What do tenants want in a rental property?

They want a clean space with nice amenities and working utilities. Taking care of your rental property is one way to ensure your tenants stay satisfied.

How do you treat tenants?

It's important to treat all tenants equally, showing no favoritism or disdain for select tenants. You should also treat them fairly and without personal bias.

How do I find good tenants?

Here are some tips on how to find good tenants: Come up with a rental criteria, list your property online, pay attention at property showings, and conduct background, credit, rental history, and employment checks.

Can landlords deny tenants?

It's essential to maintain the utmost professionalism when finding and screening tenants. Making decisions based on personal biases or reasons can put you in legal trouble. There are many reasons to deny renting tenants, such as: Monthly income can't cover rent and deposits, incomplete rental application, doesn't authorize background, credit, or rental history checks, fails to provide you with proof of income or employment, gives you fake references, has a history of late rent payments or damaging rental properties, etc.

What are the super lien states?

In addition to the District of Columbia, there are currently a total of 21 states in the country that can give HOA liens the status of a super lien. HOA super lien states are as follows: Alabama, Alaska, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and West Virginia.

Condo Manager Resources Archives - Page 3 of 3

How To Find And Keep Good Rental Tenants

admin on November 21, 2017

There is more to finding rental tenants than simply posting an ad online. If you want to find and keep good tenants, you need to follow a system and understand certain laws.

How to Find Quality Rental Tenants

Rental property owners are always on the lookout for high-quality tenants. Ideally, all renters would be upright citizens with outstanding rental histories and credit scores. Unfortunately, the reality is far from that. Here are some tips on how to find good tenants:

1. Come Up With a Rental Criteria

How do I choose a prospective tenant? The first thing you must do is set the right criteria. When crafting this, make sure to consider everything you are looking for in a tenant. If you don’t know where to start, it’s a good idea to think about what other landlords want in a tenant.

What do most landlords look for in tenants? Typically, landlords want tenants who can afford rent and pay it on time. Tenants should also be amiable and have no attitude problems. You should also take into account certain policies you have.

For instance, if you have a no-pets policy, then your prospective tenant obviously shouldn’t own a pet or is willing not to bring theirs into the property.

2. List Your Property Online

The best way to find tenants for rental property is to post an online listing. In fact, 75 percent of renters begin their search for a new residence online.

There’s just no denying it — you can reach a wider market by marketing your rental property through online avenues.

Of course, there’s also an art to creating an online listing for your rental property. When learning how to list a house for rent, start with a compelling title. This usually includes what potential renters can expect from your property. Include the price, number of beds, number of baths, the type of property, and the location. For example: $1,000/mo – 2 BR / 1 BT Apartment in Woodbury.

Describe the property in a paragraph and use adjectives to make it alluring. Mention any extra features or added amenities such as a pool or a view of the city. Your ad should also set expectations, so make sure to bring up the rental application process and any special policies you have. Remind potential rental tenants that they will need to authorize background checks, credit checks, and the like.

3. Pay Attention at Property Showings

After you find tenants online, you will need to show the property to interested parties either in-person or virtually. This is a good chance to get a feel of the prospective tenant and gauge their behavior. It’s usually not a good sign if your tenant is rude or is late to the appointment (or doesn’t show up altogether).

Property showings also allow you to ask important questions such as:

Why are you moving?
When you do plan to move in?
Do you have pets?
Do you smoke?
Will you be living alone?

Tenant Screening 101: What to Check

The search for the perfect tenant doesn’t stop with a rental application. You should also obtain consent from your prospective tenant to conduct certain checks. If a tenant doesn’t consent, then that should be a red flag because it indicates that the person has something to hide. Make sure to check the following:

Income or Employment Status. You need proof that your prospective renter has the financial ability to pay rent. It’s ideal to find renters with a monthly income at least three times the amount you charge in rent. You can check their income through pay stubs or even call their employer directly to verify the details.
Credit Score. A credit report will allow you to determine the prospective tenant’s credit score. From that, you can surmise their income to debt ratio. You can have this done for a small fee.
Background. A background check will let you know whether a prospective renter has a criminal history.
Rental History. It’s also a good idea to contact the rental tenant’s previous landlords to find out about their past behavior. You can ask whether the tenant paid their rent on time, took care of the rental property, how they behaved, etc.

Know Your Federal and State Laws

As a landlord, you should familiarize yourself with the many laws that affect your dealings. This includes laws on a federal, state, and local level.

Fair Housing Act

This federal act ensures that all landlords treat all tenants fairly. It was written to prevent housing discrimination against certain classes of people. The act states that you can’t discriminate against tenants based on their race or color, national origin, sex, religion, familial status, and/or disability.

Several states also have their own fair housing rules that landlords must follow. For instance, in California, you can’t discriminate against tenants with certain criminal records. It’s important to check the laws in your state to prevent getting into legal trouble.

Landlord-Tenant Law

The landlord-tenant law states the rights and obligations of landlords and tenants. It outlines certain rules about lease agreements and security deposits, too. As a landlord, you should acquaint yourself with the landlord-tenant law so that you don’t accidentally violate the rights of your tenant.

What are the rights of a tenant? Tenants have a right to the following:

Quiet enjoyment of their home
Livable conditions
A lead-free home
A certain level of privacy

Reasons to Deny Tenants

It’s essential to maintain the utmost professionalism when finding and screening tenants. Making decisions based on personal biases or reasons can put you in legal trouble. There are many reasons to deny renting tenants, such as:

Monthly income can’t cover rent and deposits
Incomplete rental application
Doesn’t authorize background, credit, or rental history checks
Fails to provide you with proof of income or employment
Gives you fake references
Has a history of late rent payments
Has a history of damaging rental properties

How to Keep Good Rental Tenants

Quality tenants are hard to find, so when you finally land one, you should do your best to keep them around. Making good tenants renew their lease agreements is much simpler than you might think, though.

How do I keep my tenants happy?

Take Care of the Property. What do tenants want in a rental property? They want a clean space with nice amenities and working utilities. Taking care of your rental property is one way to ensure your tenants stay satisfied.
Treat Tenants Equally and Fairly. How do you treat tenants? It’s important to treat all tenants equally, showing no favoritism or disdain for select tenants. You should also treat them fairly and without personal bias.
Cultivate a Relationship Based on Respect. Respect is a vital ingredient in any healthy relationship, including one between landlords and tenants. When you respect your tenant (and they respect you), they’re more likely to keep renewing their lease.
Respond. A responsive landlord is something a lot of renters look for. Make yourself reasonably available to your tenants for any concerns they may have. Consider having a dedicated line for emergencies, too.
Offer Renewal Incentives. Everyone loves discounts and freebies. Think about providing your tenants with a discounted month if they choose to renew with you for another term.

The Role of HOAs and COAs

Many HOAs and COAs restrict owners from renting out their property. Association members might think this is infringing on their rights. But, provided the HOA or COA board is acting within the law and its power, it can absolutely restrict rentals.

Some HOAs and COAs may allow rentals, but they typically have rules and regulations to keep them in check. Both HOAs and COAs, though, must also follow federal and state housing laws. That means an association can’t specify the type of tenant property owners can and can’t rent to. Fair Housing laws still apply.

It Pays Off

Finding quality rental tenants takes work, but it’s definitely worth the time and effort. When you leave the process up to chance, you can get stuck with a bad tenant who never pays rent on time, causes damage to your rental property, and disrupts the neighborhood.

Managing a property or HOA community can be difficult without the right tools. Contact Condo Manager today for expert solutions designed for HOA management companies and self-managed HOAs. Call us at (800) 626-1267 or reach out to us online for a free demo.

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Should You Be Aware Of An HOA Super Lien?

admin on October 16, 2013

Many homeowners know that homeowners associations can place a lien on your property. But, did you also know that some associations, depending on the state, can place an HOA super lien instead?

What Is an HOA Super Lien?

Simply put, an HOA super lien is a type of lien that takes a higher priority than all other lien types. A lien automatically attaches to a property when the owner has failed to pay the monthly fees or assessments to their homeowners association. A super lien takes a much higher priority and operates similarly to a property tax lien.

To better comprehend the nature of super liens and how they work, though, you must first understand lien priority.

Breaking Down the Priority of Liens

When you buy a house, you take out the first mortgage. This mortgage, recorded first, serves as the first lien on your property. Sometimes, you may need to take out a second mortgage on your home. This mortgage is then recorded second, turning into the second lien. Whether or not a lien is first or second depends on the date the lien was recorded. As such, priority follows the recording date.

The priority of a lien decides which lien holders receive payment first following a foreclosure sale. Most of the time, the first mortgage holder gets all of the sale’s proceeds, leaving little to nothing for second or third lien holders, also known as junior lien holders.

In the context of a homeowners association, liens can be used as a form of covenant enforcement. Homeowners who default on their monthly dues or special assessments will see an HOA lien automatically placed on their property. The lien’s recording date typically follows the date the association’s CC&Rs were recorded or the fees’ due date. The HOA can then later foreclose on this lien.

Unfortunately, HOA liens usually take a lower priority than first and second mortgages, even if the mortgage was recorded after the HOA lien. Many associations have such stipulations written in their governing documents. Some states also deem mortgage liens as superior to HOA liens.

A super lien, though, overrides all of that. In states that allow them, super-priority liens take a higher ranking over all other liens. That includes first and second mortgage holders. Super liens apply to the part of an HOA lien that holds superiority over other lien holders. In such a case, the association’s interest takes priority.

The Case for HOA Super Liens

Some say an HOA super lien is unnecessary and harsh for homeowners. But, in reality, they help protect the value and desirability of a community. When homeowners fail to pay dues, the community can suffer maintenance issues and start to decline.

Super liens make sure homeowners associations receive the right amount of dues to maintain their neighborhood. Any late notice or insufficient funds are important and need to be paid. This helps keep the community’s worth high and acceptable for all other homeowners in the association.

When Does an HOA Lien Become an HOA Super Lien?

Whether or not your association can attach super liens depends on your location. In addition to the District of Columbia, there are currently a total of 21 states in the country that can give HOA liens the status of a super lien. HOA super lien states are as follows:

Alabama
Alaska
Colorado
Connecticut
Delaware
Florida
Hawaii
Illinois
Maryland
Massachusetts
Minnesota
Missouri
Nevada
New Hampshire
New Jersey
Oregon
Pennsylvania
Rhode Island
Vermont
Washington
West Virginia

These states have differing laws, though, when it comes to how an HOA lien becomes a super lien. In some states, a regular lien can attain super lien status after a fixed number of months of delinquent dues and assessments. For instance, in Colorado, it is six months, while in Nevada, it is nine months. You can learn more about super lien states and their individual laws regarding super liens here.

Foreclosing on HOA Super Liens

When a property has a super lien, an association can initiate HOA lien foreclosure. Once the lien enters into foreclosure brought on by the HOA, it could remove the first mortgage.

Because of this, most lenders will usually settle the super lien to put a stop to the foreclosure and, thus, retain their place as the first lien holder.

Lenders will not just let the super lien amount go, though. Typically, they will add the amount to the homeowner’s (i.e. borrower) total mortgage debt. They will ask the borrower to reimburse them for the amount paid. If the borrower refuses or fails to do so, the lender may then initiate foreclosure.

What If the First Mortgage Holder Forecloses?

In some cases, the lender or first mortgage holder will foreclose on a property if the owner or borrower stops delivering mortgage payments. When that happens, what will become of the homeowners association lien?

For Regular HOA Liens

As mentioned above, first mortgage liens generally take priority over HOA liens. Therefore, when a mortgage holder forecloses on the property with an HOA lien attached, the HOA will not get anything.

It is important to check your own CC&Rs and state laws regulating the priority and nature of liens in your homeowners association. This way, you have a clear understanding of how your liens work and can set the proper expectations. When in doubt, it is always a good idea to consult with a foreclosure attorney with experience handling HOA cases.

For HOA Super Liens

As you may know by now, HOA super liens have more pull. Therefore, if the first mortgage holder forecloses in a state that allows HOA super liens, the association gets paid first. The amount the HOA receives depends on state laws, but it is usually a specific number of months’ worth of delinquent dues or assessments.

Moral of the Story

Homeowners have an obligation to pay their dues on time and in full. Liens and foreclosures are only two of the possible consequences you might face when you default on your payments. To avoid suffering these repercussions, it is best to stay up-to-date on all your dues payments and leave no room for error.

Collecting and paying dues and assessments can become a headache when done manually. Allow for easy dues collection and payment online with the help of Condo Manager’s software. Call us today at (800) 626-1267 or reach out to us online for a free demo.

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HOA Candidate Nomination: What’s The Process?

admin on October 16, 2013

Behind every homeowners association is a set of board members, collectively known as the HOA board, running it. These board members are elected into position by the association’s members. With every board election, though, comes HOA candidate nomination.

Determining the HOA Candidate Nomination Procedure

It is important to know that every homeowners association may have different guidelines when it comes to the nomination process. State laws and an association’s governing documents usually dictate how candidate nominations should go. Thus, it is best to refer to your HOA bylaws to learn the exact details of your association’s election rules.

Typically, the nomination procedure will lay down how members can nominate candidates, what qualifications are needed in a candidate, and the general steps that the association must follow. The HOA board will normally start with a call for candidates. This is to invite members to send in their nominations through an HOA board nomination form. The board will also need to send a general notice to all members containing the nomination procedure as well as the deadline for nomination submissions.

Some associations might require candidates to write a letter of intent to run for the HOA board, while others may not. This letter simply confirms a candidate’s interest in running for the position. In most cases, candidates will also need to submit an HOA board of directors candidate statement. This statement consists of the HOA board candidate bio and how the candidate believes they can contribute to the community.

If you need board candidate statement examples, here is one:

Download Your Sample HOA Board Candidate Statement Here

Candidate Qualifications

Who is qualified to run for the HOA board? It depends on the association. Your HOA bylaws should have explicit qualifications for candidacy. Generally, though, for candidates to qualify, they must first be a member of the association. This means the candidate must own a separate interest within the HOA at the time they are nominated. This is a mandatory qualification.

Another common qualification is that the candidate must be current on all payments, including dues, assessments, and applicable fines. If an association places such a qualification on a nominee, though, it should also expect as much from current board members. That means no existing board members should be behind on payments.

Some states, such as California, go into further detail about what kind of qualifications are allowed. For instance, a nominee may be behind on payments but has enrolled in a payment plan with the association. In this case, the board may not disqualify the candidate from running.

Apart from qualifications, associations may also have grounds to disqualify candidates. California law, for instance, allows associations to disqualify a member from running if, when elected, that member would be serving with another board member who owns the same separate interest. The same law allows disqualifications if the candidate has only been a member for less than one year or if the candidate has a past criminal conviction. You may also disqualify a member if they miss the deadline for nomination submissions.

If your association intends to disqualify a member for whatever reason, though, you must allow the member to engage in an Internal Dispute Resolution with the HOA. Associations may not disqualify members without conducting this first.

Methods for HOA Nomination of Candidates

There are a handful of ways members can nominate candidates for the HOA board election, namely self-nomination, floor nomination, and write-in candidates.

Again, the specific methods for HOA candidate nomination should be written in your governing documents. This includes whether or not your association allows certain nomination procedures, such as write-ins and floor nominations.

Self-Nomination

Many associations allow members to nominate themselves to run for a position on the board. Although an HOA may disqualify a member from running with justifiable cause, it may not take away a member’s right to self-nominate.

If you intend to nominate yourself, you must answer the board’s call for candidates. Usually, this means submitting an application form or a letter of interest to the board prior to the deadline. Your HOA may have a specific format for such a form or letter, so it is best to check with your board first. Some boards will include a copy of the application form or letter with the general notice, while others have it up on their HOA website for easy access.

Here is a sample letter of interest for an HOA board position:

Download Your Sample Letter of Interest for HOA Board Position Here

Floor Nomination

Floor nominations are typically not required of homeowners associations unless its governing documents say so. The procedure for floor nominations is simple. After the association meets a quorum, the board president will open the floor for HOA candidate nominations.

Members may then nominate individuals who meet the candidate qualifications. The validity of the nomination persists even if the board president fails to recognize it. Additionally, members need not second the nomination.

During floor nominations, members can nominate other members or even themselves, though there is a limit on how many nominations each member can make. Moreover, the nominated members also do not need to be present at the meeting. It is worth noting that those who have already sent their ballots through the mail may not vote for floor nominees.

Write-In Candidates

If your association’s governing documents permit write-in candidates, then you must allow members to do so. But, if your governing documents say no such thing, then you can eliminate write-ins altogether. In that case, if members do write candidates in on their ballots, the association or election inspector can disregard the write-in votes. Any other votes that were not written in remain valid.

You may wonder about the verification process for write-in candidates. If your association permits write-ins, then you must consider these write-ins even if no previous nomination took place. Should the write-in candidate accumulate the votes necessary to secure a position on the board, you must then contact the candidate and confirm if they want to accept the nomination.

It is essential to make it clear in your governing documents whether or not to allow write-ins (and even floor nominations). Consider amending your governing documents if ambiguity remains.

Closing Nominations

Either your association’s governing documents or your HOA board will set a deadline for nominations. In the case of floor nominations, the HOA board may close nominations for the duration of ballot preparation and mailing. Once the annual meeting takes place, the board can then reopen floor nominations.

The Final Review

Prior to distributing the ballots, the association must finalize its list of candidates and disseminate it to the candidates. The timing can vary depending on the location or the HOA’s governing documents.

For instance, in California, the association must make this list available at least 30 days before distributing the ballots.

The association must allow its candidates to review this HOA candidate information sheet. For any errors spotted, the inspector of elections must make the necessary changes to correct the inaccurate information. The inspector must make this correction within two business days of any reported errors.

Make Election Season a Breeze

It is imperative for every association to know and practice its HOA candidate nomination procedure properly. This will ensure a smooth nomination and election process, thus, avoiding wasting time and money. Always check your governing documents and state laws for any provisions relating to candidate nominations. When in doubt, consult with an HOA attorney.

Condo Manager can make the election season easier for homeowners associations everywhere. Our software can track homeowner information, print customized ballots, and send notices with the click of a button. Contact us today at (800) 626-1267 to learn more or fill out an online form for a free demo.

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