This month we are featuring three new industry products that will help you save money, protect your tenants, and go green.

One2Flush revolutionizes the way you save money on your water bill. A couple of months ago we ran an article promoting One2Flush. Since then Apartment News has gone to fully backing the product. We have installed One2Flush in our own homes, and already started noticing the money being saved. Cutting the water used while flushing, apartment owners can save thousands on their water bills by installing this product in all their units. The more units you have = more $ saved. To get more information call (800) 931-6666.

A new safety product  that has caught our eye is Universal Burglar Alarm. The product is affordable, and can offer security to every tenant in your property. Designed to enforce the door from break-ins, burglars will not be entering your tenant’s apartment, meaning that tenant turnover will decrease due to their feeling of safety. To get more information call (800) 330-7045.

Another product that is gaining momentum is Scale Watcher. Scale Watcher is making its mark on the West Coast to be the new product to have. Designed to soften your water, it can have a monumental impact. It is your simple solution to hard water. Saves fuel costs, prevents scale, is easily installed and decreases your maintenance bills. To get more information call (714) 815-1724.

About the Author:
Jordan Smith is the Marketing Director for Apartment News Publications. You can reach him at js@aptmags.com

Apartment News is pleased to announce that we have launched a new website. We are very excited about our new project, and hope that it becomes a major and useful tool in helping you complete your projects and manage your properties more efficiently. Apartment News is striving to create the definitive contractor and income-property specialist database. With as few clicks as possible, residential, apartment and commercial property owners and managers will find countless contractors and property specialists to call upon if needed,  for their services

If you wish to check it out, go to www.aptcontractors.com. There you can find information on hundreds of contractors, and how to get in touch with them. In the future, we hope to add Customer Reviews, so that way you can see what other owners/managers have to say about them and whether  they will be appropriate for your project. We know how hard it is to find the right company for the job, and we want to make the process as easy as possible. Included in the website will be great resources and “How-Tos” to help you manage your properties.

So if you ever find yourself looking for property services and you don’t have our magazine with you, remember that you can go to www.aptcontractors.com to find the contractors and properties specialists you need. We would love to hear your feedback on how to make the site more useful and what you would like to be added.

About the Author:
Jordan Smith is the Marketing Director for Apartment News Publications. You can reach him at js@aptmags.com

For most people, apartment ownership means a big investment with special risks. Buying an apartment is a big undertaking and as an owner you need to make sure that you are adequately protecting your investment.

You’ll want to make sure you have coverage for your property, your liability and loss of rents. The main components of an apartment policy include: the building, business property, business liability and loss of rents.

Building
The building provides coverage for accidental loss to the building and other structures attached to it like a garage or wall. If there are detached structures on the property, make sure to clearly define their use. If the structures are used for commercial, manufacturing, farming, or if your tenant decides to use them for any of these purposes or other business purposes, a standard apartment policy may not cover losses arising from these activities.

Business Property
Keep in mind, business property includes items such as appliances, maintenance, and service equipment owned by you. If your apartment policy does not include this type of coverage, you might be exposed.

Business Liability
This important coverage insures you against bodily injury, personal injury, or property damage resulting from the ownership, use or maintenance of the property. These types of claims are the ones that could affect you and your family for a lifetime if you are not properly insured. Business liability may also include coverage for the cost of legal defense. Do you know the coverage limits on your current rental dwelling policy? If you don’t know the answer, I’d suggest you start your research today.

Loss of Rents
This coverage reimburses the fair rental value of the dwelling for up to 12 months if your rental dwelling is left unfit for occupancy due to a covered loss. Does your current policy cover you for the loss of rents due to unforeseen circumstances like a fire? It’s an answer you should know.

There are additional coverages included in a rental dwelling policy. Please check your policy for a complete description of coverage and loss or damage not insured.

About the author
Tony Freeman is a State Farm Agent with over 15 years experience in the insurance industry and 9 years experience as a landlord.  Tony earned his Bachelor of Arts degree from California State University, Fullerton in Communications and his Masters in Business Administration from the University of La Verne.  His agency was recently featured in the business section of the Los Angeles Time for their popular weekly Small Business Makeover section.  He can be reached by phone at (800)791-6320 or by fax at (951)340-3568 or by e-mail at tony@tonyfreeman.net

Software Advice, a web site that advises software buyers about which property management software to buy, just released the results of their 2009 Property Management Technology survey.

The survey garnered responses from 70 property managers from around the country and came up with some very interesting conclusions.

Among them:

• What technology a growing property management company uses;
• How prevalent social media use is;
• How property management specific software allows companies to manage more units per employee; and
• How companies are struggling to track leads that come from the Internet

Software Advice also made the full results of the survey available for download on their web site, if you want to dive deeper.

Here are what some of the respondents had to say about the state of technology in the property management industry:

“I feel web based software is coming of age. The biggest obstacle most face is ownership rights of their data.”

“Property management has been late to adopt technology. in the last couple of years we have seen many more offerings in the property management space and I think that there is still a long way to go compared to many other industries.”

“We need more integration with leads and leases. We need the search, show, follow up, lease process that can be seen on a computer report.”

“I view technology as vital to our future growth – remote connectivity to a server based hub structure, text pull and push campaigns, mobile phones and PDAs all play apart. Web based technology too – Google Analytics, our website, online services.”

How are you using technology in your property management job?”

Click Here to Go To Their Website

I’m exited about all the electric cars coming into the market starting at end of 2010. I plan on owning one myself!  My question is:  How do I make my apartment building electric car friendly?  I believe this will be the future and I want to have a leg up on the competition.  If I can rent my vacancy faster and for more money, I’m in!   What do I have to think about to convert my existing garages or parking areas to accommodate the electric cars of the future?  George

Dear George:
Wow!  You are really thinking ahead.  Good for you!  We also believe the future lies in the use of more and more green technologies.  In Southern California, the car is king and public transportation leaves a lot to be desired.  Electric cars make a lot of sense for those commuting thirty or forty miles a day.  Many of the new electric cars coming out will allow charging from a 110 volt/15amp outlet.  But, that is marginal at best.  We would recommend installing at minimum, a dedicated 240 volt/40 amp outlet in each stall or garage.  Optimally if you are going through the expense of running 240 volts, back it up with at least 80 to 100 amp service.  This will allow for future expansion and easily charge two 40 amp electric cars at one time.   The outlet station should be no more than 25 feet from the vehicle.  This is pretty heavy duty electrical work and we would recommend you use a qualified electrician who understands what you want to do.

Dear Maintenance Men:
I have a vacant unit ready to rent.  I have done most of the usual upgrades: new carpet, flooring, counter tops and paint etc.  But the unit still looks a bit dated.   Do you have any suggestions?
Manny

Dear Manny:
Sounds like you have done a lot of work to your units.  We recently walked a completed unit and were also struck by something being just not right, but it was hard to put our fingers on it.  Upon closer inspection, it hit us; the wall plugs and switches were the wrong color.  As a matter of fact, some even had a different colored cover to the plug, or some had been painted over.  This made the unit look dated, unfinished and sloppy. Electrical wall switches and plugs are easy to ignore and a bit time consuming to replace.  But, we removed each of the old switches and replaced them with square flat switches and did the same thing with the receptacles.  The hardware stores offer a number of colors, so try to match or contrast the existing wall color.  Now all the switches, plugs and plates were uniform and the vacant unit just came alive.  We also changed out dated light fixtures for newer modern lighting and replaced old tarnished door knobs and striker plates.  The unit looked finished and appeared more modern. These are subtle improvements like lipstick and mascara; transforms the ordinary to extraordinary.

Dear Maintenance Men:
My resident manager notified me that the 100 gallon rapid recovery water heater in the building’s laundry room was spewing soot.  The soot is covering the walls and ceiling and is dirty to the touch.  I have never seen a water heater do this; how can I fix this problem.
Leslie

Dear Leslie:
Soot from a water heater of any size or gas appliance in general is not good and indicates a major problem.  This is not a do it yourself repair job.  Because of the health and safety issues involved, contact a licensed plumber or water heater expert to evaluate the problem and make the necessary corrections.  That being said, we can provide you with the three main reasons that would cause a water heater to spew soot.  One: The burner assembly under the tank is dirty; soot has formed on the assembly and is causing flame distortion and improper burning of the gas.  Essentially debris has caused restriction of the burner ports.   Second:  The air shutter opening directly under the burner head is restricted and causing improper burning of the fuel.   Third: The spiral baffles inside the water heater flue are deteriorated and causing a disruption in the air flow which causes soot to build up in the flue.  This could eventually produce a blockage which would force the burner flames to “rollout” from under the tank.  This would trigger a very dangerous situation in the location of the water heater.

If you need maintenance work, consultation or management for your building or project, please feel free to contact us.  We are available throughout Southern California.  For an appointment please call Buffalo Maintenance, Inc.  at 714 956-8371  and  JLE Property Management, Inc. at 714 778-0480

The importance of creating a business plan for investment real estate doesn’t get much press.  I have seen that some people who deal with real estate for a living do not even use them.  Whether you are a sophisticated real estate investor or only own one rental property, spending a little time on a business plan can save a lot of headaches in the future.
I have had this exact conversation with at least two real estate brokers over the past decade:

Chris: “While reviewing this property, I noticed that the lease runs for 75 years, and has no rent increases.  How do you expect to sell this property for a profit?”

Broker: “Real estate always goes up in value, right?”

Wrong!  I have always reminded my investors that real estate’s value is tied to the income it produces.  Rising income is needed to realize rising property values.  At the same time, flat income does not lead to stable value.  In fact, due to the influence of inflation, it leads to declining value over the years.  Why buy real estate that will slowly decline in value over the next 50 years?  People do every day.  These investors don’t mean to do that but, because they lack a business plan; that is exactly what happens.

What’s The Worst That Can Happen?
Perhaps you have heard the phrase “People don’t plan to fail; they fail to plan.”  This is exactly what happens often in real estate.
An investor buys a property for “a good price,” but loses it to the bank 2 years later.  Often, this happens due to poor planning.  We have all heard of investors who bought single family homes with no money down, and experienced a bad result.  They bought a new home in what was formerly a desert for a “low price” of $400,000, taking advantage of “great financing” at 1.5% annually.  With a $1,380 mortgage payment and $1,800 of monthly income, the investor figures he can’t lose.  But what happens when the special interest rate ends?  The investor may have used an aggressive assumption like “the property will appreciate at 30% per year.” His plan was to sell at that point and “cash in.”
We all know what happened with that investment.  When the interest rate kicked up to 6.5%, the mortgage payment became $2,528 per month, and the property’s value declined to below $250,000.  The investor found that his “can’t lose” investment just did.
Any good business plan contains provisions for “what if” scenarios.  What if rents don’t rise as fast as I expect?  What if I cannot refinance?  What if I need to hold the property for several years longer than I expect?  Had the investor mentioned above asked these questions in a well thought-out business plan, he would have saved himself a lot of trouble.

How To Construct A Business Plan.
A business plan can be summarized as follows; Put on paper what you want to happen, what you think will happen, and some things that might happen.  Estimate the financial implications of these situations, and write those numbers down.  Next, write down your estimated expenses.  (Mortgage, utilities, insurance, etc.)  Create a spreadsheet that can test these scenarios.  If you aren’t a computer wizard, this can easily be done on paper with a calculator.

When I started my business, I sat down to write a business plan.  This plan contained my goals, my likely scenario, and my worst-case scenario.  I reviewed the numbers of each, adjusted the plan as necessary, and moved forward.
I do this same thing when I buy real estate for myself or for my clients.  We will estimate what rents and expenses will be, and then test that model with some “worst case scenarios.  I always want to be comfortable with that worst-case scenario before moving forward.

Realistic Financial Estimations Are Important
Assuming that an office building will go from 30% to 95% occupancy in 1 year, or planning to raise rents 10% every year for 7 years may give you attractive numbers.  In the absence of a special circumstance, neither of these business plans are very realistic.  One can torture numbers long enough to hear a great story; but that doesn’t make it true.  Aggressive assumptions are best described as the ones least likely to happen.    I prefer conservative business plans where things are nearly as likely to go better as they are to go worse than expected.  After all, unforeseen things will always happen.  It is good to have room in your plan for such occurrences.  A conservative plan can absorb an unexpected repair bill, while that expense may kill the whole deal if your numbers are aggressive.

What I Look For
When I evaluate a property, I will look at the “full picture” and use that to put together some projections.  By evaluating the building itself, its’ location, the surrounding market and submarket along with the leases and tenants, I can put together some financial projections.  If these projections look attractive, and pass several “stress tests,” I will move on to looking at the business plan – how the property will be managed, and when it may be sold for a profit.

Every public company today has a business plan that identifies corporate goals, and includes a plan on how to get there.  Doesn’t your real estate deserve a professional approach as well?

Securities are offered through Private Asset Group, Inc.  Member FINRA/SIPC. 3070 Bristol St Suite 500 Costa Mesa, CA 92626. 877-428-1031. This document does not constitute an offer to sell nor is a solicitation of an offer to purchase securities. Any such offer shall be made solely pursuant to a Private Placement Memorandum. All investments have MATERIAL RISKS. Past performance is never an assurance of future results. Investors must read the SPONSOR’S Memorandum paying particular attention to the section on RISK FACTORS, before they invest for further disclosures about terms, risks, etc.

Christopher Miller is a Managing Director with Specialized Wealth Management in Tustin, California and specializes in tax-advantaged investments including 1031 replacement properties.  Chris’ real estate experience includes work in commercial appraisal, in institutional acquisitions for a national real estate syndicator, and as an advisor helping clients through over two hundred 1031 exchanges. Chris has been featured as an expert in several industry publications, and on television, and earned an MBA emphasizing Real Estate Finance from the University of Southern California. Call him toll-free at (877) 313 – 1868.

In huge gatherings, they escape the confines of their underground nests (as in the case of the subterranean termites). The queen termite initiates this activity, when the colony can no longer maintain itself, with the large numbers it supports. Thus, new infestations must be created, and the ominous spread of these destructive villains commences.

No over the counter elixir or concoctions will eliminate the onslaught. Professional help is needed to identify the species, and make the proper diagnosis. In some cases, your attempt to treat activity can worsen the situation by driving the termites deeper into their channels or concealing the necessary evidence that a trained professional looks for.

You may have Drywood termites, Subterranean termites, or maybe both! In this case you will require completely different procedures of control.

As a property owner, insuring the structural integrity of “your most valuable asset” should be your priority. Once decline in maintenance sets in, I have often witnessed the domino effect that soon occurs.

Excessive moisture (i.e. plumbing leaks, roof leaks or cracks that may lure in moisture) poses a potential threat. Moisture is the number one cause of the onset of dry-rot, fungus damage and termite infestation. The odds are against you, unless you take evasive action! Fight back with knowledge. Know your enemy and embrace your allies. Your professional termite inspector has an arsenal of weapons that can effectively deter the unwanted pests.

If you have access to a computer you should brows through the web to learn about the options of treatment methods and companies available to you. Review your options and once you feel well informed, only then should you choose a program best suited to your needs. If your building has gone without a thorough treatment for many years, you may need a tent fumigation. If there has been a history of previous treats then you’ll have a greater chance of choosing a local treatment (which is usually less costly and less invasive). Your first course of action would be, to have a licensed inspector thoroughly inspect your structure. An experienced inspector is worth their weight in gold because they’re licensed to not only identify termite problems, but all other wood destroying pests, i.e. carpenter ants, carpenter bees, wood boring beetles, to mention a few. They’re also licensed to identify structural defects that may be easily corrected, if diagnosed in their earliest stages, saving you thousand of dollars in future repairs. Your termite company should be knowledgeable in carpentry, and preferably offer repair work as one of their specialties. This is advantageous because they can combine the necessary treatments in conjunction with the necessary repairs (possibly treating the new wood before installation). New wood sometimes becomes pre-infested, therefore you wouldn’t want to introduce more problems into your home.

A successful treatment lies in the hands of a knowledgeable company; one who can offer the consumer as many options as possible (as long as these options are valid and proven.)

Once your on the path to eradicating your termite problems, make regular inspections a common practice. Annual check-ups can reveal telltale signs that can be corrected with little or no inconvenience to you and your tenants, at a nominal cost. Build a long term relationship with the termite company of your choice and keep in communication with them on a regular basis. Remember, they are the professionals in the field and you’

About the author
Gina Hernandez is the C.E.O. of A Black Flag Inc. For response to your questions or to obtain any literature please call, (800) 546-2545. You can also visit us on the Web at WWW.A-BLACKFLAG.COM.

Safety and security of employees, residents, and guests should always be a concern for Apartment Managers.

It’s actually the law! As most Courts find where there is a foreseeable risk of harm, those who control such properties have a duty to place “reasonable” measures to prevent such an occurrence.

Risk Analysis
Risk or threat analysis is the first step in the security process.  This process entails an examination of many factors, and subsequently determines appropriate measures to implement.  Some of these factors include:

• Level of crime in and around an area
• Apartment Industry education and awareness
• Proximity of property to major thoroughfares
• Existing security features

Many law enforcement agencies will assist property managers with crime assessments and ongoing programs that alert managers to crime in and around particular areas.

If law enforcement is not available, professional security consultants should be contacted for the assessment process.

Afterwards, expect recommendations to be provided that will eliminate or reduce the risks identified during the assessment.

The Physical Security Program
A physical security program involves three (3) areas of equipment, man-power, and polices and procedures.

According to the risks of a particular, security equipment is necessary.  Most commonly used are:

Locking devices
Vehicle and pedestrian access control devices
Lighting
Signage
Mirrors
Closed Circuit Television (CCTV)

Whatever devices are used, it’s important to have someone with the knowledge and experience design the layout and strategic locations.  Failure to do so can raise a negligent security claim!

Manpower
Sometimes, a recommendation is made for the use of security guards.  It’s important to ensure that a guard force is properly trained and constantly monitored.  If the guard force is not proprietary, apartment managers should let the guard force “manage” its personnel.  Again, apartment managers making decisions on manpower allotments, post-selection, polices and procedures open themselves up to “negligent security claims.”

In short, leave it to those who have been trained in this area.

Polices and Procedures
The last area of a physical security program involves the implementation of security polices and procedures.  Again, trained individuals are necessary to write security plans, and operating procedures.

Conclusion

In conclusion, customer service includes providing a safe environment residents, employees, and property visitors.

Foremost, identify your risks.  Secondly, provide appropriate security measures.  Lastly, adequate security is all about adequate management!

Author Michael A. Hodge, CPP, JD is President of Security Management firm Michael A. Hodge and Associates, LLC.  He is an Expert in Apartment security negligence and provides security consulting services to Property Managers all across the United States and abroad. You may contact Michael at Michael A. Hodge and Associates, LLC at www.HodgeSecurity.com and 240-381-5197 or mhodge@hodgesecurity.com

This energy efficient roofing is like a big (usually white) rubber roof. It lasts longer than hot tar roofing and is much superior across the board. This product has been around since the sixties or so and has been upgraded and changed and re-invented. It now is a standard in the industry and becoming more popular as people get introduced to it.

Single ply roofing is basically large rolls of different combinations of rubber, pvc, plastic, and other chemicals that are hard to pronounce.(there are a few different types) Ultimately this material is superior to traditional hot tar roofing and will be replacing it in the near future. It is “heat welded”, one sheet to another, to create a watertight system.

I have installed hundreds of thousands of square feet of hot tar roofing and I can say that it is quite involved, and very dangerous. It is also limited to 20 or so years of life at best. The new single plies are longer lasting, chemical and fire resistant, have high reflectivity, much easier and safer to install and recyclable.

With oil prices rising; hot tar roofing has risen as well. The single ply roofing is based on plastics, rubber, and other non-oil related chemicals, thus not directly subject to the oil price frenzy. So what used to be more expensive is now competitive with the hot tar.

I am not a salesman for single ply roofing. I am simply a roofing contractor with some experience in the field writing this article to shed some light on a subject most people are not acquainted with.

So if you need a flat roof re-done on a property you own you would be wise to get information on some of the different types of single ply roof systems now available.

Provided by Tommy Scherer of T & G Roofing (818) 459-0702

by John Nuzzolese

I always say that “95% of your tenant problems can be eliminated in the screening process.” If you’re like me, you probably find it difficult to relax when you have vacancies. So getting it rented is the main idea, right? Well, from now on, lets say “getting it rented to a properly qualified tenant is the main idea.”

Below is what I call The 5 Steps of Screening Tenants.

STEP 1: First Contact

From the very first contact with the tenant, the screening process has begun. Whether you are the landlord, real estate agent or property manager, the same still holds true.

First Contact is usually by telephone, so you need to ask the right qualifying questions in order to decide if you should proceed to step 2. Advise customers of your up front rent and security deposit requirements and other important facts regarding the rental that may help disqualify the prospect.

I suggest you make a list or prospect card of questions to ask and have it handy while you conduct your first contact interview. For example:

Name: Phone:

Reason for Moving: # of People:

# of children & Ages:              Occupancy Date:

Pets: Smoking:

Credit: Landlord Reference?

Please note that anyone who has a problem answering your questions (as long as you ask them politely), probably will not qualify for your rental. Serious customers want to make a good impression on you and should be happy to answer your questions. This process can save you and customers a lot of time and trouble.

STEP 2: Showing the Property

From landlords to real estate agents, we all have our own style in showing the rental. I think we all need to be aware of certain telltale signs to watch for while evaluating your prospective new tenants.

1. Appearance. Is the prospect neat and clean? Did he or she make an attempt to make a good impression? In most cases, an unkempt person keeps an unkempt lifestyle and home.

2. Car. Does the prospect have a nice car? Is it clean? Although we can’t judge people by their car, we should take note of it along with other details.

3. Attitude & Manners. Does this prospect behave respectfully? Does he or she show indications of being difficult to deal with in the future? Did the prospect wipe his or her feet when stepping into the house? Did the prospect walk into the rental while smoking? You can learn a lot about people even before speaking to them. Sometimes it helps to pay attention to details.

4. Criticizing the property. Are the prospects pointing out legitimate concerns, or are they trying to come up with items to negotiate price?

5. Yes or No? Can the prospect make the decision now or will they have to think about it? If they know now that they want your rental, did the prospect come ready to give you a deposit and fill out an application?

STEP 3: The Application Process

The first thing you need is a quality rental application. Let the applicant know that his or her application will be considered along with others, and you will notify the applicant once a decision is made. Advise the applicant(s) that it is very important to fill out the application as completely as possible. If you (and I recommend you do) run a credit report on the applicant, I suggest you be sure to collect a screening fee. This is a provision in the The LPA Rental Application.

Inform your prospective tenant that the application must be returned as soon as possible to avoid the risk of losing the rental to a competing prospect.

Review and verify the application thoroughly and look for inconsistencies and red flags. When you are satisfied, you will proceed to approving your new tenant in step 4.

STEP 4: The Approval Process

This is usually a fun part, but keep in mind that you are still screening the applicant while preparing him or her for the next step. I like to congratulate the applicant on being approved and let them know they came in 1st place. Also, let them know if you made any special concessions just for them, such as overlooking minor credit infractions, etc.

This process is also an opportunity for you to make sure the applicant can and will deliver. Set the time, date and place for your lease signing. Instruct the applicant(s) to bring the proper amounts of monies, identification (if you don’t already have it), and how you prefer to be paid. (Check*, money order or cash)

* Be sure to tell your new tenants that possession or keys will be given only after checks have cleared.

STEP 5: The Lease Signing

It is very important that you have a quality residential lease. You’d be surprised at how many people would just sign a lease without reading it! And I don’t just mean tenants! I believe it is crucial to read the entire lease with the tenants at a lease signing. It is your agreement with them. Shouldn’t you both know what is really being agreed to? As you read the terms of the lease with the tenants, you will be able to conduct your 5th and final step of screening. Does the tenant argue on every item? Is the late charge an issue? And so on.

Of course, if you are unhappy with how your prospect responds to you and/or your lease, you must not rent to this person. I believe: It is better to have NO tenant than it is to have the wrong tenant.

One of the most important elements of modern residential leases today is the Late Fee clause. In order to encourage timely rent and discourage late payments, I highly recommend you have a solid late charge clause. Having the clause in your lease is only part of protecting yourself against late rent.

The first step is to explain and warn the tenant about the late fee when going over the lease before signing it. I’ll even ask the tenant not to sign the lease if they think that late payments are in their future. I also inform the tenants that I belong to a national tenant reporting bureau and have the power to adversely affect the tenant’s credit, so.. “Don’t mess up with your rent. It’s not worth it.” If the tenant values his credit and plans on buying a home someday, I remind them that it is very important to prioritize the rent payment and keep their credit clean.

How much should the late fee be? I feel late charges should hurt. I don’t want to make it so high that a struggling good tenant will fall even further behind, but it should be a painful enough fee that the tenant will not want to pay again. Ever.

Many tenants who incur a late fee don’t really mind paying it in their own good time. That’s why it is important to also charge a Daily Late Charge in addition to the initial late fee. It gives the tenant an incentive to hurry up and pay the initial late fee before it grows into an even more painful hit.

Another item we include in our Late Charge clause is a Bounced Check Penalty. I usually make the bounced check charge the same as the inital late fee. I also prepare the tenant that if the rent check bounces, it will cause the rent to be late and they will be responsible for a late charge too.

I want to stress to you that the landlord protection clauses in our lease or any other lease are there to protect you, but sometimes you will have to enforce the lease. Many landlords are afraid to lose their friendly relationship with the tenants when it comes to enforcing the lease. Remember that this is your money we are talking about. This is your property they are occupying and you deserve to have a tenant who lives up to his or her agreement with you. Send the late fee notices and make the tenants pay the penalties. You have your own bills and you want your rent to be on time. That’s why you rented to them. – John Nuzzolese

About the author

As a Real Estate broker / investor in New York, John Nuzzolese has been

involved with rentals and investment property since 1979. Besides owning and operating two real estate businesses, he is president and founder of

The Landlord Protection Agency, Inc., an organization specializing in helping landlords and property managers avoid the hurdles and pitfalls and expensiveblunders common when dealing with tenants.

More information on the Landlord Protection Agency is available at www.theLPA.com