Even with FIXED TERM LEASES * Landlords need a LEASE BREAK Procedure!

Posted: 7th October 2010 by Wallace S. Gibson CPM in Real Estate Property Management
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I L♥VE my fixed term leases.  They are the norm in our area with UVa students renting by the school year; families wanting to stay in designated school districts AND area new-hires wanting to stay “put” and not move for a year.

Unfortunately, LIFE gets in the way sometimes….new employment, military deployment, work transfers so I have devised a re-leasing plan to benefit owners and residents.

Option #1 * Residents can secure their own replacement residents and I will charge a $400 lease re-write fee for qualified applicants.  They can download application forms in pdf format from my website and I’ll provide residents with my marketing photos and floor plans for them to post ads on Craigslist.

Option #2 * I will secure new residents at my normal leasing fee.  Residents must pay my leasing fee up-front as I will not take those monies from their security deposit which is held for my clients’ benefit.

Option #3 * I have just started to utilize this with some success * Residents vacate, pay 2 months rent AND I keep their security deposit and give them a “mutual” release.  I work to get the property re-rented AND I take my leasing fee from the monies on hand and my clients keep the remaining money or I use it to upgrade the property by re-painting, etc.

BEST case scenario, my clients do not have to pay a leasing fee for new tenants and a LONGER term lease.  WORST case is that I work for FREE to get the property re-rented for my clients.

So far, #3 is working quite well and I am getting longer term leases for clients and making some $$$ in the bargain!

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans

“…to be a Virginian, either by Birth, Marriage, Adoption, or even on one’s Mother’s side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God….” Anonymous

Why MOST Rental Properties are POORLY Maintained!

Posted: 20th September 2010 by Wallace S. Gibson CPM in Real Estate Property Management
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I’ve received several calls from investment property owners who want to change their property managers.  I learned A LONG TIME AGO that this becomes easier each time a property owner wants to change so these new owners rarely stay around long

These property owners both had rented properties that were not being kept up.  I asked them how much money their property manager was holding to take care or repairs and they said NONE.  This means that between the time the rent is collected and disbursed to the owner is the only way the property manager can obtain money for repairs, OR the property owner has to send the money to the manager once the bill is received.  WAY TOO MUCH COORDINATION and POTENTIAL for vendors not getting paid and the property manager getting stuck with the repair bill.

1.  Property managers should have a reserve account for each property or property owner.  I hold a minimum of $500 and some properties I hold as much as $2,000 for repairs and ongoing maintenance and bills.  This way, vendors get paid after the owner has received their net monthly funds.

2.  Property managers need to have service personnel and repair resources whether in house within the PM firm or a list of authorized vendors who have the appropriate licenses and insurance.  A GREAT place to get these names is from the property owners when you take over the property management duties.  Ask them who or what services are familiar with their property and then make note of them for the property file.


3.  Having a GOOD understanding with the property owners about ongoing ROUTINE maintenance such as semi-annual HVAC service, gutter cleaning, landscape mulching and exterior cleaning and the timing of their payments keeps surprises to a minimum and anticipating upgrades such as carpet replacement or storm door installation are very important.

4.  Having a REPAIR CEILING in the management agreement is also important and that should be uniform throughout the management agreements for all clients.  I used to have a $500 repair maximum and have upped it to $1,000 which would be the cost of a new hot water heater that needed to be installed on the weekend.  All other upgrades can be handled in advance and ball-park costs obtained for the owner’s budgeting.

In the fall, I have the HVAC systems of my properties serviced for winter and the smoke and carbon dioxide alarm batteries replaced.  I’ll have the gutters cleaned once the leaves are off the trees and before they have a chance to ice up when it starts to freeze at nights.

Owners WANT to maintain their investment property.  Having the systems and resources to do this is a very IMPORTANT part of the job of the property manager.

 

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans

“…to be a Virginian, either by Birth, Marriage, Adoption, or even on one’s Mother’s side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God….” Anonymous

 

Sorry rental prospects, the process does not STOP just because you have submitted your applications

Posted: 19th September 2010 by Wallace S. Gibson CPM in Real Estate Property Management
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One of the BIGGEST mistakes landlords make is to think that the renting process stops when they have prospect applications.  Professional landlords and property managers KNOW that the process is ongoing until the BEST applicants submit their SIGNED lease and their move-in monies are CASHED.

Many landlords attempt to get “tricky” with application and “holding fee” which most states view as a part of the security deposit * and therefore REFUNDABLE * unless there is a separate agreement to the contrary.  Rather than add this EXTRA step, pros just provide their lease and ask for the prospects’ signature.  Rental prospects who want “their attorney” to review the paperwork or who want to take time to review the paperwork are often disappointed to get the phone call or e-mail that the property has been LEASED.  They were not told that the process had NOT stopped and that the property was continuing to be shown and applications accepted.

 

 

I try to explain as early in the process as possible that the sooner the lease is SIGNED the sooner the property is considered RENTED.

 

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans

 “…to be a Virginian, either by Birth, Marriage, Adoption, or even on one’s Mother’s side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God….” Anonymous

Yes! PLEASE e-mail me so I can CALL you back……

Posted: 28th August 2010 by Wallace S. Gibson CPM in Real Estate Property Management
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This is one of the MANY features I enjoy about my Homerentals.net (HERO ) hosted rental home website. I can just advise rental prospects to use the Contact/Inquire button on the rental listing and I’ll CALL them to schedule a showing….this is the contact form that appears on my cel phone. I can tap their phone # to connect with them AND the information stays in my e-mail and on my cel phone….no looking up numbers and keeping names, numbers and properties is a LOT easier

 


Click to Rush ReplyA prospective resident has located one of your rentals through HERO PM and would like more information.
Inquiry Date: Aug 28, 2010
Property ID: VA041656L (Click for full details)
Property Address: 2072 Whispering Woods Dr Charlottesville VA 22911
Name: Wallace Gibson
Address: Springer Lodge,
Phone: 4349799723
Fax:  
Email: Cvillecpm@gmail.com (Preferred)
Comments: Call me to schedule a viewing

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans

“…to be a Virginian, either by Birth, Marriage, Adoption, or even on one’s Mother’s side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God….” Anonymous

 

Civilian Renters often Loose Out when there are Military Families in Competition

Posted: 24th August 2010 by Wallace S. Gibson CPM in Real Estate Property Management
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Much has been in the news recently about “government” job pay scale FAR exceeding that of the “private” sector.  This being ALSO being played out in our area’s rental market as many new-hires for government and military positions are moving into the area and they are being subsidized by the government.
 
They are being put up in local hotels under TLA * temporary living arrangement (allowance) * while they take their time and look for rental housing.  Their household goods are enroute from their current home, again on the government’s tab.  Many have housing allowances and are not effected by poor credit, unknown job prospects or the vagaries of the closing of the home they are selling.
 
Private/civilian rental prospects are making quick trips at their own expense to search for rental homes and are often at a disadvantage.  They have not done their homework on our area rental rates and they have no support or resources locally to advise them on their rental search.  They often take their valuable viewing time and schedule many viewings in outlying areas far from their employment prospects and often return to more desirable properties they have viewed only to be told the property has been rented.
   
Our area rental season is a little over half- over * it runs through the last of October * so rental prospects need to get organized and DO THEIR HOMEWORK BEFORE they get HERE!!

1.  Research areas where there ARE rental homes
2.  Research housing areas where employment is possible
3.  Research schools if they are a concern
4.  Research storage facilities if rental rates do not provide enough storage for household items

Once a suitable rental home is selected, provide application paperwork and move-in monies and make arrangements to sign a lease ASAP
 
  Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans
“…to be a Virginian, either by Birth, Marriage, Adoption, or even on one’s Mother’s side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God….” Anonymous

 

Landlord 10 Commandments!

Posted: 23rd August 2010 by Wallace S. Gibson CPM in Real Estate Property Management
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Landlord 10 Commandments!

 

1. Thou shalt not rent to friends or relatives.

This should be enhanced to include friends from church or co-workers.

2. Thou shalt not show the unit until the property is rent-ready.

One of the BIGGEST problems tenants complain about is seeing a property while the landlord is in the midst of repairs and the repairs are not completed.

3. Thou shalt not provide property keys without a signed lease and move-in monies in hand.

Landlords who don’t have their paperwork in order BEFORE showing property often provide keys thinking they will have the paperwork completed later.

4. Thou shalt not covet other landlord’s employees or service personnel.

Before I provide a service person’s name to someone, I get there permission and I KNOW they will get paid and treated RIGHT!

5. Thou shalt not skip routine maintenance on my rental property.

If hauling a 2 story ladder to your rental property on the top of your new car is unappealing, have the gutters cleaned PROFESSIONALLY.

6. Thou shalt not lower your tenant standards to rent your property.

Giving concessions is OK; however, lowing your standards is DOUBLE trouble.

7. Thou shalt not NOT keep a set of keys to your property.

This is all too common. At the cost of $2 per key, this is CHEAPER than dealing with a locksmith down the road.

8. Thou shalt not allow residents to get behind on their rental payments.

Dealing with deliquent residents when you have an eviction court date seems to be easier than trying to connect with them over the phone.

9. Thou shalt not NOT DOCUMENT the property condition when residents move in.

Many states do not require that landlords and tenants document the property condition at move-in, and they should.

10. Thou shalt not NOT provide move-out cleaning instructions to departing residents.

Tenants don’t know what you expect and they forgot how CLEAN the unit was when they moved in.

  Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans

“…to be a Virginian, either by Birth, Marriage, Adoption, or even on one’s Mother’s side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God….” Anonymous

A Very Good Study on “foreclosures”….

Posted: 21st March 2009 by Wallace S. Gibson CPM in Uncategorized
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A recent sudy done at the University of Virginia shows some interesting facts about our housing/foreclosure crisis….the study is available online and is easy to read and understand

http://www.virginia.edu/uvatoday/newsRelease.php?id=7838

While the Central Virginia area has been fairly immune to the foreclosure crisis effecting CA, FL, AZ and other states, we are not immune to the “fall out” from incoming area new-hires from those same areas who are unable to sell their current homes.  If they are fortunate enough to have good long term tenants in their current home, they will be better able to weather the real estate market in those areas while leasing a home in Central Virginia.

I find myself giving property management advice to my current renters since they are NOW landlords themselves.

Two FIRED Owners want me to manage for them AGAIN!!!

Posted: 20th March 2009 by Wallace S. Gibson CPM in Uncategorized
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Two property owner/clients I fired in the last 2 years now want to come back.  I’ve never had this happen before that I can remember.

One client did not like the repair/rennovations I suggested for long-term holding of their property so I suggested they find another property manager.  They elected to try to sell the property and had their Realtor handle the temporary leasing of the property.  Well, it did not sell, their “faux” property manager failed to use the correct leasing forms and lead disclosure, the tenants are gone and the property owners have had no income since December.  I’m going to have to think about this one as they may have other issues with the property.

The second set of clients were “new” and after an hour property presentation, 19 page management proposal and numerous e-mails, they wanted to choose the tenants, I said NO; they did not want to repaint children’s rooms to a neurtal color and they did not want to include yard service as we originally discussed.  Since I had very little time invested in setting up the property, I suggested they find another property manager who would agree to their conditions.  Evidently, they made the same demands of other PMs in the area and got similar responses and they now feel that my management program and marketing efforts are superior to the other area property managers they talked to and still want me to handle their home.  I’m leaning toward NO as I see similiar conflicts in our future relationship.

I now see why many property managers are electing to charge a set-up fee when taking on new management accounts * I charge a $400 fee if the 2 year management contract is cancelled within that time * I’m going to pay more attention to the time I invest in setting up a new property and consider it more seriously.

Dear Property Owners….THANK YOU for taking the tenants I have JUST evicted!~!

Posted: 19th March 2009 by Wallace S. Gibson CPM in Uncategorized
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Dear Property Owner:

I just wanted to thank you for taking the Deadbeats and their 4 children.  I know they presented their “prior landlord” as a heartless B-witch and that the property they rented was full of mold; however, the truth is that they were late 3 times with their rent in the FIRST 6 months of their 12 month lease and I had placed them on CERTIFIED/BANK funds only for their FUTURE payment of their rent.  I allowed them to pay their December, 2008 rent on the 15th and I agreed to waive their late/notice fees provided they were not late for the remainder of their lease. 

When they did not pay their January, 2009 rent on time, I served them with a 5-day pay or quit and filed the unlawful detainer/eviction on them on the 12th of January.  They then proceeded to bring up mold, as well as many mis-assumptions regarding the Virginia landlord tenant statutes.

They failed to appear in court; however, they advised the judge via a fax that they would be willing to leave the property in 30 days.  The judge awarded me immedite possession and I filed for a writ of possession that same day.

I advised them I would stay their  removal by the sheriff for a week so that they could move over the following weekend which is when they contacted YOUR real estate agent and offered to lease your beautiful home.  It is unfortunate that your Realtor failed to call me for a reference on them or check the county court website which shows the eviction I had filed. Had your agent run their credit report, they would have noted my inquiry in July, 2008 and that should have triggered a suggestion that they call me directly and verify their story regarding the property they were leaving so abruptly.  Had your agent driven by the property they rented from me, he would have seen a 3 year old $350,000 home, much larger than your home and in much better condition.

Again, thank you for taking my deadbeats.  If you and your sloppy real estate agent not taken them as residents for your home, I would have had to remove them through the sheriff, gone through abandonment postings for items left at the property  and notifications per Virginia eviction rules.

Don’t expect your rent for the next few months.  I am having his pay garnished for the judgement for the January rent and I have filed a Small Claims court action against them for the February and March rent. 

Wallace S. Gibson CPM *
Gibson Management Group, Ltd.

A Must Read * Little Pink House * Sex, Drugs, Rock n Roll, the Mob and politics….not your average real estate book

Posted: 28th February 2009 by Wallace S. Gibson CPM in Uncategorized
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Sorry, not from Oprah’s Book Club * Little Pink House  is the story of Susette Kelo whose name would become the heading of one of the most notorious US Supreme Court cases of this or the last century. 

Kelo v the City of New London has sex, drugs and rock and roll…corrupt Repub governor, stupid liberal local government, LARGE greedy drug company, the Mob and working families who have lived in their homes for generations.

She never dreamed her name would go down in history.  She raised her sons, worked a farm with her second hisband and worked for her nursing degree.  When she purchased her home on the water in New London, CT, she wanted to fix it up and live there for the rest of her life.  Instead, she was engaged for years in the local politics of a dying, liberal historic old town that could not get out of its way to attract business to its decaying waterfront.  With the assistance of some very good hearted people, a dedicated DC law firm and thousands of volunteer hours, although she lost her battle, she won her war.

The book is inspiring for anyone who has taken on Big Government with no hope of winning.  Written by Jeff Beneedict, a top investigative journalist, who teaches writing at Southern Virginia University, this book reads like a novel and you must keep reminding yourself that it eally happened to real people….enjoy!!
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