Avoid These 5 Major Mistakes People Make When Hiring a Mover
Moving is stressful. And when you’re busy finding a new place to live, selling your current home, and then packing up your entire life, selecting the crew who will move your stuff is likely last on your to-do list. That’s ironic, because you’ll be entrusting them with all your life’s possessions.
Even if you manage to hook up with The Most Amazing Moving Company Ever, we can’t promise bad stuff won’t happen. But you can prevent some unnecessary duress if you have the right team in place. The process starts by schooling yourself in what not to do.
Here are five of the top mistakes people make when hiring a mover…
1. Waiting too long
So you’ve wait until the weekend before your move to make those calls to moving companies. Well, if you procrastinated in your search, you won’t leave any time to do adequate research and get estimates. That means you might not get the best rate (spoiler: Moving’s expensive!) and worse – you could get scammed.
Plus, delaying selecting a mover can reduce your options – and unfortunately, unlicensed and unethical operators rely on this aspect of human nature to take advantage of consumers.
Take the time to get three in-home written estimates and, time permitting, visit the moving company in advance of making your final decision.
2. Being a total cheapskate
No, you don’t want to pay more than you have to for a move. But beware of being too budget-conscious.
One of the biggest mistakes you can make is going with the cheapest estimate. The cheapest bid typically means that the company uses casual, inexperienced laborers who don’t care a whole lot about your belongings.
Conversely, higher-end estimates almost always assure trained, professional, and experienced crews who will show up, smiles on their faces, and move your stuff safely and efficiently.
In other words: If there is a hiccup, they will figure it out. They’re not leaving your stuff on the front lawn.
Disreputable movers often lure customers with lowball prices and then hit them with unreasonable charges or, in extreme cases, even hold their belongings for ransom.
This actually happened to an educated member of the Patrick Parker Realty team after being displaced by Hurricane Sandy. There weren’t many choices due to so many displacements, but this member of our team did all her research. However, when the movers showed up that day, they turned out to be an outsourced crew by the original moving company she had hired.
So be diligent from the time they arrive at your door. Look for consistencies and inconsistencies, such as license numbers that should appear on the moving truck. Make sure everything that was discussed beforehand, is what is being delivered the day of your move and all paperwork being presented to you before the work begins aligns with all conversation and paperwork you’ve kept during the research process.
3. Not asking the right questions beforehand
A professional mover will be happy to answer any questions you may have, so if they seem uncertain or won’t give you straight answers, that’s probably a mover to avoid. Ask them about the moving process so you understand what they will be doing and when they will be doing it, from start to finish.
Here are some questions we recommend asking before selecting a moving company:
• Are you licensed and insured?
• Are you a certified professional mover who meets the standards of the American Moving & Storage Association?
• Are you a member of your state’s moving association?
• What price are you willing to put in writing as a “not to exceed” threshold price?
• What are the dates you can commit to for pickup and delivery for my move?
• Can you give me some references of people you have recently moved?
• How are your crews selected?
• Have you ever done business under another name?
• What actions do you take to ensure that the people who come into my home are skilled, professional, and safe?
4. Falling for fakes
The internet is awesome. right? Whether you’re looking for comprehensive info on the best mortgage rates, or you simply must know immediately the name of that song that goes; “da-da-da-da-dah-ooh-ooh-yeah”, the web is there for you.
And it’s there for you to find your next mover, too. But we shouldn’t have to tell you that online info can lead you astray. Double check your info by getting moving company referrals from an industry trade association or use a site that verifies and vets moving companies.
Sure, there are sites like Yelp you can rely on, but don’t do yourself a favor thinking that if you use a pay-for site like Angie’s List that the search results are any more credible. Our aforementioned team member, that’s where she first found her mover before she performed her interview and research. When she contacted Angie’s List to make them aware of what happened, she was told that their listings are paid listings and they do not vet the businesses on their site. That is disturbing given what Angie’s List and other site’s like these imply in their ads.
Another word of caution: Beware of blindly trusting that the company you’re hiring is who it says it is… another scheme; some disreputable movers try to lure customers in by using names that are similar to reputable companies. Check the reputable company’s website to make sure the local agent is affiliated with the brand name it is claiming.
In addition, disreputable movers are often changing their name to escape consumer groups and bad reviews. Be cognizant of where your Mover is located on Google Maps and if there was ever another moving company located at that address, it a red flag. Sometimes you’ll find, as our team member did, there’s not even an office located at that address.
According to the American Moving & Storage Association, the lack of a physical, local address is a telltale sign of a fake mover. Here are other red flags:
• No federal motor carrier number, which shows the mover is registered with the federal government for a state-to-state move
• Movers who refuses to visit your home to provide a written estimate for an interstate move… Responsible moving companies will provide in-home estimates and explain why the pricing is the way it is
• Movers who seem uncertain or unresponsive, especially when asked about their claims process if something gets damaged or lost
Ultimately, add this to one of the many reasons you should never buy or sell without a Real Estate Agent. Your Agent has a huge network of trusted professionals that handle every aspect of the buying/selling/moving process. Do not hesitate to ask your Agent for a Moving Company referral.
5. Agreeing to pay a deposit or pay in cash
If you’re moving across town, this one’s a huge red flag.
Typically, you should not be required to pay a deposit to have your items moved, most companies request payment at the time of delivery.
If you’re moving out of state, your moving company could request a deposit. But make sure it’s reasonable.
A reasonable down payment should be in the hundreds of dollars toward your state-to-state move, rarely exceeding 20%.
Similarly, avoid movers that demand cash instead of allowing payment by credit card.
We hope you don’t, but do you have moving horror stories to share? What tips would you add to our list? Sound off on the Patrick Parker Realty Facebook Page. You can also visit our Twitter, LinkedIn or Instagram feeds. And don’t forget to sign up for our monthly HOME ADVICEtm email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
How to Remove Stripped Screws, Fill Nail Holes, and Other Home Hacks
Our homes are full of small, but mind-boggling challenges, such as: Is there a way to remove stripped screws? Or eliminate those water rings on your coffee table, or those divots where your table once sat on your carpet? If you’re looking for answers to common conundrums you might encounter, a new book can help: “Tidy Hacks: Handy Hints to Make Life Easier.”
Written by home hack expert Dan Marshall, this modern-day maintenance manual is geared to people who have no time for home maintenance. The fix-its that it recommends are insanely easy to accomplish. And since we’re all about making home management easier, check out a few of these genius tips below.
How to remove stripped screws
Can’t put in (or take out) a screw because that X-marked divot is too worn to turn with your screwdriver? Place a flat rubber band over the top of the screw head, and insert the screwdriver so it pins the rubber band in place. The rubber band will give you enough grip to remove the screw with ease.
How to shine shoes with a banana
The combination of the potassium found in bananas (which is also an ingredient of shoe polish) and the natural oils in a banana peel makes a great natural leather shoe polish. So, when your shoes need shining and you’re in a pinch with no shoe polish around, reach for the next best thing: a banana. Rub the inside of the peel on your shoes to buff away the scuff.
How to organize cleaning supplies
Get your cleaning supplies out of that awkward low cabinet under your sink. If you hang up a shoe organizer in an area that is easy to reach, like the back of your laundry-room door, you can store them handily, without turning yourself into a pretzel. The best part? Close the door, and you won’t have to look at the bleach and Windex until it’s time to start cleaning.
How to fill nail holes
For many people, hanging a picture or a piece of art isn’t an exact science, and it often involves a certain amount of trial and error. If you happen to hammer a nail into the wrong spot on the wall, grab a crayon that matches the color of the paint and draw on the hole until it is filled. Wipe away any excess wax with a clean cloth.
How to get rid of a water ring
How dare your guests ruin your beautiful wood table with their damp drinking glasses? Don’t lose your head, though, because you have this ingenious trick to remove the liquid stain. Turn a hairdryer on high heat and hold it close to the water mark. It will start to disappear before your eyes! Keep the heat on the ring until it’s completely gone.
How to get rid of dents in the carpet
Rearranging the furniture in your bedroom or living room can be an exciting way to reinvigorate your home decor, but a heavy table or armoire is sure to leave unsightly dents in your carpet. Believe it or not, the secret of getting rid of those dents is hiding in your freezer. Simply place ice cubes along the indents, leave them there until the ice has melted, and then vacuum over the area to fluff up the fibers.
Do you have any ingenious Home Hacks to add to our list? Sound of on the Patrick Parker Realty Facebook Page, or on our Twitter or LinkedIn feeds. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this delivered straight to your inbox. You may unsubscribe at any time.
When Is a Good Time to Rent? Not Now.
People often ask if now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.
The Census Bureau recently released their 2016 median rent numbers. Here is a graph showing rent increases from 1988 until today:
As you can see, rents have steadily increased and are showing no signs of slowing down. If you are faced with the decision of whether you should renew your lease or not, you might be pleasantly surprised at your ability to buy a home of your own instead.
One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, meet with a local real estate professional who can help determine if you are able to today!
What are your experiences when it comes to buying vs. renting? Sound off on the Patrick Parker Realty Facebook Page or on our Twitter or LinkedIn feeds. And don’t forget to subscribe to our monthly HOME ADVICE email newsletter for articles like this one delivered straight to your inbox.
Rent or Buy?
Introducing the Rent vs Buy Calculator
Should you buy or rent? This is a question most of us will likely face in our lives, whether buying a house makes more financial sense than renting a home. There is a way to understand the financial impact of buying vs. renting. The realtor.com® rent vs. buy calculator can help you calculate the net cost of buying a home versus the cost of renting over time.
Net costs compare the total amount of money you would be spending over time, minus the potential value you might receive if you someday sell the property. View the interactive graph and see what this looks like at different times, and how it compares if you were instead paying rent. From the tool, you’ll see that the amount of time you plan on keeping the home has a major impact. To get more personal, you can customize the advanced options to crunch more specific numbers and evaluate more specific scenarios. But keep in mind that a financial comparison is just one of many factors when deciding whether to rent or buy.
Rent vs Buy Calculator
This Rent vs Buy calculator compares the total cost over time of renting with the total cost of buying. It includes the most common expenses of buying and renting and takes into account how these expenses are changed over time by applying the rate of inflation, home price and rent appreciation rates, and the rate of return on the investments.
This sample graphic shows how this tool will calculator total net costs and how they change over time. The graph is interactive so you can click on any year in your results to a more detailed breakdown.
It also takes into account something known as lost opportunity costs, which is the return you could have earned by investing your money instead of spending it initially for costs like down payment or yearly. The calculator accounts the lost opportunity costs for all parts of the buying and renting scenarios.
Are you a former renter who recently graduated to a buyer? Or are you a renter hesitant to make that jump? Post your stories on the Patrick Parker Realty Facebook Page, Twitter Feed or on LinkedIn. Plus don’t forget to subscribe to the monthly Patrick Parker Realty email newsletter for articles like this one delivered straight to your inbox.
Rental Listing Scams! Read Before You Search
As you begin researching new apartments or homes, please educate yourself on listing scams and online fraud. We urge you to be vigilant in researching the legitimacy of any potential listings and perform all appropriate due diligence.
How Do Rental Listing Scams Work?
Found a deal that’s too good to turn down? Have the owners moved to another state and can’t show you the property? Is someone asking you to send them money via Western Union or Moneygram? These are possible signs of rental listing scams used to defraud users into wiring money or giving up personal information.
Scammers use a variety of tools and methods to post fraudulent listings on many internet listing sites. One method includes manually listing available properties by copying existing listings and posting them with new prices. They also take existing for-sale properties and post it as a rental listing. In addition, they use listing management tools and syndicate the fraud across many different sites.
Once you’ve contacted a scammer, they usually ask for a few things — information, urgency, money through Western Union or Moneygram. Stop there. (If there is an opportunity to flag the listing – particularly if you are requested to wire money – do so immediately).
RELATED: Download Our Copy of Truth in Renting
How To Spot and Avoid Rental Scams
Below is a list of best practices on spotting and avoiding scams. Renter beware. Be vigilant in protecting your private information and review these tips:
1. The easiest sign of a rental scam is when someone asks you to wire money via Western Union or Moneygram. Scammers usually ask for a deposit or first month’s rent before you even see the property. Don’t send money for whatever reason.
2. The owner is out of the country on a mission, job opportunity, or military service. Always meet the landlord or agent in-person and at the property. If they can’t meet you there or show you the property, then it’s possibly a scam. Good idea is to always have a friend or family member with you.
3. The listing is significantly less than nearby similar properties. Beware. If it seems too good to be true, then chances are that it’s a scam.
4. Emails from scammers are often littered with grammatical mistakes and typos. If the email is difficult to read, lengthy, or includes a sad story, then it’s possibly a scam.
5. Research the email address and phone number of the landlord or owner on Google. You might find that someone else has already posted a report on this individual.
6. Don’t fill out an application until you’ve seen the property. Some apartment communities will offer legitimate applications via a property’s website, but don’t submit an application with personal information until you’ve verified the property exists.
7. Never, under any circumstances, send money to anyone without securing a lease and confirming the property manager has legal right to rent the property.
RELATED: Download Our Copy of Truth in Renting
AN IMPORTANT NOTE
Even if you are going through a reputable broker; there is a chance they have been lied to by the person who hired them. In addition, it is sad to say, some Agents are less than thorough. When you are presented with a lease you have a 3 day Attorney Review period. During these 3 days the rental cannot go to anybody else. Take advantage of these 3 days to research the name on the lease, ask your Agent to confirm that the name on the lease matches the name on the property tax record. If not, ask why. If it is a privately owned rental in a complex with a board or management company; call them. Ask if there have ever been any issues with the owner. And if you have access to an Attorney, their expertise is an added plus. Due all possible due diligence.
RELATED: Download Our Copy of Truth in Renting
If you feel you are the victim of a fraudulent lease having gone through a reputable broker; contact the Real Estate Commission immediately.
7 Rental Rules Worth Breaking (Yes, It’s OK To Paint)
You scroll through a design blog hyping some miraculous, budget-friendly kitchen renovation, and that’s when it hits you: homeownership envy. While mortgage holders get to decorate with impunity, those of us still in possession of a lease can feel unfairly limited in our design choices.
But while it may seem counter intuitive to put a lot of effort into that apartment for rent in New Jersey, it’s still your home — and there are lots of benefits to loving where you live. So why not do a little work to make it a haven instead of a temporary crash pad?
Contrary to popular lore, there are lots of ways to upgrade your apartment without forfeiting your deposit.
Yes, it really is OK to paint. Not only OK but also highly recommended — there is no quicker way to personalize a space than to customize your colors. Ideally, you should check in with your landlord first, who will usually sign off as long as your chosen shades aren’t too wacky; sometimes they’ll even pay for the supplies, considering a fresh coat of paint could be a point in their favor.
But many a guerrilla renter has been known to paint without permission, with the plan of returning to the original shade right before they move out. If you’re feeling hesitant about changing up your apartment’s colors, at least consider touching up the trim, which more likely than not is dull and yellowed.
You can also discuss this with your Jersey Shore Rental Agent before signing the lease. Request an agreement be made with the landlord that you will paint neutral colors and even present the color palette to them for review. If they approve, this can go into the lease. Now you have it in writing. Chances are the landlord is relieved and secretly grateful; they don’t have to paint after their last tenant left and you’ve enhanced their property for the future.
FREE DOWNLOAD: Rental Move-In Condition Checklist
No, we don’t suggest permanently papering your kitchen in a custom print that will later take hours to steam and scrape off. But temporary wallpaper has come a long way in the last few years; even CB2 has recently begun offering self-adhesive paper in modern patterns.
Installation takes only a couple of hours; just play it safe and order an extra sheet or two lest you misalign on those first couple of tries. Those leery of their ability to properly DIY can start with an accent wall or opt for a temporary decorative decal. Another, more outré idea: Wallpaper your ceiling.
Many, many rentals come with those unfortunate flush-mount fixtures. It’s probably impractical to change them all out, but an upgrade in high-traffic rooms is worth the money and effort.
Online pop-up sales are a great way to shop for funky fixtures on the cheap; you can also scour antiques stores and flea markets for chandeliers to strip and repaint. Consider both aesthetics and actual light quality when shopping, and don’t forget to factor in electrician costs to your budget if installation requires rewiring (if there’s a junction box already in place, you might be able to pull it off yourself).
You might be stuck with those honey oak cabinets, but that doesn’t mean you’re stuck with their original hardware. Swap out those superboring polished nickel pulls for something funkier and even mismatched (antiques stores frequently have drawers full of old knobs). Just stash the original hardware somewhere safe — and easy to remember — so you can replace it all right before your lease ends.
Let us guess: hideous plastic vertical blinds with overly long lift cords, right? Change those out immediately for cordless blinds or Roman shades, which look far cleaner and don’t break. If you decide to hang curtains as well, spring for opaque rather than translucent curtains, which tend to look cheap, and install the curtain rod several inches above the window frame for a more dramatic effect.
Hate that 1980s plastic showerhead with the built-in radio? You’re not stuck with it. Upgrading to a high-end fixture — a rainfall showerhead, say, with a filter for hard water — can add instant luxury to an otherwise humdrum bathroom. If you need it, seek out a YouTube video tutorial to walk you through the actual switcheroo. You can make the swap on your own with the help of pliers and a little plumber’s tape.
An actual renovation
It sounds absolutely bonkers, but there are renters out there who have invested in full-blown kitchen and bathroom redos. And it’s not a scenario for those lucky enough to occupy a rent-controlled space.
Here’s the way these negotiations often go down. A renter will offer to spend the time and money to significantly improve the landlord’s property; in turn, the landlord agrees to negotiate a longer lease with reduced rent. It’s the very definition of a win-win: The renters get the apartment of their dreams, and the landlord gets a property upgrade and the peace of mind that comes from not having to find new tenants every year.
Extra win: When that long-term lease eventually ends, the landlord will likely be able to fetch more rent for the improved space. First-time landlords might be especially open to the idea if they’re struggling to find the money to properly renovate their new property.
RELATED: So You Think You Can Be A Landlord?
Again, if you know you may want to renovate before moving in; consider discussing this with your Rental Agent in advance to get the landlord’s permission so it can go in the lease. They’ll be no questions at the end of your lease term as to your security deposit when you’ve left the rental better than you found it, albeit different.
RELATED: 7 Things to Know Before You Rent
What apartment decorating and rental rules have you broken? Sound off on our Facebook or Twitter pages and don’t forget to sign up for our monthly Patrick Parker Realty eNewsletter for articles like this delivered straight to your inbox!
So You Think You Can Be a Landlord? 7 Things to Consider…
First-time homebuyers are a declining group. Historically, 40 percent of homebuyers have been first-time buyers, calculated yearly from July to June. But that percentage continues to shrink, even if the true homeownership rate among millennials climbed ever so slightly last year.
If you’re already a homeowner, your wheels might be spinning right about now — if people aren’t buying starter homes, then the rental market has to be booming, right? It is in many areas, particularly where unemployment is low, the population is high, and homes aren’t overpriced.
You might think you’re ready to become a landlord, but learning how to be one by trial and error is not necessarily the best way.
Here are seven tips to consider before you take the plunge:
1. Ideally, you want to live near your rental property
That way, you can check on it periodically (after giving your tenants proper notice), take care of repairs yourself, and show the property when it’s time to re-rent it.
2. Know landlord-tenant law
Most states have specific landlord-tenant provisions that cover issues such as security deposits, what sort of access to your rental property you can expect to have, and how much notice you need to give your tenants when you want them to leave. There also are federal laws you need to know, such as habitability and anti-discrimination laws.
Ron Leshnower, real estate attorney and author of Fair Housing Helper for Apartment Professionals, says that “many landlords gloss over housing discrimination laws because they assume that as long as they’re not racist or sexist, they needn’t worry about fair housing violations.”
But fair housing liability traps can arise in many ways, so it’s important that you fully understand the law and ensure that you aren’t breaking it.
FREE DOWNLOAD: New Jersey Landlord-Tenant Law
3. Make sure you can enforce the rent being paid on time
This seems like a no-brainer, but if you get too friendly with your tenants, you might just let them slide a couple of weeks here and a partial payment there. Before you know it, your tenants are six months behind.
But that doesn’t mean you shouldn’t treat tenants with respect. Creating rapport shows respect and makes the job of collecting rents and dealing with repair requests that much easier.
4. Screen potential tenants
It’s worth the time to do a background and credit check on all potential tenants. Use an online tenant-screening service for this. Credit score alone is not always a reason to accept or deny an applicant, but it is a useful screening tool. You should also conduct an interview and check their references.
Your Patrick Parker Realty Listing Agent takes care of all of this for you. We run all prospects through tenant-screening after completion of an application. Don’t underestimate the importance of using a Listing Agent when renting.
5. Customize the lease
If you don’t hire an attorney or a property manager, you can use a standard lease form from Nolo, for example, but you should tweak it to fit your situation. For example, if you allow pets, specify how many, what kind, and any rules that apply.
Again, this is where having a Listing Agent will come in handy. They have the lease custom to your state’s laws and applications and will walk both you and your new tenant through any customization should it be needed.
6. Inspect the property regularly
Always do a move-in and move-out inspection. This should go without saying. Take pictures to establish a base line and complete a Rental Property Condition Checklist and suggest your tenant do the same and submit it to you so you’re on the same page from the get-go.
FREE DOWNLOAD: Checklist of Rental Property Condition
Consider having language regarding inspections clearly written in your lease documents. Maybe you want to conduct an inspection at six months. If you find problems, consider issuing a compliance notice and re-inspecting in 30 days. Eventually you’ll find whether or not this will be necessary in the future.
7. Understand this is not a get-rich-quick scheme
Being a landlord is not just sitting around collecting a big wad of cash each month. You’ll need to spend some money to ready the property for tenants, buy landlord insurance, register as a landlord in your town, acquire a C.O. and pay property taxes. If you’re taking out a mortgage, be prepared to fork over at least a 20 percent down payment.
Think of being a landlord as part of your overall investment strategy and realistically aim for getting around a 5 percent return on your investment.
Are you a Landlord with tips to share? What lessons have you learned? What lessons have you learned the hard way? Sound off in Comments, on the Patrick Parker Realty Facebook or Twitter pages and don’t forget to sign up for the monthly Patrick Parker Realty eNewsletter for more articles like this delivered straight to your inbox.
New Jersey Landlords Need to be Careful with their Accounting Methods
Most American businesses keep track of their charges and receivables using a “first in, first out” method. The central principle of this method, referred to as “FIFO,” is to apply customers’ payments toward their earliest balances first, and then toward their later balances. New Jersey landlords had also accepted the FIFO method of accounting until relatively recently, when the State Supreme Court ordered that eviction complaints follow a specific format, in which tenants’ unpaid charges are specifically set forth in detail.
Using the FIFO method, for example, if a tenant failed to pay rent January and February, the next payments that the tenant did remit would be applied to January and February. That application would certainly create a gap in later months in which the payments were made. In the event that the eviction complaint followed the same methodology, it might appear that the tenant owed rents from March and April (or whatever the most recent months were), when the two missed payments were really from January and February. This method is unfortunately confusing for tenants who may show up to Court with receipts to prove that they paid certain rents, only to find that the receipts that they produced do not refer to the missing payments in question.
Given new requirements of eviction complaints, I often wondered how a Court would rule when faced with a situation where the tenant could demonstrate that he or she had no idea which rents were owed, and therefore, could not prepare an adequate defense for trial. Fortunately, I received my answer a few weeks ago, when I was waiting for one of our matters to be reached for trial. From the gallery, in the rear of the Courtroom, I watched as another attorney struggled to demonstrate to the Judge that the unpaid rents set forth in the Complaint, did not refer to the actual months in which the payments were missed, but rather, they referred to the most recent months. The attorney continued her explanation to the Judge with a futile statement about standard accounting processes.
The Judge responded that he was familiar with standard accounting practices, but remarked that they were not adequate to enable the tenant a fair opportunity to prepare his defense. The Judge, accordingly, dismissed that matter, with an instruction to the attorney that she could refile the matter, if she redrafted the complaint in a way that showed the tenant the specific months in which the payments were missed.
In light of the Court’s decision in that matter, we have also began to examine our own matters to make sure that that the statement of unpaid charges properly coincides with the months in which the tenant failed to make those rent payments. In cases where the ledger has multiple entries of missed payments, it is also advisable to include a copy of the ledger in the eviction complaint.
Patrick Parker Realty rental experts can help you list your property, find you a qualified tenant and guide you through the process. Contact us at 732.455.5252 to get started!
The Top 7 Laws Every Landlord Needs to Study
Successfully managing a rental is about much more than finding the perfect tenant for the perfect unit. It’s more important to understand the legalities associated with running a rental business. Landlords should be up-to-date on all laws regarding tenant rights and the proper legal proceedings of managing a property. Here are a few of the laws every landlord should know about.
1. State Regulations
Every state has its own regulations regarding housing. These laws govern tenant-landlord interactions, tenant rights, how to terminate leases, how to carry out evictions, and even the size of the security deposit. To learn about the specific laws associated with your state, visit the U.S. Department of Housing and Urban Development.
2. Legal Binding Contracts
This may seem like a no-brainer, but it’s important to cover. When a tenant and landlord sign a lease agreement, it becomes a legal, binding contract, which can only be broken under certain parameters, as stated in the contract or by federal or state law. Both the tenant and the landlord are legally responsible for any constraints issued in the document.
3. Tenant Privacy and Access Rights
A master key does not grant landlords access whenever they want. Laws may differ from state to state, but in general, landlords are only allowed unannounced access to an apartment in the case of an emergency. They’re also allowed access without the tenant’s permission in order to show the property to a prospective tenant and make repairs, but generally, they are required to inform the tenant at least 24 hours in advance. Otherwise, they must be invited or give proper warning before entering.
FREE DOWNLOAD: rental-condition-checklist
Use this document to grade the condition of your rental property prior to tenant move-in.
4. The Fair Housing Act (FHA)
Under federal law, the Fair Housing Act (FHA) protects against discrimination on basis of race, color, national origin, religion, sex, familial status, or handicap. Discrimination is defined as treating one tenant differently than another and varies from setting higher rent to denying a lease for personal reasons. The FHA also prohibits discriminatory or selective advertising.
5. The Fair Credit Reporting Act (FCRA)
Landlords are also responsible for securely treating tenant credit information. The Fair Credit Reporting Act (FCRA) regulates landlord access to tenant credit report histories. The act was designed to protect tenant privacy, and failure to respect the law usually leads to lawsuits and civil penalties.
6. Landlord Liabilities
Almost every state mandates that tenants have the right to live in a dwelling that meets county building and health standards. If the landlord rents out a property that is not fit for habitation by these standards, they are liable for the consequences, unless the current tenant caused the damage. Essentially, this law penalizes any landlord who doesn’t do his or her job.
7. Terminating Contracts and Evictions
Since terminating a contract or evicting a tenant breaks the binding contract, there are proper regulations based on the state you live in. If the tenant or landlord is not holding up their end of the contract, it may call for an early termination, resulting in a mutual parting of ways or an eviction. Likewise, there are instances where the tenant will have a legally backed reason for breaking a contract, and the landlord must honor that request.
When this occurs, consult your state regulations for the proper way to handle it. In general, breaking a contract involves giving 30 days’ notice and the proper paperwork.
RELATED: How To Legally Evict A Tenant
It’s also important to note that the landlord is not allowed to change locks, turn off utilities, or use other means of force to evict a tenant. Nor is the landlord allowed to perform an eviction in retaliation to the tenant’s past actions.
The legalities of being a landlord take a considerable amount of research and understanding before you feel comfortable that you’re not breaking the law. Be sure to get a handle on the specifics of your market to stay legal and profitable!
What laws would you add to this list? Are you a landlord who have overcome some of these legal hurdles? Are you a renter who wants to sound off about renter’s rights? Tell us in Comments, on Facebook or on Twitter. And don’t forget to subscribe to the monthly Patrick Parker Realty eNewsletter for helpful articles, tips and guides for every kind of homeowner, seller or buyer.
How to Cut Your Homeowner’s Insurance in Half
Fire, flood, earthquakes, hurricanes, wind, falling trees, and burst water pipes are just some of the villains that could damage or destroy your home and its contents. Or maybe someone will trip not so lightly down your stairs and decide to sue. Don’t forget about thieves, who could ransack your abode and steal your valuables.
Whether you own or rent a raised ranch, brownstone, McMansion, or two-bedroom condo, having the right kind of home insurance – and enough of it – is both costly and vital. Yet with a little effort, you can cut your premium in half.
Make the Crucial Decision to Spend More on Homeowner’s Insurance
Most policies cover homes and personal property (the items inside your home) for “actual cash value” which is based on what they’d be worth today, considering wear and tear. If the roof is 12 years old, it will be valued at that amount – not what it will cost you get a new roof.
To insure the full cost of replacing your home and possessions, you need to buy a more expensive “guaranteed replacement cost” policy. While it will run you in the range of 10% to 15% more, virtually every personal finance expert we’ve come across recommends guaranteed replacement cost coverage for your home and belongings.
If you have a cash value policy and disaster strikes, the check you get from the insurer will be for a lot less than you’ll need to rebuild. Think about that roof. Every house in the neighborhood needs a new one. There’s a high demand for roofers, the cost of labor and materials has gone up … and if you’ve got a cash value policy, you’ll only get reimbursed for the value of your 12 year old roof. Yet it will probably cost you thousands more to get a new one. Yikes!
With cash value coverage, you’ll take a hit on your personal property losses as well, since you’ll only be reimbursed for the depreciated value of each piece of personal property. For example, consider a couch that cost $1,000 when it was purchased 10 years ago. With a cash value policy, you might only get $500 for it – regardless of what it might cost to buy a couch like the one you lost.
Is It Really Guaranteed Replacement Cost?
You might think that if you spend the extra 10% to 15% for guaranteed replacement cost insurance, the policy will actually pay the entire replacement cost. Not necessarily. Some companies will pay the actual replacement cost; others limit their payment to 125% or 150% of the face value. Be sure you know exactly how your policy defines this coverage.
A ballpark figure on your home’s value is a useful starting place, but that won’t tell you how much it’s going to cost to rebuild. You’d be wise to get a professional estimate of the replacement cost of your home – not its market value. Ask insurers, get a friendly local builder to give an estimate based on current local conditions, and crunch the numbers with an online replacement cost calculator. Then insure your home for 100% of its replacement cost.
Also be sure that your policy has automatic inflation protection, which increases its face value each year based upon construction costs in your area. It’s another way to make sure your home remains sufficiently insured.
Although they’re not identical, home insurance policies are standardized to some extent. Still, they can be complicated. Before signing on the dotted line, take the time to understand what the various policies will cover and what they won’t.
If you’re like most people who rent, you probably don’t have home insurance. That could prove very costly. Your landlord’s policy will not protect your possessions against loss or damage. Nor will it protect you against personal liability if, say, your babysitter trips on the rug and sues you. Yet according to the Independent Insurance Agents & Brokers of America, it only costs $12 per month for about $30,000 of property coverage and $100,000 of liability coverage.
The tips we offer here for homeowners can also help renters find the best deal on a policy.
How to Cut Your Homeowner’s Insurance in Half:
It’s well worth investing the time to lower your home insurance costs. With a little effort, you really can cut your premium by as much as 50 percent, not just this year, but for years to come. Of course, in certain parts of the country, homeowner’s insurance rates are going up and up. If you live along a coastline, for example, your costs are going to be high no matter what you do. It’s all the more important for you to follow these steps. The more you do what we suggest here, the more you’ll save.
1. Make sure you look your best on paper.
Insurers believe that reliable bill payers file fewer claims, which is of course what they want. So check your credit report for accuracy and get errors fixed. Otherwise, you will pay more and may even be denied coverage.
2. Don’t be clueless.
Before agreeing to give you a policy, insurance companies check to see if you have a history of filing claims – even small ones, like for theft or fire.
TIP: Consider covering some claims on your own – or even withdrawing a claim you’ve made – to avoid falling into the bad risk zone. Ask your insurance agent for some guidance on this. (Don’t blame us, we’re just the messengers!)
3. Shop around. Policies are not identical.
Costs, coverage, and conditions can vary as can the financial stability of the insurer. Compare coverage and prices for your home and belongings.. Start with a couple of sites that will get you multiple quotes, for example, Insure and Insweb.
But don’t stop there. Make sure you get quotes from a range of insurers, including:
- “Independent” agents, who sell the policies of several different insurance companies. While they can help you get the best deal among the insurers they handle, their commission structure is the highest. Still, there are often benefits to working locally with someone who you know and can contact quickly in an emergency. But even if all you want to do is look at the pros and cons – say, of registering your kid’s car at school or at home – a good independent agent should help you figure out what makes sense. Your best bet is going to be to ask friends and relatives for recommendations of local independents they’ve worked with and liked.
- “Captive sellers,” who work for a single insurance company such as Allstate and State Farm – companies that have their own sales forces. Their commissions are typically lower than those of the independent agents, so you may pay a bit less for your policy.
- ”Direct writers,” who can give you a quote on the phone or online. They can generally offer the lowest-priced policies because they sidestep commission fees. Examples: Amica (800-242-6422) and GEICO (800-841-2964). Members of the military and their families should definitely consider USAA (800-531-8080). Be aware, though, that direct writers tend to be the choosiest. If you have anything that hints at a real risk (a wood stove, for example), it’s quite possible they’ll say, “No thanks.”
4. Go for the highest deductible you can afford.
Compare quotes for the replacement value of your home and its contents with different deductibles, say, $500 and $1,000. They’ll shave 10% to 25% off your premium annually. If you can go for a still higher amount of $2,500 or $5,000, your annual savings will be 30% or higher.
5. Put smoke and carbon monoxide detectors on every floor, and make sure the agent knows about them.
A smoke detector may not only save a life, it will pay for itself in a year or two with the 2% to 5% that it will save you on premiums.
6. Get fire extinguishers, deadbolt locks for all the doors, and consider other safety devices.
Ask if there are other low-cost safety features that might save even more money on the policy. And depending on the location and condition of your home, you may want to invest in costlier fire and theft protection. Fire sprinklers, anyone? They can save you money – although a home security system that’s connected to the local police and fire departments can save you more, in the range of 15% to 20% annually.
7. Ask the agent or company that writes your car insurance for a “multiple policy” discount.
Find out if you’re eligible for a price reduction if you let them write both your home and car insurance. You could save 10% to 20%. Also ask other insurers what their multiple policy discounts are.
8. Be loyal – if it’ll save you money!
Many insurers reward good customers to keep them. Does yours offer discounts to long-time customers? Ask!
9. Get money off for “good behavior.”
Have you been claim-free for a few years? Some companies offer discounts from 2% to 5%.
10. Are you retired?
Some companies offer retirees discounts of 10% to 20%.
11. Be sure to ask about all possible other discounts.
Here’s a handy checklist:
- Was your home built with fire-resistant materials?
- Is yours a non-smoking household?
- Got a newish house, built with state-of-the-art construction materials? If so, it should cost less to insure.
- Recently renovated? You might be eligible for a price break – but if you made a significant improvement, you may need additional coverage.
- If you normally keep some of your gems in a safe deposit box, and if they’re worth more than the standard policy limits, ask if you would be eligible for a discount.
- Does your membership in an organization – whether it’s AARP, AAA, a labor union, or an alumni group – make you eligible for a discount?
- Insuring a second home? See if you can get a multiple policy discount. You might need to accept less coverage for the contents of your second home or install an alarm system.
NOTE: Protect Yourself from Mother Nature
Even though some 25% to 30% of flood insurance claims come from areas that weren’t considered to be high risk, basic policies don’t cover floods. For more information, contact the National Flood Insurance Program (888)FLOOD29.
What are your homeowner’s insurance policy experiences? Tell us the good, bad and ugly in Comments or on the Patrick Parker Realty Facebook or Twitter pages and don’t forget to sign up for the monthly Patrick Parker Realty eNewsletter for more articles like this delivered straight to your inbox.
Warning: Invalid argument supplied for foreach() in /home/patri034/public_html/wp-content/themes/parker/category.php on line 36