vacancy Archives - Page 2 of 4 - RentWise Property Management

Assistance Animal Documentation

January 22, 2020

Are you concerned about a potential or current tenant giving you false assistance animal documentation? Yes, we were to for a while. The number of letters and notes we have received over the years from both legitimate and not so legitimate sources has skyrocketed in the last few years.

How can you know when an assistance animal letter is truly legitimate?

Well, thanks to a recent investigation led by HUD with the help of NARPM members and several lobbyists in our industry, websites that sell assistance animal documentation are under a microscope. While there is no “quick fix” to this epidemic of false documentation it certainly helps to weed out a tremendous amount of potentially false documents that can be purchased across the internet leaving property managers to sift through the legitimacy of the documentation while also being able to identify a tenant with a true need for an assistance animal.

What can you do to protect your investment?

Here is a list of items you can request from a current or potential tenant when it comes to assistance animals and/or pets.

Letter from a medical professional or a person in a position to know, dated within the last 12 months.
Verification that the animal is current on all shots/vaccinations.
Verification that the animal is licensed in accordance with city or state law.
You can ask; what service does the animal perform? (It is illegal to ask what the persons disability is.)

Here at RentWise, we use a third-party screening company called petscreening.com to verify assistance animals and/or pets. They gather all the proper documentation and ask the questions allowed by the ADA. It is a free service for anyone who has an assistance animal and a minimal cost to anyone who has pets.

If you are interested in reading more about this investigation we have provided the press release link below.

https://www.hud.gov/press/press_releases_media_advisories/HUD_No_19_162

Would you like to learn more about our services and how owning a rental property can be LESS HASSLE, MORE HAPPY? Visit our website at www.RentWisePM.com or call us at 208-949-3083.

Why is my property manager sending me a 1099?

January 15, 2020

Why is my property manager sending me a 1099 form? This is a question we get from time to time and while not everyone agrees on the same answer it is, in fact, a necessary evil. At least for now.

Rental income reporting.

We know that no one really likes “tax time” and certainly not having to claim more income than they have to because it means owing the IRS more at times. Even so, it is income that must be reported somehow, to someone right? Oh, we wish it was that simple too but in the years spanning from 2010 and 2012, the verbiage used by Congress has made this issue even more controversial. Owning a rental property is considered a business in the eyes of the IRS. Or is it? This is the line that has yet to 100% be defined by Congress.

What is a 1099 MISC form?

To report rental income we provide our clients with a 1099 MISC form provided by the IRS. The purpose of this form is to report any rental income in excess of $600 in a year. However, it is still up for debate whether owning a rental is considered a “business” because owning a business implies that you are doing something for profit. What if this has no profit just yet? Well, there lays the gray line. Forbes published a great article written by a nationally recognized tax professional that explains in-depth the confusion behind the argument about reporting rental income. You can read the full article here.

In the end, we, as a business are required to report the rental income we collect on a client’s behalf. We recommend talking with your accountant about how this form is used.

Have questions about our services or want to learn more about how to own an investment with LESS HASSLE. MORE HAPPY? Visit our website at www.RentWisePM.com or give us a call at 208-949-3083.

What is a Reasonable Accommodation Request

January 8, 2020

What is a reasonable accommodation request? By definition, under the Fair Housing Act, the housing provider is responsible for the costs associated with a reasonable accommodation unless it is an undue financial and administrative burden, while the tenant or someone acting on the tenant’s behalf, is responsible for costs associated with a reasonable modification.

What does this mean for you as an investor?

It means that to be in compliance with ADA we must consider any and all requests for modifications or accommodations to a premises that a tenant makes either before or during their tenancy. Such as a ramp, safety bars, change in administrative accommodations or other physical modifications to a property.

Who pays for the modification?

This depends on the request. Typically a homeowner would pay for a physical modification UNLESS it would be deemed an undue financial burden. For example: A disabled applicant in a wheelchair wants to rent a particular home due to it’s location to his medical providers, he will need ramps installed at least one doorway for access to the home. The owner of the property would be responsible for that cost. Another example, a current tenant had a medical issue during tenancy that requires additional support rails installed in the bathroom.

What do you do if you receive a request for a reasonable accommodation or modification?

This answer is not just black or white. There are several factors to be considered and each request needs to be reviewed carefully. Our recommendation is to speak with either your attorney or your property manager. You can review more information and guidelines on this by clicking here.

If you are interested in learning more about our services. Please visit our website at www.RentWisePM.com. Ready to start living with LESS HASSLE? MORE HAPPY! give us a call today 208-949-3083

Q3 Vacancy Report – NARPM Southwest Idaho

December 4, 2019

The NARPM Southwest Idaho Chapter conducts a vacancy survey each quarter by collecting data from local property management companies throughout the Treasure Valley including Ada and Canyon County. The data collected reveals the trends and current state of the local rental market so you can make an educated decision about your investments!

Wondering whether Idaho is the best place to purchase an investment property?

This report shows the vacancy data for nearly 9000 “doors” in the Treasure Valley. Our valley is one of the most desirable places to not only live but INVEST in! In the almost 8 years that RentWise has been managing investment properties, the Q3 data is the lowest we have seen! What does that mean to you? It means owning a rental property in Idaho is ideal for any investor. We have a large need for affordable and available housing at an ROI that fits most pocketbooks. You can read the full report by clicking here. Q3 2019 Vacancy Report

	Unit Managed	Number of Vacancies	Vacancy Rate
Ada	6335	97	1.53%
Multiple	4352	53	1.22%
Single	1983	44	2.22%
Canyon	2508	50	1.99%
Multiple	1939	39	2.01%
Single	569	11	1.93%
Grand Total	8843	147	1.66%

What is NARPM?

The National Association of Residential Property Managers (NARPM®) is an association of real estate professionals who know first-hand the unique problems and challenges of managing single-family and small residential properties. They provide members with the education, classes, information, support, networks, and growth they need to succeed in the property management industry.

Whether you choose to self manage or hire a professional property manager like RentWise, we recommend you either join yourself or hire a member of the NARPM. We would love the opportunity to discuss how we can help when it comes to managing your investment with the highest possible return.

Ready to start living with LESS HASSLE. MORE HAPPY? Reach out to us today, RentWise Property Management.

Knowing the Financials of your Rental Property

November 27, 2019

Are your financial statements for your rental property giving you what you need? One of our first questions to new potential clients is “what are your current pain points with your property manager?” One of the answers is always in regard to their monthly financial statements.

Do you have a clear picture of your property’s financials?

Knowing your properties financial health can seem overwhelming and tedious. Having the right KPI’s and property manager can help. From income to expenses, monthly, annual, balance sheets and 1099’s. There is a lot to track when it comes to owning an investment property.

It is important that they are easy to read, consistent and that you have a property manager available to discuss and answer any questions you might have.

How can your property manager customize your monthly statement so that it fits in line with your tracking system?

Maybe you want to track profit between properties? Or how much the market rent has increased? There are several monthly reports we can provide, such as:

Account Totals
Balance Sheet
Balance Sheet – Comparative
Balance Sheet – Property Comparison
Bank Account Activity
Bank Account Association
Cash Flow
Cash Flow – 12 Month
Cash Flow – Property Comparison
Cash Flow Detail
Chart of Accounts
Expense Distribution
General Ledger
Income Statement
Income Statement – 12 Month
Income Statement – Comparative
Income Statement – Property Comparison
Trial Balance
Trust Account Balance
Trust Account Detail

Monthly statements should be the snapshot of how your investment property is doing, how your money is being spent and how profitable the rental property is.

If you would like more information on how we can help or learn about our property management services just go to our website or call us at 208-949-3083. Less Hassle. More Happy.

How does your property manager handle maintenance?

November 20, 2019

What happens when your property manager gets a maintenance call at 5:00 PM on a Friday afternoon on a holiday weekend from a tenant that has no hot water! We handle it. With the help of some amazing vendors of course. In this case, the water needs replacing.

Typically, the next call is to the homeowner with the quote to replace that hot water heater. His reply…..”I can purchase a hot water heater at the big box store for $700.00 … why is it so much more than that?”

Property Maintenance is usually by far the top pain point for owners with their property managers.

This question piqued our interest, so we started calling around to different companies and plumbers to see what they charge & if our client is really getting the best bang for their buck.

What did we find when it came to replacing a water heater?

We called 3 well known Treasure Valley HVAC companies and they provided verbal estimates to replace a 40-gallon hot water heater. These prices ranged from $1300 – $1500.00.

All 3 Treasure Valley vendors were all using a plumber’s grade Hot Water Heaters and all 3 include new drain pan, flex piping, expansion tank and disposal of the old unit.

During these calls, we developed a wealth of understanding of hot water heaters.

There are many differences between a plumber’s grade hot water heaters and a box store graded water heater. The plumber’s grade offers better efficiency and is made with better materials that offer a longer life span. A plumber’s grade hot water heater will typically last between 12 – 14 years and the box store one typically lasts 8-10 years. A typical warranty for the plumber’s grade is 2 years standard and then you can purchase additional plans that extend the warranty up to 10 years. A box store warranty is about 6 years, but it is a limited warranty and the items that usually break are not covered so you have to purchase the part and pay labor rates.

So not completely satisfied with that information, I reached out for a few other options outside of an HVAC company:

One plumbing company will come out and install a hot water heater for $450.00; however, they will not pick up or dispose of the old one. This means I would have to arrange for the water heater to be delivered to the property and then picked up once it has been replaced.
One box store will install a water heater through a contracted plumber. However, there is a $45 consult fee and a basic install starts at around $239; the turnaround time is 7 – 10 days which is not feasible in an occupied rental in Idaho.

So how does a big box store compare to a local HVAC company?

So, let’s just put some prices together if we had the plumber install the hot water heater. I go to the big box store, and I purchase the hot water heater for $700.00

What else do I need:

Expansion Tank – $30

Flex Piping – $30

Drain Pan – $30

Plumber to Install – $450

Handyman to dispose of old hot water heater $90

Disposal Costs – $100

Permit – $55

That all totals $1490

Did you know a permit is required in the state of Idaho for water heaters to be installed?

Ada County and costs $55
Canyon County it is $40

An expansion tank, new flex pipe/fittings and a new drain pan are required in the state of Idaho if not already present or damaged which costs roughly around $100.

Our HVAC vendor installed a plumber’s grade 40-gallon hot water heater with all parts, materials, permits, disposal, and labor (including the initial work order for the diagnosis) for $1390.00. (this is not a set price, just an example and varies depending on materials needed) Plus, we know that we used a trusted, locally owned company that has been in business for 30+ years and they will continue to be around if any issues arise.

At RentWise Property Management, we promise that we make every effort to act in our client’s best interest in every front.

Interested in learning more about our services and how we can provide you with this type of service? RentWise Property Management. Less Hassle. More Happy.