Boundless Management

Choosing to rent is a great option if you’re looking for a new place to live – it’s easier to rent an apartment than it is to buy a house, you don’t have to worry about property taxes and it’s much easier move to a new place if you are not ready to settle down. If you’re looking for a place to rent, you may have heard about this thing called “housing discrimination.” What is that, anyway?

What is housing discrimination?

Housing discrimination is when you are treated differently when trying to rent, buy or sell a home based on certain factors. These factors include:

• Race
• Sex
• Age
• Sexual orientation
• Religion
• Class
• Familial status
• Disability

What counts as discrimination?

Sometimes it’s hard to tell if someone is illegally discriminating against you. Landlords have a right to their opinions just like everyone else, but they shouldn’t let it affect their decisions when it comes to renting an apartment. It’s illegal for a landlord to use one of the items in the bullet list above to:

• Refuse to rent to you
• Give you different accommodations compared to everyone else
• Make you use other different facilities
• Make you agree to different rental terms
• Deny that an apartment is available for rent

Visit the U.S. Department of Housing and Development website for a full list.

Housing discrimination has been illegal for over fifty years, but it still happens in the United States. Thankfully, we here at Boundless Management abide by the law and treat all renters equally without discrimination.

Real estate has long been considered a top investment target. However, the recent recession has changed how many view what was once considered a cornerstone of investment portfolios. Instead of completely abandoning real estate, most experts agree that it’s better to focus on conservative, yet lucrative, markets.

Here are a few of the reasons why rental properties are a great addition for an investment portfolio.

Renting is Popular

In the past, most people moved out to the suburbs and bought a home when they had enough money. Today, more people are attracted to living in populous areas. Thanks to fairly low crime rates, city centers and other areas with walking access to restaurants and other amenities downtown, midtown and uptown areas are seeing a resurgence in interest. This trend is expected to continue as the economy improves and young people find better jobs.

Rentals are Even More Popular During Recession

Predicting recessions and bubbles is inherently difficult, but investing in rental properties is a great way to insulate yourself. When the housing market crashed, former homeowners turned to rental properties, and rental prices remained strong even when home prices plummeted. Rental prices continue to rise as the economy improves, and those who purchase rental properties can expect a solid return on their investments.

Areas Change Quickly

While gentrification is a controversial issue, there is no doubt that it helps those who offer rentals. As people look away from the suburbs and toward fun, connected areas, gentrification will continue in big and small cities. Because of this, there are great deals available for those who know a particular area and who are able to tell which area will become the next hip spot. While these purchases remain as steady investments, they can also yield tremendous returns should the area become more popular.

Help is Available

Managing property can be difficult, but there are experts who can help, like those here at Boundless Management. For those who do not wish to be involved in the day-to-day management of their properties will find services like ours available who can provide these services for a reasonable price. Doing so will allow you to focus on other areas while retaining your investment income.

Real estate has changed since the last recession, and investors are, understandably, a bit wary. However, the real estate field is not monolithic, and there are some investments that provide protection against economic stress. Before abandoning the idea of investing in real estate, consider purchasing a rental property to add to your portfolio.

Spring brings roses and flowers of many colors. The change of seasons beckons a response for clearing out the old and ringing in the new. Spring is the first opportunity to step outside again and enjoy the outdoors without the cold.

Below are some tips for making your landscape ready for a more active season where people will want to spend time, to improve the curb appeal of your property and to attract prospective residents:

Clearing the Way

Emerging from the harshness of winter is a bit of a metamorphosis. This is the time to remove any growth that has been damaged or that has grown over sight lines. While much of the garden maintenance has been left for the change of season, there is pruning, weeding and a general clearing out of the old in preparation for promoting spring growth.

Treatments

Pre-emergent treatments applied early, around January, help abate weed growth. A post-emergent applied as spring approaches cuts down on dandelion and other weed growth. Since soil receives nitrogen from lightning storms, this is also a good the time to provide active nutrients to promote top growth. An insecticide or larvicide applied to the lawn will keep worms away, which cuts down on the attraction for possums or armadillos, depending on your geographical region.

Test Irrigation Systems

In zones subject to freezing, it’s time to drain the winterized irrigation systems and bring them back into action. Test and isolate for repair any leaks that may have developed form the swelling and shrinking before you need to rely on the system for regular watering.

New Plantings

Part of the chore of cleaning up the beds includes removing all the leaves that have fallen. This reveals the space available for new plantings. Not only being the optimal time for introducing new species of plants, spring invites the desire to see the robust flowering growth that adds so much to the appearance of the property. Planning out your areas and deciding what and where to plant makes the job go smoothly.

Coming out of the hibernation of the cold months and heading into the gentility of spring is a transformation that everyone is anxious to experience. Preparing for the atmospheric change brings out both the bounty of the new season as well as the people who have been waiting for the opportunity to enjoy it. You are sure to create an inviting space and make your property a focal point for admirers and prospective residents with timely effort that ensures your landscape carries through spring and into the summer.

If you own a rental property, you want to get as much out of the investment as possible. This means keeping the rent at a high, yet reasonable, rate. There are a number of ways you can add value to any property, even if all you own is a small studio rental.

Paint

Find paint on clearance at close-out stores and add a fresh coat to your property every time a resident leaves. This simple act will perk up the apartment and give it a fresh feel. The walls will look cleaner and the atmosphere will feel newer. You’ll want to refresh the paint to cover up any worn spots from the previous tenants.

Redo the Bath and Kitchen

Make sure the appliances are clean and updated. Additionally, make sure they all work properly. You can add to the rent if the appliances look modern and are well maintained. Again, visit close out stores to find replacement appliances if any break. Redo the floors as well, as this will help with the appearance of the property. Laminate flooring is easy to find at a discount, especially in bulk prices for all your properties.

Take the cabinet doors down and repaint. You’ll be surprised what a good coat of paint can do. If the doors are too far gone but the cabinets are fine, replace the doors completely. You can charge more rent simply by making the bath and kitchen look nice.

Look at the Windows

Many landlords overlook the windows and leave them dirty between renters. Consider the cleanliness of the windows. While you are cleaning up the windows, consider their energy efficiency. You can charge more for rent if you have energy efficient windows, especially if the tenants pay for electricity. They will happily pay more rent when you prove your efforts to help them save money by adding energy efficient windows to the property.

Landscaping

Simple landscaping is pleasing to the eye and keeps the property looking appealing. Consider how you feel when you approach a landscaped piece of property – you think it must be worth more, right? Repeat this feeling for your renters with some simple flowers outside the property.

Clean Everything

Before you begin any of these projects, clean everything. You may find you don’t have to replace or paint anything with a simple once-over. Use a bleach solution or an industrial cleaner to give a good shine to everything.

Conclusion

As a landlord, you want to get the most return on your investment. You can get higher rent with minimal work, but the effort is worth the long-term return in paid rent.

What constitutes normal wear and tear to a rental unit? This is a question that every landlord and tenant will eventually need to ask. Knowing the answers will protect both parties and save everyone many headaches.

Tenants are Liable for Damages Specifically Prohibited in the Contract

First of all, what are the stipulations in the rental agreement? If the contract specifies no pets, then a tenant can be charged to repair any damage caused by pets including chewed or scratched areas, pet stains and pet odor. Smoking is another common thing not allowed by many rental agreements. The landlord has the right to collect damages to clean up second hand smoke odor if it was specifically prohibited inside the rental unit.

What is the Difference Between Wear and Damage?

There are many other signs of either wear or damage and it is often difficult to distinguish between them. Anything that is caused by time and usage is considered to be wear and tear, while things caused by carelessness, dirty living habits, or failing to take proper precautions are damage. For example, small nail holes in walls from hanging pictures is normal. Larger holes are considered damage. Carpeting that is matted, worn through, or has depressions from furniture is wear and tear but burns or stains are preventable and as such, are considered to be damage. Drag marks on floors constitute damage, but scuffs are normal wear.

Every Tenant is Different

A family with three kids in a three-bedroom home will cause more wear than a single occupant in the same home. That is not to say that the children should be allowed to run wild or that the single occupant is allowed more damages to make up for not having kids. But it does mean that each instance of wear or damage should be judged in the context of the tenants.

How to Prevent Problems between the Landlord and Tenant

Tenants should be able to report problems as they arise without fear of repercussion. Landlords need to fix those issues before they get worse. Before moving out, walk through the rental unit with the landlord and ask if there are any problems that should be repaired and discuss how these repairs are to be handled. Disputes are less likely when everyone works together.

Income received from the rental of real property is considered taxable income and must be reported on the owner’s personal tax return. Rental activity for the year is detailed on federal Schedule E, and the net profit or loss is then carried forward to federal Form 1040. Yearly rental revenue is offset by all routine expenses related to the property itself, including a deduction for depreciation.

Depreciation as the Largest Rental Write-Off

Depreciation is a tax deduction to recover the cost of an asset and to account for the presumed decline in its value due to usage. Residential real property is depreciated over a period of 27.5 years, so the annual deduction is over 3 percent of the original property acquisition cost. The annual depreciation tax deduction also reduces the ongoing carrying value or basis of the property. In the event of a future property sale, the adjusted basis figure is used to calculate gain or loss at that time. Unlike depreciation, other rental property tax deductions require actual monetary outlays during the tax year.

Routine Expenses of Rental Property

Rental properties require various types of expenses in order to remain marketable. Interest applicable to a loan on a specific property is deductible. Personal travel to a rental property is deductible at the standard business mileage rate. The owner may incur costs for essential services such as advertising and cleaning. The legal aspects of property ownership may require payments for professional services. All expenses related to the promotion and maintenance of the property are deductible and are included along with depreciation on Schedule E.

State and Local Taxes

Most states levy an income tax, so rental income or loss affects those state returns as well. The county in which the property is located will levy its own property tax. If the property is located within a city, an additional property tax is likely to be assessed. Property taxes are fully deductible and are included with all other deductible expenses on Schedule E to determine overall gain or loss.

Security Deposits

An amount received as a security deposit is not included as current revenue if there is a possibility of its return to the leaseholder. If it is eventually returned to the leaseholder, it is never included in income. If the deposit amount is not returned at the conclusion of the lease for some reason, it is included at that later time as additional rental revenue.

Rental income reported on Form 1040 is combined with all other return components and is taxed at regular rates. Depreciation deducted on Schedule E effectively reduces taxable income even though the actual value of the property may be steady or even increasing in some cases. The owner’s basis is also adjusted downward by the annual depreciation deduction, increasing the likelihood of a future gain on a sale. If the market value of the real estate remains steady, the depreciation deduction successfully defers current income to a future taxable gain on a sale of the property.

Owning a rental property can be a great way to make an income or a little extra spending money. However, not every home is one that you will want to rent out. If you own property in a busy area such as in the heart of the city or in a popular vacation destination, renting out your home for the season can be an excellent way to earn a profitable income. Before attempting to find renters for your property, you will want to determine whether or not your property makes a good rental property. Some things that renters will look for when in search of a rental include the overall location in a good neighborhood, schools in the area, the crime rate, property taxes and amenities located nearby.

Location, Location, Location!

It can not be stressed enough that location is one of the most important things that individuals and families seek in rental properties. Most renters would like to be in a good area with things to do nearby. Those with families may be looking for a neighborhood with a lot of children in the area while retirees may prefer a more laid-back lifestyle. The type of neighborhood that your property is located in will play a major role in the tenants that you get. For example, a rental property located near a University will see a lot of students who are interested in renting it out. Take the location of your property into consideration before determining if it will make a good rental or not.

Schools

If your property is located in an area where the schools are top-rated, it will most likely be very easy to rent. Families are always looking for rental homes and apartments that are in great school districts. Check into the quality of the schools in your area before making an investment into a rental property. Schools with poor reputations in your district can reflect the value of the property poorly, making it not such as good rental space.

Crime Rates

No one wants to live in a neighborhood with a high crime rate. Homeowners and renters alike want to be able to feel safe in their own home with the ability to let their children play outside without having to worry about them 24/7. Look up crime statistics for your neighborhood to determine it is makes a good rental property. Homes and apartments in low crime areas will typically rent for more than properties in high crime areas. Vandalism, petty crimes and serious crimes should all be looked into before investing in a rental property.

Nearby Amenities

If your property is located near many different amenities and attractions, chances are that it will make a good rental property. Look for parks, malls, gyms, recreational facilities, movie theaters, restaurants and public transportation hubs in the area. Properties within walking distance of these types of amenities may rent for a higher price point than those that require driving a distance to find things to do. Cities are typically great places to invest in rental properties as there is plenty to do nearby for all types of individuals.

If you believe that your property will be easy to rent out, it’s time to get started with the process. Simply contact us today to find potential renters interested in your property.

With a slow housing market and many homeowners finding themselves underwater on their mortgages, now is a great time for people to turn their homes into investment properties by renting. Renting is not as simple as just sticking a sign out in the front yard, however. Here are five steps homeowners should take if they want to start renting out their homes.

Fix Up the Home

Even with the large amounts of people who have recently had their homes foreclosed who are now looking to rent, homes that are in desperate need of repairs or updates are not likely to rent quickly or for top dollar, if they rent at all. Homeowners should go through their homes and fix anything that needs repaired. They should give the entire house a fresh coat of paint and new appliances if needed.

Change the Property Status

Before they start renting, homeowners will need to alert a few different companies. The mortgage lender will need to know, as having a tenant will likely affect the homeowner’s mortgage. The insurance company will need to know, as the homeowner will want additional insurance to cover any problems having a tenant may cause. The homeowner should also alert the local municipality of the home’s change in status as well.

Find the Right Tenant

Having the right tenant can make all the difference when it comes to whether the renting experience is a positive or negative one. Homeowners should advertise in several places, including Craigslist, Facebook, the classifieds and local publications to increase their chances of finding a tenant quickly. Then, they should interview and perform background checks on potential tenants to screen out any tenants who are likely to cause problems for the homeowner down the road. While a foreclosure or bankruptcy may be forgivable, finding out that a tenant has had multiple financial issues or cannot seem to keep a job should raise a red flag.

Charge a Fair Price

Knowing how much to charge for a rental property can be difficult. While homeowners will undoubtedly want to cover their mortgage, the amount the homeowner wants to get really has no effect on what the rental is worth. Homeowners should research similar rentals in the area to see what a fair asking price would be. Homeowners may even want to consult with a local real estate agent. Asking the right price will help homeowners get their homes rented faster.

Require a Lease

No matter who a homeowner rents the house to, they should always have the person sign a lease. The lease should detail all the particulars of the rental agreement including when rent is due, how much rent is and who will make any repairs. It should also spell out the consequences both parties will receive if either of them breaks the lease. While writing out all the particular lease details may not be fun, a lease is absolutely essential for legally protecting both parties.

Renting out a home is a great way for homeowners to make some extra cash and protect themselves from the financially devastating effects of a potential job loss. While not for everyone, homeowners who choose to rent out their homes can enjoy an easy and predictable extra source of income and financial security during tough economic times.

Are you considering a rental property purchase? Are you weighing the responsibilities of becoming a landlord? Would you like to glean knowledge from those who have gone before you in the real estate market so that you can have a successful experience as a landlord? If you want to learn the ins and outs of being a landlord, then follow this quick and easy guide that lists the common misconceptions about being a landlord. You may be surprised by what you learn, and decide that this new role is for you after all.

Misconception #1: Landlords are Mean

Landlords do not have to be mean, gruff, domineering or any related adjectives. There are times when a landlord needs to be firm (especially if tenants are prone to paying late), but for most of the time, a landlord does not have to change his or her personality in order to scare the tenants. Simply be yourself. You can have a good relationship with your tenants that will pay off in the end. Be friendly to your tenants, and they will be friendly back. They will want to take care of your property if they like you and have a relationship with you. Relationship here is key!

Misconception #2: Rental Property Always is a Pain to Maintain

Choose wisely when buying your rental property. If you choose a rental property that needs a lot of work or that is extremely old, then you may have some maintenance and upkeep problems. But if you can find a reasonable purchase that has recent improvements (such as a new water heater or good insulation), then rental property can be a breeze to maintain. Consider all your options when you are choosing a place. Select a rental property that retains it’s value better over time (for example a free-standing duplex vs. a town home).

Misconception #3: You Have to Mow the Lawn

Actually, this is far from true. As the landlord, you can mow the lawn. But you also can simply provide a lawn mower and make mowing the lawn part of your tenant’s lease. You’ll need to include tenant responsibility for fines accrued from your neighborhood association in the case of not mowing the lawn. That will get your tenant’s outside for a little yard work on Saturday mornings!

Conclusion: Don’t Give Up!

Many people feel overwhelmed by the idea of being a landlord. Maybe you have inherited some rental property. Maybe you are thinking about getting into the market. Whatever your initial reasoning, you have to know what you are getting into ahead of time. So keep this handy guide close by, and in when you are in doubt, refer to it and remind yourself of the common misconceptions about being a landlord. It’s a tough job at times, but the ease of the job comes with time. It won’t be long before you are reaping the benefits of all that extra income from your brand new tenants. Start looking for rental property today!

There is nothing more exciting than owning your own rental property. Many people invest in buying and developing rental properties as a means of earning passive income. However, one of the biggest nightmares that commonly face those who rent out buildings and other forms of property is dealing with nonpaying and filthy tenants. Every year, hundreds of thousands of landlords across the United States sue to get bad tenants evicted from their property. However, it is important to make sure that you follow proper city, county, state and federal laws to ensure that you are evicting a tenant according to the letter of the law. Rules and regulations regarding eviction will vary greatly, however, here is a comprehensive overview of generally how the eviction process works and tips to consider if you are looking to evict a tenant.

Communicate with tenant

Before conceiving of the idea of evicting a tenant, you might want to consider first talking with them to settle the situation before it becomes a legal dispute. The eviction process is very lengthy and can be very costly if not done right. Sometimes, its worth it to accept payment arrangements for late rent versus going through the process of evicting someone.

Give notice

The most common reason why most tenants are evicted is nonpayment of rent. If your tenant has not paid their month’s rent, you should immediately move to give a five to ten day notice demanding that rent be paid immediately or an eviction motion will be filed with the local court. Make sure this letter is signed, notarized and delivered in person to the tenant or someone who is at least 18 years old in the household. Every state and city has different requirements for these notices. Check your local city and state laws to determine how to proceed.

File a motion with local court

If you decided to proceeed with eviction, immediately file a motion with your local court to get a tenant evicted. There is usually a fee associated with this. Once you file an eviction motion, it will typically take anywhere between one to three business weeks before you assigned a court date. From there, a certified process server or a sheriff will have to deliver court summons to your tenant in person. This process can take anywhere between an additional two to three business weeks. In the meantime, if your tenant pays rent and you accept it, keep in mind, this will automatically drop your eviction motion.

Go to court

On your court date, make sure you have documented evidence demonstrating reasons for eviction. Generally for nonpayment, you will need to bring a copy of the lease, along with other relevant notices given to the tenant. If you are evicting a tenant on other grounds such as damaged property, make sure you have police reports, insurance claims, pictures and other evidence demonstrating financial loss.

Judgment and actual eviction

If the judge decides in your favor, a judgment for eviction will be immediately posted and given to a sheriff to escort the tenant out of the property. Usually, the courts give tenants a week to vacate the property. Some cities and counties might be longer. Usually, most tenants move out before an actual sheriff comes to clear out the property.

Hire a lawyer

It is generally recommended that individuals consult with and hire a lawyer to ensure the eviction process is carried out smoothly without any hassles. Doing this on your own can be costly and timely.