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All Forum Posts by: Marcia Maynard

Marcia Maynard has started 20 posts and replied 3564 times.

Post: Wear and Tear and Holes

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

We let tenants hang items on the wall with approved hanging devices (picture hooks) that we give them. We require they obtain prior written permission from us if they want to hang heavy items, shelves or televisions. We only allow things to be hanged on drywall.

At move-out we ask them not to fill the holes. We do it ourselves with our own spackle and paint, which is standardized for both color and sheen.

Post: Final Walk-Through

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

We do not return security deposits on the spot and we don't let tenants pressure us into doing so. We mail the final report and the refund check to the address the tenant provides, or to the rental unit if they do not give us a forwarding address. There may be unpaid utility bills pending or damages we discover during the turnover. I may not be able to catch everything during the final walk-through and some tenants won't even participate in a final walk-through. I will however mail the final report in a timely manner as soon as I finish it and I try to get it done well in advance of the 14-day deadline that my state requires.

I follow a move-out process that has served me well. Prior to meeting with the tenant at the rental unit, I gather my "move-out tool kit" (flashlight, 12 ft tape measure, 6 inch ruler that has big enough numbers to be seen in a photograph, camera, notebook & pen, disinfectant wipes, small handyman tool kit, step stool, mobile phone, copy of tenant move-in checklist, list of common charges). I keep a cleaning caddy in the car in case needed.

I explain to the tenant the process, then we begin.

1. I collect all keys from the tenant and ask them to sign a "Return of Possession" form, on which they write the address to which I will send their final report and security deposit refund.

2. I ask the tenant about any damages known to them and have them show them to me. I let them know what I consider wear-n-tear and what I consider to be damages. I photograph (with date stamp) damages with the tenant present.

3. I ask the tenant about wear-n-tear items that may need my attention to repair or replace during the turnover.

4. I do a thorough walk-through with the tenant and point out anything that catches my eye as needing attention. If it is damage that they did not tell me about I ask, "What happened here?" I love open ended questions, they give me the best chance of finding out what occurred and commits the tenant to "owning" it. I note whether items needing repair fall into the chargeable or not chargeable category. I will photograph anything chargeable and can usually give the tenant an idea of how much the charge will be. When the tenant moved in, I gave them a copy of move-out instructions, which I also gave to them again after I received their notice to vacate. With the move-out instructions I include a list of charges for typical damages. So there should be no surprises.

5. In addition to damages, I am looking for items missing and also items that need to be cleaned. If I notice either, I ask the tenant where the item is and how much it will cost if the item is not returned. If something needs cleaning, I give the tenant a chance to clean on the spot or accept that we will charge them for the cleaning.

6. I ask the tenant about any unpaid utilities. If it is during business hours, we call the utility at that moment to verify final bills have been paid and to turn the utilities back into our name.

7. During the final walk-through I ask the tenant what they liked least and what they liked best about living in the unit. This helps me better understand renter mentality, what I might use for marketing, and what things I might want to improve. I learn things not only about the unit, but also the tenant's thoughts on the neighborhood and our management style. Very helpful.

8. Finally, I let the tenant know that during our cleaning and preparation of the apartment for the next tenant if we find additional chargeable items, we will let them know. I inform them that their final report and any refunds due will be mailed within the next 14 days. I thank the tenant for renting from us and wish them well.

This move-out process typically takes one-hour. Good tenants will show for the appointment and want to participate in a final walk-through. The worst tenants do not. I write all my notes in a notebook and I do not write on the original move-in check list. The original is kept in the tenant file, along with the final report which I add later.

Hope this helps!

Post: Furnaces, mant.

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

@John Beese Couldn't agree with you more about the furnace filters. You get what you pay for. We buy the pleated kind. If we can get them on sale, we stock up. The furnace is a huge investment and worth the extra maintenance costs.

Post: Furnaces, mant.

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

@Levi F. Here's my experience. We have 15 units. Nine are gas forced air heat. Six are electric zonal heat. We have gas FA in our primary residence and electric FA in our family vacation property.

I absolutely prefer gas forced air heat - natural gas is a good value in our area and forced air movement keeps moisture down thus reducing problems with mold. Furnace air filters remove contaminants from the air and that is a real plus. If I could easily convert from electric zonal heat to a forced air system (either gas or electric), I would. FA can be a plus for prospective tenants from a marketing perspective and I think it would be for resale value as well.

We are in the process of removing electric base board heaters and changing to electric fan wall heaters in some of our units. The new Cadet Energy Plus in-wall electric heater is proving to be a good choice. Costs a bit more ($200), but worth it IMO.

EBB have no moving parts, so they have a longer useful life than in-wall fan heaters. They are also inexpensive to purchase and install. But for me, when I assess the cost vs. benefit and risk, it is not worth it.

Here is the problem I have with EBB heaters. They take up a great length of wall space that tenants often are not willing to give up, so they place their couches and other furniture too close to the heater, which is a fire hazard. EBB are typically placed below windows and tenants typically install curtains, often preferring floor length it seems (no matter what they agree to in the contract). That's another fire hazard. We have had tenants turn off or disconnect the EBB because they want their furniture where they want it, and then bring in their own space heater (against our policy) which is also a fire hazard. EBB heaters need to be cleaned/vacuumed at least once a year, preferably twice annually, which tenants rarely do. We actually do the cleaning now as part of our regular maintenance, because it is in our best interest to do so. EBB tend to attract children who crawl... little fingers in hot places and little fingers that turn thermostat dials. Other things also tend to fall into them, such as toys-crayons-bits of paper, barbie doll accessories, etc.

Post: Furnaces, mant.

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

Currently maintaining 10 gas furnaces. Our goal is to change the filters quarterly. Some tenants live a clean lifestyle and their filters last longer. If there are dogs or cats in the residence, then more often. If cousin ITT lives there, then bi-weekly. ;-)

This is my opportunity to check on other things as well. I ask the tenant: How are things going? Is everything working? Anything needing maintenance attention? Any damages? Any other concerns?

Tenants rarely take care of the appliances as well as we would. Do set up a maintenance schedule. Don't rely on the tenant doing the right thing. When I find something askew, it's an opportunity to teach the tenant the right way to take care of the property.

BTW, there are a number of other threads on this topic that you may want to read.

Post: LLC's, Landlord Insurance, Umbrella Policies

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

LLCs provide basic liability protection. You will benefit from the additional protection an umbrella policy affords. LLCs provide tax benefits too, depending on your situation. We had a top notch attorney draft ours instead of going the do-it-yourself route via the internet. The LLC defines key aspects of how we run our business. Before we put our properties in an LLC, one of our partners died unexpectedly and our properties had to go through probate. That was a lengthy and costly process. Now if one of the partners dies unexpectedly or wants out, the LLC defines what happens to the property and it won't go through probate. One thing to keep in mind, if you are getting a conventional loan, the lender may not allow the property to be in an LLC.

Post: Tenant needs extra time after moving out

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

He has right to tenancy until midnight tonight, unless he turns it over sooner. Don't jump the gun. Use a return of possession form and get him to sign it on Saturday and give you the keys. If he won't meet with you or won't give you the keys, document the property condition and photograph with a date stamp on Saturday. If he holds over and is still occupying the unit, proceed with legal notice. You may find the keys left on the kitchen counter when you enter the unit on Saturday. Many tenants who want to avoid landlords do that. If the property is left vacant, except for the boat and wood, and he left the keys then proceed with your turnover and treat the left over property as you need to according to your local landlord-tenant laws.

Post: Rental property renovation question?

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

A few of my inexpensive ideas to uplift a unit:

If you have floor registers, replace old worn ones with new ($5).

Put a strong decorative curtain rod in the living room; make sure it is easy to clean, meaning smooth - not intricate - ends. And make sure it is the kind that will be easy for the tenant to use when putting up and taking down curtains. ($30 or even less at a thrift store/garage sale).

Put regular curtain rods in the bedrooms, but make them the double type and make sure they are anchored well. Allows for a privacy sheer curtain on one rod and a decorative on the other. ($3) Note, if you have no curtain rods, the tenant will nail up their own and may nail into your nice wood casing!

Replace old mini-blinds with new, or clean/repair existing to look like new. ($20 or less). For large windows, consider two or three smaller ones rather than one large one. Blinds that are too wide are hard to use and more prone to damage.

Upgrade the light fixtures. ($10 or more) We do an unusual thing that sets us apart. We supply lightbulbs for the duration of the tenancy. Impresses the tenant and keeps the right kind of bulbs in our fixtures. No more large bulbs where an appliance bulb should be. No more 100 watt bulbs burning out fixtures and wiring. Our local electric utility company will exchange burned out CFLs with new for free, up to 6 at a time. No limit. CFLs go into most of the fixtures, a few have specialty bulbs. If the tenant wants the old fashion kind, we give it to them. They still pay for the electricity, so they usually opt for the CFLs. Cheap investment, good insurance, good marketing ploy.

Replace cheap bathroom ventilation fans with good quality- low sones, high CFM. Tenants don't like noisy fans. If the air is moving efficiently, the moist air will be quickly removed. ($100)

Exterior door hardware should be durable and always look new. Brushed nickel holds up well. The gold colored kind does not. If the door handles show significant wear, it will be noticed as they are touched everyday by the tenant. ($20)

Light switch and outlet covers are inexpensive to change out. Replace all cracked ones or old fashion ones with crisp new ones. Make the set screw line vertical - a trick electricians do to make the install look clean and pleasing to the eye. ($1)

I will invest in safety features and point them out when I show a unit. All tenants value safety. Also, I will invest in energy efficiency and point out energy saving features to prospective tenants. Good insulation, no single pane windows.

Make sure the whole unit is CLEAN and smells good.

For all turns, make sure the exterior entry is spotless. Knock down those cobwebs! Clean those steps! Put down a nice doormat. First impressions make a difference!

Post: Gas Furnace out on a Sunday

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

Glad you got it resolved!

We maintain 10 gas furnaces. Annual furnace servicing pays off in the long run. If you don't know how to do it yourself, set it up on a schedule with a good HVAC company. Significantly reduces the chance of furnace failure. When we do have a problem, our HVAC company will trouble shoot with us over the phone and will not charge if they don't have to come out. Of course we throw all our serious business their way. Gas furnaces actually have a very long lifespan if cared for.

Make sure the furnace filters are changed/cleaned regularly. We do this during our three month maintenance inspections, instead of leaving it to chance with the tenants. Also, make sure your tenants are not blocking the heat registers and cold air returns, or it will likely trip the safety and you will be getting the 2 a.m. call.

We made sure our leases address the tenant responsibility in this regard after purchasing a new property and learning the hard way. Yes it was a weekend. We got the "no heat" call and didn't know much about furnaces at the time. We panicked and called in the HVAC professional, only to find out the safety had tripped because the tenant had covered too many floor heat registers with boxes and thus obstructed the air flow. Move the boxes, reset the furnace. Five minutes, $50 bucks. Lesson learned.

Stay warm everybody!

Post: Gross income 3x rent too simplistic

Marcia MaynardPosted
  • Investor
  • Vancouver, WA
  • Posts 3,601
  • Votes 4,336

@Bill Gulley Yes, establishing rental criteria is important. Whether or not to inform prospective tenants of the criteria may depend local law. Washington State passed a law that requires us to have our criteria in writing and to make it available to applicants prior to accepting an application and application fee. Some landlords and property management companies list all their criteria on their website or in their advertising. Most only list key pieces, such as no smoking, no pets. But all must reveal their criteria at the time the prospective tenant takes the application. We print ours on the back of the application, so the applicant can't say they didn't receive it. And yes, some people manipulate their answers to match it, but they are usually outed by the time they consider applying or else during the verification process.

As to our criteria on income requirements? We state a minimum gross income of 3x rent and that we may consider 2.5x with extra security deposit. That allows us some flexibility. We also consider verifiable income equivalents in that calculation, such as section 8 subsidies and food stamps.