All posts by admin

Should My Properties Be Owned as an LLC or Corporate Entity?

Please check with your CPA and Attorney for purposes of Legal Consequences and Tax Consequences. Coming from experience all properties should be set to companies, and the main reason for people not wanting to do so is because certain mortgages. From the asset protection standpoint it adds an extra layer of protection, and inexpensive. You can login to the Secretary of States website and pay a fee, and you receive the certificate. You can give this certificate to the local title company; this ensures an extra level of insurance. Another main reason is doing this step can protect you from being targeted personally. In regards to that this is not 100% protective as there is ways to pierce the Corporate veil.

An example is if you own ten properties and someone injures themselves on one of your properties and wants to hold you personally accountable for the situation the attorney who is hired to assess the situation will research the owner of the properties. In which seeing they (you) are covered will avoid making this more of a dangerous situation.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

Cleveland Ohio landlords have flexibility to sell, rent, or lease option

We can rent out your house while helping you sell it.

Many Cleveland Ohio landlords do not set out to be landlords. In many cases, the property owner needs to move out of the area for work or family reasons and doesn’t have enough time to sell their house before they need to leave. In those cases, many people turn to renting to cover costs. Or depending on the market, they decide to rent until the value of the the home increases.

In these situations, there are options, and we can help with all of them. You can continue renting the property and use a property manager to handle the day-to-day for you. We can help make arrangements to sell the property. The property can be marketed for sale while also rented. That way the rent is covering costs, while the house is still on the market. Learn more reading Help! I’ve been transferred out of state but can’t sell my home.

The third option that you may not know about is a lease option. This is a combination of renting and selling. In a lease option, the renters lease the property with the intent to buy after a predetermined period of time.Many Cleveland Ohio landlords understand the risks and difficulties of the market. Regardless of whether you decide to keep the property as a rental or sell it to get out of the rental business, we understand, and we can help.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

5 problems with Cleveland Oh property management

These are the 5 most common problems with property management in Cleveland, Ohio.

Property management is a difficult industry in Cleveland Oh. We are often the messengers of bad news. Renting is difficult and expenses vary by zip code throughout the Cleveland Oh area. Property management is also a very young industry in the Cleveland area. Only a small percentage of Cleveland landlords currently use a property management company. Of the top five companies in the area, the oldest is only seven years old.

Due to the newness of the industry here in Cleveland, there are some problems that property owners need to be aware of before hiring a property manager. Here are the top 5 problems with Cleveland, Ohio property management.

  1. Lack of accountability. Unless you are following your property manager around making sure they are doing what they say they are doing, there is no way to know for sure. This creates an overall lack of accountability. We work to eliminate that with our property owners through the use of surveys, photos, videos, and inspections, as  well as provide regular reports and statements, as well as inspection services. We take the extra step to demonstrate accountability.
  2. Lack of fiduciary. All property managers are supposed to be licensed, but that is often not what you will find. Fiduciary care to all clients is sadly not happening. In many cases, it is someone who owns some properties and decides it would be easy enough to also manage other properties. However, they are not giving the same level of care to all properties. We use systems to make sure all properties are getting the same level of care. Our landlords also have dedicated representatives that act as their direct point of contact.
  3. Lack of license. I said earlier that many people offering management services in the area are doing it without a license. A quick check of Craigslist will verify that for you. Managing properties without a license is highly illegal.  If caught the individual will be charged with a misdemeanor and receive a fine of $1,000 per incident, which adds up quickly. This can lead to you losing a lot of money. Not to mention, working without a license is not professional and does not offer accountability or fiduciary responsibility.
  4. Lack of communication. This is a common problem between property managers and landlords because the management company has not created a system to monitor and encourage communication. We guarantee your dedicated representative will respond to calls by the end of business on the following day. We believe the more communication the better.
  5. No real process. Those new to the business quickly realize that without solid systems in place to manage every aspect of property management, things get out of hand quickly. This is a very complicated industry. The bigger the company gets, the more difficult it becomes.We deliver peace of mind through our systems. We utilize management software, maintenance software, project management software and more to ensure everything runs smoothly and efficiently for everyone.

We are always looking at our current processes to determine if there is something more or better we can be doing. If you have any suggestions or feedback, we are always happy to hear. If you are a property owner in Cleveland Oh, feel free to contact us with any questions.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

 

Should I have someone manage my rental properties?

rental properties

Investment property comes with unavoidable risk.

This is a question I hear a lot. People want to know if they should manage their rental properties themselves or hire a property manager. In order to answer that question, I have a couple questions for you.

Do you have real estate experience and can you handle high stress situations? Managing rental properties is a stressful job. Are you the kind of person that can stay calm and level-headed in a stressful situation? Can you manage emergencies calmly? Can you keep your cool when someone is trying your patience? These are some of the attributes you need to deal with tenants on a day-to-day basis.

Tenants bring drama and have ways of attempting to control the situation. They may call in the middle of the night or make constant demands. They may try to guilt you into accepting their excuses for not paying rent or for making concessions you wouldn’t normally agree to. Can you deal with these emotions? A manager will insulate you from possible mental and emotional abuse.

Having  a manager helps with these emotions by dealing with the tenants directly. Managers create a buffer between you and the chaos. However, there are some emotions a manager can not help alleviate.

Can you handle the emotions that come with risk and property ownership?  A manager can help deal with the tenants but they cannot take out the risks involved. This is addressed in Should I be a Landlord? There will always be risk in owning rental properties. Things happen. Bad tenants happen. Property damage happens. natural disasters happen. As property managers we work to decrease many of the risks, but we cannot promise they will never happen. You have to be able to deal with the risks that come along with owning rentals.

Do you have the time to manage your properties?  We take care of the day-to-day needs allowing you to use your time in other ways. We have several successful systems in place that allow us to manage a multitude of properties seamlessly.

Are you a control freak? We see this a lot with landlords that have been in the business for years and have been managing their own properties. They want us to do everything their way, but that won’t work for us. Our systems work and to try to manage different properties using different systems or procedures would be hectic and take way too much time. When landlords decide to work with us, they need to take that leap of faith and allow us to manage them our way using our systems. If this is something you can not let go of, you may be better offer hiring an employee to help you with the day-to-day work instead of hiring a property manager.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

 

Help! My Cleveland Ohio properties have statement discrepencies

Cleveland Ohio property managers deal with very diverse properties and tenants.

Statement discrepancies happen. There are a lot of moving parts when it come to property management, and property managers throughout the Cleveland, Ohio area are working with a very diverse group of tenants and properties.

Although it may seem easy enough to add up how much you should be getting in rent and subtract the expenses; there is more to it than that. Rent doesn’t always come in at the start of the month; tenants pay late or make arrangements with partial payments. While some expenses are known at the start of the month, they can also come up throughout the month. These two factors will alter the amount you may think you should be getting.

Especially for owners that are out of town, making reference to past statements can easily get confusing. We have worked to eliminate any possible confusion. We do this by first making sure everyone is looking at the same statement. Sometimes amended statements are sent out when things change, and the problem may be that the property owner is looking at an outdated statement without realizing it.

There are two things we do to get rid of confusion. First, we will email the current statement while on the phone before trying to sort out the problem. Making sure both the property manager and the property owner are looking at the same statement is essential.

Another option we have is doing a screen share through join.me. This allows us to send you a link with a code that will allow you to see our computer screen. Then we can walk you through the statement and answer any questions while showing you were the answers are coming from on the statement.

We firmly believe that communication is the key. The better communication we have the less chance there will be for misunderstandings.

If you have rental property in the Cleveland Ohio area, please give us a call. Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

Should I be a landlord in Cleveland, Ohio?

Cleveland, Ohio is a very unique market

Do you have what it takes to be a landlord? That is an important question to ask yourself before you start buying rental properties. Unfortunately, there are a lot of courses out there encouraging people with the benefits of property ownership without explaining the risks involved.

Cleveland, Ohio is a very diverse area with a lot of different zip codes, and the zip code you buy property in will make a huge difference in what your experience is as a landlord. Do you know the area you are looking at buying properties? Again, there are courses that make being an out of the area landlord sound glamorous, but you are taking a real risk buying properties in an area you’ve never seen before.

Are you a worry wart? If the answer is yes then you should not be a landlord. You probably should not be in business at all. Stick with safe investments like bonds. You won’t have the potential for large returns, but you also won’t have the risk of a total loss.

Do you have financial limitations? For many, they go into real estate with no extra income. Don’t invest all of your retirement savings into real estate. Yes, there are success stories of people who spent their last hundred dollars to get into the business and ended up millionaires, but that is not the norm, and there is a lot more to the story than what you may hear.

If you have no cash reserves, you are taking a significant risk. A single natural disaster or sewer collapse could financial destroy you. You’ll be left waiting for the insurance to pay out to make the needed repairs, or the insurance will refuse the claim, which can happen, and then you have to pay out of pocket. You MUST have cash reserve for the worst case scenario.

Often times people are blinded by the potential and fail to see the risk. You need to have an investment mindset, which means you think long-term. Can you do that?

Can you put 20% “true” equity down on a property. Housing prices are not always what they seem and properties do not always follow national trends. I’ve seen landlords try to sell a house “as is” because they are mad about damage made by a tenant. What they don’t realize is that $5,000 worth of damage can drop the value of the home $50,000. This may not sound fair and it may not be fair, but it is the reality of the situation. If buyers have to put work into the home, they are going to want it for well below market value.

You need to understand the Cleveland market and know what you are getting into. Otherwise, do not invest in Cleveland and don’t be a landlord.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

What do you do to lease my house?

We offer a complete marketing program to reduce vacancies.

 

A common question we hear is “what do you do to lease my house?” There are a lot of things we do to market houses, and I could provide you with an extensive list. However, if you want to see what we do to lease houses, go to our website and look up a listing. Then go to Google and search for that property.

You will find the listing is everywhere. We do something with our listings called syndication, which gets it out to 30 to 40 websites right away and it expands from there. We do everything we can to ensure each and every listing is as visible as possible. In addition to syndication, we utilize the MLS listing.

Complete Marketing: We believe in what we call complete marketing. This approach includes pre-market a property if the tenant is still living there, but will be moving. Property marketing includes videos, panoramic images, and 3-D tours. We get as much positive media out there as we can until the property is rented. Approximately 30% of the time, we have the property rented before the previous tenant is moved out. Creating the 3-D tours offers a huge advantage because once created, we can re-use it later during pre-marketing. This can dramatically reduce vacancy times.

We also work to improve our understanding of how people perceive the property. This gives us the opportunity to make the changes needed to make the property more appealing to a broader range of individuals. We are consistently looking at what is and is not working to reduce vacancies and provide better overall service.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

How much rental deposit do you collect?

People often ask if we collect a rental deposit of the first and last month’s rent. We don’t, and I’ll explain why.

Collecting the first and last month’s rent does not provide a better safety net. The safety net you have is what money is left. That is the rental deposit. There are many key points you need to know about deposits explained in What Cleveland Ohio landlords need to know about large deposits and deposit accounting. Be sure to read about how to handle large deposits.

We collect the first month’s rent and a rental deposit. This is pretty normal in the business. Sometimes, we run specials with lower deposit amounts for those that qualify. With the property owners permission. Qualifying for a reduced deposit as based on the background check. The goal is to get better tenants that will act more responsibly towards the property. Tenants who will take ownership in the look and condition of the home.

The tenant is responsible for damages regardless of how much of a deposit we collect. When damages exceed the deposit, the tenant is responsible. I recommend choosing a quality tenant over a large deposit. Too often, landlords think a large deposit is the best protection. Careful screening can reduce damages and eviction costs.

The goal is to get good tenants that won’t damage the house or stop paying their rent. We make sure to fill properties, and your business remains profitable,  Although sometimes evictions are unavoidable, careful screening reduces the risk. If you have any questions about our policy towards rental deposits, please ask.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

How do You Ensure that You Find the Best Tenants?

Finding the diamond in the rough with tenant screening.

How do we ensure we are finding you the best tenants for the property?  That is a great question because bad tenants can cost you a lot of money. They can damage the property, not pay their rent, and force us to evict them. All of which cost a lot of money and lead to vacancies.

  1. Marketing. The first thing we do is market the property. By actively marketing the property, we can get a selection of applicants. This gives us the opportunity to choose the best tenants. Then  we screen all applicants.
  2. Screening. When someone is interested in renting a property, we have them fill out an application. We then screen out the ones you do not want living in your property. We have an extensive screening checklist. You can learn more about it by going to 7 Steps to Flawless Tenant Screening.
  3. Landlord verification. Although many landlords will debate the merits of landlord verifications, we believe they are an essential part of the screening process when available. Go to Problems with Landlord Verification in Screening and the Solution to learn more about the advantages and disadvantages of landlord verification, but more importantly, how we mitigate the disadvantages when screening tenants.
  4. Manual checks. Because we take the screening process very seriously, we manually check all local criminal and eviction records. Why is it so important to check criminal and eviction records manually?   Another great question. You can follow the link to read more extensively on the topic. In short, we learned through experience that national background check data bases are imperfect. While they are still a useful tool, they are not sufficient to stand on their own. We also check with the local courts for any recent filings or ones missed.

Tenant screening and marketing work in combination to ensure we have a selection of good tenants to choose from for each and every property we manage, We have several videos and blog posts available on the many things we do to market properties, but a good one to start with is My home is not leasing – some tips for better lease marketing.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

Review of top 5 Cleveland Oh property managers

We want to be your Cleveland Oh area property management company.

When choosing a property management company, it is really important to find the one that will be the best fit for you and your needs. There are many factors that can vary from one company to the next. For example, maintenance, fees, payment policies, management systems, etc. There is no right or wrong way to do things, but there are pros and cons to each. Only you can decide which property managers are best for you.

Clearly, we hope to be able to serve you and meet your needs. However, here are some other property management companies serving the Cleveland, Ohio area that you may want to look into.

  1. David Terbeek with RE/MAX. I have had many interactions with David and found him to be very professional. He is a member of National Association of Residential Property Managers (NARPM), which is an industry standard. Being a part of that indicates a level of professionalism and learning.
  2. Seller’s Realty – property management division. I have heard no complaints about them. Although I cannot believe everything I hear, I wouldn’t recommend a company that I consistently heard complaints or very negative reviews about. That is not the case with Seller’s Realty; they know what they are doing.
  3. Howard Hannah Property Management. While Howard Hannah is obviously not a new company, they are fairly new to the property management industry. However, they have a solid platform, which is being managed by Jared Zack.
  4. Cleveland Property Management. The are one of the oldest big company’s in the Cleveland area. I heard the sold part of the company, but they are still in property management. They are experienced and professional. I have not heard any complaints about them. In general, they are a solid choice.
  5. Bob Kollet with RE/MAX. Bob is a good person. He manages a small portfolio, and has good experience for a small company.

If you are just starting to look around for a property management company, be sure to spend some time reading my blog and watching videos. I do my best to answer all the most common questions we get asked. However, don’t hesitate to look at some of these options as well. Also, don’t hesitate to give us a call. We would be happy to sit down with you and answer all your questions.

Our experienced investment property management team can relieve you of the burden of managing your rental property while saving you some serious money! Call us today at (440) 220-7300 to see how we can help you!

 

1 2 3 10
";