is starting. That’s precisely the time to buy in.
As someone who invests steadily every month, I don’t advocate trying to time the market. But as far as I can tell, most market metrics are signaling the bottom of the bear market and the beginning of a new bull market in multifamily.
It doesn’t feel like the giant party that it was in 2021. And that’s precisely what makes it a better time to buy.
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Provided by Bent Nail Inspections
What Qualifications Should I Look for When Choosing a Home Inspector?
Buying or selling a home is a significant decision, and choosing the right home inspector is essential to ensure a smooth and informed process. But with many inspectors to choose from, how do you know you’re making the best choice? This guide outlines the key qualifications for selecting a home inspector, helping you secure the expertise needed for a comprehensive inspection.
Licensing and Certification
The first and arguably most important qualification to verify is whether the home inspector is licensed. While not all states mandate home inspector licenses, hiring a licensed professional is crucial for those that do. A licensed inspector has met the state’s specific requirements, including completing formal training and passing a rigorous exam.
In addition to licensing, certifications from well-known organizations can distinguish an outstanding home inspector. Some certifications to look for include:
- International Association of Certified Home Inspectors (InterNACHI)
- American Society of Home Inspectors (ASHI)
- National Institute of Building Inspectors (NIBI)
These organizations require ongoing education, adherence to industry standards, and a commitment to ethical conduct. By choosing a certified inspector, you ensure they stay current with industry practices and techniques.
Experience Matters
While licensing and certifications provide a solid foundation, experience is invaluable. An inspector with several years in the field has likely encountered many issues and is better equipped to identify subtle or hidden defects. When interviewing potential inspectors, ask questions such as:
- How many years have they been inspecting homes?
- How many home inspections have they conducted?
An experienced inspector offers more comprehensive reports, spotting problems that someone with less field experience may overlook. This experience can also translate into practical advice to save you money.
Specialized Training
Not all homes are the same, and depending on your property’s unique characteristics, you may require an inspector with specialized expertise. For example, consider inspectors trained in:
- Radon testing
- Mold inspections
- Pest inspections
- Energy efficiency evaluations
Choosing an inspector with expertise relevant to your property ensures a more thorough and accurate assessment, particularly if the home has specific risk factors that need closer attention.
Insurance Coverage
Professional liability insurance, or Errors and Omissions (E&O) insurance, is a critical safeguard when hiring a home inspector. This insurance protects you in case the inspector misses a significant issue during the inspection. Always ask about the inspector’s insurance coverage and verify that it’s current and adequate for the job.
Attention to Detail
A qualified home inspector leaves no stone unturned. They should thoroughly assess the home’s major systems, structure, and components, including:
- Foundation
- Roof
- Plumbing
- Electrical systems
- HVAC systems
A rushed inspection may overlook important issues, while a well-conducted inspection typically takes between 2 to 4 hours, depending on the size and complexity of the home. Ensure the inspector you hire will take the necessary time to do the job right.
Have You Considered a Home Warranty for Your Rental Property?
Essentially this is insurance for your appliances, HVAC, as well as for pools, septic’s, and more. Home warranties can help landlords with:
- Budget management: Landlords can avoid unexpected repair costs and make budgeting easier.
- Quality and longevity: Licensed professionals perform repairs, which can help maintain the quality and longevity of the property.
- Tenant satisfaction: Tenants can be confident that issues will be addressed promptly and professionally, which can contribute to a positive landlord-tenant relationship.
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Clear and Comprehensive Reports
One of the most critical deliverables of a home inspection is the report. Make sure your inspector provides a clear, well-organized, and easy-to-understand report. The best reports include:
- Photographs highlighting issues
- Summaries of the home’s overall condition
- Descriptions of potential future problems
- Recommendations for repairs or maintenance
Additionally, ask if the inspector provides digital reports and whether they can answer any follow-up questions after the inspection is complete.
Positive Reviews and References
A track record of satisfied clients is another good indicator of a qualified home inspector. Check online reviews and testimonials to gauge the inspector’s reliability and professionalism. Look for consistent praise in areas such as:
- Punctuality
- Thoroughness
- Communication skills
- Willingness to answer questions
Choosing the right home inspector is vital for protecting investment and gaining peace of mind. Ensure they are licensed, certified, experienced, and have adequate insurance. Don’t hesitate to ask questions and verify their qualifications through reviews and references. A good home inspector will provide a detailed report and offer clear explanations, empowering you to make well-informed decisions about the property.
Your home deserves the best inspection. At Bent Nail Inspections, we pride ourselves on being certified and experienced professionals committed to providing thorough inspections and detailed reports. Let us help you safeguard your investment and make the best decisions for your property. Schedule your inspection today!
FAQs about Home Inspector Qualifications
Q: Should I hire an inspector who specializes in older homes?
A: Yes, if you’re purchasing an older home, hiring an inspector with experience in older properties can help you spot age-related issues like foundation settling, outdated electrical systems, or plumbing concerns.
Q: What happens if my home inspector misses something?
A: This is why hiring an inspector with liability insurance is crucial. Their Errors and Omissions (E&O) insurance can protect you if something critical is missed.
Q: How many certifications should a home inspector have?
A: While one certification from a reputable organization is often sufficient, additional certifications in specialized areas can provide extra assurance of their expertise.
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Provided by Fair Housing Instutute
Technology has fundamentally reshaped the way property managers and their staff interact with residents. With new advancements in artificial intelligence (AI), many tools that properties use for payments and resident communication are being upgraded. These innovations offer efficiency and convenience but also raise important fair housing considerations.
Property managers must ensure these tools remain inclusive, accessible, and compliant with fair housing laws. In this article, we’ll explore how AI is reshaping communication and payments in property management—and how to navigate the risks while leveraging the benefits.
The Evolution of Communication in Property Management
AI-powered chatbots and automated messaging systems are becoming the norm, helping property teams respond to resident inquiries, process maintenance requests, and even screen rental applications. While these tools increase efficiency, property managers must be mindful of accessibility challenges and compliance risks, particularly under the Fair Housing Act.
AI-driven communication must be equitable and accessible for all residents, including those with disabilities. Over-reliance on automated digital tools could unintentionally exclude residents who require verbal communication due to visual impairments, speak languages not supported by AI systems, or have limited digital literacy or internet access. Ensuring fair housing compliance means offering multiple communication channels, regularly auditing AI tools for potential bias, and training staff to override AI responses when necessary.
Remember, you understand that compliance is non-negotiable, whereas AI is continually learning. A balanced approach allows property managers to take advantage of AI’s efficiency while maintaining fairness in resident interactions.
The Shift Toward Digital Payments
Property management companies are increasingly moving away from cash and check payments, instead encouraging residents to use online portals, digital wallets, and automated bank transfers. These systems streamline financial operations, reduce late payments, and provide residents with greater flexibility. AI-powered financial tools are now capable of predicting rent payment trends, sending automated reminders, and even offering customized payment plans based on resident behavior. The ability to automate these processes allows management teams to focus on more pressing concerns while maintaining smooth financial transactions.
Despite the benefits, digital payment systems present challenges that property managers must address. Many residents, particularly those from lower-income households, may not have access to online banking or credit cards. Others may rely on government-issued checks or prefer cash payments for personal reasons. When digital payments become the sole method of rent collection, these individuals may face unnecessary barriers.
To remain inclusive, property managers should ensure that multiple payment options remain available to meet the diverse needs of their residents. Moreover, AI-driven payment reminders and automated late notices must be carefully managed to avoid unintended pressure or harassment, which could lead to compliance concerns.
The Risks of AI in Property Management
As AI becomes more embedded in property management operations, it is essential to recognize the potential risks it introduces. AI systems are built on data, and if that data contains inherent biases, the AI may unintentionally perpetuate discrimination. This is particularly concerning in areas such as resident screening, maintenance prioritization, and customer service interactions. When AI is used to assess rental applications, there is a risk that it may favor certain demographic groups based on historical trends rather than making neutral, fair decisions. Similarly, automated maintenance scheduling may inadvertently prioritize certain buildings or residents over others based on flawed algorithms.
To mitigate these risks, property managers must take proactive steps to ensure that AI-driven processes remain fair and compliant. AI systems should be regularly audited to identify and correct any biases that may influence decision-making. Transparency is also critical, as residents should have a clear understanding of how AI is used in property operations, particularly when it affects their housing opportunities. Additionally, human oversight must remain a fundamental part of the process. While AI can enhance efficiency, it should never serve as the sole decision-maker in matters that impact residents’ rights and fair housing compliance.
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Implementing AI Responsibly in Property Management
Responsible implementation of AI requires a thoughtful and strategic approach. Property managers should work closely with technology vendors to ensure that the AI tools they adopt align with fair housing requirements. This includes understanding how the AI’s algorithms function and verifying that they have been tested for potential biases. Relying on third-party software without reviewing its compliance features can lead to unintended fair housing violations, making due diligence essential when selecting AI-powered solutions.
Equally important is the need for ongoing training. Property management staff must be educated on how AI tools operate and how they interact with fair housing laws. Regular training sessions can help teams recognize when an AI-driven decision may be problematic and when human intervention is necessary. AI should function as a support system rather than a replacement for human judgment, and staff members should feel empowered to override AI recommendations when fairness or compliance is at stake.
Continuous monitoring and adaptation are also essential. As AI technology evolves, so do its potential risks and benefits. Regular audits can help property managers assess whether their AI tools are operating as intended or if adjustments are needed to maintain compliance. By staying informed about advancements in AI and fair housing regulations, property managers can ensure that their use of technology remains both effective and ethical.
The Future of AI & Fair Housing Compliance
Looking ahead, AI will continue to play a significant role in property management, with advancements in predictive analytics, automated leasing, and personalized resident experiences. However, as AI becomes more sophisticated, regulatory scrutiny will also increase. Housing authorities and fair housing advocates are already paying close attention to how AI influences rental decisions, and new guidelines may emerge to address concerns about algorithmic discrimination. Property managers who stay ahead of these changes by proactively refining their AI strategies will be better positioned to navigate the evolving regulatory landscape.
The challenge moving forward will be balancing technological innovation with fair housing compliance. AI and digital payment systems offer undeniable benefits, but they must be designed and implemented in a way that enhances, rather than restricts, resident access and equality. The key to success lies in adopting technology responsibly, ensuring transparency, and maintaining a strong commitment to fair housing principles and training.
Conclusion
AI-driven communication and digital payment systems are revolutionizing property management, offering increased efficiency, cost savings, and improved resident experiences. However, these benefits come with the responsibility to uphold fair housing standards. Property managers must take an active role in ensuring that AI and digital tools do not create unintended barriers for residents. By maintaining multiple communication and payment options, auditing AI-driven decisions, and providing ongoing staff training, property managers can embrace innovation while fostering an inclusive and compliant housing environment.
As the industry moves forward, the most successful property management companies will be those that integrate AI and digital solutions thoughtfully enhancing operations while safeguarding the principles of fairness, accessibility, and equal opportunity for all residents.
This article was provided by the Fair Housing Institute.
In 2005, The Fair Housing Institute was founded as a company with one primary goal: to provide comprehensive and engaging fair housing compliance training at a budget-friendly price, all at the click of a button. https://fairhousinginstitute.com/
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Provided by AAOA
Bed bugs were in the news last fall when infestations appeared throughout Europe, particularly in France.
Zachary DeVries, associate professor of urban entomology at the University of Kentucky, recently told Multifamily Dive that the bugs — flat, brown creatures that tend to nest in furniture and feed on human blood — “have been a consistent and steady issue in homes, apartments and hotels since their population in the country surged in the late 1990s, likely owing to an increase in international travel and restrictions on indoor insecticides.”
Bed bugs can nest anywhere, including five-star hotels and first-class airline seats, but infestations are most commonly seen in low-income housing. DeVries owes this phenomenon to the cost of removing bed bugs, especially when that burden is placed on residents.
Bed bugs feed on human blood and can cause redness, itching, and allergic reactions. They can travel from one apartment to another, making it hard to get rid of them. If the landlord is not informed of the bed bugs’ presence, the tenant may risk getting evicted for failure to maintain a clean living environment.
How to prevent the spread of bed bugs
One important thing to impress upon residents is the danger of bringing in secondhand furniture, particularly if it’s been sitting outside. “That’s probably one of the easiest ways that [bed bugs] get brought in,” DeVries said.
Ben Hottel, entomologist at Atlanta-based pest control company Orkin, suggests the following strategies that properties can use to prevent bed bug infestations:
- Conduct regular inspections. “It’s best to first look for actual live bed bugs [first] and then signs of bed bugs such as blood stains, fecal matter and discarded exoskeletons,” Hottel said, noting that these signs could also be attributed to other insects.
- Promote cleanliness. Hottel recommends encouraging regular vacuuming and washing of bedding.
- Eliminate hiding places. This includes filling in cracks in plaster or drywall, removing wallpaper and repairing loose molding.
- Encourage residents to use special bed covers. These are designed to protect mattresses and box springs, and to make inspections and treatments easier.
It is a tenant’s responsibility to report the presence of bed bugs as soon as they are discovered. In turn, the landlord is legally responsible to quickly take appropriate measures to eliminate the bugs. They must take the issue seriously, respond swiftly and provide their other tenants with information about the bed bug infestations and their eradication since bed bugs can travel from one unit to another, making it very hard to get rid of them.
Legally, landlords are responsible for covering the costs of bed bug elimination. In some states, tenants have the right to withhold rent until the landlord fully resolves the bed bug issue. Tenants can also demand compensation from the landlord for the loss of personal belongings damaged by bed bugs or to cover any expenses incurred in temporarily relocating.
The legal and health issues roaches bring with them
By law, landlords must maintain a healthy, habitable living environment for their tenants, which includes ensuring there are no pest infestations. Neglecting to handle a roach infestation can lead to legal trouble, with tenants possibly suing for breach of contract or negligence.
In addition to their legal obligations, landlords may face code violations and fines from local health departments if they fail to keep their rental properties free of roaches. As a result of these violations, landlords may face hefty fines, legal action, and in extreme cases, property condemnation.
Cockroach infestation has little to do with cleanliness and mostly to do with how many are in the building. Roaches can cause many health issues for tenants, including asthma and other respiratory problems. As roaches crawl around, they tend to transport bacteria, germs, and diseases from one surface to another, including the surfaces in rental properties. They have the potential to transmit salmonella, e. coli, and other harmful bacteria, leading to food poisoning, diarrhea, and other infections. They can also trigger allergies in some people, causing sneezing, runny nose, itchy eyes, and skin reactions.
The only real method of eliminating roaches is to tent the entire building and fumigate, and landlords rarely want to do that due to the expense.
According to RentVision, if a tenant has notified their landlord of a roach infestation and the landlord fails to take corrective action within a reasonable amount of time, the tenant may be able to stop paying rent without penalty. This is known as “rent withholding,” and it is a legal option for tenants who believe their landlord has violated their right to a habitable living space.
How can I know if my rental has termites?
Termites are destructive pests that can cause significant damage to the structure of a building and can also pose health risks to its occupants. If your rental property has a termite infestation, your tenants have the right to take legal action against you.
According to Rental Awareness, termites are small, wood-eating insects that live in colonies, thrive in moist environments and feed on cellulose materials, which are commonly found in wood structures. Due to their ability to remain hidden and their insatiable appetite for wood, termite infestations can go unnoticed for long periods, causing significant damage to the infrastructure of a property.
If you want to determine whether your rental property is infested with termites, there are several signs you should look out for:
- As termites consume wood, they can cause wooden fixtures to warp, leading to difficulties in opening or closing windows and doors.
- When termites swarm, they shed their wings, which may be found near windowsills, light fixtures, or other areas where they are attracted to light.
- Termites build mud tubes to travel between their nest and food source. These tubes are typically brown or gray and can be found along walls, foundations, or other surfaces.
- Termites feed on wood, causing significant damage over time. Look out for wooden structures that sound hollow when tapped or have a honeycomb-like appearance.
- Termite droppings, also known as frass, resemble tiny wood-colored pellets. They may be found near termite tunnels or other areas infested with termites.
- Inspect the interior of your rental property. Pay close attention to areas where there is wood, such as baseboards, windowsills, door frames, and wooden furniture.
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What is a landlord’s exposure with regard to infestations?
Landlords often try to blame their tenants for an insect infestation. However, an infestation of bed bugs, cockroaches or termites is not an issue to be ignored and legally you are bound to address the issue properly. If you fail to deal with the situation and/or do not compensate your tenant for the damages and losses incurred, they may file a lawsuit against you.
Per Rental Law Awareness, while the specific provisions can vary, they typically outline the duties of landlords to mitigate, control, and remediate termite infestations. Violation of these laws can result in legal consequences for the landlord.
The specific duties may vary depending on local laws and regulations, but generally, landlords are expected to:
- Maintain the property in a habitable condition, free from infestations that can affect the health or safety of the tenants.
- Take prompt action to eradicate the insects and prevent further damage.
- Conduct regular inspections to identify and address any signs of bed bug, roach and termite activity.
- Provide necessary repairs and treatments to eliminate the insects and restore the property to a habitable state.
If a landlord has been unresponsive or negligent in addressing the infestation problem, poses a risk to their tenant’s health and safety, or refuses to compensate them for damages caused by the infestation, it may be necessary for the tenant to pursue legal action.
If the landlord fails to address the bed bug infestation, the tenant may be able to terminate the lease without penalty. They can also file a complaint with the local health department or the housing authority. In some cases, tenants may need to escalate disputes to small claims courts or hire legal representation to file a lawsuit against the landlord for breach of contract.
Disclaimer: All content provided here-in is subject to AAOA’s Terms of Use. Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. AAOA recommends you consult with a financial advisor, tax specialist, attorney or other specialist who is able to properly advise you.
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Provided by Rentredi
If you have good tenants who look after your property well, pay the rent on time, and don’t receive any complaints from the neighbors, you’ve won the jackpot!
Great tenants make your life easy but they can be hard to come by. So, it’s no surprise that you want to retain them long-term.
In this article, we will share our Landlord Checklist for high tenant retention rates and demand. We hope that it helps you secure great tenants who stick around for the long term.
The Benefits of High Retention Tenants
Here we’ll cover some of the benefits of high retention tenants.
Source: Rental Housing Journal
Regarding fire safety, properly operating smoke detectors is one of the most essential tools for alerting property owners and firefighters of dangerous home and apartment fires before they happen.
They are a simple tool that saves lives.
According to the National Fire Protection Association, “Roughly three out of five fire deaths happen in homes with either no smoke alarms or no working smoke alarms.”
This means that the risk of death from a residential or apartment fire is cut in half in homes with operable smoke alarms. In states such as Arizona, where I work, rental property owners must provide smoke detectors to their tenants. However, fire safety requires more than just installing smoke detectors on your property: You must also maintain them. Doing so will keep your property and, more importantly, your tenants better protected against fires.
Here are a few tips from an Arizona fire protection expert on maintaining smoke detectors.
Source: liveaboutdotcom
Legal Reasons to Go to Court
Conflicts between landlords and tenants cannot always be easily worked out. Sometimes, the only way to resolve the issue is in court. There are many times a landlord has a legal right to sue their tenant. Here are twelve reasons a landlord can bring a tenant to court.
Why Would a Landlord Sue a Tenant
Filing a lawsuit against anyone can be a stressful experience, but it does have certain advantages.
- Tenant Could Settle to Avoid Court: The first advantage, and the one many people hope for when filing a lawsuit, is that the case will never actually go to court. The hope is that, after receiving the court summons, the tenant will want to avoid the hassle of going to court and potentially losing anyway. They would rather pay the amount the landlord is requesting or compromise on paying a lesser amount that the landlord agrees to accept. This would also keep the tenant’s name off the court records.
- Recover Money Owed: Sometimes taking a tenant to court is the only way to receive the money you are owed from the tenant. If a tenant does not believe they are responsible for paying for damages at the property, it can be very difficult to get them to pay the money unless they are legally obligated to do so.
- Receive Additional Damages: In court, you can sue the tenant for the actual money you are owed, but also for additional damages. For example, if a tenant breaks their lease and moves out early, you can sue them for the rent that is due for the remainder of the lease and potentially the costs associated with finding a new tenant to fill the vacancy.
- Clear Your Name: Suing your tenant and winning will provide legal proof that you were in the right.
- The Case Will Be on Record: You will have a record that you won a court case against your tenant. This can be beneficial if the tenant ever tries to sue you at some point in the future. A victory will also show that you are a landlord who follows the law and knows the proper procedures and practices for running a rental property.
Risks of Taking a Tenant to Court
There are advantages to suing your tenant, but a landlord must also understand the risks involved. There is no guarantee of victory and you could trigger a counterclaim from your tenant.
- You Could Lose: Filing a lawsuit is not a guarantee that you will win the lawsuit. You could spend your time, energy and money going to court and still lose.
- Could Win, But Never See the Money: You could be awarded the money owed to you by the court, but you may never actually collect this money. Although the tenant will now have a judgment against them, you could be trying to chase the tenant down for years to collect the money you are owed.
- Cost: Whether you win or lose, there will still be costs involved with going to court. You will have to pay a court fee just to file your case. This fee varies widely by jurisdiction. Depending on the nature of your case, you may also have to hire an attorney to represent you, which can get very expensive very quickly.
- Tenant Could Countersue: By initiating a lawsuit, you could anger your tenant, leading them to countersue. You could wind up losing the lawsuit and then have to pay even more money to the tenant in damages and attorney’s fees.
Is Suing the Only Option?
Instead of filing a lawsuit, a landlord can send a demand letter to the tenant in the hopes that it will be enough to get the tenant to pay what they owe. This letter may be intimidating enough to avoid a court battle. A landlord can also decide to do nothing and chalk up any losses as a learning experience.
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12 Reasons You Can Sue Your Tenant
There are endless reasons that you can take a tenant to court. Some of the more common reasons a landlord can sue a tenant include:
- Unpaid Rent: If a tenant has not paid their monthly rent, you can first send them a notice to pay rent or quit. If that does not work, you can file to evict the tenant. At the same time, you can also sue them for any rent they owe.
- Unpaid Utility Bills: If there are any outstanding utility bills at the rental property in the tenant’s name, you can sue the tenant to recover this money. Often, you can deduct this amount from the tenant’s security deposit. If the security deposit is not enough to cover the expense, you can sue in small claims court to recover the rest.
- Damage to the Property: A landlord can sue a tenant if the tenant has caused damage to the property. Again, you can start by deducting the amount of damage from the security deposit. If the security deposit does not cover the amount of damage done, you can take your tenant to court to hopefully get the rest of the money you are owed.
- Unapproved Alterations to the Unit: If the tenant has made changes to the unit without approval, you can sue the tenant to recover the money it will take to restore the unit to its original condition.
- Tenant Owes More Than Security Deposit Amount: If you have taken the maximum amount of deductions from the tenant’s security deposit, but they still owe more, you can try to recover the rest in small claims court.
- Countersue for Security Deposit: A tenant may sue if they believe you wrongly withheld their security deposit. In this case, you can countersue to show you had every legal right to withhold or make deductions from their deposit.
- To Recover Lost Rent From an Illegal Move Out: If the tenant moved out before their lease was actually up, you can take them to court to recover the rent they owed for the remaining time on their lease.
- To Recover Costs to Find a New Tenant After Illegal Move Out: Some states will also allow you to pursue a tenant who has moved out early for the additional expenses you may incur trying to find a new tenant for the unit. This could include things like marketing costs and utilities.
- Expenses to Dispose of Tenant’s Abandoned Property: You can sue a tenant for the cost to dispose of or to store their abandoned property.
- Tenant Used the Property for Illegal Dealings: If a tenant used the property for some illegal means, you can sue them to recover damages.
- Illegally Have a Pet: If you have a no pets policy and you find out the tenant has an animal, you can sue them for damages and for any additional damage the pet has caused at the property.
- Other Breaches to the Lease Agreement: If the tenant has broken any other clause of the lease and it has caused you monetary, emotional or physical harm, taking the tenant to court could be the way to collect the money owed to you.
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