This arrangement made me happy. Occupancy is better than vacancy anyway, even if it starts on an unusual day. When I first met the new tenant it was already three weeks deep into the calendar month. It was already around the 20^th and I never expected any occupancy during that time of the month. The new tenant would move-in on the first of the following month if I could fill the spot, I assumed.

I found an even better arrangement, luckily. I was thrilled when I found a tenant who was willing to move in right away. ( I checked his references and work history to be sure that he was a qualified tenant — that should go without saying.)

I said yes when he asked if I’d prorate the rent for that first month. A security deposit was paid plus approximately one-and-a-half weeks’ rent (we calculated the daily rate). I handed him the keys, and we continued with our lives, happily ever after.

The end.

Or Is It?

In hindsight, I may have gotten lucky. In my experience, I happened to have a reliable tenant who paid a full month’s rent on the first of the following month. He was tidy, reserved and always paid on-time on his entire tenancy that’s why when he moved out of state I was sad to lose such a quality renter.

But what if I hadn’t been so lucky? What if I had allowed someone to move-in and establish tenancy … at the cost of roughly a single weeks’ rent?

What if he hadn’t paid the following months’ rent?

Looking back on that situation, I think I should have prorated the rent differently.

Here’s What I Did:

Month 1: Collect prorated rent (plus deposit)

Month 2 – 12: Collect full rent

Here’s What I Should Have Done Instead:

Month 1: Ask for a full months’ rent at move-in (plus deposit)

Month 2: Allow tenant to pay prorated rent for this month

Month 3 – 12: Collect full rent as normal

Why? What Would Be The Advantage To Setting Up (And Trying To Explain) This Complicated System?

Simply put: the more you collect upfront, the better. If the tenant decided to skip out on paying rent, and I had to let them move out, I’d at least have a full months’ rent in hand.

You might think that I’m being paranoid or excessive, and I can see two valid reasons that would support your thought. First, at the first few months many problem tenants will show good behavior. They begin to slip after that. So there’s a good chance that the scenario I’m describing is a low-likelihood situation. Second, if someone lives in your dwelling for less than 30 days, then depending on the laws in your place, you might have an easier time evicting that person.

The post Tips on how to Prorate Rent The Correct Way! appeared first on Frisco House Search.

Tenant law in most states is knowingly brief, the phrase “ordinary wear and tear” continues to be a highly debated topic. As per Halt, a legal reform group, all states permit a landlord to demand a security deposit, but the amount should be given back as long as the tenant vacates the property in its original condition, less normal wear and tear.

Assertive life

If a renter lives aggressively and causes destruction beyond normal use, a landlord has a reason to charge the renter for the destruction. This may include any harm caused by the renter, his visitors or pets.

Wear and Tear against damages

Burned or stained carpeting is damage while entangled carpet is wear and tear. Big holes in the walls mean damages while a few small nail holes is wear and tear; Wide stains on the walls is damage while fading or yellowing of paint is wear and tear. Other signals of day to day wear and tear are tattered electrical switches, loose wallpaper, faded curtains and dirty window screens. Time and daily use can cause these things to become tattered and don’t constitute damages.

Remain in control of the situation

One way to prevent causing damage it to remain in control of typical maintenance issues as they come, rather then granting them to cause problems. For example, if you have a dripping kitchen pipe, contact your landlord and have it fixed before it causes the wood under the sink to rot. If you have a broken window that enables rain to blow in, have it rectified before it destroys the woodwork around the window or the flooring. Nipping your predicament in the bud can avoid wear and tear from turning into damage

Be Secure

Roam around the property with your landlord before transferring. Take down notes of any existing issue and take pictures of every noticeable problem, even if it seems small. Do another tour with your landlord before moving out and request him to carefully inspect the property. He should give you a chance to fix any problems before charging you for them. Once again, take pictures of anything interesting. The thought is to be able to justify that any changes to the home are due to wear and tear and that you have not destroyed the property in any way.

Claim you rights

If the landlord charged damages from your security deposit after you moved out, and you know that it’s a normal wear and tear, send him a notice. Send a mail, requesting for your security deposit and provide pictures as evidence that you did not destroy the property. If the landlord doesn’t reply, you can take him to your local small claims court. If the property has been taken care of and you moved out without causing any damage, you have the right to contend for your deposit by supplying the court with evidence of everyday wear and tear.

The post Definition of normal wear and tear on rental homes appeared first on Frisco House Search.

Others know the method because they have been tenants for years. For some, it might be the first time that they’re apart from their parents and on their own. Whatever their leasing history may be, here are the lists of things every renter should know.

1. A tenant’s insurance is needed

Renters should know that worst situations happen and that the landlords insurance policy will not cover their loses. Tenant’s insurance is affordable and worth the money.

2.I do have bills to settle also

The manner I settle those bills is with the lease you pay me. I have listened to your sob stories and sadly there is nothing I can say to the bank that will get them to cut me a break. So I really apologize if it seem like a hard ass, but your lease is due when your lease is due.

3. I will not attempt and take Advantage of You

It is not in my best interest to do so. Turnover kills my bottom line so I want a long and ordinary landlord/tenant partnership. I will not attain that if I am always trying to get one over on you. If you respect me and my property, I will do the same to you.

4. If there are things that need to be fixed, inform me immediately

My repair men want to take a break during weekends. If you wait until Friday afternoon to inform me that your air condition is not working, guess what you will not have this weekend.

5.I will repair things so please contact me.

It is in my best interest to repair things and maintain my property. Small repairs if not fixed immediately will at some point add up to huge repairs and big money. I don’t want to spend big money. So contact me about the small things and I will fix them.

       6. Your neighbors don’t want noisy music

Remember when you protested to me about your neighbors noisy music? It is a two way street.

7. There are problems that are difficult to solve

It may take some time and might not get fixed immediately. We might need to wait on a part. For a number of days, we may need to diagnose and trouble shoot .It may look like we are doing nothing, but we are doing our best to rectify the problem. Just be patient.

8. Disorder creates more disorder

Those pests you called to complain about, well I checked it and noticed the overflowing trash can and pile of unwashed dishes in the sink. Let’s make sure to clean that first and then we will discuss about the bug situation.

Like I mentioned, renters come with a number of experiences behind them. Others are timorous or shy and don’t want to make a complaint. While some have been deceived by their last landlord. Some have just never been exposed in the real world and not had momma to clean up after them. As a landlord you will encounter all kinds. No matter what type you lease to, see to it they obtain the above list.

The post Eight important things, every renter should be aware of! appeared first on Frisco House Search.

There are a lot of reasons to recruit a property management company. You may have bought too many properties to keep up with yourself or you may have bought a property out of town. Regardless of the reason there is one important fact that you should bear in mind, they work for you.

Research is the key when looking to hire. If you were the recruitment manager at major corporations you wouldn’t consider the first man or woman off the street without knowing their background would you? If you did, you’d be taking a very silly risk and probably wouldn’t be the recruitment manager very long. When you’re searching for a property management company, you are hiring an employee. You’ll want to know what you’re searching for, ask for references and then sit down to conduct an interview and see if you both match up.

You won’t fit every company as well as not every company will fit you. Trying to make it work when it should have been obvious from the beginning that it just wasn’t a good fit is silly at best. Doing the research that you should do will help you find that company that will fit you. Once you’ve hired the company, if they do not meet expectations, you are within your rights to dismiss them and find someone new. This can be tiresome as the turnover to a new management company can be disappointing and taxing, but in the end you’ll feel better knowing that you have someone in your team that you can trust. There’s no point in hiring a company to handle your management issues if you have to micromanage them just to get the job done.

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Screening tenants is important to be aware of those drug offenders. While not every individual that prepares or use drugs will be in the system, there may be some warnings to display that they are less than outstanding prospects for your rental home. Verify their credit history to make sure that they pay on time and check if they have a criminal record. This will protect you, your rental home and those around it. Savage tenants can be a big problem and you don’t want it to get out of control. While some landlords are more compassionate in the kinds of criminal backgrounds that they’ll make allowances for, sometimes it’s ideal to err on the side of caution.

The post Property inspection is a great help for landlords, it can save you money! appeared first on Frisco House Search.

Basis in considering a property manager

Possibility of bigger income:

A good property manager has more knowledge with other rental homes in your area. They have the experience and access to the MLS in order to determine what home or apartment could be leased for.

Great tenant screening procedure:

Screening for great tenants is a significant procedure. It can be pretty expensive to get rid of faulty tenants. It can also be expensive if you need  to replace renters in a short amount of time. There is a great chance of rental increase.

Landlords always fail to take into consideration what the current rental price are . If a home has been rented for a long period of time, there is no need for rental increase.

Well timed and  practical repairs

Regular maintenance and timely fixing are significant in maintaining the worth and rentability of your property. To make sure that the properties are taking care of, a smart property manager will likely to administer a regular inspection. A standard maintenance is also scheduled.

I’m on my own- Landlord

I have been managing my own property for decades. In previous years, I am being convinced that recruiting a property management company may be a better direction. There is some stuff going for being your own landlord.

It might be cheaper

It may be cheaper if the landlord is getting market leases and appropriately screening the renters. Basically those are big if’s that maybe a lot of landlords fall short on.

Cheaper repairs

If a landlord is a repairman and has experience with different kinds of repairs, saving money is a possibility. You need to also assess the amount of time spent in doing such repairs. It may cost materials and more time than several landlords think.

“I’m on my own Landlord’’ that is becoming older and is considering the assistance of property management.

The post A property manager or on my own- landlord! appeared first on Frisco House Search.

To extinguish disputes in the future, a smart tenant would record the condition of the house before transferring. For each property, make a rental checklist with complete notes. Talk to your landlord and encourage him on finalizing the checklist together. Make sure to take photos of each room or appliance, take nearby pictures on anything damaged or questionable. Right after you’ve finalized the inspection checklist, submit a copy to the landlord and keep the original for comparison once you move out.

External Part of the Rental Property

Make sure that before you move in, take note of those existing damages to the external part of the property so that you will not held responsible for it. Begin with the main door, doorbell or knocker, locks, light fixtures and entryway. Examine the patio, terrace, garage door, mailbox and stairs, if any. You may also inspect other external parts like hot tub or rock wall.

Living Space

Make sure to examine the common living areas like living rooms, bedrooms and dining room. Verify the condition of the doors, walls and floors, including carpet. Inspect the windows as well, including screens, curtain rods or blinds and locking mechanisms. Don’t forget to also check the light fixtures, electrical fixtures and closet doors. Check the fireplace as well. If the house is well furnished, document any furniture conditions.

Inspection of Bathrooms and Kitchen

When examining the kitchen and the bathroom, it includes lots of fixtures and appliances so make sure to give extra time. See to it that you add detailed notes for each room’s distinctive features. Inspect the cooking range, oven, refrigerator, microwave, sink, disposal, counter tops and cabinets in the kitchen. Examine the sink, toilet, towel rods, bathtub, shower and vanity in the bathroom. Attentively document the condition of the caulking around sinks, tubs and toilets in the bathroom. Record any proof of previous water damage on the walls or floor.

Inspection of Utility Room or Basement

Give an extra time to check the condition of the appliances in the basement or utility room, including the most expensive appliances. You might end up replacing those. Document the condition of the washer and dryer, water heater and furnace. This will also be a great time to create notes about the smoke detectors surrounding the rental home.

The post An Effective Rental Checklist for Landlords and Tenants! appeared first on Frisco House Search.

In Texas, is there a maximum amount of security deposit that a landlord can impose?

There is no limitation to the security deposit that a landlord can impose to its tenant.

How should you keep the security deposit in Texas?

In the state of Texas, there aren’t any requirements on how a landlord should keep a security deposit.

Once you receive the security deposit, is a written note required in Texas?

No need for the landlord to issue an official receipt after he received the security deposit.

What are the reasons where  a landlord can store a renter’s security deposit?

In Texas,a landlord can only store a renter’s security deposit with the following reasons:

• If there’s a breach of lease, specific fees are imposed
• An excess damage of normal wear and tear
• If a renter decides to ‘’ live-out’’ their security deposit as last month’s rent, the renter might be responsible to pay the landlord three times the amount and any of the landlord’s attorney fees.
• If a renter failed to inform the landlord in advance that he/she is vacating the property and if its specified in the lease that a failure to provide an advanced notice will result in the tenant losing their right to the security deposit.

a. If the renter has breached their lease however obtains an ‘’excellent’’ replacement tenant who will move-in on or before the lease ends,       the renter will still be eligible to the return of their security deposit less any extra charges.
b. If an ‘’excellent” replacement tenant was obtained by the landlord and will move-in on or before the lease ends, the landlord can still subtract the expenses sustained from finding the replacement tenant including time consumed in this work. If the leasing agreement covered a lease cancellation fee, the landlord is still allowed to impose this fee to the renter.

In Texas, Is a walk-through inspection required?

Before a renter moves out, a walk through inspection is not required

When should you return a renter’s security deposit in Texas?

In the state of Texas, the landlord is given 30 days from the date the tenant moves-out to give the tenant’s security deposit back. An exception to this rule is if a renter had not given a forwarding address. In this scenario, a landlord doesn’t need to make an attempt to give back a security deposit until the tenant provides the landlord with his or her forwarding address.

If deductions has been made by the landlord to the renter’s security deposit, An itemized receipt shall be given to the renter indicating all the damages and repair cost that was deducted from the security deposit. However if a tenant owes the landlord rent at lease termination and there is no inconsistency regarding the amount of rent owed, the landlord is not obliged to include this list.

If a landlord decides to unlawfully withhold a tenant’s security deposit, the landlord might be held liable, three times the amount of deposit withheld in addition to the attorney fees. If the landlord does not give a written note of any damages for the portion of security withheld, the landlord loses the right to keep any of the security deposit and may have to pay any attorney fees the tenant sustained in trying to recover their deposit.

If you decide to sell your property, what happens to the security deposit?

If you sell your property or the property otherwise changes ownership, it’s your obligation to transfer the security deposits to the new owner. You will be responsible for these deposits until the new owner provides a signed written notice to the tenants telling them that they are now in possession of the security deposits and the accurate amount of security deposit received. Once this notice is provided, the new owner is solely accountable for the security deposits.

The post Things to know about Security Deposits in Texas! appeared first on Frisco House Search.

To protect yourself from unpredicted cost, make sure you have the right tenant. Your tenants should have great credit score, a stable income        ( enough to pay the rent) and you can also seek advise from other landlords. Basically these kind of tenants, are those that would take care of your property, would pay the rent periodically and would be a likeable neighbor. In order to find the perfect tenant, an intensive screening should be done. Without the screening process, this might cost you money.

Once you accept the tenant, both of you should have a better understanding about the laws that governs your relationship. Abide with the federal or local laws cause you might pay fines or get yourself into legal trouble. Being unaware will not excuse you from the housing laws.

Remember to reply promptly to any maintenance request. An inactive reply might annoy tenants or it can also create big problems that neither of you would want to cope with. A good communication is important between you and the tenants, so that you can address their concerns right away.

The post In Rental Business, you should avoid disastrous mistakes! appeared first on Frisco House Search.

You may have an easier time being choosy as to the kind of applicants you will consider when you are in a booming rental market. While some things are federally and state regulated so that you may not use it to determine if you’d like the applicant to become your newest tenant, in most cases if the applicant has a pet is not one of them. Damaged properties by the pets can never be avoided. They may tear up carpet, hardwood floors, blinds, and any other number of things. It’s often a good practice to detail out in the lease how many may reside on the property and how much you charge for a pet deposit and, if you choose, pet rent, if you allow pets. This will assist you in solving the costs and repairs that you may need when the tenant moves out while having your built-in bookshelf chewed by his dog named Fido.

In the property, you should know what kind of animals resides there. Some landlords choose to avoid certain breeds, letting them sign waivers upon move in that release the landlord/property manager from any responsibility if the pet should get loose and cause harm or injury to a neighbor or neighbor’s property will be a good idea.

So that you can protect your property, enforcing pet clauses is important. If you decide to allow pets or not, you should explain everything out in the lease that both you and the tenant sign before they transfer in. Make sure they understand the rules for the property so that they cannot claim ignorance later on.

The post Pets in rental properties! appeared first on Frisco House Search.