Category Archives for "Potential Landlords"

Did your property manager lie to you about value?

After years of experience in the industry I have learned that it’s a really common practice for many real estate agents to not only mis-value properties during their first encounter with the owner, but also declare a fixed price for it, in hopes of trying to get your business. This goes for both rental price evaluation and sales price evaluation.  You would think that, since they are professionals, they probably know about this and have the expertise needed to place a price on your home or apartment with one look. Well you would be wrong.

One very important thing to remember is that value is not a synonym of price. In general terms, the word price represents the amount of money that is asked for in order to purchase a certain something. Pretty basic right? That’s when value comes in. Value represents the actual benefit you are gaining by paying a price at the time you make a purchase. Value is that extra space you would love to have in your bedroom for a triple dresser. Or those extra square feet you need in your backyard for the vegetable garden you want to grow. Or a good view of the beach from the second floor.

And this is why stating that your property is worth a fixed amount and can only go for a certain price is plain wrong. It is wrong because even when an expert is able to assess the approximate worth of a property based its characteristics and recent history, a whole set of additional circumstances go along with that into actually defining the end value of the same property for individual potential buyers.

Maybe there’s a very specific circumstance in relation to the neighborhood surrounding the property that will give one buyer a less attractive standpoint in regards to the value of the property while at the same time, another person will actually offer an additional premium due to the fact that its really close to their workplace. In the second case, as this happens, and this new offer appears due to a single need met by this specific property, the market value begins to vary. This is basic supply and demand going into action.

Being lied to about the value of your business and finding out later can be a taxing experience.

For this same reason, when stating a property’s potential worth, it’s common practice to use ranges when speaking about actual pricing. This way agents take into account a variation of value that a set of different additional circumstances offer, as well as other changes in market behaviour that could very well affect the value of the property at any given time.

So, if you get to meet a new agent and he/she instantly states a fixed pricing for your property, always remember – they are either lying to you, or they have a crystal ball.

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!

 

 

How Do We Lower Risk For Our Clients and What Warranties Do We Offer?

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Lowering the risk

The question that always comes up is “How do we reduce risk for our clients?”We serve two different groups here at Realty Trust Services, Landlords and Tenants. Landlords often take on a great deal of risk whenever they get a new tenant. We reduce that risk by getting into the following three attributes of good tenants:

1.) Do they make their payments on time?
2.) Do they do their due diligence when making payments?
3.) What is their income?

We could also reduce risk by charging large deposits, but ultimately that doesn’t help when it comes to a new tenant. I can charge a very high deposit or I can charge no deposit with a tenant that I trust. This is part of those CORE values that help us to reduce risk. How do we get there?

Reducing risk through our Core Values

So what do we do to reduce risk for you, our clients? We build a foundation of trust which is at the core of our THREE values:

1.) Transparency. We remain transparent to you throughout the process of managing your property, before we manage it, and in the case you move on from us after we manage your property. We understand that this is an investment for you today and tomorrow.

2.) Empathy. Understanding you. Putting ourselves into your situation and what you want. Empathy is Key to understanding who you are as a client.

3.) Education. We constantly strive for improvement. That means that we are constantly educating ourselves. On a monthly basis we are reading books as a group that will help us with the integral systems that better serve you.

The Warranties that we offer

Our warranties come down to one thing: 100% satisfaction guaranteed. We want you to be satisfied with the services that we offer to you. Our Warranties are:

1.) We start with a 1 Year Management Contract, however you may opt-out at any time with a simple 14 day notice. We only ask that you do so within a 14 days of the end of the month so that when the next billing cycle for your tenant comes the transition is smooth.

2.) A tenant warranty that is pro-rated based on the length of time your tenant lives on the property. Does your tenant live there only six months? Than your charge is 50% of the fee. Does your tenant only live there for three months? Then you pay 25%. It’s that simple.

3.) If we are unable to lease your property we will waive the next management fee under the following two conditions:

A.) 30 days after renovations have been completed or
B.) 30 days after the last tenant vacated the property.

Our 5 Point Service Guarantee

1.) All Correspondence will be responded to within 1 business day from your portfolio manager or Andy himself. If you call us on a Friday we will respond to you by the end of Business on Monday.

2.) Money will be wired to your account on time, every time. We do weekly payments via ACH and bi-monthly payments to owners via check. Guaranteed.

3.) No hidden surcharges. This ties in with one of our core values, Transparency. All of our charges are explained both in your contract and on our Pricing page. We will also send notification of maintenance costs to you.

4.) We offer 24 hour maintenance requests. That includes the ability to reach us at any time within 24 hours including for emergencies.

5.) If it comes down to it we handle the evictions. We will pay for the costs up front and then you can pay us back. We will use the Ohio Revised Code to evict tenants and use the proper methods to evict when absolutely necessary.

If at any time you feel as if though we have not met our 5 Point service guarantee you can simply request a refund on our monthly management fee.

If you want any more information please feel free to contact us in the comments below or by contacting us directly via phone at 440-220-7300

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