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The Delicate Art of Rent Increases
Everyone knows that rent increases are a fact of life, but they also need to be right!

Many owners want to raise the rent whenever. You shouldn’t increase the rent because you’ve had an expensive year, or a major roofing job. Instead, your rental rates should be dictated by one very simple factor: The Rental Market.
Simply put, your rental price will be determined by how much tenants are willing to pay. Use anything other than this criteria, you run the risk of losing them and experiencing higher vacancy rates.

Let’s look at how you can accurately assess the market and how to go about tactfully breaking the news to your tenants.

Ensure Compliance With the Law
First things first: Make sure your proposed rent increase is in compliance with state and regional laws, and of course, in accordance with the terms of your lease.

Sufficient notice, 30 days’ – is generally required for month-to-month leases. For fixed-lease properties, you’ll want to let tenants know before the lease is up.

Give Extra Notice
Sure, you’re required to give enough notice to be in compliance with the law — but why stop there? We give tenants extra time to prepare for the increase, and allow them a chance to shop around. If the increase is in line with market rates, they’ll see that there’s no better deal to be had. We time notices so that the rent increase will take place immediately after the lease renewal date.

When we inform tenants about rent increases in writing. Without a written agreement, a rent increase will be difficult to enforce.

We try for small increases yearly, instead of having to raise the rent substantially. This helps tenants get used to rent going up, and you’ll find them less likely to complain over a $20 per month increase as opposed to a sudden $200 jump.

Calculate the Rent Increase
We do our research to be competitive with local rental market rates. We do this by looking at other similar rentals or by multiplying the consumer price index by your current rental rate. For example, the ‘Bureau of Labor Statistics’ most recent release indicates that the index for shelter increased 3.2 percent in 2015. Rent is only adjusted to the local rental market.

Determine Why You’re Raising the Rent
Your tenants will want to know, and you’ll need an answer. Be truthful and make a list of reasons why the rent needs to go up, such as rising insurance costs, higher taxes, and the cost of inflation. Main reasons for a rent increase usually include the rising cost of maintenance and repairs

Keep Your Tenants Happy
Also having an excellent tenant who looks after the property and pays rent on time, is an excellent reason not to raise the rent as an incentive to stay. If it needs to be raised, one way to do this is to show them what the rent increase was going to be, then crossed out and with a smaller percentage, for being a great tenant. Communication is key: we are in touch and are willing to talk to them about the increase.

Another option would be to consider offering your tenants a compromise. Propose a rent increase, and be prepared to lower the percentage if they are willing to sign a longer lease.

Rent increases are stressful, but we ensure that the raise in rent is in line with market values. We communicate all upcoming changes to your tenants making the process as simple and straightforward as it can be.

Need a Property Manager in Pensacola-Gulf Breeze-Navarre Florida.

Barrons Property Managers “now offering a guaranteed rent collection program.” We deliver unmatched property management services along with a competitive fee structure!

Full time licensed, leasing agents, maintenance coordinator, and site inspectors – helping your investment to reach its height of physical & fiscal performance.
Call now at (850)934-2588 or visit us online at www.BarronsPropertyManagers.com

If you receive rent from anyone who lives in your property, you’re considered a landlord and must report this as taxable income. The money you receive is considered income in the year you receive it, and you are required to file taxes.

You are allowed to deduct necessary expenses required to maintain and manage your property, but expenses can only be deducted the year in which they’re paid.

Here are a few deductible expenses:

Maintenance

Repairs

Taxes and tax return preparation

Advertising the property

Cleaning and cleaning supplies

Repairs

Insurance

Real estate taxes

Mortgageinterest

Management fees

Utilities

Travel to and from the property

All improvements to the property are considered an asset and should not be included as an expense.

Security deposits are not taxable since they are to be returned to the tenant at the end of the lease. However, if you end up taking part of the security deposit, then it is taxable and must be included on the income that you show on your tax return for the year that the tenant vacates.

Barrons Property Managers can take care of all this for you, and at the end of the year we give you a 1099 for you to give to your tax accountant

If you’ve bought a home, you probably had the opportunity to purchase a home warranty. But are they worth it?

What is a Home Warranty? It’s a service contract that pays for repairs due to common maintenance issues, and replacement of appliances if they cannot be repaired. Most of these service contracts will not cover every repair you may have. Most consumer complaints show that most of these companies avoid paying claims citing homeowner negligence or claiming it was a pre-existing problem.

Most policies will include home appliances, heating, cooling, plumbing, and electrical systems. Structural systems are usually covered by a traditional homeowners insurance policy.

Remember, always read the fine print. Companies will promise you the world, but most contracts are filled with exclusions and denial provisions. Most policies include plumbing, but not if the pipes freeze. Parts that break the most are usually not covered at all, and usually “plumbing” only means the actual pipes inside the wall.

How much do they cost? It will depend on the type of policy you buy most companies will have both basic and premium policies. Most people never fully utilize the service.

Whether you purchase a home warranty or not, is a personal decision. Some investors will purchase warranty for the first one or two years, after that they have a better understanding of the home and its appliances. After that you can make a decision to self insure or continue with the home warranty.

Some of the considerations to consider are:

• New homes may not need a warranty because the appliances may have a manufacturing warranty in place. If the home is 10 plus years or older some of the appliances may start to fail.
• What are the condition of the appliances?
• What kind of emergency/maintenance fund do you have in place? Good rule is to put aside $100 per month, and have a two or three year balance.
• Live local? Can you meet and coordinate with the repair tech and your tenants at the property.

When purchasing your home warranty understand what to expect from your contract.

Most people use ceiling fans to move the air, whether it is warmer air in the winter or cooler air in the summer.  Now that the weather has warmed up, it’s a good idea to reverse your fan.  They say to shut off the fan when not in use, but I don’t know if I believe in that logic. What do you think?  Is it worth the time and effort to shut the fan off every time you leave the room.

BarronsPropertyManagers.com – (850)934-2588

The chill has arrived! Hopefully this was already completed but have re-posted. Have you remembered your annual furnace tune-up?

*A professional will check your system and clean it, which ensures that it will operate at its maximum efficiency. This guarantees lower utility bills, saving you money.

*Most furnaces will last as long as 20 years or more it properly maintained. However, a furnace system can wear itself out quickly without a yearly cleaning and inspections.

*Annual servicing can be as little as $100 – far better than the cost of a new furnace.

* Investing in regular furnace maintenance can limit repairs over the lifetime of the system. With your repairs, your cost of your heating unit is less. A few things checked out by a professional on your annual tune-up include:

*electrical and gas connections. They are tightened accordingly; operational pressures are checked

*Condenser coils are cleaned

*Motors current and voltage are measured

*Safety switches are checked for proper operation of the high limit switch control. They shut down the furnace automatically in the event of dangerous temperatures and or other malfunctions.

*Moving parts are cleaned and lubricated to reduce friction

*The thermostat is check for operation and accuracy to verify that is signals on and off cycles to the furnace correctly

*Lower assembly is cleaned

*Condensation drain lines are cleaned

*Air filter is clean them replaced

As the theory goes – Take care of your things and your things will take care of you

If you receive rent from anyone who lives in your property, you’re considered a landlord and must report this as taxable income. The money you receive is considered income in the year you receive it, and you are required to file taxes.

You are allowed to deduct necessary expenses required to maintain and manage your property, but expenses can only be deducted the year in which they’re paid.

Here are a few deductible expenses:

Maintenance

Repairs

Taxes and tax return preparation

Advertising the property

Cleaning and cleaning supplies

Repairs

Insurance

Real estate taxes

Mortgage interest

Management fees

Utilities

Travel to and from the property

All improvements to the property are considered an asset and should not be included as an expense.

Security deposits are not taxable since they are to be returned to the tenant at the end of the lease. However, if you end up taking part of the security deposit, then it is taxable and must be included on the income that you show on your tax return for the year that the tenant vacates.

Barrons Property Managers can take care of all this for you, and at the end of the year we give you a 1099 for you to give to your tax accountant

Even in Florida – fall is a good time to clean your home.

*Washing all your windows, they say it’s best to wait for a cloudy day so you can see the streaks. Use  store-bought glass cleaner or make your own. Some of the concoctions I’ve heard of over the years are – mix water with a squirt of dish washing liquid or One part vinegar and two parts water. Also use a newspaper instead of the rag (streaks). You probably want to use gloves though, so the ink doesn’t get on your hands

*Window blinds can be wiped down with a microfiber cloth you can also try using your vacuum if you have a brush attachment.

*Window treatments are another story. Some can be vacuumed only, some can be washed but most of them probably need a professional cleaner- hopefully you can still read the direction label!

*Wash walls down some or vacuum in the corners and baseboards for cobwebs or maybe you need a new paint job..

*It’s time to dust your ceiling mounted light fixtures and fans thoroughly

*Wipe down your kitchen cabinets, replace any ripped drawer liners that are ripped, it’s also time to go through all your contents and decide what you want to keep and what you want to donate. Reorganize the items that you’re keeping.

*Move your refrigerator out and gently vacuum  the coils behind or underneath.

* Do the same with your closet. Donate clothes that you haven’t worn for over two years. Time to dust off the boots and bring out all the clothes for the cooler season.

*We’re coming up on when the time change so now’s a good time to make sure your smoke detectors have new batteries

*Your furnace filter should be changed regularly  but if you haven’t replaced your filter in the past three months – You need to replace it now.

*If you have a fireplace it’s a good time to have it professionally inspected, and to line up your wood for the winter

*Inspect the weather-stripping on the doors and windows and repair as needed

*It’s a good time to check and clean your gutters and downspouts if you have any. Also since the weather is cooling down your yard and your bushes should be in top shape

*Drain any and all garden hoses and store, the office  will shut off the sprinkler system

*Your patio furniture should get a good cleaning at least once a year.  Living in Florida we don’t have to store unless you want to

*Hope this little list helps get your fall cleaning done – you will feel so much better…

Barrons Property Managers “now offering a guaranteed rent collection program.”  We deliver unmatched property management services along with a competitive fee structure!

Full time licensed, leasing agents, maintenance coordinator, and site inspectors – helping your investment to reach its height of physical & fiscal performance.

Call (850)934-2588 or visit us online at www.BarronsPropertyManagers.com