Why Should You Partner With Simply Residential?

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The real estate industry touches many different professions. To buy a home, a buyer often needs financing and insurance, along with a realtor to help them with the big decision they’re making. Historically, home buyers have had to track down these services independently. At Simply Residential, we’re changing the game.

We strive to provide everything our clients will need to transition from owning their home, to renting it out, to eventually selling it. To do that, we need a large network of partners who can help our clients, and experience added benefits along the way. Here are some of the benefits that we can provide to our partners.

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Want to learn more? Visit our partner page, or email us today!

What Can a Homeowner Do About a Problem Tenant?

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What can you do with a problem tenant

The more time you spend in property management or rental ownership, the more experience you have with nightmare tenants. We don’t come across them frequently, but they are definitely out there. I’ve noticed an up-tick in conversation about bad renters, and quickly realized that there is a lot of misinformation out there. Let me help set the record straight for you: Legally, what can you do with a problem tenant?

First and foremost, your best bet is to avoid a bad tenant from the start. This means you need to screen. Check the prospective tenant’s criminal and credit background and contact all of their previous landlords directly. Sometimes, there are things that don’t show up on reports that you need to know. The more information you have, the more protected you will be.

Once you’ve found the right tenant, the next step to remaining protected is to have an air-tight lease. When the terms are clearly laid out and signed by both parties, there are fewer loop holes and gray areas. For example, your lease must include a “right of re-entry” or eviction clause in order to evict a tenant for a material breach of a lease, with the exception of statutory violations and not paying rent. This is something that will come in handy if you encounter a problem tenant. Even then, the process is long and convoluted.

Once the lease agreement is signed, it’s important to let your renter know you’re serious about the terms you both agreed to. Be strict with the rules. It may feel counter-intuitive to behave this way, but if you let a lot of little things slide, that opens the door up for bigger problems down the line. You should also charge lease violation and late rent fees consistently to help deter renters from making late payments or bending or breaking the rules.

Even with an extravagant amount of precautions being taken, you could still wind up with a bad renter. If that’s the case, you have a few options. If you have a month-to-month lease, you can give them a written 60-day notice to vacate. This is definitely the easiest option, but could result in 60 more days of non-payment or continued disruption of other tenants or destruction of property. Often, the problem tenant is locked into a 6 month or a year-long lease. If this is the case, your best option is eviction.

The Minnesota Housing Association says the following reasons are acceptable for filing an eviction action in the State of Minnesota. If you’re curious to learn more, you can read all tenant/landlord related legal guidelines in Minnesota Statute 504B. It can be found online at revisor.mn.gov.

1. Failure to pay rent. The tenant may redeem the tenancy at any time before possession of the premises has been delivered to the landlord by paying past due rent, costs of the eviction action, including the court filing fee, and other requirements under the lease.

2. Lease violations. The lease must contain a “right of re-entry” or eviction clause for the landlord to evict a tenant for a material breach of a lease, except for nonpayment of rent and statutory violations. This clause gives the landlord a right to evict the tenant for violating lease provisions like disturbing other residents, causing damage to property, unauthorized persons living on the property, or unauthorized pets. To be clear, this is the most difficult reason for eviction because it requires proof that isn’t always readily available. In the event the tenant sues you, it’s likely they’ll win for this kind of eviction because Minnesota is known to be a tenant friendly state.

3. Illegal activities prohibited by Minnesota Statute (504B). A landlord may evict a tenant, or assign the right to the county or city attorney, if the tenant engages in or permits activities named in the statute, such as:

  • unlawful controlled substances in the premises or common area
  • unlawful use or possession of a firearm
  • stolen property in the premises or common area
  • prostitution
  • criminal gang activity

This kind of violation also requires proof to warrant an eviction.

4. Holdover tenant. A holdover tenant is one whose lease has expired or where proper notice to vacate has been given, but the tenant remains in the rental unit without the landlord’s consent.

Eviction is a complicated process, but is unfortunately sometimes the only option available. For this reason, we offer a monthly Eviction Protection Plan to our clients — we handle the whole process and take on the responsibility. If you’re interested in learning more about this optional service, call me at 952-831-5300

Photo credi: Flickr.com

The Real Estate Counter Balance: Rent or Sell?

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The Real Estate Counter Balance Simply Residential Property Management

The real estate industry is something that affects every single person, and for that reason there’s often a plethora of information available from several points of view. While most of this information is provided with the best intentions, it’s often more gossip than fact. Recently there have been quite a few articles claiming that the rental market is exploding right now. Of course, we’re inclined to agree with this statement from a business standpoint, but feel compelled to add a caveat in the interest of full disclosure. While it’s accurate to say that landlords can charge more for rent now than they previously have, these high rents are actually pushing many would-be renters into the buy/sell process.

This phenomenon is what we at Simply Residential call the real estate counter balance. When more people are buying homes, there are fewer renters in the market, and vice versa. This means that it’s advantageous for owners to be strategic and competitive when pricing their rental property in times where the market favors buy/sell. This will get your property more attention from potential renters, and ultimately get it rented faster. The faster a tenant is placed in your property, the sooner you start to see the financial benefits of your rental property.

As a property owner or investor, it’s difficult to know whom to trust in situations like this one. There’s quite a bit of conflicting information out there, and it’s hard to know what to believe. Luckily, owners and investors that work with a quality property management company like Simply Residential Property Management, have a partner to help them sort these things out. After all, that’s our job. Did you know that we perform a rental analysis for every lease agreement renewal? That way we can make sure that our clients are getting the most return on their investment.

The benefit of working with a local property management company is that they also have an intimate knowledge of specific markets. We live and work in the Twin Cities and surrounding communities and are able to understand certain nuances that often help us get properties rented faster.

Do you have questions about the value of your rental property, or are you contemplating what your next steps will be? We’re here for you! Call us today and let’s talk: 952-831-5300.

Ask SRPM: How Do We Find You a Quality Renter for Free?

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free renter placement service

Finding a good renter sounds like an easy enough process — you make a list of qualifications, and compare that list to the qualifications of interested potential renters, right? Not exactly. While those steps are certainly a part of the process, there’s a lot more that goes into finding the right renter for your property than what meets the eye.

At Simply Residential Property Management, we offer free renter placement services as part of our management agreement, but we also offer placement services on their own to rental property owners who choose to self manage. Every property management company goes about finding tenants in their own way. Here’s how we do it at SRPM:

1. The first step in renting out your property is marketing — spreading the word that your awesome rental property is available. We aggressively market your property on over 170 websites, and partner with a broad network of realtors and relocation companies to further expand our reach. We do showings 7 days a week, days and evenings, whenever it’s convenient for potential renters to see your property.

2. Once we show your property, tenants begin the application process. We have a strict set of renter criteria that each potential tenant must measure up to before they’re considered for your property.

3. When potential tenants pass our criteria check and fill out a full application, we do full background checks on each person named on the lease, including criminal, credit, income verification and past tenant rental history. We leave no stone unturned when it comes to ensuring we find the best renters possible for your property. We feel so strongly about this part of the process that we guarantee our renters for the first year they’re in your property — if they don’t work out, we’ll find  a new one and cover the marketing costs ourselves.

4. If an interested potential renter fits all of our criteria and passes our extensive background checks, we draft a lease agreement that protects your interests as an owner, and theirs as a renter. This lease is a binding contract that ensures that the terms of the rental agreement are honored under penalty of fines, or even eviction if the renter fails to adhere to the rules.

5. Lastly, before the renter moves in, we have a 30-step internal checklist to ensure that every aspect of our processes have been covered for your protection. In addition, we have a 72 point move-in walk-through that we adhere to with the tenant present. We thoroughly check every possible aspect of your home for existing damage prior to their move-in date, and document with photos. Once the inspection is completed, the tenant and our maintenance technician sign the document together, ensuring each party is aware of any existing damage and agrees to the assessments made in the document.

Finding a renter on your own can be tough. Working with a property management company like Simply Residential makes it easier, we take on the heavy lifting and you get the advantage of our broad network of partners, marketing resources, and full time staff working for you. If you’re looking for a renter for an existing rental property, or just have questions about the rest of our processes, contact us today! 

Renter Placement vs. Property Management: What’s the Difference?

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placement vs property management featured image (1)

Many property management companies, like Simply Residential, offer both property management and renter placement services. For this reason, we often encounter questions about what a homeowner truly needs in order to rent out their home — do they need a property management service, or do they just need someone to help them find a renter? The right solution can often be found by a quick discussion about resources. Essentially, if you plan to use a renter placement service, you’re taking all legal responsibility for that lease agreement upon yourself once the renter has signed it. Property management services are different. For example, at Simply Residential, we don’t charge for renter placement with a management agreement, and we take on all risk and liability from a legal standpoint by actually signing the lease with the tenant.

do you need property management or renter placement

There are a few more distinguishing factors between renter placement and property management that have helped our clients decide what is best for them. Let’s start with the basics.

What is Renter Placement?

There is more to renter placement than you might anticipate right off the bat. This service should include marketing your property to help get the attention of prospective renters, screening applicants through criminal background and credit checks, and ultimately choosing which renter will be best for your rental property. That is the extent of the scope of a renter placement service.

If you feel confident taking on legal responsibility, even in the event of an eviction, and are able to draft a solid lease, this could be a good option for you. Keep in mind, there are going to be maintenance needs and emergencies that will arise during the time you rent out your home, so be prepared for those situations as well.

What is property management?

Property management services can vary from company to company. When we talk about property management at Simply Residential, we’re referring to the services that we provide to our clients, and they may not be the same as another company’s services. Generally speaking, property management covers the services provided by renter placement and adds on maintenance services, rent collection, lease signing and renewals, and anything else you may request in the management of your property.

Ultimately, the majority of our clients choose to take advantage of our property management services for the peace of mind they allow. It’s good to know that someone has things under control in your rental property, especially when you have other things going on that require your attention. After all, being a landlord is a big job, and nobody likes late-night maintenance emergencies and tracking down tenants for late rent. Those are the kind of details we thrive on at Simply Residential.

If you’re curious to find out what services you need, take our new quiz! Otherwise, give me a call at 952-831-5300 — I’m happy to discuss options and services with you for a more personalized set of information.

The Facts About Security Deposits

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In the nearly ten years I’ve been in the property management business, I’ve helped my clients circumvent the myriad of lawsuits that seem to stem from one simple location — the security deposit. Of all the litigation that could possibly arise from the landlord/tenant relationship, this single factor has caused the most grief for the former. The argument mostly comes down to what is considered normal wear and tear, and what is considered excessive damage. Who is responsible for these damages? Luckily, we have the experience to protect the best interests of our clients. Here’s what we do to ensure that your investment, and your reputation, remain in good condition.

As a rule, property owners are responsible for normal wear and tear. This means that as a landlord, you may not use your tenant’s security deposit to perform routine maintenance or repair damage related to normal use. For example, if it’s your policy to paint or clean carpets between each move-out and move-in, that can’t be taken out of the renter’s’ security deposit. The trick with this language is that it’s fairly open for interpretation — just like there’s no baseline ‘normal’ standard for most things in life. A good metric is to consider whether the damage was caused intentionally or through reckless behavior, or if it’s simply from normal use of high-traffic areas. For example, small nicks and chips in paint on the wall, small holes from nails and pins, loose grouting and bathroom tiles, faded or thin carpet from foot traffic, or sun-faded curtains or lampshades are considered normal wear and tear. These things would have happened no matter what tenant was in your home, to a certain extent.

Alternatively, tenants are responsible for excessive damage. This damage is typically caused by abuse or negligence. In these cases, it’s perfectly acceptable to withhold some or all of the tenant’s security deposit to reasonably cover the cost of repairs. A few examples of excessive damage include large holes in the walls, broken windows, removed or missing fixtures, water damage on the walls from hanging plants, doors removed from hinges, or appliances malfunctioning from improper use. While much of this may seem like common sense, I’ve learned through experience to not take chances when it comes to ensuring that your property is protected.

Minnesota happens to be a tenant-friendly state as far as the courts are concerned, so it’s important to be extra vigilant. Especially with the language written in the state statute:

“The landlord may withhold from the deposit only amounts reasonably necessary:

  • (1) to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement; or
  • (2) to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted.
    • (c) In any action concerning the deposit, the burden of proving, by a fair preponderance of the evidence, the reason for withholding all or any portion of the deposit shall be on the landlord.”

For this reason, your best friend will always be ample evidence of the condition of your property. The burden of proof is on the owner. That’s why I always advise our new clients, or current clients bringing us new properties, to take photos independently of the condition of their property before anyone else has the chance to touch it. Of course, we always take photos of the property before any tenants move in, sometimes even upwards of 100. That’s also the time when we do a walk-through before the tenants move in. We have a thorough, room by room, floor to ceiling checklist that allows us to document the condition of your property in its entirety, and the tenant signs off on it. We repeat that same process when the tenants move out. This way, the risk of a lawsuit or complaint is mitigated. Even in the event charges are brought about, you’ll have enough documentation to make a strong case, including documentation that the tenant was present and agreed with the damages listed in the walk-through process. Additionally, doing walk-throughs with the tenant sometimes helps add a level of accountability that can dissuade them from doing something irresponsible and potentially damaging to your property.

Since protecting the best interests of our clients is our number one priority, we offer quarterly furnace filter changes and property walk-throughs, so we can help identify any potential lease violations or maintenance concerns before they become irreparable. Prevention, in our opinion, is always better than avoidable and expensive repairs. If you want to hear more about this optional service, contact us today at 952-893-9900!

[Image credit: Tax Credits]

6 Tips for Advertising Your Rental Property [Infographic]

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6 tips for advertising your rental property (1)

Finding the right tenant for your rental property can be a challenge. These 6 tips can help you understand how to advertise your property to attract a great selection of renters.

1. Take awesome photos. Good photos can help bring your property to life, finding the best angles and showing off its best features. Try to make sure there are at least eight photos of your property, including a few exterior shots. It may be worth looking into hiring a professional.

2. Include a floor plan. Understanding the layout of your rental property will allow potential renters to visualize the space as their own.

3. Include details about local amenities. If your property is conveniently located near to schools, hospitals or shops, then say so. Features like quick access to public transit and shops can massively increase a property’s appeal.

4. Know your audience. Look at what types of property appeal to which kinds of people. For example, If your property is located in a student area, then tailor your message to emphasize the requirements you believe they will prioritize.

5. Be realistic about rent. Charging too much for rent can result in extended vacancies, leading to a loss of profit. Conversely, charging too little for rent can make you miss out on your max ROI.

6. Hire a management company. When you work with a property management company like Simply Residential, they handle the advertising from strategy through execution, leaving you with more free time to enjoy your earnings.

Advertising is key to the success of your property investment — make sure you’re doing it right! If you have questions about how to market your property, or want some help getting all the steps right, let’s talk: 952-831-5300!

Pets in Your Rental Property: Lovable or Liability? [Infographic]

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Pets Infographic SRPM (4)

Whether or not you should allow pets in your rental property is a big decision. On one hand, irresponsible pet owners can cause more than their fair share of damage, and even well-behaved pets can have bad days. On the other hand, allowing pets in your rental home opens up a larger variety of potential tenants, and allows the property owner to charge more in monthly rent and in pet deposits.

At Simply Residential, we’ve worked with homeowners who allow pets, and those who don’t. This question comes up often. While we don’t have an official stance either way, we have found some helpful research. The infographic to the right details the current state of renting to pet owners.

Minneapolis and St. Paul are considered among the top 25 pet friendly cities for renters in the country, although comparatively fewer rental properties allow pets than there are renters who own pets. One of the most important things to remember when considering, or reconsidering, your pet policy is the anticipated amount of damage. This damage and the associated costs are often offset by a pet deposit and monthly pet rent. That information will tell you what the best and worst case financial situations will be if/when you decide to allow pets in your property.

To get a better understanding of what those numbers look like, contact us! We’re happy to discuss the pros and cons of renting to pet owners. Call us at 952.893.9900!

This article was originally published in Simply Residential Property Management Magazine.

3 Key Benefits of a Property Management Contract

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property management contract

As consumers, we’re used to seeing ‘no contract’ as a benefit. Many of us even have our own horror stories about service contracts we’ve signed in the past — whether that’s for cell phone service, massage or beauty services, joining a gym, or simply getting water delivered to your office. Believe it or not, there are certainly still situations in which a contract is not only helpful, but necessary. It’s important to think critically about this concept when you’re making purchasing decisions — the first question you need to ask yourself is who is truly benefiting from the lack of contract, the consumer or the vendor?

When it comes to big purchases and big decisions, especially in the case of investments, you should take every precaution to ensure you’re protected. Your home is arguably one of the most important investments you’ll make, and it’s always in your best interest to protect that investment as well as you can. If you decide to work with a property management company and don’t sign a management contract, how can you really know that they’ll live up to your expectations and fulfill their duties and commitments? Before you make that decision, I want to tell you about three key benefits of entering into a contact with your property management company.

Protection

There’s a strange phenomenon between some property management companies that operate in Minnesota where they charge rental property owners the first month’s rent when they begin managing a new property as a placement fee. That’s not typical for the industry. Without a contract, especially if you’re paying up-front fees, what’s the company’s incentive to truly take care of your property? If you don’t sign a mutual agreement, you’re unprotected and so is your investment. Just like any big decision you make, especially one that relies on the promise of future services, it’s good business to get it in writing. You can hold your service provider accountable for the promises they make when you have them in writing, which leads me to the second benefit.

Accountability

Some property management companies run their sales process like politicians run their campaigns — they’ll tell you what you want to hear, but there’s no actual obligation to deliver. When you enter into a contract, the benefits and services promised are guaranteed in writing. That allows the property owner to hold their management company accountable for what they said they’d do. If you don’t sign an agreement, it doesn’t matter what was promised to you. If it’s not in writing, it doesn’t count — plain and simple.

Clarity

Deciding to rent out your property can be confusing, especially if it’s your first time. There are a lot of considerations that need to be made and some that aren’t immediately apparent. Your management contract should function as a guide through the process — what concerns can arise and how they’ll be dealt with. This will also help you decide what maintenance you want your renters to be in charge of, like mowing the lawn or removing snow, and what you want to take care of yourself or have your management company handle, like blowing out your sprinkler system or changing your furnace filter. When these considerations are put in writing, there’s no room for confusion.

While not being locked into a contract may be a benefit in some situations, it’s irresponsible to not sign one with  your property management company. Especially if you’re paying them up front costs for the promise of future services. In many cases, you’re not going to encounter trouble, but is it really worth the risk of being unprotected in the event something goes wrong? Personally, I’d rather be protected.

If you want to hear more about our property management services, give me a call and let’s chat: 952-831-5300!

How to Maximize Your Rental Property’s Curb Appeal

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curb-appeal-residential-property-management

It’s common knowledge that first impressions are important, and that you never get a second chance to make it a great one. This fact holds true for your rental property as well. When prospective tenants first arrive at your property, many will have already made a decision about whether or not they like it by the time the get to the front door. While having a warm, welcoming interior is a must, your property must also have a certain degree of curb appeal to inspire potential renters to get inside in the first place. So, how do you up your curb appeal? Here are a few easy steps.

Clean Up Your Act

A clean rental property is a happy rental property! When considering your curb appeal, take a the following into consideration: Is your property in need of a new coat of paint? Do the windows need washing? Is the lawn trimmed to a level that makes your property look lived in? As simple as they are, these factors can mean the difference between a tenant walking away or putting down a deposit there and then.

It’s OK to Be Garden Variety, Sometimes

Not all of us have green thumbs, but if you happened to be blessed with the talent, having a garden at your rental property will make it look beautiful to future renters and will also add value to the property itself. Bright flowers, an open garden plan and a well maintained lawn can all go a long way in ensuring those viewing your home can see themselves living there. If you’re less inclined to garden, simple hanging plants or even some cool new landscaping can also improve the perception of your property right off the bat.

Don’t Keep Up with the Joneses

While you can make the exterior of your own property stand out with just a few quick improvements, it’s more difficult when it’s your neighbor’s property that stands out for the wrong reasons. Sometimes you’ll have a neighbor that finds stray auto parts and yard gnomes to be the cutting edge in exterior design. There’s not a lot you can do in the way of improving their taste in decor, but you can find a way to help detract the attention of your prospective tenant from the neighbor’s home to your own. If it’s truly terrible, you may want to consider erecting a partition or fence to help block the view from your yard.

The Rental Property Golden Rule

On the same ticket as ‘treat others how you’d like to be treated’ — make your rental property a place that you’d enjoy renting yourself. Remember, the same reason this property seemed so appealing you in the first place could be the same reason tenants want to live in it. When trying to increase your property’s curb appeal, think of what would make it more enticing to you. A garden chair swing, hammock or built in barbecue could add that extra allure to prospective renters.

Deciding how much time and money you spend on your property’s curb appeal is up to you, but my experience in residential property management has taught me that the more time and care you put into the exterior of your rental home, the more appealing your property is likely to be. If you’re wondering if updating your landscaping or sprucing up your paint job would be helpful for your rental, I’m here to help — leave a note in the comments or give me a call at 952-831-5300.

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