Best Practices for Landlords

No landlord wants to keep a flaky client. Every investment property owner counts on their tenants to pay their rent in full and on time – otherwise, they have no way of making a profit off of owning and renting out the building. A landlord’s choice of tenant matters; no property owner wants to risk bringing on a tenant that will trash place and skip out on rent. Likewise, they can’t afford to lose responsible and reliable tenants as a result of poor communication or subpar landlord-tenant relationships. In order to find and maintain responsible and reliable tenant, landlords must take stock of their own actions and strategies to establish a productive rapport with those living in their investment properties. In this piece, Jason Cohen Pittsburgh provides a few best practices for landlords who want to cultivate mutually-beneficial, long-term relationships with responsible tenants.

Creating the Lease

Standard lease forms are readily available and cover rent, security deposit fees and legal rights. From there, add pet restriction policies, late payment fees, maintenance responsibilities and expected behavior. A detailed lease explaining a landlord’s expectations and requirements reduces the likelihood of misunderstandings in the future.

Be Welcoming

New tenants are often new to the area. As such, landlords might consider creating a printed map that provides directions to frequently visited locations that may include grocery stores, medical clinics, pharmacies, restaurants and perhaps nearby attractions. Leave a welcome card in the residence to start the relationship on a positive note.

Friendly but Professional

Make a good first impression by dressing appropriately. By appearing clean and properly put together, you convey that you expect your tenants to maintain their residence. Follow the guidelines clearly established in the lease to prevent misunderstandings. Go over the lease with them before they move. You can always amend trivial matters along the way if you choose. If a disagreement should arise, it is important that the landlord always remain calm and professional.

Availability

In the event that a problem occurs, tenants must be able to contact the landlord. Supply one or more phone numbers and perhaps an email address. Emails also reduce the number of after hour calls while providing documentation of an issue. Consider tenants as customers. In order to keep customers, property owners must respond as quickly as possible when contacted. When a problem arises, set a time to visit and inspect the problem. Remedy the problem or have the repair completed as quickly as possible.

Respect Their Privacy

Tenants have the right to privacy. Some states require that landlords provide notice before entering the property. Landlords should also schedule visits to business hours or at a time that is convenient for the tenant.

*Originally posted on JasonCohenPittsburgh.net

Should You Rent or Buy? Pros and Cons

Owning a home has long stood as a milestone for success. Real estate agents and individuals alike encourage young families and individuals to take on the challenge of finding and buying a home as a way to mark their entry into professional and social maturity. Renting, in contrast, seems like a stopgap housing measure: suitable enough for now, but certainly not a permanent option. But while young adults (i.e., those under 35 years of age) remain the most likely demographic to rent, our homeowner-goal culture has taken a hit over the past decade. According to a Pew Research data analysis conducted in 2017, rental rates among both the under-35 and 35-44 demographics have risen significantly in the course of the last couple years. Currently, more households are led by renters than have been reported since 1965. Renting can’t be considered merely as a stopgap measure for younger households anymore – but should you turn away from home ownership entirely?  Here, Jason Cohen Pittsburgh considers the pros and cons of renting a home.

PROS

Flexibility

Renting can be great for those who can’t or don’t like to be tied down. Students, temporary workers, and those with jobs that require them to move are better-suited to renting because they only need to be in a certain town or city for a short period of time. After their leases end, they can easily pack up and take off for their next opportunity – and leave the landlord to find a new tenant. Renting also provides greater flexibility to those who want to live in neighborhoods outside of their purchase price range.

Simplicity

Renters don’t have to worry about the nagging details of property management. When a problem with the hot water heater or electrical system arises, all they need to do is reach out to the landlord and wait for her to solve the issue at hand. Homeowners, in contrast, need to arrange for trash removal, sewer, water, and insurance costs on their own time and dime.

CONS

Limitations

Don’t like an apartment’s lime-green walls? Want to adopt a dog? You might be out of luck on both fronts. Tenants have limited control over what they can do with the property without the owner’s express permission. Before you sign a lease, make sure to read it thoroughly to understand a landlord’s restrictions. Otherwise, you may find yourself facing a hefty fine – or even an eviction notice.

Instability

A landlord can choose to sell their property at any time they please, leaving their unsuspected tenants in the lurch. Unlike homeowners, renters don’t have the security of knowing that they have a place to live months or even years down the line – or that they’ll continue paying what they are if they choose to stay. Even well-behaved tenants have no guarantee that the housing market won’t demand a rent hike or that their lease will be renewed.

Ultimately, the choice between renting and buying will come down to individual circumstance. Figure out what your situation and budget allows before making a decision!

*Originally posted on JasonCohenPittsburgh.net

How to Rent an Apartment for the First Time

There are certain benefits to renting an apartment instead of buying a home, including free maintenance, access to communal facilities and no long-term commitment. However, it’s important for prospective tenants to choose the right apartment. The following tips can help first-time renters select the best apartment for their needs.

 

Set a Budget

 

Prospective tenants should first set a budget by determining exactly how much they can afford to pay in rent each month. According to Quicken, a good rule of thumb is to pay no more than 25 percent of income before tax on rent. If a tenant earns $3,000 per month, for example, his or her monthly rent should be no higher than $750. However, this estimate is a suggestion, not a hard-and-fast rule; if a tenant has other significant monthly expenses, they might be better off choosing an apartment that costs well under 25% of their total income.

 

Consider Location

 

The location of an apartment will affect the cost of rent, accessibility to other businesses and the tenant’s daily commute. Apartments outside of the city are usually cheaper than those within the city, but this can also make daily commutes longer. Therefore, prospective tenants should choose an apartment that’s within a reasonable driving distance from their place of work.

 

Look at Multiple Apartments

 

When searching for their first apartment, prospective tenants should look at least five properties. Even if one apartment offers all the right amenities and is within the tenant’s budget, others may offers better features at an even lower price. The only way a prospective tenant will know, however, is by considering multiple properties.

 

Consider Security

 

How secure is the apartment complex? Prospective tenants should consider security features like perimeter fencing, gates, video surveillance, patrols and alarm systems.

 

What About a Roommate?

 

To help offset the cost of living in an apartment, prospective tenants should consider getting a roommate. Assuming it’s allowed, this can reduce the cost of reduce the cost of rent by up to 50 percent. If a tenant decided to get a roommate, though, he or she should carefully vet the person to ensure they are capable of paying their share of the rent and utilities.

 

Review the Lease Agreement

 

Arguably, one of the most important steps in renting an apartment for the first time is reviewing the lease agreement. This is the legally binding document that explains the terms of rental. When reviewing the lease agreement, prospective tenants should look at the duration, security deposit and the fee for breaking the lease.

*Originally posted on JasonCohenPittsburgh.net