4 Tips for Making Your Lease Protect You

As a landlord, you began investing in real estate to make money, but, if you’re not careful, you may end up paying out more in expenses than you’re making. The lease can be much more than a rental agreement. It should be used to help you protect yourself against mounting upkeep costs that should be the burden of your tenant.

Include a Guest Clause

The largest cause of property damage is people. The more people you have occupying a unit, the greater the wear and tear on the apartment. For this reason, it’s important to have a clause that designates just how many people can live in the unit. You can and should also add a clause limiting the number of guests that can stay overnight in the unit. As a part of that guest clause, include a clause that states that the tenant is responsible for any damage or other liabilities caused by guests of that tenant.

Put a Cap on Utilities

If you’re paying for the utilities, be sure to include a clause in the lease about the tenant’s privileges. The best way to handle this situation is to designate a number, such as $50 for gas, and state that the tenant is responsible for paying overages. If the tenant knows he’s responsible for paying the difference, he’ll be much more concerned with conserving resources.

Include Property Inspections

While most leases do have a “right to entry” clause, you might want to consider specifying routine inspections. This is the best way to protect yourself as the property owner. By making a routine inspection occasionally, you can ensure there are no serious damages to the property, unregistered tenants, or unapproved pets. This is your property and you have the right to ensure it’s being cared for in a proper way.

Specify Restrictions

This means going into detail in the lease on how the property is to be used. If you don’t want tenants using the fireplace, state that in the lease. Also point out that using utilities in a way other than intended is prohibited. This way, if their son throws a toy down the toilet and that creates a costly plumbing repair bill, the tenant will be held responsible for paying it. This is added protection against damages caused by the tenant.

If there’s anything that concerns you in renting out your property, you should make a point to mention that in the lease. This is your opportunity to let your tenants know what is and isn’t acceptable. By providing detailed clauses in your lease, you can ensure your property will be well tended and you’ll be spared the costs of paying for damages.

*Originally posed on JasonCohenPittsburgh.net

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Jason Cohen Pittsburgh - Best Practices for Landlords

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

jason cohen pittsburgh - rent or buy

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

Jason Cohen Pittsburgh - Hand Tips for First Time Landlords

Handy Tips for First-Time Landlords

Jason Cohen has been an active investor within the Pittsburgh real estate community for nearly a decade. While he began his industry efforts by purchasing and renovating cheap residential buildings in high-potential neighborhoods, he has since expanded his investments to large-scale commercial and residential properties in vibrant neighborhoods. Here, Jason Cohen provides a few tips to new landlords.  

 

You’ve finally done it. You’ve purchased the building, touched up the paint, laid the carpet, and put your first investment property up for rent. But as the inquiries come in, you realize that the easy part is over – now, you have to deal effectively with your tenants. Jason Cohen Pittsburgh is an advising group operating in the city; as such, its veteran members have heard their fair share of first-time rental horror stories. It’s common for a first-time investor to be so caught up in the buy and the renovation process that they find themselves at a loss when they need to communicate professionally with the people living in their units. Unfortunately for landlords, the work doesn’t end when the contractors leave. Below, Jason Cohen, head of Jason Cohen Pittsburgh lists a few tips for aspiring landlords to take note of before opening their doors to tenants.

 

Be Assertive

Everyone has an off month now and again. Sometimes, a tenant can’t make a payment on the day it comes due – and in some cases, that’s okay. Landlords should be empathetic and understanding if a tenant faces tragedy or finds himself in a temporary financial crunch, so long as the tenant communicates the situation. If, however, the tenant chooses to go dark and refuse to pay the agreed-upon rental sum, landlords need to act assertively. You need the rent they owe you to keep up the building and make a profit. Being overly understanding to an elusive or underpaying tenant will only result in your missing needed funds. Be assertive! Don’t be afraid of pursuing a delinquent tenant for the money they owe you.

 

Check Credit and References

Never rent to someone who doesn’t have a job or has a credit score of under 600. Those without the means to pay rent or a history of regular repayment will inevitably leave you waiting for payments that may never come. Screen your potential tenants closely to ensure that they will be responsible, reliable occupants who will care for your unit and pay on time.

 

Make Smart Renovations

Don’t install marble countertops if your unit is in a low-income neighborhood. In all likelihood, those that inquire about your unit will be looking to pay a rent in line with those offered in nearby homes; if you try to cover a fancy renovation by asking a significantly higher rent, your prospective tenants will walk. Be smart, and don’t risk renovations that offer little return!

 

Be Organized

Organization is key to any successful business venture. After all, how will you know you made a profit if you have no documentation of the fact? Ensure your success by keeping organized and detailed records!

 

For more tips, advice, and real estate content, please visit Jason’s site at JasonCohenPittsburgh.org.