Residential Letting Software for More Effective and Streamlined Property Management

Residential

 

With the increasing number of government initiatives and legislation referring to the upkeep of property, the individual demands of tenants combined with the expectation of the property owner, it is little surprise that many property management companies rely heavily on property management software to help them manage their portfolio.

Unfortunately, until now, most of the rental property software available was often designed along a single theme, such as keeping a record of property maintenance. Using this software for other tasks for many companies proved impossible or so time consuming that it becomes impractical to even try to do so.

The result is often a bundle of residential letting software that is ad-hoc, repetitive, inefficient and time-consuming for the end user, and this is hardly an ideal situation in the rental property market, where efficiency, professionalism and immediacy are the hallmark of a successful business.

Now, however, there is the perfect solution. The latest bespoke designed residential letting software. The program is rewriting the definition of just what is possible from residential letting software.

No longer will property management software be simply a database that is awkward to update. The complete solution, offering a vast range of solutions that can streamline your business, making you more effective, efficient and economical.

From organising residential property management software to marketing, property maintenance, client accounting, document management and work flow automation, letting software delivers the complete range of utilities that ensures managing your properties is easier than ever.

Furthermore, residential lettings software can be used entirely as web-based letting software, meaning that should you be out of the office on a visit, you can still access the complete program from the internet. This offers a new degree of flexibility for the property management consultant.

In addition to helping with the general admin tasks, the software avoids duplication of tasks, increases the productivity of your workforce and in a new development for property management software, allows you to ensure that maintenance records and client accounting is kept up to date, all in one central location. This frees up vast amounts of time for your team to spend their time on providing outstanding customer service, rather than general administration tasks.

Any company with a portfolio of properties to let needs rental property software for the 21st century. The property management software that achieves this in the easiest, simplest and most flexible way possible, allowing companies to both address the individual needs of their clients and manage their properties to the highest standards.

Choose your letting software that takes the strain so you can focus on delivering a professional, efficient and effective service to your clients.

How to Handle Your "Impossible" Tenant

Everybody has had them. I can remember the name of every one of them. These are the tenants that won't play by the rules, and have no limitations to the amount of grief they can cause you - most actually delight in calling a hundred times a day, and complaining about things that most people would never dream to even talk about.

So until every manufactured home park tenant becomes a solid citizen, this is a primer on how to handle them, and avoid the type of liability and unpleasantness that they can cause.

Which Type Are They?

For the sake of simplicity, I'm going to divide problem tenants into two groups: 1) behavioral and 2) verbal. "Behavioral" problem tenants take actions that jeopardize the welfare and aesthetics of the community. "Verbal" problem tenants do their damage by harassment of the park management.

Both types are not conducive to a well-managed, profitable park, and must be immediately disarmed and/or removed from the property. However, in many cases, the proper steps can cure their issues and make them a normal, paying tenant again.

"Behavioral" Problems

The first type of behavioral problem is the tenant who engages in criminal activity. The most common of these is manufacturing/dealing in drugs. Signs of this type of behavior include a constant stream of cars dropping by the house - normally at night - for very short intervals, as well as people milling around in the street at night, in the vicinity of the manufactured home.

The important step here is to do nothing yourself, but to only take action through the local police department. You should never get directly involved with this type of tenant, due to risks of physical harm to you and potential liability. Call the police department and tell them what you have been observing. If there really is something to what you suspect, the police will take care of it.

But if the police fail to take action, then your next step is to non-renew the tenant's lease. Assuming that the tenant is on a month-to-month agreement, you can simply not renew, and they have to move out at the end of the next full month. Even then, it is smart to have a local attorney file this notice and to handle any subsequent legal action to evict them.

The Tenant Who Won't Keep Their Property Up

Equally disruptive - but not as scary - is the tenant who refuses to keep their property in an acceptable condition. Debris everywhere in the yard, a house with a paint job that you can hardly tell what the original color was, or grass that is 3' tall. It is impossible to ask the rest of the park community to keep up their property when you allow this individual to get away with murder. So what do you do?

The first step is to notify the tenant in writing that they are not in keeping with the park rules. This assumes that your park has rules; if not, you need to adopt some immediately. It is essential to keep everything in writing so that you have a legal paper trail in case you should have to go to court for any reason.

Give the tenant a detailed request of what needs to be done to be in compliance with park rules, as well as a timetable to complete the work. Of course, they will rarely meet this deadline, but it's the critical first step to show the court that you are trying to be reasonable.

Once the deadline has passed - and the clean-up has not been completed (or probably even started) - then you have two choices: 1) non-renew the tenant's lease or 2) take matters into your own hands. To take matters into your own hands, I'm suggesting that you clean up their yard, mow the grass, or re-paint their house at your own expense. You can then either bill the cost back to the tenant, or just write it off. How do you choose what to do? The key is the tenant. If your tenant is old and infirmed, then they simply do not have the ability or funds to make the needed repairs. If they have paid their rent like clockwork for the past several years, why cut off that income stream by evicting a good-paying tenant? If, however, the tenant is young and able to do the work themselves - but too lazy to do it - then you might want to bill it back to the tenant to send a clear message that breaking of the rules is not tolerated. You might break the charges up into several monthly installments to make it more affordable. But you cannot let people continue to ruin the park for everyone.

The Verbal Problem Tenant

These are the tenants who complain continuously about anything and everything. They don't necessarily disturb the other tenants - their aggression is focused on the park management. I have had these type of tenants who will call at 11 PM and then again at 6 AM; they have virtually no boundaries.
These are much easier to dispatch than the behavioral problem tenants. You simply have to turn the tables on them. Here's how.

When the tenant calls to complain, tell them "you are clearly unhappy living here, you really should move to a manufactured home park where you would be happier." This throws the tenant off immediately, as they think that their power over you is that you don't want to lose them. When you let them know that you don't care about their rent anymore, they are now in a position of weakness. In addition, it costs around $3,000 to move and set a manufactured home. So for them to move, they will need to come up with $3,000 cash. Who's in a position of weakness now?

Conclusion

Problem tenants can be solved. Don't let a tenant ruin your day. Take action and turn the tables on them. It's good for you, and it's good for the community.

 

How to analyse a deal

Togather analyse a Deal

There are many alternative ways in deciding the profitability of your property investment.

Increasingly you will find investors achieve varying degrees of profitability from their investments, ranging from 10% profit levels to deals realising 30% and above. It becomes very individual to each investors requirements.

There are a number of basic questions which need to be answered to fully understand the makings of a profitable investment.

Question 1

Can I borrow money from a lender to make the purchase? For a Buy-To-Let mortgage to be approved an assurance on approximately 130% rental coverage is needed. At this point you need to contact local letting agents to receive their assessment on rental valuations, after which your mortgage broker can calculate the sustainability of the monthly mortgage repayments required to purchase the property at the present market value.

Question 2
Do I have the required 15% deposit available? 

You will be required to provide a 15% deposit to meet the 85% loan to value. This can be provided either as a cash amount or as 15% equity in the property.

Question 3
Is the property 20% or more below market value?

Majority of the profit made on an investment is through the purchase.
You may need to negotiate the purchase price to at lease 20% BMV. Should you need to, this will allow you to release the equity out of the property at a later date to realise as much of your investment in cash as possible. This will increase my ROI (Return On Investment). Should you decide to sell up anytime in the future, there should be a healthy profit after tax.

Question 4
Will I be able to sell the property quickly?
You need to research the area to establish that should you wish to sell quickly, will you be able to do so? This is important as you may want to release the funds from the investment to purchase further properties.

Question 5
Will I be able to rent the property quickly?
You need to also research the rental market to establish that should you wish to let the property, will you be able to do so? This is also important as you may want to rent the property out over a period of time to benefit from a positive cashflow.

Question 6
What will be my cash-on-cash return?

When calculating the cash-on-cash return to establish your ROI, you should usually plan for at least 25% ROI – anything more is a bonus.

Question 7
When will I break even?
Taking into consideration the number of months or years, calculate the length of time it will take you to recover the cash injected into the property including deposit, purchase costs, refurbishment etc.
Keep your cash flow forecast positive yet realistic.

Question 8What is the Net Yield?
When calculating the net yield, anything less than 4% will prove cash flow to be minimal and not worth investing in for rental purposes. The answers to the previous questions will need evaluating in detail. A positive or negative picture will form to help you decide whether the property is worth the investment.

Use your time productively, viewing properties that do not stack up can waste an awful amount of time. Request the relevant information from estate and letting agents, together with your own research.
This will save you time and money. Prior to viewing potential property investments use the information to calculate the profitability, thus you’ll only be viewing properties that have potential profit. This may well prove crucial in the future as you progress as a property investor when you will be dealing with multiple investments in building your portfolio.