Uncategorized Archives - rad management

Posted on April 27, 2023 April 27, 2023

What is a property management agreement

Whether you are a first-time landlord with just one property or a housing association with a wide range of homes, a property manager can be a welcome addition to the team. A property manager can result in better-maintained units, increased profitability, and higher-quality residents. When you have fewer tasks on your plate, you gain the free time necessary to investigate new investments. You may even find ways a property manager can help with expanding your real estate portfolio. No matter your reason for hiring a property management firm, once you’ve found your ideal match, it is important to know the next steps, your property management agreement.

What Is a Property Management Agreement?

Once you have found a property manager that suits your needs, you will need to sign a property management agreement is. In the agreement, both parties document their responsibilities and outline the partnership going forward, in writing. This is a contract between the property owner and the property manager. It’s the perfect place to iron out the details of what will and won’t happen within your professional relationship.

Why Is a Property Management Agreement Important?

Documented agreements serve many purposes, the most important is the protection of all parties involved. As with other partnerships, it’s imperative to outline what each party is responsible for. The purpose of a property management agreement is to clarify the role of both the property owner and manager. The agreement ensures everyone knows what to do daily and can minimise disputes later. You want to know that your investment is in good hands. An agreement also delineates the daily tasks of running a property, such as responding to tenant requests, handling routine maintenance issues, and filing time-consuming paperwork.

What Should a Property Management Contract Include?

While the exact language of property management agreements can vary quite a bit, there are a few key elements that should always be present.

Who: Parties to the Contract

The document should begin with the full legal names of all those signing. Include the name of the property owner or the rental portfolio business name as well as the name and contact information of the property management firm. Also, this section should include the date the contract goes into effect.

What: Property Management Services

This is the place to be as explicit as possible about what property management services will be included. While needs vary from owner to owner, typically property managers take care of one or all the following depending on client needs:

Leasing Services
Rent Collection
Late Fees and Noncompliance
Preventative Maintenance and Repairs
Tenant Relations
Accounting and Reports

When: Contract Term

You’ll also want to incorporate dates of the agreement and what to do if the worst should happen. This section often outlines a set date for the contract to end or renew, what events may bring the agreement to an early end, what to do if someone wants out of the contract early, and how those involved will complete any outstanding obligations in that event.

Whose: Owner Responsibilities

In addition to stating explicitly what property management services will be offered, a property management agreement lists owner responsibilities. Most commonly, an owner who wants to work with a property management company agrees to have:

Reserve funds to plan for unexpected expenses.
Landlord insurance, which is probably legally required in your state anyway.
Final approval of tenants on all units.
Right of entry to the property they own.

Of course, there are limits to what an owner is entitled to when their property is occupied. It’s best to familiarise yourself with a few of the things landlords can’t do.

How Much: Fees

Property managers generally charge in one of two ways: a monthly percentage of the rent or a fixed amount. Both are common practices and are accepted in the industry. You just need to discover what works best for you and your investment. With all these moving parts to consider, the good news is that you don’t have to reinvent the wheel by creating a property management agreement from scratch. Beginning with a template and adjusting the language as needed to fit your situation is a time-saving step we highly recommend.

How R.A.D Property Management can help

R.A.D Property Management is an independently owned bespoke property management company which uses local knowledge to serve landlords and tenants to the highest quality. It’s vital that you find a management agent you can really trust. At R.A.D Property Management, we are truly passionate about what we do and this commitment to our work means we deliver a first-class service to both landlords and their tenants. We offer a complete property management service which can be personalised to meet your unique needs. So, whether you are a first-time landlord with just one property or a housing association with a wide range of homes, we can help. If you’re a client who lives on-island or who lives overseas it is essential, you have a team on hand they can trust to take care of all aspects of the letting process.

Posted on March 2, 2023 April 27, 2023

5 Pro Tips to Refine your Move-Out Process

When you or your tenant decide to terminate a lease, it sets in motion a move-out process with several stages. Often, this can feel like a rush to the finish line because there’s so much need to get right in a short amount of time to avoid too many days of vacancy and rental loss.

There are opportunities to make the process more efficient and get the next tenant lined up before the lease has even expired. Here are seven areas of the move-out process where property managers can get faster (with reduced turn times) and leaner—from optimising maintenance to security deposit dispositions.

1. Encourage Two-Way Tenant Communication Early On

It is important to determine tenants’ renewal eligibility, their intent to renew, and then sign a new lease.

If they don’t intend to stay, or if they aren’t eligible for a renewal, it’s important to know that early, so you can list the property as soon as possible. A property manager always aims to keep positive two-way communications with tenants, and this is particularly relevant towards the end of a tenancy when they can check in with tenants and get the ball rolling with the end-of-tenancy process.

2. Organise the Lease Termination Process

If you’re terminating a lease for reasons other than expiration, you know that local laws will generally dictate the process you must follow to be compliant. Most notices of nonrenewal must be sent within a certain period.

However, if your tenant wishes to end their lease, your property manager can trigger a notice to tenants to vacate. It can include fields that capture move-out date, date of notice, forwarding address, and reason for leaving.

Once the move-out procedures are triggered, a property manager can follow up with tenants and rental owners on key dates and actions that must be taken.

3. Get Ahead of Move-Out Prep

Once a tenant has been given a move-out date, it’s time to start prepping for turnover. There are four main areas in the move-out prep process where property managers can find efficiencies: inspection, maintenance, utilities, and follow-up.

Inspection

Using your original inventory report, your property manager will conduct a pre-move-out inspection. They can record any damages in real time and then generate reports for tenants and rental owners once the inspection is completed.

Tenants can use their report to repair damage ahead of their move-out date. That gives them the opportunity to get their full deposit back and avoids any last-minute surprises from their perspective.

You’ll also want to provide the report to rental owners so that they’re aware of any damage and can approve funds for mandatory and recommended repairs.

Finally, you can use the inspection report to assess the marketability of the home, so you can take the right actions to get it on the market as soon as possible. This also could be the perfect opportunity to recommend a renovation that will help maximise property rents.

Maintenance

With your inspection report in hand and a move-out date set, your property manager can start to arrange appropriate vendors to undertake maintenance on the property. Your property manager can manager contractors and ensure maintenance quality is up to scratch.

Follow-Up

Finally, your property manager can follow up with all parties. Communicate inspection, maintenance, and move-out dates, and keep rental owners in the loop about needed repairs and tenant turnover.

4. Take Possession of the Property

When a tenant is ready to move out, both the property manager and a tenant may have to sign a written agreement stating that the tenant is turning over possession, and the property manager is accepting it. You can also simply hand over the keys.

When it comes time to collect keys, remotes, and other devices for the home, your property manager can ensure everything is collected at the time of move-out. Provide tenants with a move-out envelope, which they can use to deposit all items connected to the home.

5. Templatise Your Security Deposit Disposition

In Jersey, all security deposits must be kept with My Deposits. This helps ensure that all deposits are managed fairly between the tenant and the landlord. Your property manager can manage the relationship with My Deposits as well ensure the deposit is returned to tenants at the end of their tenancy.

A successful – and quick – turnover process saves you and your rental owners money. It also takes the worry of a vacant property off your owners’ minds and helps to deliver a solid tenant experience.

With all these boxes checked, you’ll be able to refine your move-out process in pragmatic ways that can strengthen your entire leasing cycle. When you focus on making your move-outs more efficient and a great experience for all, you’ll be surprised at how this last part of the leasing process can be a lucrative beginning.

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Posted on February 7, 2023 February 7, 2023

Decorating your Rental Home

Decorating a home you rent can be tricky to navigate. Landlords are often tentative about the idea of any permanent changes to their investment. They’re also aware that your personal tastes may not necessarily be the same as that of any potential new tenants at the end of your lease.

This is understandable. After all, most landlords want to ensure that their properties remain as neutral as possible, to retain rental appeal. So, with this in mind, you might be thinking that your hopes of decorating your rental home (while also keeping your deposit) might be too much to ask.

This isn’t the case. There are plenty of ways that you can add your own personal touch to decorating your rental home without affecting how much money you get back when your tenancy is over. Here are our picks of the best.

Speak to your landlord first

The best place to start with any decorating plans is to have a friendly conversation with your landlord, explain your intentions to decorate the rental home and understand any rules or guidance that they have. You might find that your landlord is perfectly understanding and is more than happy for you to give your home a fresh coat of paint.

Some landlords will only want painting and decorating to be done by a professional to ensure the best quality, which they’ll likely expect you to pay for. Others may simply see your intention to decorate as a commitment to their property which means they’ll not have to worry about finding new tenants for quite some time.

Most commonly, a landlord will be happy with any non-permanent changes which is what we’ll focus on here.

Furniture makes all the difference

If you’re renting an unfurnished property, you can make a huge difference to the look and feel of your property simply by changing the furniture within it. This can be a costly venture though, so be sure to plan and understand the type of aesthetic you’re looking for before shopping around for the best deals.

Sofas, armchairs, wardrobes, and cabinets can all dramatically impact how a room appears. If you’re fed up with the neutral tones on your walls, try shopping for statement pieces which add a splash of colour to bring out your personality. If you’re not looking to fork out on a new sofa or kitchen table, consider vibrant soft furnishings like cushions, throws or curtains.

Rugs are another statement piece which can lift a room from dull to decadent. You can pay as much or as little for a rug as you like, so shop around. When buying a rug that adds vibrancy to your room, be sure to consider the room, so you purchase a piece that fits with your other furnishings.

Breathe life into your home with houseplants

Houseplants are an underrated interior design tool that can dramatically improve the appeal of your home. Pops of natural colour can invigorate tired rooms while also giving your home a more welcoming feel.

With modern devices and electrical equipment dominating much of our homes, the introduction of plants can do more than just improve the appearance of a room, they can boost our general wellbeing too.

As houseplants grow in popularity, you’ll be able to find some unique and attractive options without having to break the bank. Be sure to do your research though, each plant requires a different level of maintenance, you only want to commit to plants which suit your lifestyle.

Think about lighting

The right lighting can change the entire dynamic of a room. Consider purchasing a statement floor lamp which illuminates the room in a subtle amber ambience. Alternatively, soft hued tabletop lamps can give bedrooms a calming feel ideal for evenings spent reading.

Lampshades, lightbulb colours and fixture designs can all have an impact on the appearance of a room. Think outside of the box and don’t overlook the importance of your lighting choices.

Don’t rule out adding artwork and pictures to your walls

Many tenants shy away from the idea of adding any artwork or pictures to their walls. These touches are often some of the most important for personalising a space, but they fear their landlord’s wrath on inspection day.

Worry not! You don’t need to hammer nail after nail into your landlord’s perfectly painted walls. There are plenty of hanging options out there which are designed just for this purpose. Often these will come as double-sided strips which are designed to hold up your artwork and family pictures without damaging the paintwork. We do recommend avoiding the cheaper options on sale as they may not be as well-equipped to do the job.

There is also the option the speak with your landlord to put more permanent nails in. Landlords may be willing to put a few nails in specific areas they are happy with where you can add your artwork.

Now that you’ve found a solution for hanging your artwork and pictures, we recommend showing your true personality. Find artwork which says something about yourself, suits your décor and makes your property truly feel like your home.

Need a professional?

If you are looking to redecorate your rental property, make sure to get in touch with your property manager or landlord. Your property manager will have access to lots of professionals that will be able to make it happen.

Posted on December 4, 2022

Rental property maintenance: your go-to guide

Unless you’re already a seasoned handyman by profession, one of the most intimidating things about becoming a landlord is the regular repair and maintenance a property requires.

Whether you’re about to rent your property for the first time or you are trying to fill that empty unit on the first floor, this post will help you tighten up your maintenance habits and update your checklists so that your property functions like a well-oiled machine.

4 Starting Issues: Address Before Signing

When deciding to rent your property, the first thing you want to know is that you’re setting the rent fairly. Use these guidelines to make sure you’re getting the most out of your property while a tenant still gets a fair deal.

Once you’ve set the rent and advertised the property as available, there are five key things you’ll want to double-check before signing a new lease.

1. Building Codes

Landlords are responsible for building maintenance and protecting the safety of their tenants. One essential way to do that is to verify that you’re adhering to building safety codes. We’ve included common building codes here to illustrate what you should expect. Building and safety codes typically regulate:

Asbestos
Maximum number of people per unit
Smoke detectors
Carbon monoxide detectors
Adequate lighting in common areas
Plumbing
Electrical wiring
The structural integrity of the building

2. Rubbish Disposal and Sanitation

Before renting your unit, double-check the rubbish collection schedule. Does it run smoothly and regularly? What will tenants need to do each week with their rubbish? Including these details in tenant interviews or rental agreements guarantees that communication on sanitation is spick and span from the get-go.

3. Utilities

Between tenants, you’ll want to review the utility situation on your property. If you’re covering any utilities as the landlord, make sure to double-check all meters are working correctly and that there aren’t any leaks anywhere along the way. Even a small leak can be costly in the long run. Finally, you’ll want to make sure fast internet is available. While you’ll rarely cover that expense as a landlord, it’s a necessary utility to provide access to.

4. Common Areas

If you have common areas around your property, are they all clean and ready for new tenant use? Between tenants is a great time to check in on the regular maintenance needs.

General Maintenance Checklist

Regular maintenance constitutes a significant portion of a landlord’s responsibilities during a lease. In general, a landlord is responsible for anticipating tenants’ needs relating to property use. This includes regular, scheduled maintenance as well as repairs when emergency situations arise.

To stay on top of regular maintenance, every six months take the time to complete this checklist for every property or unit:

Replace batteries in smoke alarms and carbon monoxide detectors.
Check property efficiency. Compare utility bills from the same month of the previous year to quickly assess if they’re still in top working condition. This is especially important if you include any utility bills with a tenant’s rent.
Building maintenance. If you don’t visit the property often or live nearby, you don’t want to go more than six months without an in-person inspection. Make sure common areas are clean, the garden is taken care of, and the roof and gutters don’t have any leaks or weak spots.
Talk to Tenants. This doesn’t have to be a formal meeting, but check-in to see how everything is going either in person or via email. They’ll be aware of the day-to-day issues that you may not catch in a routine inspection.

By making a habit of locating small problems through regular maintenance and inspection, you ensure you won’t have to fix big (aka more expensive) problems later.

Hiring a property manager

A property management company can be on call for you, so you get a healthier work/life balance. They also come with their own vendor contacts and can usually provide better quality and more cost-effective regular maintenance. Plus, property management companies can handle tenant turnover efficiently.

By partnering with R.A.D Property Management, we can take much of the day-to-day management off your plate, keeping your property in top condition for you and your tenant.

Posted on December 4, 2022 December 4, 2022

How to Find the Best Property Management Company for you

Whether you’re new to the business or a long-time rental property owner, hiring a property manager can be a worthwhile investment. To find the perfect property manager you will need to spend time deciding what parts of the property management role you want them to take on and then you’ll need to consider multiple candidates.

There’s some work you must do upfront but finding the right long-term partner will save you significant effort and money and will take the stress out of owning a rental property. We have put together the tops things you need to consider when choosing a property manager.

Decide What Your Needs Are

A property manager’s job responsibilities depend on your needs. The best property management companies can take care of all property-related tasks, including rent collection, completing maintenance requests, advertising your property, finding tenants, and handling any accounting related to your property.

Before finding your future property management company, you need to decide the level of involvement you want your future manager to have in the running of your property. Some property owners want their managers to simply take on the day-to-day tasks related to running a property. Others want their property managers to oversee major renovations and capital improvements. The choice is yours, but you need to know this information before you jump into this process.

Get Referrals

One of the best ways to find a good property manager is to get referrals from people who have used a manager before. If you’ve recently purchased your rental property, asking your estate agent if they know local property managers is always an option. If your friends are also property investors, maybe they’ve got a few pointers for you, too.

Choose Between a Big Shop and a Small Operation

There are advantages and disadvantages to both large property management companies and more boutique operations. It’s up to you to decide what kind of experience you are looking for. Larger companies frequently have in-house maintenance staff that can respond to your tenants quickly and efficiently. Larger companies may also have more streamlined leasing processes in place that help get your property in front of your ideal tenants quickly.

On the flip side, a smaller shop may make you feel more catered to, simply because their list of properties is smaller. They are also able to tailor their services more specifically to your needs. Smaller shops may also charge lower rates for their services. We recommend interviewing both kinds of companies to decide which kind of property manager is best for you.

Interview Candidates

Once you’ve compiled a list of property management companies that seem promising, you can schedule interviews. You should treat this step the same way you’d treat the interview process for a potential employee. After all, your property manager works for you. Set up a phone call or meeting with your property management candidates. In this interview, you should get the answers to questions such as:

What is your process for setting expectations and aligning with my investment goals?
What do you charge for your services?
How many properties does your company manage?
What kind of properties do you manage?
What services do you offer? How about to tenants?
Who will be my dedicated property manager, and what level of experience do they have?
Do you have your own, designated 24-hour emergency number that tenants can call?
Do you have your own staff of maintenance workers? If not, do you have a dedicated list of maintenance workers you can rely on?
What’s your average response time to emergency calls?
How do you advertise properties?
What’s your occupancy rate?

From this list of questions, you should be able to figure out if you’ve found a strong fit or not.

After your first interview, narrow your list down even more. You should have two or three who really stand out. You should be looking for candidates who communicate well, who are driven to help grow your business, and who offer the exact services you’re looking for.

Check Out Their Online Presence

You can learn a lot about a company based on their online presence. If you plan on relying on your property manager for marketing services, the ways in which they use social media can be a good indication of how successful they’ll be. You may also want to be able to compare multiple property managers to each other at the same time.

Additionally, since you’ll be depending on your property manager to handle tenant interactions of all kinds, take some time to read your prospective company’s reviews. Based on their interactions with both negative and positive feedback, you’ll learn how well they’ll respond to your tenants.

You can see R.A.D Property Management’s Facebook Page here.

Negotiate Your Contract

Once you’ve decided which company you want to go with, be sure to carefully negotiate the terms of your contract. Your contract should make it clear who your main point of contact is, how much they charge for their services, how maintenance and repairs will be handled (and what their response times will be), and how many days’ notice they’ll require for you to terminate your working relationship (and vice versa).

Your contract will also highlight what your own responsibilities in the relationship will be. They should also make it clear how you can expect to receive your tenants’ rent every month, whether they’ll be responsible for collecting tenant security deposits, and how your manager will deal with delinquent rent and any legal disputes that may arise as a result. Being diligent and detail-oriented in the contract stage will give you peace of mind and help you feel well supported.

Once you’ve made the decision to hire a property manager, it’s so important to hire the right one. If you follow these steps, you’ll be headed in the right direction! R.A.D Property Management is here to help. Get in touch to find out more about our services.