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5 Key Applicant Red Flags to Watch For

Posted on March 1, 2024

Finding the perfect tenant feels like striking gold, but choosing the wrong one can lead to headaches you don’t need. As a landlord, it’s helpful to know how to tell if a tenant plans to not pay rent. Being on the lookout for these renter non-payment warning signs can help you protect your investment.

You’re not a fortune teller. But as an independent landlord looking to find great tenants, you must act as your own crystal ball when screening new renters. Every prospective rental applicant you talk to has a different story and situation. It’s up to you to ask the right questions, get the right paperwork, and check a person’s background history to fill in any murky bits.

Losing thousands—or even tens of thousands—to rent non-payment and eviction proceedings can utterly destroy your rental business. To protect your livelihood, it’s essential to know what non-payment warning signs to look for in rental applicants and thoroughly screen all potential tenants through a reputable service like SmartMove.

No matter who you end up renting to, look out for these five renter red flags. Without due diligence and comprehensive background checks, you could see yourself in a future with desperately empty pockets.

1. Past Evictions

According to The Economist, the U.S. sees at least . Although personal circumstances and backgrounds may vary, the best predictor of a future eviction is a past eviction.

In fact, renters who have a previous eviction history have 3x as many rental-related collection records as people who have never been evicted. With those statistics, it’s no wonder that a recent SmartMove study ranks rent nonpayment as the biggest fear of independent landlords.

If you’re not checking a rental applicant’s eviction history, you’re putting yourself at unnecessary risk. To help protect yourself from the beginning, start with good rental applicant screening.

Along with every deep-dive past eviction check, SmartMove includes a proprietary ResidentScore, which is designed specifically for renters and is more relevant than a traditional credit score when it comes to leasing decisions. TransUnion data shows that using SmartMove to screen your rental applicant gives you a 15% better chance at predicting if you’ll have to evict them sometime in the future.

2. Not Enough Income

If your tenant has insufficient income, chances are they’ll struggle to pay rent. But, how much should you charge in the first place? Finding the rental sweet spot involves two major responsibilities:

Set an Ideal Rental Rate

Setting a bad rental rate can wreak havoc on your property investment. Too high and you risk prolonging tenant vacancies. Too low, and your profits drop off into the abyss. At the moment, rents are skyrocketing in much of the country, but that doesn’t always mean raising them is the best solution for you.

As a landlord, it’s essential to know how much to charge for rent by looking at comps in the local property market, reviewing your unit’s amenities, and looking into average income in your area.

Verify Your Rental Applicant Has Sufficient Income

Rental business success hinges on finding the balance of the right tenants at the right price. Once you set your rental rate, you need to confirm your potential tenant can pay—both now and in the future. Make sure your rental applicant earns 2.5x to 3x or more income than the rental rate you’re asking.

Example: If you charge $1,000 in rent, your tenant should earn at least $2,500 – $3,000.

There are many ways to verify a potential tenant’s income, including paystubs, tax returns, and employer letters. However, be cautious with any materials provided by the applicant directly, as documents can be forged.

For example, an Income Insights report evaluates your rental applicant’s financial strength and lets you know if you should ask your prospective tenants for additional income proof.

3. A Criminal Record

Failing to check a rental applicant’s relevant criminal past before signing a lease not only puts you at legal risk, but it could wind up harming your property, other tenants, and the community as a whole.

According to TransUnion data, 1 in 5 renters screened had a criminal record hit on their online background check. With such a high prevalence of positive results, it’s imperative to screen every renter to get a fuller picture of their past.

Evidence of a criminal past may seem foreboding when you’re screening potential tenants. However, not every arrest or conviction is relevant to the person’s ability to be a great, responsible tenant. If you have doubts, its best to talk with your rental applicant to get a better idea of how their past may actually affect the future success of your rental property.

How to Search a Rental Applicant’s Criminal Record

It’s tempting to search your applicant’s name in Google, social media pages, or a public records finder, but that could be setting yourself up for a lawsuit, depending on your state. For instance, in California, it’s illegal to use someone’s driver’s license or date of birth to search criminal records.

Additionally, tenant screening reports like criminal background or tenant credit checks can include data protected by the federal Fair Credit Reporting Act (FCRA). This means that only certain individuals are legally allowed to access protected data—and only under specific circumstances.

Rather than risk expensive, stressful legal trouble by attempting self-performed tenant screening, use a well-established, FCRA-compliant rental background check provider like SmartMove.

4. Bad References

How your rental applicant acted in the past can be an eye-opening insight into how they might act in the future. By failing to check the rental applicant’s references, you may fail to protect your property and income.

Learn how to conduct landlord reference checks and ask about the following:

Percentage of security deposit not returned
Any late payments
Early termination of lease

Honest feedback from your tenant’s previous landlords can reveal additional red flags that may not show up on online background checks, credit reports, or other tenant screening. While there are specific questions you may not be legally allowed to ask about prospective renters, making smart inquiries allows landlords to discuss payment activity, security deposit amounts, leasing terms, and whether the lease was broken.

If you really like your hopeful renter, but their rental reference is less than glowing, get their side of the story. For example, if a previous landlord failed to keep the unit at “habitable” levels, the tenant could’ve been legally allowed to break the lease early.

5. Doesn’t Want to Fill Out a Rental Application

This final red flag is one of the most crucial documents to collect from any potential tenant. Rental applications contain important personal information that’s essential for landlord-tenant relationships and can also help verify your applicant is who they say they are.

Know what questions to ask on your rental application to help identify great renters. At minimum, your application should include the following:

Personal information and contact details for all prospective tenants in the unit
Employment, income, and credit information
Rental history, including dates, manager contact information, and any evictions
Relevant criminal history
Details about any pets and smoking status

If your potential tenant provides an incomplete application or provides excuses to avoid the process entirely, it could indicate potentially sinister intentions. Most qualified tenants understand that part of renting involves an application and are happy to hand over personal information to move forward in the selection process.

Someone who tries to go around attempts to verify employment, credit, and references might be hiding something that could knock them out of the running. Getting a complete rental application, along with SmartMove online background checks, can help you choose the best tenants possible for your particular rental unit.

SmartMove Online Background Checks Give You Confidence that Your Tenant Applicant is the Right Renter for Your Property

You’re not a mind reader. You can’t know what’s really going through a rental applicant’s head when they’re eyeing your property. Knowing what renter flags to watch for can certainly help prevent nonpayment. However, it’s essential to further cut through leasing uncertainty with high-quality hard data from tenant background checks with SmartMove.

With just your rental applicant’s email address, SmartMove delivers thorough, consent-driven credit, criminal and ID-verified reports instantly. All FCRA-compliant background checks are designed specifically for independent landlords with data backed by TransUnion, a major credit agency.

Convenient, affordable reports can help you decide which red flags are a real warning, and which ones aren’t worth the worry. Income Insights and a ResidentScore can help predict a tenant’s ability to pay rent. Eviction reports and criminal history provide greater insight into your rental applicant’s background, so you that you can feel more confident in your leasing decisions.

You might not be able to see the future, but you can help steer it in the right direction with fast, high-quality tenant screening from SmartMove.

Streamline your tenant screening process and boost your confidence with Home-Solutions! Check our solutions for property owners. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.mysmartmove.com/blog/five-red-flags-that-a-renter-might-stop-payent-rent]

The Ultimate Guide to Property Maintenance

Posted on February 1, 2024

Owning a rental property can be a dream come true – a stable income stream, a valuable asset, and the satisfaction of providing a comfortable home for others. But let’s be honest, it can also be a source of major stress. This guide is your one-stop shop for everything you need to know about keeping your rental property in tip-top shape.

How to Properly Maintain Your Rental Property

One of the biggest landlord responsibilities facing any property owner is rental maintenance. In fact, in a national survey conducted by SmartMove, rental maintenance was ranked as the third biggest “pain point” for landlords after loss in rental income and uncooperative tenants.

That’s not surprising. Rental property maintenance requires year-round vigilance, representing a significant amount of time and money. However, landlords can avoid the “pain points” if they follow some simple rules, stay organized and budget accordingly. Below we talk about some of the strategies for managing rental maintenance.

Regular Maintenance

Some rental maintenance issues, such as a leaky faucet, often can’t be anticipated or avoided. Other issues can be addressed before they become serious problems by following a regular maintenance schedule. These are the items that should be checked on a regular basis, whether weekly, monthly or annually, such as a yearly furnace inspection. Regular maintenance isn’t just about avoiding costly repairs but ensuring a pleasant living environment for tenants.

The rental property maintenance checklist below is not meant to be exhaustive. Each landlord will need to tailor a regular rental maintenance schedule based on his or her property. Here are some examples of items that many good landlords do regularly.

Check for leaks, especially following strong rainstorms or after significant snowmelt. Water damage is the enemy of every landlord.
Replace air filters frequently.
Test smoke and carbon monoxide detectors regularly.
Check for pests quarterly if not monthly.
Re-caulk showers and bathtubs to prevent mold and leaks.
Tighten any handles, knobs, locks, faucets, etc.
Check fire extinguishers.
Flush water heater.
Clean gutters.
Trim or remove trees on the property threatening power lines or structures.

Landlords should also create rental maintenance schedules for bigger ticket projects, or capital expenditures, such as replacing carpets or repainting walls. The schedule will depend on the general wear-and-tear on each individual unit, but professional property managers recommend doing these sorts of projects (i.e., interior painting, carpet replacement) about every three years unless needed sooner.

Regular Inspections

One of the keys to maintaining your unit is to conduct rental property inspections on a regular basis. There are four types of inspections landlords can do to help ensure their properties stay in tiptop shape.

Move-in Inspection: This walk-through inspection is typically done with the tenant. This provides an opportunity for the tenant to identify any concerns and for the landlord to document the condition of the property when it was turned over.
Routine Inspection: Landlords should schedule regular inspections of the property with the tenant, ideally on a quarterly basis. A landlord should provide prior notification before entering the property; often the terms of the lease will specify the particulars regarding these visits, or local law will. This is an opportunity for the landlord to identify maintenance issues or for the tenant to discuss any problems such as that leaky faucet.
Drive-by Inspection: Routinely stopping by the unit to observe its outside condition can help spot issues such as the unauthorized presence of a pet.
Move-out Inspection: As the name implies, this inspection comes when the tenant moves out. This inspection is not only the time to identify any damage a tenant may have caused but for the landlord to note what normal wear-and-tear repairs or maintenance issues may need to be addressed before the unit is rented out again.

Rental Property Maintenance Expenses

Determining how much money to allocate for rental property maintenance expenses can be tricky. Many professional property managers use what they call the 1% Rule: One percent of the total property value should be set aside to address rental maintenance expenses. Following this rule, a rental property valued at $200,000 would have a $2,000 annual budget line item for maintenance expenses.

Keep in mind this is only a rule of thumb. Factors such as the age of the property or cost of living in the area may require a larger or smaller annual budget for rental property maintenance expenses.

To account for large capital expenditures, such as a new roof, you may want to apply a different formula: the 50% Rule. This model suggests that half of all rental property income should be used for operating costs, which includes not only rental maintenance and repairs but also things like taxes, insurance, fixed fees and an escrow account for big-ticket expenses like a new roof. That means a landlord who rents a property for $1,500 per month would squirrel away $750 for rental maintenance and operating expenses.

To DIY or Hire A Professional?

A rental maintenance budget will also depend on whether a landlord opts to personally do most of the maintenance or hire the service to a contractor(s). The landlord should do an honest assessment of his or her skills and availability before making this decision. While it is certainly tempting to save money and go the do-it-yourself (DIY) route on rental maintenance, a landlord may find that his or her time is better spent on other parts of the rental management business.

Keep in mind that rental maintenance requires a varied skill set, from plumbing to electrical, and the ability to troubleshoot problems. Service calls can come at any time day or night. A landlord who chooses to do rental maintenance directly should be prepared for all eventualities.

Landlords should also remember that a tenant doesn’t care how much money a landlord might save in expenses by doing the work himself or herself. One of the leading causes of tenant turnover cited by renters as to why they didn’t renew a lease is poor maintenance. Maintenance should also be completed as soon as possible, as some tenants might try to make the necessary repairs themselves, which could cause additional problems, or even withhold rental until the issue is resolved. And renters could even call local housing authorities to inspect a property they feel is poorly maintained and unsafe.

There are plenty of options out there for landlords who need maintenance help. Websites like Thumbtack match professionals to those in need of services such as carpet installation and interior painting. Other companies like American Home Shield offer warranties on major appliances and systems such as furnaces and HVAC for a monthly paid subscription. Each service call is then charged a flat fee, with a guarantee to either repair or replace the item under warranty.

Doing Rental Maintenance Helps to Have Happy Tenants

Andrew Syrios, a real estate investor in Kansas City whose company owns more than 500 units in four states, maintains that good property management boils down to good rental maintenance.

As a way to keep your good tenants happy, landlords should consider it very important to conduct routine maintenance and inspections, as well as make timely repairs when needed. “Maintenance is the face of your company, and good maintenance is the best form of tenant retention there is,” he writes on BiggerPockets. “Many tenants are used to poor quality service, so if they come to your place and get good service, it substantially increases the chance that they will want to continue renting from you.”

Be sure to follow up on maintenance calls, Syrios advises, with perhaps a short survey or phone call to determine if the tenant is satisfied with the work. It is also a good idea to document any service calls with notes and pictures before and after any maintenance work.

Good rental maintenance should really start with the tenant screening process. A responsible renter, with a good credit history and strong references, is more likely to take care of a property. That’s where TransUnion SmartMove can really pay off with its comprehensive screening process. SmartMove reports include a credit report for renters, a tenant background check report, and renter eviction history.

Follow these suggestions and rental maintenance doesn’t have to a “pain point” for landlords but a point of pride and a way to retain good tenants.

Say goodbye to late-night calls and unexpected emergencies. We handle everything, so you can relax, recharge, and enjoy the freedom of a truly hassle-free investment. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.mysmartmove.com/blog/rental-property-maintenance]

Good Start With a Tenant

Posted on January 1, 2024

When you take over a new rental property with an existing lease and tenants, you will want to establish contact with those tenants. Follow these suggestions for creating a memorable letter that contains helpful information for your tenants and get the management of your new property started on the right foot.

Get off to a good start with a tenant welcome letter

A welcome letter goes a long way toward getting off on the right food with a new tenant. Follow these suggestions for creating a memorable letter that contains helpful information for your tenants.

To properly start off a relationship with your tenants and to show you’re a professional landlord, it’s a good idea to send a tenant welcome letter. Doing so sets a positive tone and can help you and your tenant work together to successfully address any issues that might later arise.

Sending a “welcome to the neighborhood” letter is also practical because you can include information about moving in. Send the letter by post or email a few weeks before the move-in date and leave a copy in the apartment for the tenant’s arrival.

Contents of a tenant welcome letter

A tenant welcome letter provides an informal way for a landlord to say hello or a more formal way to provide helpful information. The document can refer to a list of apartment rules and regulations and include a checklist of the unit’s move-in condition.

A comprehensive letter can include some or all of the following:

A welcome to the apartment and the neighborhood. This should sound friendly, with the hope that the tenants will enjoy living in the building.
The managing agent’s and your contact information. Include phone numbers, addresses, email addresses, and the hours the office is open.
Enclosures or attachments to the letter. Provide copies of the lease, apartment rules and regulations, and the moving-in checklist.
The rent due date. List the amount of rent, if desired, and whether the tenant can mail it, drop it off, or pay it online. Also let the tenant know about any late fees.
How to obtain keys to the unit. If the landlord will not be at the unit during move-in, explain how the tenant can get the keys, such as picking them up at the office. Also list how much it costs to replace lost keys.
Information about utilities. Remind the tenants which utilities are and are not included in rent payments. For those utilities that are not included, provide a list of local providers, such as the area’s cable or internet service, telephone service, electric and gas or oil service, and water company. Explain when the city collects garbage and recyclables, where the tenants need to leave them, and any related rules, such as a prohibition on satellite dishes.
How to request repairs. Let the tenants know how to request repairs and that they should send the request as soon as there’s an issue. Also provide information about emergencies, such as calling you immediately but following up with a written request.
Rules and regulations. This includes apartment noise rules, laundry room information, and apartment pet rules. Other subjects you may want to address include your policy about having guests, candles or incense, smoking, and giving strangers the keys. Be thorough so that there is no confusion later on.
Parking information. Let the tenant know where their designated space is in your parking lot, if applicable. If parking does not come with the unit, refer the tenant to the city clerk for street parking information; otherwise, they may try to hold you responsible if you provide incorrect information and they get a ticket or their car gets towed. Also, be sure to provide parking information for move-in, such as not blocking certain entrances.
A request that the tenants provide their contact information as soon as possible. You don’t want to be caught in a situation where you need to get a hold of your tenant immediately and don’t know how to reach them.
Advice to get renters’ insurance. Explain that, while you have insurance on the building, it doesn’t cover the tenant’s personal belongings.
A reminder to keep the premises in good condition. Make sure they know it is their responsibility to keep the apartment sanitary and clean.
How to resolve a conflict with a neighbor. If there’s noise or another concern, you may want to have the tenant first try to resolve it on their own but contact you if the situation doesn’t improve.
A request to return the move-in checklist. Let them know when they need to return it by and whether you’re going to have a walk-through inspection upon their moving in.

Other ways to welcome tenants

You can provide a small gift to the tenants, such as a bucket with some cleaning supplies or mugs with the city’s name. While this isn’t necessary, a small token goes a long way toward creating a solid relationship between you and your tenants, as landlord-tenant relationships are sometimes strained. A strained relationship creates havoc, causes tenants to break leases, and may even require court intervention.

Sending a welcome letter begins a good relationship between you and your tenants, which can help ensure a positive experience throughout the term of the tenancy, including when they move out. If you need help drafting a welcome letter, let an online service provider create one for you.

Your property deserves the best. Home Solutions offers top-tier property management services to protect and enhance your investment. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.legalzoom.com/articles/get-off-to-a-good-start-with-a-tenant-welcome-letter]

Top Benefits of Home Automation

Posted on November 1, 2023

Home automation is here to make your life more convenient, efficient, and enjoyable. Imagine being able to control your lights, thermostats, security, and entertainment systems with just a tap on your smartphone or a voice command. Dive on a journey through the incredible advantages of home automation, from saving time and energy to enhancing your home’s security and entertainment.

We live in a time unlike any other. With so many technological advancements at our fingertips, our lives are made easier, which is fortunate considering the fast-paced lives most of us lead. In recent years, great strides have been made in making homes a bit more “tech savvy.” This technology, in short, allows the homeowner to run his or her home while away through a remote, often on a Smartphone or iPad. In fact, these homes have been labeled as being “smart,” due to the fact that they can seemingly think on their own. This ability to “think,” also known as being an automated home, helps homeowners in a number of ways: 10, in fact. What are the ways in which a home automation system can benefit you?

Benefit # 1 – Adds Safety Through Appliance and Lighting Control

Another home automation advantage is added safety for both your family and home. You have the ability to control the small appliances and lighting, again with the simple tap of your finger on your favorite technological device. You can always check to make sure your daughter turned off her curling iron or ensure that your oven has been flipped off from the morning family breakfast. Your home and family also enjoy an added measure of safety through your ability to control the lights in your home. Not only does this allow you to make sure lights are off when you are gone to save electricity, it also allows you to turn them on at specific times if you would like it to look like you are home. This also helps increase the safety and security of your home.

Benefit # 2 – Secures Home Through Automated Door Locks

Perhaps one of the greatest benefits of an automated system in your home is automated door locks. How often have you left for work in the morning only to realize that you forgot to lock your front door? Through an automated system, you can lock your doors with the tap of your finger. This quickly eases your mind, so you can focus on your day’s work rather than who may or may not be entering your home. This is also a great benefit for you if you have to leave to work before your children leave for school. Often, children run out the door to catch the bus and forgot to lock the door. You can easily have control of the situation by locking the door from your office each day. The fact that you can be alerted each time someone enters your home also allows you to monitor who is entering your home at all times, even when you are not there.

Benefit # 3. – Increases Awareness Through Security Cameras

Unfortunately, we just cannot be everywhere at once. This means that we often miss things that happen, perhaps even in our own home or yard. With a home automation system, you can easily see what is happening. Now you can make sure no unwelcome guests arrive unbeknownst to you or your family. Security cameras increase family safety by recording clips when detecting movement or at specific times of the day or night.

Benefit # 4 – Increases Convenience Through Temperature Adjustment

Often, we leave for work early in the morning and forget to adjust our thermostat. As a result, we come home to a house that is severely too hot or too cold. This is inconvenient, as it usually takes a good amount of time for the household temperature to increase or decrease after being adjusted. However, with a home automation system, you can simply adjust the thermostat from the convenience of your office a few hours before heading home. This is both cost effective and saves on energy, and it helps you stay “on top of” your life when you have run out the door first thing in the morning without considering much else besides arriving to work on time.

Benefit # 5 – Saves Time

It is no secret that today’s world is busier than in days past. If you are like most people, you are constantly running from place to place, working to accomplish everything on your never-ending “to-do” list. Because of the high-tech nature of a home automation system, you never have to worry about running home to open the door for your children after school or making a quick stop at home in order to adjust household items. In short, you easily save precious time and experience more daily productivity.

Benefit # 6 – Saves Money and Increases Convenience

As mentioned earlier, a home automation system saves money. The most beneficial impact the system will have is on your monthly utility bill. No longer will you be spending money for household appliances left on in your family’s absence. You will also save on gas costs, as you will never need to stop by the house in order to turn something off or on. This is certainly convenient. You will have complete control to make sure costs are low without exerting any additional effort.

Benefit # 7 – Contributes to Economy

Simply put, you are contributing to the economy when you purchase and utilize a home automation system. You ensure that you are only using the energy and resources that are necessary while you are home.

Benefit # 8 – Increases Peace of Mind

Perhaps this benefit will not apply to everyone, but for those who habitually worry about whether or not they have taken care of everything at home before leaving for the day, a home automation system is a perfect investment. In short, it offers peace of mind. This is quite beneficial for those individuals who leave each day, obsessively worrying if everything is in order. With so many stresses in daily life, it is nice to take at least one off the list by being able to see what is going on at home without physically being there.

Benefit # 9 – Allows You Control When Out of Town

Have you ever gone out of town and given a key to a neighbor? Many do this in order to allow the neighbor to perform household chores that cannot be neglected such as feeding the plant, taking care of the dog, or delivering the mail. A home automation system allows you just a bit more control than simply turning over a key, which is a great relief to some homeowners. You can easily set up a time for the person to enter your home and let him or her in yourself through your smartphone or iPad.

This allows you to stay in control of the situation. You no longer need to worry about the neighbor losing that key or having complete, unrestrained access to your belongings. In addition, you can make sure the chores are actually being completed, so you do not have any surprises when you return home.

Benefit # 10 – Keeps Tabs On Your Children

Through the home automation system, you can easily keep tabs on your children. You can ensure that they make it safely into the house each night, letting them in without getting out of bed to greet them. You can also see their comings and goings on security cameras, as well as make sure the porch is lit when they arrive home.

This helps you keep them safe, as well as helps you know what they are up to each day, which can be quite helpful for a busy parent. In sum, investing in a home automation system will benefit you in several ways. It is cost effective. It will save you time and energy. And perhaps the most important? It will keep you and your family safe and your home secure.

Home Solutions is the go-to for all your South Florida real estate needs. With our top-notch home property management, you’ll get the results you’ve been dreaming of quickly and effortlessly. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.mymove.com/smart-home/top-benefits-of-automating-your-home/]

How Millennial Buyers are Shaping Real Estate

Posted on October 1, 2023

As millennials continue to come of age and enter the housing market, their influence on real estate trends has become increasingly evident. From preferences in location to technological advancements, this article explores the profound impact of millennials on the housing market. Gain insights into how the real estate industry is adapting to meet the needs and expectations of this influential generation.

“It’s not a good time to buy”—it’s a phrase that has echoed throughout the U.S. over the past year or two. Shockingly low housing inventory, high price tags and record-setting interest rates are making it tough for some would-be buyers to achieve homeownership.

As an executive in the mortgage services industry for many years, I know that it’s critical to understand how and why borrowers react to the ebbs and flows in market conditions. One of the ways my company keeps the pulse of today’s buyers and homeowners is by producing an annual consumer survey. This year’s survey found that many have abandoned the homebuying process over the last few years.

In fact, 49% of all respondents considered buying but ultimately decided against it. That’s more than double the number who said they abandoned the process in the 2022 study. Another 22% took it a step further and actually attempted to buy a home but were unsuccessful. Housing prices and high mortgage rates were the main deterrents in both instances.

However, despite the obvious factors that would disqualify and discourage some buyers, there’s a generation that is particularly adamant about achieving their homeownership goals.

Last year, I wrote an article where I laid out the depth of determination of the Millennial homebuying cohort. It touched on areas where they’re willing to take a leap of faith and how to best serve them in the 2022 market and climate. In this current article, I’d like to dive a little deeper, with even more insight into how they’re currently shaping the market, moving forward and making a name for themselves in the history books.

Optimistic Outlook

When many are retreating, Millennials (born between 1981 and 1996) are forging ahead. They’re not afraid to test the waters when others are telling them it’s not a good time. Why? It all comes down to their optimistic outlook. In the study, 60% of Millennials said conditions are favorable for buying a home compared with 53% for Gen-Z and 46% for Gen-X. Baby boomers, by the way, had the least positive outlook, and 53% said conditions were not favorable for buying.

Additionally, 61% of Millennials surveyed said they planned to buy a home in 2023; this flies in the face of those who still want to categorize them as the renter generation. In fact, Money reports there are now more Millennial homeowners in the U.S. than Millennial renters at 18.2 million and 17.2 million, respectively. Homeownership by this generation has spiked 64% over the past five years.

Willing To Give And Take

In my many years in the mortgage and transactional services business, I’ve seen quite a few trends emerge from this generation. While many Millennials may have purchased during the days of the pandemic when mortgage rates were historically low, those in the market today still overall desire to secure a slice of the American dream—even if it’ll cost them.

Considering the tight supply and competition right now, it appears they’re willing to pay higher price tags and interest rates in order to not lose out on the home they really want (the one with additional square footage, office space, tech upgrades, etc.). I believe that Millennials are savvy enough to know that when rates drop, they can refinance and secure a lower rate (and subsequent mortgage payment). In other words, they’re not afraid of a little short-term suffering for long-term gain, at least with respect to achieving homeownership.

In my company’s study, millennials led the pack, with 57% saying they were “very likely” or “likely” to refinance in 2023. That’s compared to 48% for Gen-X and 44% for Gen-Z. Millennials also refinanced in the highest numbers over the past three years. This continues the trend that other surveys show, where Millennials refinanced at almost double the national average in 2021. I see refinancing as a tool they’re not only using but planning to use when rates drop down into more favorable territory.

Opportunistic Group

Inventory is tight right now. In fact, one report shows that housing volume is only about half of what it was before the pandemic. Even when faced with availability issues, Millennials tend not to be afraid to look elsewhere for alternative housing options. Their resourcefulness has led to an uptick in interest in the auction market, for example, with 39% of Millennials surveyed saying they’re open to buying a house at auction.

That number was even higher (55%) in last year’s study, suggesting that the appetite for such properties remains healthy. Gen-Z, the up-and-comers behind Millennials, are equally as interested in auction properties at 39%.

How To Best Serve Millennials

Considering the evidence that shows they’re market savvy and eager to take the plunge into homeownership, how do we best serve this powerful generation?

If they’re in the market to buy a home or refinance, lenders should find ways to position themselves as proactive, trusted sources that provide information, direction and access. Survey results indicate this generation is most likely to lean on real estate agents and lenders during the home-buying process.

Additionally, I’ve found that Millennials crave transparency. When asked what they’d change about their mortgage experience, transparency into the steps and fees ranked highly. This underscores the importance of providing relevant information so they can make clear, informed decisions.

And finally, fit into their consumption patterns. These are digital natives who buy, sell and do business on their phones and tablets without batting an eye. They expect forward-thinking solutions that align with their digital lifestyle. In other words, electronic signing capabilities, virtual closing options and the like are more likely to get their attention.

Millennials have made their mark on the housing market, and I suspect they’ll be a force for several more years. However, it’s up to the rest of us within the industry to carefully consider how to better serve both this and future generations of trendsetting homebuyers.

Navigate the changing tides of the housing market with Home Solutions Property Management. Embark on your real estate journey with confidence and success! Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.forbes.com/sites/forbesbusinesscouncil/2023/08/31/going-against-the-grain-millennials-impact-on-the-housing-market/?sh=7d62f4fd2956]

How to Boost Your Home’s Desirability

Posted on September 1, 2023

If you’re a homeowner seeking to maximize the appeal of your properties, we’ve got some tips. From modern amenities to energy-efficient features, discover how these strategic enhancements can elevate your property’s allure and position it as a sought-after gem in the rental market. If you would like to speak with us and gain our insights first-hand, we are here — and have been doing this in excellence for many, many years. Give us a call!

From kitchen renovations to a new roof, there are several upgrades you can complete to help make your home more appealing to potential buyers. However, if you’re looking to give your home a technological improvement, smart home upgrades can be a brilliant option. While these upgrades can improve the livability of your space, they can also increase its appeal, as 81 percent of homebuyers said they would prefer to buy a home with some smart home products already installed. So consider adding a few of these enhancements to your home before listing it for sale.

Smart Thermostat

A smart thermostat helps regulate the temperature of your home while reducing your heating and cooling costs. Installing a smart thermostat can help you save up to 10 percent on monthly heating costs and up to 15 percent on cooling costs. These savings depend on your preferred temperature and the location and size of your home. You can control your smart thermostat from your phone or set it to a schedule so it turns on as you arrive home from work. A new smart thermostat will cost anywhere from $100 to $300 or more and set up is typically easy, making it an excellent DIY project.

Smart Blinds

You can add privacy and reduce energy loss by installing smart blinds you can control with a remote, an app, or voice command. You can even automate these blinds to open or close depending on the time of day or if someone is home. During the summer and winter, smart blinds help block outdoor temperatures from affecting your home. The cost of smart blinds will vary depending on the size, number of windows in your home, and if you go with battery, plug-in, or hard-wired blinds. However, most models start at around $100.

Smart Smoke Detector

A smoke detector is a must-have safety feature in any home. However, a smart smoke detector can provide even more safety because it can sound an alarm while you’re at home and send an alert to your phone if it detects danger, giving you peace of mind while you’re away. Some smart smoke detectors will send a message to your phone when the batteries become low. Installing these upgraded smoke detectors could even get you a discount on your homeowners insurance depending on your company. Best of all, they only cost between $50 to $100.

Video Doorbell

Add a sense of security to your home with a video doorbell. By placing a video doorbell at your front door, you’ll receive a message on your smartphone alerting you of deliveries or someone standing outside, and you’ll have a saved video clip of any activity. Depending on the type you choose, you may be able to speak with visitors at your door. Some video doorbells will need to be hard-wired into your home’s electrical system, while others will be battery-powered. Most video doorbells cost $100 or less.

Smart Lock

Another way to increase the security of your home is by installing smart locks on your exterior doors. Forgetting your keys will never be a worry again with a smart lock. These devices allow you to unlock your doors through an app on your phone, scan your fingerprint, or enter a numerical code. Additionally, you can let guests in remotely or give guests like babysitters an access code that you can turn on and off. The cost of a smart lock depends on the device you choose, but many will typically run between $100 to $300.

Ready to take your property’s rental potential to the next level? Let our professional experts guide your home property management. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://americanlifestylemag.com/real-estate/buying-selling/5-smart-upgrades-that-increase-your-homes-appeal/]

Beginner’s Guide to Successful Landlordship

Posted on August 1, 2023

Becoming a landlord can be a rewarding venture, providing a steady source of income and the opportunity to invest in real estate. However, it can also be a complex and challenging endeavor, especially for beginners. We bring you this beginner’s guide to help you with essential tips, strategies, and best practices.

Taking on the role of landlord is a huge undertaking. You have renters to find (and trustworthy ones at that), a property to look after, and being the go-between for the many different people involved in this process. Follow these tips to ensure that being a landlord is rewarding, rather than being a headache-inducing responsibility.

Screen tenants properly

Too often, landlords don’t screen potential tenants as thoroughly as they should, often causing mishaps further down the line. Don’t get so bogged down by other responsibilities that you forget to screen the people who will be living in your property. Look at credit scores, references, and if they have adequate employment before moving forward with an application.

Don’t short yourself

Your profit is coming from the rent, so make sure you’re charging the right amount to maximize your revenue. Look at the comps in the area, as well as accounting for any renovations you made to the space, and set the amount accordingly. You don’t want to short-change yourself, especially after the contract is signed and rent is locked into place.

Be as organized as possible

When it comes to managing a property and the tenants who live there, spreadsheets are your best friend. Keep track of important documents, make copies of everything, and stay on track with the various transactions and events that pop up throughout this process. You don’t want to be scrambling at the last minute if anything were to come up.

Make your guidelines clear

All of your rules and regulations should be outlined in the lease, but remember to reiterate in person. This is especially important concerning any pet restrictions, what day of the month rent is due, and what (or if) interior changes can be made to the space. Having these guidelines in writing is important, but it’s even more crucial to emphasize in person before the lease is signed.

Embark on a profitable journey as a landlord. Home-Solutions can help you navigate your home property management. With our services, you can enjoy the benefits of rental income without the hassle. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm. We are here for your questions! Let’s talk!

Reference: [https://americanlifestylemag.com/real-estate/buying-selling/beginners-guide-landlord/]

Diversify Your Portfolio Through Apartment Complex Ownership

Posted on July 1, 2023

Investing in real estate can be a lucrative venture, and owning an apartment building is an excellent option when seeking a long-term and stable investment. Aside from the potential for significant financial returns, an apartment building provides several other benefits, such as providing a consistent income, increasing and diversifying your existing portfolio, and the opportunity to increase your overall assets.

1. Steady Rental Income:

One of the most attractive aspects of owning an apartment building is the potential for steady rental income. Unlike single-family properties, apartment buildings offer multiple rental units, which means multiple sources of income. With proper management, you can ensure a consistent cash flow that can help cover mortgage payments, operating expenses, and generate a profit.

2. Scale and Portfolio Diversification:

Owning an apartment building allows investors to scale their real estate portfolio. Instead of investing in individual properties, an apartment building offers the opportunity to own multiple units under one roof. This scale not only provides greater potential for returns but also diversifies your investment. With a variety of tenants and rental units, the risk is spread across different income sources, reducing the impact of any single vacancy or non-payment.

3. Appreciation and Asset Building:

Real estate has historically appreciated over time. While there are market fluctuations, owning an apartment building can lead to long-term wealth building. As property values increase, so does the equity in your investment. Additionally, you can leverage this equity to secure financing for future investments or property improvements, further enhancing your portfolio’s growth potential.

Owning an apartment building as an investment has its advantages. However, the management of the property is vital to ensure profit; therefore, it’s crucial to consider the responsibilities and challenges associated with property management. Managing an apartment building involves tasks such as tenant screening, lease agreements, rent collection, maintenance, and addressing tenant concerns—and apartment rental agents can take care of it all! Our team is well-versed in property management and can navigate any potential problems that may come your way. Follow us on Instagram or give us a call at 954.545.3027 to see how we can help optimize your investment..

Well-Written Vacate Notice is Crucial for Landlords

Posted on June 1, 2023

Property owners often face challenges related to managing tenants and their leases, and sometimes, landlords might need the tenant to move out for various reasons, seeking assistance from a real estate agent. It’s important to handle the situation professionally and effectively. One of the essential steps in this process is writing a termination of rental agreement letter by the landlord, with the help and guidance of a real estate agent. This notice communicates important information to your tenants and helps ensure a smooth transition. Here are some insights, with input from a real estate agent, to help you draft a clear vacate notice.

There are times when you may need to evict a tenant for failure to pay rent or for breaching their lease in some way. Or perhaps the lease has run its course and you feel there may be a more suitable tenant for your property.

In most states, you’re required to provide at least 30 days’ notice if there is no particular reason to ask a tenant to move out. When violations happen, or failure to pay rent comes up, a landlord may provide less notice. Having to evict a tenant or ask them to move out is hopefully rare, but it’s still important to know how to tell a tenant to move out nicely. Failing to provide a 30-day notice to the tenant or a notice of termination of the lease could complicate the process, so follow our sample landlord letter to tenant to vacate to do it correctly.

What is a landlord’s notice to vacate?

Often referred to as a 30-day notice to vacate, it’s an official letter asking a tenant to move out. The termination of rental agreement letter by the landlord notifies the tenant in writing to avoid any misunderstandings and protect you legally if the tenant refuses to move out. This is different than the notice to vacate letter a tenant would have to write if they do not wish to renew their contract with you.

Why is a 30-day notice to tenant important?

In most states, the 30-day notice to vacate is legally required. Your tenants will need time to find another rental to live in, as well as pack and move out. Not sending the 30-day notice to the tenant will cause you trouble if you can’t prove in a court of law that you properly notified your tenant by providing them with a notice of termination of the lease.

When do you use a 30 day notice to vacate?

As the owner of the property, you have a right to provide a 30 day notice to vacate to the tenant — as long as the reason is valid and the tenant was properly notified in writing. Termination of rental agreement letter or end of lease letter by the landlord can be broken down into two main types:

Notice of termination of the lease with cause

You can issue this letter after you’ve warned a tenant to correct a lease violation, as long as the individual is not protected by COVID-19 eviction moratoriums. Tenants may also send a landlord a notice of termination of the lease with cause if the owner has breached the rental agreement, such as failing to make repairs in a timely manner.

Notice of termination of the lease without cause

Unless you own in a rent-control area, landlords can issue a 30 day notice to vacate if the lease ends and the tenants are renting month-to-month. The landlord doesn’t have to provide a reason for why they decided to ask the tenant to leave.

The different situations when a notice to vacate comes into play

A 30-day notice to tenant or lease termination letter is needed for several scenarios:

The lease may be ending soon and you don’t wish to renew

Just like the tenant, a landlord has a right to decide whether to continue renting their property. You may be selling the property, want to make improvements or find an alternative tenant. Sending the tenant a 30-day notice to vacate without cause informs them they should find alternative housing arrangements and move out.

The tenant stopped paying rent

In this scenario, you’ll need to provide a notice to vacate with the cause. Before you do, you should provide the tenant a “Pay Rent or Quit” notice detailing how much they owe with a deadline. If the tenant does not pay the back rent, you can then provide a notice to vacate or start eviction proceedings.

The tenant has violated the terms of their lease

If a tenant has broken rules specified in the lease, they’re in breach of their signed contract. You can send a notice of termination of the lease, but as with failure to pay rent, it’s best to provide them with a warning first. Sending a letter pointing out the violation, such as a no-pet or no-smoking policy, and providing them with a short window of time to correct the violation. If they ignore your written request, you can send a notice of termination of the lease with a cause.

What should you include in a landlord notice of termination of the lease?

It’s important to write your notice of termination lease carefully. A clearly written letter will minimize any misunderstandings, provide the tenant guidance on the move-out process, and will serve as evidence if the tenant refuses to leave and eviction proceedings must be started. A 30-day notice to vacate should be created on your letterhead with details of why key dates in the process and any other instructions your tenant needs to know.

Landlord-to-tenant notice to vacate letter template

According to LegalZoom, you should write your landlord-to-tenant notice to vacate letter on official company letterhead and include the following information:

Date of the notice
Tenant’s name and rental address
A request asking the tenant to vacate the rental by a specific date, typically at least 30 days out
The reason for termination if there is cause
Reference to the section in the lease which allows you to terminate the agreement
Move-out instructions, including keys, must be returned and the tenant must leave the premises in “broom-clean” or “good” condition
The time and date you’d like to do the final walk-through of the property
A request for the tenant’s new mailing address where the security deposit (minus any damages) will be returned to

Best practices when delivering a landlord notice to vacate

Some tenants may not take kindly to a notice to vacate. Avoid delivering the letter in person. Additionally, slipping the notice under their door or personally putting it in their mailbox or taping it to their door can be argued later that it was never received.

It’s best to keep confrontation to a minimum and mail the letter instead. Sending the letter by certified mail ensures your tenant receives it — and you are provided with official confirmation that the tenant personally signed for the notice.

The bottom line

A notice to vacate is sometimes necessary to end a lease early or to have a tenant on an indefinite month-to-month agreement move out. Knowing how to correctly write the notice will save you from any misunderstandings or having to pursue eviction proceedings. Fortunately, the letter is simple enough to draft on your own when you follow the template provided.

Home Solutions Property Management understands the challenges that property owners face. That’s why we offer expert home property management to help you navigate these challenges with ease. From tenant screening to lease management and more, we can handle it all. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.mymove.com/moving/renters/how-to-write-vacate-notice-to-tenant/]

A Step-by-Step Guide to Renting Out Your Home

Posted on May 1, 2023

Renting out your home can be a great way to earn extra income, especially if you’re not using the space yourself. However, becoming a landlord can also be daunting, especially if you’re unfamiliar with the process. This article will provide a comprehensive guide to renting out your home, covering everything you need to know. And remember — taking care of the details — all the details — is what we do, in excellence. So don’t let the process feel too daunting, we can take care of it all for you! Just give us a call to discuss!

The time has come. You bought an investment property. You upgraded the cabinets, patched up the walls, and put in fresh new carpets. Finally, you are ready to start renting out your house — or are you?

As a first-time landlord, you might be wondering what do you need to rent a house and feeling a little bit anxious about choosing the right tenant and entering into a binding lease agreement with them. After all, you may be stuck with them for a while. There are requirements to rent a house that you need to be aware of, and the process of renting a house can seem overwhelming at first. But as a new landlord, learning how to deal with unexpected situations goes with the territory. To help you on your journey, follow these steps to renting an apartment, and you will be well on your way toward managing your rental like a pro.

Set your price and paperwork.

Figuring out how much would my house rent for starts with evaluating your property. One of the first things you need to do is to establish a fair market price for your rental. The best method is to research comparable rental properties in the area. Choose other rental homes that have similar features and amenities to yours for a more accurate comparison.

Another thing that is absolutely essential to do before listing your rental is to make sure you have an ironclad understanding of state and federal fair housing laws. The Federal Fair Housing Act makes it illegal to discriminate against tenants on the basis of race, color, national origin, religion, sex, familial status, or disability. Know that various states have laws that protect additional classes. In practice, this means you need to be very careful in how your rental listings are worded. For example, saying your home is “great for families” would be a violation as it potentially discriminates based on familial status.

Finally, you’ll need to prepare a rental application and a lease agreement. The lease is a binding agreement between you and the tenant that grants them the right to inhabit and use the property. It also outlines the duration of the lease, the monthly rental amount, any fees, and policies — such as whether pets are allowed or not. Because state laws vary, you’ll need to make sure that any lease or application form you choose conforms to the laws where your rental is located. To be on the safe side, consider getting an attorney to draft these documents for you.

Consider ways to boost your investment.

Add solar panels: The addition of solar panels not only appeals to conscious tenants but lowers utility costs as well. Google’s Project Sunroof can calculate the savings potential for your home.
Adding rental storage spaces: Adding additional storage space, such as a backyard shed, is an amenity that can boost the rental amount. If you have a tenant that isn’t interested in the storage space, you could rent it out to someone else for storage only.
Make it pet friendly: While you might be inclined to not allow pets because they might cause damage, any incidents are typically covered by rental deposits and by the best landlord insurance policies. By allowing pets you will widen your potential tenant pool and can earn additional income by charging pet rent.
Include a washer/dryer: An in-unit washer dryer is one of the most sought-after amenities. Some renters won’t even consider your home without it. Having one in the unit or house will allow you to charge more for rent each month.
Don’t neglect the yard: Curb appeal matters when it comes to rentals. Great-looking landscaping can help you command higher rents. Outdoor living spaces such as patios, decks, and fire pits, can add value as well.

Get listed.

The moment you’ve been waiting for — advertising your rental. There are a handful of methods for getting bites on your property, but we will start with the most basic first. If you’re lucky, putting a “For Rent” sign out front might be all it takes. But unless your property is on a busy street, you might be waiting a while. Classifieds in your local paper are the next logical step. You can also list on Craigslist or rental listing aggregators like Apartments.com for a small fee.

Your other option is to hire a real estate agent who will tell you exactly how to become a landlord — by finding you a tenant. Realtors typically charge anywhere from half a month’s rent up to the full monthly rental rate as a commission. This might seem steep, but could be worth it if your rental is in a particularly competitive market and you are having trouble attracting tenants on your own.

You may also potentially be able to list on a home rental site like Streeteasy. The site includes all of New York and its boroughs, and you can set up listings to include what amenities you’re offering, any limitations your property has, and more. Streeteasy also allows you to upload photos and videos of the property and show potential tenants the surrounding neighborhood, all for a small fee. You can also work with a brokerage to list here. Other areas also have sites similar to this, Apartments.com, and even Zillow that can help you find tenants more quickly.

Conduct tenant screenings.

Once you find a prospective tenant, you’ll need to screen them. This primarily involves checking their credit report, verifying their income, and looking to see if they have any criminal convictions. You will also want to ask about their previous rental history. What minimum standards you are willing to accept is up to your discretion, but it is a good idea to have those in writing so they are applied equally to all prospective tenants.

Primarily you will want to avoid running afoul of fair housing laws, so make sure you don’t ask any questions that could be considered discriminatory, whether in person, on the phone, or in a rental application. Some questions you can ask include:

How many other occupants will be living with you?
What do you do for work?
Why are you moving?
Do you own any pets?

Set up your payment portal.

When putting the lease together you’ll need to let your tenant know how rent is to be paid. As a landlord, you can generally choose which forms of payment you are willing to accept, but it must be written into the lease. For example, you may choose not to accept cash or personal checks. You also need to establish not only when rent is due every month, but also how rent can be paid, whether it is by mail, placed in a drop-off box or via a payment portal.

In addition to the previous, you should also establish a policy for late rent. Oftentimes, landlords provide a grace period, allowing rent to be paid up until the third or fifth of the month, but it’s important to have a fee schedule in place in case your tenants don’t pay rent on time. This can be up to your discretion, but including it in the rent will make it clear to the tenants.

Many landlords are opting to accept payments via online payment portals. These are becoming more commonplace as landlords discover the reliability they offer in terms of collections. Some platforms are free for landlords to use, while others offer more robust features for a nominal fee. Including this information in the lease packet for a new tenant will make sure you’re both on the same page.

Ready to take the hassle out of managing your rental property? We’re here to help! Our team can maximize your investment and minimize your stress. From managing showings to timing rent collection — we do it all for you. Let us know if you have any questions. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.mymove.com/moving/renters/how-to-rent-out-a-home/]