I recently had dinner with a friend's brother who has a home on the California coast. He's toying with moving out of state and is wondering about leasing his home.
He asked me how to choose a property manager. I advised him to first see who is a member of Narpm in his area. www.narpm.org It's a professional organization of property managers and membership is a sign of quality although not a guarantee.
I would stay with a local company, someone who's within 1/2 hr of his property. Anyone further away than that will have trouble showing the property as frequently as necessary and may not have vendors located close enough to respond in a timely manner for repairs.
I recommended he interview firms and ask what their services cover. How will his property be advertised? What costs are covered in the management fee and what costs are extra? Don't agree to a low management fee only to find out lots of services are extra charges. Kind of like air travel today!
My friend asked if the property could be inspected monthly. I told him many firms will do an annual survey but not monthly--that would interfere with the tenants' quiet enjoyment of their home.
I advised him to look for firms that lease similarly priced properties in his area. They'll be experienced with owners who are leasing out their personal homes and although the decision to lease is financial it can still be an emotional challenge.
Friday, May 17, 2013
When Roomies Go South
Found a place you love but can't quite swing the rent on your own? Or maybe you and your bff have so much fun together you've decided to share a roof.
Understand all the ramifications before you sign a lease together. Your landlord will have all roommates on one lease and each is jointly and severally responsible for the rent. That's legalese that means each roommate is responsible not for his "portion" of the rent but for all the rent. If your roommate has a sketchy job history think twice about living together as you will have to come up with all the rent if he loses his job.
What if your roommate wants to vacate but you want to stay? Your landlord most likely will not return any security deposit until all tenants have vacated so you will have to negotiate any deposit return directly with your roommate.
This may not seem fair to you especially if there's any bad blood between you and your roommate. But remember you chose each other. Your landlord did not put the two or three of you together and is not responsible for resolving disputes among you.
If you are a roommate who's vacating make sure that your landlord takes you off the lease. Otherwise you could move out, your prior roommate not pay the rent and you be named in an eviction. There's that old "jointly and severally" again.
If you're a fan of "Big Bang Theory" you may chuckle when Sheldon mentions the roommate agreement but it's not such a bad idea--treat a roommate as a business partner and understand all the financial details of sharing a home together.
Understand all the ramifications before you sign a lease together. Your landlord will have all roommates on one lease and each is jointly and severally responsible for the rent. That's legalese that means each roommate is responsible not for his "portion" of the rent but for all the rent. If your roommate has a sketchy job history think twice about living together as you will have to come up with all the rent if he loses his job.
What if your roommate wants to vacate but you want to stay? Your landlord most likely will not return any security deposit until all tenants have vacated so you will have to negotiate any deposit return directly with your roommate.
This may not seem fair to you especially if there's any bad blood between you and your roommate. But remember you chose each other. Your landlord did not put the two or three of you together and is not responsible for resolving disputes among you.
If you are a roommate who's vacating make sure that your landlord takes you off the lease. Otherwise you could move out, your prior roommate not pay the rent and you be named in an eviction. There's that old "jointly and severally" again.
If you're a fan of "Big Bang Theory" you may chuckle when Sheldon mentions the roommate agreement but it's not such a bad idea--treat a roommate as a business partner and understand all the financial details of sharing a home together.
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