Blog Post

ECONOMIC BENEFITS OF HIRING BAY PROPERTY GROUP MANAGEMENT

Jun 24, 2019
Owning rental property is a smart investment. The next best investment is using a property management company to relieve your stress by handling all aspects of your business and having a legal team on standby if tenants become problematic.
As a rental property owner, you want to maximize Net Operating Income (NOI), while maintaining and ideally, increasing the value of your real estate investments. Given such a herculean goal, it may make sense to hire a property management company to handle the numerous, tedious tasks to achieve success in your real estate business.

Bay Property Group will do our due diligence in selecting the right tenants and managing the relationships, but fortune tellers we are not. We can do the next best thing by saving you legal expenses when you experience unforeseen glitches that require the services of an attorney to address any stressors that may occur in a landlord-tenant relationship.

Will you make more money with a property manager? Some food for thought.
Many multi-unit property owners are unenthusiastic about the prospect of hiring a property management company because of the costs associated with outsourcing such a vast scope of work. This includes the upkeep of the property, screening tenants and welcoming them to their new surroundings, providing marketing and bookkeeping services, perhaps fixing structural defects or overseeing renovation projects, responding to tenant complaints, among the commission of other responsibilities that can quickly pile up and overwhelm a landlord.

Inexorably, time is money.

Bay Property Group can you time and energy, reduce your frustration and give you peace of mind knowing your real estate investments are being handled by a team of property management professionals.

This conservation of your resources is all the more welcome if you are a landlord who has the thankless task of managing multiple properties, especially when you have to hold down a full-time job.

Novice owners often encounter minefields and make costly mistakes that an experienced property management company will avoid. Also, if you are located far away from the investment property and do not want to travel on your own dime to maintain it, there may be heightened motivation to hire a property manager to keep it in shape.

There are many helpful tools on the Internet to help manage your property remotely, but clearly, it is no substitute for firsthand observations and hands-on management that can only happen by being on the front lines.

Having a knowledgeable property manager on the ground is especially helpful when something goes awry, for example, a plumbing breakdown. Unless someone close by can respond, it will be an exercise in frustration trying to get it fixed through multiple, annoying phone calls and arrangements.
Thinking long term

Tragically, many investment properties suffer from deferred maintenance and fall into atrophy, but the foremost goal of a property manager is to take good care of your investment to avoid costly repairs and to retain responsible, happy tenants.

If there comes a time when you want to bow out, Bay Property Group is also a full-service real estate brokerage that can liquidate your rental property for the most money the market can bear, in the shortest period of time and with the least complications.

Finding good tenants is critical to your rental business, and the hallmark of a good property manager. Tenants who do not pay rent or who are chronically late clearly have a negative impact on your bottom line. By renting to studious tenants, you will make more money because the undesirable tenants with a bad rental history and other red flags are weeded out.

As a full-service property management company, we do this through a combination of technology and old-fashioned, personal sleuthing.

When rental relationships fail, bounce back quickly

Although no stone is left unturned when screening tenants, sometimes life happens and for whatever unanticipated reason, even a model tenant can sometimes take a turn. You can count on our team to proactively address the situation and have a heart-to-heart conversation with residents who are not fulfilling their obligations.

We love all of our tenants and so as to not show preferential treatment, in the interests of fairness, our blanket policy is to serve a 3-day notice when rent is not paid and if the tenant remains delinquent after the notice is properly served, it regretfully is referred to our Broker of Record, Daniel Bornstein, who is also an attorney specializing in managing difficult relationships. Daniel works strenuously to mend relationships, yet we lament that in some circumstances, tenants may have to be transitioned out of the unit.

When repairs or renovations are necessary, get it right the first time.

If you were to do a google search for home improvement contractors in the Bay Area, you will be deluged with hundreds of results. Making the wrong selection of who you call upon can be disastrous.

Inexperience frequently leads to delays, expensive results and poor workmanship and even worse, invites hefty fines or lawsuits for multi-unit property owners. As a property management company with tentacles in hundreds of properties, we have a cadre of carefully vetted and battle-tested contractors on standby who will take the guesswork out of the equation.

All of the contractors we utilize are licensed and to insulate our clients from liability, this is a rule we will not budge on – you can save coins by a handyman who is a cousin or a friend of a friend, but we always advise our clients not to be a penny wise and a pound foolish.

Bay Property Group always pulls the requisite permits for a job and while we sometimes get surprised or get bogged down in red tape, we have a pretty good handle on the process and can expedite the project.
Remove yourself from uncomfortable conversations and the emotional fray

From our hard-won experience, rental property owners oftentimes face a conundrum or get in financial trouble when the landlord is unable to keep a professional distance from their tenants, and we don’t say that in a callous way. We are all human, but it’s important to compartmentalize your personal relationship and empathy with the tenant and the fact that you are operating a rental business.

A property management company can serve as a buffer between the landlord and the tenant, prioritizing the financial interests of the owner without the risk of being overly lenient on behavior that upsets the landlord. It is easier for a property manager to keep the relationship on a professional level, without hard feelings, by setting mutual expectations in the rental relationship and enforcing these covenants without the owner having awkward conversations.

Although by and large, our clients are stewards of their community by providing safe, clean and affordable housing and treat renters with respect, sometimes frank communication and serving necessary documentation is uncomfortable. When a landlord is reticent to address issues, it can lead to expense and a loss of income.

At Bay Property Group, we pride ourselves on taking good care of tenants, but we also can have difficult conversations when friction arises so that rental income is not interrupted or other expenses incurred.

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By Jim Rutkowski 15 Mar, 2022
Keeping your home in good condition is a dual responsibility. We are committed to taking good care of our residents, but here is how you can do your part. How to reset a circuit breaker More often than not, when a circuit breaker trips, it is designed to reset and typically does not need to be replaced. Fortunately, there are some easy steps you can take to restore power without the need of a costly service call. READ MORE → Addressing other electrical issues If resetting the circuit breaker doesn't work, here's how to troubleshoot the problem to get the lights turned on. READ MORE → Putting sliding doors back on track Sliding closet doors can be tremendous space-savers, but it can be frustrating when they are knocked off their tracks. READ MORE → Preventing organic growth in the bathroom from shower steam Like a long, hot shower? So does mold. How to prevent and remediate mold in high-humidity conditions. READ MORE → Cleaning greasy kitchen range hoods Peel back your stove's hood and check the exhaust fan filters and you may get a nasty surprise. It may be time to roll up your sleeves. READ MORE → Cleaning out dryer lint Avoid longer dry times, wasted energy, and fire hazards. READ MORE → Resetting your garbage disposal Problems like overheating, clogging, or light fault will indicate a reset by shutting down voluntarily. But the question now is how to reset a garbage disposal. READ MORE → Dealing with a refrigerator freezer iced ove r When frost forms on the shelves of your refrigerator or inside the freezer compartment, there are preventative steps you can take and remedies you can do on your own to get thawed out. READ MORE → Patching small holes in the wall We're not talking about a dark, dingy bar or restaurant. When accidents happen, a hole in the wall can occur. Here's how to make them look like they never happened. READ MORE → Changing batteries in a malfunctioning smoke detectors When sensors become weak and less efficient, don't neglect them and put your household at risk. READ MORE → Replacing light bulbs When they are reachable, replacing burnt out light bulbs are one of the responsibilities of residents and one that can be easily done, with a few caveats. READ MORE →
By Jim Rutkowski 14 Mar, 2022
Loose door knobs or handles are a common problem residents have to deal with at some point, but the good news is it is relatively easy to fix. Remove the knob or handle to separate the doorknob from the splinter shaft, remove the base, find the set of screws and tighten. You can then restore the base and put the handles back on. It is likewise a cinch to tighten the hinges on cabinets and toilets. Please note that most residential leases prohibit residents from tampering with or changing locks and if keys are lost requiring a rekeying, it is the tenant’s responsibility.
By Jim Rutkowski 14 Mar, 2022
To reset a breaker, residents can follow some simple steps. Before anything, turn off any important, electricity-guzzling devices and appliances such as televisions, video game systems, air conditioning units, and the like to prevent damage when the power is reset. Now locate the load center or electrical panel in your home. These are commonly located in garages, basements, or utility closets. Don’t forget to bring a flashlight if the tripped circuit left you in the dark. Next, locate the tripped circuit breaker by finding the one where the handle is in the center or "trip position," or not fully on position. When the circuit breaker is tripped, the handle moves toward the opposition but does not move all the w ay off.
By Jim Rutkowski 14 Mar, 2022
More often than not, if a circuit breaker trips, it is designed to be reset and typically does not need to be replaced. If Bay Property Group has to dispatch an electrician or maintenance staff to resolve an electrical issue that could be easily fixed by the resident, there will be an additional charge for the service call. To reset a breaker, residents can follow some simple steps we outline here » More diagnostics - some questions to ask Is it just one appliance or device that is not working? Check the outlet with another appliance that you know is functioning on another outlet. If the perfectly fine appliance or device is getting power in one outlet but not the other, then there is a glitch with the outlet. In the event that the appliance does not power on with any outlets that you know to be supplying electricity without incident, there is a defect in the equipment you are plugging in. If the appliance is owned by the landlord, contact your property manager. Otherwise, if you personally own the appliance or device, you will, unfortunately, have to repair or replace it at your expense. Is the whole rental unit out of power, just one area of your home, or the entire building or neighborhood? If the electrical outage is isolated to one room or outlet, you should reset the breakers, as discussed above. On the other hand, if you are getting no power anywhere in your home, confirm that the service is properly set up with your utility company or the bill has been timely paid. Moving onto another scenario, if the entire building is out of power, you are advised to check with the utility company for any known issues. If there are no known issues, contact Bay Property Group so that we find the root cause and fix it. When you discover that there is a widespread power outage (perhaps by neighbor accounts or noticing that lights do not work anywhere near your residence), report it to your utility company and they will assuredly address the event. In cases of a large-scale blackout, there is unfortunately little we at Bay Property Group can do but from our experience, these snafus are only temporary. So that we can best deploy our maintenance personnel and other resources to provide the fastest, most efficient service to our residents, we kindly ask that you exhaust some “DIY” measures before calling property management. If our residents have utility service connected and the underlying issue could be solved with a mere resetting of the breakers, in fairness to all tenants, we make it our policy across the board to charge for service calls.
By Jim Rutkowski 14 Mar, 2022
Sliding closet doors can be tremendous space-savers, especially in tight spaces, but it can be frustrating when they are knocked off their tracks. Hopefully, it is a quick and easy fix. When there is debris that might be holding up the door, you can vacuum it out with a crevice attachment. If the door doesn’t slide easily, you can use a lubricant. Other times, you may need to lift the door back on its track. Care should be used so that you did not damage the doors or tracks. If there is a mishap, you may be responsible.
By Jim Rutkowski 14 Mar, 2022
The high humidity with steam showers provides the perfect breeding ground for mold to grow. A vent fan will improve air quality by drawing out moisture and odors from the bathroom, so be sure to always turn it on during and after a shower. You can also be conscientious of keeping the shower door or curtain open when you are done to provide ventilation. Wiping off excessive moisture will go a long way in preventing the consequences of condensation. Using a water/bleach combination or bathroom multipurpose cleaner, spray the shower walls and bathtub. Rinse the surfaces down with water, either from the shower or cups of water, and dry the tiles. Thinking beyond a weekly wipe down and deep cleaning your shower? You can remove the showerhead from the wall and soak it in a 50/50 white vinegar and water mixture in a basin or perhaps, a sealed plastic bag.
By Jim Rutkowski 14 Mar, 2022
If you peek under your stove's hood and check the exhaust fan filters, you might find that it's not pretty. That's because a range hood filter is supposed to collect grease. The filter can get so gunked up over time that it loses its effectiveness, which is why we recommend periodically de-greasing them. Get ready to roll up your sleeves. Your range hood cleanliness begins with dusting to eliminate particles from the surface. We recommend using a dust brush cleaner with a brush that is able to get to delicate and hard-to-reach places. Before doing this, cover the stove with a cloth so that dirt and debris don't fall inside. Let’s move on to cleaning the filters. The first step is to remove filters from the hood. Most filters easily slide or pop out of the underside of the hood. Let the filters soak in a sink or tub with hot or boiling water and a generous squirt of dish soap. Baking soda can also help. Swish around with a brush until the water is soapy and make sure the filters are fully submerged. Once the filters have soaked for 15-20 minutes, use a non-abrasive scrub brush to scrub the filters, adding more dish soap if necessary. Simply rinse the filters in hot water, dry, re-insert the filters back into the hood, and repeat periodically. Cleaning the filters once a month is a general rule of thumb.
By Jim Rutkowski 14 Mar, 2022
Constant cleaning is the key to preventing fire hazards and lowering your energy bill. By not clearing out combustible lint, the dryer becomes a fire hazard. In fact, more than 3,000 fires a year are caused by lint. Your clothes will take longer to dry, as well. It only takes a few seconds to clean your dryer’s lint filter, and this should be done after each and every load. Even if the dryer filter is clean, lint can still build up in the duct that vents outside. Here’s how to clean your dryer inside and out: Unplug your dryer. If it’s a gas dryer, turn the supply valve off while you work to prevent gas from leaking. Pull the dryer away from the wall and disconnect the exhaust duct on the back of the dryer. Loosen up debris with a flexible dryer vent cleaning brush and vacuum out any excess lint. Do the same exercise where the dryer vents outside. Pro tip: If you have a leaf blower, you can insert the blower where the dryer vent begins at the dryer location and allow the air to blow lint out. We recommend you do this thorough cleaning once or twice a year. Of course, you should always turn the dryer off when you are not home and consider attaching a safety alarm to the duct - this can warn you when a dangerous level of lint accumulates.
By Jim Rutkowski 14 Mar, 2022
If frost is forming on the shelves or walls of your refrigerator or inside the freezer compartment, there may be many culprits to blame. Before having a technician work through causes and solutions, there are some steps you can take to avoid getting iced out and remedies you can do on your own to get thawed out. Oftentimes, the temperature for the refrigerator has been set too low or too high and you can adjust the temp setting to correct the problem. In other instances, dirty or dusty coils will throw the compressor into overdrive, making it work harder to maintain a freezing temperature in the freezer. This can result in over cooling. You can pull the refrigerator away from the wall and use a canister vacuum to eliminate the dust from the coils. One of the simplest instructions we can give is to keep doors shut to prevent moist air from being drawn into the appliance. Close the door fully after proper use, check for overstuffed doors, faulty door seals, loose door hinges, and ensure your refrigerator is level so the doors stay closed. More tips: if the refrigerator is close to the wall, keep some distance. This will give it some "breathing room" by allowing extra air to circulate. If you have hot dishes or fresh food being placed in the refrigerator, give them time to cool down before placing them straight in the fridge, as this alters the inside temperature and can lead to ice. Another common cause of ice over is simply too many food items packed in the refrigerator and freezer. There needs to be enough room to allow air to properly circulate.
By Jim Rutkowski 14 Mar, 2022
First, a safety reminder is in order: Never put your hand down into a garbage disposal but instead, use some sort of tool to dislodge any food particles or debris. Although the horror flick images of victims getting limbs severed in a garbage disposal is Hollywood fiction, you can get painfully injured. When the garbage disposal quits out, what you need to know is that these appliances are smarter than one might expect. It is designed to shut off when it is clogged, it overheats, or there is something wrong with the motor. It also comes equipped with a secret red reset button at the bottom. Three easy steps to reset your garbage disposal: Ensure that the disposal switch is in the “OFF” position. Gently press the red button and it does not stay in, wait several minutes and try once again. By turning on a cold stream of water and turning the disposal button to the “ON” position, your garbage disposal should now start running again. If, however, the reset button will not stay in or the overload protector needs to be repeatedly reset, this is an indication that the garbage disposal may need service or require replacement.
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