American Heritage Property Management

How Much Should You Charge for a Security Deposit?

Fri, 13 Mar 2026 17:19:19 GMT

A security deposit is a helpful protective measure to act as insurance and encourage both sides to uphold their end of the lease agreement. It can also be a useful marketing tool, as charging a competitive rate could help you stand out to potential renters. But, how much should you charge for a security deposit, and why? Here’s a closer look.

How Much Is a Security Deposit Usually?

A standard security deposit for a single-family detached home is often higher than for a larger building with multiple units. Similarly, rates vary between states, cities, levels of furnishing, and even individual tenants. How much to charge for a security deposit depends on multiple case-specific factors.

What Determines Security Deposit Amounts?

A typical security deposit is based on the unit’s monthly rent, with a few other considerations in mind. Here are some common factors to weigh when determining a fair and competitive security deposit.

Rent

Rent is the biggest determinant of how much a security deposit is, so determining an appropriate rental price before calculating the deposit amount is crucial. A typical security deposit is often equal to one month’s rent, but this amount can vary based on local laws, property type or specific lease arrangements.

Local Laws

State and local laws may also set limits on how much you can charge. For example, Pennsylvania allows you to collect up to two months’ rent in the first year or one month’s worth in subsequent years. Some states may also have varying regulations for different rental situations, so always check applicable legal requirements before setting anything.

Property Type and Amenities

The kind of property or unit you’re renting out may also impact how much to charge for a security deposit. Generally speaking, the smaller the number of overall residents or the more furnishings you provide, the higher the deposit tenants can expect. Risk-related factors like pets can influence things, too, as you may add a one-time pet fee to your agreement if you don’t want to add another monthly charge.

Nearby Competition

Finally, you can look at various properties around the area to determine your security deposit amount. Setting the rate too high above nearby competitors may drive potential tenants away, but offering a lower one could help you stand out.

How to Calculate a Security Deposit

With all of these factors in mind, here’s how you can calculate a security deposit:

Review local legal requirements.
Compare your property to nearby competitors.
Determine your monthly rent.
Consider if your amenities or furnishings require more protection.
Adjust the figure as necessary to reflect these considerations.
Get an expert to review the final number.

Let AHPM Help You With Your Security Deposit

If you need help knowing how much to charge for your security deposit or setting other lease terms, American Heritage Property Management is here to help. We have more than 40 years of experience managing these considerations and have over 2,600 units under our umbrella, so we have firsthand expertise in handling all manner of rental situations.

You can contact us online or call us at 877-931-7368 today to get started.

Property Management vs. Self-Management: What Every Rental Owner Should Know

Fri, 13 Mar 2026 15:52:47 GMT

As a rental property owner, especially if you’re scaling to multiple units or living out of the area, you’ve likely asked yourself whether you should hire a property manager.

Deciding between self-managing a rental property and partnering with a professional property management company is more than just a cost comparison. It’s a decision about your time, your legal risk, your stress levels and, ultimately, your investment returns.

At American Heritage Property Management, we help landlords and real estate investors understand the real implications of self-management vs. property management so they can choose the path that fits their goals and lifestyle. Here’s a clear look at the pros and cons of property management and how to decide what’s best for you.

Self Property Management

Many DIY landlords start out managing their own rentals. After all, it seems simple — list the unit, collect rent and handle a repair when it pops up. However, anyone who has actually done it knows there is more beneath the surface.

Time Is More Than Money

When you self-manage, you’re on call for maintenance calls at midnight, lease questions on weekends and emergency repairs whenever they arise. Time spent coordinating vendors, advertising your vacancy, screening tenants and processing leases can easily add up to hours each week. If you own multiple properties, it often becomes a full-time commitment.

Legal Risk and Compliance

Rental laws are complex and change frequently. From security deposits and lease requirements to eviction procedures, missing a step could cost you in legal fees or fines. Without a deep understanding of landlord-tenant law, self-management increases your risk of costly mistakes.

Hidden Costs of DIY

Self property management might seem cheaper at first because you’re not paying a management fee, but there are hidden costs. Expenses may include vacancy losses when you don’t market effectively, higher maintenance costs from poor vendor negotiation and bad tenants who weren’t thoroughly screened.

Take the time required, multiply it by the number of properties you own and ask yourself if that is the most efficient use of your time. This is the real question behind property management vs. self-management.

Benefits of Hiring a Property Manager

Partnering with a full-service property management company like American Heritage Property Management means more than just handing off headaches. It means investing in systems and expertise designed to maximize your return on investment (ROI).

Marketing and Tenant Placement

When your property has a vacancy, we use strategic marketing and automatic syndication to major rental platforms so your unit gets maximum exposure. That means faster tenant placement and lower vacancy rates.

Rigorous Screening Equals Better Tenants

The right tenant can make or break your investment. Professional managers conduct detailed credit checks, employment and income verification, criminal background screening and reference validation. This level of scrutiny helps protect your rental income and minimizes future issues.

24/7 Maintenance and Repairs

From emergency plumbing to scheduled upkeep, professional property managers coordinate maintenance efficiently, often leveraging established vendor relationships to control costs. We even offer 24/7 emergency maintenance, helping preserve your property and keep your tenants happy.

Legal Compliance and Evictions

Navigating evictions and complex legal requirements is one of the biggest pain points for DIY landlords. A professional property manager handles all lease enforcement and eviction proceedings — reducing your legal exposure and stress.

Is a Property Manager Worth It?

Do you need a property management company? The simple answer is that it depends on your goals.

If you’re scaling beyond one property, living far from your rentals or simply tired of handling every tenant request or maintenance call, then outsourcing makes financial and psychological sense.

When you factor in reduced vacancies, better tenant retention, efficient maintenance coordination and compliance safeguards, the ROI often outweighs the DIY property management approach.

When Should You Hire a Property Manager?

Here are a few clear indicators that it’s time to consider professional support:

You’re handling multiple properties and can’t keep up with demands.
You’re not near your rentals and can’t respond quickly to issues.
You want to improve tenant quality and reduce vacancy time.
You want reliable financial reporting and legal protection.

Why Choose American Heritage Property Management?

With over four decades of experience, low vacancy rates and a full suite of services ranging from marketing and tenant screening to maintenance and financial reporting, we take the stress out of property ownership.

We treat your investment like our own, helping you make informed decisions, protect your assets and grow your real estate business.

Get in Touch With Us to Get Started

Whether you’re weighing property management vs. self-management for the first time or considering outsourcing after years of DIY, we’re here to help. Contact us today to request a consultation or get a property management quote. Your property deserves expert care. Let’s talk about how we can take the stress and guesswork out of managing your rentals.

What You Need to Know About Subletting

Mon, 29 Dec 2025 13:48:00 GMT

Subletting can offer flexibility for tenants who need to move temporarily and stability for landlords who want to avoid vacancies. However, understanding subletting rules and regulations is essential to avoid legal or financial problems.

This guide explains what you need to know about subletting safely and legally in Pennsylvania, whether you're a renter considering a short-term move or a property owner determining how to handle subleasing requests.

What Is Subletting?

Subletting allows a tenant to rent out all or part of their rental unit to another occupant, known as a subtenant. This arrangement must always have landlord approval and be documented through a written sublease agreement.

You may also hear the terms 'sublease' vs. ‘sublet’. They refer to the same thing and are often used interchangeably. However, there is a difference between a sublease and a lease. Since the original tenant signed the lease with the landlord, they remain responsible for rental payments and property condition throughout any sublease period.

While subletting can be a great solution for temporary moves, both tenants and landlords must navigate it carefully to avoid legal and financial risks.

What Is a Sublease Agreement?

A sublease agreement is a written contract between the current tenant (the sublandlord ) and the subtenant (the subletter ). It spells out the subtenant’s obligations and the rules they must follow during the sublet period. Like any lease, it should be detailed and specific.

Things to include in a written sublease agreement :

Responsibilities: Clearly define what each party is responsible for during the sublet period, including rent payments, damages, and any behavior (or failure to act) that could lead to fees, penalties, or eviction.
Term: State the exact sublease timeframe using specific start and end dates.
Policies: Outline the rules the subtenant must follow, including maintenance procedures, utility responsibilities, and restrictions (e.g., pets, additional subletting, or running a business from the home).
Prerequisites: Note any required security deposit and/or renter’s insurance, including deposit amounts, minimum coverage, and acceptable policy types.
Master lease: Attach a copy of the original (master) lease. Unless the sublease states otherwise, the master lease terms should apply to the sublandlord and the subtenant.

Once you’ve written out a thorough agreement, have a lawyer or property management team review it to ensure you’re fully covered in any situation.

Is Subletting Legal in Pennsylvania?

There are no specific subletting laws in Pennsylvania, so the original lease agreement is the governing document. Most leases include a clause requiring landlord consent before subletting. Ignoring that clause or subletting without landlord permission can lead to serious illegal subletting consequences, including eviction, financial penalties, and legal disputes.

To stay within the law, always review your lease, obtain written approval, and confirm that all subletting terms comply with your landlord's policy.

Pros and Cons of Subletting

When done correctly, subletting can be beneficial to both landlords and tenants. It provides flexibility for tenants who need to relocate temporarily for work, family-related reasons or unforeseen circumstances, while landlords continue receiving steady rental income and avoid long vacancy periods.

However, it also carries certain drawbacks. There's the potential for property damage, unpaid rent or disputes if the subtenant fails to uphold their responsibilities. Clear communication, detailed documentation and formal landlord approval are essential to reduce the risks of subletting and keep the arrangement running smoothly for everyone involved.

How to Sublet an Apartment

If you're a tenant considering a sublet, use this subletting checklist as a guide to help protect the rental property:

Review your lease: Look for any subletting restrictions or approval requirements.
Obtain written permission: Always request formal consent from the landlord before listing or subleasing.
Screen your subtenant: Since you remain responsible for rent and damages, be sure to conduct a thorough subtenant background check .
Create a formal contract: Use a sublease agreement template to outline terms, rent and responsibilities. Collect a security deposit for subletting to safeguard against damages or unpaid rent.

How Does Subletting Work for Landlords

Here's how landlords can handle subletting requests responsibly:

Establishing a clear policy: Include a clear landlord subletting policy in your lease agreements , outlining when and how subletting may occur.
Enforcing the lease: You retain the right to approve or deny applicants and can enforce a no-subletting clause if one exists.
Screening a subtenant: You also retain the right to screen any potential subtenant just as you would an original applicant.

Simplify Your Rental Management

For expert guidance on subletting, partner with American Heritage Property Management, a trusted leader in property management for rentals in Pennsylvania. AHPM helps landlords create compliant subletting policies, screen tenants, and oversee leases with professionalism and care.

Contact us to learn more about our property management services and how we can help protect your investment and handle tenant relations.

How to Become a Landlord & Rent Property in PA

duncan.shea@appfolio.com (Appfolio Websites) — Fri, 17 Oct 2025 21:29:22 GMT

How to Become a Landlord in Pennsylvania

Many property owners consider leasing their property as an income source, and it's a logical thought process. In the U.S., renters occupy around 44 million households, with the number of renters rising steadily since 2010.

While this high demand likely has you questioning how to rent out property in PA, it's important to make understanding Pennsylvania's landlord requirements your first step. This article will take you through the process in detail and set you up for success.

How to Become a Landlord in Pennsylvania: The Checklist

Have or acquire property in a well-positioned location with desirable amenities.
Understand and budget for property ownership costs.
Familiarize yourself with PA landlord-tenant law.
Set a fair rental price.
Advertise the property using inclusive, nondiscriminatory language.
Screen potential tenants.
Write and sign a lease.
Do a walk-through with the new tenant.
Maintain the property and check in with tenants regularly.

What Do You Need to Become a Landlord?

To become a landlord in Pennsylvania, you first need a desirable property to rent out (either residential or commercial) and a firm understanding of your responsibilities to your tenants.

Becoming a successful landlord demands:

Understanding property ownership and rental costs
Knowing PA landlord-tenant law
Resilience and the ability to act quickly when adversity strikes

Rental income is sometimes called "passive income," but experienced landlords know there isn't much passive about it. Becoming a landlord requires research and effort. Here's what you can do, step-by-step, to get your first property rented:

1. Have a Property to Rent

Owning a property is step one to becoming a landlord. Whether you own one already or purchase one for the purpose, the rental timeline will be similar.

However, when you own property already, becoming a landlord may be easier than starting entirely from scratch and buying a property to rent. Getting a mortgage for a home, apartment building or commercial property you want to rent out is more complex than buying for your own use.

Typically, you need a higher credit score and a bigger down payment to get a mortgage for a rental property. Lenders take on more risk when lending money to investors since there is less emotional attachment to the property.

2. Know Landlord-Tenant Law for Residential Properties

Pennsylvania Landlord-Tenant Law is unique to the state and protects landlords and tenants. Pennsylvania's landlord requirements for residential properties govern aspects like:

The size of the security deposit
What to do with the security deposit while a tenant lives in your property
How to collect rent
Which late fees you can charge
If you need a written lease

In addition to these state-specific laws, you must understand federal laws — particularly for residential properties.

The Fair Housing Act prevents you from refusing to rent to people based on race, sex, family status, color, disability, religion or national origin. The Fair Credit Reporting Act dictates the information you can collect when screening potential tenants.

Understanding this collection of legally protected tenant rights in Pennsylvania can help you ensure you fulfil your duties as a landlord and build a positive landlord-tenant relationship.

Although commercial tenants also usually pay a security deposit, they have little in common with residential tenants as far as the law is concerned. There are fewer legal protections in place for commercial tenants, but you might find yourself negotiating with a team of lawyers to create a lease that works for you as the landlord and the business that will be your tenant.

3. Set a Price and Know Your Budget

Fair pricing is crucial to successful rental. Underpriced properties earn too little, while overpriced rentals can dissuade tenants from considering the space. Determining the best price for your property rental involves researching what similar properties are going for in the area and setting your price based on that. If your property has more amenities, such as a fitness center, pool or free parking, raise the rent accordingly. If your property has fewer amenities, lower your price to compensate.

It can be tempting to set a rental property based on your mortgage payment. However, as a landlord, you'll have additional costs apart from mortgage repayments. If something on the property breaks or degrades and needs to be replaced or repaired, you'll have to pay for those repairs or replacements out of pocket. Use the mortgage and market as a guide, then consider ongoing maintenance costs and expected expenses.

4. Advertise the Property

Strategic property marketing is your next step, and you have many potential options:

Create an effective property listing on a multiple listing service
Share rental details on social media
Ask friends and family to share your listing with anyone seeking a rental
Advertise on apartment listings at universities and community notice boards

In the case of commercial properties, write up a press release about available rentals, especially if the building is new or has recently been renovated. You can also advertise commercial properties on listing services designed for commercial real estate to reach your target audience of business owners.

5. Tenant Screening

Once you have applicants, you need to screen potential renters while adhering to equal housing laws. Here's what to do when screening potential residential tenants :

Credit checks: Check their credit — remember that you require their permission to run a credit check
Income verification: Verify their employment or source of income
References: Call past landlords and ask about their rental history
Background checks: Check their background and criminal history

Screening commercial tenants is slightly different. For established businesses, you can run a credit check on the business itself. Alternatively, run a credit check on the business owners. Try to research the company's financial history and contact past landlords.

This process can be complex, and it's often better to contract it to an established property management company.

6. Write and Sign a Lease

Once you find a tenant who meets your requirements, create a written lease for the landlord and tenant to sign. A written agreement:

Protects the tenant
Protects the landlord
Details agreed-upon stipulations
Tells the tenant what's expected of them.

Ensure your lease agreement is clear, comprehensive and easy to understand. Pennsylvania's lease agreement requirements can be complex, so if you've never written a lease before, it's a good idea to get some help with lease preparation .

7. Inspect the Property

After signing the lease, but before the tenant takes occupation, schedule a walk-through with them. Walk through the property together and make a note of any issues or concerns, such as:

Stains on the carpeting
Nonfunctioning appliances
Cracked walls and ceilings

Consider taking photos of the damage for your records. After the property inspection, notify the tenant if you are going to remedy any of these concerns, and arrange the repairs.

A pre-occupation inspection helps you discover and correct any concerns before the tenant moves in. When the tenant leaves, this record can also help you determine if any damage was preexisting or if it happened while a tenant was living in the building.

8. Check-In With the Tenant

Regular tenant check-ins help you detect and quickly fix any problems that come up during their lease.

Many tenants will promptly notify you about maintenance requests that affect their day-to-day, such as a broken heater or a refrigerator that doesn't keep food cold.

Tenants often forget to mention less impactful issues like a hole in the wall or a window that doesn't open smoothly. To ensure your property is in the best shape possible and you remain able to fix problems quickly, schedule regular check-ins with your tenants. Your check-ins can be quick phone calls or email exchanges during which you ask if there are any problems, even small ones.

Although commercial tenants are often responsible for repair, maintenance and upkeep, it's still a good idea to touch base with them from time to time. You want to verify that they are addressing any issues as they arise.

What Do I Need to Become a Landlord in Pennsylvania?

Renting out property in Pennsylvania requires adherence to comprehensive rules, particularly for residential properties. Pennsylvania's Landlord-Tenant Act of 1951 outlines the rules and requirements of collecting security deposits and other payments, while the Pennsylvania Human Relations Act prohibits discrimination. Here's what you need to know before you become a Pennsylvania-based residential landlord:

Security deposit collection: Pennsylvania doesn't require you to collect a security deposit from tenants. However, you can collect two months' rent as a security deposit in the first year and one month's rent in the second year and beyond. Store the deposit in a secure account. If the tenant rents for over two years, they should receive any interest the deposit accrues, starting in the 25th month of their tenancy.
Returning security deposit: If a tenant moves out, you must return their security deposit unless they broke the lease, have unpaid rent or caused damage beyond standard wear-and-tear. If you keep all or part of a tenant's deposit, notify them within 30 days of move-out — the notification should include an itemized list of expenses.
Rent collection rules: Pennsylvania doesn't have rent control or limitations, so the rent value is at your discretion. You may also charge tenants a late fee if they do not pay on time.
Warranty of habitability: As a landlord, it's your responsibility to make sure that the property you rent to people is " safe, sanitary and fit for human habitation ." A landlord can't rent a property to tenants "as-is" and expect them to take responsibility for heat and sanitation concerns. Before you rent to tenants, make sure you understand what's expected of you under Pennsylvania law and what a tenant can do if your property is uninhabitable.
Pennsylvania Fair Housing: The federal Fair Housing Act prohibits landlords from discriminating against tenants based on several factors, such as race, religion and sex. Pennsylvania's fair housing rules add a few more categories to the mix, including age, the use of a service animal and pregnancy.

What License Do I Need to Rent out My House?

Pennsylvania's landlord license requirements are comprehensive, but vary by location. In Philadelphia, a rental license is necessary, while a broker's license may be necessary for broader property management tasks across the state. It's crucial to understand your specific local regulations to ensure compliance with all legal standards.

How to Rent Residential Property in Pennsylvania: Additional Laws

When you rent out property in PA, you must comply with additional regulations.

If your property was built before 1978, federal law requires you to give all tenants a copy of a pamphlet on lead-based paint as well as information about any known lead-based paint on the property. Your lease also needs to include a statement warning about the dangers of lead and confirming that you have supplied the required documents to the tenant.

Pennsylvania's tenant privacy laws forbid landlords from entering the premises without giving tenants written notice — except in case of emergency.

Any residential property in Pennsylvania with a fireplace, heater that burns fossil fuels or attached garage must have a CO alarm installed near the fireplace and each of the property's bedrooms. Rental properties must also have a smoke alarm installed near each bedroom or sleeping area.

Multifamily properties with more than three units also require smoke alarms in common areas on each floor .

As a landlord, following Pennsylvania and federal rules helps keep your tenants safe and can make your properties more attractive to potential tenants.

Partner With AHPM to Manage Your Pennsylvania Rental Properties

Renting out property in Pennsylvania is profitable and worthwhile, but it isn't passive income with no effort required. From understanding the various tenets of the Pennsylvania Landlord-Tenant Act to maintaining the property and managing tenants, there's a lot to consider.

Fortunately, you don't have to do all the property management alone. American Heritage Property Management has worked with landlords and property owners in Pennsylvania since 1981, providing excellent property management services for residential and commercial properties.

Whether you want someone to take over the day-to-day running of your properties or need help with tenant screening , lease preparation or rent collection , AHPM is here for you. Contact us today to learn how we can serve you.

13 Tenant Rights All Pennsylvania Landlords Must Know

Fri, 17 Oct 2025 20:10:00 GMT

Understanding Pennsylvania's tenant rights is essential for every landlord operating here. Our comprehensive guide defines these rights and provides a 13-point checklist to help you follow PA landlord-tenant law.

What Are Tenant Rights in Pennsylvania?

Under the Federal Fair Housing Act and the Pennsylvania Landlord-Tenant Act , every PA tenant has specific rights. Tenant rights in Pennsylvania grant a habitable living environment, fair treatment and a clear understanding of lease terms. Renters are entitled to privacy, with landlords required to provide notice before entry, except in emergencies.

Understanding tenant rights and rental laws in PA protects you against unintentional transgressions and ensures you respect your renters. Below, we'll give you an overview of critical federal and state laws.

Respecting Tenant Rights During the Apartment Search

Both federal and state legislation protect the rights of home seekers, guarding against housing discrimination and ensuring equal access to housing. The Pennsylvania Human Relations Act broadens protections, adding ancestry and the use of a guide or support animal as protected categories.

But what does that mean for landlords? Let's discuss these individual tenant rights and how they affect a landlord's rights and responsibilities in Pennsylvania.

1. Implement Equal Housing Practices

As an American landlord, you must practice equitable renting and consider all potential tenants. You cannot legally refuse a tenant based on the following protected categories:

Every potential tenant has a right to rent, irrespective of where they fall in these categories. Federal law was established in the late 1960s, and there has been a growing awareness and proactive approach toward fair housing practices in recent years.

For landlords keen on upholding fair living conditions, partnering with a property management company for tenant selection is beneficial. That collaboration helps ensure compliance with PA rental laws and fosters a more inclusive and welcoming community for potential tenants.

2. Enforce Inclusive Marketing

Landlords marketing or advertising an apartment or other property for rent must ensure the marketing upholds the Fair Housing Act, or equally considers all tenants. Landlords should focus on marketing amenities and features that make their properties attractive to prospective tenants.

That approach adheres to the law and invites families of various backgrounds to find their next home in a welcoming community. By emphasizing these practical and inclusive aspects, you can show your commitment to serving diverse housing needs.

It's important to note that advertising a property that isn't accessible to individuals with disabilities (provided it was built after March 13, 1991) also qualifies as discrimination.

3. Honor Tenant Rights Regarding Credit Checks and Adverse Actions

While credit checks can provide valuable insight into an individual's payment history, the Fair Credit Reporting Act (FCRA) stipulates crucial guidelines to protect tenant rights. As such, landlords cannot legally run credit checks on potential tenants without the prospective tenant's permission.

Once you have secured permission and requested and reviewed the report, you can make an informed decision. However, the law views any significant deviation from offering a lease as an “adverse” action. Adverse actions after reviewing a report include:

Requiring a co-signer
Turning down the application
Increasing the rent
Increasing the security deposit

If, based on the applicant's credit or consumer report, you decide to implement an adverse action rather than extend a lease, you'll need to follow a two-step process.

First, you must send the applicant a pre-adverse action notice, including a copy of the report, your intended action, and a summary of their consumer rights under the FCRA. This step is legally required and allows the tenant to dispute inaccuracies in the report.

If they cannot or do not contest the report, you can implement the adverse action and issue a final adverse action notice.

Understanding Tenant Rights on the Lease

Tenant rights in Pennsylvania also cover lease-related aspects, including security deposit sizes and lease terms.

4. Ensure the Security Deposit is Within Legal Limits

Rental laws in PA prohibit landlords from collecting the following as a security deposit:

More than two months' rent for the first year's rental
Over a month's rent for a tenant renting for two years or longer

If you hold a security deposit after a tenant has rented for over two years, they're entitled to receive interest.

5. Notify Tenants of Potential for Lead-Based Paint

For habitations pre-dating 1978, landlords should notify tenants about the potential use of lead-based paint. Provide a written notification, including an EPA-approved pamphlet on the subject. If you know conclusively that lead paint was used to paint the building, state that in the lease.

6. Allow Visitors and Enforce Legal Habitation Limits

The Pennsylvania Landlord-Tenant Act allows tenants to have visitors as long as they meet their other obligations. However, if these visitors stay more than 30 days or contribute rent, they qualify as tenants. As a landlord, you can't forbid overnight guests or limit how many visitors a renter has during a week or month.

So how many people can live in an apartment or other rental property in Pennsylvania? The standard is two people per bedroom — a two-bedroom house could accommodate up to four people. The recommendation is flexible, and a landlord might have acceptable reasons for limiting occupancy. If a small home has tiny bedrooms, for example, a court might allow the landlord to determine the number of occupants to one per bedroom.

On the other hand, there are cases where the two-person-per-bedroom standard can't apply if more people live in a property. For example, if a couple living in a one-bedroom apartment has a baby, a landlord will have difficulty evicting the couple for occupancy reasons.

7. Ensure Lease Terms Don't Violate the Law

While leases are legal contracts defining the terms of agreement between tenants and landlords, all clauses must adhere to the Fair Housing Act and the Pennsylvania Landlord-Tenant Act. If a clause violates the law, it is illegitimate and cannot be enforced.

This approach is sometimes complex and requires a careful balance between implementing positive guidelines and respecting tenant rights. For instance, landlords are entitled to reject applications from tenants with pets, but cannot refuse an application from an individual with a service or assistance animal (as per the Fair Housing Act).

Landlords can establish positive guidelines for guest visits and family-friendly living, aligning with legal standards and tenant rights. These proactive measures ensure compliance with fair housing regulations and create a welcoming, inclusive environment for all tenants.

8. Honor “No-Lease” Agreements as Written Agreements

Tenant and landlord rights and responsibilities remain clear and consistent in informal lease agreements, such as oral month-to-month tenancies. These arrangements provide flexibility while still ensuring stability and mutual respect.

Some specific tenant rights you should be aware of as a landlord include:

Written notice if the tenant needs to vacate
Notice periods before eviction
The right to due process (a legal eviction process)

Since Pennsylvania law protects all tenants, whether tenancy agreements are written or oral, we recommend having a written lease. It provides clarity and ensures the details are recorded in the case of a dispute.

Honoring Tenant Rights After They Move In

Pennsylvania rental property laws continue to offer tenant rights after they occupy the property. Landlords should be aware of the following:

9. Honor Tenants' Right to Quiet Enjoyment

Tenants have the right to enjoy their homes peacefully, meaning a landlord can only enter a property when the tenant permits. As a landlord in PA, you must provide reasonable notice if you want to enter a tenant's rental property, even for legitimate reasons such as:

Maintenance
Inspections
Property showings

Depending on the lease agreement, you'll need to provide advance notice of a specific period (typically 24 hours) to ensure the tenant's privacy rights receive due respect.

There is one exception to this rule — landlords may perform an emergency entry in the case of significant emergencies, such as severe water leaks or property fires.

10. Provide a Safe and Habitable Home

A 1979 Pennsylvania Supreme Court ruling declared it a landlord's responsibility to ensure a property is safe and sanitary. As a landlord, you can ensure your property is considered habitable by providing the following:

Working smoke alarms
Working hot water
Drinking water
Heat
Adequate waste disposal and sewage
Functioning/locking windows and doors
Functioning bathroom(s)

Keeping a home safe and habitable requires input from both parties. Tenants are legally required to notify the landlord of failures of any essential equipment like heaters or water lines.

The landlord is responsible for prompt reactions and repairs, though the time frame may vary depending on the problem and the season. If the furnace breaks in the middle of January, immediate repairs are essential. If it breaks in August, a landlord can put off repairs until necessary.

Understand Tenant Rights if Something is Wrong

If a Pennsylvanian landlord doesn't uphold tenant rights, rental laws are on the tenant's side.

11. Rent Withholding or Deduction

As mentioned, the landlord is responsible for keeping a property habitable. Tenants are responsible for maintaining rent payments. However, under certain conditions, tenants may withhold rent or deduct repair costs from the total if repairs are not completed promptly.

The process looks like this:

Step one: The tenant notifies the landlord of the problem, in writing.
Step two: They give the landlord a reasonable time to complete the repairs.
Step three: If the landlord has not made repairs after this time, the tenant can either opt for rent withholding or to repair and deduct.

Rent Withholding

If the tenant wants to withhold rent and force the landlord to make repairs, they may have the city or municipality’s housing inspector come out to investigate. If the inspector declares the home to be uninhabitable, the tenant does not need to keep paying rent.

Should the tenant decide to remain in the property, their monthly rental payments will go into an escrow account. If the landlord makes the needed repairs within six months, they will get the money in the escrow account.

“Repair and Deduct”

Instead of the above route, a tenant may get cost estimates and have the repairs done. However, there are a few basic requirements:

The repairs must be necessary to make the property habitable.
The repairs must cost less than the total rent remaining on the lease.
The tenant must provide an itemized bill detailing the costs of repair.

If the repairs check these boxes and the landlord fails to complete them, the tenant may handle the work and deduct the cost from their next rent payment.

End-of-Lease Tenant Rights

As the end of the lease gets nearer or right after a tenant moves out, they still have a few legal rights landlords need to know about.

12. Give the Tenant Notice

If you would like to change the rental status of a particular tenant after their lease is up, you need to provide them with ample notice. How much notice depends on the length of the lease, with Pennsylvania landlord laws requiring the following:

Leases under one year: At least 15 days' notice.
Month-to-month leases: At least 15 days' notice.
Leases for a year or longer: At least 30 days' notice.

If you need to evict tenants, you must also notify them as part of the eviction process. The amount of notice required depends on the reason for the eviction and is usually anywhere from 10 to 30 days in Pennsylvania.

13. Return the Security Deposit

When a tenant leaves, you should return their security deposit within 30 days of their vacating the premises. If you deduct anything from the deposit, provide an itemized list of any damaged areas and the charges for repairing them. If you withhold the full security deposit, they can sue for double the deposit amount.

Let AHPM Help You Manage Your Property

As a landlord in Pennsylvania, you have a lot on your plate. Remembering and applying countless tenant laws is difficult, especially when some require a sensitive balance and attention to detail. Ensure you meet all the requirements and respect tenants' legal rights with an experienced property management company.

American Heritage Property Management has served landlords in Baltimore and Central Pennsylvania for over 40 years. We handle everything from tenant screening to transitions and maintenance, so you don't have to. Contact us today to learn how we can elevate your rental property management and help you avoid legal pitfalls.

A Stress-Free Guide to Renting Out Your House

Mon, 25 Aug 2025 18:53:58 GMT

Deciding if you can rent out your house can be a profitable move or a management headache. The choice often comes down to cash flow, long-term appreciation and personal bandwidth for property management.

With the right strategy, renting out your home can become a steady source of income without losing sleep over legal details, tenant issues or maintenance calls. Whether you're a first-time landlord testing the waters or a homeowner relocating but holding onto real estate, this guide will break down the essentials you need for a smooth, stress-free rental experience.

Should You Rent Out Your House?

Homeowners often consider renting their houses out when they relocate for work, inherit a property or can't sell quickly in a shifting market. In these cases, rental income may help offset mortgage payments while the property builds equity. If the rental market in your area is strong, your asset could generate positive cash flow each month, turning idle real estate into a revenue stream. Renting lets you hold the property while values appreciate, and tax deductions on mortgage interest, repairs, and depreciation can strengthen your balance sheet.

Pros of renting out your house include:

Steady income stream: Rental payments have the potential to cover the mortgage, fees for Homeowners and Community Association (HOA) insurance, and potentially leave you with a profit.
Appreciation potential: While tenants cover expenses, the property may gain long-term value.
Tax advantages: Owners can often deduct maintenance costs, property taxes and depreciation.
Portfolio building: Converting your house into a rental creates a stepping stone toward broader real estate investment.

You should also be aware of the cons of renting out your house. Vacancies, late payments and property damage can cut into your return on investment (ROI), so tenant screening is critical. Leaky roofs and broken HVAC units don't wait — as a landlord, you need reserves and reliable vendors. A rental property also doesn't offer quick capital and isn't as easy to cash out as other investments.

Step-by-Step Process for Renting Out Your House

If the pros outweigh the cons for you, it's time to learn how to rent out your house. Before getting started, remember that you may need certain permissions to rent out your house. Some mortgage lenders have specific requirements for turning a house into a rental property. You should also check with your local HOA, if applicable.

Then, follow these steps:

1. Assess Financial Feasibility

Start with a cash flow analysis. Compare projected rental income against your mortgage, insurance, property taxes, HOA fees and expected maintenance costs. Also factor in vacancy rates and property management fees for outsourcing. The goal is to land on a positive monthly balance that signals viability.

2. Understand Local Laws and Compliance

Every state and municipality has landlord-tenant laws that govern leases, security deposits, habitability standards, and eviction procedures. Review zoning requirements and short-term rental restrictions. Failing to comply can lead to fines or legal disputes.

Landlords in Pennsylvania must comply with state and local regulations, which include:

Security deposits: Landlords can charge up to two months' rent as a security deposit in the first year. These deposits must be kept in a separate escrow account, and the interest earned after two years is returned to the tenant annually.
Notice periods: Landlords must provide 15 days' notice to terminate a lease of less than one year and 30 days' notice for leases of over a year. Termination for nonpayment only requires a 10-day notice.
Local ordinances: Philadelphia and Pittsburgh, for example, require rental licenses and inspections before occupancy.

3. Prepare the Property

You take pride in your property and want to show that to the people renting your house. A rental-ready home must be safe, clean and code-compliant. This often means servicing HVAC systems, testing smoke detectors, fixing leaks and refreshing paint or flooring. Energy-efficient appliances and modern finishes may also justify higher rent. Presentation and strategy will determine whether your property attracts reliable tenants or sits vacant.

Success hinges on creating a rental that stands out in a competitive market. Avoid the common mistakes first-time landlords make by:

Boosting curb appeal: A clean exterior, trimmed landscaping and a fresh coat of paint on the front door signal quality to prospective renters.
Prioritizing functionality: Ensure all locks, outlets and appliances work properly. Functional basics build trust with tenants.
Upgrading strategically: Focus on high-impact upgrades like modern lighting or energy-efficient windows. These features increase perceived value without breaking the budget.
Staging for showings: Neutral decor, uncluttered spaces and good lighting let tenants envision the property as their own.
Planning for durability: Install materials that withstand heavy use, such as vinyl plank flooring. Long-term maintenance costs are lower when finishes are tenant-proof.
Documenting everything: Keep detailed maintenance records and receipts — organized documentation helps future disputes and supports your tax deductions.

4. Determine Rent Price

When determining how much you can rent your house out for, start by conducting a market rent survey and comparing similar properties in your neighborhood. Online rental platforms, MLS data and property management companies provide benchmarks — because if you price too high, you risk vacancies. Too low, and you leave money on the table.

In Pennsylvania's diverse markets, the following helps you set a competitive rate for your rental property:

Consider seasonality: Rental demand peaks in late spring and summer , so price aggressively in the off-season to reduce vacancies.
Factor amenities: Off-street parking, upgraded kitchens or proximity to transit hubs may justify higher rents.
Account for expenses: Ensure your rate covers your mortgage, taxes, insurance and a reserve for maintenance. Aim for a margin above break-even.

5. Market the Property

High-quality photos, accurate descriptions and clear terms encourage tenants to rent your house. Highlight features that will drive demand, like parking, in-unit laundry or proximity to schools. Use listing services, social media and real estate networks to reach prospective tenants. To rent quickly, your property needs visibility. Capture renters' interest with virtual tours and targeted advertising that lets you attract remote renters or busy professionals looking in specific neighborhoods.

6. Create a Thorough Lease Agreement

A strong lease sets clear expectations and protects both you and your tenants. At a minimum, include:

Names of all tenants
How long the lease is valid for
Rent payment details
Security deposit terms
Maintenance expectations for both the landlord and tenant
Rules and restrictions for occupancy
Entry and notice requirements
Default and termination clauses

7. Screen Tenants Thoroughly

Run background, credit and rental history checks, in addition to verifying incomes, to ensure your tenants' monthly rent is no more than 30% of their income. Use clear criteria and consistent screening practices to reduce the risk of default and protect yourself against fair housing violations. You must also check their rental history, contacting past landlords to confirm payment reliability and property care.

Ready to Rent Out Your House? Get a Free Quote from American Heritage Property Management

Renting out your house makes sense if your market has a consistent rental demand, you're prepared for ongoing maintenance, and you partner with a trusted property management company. Managing a rental is like running a small business, and the workload can quickly become overwhelming. A professional property manager handles marketing, leading rent collection, inspections, and legal compliance on your behalf.

At AHPM, we know how to rent out a house. Our team offers property management services throughout Central Pennsylvania and Maryland. Since 1981, we have had thousands of rental units in our care, with low vacancy rates and around-the-clock emergency repair services. As a full-service property management company, we take care of every part of the process and protect your real estate investments.

What Is a Property Manager?

nremigio@ahpm.biz (NATALIE REMIGIO) — Wed, 18 Jun 2025 19:44:55 GMT

A property manager is an individual or company tasked with overseeing the daily operations of a rental property, filling vacancies and interacting with tenants on behalf of the property owner.

What Does a Property Manager Do?

Rental properties require someone to keep them running smoothly, preserve their value and generate income. Specifically, a property manager's role is to handle responsibilities like these.

Offering Local and Legal Expertise

A local property manager is valuable for everything from offering insight into determining rental rates to being nearby when concerns arise. If you own a property in one area but live in another, working with a company or individual with a presence in the community is essential.

A local expert should also be familiar with any laws and regulations that apply to your property, helping you prevent legal issues related to state and local requirements. Since many management responsibilities are administrative, a thorough understanding of landlord-tenant laws helps operations run smoothly and in compliance.

Beyond risk mitigation, a property manager handles paperwork and financial reporting, ensuring proper documentation and demonstrating how your investment is performing. Insight gleaned from monthly income statements, expense reports and annual summaries helps you make the most of your rental property. It may identify areas where you can improve cash flow through informed financial decisions.

Inspecting, Marketing and Filling Vacant Units

Property managers are responsible for listing vacant units, screening potential tenants, showing the open rentals and making necessary arrangements to fill these empty spots. These responsibilities include inspecting the spaces' condition before each new rental agreement and marketing the rental properties when units open up.

Property managers will also take care of the screening and selection process for new tenants, often using background checks and verifying employment or credit.

Depending on their contract, a property manager may establish legally binding lease agreements or reach out to another professional to create necessary, compliant documents when renting units to new tenants.

Collecting Rent and Resolving Tenant Concerns

While it is ideal for a rental property to receive payments in full and on time, a property manager is also responsible for collecting late or unpaid rent , efficiently protecting the property owner's income. If necessary, a property manager will handle evictions professionally and in compliance with all relevant laws.

A property manager also handles day-to-day interactions with tenants. A friendly and helpful manager can support their satisfaction with the property and give them a point of contact when they have a question or another concern. While many of their duties are more concrete, a property manager's responsibilities include offering clarity and resolving conflicts to support tenants' needs when necessary. This aspect of the role directly helps your property maintain full occupancy and generate more income.

Managing General Upkeep and Tenant-Requested Repairs

Your rental property is an investment, and keeping it in excellent condition requires ongoing maintenance. A property manager will perform or arrange maintenance services, keeping the space safe and visually appealing to attract and retain tenants. Depending on the site, these responsibilities may include:

Ongoing maintenance and exterior upkeep: Properties require regular work, such as mowing lawns, maintaining trees and gardens, and taking care of other landscaping needs. Some tasks are less frequent but still necessary to boost curb appeal, such as maintaining fences and walkways or power washing exteriors.
Seasonal work: Winterizing the property, performing snow removal, ensuring outdoor amenities are ready for summer and taking care of other seasonal jobs keeps essential systems and outdoor areas in good condition.
Safety and preventive inspections: A property manager should ensure fire safety equipment is up to date and functional. They will check the plumbing and electrical systems to ensure they're working properly. When necessary, they will also arrange inspections for roofs, rental units and other areas to catch any issues early.

When a problem arises with a tenant's unit, they'll want the necessary repairs completed quickly. A property manager is available for full-service repairs and 24/7 emergency services to meet those needs. Whether one of your tenants' appliances stops working or they notice a leak, you need a knowledgeable, responsive property manager to resolve the issue right away.

The Advantages of Professional Property Management

Managing your rental properties is time-consuming and grows more challenging if you own more than one. The work often requires specialized expertise and varied knowledge about the area, lease agreements, tenant screening and other facets of renting. Hiring a professional property manager makes ownership easier while maximizing your return on investment.

While some states allow individuals to act as property managers without licenses in some circumstances, their capabilities are generally limited. With a real estate license or real estate broker license, a professional property manager can offer more comprehensive oversight and expertise. Working with a licensed, established company also gives property owners and investors more peace of mind that they've hired a property manager with the knowledge and experience to act as a valuable partner.

How Much Does Hiring a Property Manager Cost?

Property management costs vary according to several factors, including location, property type and the management company's responsibilities. Generally, these costs are a flat fee or a percentage of your rental income . Management services offer convenience, risk mitigation and collection support that is well worth the price. In many cases, the fees you pay for property management are tax-deductible expenses.

Services American Heritage Property Management Offers

When selecting a property manager, choosing the right company to handle the property impacts your rental's success. American Heritage Property Management has decades of experience fulfilling a vast range of property management responsibilities for various rental properties.

Our full-service property management company handles everything from lease preparation to interacting with tenants to overseeing maintenance. Whether you own commercial buildings, individual homes, apartment buildings, townhouses or other rental properties, AHPM has the experience to manage them.

We list available rentals on our site and make rent collection easy for tenants with online payments. Our call center offers constant access when tenants need assistance, and we have the experience to provide additional services, including accounting and finance management .

Entrust Property Manager Duties to American Heritage Property Management

AHPM has offered excellent property management services throughout Central Pennsylvania and Maryland since 1981. With thousands of rental units under our care , a consistently low vacancy rate and 24/7 emergency repair services, we are one of the region's largest and most trusted rental property management companies.

If you own a rental property in Maryland or Central Pennsylvania, contact the AHPM team to discuss your rental property management needs.

Squatters' Rights in Pennsylvania

Tue, 27 May 2025 18:56:22 GMT

It can be stressful to have people occupy your property without you knowing, especially if they’ve been doing so for years. Even though it’s tempting to evict these individuals yourself, there is a legal process to follow. Squatters have rights in Pennsylvania, and following the laws increases your chances of getting your property back.

What Is a Squatter?

Squatters occupy properties without permission for some period, which could be weeks, months or years. They do not have tenancy and have not signed a lease agreement . Vacant, neglected and abandoned properties are susceptible to squatters.

Although squatters are typically trying to own a property that’s not theirs, some squatters may have mistakenly thought they had a legal right to the property. For example, they may have been gifted the property by someone who didn't have the right to give it away.

Trespassers vs. Squatters

Although trespassers and squatters are similar in the sense that both enter properties they don’t own, trespassers only stay for a short period and don’t intend to claim the property. Squatters stay for an extended time. For example, a person trespassing on your property may plan to tamper with your equipment or hunt on your land, which means they might leave after a day or two. Squatters can stay on your property for years.

Each jurisdiction has varying laws on trespassing and squatting. Trespassing can be treated as a criminal or civic offense, while squatting typically starts as a civic offense but may become a criminal offense, depending on the length of stay.

What Are Squatters' Rights?

Squatters' rights allow persons to gain ownership of a property they have lived in for a specific period. If they meet the time and other requirements, they can successfully claim the property. How long squatters must stay on the property to gain ownership varies from state to state. There is no federal law that governs these rights.

To increase the chances of ownership, squatters may need to:

Live in the property continuously for a specific period.
Gather evidence of their claim through property tax receipts and other documentation.
File a quiet title action , a lawsuit that “quiets” other claims to the property.

Some states require squatters to have a color of title — a document that seems to grant ownership but is flawed in some way.

Does Pennsylvania Have Squatters' Rights?

Squatters in Pennsylvania need to have lived on the property for 21 years to gain ownership. However, the state does not require property tax payments or a color of title. Under the adverse possession legal doctrine, squatters must meet five requirements:

Squatters must continuously occupy the property uninterrupted for at least 21 years.
Squatters must use the property without permission from the landlord.
Squatters must use the property exclusively, meaning they don't share it with someone who has a right to own it.
Squatters must use the property as it was intended to be used.
Squatters must openly, not secretly, use the property.

Temporary permission from a landlord can prevent squatters from claiming adverse possession. Any presence of a lease can also prevent hostile ownership. Note that agreements can exist verbally or in written form, but written contracts are an easy proof of agreement.

Why Do Squatters Have Rights?

Generally speaking, squatting is considered illegal. However, adverse possession laws are put in place to avoid neglected properties and to encourage landlords to productively use their land. What’s more, these rules discourage vigilante justice, which is an inhumane and unlawful way of evicting squatters.

When you find persons squatting on your property, it’s best to evict them as soon as possible to avoid them being eligible for adverse possession. Although it can be hard for them to meet the requirements, it’s not entirely impossible. For instance, in 2008, Steven DeCaprio from Oakland fixed up and lived in an abandoned house in the city. He successfully sued for occupancy and ownership through adverse possession.

How to Evict a Squatter

As a landlord, you have the right to evict squatters through law enforcement. You cannot evict squatters yourself. You also cannot change property locks to prevent access to the property, and you cannot threaten squatters to leave the property. Evicting squatters yourself is called “self-help eviction” and is prohibited.

Here’s the correct squatter eviction process:

Provide a notice of eviction: Write an eviction notice, giving the squatters 10-30 days to leave voluntarily in Pennsylvania. You must give the notice personally, leave the notice at the main building of your property, or post the notice conspicuously on your property.
File a court complaint: If a squatter does not leave the property within the time frame of your eviction notice, you should file a complaint in court. The complaint should ask for possession of the property and may ask for payment for damages. The court will require you to attend a scheduled hearing. Each court will have slightly different rules for these complaints, so check your local rules for more information.
Wait for judgment: You and the person aiming to claim your property will have a chance to present your case. Prepare your documents, photos, records, emails and other evidence that can help your case. You may bring your own lawyer. Within a few days, the judge will make their decision.
Issue an order of possession: If you win the case, you still cannot evict the squatters yourself. An order of possession requires the persons living at your property to vacate the area within a certain period, usually 10 days. Otherwise, they can be forcibly evicted.

If squatters leave their possessions behind, you can notify them to retrieve their belongings, which they should do within 10 days. The squatter may also request that you keep their belongings for up to 30 days. However, they will be responsible for related costs. If you cannot contact the squatter for their belongings, you can dispose of the items.

It’s best to follow the correct eviction process. People squatting on your property have rights, and if they believe these rights were violated, they can file a complaint. This can lead to messy lawsuits and may even result in you losing your property.

How to Avoid Squatters in Pennsylvania

Evicting squatters can be a tiring, costly and long process. It’s always better to try to avoid them in the first place.

Here are ways you can do so:

Regularly monitor your property: Regularly monitoring your property helps you spot trespassers and squatters right away. This means you can evict them quickly, reducing the chances of a hostile takeover.
Ensure tenants know you and one another: If tenants know you and one another, they may tell you if they find any suspicious activity on your property. Squatters need to openly use your property to claim it through adverse possession. This will likely fail if neighbors know one another.
Keep your property well-maintained: Squatters can fix up an abandoned property, which could increase their chances of claiming it. Squatters are less likely to target well-maintained properties.
Consider property management companies: Managing your property can be challenging, especially if you own multiple properties. A property management company can help you out by managing one or all of your properties.
Screen tenants: Tenant screening can help ensure full occupancy so that there are no empty properties for squatters to occupy.

Make Property Management Easy With AHPM

American Heritage Property Management (AHPM) is a full-service property management company — the largest in Central Pennsylvania. Having been in business since 1981, you can trust that you’ll be getting services from experts in the industry.

We can help you manage your properties and screen tenants by performing credit reviews, criminal history checks, employment verifications and more. We also prepare lease agreements, ensure rents are paid on time and offer 24/7 emergency maintenance services. Let us help you take the stress out of the work and ensure your properties are in top shape. Contact us today to get a free quote !

Pennsylvania Eviction Laws: Guide For Landlords

nremigio@ahpm.biz (NATALIE REMIGIO) — Tue, 27 May 2025 18:44:37 GMT

A Complete Pennsylvania Eviction Guide for Landlords

For most landlords, evicting a tenant is a last resort. The eviction process is complex and costly, and both parties often feel stressed and frustrated as it plays out. However, eviction is your right as a landlord in PA, and you may find that it's the only path forward when you encounter tenants who fail to uphold their end of the lease agreement.

Whether you're dealing with a tenant who has caused significant property damage or hasn't paid their rent on time, it's important to understand how to pursue a legal eviction process. Knowing your rights and the relevant laws will help you comply with the correct procedures so you can protect yourself and your property. Learn about PA eviction laws, grounds for eviction, tenant rights, mistakes to avoid and more in our complete guide.

Overview of Pennsylvania Eviction Laws

The eviction process in PA varies by county. As you consider eviction, be sure to review your location's specific eviction laws so you can take the appropriate legal steps. However, evictions across counties generally involve the following steps:

Send a written PA eviction notice to the tenant.
File a complaint in court if the tenant doesn't comply with the written notice.
Provide supporting documentation to create a court case.
Go through the court hearing.
Follow the court-issued judgment.

These steps can be more nuanced in some instances, and the eviction process can vary in length depending on the situation.

What Are the Grounds for Eviction in Pennsylvania?

To file an eviction notice legally, a landlord must have a valid reason according to PA eviction laws. If you have grounds for eviction, you can serve the tenant with a notice to quit, which is a legal written statement that says the tenant must either correct the breach of the lease or vacate within a certain duration. This notice is always required to begin an eviction.

These are the four main grounds for eviction in the state:

1. Violation of the Lease Agreement

When a tenant signs a lease agreement, they're signing a legal contract and agreeing to adhere to the rules and responsibilities outlined in that contract. If the tenant breaches the conditions of the lease, the landlord has legal grounds to begin eviction. Some common examples of lease violations include:

Excessive noise
Late rent payments
Smoking indoors
Property damage
Unpermitted pets
Unauthorized occupants
Unsanitary conditions

How many lease violations can occur before eviction? Whether you choose to pursue eviction for a lease violation depends on the violation's severity. Most often, less-severe violations, like a noise issue or an unpermitted pet, can be addressed by communicating with the tenant. If the violations persist uncorrected, or the violations are a result of illegal activity or property damage, eviction may be considered.

Note that the eviction process for a lease agreement violation varies depending on the lease's duration . If the tenant is renting for over one year, the eviction notice period is 30 days. For a lease term of one year or less, also called an “indeterminate” time, the eviction notice period is 15 days.

2. Nonpayment of Rent

Unless otherwise stated in the lease, rent is considered late starting the day after it's due. If a tenant fails to pay rent by the specified due date or after any grace period outlined in the lease, the landlord has the right to issue a 10-day notice . If the tenant fails to pay the overdue rent within 10 days, they must vacate the property.

3. Illegal Activity

If you find that a tenant is committing illegal activity on the rental property, you can file an eviction notice after 10 days with no opportunity for the tenant to correct the violation. An example is drug activity violating the state's Controlled Substance, Drug, Device and Cosmetic Act. Other illegal activity may include violent behavior that puts other tenants and neighbors at risk.

4. Expiration of Lease Without Renewal

Once a tenant's lease expires, they must vacate the rental premises. If you and the tenant agree to extend or renew the lease, the tenant can legally remain in the unit. Otherwise, any tenant refusing to move out after the lease term is up is considered a “holdover tenant” and can be evicted.

The Pennsylvania Eviction Process

If you're considering eviction based on valid grounds and want to know how to evict someone in PA, the legal eviction process occurs as follows:

1. Serve a Notice to Quit to the Tenant

The first step is to serve your tenant a notice to quit. This written document must clearly state the purpose of the notice, the reason for eviction, the required solution, and the deadline for complying or vacating the property. Either serve the notice in person or send it to the tenant via certified mail with a return receipt requested.

Depending on the situation, your notice to quit can include one of the following timelines:

10-day notice: The tenant hasn't paid rent on time or is engaging in illegal activity on the property.
15-day notice: The tenant has an indeterminate lease period and has violated the lease.
30-day notice: The tenant has a lease period of one year or longer and has violated the lease.

If the tenant complies with the notice and takes the proper corrective action within the allotted period, the eviction process ends here.

2. File an Eviction Complaint in Local Court

When serving a notice to quit is unsuccessful, it's your right as a landlord to file an eviction complaint in local court. Begin by compiling all the necessary details, such as a copy of the lease, the basis for eviction, evidence you gave proper notice, and additional supporting documentation.

Then, file an official eviction complaint with your local district court. This step may require paying court filing fees. Once filed, the court summons the tenant, and a court hearing is scheduled after the tenant has been served.

3. Prepare Evidence and Attend the Court Hearing

Before the court hearing, you and the tenant will each prepare your case and can choose to hire legal representation. During the court hearing, you both present your individual cases, offering evidence to support your positions. As the landlord, you must show you have valid grounds for eviction. The tenant may raise their own defense and challenge your claims.

4. Consider the Court's Judgment

Based on the evidence and cases presented in the court hearing, the judge makes a ruling. If the judge decides in your favor as the landlord, the tenant is ordered to vacate the property. If the judge decides in the tenant's favor, your eviction action is dismissed, and the tenant can legally remain in their rental unit. In either situation, the nonfavored party has the option to appeal the judgment within 10 days.

5. Take Possession of the Property

If the court decides in the landlord's favor, the tenant must vacate the rental property within the timeline outlined by the court judgment. If the tenant doesn't vacate the premises, the landlord can request a writ of possession. This legal document authorizes the tenant's removal from the rental property, enforced by the local sheriff's office or a court officer.

Once the writ is issued, the local sheriff's office or a court officer will serve it to the tenant, who then has 11 days to move out. If the tenant is being evicted due to nonpayment of rent, they have until the writ is executed to pay their overdue rent and stop the eviction. If the tenant neither moves out nor pays their overdue rent, sheriff's deputies or court officers forcibly remove them and their belongings from the property.

What Is the Eviction Process in Pennsylvania With No Lease?

Some landlords don't have written leases with their tenants. According to tenant rights in PA for no lease situations, the law generally assumes that you and your tenant have an oral month-to-month lease agreement . In that case, you can still pursue the legal process above with a 15- or 30-day notice, but you also have the right to end the lease at the end of any month for any reason.

Tenant Rights in Pennsylvania

As a landlord, it's essential to understand your tenants' rights under PA laws . These laws exist to protect tenants from unfair and unlawful treatment while renting. With both your and your tenants' rights in mind, you can move forward with a fair, legal resolution.

Remember that specific tenant rights vary across counties, so always consider your location's tenant laws before taking action. In general, tenants in PA have the following rights:

Safe, habitable living environment: It's the landlord's responsibility to maintain a safe, habitable rental property, which is called the tenant's right to a “decent home.” If a tenant believes they're not being provided that kind of rental property , they may pursue legal action.
Legal eviction process: All tenants have the right to a lawful eviction process. If a landlord attempts to initiate eviction outside the legal process, also called a “self-help eviction,” the tenant can take legal action. Additionally, tenants have the right to contest evictions in court.
Protection against discrimination and retaliation: Under the federal Fair Housing Act, landlords can't evict tenants because of protected characteristics, such as race, gender or disability. PA doesn't have a specific state law for retaliatory evictions , but it is illegal for landlords to retaliate against tenants, such as by shutting off their utilities, for exercising their tenant rights or joining a tenants' group.

Special Considerations

The eviction process isn't always straightforward, and you may be dealing with a special circumstance. For example, in certain states, landlords may need to follow particular seasonal restrictions. These restrictions don't exist in PA — you can evict a tenant any time of year through the legal eviction process.

Another special consideration to note is squatting. Under PA's Act 88 of 2024 , which amends the Landlord and Tenant Act of 1951, any individual who occupies a property without ever having been a tenant is considered a squatter and doesn't have the same legal protections as a tenant. If you have a squatter, you can remove them without following traditional eviction notice requirements, using the Act's expedited legal pathway to reclaim your property.

Tips for Avoiding Evictions

Few landlords want to choose eviction as the first step in resolving an issue with a tenant. The good news is that you can take many steps to avoid evictions in the first place. Consider some of the ideas below:

Maintain open communication with your tenants: One of the best ways to resolve issues is by talking them out with your tenants. Make it easy for them to reach you, whether by phone, email or in-person interactions. Be as responsive and courteous as possible — good communication can make a world of difference in finding a solution.
Screen tenants thoroughly: Part of avoiding issues altogether is selecting the right tenants to live in your rentals. The tenant screening and selection process should be thorough and extensive to ensure you're selecting tenants who are a good fit for your properties. This process greatly reduces the likelihood of choosing tenants who will cause eviction-worthy problems.
Use a clear, descriptive lease: Nothing is more critical than a well-written, physical lease. All terms and conditions, including eviction details, should be clearly outlined in the lease. It may be beneficial to work with an attorney to draft a lease that protects you and considers the tenant's legal rights.
Conduct regular unit inspections: A great way to stay on top of property maintenance is to schedule periodic unit inspections throughout the year. Be sure to give the tenant proper notice of the inspection. If you find damage or other issues, you can work with the tenant to correct things before it turns into a potential eviction.
Hire a rental property manager: If you own several tenant-occupied units or simply want to hire someone to facilitate tenant relationships and property concerns, consider hiring a property manager. This individual or team can handle numerous tenant-related tasks, including assisting with the eviction process , so you can devote more time and energy to other things.

Pennsylvania Eviction FAQs

Do you have further questions about PA landlord and tenant laws or how to evict someone in PA? Explore a few FAQs and their answers below:

Can a Landlord Evict a Tenant During Winter?

Yes, a landlord in PA can evict a tenant during winter and any other time of year. There are no seasonal eviction restrictions in PA.

How Long Does the Eviction Process Take in Pennsylvania?

The eviction process in PA can take anywhere from a few weeks to months. Depending on the specific circumstances, you can expect the timeline to unfold as follows:

10-30 days for the notice period
One to two weeks to file the eviction in court
Two to four weeks for the court hearing and judgment
One to two weeks for the eviction and writ of possession

What Happens If a Tenant Refuses to Leave After an Eviction?

If your tenant refuses to leave the rental property within the timeline outlined by the court's judgment, you have the right as a landlord to request a writ of possession. Then, a specific law officer will serve the tenant, who has 11 days to move out from that point. If they still refuse to leave, law officers will return and remove them forcibly.

Choose AHPM for Property Management Services

For many landlords and rental property owners, managing tenants can be time-consuming and difficult. Working with an experienced property management service can help. At American Heritage Property Management, we provide over 40 years of expertise in full-service property management .

Let us help you take the stress out of ownership by handling 24/7 maintenance, rent collection assistance, tenant screening and selection, and lease preparation and collection. If an eviction is necessary, we can assist with that process, too. As a result, you can take a step back and enjoy your investment without worrying about operations.

AHPM works with properties in and around Central Pennsylvania and the Baltimore Metro area. Contact us today to learn more.

How to Evict a Tenant That Doesn't Pay Rent

Tue, 27 May 2025 16:50:00 GMT

Becoming a landlord can be a great way to build equity in your property, pay off the mortgage or put some extra money in your pocket. The building itself really does all the work. You just collect the rent every month and ensure the property is well-maintained.

Your job becomes more complicated when dealing with a tenant who fails to pay rent. Managing your own rental property can be stressful and challenging due to legal complexities, potential disputes and financial setbacks. Whether they lost their job or are facing unexpected medical bills, you may agree to terms that allow your tenant to make late payments and catch up on the rent within the agreed-upon amount of time.

There are other times, however, where the only solution is to evict those non-paying tenants. It's crucial to approach the situation with a clear understanding of the legalities and best practices involved to resolve the eviction process efficiently.

As a landlord, your goal in evicting a tenant is to protect your investment and maintain a steady rental income. That's why it's important to act swiftly and understand the lawful, practical steps involved.

Learn About Eviction Law

The first step to evict someone who doesn't pay rent is understanding both your and their legal rights. State law determines what you must do to evict a tenant, so become familiar with the landlord-tenant laws in your state .

Talk to the Tenant

This step is often overlooked, but it could save you a lot of trouble.

Start by discussing the situation with your tenant to identify their challenges and explore possible solutions, such as negotiating a structured payment plan. Make sure your tenant knows that you are aware of the overdue rent. By avoiding this conversation, you might unintentionally signal to them that non-payment is acceptable. A face-to-face conversation can establish a personal connection, making it more likely for your tenant to accept responsibility. Follow up regularly until you have resolved the rent issue.

Secure Your Documentation

Eviction is a legal process that requires proper documentation. Make sure you have a signed lease that clearly outlines your tenant’s obligations to you. If you don’t have a written lease, collect data to prove that the tenant pays you a certain amount of money every month.

This paper trail will show that a verbal rental agreement is implied. Collect copies of canceled checks or a bank statement that shows monthly deposits. Also, gather all text messages or email exchanges that include any temporary agreement from the tenant to pay a certain portion of the back rent by a particular date.

Give the Proper Eviction Notice

If a notice period isn't clearly outlined in your tenant agreement, then the length of notice you'll need to provide will depend on the reason you want to get rid of the tenant, such as not paying rent). Follow the details outlined in your state law for how to notify a tenant of eviction.

You could post the notice to the tenant’s door or hand it to an adult on the premises. Depending on your state laws, sending notice only via mail could be considered void. Details are important in this step. Follow the law and collect documentation of your actions.

Take It to Court

If your tenant does not respond to the eviction notice, file it with the court. Check with the court clerk to be sure you are in the right jurisdiction and have the correct form completed. Follow the proper court process to avoid long delays or invalidating your complaint. Depending on state laws, a court-ordered eviction may be mandatory to evict a tenant who doesn't pay rent.

Appear at the Court Hearing

Your case will be thrown out if you fail to appear, whereas you may be awarded a default judgment if your tenant doesn't show. Be prepared to explain the problem clearly and provide documentation supporting your claims. The judge will ask why you want to evict your tenant, so stick to the facts and be professional. You will have to present evidence of a rental agreement between you and the tenant, after which the tenant can present their side of the story.

Remember, you cannot prove the tenant did not pay you. It is up to the tenant to prove that they have paid.

Move the Tenant Out

Do not handle your tenant’s belongings yourself or attempt to change the locks on the apartment until the eviction is legally completed. Instead, hire a moving company to handle the eviction in compliance with the law. You will have to cover the moving company's costs upfront, but if you save your receipt, you may be able to recoup these costs in court.

Once the tenant has vacated, have a locksmith change the locks. This is not a suitable time for a DIY approach. You will want the locksmith as a witness to prove that you changed the locks only after the tenant vacated, protecting you from legal disputes.

Take Photos

Anytime a tenant moves out under adverse conditions, photograph the apartment's condition before cleaning for the next tenant. You never know when you will need those photos to prove how the apartment was left. In many states, the standard is “broom swept” for vacating a rental unit. Your photos will show whether this condition was met.

Find a New Tenant

Each time you look for a new tenant, you have the opportunity to improve your applicant screening process and reduce the risk of another eviction situation. Once the rental unit is vacant, clean it thoroughly and prepare the space before showing it to potential renters. A well-maintained, attractive apartment will attract quality tenants.

You have to have a valid cause to evict a tenant. The eviction process is stressful and uncomfortable and should be avoided if possible. You certainly do not want to initiate an eviction when you don't have a legal reason or sufficient proof. Although you may try to avoid going to court, it's always best to prepare your case as if it will.

When you have a tenant in your house, it's easy to develop a friendship. Be cautious about sharing personal or business details. If you ever have to evict your tenants, they may use that information to discredit your claims.

Building a friendship with your tenants can make the situation more difficult if issues arise. While it may foster goodwill, it can lead to misunderstandings where tenants assume that your friendly connection means more flexibility for them.

It's best to keep your landlord-tenant relationship professional, allowing you to handle difficult situations more smoothly, especially when it comes time to issue an eviction notice. You can be friendly, but keep your communication brief and unemotional.

It's unpleasant to evict a tenant, but if they are not paying rent and refuse to leave, you don’t have a choice. Renting property is a business, whether you have one rental unit, four or 24. You became a landlord to earn money with your property. You provide a clean, well-maintained home, and the tenant pays you for it. It's a business arrangement that works best when both parties hold up their end.

The eviction process begins as soon as there is evidence that the tenant is struggling to make rental payments on time, even if you do not end up evicting the tenant. At this point, you need to begin learning how to evict a non-paying tenant, what your local law says about eviction and collecting documentation so that if removing a tenant from your rental property is warranted, you will be ready to move swiftly.

No one wants to be that stereotypical evil landlord who throws people out into the street. There is an emotional component to evicting a tenant from your property that can be difficult to overcome. Unfortunately, if your tenant stopped paying rent, you have no choice but to evict.

Evictions are rarely straightforward. It can be frustrating when a tenant fails to pay rent and continuously makes excuses. By the time eviction becomes necessary, you'll likely have invested a considerable amount of time and emotional energy into the situation.

Here are some tips to make evicting a tenant easier.

Use a Written Rental Agreement

When your tenant moves in, they should sign a written agreement. In that lease, you need to clarify the procedures for late rent payments. Charging a penalty fee for late rent will make tenants take this deadline more seriously. Spell out the eviction procedure in the rental agreement. Your tenant’s signature on this agreement will constitute their acceptance of these terms and give them notice of what to expect if they don’t pay their rent.

Send Late Rent Notices

Any time rent is late, send a written notice to the tenant documenting the delinquency and referring to the terms of the rental agreement. Never let late rent slide. Tenants need to know you are serious about the rental terms and that late rent will not go unnoticed.

Learn the Law

Read up on rental property laws in your state now to stay on top of how things work. Understand the terms of eviction and the legal process for how to evict a non-paying tenant from your property. Find an attorney who can explain it to you, or go to the local court and ask the clerk some clarifying questions.

Screen Tenants Carefully

Require potential renters to fill out an application and wait for you to verify their information before agreeing to rent to them. Call their references to be sure they are legitimate. Credit score is an important indicator of how likely a potential tenant is to pay their rent on time. Talk to their employer about their work ethic and work history. Talk to a previous landlord about their behavior. Do a background check to be sure they do not have outstanding collections issues or other red flags.

Interview tenants when they come to look at the property. Make a note of what questions they ask. People give a lot of signs about whether they will be good tenants. You just have to know how to read them.

Maintain Your Property

A rental agreement is between two parties. The tenant has an obligation to you, as you have to the tenant. Always uphold your obligations to maintain the property and keep the apartment in good repair. If you are responsible for cutting the grass and plowing snow, make sure you do it in a timely manner. Do not give your tenant any reason not to uphold their end of the rental agreement.

Price It Right

A clean, well-maintained property will attract responsible tenants. The other advantage you have is the rental price. A cheaper rent will help you get a tenant faster, but it won’t help you keep them. Instead, use the price to attract better tenants. Pricing your rent a little higher, especially after going through an eviction, will help bring in renters who are financially responsible. The people who can afford a higher rent are making more money and may have a better job or longer work history.

Be patient and wait for the right tenant rather than renting for less to the first person who expresses interest.

How Trusted Support Can Help You Get Rid of a Tenant Not Paying Rent

Eviction is a time-consuming and stressful process, but it’s something that happens more often than you might think. In Pennsylvania alone, there have been 114,167
evictions filed in the past year. Taking these steps can help you avoid becoming one of those statistics. If you do need to evict someone, the process may be easier if you have a property management company to help you collect rent, keep track of late payments and handle the eviction process when necessary.

A professional property manager can also maintain your property for you. They can interview potential tenants , draft rental agreements and handle those late-night calls when the heat goes out. A property manager will communicate with tenants when rent is late or if they are parked on the lawn, keeping you out of uncomfortable situations with your tenants.

For all your property management needs, including tenant eviction, contact AHPM today .

How Much to Charge for Your Rental Property

Tue, 27 May 2025 16:49:00 GMT

When you’re ready to rent your first property, you have the opportunity to make some extra income for relatively little work. However, renting your property, whether it is an apartment or a home, requires ample planning, especially when it comes to price.

Determining the right rental amount can be overwhelming if you aren’t prepared. You want to make sure that the amount you charge for rent is attractive to prospective renters, and high enough to cover your costs and make a profit. There are a number of important factors to consider.

Understanding how to determine the right rental price might seem daunting, especially if you’re not familiar with how to calculate the rental rate for your house or apartment. Luckily, you can easily work out the rental rate yourself. American Heritage Property Management has gathered some information that can help you decide how much to charge to rent your apartment or house.

Determine Your Property’s Worth

Before you can figure out how much to charge for rent, you need to know how much your property is worth and what people would be willing to pay for it. You might be inclined to think that your property's value is equal to the amount you paid for it, but that’s not always the case. While that is part of calculating your property’s worth, there is much more to it.

When calculating your property’s value, you might want to consider these factors:

Comparable property values
Location
Demand

When professionals determine a home's value, they carefully consider each of these details. Realtors and property managers often put together what is commonly referred to as a comparable market analysis. These reports contain the details and information that help create your home’s value.

You can use these factors to determine how much you should charge for rent:

Comparable Property Values

Comparable property values are properties that are similar in size and condition. In addition to those details, appraisers and property managers will include the number of bedrooms and bathrooms when looking at comparable properties.

Sometimes, there isn’t a true comparable unit. In those situations, either the search location is widened or a value is assigned to the feature that is present in one property but not in the other. When you examine each of these qualities, you will have the information you need to accurately determine your property value.

Location

The location of your home also matters. Whether your property would be best suited for a family and is located within a good school district will matter to the renters and will affect the property value. Think about who would be most inclined to rent your home and what advantages will be the most persuasive to them.

Demand

Demand can drastically affect the value of your property. If you have a highly sought-after property, its obscurity would likely increase the value of the home. Similarly, you have to consider if there’s a surplus of similar properties on the market. Why would someone pay more when they could get the same thing for less?

Even though you will not be selling your home, being informed about your property is the first step toward deciding how much you should and can charge for rent. A property manager can help you if you are unsure how to calculate your property’s worth.

Be Wary of a Quick Estimate

There are many online calculators and tools that claim they can tell you the value of your home, but you should exercise caution when using them. They may be able to give you an idea of what your home might be worth, but they aren’t always accurate. The same goes for estimating your rental price.

These tools can be helpful, but you should break down your costs and other features and benefits that would affect the rental price. Online rental rate calculators can serve as an excellent way to double-check your work. However, keep in mind that different online calculators come up with different rates.

Let a Professional Help You Determine Rental Price

If you’re not interested in completing the calculations or aren’t sure what constitutes a true comparable property, the easiest way to determine your home’s value is to have it evaluated by a professional , such as a property manager or appraiser. Your home’s value is used as part of the fundamental rent price calculation.

Having a professional appraise your home will give you an accurate idea of what you can expect people would pay for your home, and it can provide you with peace of mind in knowing that you are charging the right amount. This way, you can feel confident when setting your rental rate.

Remember that although the appraised value is a useful tool in determining your property’s worth, you will be determining your rental rate based on much more than the value of the property alone.

Keep reading to learn what else you should consider when determining how much to charge for rent.

Calculating the Rental Price

Your rental price can be easily calculated using a simple formula. Many professionals use the 1% rule. Essentially this means that you can charge around 1% of your home’s value for rent each month. Though this calculation is typically an estimate, it can put you on the path to finding the right rental price for your property.

For less expensive properties that fall under $100,000, you would use the higher percentage, likely between 1% and 1.1%. Conversely, for more expensive properties, you would calculate the rent using a slightly lower percentage of 0.8%. Using this formula requires you to have an accurate estimate of your home’s value.

It’s important to use the most accurate and current property valuation, so you can be sure you’re using the right numbers when calculating how much to charge for rent.

More Than Just a Mortgage

When you are renting your property, you should make sure that you have all of your costs covered. Think about the costs that go into your monthly payment on your property. Make sure you have included any additional payments , such as your taxes and insurance. If your property has an association with dues, include that fee, too.

Here are some additional costs to consider when you are deciding how much to rent your house for:

Homeowner's Insurance

Homeowner’s insurance is important, especially when you’re the landlord. If you are renting your home or apartment, you should factor your insurance costs into the rental price. As a landlord, you will need a more comprehensive insurance policy, and the extra coverage will likely be more expensive.

Taxes

Unless your taxes are escrowed into your mortgage payment, you will want to add in a monthly amount that will cover your taxes. You can easily break down your annual taxes into 12 months to determine how much extra to add. The extra amount is known as PITI, as it includes principal, interest, taxes and insurance.

Homeowner and Community Association Fees

Additionally, you should include any homeowner and community association or property association fees. Does your property have a monthly fee that you are required to pay? You can pass that cost down to the renter because they will be utilizing the space.

The Importance of Documentation for Knowing How Much You Can Charge for Rent

The details above comprise the information you need to assemble when determining how much to charge.

You won’t need to provide your tenant with a breakdown of how you calculated your rent as long as you are not charging your tenant separate fees, but it is important that you know them so you can adjust them should tax rates or your home value change. Keep meticulous records and have detailed plans.

Budget for Maintenance

Unfortunately, you cannot assume that your tenant will be capable or willing to handle the general maintenance or repairs of the property . Many people are renting with the expressed purpose of avoiding that responsibility. Not only can repairs require the costly assistance of a professional, but the parts or equipment can be expensive, too.

Some professionals recommend that you set aside at least 5% of the gross income from the rental to help offset the cost of repairs or vacancies during renovations or repairs. While you might not want to increase the monthly rent that much, you still need to consider those costs.

Remember that you will eventually need to make some repairs. You might not want to charge your tenant a separate maintenance fee or deductible. A potential negative effect of charging an incident deductible or maintenance fee could occur if your tenants don’t communicate issues to you as they happen because they might not be able to or want to incur the extra charge. Your property could deteriorate as a result of this practice, which is not good for you or the tenant.

Amenities to Consider When Determining Rental Price

When you set your rental price, you should add in any amenities that are included. If you are paying extra for beneficial amenities for your property, but you aren’t including them in your rental price, you could be wasting your money and missing out on an opportunity to make a profit. Use the desirability of the property when fixing your price.

Here are some questions you should ask yourself regarding amenities you may include:

Will you include utilities in the rental price, or will the tenant have to pay that independently?
What about lawn maintenance and snow removal? Will you or the tenant cover that responsibility?
Is parking included?
Will your rental property be furnished?
Will you allow pets? If so, will you simply take a deposit or factor that into the rent?
If you’re renting a condo, are there building amenities, such as a pool or fitness center, that should be considered?

Should You Include the Cost of Amenities?

Depending on your answers to the above questions, you may need to raise your rental price to accommodate the extra amenities. Remember that they would not have been included in the value of your home.

Amenities typically serve as an attractive feature for prospective tenants because they see them as a value-added benefit. There are many other amenities you could consider, and they will vary depending on the property type and extra services available.

Including extra amenities may be attractive to potential renters. If you have a large pool of qualified applicants who are interested in your property, you will know that you have included the right extra benefits at the right price. Amenities are not required, but extras can give you an advantage over your competition.

Putting a Price on Priceless Benefits

Some benefits can’t be assigned a true dollar value. An example of a priceless benefit could be a view — how do you put a price on a view? The ability to have a natural wonder at your doorstep is an amazing feature that simply cannot be found just anywhere. What about peace and quiet? Nature and wildlife? These things will affect the price.

While a view itself, for example, isn’t a tangible item that carries a price, you can adjust your rental price depending on how much accessibility your property offers to the view. If your rental is on the beach, consider how much of the ocean your tenants would be able to see. You essentially charge for that access.

Look back to the pricing of comparable properties. Did the view affect their price? If they have a full, unobstructed view, you will probably find that their rate is more expensive than a unit with only a partial view. If the view could change, say in the event of construction, you have to factor that into the price, as well.

Repercussions of Charging Too Little

You should be careful and purposeful when charging rent. You certainly want to secure a pool of qualified tenants who want to rent your property, but you should be careful not to charge too little. If you don’t charge enough, you may not be able to cover all of your costs. Make a careful decision to ensure you consider little things that you might not have originally thought of when deciding how much to charge for rent.

Costly Maintenance and Upkeep

Even though your property might have been recently renovated or you have a property that could seem impervious to maintenance claims, you still need to budget for surprises. What happens if the power goes out and the sump pump stops working? The result could be a basement flood, which could cause damage.

In that instance, your property insurance could cover your costs, but you must consider costs that the insurance might not cover. Additionally, you still want to perform general upkeep, which can quickly add up if you have not budgeted for those costs when calculating your rent.

Tax Consequences

Additionally, if you charge too little for rent, you could face negative tax repercussions from the IRS. When a rental price is below the fair market value, the IRS will not consider the property a rental property. That means that you will lose out on tax deductions and other tax benefits that come with being a landlord.

This situation frequently occurs when a property is rented to a family member, for example. Many parents would likely not want to make a profit or charge their children full price, but as a result of this practice, they can’t claim the property as a rental.

Be careful when determining your rental rate. No matter who your tenant will be, it is important to be cognizant of how much you are charging and be careful not to charge too little.

Repercussions of Charging Too Much

Although charging too much for your rental property will not carry the same repercussions as charging too little, there are still consequences that can negatively affect your profit margins. Be sure you’re charging the fair market rental price.

One obvious consequence of charging too much is that you might deter would-be renters from considering your property. Your property could be out of their budget or may not seem worth the price if renters don’t see the value of the cost. Charging too much for rent may result in less interest in your property, and a longer period that your property sits vacant.

If you price yourself out of the going rental market rates in your area and cannot find a renter, you won’t be in a position to make any money.

Reap the Rewards of Leasing Your Property

There are a number of benefits to being a landlord. If you choose to rent your property, you can benefit from a number of tax breaks as well as the possibility of earning extra money. It all starts with determining the best rental price for your home or apartment.

Beginning the process of determining the right rental price is the first step in becoming a landlord. Educating yourself on your state’s rental laws and your home or condo’s value, you will be well on your way to being a successful landlord. Learning as much as you can and doing the right research will pay dividends.

Setting the right rental price is an excellent way to begin a great relationship with your tenant. They will find value in the property and in what they are paying without feeling like they’re being cheated. Similarly, you will reap the rewards that come with an income property.

If you’re still unsure or would like some help determining how much you should rent your house for, contact AHPM for a free quote !

Landlord's Guide to Renting to Tenants With Service Animals

Fri, 06 Dec 2024 19:04:00 GMT

Navigating the complexities of renting to tenants with service animals is essential for landlords. This guide provides a comprehensive overview of the distinction between service animals and emotional support animals, legal obligations under the Fair Housing Act and practical steps for modifying lease agreements. It also covers the benefits of accommodating service animals, effective tenant screening processes and tenant education.

By partnering with American Heritage Property Management, landlords can ensure compliance, promote positive tenant relationships and foster an inclusive community. Whether a tenant needs a service dog in an apartment, townhouse or individual home, this article equips landlords with the knowledge and tools to rent to tenants with service animals.

Understanding Service Animals and Emotional Support Animals

Understanding the distinctions between service animals and emotional support animals is crucial for landlords. Learn their roles, legal definitions and landlords' rights and responsibilities under the Fair Housing Act and other relevant regulations.

Service Animal Identification

The purpose of a trained service dog is to assist individuals with disabilities by performing certain and often specific tasks. This could include guiding the visually impaired or alerting those with hearing impairments. According to the Americans with Disabilities Act (ADA), only service dogs qualify as service animals.

Understanding Emotional Support Animals

Emotional support animals (ESAs) are used to support and comfort individuals with emotional or mental conditions. They are not required to have specific or specialized training. The Fair Housing Act (FHA) mandates landlords make reasonable accommodations for ESAs , provided the tenant has a documented need from a licensed health care professional. Unlike service animals, ESAs can be of various species.

Legal Obligations and Fair Housing Laws

Understanding the legal landscape when renting to tenants with service animals is essential. Discover landlords' obligations under the Fair Housing Act and other relevant laws, ensuring compliance while respecting tenant rights and fostering a fair rental process.

Tenant Rights

Tenants with service animals are protected under the FHA , which prohibits discrimination based on disability. Landlords must make reasonable accommodations for tenants with service animals, allowing them to have their animals live with them and assist them within the residence.

Landlords cannot impose breed or size restrictions on service animals, as these animals are essential for the tenant's daily functioning and well-being. This protection promotes an inclusive and supportive housing environment for all tenants.

Rights and Laws Regarding Assistance Animals

Federal laws, including the FHA and the ADA, mandate that landlords accommodate tenants with service animals. State laws, such as the Disabilities Rights Pennsylvania , provide additional protections. By law, landlords cannot deny service animals and service dogs. Tenants would still need to undergo a screening process to determine eligibility, but it is considered discrimination to deny someone purely based on them having a service animal.

Under the FHA, landlords must allow service animals even if their property has a no-pet policy, and they cannot charge pet fees or request additional deposits. Landlords must also make reasonable accommodations for tenants with disabilities, ensuring equal access to housing. The Department of Housing and Urban Development offers additional clarification regarding service animals.

Lease Agreement Modifications

When renting to tenants with service animals, it is essential to create tailored lease agreements to reflect legal requirements and ensure clarity. Examine how to craft effective service animal policies, ensuring compliance with laws while maintaining a fair and transparent relationship with tenants. Knowing how to write a lease agreement is essential to the rental process.

Crafting Service Animal Policies

To accommodate service animals, landlords should modify existing lease agreements to reflect compliance with federal and state laws. Essential elements to include are:

A clear definition of service animals and emotional support animals.
A statement affirming no additional fees or deposits are required for service animals.
Guidelines for maintaining the property and ensuring the animal does not cause damage or disturbances.

What a landlord can require for a service animal:

Documentation from a licensed health care professional verifying the tenant's service animal needs
Confirmation that the animal is trained to perform specific tasks related to the tenant's disability
Assurance that the animal is well-trained and behaved and will not threaten other tenants or property

Ensuring Tenants Understand Lease Agreements

When renting with a service animal, tenants should be aware of key clauses in the lease agreement. Common modifications include adding specific language about accommodations and tenant obligations to maintain an orderly living environment. Some of the aspects in the lease agreement that tenants with service animals should be aware of include:

Service animal definition: Clarifying what constitutes a service animal under the law
No pet fees: Stating that no additional fees or deposits are required for service animals
Property maintenance: Outlining tenant responsibilities for maintaining the property and ensuring the animal does not cause damage
Behavioral expectations: Ensuring the animal is well-behaved and will not disturb or affect other tenants

Screening Process for Tenants With Service Animals

A thorough and compliant screening process is vital when renting to tenants with service animals. Discover the steps to ensure landlords meet legal requirements while selecting responsible tenants.

Steps to Ensure Compliance

Conducting a fair screening process for tenants with service animals involves several key steps:

Review documentation: Verify the tenant's need for a service animal through appropriate documentation from a licensed health care professional.
Assess property suitability: Ensure the property can accommodate the service animal without causing undue hardship or significant alterations.
Evaluate tenant history: Conduct standard background and credit checks to assess the tenant's reliability and financial stability.
Clarify policies: Communicate your service animal policies, including maintenance responsibilities and property care expectations.

Service Animal Benefits for Landlords

Renting to tenants with service animals can offer numerous advantages. These include increased tenant satisfaction and retention, creating a positive community atmosphere and potentially attracting a broader tenant base, all while ensuring compliance with legal obligations.

Advantages of Renting to Tenants With Service Animals

Service animals can enhance the community atmosphere by promoting inclusivity and support for individuals with disabilities. For landlords, accommodating service animals can increase tenant satisfaction and retention, as tenants feel valued and supported.

Additionally, properties that welcome service animals may attract various tenants, including those who prioritize accessibility and inclusivity. This positive reputation can enhance the property's appeal and overall community well-being, creating an agreeable living environment for all residents.

Tenant Education and Support

Educating tenants about service animal policies is crucial. Examine strategies for informing tenants about their rights and responsibilities, ensuring they understand lease agreements, and providing ongoing support to maintain a positive relationship between landlords and tenants with service animals.

Educating Tenants on Service Animal Policies

It's essential to provide tenants renting with a service animal with comprehensive resources and guidance. Offer clear written policies outlining their rights and responsibilities and provide access to relevant legal information. Regularly update tenants on policy changes and ensure they understand the lease terms.

Clear communication promotes trust and transparency, helping tenants feel supported and informed. If you have other tenants in apartment buildings or townhouses, consider hosting informational sessions or providing online or offline resources to address common questions. This proactive approach ensures a positive rental experience and promotes an inclusive living space.

Partnering With American Heritage Property Management

American Heritage Property Management (AHPM) offers expert guidance and comprehensive services to landlords, ensuring compliance with laws regarding service animals. Our team assists in crafting lease agreements, tenant screening and policy development, making the rental process seamless and stress-free. At AHPM, our professional approach helps landlords navigate legal obligations, maintain property standards and foster positive tenant relationships.

By partnering with AHPM, landlords can confidently know that their properties are properly managed and maintained. You will have the support and expertise to accommodate tenants with service animals effectively.

Get assistance renting to tenants with service animals and simplify the rental process and management today. Easily contact us online for further information about how our team can assist.

How to Reduce Expenses on Your Rental Property

Mon, 28 Oct 2024 16:21:00 GMT

Being a landlord has its perks. You earn income by renting out a property you own, and you get to enjoy any appreciation of the value of that property. Rental income is often called a passive income since it arrives each month without you having to put in hours at a job.

But there’s more to being a landlord than collecting monthly tenant checks. One of the things new landlords often underestimate is the cost of owning and renting out property. A standard recommendation is to estimate that expenses for your rental property will be as much as 45 percent of the total income generated by the property in a year.

Although many of the expenses connected to renting out property in Pennsylvania are fixed, there are things you can do to lower your costs and increase the profitability of your rental properties. When looking for ways to reduce rental property expenses , it helps to look at three areas — utilities, maintenance and repairs, and the cost of a vacant rental unit.

The cost of utilities can vary depending on where in the state your rental property is located. Overall, the cost of utilities in Pennsylvania is lower than in other states. But in areas such as Harrisburg , Lancaster , York and Reading , utility costs are higher than the average in the U.S. You have a few options for reducing landlord expenses for utilities such as heat, electricity and water. Sometimes, you might need to spend money upfront to upgrade certain fixtures and appliances. In the long run, those upgrades will lead to considerable savings.

1. Install Low Flow Faucets

The average household uses up to 40 gallons of water per day when showering. Meanwhile, toilet flushes often make up 30 percent of water usage in a household . Swapping out older showerheads for low-flow fixtures can reduce the rate of water used from 2.5 gallons per minute (gpm) to less than 2.0 gpm. Standard sink faucets produce 2.2 gpm, while low-flow models produce 1.5 gpm . Water-saving toilets use 1.28 gallons of water per flush, much less than the six gallons of water older models need.

Installing low-flow faucets ensures that your tenants will naturally use less water, resulting in reduced water bills.

2. Install a Programmable Thermostat

Upgrading to programmable thermostats can reduce heating and cooling expenses, whether there's a central thermostat for the entire building or individual ones in each unit. If you control the temperature, you can set the thermostat to adjust automatically throughout the day based on your local regulations.

For example, in Harrisburg, regulations require the heat to be set at a minimum of 65 degrees between the hours of 6:30 a.m. and 10:30 p.m. from October 1 to May 15. Between 10:30 p.m. and 6:30 a.m., the heat can be set as low as 60 degrees.

3. Clean the Furnace/HVAC

Regularly cleaning the furnace or HVAC system filters has multiple advantages, such as reducing heating expenses. When filters become clogged with dust and debris, the system has to work harder to maintain the desired temperature, consuming more energy. Cleaning the filters at least once a month during the winter months can help the system run more efficiently and lower heating costs.

4. Upgrade to More Energy-Efficient Appliances

Opting to fit your rental units with older appliances, like outdated refrigerators, antique ovens and aging washers or dryers, might initially seem cost-effective. However, investing in new, energy-efficient models can be a smarter choice. Modern appliances make your property more attractive to potential tenants, and they can lead to much lower electricity bills.

5. Install Motion-Activated Lights

As a landlord, maintaining a safe and well-lit environment in common areas is your responsibility. A great way to achieve this while cutting energy costs is by installing motion-activated lighting. These lights automatically turn on when someone approaches an exterior door or yard and turn off when the area is empty. You can also install motion-sensor lights in interior hallways to ensure they only illuminate when needed, rather than staying on 24/7.

6. Consider Having Tenants Pay for Utilities

Another way to lower the expenses associated with utilities is to make tenants responsible for paying for them. Doing so will cut your costs, and it might reduce your tenant’s utility bills. When people aren’t responsible for the cost of their electricity or water, they tend to use more since they can’t see the effect of their choices. Making tenants responsible for their own bills can lead to more energy-conscious decisions.

Wear and tear is expected on any property, no matter how careful and conscientious the tenants are. You can help lower your overall property management expenses by making a few decisions about the design of the space and the materials used. Giving your tenants guidelines to follow can also help to reduce the need for repairs and maintenance.

1. Set Rules for the Property

Although you need to give tenants the right to quiet enjoyment of the home or apartment after they’ve moved in, it’s also within your rights as a landlord to set rules for the property. You can include certain restrictions in the lease so that there’s documentation of them. If you want to minimize wear and tear on the property, a few rules worth considering include:

2. Choose a Simple Paint Scheme

Keeping things as simple as possible when it comes to the paint on the interior of the apartment will help you avoid costly touch-ups or complete redos. It’s a good idea to use the same paint and the same paint color in all of your units. That way you don’t have to keep track of what color goes with what room. It also makes it easy to do touch-ups when needed, as all you need to do is grab the paint can off of the shelf.

3. Make Sure Everything Is Secure

Fixtures that aren’t mounted properly can fall off the wall, leading to damage or even injury. To minimize the need for repairs or fixes, be extra cautious when hanging things like towel racks or shelves in the first place. Use the right type of mounting fixtures for the wall material in your apartments. If needed, make sure you attach the racks, shelves or hooks to the studs behind the drywall.

4. Fix Small Problems Before They Become Big Ones

It’s usually less expensive to handle small issues before they become major concerns. For example, cleaning or replacing the furnace filters monthly can extend the life of your property’s furnace, meaning you aren’t stuck with a sky-high repair or replacement bill. If you aren’t sure that you have the time in your schedule to handle regular upkeep and maintenance on your property, it can be worth the expense of hiring a property management company to keep up with maintenance .

5. Rethink Flooring

Carpet might seem like an inexpensive flooring option, but it can be a maintenance nightmare. It’s challenging to get spilled food and drink stains out of the carpet. It’s also challenging to remove tracked-in mud and other discolorations from carpeted floors. For a rental property, a laminate floor that can be swept, vacuumed and wiped clean is often the way to go.

To further protect the floor in your rental properties, it can be a good idea to keep a shoe rack near the entryway of each home. You can’t compel your tenants to have a shoe-free home, but you can give them a gentle nudge in that direction.

6. Be Strict About Repairs

Understanding what landlords must do for tenants and what isn’t required can help you minimize your expenses. You have to provide a home that is safe, habitable and sanitary. That typically means that the tenant has access to heat, hot and cold water, a solid roof over their head and access to functional electricity.

It does not mean you must provide the latest appliances, the trendiest wall colors or details such as shiplap paneling. If a tenant asks you to make specific cosmetic updates, you can say no. You can also say that they are welcome to make the changes themselves at their own cost.

Ideally, the properties you own will be rented for 12 out of the 12 months in the year. That’s not always the case, though. While you might not think of a vacant apartment as an “expense,” not earning any income from your property for a month or longer is a cost you’ll need to cover. Keeping your apartments occupied as much as possible will help ensure that you have a steady income stream and that you’re not paying for the property’s mortgage and other expenses out of your own pocket.

Getting tenants into the apartment, and keeping them there, is key to keeping your vacancy rate as low as possible.

1. Minimize Turnover

Every time a tenant moves out, you need to spend time and money finding a new person to move in. That includes time spent showing the apartment and time spent screening each tenant. The costs associated with tenant turnover include:

Ways to keep tenants in a property for as long as possible include:

2. Market the Property Effectively

Sometimes, even happy tenants in an apartment need to move on. They might have a new job in another part of the state, be getting married or heading back to school. Some turnover is inevitable.

There are still things you can do to minimize the cost of tenant turnover. It all starts with marketing the property before the current tenant moves out.

A property management company can help you handle the marketing of your rental properties. The company can handle everything from creating the apartment listings to showing the space to prospective tenants. It can also handle the tenant application and screening process for you.

Ideally, you’ll start marketing and showing the property before the current tenant’s lease ends. You might not be able to get a new tenant into the apartment immediately after the old one moves out, but you can do your best to shorten the length of time the property is empty.

3. Choose Tenants With Care

The Fair Housing Act prevents landlords from discriminating against tenants based on race, color, religion, family status, disability, national origin and sex. Although you are legally required to treat tenants equally, you also have the right to choose which people you rent to based on specific criteria. Specifically, the criteria you look at should give you an accurate idea of whether or not a tenant is likely to be able to pay their rent.

It’s also helpful to understand how a tenant behaved in previous apartments. Renting to a person with a history of damaging walls or floors could potentially make it more expensive for you to be a landlord.

The tenant screening process should include:

Depending on how many rentals you have, tackling all the maintenance, marketing and screening of tenants for your properties might be more than you can handle alone. Hiring a professional property management company can help you with these tasks and may also help you cut expenses.

American Heritage Property Management is a full-service property management firm that can provide tenant screening services and regular maintenance and repairs as needed, saving you money on the cost of day-to-day rental property operations and saving you time.

To learn more about how we can help you save time and money as a landlord, contact us today .

Landlord’s Guide to Tenant Screening

Mon, 28 Oct 2024 15:26:00 GMT

One of the most important steps in running a rental property is learning how to screen tenants who fill out applications for units in your building. So why screen tenants? The screening process involves a series of steps that give you a general idea of each applicant.

Without these steps, you could end up with some tenants who can’t pay their rent. With this tenant screening guide, you can eliminate these problems and run a fully-occupied property.

Tenant screening is a series of steps that make it possible to qualify people who fill out applications for apartments, townhouses, office spaces and residential properties. This way, you can identify reliable renters. When you first meet face-to-face with new applicants, it can be difficult to tell whether an individual is reliable and trustworthy. Even if you ask thorough questions, the individual could still conceal certain traits, such as job-hopping and financial instability.

When you screen a tenant, you can pull up the individual’s records and learn of any arrests or employment instability.

The tenant screening process is essential for gaining the full financial picture of a prospective tenant. If the tenant has changed jobs four times in the last six months, you can see that in the applicant’s job history. If the applicant cannot give an answer that would indicate anything other than an inability to stabilize, you could turn your attention instead to the next applicant. Once a tenant has been properly screened, the chances are low that they will lapse on rent.

Tenant screening also helps you learn basic facts about an applicant and how to identify patterns that would indicate their lack of qualifications. At the same time, it can help you maintain full occupancy and consistent rent payments. For example, if you wish to rent out apartment units in a college town and flip each unit every few years for maintenance purposes, screening can help you find those renters.

Tenant screening allows you to vet prospective renters before you accept them as tenants, ensuring full occupancy and paid rent at your properties. One way to determine if someone will be a good tenant is by examining their prior patterns as a renter, employee and spender. By running these screenings, you can find people who rarely, if ever, miss rent payments or cause problems with fellow tenants.

The greatest advantage of tenant screening is that it allows you to find reliable tenants who will pay their rent on time. If an applicant earns double or triple their rent and has few, if any, credit blemishes, you can tell the individual is financially responsible and unlikely to overspend on frivolous purchases.

Financially responsible people generally never fall behind on rent because they are almost always gainfully employed and have money in the bank. Even if they do lose their jobs, they are likely to have several thousand in the bank to cover the weeks or months that come between them.

Effective tenant screening is important for safeguarding both the value of your property and your reputation as a landlord. By selecting responsible and reliable tenants, you reduce the likelihood of property damage, late rent payments and other issues arising from problematic tenants.

Tenants who respect their living spaces help maintain the property’s condition, which is key for preserving its market value over time. Additionally, a history of well-screened tenants can enhance your reputation in the rental market. Positive experiences shared by tenants can lead to referrals and attract quality applicants in the future, ultimately contributing to a more profitable rental business.

By prioritizing thorough screening, you protect your investment and build a strong reputation that can lead to long-term success in property management.

Screening can also help you reduce the risk of allowing difficult tenants into your property. By screening all the applicants, you can increase the likelihood that you’ll have full occupancy and on-time rent payments. If they have a history of paying rent late or missing payments, you can get that information by speaking with the applicant’s previous landlords.

Before you start looking for and screening tenants, knowing what you legally can and can’t do or ask during the application process is essential. While each state has slightly different laws for landlords and tenants, some are universal.

According to the Fair Housing Act, you cannot deny housing to anyone based on:

However, there are still several legally compliant reasons to reject a potential tenant’s application . You can refuse housing because of:

Insufficient income or an inability to verify income: Based on the rental price, you can create a formula to determine if an applicant has enough income and savings to afford the rent. However, you must apply the same formula to each applicant. Also, you can deny their application if they cannot verify or prove they make the income they claim.
Pets: You can deny a prospective tenant’s application if they have pets. But once again, you must apply the same rule to all applicants. However, you cannot reject an application if the tenant has a service animal .
Smoking: Contrary to popular belief, you can reject an application if the tenant plans on smoking in the rental property. Nicotine addiction is not legally considered a disability, so it’s not covered under the Fair Housing Act.
Poor credit score or too many debts: Even if your applicant makes enough income, they may have a poor credit history and a significant amount of debt. This could affect their ability to pay rent in the future. To ensure you apply the same rules to each applicant, create a formula to determine if the applicant has a sufficient credit score.
Unsatisfactory references from previous landlords or employers: Many landlords require a prospective tenant to provide a few references along with their application. If some or all of the references aren’t favorable of the applicant, you are legally allowed to deny the application, as long as you hold all the other applicants to the same standard.

When an interested party answers your ad or comes to your office to inquire about open townhouses, apartment units or office space, a few key questions can help you determine whether or not the applicant would be a responsible renter. To gain the necessary information, know what to ask prospective tenants. Before you process an application, pre-screen the applicant by gathering the following information:

1. Reasons for Moving

One of the most important things to learn about a prospective tenant is the person’s reasons for moving. Is the individual looking to live in a more convenient area for their work or daily activities? Did a change in jobs prompt the move?

This would also be the time to ask for contact information for the applicant’s current and prior landlords. If the applicant has a spotty record as a tenant, the prior landlord might be more forthcoming about the details. The current landlord, by contrast, might simply wish to see the tenant leave as soon as possible and withhold details just to get that person off the property.

2. Employment Status

It’s crucial to know about the applicant’s employment and financial situation before you hand out paperwork and process an application. Is the individual currently employed? If so, how long has the person been with their current employer? What is the individual’s monthly income? A tenant should earn between double and triple the monthly rent amount.

If you accept applicants who live on static fortunes or receive rental assistance benefits, you must know about the individual’s net value.

3. Credit Standing

An applicant’s credit score can say a lot about the individual’s financial responsibility and ability to meet payment obligations regularly. Does the applicant have any credit blemishes, such as unpaid balances or loans? This would also be the time to ask whether the applicant is ready and willing, if accepted, to pay any upfront sums, like the security deposit or first month’s rent.

4. Living Arrangement

The size or type of rental space could limit the number of people who could live there. For example, if you rent one-bedroom units in an apartment building, no unit should be occupied by more than two adult applicants.

You will also need to be upfront about your policy on pets. If you don’t allow pets, inform each applicant about this policy during your initial discussion. Even if someone does not currently have a pet, they might consider getting one, depending on the policy of their current residence.

5. Ability to Comply With Noise Restrictions

A person’s noise habits could impact whether they would make a good fit for an apartment, townhouse or office space. If the place is occupied by quiet
tenants, musicians and party-hosts might not be good fits.

6. Questions the Applicant May Have About the Neighborhood

During your initial conversation with a new applicant, provide information about the neighborhood and ask if they have any questions. If the applicant does not have a car, nearby bus availability could be a deal-breaker, especially if the person needs to take a bus into town daily. If the end of the block has a bus stop that leads directly to town, point that out to the applicant. If the applicant is unfamiliar with the neighborhood, mention any nearby parks and supermarkets that would enhance the convenience of living at the property in question.

Knowing how to select tenants is crucial to running a rental property. You can ensure a reliable tenant roster by using a stringent tenant selection guide. From the initial contact to the final approval, you can accomplish this with a tenant screening checklist:

The following tips for screening prospective tenants should be followed in sequence each time someone applies. More details on each of these steps are as follows:

1. Create a Set of Screening Criteria for All Tenants

To screen tenants who apply for townhouses, apartment units or space in an office building, you will first need to establish a set of screening criteria. This way, you will have a list of qualifications that you want to be met before you can accept a given applicant. The purpose of having a set of screening criteria is twofold, as it makes the screening process uniform and straightforward while also protecting you, the landlord, from accusations of discrimination.

2. Advertise Your Rental Units

You must advertise the building in your local area to find applicants for your rental units. It is important to advertise in any media that would attract the attention of serious potential renters. By advertising, you could bring each opening to the attention of people who might otherwise never scope your end of town. Many of these people might turn out to be among the most qualified applicants in your local community.

3. Pre-Screen Interested Renters

The screening process should include some form of pre-screening to identify those who might be good tenants. This way, you can save time and reserve appointments and property tours for tenants who do make the pre-screening cut. Key financial questions should be raised during this initial pre-screen.

For example, if an interested renter is unemployed or has a recent history of drugs, crime or eviction, you may want to inquire further. On the other hand, if the prospective applicant is gainfully employed and has a good credit score and a glowing recommendation from their previous landlord, you could go forward with the process, knowing that negotiations could be fruitful for both parties.

4. Show Your Rental

You can conduct tours of your rental property in several different ways. The most obvious way is to take each applicant on an individual tour of the house, townhouse, apartment unit or office space that is open for rent. Another method is to take assorted applicants on a tour simultaneously, such as holding an open house on a specific day. You could even arrange your appointments in blocks, having several individual tours back-to-back on select days of the week. The last option might be preferable if the property is situated across town from your business headquarters.

5. Communicate All Necessary Information

As you’re giving the tour, take advantage of the face-to-face time with the applicant. Ask questions and get to know them a bit. Now would also be a great time to communicate more specific information about the rental, like your policy on having pets, which utilities are included, which aren’t, any application fees, parking information and guest policies.

Some tenants may not think to ask for this information, so it’s important you volunteer it to make sure they have all the details they need to make an informed decision.

6. Collect Rental Applications

Once an interested renter has passed the pre-screening qualifications and expressed their interest upon viewing the place in question, the next step will be to take that person’s application. At this point, you will need to clarify any additional documentation that the individual will need to submit, along with the application, for processing purposes. Examples of additional documents may include recent pay stubs and the applicant’s I.D. or driver’s license. Once the applicant hands in the paperwork, give each page a once-over to ensure the applicant fills out every line properly.

7. Conduct a Background Check

With the applicant’s paperwork in hand, you will now have all the necessary documentation to run a background check on the individual. When you run the user’s Social Security number through the system, you will know within minutes whether the individual has a good credit score or a debt history. When you submit the information about the applicant’s previous addresses to a third-party investigator, you will likely get a call back within an hour about whether the applicant has or has not been evicted from a property in the past five years

8. Verify Applicant Details

In addition to running a formal background check on the applicant to ensure the individual meets the proper requirements, you will also want to get some personal feedback from the parties who interact directly with the individual — their current landlord and employer.

Has the applicant been an upstanding tenant who always pays rent on time? Have there been any disturbances or complaints involving the individual?

9. Select Your Tenant

If the applicant meets all the pre-screening, background and personal criteria, you might be ready to accept the applicant and arrange a move-in date. Then again, you might have received applications from several hopefuls simultaneously and now need to whittle things down to one candidate.

10. Issue Adverse Action

Once you have narrowed the candidates, you must inform them of your decision. The formal process for notifying applicants that you have selected someone else is to issue an adverse action.

11. Welcome Your New Tenant

Now that you have chosen an applicant, it’s time to welcome the person as your new tenant. This will be when you arrange the move-in date and accept the security deposit. If the individual is set to move in immediately, you will also collect the first month’s rent and hand over a copy of the keys to the townhouse, apartment unit or office space. From here on out, it will be a matter of collecting rent monthly and inspecting the space for maintenance purposes annually.

Managing rental properties can be challenging, especially regarding tenant screening. Without proper screening, you could end up with tenants who don't pay their rent on time, cause damage, upset neighbors or even violate the lease terms. American Heritage Property Management offers professional tenant screening services that help property owners avoid mistakes.

By partnering with American Heritage Property Management for your tenant screening process, we can assist you with:

Review tenant background checks
Oversee a national criminal history investigation
Review prior landlord references and eviction history
Evaluate their credit scores
Verify their employment status

Our team understands how to screen tenants. We do not take any shortcuts, and we follow the steps with extreme due diligence to ensure we find the best tenant for your property.

Our team's extensive experience and attention to detail reduce the risk of problematic tenants and minimize the likelihood of your property standing vacant, protecting your investment in the long run. With American Heritage Property Management handling tenant screening, you can have peace of mind knowing that we will assist in finding a suitable, reliable and worthy tenant for your property.

As a comprehensive property management provider, we offer a 360-degree approach to managing communities and properties. With decades of experience and a dedicated and passionate team, we're here to assist you with the following:

Marketing: Attract quality tenants with our targeted strategies.
Tenant selection: Benefit from comprehensive screening for reliable renters.
Maintenance: Ensure smooth operations with proactive management .
Rent collection: Enjoy hassle-free, consistent rental income.
Evictions: Handle complex situations efficiently and professionally.
Regional focus: Benefit from local offices for market-specific service and support.

Contact American Heritage Property Management Today

For rental properties, tenant screening is one of the most crucial aspects of filling townhouses, apartment units, rental homes and office spaces with reliable renters. That said, the process is complex and often difficult for landlords to accomplish independently.

At American Heritage Property Management , we provide tenant screening and selection services for landlords in central Pennsylvania and Maryland. Contact us today to learn more about how we can help with your tenant screening processes.

Landlord's Guide to Writing Lease Agreements in PA

Fri, 16 Aug 2024 16:14:41 GMT

Your property is all ready to be rented out, and you've found a tenant who seems like a reliable renter after tenant screening . The next step is to have them sign a lease agreement, put down their security deposit and first month's rent and move in.

Before your new tenant can sign, though, you need to learn how to make a lease. Think of a lease as a way to protect yourself and your rental property in case something goes wrong. A lease can also protect the tenant, as it spells out their rights and what is expected of each party.

Lease laws can differ from state to state. If your property is located in Pennsylvania, here's what you need to know to put together a lease that is in alignment with the PA rental lease agreement laws.

A lease is a contract between two parties that defines the conditions and terms under which a tenant will inhabit a property owned by a landlord. A lease can be a written or oral agreement. In Pennsylvania, leases for terms of more than three years need to be written . A lease for a term of fewer than three years can be made orally.

Although you're within your rights as a landlord to create an oral lease with a tenant who plans to rent from you for a year, it is usually in your best interest and in the interests of your tenants to use a written lease. With a written lease, there is concrete documentation of the terms you and the tenant have agreed to. If any questions come up, either you or the tenant can refer to the written lease to find the answer.

Leases are sometimes confused with rental agreements, but the two aren't exactly the same. Usually, a rental agreement is a short form contract. It might last for just a month, or in some cases, for an even shorter period. At the end of the rental period, a tenant and landlord can decide to renew it. The tenant can also decide to move, or the landlord can decide to make changes to the contract, such as increasing the rent. Rental agreements offer flexibility but aren't always the right choice for a tenant or landlord.

The term of a lease is generally longer, usually for at least six months and often for at least a year. One of the benefits of a written lease is that it provides you with some reassurance that your property will be occupied and rent will be paid for a specified amount of time.

Length of the agreement aside, rental agreements and leases usually contain similar information, including the amount of the rent, when it is due and who is responsible for utilities.

What Are the Different Types of Lease Agreements in Pennsylvania?

The state of Pennsylvania allows landlords to offer three different lease agreements:

Residential Lease Agreements

Residential lease agreements have a specific start and end date, and the tenant pays monthly rent. A residential lease agreement will continue until either party gives a termination notice at least 30 days before the lease ends.

Commercial Lease Agreements

A commercial lease agreement is a contract between a landlord and a business tenant to rent a commercial property. They can include options like a gross lease, net lease and percentage lease, which enables businesses to find a rental option that meets their needs.

Month-to-Month Lease Agreements

Month-to-month lease agreements are typically for residential properties and tenants who need to relocate quickly or are unsure of their long-term plans. With a month-to-month lease agreement, landlords can easily adjust the rental price to meet current market conditions.

You can easily find a lease agreement template online to use with your tenants, but it's not always best to do so. The template might not include everything you want, or it might not be in line with Pennsylvania's rental rules.

Writing your own lease is usually the way to go, though you can also hire a property management company to take care of lease preparation to take some responsibilities off your shoulders.

In general, the more detail and information you include in your lease, the better the lease can serve you and the tenant. You want to minimize the chance of there being any confusion or disagreement later on. At the minimum, your lease should include:

Identification: The identification section is usually the first part of the lease and should state who the agreement is between — including the names of the tenants and landlord and the date of the agreement. It should also identify the property that is going to be rented out and its address.
Lease term: The lease term is how long the lease will last, such as 12 months. The lease should specify the exact start and end dates of the agreement as well as any options for renewal. For example, some leases switch to a month-to-month agreement after the initial term is up.
Amount of rent: It's important to state how much rent is each month.
Due date of rent: The lease should also specify when rent is due, such as the first day of each month.
Information about late fees: Pennsylvania doesn't have specific rules about late fees, and many landlords do charge a fee if a tenant pays late. Although you aren't required to, you might offer a grace period, such as three to five days, after which a late fee applies.
Deposit details: In Pennsylvania, you are allowed to collect a security deposit from a tenant of up to two months of rent during the first year or one month's worth of rent in subsequent years. If you are going to collect security deposit funds, you should list the amount and include details about the deposit. What will the tenant need to do to get it back at the end of the lease? What factors can reduce the amount of deposit that you return?
Occupancy: The lease should include information on subletting and occupancy in the property while a tenant lives there. For example, only the person named on the lease might be allowed to live there. Or, the tenant might be allowed to have roommates or family members who aren't on the lease live there, too. You can also include details about overnight guests in this section.
Landlord responsibility and rights: The list of your responsibilities and rights should include details such as when you can enter the property, how tenants can get in touch with you if they need something repaired and the timeline for repairs. It should also state that you have the responsibility of maintaining the property in a livable condition.
Tenant responsibilities and rights: The list of tenant's rights and responsibilities should detail what they are allowed to do while living at the property, what is expected of them and what they are entitled to. It can list the utilities the tenant is responsible for paying and what can happen if they do not pay.
Details about the end of the lease: The lease should include a section that explains the process for terminating the lease. It should detail how much notice is required and what might happen if a tenant or landlord needs to end the lease early.
Disclosures: Depending on the property, you might need to provide the tenant with information about mold or lead-based paint. The landlord disclosures section of the lease states that you did so.
Legal details: The lease should include a section that states that it was made in accordance with Pennsylvania's governing law. If any part of the lease contradicts the law, the law will replace that part without nullifying the entire agreement.
Signatures: Include a place for the landlord and tenants to sign the lease.

When preparing a lease in Pennsylvania, it helps to focus on making it easy to read and comprehend. You can do that through the word choices you make and in the way you format the lease. To make it skimmable, create section headings for part of the lease and break up the sections into paragraphs. Some steps to follow when creating a Pennsylvania lease agreement include:

1. Use a Template

You can use a lease agreement template from legal websites or state-specific resources to build your document. Once you find a template that works for you, customize and review it to ensure it includes all necessary clauses and agreements.

2. Consult a Lawyer

Taking the time to research and consult with a lawyer who specializes in writing lease agreements can prevent future issues with tenants.

Once you schedule a meeting with a lawyer to discuss your lease agreement, prepare all necessary documents and details. You can also use your consultation to ask any questions regarding legal terms or if you need clarification on any clauses and obligations. Once you answer any questions or make any necessary adjustments, you can have your lawyer review your agreement to verify that it is legally compliant and best protects your interests.

3. Include All Necessary Information

Before you present your lease agreement for the tenant to sign, ensure you have all relevant details about the tenant and the property ready. This information can include the lease term, lease renewal options, and the due date for rent. Check that fees, like the security deposit and utilities, are clear in the outline.

Additionally, if you have specific policies such as maintenance, pet restrictions and eviction protocols, you will want them to be clearly written in the lease. Ensure the lease includes legal requirements like fair housing laws and any disclosures about lead paint hazards.

While Pennsylvania law only requires written leases for rentals of more than three years, a written lease can protect you from legal issues and concerns in a few ways:

Demonstrating legal knowledge: A written lease tells the tenant that you understand and take seriously their rights under Pennsylvania state law. When you include details about the security deposit, lead paint and occupancy rules in the lease, you demonstrate that you understand the law. Having a written lease that clearly lists tenant rights under the law helps ensure both parties are on the same page, avoiding potential communication breakdowns later on.
Establishing financial protection: A written lease also gives you a measure of financial protection. If you decide to charge late fees, the lease should list the amount of the penalty and when it applies. If a tenant is late on a payment and refuses to pay the fee, you can always refer back to the lease.
Accounting for different situations: With a written lease, you can plan for the scenarios a tenant might throw at you. For example, you might not want to allow pets on the property, as they can cause damage and can be difficult to clean up after. Even if the tenant doesn't have a pet on the day they move into the property, it is still a good idea to include a clause in the lease that states "no pets." That way, they will know that getting a dog or cat in the future isn't an option, at least for as long as they are living at your property.
Requiring renter's insurance: You can also include a clause in the lease that requires a tenant to have renter's insurance. Requiring renter's insurance and making that requirement clear in the lease may protect you from being liable if there is an accident or other issue with the tenant's property.

If you have never prepared a lease before and are doing it on your own, it can be a good idea to work with an attorney who specializes in residential real estate and understands landlord-tenant laws. Your attorney can explain what can and should go into the lease and what shouldn't. They'll help you produce a contract that protects your interests while following Pennsylvania law. A property management company can also work with you to help you put together a contract that meets all the requirements for a valid lease.

Who should sign the lease first: the landlord or the tenant? It's usually best to have the tenant sign first for a few reasons. The first is that there is a chance that a tenant might be slow to reply after getting a copy of the lease. If they are unresponsive, and you haven't signed the lease, you can move on to another prospective tenant. You can have the prospect sign a lease and pay their deposit, then finalize the contract by signing it yourself. But if you send a tenant a lease that's already signed, you run the risk of renting out the property twice if the first tenant takes their time replying.

Another reason to have the tenant sign first is that doing so lets you review any changes they make to the lease before it becomes final. A tenant might cross out a clause or change the late payment amount. If you have yet to sign the lease, you can stop the process and talk to the tenant about the changes they made before it is finalized. If you've already signed, the tenant could claim that you sent the lease to them with the clauses crossed out.

You have a few options for delivering the lease to a tenant. You can have them come to your office to sign a paper copy, or you can mail or hand-deliver a paper copy to them. You can also put the lease online and have them sign digitally.

After the landlord and tenant have signed the lease, everyone should get a copy of it for their records. If the lease term hasn't started yet, the tenant will need to wait to get the keys and begin moving in. Before they get the keys, they will need to pay their first month's rent. It can be a good idea to walk through the property with the tenant before you give them keys, making note of any issues. Taking pictures before the person moves in can help you document any property damage that occurs while the tenant is living there.

Once the lease is signed, it's binding. The tenant needs to follow the rules outlined in the lease and you need to make sure you're providing them with a habitable place to live.

When you create a lease agreement, it's important that it abides by Pennsylvania state law and respects the rights of your tenants.

If you've never written a lease before , American Heritage Property Management is here to help. We offer property management services in Pennsylvania and Maryland and have been doing so for nearly 40 years.

What To Do If A Tenant Doesn't Pay Rent

Fri, 16 Aug 2024 15:30:59 GMT

In recent months, all of us have had to face new "What if" questions. In particular, property owners and landlords have had to manage the question, "What if my tenant doesn't pay their rent on time?" Renters are contractually obligated to pay their rent, and breaking this lease agreement can lead to serious consequences.

As a landlord, it's your responsibility to manage your tenant's payment status and contact them if they are late on rent. Notifying your tenant can have uncertain outcomes, but you can handle the conversation strategically to avoid negative repercussions.

As a landlord, you need to be prepared to handle a tenant who isn't paying their rent. Knowing exactly what to do and following through on the consequences will enforce the rules that all your tenants must abide by. For this reason, it is crucial to organize a plan to contact, negotiate and even take legal action if necessary.

Read more to learn what to do when a tenant stops paying rent

Determine if the Rent Is Actually Late

In most rental agreements, landlords require tenants to pay their rent by the first of the month. There may be some exceptions in instances such as:

Holidays and Weekends

If the first of the month is a weekend or holiday, rent payments are generally due the next business day. For example, if the first of the month was on a Saturday, rent payments would be due Monday.

ACH Transfer

Most landlords have tenants pay rent online, which uses an automated clearing house transfer (ACH) to transfer funds from the tenant's bank account to the landlord's account. There may be times when the tenant transfers funds on the first, but they do not appear until the next business day.

Check the Mail

While most landlords prefer online payments, some still take rent payments through the mail. Landlords and tenants have no control over mail delivery speeds, which means a landlord may not receive payment until the fifth or sixth of the month. Typically, if a rent payment has a postmark for the first of the month but the landlord does not receive it until the fourth, the tenant can still claim that they paid their rent on time.

Grace Periods

Depending on local and state laws, the landlord may have to give a grace period before officially determining the rent is late or charging a fee. Pennsylvania and Maryland do not currently have laws requiring landlords to provide a grace period, which means landlords can set their terms for late payments, including how much they charge.

If none of the above applies to your situation, you will need to take action to collect your rent payment. Before taking this next step, review the rental agreement for your pre-determined grace period or late fees. Once you have all of your information in place, you can move forward with collecting a payment or the eviction process.

Contact Your Tenant

Before reaching out to your tenant, consider their payment history. Have they consistently been late with rent payments before, or is this their first time? Check the payment history and recorded documents you have for this tenant. It is quite possible that you overlooked a payment sent on time. You don't want to have this conversation if it's not completely necessary. Human error is bound to happen, so double-checking is always best before contacting the tenant in question.

Once you've gone through your documents, that information will help you decide the best way to take action. In the best-case scenario, if this is someone's first time being late with their rent, you will contact them, and they will explain that they've forgotten or there was an error with the payment method or account.

You can resolve this with a warning or a late fee if your local and state laws allow it. However, if you're dealing with a difficult tenant, it's time to discuss the best plan of action moving forward. Think about your tenant. Which of the following points of contact seems like the best fit for your tenant?

Call Your Tenant

A simple phone call could be all you need to settle the payment situation if your tenant is someone who isn't regularly behind on rent. Before you call, assess any late fees they owe and calculate the total amount they need to pay. Then, you can communicate that they are late on their payment and explain that the fee enforces the rules that were contractually agreed upon at the beginning of their rental agreement.

Verbalizing an exact price will avoid any confusion with what your tenant needs to pay on time. During the phone call, give a clear due date for which the tenant is expected to pay the included late fees.

Send A Late Rent Notice

As a landlord, it's always important to get everything in writing. This rule applies when dealing with tenants who have a history of not paying rent on time. Sending a late notice for rent is a gentle reminder to someone that their rent is past due. When writing a late rent notice, it should always include a clear message with the following points:

When their rent was originally due
How much rent your renter owes
What late fees you will charge
What will happen if they don't pay the rent
How to contact you with any questions or concerns

There is more than one way to deliver a letter of notice to the tenant. It can be given in person, attached to their door, sent by mail or in an email. Along with sending a hard copy, also send an electronic copy to their email increase the chances of the tenant seeing the message sooner.

You should always keep a copy of the notice letter for your records too. This letter can serve as evidence of when and where you contacted a tenant with a warning notice about their late rent. That way if the issue escalates you will have written proof that you notified the tenant before taking legal action.

Send A Pay or Quit Notice

For tenants who have been consistently late on payments or not paying their bills at all, you may need to resort to a more serious form of contact. Similar to a late rent letter, the pay or quit notice acts as an official letter informing your tenant that they are late on rent payment and how much they owe.

Along with notifying the renter, this form also serves as the official first step of the eviction process. During a court hearing, this document will be evidence of when, where and how much the tenant owes you.

Every state has different laws regarding how much time the tenant gets between receiving a pay or quit notice and paying their landlord. For example, both Pennsylvania and Maryland do not grant a grace period after rent is late.

Check your state and local laws to confirm the renter's rights before sending a pay or quit notice to avoid any misinterpretation or unnecessary legal action.

No matter what type of contact you choose, acting quickly and consistently to enforce the rules is your role as a landlord role. Reach out to your tenant about their late rent payment and come to an agreement before the situation feels out of your control. There may be an easier solution than you realize.

Remember to always keep a record for yourself, whether it's a copy of the notice or a printed record of the phone call. A paper trail will be beneficial if the circumstances escalate to an eviction case.

Offer Tenants a Cash for Keys Option

After discussing the options with a tenant or receiving no response at all, it could be in your best interest as a landlord to offer cash for keys . This means you would pay your tenant to move off your property as soon as possible. For whatever reason, your tenant's financial situation may no longer allow them to be the best renter for your rental property. Many tenants in this situation will accept the money as a motivation for moving out and finding a new living situation.

Although cash for keys seems like you're encouraging someone's bad behavior, this option is beneficial for everyone in the long run. A renter is not reliable if they are consistently late with payments or not paying at all. You do not want to waste time or money on someone who cannot fulfill their commitment in the first place. Offering them a way out not only saves them the hassle of paying, but it also allows you to find a better, more consistent tenant for your rental property sooner.

Negotiating a cash for keys option with an unwanted tenant will get them out of the property quickly, and it'll help you avoid the eviction process as well. Ultimately, you will save money and time removing the tenant without the hassle of going to court.

Follow the Eviction Process for Landlords

If your tenant is causing serious problems and neglecting to pay rent, then it's in your rights as a property owner to evict. However, changing the locks on someone, turning off their utilities, or harassing them off the property is never the correct approach. These actions are illegal and considered morally questionable.

The proper way to handle an eviction is through the court system. Legal action is the only way to ensure a determined outcome of the case. Start this legal process by following the steps below and learn how to evict a tenant who doesn't pay rent.

Learn about Eviction Law

As a landlord, you should have a basic understanding of your rights and jurisdictions, especially when it comes to evicting a difficult tenant. Laws change depending on the state, so if you own multiple properties in different states, it's important for you to know the regulations of each one.

Eviction laws are subject to change with circumstances like the COVID-19 pandemic . New laws are put into place by lawmakers to protect both the tenant and landlord during unprecedented times. In a short amount of time, these laws can change, so knowing your property owner rights from that start will make a huge difference. Educating yourself on eviction laws and your rights will make the process easier and help you prepare for an eviction case.

Gather Your Important Documents

From phone records and emails to unofficial late rent notices and pay or quit notices, all these documents can stand as pieces of evidence. Each document collected stands as a record that you communicated with the tenant about their rent status. Along with this information, their signed lease will show that they are contractually obligated to pay rent at a certain time every month.

In court, you can use these documents as proof of your history with the tenant. Any evidence showing your tenant is no longer fit to rent your property will strengthen your case.

Hire an Eviction Lawyer or a Property Manager

Find a professional to help you manage your records and present your case to the court. A lawyer or experienced property manager knows how to handle a variety of eviction situations. American Heritage Property Management's eviction service providers will protect you from liability with their knowledge of the laws and regulations in Central Pennsylvania and the Baltimore, Maryland areas. With their expertise, you can take some of the stress away, prepare a case with confidence, and still focus on the day-to-day tasks of being a landlord.

Take Your Case to Court

Once you align with a lawyer or property manager service, like AHPM, and have all the correct documents in place, it's time to file your case to the court. Since the pay or quit notice is the first official step in the eviction process, you'll need to wait until that due date has passed to file your case. You must grant the tenant the full grace period.

However, if there is still no payment or response after that time, you can proceed to the second step of the process. Once you submit everything and it gets accepted, you'll receive a court date.

During the waiting process between filing for eviction and the court date, do not accept any payment from the tenant if it's not the full rent amount including late fees. If any money is taken, the court may see it as grounds for rejecting the eviction case and you'll have to start the process over again.

Go to Court

You and your tenant will arrive at court on the scheduled day to state your cases. The judge will hear both sides of the eviction case and make a decision based on the facts presented. Overall, the verdict will be based on whether or not the delinquent tenant provides evidence that they have paid their rent. The actual court case will not take too long, but the process to get there is why landlords try to avoid going through an eviction, especially without help from an eviction lawyer or property management agency.

If you do not show up to court hearing on the date scheduled your case will be null and void. However, if your tenant does not attend the judge may rule without hearing their case. Although the eviction process may seem time-consuming and daunting with your money and energy, the court's outcomes are completely justified with the laws and regulations of your state. This is the best way to remove a delinquent tenant from your property.

Help the Tenant Move Out

As soon as the eviction process is complete and the court approves you to remove the tenant, you still need to take precautions. For example, never evict the person yourself. This could lead to other legal issues.

You should consider hiring a professional moving service and a locksmith to settle the arrangement with the tenant, which a property management agency can help with. These experts will know how to handle the situation and they are protected under the legality of their occupations.

The goal is to remove the tenant as quickly and efficiently as possible, try not to worry about the added costs, and always keep the receipts during this process. Even though you're paying for these services, you can try to settle the costs in court. Just think: the sooner your property is unoccupied, the sooner you can find a paying tenant to fill the space.

Contact American Heritage Property Management For Help

As the largest scattered site property management agency in Central Pennsylvania, AHPM oversees 3,300 properties. Paired with our 41 years of management experience, we assist landlords around the Pennsylvania and Baltimore Metro area with tenant screening, rent collecting, tenant eviction, and more.

Let the experienced professionals at AHPM help you manage, organize, and work out the stresses of owning an investment property so you can focus on the growth of your business. Contact AHPM today to prepare a plan for tenants who do not pay their rent on time , and avoid the stress of going through the eviction process alone.

Questions to Ask a Property Management Company

duncan.shea@appfolio.com (Appfolio Websites) — Fri, 16 Aug 2024 15:18:59 GMT

As a property owner, you want to find a property management company to help you maintain your investment. Before you meet with them or review their website, have some questions on hand to ask them about their business and reputation. This guide includes some questions to ask before hiring a property management company.

When you work with a property management company, you should know who they are and what services they offer. Here's what to ask property managers about their business:

How many properties do you manage? You should know how many properties the company operates to see how well they can keep up with the competitive industry's high demands. At American Heritage Property Management, we have 3,100 units under management . We also have eight offices to help offset the load of dealing with all those tenants and landlords.

Do you handle short-term or long-term rentals? A responsible, caring company can successfully manage both short-term and long-term rentals. A long-term property involves staying in an apartment complex or single-family home for several months or years. On the other hand, a short-term property is usually a vacation home or apartment where tenants spend a few weeks at most. At AHPM, we manage both long-term and short-term properties .

How long have you been in business? A property management company that has been successful for several decades can provide the resources and expertise you need to help maintain your investment. Since American Heritage Property Management has been in business for over 35 years , we've established a positive reputation throughout Central Pennsylvania and Baltimore .

Who is my point of contact within the company? Find out who works for the company and who to contact if you need assistance. We have eight offices throughout Pennsylvania and Baltimore , with personnel who are available 24/7. Each location has a designated property manager to answer any questions.

What services do you offer to your clients? This question ensures the property management company is reliable and can help you with all your property's needs. At AHPM, we offer maintenance, rent collection, tenant screening, marketing, lease preparation, accounting and eviction process services to help you care for your property. You could sign up for any or all of our services, depending on your business needs.

Do you offer real estate services? Our team at Homesale Realty features thousands of real estate experts who can help potential tenants find your property and help you market your property to appeal to your ideal audience.

What will be my level of involvement as an owner? The property manager is the go-between entity for the landlord and tenant, and this relationship works best when you, the property manager, have a majority of the control. For example, when AHPM first takes control of your property, we will complete a thorough walk-through of every building to determine what needs replacing or updating and give you the final say as to which updates we undertake and when we complete them.

How many staff members do you have? The size of the property management company can give you an idea of how many members they likely have on staff and if they have enough to meet your needs. At AHPM, we have 17 property managers, which allows us to have plenty of staff available to meet your needs.

A property manager should know how to screen for tenants to ensure reliable people live in your residential building. Here are some questions to ask the property management company about their tenant screening process:

Do you run background checks on tenant applicants? Running a background check on prospective tenants allows you to get an idea of who's applying to live on your property. At AHPM, we offer tenant screening and selection services , taking care of running background checks to maintain your respectable community and protect your investment.

What do your background check requirements for applicants involve? You and the property manager should be on the same page regarding the income requirements for the tenants renting your property. As part of our tenant screening and selection services, we conduct an extensive screening process, looking for employment verification, credit, eviction history, criminal history and references from prior landlords. We can collaborate to ensure the approved applicants comply with your property's standards.

As an investor in residential property, you should find a property management company that helps you keep track of your income and expenses. Ask property management the following financial questions:

Are your fees a flat rate or a percentage taken from rent? Since you'll be getting help from the property management company, you can expect to pay a fee of some sort. At AHPM, we calculate our rates based on a percentage of your rental income across all your properties. This system allows you to pay us only when you make money and gives you a precise amount to plan in your budget.

Who manages our expenses and funds? The property management company should help you with your budget. If you choose to invest in our accounting services, we can handle all your payments to keep your account updated.

How do tenants pay rent? You should probably find out how your tenants will pay rent so that you'll know how you get paid. At AHPM, we feature a convenient online portal for tenants to pay rent. If you're having issues receiving rent from some tenants, we also offer rent collection assistance services to ensure you receive your money on time.

How do you determine the rent amount? An experienced property manager will know how to find the highest possible rent amount for a property by considering factors such as comparable listings, local amenities and the property's value.

Are there any fees for ending a contract early? Before signing any contract, take time to fully understand the terms listed and write down any questions to ask a property manager. If your needs change before the contract ends, you want to ensure the property management company can help you find a solution.

Maintaining and inspecting your property is necessary to keep it in excellent condition. Here are some questions you can ask property management about how they handle repairs and routine inspections:

What do you do when a tenant requests repairs? A property management company should have the resources to maintain your property and respond to requests promptly. At AHPM, we offer 24/7 maintenance services to repair your property as soon as tenants report them. We do our best to fix the problem so they won't have the same issue soon. During our maintenance services, we also strive to save money.

Do you conduct property inspections? The manager can inspect your property to determine necessary repairs or adjustments. Our professionals at AHPM hold regular property inspections to ensure residents comply with the codes you've enforced.

How long will it take to make my property rent-ready? When a property manager takes on your property, one of the first things they will do is evaluate your property and make any necessary updates and repairs. Typically, this process takes seven to 10 days at AHPM. However, factors like older homes may require more updates, which can extend the process.

As a property owner, you need a plan for dealing with tenants who break their lease or refuse to follow regulations. Here are some questions you can ask your potential property manager about how they deal with evictions and vacant units:

Do you offer eviction services? If you're uncomfortable dealing with tenants who haven't paid their rent or who have taken part in illegal activity, a property management company should be able to handle the situation. At AHPM, we offer tenant eviction services that comply with local guidelines. If one of your residents breaches the lease agreement, we have methods for how to proceed with removing the tenants from your property.

How long are your properties typically vacant? A reliable property management company strives to keep your property as close to capacity as possible to maintain your revenue. American Heritage Property Management has a 1.93% vacancy rate , 50% lower than the national average.

What is your timeline for evictions? This is one of the top questions to ask when hiring a property manager, as you want to ensure they strictly adhere to the lease terms. For example, the property management company should immediately start the eviction process if a serious violation occurs.

If you own an apartment building or home in Central Pennsylvania or Baltimore , we're here to help you manage your funds and maintain your investment.

For more information about our services or to ask any other questions, feel free to contact us online or call 877-931-7368.

How to Break a Lease: The Dos and Don'ts of Breaking a Lease

nremigio@ahpm.biz (NATALIE REMIGIO) — Thu, 25 Jul 2024 18:32:47 GMT

A lease is a binding commitment between a landlord and a tenant that lasts for a fixed period of time. Sometimes, one or both parties want an early exit. This can happen when one party doesn't meet the other's expectations or the lease no longer makes practical sense for both.

Ending this contract early is called “breaking” the lease. A tenant or a landlord can break a lease, and occasionally, it's the best thing you can do. However, the way both sides handle it can be the difference between a smooth transition and a legal mess.

Lease-Breaking Dos and Don'ts for Landlords

If you're a property manager or landlord and your tenant wants to break their lease, you want to be strategic about your response. Here are some key dos and don'ts to handle a tenant breaking their lease.

Do Understand Before Acting

Listen to your tenant's reasons for wanting to break the lease. Ask questions and look into any concerns they have. This information will help you find solutions.

Do Work Together

Initiate cooperation with the tenant to resolve the situation on good terms. Work together to find a replacement tenant or consider renegotiating aspects of the lease.

Do Follow Legal Processes

Document any agreements or transactions between you and the tenant. Ensure you understand your rights and theirs if you need to take action.

Don't Ignore Your Tenant

Respond to your tenant and try to resolve the situation. If they insist on breaking the lease, seek a replacement tenant.

If they communicate their intentions and you ignore them until the lease is up, you may lose your chance of successfully suing for rent due under the lease because of failure in your duty to mitigate damages .

Don't Retaliate

If your tenant can't or is unwilling to uphold their side of the lease for the full term, your next best option is to help them understand how to manage the break fairly and legally.

Don't obstruct them if they are looking for a legitimate way out. If you have been wronged, follow the law.

Don't Violate Terms

Respect the terms of your lease with the tenant when handling the break. For example, don't demand extra penalties beyond those stated in the agreement if they comply with an early termination clause.

Lease Breaking Dos and Don'ts for Tenants

If you're renting and want to know what happens when you break a lease and how to navigate this situation, these tips will help you.

Do Review the Lease

Check for an early termination clause allowing you to break the lease legally. For example, you may be allowed to leave early if you pay penalties and forgo your security deposit. Others may let you break the lease without these penalties if you give early notice and find a replacement tenant.

Do Communicate Early

The earlier you let your property manager know you want to leave early, the more time they have to find a replacement tenant. Do volunteer to help with this process even if the lease termination clause doesn't require you to. This gives you the best chance to fulfill the early termination clause and leave on good terms with your landlord.

Do Seek Approval

Formally ask your landlord for permission to break the lease and get a written response. This permission could be conditioned on you fulfilling the early termination clause if there is one, or you could ask your property manager to propose a termination offer that you both sign to exit the lease early in a mutually beneficial way.

Don't Violate Terms

There are valid reasons to break a lease, but aim to do it through a termination clause, termination offer or another legal exception like a building code violation on the property. If there are early termination provisions, follow them. Never deliberately violate or ignore terms in your lease agreement.

Don't Avoid Communication

It may feel awkward, but communicating early and honestly is the best way to find a solution your landlord will accept.

Don't Leave Without Notice

Never move out or stop paying rent without communicating and giving proper notice first. A fly-by-night approach will leave you at odds with your landlord and the law.

Key Legal Concepts in Lease-Breaking Situations

Here are some key concepts that landlords, property managers and tenants need to understand to break a lease legally:

Duty to mitigate damages: In most states, lessors have a legal duty to mitigate damages . In property rentals, that means landlords may not claim damages from tenants that the landlords could have avoided. For example, unless the lease specifies it as a penalty, a landlord should not sue a tenant for the entire outstanding rental amount for the lease period if they made no effort to find a replacement tenant.
Early termination clause: This is part of the lease explaining conditions for both sides to follow to end the renting relationship early.
Termination offer: This is a formal agreement on conditions to end the lease early if the lease lacks those terms or the landlord and tenant renegotiate.
Penalties: Landlords can apply reasonable penalties specified in the lease if tenants break the lease agreement — for example, forfeiting their security deposit or two months' rent. How much it costs to break a lease will depend on the penalties in the agreement and how the tenant handled the break.
Notice of intent to vacate: A tenant should send their property manager a formal letter declaring their intention to move out early. They should send this with ample notice. Sixty days is a good guideline if the lease doesn’t specify a notice period.

Make Renting Easy With American Heritage Property Management

If you own a rental property or plan to start renting one out, the idea of your tenant breaking a lease may cause you anxiety. Perhaps you're in that situation right now, wondering how you'll find the right new tenant. American Heritage Property Management is your full-service property management partner for a seamless renting experience in Pennsylvania and Maryland.

AHPM handles every aspect of property management from beginning to end, including:

Tenant screening and selection
Lease preparation
Property maintenance
Rent collection
Eviction

We offer all these services and more throughout Pennsylvania as well as Baltimore, Maryland, and its surrounding areas. Whether you need help finding quality tenants for your property or want a reliable partner to step in and manage an existing tenant relationship so you can sleep easily at night, AHPM is here to help. With over four decades in business and thousands of units under management, we have the experience and expertise to streamline your ownership experience so you can relax and enjoy your earnings.

Likewise, if you're a tenant looking to move into a new rental, AHPM can help you find and apply to rent properties in Pennsylvania and Maryland that fit your needs and budget.

Contact AHPM today for a seamless renting experience.

How to Increase the Value of Your Rental Property

Tue, 25 Jun 2024 13:57:00 GMT

“Should I renovate my rental property?” might be a question that crosses your mind. The answer, if you hope to get more from your investment properties, is yes. Updating a rental property can involve everything from painting the walls to remodeling the kitchen and bathrooms.

Learn how to increase the value of your property in Central Pennsylvania. Discover the best renovations and improvement ideas to attract potential tenants and boost your profits.

1. Remodel the Kitchen

Even among non-cooks, the kitchen is the heart of the home and impacts its property value. A few adjustments can offer a cost-effective way to enhance the space's beauty and function.

For example, you could upgrade the drawer pulls and door handles, install a new backsplash or add a fresh coat of paint. According to the Cost vs. Value Report, upgrading a kitchen can have a return on investment (ROI) from around 30% to about 75% throughout the Middle Atlantic region.

2. Remodel the Bathroom

Next to the kitchen, the bathroom or bathrooms are the most important spaces in a rental property. Potential tenants are usually looking for an area where they can relax and unwind at the end of the day or for a space that will let them get ready in the morning with ease.

Like a kitchen renovation, upgrading a bathroom doesn’t have to involve making significant changes. Replacing worn fixtures or adding a fresh coat of paint might be sufficient for a rental property.

3. Improve the Floors

Some flooring types are better than others for rental properties. Usually, it’s best to switch to a durable material with low maintenance requirements that can withstand years of wear and tear from tenants.

Hardwood or laminate floors are often ideal for high-traffic areas such as hallways and living spaces. Water-resistant flooring, such as vinyl or tile, is often best in humid areas such as bathrooms and basements. Carpet offers sound insulation and warmth in areas that don’t see a lot of foot traffic, such as bedrooms.

4. Upgrade the Lighting

If you want to see your property value increase, buy quality lighting. Upgrading the fixtures can make a space brighter and refresh a room's style. Swapping out incandescent bulbs for LEDs modernizes your rental and helps your tenants save money on their electric bills.

Another option is to consider getting new, stylish windows. These investments can enhance a space's natural lighting to create a bright, airy atmosphere.

5. Increase Storage Space

When deciding how to increase property values, brainstorm ways to enhance storage. That can mean installing a closet in a bedroom or the living room. You can also offer a separate, secure storage area for each tenant in the basement of a multi-family building.

Even small storage improvements can make a big difference when it comes to how desirable and valuable your rental property is. For example:

Attach hooks for hanging bags or keys by the front door.
Add wall shelves to a bedroom or in the kitchen.
Hang rods and hooks in the bathroom for towels and other linens.

6. Boost Energy Efficiency

Improving the energy efficiency of your rental makes the property more appealing, allowing you to ask for more rent. Increased energy efficiency shaves a few dollars off the unit’s energy bills, which helps you if you cover utilities such as heat or electricity and helps tenants save on their monthly bills.

To improve your rental properly's energy efficiency, you could replace older windows with energy-efficient models. Energy Star-rated windows provide insulation against cold air in the winter and reduce heat gain indoors in the summer.

As another option, consider upgrading older appliances. For example, investing in an Energy Star refrigerator can save you around $230 over the course of the product's lifetime.

How to Choose the Best Rental Property Upgrades

When renovating a rental property, evaluate its condition and determine how much you can afford to invest in the remodel or renovation. Older investment properties may need extensive repairs and renovations. Newer properties may only require small updates to increase the amount of rent you can ask for each month.

In some cases, it helps to weigh the cost of the remodel against the potential rent and resale values. For example, the Cost vs. Value Report indicates a midrange bathroom remodel may cost around $25,000 with an ROI of nearly 58%. Replacing windows averages about $25,000 and can bring in an ROI of around 56%.

Kitchen Renovation Tips

If you’re going to give the kitchen in your rental property a bit of a facelift, these tips will help you keep costs down while making the space look impressive.

Rethink the materials for the counters . You don’t need to install pricey granite counters in your rental kitchen. Two budget-friendly, durable and attractive options include tile counters and engineered stone. Just as you want to skip the high-end counters, it’s also a good idea to avoid going too cheap with your materials — laminate counters may show signs of wear and tear much sooner than others.
Leave the plumbing where it is . Unless the kitchen sink is in an inconvenient spot or there’s no room for a dishwasher with the current setup, you’ll save money and time leaving the plumbing alone.
Go for classic over contemporary . Skip the unique patterns and colors. Choose visually pleasing designs that'll appeal to every renter.
Focus on innovative storage solutions . Kitchen space is often at a premium, especially in smaller homes and apartments. When renovating, add hanging pot racks, install wall shelves or pantry storage and add pull-out drawers or shelving to existing cabinets.

Bathroom Renovation Tips

When completing rental property upgrades, you should focus on the bathroom. From large to small changes, there are a few things you can do to make the bathrooms in your rental more appealing.

Replace the toilet . You may need to replace a toilet if it's worn out, runs continuously, uses excessive water per flush or looks outdated. If the toilet is relatively new, you might be able to get away with replacing the seat and cover rather than the entire fixture.
Leave things where they are . As with the kitchen, you’re better off leaving the sinks, shower/tub and toilet where they are rather than trying to relocate them to a different bathroom area.
Improve the showerhead . While you might not want to move the shower, replacing an older showerhead with a rainfall model can make the bathroom more attractive.
Increase storage and counter space . Even if just one person lives in your rental property, the bathroom is going to see a lot of use. Increasing storage and counter space makes the room more convenient to use. Consider adding a medicine cabinet or a freestanding, humidity-resistant storage unit.
Swap out shower curtains for doors . Consider replacing shower curtains with glass shower doors, which helps potential renters see how clean and tidy the bathroom is and leaves a good impression.

Additional Tips

Follow these tips to save time and money renovating the entire house.

DIY as much as you can . You’ll get more bang for your buck if you tackle specific chores on your own. For example, you can pick up supplies from the store rather than pay for delivery. You might also be able to handle specific demolition tasks on your own. Painting and replacing handles and knobs are projects you can easily DIY.
Reuse as much as possible . While some materials might be well past their prime and best left for the landfill or recycling, you’ll save money if you find ways to reuse materials. For example, you can refresh kitchen cabinets with a new finish or coat of paint.
Maintain your changes . Keeping your property value high requires upkeep. Maintaining the property can mean scheduling regular tune-ups for certain appliances, such as the furnace or HVAC system, and scheduling regular cleanings for other fixtures and features.

4 Quick Ways to Update Your Rental Property

A significant renovation or remodel might not be in your budget or might not be something you have time for right now. While redoing the bathroom or kitchen and making other big changes can boost the value of your rental property considerably, a few small improvements can also produce decent results. Make your rental more appealing and more rentable by doing the following:

1. Increase the Curb Appeal

Don’t underestimate the power of a manicured lawn or a few flowers planted by the front entrance. It can be worth it to hire a landscaping company to visit regularly to cut the grass and refresh the flowers and plantings at the front of the house.

2. Install New Doorknobs

Just as replacing the door handles and drawer pulls in the kitchen and bathroom can instantly improve the look of the room, so can installing new doorknobs on the interior and exterior doors of the property.

3. Deep Clean

In some cases, items don’t need to be replaced, just deep cleaned. A professional carpet cleaner might be able to remove years of stains and pet odors from a carpet, for example. Scrubbing the title in the bathroom and cleaning the oven can make those things look like new.

4. Paint the Walls

While some tenants are willing to paint a rental themselves, you’ll get more consistent results and make your property more appealing if you paint all the walls between tenants. Stick with a neutral color, such as white or off-white, so you can appeal to everyone's style.

Work With a Property Management Company

Whether you own property that’s far from your home or just want help handling the day-to-day responsibilities of a rental property, working with a property management company can help you keep your property up-to-date and appealing for tenants.

To learn more about the advantages of property management services in central PA, contact American Heritage Property Management today.

Homeowners Insurance vs. Renters Insurance

Wed, 17 Apr 2024 18:45:12 GMT

There are different types of insurance coverage for real estate owners. Two examples are homeowners and renters insurance. These two policies serve different purposes, although there are some similarities. In this guide, you'll learn about homeowners and renters insurance and how they work. We'll also answer questions about the best insurance for landlords and rental properties.

What Is Homeowners Insurance?

Homeowners insurance is a type of insurance that provides financial protection against damages to a person's home and the contents inside. The insurance is designed for homeowners and usually covers the following:

Physical structure: Homeowners insurance covers the physical structure against perils like theft, vandalism and fire. While there are standard protections, it's essential to review your insurance contract to know the exclusions.
Personal belongings: Homeowners insurance protects your personal belongings, such as appliances and furniture. The level of coverage depends on the kind of insurance you purchase. Covered perils usually include theft and fire, but there could be listed exclusions.
Additional living expenses or loss of use: Homeowners insurance may cover additional living expenses if you have to live somewhere while your home is undergoing repairs due to a covered event.
Personal liability: Homeowners insurance can protect you against lawsuits for injuries and property damages that occur on your property. For example, if a visitor slips and falls on your property, the insurance may cover the costs incurred if the visitor sues, depending on the facts of the case.
Medical payments: Homeowners insurance can cover the medical expenses if someone is injured on your property.

Homeowners insurance is vital because it protects you against covered perils, saving you money and time. It also gives you peace of mind, knowing the insurance company will likely cover unexpected losses.

What Is Renters Insurance?

Renters insurance is an insurance coverage designed for renters of houses or apartments. If you're a tenant, you can get renters insurance to protect you against the following:

Personal belongings: Like homeowners insurance, renters insurance covers your personal belongings in the event of theft, fire or other covered perils. It does not cover the rental property itself. The owner's homeowners insurance may cover the losses if the house or apartment is damaged.
Personal liability: Renters insurance can provide coverage against lawsuits when someone is injured while on the rental property. It may also cover liability for damages that occur on the property.
Additional living expenses: Renters insurance can help pay for temporary living arrangements like hotel expenses if your rental property becomes uninhabitable due to a covered event.
Medical payment to others: Like homeowners insurance, renters insurance may cover medical expenses for guests injured in your rental unit.

Renters insurance protects tenants against financial losses in covered situations. It's a valuable investment to protect yourself and your belongings while renting a property.

What Are the Similarities Between Homeowners Insurance and Renters Insurance?

Here are some of the similarities between homeowners and rental insurance:

Personal property coverage: Both types of insurance usually cover personal belongings like furniture and appliances against covered perils like theft and fire. However, expensive items like jewelry may require additional coverage.
Liability protection: Both policy types usually provide liability coverage. The coverage can help protect you if someone is injured on the property and you incur lawsuit costs.
Additional living expenses: Both insurance policies may cover additional living expenses if your home or rental property becomes uninhabitable due to a covered event and you need to live elsewhere temporarily.
Medical payments to others: Both homeowners and rental insurance usually include coverage for medical payments to people injured on the premises.

While these similarities exist, there are some apparent differences.

What Are the Differences Between Homeowners Insurance and Renters Insurance?

The main difference between homeowners insurance and renters insurance is that homeowners insurance covers the building whereas renters insurance does not.

Homeowners and rental insurance are different in the following ways:

Dwelling coverage: While homeowners insurance covers the dwelling, renters insurance does not. In other words, homeowners insurance provides financial protection for the physical structure if the covered perils occur. If the physical structure in which a tenant resides is damaged, the landlord's insurance and not the renters insurance will cover the losses related to the structure.
Persons covered: Homeowners insurance is designed for homeowners, whereas renters insurance is designed for tenants. A person who owns a home but decides to rent in a different location for an extended period may purchase rental insurance to protect their belongings. Similarly, a landlord's insurance only covers the building, not its content, so tenants need renters insurance to protect their belongings.

What Factors Should You Consider When Choosing Insurance?

Before choosing insurance, it's best to consider the following:

Coverage needs: Are you a renter or a homeowner? What assets do you want to protect? Answering these questions will help you know which insurance type to select.
Policy coverage: Choose a coverage depending on potential risks. Understand what the policy covers and the exclusions, then ensure it aligns with your needs.
Premium costs: In most cases, the premiums determine your coverage. You should compare premiums from different insurance companies and balance affordability and coverage.
Policy limits: Ensure the policy limits are sufficient to cover potential losses. While some payouts are done according to the asset's actual cash value, others are done according to the replacement costs.

Frequently Asked Questions (FAQs)

Here are answers to some of the frequently asked questions:

Is Homeowners Insurance Required When Renting out Property?

While homeowners insurance is optional when renting out your property, purchasing coverage is crucial. Homeowners insurance protects the physical structure while the tenant lives there. Their rental insurance will not cover the physical structure or dwelling.

What Is the Difference Between Landlord Insurance and Homeowners Insurance?

The home insurance you need for a rental property is called a landlord policy. This insurance is designed for owners who rent out their properties, usually for an extended period. Conversely, homeowners insurance is designed for owners who live on the property. The coverage may also differ. For example, most landlord policies do not cover personal belongings, but homeowners insurance does. Also, landlord insurance covers loss of income instead of loss of use.

Does Homeowners Insurance Cover Rental Property?

Homeowners insurance covers the dwelling when you rent out the property. If the physical structure is damaged while the tenant lives on the property, the owner's insurance may cover the losses to the home but not to the tenant's personal belongings.

Do You Need Both Homeowners Insurance and Landlord Insurance?

You can purchase homeowners insurance if you live on the property or plan to have tenants only occasionally. But if you intend to rent the property for an extended period, you'll likely need a landlord policy. If you have two houses where one is a rental property and the other is your primary residence, you can get both homeowners and landlord insurance — one for your home and the other for the rental property.

What Insurance Do You Need if You Rent out Your House?

You can get a landlord policy if you rent your property for most of the year and the property is not your primary residence. Landlord insurance protects the building while the tenant lives there. If you rent out a room in your home a few times a year, like during an event or holiday, you'll likely still need homeowners insurance. However, the circumstances can change, so it's best to consult a professional for tailored advice.

Do You Need to Change Your Homeowners Insurance if You Rent out Your House?

If you rent out your primary residence for an extended duration, you can replace your homeowners insurance with a landlord policy. However, the coverage and prices may differ, so you must consult your insurer for guidance and information.

Contact AHPM for Your Property Management Needs

American Heritage Property Management (AHPM) provides full-service property management services to real estate owners in Pennsylvania. We have over 3,000 assets under our management with more than 40 years of experience. We can help you determine which insurance type you need, given your circumstances. Do you need strategic and practical solutions? Contact us now!

Guide to HOA Management in Pennsylvania | AHPM

duncan.shea@appfolio.com (Appfolio Websites) — Tue, 13 Feb 2024 16:48:38 GMT

Homeowners and community associations, commonly called HOAs, serve a great purpose. They keep communities appealing and attractive to ensure property values remain high. Many condominiums, townhomes and neighborhoods use HOAs to regulate the behaviors of owners and tenants in the community, which can require a lot of work.

A homeowners association management company takes the burden off HOAs. Not only do they ensure all HOA rules and regulations are fulfilled successfully, but an HOA management company also understands the complexities of HOA laws in PA.

An HOA management company like American Heritage Property Management provides services specific to your needs. Do you want your management company to have a minimal role or take over nearly every duty? Do you need help enforcing your HOA's policies, rules and bylaws?

We developed this guide on how to select an HOA management company in Pennsylvania to answer many frequently asked questions about HOA management and help you make your decision.

An HOA management company can save communities a lot of stress, money and time. They are not the same as homeowners associations. HOAs are responsible for governing a community, and as such, they handle the following tasks:

Establishing Covenants, Conditions and Restrictions (CC&Rs)
Determining penalties for homeowners who do not comply
Making decisions about the maintenance and appearance of common areas

An HOA board can be self-managed by elected or volunteer homeowners, but communities can also choose to hire HOA management companies. HOA management companies are responsible for:

Explaining and enforcing Pennsylvania homeowners association laws
Scheduling meetings
Managing reserve funds
Assisting with budget preparation
Handling the everyday operations
Communicating with the HOA board
Enforcing an HOA's policies, rules and bylaws
Performing the ongoing maintenance needed in the common areas

No two HOA management companies are alike. You will get different services depending on which HOA management company you choose, your community type and your location. Whether your community comprises single-family homes, townhouses or condos, basic services usually include budgeting, resident relations and emergency and regular maintenance and repairs.

Additionally, an HOA management company may also offer occasional services, such as recycling, towing, trash pick-up, snow removal and seasonal pesticide treatment.

What's the Difference Between an HOA and an HOA Management Company?

Since HOAs and HOA management companies handle similar tasks, it can be easy to confuse them. However, while management companies can make rule changes and enforce rules, the HOA board decides the penalties for non-compliance and misconduct.

HOA members often want to avoid dealing with the legal aspects of managing community property. An HOA management company tends to have a deeper insight into the legal framework set out by federal and Pennsylvania state law. Understanding PA HOA laws ensures compliance, appropriate administration and proper community oversight.

What Are Pennsylvania Homeowners Association Laws?

In Pennsylvania, most HOA regulations come from the state's Uniform Planned Community Act , which has been in effect since 1997. While HOAs often have unique documents to handle their own bylaws and conditions, the state's act provides a model for the operation and governance of HOAs to ensure fairness for everyone in the community.

Under state law, HOAs have the power to:

Care for and regulate shared spaces and amenities
Collect payments to maintain and operate these areas
Impose fees for late payments
Suspend a homeowner's rights to common areas
Charge reasonable fines
Foreclose on a delinquent homeowner's property

Pennsylvania HOAs are also responsible for ensuring fairness for all housing unit owners under the federal Americans with Disabilities Act of 1990, the Fair Housing Act and the Pennsylvania Human Relations Act.

Other Pennsylvania state laws that HOAs should be aware of include the Uniform Condominium Act , which provides regulations for communities comprised of condos. Plus, the Pennsylvania Nonprofit Corporation Law regulates HOAs organized as a nonprofit.

How Do HOA Management Companies Work?

HOA management companies help HOA boards fulfill their duties. With a full-scale management company, an HOA is usually relegated to a decision-making role. The company will maintain properties, collect dues, pay expenses, take calls from owners about issues and enforce the rules and bylaws.

On top of these services, the goal of an HOA management company is to build a sense of community and togetherness. A company will accomplish this by checking in on homeowner relations and involvement and paying attention to the details of the physical community, such as the amenities, parks and landscaping.

Another important step in how to find an HOA management company is knowing exactly what it is that these companies do. While every community member is responsible for their property, the HOA is responsible for common areas or corporately-owned property.

Typically, homeowners pay dues as a member of an HOA to improve and maintain common areas, such as:

Playgrounds
Clubhouses
Gyms
Pools

HOA management companies make sure your community is maintained and well cared for. These companies can also ensure homeowners follow guidelines and regulations and that the community is a safe and comfortable living environment for its members.

Unfortunately for HOA board members, they are also members of the community they serve, which can make it challenging and uncomfortable to ask their neighbors to comply with the rules. An HOA management team can relieve HOA board members of the burden of confronting neighbors about violations. Additionally, an HOA management team can handle the following responsibilities:

Manage the HOA board
Handle insurance for the common areas
Collect dues and manage delinquent dues
Field questions and concerns from HOA residents
Maintain common areas, such as playgrounds and parks
Hire service providers and staff to take care of common areas
Handle requests for maintenance and repairs of common areas
Ensure vendors are performing their work to the HOA board's exact specifications
Manage accounting services, such as reviewing vendor invoices, mailing invoices, bookkeeping and creating monthly reports on expenses and income

Whatever services your HOA needs, the HOA management company you choose should be dedicated to delivering these services efficiently and effectively. At American Heritage Property Management, we provide you with the greatest value for your investment.

Though many use the terms property management and HOA management interchangeably, HOA board members are not the same as property managers. Instead, board members are essentially overseers, and many choose to hire property managers who can better serve their community.

A property management company and an HOA management company have some key differences. Typically, a property management company manages property owned by a private individual or a corporate entity that leases or rents out the property. Property management teams handle the following tasks:

Responding to tenant requests for property repairs, including urgent repair needs
Providing maintenance services to ensure the property is well cared for
Managing corporately owned areas
Handling screening and leasing

Property management companies represent owners in handling the daily care of an investment. Because property management teams handle the various tasks associated with taking care of a property, they can relieve landlords of the stress of maintaining these properties themselves.

HOA management teams represent the HOA board in caring for a community. Because each property is owned individually, HOA management teams only handle repairs and maintenance for common areas. They can also coordinate and oversee homeowner meetings, enforce the covenants and rules and manage the HOA's finances.

Property management companies have power inside the properties they oversee but generally do not have much power among the larger community. However, they can still enforce the community rules via the individual properties for which they are responsible. On the other hand, the amount of power an HOA management company has depends on how much power the HOA itself has.

HOA management companies can work with property management companies to ensure the best for the community. A successful HOA management company makes life easier for everyone. Fortunately, at American Heritage, we offer both property management services and HOA management services .

How HOA management companies are regulated varies by region. Rather than regulate the management companies that HOAs hire, most HOA laws regulate the HOAs themselves.

The primary regulator of an HOA management company is the homeowners association board. Since these companies usually have access to very sensitive data, the HOA is in charge of determining the actions management companies can take.

As mentioned above, in Pennsylvania, most condominiums must adhere to the Uniform Condominium Act and most planned communities must adhere to the Uniform Planned Community Act . If you violate your region's business regulations, you could face serious consequences, such as heavy fines or even business license revocation.

Managing an HOA can be much simpler when you hire an HOA management company. These companies offer various services that make life much easier for members of the HOA and keep the neighborhood running smoothly.

At American Heritage Property Management, we want to make every HOA member's quality of life top tier. Since we offer both HOA management and property management services, we can ensure satisfaction for your homeowners. Our professional services will allow your community to thrive and grow.

Along with providing services to meet your residents' satisfaction, we also offer services for your HOA, such as accounting and bookkeeping to get expenses under control and better allocate funds.

Who benefits from using an HOA management company? You may want to hire an HOA management company if:

Your HOA board has limited time.
Your HOA board doesn't want to hire and manage staff.
Your HOA members want a hands-off approach to management.
Your HOA isn't very familiar with property management.
Your HOA members don't want to deal with the legal aspects of managing community property.

Just about any HOA can benefit from the services of an HOA management company.

Knowing how to choose an HOA management company that meets your needs is crucial to finding the right company for you. When choosing an HOA management company, follow these tips:

Get referrals: Ask for referrals from other property owners in the area. They can give recommendations based on the HOA management companies they have worked with. Getting referrals is often the best first step in your search for an HOA management company.
Interview possible companies: Before choosing an HOA management company, you should learn as much about it as possible. If possible, schedule an appointment to visit the company, during which you can ask your questions. This initial meeting with allow you to get a feel for what the company is like to work with and whether it can fulfill your specific needs.
Understand the services offered: Ensure you understand the services an HOA management company provides so you know what tasks the company will handle and what tasks you will need to cover.
Ask about policies: For any HOA management company you are considering, ask about their policies, such as the policies for maintenance, fee collection and regulation enforcement. Confirm the length of time the company has been in the industry, and ask any questions that give you a better understanding of a company and help you feel more comfortable working with the company.
Research for complaints: Do some research to determine how reliable a company is. The Better Business Bureau is a good place to start. If you see a pattern of complaints, you may want to consider working with a different company. However, be sure not to judge the company based on a single complaint, as this could simply be a disgruntled client who is trying to create problems in retaliation.
Obtain a quote: You can verify the fee you will be charged to work with a company by asking for a quote. This quote will allow you to determine how much of your HOA fees will go to the HOA management company.
Speak with other owners: To assess the quality of a company's services, speak with some of its other clients. Pay attention to what they like and any complaints they have. If you only hear about minor annoyances rather than major issues, you may want to work with this company.

Knowing how to choose an HOA management company that meets your needs is essential. At American Heritage, we have been in the business since 1981 . We have eight offices and manage 3,100 units at a vacancy rate of just 1.93%. We can provide you with a complimentary quote on our comprehensive services.

Landlords can enjoy significant returns from property ownership. However, to get these returns, you need to manage your property and your tenants' needs successfully. At American Heritage, we are a full-service property management company. We offer the following property management services :

Field tenant calls
Screen and select tenants
Prepare lease agreements
Handle maintenance and repairs
Ensure rent is paid on time
Handle turnover needs like leasing, marketing and evictions

We also offer HOA management services , which include:

Conducting homeowner meetings
Coordinating repairs and maintenance
Enforcing community regulations and rules
Providing financial and accounting services
Partnering with builders and developers during start-up projects
Acting as the liaison between homeowners and builders or developers

For more than 30 years, we have been a trusted provider in the Central Pennsylvania region for property management services. Are you wondering how to hire an HOA management company ?

If you are a landlord or an upcoming landlord, contact us at American Heritage Property Management or request a free rental analysis today.

How to Deal With a Bad Property Management Company

Mon, 18 Dec 2023 18:42:00 GMT

No matter how many years of experience you have as a landlord or how many properties you own and rent out, working with a property manager can help reduce your stress levels and simplify the business of being a landlord. Not all property management companies are the same, though. While there are plenty of firms with experience and know-how, there are also the occasional lemons — bad property management companies that don't deliver on their promises or that end up being more headache and hassle than help.

If you've signed on with a bad property management company or worry that your property manager is not doing their job, you have options. Continue reading our blog post to learn more about how to deal with a bad property manager and how to find a company that's worth your partnership.

If you’ve signed on with a bad property management company or worry that your property manager is not doing their job, you have options. Continue reading our blog post to learn more about how to deal with a bad property manager and how to find a company that’s worth your partnership.

In some cases, the warning signs that a property management company won’t live up to your expectations can be visible before you sign a contract and agree to work with the company. In other instances, red flags might not appear until after you’ve been working with the company for a while. During your initial contacts and meetings with the firm and in the weeks and months after you’ve signed on, here are the signs to keep an eye out for.

1. Poor Communication

When you hire anyone to do a job or to work for you, you want the reassurance that they will also be there to answer any questions you have or to address any concerns that come up. A good property management company will be easy to get in touch with, either through email or via phone. If you call them and leave a message, they’ll return your call, ideally within 24 hours.

A company that doesn’t communicate well is likely to miss calls or emails and to take more than 24 hours to return messages. If you feel as if you can never get a hold of a real person at the company, even before you’ve signed a contract, that’s a warning to take seriously.

After you’ve signed a contract, if the staff of the property management company seems to be always out of the office or slow to get back to you, you might feel a bit concerned or even panicked. Poor communication with you, the landlord, can make you question how well the company communicates with the tenants. Since tenants are your source of income, you want to be sure you’re working with a company that is concerned about your tenants’ needs and interests.

2. Lack of Knowledge of Landlord-Tenant Rules

A variety of federal and state laws are in place to protect the rights of tenants and to create a fair housing environment for everyone. A property management company needs to be aware of what is protected class under the Fair Housing Act , what tenants’ and landlords’ rights are under the Pennsylvania Landlord-Tenant Act and what the appropriate process is if a tenant has an issue or stops paying their rent.

3. Poor Follow-Through

Property management companies typically offer services such as apartment and home property maintenance as well as repairs should anything break. One major red flag to look out for in a company is poor follow-through.

Just as you want the company to return your emails or calls as quickly as possible, you also want the company to respond to any issues tenants are having as soon as possible.

If a company promises to fix a burned-out lightbulb in the hallway, but takes weeks to do so, or says it will take care of a dripping faucet in a tenant’s bathroom but is slow to send out a plumber, that can be a cause for concern. If the company doesn’t move quickly or needs lots of nudges and reminders to do its job, you are going to end up with unhappy tenants. Unhappy tenants are likely to move once their lease is up, which can mean lost income for you.

4. Limited Services

If you have a lot of properties to rent out or if you live far away from your properties, it’s handy to have a property management company that’s close by to take care of any issues that might come up or to help you manage and screen tenants . But not every property management company offers a full suite of services.

Before hiring a company, ask what services it provides and what you are going to be responsible for doing. Ideally, the company will take care of everything from repairs and maintenance requests to rent collection and tenant screening. If not, they’re only doing part of the job of a property management firm.

5. High Eviction Rate

Finding good tenants can be difficult, which is one reason why so many landlords work with property managers. A good property management company will have a
rigorous tenant screening process in place. The company will check references, run credit checks, background checks, and verify employment, all with the goal of finding a tenant for your property who will pay the rent on time and treat the home with respect.

How can you know if a property management company does a thorough job of screening tenants? One thing to do is take a look at or ask for its eviction rate. Across Pennsylvania, the eviction rate is 1.77 percent. The average eviction rates in several Pennsylvania counties are as follows:

Ideally, the property management company will have eviction rates below the state average or lower than the average for the county the property is located in. If the company evicts a lot of tenants, that can be a sign that it isn’t doing its due diligence when it comes to tenant screening in the first place.

6. High Vacancy Rate

Another red flag that a company isn’t doing its job very well or is somehow trying to cut corners is a high vacancy rate. Ideally, the company you work with will have a vacancy rate that’s well below the average for the area or state. In Pennsylvania, the rental vacancy rate in 2017 was around seven percent .

A high vacancy rate can mean several things, none of which are good. If a company has a lot of vacancies, it might not be doing a good job of advertising or marketing its properties. A high vacancy rate can also be connected to a high eviction rate or to a high rate of tenants who decide to move out before their lease term is up. Another reason for a lot of vacancies is that the company doesn’t understand market rates and is pricing rentals too high for the market or location they are in.

7. Limited Hours

Appliances don’t live in a 40-hour-a-week world. Refrigerators tend to break whenever, whether it’s at 10 p.m. on a Saturday or 9 a.m. on a Wednesday. The furnace can go out at any time of day. The plumbing can clog or leak around the clock. Although not every issue with property needs attention immediately, some problems demand a quick fix.

If a property management company doesn’t have someone available 24 hours a day, seven days a week, that can present a real challenge when something goes wrong outside of traditional business hours. Having limited hours, especially if a company is difficult to get a hold of, should be a significant red flag for any property management company.

8. Your Payments Are Late

In some cases, the warning signs that a property management company isn’t great might not show up until you’ve been working with it for a while. If the company collects rent from tenants for you, it should send the amount you’re owed monthly, on a consistent schedule. If that doesn’t happen, a few things might be going on. The company might be struggling to receive rent payments from a tenant, which is another sign that the company didn’t do a thorough job when screening tenants.

Consistently late rental payments from your property management company can also suggest that it is having difficulty keeping up. It might have a lot of debt or just poor bookkeeping practices. The company might be understaffed, meaning there isn’t a designated person to oversee payments to landlords. Whatever the reason for the late payments, you can interpret them as a sign that it’s time to move on and find a new property management company.

If you're currently working with a property management company that has displayed any of the red flags above or just isn't meeting your expectations, what are your options? Here are a few tips on how to deal with a bad property management company:

Negotiate With the Company

Open and honest communication is the first step to resolving the conflict. Expressing your concerns and expectations is a good way of bringing attention to property management issues you are unhappy with. Clear communication can be effective for resolving minor problems.

However, negotiating with the company might sometimes be difficult or impossible. If the managers regularly don't return your calls, it can be challenging to work with them to come up with a solution that suits both you and their business.

Document All Interactions

Compile detailed documentation of all your interactions with the company, including emails, text messages, photographs of the property, repair requests, maintenance reports, copies of leasing contracts and rental payments. Having these reports can help you track the company's negligent behavior, from their communication to how they deal with property damage.

Collecting all this evidence will be useful if you file a complaint due to bad property management and the company's failure to address the issues you bring forward.

File a Complaint

If you've exhausted all communication efforts and the company still lacks in performing its responsibilities, you can file a formal complaint. File a complaint with the Department of Housing and Urban Development (HUD) or Better Business Bureau (BBB) to increase the chances of getting a response to the issue or having it resolved by the relevant authorities.

Gathering detailed reports and evidence showcasing the property management company's shortcomings in conducting the agreed-upon services will work in your favor for validating your claim's accuracy.

Consider Self-Management

Firing the property manager and assuming responsibility for collecting rent, screening tenants and handling maintenance requests and repairs might appeal to you if you're a do-it-yourself type. Self-management provides a hands-on approach that enables you to have direct involvement in your rental property and eliminates the stress of dealing with a bad property management company.

However, this option overlooks the reasons you hired the management company in the first place. If you live far away from your rental properties or have a full schedule, you most likely don't have the time to devote to handling tenants and being on-call for repairs 24/7.

Switch Property Management Companies

In the beginning, there must have been something of value that guided your decision to work with the company. Before arranging a solution, list the pros and cons of working with that particular company. If the cons list is longer than the pros list, you'll likely be better off switching companies.

Switching companies can be an excellent solution for most landlords. Although the company you're currently working with might give property management a bad name, there are plenty of other firms ready to prove the value and worth of a reliable property management company.

Once you’ve decided to part ways with your current property management company, there might be a few steps you need to follow to terminate the contract. Depending on the terms of the contract, the company might require notice, such as 30, 60 or 90 days. Some contracts state that you can only terminate them for cause, such as a breach of contract on the part of the company, while others let you terminate them for any reason.

You might have to pay a fee for early termination unless you can prove that you are ending things because the company breached the contract. It’s a good idea to put everything into writing so that you have a paper trail of your communications with the company should there be any problems later on.

Along with officially ending things with the property management company, you’ll need to let your tenants know of the change in management. You don’t have to give them details about what went wrong with the first company, but you do need to let them know who will be managing the property going forward and how the tenants can get in touch with the new property manager.

After you end the relationship with the management company, collect any paperwork or documentation the company had about your properties. You’ll want a record of the security deposits made, reports about your property’s income and expenses, such as repair bills and maintenance costs, and copies of the leases your tenants signed. The company should also send along any remaining rent that it owes you.

Ideally, one bad experience with a property management company won’t scare you away from working with another company in the future. Before you hire a new company, do some research to get to know the company and its reputation. Here’s what to look for when hiring a good property management company:

Experience: How long has the company been in business? A company that has years, if not decades, of experience, is going to have a more thorough understanding of how property management works and of the needs of landlords and tenants.
Vacancy and eviction rate: The lower the vacancy rate and eviction rate, the better.
Tenant screening process: Ask the company what it does when screening tenants and what criteria it uses to help determine whether or not someone is likely to pay their rent on time.
The number of properties managed: Is the company on the small side, with just a handful of properties under management? Or does it have a full portfolio of properties? If so, does it manage buildings like yours or have experience with your type of rental?
Services offered/hours of operation: For the sake of your tenants, you want to work with a company that is available 24 hours a day, seven days a week.
Locations served: Does the company understand the particular landlord-tenant rules of your state and county? Is it familiar with the market rates and typical rental process for the area your property is in?

Your property management company should make your life easier, not more complicated. If you’re not getting what you wanted from a company or if you’re working with managers who don’t seem to care about your property or tenants, it’s time to switch.

American Heritage Property Management is a full-service property management company that has been serving landlords in Central Pennsylvania and the Baltimore area of Maryland since 1981. We’re available 24/7 for maintenance and repairs. We also screen and select tenants, collect rent, and help landlords prepare lease agreements.

To learn more about our rental property services and how we can help you, contact us today .

Unexpected Costs of Owning a Rental Property

Wed, 15 Nov 2023 16:06:49 GMT

Are you ready to step into the world of investment by purchasing your first property? While some monthly expenses are easy to determine, unexpected costs of owning a rental property can happen at any time. As a landlord, it is your responsibility to settle any charges to ensure the upkeep of your property.

Explore the seven hidden rental property costs that can affect your finances below and note the basic rental property expenses you must cover.

Basic Rental Property Costs

The basic rental property costs are the expenses you must pay to operate the property. Some fees will have fixed amounts, while others can vary. Create a rough estimate of your costs to help you budget. Some of the basic monthly expenses include:

Utilities
HOA fees
Insurance
Property updates
Tenant screening
Marketing costs
Licenses and permits
Home inspection cost
Property management fees

7 Unexpected Rental Property Costs

Researching the costs when purchasing a rental property will help you know what to expect and set up a budget that will help you cover your expenses. To ensure you are prepared to take on this venture, here are seven unexpected costs of owning a rental property:

1. Property Taxes

You might think your tenants need to pay taxes since they rent the property from you. However, as the landlord, you must pay property taxes. An assessor determines the amount you must pay based on the location and the house's market value.

Property tax on your rental property can also be higher than your home residence. If you do not have any tenants or have vacant rooms, you are still expected to pay property taxes.

2. Maintenance Issues

Maintaining your property is vital to a successful business and happy tenants. Repairs and maintenance include minor fixes to major repairs and updates. It can consist of repairing a leaking roof or fixing smoke detectors to unclogging a toilet or fixing the noise your tenants hear coming from the bathroom pipes.

Neglecting maintenance can put tenants' safety at risk, so you must set enough money aside to make any repairs inside and around your property.

3. Legal Fees

Legal fees are another unexpected cost of owning a property. Since you deal with lease agreements and property taxes, hiring a lawyer is in your best interest. They can offer legal advice and help you set up arrangements.

Lawyers can also help you deal with difficult tenants who break their lease agreements or refuse to pay rent. They can inform you of your rights as a landlord to avoid any disputes.

4. Vacancies

Tenants could come and go each month. And when that happens, there may be months when you have vacant rooms in your rental property. You can't make any income from an empty space. It means that where your tenant paid utilities and expenses, you are required to cover the cost.

The amount of tenants you have is not included when calculating your property taxes. So even if half your rooms are rented, you still need to pay your total amount in taxes.

5. Property Damage

Dealing with property damage can also become an unexpected expense. While a security deposit minimizes the risk of damages, your property is still at risk of being vandalized or not cared for. It can result in costly repairs that are only sometimes covered by insurance.

6. Having No Network of Connections

Buying your first rental property is a big step — a step many first-time property owners take on alone. You might consider completing tasks on your own. But without a network of professionals by your side to offer advice, you can make costly decisions that affect your finances. Your network can give you real-life examples and sound advice to help you make informed decisions.

Your network of professionals can include the following:

Lawyer
Accountant
Marketer
Real estate agent
Maintenance contractors
Property management group

7. Transfer Fees

There is more to the cost of buying your first rental property. After buying the property, you must pay the Homeowners and Community Associations (HOA) transfer fees or closing fees, if applicable. It includes all the costs and expenses during the sales process of the property, as well as the legal and appraisal fees.

Transfer costs can vary, so be sure to note the exact percentage you're expected to pay to ensure you have enough funds to cover all closing costs.

How to Avoid Unexpected Costs of Owning a Property

Expect the unexpected by preparing yourself against hidden rental property costs. This will help you secure your finances and avoid liabilities that can cost you your property. Here are a few ways to prepare against the hidden costs of buying your first property:

Do your research: Learn more about basic monthly expenses for a rental property in your area, including the anticipated property taxes, HOA administrative fees and other property-specific costs.
Learn about laws and regulations: Know your rights as a landlord and the regulations of owning a rental property. This will help you understand which permits and licenses you need to comply with laws and avoid liabilities.
Overestimate costs and expenses: Instead of planning your budget to the last cent, overestimate the money you will spend on your property. Stick to the high end of your estimate to stay caught up.
Create a flexible budget: Provide some leeway in your finances by setting up a flexible budget. This could help you plan for repairs for maintenance and contingencies.
Do regular maintenance: Reduce the risk of repairs with regular upkeep and maintenance. Fix issues before they become problematic to avoid more extensive and costly repairs.
Get insurance: Find the proper insurance to cover you and your property. Choose a comprehensive plan that covers damages and theft.
Join a property management group: Ease the stress of buying your first property with the help of a property management group. You will have access to a team of professionals with experience in rentals, insurance and property taxes to help you stay on top of all regulations and anticipated costs.

American Heritage Property Management Can Help You Manage Your First Property

Make buying your first rental property a happy and stress-free experience with the expert help of American Heritage Property Management. We have over 40 years of experience helping homeowners and rental property buyers manage their ventures successfully.

We have a team of insurance producers, real estate agents and representatives that can help you take care of unexpected rental property costs. We also screen tenants and perform maintenance to ensure the upkeep of your property.

Guide to Maintaining Your Rental Property

Thu, 05 Oct 2023 13:40:07 GMT

Maintaining a rental property is a big responsibility that takes time and money — but is necessary nonetheless. As a property owner, you're legally required to ensure your property is safe and habitable for your tenants . Keeping a clean, attractive property will keep you in business, too.

We'll cover the basics of rental property maintenance in this guide. If you know what to expect, you'll set yourself up for success, whether you already own properties or dream of investing in a rental.

Steps to Maintain Your Rental Property

From knowing the laws to working with trusted contractors, a lot goes into property maintenance. Let's look at some key steps:

1. Know State and Federal Laws

Before performing routine inspections and maintenance, it's essential to know your rights as a property owner and your tenant's rights. Learn what you're required to provide tenants by law, including anything regarding safety.

Also, learn what your tenants' responsibilities are. Knowing property management laws will help you determine what to focus on with maintenance.

For example, in Pennsylvania, landlords must provide a “warranty of habitability," meaning the space must be “safe, sanitary and reasonably comfortable.” Therefore, you'll want to prioritize inspecting and repairing anything relating to a safety hazard or sanitation issue.

2. Create a Preventive Maintenance Checklist

Whether you own a commercial or residential property, it's wise to perform preventive maintenance. Preventive maintenance allows you to fix problems before they become major expenses and provide a safer, cleaner space for tenants.

If your property is in overall good condition, plan to thoroughly inspect it at least once a year or when tenants move out and before new tenants move in. To keep your property in top shape, you should inspect high-use common areas quarterly or monthly.

Create a checklist to make sure you cover everything. In general, you'll want to check the following during your inspection:

Smoke detectors
Carbon monoxide detectors
Fire extinguishers
Hot water
Drinking water
Heating and cooling systems
Door and window locks
Sewage
Elevators
Appliances
Interior and exterior lighting

You'll also want to check for:

Pests
Water leaks
Mold and other environmental toxins
Electrical issues
Blocked exits
Broken plumbing fixtures
Damaged walls, ceilings, floors, windows, screens or doors
Clogged drains
Structural damage
Unstable towel racks, railings and shelving
Missing or damaged caulk or grout
Peeling paint
Trash or disrepair in common areas

Overall, you'll need to consider anything that could make your property uninhabitable. Think about ways to ensure your property is comfortable, too, even if it's not required by law.

For instance, while you may not be legally required to provide air conditioning, consider if it's worth the investment to maintain your property's cooling system. Going above and beyond to make your tenants happy and comfortable increases the likelihood they'll renew their lease, refer friends or leave positive reviews about your rental.

3. Set a Schedule for Exterior Maintenance

You also need to make sure your property's grounds are safe year-round. Plan to routinely inspect your property's exterior and grounds for any hazards and have a process for keeping it safe in every season.

For example, inspect your roof after winter to ensure it hasn't been damaged by ice or snow. Check your property's gutters in the spring and fall to make sure they aren't clogged with debris.

Consider how you'll handle lawn care and snow removal. Depending on your agreement with tenants and the type of property you manage, you may be responsible for mowing the grass in the summer and shoveling snow in the winter. If you aren't doing this yourself, hire a dependable lawn mowing and snow removal service.

4. Check Your Lease

Your tenants must know their responsibilities and what to do in an emergency. Be sure your lease clearly states your tenants' maintenance responsibilities. Provide emergency maintenance contact information and examples of when they should request an emergency repair. Provide a timeline so tenants know not to let emergencies go unaddressed for too long.

Include how much notice you'll give to make non-emergency or emergency repairs. While there may not be a law in your state regarding how much notice to give, in general, it's recommended to provide at least a 24-hour notice for non-emergency repairs.

Consider if there are reasonable restrictions you want to add to the lease to help keep your property in excellent shape. For instance, you might add a no-smoking rule to your lease, or forbid tenants from painting the walls.

5. Find Dependable Contractors

You may be able to repair some things on your own, while other tasks demand expertise. Know who to call if you need bigger or emergency repairs to the HVAC, electrical or plumbing systems. Look for contractors with licenses, insurance and reputations for reliability and reasonable prices.

Not sure where to look for contractors? Ask other local landlords for their top recommendations.

Hiring pros can ensure repairs are done correctly the first time and prevent more costly issues down the road.

6. Have a Savings Plan

It's crucial to save money for regular maintenance. The American Apartment Owners Association recommends setting aside about 3% of your property's value for annual maintenance costs.

Consider this example — if your property is worth $500,000, plan to save at least $15,000 a year or $1,250 a month for maintenance. Know that this is just the minimum amount you'll want to save and doesn't account for emergencies. Think about any unexpected costs that might pop up over a year.

7. Document Everything

Make sure to document any repairs you've made to your property, noting the date and time these repairs took place. For example, if a tenant requested a repair, record the following:

Tenant's name
How quickly you responded to the request
How much notice you gave the tenant before entering their space

Your records could come in handy if there's a dispute, and they'll also help you track what tasks you've completed and what still needs attention.

8. Join Forces With a Property Management Company

Even with a plan, maintaining a rental property is a lot to keep up with. You need to be prepared to handle emergencies around the clock. Things happen no matter where you live or the number of properties you manage.

Fortunately, you don't have to bear the weight of rental maintenance — property management companies are available to make your life much easier.

A company like American Heritage Property Management (AHPM) handles all the aspects of property management. When you partner with AHPM, you won't have to deal with:

The stress and inconvenience of tending to emergency repairs.
Wading through tenant laws to ensure your property is compliant.
Completing preventive maintenance inspections and tasks.

As a full-service property management solution, we'll take care of the grunt work for you.

Choose American Heritage Property Management

Ready to partner with an experienced property management company in or around Baltimore and Central Pennsylvania? We're excited to help you succeed and make your tenants feel at home.

With over 40 years of experience and a team of dedicated agents, we're excited to help you make the most of your investment. Contact us today and learn more about our complete property management services.

Benefits of Living Off-Campus For College Students

Fri, 25 Aug 2023 16:43:55 GMT

Living in off-campus housing can be highly beneficial for college students. Where a student lives directly influences their quality of life and academic performance.

Foregoing crowded dorm rooms and communal bathrooms in favor of a spacious rental apartment or townhome is a great option.

Undergrad students can thrive by having a quiet place to study, recharge and hang out with friends away from the buzz on campus. They'll also learn important lessons about independence they'll utilize long after receiving their diploma.

We are breaking down some of the key reasons why renting a place away from campus can be a huge advantage for students.

More Choices and Control

On-campus housing often comes with many restrictions and little control for students. When renting off-campus, you have far more options and stewardship over your space.

For instance, you can choose your roommates, unlike in college dorms, where you might get paired with a total stranger. You can also enjoy having more control over the area you live in and what's nearby.

While exploring different rental options, you can compare prices and weigh your choices. You have more freedom to find a property that has the features, amenities and location you want — something you cannot do with dorms or other types of on-campus housing.

Convenient Parking

Many colleges do not let all students keep a car parked on campus. In some cases, only upperclassmen can purchase a parking pass to drive to class and park where they want to. They have these rules to limit how many vehicles are on campus and how many spaces they need to accommodate everyone.

Off-campus, you enjoy the freedom of having your car whenever you need it, including when you want to:

Drive home for the weekend.
Run to the grocery store.
Commute to work.

A rental property typically has convenient parking that tenants don't have to pay extra for.

The amenities for off-campus housing are also often more plentiful than on campus. For example, you get access to a full kitchen, not just a minifridge and microwave.

Fewer Distractions and More Space

One of the greatest benefits of off-campus housing is having more peace and quiet. College campuses can be busy, loud and hectic. Moving to a rental property away from the chaos can greatly benefit a student's work ethic. An apartment has far fewer distractions and interruptions than a dorm room.

You cannot control the noise or activities going on around campus. Those living in an off-campus apartment can enjoy a more serene study environment with less outside noise. Having more space is also advantageous, and it helps students live and study more comfortably.

Year-Round Housing

Students who live in dorms or other types of on-campus housing typically have to move out during the summer months and move back in when school starts in the fall. By opting to live in off-campus housing, you can enjoy having a place to keep your stuff all year long — no need to move your stuff multiple times.

If you work on or near campus when classes are not in session, having an apartment or townhouse where you can stay throughout the year can be highly beneficial.

Adult Responsibility

Among the greatest perks of living in off-campus student housing is learning to manage more adult responsibilities. While living in a dorm is the first taste of freedom for many young adults, they still have to answer to a resident advisor and follow all the guidelines of dorm living.

When you move into your off-campus housing, you are responsible for taking care of your space, getting your rent check in on time and communicating with your rental property owners and landlords. You learn a lot about being an independent adult and managing a household.

Some rental properties will also allow you to have a pet , which is much tougher or even impossible if you're living on campus.

More Privacy and Freedom

Another leading benefit of living off-campus is having more privacy and freedom. You don't have to share communal space with strangers, which means no waiting for a shower or getting dressed in a dorm's close quarters. Instead, you have the time and space you need to get things done on your own schedule.

Off-campus living also means no resident advisor to answer to and no strict curfew. If you want to have friends over to study or hang out, you don't have to worry about dorm restrictions or lights-out rules.

Healthier Options

Universities and colleges are not known for supporting the healthiest lifestyle. Between meal plans, parties and late nights, the on-campus experience can be pretty unhealthy.

When you rent a place away from campus, you can set yourself up for success and choose options that are better for you. For example, you can prep healthier meals because you have your own kitchen to prepare and store food.

The hustle and bustle of on-campus life can interfere with getting a good night's sleep. Living off-campus with adult neighbors means you are more likely to get better sleep, even on a Saturday night.

Building Credit and Rental History

Living away from the university community and campus can help students start building two important things — credit scores and rental histories. Both of these factors will make life significantly easier in the future.

If you pay rent and report it to credit bureaus , you can start to boost your credit score. Good credit means better insurance rates, lower credit card interest and more financial options.

Another way to increase your credit score while living off-campus is to pay your monthly utility bills on time. By paying rent on time and taking great care of your unit, you can also build a positive rental history to show rental property owners when it's time to get your next place.

Cost Savings

Living off-campus can help you save money as a college student. Parking is usually cheaper or entirely free. You also have more control over how much you spend on things like your utility bill and groceries. Meal plans tend to be one of the largest expenses for students, so getting your own food can make a big difference.

Find Off-Campus Rental Properties from AHPM in Your Location Today

If you're looking for an off-campus rental property in Central Pennsylvania or the Baltimore Metro area, turn to American Heritage Property Management. We have rental properties near Shippensburg, Elizabethtown, York, Lancaster, Baltimore and more!

With over 40 years in business and nine offices, the AHPM team can help you find the right off-campus home near your college or university. We make it easy to pay rent, chat with us or submit a maintenance request from the convenience of your online tenant portal.

Are you ready to get started? Browse the rental properties from American Heritage Property Management, or contact us to learn more today!

Why You Should Invest in Property in Reading, PA

Wed, 16 Aug 2023 14:29:59 GMT

Reading, Pennsylvania, offers plenty to love for nature enthusiasts, history-minded individuals and anyone looking to explore the best of the East Coast. The town is just a short drive to cultural hubs like Philadelphia, Baltimore and New York City. You'll find plenty of residents taking weekend trips to the Jersey Shore and even more staying close to home, experiencing some of the great walking trails and local parks.

A low cost of living and a high degree of safety draw all manner of people to Reading, from young business professionals to older people looking to settle down in retirement. Potential property investors need only to find the types of land they're looking for and start advertising to interested parties.

What to Expect When Investing in Property in Reading

Reading is quite a historic city in Pennsylvania , though it doesn't hold the same public renown as places like Gettysburg and Philadelphia. However, look no further than a Monopoly board to see its cultural impact through the Reading Railroad.

This city was once an active part of the Rust Belt. While there is still industrial work around the area, today, it's more residential, offering plenty of opportunities to settle down here.

Why Property Investment?

When you invest in property in Reading or the surrounding area, you're becoming a leader in the community , putting yourself in a position to make changes for the better. Even if you don't live in the community yourself, you're bringing in new people who want to improve Reading by living or working there.

New people and businesses are the only way to help a city grow, and doing your part as a dedicated property investor means hearing those needs and advocating for them.

Of course, there are plenty of benefits for yourself as well. Most notably, real estate investments give you a way to generate passive income.

This is especially true if you employ the help of a property management company. A good property management team will take care of everything from maintaining the property and fixing any issues to advertising your property, finding and interviewing tenants and collecting rent.

Make Life Easier With American Heritage Property Management

At AHPM, we work with you to maximize your investment. Pennsylvania is our home, and we do everything we can to continue making it a better place to live. We have over 40 years of experience serving as the go-between for property investors and tenants, so we know how to handle almost anything.

Request a free rental analysis for your property today.

Why You Should Invest in Property in York, PA

Fri, 04 Aug 2023 16:28:59 GMT

Just between Harrisburg and Baltimore sits York, Pennsylvania. Though not as well known as the surrounding cities, York is full of rich history, once serving as the capital of the United States. It's also the birthplace of vital pieces of American history, like the Articles of Confederation and the Continental Congress.

Parts of these awe-inspiring events still exist today, nestled in the heart of the city alongside an assortment of artistic murals, small businesses and impressive architecture. To live here is to love it, and property investors can find an abundance of buildings available to rent out to locals and transplants.

Getting to Know York, Pennsylvania

From early American history to the modern age, York, PA, has found ways to make its mark .

Today, many residents appreciate catching a baseball game at the York Revolution Stadium or visiting Central Market to get their weekly produce and a nice snack or two. In the evenings, getting a drink at one of the many local taverns is always an option, as is visiting one of the local squares to see what's happening in the community.

The city proper houses thousands in just a few blocks, and outside those limits, you'll find dozens of suburbs and open farmlands where even more make their homes.

Investing in Property in York

Whether you're interested in investing in commercial or residential properties, in suburban or urban areas, York offers plenty to choose from. Finding that perfect property or properties for you brings more than advantages for yourself — new property investors have the unique opportunity to shape the communities they buy real estate within.

As you infuse new life into the city, you'll start reaping the rewards right away. When you receive income from your new tenants, you can use it to maintain your properties and put some of the profit aside to invest in other interests, diversifying your portfolio.

If your focus is on growing your portfolio or you don't live close to York, consider hiring a property management team like American Heritage Property Management to handle the everyday duties your properties require.

Let AHPM Manage Your York Property Investment

AHPM is ready to take on your property so you can focus on what matters to you. We'll manage it all, from advertising your property and interviewing potential tenants to collecting rent and assisting them with anything they need. We'll even make repairs and handle the eviction process when necessary.

Explore your options today and request your free rental analysis .

Why You Should Invest in Property in Lancaster, PA

Fri, 07 Jul 2023 18:50:48 GMT

Many Pennsylvania residents consider Lancaster the heart of Amish County. While you will find plenty of farmland and specialty Amish stores in the area, it's also home to an impressive, young-feeling city with much for the average person to enjoy.

Noted as the best place in Pennsylvania to retire and one of the safest places to live in the United States, people flock to this location, offering a golden opportunity for eager property investors. See just how much this locale has to offer and whether it's worth your time to invest in.

Indie scenes, local produce and brand-name industries — if you're looking for a city that has it all, you've found it.

The progressive Lancaster General Hospital sits side-by-side with local arthouses, theaters and bars. On one side of the street, you'll find a tight-knit church, while the other plays home to diverse spaces of history and authentic small-business cuisine.

Travel a bit further out to find polished suburbs leading to rolling farmland that stretches for miles, the fruits of which often find their way into local markets downtown.

Residents in all spaces occasionally get a whiff of chocolate from the local Mars chocolate factory or the spicy, savory scents from the world's largest chicken barbeque.

Benefits of Investing in Property in Lancaster

Making property investments in such a versatile area can lead to immense advantages for both the property owner and their tenants. By managing a space for residential living or commercial sales, you have a chance to:

Help the community grow: Once you buy a commercial or residential property and start advertising, you're introducing new people to the area with new ideas and things to offer. Every city needs new life to continue to grow, and investing in property in Lancaster allows you to influence the future of this city.
Generate passive income: After you buy the property, you can hire a property management team to take care of attracting and maintaining tenants, filling out paperwork and fixing any issues on the property while you work on acquiring more properties and developing your investment portfolio.

Make Property Investment Easier Than Ever With AHPM

At American Heritage Property Management, our specialty is managing properties in Pennsylvania and Maryland. Whether you live in the area or not, you see how Lancaster properties can set you up for success, and our property care professionals are here to help make that happen.

From day-to-day property maintenance to interviewing and collecting rent from tenants, we do it all so that you can do more.

Why You Should Invest in Property in Harrisburg, PA

Thu, 22 Jun 2023 19:52:41 GMT

Seated in the heart of Pennsylvania, many people find themselves settling down in Harrisburg or one of its great suburbs to raise their families or enjoy their retirement.

It's known as one of the best places to live in the state, making it the perfect locale to invest in property and connect with inviting residents and local merchants. Discover all there is to love about investing in property in Harrisburg and decide whether it's the right place for you today.

Get the Facts About Harrisburg

As the capital of Pennsylvania, Harrisburg is a vibrant community full of art, politics and history. It sits along the banks of the Susquehanna River and offers easy access to well-known landmarks such as Hersheypark, the Gettysburg Battlefield and the Appalachian Mountains.

On weekends, residents take advantage of the area's many state parks. They might also drive to other U.S. staple cities like Philadelphia, Baltimore, Washington, D.C. and New York City, all reachable in a few hours.

Should You Be Investing in Property in Harrisburg?

Property investors are a vital part of any community, even if the investor doesn't live in the city proper. Furthermore, property investment can be of great advantage in the long term.

Investing in property in Harrisburg lets you do all these things simultaneously:

Help out the community: The people who live in Harrisburg love their city and want to see it continue to grow and thrive. Investing in residential and commercial properties allows you to offer support to new renters and bring new life into the area that can foster new ideas and help you make a mark on the city.
Protect yourself from the economy: The economy changes every day, and many investors live knowing their fortunes can change at any time. Owning real estate and collecting rent from tenants gives you some financial security during times of inflation and economic downturn.
Generate passive income: Finally, one of the reasons property investments are so popular is their ability to generate passive income. Once you've bought your property or properties, you can hire a property manager to take care of the day-to-day operations, including tenant screening, collecting rent and deposits and taking care of any property maintenance or repairs. From there, you can focus on other hobbies and projects while your investment property generates more funds.

Let AHPM Manage Your Property Investment

American Heritage Property Management knows Harrisburg well because we're part of the neighborhood. From the bustling Downtown businesses to artistic Midtown and cozy Uptown homes, we understand how to balance its impressive history while fostering growth.

Let us manage all your Harrisburg property needs, starting today with a free rental analysis .

Pet-Friendly Renting: Tips for Tenants and Landlords

Thu, 01 Dec 2022 14:41:37 GMT

Renting with a dog or another pet can be difficult. Many properties have pet policies preventing people with pets from renting. However, pet ownership has grown substantially during the pandemic, with the American Pets Product Association finding that pet ownership rose to 70% in 2021. That means around 90.5 million homes across America have pets!

Learn more about making their properties pet-friendly homes and having good pet policies in place. Doing so can open them up to a larger renting market.

How Has the Pandemic Impacted Pet Ownership?

The pandemic has dramatically impacted how we work, socialize and spend our money. Pet ownership has also seen many changes during this time. Many Americans decided to get pets to ease the loneliness of working from home, help them achieve their fitness goals or because they finally had the time to train their chosen pet.

The American Society for the Prevention of Cruelty to Animals (ASPCA) says that more than 23 million American households adopted a pet during the pandemic. That is nearly one in five households nationwide. A Forbes Advisor survey from early 2022 claims that 78% of pet owners acquired pets during the pandemic.

And pet owners are willing to spend on the new additions to their households. In 2021, American pet parents spent $21.4 billion on pet products that were not medically necessary and another $28.4 billion on dog food.

Tips for Renting With a Pet

As a pet owner, finding a new home to rent comes with a few extra steps. Here are a few tips for renting with a dog or other pet:

Research: Find out what pet facilities and resources are in the area. Are there any dog walkers, dog daycares and vets nearby? Are there parks or safe sidewalks to take dogs for walks? Ask for the pet policy upfront to know the exact pet restrictions.
Be honest: Be open about your pet, their behavior, size, breed, health and more. This will help your relationship with your landlord start on the right foot. Sneaking a pet into a property that isn't pet-friendly can cause problems, and potential legal action, later on.
Create a pet resume: Tell your pet's story and show them off. Highlight training certifications, referrals from previous landlords or neighbors and a detailed medical history. Mention if they are potty trained.
Be prepared for extra costs: Most rentals that accommodate pets will request an additional pet deposit or increase your monthly rent. Look into buying renters insurance and pet insurance. Renters insurance can help with property damage and liability costs, while pet insurance might cover certain medical expenses for your pet.
Get everything in writing: If your landlord has made an exception for your pet, make sure your lease is updated correctly before your sign it. Having everything in writing will protect both parties if any issues arise later on.
Take care of your pet: Ensure your pet is not left unsupervised for long periods, take them for walks and clean up after them. Put dogs on a leash when you leave or enter your property in case your neighbors have other pets or are wary of dogs.

Pet Policy Recommendations for Landlords

A pet policy can open your rental properties up to a bigger renting market. When creating a pet policy, you must be aware of the laws about renting with pets . The Fair Housing Act states that landlords cannot refuse reasonable accommodations for service animals in properties unless there is a danger to the animal, the tenant, the property or the other tenants.

Here are five things to consider when creating your pet policy:

1. Types of Pets

The best place to start is to figure out what pets you will allow. Cats, dogs, reptiles, birds, ferrets and more are popular with renters of all ages. But each comes with its own set of pros and cons. Research the potential impact of different pets on your property and the neighborhood to help you decide. Also, take into consideration the breeds of pets. If you own apartments that allow dogs, will you place restrictions on certain breeds or sizes?

2. Amount of Pets

Pick how many pets you will allow on your property. Bear in mind with exotic pets such as fish, limiting to one or two might be unreasonable. Have clear limits for different types of pets depending on the size of your property, the potential damage caused by multiple pets and the best practices for different animals.

3. Pet Fees

Decide how much more you will charge for pet-friendly rentals, if you will charge a higher pet security deposit and if you will charge a once-off pet fee. These amounts can change depending on the number of pets. For example, rent might be an extra $25 a month for one pet but an additional $40 for two.

4. Pet Screening

Make pet screening part of your policy. Only pets you have met or approve of can live in your rental units. It will give you time to get to know your potential tenant better and evaluate their pet. Make referrals from previous landlords a requirement where possible. Ask questions such as how long the tenant has had the dog. Where did they buy or adopt them? Who will look after the pet if your tenant is away? The answers will give you a better understanding of your tenant and their pet.

5. Pet Care

It is wonderful to allow pets on your property, but tenants must take care of them. Have a clause that states tenants are responsible for their pets' actions. Tenants need to clean up after their pets, ensure they don't disrupt neighbors, are adequately contained and are not allowed to escape. This also includes ensuring pets are vaccinated, spayed or neutered and tagged accordingly. Ask for proof and decide if you require tenants to take out renters or pet insurance.

Make Your Property More Appealing to Pet Owners

If you have decided to allow pets, you can make your property more appealing to pet owners with the following ideas:

Pet-friendly features: Avoid carpets on your property, especially in high-traffic areas. Consider laminate or vinyl floors as they hold up better to the wear and tear of pets.
Pet-friendly areas: Many pet owners look for properties with fencing for their pets as it allows pets to roam without escaping. If there are areas you want to make off-limits to pets, fences are ideal. You might even include a small dog park with agility course equipment.
Landscaping: Check for potentially poisonous plants and remove or fence them off. Also, be sure to have a spot of grass nearby for pets to do their business with a bag dispenser so owners can clean up after them.
Amenities: Highlight dog parks, vets, daycares and other amenities that appeal to pet owners in your area. Knowing that a vet is 10 minutes away or that there are dog walkers in the area can help promote your property to potential tenants.
Rent: You can charge more for pet-friendly home rentals, but you must keep your price reasonable. Pet parents will know when you are charging unreasonably high rents just because you allow pets and will feel you are taking advantage of them.

Pet-Friendly Renting for Property Owners and Tenants

There is a lot to remember when it comes to pet-friendly renting. American Heritage Property Management has been helping tenants and landlords for over 40 years. Our experienced team of property managers knows the tenant laws regarding pets in Pennsylvania and Maryland and has helped numerous landlords develop pet rental rules. For tenants, we have over 3,000 properties to choose from, including several pet-friendly options .

Landlords can benefit from our expert tenant screening and selection process , making it easier for you to choose which pets are allowed on your property.

Consult with APHM today for exceptional property management services.

Why Should I Use a Property Management Company

duncan.shea@appfolio.com (Appfolio Websites) — Fri, 12 Mar 2021 18:40:00 GMT

Hiring a property management company is a significant decision in the real estate investment market, but it makes sense on many levels. Letting a professional company handle your properties' day-to-day management frees up your time and makes owning real estate investing properties stress-free. It may even increase your profit margins.

What Do Rental Management Companies Do?

Should I use a property management company? How will it benefit me? Is it worth the cost? Before you can decide if you want to use a property management company, it's helpful to understand what they do.

How Do Property Management Companies Work?

Quality local property management companies handle a wide range of duties related to managing investment properties, including:

Marketing vacant rentals: Property managers strive to fill vacancies quickly to provide a steady stream of income. Since they're familiar with the local area, they'll know how to attract tenants to your property. They usually use online resources to reach a broad audience.
Finding and screening tenants: Someone may be interested in renting your property, but they might not be able to afford the monthly rent. A property manager performs a wide range of background checks — including credit history, previous landlord references and employment verification — to ensure the tenant is in good financial standing.
Handling leases and related paperwork: The rental property management company prepares and reviews the lease with tenants to establish clear guidelines for them to follow. Going over the lease agreement with tenants can help prevent future issues and evictions.
Collecting security deposits: After a tenant has passed screening and accepted the lease agreement, the property manager will collect the security deposit. They'll hold this money in escrow so that the funds are not allocated somewhere else by accident.
Collecting rent: Your property manager can help you determine how much monthly rent to charge based on comparable rates in the area. They'll collect rent from tenants and confirm that the check clears. Since most tenants have credit or debit cards now, they might even offer you an online portal so your tenants can pay you more quickly and efficiently.
Handling the eviction process when necessary: Property managers take care of tenants who have fallen behind on their rent by following appropriate eviction steps.
Providing monthly financial reports: Since property managers typically manage your funds, they'll provide you with information regarding your income and spending, including 1099s to help you file your taxes.
Performing maintenance tasks: Residential property managers will handle all your tenants' maintenance needs, including eliminating pests and replacing appliances. They usually have an in-house maintenance team that repairs and cleans your rental units.

A property management company essentially handles every aspect of managing your rentals and your tenants, saving you time and energy. You get the full benefits of owning investment properties without the hassle.

How Much Do Property Managers Charge?

When you work with a rental property management company, they often charge you the following for their services:

Setup fee: You sometimes have to pay a one-time onboarding fee to cover the cost of setting up your account and creating any material that introduces the new property manager to your current tenants.
Management fees: The property manager will typically charge you a percentage of your monthly rent to manage your property on a day-to-day basis.
Leasing fees: You may have to pay the equivalence of a month's rent or a percentage of it when you lease or re-lease a vacant property. This cost covers marketing to and screening of prospective tenants.
Maintenance fees: While the property manager will take care of any repairs or maintenance needed, you will be responsible for the cost of the needed maintenance, repairs or cleaning services.

As you go over your contract with your property management company, it's best to consult them about what specific fees you can expect to pay.

Who Benefits From Using Property Management Companies?

Not sure a property management company is right for you? Hiring a management service is beneficial for a variety of investment property owners. Some people who benefit from the service include:

Property owners who live far from their rentals
Investors with multiple rental properties
People who want the investment but don't know a lot about management
Experienced investors who want more freedom, less stress and more time
Owners who prefer a hands-off management approach
Owners who don't want to hire and manage staff
People with limited time or patience
Investors who don't want to wade through the legal aspects of renting properties

In other words, almost any property owner benefits from using a property management service. New investment property owners get professional expertise to handle the workload and ensure the operation complies with all applicable rules and regulations.

Benefits of Working With a Rental Property Management Company

Experienced property owners appreciate the opportunity to expand operations or reap the financial benefits without extra work. Let's look at some of the specific advantages you get as a property owner.

1. Ensure Compliance

Managing a rental property comes with many legal concerns you may not have considered when you purchased your property. Filling a vacancy takes more than just choosing a person to live in your rental. State and local landlord-tenant laws regulate the things you can do, from selecting tenants to handling inspections or initiating the eviction process.

Fair Housing laws also come into play when filling your vacancies. Because the laws can vary depending on the situation, you should understand the rules and regulations applicable to your rental unit's location. Failing to follow those laws can mean fines and other consequences, such as testifying in court.

Instead of sorting through laws and legal terms, let a professional property management company handle it. An experienced company is knowledgeable about local law. Their job is to follow the law so your investment properties remain in compliance.

Changes in those laws can also cause a problem for owners. Do you have time to keep up with housing law changes? A professional property management company stays current on housing laws so they can adapt how they manage your properties to stay in compliance.

2. Reduce Vacancies

Vacancies cost you money because you lose your steady income stream. It takes time to advertise your rental, post signs and screen tenants. Your time is valuable, so you lose even more by handling these tasks yourself. Hiring a property management company eliminates all that work on your end. A quality company uses marketing strategies to attract tenants to your properties so they can fill them quickly.

A property management company's screening and selection of tenants work to an owner's advantage. A property management company has the tools and experience to choose the rent-paying tenants for your property. With experience evaluating applications, they know what to look for.

They have access to background and credit checks, which allows them to eliminate poor candidates based on those qualifiers. Property management companies often fill vacancies much faster than you can on your own, which gets that income stream flowing again.

3. Eliminate Paperwork

The mountains of paperwork never seem to end when you own rental properties. From leases to monthly expense and income reports, paperwork takes up a lot of your time if you manage your real estate investments on your own. It's crucial to complete these forms accurately, correctly and promptly. Documentation must be neat and accessible should you need the paperwork.

If you can't stand the thought of sitting at a desk to complete the paperwork, consider hiring a company instead. Property management companies take over this responsibility. They create lease agreements and ensure they are completed and filed. They handle documentation on all aspects of your business so you have the records you need.

4. Access Resources

If you're new to owning investment properties, you may not realize how much goes into the operation. You need several skills, such as marketing expertise, legal knowledge, maintenance and repair abilities, conflict resolution skills and financial experience. Having expertise across the board is rare. You may feel comfortable in some areas but lack expertise in others.

In truth, no one person can be an expert in all these fields — that's why you need a team of experts behind you. When hiring a property management company, that's what you have — someone with skills in every aspect of property management.

A property management company staffs a wide range of experts in all areas of managing rentals. They have marketing professionals who know how to find tenants for your properties. They have dedicated maintenance and repair people or access to reliable, professional companies in those fields. They have accountants who handle the financial aspects of your business.

You could hire an accountant, lawyer, maintenance specialist and other experts in various fields. However, you'll likely pay a lot more for those individuals than you would after hiring a property management company. You get access to the connections of the property management company.

These companies are experts, so they often work with related service providers to handle every aspect of managing properties efficiently. Those connections can mean discounted rates on services, which makes the upkeep of your properties more affordable.

5. Offer Professional Tenant Services

Quality services keep your tenants happy. Happy tenants stay put longer, which reduces vacancies and ensures you a steady income stream from your rentals. If you have a full-time job, a family and other responsibilities, you aren't always available to field calls from tenants or rush over when a maintenance emergency happens. As a business relationship, it's sometimes more convenient not to personalize your dealings with tenants.

A quality property management company handles those tenant interactions and services on your behalf, saving you time and presenting a consistent, professional image. Round-the-clock answering services to accept calls about emergencies ensure your tenants have someone to help without waking you up in the middle of the night. Get peace of mind knowing they're taken care of without compromising your sleep, family time or other responsibilities.

Fast, professional maintenance is another primary component of the tenant experience. Whether it's an emergency, such as a burst pipe, or a minor inconvenience, tenant satisfaction significantly increases when you immediately address those issues.

If you can't drop everything to handle those concerns, consider hiring a company that can get there fast. A professional will complete repairs and maintenance correctly, which further enhances your reputation and saves you in the long run.

6. Enjoy Hands-Off Management

Some people prefer a hands-on approach, but others prefer to keep investment properties as income without the actual management aspect. Dealing with conflicts, delinquent tenants and day-to-day tasks takes a great deal of time and patience, and it can add stress to your life.

Hiring staff is an option, but you then add the commitment of managing other people, which comes with its own set of difficulties. The management aspect of owning rental properties is even more challenging if you don't have a background in managing people and operations.

A property management company lets you take a hands-off approach to handling your properties. You still have decision-making powers. You always get to decide what happens with your rental units. However, you eliminate the stress that can come with being in charge. Someone else can handle those issues that inevitably pop up throughout the day.

The hands-off approach is particularly beneficial when conflicts or difficult situations arise, such as tenants who are late on rent or break the lease terms. No one wants to handle a midnight call for a noise complaint.

The eviction process is another tricky situation you may not want to handle yourself. Property management companies have seen and heard things you could never imagine. That experience comes in handy when they must professionally deal with your tenant issues. You'll be glad to have the company in your corner should a problem arise.

7. Handle Long-Distance Management

Managing properties becomes more complicated when you don't live near your rentals. Whether you live on the other side of town or the other side of the country, that distance takes you away from your other responsibilities. You don't want to drop everything and travel to address an issue, collect rent or inspect the property.

The further away you live, the more difficult it is to manage the property. If you live in a completely different area from your rental, it's simply not feasible to travel to the location for those routine issues.

Using property management services lets you handle those long-distance properties without racking up the miles on your vehicle or taking up all your waking hours. Your tenants get a much faster response when someone local handles maintenance and emergencies, which keeps them happy.

Knowing you have a reliable option with the property management company can open up the chance to purchase new properties. Instead of limiting yourself to investment opportunities in your immediate vicinity, you can expand those search parameters to find additional property options farther away.

8. Manage Multiple Properties Easily

Owning more properties gives you increased income, but it also multiplies your workload. Keeping track of paperwork, responding to maintenance requests, tracking rent payments, handling complaints and keeping units full becomes much more difficult as you increase your investment property ownership.

That workload is even more difficult if your properties are in different geographical areas. You have more responsibilities and added driving time to slow you down.

Hiring a property management company lets you expand your investment portfolio without bogging you down with additional work. You get consistent management across all your properties, and you don't see an increase in your responsibilities since the company handles them for you.

All your tenants get the same excellent service without you feeling like you're shortchanging anyone. It's a cost-effective way to expand your business without the need to hire and manage staff or spend every waking moment handling the workload yourself.

9. Save Time

Unless you can devote yourself to property management full time, you likely need a little help getting things done for your investment properties. Every aspect of having a rental takes time. When you have investment properties as a side income, those tasks cut into your daily schedule.

Whether you have one property or one hundred, working with a property management company frees up time in your schedule for other tasks, work, family and recreational activities. In other words, you have a better work-life balance while still reaping the ownership benefits.

10. Save Money

How can you save money by spending money to hire a property management company? It sounds counterintuitive, but it's a wise financial investment for most rental owners. We've touched on many of the money-saving aspects, but let's dig a little deeper:

A decrease in vacancies: Fill your rentals faster when you let someone else find and screen the tenants. Shorter downtime between tenants keeps your rental income flowing.
Lower turnover: A quality management company keeps your tenants happy with exceptional services and responsiveness. Lower turnover saves you money in a few different ways. You maintain a consistent flow of cash coming in for the property, and you eliminate costs associated with finding new tenants, such as professional cleaning, repainting and making minor repairs.
Maximized rent: Professionals know how to get top dollar for your rentals. Having professional management is a major perk for your tenants, and they will be willing to pay for it. At AHPM, we use in-depth comparative market analysis to ensure your rental is the right price to maximize your income.
Controlled maintenance costs: When you handle your maintenance, you may end up in over your head, forcing you to hire a professional. Property management companies often have in-house maintenance or pricing agreements with local contractors to keep the cost of repairs under control.
Rent management: Stop wasting your time collecting rent and tracking down past-due payments. Your property management company handles all the financial aspects for you, including collecting rent. These companies have experience collecting rent from tenants who pay late.
Financial reporting: Get detailed financial reports on your rental properties to keep you in the loop without spending hours trying to do the finances yourself. An analysis of your investment helps you maximize the property.

11. Decrease Stress

Rental properties have the potential for high income, but they come with plenty of responsibilities. When you have to devote more time than you want to your rental units, you feel increased stress. Taking most of the responsibility off your plate significantly reduces your stress. You have a partner who takes care of the time-consuming management tasks and handles complications that arise. You'll enjoy rental property ownership much more when you eliminate the stress factor.

12. Increase Freedom

Managing properties yourself can severely limit your freedom. You need to be available for unexpected problems, making it difficult to do things like take extended vacations. Your personal residence needs to be within driving distance so you can handle issues that arise. The workload of managing day-to-day tasks might keep you so busy that you don't have the freedom to do the things you want.

A property management company eliminates those restrictions. You aren't limited to a particular geographical region for your personal residence. Buy properties in other states or move out of the local area if the urge strikes. When you have a property management company in place, you don't have to stick around. Less work on your plate frees you up to do what you want while still having the rental income to fund those activities.

How to Hire a Property Management Company

Learning how to find a suitable property management company saves you time and money. When you choose an experienced, reputable company, you get peace of mind. Follow these tips when selecting a management company:

Get referrals: Check with other local property owners to see who they use for property management. Firsthand recommendations are often the best way to start your search.
Interview potential companies: Don't just choose a random property management company. Schedule a time to visit the company and ask any questions you have. This initial meeting lets you decide whether the company is suitable for your needs.
Ask about policies: Question the company on things like the tenant screening process, rent collection procedure and maintenance policies. Verify how long the company has been in business. Asking questions helps you feel more comfortable with the company and better understand how the company works.
Get a quote: Verify the fees the company of your choice will charge. Ask for a quote so you know what percentage of your monthly income will go to the company.
Understand the services: The specific services a property manager provides may vary from one company to the next. Make sure you know what the company will specifically handle and what you need to do yourself.
Talk to other owners: Assess quality by checking on references from other owners who use the service. It helps to pay attention to the things the other owners like about the company and their complaints. Are their complaints major issues or minor annoyances? If you do hear a questionable complaint, check with other owners to see if they have similar experiences with the company.
Look for complaints: Determine the reliability of a company with a little research. The Better Business Bureau is a useful resource to check for those complaints. Be careful not to judge a company on only one complaint. While it could be valid, it could also be a case of a disgruntled client creating problems when there isn't one. If you see a consistent pattern, it could indicate that you should choose a different company.

Knowing how to choose a property management company that fits your needs is an essential step in efficiently running your investment properties.

If you own rentals in the Central Pennsylvania or Baltimore Metro area , contact AHPM about property management services . We'll give you a complimentary quote for our comprehensive services to get you on your way toward stress-free investment property ownership.

Tips for Buying Your First Rental Property in PA

duncan.shea@appfolio.com (Appfolio Websites) — Thu, 28 May 2020 13:01:13 GMT

Purchasing and leasing rental property is a popular decision among individual investors because it can be a versatile form of passive income. Why is buying your first rental property in Central PA a good idea? Central PA can be a great place to live and operate a business for several reasons, including its balanced proximity to large cities with small, community-oriented neighborhoods.

Buying a rental property in Pennsylvania can be a sound financial decision as well. Central PA offers various amenities that entice renters, ranging from top-rated restaurants to scenic landscapes.

When you buy an apartment and rent it out or purchase a commercial building you intend to lease, you get to decide how you manage your property — that includes screening tenants , deciding how to market yourself and choosing whether to partner with a property management company that can assist you in your daily operations.

In this guide, we'll discuss what you need to know about how to buy your first rental property, so you can start searching with confidence.

When considering your first rental property , take time to research everything about the structure and neighborhood. Do not make the decision lightly — for example, the right location could mean the difference between attracting several potential renters and struggling to gain traction.

Here is how to determine if a rental property is good:

The homes and businesses surrounding your potential investment property appear well cared for.
The property is located in a popular or up-and-coming neighborhood.
The neighbors around the property have glowing opinions of the area and local community.
The property is close to sought-after school districts, thriving businesses and recreational amenities.
The crime rate in the area is not too high for you or your tenants.
The structure is in acceptable or excellent condition.

Investing in rental property as a beginner might seem like a daunting task, but it doesn't have to be. Once you have a strong rental property investment strategy, you are well on your way to successful ownership. Here are a few tips that will earn you success when done right:

1. Analyze the Costs

A thorough strategy includes studying and analyzing all involved and potential costs. Those expenses include — but are not limited to — the following:

Property taxes: The county determines the property tax amount owed , though you should talk to your financial advisor or tax preparer about the possibility of a tax deduction.
Insurance: Landlord insurance could help protect you in the case of natural disasters and other types of property damage. It can also help you cover the cost of any tenant injuries that might occur as a result of the property damage.
Utility payments: Many landlords and property owners choose to cover the cost of some utilities for their tenants, such as water, sewer and trash. Consider which utilities, if any, you plan to pay for and determine the monthly cost.
Homeowners Association (HOA) fees: Some neighborhoods belong to a homeowners association, and you must pay a fee if you own property there. If so, see if the HOA also covers any utilities or amenities.
Ongoing maintenance: Landlords are responsible for ongoing maintenance both in and around the house or commercial building. Sometimes, this will be as minor as a pack of lightbulbs — and other times, it will be as significant as a new heating, ventilation and air conditioning (HVAC) system. Always make sure you have enough cash flow to cover the cost of routine and emergency repairs.
Renovations: Depending on the type of property you're investing in and its age, it may need initial repairs or renovations before you put it on the rental market, especially if the structure is unsafe.
Vacancies and emergencies: At some point, your property may sit vacant between tenants. Always have enough money saved to cover the cost of this vacancy, as well as any emergencies that could arise.

Once you have determined which costs you need to account for, consider working with a financial advisor to create a plan you can adapt and grow as you acquire new property in the future. Determine how much of an investment you can afford to make at this time and which offers will give you the best return on that investment long-term.

2. Know What You Want

If you're interested in buying and managing your first rental property, you're probably doing so because you want to earn a profit or diversify your assets. However, understanding what you seek as a rental property owner goes beyond your end goal. You also need to know what kind of property you want to own and what potential tenants you're hoping to attract.

For your first property, the two primary types you need to choose between are commercial and residential. Owning each kind comes with its individual advantages, and their differences go beyond the tenants leasing them:

Commercial: Commercial property includes retail and office buildings, apartment complexes, hotels, restaurants, malls and more. Many invest in commercial property because it provides longer lease terms and less tenant turnover than residential homes. It might be easier to find responsible tenants with a commercial property because applicants typically represent a business or large corporation. Commercial property deals are often more complex and challenging to navigate, however, especially with complicated zoning laws.
Residential: Residential property refers to single and multi-family houses, condos and townhomes, as well as undeveloped land lots. Residential property investments are often easier to navigate because of the milder zoning restrictions. Keep in mind that, depending on the length of the lease, residential properties usually have a more frequent turnover rate compared to commercial ones.

So, who do you want to market your property to? Of course, you want your rental to be versatile and appealing to all responsible tenants. However, depending on the location, property type and available amenities, your rental might be particularly attractive to a particular group of people, like students, retirees, families or small business owners. Here's a closer look at which property qualities they might be drawn to:

Location: If you already have a property in mind, its location can help you determine who might be most interested in renting from you. If you already know the audience you're hoping for, like a small business owner for your commercial space, use this information to help you choose the best location possible. Analyze the property's proximity to hospitals, schools, urban centers, shops, restaurants, parks and more. What is near your property that will entice or push away tenants?
Property type: What is the rental like? What features does it have that might attract certain renters? Multiple bedrooms, for instance, are a big draw for families. A commercial property with multiple rooms might attract individuals seeking office space.
Amenities: Finally, what amenities can you use to your advantage when advertising? What makes your property unique? Examples might include a pool, a spacious backyard, a basement or attic space, historic architecture and more.

While you can lease your property to numerous tenants, your target audience is the group on which you will focus your advertising efforts. For example, if your rental is in a college town a few minutes away from campus, you might adjust your marketing for college students seeking housing. To do this, you might use the internet and social media more than you would when advertising a historic home in a small, rural town with no nearby amenities.

3. Understand Local Laws

Your success as a commercial or residential rental property owner largely depends on your ability to research, understand and abide by all laws and regulations surrounding your property and its neighborhood, city, county and state. For example, some laws that all Pennsylvania landlords must follow deal with:

Equal housing rights
Marketing and advertising rights
Credit and consumer checks
Security deposits and how to establish, collect and return them
Environmental Protection Agency (EPA) and housing regulations, including the use of lead-based paint
The number of people who can live or operate on the property
Actions to take if the lease or your renters violate the law
Tenant rights, including quiet enjoyment, a safe and habitable home and the right to withhold rent
Laws for setting the lease, including adequate notice before termination

Understanding local laws also means abiding by all HOA regulations. In addition to following these rules, you should always have a written lease. Verbal agreements and handshakes have no place in a professional, legally binding business arrangement. A written contract protects both you and your tenants and establishes a clear set of rules, expectations and guidelines for all of you to follow.

4. Have the Home Inspected

One of the most important tips for buying your first rental property is to never purchase one before having it inspected by a professional. Doing this will help you avoid making a bad deal. You'll also know if any part of the house or building needs renovations or repairs before you start advertising to tenants.

Here are a few areas to consider and inspect before buying a rental property:

The building's structural integrity, including the foundation, windows and doors.
Cracks or chips in the paint and siding.
Outdated or incorrectly installed wiring.
Signs of damage, like standing water, pest infestation, mold and asbestos.
Roof problems, including holes, missing shingles, cracks and damaged chimneys.
Poor ventilation, insulation and drainage.
Broken outlets, light switches and fixtures.
Plumbing leaks.
Low water pressure and quality.
Clogged or missing air filters.

This is by no means an exhaustive list. Inspection professionals have undergone the training and certification necessary to check all areas of the home or business to help you make an informed decision.

You have analyzed the costs, identified your target tenants, researched the local laws and had your property inspected. Now, the real work begins.

Understand Your Responsibilities

It takes a lot of time, hard work, organization and attention to detail to own a rental property. Some daily and ongoing tasks you will be responsible for include:

Advertising your property.
Finding and securing renters.
Applicant screening and engaging with tenants.
Monitoring and scheduling ongoing maintenance and repairs.
Setting and collecting all deposits, including security and pet deposits.
Managing payroll for all employees.
Accepting and depositing rent , as well as following up with tenants.
Giving tours of the property.
Staying informed about all safety codes and local laws.
Hiring and maintaining staff, if applicable.
Choosing which outside contractors to work with, like construction or repair services.
Paying any utilities you are covering.
Upholding all property rules and living guidelines established in the lease.
Supervising your property and staying aware of what's going on, including safety concerns or difficult tenants.
Maintaining your insurance.
Enforcing your eviction policy .
Responding to phone calls, emails and inquiries from prospective tenants.
Reacting during emergencies, including pest infestations, natural disasters and fires.
Using any applicable online software for communicating with tenants.

This list does not include property-specific requirements or other circumstances that often arise during a tenant's lease.

Partner With a Property Management Company

As you can see, managing a rental property is a full-time operation. To stay on top of this day-to-day management, many rental property owners partner with a property management company. Property management companies provide professional tenant services, ensure compliance with laws, respond to all communication, create financial reports and much more.

Property management companies are the ideal hands-off solution if you are an owner who:

Lives in another town or state from your rental property.
Has other work or family responsibilities that require your time, attention and resources.
Wants to enjoy the benefits of property ownership without worrying about the daily duties involved.
Has more than one rental property.
Is unfamiliar with how to operate and manage a commercial or residential property.
Wants some extra assistance for more free time and less stress.

Contact American Heritage Property Management Today

Owning a rental property can be a great way to generate revenue and provide a service for your local community.

Whether you're interested in working with commercial or residential spaces, leasing property requires a great deal of time, attention and work. American Heritage Property Management is a full-service property management company that can help you take control of your Central PA property.

To learn more about AHPM services or get more information about property investment for beginners, contact a representative today .

What to Do When Tenants Leave Belongings Behind

duncan.shea@appfolio.com (Appfolio Websites) — Mon, 16 Mar 2020 13:21:17 GMT

What do landlords do when a tenant leaves property behind in a rental? You may think a landlord is free to dispose of any leftover belongings or furniture left behind by a former tenant, but the outcome of a tenant abandoning their personal property isn't always that simple.

What should you do if your tenant left belongings behind after moving out? Laws about a landlord's responsibilities can be complicated, which is why many landlord's may not know what to do when a tenant leaves belongings behind.

While you may be tempted to throw everything out and move on, this may not be the best solution for you. Instead, you'll need to take some legal steps, and since your tenant left abandoned property behind, they may owe you money.

Know the steps involved, such as alerting your tenant about their abandoned property and filing with law enforcement for removal of property. Whether you're currently dealing with belongings left behind by a tenant or you want to know what to do if you find yourself in this situation in the future, as a landlord, you need to know what to do if a tenant leaves their property behind.

Your first course of action after your tenant leaves the property is to review why they left. Depending on why your tenant left, they may still have tenant rights to the abandoned property. Before you take any action, ensure you know the proper way to proceed depending on the tenant's reason for leaving:

Tenant's lease ended: Did the tenant's lease end before they moved out? If a lease period ended, landlord rights to abandoned tenant property in most states include disposing of the belongings.
Tenant received a lease termination notice: Did you serve your tenant a termination notice of the lease? If your tenant left on time, you have the right in most states to dispose of the tenant's abandoned belongings.
Tenant left without notice: Did your tenant leave without notifying you? If so, this tenant may still have rights to their abandoned belongings. Check the local state laws before you sell or get rid of any of your tenant's property.
Tenant was evicted: Was your tenant evicted and left belongings behind? If you evicted your tenant, you may need to ensure that they receive their belongings. Usually, evictions are completely handled by local law enforcement. This includes property removal and determining what property you may sell to recoup any unpaid rent.

Before you begin removing your previous tenant's property, check your rental terms and agreements, along with your state laws and local laws that cover property, tenants' rights and landlord rights to abandoned tenant property. State and local laws should inform you about the proper procedures for handling abandoned tenant property in your area.

Did the tenant sign anything about their belongings? No matter how thorough your tenant screening process , you may still run into issues with your tenant, including abandoned property. Check your rental agreement for terms that refer to this sort of situation. Your contract may entitle you to a fee for disposing of this previous tenant's personal property, or your contract may not address this situation at all.

If this situation isn't already addressed in your lease agreement, consider adding a clause to your rental contract about belongings being left behind in the rental property by the tenant.

Packing is a tedious chore during a move, and sometimes, tenants decide they don't need to clean up their trash or take all of their belongings with them, especially if there are items they no longer want. Though abandoning small belongings, furniture or even cars may not seem like a big deal to your tenant, it can become a costly issue for a property owner. This is especially true for large items that are more expensive to dispose of.

What should be included in your clause about tenant abandoned property?

Responsibility for property removal: A statement that the tenant is responsible for the removal of their belongings or the belongings will be disposed of.
Disposal fee: A statement about a disposal fee for a large amount of trash or for any tenant property left behind when the tenant moves out.
Storage agreement: An optional agreement to keep the furniture on your property for an amount of time. This gives the former tenant a grace period before they must return for their belongings.

You can speak with a lawyer for legal advice about what to include in this clause. Even if it seems a little excessive to include this clause in your rental agreement, you'll enjoy the peace of mind of knowing that you're protected if faced with this expensive situation.

You'll want to familiarize yourself with local and state laws about your rights as a property owner and your tenant's rights. To do so, you can do your own research online, contact a landlords' association or seek help from a lawyer.

To further protect yourself and your landlord rights, seek legal advice about a tenant who left property behind, whether they left a car, furniture or other personal belongings. A lawyer will be more knowledgeable about local and state laws regarding property owner rights and tenant rights.

The next step in the process is notifying the tenant about the belongings they left behind. Sending out a legal notice that informs your tenant that they've left behind personal property and that they have a certain amount of time to collect their belongings is required in many states.

1. What Should Be Included in the Notice

What should this notice to your former tenant include?

A description of the property that was left behind
The location where their property will be stored
The estimated value of their property
The deadline by which the tenant must retrieve their property, usually indicated by your state or local laws
The steps you will take if the property is not retrieved by the deadline
A request for a return receipt

Ensure all of this information is included before you sent out the notice to your former tenant.

2. How to Create an Inventory of the Abandoned Property

To write a notice for abandoned property, you'll need to document information about the abandoned belongings. Bring an objective observer with you while you take inventory of the former tenant's property. Having an objective observer will protect you in the event that any fraudulent charges are brought against you.

You may also want to bring a camera to take pictures and videos of the items the tenant left, which can be helpful documentation if the situation escalates. Additionally, make sure you don't open any property that is locked until a definite decision is made on how the property will be handled.

As the property owner, the responsibility of creating an inventory of all the items a tenant left behind falls to you. You'll need a written or photographic record of every item left behind. Ideally, you should record the inventory both photographically and in writing. Record as much detail as you can.

3. What If the Former Tenant Claims They Didn't Receive the Notice?

Include in the notice a return receipt request from your former tenant. If your tenant does not return to claim their personal property and shows up after the deadline has passed, you can use this receipt as proof that they did receive the notice. This is especially useful if your former tenant tries to claim they didn't know about the deadline by which they had to return for their belongings.

Has a tenant left belongings in a rental property you own and now wants to return to the property to claim them? If you were successful in getting in touch with your former tenant, they may decide they want to return for their property before the deadline you've given them. If the tenant decides they want to reclaim their property, you'll need to make sure their belongings will be available for them to retrieve.

For larger items, such as furniture, you and the tenant should agree on a time when the tenant can return to remove the belongings. This should be a reasonable time and day for both you and the former tenant and within the period specified in the legal notice you sent.

When the tenant returns to claim their possessions, make sure you have the cost for the storage and removal of the tenant's property on hand. You should be reimbursed by the time they come for their belongings. This reimbursement can come in the form of a deduction from the tenant's security deposit or in the form of a payment made to you.

If a tenant moved out and left furniture behind, they may have done so intentionally. Maybe they no longer want the belongings, they didn't want to deal with moving large pieces of furniture, or they didn't have room for all of their belongings in their new residence. Whatever the reason, a former tenant may decide they don't want to return to claim their property.

Now that the belongings are solely your problem, what are your options? If your tenant doesn't want their property, you may be able to sell, donate, throw out or keep the belongings the tenant left behind.

Has the notice period passed without your former tenant returning for their belongings? Does your former tenant not have any rights to abandoned property under your state and local laws? If so, you can move on to the final step of what to do when a tenant abandons property in your rental — selling or getting rid of their belongings.

Unless your state requires that abandoned property be turned over to the state, you can dispose of your former tenant's property as you see fit once the notice period expires.

To get rid of the belongings as efficiently and economically as possible, follow these tips:

1. Dump Trash

Now is the time to get rid of any trash if you haven't already. If there are no other requirements set by your state and an item is clearly not valuable, then you can remove it.

What if the costs for removing this trash becomes quite expensive? Fortunately, you can legally deduct the cost of trash removal from your tenant's security deposit. Make sure to subtract the expense of removing the trash before returning the remainder of the security deposit to your former tenant.

2. Keep Items

Though many property owners prefer to clean out the space to make room for their next tenant, you can also legally keep these items in your rental property.

Maybe your former tenant brought their own pieces of furniture to your rental property. Depending on the quality of the items and how well they fit with the interior design of your property, you may want to consider keeping the items on the property for the next tenant to use.

3. Hold a Sale

In many states, property owners are required to organize a public sale of the former tenant's abandoned belongings. You can work with a local bond agency to set up the sale, and you can also typically use the proceeds to recoup the expenses of advertising, storing and selling the items. Check your state laws to determine whether you can keep the rest of the profits from the sale or whether you need to give the remaining proceeds to the state.

If you aren't required to hold a public sale in your state, you can sell the abandoned belongings on your own and keep the profits.

There are exceptions to what items you can get rid of. The following are items you do not have to worry about removing:

Vehicles: If a tenant moved out and left a car, the vehicle would be considered abandoned and should be reported to local law enforcement. They will handle the filing and removal of the vehicle.
Permanent fixtures: If permanent fixtures were among the belongings a tenant left behind on the rental property, they can be considered part of the property and yours to keep. Permanent fixtures include items like lights or built-in bookshelves, and you don't have to report them. If you don't approve of a permanent fixture, you can deduct the cost of its removal from your tenant's security deposit.

If you have any doubts about what you are not allowed to remove, review your state and local laws or seek legal advice.

A property management service can help property owners handle a tenant's abandoned property. Property managers are experienced in dealing with tenant turnover, so they're familiar with the process of moving a tenant out and tackling the issues that can arise.

When you work with a property management service, the process of handling abandoned tenant belongings is much easier.

Guide to Renters Insurance In Pennsylvania

Thu, 26 Dec 2019 15:27:00 GMT

When you rent a property, your landlord is only responsible for the structure itself. When a natural disaster or other incidents damage the structure, they — or their insurance — are responsible for covering the cost.

They have to fix the plumbing when there’s a leak or replace certain appliances when they break, but they are not responsible for any of your property. For example, if your belongings are stolen or a fire starts resulting in the loss of your family heirlooms, your landlord does not have to cover the cost.

That’s where personal rental property protection — or renters insurance — comes in handy. Renters insurance will cover the cost of damage or loss caused by several incidents, including theft, natural disasters, and vandalism.

What Does Renters Insurance Cover?

Renters insurance is a great way to protect your belongings from specific unforeseeable incidents. However, just like any other type of insurance, the details of a rental agreement can vary, depending on the state, property or insurance agency. To find out what your rental insurance policy covers, you’ll need to read your agreement thoroughly and consult with your insurance agent.

However, there are a few qualities that are common in most policies. Renter’s insurance generally covers:

Your Personal Property

Most rental insurance policies will either replace or cover the cost to replace your personal property if it’s damaged, lost or stolen. Personal property may include any electronics, furniture, jewelry, clothes or appliances of value. Your property will be replaced if the damage was caused by:

Personal Liability and Medical Bills

If you have guests at your rental property, renters insurance will cover any medical expenses if someone is hurt on the premises, whether from a slip, fall or animal bite. The policy should cover any medical expenses incurred from the injury and any liability if the injured guest takes legal action.

Temporary Living Expenses

If your rental property is damaged and you’re unable to live there anymore, a renters insurance policy may cover the costs of a temporary living situation. These costs could be hotel bills or any food bills that exceed your usual grocery budget. Your insurance will likely cover these costs until your rental property has been repaired or until you find a new place to live.

Other People’s Property

Renters insurance doesn’t just cover your property. If you have a valuable item in your rental property that you’ve borrowed from another person and it gets broken, lost or stolen, the cost of the item may be covered by your insurance policy.

Personal Property Stored Elsewhere

Most renters insurance covers all your personal property, even if it’s not stored within the walls of your rental property. If your property is damaged while stored in your car or in a storage facility, it may be covered by your policy.

What Doesn’t Renters Insurance Cover?

While renters insurance is an invaluable tool that can protect you from specific incidents, it doesn’t cover everything. Although every policy is different, most do not cover:

What Should I Consider When Choosing a Renters Insurance Policy?

Figuring out what you need to know before you buy renters insurance is a critical step. Since every policy is different, your best bet is to find an insurance agent you trust and work out the specifics of your insurance policy with them. However, there are a few things to consider before you go policy shopping, like:

How Much Coverage Do I Need?

To determine how much coverage you’ll need from your renters insurance, you’ll need to consider several factors, like the value of your property, your budget limitations, and where you live. While every policy is different, most policies are broken down by:

When you go to purchase renters insurance, you and your agent will review each component to decide how much coverage you’ll need in each category. Taking an inventory of your belongings helps you determine how much property damage coverage you’ll need.

Take pictures of your valuables and record their serial numbers, if they have one. This will help you make a claim if they are stolen or damaged beyond recognition. If you can, make a list of all the valuable items you own and keep it somewhere outside your rental property, like at a trusted friend’s home or as an attachment to an email you’ve sent to yourself.

You’ll also need to consider if you need any additional coverage for especially valuable items. Basic insurance might not cover items valued over a certain dollar amount, so you’ll need to consult with your agent to decide if you need extra coverage to protect your most precious belongings.

Do Landlords Require Renters Insurance?

If you are renting a piece of property or apartment, you are not required by law to purchase renters insurance. However, your landlord may require you have renters insurance before you can move into a property. If you don’t purchase insurance, they have the legal right to reject your application.

Every landlord has a different policy. Some require that you simply purchase the insurance, while others may specify how much liability coverage they expect you to have.

Landlords often require tenants to have coverage to protect themselves. Having insured tenants reduces the landlord’s liability and the chance that you will try to collect damages from them. If your property is stolen or someone is injured in the rental property, a landlord is less likely to be sued or held liable if the tenant’s renters insurance covers the cost.

To prove you’ve purchased the insurance, most landlords request a copy of the policy. However, some may require that they are listed as an additional interest, meaning that they will be notified if the policy is lapsed or canceled.

What’s the Cost of Renters Insurance?

Many renters, especially those with tight budgets, tend to skip renters insurance because they think it’s too expensive. However, on average, renters insurance ranges from only $15 to $30 per month .

If you still think it’s too expensive, consider the cost of the medical and legal bills you’d have to pay if a guest gets injured on your rental property. While it might seem you’re paying for nothing, you’re actually paying to avoid a much higher expense in the future.

How Does Renter’s Insurance Coverage Work?

While the specifics of each renters insurance policy are different, the basics remain the same. You and your insurance company will arrange and sign an agreement, determining the price you’ll pay each month, how much coverage you’ll receive and any other relevant details.

As a renter, you will pay the insurance company a monthly fee. If and when an incident occurs that falls under the coverage provided by the insurance company, they will cover the cost of the property damage, legal fees, medical bills, etc.

Actual Cash Value vs. Replacement Value

Generally, there are two types of renters insurance coverage for property damage: actual cash value or the replacement value. If you have an actual cash value agreement, your insurance will cover the cost of the property when you bought it minus the depreciation. For example, if a two-year-old television is stolen from your rental property, the insurance company will pay you the equivalent of a two-year-old version of that television.

If you have replacement value coverage, your insurance will cover the cost to purchase the same or a similar item. For example, if a two-year-old television is stolen from your rental property, the insurance company would pay you the cost of a new television.

Since the payout is typically higher, the monthly cost of insurance with replacement value coverage is more expensive.

How Do I File a Claim?

When an incident occurs at a home you’re renting that you think might be covered by your renters insurance, there are a few steps you need to take. If property damage has occurred, the first thing you need to do is report the damage to your landlord. If the damage or loss was caused by theft or vandalism, you’ll also need to report it to the police as soon as possible.

Next, you’ll want to report the damage or theft to your insurance company. Some policies have a time frame in which you need to file a claim, so be sure to contact them as soon as possible. When you call, they’ll likely ask you for your policy number, when and where the damage occurred, and a rough description of what was damaged or lost. Even if you don’t have a detailed list yet, it’s important to notify your insurance company as soon as you can. You can get them a detailed list once you’ve had time to assess all the damage.

The next thing you need to do is evaluate the damage and determine the value of the items damaged. This is where your photographs and documentation comes in handy. Hopefully, you’ve already taken pictures and estimated the cost of your more high-value items. If the item is electronic, it helps to document the serial number as well.

If you don’t have any documentation, try to dig up any receipts or old photos that the items might appear in. It’s not impossible to file a claim without proper documentation, but it makes the process go more smoothly.

Is Renters Insurance Right for Me?

Is renters insurance worth it? The short answer is, yes. Renters insurance, just like any insurance, is protection. You hope you’ll never need it, but you’ll be glad you have it when you do.

When it comes to incidents like theft, natural disasters, freak accidents and injury, people tend to think it could never happen to them. However, there were over 1.4 million reported burglaries in the United States in 2017, resulting in approximately $3.4 billion in property losses. There were also over 371,000 residential fires in 2017 , resulting in over $7.7 billion in property damage. When you consider the low monthly cost and the range of protection, the benefits of renters insurance greatly outweigh the downsides.

How Do I Find Rental Property Protection?

Learning how to get renters insurance, how it works and if its right for you can be a challenging process. When you rent a property managed by American Heritage Property Management, we can help guide you toward the best renters insurance plan for your needs.

We’ve partnered with HomeSale Insurance Services, which works for you to make sure you get the best coverage that’s tailored to your needs and budget .

At American Heritage Property Management, we want to help you find the perfect rental home and a tailored insurance plan to go with it.

To browse our listings in Central Pennsylvania and Maryland , visit our website or contact us today!

Pros & Cons of Buying Rental Property in a College Town

Thu, 08 Aug 2019 12:45:00 GMT

Off-campus housing in a college town is consistently in demand. Wherever there is a university, there will be hundreds of students who need a place to call home — at least for the year. If you’re looking to begin renting or expand your scope as a landlord, college town property is an excellent investment.

However, you should understand the nature of college rentals before committing — it’s different than leasing to standard tenants. This guide will take you through all the pros and cons of renting to college students, as well as the best ways to manage your properties and mitigate any potential risks.

Benefits of Buying Rental Property in College Towns

As far as renting goes, the areas surrounding universities are moneymaking opportunities. The units are in a prime location, and most students will be more concerned with practicality over style, especially if it’s their first apartment. If you can take a property and make it suitable for tenants, then you’ll have no problem finding applicants and filling any vacancies.

There are many benefits of renting to college students, staff and professors, including the following.

1. Units Sell Themselves

In most cases, college towns are lively communities. They often have a broad range of surrounding activities and businesses, such as restaurants, galleries, a variety of shops and nightlife. Colleges are geared toward attracting young people, and the rest of the town typically follows suit. Since the neighborhood is already working to draw in youthful crowds, you won’t have to spend as much time and money on marketing. The availability itself will practically do the work for you.

College towns also tend to promote walking, especially in larger cities where students are less likely to own or need a car. Generally, areas surrounding universities are more heavily patrolled by campus security and city officers. Even if your renters aren’t young students, they’ll likely appreciate being in a location where walking is less of a risk. Also, if the property you rent is in close proximity to the academic buildings, the distance will make your units even more desirable.

2. Large Pool of Applicants

College property is consistently in high demand. Every year, there’s a new flood of students who need to find living arrangements. Most universities have a large percentage of undergrads and postgrads who relocate from other cities. Additionally, there are staff members and professors who move for job opportunities. The constant supply of potential renters means there will naturally be a larger pool of applicants for every local property manager.

While some colleges offer on-campus dorms, they are hardly competition. College students are getting their first taste of freedom from home, and having an apartment of their own is an exciting prospect. There’s nothing like living where all the action is. And even though there is generally a quick turnover rate for student tenants, finding replacements shouldn’t be difficult. Faculty, staff, graduate students and interns who accept positions with the university will be more inclined to stay around longer.

3. Market Rental Rates

Buying rental properties near colleges is an investment, like any other area of real estate. As the economy fluctuates, so do the values of housing and rental rates in different areas. But, since your rentals will be in consistently high demand, you’ll have the advantage of a stable value. With that kind of reliable need, you can charge market rates without driving away applicants or seeming like a crook. You’ll likely be right alongside the standard set by other local properties.

4. Low Vacancy Rates

Despite the quick turnover and seasonal breaks, college town properties have consistently low vacancy rates. In the fall of 2018, the vacancy rate for student housing in the U.S. was at 2.6%, a figure that is projected to drop even lower. While the percentage increases over the summer months, it isn’t a lasting change. Also, your student tenants may stick around over the breaks to continue working, take summer or winter classes or have access to the university resources.

If you want to secure tenants even in the offseason, you can have them sign full-year leases. You’ll still have plenty of applicants who intend to stay, whether they need or want to. Yearlong leases are also attractive prospects for individuals who work at the university.

Risks of Renting to College Students

While there are plenty of benefits to renting to college students, there are also a few risks involved. The differences between leasing a standard apartment and offering units to students are significant, so you should know what you’re getting into as a landlord beforehand.

Here are some of the potential risks involved in renting to college students.

1. Tenant Turnover Rate

While there will always be incoming students, all of them are bound to graduate or leave at some point or another. The amount of time they stay can fluctuate from a few months to well over the standard four years, depending on their program. In some cases, tenants may even need to terminate a lease early, which can leave you in a tight spot when you were expecting the rental payments. Consistently needing to advertise the space, prepare it for new occupants, screen applicants and choose responsible tenants can take a lot of time, attention and money.

2. Off-Seasons

Universities go on a break between semesters. Classes are limited, less staff is required to run the campus and even some of the smaller stores close up. If the area surrounding the college is more rural or majorly focused on the student population, the town might seem deserted in the summer and winter. Selling rentals during these periods can be a challenge, especially considering the summer break typically lasts several months. Students won’t want to pay for times they aren’t using the space.

3. Property Damage

One of the largest concerns of most college town renters is property damage — and rightfully so. It’s not uncommon for student housing to take on heavier wear and tear than a standard unit. For one, young tenants tend to be more neglectful of maintenance and cleaning, especially if it’s their first apartment. They may also host parties and get-togethers on the weekends, and depending on the people they surround themselves with, the unit could see a significant amount of damage.

4. Not a Passive Investment

If you’re looking to rent out a unit and forget about it until the lease is up, then college town property is not for you. Student rentals need to be properly maintained and monitored at all times, as well as repaired quickly if necessary. For most tenants, it’ll be their first time living away from home or in an apartment rather than a dorm, so it’s likely that they’ll have a lot of questions that need answering.

You’ll need to be attentive and available as much as possible. From broken appliances to interpersonal conflicts with roommates or noise complaints from neighbors, college properties require a lot of management.

How to Minimize the Risks

While there are risks involved with renting to college students, you can mitigate them in several ways. You need to be fully prepared to take on the responsibility and know what to do when faced with difficult situations. If you know how to prevent problems before they can begin, you’ll have a much better rental experience overall.

As a college town property manager, you should:

Tailor the lease: Not all leases are created equal, nor should they be. Leases for student renters should be clearly defined, specific and in the best interests of you and your tenants. Include signature spaces for co-signers and clauses for noise, maximum occupancy and damages. If you prepared the lease on your own, it may be a good idea to have it reviewed by a lawyer, just so you know you’re covering all the bases.
Have parents or guardians co-sign: Whether or not your tenants are minors, you should have co-signers — the students’ guardians — on the lease. Including them will ensure there is a second responsible party in the case that the student can’t pay or becomes problematic.
Be ridiculously specific: It may seem silly to include details that should be common sense in the lease, but it’s necessary. Detail everything you could be held liable for if it isn’t in writing. Some potential restrictions might be prohibiting burning candles and weapons, or even odd rules like no climbing on the roof if there’s a point of access.
Require the student to pay utilities: New renters might not understand the value of water and electric. But, making payments their responsibility will make sure they learn to be mindful of how many lights they leave on and how long they shower. It’ll also prevent them from racking up an exponential bill for you to pay.
Screen tenants and guardians: When you’re considering applicants to potentially take on as tenants, perform a thorough screening process for the students and their guardians. Should you need to lean on the co-signers, it’ll be helpful to know they’re reliable backups. As far as the student goes, look for prior dorm or apartment evictions, legal issues or disciplinary probations and contact their references. For co-signers, pay attention to credit scores and legal issues.
Hire a monitor: Even if you trust your tenants to the fullest extent, it’s always a good idea to hire someone as a property monitor. Similar to a resident assistant in a dorm, this person will simply keep an eye out for any troubling behavior or potential issues. Offer a free rental in exchange, and you’ll probably have more than a few interested students.
Rent by room: Rather than having a single lease agreement for each unit or property, rent your spaces by room. It’s more convenient for you and the rest of your tenants, especially if any issues arise. With individual leases, you can evict a single tenant, or a student can terminate their lease without affecting the others.

If you follow all of these tips diligently, you will have a much lower chance of complications later down the line. It won’t always protect you from taking on a tenant that turns out to be irresponsible, but it will allow you to quickly recognize issues and create a solution.

How to Screen Student Tenants

When you screen applicants for a rental, there are standard questions you may ask or steps you take to ensure the individual is a responsible tenant. However, there are a few different variables you need to consider when the applicant is a college student. Generally, the screening process for a student should be similar to a regular one, but more thorough and inclusive.

For every serious student applicant, you should:

1. Check Their Histories

Before you agree to take on a student as a tenant, you should conduct a background check first. It will give you a good idea about their character and how responsible they are. Take a look at their employment history, credit score — if they have one — and legal records. Hopping from job to job, a low score and prior offenses may signal that the individual will be unreliable. On the other hand, a stable job situation and clean reports are a great sign.

2. Contact References

Ask the potential tenants to include several reliable references — this does not include close friends and family — on their applications. Once you have their contact information, follow through and call one or all of them. Former landlords and employers will be able to tell you how responsible the applicant is and what it might be like to take them on as a tenant. Whether their account is positive or negative, you can make a more informed decision.

3. Screen the Co-Signers

If you really want to be thorough, you should screen the co-signers — the students’ legal guardians — as well. Not only are they some of the applicant’s biggest influences, but you may also need to rely on them should the tenant fail to fulfill the lease agreement. Conduct a background check just as you would with the student, although your focus should be mostly on credit score.

4. Watch for Early Red Flags

If you pay close attention, you may be able to spot a few warning signs of irresponsibility before taking a student on as a tenant. Some red flags to look out for include:

One or more of these factors may indicate the student would be an unreliable tenant. You can save yourself a lot of trouble by paying attention during the applications and screening process. However, if a student exhibits one of these traits or behaviors, it does not necessarily mean you should reject them outright. You have to consider any of these instances alongside their references, screening and application.

Types of Investment Properties in College Towns

Although apartments seem to be the most prevalent form of college rental, you have several options in terms of property type. Depending on the university location, whether the area is rural or urban and what the surrounding residencies are, one kind of unit may stand out as most desirable. Your choice should also reflect your investment budget and the amount of time you’re willing to put into the property.

College town investment properties include:

In addition to having several options to suit your needs, you’ll also have the advantage of investing in a valuable market. Rental rates for student housing in the U.S. is growing steadily by about 3.3% each year , meaning your purchase will pay itself off over time, and you’ll be able to make a solid profit. If any of these sound like golden opportunities to you, consider buying investment properties in college towns.

However, you’ll need careful management to complement your units, especially if you take on several properties at once. Leasing in a college town can be a challenge, but you don’t have to do it alone.

Let American Heritage Property Management Help You

When you’re ready to take on college rentals, American Heritage Property Management can help you manage any unit. Since 1981, we’ve been providing full-service property management for landlords across Central Pennsylvania and in the Baltimore Metro area . Our company cares for over 3,000 units and is still growing.

Our experienced professionals take care of everything from tenant screening to preparing lease agreements to overseeing daily operations. We even have a licensed maintenance division that can handle issues 24/7. We also provide access to an in-house network of real estate agents, insurance providers, mortgage representatives and settlement officers.

Partner with American Heritage, and you’ll have all the tools you need to rent property in a college town.

To get started, contact us for more information.

How to Deal With Difficult Tenants

Tue, 15 Jan 2019 14:28:00 GMT

You could say that there are three types of tenants. The first type is “good” tenants — they enjoy their apartments or homes quietly, don’t disturb their neighbors and pay their rent on time. The second type is “problem” tenants — they have a history of being loud and even destructive. They might pay rent late or miss payments entirely. Usually, effective screening measures before you offer a person a lease can help you avoid renting your property to a problem tenant.

But, there is a third type of tenant to worry about — the “secret” problem tenant or the tenant who only becomes difficult after you rent an apartment to them.

There are multiple reasons why a tenant who looks good and reliable on paper turns out to be challenging in real life. A tenant who previously was gainfully employed might lose their job after moving in, making it difficult or impossible for them to pay rent. In some cases, tenants might have roommates or visitors who make a lot of noise or otherwise cause trouble in the building. It can also be the case that issues in a tenant’s past, such as destructive or dangerous behavior, have gone unreported, making it difficult for a landlord to learn about those issues until it is too late.

Although you’d like to avoid problem tenants entirely, it’s likely that you’ll have to deal with one or two at some point in your career as a landlord. Here’s how to handle difficult tenants and what you can do to protect yourself, your other tenants and your property.

Know the Law in Pennsylvania

When it comes to screening tenants and managing tenants after they have moved into your property, there are two laws you need to know. The first is the Fair Housing Act , a federal law that prevents landlords of most rental properties from discriminating against tenants in specific protected classes. Those classes are:

The Fair Housing Act makes it illegal for a landlord to refuse to rent a property to someone based on the above criteria. It also makes it illegal for a landlord to offer different conditions to tenants based on their sex, race, family type or any of the other protected classes than they would to a person who did not fall under a particular category. For example, a landlord can’t charge males a higher rent than females or say that parents with young children need to pay a higher security deposit.

Along with the Fair Housing Act, it’s essential that landlords in Pennsylvania have an awareness of the state’s rules concerning landlord/tenant rights. Pennsylvania housing laws prohibit landlords from discriminating against potential tenants based on their age, ancestry and pregnancy , as well as based on the classes protected by federal law. The Pennsylvania Landlord-Tenant Act of 1951 lays out the rules for giving notice to tenants, collecting security deposits and evicting tenants from the property.

Federal and state laws aren’t only designed to help protect tenants. They can also protect landlords. The rules outline precisely what you can and can’t do when faced with problem tenants and what exactly makes for a “problem tenant.”

Common Tenant Complaints and Problems

Difficult or problem tenants can take many forms. Some types of “bad” tenant can directly affect your bottom line and cash flow. Others can complicate matters for you by making other tenants unhappy or by doing things that can require the attention of law enforcement. Here are a few of the most common tenant issues and some tips on how to handle them.

1. Tenants Who Pay Late

The landlord-tenant relationship hinges on one major agreement — having the tenant pay their rent each month, by the due date. When tenants don’t pay their rent on time — or don’t pay at all — your income and cash flow are directly affected. Non-paying tenants can make it difficult or impossible for you to pay the mortgage on the property or keep up with your other bills. In some cases, tenants might pay their rent eventually but might pay late on a regular basis.

If a tenant does start to pay late or misses a payment, it’s in your best interest to take action quickly. Ignoring the late or missed payments won’t make a tenant pay up. The opposite is likely to happen — if you don’t say anything when a tenant is late on a payment or fails to pay rent entirely one month, the tenant might consider your silence to be acceptance of the problem.

One way to minimize late or missed payments is to be clear about the consequences of them from the beginning. Before a tenant signs the lease, review the document with them. Point out what the expectations are for paying rent, what the due date is each month and whether there’s a grace period or not.

It’s a good idea to charge a late fee for rent payments made after the due date or beyond the grace period. Pennsylvania doesn’t have any specific rules regarding late fees for rent, but you should include a clause in the lease explaining when a late fee will apply and how much it will be.

Once a tenant is renting the property and misses a payment or seems to be late on a payment, you’ll want to move quickly and open the lines of communication to find out what is going on and get the tenant to pay. Don’t wait to say something until the month is nearly over. If you offer a grace period and the tenant hasn’t paid by the end of it, get in touch with them immediately.

It could be that the tenant has the rent check in an envelope, ready to mail, but forgot to drop it in a mailbox, or that they forgot to schedule the e-payment for the month and will do so right after a gentle reminder.

Eviction is one way to deal with a tenant who consistently misses rent payments. In Pennsylvania, the eviction process is more complicated than changing the locks on an apartment while a tenant is out. To start the eviction process, you need to give a tenant a “Notice to Quit.” The notice to quit must be hand-delivered to a tenant or posted at the property. It can’t be mailed.

In the notice, you’ll want to include the amount of rent a tenant owes and the actions they can take. They can either pay the entire amount due by a certain date — at least 10 days from the date of the notice — or they can move out by that date.

Ideally, the tenant will either pay up or move out by the deadline. If they don’t, you can file a complaint with the court and request a hearing, during which a judge will hear both sides and will make a decision. The judge might grant you possession of the property, in which case, the tenant will need to move out by a specified date.

2. Tenants Who Constantly Complain

Some tenants always pay their rent on time but can still give you a headache. The saying “you can’t please everyone” often applies to the type of tenant who seems to have a complaint or issue with everything.

Tenant complaints can often be justified. For example, if it’s the middle of winter and the heat in an apartment barely climbs above 60 degrees, your tenants are within their rights to object.

But tenants who protest about everything, from the paint color you’ve chosen for the common areas of the building to the fact that they can hear their neighbors talking in the hallways, are a different story. While your first instinct might be to start screening their calls or ignoring their messages, remember that they are your customers.

It’s in your best interests to deal with demanding tenants directly. Document their problems and either outline a plan to fix them or provide detailed reasons as to why you won’t.

If your tenant becomes unreasonable, you might consider having a meeting with them. Review the terms of the lease, explain what specific things mean — for example, quiet enjoyment doesn’t mean that other tenants must be silent at all hours of the day and night — and work out a plan to tackle any major concerns and to handle any problems that might arise in the future.

3. Tenants Who Disturb Other Tenants

If you own a multi-family building, it’s likely that your tenants will come into contact with one another as they go about their days and enjoy life in their apartments. For the most part, tenants who share a building play nice and get along.

But some tenants either fail to understand that they aren’t living in an isolated home in the middle of nowhere or don’t care about the fact that they have neighbors next door, above or below. These tenants might decide that two in the morning is the perfect time to hold band practice, or they might leave bags of garbage in the hallway for days at a time.

Handling disruptive tenants often takes a bit of finesse, as you’re most likely working with at least two parties. You don’t want the tenant with a legitimate complaint to feel unheard or neglected, as that can make them consider moving out when their lease is up. You also don’t want to upset the tenant who is being disruptive, as that could make their behavior worse.

When one tenant complains about another, take the time to speak to both parties. Record what the complaining tenant’s concerns are and provide as detailed an account of the issue as possible. Next, talk to the tenant who is being disruptive. Let them know what the problem is. If there are specific clauses in the lease that prevent the actions they’ve taken, such as a clause outlining quiet hours or explaining when garbage should be put out, point those clauses out to the tenant.

If the tenant continues to break the rules outlined explicitly in the lease, you might consider starting the eviction process to help maintain the peace at your property.

4. Tenants Who Break Their Lease

Bothering the neighbors isn’t the only way that a tenant can break or violate the terms of their lease. Depending on your preferences, you might have clauses in the lease that prohibit certain actions or activities. Those clauses might include:

As with other tenant problems, communicating with the tenant is a good first step if you notice that they have violated their lease. In the case of pets, it could be that the tenant is cat- or dog-sitting for a friend or relative and didn’t realize that having an animal in the apartment for a limited time violated their lease. In the case of damaged property, it could be that the problem was an accident and the tenant is willing to work with you to correct it.

If a tenant refuses to work with you on an issue, you can give them notice of the problem and offer them a timeframe in which to correct it. If the tenant doesn’t fix the issue in that amount of time, you can start the eviction process.

5. Tenants Who Break the Law

One of the last things you want as a landlord is for a tenant to move into your property and use it as the home base for illegal activities. If a tenant is producing or selling drugs from your rental property, you could be legally and financially liable for their actions.

Including a clause in the lease forbidding illegal activities is one way to reduce the chance that a tenant will move in and break the law from inside your apartment. A “no illegal activities” clause can also offer you some protection and options if a tenant does start selling or producing drugs from your property or breaks the law in another way.

If one tenant does start using the apartment for illegal activities, it’s likely that other tenants will complain to you. Take their complaints seriously and look into the matter. It’s also essential that you let the police know if you think something unlawful is going on. It’s also a good idea to pay attention to police reports and to keep an eye out for your property’s address in any reports.

In Pennsylvania, the Expedited Eviction of Drug Traffickers Act speeds up the eviction process for people who are convicted of or suspected of selling drugs from a rental property.

American Heritage Property Management Can Help You Handle Difficult Tenants

You might have started investing in real estate or become a landlord because you expected it to a be a part-time job or a way to earn passive income. But problem tenants can make being a landlord a full-time job.

One way to cope with the stresses and challenges of being a landlord is to hire a property management company . American Heritage Property Management has been working with landlords in Central Pennsylvania since 1981. We offer services including comprehensive tenant screening, lease preparation and, when needed, managing the eviction process.

Should I Invest in Central PA Real Estate?

Thu, 30 Nov 2017 18:40:00 GMT

Should I invest in Central PA real estate? For many individuals who have money to put to work but who have never engaged in the real estate market, it’s a little daunting to think about taking the plunge. But when you take a closer look at real estate investment and at the Central PA market specifically, you’ll find plenty of reasons why you should at least explore the opportunity.

Benefits of Investing in Central PA Real Estate

Here’s a look at seven key benefits to investing in Central PA real estate as well as a description of what they mean for you and your portfolio:

Since 1981, American Heritage Property Management has worked with investors throughout Pennsylvania and Maryland , taking care of daily operations and providing advanced investment insights and support. We are a comprehensive management company, which means we take care of every aspect: marketing, leasing, screening, repairs and maintenance, renewals and much more.

We work with both individual investors and large real estate companies that are often buying and selling property. With each, we take care of the day-to-day so that they can take care of the big picture. But we also help with the big picture by providing regular financial statements and investment analyses as well as ideas for maximizing monthly rent totals.

When you choose American Heritage as your property manager, you’re getting experience, knowledge, resources and a deep commitment to seeing your investment reach its full potential. One of the ways we help your investment reach its full potential is by helping you find and secure the best possible tenants for your units. Any investment thrives on occupancy and we help you occupy units through our advanced marketing programs.

And, while you want tenants, you don’t want just any tenants. Which is why we use a comprehensive screening process to weed out potential problem tenants before they sign on the dotted line.

Still wondering: Should I invest in Central PA property? We can help you answer that question as well as questions of how to invest in rental property in Central PA. You may also be wondering: How much should I invest in Central PA property? These are great questions to be asking and we would be glad to help provide you with the right answers.