Category: Blog

When you mix novice landlords with growing numbers of renters, the results are sometimes not pretty — especially in a housing market where eviction notices continue to land on foreclosed rental properties with some frequency.

Renters complain about getting hit with notices despite having paid rent to the landlord. Landlords complain that tenants seem more prone to skipping out on rent and abusing property. And neither party seems certain of what exactly they should do once a property enters foreclosure.

A house that landlord Greg May has been renting out in southwest Orlando is now in foreclosure, and even though he says he still holds title to the property, sheriff’s deputies will not let him enter the house. So he can’t retrieve his refrigerator and the tenant who resides there is unwilling to surrender the appliance.

“I just want my refrigerator back,” May said. “I just don’t like being told by a tenant, who is in arrears, that I can’t have my refrigerator when he’s sitting there in the house living rent-free. … I have keys to the house, but if I attempted to go inside, he would have me arrested.”

When President Obama signed the Protecting Tenants at Foreclosure Act of 2009 near the end of the Great Recession, it stipulated that tenants of houses in foreclosure can stay at least until the end of their leases. Month-to-month tenants are entitled to 90 days’ notice before having to move out.

Tom Long, president of the Central Florida Landlords Association, said a new wave of tenants are skilled at taking advantage of property managers as the region’s real estate market struggles to recover. “In the last few months, there seems to be a new influence. … There seem to be more ‘professional tenants,’¿” said Long, who lives in St. Cloud. “They go from place to place, they know how long it takes to get an eviction, and they know the unwary landlord who may be new to the business.”

Investors and owners are sometimes too cheap to give 10 percent to a property management company to manage the property. Often times they simply rely on ‘gut instinct,’ rather than using the resources of a property-management company to properly vet prospective tenants and that’s when things can quickly go from bad to worst.

In today’s market place homeowners are not able to sell their homes, so renting out their home is the best alternative; However, becoming a landlord overnight might not be as easy as you think. The following are some of the most common mistakes homeowners make when renting out their homes.

Proper Screening

Make sure to get the tenant to fill out a rental application and get their permission to obtain reports such as credit history and criminal record. Job verification is also key.

Right Lease Form

You might be tempted to go and get a simple lease from your local office supply store, but if the lease does not provide state-specific provisions they may very well be able to get out of the lease.

Hire a professional to draw up the paperwork.

Discrimination

The last thing you want to do is break the law, but that can easily happen if you don’t know the rules. Be careful not to ask questions about race, age, sexual preference or disabilities. Also, understand that you cannot refuse to rent your home based on these issues.

Upkeep and Repairs

As a landlord you should always be in charge of any major repairs, letting the tenant do it for themselves will always come back to haunt you later. Always use licensed and insured vendors and always make sure you see the finished work. If you are out of town the best thing is to hire a competent Property Manager to manage the property.

Most people know that if they want to hire a Real Estate Agent to sell their home they will most likely have to pay a 6% commission to get the job done. However, things are not so black and white when it relates to property management companies in Orlando.

There are many factors that will determine what property managers may charge for their services. We must first understand that property managers can provide two types of services, tenant placement and or management services. If you are only interested in having a property manager find you a tenant you will most likely have to sign a “nonmanagement” agreement with the agent.

The property managers will market the property, show the property, qualify the tenant and eventually get the tenant to sign a one-year lease agreement. Once the tenant is placed the agent is done and the homeowner takes over. It is common for the property manager to charge the owner 1st-month rent for this service. The second option is to have the property manager “manage” the property. The responsibilities are the same as tenant placement however after the tenant is placed the manager is responsible for collecting rent, handling maintenance issues, holding deposits and disbursing funds to the owner.

It is common for property managers to charge the owner 50% of the first month’s rent and 10% of the rent afterward for managing the property.No matter if you are looking for tenant placement or property management services, always read the fine print and make sure there are no upfront fees or strange cancellation policies in place.

What should I rent my house for.

If you are thinking of renting out your house, it’s absolutely crucial to find out what other properties in the area are renting for, once you’ve determined the general price range it’s equally important that you pick a nice round number as your monthly rent. We have to understand that the majority renters search for properties online and when they do they normally use round numbers. It is unlikely that a potential tenant will search for properties between $995 to $1195. It’s much more likely that they will simply type in $1000 to $1200. In real estate, you should always try to use nice round numbers.

If you are a homeowner thinking of renting out your home you need to understand that you’re going to have to deal with repairs. Below is a quick look at what you should expect.

View the Infographic