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Questions to Determine if a Landlord Should Offer a Month-to Month Lease

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Questions to Determine if a Landlord Should Offer a Month-to Month Lease

In some cases, month-to-month leases may be a more effective and efficient way to run your property rentals. Here are some questions to ask and help determine if offering a month to month lease option would be beneficial for you. 

Is Eviction Likely?  

Longer-term leases are great to keep residents in your rental for longer, but they also make the eviction process more difficult should it be needed. If there are a large number of potential residents and you are having trouble thoroughly screening them all, starting them out with a month-to-month lease could prove helpful. You can transition responsible tenants to longer-term leases as they gain a positive track record. This creates a win-win situation for the tenant and landlord.  

Do Residents Need Flexibility?  

It is always good for a landlord to know the demographic of the type of renters in their area. Maybe you have a rental in a military town, college town, or near major corporations known to relocate employees regularly. In these types of areas, month-to-month leases make more sense because the majority demographic of renters need short term options.  

When Will the Lease End?  

Will the end of a longer lease hit at a time when it could be difficult to fill an empty rental unit? For example: will the lease end during the holiday season when new rentals are typically slower? If you are renting to a college student, a shorter 9-month lease would be more beneficial than a year-long lease. It would allow the lease to end when the student is out of school for the year and eliminate the need for students to sublet the rest of their lease during the summer or walk away and default if they cannot find a person to sublet or if subletting is prohibited in the lease agreement.  

Are Market Rent Costs Constantly Fluctuating?  

Charging higher rent than other rentals all around you could cause your rental spaces to sit vacant for longer. If you adjust your rent to be more in line with fair market value it will help you to retain renters. Some markets can go through periods where that fair market rent number fluctuates often. If you are in a market where this is happening shorter lease terms may be more helpful. It can allow you to adjust rent rates as the market shifts. In general, renters expect month-to-month leases to be just a bit higher than longer-term leases and this can help a landlord to compensate for any sudden vacancies or the cost of switching tenants. 

Are You Reviewing Your Current Leases?  

Knowing what leases you have, when their term is up, and if they are bringing in good results for you and your tenants is a smart move. Periodically adjusting them to help you to alleviate even minor but consistent headaches with tenants will allow you to continue to landlord with less stress. 

For more helpful tips about being a landlord or help with managing rentals in Savannah and surrounding areas please contact me any time.  

Additional:

Design Trends to Avoid When Renovating Rentals

Should You Install a Smart Thermostat in Your Rentals?

Do Solar Panels Add Value?

What College Students Seek in Rental Properties

Tips for Cleaning Rentals Between Tenants

10 Home Improvement Projects You Should Never DIY

Design Trends to Avoid When Renovating Rentals

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Design Trends to Avoid When Renovating Rentals – Periodically renovating and updating rental properties can be very beneficial. For instance, it can draw a larger pool of buyers and allow you to align your rent prices with the top of the market. Most renters prefer to live in buildings that are well kept and up to date so they will be willing to pay higher rent. If a landlord decides to renovate a property though, there are some home-style trends they will want to steer clear of.  Installing trends that are fleeting will make a building quickly feel outdated. They don’t want to get stuck with having to update again in just a few years’ time.  Design Trends to Avoid When Renovating Rentals

Here are some design trends to avoid when renovating rentals 

  • Granite Countertop

At one point a few years ago everyone had to have a granite countertop. Granite counters are still considered stylish, but with the rate at which they hit the market for demand in just a few more years, they are going to be a thing of the past. There are many other stylish alternatives that will work just as well for a rental if not better.  

For example, there are many high-quality laminates on the market today in colors that would have some people thinking it is natural stone. Laminate is low maintenance as well, there is no yearly cleaning and re-sealing required. A much better choice for a rental property 

Related: 4 Tips to Flip a House

  • White on White

White does make a room feel light and airy and a lot bigger, but it also shows dirt and grime. Unless all-white rooms are kept very clean they look very dirty. There are probably quite a few of us that would say we do not make sure every area of our home is spotless, especially the bathroom and kitchen which take more time. All-white kitchens and bathrooms are popular and modern but they are not practical to install, especially in a place where the people using the property do not own it. Instead, stay with light-colored neutrals that will stand the test of time and grime. 

More: 5 Upgrades to Make and 4 to Skip When Remodeling

  • Going Over Board with Environmentally Friendly

Yes, there are many renters out there who are more interested in renting from a building/company/landlord/organization that is environmentally conscious. There are ways to go overboard and end up not getting any return on your investment for a very long time. So instead of installing those solar panels, rainwater collection units, composting trash compactors, and recycled building materials, start with a few budget-wise smaller upgrades. Use paint without volatile organic compounds, light bulbs and fixtures with energy star labels, and maybe even a smart thermostat to start.  

Once you have done these things make sure to communicate that you did in rental listings. It will bring in more interest. 

More: How to Write an Offer for a Short-Term Rental

  • Wallpaper

Yes, wallpaper is making a resurgence, especially high-end fancy wallpaper. Unless you are running a high-end luxury rental it just might not fit. When wallpaper is once again discovered as a pain to change out it will no longer be a trend. So skip the fancy wallpaper and stick with paint. Most renters prefer walls to have a fresh coat of neutral paint on them anyway so that they have more freedom to bring their own style into the space.  

When it comes to updating rentals the best rule of thumb is to keep it very simple and very neutral in color.  

For more rental property management tips and information or property management services in Savannah please contact me anytime.  

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What Can You Do With Abandoned Tenant Property

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It is not uncommon for a tenant to move out and leave behind a considerable amount of their belongings. There are many horror stories about irresponsible tenants leaving a property in less than ideal condition. While some tenants just leave large amounts of garbage others have left behind things like clothing, furniture, unforwarded mail, and more. Sometimes it’s hard to tell that they even actually moved out.  What Can You Do With Abandoned Tenant Property

The natural response of a landlord faced with left behind tenant property is frustration and a desire to fill up a truck and haul it all off to the dump. Unfortunately, this could lead to legal problems should the tenant return and wonder where their belongings are. The best way to deal with left behind tenant property is to know the state laws. Most state laws require a landlord or property manager to follow a series of required steps to document and control access to anything left behind.  When the proper legal steps and precautions are taken a landlord can safely and confidently dispose of left behind items on their property.  

Related: What to do with property after a divorce?

Laws about how to properly handle left behind tenant property differ from state to state, and can even differ from county to county; so it is hugely important to know the exact laws for the location of each property you own. Here are the general steps to take when dealing with left behind property. 

  1. Ensure that you have control over access to the left behind items. Recover all keys, garage door openers, or change the locks to the rental. Some areas allow personal belongings to be stored in a secure storage unit while others require them to be left as they were on the property. The one thing you do not want to happen is allow the possibility for someone to steal the left behind items as you can face civil and criminal charges.  
  2. When the belongings are secure, you now want to document every item left behind. The best way to do this is to make a detailed video or take photos of every space and make a detailed written list of every item left behind.  
  3. Once you know it is ok to legally move anything left behind it is a smart idea to call in a neutral person to act as a witness to prove that everything was handled properly and without ill intent or theft.  
  4. Another great step to take is to notify the tenant that property was left behind if you have contact information. The best way to inform them is in writing so you can retain a copy and have the most solid proof that you did inform the tenant that they left something behind and how they can go about retrieving it.  
  5. In many areas if you have gone through all of the former steps and the tenant has not attempted to retrieve their belongings it is ok to sell or dispose of the property. Again make sure you know the laws of the land.  

Dealing with left behind property can be very time consuming and even expensive. A great way to deal with left behind property is to hire a property manager, they will have in-depth knowledge of local laws and know what steps to take to properly take care of left behind tenant property. This will save you stress and time and help avoid costly legal battles.  

How to Sell a Property With Tenants

When to Hire a Property Manager?

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If you’re considering buying an investment property you’re also probably wondering whether or not you should be the landlord or hire a property manager. A property manager typically manages multiple properties and can help find the proper tenant, collect rents and schedule any repairs.When to Hire a Property Manager?

As a landlord, doing it yourself means screening tenants, organize showings, collect rents and manage any repairs or replacements yourself. This might be a large job but for property managers, it comes easy because this is their job. They might have the time to invest in getting the right tenant for your property, screening tenants, collecting rents, depositing it in your account and managing all repairs. Property management companies or individual property managers they deal directly with prospects and tenants saving landlords and owners time and stress over marketing the property, handling maintenance and responding to any tenant complaints. They can even pursue evictions and legal issues.

Pro Tip: “You have to run the numbers. If it makes sense to have someone else manage and handle all the stress of a rental, than go for it! Remember, that time is money and your stress level could be worth far more than a couple extra dollars in your pocket.” – Louisville Realtor Joe Hayden

There are many reasons to hire a property manager, not simply to ease the stress of dealing with the property on your own. Perhaps you have a lot of rental properties and their becoming too time-consuming. If you have at least three or four properties that you need to manage, this alone can become at least a part-time job, one in which you may not have the time or energy for. If you have a variety of rental properties, a large rental unit with multiple properties in the building or several houses, it might benefit you to move to a management company or personnel.

Another reason is if you don’t live close to the property. If you live out of state, out of the country or simply a few cities away, it can be difficult to manage properties, collect rents, handle complaints and assess any repairs or maintenance that the property might need. Having a property manager close by to deal with all of these issues is a great way to ease stress and take the burden off of the commute back and forth to and from your property.

Another reason may be that you’re simply not interested in hands-on management. Many landlords and owners love the idea of having a property that they can simply sit back and collect rents from. They can build their portfolio and focus on new rental properties rather than managing existing ones. Of course, the money has to make sense and you want to make sure that there’s more money coming in and going out each month in property management fees and repair costs.

Property managers also assess how much money the property is worth. Because property managers deal with multiple different properties, they can usually tell you what is the fair market value of rents in a particular area. You’re more likely to get a good collection of potential tenants and top dollar for your home. Property managers that have been experience can also suggest repairs, staging tips, ideas and ways to manage the property that would be beneficial to potential prospects and draw more tenants to your property.

Something that a lot of owners may not consider is the use of an affordable housing program. If lenders participate in this affordable housing program, even though it’s beneficial, it can get complicated. These programs allows the landlord to receive financial assistance which may be in the form of a grant, a low-interest loan or tax credits. This is usually in return for agreeing to rent at least part of the property to tenants earning below a certain income level. The landlord must comply with a complicated set of rules but it can be worth it for the right tenant. Because of the situation, it may be more beneficial to hire a property manager that is familiar with these legalities.

If you’re looking to invest in a great property in the Savannah Georgia area or surrounding communities and towns, contact someone that not only is a property manager but also a real estate agent. That agent can help you find the right home in the right neighborhood so that you have a decent rate of return and one that can also manage and handle your rental investments. For more details contact Helen Miltiades Today.

 

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