Property management takes care of your investment

Most real estate owners have had problems with taking care of their property at one point or another.

Handling one’s personal home is a difficult task that requires a substantial amount of time. That said, the responsibility, stress, and effort required for the task increases exponentially if a person becomes the owner of more than one property, and even more so if they have tenants. The solution to this complicated issue is to hire a property management company that employees property managers who know the law, have experience, and can deal with people in a civil manner.

Although hiring a property management company is a superb investment on the part of the real estate owner, thorough research must be done in searching for the correct company, given that these individuals will be managing what is quite probably your most valuable asset.

Here are some mistakes to avoid when choosing a property management company.

1. Hiring a company based solely on price.
A company may offer a price that seems favorable- that is until you experience their services. Make sure you look at what they are offering and see if it correlates with your demands. You might have to pay more money to some companies, but this addition will be worthwhile if they offer an abundance of services- you’ll be getting the best value rather than the best price.

2. Hiring an inexperienced company.
This issue comes up, once again, as a result of monetary considerations. If a property management company has not managed any properties, or very few properties, they are still undergoing a learning process, and one you will be paying for. An inexperienced manager could be too extreme with your tenants in two ways- either too tyrannical or too lenient. Both scenarios end with you losing money.

3. Hiring a property management company that is not certified.
Certification is a useful measure of the adequacy of a property manager. An independent, objective board decides on whether or not an individual has the qualifications to undertake this particular stream of employment. If a person doesn’t meet certification standards, they likely will not meet your standards either.

4. Hiring a property manager with too many obligations.
While it is detrimental to hire an individual who has no experience, it is equally negative to have a property manager who overextends their capabilities. It is important to have a balance in the two extremes. If your potential property manager takes care of a property where they are earning more money, having to do less work, or have personal connections with the property owners, there is a good chance that you will not be their top priority.

When evaluating a property management company, it is essential to have all of these criteria in mind. Nevertheless, a savvy real estate owner should not stop here. You should make your own additions to this list, including requirements that are specific to your own vision of what a property management company should offer you. Additionally, do not compromise on your expectations too much because it is likely that you will be working with this company for a substantial period of time.

If you own a rental property in any of the following areas:

• Arlington,
• Bedford,
• Benbrook,
• Burleson,
• Cedar Hill,
• Colleyville,
• Crowley,
• Duncanville,
• Euless,
• Fort Worth,
• Grand Prairie,
• Grapevine,
• Hurst,
• Lake Worth,
• Mansfield,
• Saginaw,
• Southlake,
• Watauga, or
• White Settlement,

then the property management company you can count on is Herman Boswell Property Management.

We advise you to definitely shop around but Herman Boswell Property Management has 37 years of property management experience to bring to bear on the needs of your particular property or properties. We oversee more than 700 properties. There is a reason why people trust us. Find out why.

Photo credit: Salvatore Vuono

Yes, indeed.

The City under Chapter 380 of the Texas Local Government Code is authorized “to provide incentives consisting of loans and grants of City funds, use of City personnel, facilities and services with or without charge, for the promotion of economic development. Availability of quality residential housing encourages and attracts new businesses to relocate to Arlington, creates employment opportunities, improves the livability of the City, and increases property values and sales tax revenues.”

So there is the Arlington Home Improvement Incentive Program which has the following purposes:

• Encourage homeowners to improve residential property conditions through capital improvements;
• Encourage homeowners to make energy efficiency improvements;
• Positively affect the value of residential housing in the City of Arlington; and
• Demonstrate the City of Arlington’s commitment to invest in residential neighborhoods.

The incentive is to offer a rebate of property taxes based on the increased value of the property due to the home improvement.  The property owner must make an improvement that costs at least $20,000 and the maximum rebate value is $5,000.  So an owner could save up to 25% on their renovation costs.

To qualify:

• the properties must be in single-family zoned areas (zones E, R, R1, or R2) , except those who are delinquent in taxes or other fees due to the City;
• the reconstruction or remodeling of a single-family home must cost at least $20,000 and be completed within 24 months of project approval; and
• projects funded by federal housing programs are not eligible for the Arlington Home Improvement Incentive Program.

Here is an example of how the rebate plan works:

• A home improvement project approved in March 2011 is completed in August 2011
• The City property tax prior to the improvements (January 2011) was $638
• The City property tax following the improvements (January 2012) is $838
• The difference in City property taxes between pre- and post-improvements is $200
• Ten times the increase in taxes is $2,000 ($200 x 10)
• In this example, the total incentive is $2,000, which would be paid after April 1, 2012

So if you are upgrading your single family rental property in Arlington, why not check out this rebate program.

The full details of the Arlington Home Improvement Incentive Program are online or you can contact Mindy Cochran at Mindy.Cochran@arlingtontx.gov or 817-276-6755.

Photo credit: scottchan

They found that the Texas real estate market had “gained positive momentum in the first quarter of 2012″ and that the “volume of single-family home sales in Texas was 12% higher than the same quarter of 2011 and the median price increased by almost 3% over the same time frame.”

“The watchword for Texas real estate in 2011 was ‘consistency,’ in both sales volume and price. That allowed us to emerge from last year with stable sales volumes and strong property values,” said Joe Stewart, chairman of the Texas Association of Realtors. “Now, in 2012’s first-quarter results, we see a strong increase in sales volume and a meaningful increase in the median price. That indicates positive momentum for the year ahead.”

45,502 Texas homes were sold in the first quarter of this year, a 12% increase from the same quarter last year.  The price was also 2.7% higher than first quarter 2011 at $147,000.

Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, said: “We believe several factors are driving the strong performance of the first quarter, including continued job growth in Texas and some increased access to credit for homebuyers. Most of all, we’re starting to see a shift in Texans’ attitudes toward real estate. Essentially, buyers and sellers have higher expectations for the market, so they’re beginning to take action and we’re starting to see the impacts.”

The real estate statistic of “months inventory” also decreased which is a healthy trend.  The stat measures the balance between demand and supply in the housing market and the Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market.  The months inventory decreased from 7.6 months in 2011-Q1 to 6.0 months in the first quarter of this year.

Stewart concluded, “If all the indicators play out as we expect, the Texas real estate market is in for a busy spring and summer.”

Photo credit: ddpavumba

The first point to consider is how you are feeling about managing your own property. Is it something you enjoy or is it something that you find emotionally stressful? There are numerous situations that arise in managing a property which can be troublesome – rent collection problems, damage to the property from hidden activities of the tenants, complaints from neighbours, and up to legal involvement either to remove a tenant or because they are suing you. If these situations cause you to lose sleep, property management is something you definitely should look at.

Another important factor you should consider is how close you live to the property. If you live far away, the time it takes to respond to an emergency, do inspections, collect rent is obviously greatly increased. Correspondingly, your willingness to do these things can drop due to the inconveniency and things can go awry due to lack of attention. Further, if you are not willing to be on call 24/7 in case of an emergency, you are looking at a potential disaster occurring to your property.

If you have a number of rental properites, these points magnify.

To do it yourself, you definitely need to have excellent administration in place to take care of the accounting and legal matters from renting as well the maintenance skills to look after the wide variety of fix-it problems that will arise not to mention the patience to find the right tenant when you have a vacancy.

Overall, it is quite a business. Herman Boswell Property Management can assist you with the rental properites you own, whether one or many. Having over 37 years of experience, we know the property management game inside out. Put yourself in our capable hands. We manage properties in all the following areas:

Arlington, Bedford, Benbrook, Burleson,Cedar Hill, Colleyville, Crowley,
Duncanville, Euless, Fort Worth, Grand Prairie, Grapevine, Hurst, Lake Worth,
Mansfield, Saginaw, Southlake, Watauga, White Settlement.

Photo credit: Danilo Rizzuti

The TAA is a non-profit statewide trade association dedicated to unifying rental housing professionals through education, legislative advocacy and member services. Its members are rental housing owners, builders, developers, property management firms and companies that supply products or services to rental properties. The Association has more than 10,700 members and represent more than 1.8 million units throughout the state.

The conference offers the opportunity to earn continuing education credits while learning about industry trends and technology with more than 40 industry-focused education workshops presented by experts such as Amy Kosnikowski, Lisa Trosien, Mindy Williams, TAA General Counsel Wendy R. Wilson and more.

In addition, the Lone Star Expo, the only statewide rental housing industry trade show in Texas, will give you access to service providers and leading-edge products with exhibitors representing every aspect of the industry. There will be several live auctions and you have the opportunity to drive home in a brand new Mustang convertible. The winning ticket will be drawn on Friday near the close of the Expo.

Onsite registration will be available at the conference.

In fact, April 9th through 13th is Wildfire Awareness Week in Texas and FEMA is taking the opportunity to inform Texas property owners about how to safeguard their properties from the danger of wildfire incursion.

“Whether you own your home or rent, it’s important to have a plan in place to protect your personal property, family and pets from the devastation of a wildfire,” said Kevin Hannes, FEMA’s federal coordinating officer for the 2011 Texas wildfire recovery missions. “Make a plan, build a disaster supply kit and stay informed. Those are the three key components to staying safe under any hazardous conditions.”

There are a number of precautions and safeguards that FEMA recommends for property owners to take to minimize the risk to wildfires.

Make your property defensible:

• Create a fire-safe landscape zone ranging from 30 to 100 feet around the home.
• Plant only fire-resistant shrubs and trees. For example, hardwood trees are less flammable than pine, evergreen, eucalyptus or fir trees. Carefully space tree plantings to avoid creating pockets of fuel.
• Create “fuel breaks,” such as driveways and gravel walkways.
• Remove ground fuels like grass, leaves, pine needles, dead limbs and twigs within 30 feet of the home. Clear all flammable vegetation and other materials. Remove branches that extend over the roof or power lines. Mow grass regularly.
• Trim all dead branches from trees in the yard and prune low hanging limbs to prevent fire from climbing to the crowns of the trees.

Within the home:

• Use fire-resistant roofing material, such as ceramic or slate tile, or standing-seam metal roofing.
• Protect the home’s eaves with stucco or plaster to prevent flying embers from starting a fire. Consider designing the home without overhangs or use fire-resistant soffits to protect it from embers and hot gases.
• Ensure that exterior wall coverings are fire-resistant and not susceptible to melting. Concrete, fiber-cement panels or siding, stucco, masonry and metal are some recommended materials.
• Use metal mesh screens to keep fast-flying embers out of vents and chimneys. Vents should also be made of metal.

“Living in the Wildland Urban Interface is much like living in a floodplain,” said Kevin L. Hannes, FEMA’s federal coordinating officer for two wildfire recovery missions in Texas. “Texans should know what risks exist related to their location and they should adopt safety measures to protect their families and their homes.”

Property management is a key action you can take to protecting your property and your investment.  The experts at Herman Boswell Property Management  can help you with the many aspects of your property to keep it from harm’s way.  Give them a call.

“Better weather than February last year,” said Real Estate Center Research Economist Dr. Jim Gaines. “In some cases, the increased sales occurred within the lower-priced home market as mortgage  lending requirements have improved.”

Sales in Texas last month were up 21 percent over February 2011, according to Multiple Listing Service (MLS) data compiled by the Center. The National Association of Realtors reported an 8.8 percent year-over-year jump in sales. Median prices continued to be flat across the state as a whole, but they exhibited wide variation among individual markets, with some markets showing significant surges and others further declines.

“Median price in the four major markets (Dallas, Houston, Austin and San Antonio) were essentially flat, with more significant changes occurring in the smaller markets where large percentage changes can occur more easily,” Gaines said.

CNBC reported that in the Dallas area the median sale price in February was $157,200, or 0.3 percent above February 2011 levels.  In comparison, the median sale price in February 2007 was $153,500.

“The ability of all markets in Texas to weather the national economic storm was due in significant part to the strength of the energy industry,” says Joe Stewart, an Austin broker who’s also chairman of the Texas Association of Realtors. “However, more important than that is the diversity of the Texas economy, which has helped drive job growth and demand for real estate.”

Photo credit: ddpavumba

Nationally, the trend was lower. Home prices, including distressed sales, declined by 3.1 percent in January, the sixth consecutive monthly decline. However, when distressed sales are excluded, prices were seen to still be declining by 0.9 percent. So things are definitely better than the national average here in the Arlington area.

CoreLogic’s chief economist Mark Fleming, commenting on the report, said, “Although home price declines are slowly improving and not far from the bottom, home prices are down to nearly the same levels as 10 years ago.”

In another report, the company found that completed foreclosures were down across the nation in January. There were 69,000 completed foreclosures in January 2012 as compared to 80,000 in January 2011. Texas ranked fifth as the state with the largest number of completed foreclosures over the last year ending in January 2012 with some 57,000.

Photo credit: Salvatore Vuono

On this coming Monday and Tuesday, March 19th and 20th, the Federal Emergency Management Agency (FEMA) is holding an informational fair on flood safety in the Arlington City Hall lobby from 9am to 4pm both days. The fair is open to the general public but it should be of special interest to individuals involved or having a stake in property management.

“Flooding is the nation’s number one natural disaster and it can happen anywhere,” said FEMA Region 6 Regional Administrator Tony Russell. “We encourage homeowners, renters and business owners to find out if their home or business is at risk for flood and then prepare in advance to protect themselves.”

FEMA will also be giving training seminars on the National Flood Insurance Program (NFIP) for real estate and insurance agents.

The collaborative effort provides an opportunity for emergency management experts in the Arlington area to remind citizens about the dangers related to flood events, how to prepare for flooding and key terms related to floods.

“The city is proud to offer this information and training for the general public and professionals in the real estate and insurance industries,” said city of Arlington Stormwater Engineer Audra Valamides. “Real Estate agents and insurance representatives are the professionals that most citizens turn to for information on flood insurance. We hope to form a strong partnership with them that will ultimately benefit our entire community.”

If you are interested in flood safety, head down to Arlington City Hall on Monday or Tuesday and check out what FEMA has to offer.

Photo credit: Witthaya Phonsawat

The thought that property management is an easy task that can be undertaken by anyone on a part-time casual basis is permanently dispelled by the following. It is a heavy responsibility being a landlord and one that takes time and attention as well as knowledge. Professional property management as done by Herman Boswell Property Management can make being a landlord an easy one not an onerous and unpleasant task.

Texas Attorney General
Tenant Rights

The relationship between Texas landlords and their tenants is governed by several statutes, particularly Chapter 92 of the Texas Property Code, and by various court rulings. However, the most important source of information about your relationship with your landlord is your rental agreement, whether it is written or oral.

Some landlords prefer oral agreements, but it is more common for them to require your signature on a written lease. Be sure to read the lease carefully before you sign it.

If you want to change a part of the lease, discuss it with the landlord. If the landlord agrees, the two of you should decide how you want to word the change, and then write it into the agreement. Both you and the landlord should then initial the change. For example, many standard leases prohibit pets, but your landlord may be willing to accept a pet if you put down extra money as security.

Peace and Quiet
Your rights as a tenant include the right to “quiet enjoyment,” as it is called in the law. This means the landlord cannot evict you without cause or otherwise disturb your right to live in peace and quiet.

If other tenants in your building are disturbing you, you should complain to the landlord. The landlord has a duty to see that you are protected from other tenant’s wrongful behavior. Of course, you may not disturb other tenants, either.

Except under certain circumstances and subject to certain conditions, a landlord may not interrupt utilities to a tenant unless the interruption results from bona fide repairs, construction, or an emergency.

Health and Safety
You have a right to demand that the landlord repair any condition that materially affects your health and safety. Under Texas law, by renting you the property, the landlord guarantees that the unit will be a fit place to live.

SB 1448 (81st Regular Session), effective January 1, 2010, now grants justices of the peace authority to order landlords to repair or remedy conditions affecting a tenant’s health and safety, as long as the cost of the repair does not exceed $10,000. Tenants can go to justice court without an attorney to obtain a repair order.

Under certain conditions, you and the landlord may have a written agreement that you will make needed repairs. The landlord does not have a duty to pay for or make repairs if you or your guests cause an unsafe or unhealthy condition through negligence, carelessness, abuse or accident—unless the condition resulted from “normal wear and tear.”

Also, the landlord must provide smoke detectors. You may not waive that provision, and you may not disconnect or disable the smoke detector.

Security
Although there are some specific exceptions, under Texas law, a dwelling must be equipped with security devices such as window latches, keyed dead bolts on exterior doors, sliding door pin locks and sliding door handle latches or sliding door security bars, and door viewers.

These devices must be installed at the landlord’s expense. If such devices are missing or are defective, you have the right to request their installation or repair.

If You Have Problems
If the landlord won’t make repairs needed to protect your health, safety, or security, and you follow the procedures required by law, you may be entitled to:

• End the lease;
• Have the problem repaired and deduct the cost of the repair from the rent; or
• File suit to force the landlord to make the repairs.

You MUST Follow These Steps:

1. Send the landlord a dated letter by certified mail, return receipt requested, or by registered mail, outlining the needed repairs. You may also deliver the letter in person. Keep a copy of the letter. Be sure that your rent is current when the notice is received.
2. Your landlord should make a diligent effort to repair the problem within a reasonable time after receipt of the notice. The law presumes seven days to be a reasonable time, but the landlord can rebut this presumption. If the landlord has not made a diligent effort to complete the repair within seven days and you did not have the first notice letter delivered to your landlord via certified mail, return receipt requested, or via registered mail, you will need to send a second notice letter regarding the needed repairs.
3. If the landlord still has not made diligent efforts to repair the problem within a reasonable time after receipt of the notice letter sent by certified mail, return receipt requested or by registered mail, you may be entitled to terminate the lease, repair the problem and deduct the cost from your rent, or get a court to order that the repairs be made. You should consult with an attorney before taking any of these actions.

Under Texas law, it is illegal for a landlord to retaliate against you for complaining in good faith about necessary repairs for a period of six months from the date you made such a complaint. Of course, you can always be evicted if you fail to pay your rent on time, threaten the safety of the landlord or intentionally damage the property.

You do not have a right to withhold rent because the landlord fails to make repairs when the condition needing repair does not materially affect your health and safety. If you try this method, the landlord may file suit against you.

Recovering Your Deposit. Most landlords require you to pay a security deposit to cover any repairs needed when you move out or to cover your failure to pay the last month’s rent. By law, landlords cannot refuse to return the deposit without a valid reason.

Deductions for damages. Under Texas law, you must give the landlord a forwarding address and the landlord must return the deposit — less any amount deducted for damages — within 30 days. If the landlord withholds part or all of your deposit, he or she must give you an itemized list of deductions with a description of the damages.

Normal wear and tear. The landlord may not charge you for normal wear and tear on the premises and may only charge for actual abnormal damage. For example, if the carpet simply becomes more worn because you and your guests walked on it for a year, the landlord may not charge you for a new carpet. If your water bed leaks and the carpet becomes mildewed as a result, you may be charged.

Advance notice requirements. You should check your rental agreement to see if it requires you to give the landlord advance notice that you are moving. Many leases require 30 days notice as a condition of returning your deposit.

If you give your landlord your new address in writing and you do not receive your deposit or an explanation within 30 days of your departure, contact the landlord. If you cannot resolve the problem satisfactorily, you may wish to consult an attorney. You can also contact the Better Business Bureau or your local tenant’s council. You can also file a complaint with this office.

Photo credit: phanlop88