As an owner of rental properties would you like to spend $100 each spring to have the a/c checked out and the filters changed?

If so, would you then like to have us go again in September to change the filters again for another $65?

If we send an a/c company to do a maintenance check, are they 9 times out of 10, going to find a problem which will end up costing more than the initial $100?

Here is the basis for the question.

Tenants are told to change their filters monthly. When we inspect, we find they do not do this, no matter what we require. This could lead to costly repairs or replacement. Can I legally prove the tenant was negligent in changing the filters to charge them for the repair? Sometimes, but not often. Oftentimes the dirty filter is only part of the problem. If you have a home warranty, most of the time they will blame the tenant for the need of a replacement unit and deny the claim. It is a battle I encounter every summer. Or else they say the unit was not maintained preventatively and again deny the claim. This has been an ongoing issue with much debate. We would love to hear a few solutions and ideas to combat this problem.

As to the how, we offer 3 options:

• Past eviction or collection accounts from past landlords. These things are probably the biggest red flag on a credit check. If a tenant has recent bad rental history leading to eviction or collection, it is most likely best to turn them down. If they are moving out of their current rental due to an eviction, it is most likely best to decline them in order not to end up with an eviction on your hands in the future.
• Negative rental history from their current landlord. If their current landlord give you a report that they have lived in the property for one year, and have been late 11 times, this is another one of those red flag. You do not want to move a tenant in that you will have to chase down monthly to collect rent.
• Monthly income is another one of these issues. We require that our tenants make at least 3 times the monthly rent in order to approve an application. This requirement has served us well over the years, it enough income for the rent to be paid and not too high of a requirement that tenants cannot meet.

With this being said, we always do find out the other side of the story from the prospective tenant. There have been situations with eviction or collection balance where the tenant has documentation showing that the issues was in fact not the tenants fault. In these cases, the best thing to do is review all pieces of information and make your best choose you can with the facts, and not on emotion.

We hope this helps you choose your own requirement for your rentals that fit your needs.

An open bankruptcy allows an individual to continue to include debt for several months going forward until the BK is finally discharged. This debt can and often times does include rent and fees or any other tenant charge that happens to be owed at the time of filing as well as adding future rent along the way till discharged. Absolutely nothing can be done in the form of collecting on the debt nor can an owner file for eviction. The tenant basically becomes untouchable for the term of the BK, meaning the tenant gets to live for free until the BK is discharged if they so choose. The only recourse an owner has is to spend the money to hire a lawyer and attempt to convince the judge that his property should be excluded from the BK.

Unfortunately, when a tenant moves in there is nothing we can do to stop them from filing a future bankruptcy but we do avoid an active/open bankruptcy at all costs.

Valentine Sales & Management does a stringent background and credit check on all applicants we screen in the Phoenix area, protecting our owners from loss of rent is always of the utmost importance.

There is rarely a time when a home warranty is not an issue on a rental home. Let me explain why:

1. Cannot easily track the repair
2. It is not our vendor
3. They do not respect our laws/time frames
4. Vendors don’t contact us to inform us of what the problem is
5. Home warranty company does not contact us to inform us of what the problem is
6. Vendors are contracted with HW for peanuts, work tends to be shoddy
7. Cannot control what the vendors tell our tenants

I cannot tell you how many times a HW vendor has gone to a property to repair an a/c only to tell the tenant that the unit needs to be replaced and he is only putting on a band aid. We then receive calls from irate tenants demanding new a/c units that the HW has no intention of replacing.

This week we had two tenants wait 3 days for a call from the HW vendor for their a/c’s that had gone out. The calls to make an appointment never came. I had to spend an entire morning arguing with HW company to get an approval to send my own vendor and get reimbursed. I was finally able to get the approval and my vendor showed up within 3 hours. Although the owner may save some money on the repair itself, they ended up spending the savings on giving a rent credit to the tenant for excessive time without air. The amount of time spent on this was immeasurable. And that was just this week with air conditioners.

This problem exists across the board but is worse when we are under a time constraint. The lack of follow up makes more work for us as Property Managers.

I don’t like being asked whether or not I recommend Home Warranty’s. It depends completely on your perspective. Owner/Tenant/Property Manager, each will have a different perspective. I believe the only way to get around this as a Management Company is to charge for the extra work it takes to deal with warranty companies. I am not sure if that is the solution, but in the meantime I hope it cools off!!

“While having a criminal record is not a protected characteristic under the Fair Housing Act, criminal history-based restrictions on housing opportunities violate the Act if, without justification, their burden falls more often on renters or other housing market participants of one race or national origin over another (i.e., discriminatory effects liability). 9 Additionally, intentional discrimination in violation of the Act occurs if a housing provider treats individuals with comparable criminal history differently because of their race, national origin or other protected characteristic (i.e., disparate treatment liability). (Section III).”

Basically what this means is this:

1. Arrest records are not a lawful reason to deny a rental applicant.
2. Convicted criminals may be denied housing if the reason for their convictions clearly demonstrates that the safety of your residents and/or property are at risk.
3. Verbiage in your screening criteria cannot say “all criminal convictions will be denied” this would now be considered discriminatory and in violation of the Fair Housing Act.

It now falls upon the landlord to determine if an applicant would pose a demonstrable risk to resident safety and/or property. Relying solely on a tenant background check is no longer an option. A landlord should now consider how long ago the crime occurred, the situation surrounding the arrest or conviction, whether the crime will in some way inhibit the person’s ability to be a good tenant and whether the person has received a form of treatment or some sort of rehabilitation. What you can ask for though, is evidence of treatment in the form of a certificate or history from a previous landlord or letters of support from friends or coworkers.

Another current trend has everything to do with millennials. They are choosing to rent instead of buy. This age group watched their parents go through the housing crash and suffer financially for years following. They have no interest in experiencing the same thing. They are also finding their jobs to be less secure, i.e. pensions no longer exist, relationships are less stable, commitments appear less valuable, not to mention shorter attention spans and the desire to move around.

What does this mean? This means we have higher rents, longer leases, higher demand equaling less time on the market and a continuously strong rental market. All good news to our current investors as well as those wanting to get involved in the rental home industry!

Phoenix property managementIf you have any questions or would like to learn more about our services, please reach out to us at Valentine Sales & Management!

If we have a good tenant and they were screened properly, then hopefully we have a tenant who cares about their credit score and future rental history. With that said LIFE happens:

• Job loss
• Divorce
• Unexpected job transfer

These curve balls can put a tenant in a position where they can no longer pay rent.

Your lease agreement should clearly spell out what happens if a tenant can’t fulfill the lease term. Be sure they understand the consequences of breaking the lease prior to signing.

Here are some options:

In the lease add a lease break clause such as:

“If you need to break your lease for any reason you can buy out by paying an amount equal to 2 months up front and the current month you are still in the property”. The security deposit cannot be used toward rent; it is specifically for potential damage and can only be applied after the tenant vacates.

Another option:

Tenant allows you to show the home and a qualified tenant signs a lease. This may be idealistic, but it can happen! The current tenant pays till end of the month and boom the new tenant moves in after any repairs and clean up.

If the tenant cannot pay the rent, then you can follow the standard course with a 5-day notice as well as consulting your attorney. Please note I am not an attorney and cannot offer legal advice but I can assist with general questions.

As a Phoenix property management company, we take many courses of continuing education and attend conferences that relate to our field, and with our experience in management we have seen a few roadblocks that we all hope to avoid.

If you have any questions we can assist with, please contact us at VSM, our professional team is ready to help!

Debbie Valentine Realtor/Owner

You may ask for written verification from the tenant’s doctor stating the tenant is disabled and in need of a service/support animal. However, you cannot ask for specifics on their condition.

You may also require copies of the animal’s vet records showing they are licensed, in good health, and up to date on all vaccinations.

I occasionally come across falsified doctor’s letters from applicants trying to avoid paying a pet deposit, or trying to get around breed restrictions. You can buy anything online these days. My suggestion is; do your homework. A quick google search can tell you a ton. Call the doctor’s office on the letter to verify. If you are presented with a letter dated a year ago, request a current letter. If the applicant is legitimate, they will have no issue supplying you with the requested details.

Or call us to learn more about property management in Phoenix, and we will handle it for you!

a. If current employment has been only for a short time, go back further, ensure this applicant doesn’t hop from job to job
b. When self-employed, request 3-6 months of bank statements and average it out so income totals 3 x the monthly rent in any given month

a. The best indicator of future behavior is past behavior
b Ask the previous landlord pertinent questions regarding care of the home, deposits, notice to vacate, late rent, evictions etc.