by Arbors Management, Inc. | Mar 24, 2020 | Blog, Property Management Education
Should I Renew My Pittsburgh Resident’s Lease?
To Renew or Not To Renew Your Resident’s Lease?
Near the end of every residency, you need to ask yourself whether or not you want to renew your resident’s lease.
Today, we’re talking about what you should consider when you’re making this decision.
Is Your Resident Paying Their Rent on Time?
One factor to consider when you’re thinking about renewing a resident’s lease is if they pay their rent on time.
If they pay on time consistently each month and you’ve never had to send a reminder or ask where their payment is, that’s great – it’s a good reason to renew the lease!
However, if your resident doesn’t pay rent on time each month, you’ll need to decide if you’re okay with that.
If they pay a few days late every month but they always pay, you might find it tolerable since you’d get to collect a late fee.
The tardy payments may be inconvenient, but if you like the extra income that late fees provide, renewing with a resident who pays a little bit late may work out well for you.
Is Your Resident Taking Care of the Property?
Another point to look at is how well the resident keeps up with property maintenance and cleaning.
If you’re consistently receiving maintenance requests because things are breaking or are being damaged, you might not want to keep such residents in your property.
It’s a good idea to do an inspection before you decide on a lease renewal – this will give you an opportunity to look at the condition of your property and evaluate the resident’s living conditions.
If you see damage, pests, or indications that the resident may be violating your lease agreement, there’s a good chance that you may not want to renew.
But if everything looks like it did at the beginning of the lease term, a renewal probably makes sense!
Will You Increase Your Rent?
Lease renewal is a good time to increase rent, which is another decision you’ll have to make when you’re renewing your resident’s lease.
How much can you increase without chasing the resident out?
You’ll need to do a market analysis to know what other residents are paying in rent for properties similar to yours.
If they’re not paying significantly more, you might want to leave the rent where it is so you can retain your high quality residents and avoid turnover expenses.
How Does Arbors Management Help?
Here at Arbors, we conduct a physical inspection of a property 120 to 150 days before the lease expires.
Then, we send the report to the owner through our online portal. You’ll have a chance to review the inspection report and our recommendations for how much rent should be increased.
You can review that information and decide if you agree, if you’d like to make a different rental increase, or if you don’t want to do one at all.
You can also tell us if you’d rather not renew the current resident’s lease – we’re here to move forward with what you want to do.
Once we have confirmation on how to proceed, we’ll coordinate with the resident and send them the paperwork to successfully complete the renewal process, if you so choose.
All in All…
Deciding whether or not to renew your current resident’s lease can be challenging, but when it comes down to it, you really just need to consider 3 big questions:
- Does your resident pay their rent on time?
- Is your resident caring for your property?
- Do you plan on increasing your rent?
Once you work through those questions, whether it be on your own or with professional guidance from Arbors, you should be able to reach a sound decision.
If you need help deciding whether or not to renew your resident’s lease, contact us at Arbors Management – we’d be more than happy to help!
by Arbors Management, Inc. | Feb 24, 2020 | Blog, Property Management Education
By: Nick Griffith, Director of Conventional Housing
At Arbors Management, we believe the best way to avoid the eviction process and troublesome residents is by conducting a strict screening process before a resident even moves in.
Our resident screening process includes a close look at income, criminal histories, and credit histories. We have a rent collection process that works, and if eviction becomes necessary – we have a process for that, too.
Collecting Rent from Pittsburgh Residents
Before the residency even begins, we set the expectations with the resident about how we anticipate rent being paid. We let them know that rent is due on the first. They know when and how to pay it, and they know what the consequences will be if it’s not paid on time.
If payment is not received after the fifth of the month, we assess a late fee. We also send formal letters to the resident notifying them that rent is late. We tell them how much they owe and that we expect an immediate payment. This letter is sent to document the late rent. In addition to the letter, we also call, email, and text residents throughout the month to make sure they understand what they owe and why we are trying to collect it.
Filing a Landlord Resident Complaint
In the event a resident doesn’t pay rent, we file a Landlord Resident Complaint at the local magistrate. Typically, we will file this during the first week of the second month of rent being late. This means it will still be less expensive for the resident to catch up with rent than it would be to move out and find a new place to live.
We receive a court date, and we’ll go to court on your behalf to obtain a judgment in the amount owed plus court fees. Once this judgment is issued, the residents have 10 days to pay the rent. If they don’t pay the full amount within those 10 days, we can file an Order of Possession. Once we do that, the court gives the resident an additional 10 days to pay the rent. The eviction can only commence on the 11th day after the possession order is filed.
Professional Pittsburg Property Management
If the resident appeals the judgment, the case could go to a higher court level. At that point, we would need to involve an attorney. We are professional property managers, but we aren’t attorneys, so we cannot represent you at a higher court.
Many owners want to know what we charge for these services and the time we spend on paperwork and court appearances. The answer is – we don’t believe we should charge you for a bad resident or someone not paying rent. Our philosophy is that you should only be charged on the rent we collect. So, there’s no fee for us filing the Landlord Resident Complaint. The courts do have fees that you’ll be responsible for paying, but those will be passed along to the resident for your reimbursement.
We avoid evictions and late rental payments whenever possible. If you have any questions about our professional Pittsburg property management services, please contact us at Arbors Management.
by Arbors Management, Inc. | Nov 8, 2019 | Property Management Education
How Arbors Management Provides Irreplaceable Value to Residents
Working with a professional property management company offers landlords and investors a lot of benefits and advantages:
- You save time
- You save money
- Less headaches
- Less hassle that often comes along with owning a rental property
Most importantly: you have access to experience, tools, and resources that only professional managers can bring to the table.
But…
Residents also benefit from a professionally managed home.
With over 40 years of experience, we’ve found that property owners who utilize our management services have happier residents!
Why?
Because we’re responsive, accountable, and able to implement programs and systems that allow for a better and more efficient rental process.
Online Rent Payments and Maintenance Requests
Technology has delivered a number of innovative software systems and online platforms that help us manage your property more efficiently and effectively.
For example, we offer online portals where residents can pay rent and submit maintenance requests.
This is extremely convenient – our residents don’t have to worry about late rent payments or forgotten repair needs. Everything is documented and electronic.
Residents can pay rent whenever is convenient for them; in the middle of the night, during a lunch break, in the evening, literally whenever!
Our residents also have the ability to schedule future or recurring payments, and contact us about maintenance issues at any time and from any place.
Easy Application Procedures
Not only do we have online portals for current residents, but our applications for prospective residents are all online as well.
Residents are able to fill out an application online, then quickly and easily upload any of the supporting documentation required.
This allows our team to screen and verify information quickly and electronically, ultimately providing applicants with our decision faster.
We also list our available properties online!
Our online listings are user-friendly and accurate.
They also include photos, allowing residents to get an idea of what the property is like before applying!
It’s easy to contact a designated Leasing Specialist, and showings can be scheduled electronically as well.
With Arbors Management, the entire process from browsing to renting is paperless and efficient.
Hassle-Free Lease Signing
Once a resident is approved for a property, the leasing process is simple.
Residents will be able to review the entire lease and any addenda online. They can email or call us with any questions and then sign it with an electronic signature.
We will execute the lease on our end, and a copy goes into the online resident portal, which can be accessed at any time.
The security deposit can also be paid online, and residents don’t have to talk to us unless they have a question or need support.
We’re happy to offer our residents such a convenient and simplified process while still being available to provide assistance every step of the way.
Remaining Responsive and Accessible
On that note, one of the many reasons Arbors residents love working with us is because we are available and easy to reach.
Phone calls do not go unreturned and emails are not ignored.
We know the law, we’re accountable to the lease agreement, and we treat all of our residents fairly and consistently.
All in All…
We provide value to you and your residents by being present and using our experience to manage your property better.
Our goal is to use all of our tools and resources to make this a pleasant, successful leasing period for all parties.
If you have any questions about what we do and how our professional property managers provide value, please contact us at Arbors Management.
We’d love to tell you more!
by Arbors Management, Inc. | Jul 10, 2019 | Blog, Investment Rental Property, Property Management Education
What to Look for In a Property Management Company in Pittsburgh, PA
Property managers often get a bad rap. Why?
Because until recently, the work of a property manager wasn’t taken seriously.
The industry was undeveloped and there wasn’t a lot of training and technology, which led to distrust and bad practices.
But, things are changing.
There’s been a lot of innovation and investment in the property management field, and the best property managers today are doing a lot more than collecting rent and placing residents. We’re managing assets.
(more…)
by Arbors Management, Inc. | Jun 10, 2019 | Blog, Investment Rental Property, Property Management Education
So Which Is Best: Renting Out or Selling My Home?
We frequently talk to homeowners in Pittsburgh who are moving into a different home or leaving the area for work or other responsibilities who aren’t sure what to do with their property.
Deciding whether you want to sell or rent out your property is a very personal decision and there’s no single answer.
Your decision will depend on a number of factors – contrary to what you might believe, though, not all of these factors involve finances!
Today, we’re going to share some of the points we talk through with owners who are deciding between renting out or selling their home.
#1: Consider Short and Long Term Financial Goals and Needs
If you need some immediate cash fast, it’s better to sell your property.
Renting out a home can build wealth and earn you incredible profits, but it’s not going to happen right away.
You need to settle into a long term investment strategy in order to make real money.
So, if you’re looking for money to use as a down payment on a new home, you want to invest elsewhere, put a child through college, etc.; selling is better for you right now.
However, when you don’t have an immediate need for the equity that’s in your property, it might be better for your financial future to rent out the home.
You’ll earn some regular cash flow and hold onto your asset while it continues to appreciate in value.
Long term investors will earn more by renting out the property.
#2: Think About the Value of a Great Tenant and a Maintained Home
As a rental property, your home has the potential to earn your regular income.
A property with positive cash flow has higher earnings than expenses.
For example:
if you rent out your home for $1,500/month, your mortgage payment is $800 per month, and your taxes, insurance, and other expenses add up to $300 a month, you’re earning a pretty healthy cash flow.
$1,500 / month Your rental rate
-$800 / month Mortgage payment
-$300 / month Taxes, insurance, other expenses
$400 / month Cash flow
Even if you’re breaking even with your income and expenses, remember that there are still several benefits to renting out your property:
- Your resident is paying down your mortgage
- Your asset is increasing in value
- Your resident is taking care of the property
If you’re preserving the condition of your property and keeping it occupied with great residents who pay rent on time and follow the terms of your lease, a rental will provide income and ROI for as long as you own it.
#3: Consider Renting the Property for Tax Benefits
Don’t forget the tax benefits of renting out a property!
When you sell a home, you may have capital gains taxes to absorb.
However, when you rent out your property, you can protect yourself from a lot of tax liability.
Depreciation is a deduction you can take, and you can also deduct the costs of maintaining your home.
Additionally, professional services like property management are tax-deductible.
#4: Don’t Forget to Take Emotions into Account
When it comes to a home, there are also some emotional elements involved.
If you can’t bear the thought of someone else living in your home while you’re still attached to it, it may be better to sell and move on.
If you might return to the Pittsburgh area at some point in the future, keep it so you have a place to live when you come back.
We’re Here to Help
We’d be happy to talk through these issues with you, and to figure out the solution that will make the most sense for your bottom line and your peace of mind.
Contact us at Arbors Management today!
