If you are a landlord, keeping your property functional and in great shape is a priority that both you and your tenants should share. Knowing what you are responsible for and what your tenants are in charge of such as maintenance, replacements, and installation are important aspects of what is agreed upon while renting out your property.

One of the most troublesome situations is when an HVAC (heating, ventilation, and air conditioning) unit is compromised in one way or another. The two most common solutions are either HVAC repair or the more expensive HVAC replacement.

Maintaining these units to keep them in tip-top shape can help keep your total costs down.

Let us take a look at some of the important tips made by a local Florida HVAC company on what you need to know about HVAC care when renting out your property.

Start with the basics

More than likely, you are already familiar with the fact that lease agreements contain clauses, conditions, and terms meant to detail the responsibilities of the tenant as well as the property manager or owner.

However, before you commit to certain terms, take a look at the three main considerations surrounding heating and cooling:

• Heating: All rental units must meet the implied warranty of habitability, which signifies that some method of heat must be provided. Exact requirements will vary from state to state. Florida is likely not as strict with heating requirements as the northern states but there are still requirements to meet.
• Ventilation: This is often neglected due to more pressing concerns, but that is a mistake that could end up being quite costly. Air needs to move freely throughout the rental unit. If it is unable to do so, then concerns like mold, wood rot, pest infestation, and other problems can occur. This is especially important in humid climates like Florida. Make sure you have a plan in place for ventilation maintenance.
• Air Conditioning: Even in hot Florida, landlords are not required to provide air conditioning services for tenants. However, this state is extremely hot most of the year so it is unlikely you will keep your units filled if you do not offer this important amenity. Fortunately, there are multiple ways to determine how AC units are to be maintained between you and the tenant.

Determining Responsibility

There are three main ways you can divide responsibilities, provided they do not violate any state or city laws. The options include:

• Shared Payment: This is fast becoming the most common method chosen by property managers, and for good reason. This option lets you split the fees between the tenant and the office. This covers the repairs, replacement, and maintenance needed to maintain your HVAC unit. To ensure that this option benefits everyone, it is recommended to use a professional HVAC company’s service contract for regular maintenance and repair. You can split the fee for the contract according to terms dictated in your lease. Just make sure to leave yourself protected in the event the tenant is negligent or irresponsible in their operation of the HVAC unit.

• Landlord Maintained: Another popular option; this allows you to have full control of the repair and replacement process. Most choose to set specific maintenance hours with an extra charge being common for after-hours work. You can optimize your costs by ensuring the rent reflects the services you provide as well as securing a superior service contract.
• Tenant Maintained: If you feel like the tenant should have more responsibility in this matter, then you may want to consider having them pay for more minor things such as new filters and standard service calls.

Some examples would include malfunctions and normal cleaning. With this arrangement, it is recommended you take over the major services as they come up. Also, you can further minimize your costs by having the tenant pay for utilities, which includes heating and cooling.

Understanding Taxes

Being a landlord is expensive. At some point, you will have to make improvements or renovations to your building. The good news is that these efforts can offer tax benefits as shown below:

• HVAC maintenance, repairs, or replacement can sometimes be considered a restoration because the replacement of any major component of the HVAC system is considered a capital improvement as defined by tax laws.
• HVAC improvement benefits are generally depreciated over the time period of approximately 27.5 years. The method of depreciation used is the straight-line method.

HVAC Maintenance

Regular HVAC maintenance can help prevent stress and expensive unit replacements. To do so, you want to make sure you inspect the property regularly. This will include inspecting the HVAC system.

This is because HVAC technicians can diagnose and correct potential problems before they occur.

To keep your property’s HVAC unit running smoothly at top efficiency, be sure to call your local HVAC experts to set up a custom maintenance plan suited to your needs.

The post Installing a New HVAC System in Your Rental Property appeared first on Prime 1 Property Management.

The Florida Fair Housing Act (FHA) entitles every American to equal opportunity in the housing market under the fair housing laws.

For example, housing providers who do not provide an accessible route into the property or provide reasonable accommodation for a disability or any other prohibited practices.

There are seven protected classes under the fair housing laws, including race, color, national origin, religion, disability, sex, and familial status.

However, there are landlords in Florida who aren’t aware of the implications that could lead them to federal court.

Some property owners or real estate agents face costly housing discrimination lawsuits because they don’t know about the FHA.

Are you a housing provider, landlord, or homeowners association in Florida, Florida looking to learn more about the FHA?

Here are the eight most frequently asked questions about this federal law.

#1: What’s the Federal FHA?

The Fair Housing Act aims to counter any housing discrimination. It was put into place to stop sellers and landlords from housing discriminating against people from a particular class of society.

As a result, every American gets fair and equal treatment in activities related to housing. This protection includes renting and buying a house together with getting a mortgage loan.

#2: What’s the history behind the Fair Housing Act?

There is a series of events preceding the FHA and Florida commission on human relations. In the past, people dealt with serious housing discrimination issues at the local governments level. The strong will to counter these hardships resulted in:

• The Civil Rights movement in the 1960s
• The Rumford FHA in 1963
• The Civil Rights Act in 1964

These actions led up to enacting the FHA in 1968. The establishment took place a week after the assassination of Martin Luther King Jr.

#3: Who are protected under the Florida Fair Housing Act?

This federal law protects people in seven classes. The protected classes are: Race, color, national origin, religion, disability, sex and familial status.

The category of familial status includes pregnant women, those securing legal custody, and those having children under the age of 18. In 2017, a ruling by a federal judge made clear that sexual orientation and gender identity are protected classes under the FHA. There is a pending effort for an amendment to make the principle explicit.

#4: What does the Fair Housing Act aim to achieve?

You may wonder what housing discrimination looks like in real-life situations. Take a look at the following list of practical examples:

• Discriminatory statements against a protected class, such as race, color, national origin or other protected class, in property ads
• Refusal to disclose information about a mortgage loan
• Setting disparate terms and conditions on a mortgage
• Refusal to rent, sell, or negotiate for housing or make reasonable modification
• False claims about the availability of housing because of a tenant’s national origin, race, or other protected class
• Quoting various terms and conditions depending on the prospective tenant’s class
• Refusal to make or purchase a loan
• Making changes to amenities, other environmental controls, and accommodations depending on the tenant’s race, color, religion, sex, or other protected class that are not classed as reasonable modifications.

There are many other potential scenarios. All these forms of housing discrimination are exactly what the FHA aims to shield buyers and tenants against.

#5: Does the Fair Housing Act apply to everyone?

No, the most noteworthy exemptions under Florida statutes are as follows:

• Single-family homes rented or sold without using a broker
• An owner-occupied home that has less than four units for rent
• A private club or organization with a members-only policy

#6: What are the consequences for violating the FHA?

The penalties depend on the nature of the violation.

Simple discrimination charges may result in a fine or imprisonment for a year at most or both.

#7: How is the Fair Housing Act enforced?

The U.S Department of Housing and Urban Development (HUD) holds responsibility for the FHA. Anyone who feels their right has been violated can:

• File a claim with the HUD
• File a lawsuit in a federal district court

There are two ways HUD enforces the FHA:

1. They investigate all the discrimination claims. After someone files a claim, they dispatch a dedicated team for investigating the issue. After conducting a thorough analysis, they decide on the next appropriate steps.
2. They hire people to pose as buyers and tenants. That’s why landlords and sellers have to be alert at all times. As a landlord, you can’t afford to make any mistakes in your ads, on phone conversations, and face-to-face meetings.

#8: How can landlords avoid discrimination?

• Remain cautious about what you say on the phone and in person.
• Analyze your rental ads before getting them published. Remove anything that may attract discrimination charges or sexual harassment charges.
• Have the same standards for all prospective tenants.
• Treat everyone with respect.
• Check for state and local laws for further protected classes.
• Remain consistent in the process of tenant screening.
• Recognize any bias you might have against your tenants. Take steps to avoid this bias affecting your actions.

A common misconception involves concluding that you have to accept the first applicant. You can still rule out renters based on criteria that aren’t discriminative. For example:

• Insufficient income level
• Conviction of a crime that could endanger other tenants
• Poor credit

The Bottom Line

The FHA counters discrimination in the housing sector. As a landlord, you have to comply with this federal law at all times. U.S Department of Housing and Urban Development is responsible for the FHA. HUD hires people to randomly check for non-compliance.

The FHA act comes with seven categories of protected classes. The protected classes include race, color national origin, familial status, religion, disability, and sex.

Landlords have to make sure that they don’t take any discriminatory actions against these protected classes and they need to make reasonable accommodations. Even simple discrimination charges carry a fine or imprisonment for a year at most or both under Florida statutes.

If you believe that you’d benefit from the services a professional property management company offers, contact Prime 1 Property Management today!

Disclaimer: This blog isn’t a substitute for expert legal advice. For legal help, contact a qualified attorney. The fair housing law may change, and this blog might not be updated at the time you read it. You may also check to U.S Department of Housing and Urban Development (HUD) official website for updates.

The post 8 Things to Know About the Fair Housing Act appeared first on Prime 1 Property Management.

How do you keep your Florida property in good shape?

Maintenance is part of it but selecting the right tenants is just as important.

You shouldn’t rely on your intuition when selecting a tenant. It’s vital to have a proper screening process.

Keep on reading to get a more in-depth overview of how you should screen your Florida tenants.

#1: Check their background

Many companies offer background checks. They provide information about the tenant’s credit history, past evictions, criminal activities, and other public records.

The information that’s collected can be useful during your selection process to eliminate potentially problematic tenants from your prospect pool.

#2: Run a credit check

Running a credit check is a vital step as red flags will appear if there’s something out of the ordinary. First, make sure they don’t have any unpaid balances, maxed out credit cards, or late payments. All these signs can point to payment issues in the coming months or years.

Another essential step is checking whether they are heavily in debt.

Smaller incidents don’t necessarily signify that you’ll have problems in the future but if you see a pattern of financial issues, it’s a bad sign and you should continue your search.

#3: Meet prospective tenants

Organize an open house. This way, you get to meet all the prospective tenants. When you talk to them face to face, you’ll get a better understanding of who they are and if you’d want to rent to them.

When you meet the potential renters, it’s your chance to ask them questions. Speak to them in an open and honest way. If you have any particular concerns, speak your mind. You might find out interesting and helpful information about them.

The following are questions you could ask:

• Why are you interested in this property?
• How long are you planning to stay here?
• Do you have any big changes or moves coming in the near future?
• Why are you leaving your previous place?
• How are you doing at work?
• What is the most important thing for you in a rental property?

#4: Have them fill out an application

Don’t let any tenants apply without filling out an official application form. It’s where you gather important information about them. For example, you could inquire about their employment, income level, and financial well-being.

You could also ask for personal references and previous landlords’ contact information as well. This information will help you make better decisions when selecting the right candidate.

#5: Verify the important parts

Data collection is essential. The background and credit checks give you the necessary information, but you shouldn’t solely rely on this data when making your decision.

You should verify the information that the prospective tenants have given to you. Interview key people. For example, previous or current employers and the personal references they gave you. Make sure that these people are independent of each other. This ensures that you are getting high-quality information.

Verification means contacting their previous landlords as well. Most likely, the landlords will be honest with you because they no longer have any underlying interests anymore. Ask them whether the tenant paid rent on time and if their move-out came as a surprise to them.

Additionally, ask if the neighbors complained about anything. If they were loud or if their pets caused any problems, these can serve as potential red flags.

How to deny an applicant after screening?

You need to comply with the Fair Credit Reporting Act (FCRA). Landlords need to notify the candidate that they got a denial as a result of their credit report or related causes. The proper response is an adverse action letter. You need to follow the Fair Housing Act as well.

When you deny an applicant, then have supporting documentation ready. Make sure your actions aren’t against any regulations and laws. When in doubt, consult with an attorney.

Here’s a list of some possible reasons for denial:

• Criminal history
• History of evictions, property damage, or unpaid rent
• Income isn’t enough to support the rent
• You can’t verify their employment

The bottom line: how to effectively screen tenants?

Screening your tenants is an important step for every landlord to take before making your final decision.

Arrange to have an open house to personally meet your prospective tenants. Interviewing them can uncover important aspects to help you in selecting the best candidate in Florida.

Remember to run credit checks and check their background.

Call or meet with individuals who have prior experience with your candidate. This includes previous and current employers along with their former landlords. Pick at least two references that don’t know each other. This way you can be sure to collect information of the highest quality.

The post Quick Guide to Effective Tenant Screening in Florida, Florida appeared first on Prime 1 Property Management.