HELP MY TENANTS WON’T MOVE OUT!

They Won’t Move Out!

By Robert L. Cain, Copyright 2012 Cain Publications, Inc.

We have had problems with my tenants refusal/difficulty vacating the rental unit after the lease term has expired. We have told them well in advance that we will not be renewing the lease, but they still will not leave at the designated time. HELP! What do I do to get them out? At this point, isn’t this considered trespassing? How do I get them out? Am I able to lock them out of the dwelling? Thank you for your advice on this matter. Jane, Chicago, Ill.

Every once in a while landlords have to deal with people who seem to be unable to rent the U-Haul and get their stuff somewhere beside their ex-landlord’s property.  Usually those who are not wanted have the good sense and grace to move out.  Apparently these folks have neither good sense nor grace.  You are in a position to make their renting from another landlord extremely difficult by making sure you provide an accurate reference when a prospective landlord calls you for a reference. This offense ranks right up there with a midnight move out.

In the meantime, however, to protect yourself from the court system that consistently comes down on the side of tenants, you need to take some specific steps. It doesn’t matter if the tenants are good, bad or somewhere in the middle; courts in many places go out of their way to protect tenants from those “evil, greedy, uncaring landlords.”

Certainly those tenants are trespassing, but you would have no luck with the police having them removed since police don’t want to get involved in a “civil matter.”  That is in spite of the fact that these people are in the property stealing the rental because you can’t rent it while they are occupying it. Besides, the police officers would have to write long reports about what happened, something that, trust me, they hate to do.

You will have to file an eviction against these holdover tenants. One step that might persuade these squatters to move immediately is that you inform them that you are going to file the eviction at the courthouse the next day if they have not vacated.  This is a slam-dunk eviction since they had been notified, presumably in writing, that they were to vacate at the end of the lease.  Big warning! If you did not notify them in writing, you will have to begin the process all over again. Otherwise, the judge would throw the case out of court since you have no proof that you told them you were terminating their tenancy. Check the procedure for starting the procedure in writing below.

Do not, under any circumstances, ever, under any circumstances, even think about locking them out until you have the judge’s order in hand evicting them and a deputy sheriff or constable to serve the papers.  Locking them out is called constructive eviction and is illegal in every state.  Likewise, don’t take the front door off, turn off the heat or electricity.  Anything you would do to make living in the property difficult or impossible is considered constructive eviction and would result in your tenants getting to live rent free for several months because of the judge’s ruling.

If your “notice” that you would not be renewing their lease and they were going to have to move was oral, it is not valid.  Here’s what you have to do.

Send a notice in writing, according to the laws specific to Chicago, where your property is.  Laws are different in every state and in some cities, so do not under any circumstances use a form you find at the office supply store.  Those forms are generic and dangerous, and probably comply with few state laws or city ordinances and almost certainly not the ones where your property is.  Get a form from your local apartment or rental owners association, or from an experienced real estate attorney. If you use the wrong form, your tenants could end up staying rent-free for three months.

Make sure you give adequate notice, whatever that is in your area.  Most state laws are for 30 days, but check to make sure.  Also, make sure the procedure for serving the notice.  Can you mail it Certified Mail?  Can you send it First Class Mail?  Must it be hand delivered?  Must it be served by a process server?  If you don’t do it right, once again your tenants get to live rent-free for a couple or three months.

Finally, do not accept any rent from these tenants during this debacle.  If you accept rent from them, you have confirmed their tenancy and must begin the procedure all over again.

These tenants will get out soon as long as you do everything exactly correctly. As I said before, the courts are there to protect tenants, not landlords.  With each step you take to get rid of these undesirables, keep that in mind.  Your final payback will be when you get a call from another landlord asking for a reference.

“Robert Cain is a nationally-recognized speaker and writer on property management and real estate issues. For a free sample copy of the Rental Property Reporter call 800-654-5456 or visit the web site.www.rentalprop.com.”

Pending Home Sales Index Rises Back Above 100

Low home prices and mortgage rates have combined to push home affordability to record levels nationwide. Home buyers are taking advantage.

The Pending Home Sales Index rose 7 percent in November to rise to its highest level since April 2010, the last month of last year’s home buyer tax credit program.

The Pending Home Sales Index is published monthly by the National Association of REALTORS®. It measures homes under contract nationwide, but not yet “sold”.

In this way, the Pending Home Sales Index is different from other housing market indicators. It’s a “forward-looking” figure; a predictor of future home sales. According to the National Association of REALTORS®, more than 80% of homes under contract close within 60 days.

By contrast, housing data such as the Existing Home Sales report and the New Home Sales report “look back”.

November marks the second straight month of Pending Home Sales Index improvement. The housing market metric made big gains of 10 percent in October 2011, as well.

On a regional basis, each part of the country showed an increase in homes under contract.

• Northeast Region: +8.1 percent from October 2011
• Midwest Region : +3.3 percent from October 2011
• South Region : +4.3 percent from October 2011
• West Region : +14.9 percent from October 2011

However, here in Seattle, we must discount the value of even the regional data, somewhat. Like else in real estate, the volume of homes going under contract vary by locality.

Throughout the West Region, for example, the region in which pending home sales increased the most from October, there are nearly a dozen states. Undoubtedly, some of those states performed better than others in terms of “homes under contract”, but we don’t have an indication of which states those were.

In addition, within each state, every city, town, and neighborhood realized its own unique market in November, and produced its own sales statistics.

For buyers and sellers throughout Washington and the country, therefore, it’s more important to watch data on a local level than on a national one. Reports like the Pending Home Sales Index are helpful in showing national trends, but as an individual, what you need are local trends.

For local real estate data, be sure to ask your agent.

Nationally, Home Prices Off 18.3 Percent From April 2007 Peak

The government confirms what the private-sector Case-Shiller Index reported yesterday. Nationwide, average home values slipped in October.

The Federal Home Finance Agency’s Home Price Index shows home values down 0.2% on a monthly, seasonally-adjusted basis. October marks just the second time since April that home values fell month-over-month.

The Case-Shiller Index 20-City Composite showed values down 0.7 percent from September to October.

As a home buyer in Seattle , it’s easy to look at these numbers and think housing markets are down. Ultimately, that may prove true. However, before we take the FHFA’s October Home Price Index at face value, we have to consider the report’s flaws.

There are three of them — and they’re glaring. As we address them, it becomes clear that the Home Price Index — like the Case-Shiller Index — is of little use to everyday buyers and sellers.

First, the FHFA Home Price Index only tracks home values for homes backed by Fannie Mae or Freddie Mac mortgages. This means that homes backed by the FHA, for example, are specifically not computed in the monthly Home Price Index.

In 2007, this was not as big of an issue as it is today. in 2007, the FHA insured just 4 percent of the housing market. Today, the FHA is estimated to have more than one-third of the overall housing market.

This means that one-third of all home sales are excluded from the HPI — a huge exclusion.

Second, the FHFA Home Price Index excludes new home sales and cash purchases, accounting for home resales backed by mortgages only. New home sales is a growing part of the market, and cash sales topped 29 percent in October 2011.

Third, the Home Price Index is on a 60-day delay. The above report is for homes that closed in October. It’s nearly January now. Market momentum is different now. Existing Home Sales and New Home Sales have been rising; homebuilder confidence is up; Housing Starts are showing strength. In addition, the Pending Home Sales Index points to a strong year-end.

The Home Price Index doesn’t capture this news. It’s reporting on expired market conditions instead.

For local, up-to-the-minute housing market data, skip past the national data. You’ll get better, more relevant facts from a local real estate agent.

Since peaking in April 2007, the FHFA’s Home Price Index is off 18.3 percent.

New Home Sales Approach Bull Market Territory

New home inventory is approaching bull market territory.

According to the Census Bureau, the number of new homes sold rose 2 percent in November. On a seasonally-adjusted, annualized basis, home buyers bought 315,000 newly-built homes last month.

November’s New Home Sales data marks the 4th straight month of rising sales volume, lifting the housing-market metric to a 7-month high, and adding to the housing market’s recent show of strength. 

Last week, we learned that Existing Home Sales also climbed in November.

The big story in the New Home Sales report, though, is the remaining new home supply nationwide.

With just 158,000 homes “on the market” and the pace of home sales hastening, the complete, national inventory of “new homes” would now be sold in just 6.0 months, a 0.2-month improvement from October. This is the quickest home sales pace in nearly 6 years for the new construction market. 

It’s even faster than in April 2010 — the buyer-deadline month of last year’s federal home buyer tax credit.

Home builders expect the trend to continue, too. Buyer foot traffic is on the rise and builders have a strong outlook for the next 6 months.

It’s an unsettling series of developments for today’s Seattle home buyers. As home supplies drop and builders gain confidence, the ability of an buyer to negotiate for price reduction and/or upgrades shrinks.

If you’re a home buyer in search of new construction, therefore, consider that the best new construction “deals” of the next 12 months may be the ones you find today.

America’s To 10 Safest Cities, Ranked

Looking for safe cities in which to live? A recent study may help you.

Titled “America’s Safest Cities“, Forbes Magazine compiled data from more than 70 cities with populations of 250,000 or more, and ranked them by violent crime rate as reported by the Federal Bureau of Investigation.

A “violent crime” is one that can be categorized as murder, robbery, and assault, among others. Then, for each metropolis, local traffic-fatality rates were added to the area’s violent crime rate, and averaged into the data.

Forbes presents the 10 safest large cities in America as :

1. Plano, Texas
2. Henderson, Nevada
3. Honolulu, Hawaii
4. Santa Ana, California
5. Lincoln, Nebraska
6. San Jose, California
7. Mesa. Arizona
8. Colorado Springs, Colorado
9. Aurora, Colorado
10. New York, New York

Forbes is quick to note that “gridlocked” traffic patterns help keep cities safe; which may explain why cities like Honolulu and New York City made the Top 10. When cars are forced to move more slowly, the report states, traffic-related fatalities tend to plummet.

Don’t rush to make a home-buying decision based on Forbes data alone, however. Like everything else in real estate, data is local and city-wide statistics are too broad to be helpful to an everyday buyer in Seattle.

For accurate, real-time, local crime data, be sure to ask a real estate profession.

Pay Your Mortgage Early, Boost Your 2011 Federal Income Tax Deductions

Time is running out to boost to your 2011 federal tax refund. All you have to do is make your January 2012 mortgage payment while it’s still December.

It’s a simple tax strategy that works because of how mortgage interest is paid, and of how the U.S. tax code is written.

Different from rent which is paid for the month ahead (i.e. “you’re paying January’s rent”), mortgage payments are made only after mortgage interest has accrued (i.e. “you’re paying for money you’ve already borrowed from the bank”).

This is called “paying interest in arrears” and U.S. tax code states that the mortgage interest is tax-deductible in its year paid, subject to limitations.

By making the January 2012 mortgage payment in December 2011, therefore, homeowners who itemize their on their tax returns can apply their January mortgage payment’s interest portion to their 2011′s tax returns.

The alternative is to pay the mortgage on schedule, and wait for April 15, 2013 to claim the credit.

If you choose to pre-pay your mortgage and typically send your payment via USPS, give your check ample time to be delivered to your lender, and processed. Mail your check no later than Saturday, December 24.

For Seattle homeowners that pay electronically, the process is simpler. Edit your online bill pay program to have your mortgage payment post no later than Thursday, December 29.

Make note, however. Not all mortgage interest is eligible for tax-deductibility, and not all homeowners throughout the state of Washington who pay mortgage interest should itemize said interest on their tax returns.

Before prepaying on your mortgage, ask your tax professional for advice.

Speaking: Seattle Metro Chapter Women’s Council of Realtors

Speaking: Seattle Metro Chapter Women’s Council of RealtorsSpeaking: Seattle Metro Chapter Women’s Council of Realtors
Blogging For Business:  The 1-2 Punch of Online Lead Generation

The 1 2 Punch Combination
You jab with great content from your Blog
You throw a right cross with your Email

One without the other is virtually useless.  If you throw a jab with no intention of following up with an uppercut you leave yourself vulnerable to your opponents attack.  If your intention is to throw your dominant punch with no setup than it is easy for your opponent to see it coming and prepare a defense.

Source: Jason Fox : [Read More Here]

Angry tenants? Here’s a guide to solution!

There is simply no way to control all of the variables that go into renting a property to a tenant. Neighbors, mechanical malfunctions, the weather, personality quirks — all may add an element of surprise to the renting experience, and sometimes that surprise can cause tempers to flare.

Occasionally dealing with an angry resident is part of a landlord or property manager’s job description. How the situation is handled, however, makes all the difference in the success of a rental business.

Sympathize with tenant expectations

The rental industry is unique in that it provides and manages homes for people. Landlords and property managers work in a personal realm that hits at the core of where clients live—literally, of course, and figuratively, as well. Remember that it is reasonable for residents to expect things to work in their homes, for other tenants to be respectful, and for their parking space to be free when they arrive home from a long day at work. When faced with an angry tenant, consider these truths and proceed as a diplomat. And don’t forget to apologize for the inconvenience, even if you aren’t yet sure about the details.

Make customer service king

Ensure that your resident knows you take their complaint seriously. Appearing apathetic is the worst approach a landlord can take with an upset tenant. A flippant response, or one that is condescending or impatient, shows disrespect for your tenant and, ultimately, for your role.

If you have a staff of people who interface with tenants, be sure to coach them on courtesy and problem solving. A good customer service attitude can go an awfully long way toward solving even complex tenant issues, and a good attitude can neutralize smaller ones easily. Bad service, on the other hand, doesn’t just create additional problems, it’s the most likely reason why a resident would choose to move on to another property.

Check yourself

Just as your residents often have other life stress that may add to their frustration with a rental issue, be sure that you don’t let the general stress of your job land on a tenant. Make your work a separate place in your mind, ideally one that will let you get away from personal problems. When you walk through the door or pick up the phone to deal with a client, you need to be “on” and remember who you are dealing with.

Also, be sure not to respond in kind to a tenant who is shouting or threatening. Keep it cool and professional in an attempt to neutralize their anger. Strive to be a calming, rational voice that can cut through their emotion.

Communicate well
The best way to work successfully with an angry resident is to communicate clearly, which involves careful listening, as well. You might discover that what the tenant identifies as the problem is only part of the problem. Good questioning means that you make connections that the tenant may not draw for you. Make problem-solving your main goal — not being right or being in control. And be sure to thoroughly document the details of the tenant’s complaint.

Follow a resolution process

Once you have spoken with the resident about the problem, make realistic assurances for them about the next steps that will be taken. Let them know that you will be handling the problem to the best of your ability. Let the angry resident know that you will locate someone to make the repairs or talk to another tenant, if this is appropriate to the situation. If another person from your staff is the point of tenant contact, instruct them not to make promises they can’t personally deliver on. Follow up as soon as possible with the tenant with either a status update or a check-in to see whether the resolution that occurred was to the tenant’s satisfaction.

Learning to deal with angry tenants is a useful skill for all areas of a landlord’s professional life. Take a deep breath, put on your listening hat, and work hard to solve the problem. If the situation is handled the right way, your resident won’t just be pleased, he or she may continue to rent from you for a long time.

Safety for Tenants, Protect YOUR investment

Help Familiarize Your Tenants With Emergency Procedures and Home Safety

Just as you hope your new tenants will safeguard your property, you want to make sure they are safe in their new home. Be sure to remind them – in a helpful, professional manner — of basic home safety, as well as emergency procedures that apply to their home and the larger community.

The fireplace

One of the biggest areas for safety concern in any home is a fireplace. Make sure that you remind tenants to check that the flue is open before burning a fire and to keep the fireplace screen on at all times to prevent sparks from flying into the room. If the fireplace uses gas, provide instructions on how to operate the mechanism along with a reminder to turn the gas off completely when the fire is extinguished.

Smoke alarms

Show your new tenants where the home’s smoke alarms are located. Remind them to test the batteries monthly and change them out each year, unless you take care of this task for them. Some people choose a day they can remember each year, such as New Year’s Day or when they move clocks back an hour in the fall.

Fire escape

If you have screens with latches or any kind of bars on windows (which require an approved quick-release latch), acquaint your tenants with how they work. Make sure they know the fastest and safest way down to the ground floor in case of a fire.

Carbon monoxide

Odorless, tasteless and colorless, carbon monoxide can be generated by wood-burning fireplaces and stoves without people in the house even knowing. It can also come from dirty and clogged gas ranges, stoves, improperly-connected gas clothes dryers or water heaters, and ventless portable heaters.

As a landlord, it’s your job to make sure that the chimney is clean and appliances are in proper working order. Adding a carbon monoxide detector, as well, can help monitor emissions and alert tenants if the levels were to become dangerous.

The circuit box

When orienting tenants to their new home, be sure to familiarize them with the circuit box in case of a power outage. Ensure that the circuit breaker switches are labeled to indicate what rooms and outlets they each control.

If you rent a property with older wiring, you may have a circuit that is especially prone to being overloaded. Until you can rewire the house, you might caution tenants against putting too much strain on that set of circuits.

Weather safety

If your property is in a coastal area that may likely be affected by hurricanes or flooding, make tenants familiar with what is required to secure the house (attaching storm shutters, for instance) and suggest that they get an emergency radio. It’s also a good idea, especially if yours is a vacation property with transient tenants, to make sure they understand the typical evacuation route away from danger.

Put it on paper!!

Rather than having to explain all of these details and hope that your new tenants can remember them all, write them down! Create a handout that you laminate for tenants to keep in a central location in the house.

Thinking of your tenant’s safety is a bonus for the both of you. Take the time to make those new to your rental home familiar with what to do in case of an emergency — as well as what to do to prevent one from happening!

Is It Time To Think About Text Message Marketing? [Infographic]

Is It Time To Think About Text Message Marketing? [Infographic]Is It Time To Think About Text Message Marketing? [Infographic]

You can use text message marketing to send your Sphere of Influence notice of your home for sale…

Have you gotten one of these text message marketing texts?  I remember the first one I got was from Papa John’s Pizza and it was a special on pizza. Initially I was so confused.  I was thinking I did not order a pizza what are they talking about.  Once I figured out it was an Ad… I felt a bit betrayed by Papa John and at the same time was interested in their offer.

There are some mixed feelings about whether it is OK to use text message marketing.  But you can not argue with the potential reach and response that it gets.  As you can see in the Infographic below the statistics for text messaging in the World is staggering.

One statistic that really grabbed my attention was that there are 4.2 billion texters worldwide that is more than any other data service.

For the record I do not currently engage in any text message marketing.
Created by: MBA Online
Wordpress SEO | Social Media Marketing | Jason Fox

Source: Jason Fox : [Read More Here]