By Elizabeth Harrington, All Property Management

When it comes to getting a rental property ready to show, most landlords are working with limited budgets. After all, unlike when a home is sold, there’s no large, immediate payoff to be had from making upgrades. The key to maximizing profit margin on a rental property improvements, then, often lies in sticking to high-impact, low-cost projects. With this in mind, here are five things you can do to add easy curb appeal to your property.

Paint the front door. Even if you don’t plan to repaint the entire exterior, giving the door a fresh coat of paint can add an immediate visual pop, especially if you choose a bright color that compliments the rest of the house. You might also consider adding a simple wreath or ornament to the door or the surrounding area.

Upgrade hardware + house numbers. Along with strategic painting, exchanging drab, worn, or dated hardware and house numbers for newer, trendier versions can go a long way toward giving your home an updated appearance. For style beyond what you can find at your local hardware store, consider looking for unique, inexpensive options online.

Wash windows and clean gutters. Sparkly window glass and gutters that are free of debris contribute significantly to the overall impression that a home has been well maintained and will be a clean and comfortable place to live.

Install window boxes. While full-on landscaping can be expensive, and planting large quantities of plants will need regular maintenance isn’t practical for a rental, window boxes can do a lot to add charm.  Low maintenance plants that do well in window boxes include sweet potato vine, coleus, salvia, pansies, primroses, geraniums, just to name a few.

Define planting beds with edging. If your home’s planting beds aren’t already defined, adding edging can give your landscaping a refreshingly well-groomed appearance. Inexpensive edging materials include bricks, pavers, concrete curbing, or low fencing. Keep in mind that most edging will need to be durable enough to withstand regular weed-whacking if you don’t want to replace it often.

We continually work on educating tenants for any event that could happen during their tenancy. This includes making rental payments, reporting maintenance, handling emergencies/disasters, checking smoke alarms, practicing good neighbor policies, buying renter’s insurance, and more. Of course, we hope that they always follow our advice, but we know that it is human nature to avoid or ignore the possibility of emergencies or disaster situations.

It is just as important for property owners to prepare for all possible contingencies. No one likes to think about the possibility of evictions, tenant damage, disasters, and emergencies because it can be disruptive both financially and emotionally. However, being prepared can make a bad situation tolerable for both owners and tenants. There are several areas to consider.

Review Your Insurance
This is probably the most obvious and important item to have in place for unwanted events. It pays to review possible scenarios and coverage with your insurance agent at least once a year. Insurance policies are subject to change, particularly when disasters occur. With all the disasters that have occurred in the last few years and the resulting high losses, insurance companies are continually making major policy changes. Often notifications are obscure on in “small print.” Too often property owners find out that their insurance does not apply to a particular situation until “after” it happens. Find out specifically what disasters, emergencies, tenant damage, and rent losses are covered or not covered.

Keep Good Property Records
Another area that everyone dreads is an audit by a government agency, particularly the Internal Revenue Service. The best way to prepare for an audit is to create and maintain your investment records consistently and accurately. Keep all tax returns, property management reports, maintenance records, financial receipts, and property documents organized in one place where you can easily retrieve and review them if you have an audit. Maintain them yearly and when you need this information, you will have it for any situation, such as an audit or sale of the property. It is much easier to maintain files than try to recreate them later. In addition, they will probably be more accurate.

Prepare a Maintenance Plan
Just like your home, periodic work is necessary to maintain investment property. Do you have a maintenance plan for future years? It is not practical to bury your head in the sand and “hope for the best” when it comes to roofs, paint, carpeting, appliances, fencing, plumbing, electrical, air-conditioning, heating, miscellaneous repairs, and more. Figure out the life of all major items and make a plan to have work done periodically to avoid unnecessary major rehabilitation. Take a “preventative maintenance” approach to reduce expenses and stress.

Financial Plan
Do you have a financial plan for your maintenance plan? Have you considered how you would cover expenses in the event of an eviction and loss of rent? What funds and coverage will you need if there is a fire? If a disaster happens, such as high winds, tornado, hurricane, fire, and flooding, how will you sustain the property? Insurance may not cover everything. Talk with your bank or available financial institutions about what financing you could obtain if necessary. Even better, establish an emergency fund in an interest bearing account. If something happens, you have an immediate resource to use.

You do not want to fall victim to the old adage, “fail to plan and plan to fail.” Planning now can help prepare for the unexpected. If you need assistance, contact us – we are here to help you with your investment property.

Don’t forget to vote on Tuesday July 31, 2012

1. Low spending and high congestion: Georgia ranks 48th in the nation in transportation spending per capita, and ranks 4th in total hours the average commuter spends in on the road each day.

2. Little room for expansion: Without additional funding, about 70 percent of metro Atlanta’s scheduled transportation dollars for the next 30 years will be spent on maintaining our current transportation network, leaving little room for expansion.

3. Congestion will increase as revenues decrease: Congestion will get worse as the region continues to grow – by some three million more people in the next 25 years. Meanwhile, gas tax revenues will continue to decline as cars become more fuel-efficient.

4. Money stays here: All monies generated here by the 10-year, regional transportation referendum would stay in metro Atlanta and be invested in high-priority projects throughout our 10 counties, from interchange improvements at I-285 and GA 400, to road and safety improvements, to a new light rail line from the Lindbergh MARTA station to the Clifton Corridor.

5. Positive return on investment: The economic impact over time on the Atlanta region would be far greater than the 1996 Olympics. The referendum investment would result in a $34.8 billion increase in gross regional product in the Atlanta region by 2040. That’s a 4-to-1 return on investment.

6. Job creation and retention: Some 200,000 jobs would be created or retained through the build-out of these new transportation projects. The positive economic effect equates to approximately 7,100 jobs each year from 2013 through 2040.

7. Business and workforce development opportunities: Policies for strong small business and minority contracting and workforce development efforts have been developed and adopted by key agencies responsible for the project build-out.

8. Cost savings to commuters: Commuters spend an average of $924 each year due to traffic congestion. Collectively, the time and fuel savings generated by referendum projects would allow residents to save $9.2 billion by 2040.

9. Decrease in travel delays: Travellers will enjoy a 24% average decrease in future travel delays on roadways improved through road widening, new construction and improved interchanges.

10. Air quality benefits: Air quality improvement would be equal to taking 72,000 vehicles off the roads daily.

For more information on the 157 projects in metro Atlanta, please visit Untie Atlanta and view the interactive project map.

Don’t forget to vote on Tuesday July 31, 2012

As promised, I have additional tips for you.

English: A notice to the tenants during the Anti Rent War. (Photo credit: Wikipedia)

Tip # 5 – Treat this as a business. You did not get into this business to help tenants with their personal problems, be their best friend, give them free rent, etc. Be firm, but fair with your dealings.

Tip # 6 – Location, Location, Location. If you have a rental property in a bad neighborhood that is difficult to rent, you will be dealing with tenants from weakness rather than strength. You will always be afraid the tenant will move and my property will sit empty for months.

Tip # 7 – Be prepared to maintain your property and do repairs as needed quickly. A property in disrepair will get less rent and more tenant turnover. This is your asset, treat it as such. You are not a slum landlord.

Tip # 8 – Have a published system to create the rent. One system I recommend if you have a small number of properties is to open a bank account for rent deposits. Send the tenants deposit slips where they can make the deposit at any branch of the bank. Make sure that your rentals all have a different rent amount, so you can tell who paid the rent. Transfer the money out of this account by the 5th of the month leaving only a small balance.

Tip # 9 – Don’t jump to go to court. Always try to settle disputes first. If that fails, you must go to court. Do not let a tenant drag rent payments out. You will not receive your money. Cut your losses, evict and place a new rent paying tenant in your property.

You may have a number of reasons why you would prefer not to manage your own home:
1. You do not want to handle plumbing calls at all hours
2. You value your home life
3. You are unsure of the landlord/tenant laws in your state
4. You do not want to deal with tenants
5. Moving out of the Atlanta, Georgia area

Whatever the reason, PowerHouse Property Management understands tenants and the law. Call us today for a free, no obligation consultation on renting your Atlanta area home.

I am always asked: “How difficult can it be managing a rental home in the Atlanta area?”

Not too difficult if…

1. You do not break any fair housing laws while looking for tenant prospects
2. You are consistent with your screening
3. You apply the same screening guidelines to everyone
4. You disclose lead based paint issues, if necessary
5. You do a move in inspection
6. You handle the security deposit correctly
7. Your tenant pays the rent on time
8. Nothing breaks in in your home
If you are still interested in trying it yourself, I have a few tips for you.

Tip # 1 – Create a screening profile and checklist of what you are looking for in a tenant and share it with your tenant applicants. This is important for two reasons.
1) Liability. It shows you are being consistent in your screening
2) You should only get applications from qualified tenants
An example of screening requirement would contain:
1) Income – must be 3 times the rent
2) Employment – must be employed in the same industry for the last two years
3) No Evictions
4) No Criminal history

Tip # 2 – Be Consistent with all applicants. Treat each applicant the same. Do not deviate from your screening requirements for one applicant because you have a good “gut feeling” about them.

Tip # 3 – Have all applicants over 18 complete an application. Include enough information on the application to make an informed decision.

Tip # 4 – Know the laws in your state. Read a copy of your states Landlord Tenant Law and understand how it affects you. If you live in Georgia, email me at: Richard@Renterspowerhouse.com and I will send you a copy of the Georgia Landlord Tenant Handbook.

Look for additional tips on becoming a landlord with the conclusion of my blog on Thursday.

I want you to rent my house quickly, get top rent and a good paying tenant and I don’t want pets in my home.

I understand not wanting pets. They may cause damage to new carpet, scratches on the walls, etc.

Pet my tummy please (Photo credit: Jan & Peggy)

I then ask my owners if we did an open house for your rental… how would you feel about getting ten families to stop by to see your home and you only allow four families in to view your home. The other six families… please go away we do not want you.

The owners look at me like I am crazy. “What are you doing? You can’t do that, I told you I wanted my home rented quickly”

When you insist on a no pet policy that is exactly what you are doing…

According to a recent study done by the American Veterinary Medical Association the percentage of U.S. households with pets reached about 60% of all households. By comparison, about 35% of U.S. households have children.

Ok, the owner responds, can we make Pets negotiable? Most rental searches have the following fields to determine if Pets are allowed “Yes”, “No” and “Negotiable” How many pet owners will search for properties where the family pet is Negotiable?

I put it to the test and thought I would get the answer straight from “the horse’s mouth”. I visited the Newtown Dog Park in Johns Creek, Georgia, about twenty miles north of Atlanta.

I approached a number of families and posed the following question to them.

If you were looking for a rental home would you consider rentals that were negotiable in regards to allowing pets?

Every family I spoke to told me the same thing, “I would start my search only on homes that allowed Pets, I would only consider “Negotiable” if I had trouble finding a rental that would meet my needs”.

Obviously, not a scientific study however it reinforces my point.

If you want your home rented quicker, let ten families into your home, not only four

An eviction notice for failure to pay rent. (Photo credit: Wikipedia)

If the Judge finds for the plaintiff (landlord), Georgia law allows the tenant seven days to move.

What happens on the eighth day if the tenant has not moved? Here is where it gets tricky.

When the landlord receives a judgement in his favor he will then need to get a writ of possession. The writ costs about $25 (depending on the county). The writ is signed by the Judge and submitted to the Sheriff’s Department on or about the seventh day from the date of the judgement.

Contact the Sheriff’s Department to ensure they received the signed writ and schedule an appointment to meet the Sheriff at the home.

In addition to the Sheriff, you should have two additional vendors at the location.

1) Locksmith – I highly recommend changing all locks
2) Moving Company – Hire a mover specializing in forced evictions. You must have four movers for the job. The reason for four? You want to get in the home and the furniture moved as quickly as possible to avoid any possible confrontation with the tenant.

The furniture will be moved to the curb where it must remain or what is left after being picked over by neighbors. Under no circumstances do you want to take any of the belongings.

Twenty four hours later you can retain a junk company or similar vendor to come and haul away the junk.

Are we having fun yet?

You get to do the whole process over with a new tenant

Rents have increased 12% in Atlanta over the last 12 months largely due to former displaced homeowners.

This news is huge for Real Estate investors looking to increase their portfolio of Atlanta rental properties.

Even though home prices in Atlanta have gone down rental prices are going up. Add to the mix low interest rates, you have a WIN-WIN-WIN opportunity for Atlanta investors.

I am sure that David Berry never evicted a tenant, monument aside you need to be ready.

English: Monument to David Berry, a good landlord of what's today Berry, NSW (Photo credit: Wikipedia)

I was in an Atlanta metropolitan court room this past Monday to evict a tenant for not paying June rent. I was in court about one month after her June rent was due. Do not delay this process, at the earliest it will be about 30 days from late rent to court.

There were 90 cases being heard, standing room only. The events that occur during court are as follows:

1) Call the Calendar
The judge will announce the Plaintiff and Defendant. When you hear your name, let the judge know are present. Cases where the other party is not present usually are dismissed in favor of the person in the courtroom.

2) Parties attempt to settle
The parties typically go outside the courtroom and try to settle the case. The majority of cases are disposed of in this fashion. My case was not. The defendant was obstinate and did not want to settle, so we went to trial.

3) Settled Cases heard

4) Trial Cases Heard
If you are a landlord and have never experienced this process, take a day and go down to the court in the jurisdiction of your rental property and watch the proceedings.

Individuals can do their own evictions IF they know what to expect and understand the process. If you do NOT know the process, please hire an attorney.

A number of folks came to me with questions. They all thought I was an attorney because I was wearing a suit. No one else dressed the part. Be professional and dress appropriately.

One amateur landlord lost $10,000 that day in court. How, you ask?

He listened to excuses from his tenant for ten months and finally filed AFTER TEN Months without the aid of an attorney. He neglected to put in a dollar amount of monies due him.

He won his case however the judge did not award damages because none were listed.

Be prepared, start the eviction process on day one and hire a professional if you are uncomfortable with the process.

Have all documentation with you… copies of  all pertinent emails, text messages, invoices and most important… understand your lease.

I was asking for monetary damages which included:

1) Late Fees – Paragraph 3 of my lease

2) Legal Notice Fees  – Paragraph 28 of my lease

3) Court Costs – Paragraph 18 of my lease

4) Utilities Reimbursement – Paragraph 20 of my lease

Be prepared to show the judge what you are asking for is in your lease.  I was prepared, had all my documentation and was awarded damages for 100% of what I was asking for.

New York - East Side eviction. Two men standing on sidewalk with possessions. Slightly cropped from original. (Photo credit: Wikipedia)

In Georgia, tenants are given seven days to vacate the property. If they are still in the property after seven days you can get a writ of possession and move their belongings to the curb.  This is commonly referred to as a forced eviction.

I will talk more about that in my next blog.

How do you make sure you do not end up in court over a security deposit?

1. Perform a thorough move in inspection and have it signed by tenant & landlord
2. Understand what “normal wear & tear” mean
3. Perform a timely move out inspection and document

Perform a thorough move in inspection and have it signed by tenant & landlord

Most amateur landlords are so excited to finally get a tenant they will just do a perfunctory move in inspection. Do you walk through the home without a plan looking for major issues that may jump out at you? Doing a move in inspection in this manner guarantees that you will miss many items.

Complete a document and save it in Word, listing all items in each type of room that you want to inspect. Create two columns, one for the move in inspection and one for the move out inspection.
Add items depending on the room such as light fixtures, walls/ceilings, air vents, windows/screens, sinks, faucets, towel bar, cupboards, etc.

Do your move in inspection with this printed document on a clipboard document all items as either OK or damaged.

PowerHouse Property Management uses software designed especially for the iPad for this function. We also include photographs of all damaged items and have the tenant and property manager sign the document.

Understand what “Normal wear and tear” means

The term “Normal wear and tear” in the Georgia Landlord Tenant law is described in a vague way that could differ amongst individuals. A generally accepted definition of “normal wear and tear” is: “the inevitable physical decline of the condition of a property from time and usage”.

The biggest reason why landlords get into trouble is not looking at the age of the asset with damages in excess of normal wear and tear.

Let’s look at a carpet as an example. IRS guidelines state that new carpet has an average of seven years life for depreciation purposes.
If a tenant damages a brand new carpet that had recently been installed during their first year of tenancy the landlord could rightfully expect to deduct from the security deposit almost all of the cost to install new carpet. However if a tenant damages a similarly priced carpet that is five years old the damage amount will be considerably less.

Let’s look at the numbers. The landlord purchases new carpet for $1000 and places it in a rental home five years ago. The tenant moves out and damages it to the point that it will need to be replaced. The landlord should only be able to deduct about $285 from the security deposit. Average depreciation annually would be about $142 times two years remaining on the useful life of the carpet.

Perform a timely move out inspection

Georgia law states that a tenant must be notified within three days of any monies deducted from the security deposit. He then has an additional five days to dispute any charges. The landlord must return the security deposit back to the tenant within thirty days of the tenant moving out.

Use the inspection form that was used during the move in inspection, notating any damages and taking photographs of all damages and remember… only deduct for damages in excess of normal wear and tear and return the security deposit to the tenant within thirty days.