WHAT LANDLORDS NEED TO KNOW ABOUT RENTER’S INSURANCE

WHAT EVERY LANDLORD NEEDS TO KNOW ABOUT RENTER’S INSURANCE

By David Rush, Kistler Financial Group Inc.

Renter’s insurance is a “must-have requirement” for every tenant, especially in today’s litigious world. 

WITH A RENTER’S INSURANCE PROGRAM, YOU CAN …

1. Significantly reduce your liability risk.  When someone is injured on your property, both the renter and the landlord may be liable.  If your renter’s liability is covered by insurance, your liability as landlord could be significantly reduced.
2. Help your renters’ protect the value of their personal property, which in turn can reduce or eliminate any claim against the landlord for property damage. This is the renter’s best bet for recovery after a catastrophe, like the California fires. 
3. Help your renters find great coverage, with quick, easy enrollment and low rates. Renter’s insurance is available for less than $.50 per day (based on the national average).  Often coverage can begin by 12:01 AM the day after they call and make payment. 

AAOA members can participate in Kistler’s Renter’s Insurance Program and enjoy special pricing.  Call 1-866-483-5168 or visit our Insurance page for more information.

Not a member?  Join AAOA.  Upgrade to our PremiumPlus Membership and receive our CD series Real Estate Investment Secrets, featuring top national consultants- $1,000’s of dollars of consultants’ time for free!

Subscribe to our blog in the top right corner and receive notice of new posts. 

Posted by Kim Ezzell on 10.29.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

Seven Vital Tips to Collect Tenant Debt – Part 3 of 7

Seven Vital Tips To Help You Collect Your Tenant Debt – Part Three of our Seven Part Series

by Bill Gray, Fidelity Information Corporation

Take advice from someone who knows the tenant debt collection business:  Your debt recovery may depend on what you do before the tenant moves in!

Get the right information from your prospect before they move in, and you will always increase your debt recovery on the back end.

TIP NUMBER THREE

Bank Accounts!

Make a photocopy of a prospect’s check, and the rent check every month. 

• That way, you will have the right information for recovery, and you may discover a secondary bank account or other changes crucial to collection. 
• If this person skips owing money, a record of their current back account numbers can spell the difference between successful collection and no collection at all.

Miss the other tips in our series?

Click here for TIP ONE  

Click here for TIP TWO

Come back soon for more from Bill Gray - we will be adding a new tip every week.

If you would like to be notified of new tips, please subscribe to our blog by clicking the box in the upper right side of the site.

In need of debt collection? Call 303–938-8280 or send an email to collection@joinaaoa.org.  Write the word “COLLECTION” in the subject line. 

Premium and Premium Plus members receive discounts on debt collection. Sign up now, or upgrade your membership to enjoy the savings.

Tags: tenant+debt+collection, bad+rent+collection, american+apartment+owners+association

Posted by Kim Ezzell on 10.24.2007. 5 Comments »

Filed under: AAOA Forum, Collections

California Fires Place Focus on Property Insurance

California Fires Place Focus on Property Insurance

Under a State of Emergency, Southern California residents wait in a shroud of smoke, and anguish over the unknown – how much damage will this latest series of wildfires inflict on property owners?

According to the Insurance Journal, the insurance industry is rallying in anticipation of a vast number of claims—

as homes and business are evacuated in the wake of these as yet uncontrolled fires.  Their best advice, “Find out what you are covered for.” 

That same advice is good for those not affected by these catastrophic losses.  With the advantage of time, you can use this opportunity to review your property insurance policies and decide if the coverage is adequate to protect your investments.

The Insurance Information Institute reports that damage caused by fire and smoke is covered under standard homeowners, renters and business insurance policies and under the comprehensive portion of an auto insurance policy. There is also coverage for water or other damage incurred by fire fighters in the course of extinguishing the fire, according to the I.I.I.

Want more information on property and renter’s insurance?  Check out our Insurance page. 

Scroll below to find out more about making an insurance claim.

Coming soon … our interview with David Rush of Kistler Insurance.  Find out how renter’s insurance can not only cover catastrophes, but it can be a profit center for apartment owners. 

Not a member?  Find out how American Apartment Owners Association can save you money on all of your apartment management needs.  Join AAOA now.

Posted by Kim Ezzell on 10.23.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

VITAL TIPS FOR CALIFORNIA FIRE DAMAGE VICTIMS

WHAT CALIFORNIA FIRE VICTIMS NEED TO KNOW TO FILE A CLAIM

If your investment property was damaged in the California wildfires, the Insurance Information Institute has posted the following advice to speed the property insurance claims settlement process:

• Be prepared to give your agent or insurance company representative a description of the damage to your property. Your agent will report the loss immediately to your insurance company or to a qualified adjuster who will contact you as soon as possible in order to arrange an inspection of the damage. Make sure you give your agent a telephone number where you can be reached.
• If it is safe to access the area, take photographs of the damaged property. Visual documentation will help with the claims process and will assist the adjuster in the investigation.
• Prepare a detailed inventory of all damaged or destroyed personal property. Make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.
• Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the destroyed property.
• Make whatever temporary repairs you can. Cover broken windows and damaged roofs and walls to prevent further destruction. Save the receipts for any supplies and materials you purchase as your insurance company will reimburse you for reasonable expenses in making temporary repairs.
• Secure a detailed estimate for permanent repairs to your home or business from a licensed contractor and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.
• If your home is severely damaged and you need to find other accommodations while repairs are being made, keep a record of all expenses, such as hotel and restaurant receipts, as these may be covered by the Additional Living Expenses section of your homeowners policy.
• If your business has been damaged, and you have business income (business interruption) insurance, it covers the profits your business would have earned, based on own financial records, had the disaster not occurred. The policy covers additional operating expenses incurred as a result of the disaster, such as the extra expense of operating out of a temporary location.
•  Serious Losses Will Be Given Priority
  If your home has been destroyed or seriously damaged, your agent will do everything possible to ensure your claim is given priority.

Not a member?  American Apartment Owners Association provides information and services to apartment owners just like you.  Check us out for legal forms, tenant screening, tenant debt collection, property and renter’s insurance, and much more.  Join AAOA now.

Posted by Kim Ezzell on 10.23.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

YOU MAY BE OVERPAYING ON INTEREST!

ARE YOU OVERPAYING ON INTEREST?

 by Alan Jones

What’s the single largest expense an apartment owner faces?  It’s the interest to finance it!

It’s true!  Not only is the interest more than taxes, insurance, operating expenses and maintenance – it is often more than all of these COMBINED! Those dollars could be going into your pocket!

• For every $100,000 of the loan balance outstanding, you can save about $1,000 per year for each % reduction in your interest rate. 
• A $700,000 loan at 2% less would mean $14,000 per year in interest savings.  That’s $70,000 in 5 years, $140,000 in 10 years. 
• And on larger loans, the savings can be much, much more.

Three Factors That Affect Your Mortgage Rate

• Shorter loans, such as 20 or 15 year notes, can save you thousands of dollars in interest payments over the life of the loan. 
• A larger down payment – greater than 20%- will give you the best possible rate. If you’ve got the cash now and want to lower your payments, you can pay on your loan to lower your interest payments.   
• Credit quality and debt-to-income ratio affect the terms of your loan through FICO Score .  If you have good credit and disposable income, you will get approved at a lower interest rate. 

To learn more, visit our Financing Page or contact Alan Jones at 913-322-2780.  Be sure to mention you heard about him through AAOA.

Not a member?  Sign up now and start saving money on your apartment management needs.

Posted by Kim Ezzell on 10.23.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Financing

7 Vital Tips to Collect Tenant Debt – Part 2 of 7

Seven Vital Tips to Help You Collect Your Tenant Debt– Part Two of our Seven Part Series

Last week, Tenant Debt Collection guru Bill Gray shared his insights on debt collection, and taught us that debt collection begins when your prospect walks through the door.

Now for TIP TWO in our series:

TIP TWO

A verified Social Security Number, previous address verification and three personal references are a must!

• The previous address and Social Security Number will help identify a debtor when he or she skips and is living elsewhere. 

• The three personal references could be instrumental in helping your collection agency find them and collect any money owed.

SOCIAL SECURITY NUMBER SCAM ALERT!  

• Social Security Fraud is epidemic! 

• Scam artists are creating numbers, using other people’s numbers, and even using their children’s numbers to lease apartments! 

It is absolutely crucial that you ensure the social security number you are given belongs to the person presenting it.  If you are not verifying the social security number on all prospects today, start doing it immediately!

Here’s a little story to show just how easy it is to scam a landlord:

Let’s say our villain, John D., has bad credit.  What does he do? John simply applies for credit with a fake number.  The first time a credit report is requested, it’ll come back ’no file found’ because that number was not listed with the credit bureau.  But that very act caused a new file to be created - a new file for John D. with that number!!!! 

The next time a report is requested for Mr. D., using that number, the report will now show ’no credit’.  All our illustrious villain has to do now is be persistent in building credit under that fake number.  

• Remember, there’s a huge difference between ‘no file found’ and ‘no credit’.  BE SUSPICIOUS, VERY SUSPICIOUS, OF ANYONE WITH ‘NO CREDIT’ ON THEIR REPORT.  It is a rare occurrence in this day and age. 

Scroll down for last week’s installment, Seven Vital Tips to Help You Collect Your Tenant Debt, if you missed TIP NUMBER ONE!

Subscribe to our free newsletter and receive the Bill Gray’s next five tips, and lots more helpful information for apartment managers.   

In need of debt collection services?  Call 303-938-8280 for more info, or email collection@joinaaoa.org.  Be sure to add “COLLECTION” to your subject line.

AAOA Premium and Premium Plus members receive discounts on debt collection. Sign up now, or upgrade your membership to enjoy the savings.

Share your insights on social security fraud.  Post comments below.

Tags: collect+tenant+debt, bad+debt+collection, tips+for+debt+collection

Posted by Kim Ezzell on 10.15.2007. 6 Comments »

Filed under: AAOA Forum, Collections

Two Reasons to Invest in Commercial Property

Two Reasons to Invest in Commercial Properties Now

Precision Funding Group is in the business of educating real estate investors. “Residential investments are not likely to appreciate in the current environment, in fact, they may well depreciate in the short term,” warns PFG’s Managing Partner Jeff arris. What was once warm and comfortable may no longer be a viable investment option. 

Someone who has a small rental investment needs to consider increasing their rental portfolio incrementally.  If you have 2-5 units, now is a good time to consider 5-10. If you are a first time investor, it’s clearly the right time to move into commercial investments. 

Why? 

 Two reasons:

• While residential growth rates are coming to a standstill, Jeff Harris explains, commercial investments continue to grow steadily at an average of 8-12% annually, and will likely continue on that path in all major cities. “This market is not as volatile.  It’s clearly a safer investment.“ 

• The residential slowdown, the sub-prime crisis and the increase in foreclosures have created an increased need for apartments as more and more homeowners are becoming tenants. “With all of the new regulation on residential lending, there are fewer loans available-people will have to remain renters for a longer period of time.”

 Filling a Void in the Commercial Market

Savvy investors switching from residential to commercial find there is a void in the lender landscape.  Banks not only want to sell loans and service them, they want depositors so they can cross-sell their other products – depositors with documented income and perfect credit.  

But not every solid investor can meet their criterion.  Precision fills that gap:

•  Precision Funding Group loans from $100,000 to $1.5 million to accommodate smaller commerical investments. 
• PFG’s typical customer is a first time investor; someone with no proven track record in apartment management. 
• PFG will consider less than perfect credit. 
• They specialize in working with someone with income that is difficult to document -  commissioned workers, the self-employed.  PFG may be able to work a loan without the need to document income, if the property is a good investment. 

Finding a Good Commercial Investment

To determine whether a property is a good commercial investment, Precision applies a tried-and-true formula that compares the net operating income and the capitalization rate for the property. Jeff Harris explains:

• “You basically need to take your income less your operating expenses, which are typically 35% of income, to arrive at your Net Operating Income. 
  
  
• 
  
  Divide that by the Capitalization Rate for the area where the property is located to achieve your score.  
  
  
• 
  
  A low capitalization rate and a low vacancy rate make for a good investment. We have customers who look at properties in cities that have good numbers.”

Precision Funding Group’s Promise to Investors

“Our desire is to get a customer into a property that makes sense for them.  We don’t try to force it.  If someone has a credit score of 700, and 30% down, they should shop the rates at banks.  We help people who want to get into the investment, but may not fit the bank’s profile. We fill a void in the market because we are more flexible. This is the perfect time to get into the market and enjoy the steady growth in commercial investing. 

Great Savings for AAOA Members!

Commercial loans carry greater costs because appraisals and title work are more in-depth. 

Precision Funding Group is currently offering AAOA Members $1,000 to use against closing costs. 

Be sure to mention that when you call!

Precision Funding Group 1-888-914-4734, ext. 2, or ask for Jeff Harris, Managing Partner, or email info@commercialprecision.com.

Join AAOA and start saving money on your apartment management needs. 

Already a member?  Upgrade your membership for even more savings.  Our PremiumPlus members receive our CD interview series Real Estate Investment Secrets FREE.

Sign up for our free newsletter - full of tips on how you can save money on your real estate investment.

Posted by Kim Ezzell on 10.10.2007. 1 Comment »

Filed under: AAOA Forum, Financing

THREE REASONS LANDLORDS REQUIRE RENTER’S INSURANCE

Posted by Kim Ezzell on 10.10.2007. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

Sell Your Apartment Building – FAST!

Sell Your Apartment Building – FAST!

An Interview with Jeff Mack of AmeriRecovery

Jeff Mack buys rental properties from sellers who are in a hurry- often in a quickly as 24 hours.  In this interview, he explains more about his business model, and his views on the real estate economy:

Q. When would a seller come to you?

A.  In life, sometimes we have to do things in a hurry – not always what we want to do, but what we need to do.  Maybe it’s a personal issue like a divorce, or perhaps it’s a purely economical decision.  Sometimes, they just want to stop losing sleep over it.  We often close in twenty-four hours, which does a lot for a person’s peace of mind!

Q.  Are you a real estate broker?

A.  No.  I work with a private investor.  We don’t work with brokers, so the seller doesn’t incur the costs of advertising and marketing.  There’s no long-term listing contract.

Q. How do interest rates affect your purchase?

A.  They don’t.  We don’t finance through a bank – that’s why we can move quickly.  As any frustrated seller knows, there are a hundred ways to lose a deal over financing.  It’s also hard to weed through prospects for a qualified buyer.  We don’t have to deal with any of that.

Q.  How do you chose the right properties?

A.  Experience has helped us develop a formula for picking the right property.  It has to be in good condition, not MLS listed and in a low crime area.  We work with properties that have at least two apartments.

Q. How does the economy play into your decisions?

A.  That’s a sweeping question, especially for a real estate fanatic like myself.  It’s that old “know when to hold ‘em, know when to fold ‘em” thing.  I know how to read the economy – I do my research.  For instance, I know that more money is invested in real estate than all the other equity markets combined.  The recent seven-year run up in real estate from 1998-2005 created the greatest bonanza in land values in our nation’s history.  But easy money and credit produces investment winners and losers.  The recent subprime loan implosion is such an example.  I could probably write an entire article on these points alone!

To talk more with Jeff Mack, call 1-888-544-0407

Posted by Kim Ezzell on 10.03.2007. 3 Comments »

Filed under: AAOA Forum, Property Sales

Seven Vital Tips to Help You Collect Your Tenant Debt

 
Seven Vital Tips to Help You Drastically Improve Your Bottom Line

 Debt Collection Begins When Your Prospect Walks Through the Door!

 Here’s something you might not realize:

•  The majority of tenants who skip or are evicted owing money had great credit and rental history when they moved into the property!

Even the best tenant screening will not always protect you.

 What do you do?

•  Get the right information from your prospect before they move in and you will always increase your chances for debt recovery.

Bill Gray of Fidelity Information Corporation shares his Seven Vital Tips to Drastically Improve Your Bottom Line:

TIP NUMBER 1:

• Complete application.  Don’t settle for anything less than an application that is filled out completely!  It sounds simple, but you would be amazed how many rental applications we see as a collection agency that arrive at our office half empty.  A partially filled in application will rob you of future income.

Come back soon for Tip #2!

We will be adding a new tip every week.

If you would like to be notified of new tips, please subscribe to our blog by clicking the box in the upper right side of the site.

Keep watching for more from Bill Gray…

In need of debt collection? Call 303–938-8280 or send an email to collection@joinaaoa.org.  Write the word “COLLECTION” in the subject line. 

AAOA Premium and Premium Plus members receive discounts on debt collection. Sign up now, or upgrade your membership to enjoy the savings.

Tags: collection+of+tenant+debt, rent+collection, late+rent

Posted by Kim Ezzell on 10.02.2007. 5 Comments »

Filed under: AAOA Forum, Collections