January 2021 - Lofty Property

What Landlords Need To Do To Track Their Expenses

Posted on January 26, 2021 by admin_lofty

Truth be told, tracking expenses takes quite some investment in terms of time, and we don’t all have the privilege of doing something for long. Nevertheless, failing to find time doesn’t really go well with processes such as loan applications, filing tax returns and dealing with IRS audits.

As a San Diego landlord with a property to manage, you want peace of mind just like everyone else. If so, you need to up your game. To streamline the above processes, you need to have your expenses accurately tracked. You want to ensure that whoever you are supposed to pay for a particular service receives their payment in time.

What records do landlords need to keep?

Ongoing and past tenant leases
Insurance policies
Property deeds
Legal documents, fines, inspections and eviction notices

Some deductible expenses ought to be tracked too. These include:

Evidence of rental payments
Advertising costs
Property repairs and maintenance
Legal fees

How to track expenses incurred by rental properties?

Hard documents are a good way to go, but they really don’t beat the efficiency that comes with digital methods. These digital solutions are tuned to the specific needs of your industry, meaning that there is no need to worry about using a wrong tool.

They are referred to as rent collection apps and boast of the following crucial features.

1. User friendly mobile apps

The creators and designers of these applications understand the nature of work that landlords do. You really can’t sit and record data all day! You have to ensure that your business operations are in top shape and still be able to swiftly access your documentation and transactions.

With your property management application live and ready in your hands, you are truly in control.

2. Monitoring expenses

You need to possess the copies of deductible expenses that you include while filing tax returns. For the case of an audit, even the expenses that you incurred while taking your client out need to be included.

You can easily record expenses using a property management application. All you need to do is take a photo of receipts, give them a name and categorize them accordingly. Just say bye to paper receipts!

3. Integrate your accounts

Your bank accounts can be connected to your app. This way, you are able to attach individual properties to their specific transactions and grasp their profit position.

4. Set recurring payments

Property management apps have a ready solution for you as a landlord to stop worrying about meeting mortgage payment obligations.

In addition, the monthly rent can be set as a recurring payment. Once you try the apps, you will discover an imminent reduction in the amount of late rent payments.

What are some other benefits of working with apps?

Receiving rent payments: This is an incredible feature that allows tenants to pay you via credit and debit cards, eCheck rent payments and ACH transfers.

Automation: When you decide to decrease late rent payments, you can easily send email or text reminders to your tenants.

Notifications

Take advantage of digital solutions to enjoy simpler life!

Swift property management solutions for San Diego landlords

At Lofty Property Management, we have the solution designed to spare you the headaches, stress and hassle of keeping track of your expenses.

We are committed to providing landlords in San Diego and beyond with a higher standard of property management service which can be as comprehensive as you like. For more details on what we bring to the table and how what we do can make your life easier, contact us today!

A Definitive Guide to Tenant Screening

Posted on January 26, 2021 by admin_lofty

Profitability and tenant screening go hand-in-hand in the rental property and property management industry in San Diego. Tenants may seem like good people, until they start dragging your business down by accruing hefty bills, damaging valuable furnishings and failing to pay rent for months on end.

How do you ensure that your tenant won’t be your worst nightmare?

Tenant screening is the all-encompassing answer!

What is the process of tenant screening?

The first step is the collection of the application form. It gives a general idea of who your prospective tenant is by highlighting information such as their rental and employment history.

Be wary of possible red flags such as wide gaps in employment history. You also need to cross-check their financial information to understand whether they will be able to afford the rent.

What are some useful tips for the screening process?

1. A credit check

Credit checks tell you how often a person pays for their compulsions on time. The scores begin at 300 to signify a poor record, all the way to 850 for someone above average. The ideal score is anywhere between 600 and 850.

2. Criminal records

A common criminal report is the nationwide criminal history. It can prove to be very essential if the tenant’s name and date of birth are correct.

Compare the tenant’s address history with criminal records to confirm whether they were residing in that particular area during the crime.

Some states impose limits to the extent to which information about tenants is made available for the purposes of screening them.

3. Eviction history

Because evictions are costly affairs, it is imperative that you discover whether your prospective tenant has faced one in the past. If one is given an eviction notice, to which they comply, the report won’t show this incident.

You want to candidly ask the tenant whether they have been evicted before and the circumstances that led to the incident. If they were to refuse to comply to evict when you issue them with an eviction notice, you might have to take legal action, a process that is exceedingly costly.

4. Establish contact with their references

References offer intuitive checks for potential tenants because you can inquire about things that are excluded in reports.

A tenant’s former landlord will provide insight into how the renter terminated their policy, the extent of damage on the property and complaints about them by neighbors.

Colleagues of your tenants might confirm the employment status of your prospective tenants, but won’t be very helpful in determining their true nature.

By confirming with references, you are able to understand whether what your applicant states is indeed true.

5. Interviews

There are limits to the questions that you can ask. You are required to avoid discriminating them by their impairments, race, color, religion or gender.

You can inquire whether they smoke, have pets, a tight schedule or possibility of taking on a roommate in the future.

Why use property management applications?

Some apps feature the ability to conduct background and credit checks on tenants. You might incur some cost to get access to the reports, but nothing more than you would pay for other methods. Applications are more efficient because they save time by collecting rental data in a central place.

Your go-to resource in the property management industry in San Diego

At Lofty Property Management, we have the means, tools, experience and expertise to take over your tenant screening process.

We will help you build a strong reputation for your property to ensure you attract quality applicants, as well as conduct detailed background checks to make sure the applicants you accept are responsible individuals you can trust. There is a reason we have a zero-evictions track record. To find out more, reach out to us today!

What Factors Affect My Property Management Costs?

Posted on January 20, 2021 by admin_lofty

Although the purpose of property management is to protect your investment in real estate and take the stress and hassle that you would be exposed to in your capacity as the owner out of the equation, it is an investment in and of itself and you may be hard-pressed to decide if it is a step in the right direction for you.

Property management companies La Jolla Village and nearby areas charge fees to perform various services at your property and it is up to you to decide if it is an investment worth your while, and to do that you need to dive deeper into the matter.

So which factors determine these fees? Read on.

What do property management companies do for you?

A full-service property management company will handle every aspect of managing your property or Airbnb by setting up a turnkey system. They will help you attract and shortlist the best tenants to fill vacancies and optimize your revenue, handle tenant relations and evictions on your behalf, keep your property in tip-top shape and coordinate maintenance and repairs, collect rent, keep financial records for tax purposes, etc. Last but not least, they will keep up with applicable real estate regulations to ensure your compliance.

Is having a property management company worth it?

Having a property management company can certainly spare you the stress and headache of having to do all that hard work by yourself, but is it worth it?

To decide, consider the factors that determine the workload and level of maintenance a piece of property can be expected to require on a monthly basis and therefore influence the cost of property management:

Property size
Type of property
Condition of the property
Location of the property
Scope and extent of services

Can you negotiate property management fees?

Some property management companies charge flat rates, while others base their fees on a certain percentage of the monthly rate collected. It is important that you understand whether the deal is favorable or not in terms of cost and scope, which is why you need to know what questions to ask your prospective property manager.

That said, here is a breakdown of potential fees:

Initial setup fee

Some companies charge this fee to cover the cost of setting up client accounts and inspecting the property to assess its condition.

Monthly management fee

This fee covers the costs associated with managing a property on a monthly basis. The services covered by the fee should be clearly defined beforehand. Some companies may charge a high fee for monthly maintenance, but the offer may also be more inclusive than that presented by their more affordable competitors, which is why you should discuss this at length with your prospective property management team before you make a commitment.

Maintenance fee

Maintenance fees can be included in your monthly management fee, although this depends on the specific terms and conditions of your agreement with the company.

Reserve repair fund

There may also be a separate reserve repair fund, which is an account designed specifically for repairs and emergencies. You can ask the company to inform you of any repairs so you can authorize an deduction from the account or at least if the cost of a repair is expected to exceed a certain amount. On the other hand, you can leave the decision-making entirely to your property management company and let them use the account at their sole discretion.

Eviction fee

Evictions are unpleasant and it is the job of your property manager to do their job right so as to spare you from ever having to go through the ordeal that is the tenant eviction process. However, if an eviction becomes inevitable, your property management company can handle it for a certain fee.

Early termination fee

If you have already signed a contract with your property management company which you want to terminate prematurely, you may also need to pay an early termination fee.

Some companies may also charge separate tenant placement fees for handling tenant relations from tracking tenants to signing the lease agreement and vacancy fees.

Your full-service property management company in La Jolla Village and the area

Lofty Property Management offers the full continuum of property management services in La Jolla Village, La Jolla and other communities in San Diego to make sure your property is safe and protected and your peace of mind fully restored. Our number one priority is to give you a comprehensive service that will be performed to high professional standards and translate into your outstanding customer experience. Set up your first consultation now and we will do our best to make it count!

How Do Property Managers Handle Repairs?

Posted on January 20, 2021 by admin_lofty

Full service property management covers a diverse set of responsibilities: handling demanding tenants, dealing with heaps of humdrum paperwork, keeping up with the latest amendments to applicable laws and regulations, responding to emergencies, etc. Essentially, it is the job of a property manager to protect the interests of landlords, property owners and Airbnb and similar short-term rental hosts and spare them stress, hassle and unpleasant eventualities.

So what does that mean in terms of maintenance and repairs? Will your contract with property management companies in Old Town San Diego and nearby areas require that you pay extra for every maintenance request?

A necessary step in the process of property management is coordinating and scheduling regular maintenance and repairs on the property in question. So how do property managers handle repairs and maintenance and how do they decide on which contractors to hire for the job?

What is considered property maintenance?

Property maintenance is any activity taken to ensure the comfort and safety of occupants of a piece of property and the related amenities. Property managers are responsible for overseeing the daily operations of a piece of real estate and its occupants, and maintenance is a major part of that. That way, you are free to focus on expanding your rental business or pursuing other real estate investments.

Do property managers handle maintenance?

A property manager should save you time and money, and the only way to make sure that is the case is to find a property manager who will handle the full range of responsibilities, including maintenance.

Be sure to ask if property maintenance is included in the fee. Some contracts may require that you pay extra for every maintenance request.

By definition, full service property managers handle maintenance. In addition to handling tenant relations and rent collection, property maintenance is their most important responsibility. They will normally set up a maintenance schedule in addition to conducting regular inspections and making themselves available for emergency response.

Normally, property managers will have reliable contractors and vendors with whom they have already cooperated in the past and whom they have already had background-checked to handle the repairs on your property in Old Town, San Diego, or elsewhere in the area.

How do property managers handle repairs?

Your manager will likely adapt their approach to the nature of the issue, in accordance with the specific circumstances of the scenario:

Handling emergency repairs: Emergencies happen out of the blue and you never see them coming, however diligent and responsible you are. When that happens, it is in your best interest to take immediate action to have the problem resolved, not only because tenants expect you to, but also because this is the only guaranteed way to restore your property and minimize damage.
Determining tenant neglect before taking action: To a knowledgeable property manager with an eye for detail, it does not take long to determine that property damage was not the result of normal wear and tear or an emergency situation, but rather caused by the tenant and their neglect and misuse. In this case, it is the tenant’s responsibility to cover the cost of the repair, which brings us back to the vital first steps in the process: careful screening of potential tenants.
Authorized repair limit: Your property management company will use the contract you have signed with them as guidance when it comes to handling your property, including any repairs. The contract should define the value of the repair limit they can conduct without obtaining your explicit permission. This ensures that reasonably necessary maintenance and repairs can be handled without delay and without draining your resources.
Screened vendors and contractors: To ensure you are not held liable for anything, property management companies work with reliable vendors and contractors who are licensed and insured and who offer competitive prices for quick and efficient services, saving you money down the line.

Do property managers pay for repairs?

Property managers charge a fee for their service, which should preferably include repairs and maintenance. Of course, whether repairs will be covered by the fee depends on the complexity of the repair, whether there is an authorized repair limit, the stipulations and conditions of your agreement, or other special arrangements you may have made.

Property management companies in San Diego, California

At Lofty Property Management, we will organize the maintenance of your property to ensure you are getting the best value for money. Only a well-maintained property has the potential to bring you quality tenants with few vacancies, top dollar rent, a steady stream of revenue and last but not least, high resale value if you ever decide to put the property on the market. We will also keep an eye on the inventory in your property and constantly monitor the market for rent increases and decreases. Schedule your appointment now!