KGC Properties LLC ~ Property Management & Real Estate In Tucson!

Required? Mind Your Manners And Use That Word Carefully!

Wed, 24 Apr 2013 06:28:04 -0700

Two weeks ago, I placed a home up for rent. My phone rang off the hook - tons of calls from prospective tenants.

Did I answer each call? No. Did many go to voice mail? Yes. Did I return all the calls? No.

Last night, I was able to answer a few calls - one in particular from a lady who apparently called "numerous times - left messages - and how unprofessional and what nerve I have not to call her back." I entertained the call for a short time - enough to let her know that there are many reasons why phone calls aren't returned- here are some of them:

the caller mumbles and the number is unclear
the caller leaves only half the number
tons of calls on a property come in and all of them just haven't been returned yet

The lady responded with this: "You are unprofessional and by law are required to call people back in the same day." She went on to say, "You are also required to show the home at my request." Required. That's a big word and should be used with caution. I do not argue with people, and politely hung up.

There are lots of things property managers are required to do - but returning every phone call is not a requirement.

For prospective tenants here are some other things property managers are not required to do:

Debate or argue about sense of entitlement and put up with attitude and poor use of the English language.
Drop everything to run over and meet interested folks just because they are standing in front of the rental home.
Show a home to everyone who calls about it - just because they want to see it.
Scroll through caller ID to find your number because though you left a name - you didn't leave a number

If you are interested in renting a home - mind your phone manners! Be professional, speak clearly when leaving a message, leave your phone number (twice is always nice!), treat the property manager with respect and be prepared to put forth your best first impression! And, this doesn't just apply when you are calling about rentals - it applies in general!

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2011. If you want to reprint parts of this - just email me for my permission:TucsonsRealEstate@gmail.com.

If My Rent Goes Up - Does Everything Else?

Wed, 03 Apr 2013 06:17:17 -0700

First - EVERY STATE HAS DIFFERENT LANDLORD TENANT LAWS - make sure to know what is legal in your state - this post is general information.

On a lighter note - just because your landlord raises your rent - doesn't mean they will raise the quality or make improvements to the unit you live in!

Now the post- if your landlord increases your rent - does that mean they can increase everything else, i.e., security deposits, last month's rent, etc.?

Probably! Typically, if landlords increase rent - they also increase security deposits and last month's rent (if you paid it) to equal the new rent. BUT it must come with proper notice, be in writing, in accordance with your current lease, and unless a provision in your lease states otherwise, rent and deposit increases take effect and must be collected when a new lease is signed.

In Arizona, a landlord can increase your security deposit at the same time your rent is increased but it has to be in writing - and the amount of security deposit a landlord can collect is one and one-half the rent amount.

In these circumstances, here is what a landlord typically cannot do:

Raise your rent during the current leases term (unless there is a provision in your current lease that allows it)
Collect a higher last months at another time other than when the new lease is signed. In other words, if the landlord didn't ask for additional money upfront to put towards your last month's rent deposit, they can't come back later and ask for it.
Deduct rent increases that weren't in writing or collected ahead of time - out of the security deposit when a tenant moves out.

On another side note, in Arizona (and this is different for every state so check your laws), tenants cannot collect, be reimbursed or apply interest earned on security deposits toward last months rent. Interest earned on these monies legally belongs to the holder of the bank account, aka, the landlord.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Another Reason For Declining Tucson Rents? Fewer Evictions.

Mon, 25 Mar 2013 05:23:14 -0700

There are many reasons why rent rates have dropped here in Tucson that include:

Investors buying up Tucson foreclosures and turning them into rentals.
Investors and developers building apartment complexes in several new locations around Tucson.
US Census figures from 2012 show that approximately 118,326 Tucson homes are occupied by renters.

Some recent statistics about Tucson evictions report:

In 2009, Pima County had over 15,000 eviction filings – in 2011, just about 11,000 were filed.
On average, Pima County has about 1050 eviction filing per month.

What does this all mean? Landlords are figuring out it is better to price rents competitively, keep their current tenants happy, and if you have a difficult tenant, it is better to work with them rather than go straight for eviction at first signs of problems.

Being a landlord for numerous years, I’ve noticed rents are typically late in December, January and February. Why? I think it’s because people always spend money and max themselves out during holiday times. And, it appears to fit with Pima County data, January, February and March have the highest number of eviction filings.

Best advice, keep your rents affordable, maintain good communication with your tenants, and encourage them to call you to keep you posted if they are having financial problems so you are prepared and can develop a plan.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Tucson Rental Market - January 2013

Tue, 19 Feb 2013 08:23:35 -0800

Often, I get asked, "What are rents like these days?" Competitive is usually my answer.

Here is a graph outling the average monthly rent for several areas around Tucson:

As you can see, the rents are not as diverse as they have been in the past. There are many reasons why rents have stabled out in Tucson such as home prices are low and many renters find that a mortgage is cheaper than renting in some cases, there are a lot of rentals on the market making pricing more competitive, etc.

Recently in Tucson, high rents are becoming a thing of the past - many owners who insist on keeping their rental rates high find that the home remains vacant because tenants find comparable homes at cheaper prices. As a result, they have a choice - either keep it vacant or drop the rent price.

If you are an investor, price your rent right. The best thing you can do is, find a good property manager to help rent your home, one who knows the market and who will be able to help you fairly price the rent, and one who will find a good tenant who will take care of your investment.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Don’t Be Lazy – Even If The Repair Guy Is The Next Best Thing To Sliced Bread.

Fri, 08 Feb 2013 13:49:25 -0800

Many landlords do things many different ways – hopefully, all of them follow the laws and landlord tenant rules of their state. No matter how long a tenant has been in your home, no matter how good they are, no matter ….. you always have to remember you are the landlord, and you can’t get lazy, even if it’s convenient for you.

Sometimes, I just don’t want to go and meet a repair guy – even my same ‘ole, same ‘ole electrician or plumber. And sometimes, I feel like calling the tenant to ask, “Do you mind just letting him in and wait while he does the repairs?”

But, it’s not a good idea to make tenant responsible for handling the repair people. Why? Because we live in an imperfect world, and things can happen even if you think you have the best of tenants.

Just a few tips:

You are the landlord – do your job. It isn’t the tenant’s responsibility to open the door, wait for the repair guy, make decisions about what needs to be done with the repair, etc., it’s yours! (If the tenant stays because they don't like people in the house without them in it – that’s fine.)

Sometimes, even the best of tenants, can get something wrong. For example, once, a very attractive tenant thought the handyman was hitting on her. He wasn’t, but she said he was. See where this is going? Being there as a third party reduces he said/she said situations.

You could put your tenants, and their stuff, at risk for harm or theft. Remember, we live in an imperfect world, even if your repair people walk on water, and are the next best thing since sliced bread, it’s not worth taking the chance that something might happen.

Can you always be there? No. Things happen. But, the rest of the time, it’s best to be the professional you were hired to be and handle the contractors yourself - even if it’s easier not to be there – be there!

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Spray All The Oust You Want – It Won’t Hide All The Evidence!

Sun, 03 Feb 2013 05:56:01 -0800

Interim property inspections are happening this week in Tucson for KGC Properties tenants! All but one tenant happily agreed to the date and time selected based on my schedule. But that one, and there is always that one, “Ummmm, could you give me a week to get ready?”

I’ve done this long enough to know why tenants need a week to get ready for inspections, but I ask anyway. Listening, I agree, make a note that says, “pay extra, extra attention” and smile.

Smiling because, most landlords have been doing this long enough to know, that if you need a week to get ready (unless you really have a good reason), it doesn’t matter how much Oust you spray, how much stuff you get rid of, how hard you try, some evidence is usually overlooked, and here’s what we end up finding anyway:

Unauthorized pets
Junk motor vehicles (even if you move it temporarily - we know the signs)
People living in the home not on the lease
Smell of smoke
Damage that is being covered up
Evidence of illegal activity
And much more!

We can’t give up what tips us off and what we look for – but just know, even though it’s not 100% perfect, 9 times out of 10, if you are doing something that isn’t agreed to in your lease – we’ll find out – if not at the scheduled inspection, not too long afterwards.

Best advice for tenants getting ready for property inspections:

Make sure the house is clean
If you have “things” or people that are there – but not supposed to be – be prepared to discuss it, take the consequences and work something out with the landlord (if it’s legal)
Same applies if you are doing something in the home, like smoking, that you aren’t supposed to be doing – just own up and address it.

Instead of trying to "oust" things and spending your time figuring out how to get away with something, be upfront with your landlord. Will you be able to work everything out? Depends on what it is, but it’s best to be honest, make some effort, and know that most times, things can be worked out.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

What Floats A Renters Boat Isn’t Always What Floats A Landlords Boat.

Sun, 20 Jan 2013 05:28:15 -0800

In the height of foreclosures and what seemed like almost everyone losing their homes, investors/landlords jumped on the wave – increasing the number of rental homes with low rent prices. As the demand for rentals increased – so did the rent prices – many landlords asked for higher rents and many more, raised their rents even higher.

Much of the US is still experiencing a rental upswing. But the home ownership/housing market is starting to shift and also experiencing an upswing.

As the housing market improves, and rents rise, tenants will at some point start considering other alternatives – including home ownership.

If you are a landlord, have you prepared for the shift? Are you banking on the bad economy, frustrated home buyers, tougher lending rules, etc., to keep your rental ships floating?

As a property manager, I think it’s important to stay on top of the current market conditions, but it’s also important to:

Stay in touch with your tenants about their current situation – can they afford your rent, are they considering buying a home, etc.

Don't define rental success just by the bottom line. If you want to be successful as a landlord, don’t be rent greedy. Find good tenants and keep rents affordable – that brings long term success.

Don’t bank on the “they lost their home – they won’t buy another home” attitude. One “for sure” thing – if people think they can find something cheaper – they will. If rents are high, it’s a matter of time before they look at owning again.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Happy Owners ~ Happy Tenants: Hiring A Great Property Manager.

Tue, 22 Jan 2013 05:03:49 -0800

Tucson has a number of property management companies- variety is good – narrowing it down and picking one is the hard part.

Here are tips when trying to decide on a property manager:

When you call, email or fill out a contact request form – do you get a timely response? If you do, what’s that response like? A generic reply email, no phone call for days, or quick response? Pay attention – how a company responds is likely how they will respond when you are a client.

Ask, “What are ALL the fees to manage my property besides the monthly percent?” Many companies charge, say 7% of the monthly rent. In addition, to that, there is a monthly management fee, and processing fee, and banking fee, etc. So that 7% adds up. Look for all the fees – not just one.

Repairs and maintenance. Ask the company about their repair policy. Owner reserve funds for repairs shouldn’t be more than $250. In addition, many companies will charge the cost of the repair, plus 10%, plus extra for miscellaneous –this is most likely to happen if the company has in house repair people. If you like the company you pick, but don’t like the added-on repair fees- negotiate them away.

Does your property manager own their own rentals? If they don’t – you might want to keep looking. I believe effective property management starts with knowing what it really is like being a landlord AND being an owner!

How long does a company take to get you your money? More than 6 days? Maybe two weeks? The longer it takes to get you your money – the more problems that company might have.

Bigger and more isn’t always better. If you have a company that manages 40 properties over one that manages 200 – who do you think you’ll get better service from?

How does the company or property manager treat you? Do you do the talking – are do they do it all? Is your input considered or are you cut off when you ask for something? Are you frustrated or unhappy when you are done talking to your management company?

At KGC Properties, our goal is “Happy Owner – Happy Tenants.” If you aren't happy, it is time to look for another company.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

It Was Cheaper Than Dirt. And There Is A Lot Of Free Dirt In Tucson.

Thu, 17 Jan 2013 05:07:35 -0800

You know you made a bad choice when you start mass texting for a property manager.

This morning, I woke to a text, it listed just about every property management company in Tucson. It reads, “Looking for someone to take on my property – so far – no takers – I live out of state and the first one that calls – you’re hired – here’s the address…home needs work – renters trashed it and moved out without letting anyone know.”

My first reaction, this person probably bought the property sight unseen – just as quickly as he’d sign on any property management company – and then rented it to the first person that called.

A little research confirmed that reaction. Did this home owner have a reason to be this desperate? On paper – you bet. Terrible rental area – it screamed “trouble” all over it. From the online photos – it also needed a complete renovation – not “needs work”. My thoughts – a property manager taking this on would be chasing down the tenants for rent 365 days a year, it’s not an appealing rental property – the one car garage is bigger than the whole house, it had “police line do not cross tape” in one of the photos. And more.

So why did this person buy it in the first place, I wonder?!! Ahh, yes, the price. It was cheaper than dirt – and there’s a lot of free dirt in Tucson.

Here are some thoughts about investing in real estate – as well as investing in a property manager – well, maybe it’s just one big thought that encompasses a lot of little ones:

Do your research, check the comps and competition, be selective, don’t just pick the first one that comes along– and never go based just on price(or fees).

(PS - the picture is not the home the person text about - it's just a photo taken a while back of another Tucson home.)

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

One Way To Keep Your Rent Down? Don’t Be A High Drama Tenant.

Wed, 09 Jan 2013 04:39:13 -0800

About 11 months out of one year – a tenant called for anything and everything – “repair this, repair that – I don’t like this – this needs fixing” – it went on and on. Was it major stuff? No. It wasn’t even minor stuff. It was “drama” stuff that the tenant just felt like a landlord should handle. Drove me nuts – but I was patient. Month 12 came around – time for lease renewal.

Normally, I don’t raise rents – but this time – I decided to. The drama that came with that was the finest performance I had seen in a long time. I calmly explained to the tenant the reasons for raising rent – a part of it included, “If you want someone to come over there to tighten screws on cabinets when they come loose – it’s going to cost.” That was 9 years ago. The tenant is still there – rent didn’t get raised after that first year and I rarely hear from him.

Want to stay put in your rental home and increase the odds that your rent will not go up? Stop the drama. Pay your rent on time and take care of the home.

Most of all, if something breaks or stops working – let the landlord know right away – if it’s minor – take care of it and then let the landlord know. Most landlords will appreciate that you are handling small things that get worn from use and come time for lease renewal –they will remember how low drama of a tenant you are!

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Can A Landlord Serve Multiple Notices To Troublesome Arizona Tenants?

Mon, 17 Dec 2012 04:08:15 -0800

If the circumstances justify it – you bet! If you happen to be so unlucky that you have a tenant committing several breaches of the lease, state law allows landlords to address each situation with a notice.

These are some of the more common notices landlords use:

Non payment of rent

Noncompliance notices
Notice to terminate a month to month tenancy or a “not renewing lease” notice
Access to enter a home/dwelling/apartment
Abandonment notice
Eviction

A common example of situations that warrant multiple notices is with tenants on a month to month or with a lease expiring. Landlords give (hopefully they do it in writing), the tenant notice of non-lease renewal, or perhaps the tenant gives notice. In that time-frame, things happen – maybe the tenant doesn’t pay last month’s rent thinking their security deposit will cover it (this happens most with DIY landlords), or something breaks inside the home requiring a landlord to access the dwelling, or there is a noise violation with late night parties, etc. In this case, the landlord can serve multiple notices to the tenant.

As always, make sure to follow the Arizona Landlord Tenant Laws (or whatever laws apply in your particular state), and if you don't know what the laws are - learn them or hire a professional property manager!

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Old And Working Doesn't Mean It Will Hold Up And Keep Working.

Thu, 26 Jul 2012 06:20:32 -0700

When a tenant moves out, security deposits and what you can deduct become a sensitive issue.

The main thing to remember is tenants are responsible for damage - but they cannot be held accountable for normal wear and tear.

And this is where things get a little confusing and "iffy". Often I hear DIY landlords say, "It's old, but it works." Or, "Flooring is old and used, but it's holding up." Which leads to a major source of conflict and judgment debate.

Most damage to property is obvious, but other things that fall into the "old but working" is subjective. Though not "exact" - here are some guidelines to follow when deciding whether it's a result of everyday use or damage:

Carpets. Normal wear and tear would include shoe marks and light stains. If the carpet is light color - there will be more stains and marks. If the tenant has been there many years, expect heavier stains and more marks. Damage to carpet include (but not limited to) things such as pet urine stains, other sever stains such as paint, markers, tears, etc.

Pet damage. First of all, charge a pet fee to offset damage - because there will be. Damage includes chewed up walls, carpet, pet stains, dug up yards, etc.

Floors and hardware. If floors were old and cracking to begin with - that has to be considered. Old doesn't usually make these items hold up better. If one or two tiles or vinyl were already cracked, chances are, several more will be. But if tons of tiles are cracked and chipped, or vinyl is heavily torn, that's damage. Same with cabinet hardware or door handles and old appliances. Simply said, don't charge tenants for items that are already nearing the end of their use.

Walls. This one I narrow down easily: if the condition of the wall needs repair (nail holes, holes, coloring marks, dark paint, etc.) - it's damage. Furniture marks on walls,dirt around door handles, etc., normal.

Cleanliness. It is unreasonable to expect that a tenant will return the rental to you in the exact condition they received it. If it's cleaned, repairs made, no food in the fridge, etc., that's reasonable. As a landlord, you should expect to do more cleaning, painting and repairs prior to the next tenant moving in. But if you have to empty a fridge, scrub dirty baths, etc., charge for cleaning.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

My Husband Is Certified To Manage Rental Property – But I’m Licensed To Do It!

Wed, 12 Dec 2012 04:49:34 -0800

Got a call from a very frustrated homeowner – been using a property manager for his home. He’s elderly, out of state, on a budget – so he went with the cheapest company that “said they were certified property managers”. In short, things start going bad. Translation – the owner is not getting his money.

So he starts dialing for help. “How can I find out if someone is certified to manage property?” It took a while for this individual to understand the difference between certified to do it and being licensed to do it. In Arizona:

A broker's license is required for any person or company who, for compensation, engages in the lease or rental of real estate in Arizona, who offers or lists real estate for rent or lease, who collects rent for the use of real estate or who negotiates the rental or leasing of Arizona real estate. A salesperson working under a broker may engage in such activities. We are one of the few states having a section in its real estate statute specifically devoted to property management. (There are some exceptions to this law so be sure to check with ADRE for details.)

Caller still doesn’t understand. So in simple terms I said, “Certified means someone has a qualification. Licensed means, one has an official document verifying the qualifications.” Huh? OK. “My husband has been a landlord for 30 years – he knows all about managing property, owns rentals, etc. He’s qualified to do it – he could say he’s certified. I’ve been to school, passed a test, pay a bunch of money for a license, am monitored by the ADRE, you can find me,keep me accountable because I am licensed to manage property. If he manages your property and doesn’t pay you – good luck. If I manage it and don’t pay you – one call to the ADRE and well, I'll have to have a very good reason for not paying you and more than likely have to fight to keep my job.

Before hiring a property manager to manage your Arizona rental property, you should always check that he or she is licensed. You can look up a licensee, real estate school or get a public report on the Arizona Department of Real Estate's Public Database.

That said, just because someone has a license doesn’t mean they are good. Go a couple steps further – call references, check ADRE for license violations, check public court records to see how often the property manager has been in court, etc.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

Tucson Rental Market - Lots Of Rentals Means Lower Prices

Fri, 23 Nov 2012 02:52:30 -0800

In the past few months, the number of rentals available in Tucson has substantially increased. For instance, as of this month, there are 1,112 active rentals on the market. To date, this month, only 174 have been rented.

The most heavily saturated rental area in Tucson is the northwest side of town with 288 active rentals, followed closely by central Tucson with 245 and the North side of town at 223. Compared to the East Tucson at 67 available rentals and Northeast Tucson at 43.

The chart below reflects the current availability of homes based on type and the average rent for each. For example, a SFR home – the average rent on the east side of town is $1231 per month, whereas on the northwest side of town it is as high as $1,957.

Summary of the numbers? If you have a rental home in an area that is saturated with rentals, and your price is high – it’s probably still up for rent. Tenants are looking for a nice home, but they are also shopping around because there is a lot to choose from. Bottom line, look at the market as it is, if it means lowering your price to be competitive and get your home rented to a qualified person – then lower your price!

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

You May Get The Home You Want, But You Might Not Get The Landlord You Want.

Mon, 19 Nov 2012 03:31:53 -0800

At times renters will be so excited about a home, that they ignore the landlord - thinking if they pay rent on time - they can tolerate a potentially bad one.

But it isn’t always that easy – a tenant should'nt just look at the home when looking for a place to live – but also the landlord - because a bad landlord can turn a great home - not so great.

Some basic tips for determining if you’ll have a good landlord:

Let’s start with the DIY vs professional property manager. There are some great DIY landlords, but there are many who aren't and all they care about is getting rent money. Then there are the professional managers who often fall into the same category. Interview a landlord, and include checking public records to find out how many times that person or company has been in court. The higher the number, the more likely, they aren’t a good landlord.

Next, when talking to the landlord – listen carefully. Look for basic things - do they seem to have some common sense? If you point out an issue, what is their response? Is your income and credit the focus of the discussion? You can tell a lot by a person simply by listening.

How did the landlord treat you from the beginning? Were your calls promptly returned? Did he/she show up on time? Were they prepared for the showing? Did they interact with you as an individual or as just another tenant with a goal of getting the place rented? Pay attention to interactions – if the landlord treats you with respect from the beginning, it’s likely to continue.

Does the landlord seem to know it all? If they do, get your guard up. Sounds silly – but seriously, know it all landlords tend to not know enough. Often when a tenant asks questions, even if I think I know, I take the time to say, “Let me double check to make sure!” You want a landlord that does know what they are doing – but you have to make sure they really do.

Are you able to get the landlord to laugh, joke and engage in personal discussions? I tend to think that if someone doesn’t have a sense of humor, they are probably going to be very difficult and rigid to work with.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!