Managing Risk

Most property owners purchase rentals for investment or tax purposes. The usual goal is to save paying more tax dollars to the government and, at the same time, increase the value of their financial portfolio. With today’s economy and the past few years of erratic stock market activity, investing in real estate has returned as a sensible asset.

However, owning rental property can have hazards and “risk management” is necessary to avoid the pitfalls and horror stories that you often hear. Many property owners feel that management is not complicated, but like everything else today, with the increase of lawsuits, it is “not that simple.”


Preventative Measures


Preventative maintenance is good sense, but also requires knowing the right workers and the right price to pay. Putting in working smoke alarms, proper locks on windows and doors, correcting electrical hazards, immediately fixing plumbing problems to prevent mold, ensuring adequate heating and hot water, removing hazards such as exposed carpet tacks and exposed tree roots, are just a few of the long list of items that can reduce risk for a property owner.


Other preventative measures are screening applicants, counseling tenants, using proper rental/lease agreements, serving notices when necessary, performing good move in and move out practices, complying with current state law on security deposits, and settling disputes.


Legislative Knowledge


No one can manage property with his or her head buried in the sand and good property management starts with knowing current local, state, and federal laws. There are many complicated laws that can lead to major lawsuits. Just a few of these are Fair Housing, the American Disability Act, Credit Reporting laws, the Servicemembers Civil Relief Act, the new Junk Protection Act, and lead-based paint laws. The courts do not excuse an owner for ignorance of the law.


Legislation affects every facet of property management - showings, applications, tenant screening, leases, notices, maintenance, habitability, and more. Each of these areas can lead to “great risk” for a property owner when they do not know the law.


Professional Management


Because many property owners often do not have the knowledge and experience with rentals, they “increase their risk.” It does not take long to reduce their investment because of an unnecessary maintenance or legal bill.


Professional Property Management can reduce an owner’s “risk.” Assist your clients by referring your clients to our company so that we can provide professional property management to “Reduce Risk” and enhance their investment. If they have a positive property management experience, they are more likely to contact you to invest again or sell their property. Don’t wait, call us today.

Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting BetterByDesignRE.com. Nothing Contained within this post shall constitute the creation of an agency relationship between Better by Design Real Estate, LLC and the reader of this post. An agency relationship shall only be created upon mutual written agreement. The Real Estate Law requires that I provide you with a written consumer notice that describes the various business relationship choices that you may have with a real estate licensee. Since we are discussing real estate without you having the benefit of the Consumer Notice, I have the duty to advise you that any information you give me at this time is not considered to be confidential, and any information you give me will not be considered confidential unless and until you and I enter into a business relationship. At our first meeting I will provide you with a written consumer notice which explains those business relationships and my corresponding duties to you. Nothing contained within this post shall be construed as providing legal advice. Anyone with specific questions regarding legal matters should consult the advice of a licensed attorney.