Renting Your Property???
What is a Landlord Responsible For:
Livability
A landlord's greatest obligation to his tenants is to make sure that the structure complies with all existing building, housing and health codes.
The Building
The property must be waterproof, natural lighting in most of the rooms, offer emergency exit access and front entrance should be equipped with a deadbolt. The structure should also have a sufficient number of working smoke alarms.
Health and Hygiene
Must have properly working plumbing, heating and electrical systems, hot and cold running water, functioning kitchen and bathroom with tub and/or shower. The property must have an adequate number of garbage cans and regular removal service. The landlord also has to make sure that any lead paint has been removed in an approved manner and that rodent or insect infestations are treated effectively.
Common Areas
In apartment buildings, the landlord must maintain common areas of the structure, including the hallways, stairs, yards and entry ways; and make sure that all walkways are properly lit.
Wear and Tear
It's important that a landlord be able to distinguish between normal wear and tear on the property's structure, systems and appliances; versus damage or negligence on the part of the tenant, so that repair costs fall on the proper party.
Security Deposit
This money needs to be held in an escrow account. If any of the deposit is being returned, is has to be returned within 30 days of the tenant moving out. Tenants who have their deposit used to cover damages must be given an itemized list of costs.
If any of these items fail or require attention, the landlord must respond to notification of the problem in a timely manner.
How much money should you put aside for rental repairs?
Becoming a landlord doesn't just mean worrying about keeping your property rented and to the right tenants. You also need to be sure you have budgeted for necessary repairs.
How much to put aside
Try to reserve $2,500 to $7,500 (average/estimate for a single family home) for repairs each year. Repair totals will vary from year to year, leftover funds from one year can help cover for big expenditures during another year.
Be realistic
Ideally, you had your property inspected before purchase so, you are aware of the age of the big-ticket items like the roof, HVAC system and kitchen appliances that may eventually need repaired or replaced. Accounting for normal wear and tear, you'll have a basic idea of when you'll need to repair or replace these items.
Preventative measures
You can keep small repair issues from turning into big ones with regular maintenance, so be sure to budget for maintenance as well. Everything from yearly HVAC checks, regular gutter cleaning, chimney cleaning, to tree or limb cut back or removal can save you big money down the road, so be sure you are planning for these expenses.
HUD Housing Consideration (Section 8)
When considering a section 8 tenant you have to understand that you may be responsible for up to about $122 a month of the tenant’s water, sewer, trash (wst) bill. You will be responsible for paying the full wst bill when it’s due and then the tenant will be responsible for reimbursing you for any amount over the amount the landlord is contracted by HUD to pay. There are also routine property inspections completed by the HUD - section 8 inspector. If property violations are found during the inspection, they have to be corrected within 30 days by the landlord or the rent will not be paid (abated) by section 8. Even if the property violations are “tenant caused” the landlord is still held responsible for correcting the violation and the tenant will then need to reimburse the landlord for the repair expenses.
When a property is advertised for rent it is targeted towards fair market tenants. If the owner is willing to accept a section 8 tenant, this should be included in the advertisement description but, the rent amount that is submitted to section 8 is usually increased anywhere from $60 to $125 due to section 8 obligations the landlord is responsible for.
Items the HUD- Section 8 inspector looks for:
· Porches – all woodwork and steps should be solid and secure
· Mortar work should be watertight
· All gutters and down spouting should be in place and secure
· If there is a doorbell button present, it must work
· Windows have screens and locks
· Light fixtures (wall/ ceiling and interior/exterior) must have light shades
· GFI’s and regular outlets need to be secure and in working order
· All plumbing should be in working order
· Kitchen – stove and refrigerator should be present and clean
· No broken blinds
· No chipped an peeling paint
· Doors have knobs and door stops
· Must have a current rental inspection on file with the city/ boro
· Hand railings are secure
· Smoke detectors are installed on each level and in working order (basement – detector is preferred at top and bottom of steps)
· Bedrooms must be at least 100 sq ft and have a closet
· Electrical panel box must have an electrical inspection sticker in place
· Hot water heater has all the valves and drip leg
· There could be additional items brought up during the inspection that look to need attention ….
When a property is advertised for rent it is targeted towards fair market tenants. If the owner is willing to accept a section 8 tenant, this should be included in the advertisement description but, the rent amount that is submitted to section 8 is usually increased anywhere from $60 to $125 due to section 8 obligations the landlord is responsible for.
Items the HUD- Section 8 inspector looks for:
· Porches – all woodwork and steps should be solid and secure
· Mortar work should be watertight
· All gutters and down spouting should be in place and secure
· If there is a doorbell button present, it must work
· Windows have screens and locks
· Light fixtures (wall/ ceiling and interior/exterior) must have light shades
· GFI’s and regular outlets need to be secure and in working order
· All plumbing should be in working order
· Kitchen – stove and refrigerator should be present and clean
· No broken blinds
· No chipped an peeling paint
· Doors have knobs and door stops
· Must have a current rental inspection on file with the city/ boro
· Hand railings are secure
· Smoke detectors are installed on each level and in working order (basement – detector is preferred at top and bottom of steps)
· Bedrooms must be at least 100 sq ft and have a closet
· Electrical panel box must have an electrical inspection sticker in place
· Hot water heater has all the valves and drip leg
· There could be additional items brought up during the inspection that look to need attention ….
Did the tenant(s) skip out and now you can't locate them?
You may be able to locate them using one of these methods...
Employment; if you can confirm employment is still the same as when they rented from you, you can have them served at their place of employment. I wouldn't use the online search services as I found them to be out dated. Send them a letter to the address where they rented from you and put on the front of the envelop Address Correction Requested - Do Not Forward. If they filed a forwarding address with the post office, the letter will be returned with the new address. Check with the Clerk of the Courts. In some areas it's available online. Search traffic tickets or other action against them. You probably can't get an address, but if they have up coming hearings, you can have them served when they show up for the hearing.
Employment; if you can confirm employment is still the same as when they rented from you, you can have them served at their place of employment. I wouldn't use the online search services as I found them to be out dated. Send them a letter to the address where they rented from you and put on the front of the envelop Address Correction Requested - Do Not Forward. If they filed a forwarding address with the post office, the letter will be returned with the new address. Check with the Clerk of the Courts. In some areas it's available online. Search traffic tickets or other action against them. You probably can't get an address, but if they have up coming hearings, you can have them served when they show up for the hearing.
When you're ready to purchase your next investment property, contact me!