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New Guidelines for rent stabilized leases.

As a result of the guidelines board meeting last night, the new increases for your rent stabilized apartments beginning October 1, 2019 – September 30, 2020 are as follows;

1 year – 1.5%
2 year – 2.5%


Tennet has updated the database to include the new guidelines, so please remember to run your rent stabilized leases ending in September, October and November to get back on the 150 day schedule for leases that are coming due. Also please remember that these increases are also effective for any tenants receiving preferential rent discounts.

Property Management Fees: A Necessary Investment To Cater Problems

By

Giving house or a portion of the house on rent is one of the common practices followed by mankind from the years. It can also be said that giving property on rent is the source of earning extra income by sitting at home. Going through this practice lots of people either extend the portion of their existing house or construct extra houses forgiving on rent. All these activities in the beginning seem quite simple to them and they exhibit their properties proudly in front of their known ones, but their happiness is not less than a bubble that vanishes in the span of few seconds.

From vanishing I do not mean that their property vanishes or collapses, but I mean the problems which they face before and after giving property on rent smashes their dreams of earning substantial earnings from property within the short period. This is mainly because of complications related to the property giving on rent, because giving property on rent is not stagnated to allowing someone to stay in your house and pay you the asked rent to you. There are lots of formalities which being as a landlord is expected to be followed by you, with this you also have a plethora of responsibilities towards your tenants to which are expected to be accomplished by you on demand.

Anyhow, all these problems can be realized only by the person who has constructed additional property only for the purpose of giving it on rent, because generally if someone has given a portion of his house for rent he can easily look after the matters related to tenancy. But, if a person has developed some additional property, then there are chances that he will definitely realize that managing a property giving on rent is everybody’s cup of coffee.

So how to get rid of this problem is the matter of concern among such landlords or property owners. Interestingly, with an objective to provide remedy to such landlords for their problems today there are various property management firms which look after towards all the matters related to giving property on rent. These groups or firms are mainly constituted by the group of experts having knowledge in dealing with the issues related to the property given on rent.

Types of Property Management Fees: Although property management fees refer to the amount charged for looking after the property given on rent, but depending upon their requirements the property management firms charge the fees in different formats. Some of them are referred below:

1. Monthly Management Fees: It is self understanding term and refers to the payment made to property management firm every month for the services rendered by it. This payment is made for the varied services offered by the group, including receiving rent from the tenants, regular inspection of property, property maintenance, attaining the complaints received from the tenants during odd hours, etc. The amount of this fee mainly varies from 7% to 10% of the monthly rent received from the tenants.

2. Leasing Fees: This fee refers to the investment made for advertising the property, showing the property to your prospective tenants, screening tenants and checking their previous credit score, getting all the legal documents prepared accordingly and various other tasks. This is generally one time fees and mainly varies from 75% to 100% of the rent for the first month.

3. Maintenance Fee: It mainly refers to investment made by the company for maintaining the condition of your property. As a general practice this type of fee is mainly charged on terms and conditions determined between the property management company and the landlord. If the landlord takes the responsibility of looking after the maintenance of property no fees is paid to the group, but in case if the responsibility is handed on the shoulders to the group. Then, depending upon the terms, conditions and maintenance fee is paid to the group.

4. Late Fee: If the tenant is not able to pay the rent on the determined date, in that scenario the management firm might opt for collecting the full portion of rent or certain percentage of rent depending upon the mutually agreed conditions.

5. Eviction Fee: There might be circumstances when the landlord might wish to get his house vacated before the end of the contract. In that scenario the management company can help him in getting the tenants evicted from the house either through mutual agreement or via court. Depending upon the efforts and time, the property management company can charge the necessary fees for the same.

In return for their service the payment which they charge in simple words is known as property management fees. By charging these fees these experts agree to take full care of your property on your behalf and look after all matters starting from searching of tenants for renewal of their rent contract to solving their complaints and getting the property vacated from them after accomplishment of the contract.

Property Managers, Commercial Tenants and Evictions

By David S. Roberson, Esq.

Your commercial tenant failed to pay rent. You have heard that things are not going very well for them, but now it is apparent. As a property manager your duty and obligation is to resolve the issue as quickly as possible. When the tenant failed to pay by the due date they have effectively breached the lease and you are entitled to evict the tenant from the property. An eviction lawsuit commonly called an Unlawful Detainer action is a fairly straightforward legal process. The important thing for property managers to know is that the steps involved in this process are critical and must be followed to the letter of the law. A real estate attorney representing both parties in the action is common. If your property manager has followed the law, given proper notice, and has a detailed file of all of the correspondence between the tenant and their company the unlawful detainer action should go fairly smoothly and the landlord or owner should prevail.

The First Step Is To Resolve Rent Payment Issue If Possible

If at all possible the property manager should make every effort to get the tenant to make the rent payments and bring their lease current. If this involves waiting a few extra days for payment maybe this would be the best course of action instead of filing a lawsuit. Your individual company policies and best practices will dictate this action, but it would be better for all parties to resolve before litigation.

Three-Day Notice Drafted

If a payment is not forthcoming then a ‘three-day notice to pay or quit’ must be prepared and properly served on the tenant. This notice must be in a specific legal format. A commercial owner, landlord or property manager can choose between different types of 3-day notices; 1) specifies the precise amount of rent owed; or 2) estimates the amount of rent owed – usually when a tenant is paying a percentage rent.

If the lease requires the tenant to pay rent and other separate amounts for triple net or CAM charges, the property manager should get the proper advice on whether or not two separate and distinct notices are required to be served. For example, if the property manager or landlord accepts an overpayment of the rent because they have miscalculated and the tenant overpaid estimated rents and CAM charges this may lead to a tenant victory in the unlawful detainer action. This would also possibly give the tenant the right to attorneys’ fees. It is critical to be correct in this step.

The Three-Day Notice Must Be Properly and Legally Served

The tenant is deemed served when they are personally served with the three-day notice, or a responsible person at the place of business is personally served on the premises. In the event no one is available the landlord or property manager can attach the notice to the front entry door of the business premises while simultaneously sending a copy of the three-day notice by certified mail return receipt requested. The landlord or property manager must then prepare a ‘proof of service’ in the proper format which states in pertinent part that the ‘three-day notice’ was served on the tenant, or describe the method of service.

The Property Manager or Landlord Has a Three Day Waiting Period Required for Service to be Effective

After properly serving the three-day notice a three day waiting period begins on the next business day. If the third day falls on a weekend or holiday the three day waiting period is extended to the next business day.

If the tenant decides to pay all rent due at this point or corrects any outstanding violation of the lease terms then the eviction process ceases. If the tenant makes partial payment the landlord or property manager can accept partial payment but must notify the tenant that they are not waiving their rights to proceed with an eviction.

In the event that the tenant has violated the lease by way of some criminal act or conduct then the eviction process continues.

At the end of the three day waiting period the landlord or property manager may go forward with filing and serving a complaint and summons.

Summons and Complaint are Prepared and Served

In the event that the tenant has failed to cure their outstanding rent violation, or failed to cure any other violation that they have been property notified of, then the landlord or property manager may proceed with filing and serving the summons and complaint to the tenant. A third party not involved with the action, typically a registered process server can be hired for a fee to serve the papers on the tenant. The summons, complaint and proof of service must then be filed with the court clerk’s office together with a copy of the lease, and then property served three-day notice and its proof of service.

Technical Mistakes Can Cause Delays

If the landlord or property manager has taken this process on by themselves there is a possibility that they have made a technical error in the processing, preparing, serving, and filing these documents. There are several technical areas of the law which must be followed or will result is substantial delays if they are not. A tenant who hires an attorney will likely find these technical errors, if the court doesn’t find the errors. This will likely result in delays which means money to the property owner. The best course of action in these situations is to hire an eviction attorney to help prevent delays and additional costs for the owner.

Court Proceedings Require that All Parties Appear in Front of a Judge

If the tenant does not contest the eviction

A properly served tenant has five days to oppose the eviction. If substituted service was used then the tenant would have fifteen days to file a responsive pleading to the action. If the tenant fails to oppose the eviction the landlord or property manager will seek a default judgment of possession of the premises. This will most likely be granted and the case will be referred to the Sheriff’s office for tenant lockout (see below).

If the tenant contests the eviction

In the event the tenant hires an attorney and contests the eviction then things will take a while longer. The tenant will be granted more time to prepare and there will be approximately thirty-day period in which a trial will be set. If the landlord wins then the tenant will have to pay the rent and other losses most likely including attorneys’ fees. If the tenant wins the landlord may have to pay attorneys’ fees. In this situation a property manager really needs to be represented by counsel.

The Landlord or Property Manager has the Right to Lockout the Tenant

Assuming a landlord victory the county sheriff will post a ‘Five-Day Notice to Vacate’ the premises on the tenant’s door or entry into the business. On the sixth day the sheriff meets the landlord or property manager at the property. The landlord or property manager then receives a receipt of possession of the property. If the tenant is still there when the sheriff arrives, the sheriff will then physically remove the tenant. The landlord or property manager will now have a locksmith come and change the locks to keep the tenant out.

Notice to Claim Property

If the tenant leaves behind personal property there are state statutes that deal with this specific issue. The landlord or property manager must give the tenant fifteen days after the lockout period to claim any possessions from the property, or if the tenant left before the lockout, eighteen (18) days after the mailing of the “notice of belief of abandonment” to the tenant’s last known address. The notice must describe the property with specificity so the tenant can identify it, and the notice must also describe the storage costs. A prudent practice for a landlord or property manager would be to photograph and log all of the tenants’ belongings so that there was not a later dispute.

It is not legal for a landlord or property manager to hold a tenant’s personal property as security for payment of money awarded by a court judgment.

Unclaimed Property Disposed of or Sold

When the fifteen day waiting period is over the landlord or property manager can dispose of the tenant’s personal property if it is worth less than $750 or $1.00 per square foot, whichever is greater. If the property is worth more the landlord or property manager must auction it through a public sale held after properly published notice with the proceeds turned over to the county, minus expenses.

Conclusion

Although this article has briefly touched upon this process one should see that this is not a simple process, but is a process which should be taken seriously and professionally. It is always a best practice to have an eviction attorney help a landlord and/or a property manager through this process.

David S. Roberson, Esq. is a principal at Silicon Valley Property Management Group, 1900 Camden Avenue, San Jose, CA 95124, david@svpmg.net, 1-408-559-5649. David is a licensed California Real Estate Attorney, is a licensed California Real Estate broker, and has conducted over 2,500 residential building inspections. David has also inspected well in excess of 2.4 million square feet of new commercial construction from foundation to final building department approvals. David has also developed and supervised multiple residential construction projects from inception to building department approval.

For Answers to Any and All Property Management Questions Go To http://www.siliconvalleypropertymanagementgroup.com and https://www.facebook.com/siliconvalleypropertymanagementgroup

Article Source: http://EzineArticles.com/expert/David_S._Roberson,_Esq./509218

http://EzineArticles.com/?Property-Managers,-Commercial-Tenants-and-Evictions&id=8350074


TENANT RENT BILL MAILING SERVICE

The staff at TENNET is pleased to announce the introduction of an available new service to provide our users with the option of having the monthly rent bills mailed directly to your tenants! This service will begin April 2015 for those that are interested.

The cost for this feature starts at $1.00/Bill and includes postage on the outgoing rent bill and a return envelope for the tenant to use to remit their payment. This is especially helpful for our users with a greater number of tenants by removing the task of printing, folding, stuffing and mailing the rent bills each month for a very affordable price.

Anyone wishing to begin this service can contact Matt Haas via email at matth@cmsnat.com or by phone at (954) 680-3399, ext. 230.

HELPFUL HINTS FOR MORE EFFECTIVE TENNET USAGE

The support team at TENNET would like to take a moment to mention a few items that will enhance your use of our property management software.

Once the building has been selected from the Portfolio tab, the display order of tenant information can be changed by clicking on each columnar heading. For example, if you would like to see the leases that will be expiring in the near future, click on the Lease End columnar heading. This will change the display from Apartment Number order to the closest expiring leases and list all tenants in chronological order from that closest expiring date. The same process can be used to show the largest to smallest balance due by clicking the Balance columnar heading. The tenant names can also be displayed in alphabetical order by clicking the Tenant Name heading.

For those users that have elected to use the ability to produce Rent Stabilized leases only and not use the rest of the tenant AR capabilities, we would suggest the following steps. Go to Property Setup, click the Edit tab and turn off the monthly Recurring charge switches under Property Settings. This will allow you to keep your Processing Month current without generating meaningless AR balances. More importantly, it will keep your data files current for future guideline periods when producing your rent stabilized leases. While you can select any lease ending dates you desire when producing the leases, the default date will always be 120 days from the current processing month. To close the processing month, click My Account and then EOM Procedure.

The rent stabilized leases using TENNET are fully editable, but ONLY when you use the Selective Individual Lease option. The automatic default is for Complete Processing for all tenants with leases expiring in a particular month, and by clicking the drop down arrow you can change the selection.

As always, we look forward to hearing from our valued users with ideas to make your TENNET experience easier and more enjoyable, and we never charge for support.

NEW RENT STABILIZED LEASE RENEWAL FORMS UPDATE

ATTN: ALL TENNET USERS

We are pleased to announce the completion of the DHCR required update to the Rent Stabilized Lease Renewal forms that landlords must now provide to their rent stabilized tenants.

The change has added a Line #10 to our Renewal Lease Form which states whether or not the apartment is equipped with an operational sprinkler system (Does or Does Not), and if operative the Date it was last maintained and inspected.

As is the case with the rest of the data automatically produced, these two new fields are fully editable allowing the user to select the answer to the first part and include the date on the second part of Line #10. The lease can then be printed and sent to your tenant as usual when their renewal is due, and also stored as a PDF file for future reference.

Once again, this is the advantage we provide with TENNET…Necessary updates are completed as the need arises at no cost to our valued users.

ANNOUNCING NEW MEMBER AFFILIATION WITH SPONY

The market development team at TENNETSoft, LLC is pleased to announce that we have become the newest Vendor Member of SPONY – Small Property Owners of New York.

Our hope is not only to access the over 1,000 members from a marketing perspective, but to also gain invaluable insight and feedback in future development decisions moving forward, as we already do with our existing loyal users. In addition to the basic content already present with TENNET, we will be developing a complete Profile system at the Tenant, Apartment & Building levels to store retrievable data critical to future repair and maintenance and cost/management decisions. Once completed, we will continue to look at new development features keeping our core philosophy in mind…Basic, Efficient and Easy for a small monthly fee.

Please continue to visit our website at www.tennetsoft.com with more new ideas and valued feedback as we continue to build our property management software solution.

User Requested Maintenance Updates

Please be advised of the completion of the following updates to the TENNET software.

  • The order that the Tenant Rent Bills print will now remain in apartment number order, regardless of when each tenant moves into their apartment. In the past, the new tenants were printing at the end of the print order.
  • Also, the “Last Payment Date” on the Accounts Receivable Report is now indexing on the month, day and year, and no longer on year, month and day.

We apologize for any inconvenience this has caused, and encourage any additional input from our valued database of TENNET users as you continue your use of our software.

Thank you!

Matt Haas
Director of Customer Support

Business of Rental Property Investing

Rental property investment includes buying a property, giving it on a rent and then making profits. It is very important to carefully maintain the property in order to have financial rewards throughout the period of your ownership. The primary objective of any property investment is the appreciation, cash flow and tax saving. It is one of the best option for smart investors as opposed to sudden changes in the stock market. Basically, there are four categories of rental property such as single-family rental properties, commercial rental properties, multi-unit residential rental properties and holiday homes. The first category consists of extended rental for a family while the multi-unit residential rental properties involve leasing unts for many different families. Holiday homes are normally for a long-term renting purpose.

Generating income through rental property investing is mostly about the analyzing the local market, doing a survey of requirements for renting your property and by keeping your tenants happy. It is also about maintaining the property so that it can be rented year after year with minimal vacancy periods. Here are some strategies for the real estate investors to make money.

* Purchase a property in a good area and bring a good engineer or an architect for evaluation and possible renovations.
* The best way to increase the value of the property is by adding extra features to your property as per needs of the tenants. For instance providing a security alarm, laundry rooms, garage etc.
* For price advantage make your property look clean and tidy.
* Ensure that the basic utilities such as electricity, gas and water pipes are in working conditions.
* To make make a profit through property investing make sure that you purchase property in the area where you can get high rents.
* Decide whether to buy a commercial or residential property.
* You may consider to purchase property near a college as many students tend to find rental house in areas around their college. This will lead to large number of tenants throughout the year from which you can earn decent profits.

The value of the assets grow with time. So it would be a good idea to buy a property and wait. As the neighborhood improves over time, the price of the assets also goes up. This is helping to rise overall value of your investment. The real estate investing allows the investors to make money and at the same time it is great for saving money. One of the advantages of investing in property is that the price of the asset does not fall down and always keeps on rising. In rental investment, a good tenant can fetch you good wealth by paying for the insurance, mortgage, and taxes along with the monthly fees through their rental payment to you.

Thus, the key in making money through rental investing is by buying and holding.

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Hints For Rental Property Investing

Rental property investing is generally a great strategy to obtain steady earnings. In recent times, this sort of investment has quickly come to be increasingly well-liked as making an investment in the rental property is often rather rewarding.

Typically, you’re likely to invest money in the property for many purposes like money flow, appreciation too as saving tax savings. By investing in rental property, you could have all these rewards simultaneously. In case you seek possibilities for rental property investing, you must search across various categories of rental properties such as single family rental properties, multi-unit residential rental properties like apartments, vacation residences and industrial rental properties such as shopping centers and office buildings.

Rental property investment is not restricted to just obtaining a property, collecting rent and loosen up. If you wish to earn consistent income for many years to come, you need to manage the rental property pretty carefully. You’ll be able to get specialist advice for rental property investing from different sources for instance nearby appraiser, local bank or mortgage enterprise, county tax assessor and neighborhood multiple listing services.

Smart tips for rental property investing reveals that you simply must have sufficient knowledge concerning basic principles of investing and need to have a considerable research before initial investment in rental property. The first vital aspect in investing would be to assess your economic situation and objectives for profit. You’ll want to calculate income that you’re preparing to commit and whether it will be adequate to cover the upkeep along with other costs to ensure that your investment will not be wasted. It can be pretty crucial for you to create and comprehend the model of cash flow from the rental property by thinking of the optimistic and adverse things which can have an effect on the profitability of the rental property.

It’s advisable by the experts that you should get started with calculating the costs that you just might have to incur when investing in the rental property. These costs may be operating costs, depreciation and mortgage interest expense. Then you must calculate the interest on the mortgage loan. The operating expense could incorporate property tax, insurance and repairs.

In order to find out your total taxable income you can substract those expenses from total yearly rent you will be charging for your property. Multiply this rental property loss by the federal income tax rate which gives your deductible rental loss. Your total income from the propety rental adds to your annual revenue minus mortgage payments and operating costs. In the event the your money flow is an increasing figure, then you have a chance that your investment will likely be a successful one.

While investing in the rental property, you should select a property that may appeal to various individuals. Choosing an attractive, decent area is extremely vital as most people want to live in the well-maintained locality which can be near the shopping centers, workplace and schools. When investing in profitable rental property, you’ll want to take into consideration substantial expenses preparing for many years ahead for instance costs of repairing, management of the property, emergencies and vacancies.