DOWNLOAD FREE LANDLORD CORONAVIRUS REPORT (Click Here)

Multi-unit Properties with Common Areas Should Immediately Be Cleaned

If you own an apartment complex, your first priority should be to clean common areas. Access doors used by everyone, stairways, handrails, gyms, and lounge area should all be sanitized. Contact cleaners in your local area to see who is equipped and available, as demand for cleaning services has skyrocketed. They don’t need any special cleaners or equipment; CDC guidelines recommend using bleach and at least 70% alcohol solutions to disinfect. A list of disinfectants that meet the EPA’s standards for use against COVID-19 can be found here.

Soap and water can also be used on surfaces like couches, carpets, and window coverings. It’s also a good idea to install hand sanitizer stations in common areas or even outside the building.

If you own a commercial building, you will need to extend the cleaning to areas like bathrooms and meeting areas. You might think it’s the tenant’s responsibility to keep these areas cleaned, but in situations like this if you can do something to help prevent the risk of spread, it’s advisable to do so.

Get In Touch with Your Tenants

The most important thing you can do, after cleaning, is keep open communication channels with your tenants. Whether you own complexes or one single-family home, your tenants are likely experiencing the same enormous changes you are and are struggling to adjust. Reach out and let them know you’re taking the virus seriously, you’re disinfecting common areas if applicable, and that you’ll keep in contact to ensure they’re getting the support they need. Make sure they’re aware of the CDC guidelines and are doing everything they can to keep themselves and others safe.

This is especially important for owners of multi-unit properties. One sick tenant can lead to an outbreak, so it’s vital to have a plan in place. Your first step should be to encourage tenants to stay informed and turn to local news for updates. Send them the CDC’s guidelines on how to stay safe, which can be found here. You don’t want to induce panic or anxiety, but the more people follow the recommendations, the faster we can get a handle on the virus. You’re not just doing your tenants a favor, you’re doing the community a service by spreading information instead of germs.

If someone does get sick and you own a multi-unit property, preserve their anonymity while still keeping other tenants informed of the situation. Get those cleaners in there and encourage everyone to monitor themselves for symptoms and seek medical attention if necessary. Most cases are mild, but that doesn’t mean the threat of an outbreak shouldn’t be taken seriously.

Keep in mind that through all of this, you still have to respect your tenants’ rights. You can’t discriminate against them if they’re sick, you must give proper contact if you want to come in and clean, and you need to protect their privacy if they do become ill.

Limit Contact and Encourage Tenants to Stay Indoors

If your usual routine involves collecting rent in person, it’s time to come up with a new plan. You can have them leave rent payments in their mailboxes, on their doors, or ask them to send payments through the mail straight to you. This will really come down to personal choice, but whatever you decide the goal is to limit contact as much as possible.

You might also have to reschedule things like inspections or walkthroughs. If you absolutely have to have in-person meetings with tenants, maintain six feet of distance at all times. You both might feel a little awkward, but it’s a small price to pay to stay safe. You can also wear masks for added protection, just in case either one of you is not showing symptoms but has still been in contact with the virus.

While you’re limiting contact, remind your tenants that if they can do the same, they should. Even if you’re disinfecting common areas, encourage tenants to stay within their own units. For single-family properties, let your tenants know what steps you’re taking and how those steps might affect them (such as no-contact rent collection and social distancing during inspections).

Be Prepared for Difficult Economic Times

Perhaps the biggest change looming on the horizon is rental payments. Businesses big and small are closing their doors, and those that aren’t equipped to offer work from home options have been forced to layoff thousands. Unemployment applications have skyrocketed, and states are struggling to catch up to and meet demands. Even those who are lucky enough to be able to work from home might see reductions in the hours they can work or pay cuts.

In short, the recession we’ve all feared is looming overhead thanks to COVID-19. Entire countries are shut down, and that has a ripple effect that everyone feels.

The biggest expense for most people is rent, and while it’s easy to cut back on a lot of unnecessary expenses when times get tough, the one place that can’t be neglected is housing. Tenants who are experiencing financial difficulties due to COVID-19 are, in some states and cities, under unique protections. Around 90 cities have stopped shutting off water to those who can’t pay their bill, and some have even banned evictions related to COVID-19 financial constraints. Many cities are taking their own specific steps, so definitely check with your local government for city-specific information.

As a landlord, you might feel that some of the new rules are a bit unfair, but remember that for most people, it’s out of their hands. If you’re concerned about what a lack of rental income will mean for your own financial situation, reach out to other landlords or your local housing authorities to find out if there are resources specifically for landlords. Some states or counties have disaster relief funds that can help both tenants and landlords, and since a state of emergency has been declared these funds are available for use. Your local government should have more information.

Stay Informed

It might be depressing to watch the news every day and see the number of cases climbing, but it’s necessary to know what’s going on to protect yourself. So little is known about COVID-19 that every day, new information is coming to light. States are responding as best they can, and resources are popping up everywhere that are intended to help those who are struggling. It’s tempting to panic or let anxiety rule your actions, but now more than ever is the time to have a clear head.

It’s tempting to fall into an “every man for himself” mindset, but remember that being a landlord is a full time gig. Even during a national emergency, you still need to be there for your tenants. Whether the extent of your role is simply reminding them to stay inside or personally sanitizing every surface of your buildings, don’t forget that your actions will affect many others. When life gets back to normal, your response during this time will say a lot to your tenants. Think carefully about what message you want to send.

The post How Landlords Should Prepare for Coronavirus/COVID-19 appeared first on Landlord Guidance.

Making the decision to put your property up for rent is nerve-wracking and exciting. While visions of dollar bills might be dancing in your head, the reality is that you have some work to put in before you can begin to think about profits.

You might think that you can simply snap a few photos and put your listing on a real estate site, but going this route skips so many important steps that will come back to haunt you later on.

Every piece of property, whether for sale or for rent, needs to be prepared before it hits the market. Some landlords call this a “Make Ready.” Not only will it ensure you cover all your bases to keep yourself, as the landlord, protected, you’ll also have an opportunity to increase your revenue by attracting the right tenants.

Here’s a look at the steps you need to take to get your property ready to rent out and start your journey as a landlord on the right foot.

Do a Walkthrough

Before you do anything else, walk around your entire property, inside and out, and try to see it through the eyes of a potential tenant. What features might they love, and what can they do without? Are there any safety hazards to consider, or areas that might not be suitable for children? Also make note of anything you might want to take out, such as furniture or equipment. If you wouldn’t want someone using it or breaking it, it should go elsewhere.

Use the walkthrough as an opportunity to write down repairs and things that need to be cleaned. Examine everything, from bathroom light bulbs to the stove and even heating/cooling systems. Everything should be in working order when your tenants move in. Also be sure to keep in mind legalities and things that you’re obligated to include, such as smoke and carbon monoxide detectors.

You can find information on your state’s specific requirements in this area here. The walkthrough gives you a chance to mentally prepare and visualize all that you need to do, so take your time and be thorough.

Make All Repairs, Major and Minor

After your walkthrough, take your list of repairs and get to it. Don’t overlook anything, because your tenants won’t. It might seem obvious that the washer and dryer will need to be in working order, but you might not realize that a leaky faucet or broken window screen can affect quality of living and thus the happiness of your tenants.

Think about how you would feel moving into a rental in such a condition. This not only comes down to tenant happiness, but also general home maintenance. Never forget that you own this property. It is yours to take care of, and every repair you make is a preventative measure.

Some things to ensure you check and repair if necessary include:

• All appliances, including the washer and dryer, stove, dishwasher, garbage disposal, etc.
• Light bulbs in every room as well as outdoor lights
• Leaky faucets
• Poorly draining showers
• Broken cabinets and doors
• Torn window screens
• Walkway trip hazards

Clean, Clean, and then Clean Again

Most rental agreements include a provision stating that the dwelling must be left in the condition it was found. This means that if you let your tenants move into a pigsty, they are under no obligation to leave it in any better shape.

If you want to make a good impression, attract quality tenants, and be left with little to no mess when someone moves out, you need to invest the time and/or money to thoroughly clean it. You can either take the time to do this yourself or hire professional cleaners.

If your rental has carpets, definitely get them deep cleaned, particularly if someone else lived in it recently. This is not only an aesthetics factor, but a health and safety one as well. If your future tenants have young children who are crawling all over the floor, they’ll feel at ease knowing it has been cleaned.

If you’re taking care of the cleaning on your own, don’t neglect the hidden corners and hard-to-reach places such as:

• The tops of fans
• Inside kitchen and bathroom drawers
• Underneath the sink
• In the corners of closets

All of these places can attract dust, mold, and all forms of debris. Speaking of mold, if you encounter any, it absolutely must be cleaned as it is a safety hazard. Black mold in particular is dangerous, so contact a professional if you feel the issue is beyond your control (if you’re not sure how to identify black mold, check out this resource). Mold can be a sign of water damage and leaks as well, and those types of repairs should not be put off.

Curb Appeal Applies to Rentals, Too

The inside has been repaired, cleaned, and is now ready to be rented out. Right? Not just yet! Many landlords fail to take into account a very important concept in all real estate deals: curb appeal.

Your tenants might not be the owners, but that doesn’t mean they won’t take pride in where they live. If the property looks run-down, outdated, or unsafe, prospective tenants will be less likely to bother viewing the interior because they will expect the same level of neglect.

In addition, a property that doesn’t look like it has been well taken care of can indicate to a tenant that the landlord is lax about repairs and maintenance, and no one wants to land in that kind of rental situation.

You don’t have to do a full-on remodel, but at the very least get the exterior cleaned or slap on a fresh coat of paint, spruce up the landscaping, add in a fence if you’re on a busy street, and make the house look and feel welcoming.

Make Sure You Keep Your Lender and Insurance Informed

The final step before you start looking for tenants is ensuring you’ve followed all the procedures required by your mortgage lender and your insurance company. There may be information in your mortgage contract about rental properties, so check there first if you’re unsure. In any case, you may need to notify your lender in case they have stipulations regarding renting out a property you still owe on. You definitely don’t want to be dealing with lender issues after you’ve found the perfect tenants.

After you’ve gotten approval from your lender (if necessary), you absolutely must look into insurance options. Being a landlord comes with a lot of risk and responsibility, and the proper insurance can help offset the cost of any mishaps.

Landlord insurance is similar to your typical homeowners insurance and will cover things like fires and hailstorms. However, it also protects against landlord-specific situations such as loss of rental income and increased injury liability. These are things that would not be covered under your ordinary homeowners insurance policy. For more information on landlord insurance, talk to your current insurance provider or take a look here.

At the end of the day, preparing your property for rent is all about seeing things from the perspective of a tenant. Everything you do has the goal of attracting the right tenant and/or keeping them living in your property for the foreseeable future.

It might cost you some money upfront to prepare, and it’ll definitely take some time, but once you find a quality, long-term tenant, you won’t regret it one little bit.

The post How to Prepare Your Property for Rent appeared first on Landlord Guidance.