Category Archives: Rick Bassett

Fire Safety Inspections – an important part of property management

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A tenant installed DIY light fixture

Property Managers wear many hats, but one of the most critical parts of the job is safeguarding the tenants’ well-being while protecting the owner’s real estate interests.

Being onsite for maintenance and repair issues allows property managers the opportunity to routinely check for obvious safety issues such as missing smoke or CO detectors, damaged or unsafe electrical fixtures, grills on decks or too close to a dwelling, inadequate lighting, blocked stairwells, or wiring and extension cords being used dangerously, as well as other risks.

The fire safety codes are loaded with many ever-changing rules and regulations, which are enforced very differently by inspectors, usually Fire Marshals or Deputy Fire Marshals, on a town-to-town and city-to-city basis. Some municipalities have regular inspection requirements, while others aren’t as regimented. Some municipalities follow the code to the letter, while others are less strict.

A notice of an inspection usually starts with a letter from a fire marshal to the property owner/investor. Then, the property owner typically delegates the inspection coordination to their property management company.

The property manager will usually conduct a preinspection of the property and arrange any needed repairs or corrections before the inspection by the fire marshal. If inspection day goes well, the property is deemed safe until the next inspection; if there are problems or issues, the fire marshal will often allow 30 or more days to remediate any deficiencies and require reinspection.

The process can be costly and time-consuming for the owners of buildings that are out of code compliance. Still, the ongoing costs are much less for properly maintained buildings after a building has been brought into code compliance.

Need help getting your rental property into code compliance? Contact us <click here>

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Suddenly Become an Accidental Landlord? We can help!

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An accidental landlord is an individual who becomes a landlord unintentionally, typically due to circumstances such as inheriting a property, being unable to sell a home, or needing to relocate for personal or professional reasons. Unlike individuals who intentionally invest in real estate for rental income, accidental landlords find themselves renting out property as a result of unforeseen situations, often without prior experience or planning in property management.

Bassett Property Management can assist Accidental Landlords in effectively managing their property through a range of services tailored to meet the specific needs of property owners who find themselves in this situation. Here are some ways in which a property management company like Bassett can be beneficial for Accidental Landlords:

Tenant Screening, Lease Agreement Management, Rent Collection, Maintenance and Repairs, Emergency Response, Legal Compliance, Marketing and Advertising, Financial Management, Eviction Management & Time and Stress Savings.

By providing these services, Bassett Property Management can help Accidental Landlords navigate the challenges of property ownership and ensure that their investment is well taken care of.

Click Here if you need help as an absentee landlord, and we will get back to you shortly.

Professional property management is often less costly than self-managing

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Professional property management can help real estate investors save money by maximizing rental income, minimizing expenses, and reducing the risk of costly legal issues.

  1. Reduced Vacancy Rates: A professional property management company can help keep vacancy rates low by ensuring that units are marketed effectively, and tenants are carefully screened. This means that units are less likely to sit vacant, reducing the amount of lost income for the investor.
  2. Efficient Maintenance and Repairs: A property management company can coordinate maintenance and repairs quickly and efficiently. This can help prevent minor issues from becoming larger, more costly problems. In addition, property managers often have relationships with contractors and vendors, allowing them to secure better pricing for maintenance and repair services.
  3. Better Tenant Screening: Tenant screening is critical to ensuring tenants pay rent on time and take care of the property. A property management company can screen tenants thoroughly, reducing the risk of tenant turnover, property damage, and eviction.
  4. Legal Compliance: Property management companies are well-versed in local, state, and federal laws that govern rental properties. They can help ensure that landlords are in compliance with all relevant regulations, reducing the risk of costly legal battles.
  5. Improved Rent Collection: A professional property management company can establish clear rent collection policies and procedures, making tenants more likely to pay on time. In addition, property managers can follow up on late payments and enforce lease terms, reducing the risk of lost income due to non-payment.
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Every Rental House is like a small 401(k)

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Savings interest rates have been hovering around 1% for the past 10 – 12 years, while inflation has been exceeding 5% per year for the past two years. The stock market has had its ups and downs, some sectors have done well and others have gotten clobbered.

It’s difficult for most of us to figure out how to grow a nest egg without getting it being eaten up by inflation, devaluated by the sudden whims of the stock market, and erosion by the numerous fees on investments vehicles.

After the great recession (circa 2008) our company started going all-in on Rental Houses, buy-fix-hold-rent, in particular, is our flavor of choice but we will also do buy-hold-rent of turnkey properties if the numbers make sense.

We’ve come to look at each rental property like a small 401(k) retirement saving account. Of course, rental houses aren’t actual 401(k)’s but when acquired and managed properly they can provide significant long-term savings benefits such as appreciation, monthly cash-flow, cash-out ability as well as several short-term and long-term tax advantages.

There are at least 5 potential areas to profit from with a rental house investment:

  • Appreciation – the increase in value of the home over time
  • Monthly Cash Flow – the amount of money left over each month, or each year after paying all expenses such as mortgage, taxes, insurance, property management, repairs..etc.
  • Cash Out Ability – the equity over 30% of market value in a rental property can be unlocked/withdrawn in certain conditions by refinancing.
  • Annual Tax Savings –  being able to claim legitimate business expenses against the property, taking generous depreciation deductions, and extending the SALT (State and Local Tax) deduction limit are some of the most popular tax savings methods available to Real Estate investors.
  • Long-Term Tax Savings – capital gains treatment, 1031 exchanges, and tax-deferred retirements accounts are some of the long-term tax savings vehicles available to real estate investors.

Not all properties will always realize all of these potential benefits as real estate investors often have different wealth-building objectives and tax situations. It’s always helpful to seek the advice of attorneys and accountants who are well versed in real estate investing before taking the plunge.

One of the things that tend to hold would-be investors back is Fear of Tenants, as there is no shortage of bad tenant stories. Attracting, selecting, and retaining quality tenants, providing and enforcing a strong lease, and dealing with repairs on a timely basis are key to operating a successful rental property.

Bassett Property Management takes the stress out of the day-to-day tenant side of the business by providing management services to their clients. Visit our website at http://www.bits.ws to learn more.

Fear of Missing Out (FOMO) Home Buying

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