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Tips for landlords and property management services offered by Condo Alexandria in managing condominiums.

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8 Common Pitfalls for Landlords

First day at the office
Kelly Nesbitt of Nesbitt Realty
Are you consider renting our your property?  If you're doing it yourself, you may want to consider how you'll handle problems like these:
  1. What if your tenant does not pay rent?
  2. What if the lawn isn't up kept?
  3. What if the A/C goes out in the middle of a humid heat wave?
  4. What if the sink is clogged? Who's responsible if the sink is clogged by the tenant?
  5. What if the tenant will not let in a handyman?
  6. What if the condo unit above leaks on the unit below?
  7. What if the tenant leaves the unit walls scuffed and the floors dirty?
Nesbitt Realty is provides professional property management services and we deal with problems like these every day. We'll deal with more rentals in a day than most landlords will have in a lifetime.  You could do it yourself, but why risk it?Talk to a professional property manager to know how to avoid and overcome these pitfalls.
a small real estate brokerage
We are family-owned and operated.

Questions every landlord must answer

We're here when you need us!If you own rental property, you probably should consider a property manager. If you don’t know the answers to these questions, then you should definitely contact us to find out more about our property management services.
  1. What is the proper procedure for filing a notice to pay rent?
  2. What notices can permissibly be served to a tenant under the terms of a lease?
  3. What important legislation is looming on the horizon regarding debt collection?
  4. By law, what is the maximum security deposit you can collect in Virginia?
  5. What rights do you have (or not have) regarding pets on your property?
  6. What amenities are included (or not included) with your property?
  7. What are the latest fair credit reporting rules and requirements?
  8. What are the Federal and/or State laws that govern fair housing?
  9. What questions are you NOT allowed to ask on an application?
  10. What laws apply to abandoned personal property left behind by a tenant?
Contact Nesbitt Realty at 703 765 0300 because we know the answers to these questions and questions that you haven't even thought to ask. For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.

How to Appeal Your Property Tax Bill

cottage and fence
Add a fence for privacy and distinction
Owning a home is an expensive proposition. There’s maintenance, landscaping, utilities, renovations, and, of course, taxes. It’s your civic duty to pay the latter, but it’s also your right not to yield a penny more than your fair share. It’s possible to trim your property tax bill by appealing the assessed value of your home. But making a case against your real estate assessment, the basis for your property tax bill, requires doing a bit of homework. Initial research can be done online or by phone over two or three days, but the process can stretch out for months if you’re forced to file a formal appeal. There are a few things to keep in mind as you weigh an appeal. The board can only lower your real estate assessment, not the rate at which you’re taxed. There’s also a chance, albeit slight, that your assessment could be raised, thus increasing your property taxes. A reduction in your assessment right before you put your house on the market could hurt the sale price. An easier route to savings might lie in determining if you qualify for property tax exemptions based on age, disability, military service, or other factors.

Read your assessment letter

A real estate assessment is conducted periodically by the local government to assign a value to your home for taxation purposes. An assessment isn’t the same as a private appraisal, and the assessed value of your home isn’t necessarily how much you could sell it for today. Real estate assessment letters are mailed to homeowners annually, or perhaps every two to three years, depending where you live. The letter will include some information about your property, such as lot size or a legal description, as well as the assessed value of your house and land. Additional details—number of bedrooms, for example, or date of construction—can often be found in the property listing on your local government’s website. Your property tax bill will usually be calculated by multiplying your home’s assessed value by the local tax rate, which can vary from town to town. If you think your home’s assessment is higher than it should be, challenge it immediately. The clock starts ticking as soon as the letter goes out. You generally have less than 30 days to respond, though the time frame varies not just between states, but within each state. Procedures are often outlined on the back of the letter.

Gather evidence

Start by making sure the assessment letter doesn’t contain any mistakes. Is the number of bathrooms accurate? Number of fireplaces? How about the size of the lot? There’s a big difference between “0.3 acres” and “3.0 acres.” If any facts are wrong, then you may have a quick and easy challenge on your hands. Next, research your home’s value. Ask a real estate agent to find three to five comparable properties—“comps” in real estate jargon—that have sold recently. Alternatively, check a website like Smarthomeprice.com to find approximate values of comparable properties. The key is identifying properties that are very similar to your own in terms of size, style, condition, and location. If you’re willing to shell out between $350 and $600, you can hire a private appraiser to do the heavy lifting. Once you identify comps, check the assessments on those properties. Most local governments maintain public databases. If yours doesn’t, seek help from an agent or ask neighbors to share tax information. If the assessments on your comps are lower, you can argue yours is too high. Even if the assessments are similar, if you can show that the “comparable” properties aren’t truly comparable, you may have a case for relief based on equity. Maybe your neighbor added an addition while you were still struggling to clean up storm damage. In that case, the properties are no longer equitable.

Present your case

Once you’re armed with your research, call your local assessor’s office. Most assessors are willing to discuss your assessment informally by phone. If not, or if you aren’t satisfied with the explanation, request a formal review. Pay attention to deadlines and procedures. There’s probably a form to fill out and specific instructions for supporting evidence. A typical review, which usually doesn’t require you to appear in person, can take anywhere from one to three months. Expect to receive a decision in writing. If the review is unsuccessful, you can usually appeal the decision to an independent board, with or without the help of a lawyer. You may have to pay a modest filing fee, perhaps $10 to $25. If you end up before an appeals board, your challenge could stretch as long as a year, especially in large jurisdictions that have a high number of appeals. But homeowners do triumph. According to Guy Griscom, Assistant Chief Appraiser of the Harris County (Texas) Central Appraisal District, of the 288,800 protests filed in his Houston-area district in 2008, about 58% received reduced assessments. How much effort you decide to put into a challenge depends on the stakes. The annual U.S. median property tax paid in 2008 was $1,897, or 0.96% of the median home value of $197,600. Lowering that assessed value by 15% would net savings of about $285.   This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.  

Consider the pitfalls of being a landlord in Washington DC . . .

Washington Monument as seen from WWII Memorial
Washington Monument as seen from WWII Memorial
Washington DC is the jurisdiction at the center of the National Capital Region. If you're considering purchasing rental property the area, there is a hidden premium to purchasing a property in DC that many landlords don't know about until it's too late. According to the  Washington City Paper a potential DC landlord needs to be aware that: "D.C.’s housing code is designed to protect residents. It takes up about 70 pages and covers everything from heating and lighting requirements to weatherproofing to repair and maintenance protocol. Of course, city employees aren’t the only ones in town who know the code in and out. Certain tenants have become experts as well. " Take it from a DC Landlord who said, "Trust me, if you don't have to rent your house/apt out... don't! The rules do little to protect the landlord. I had 'squatters'/house-sitters who decided to cook drugs in my apt. The only reason they probably left was because the DEA was hot on their ass. In the meantime, I had to go to lots of expense to go thru the court system and when I got my house back - it was torn up. I try to screen but the article and previous posters are right. There are career renters who know the rules and will do anything to screw you. Good luck!" Another DC Landlord says, "The tenant laws in DC are absolutely ridiculous. They MUST be changed. I live in a condo building and a few people have purchased units with the sole intention of renting them out. While we have had a few really good, respectable tenants, we have had one tenant who is just the pits. She deals drugs from her unit, works as a prostitute (using her unit as her 'office'), has been in trouble with the law, and is really bothering the people who live in this building. When the unit owner tried to evict her, he discovered that the process could take more than a year, despite the police reports and other evidence against this low life. He has spent thousands of dollars in legal bills and has admitted that he has now lost more money than he has made off the unit. If you own a property in DC, DON'T rent it out. It's just not worth it in the long-run." The Lease Never Ends Tenants in DC cannot be evicted because the lease ends. They just can't. Tenants can only be evicted if the landlord occupies the property themselves or sells to someone who intends to occupy the property themselves. Only investors buy occupied units and investors don't buy in DC because of the difficulties of tenant management.  If you are going to claim to occupy your DC rental, you'd better not own a larger and better home elsewhere because you might have difficulty establishing that you actually intend to occupy the property. The City's Office of Tenant Advocacy is there to advise tenants of their "rights".
DC GOV
DC Government provides a bank of resources for tenants.
In DC tenants have significant "rights" that that they don't have in most jurisdictions in the US. For example, tenants may only be evicted for 1 of 10 specific reasons, one of these reasons is NOT because the lease has ended. In DC tenants have a right to "perpetual tenancy" which means that if you rent someone an apartment in DC and they comply with the lease, and pay the rent, that lease is good until they move or die, no matter what it says about the end date. To raise the rent you must adhere to specific guidelines and directives required by the city.
Emily Fairbanks
Emily Fairbanks practices law and property management in Washington DC
Emilie Fairbanks, an attorney practicing landlord tenant law, writes, "Tenants can demand a jury trial no matter how little they owe or what the lease violation is. Your case will be certified to the Civil Division, a process I will explain fully later, but for now you just need to know it is often very long. Perhaps up to a year. During this time, the lease violation may very well continue and in nonpayment of rent cases you won't be getting any rent, some, hopefully all of the monthly rent going forward from the first court date, will be paid into the court escrow. " If you decide to sue your tenant for non-payment of rent, be advised that tenants have the right to a jury trial for even the smallest amounts of rent. It will take 6 months to a year to get your day in court and during that time, the landlord will likely not be receiving any income. At best the tenants will be paying into a court escrow account. At worst they will be paying nothing. The motto of the Office of Tenant Advocacy is "Putting People First".  In case you didn't know, tenants are people, but landlords are not. The Legal Division provides the following services:
  • Legal Rights - Advises tenants of the powers they possess over the landlord and how to manage the landlord
  • Representation - The tenant can qualify for a free lawyer . . . the landlord does not.
  • Tenant Petition Filing - Petitions are useful roadblocks to eviction/resolution. Petitions are also a great way to harass a landlord into surrendering. The city will help tenants complete and file tenant petitions. The city will help tenants draft other court documents. The landlord must hire an attorney to navigate the system.
  • Resolution - This means that the city will help explain to the landlord the facts of life and why surrender is the landlord's best possible option.
  • Tenant Hotline - There is no landlord hotline to provide an “Ask the Director” forum or to respond to inquiries about rental housing law.

Maintenance

At some point every rental unit anywhere will require maintenance. When that happens you'll likely find that maintenance services in Washington DC generally cost 20% to 100% more than neighboring jurisdictions. Excessive licensing requirements and burdensome regulation discourage small businesses from working in Washington. In addition, many tradesmen based in Virginia and Maryland won't travel into the city to work. Many handymen have told me that they won't work in DC because they can't leave tools unattended for even a moment without risking theft of those tools. Locking down tools and trucks each time you turn your back makes a job take longer and makes the price go up.  DC has fewer tradesmen who have higher overhead.  Naturally the prices are higher.

Virginia and Maryland are very different.

Nesbitt Realty manages properties in Virginia and we have managed property in Maryland. We do not manage property in DC specifically because of the strong "tenants rights" laws in DC.  Those laws make managing property burdensome to the point that it makes no sense for our business. In Virginia, we operate largely in Arlington County, the City of Alexandria and Fairfax County. We find that the laws in Arlington and Alexandria are tenant-friendly but manageable. The laws of Fairfax County are probably closer to what is found in most jurisdictions in the US. If you're thinking of buying an investment property / rental property in the National Capital Region, you'll find a micro-economy that is recession-proof with a steady supply of renters. So owning a rental in this area can be a smart move.  If you've settled on buying in this area, Virginia is probably your best choice, followed by Maryland.  If you are a landlord, the District of Columbia is a risky financial endeavor filled with pitfalls awaiting the unwary. For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.

Learn more about living in Alexandria VA.

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This complete Alexandria real estate resource for offers everything you will need: access to property listings with photographs and virtual tours, home valuation tools, and real estate articles to help guide you through the home buying or selling process. You can also find contact information for Condo Alexandria / Nesbitt Realty, your Alexandria real estate agent, REALTOR or real estate broker. We can help you with you buy or sell a home, and find information about Alexandria communities , schools, real estate market conditions, recreation and much more!

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Tenant Duties and Landlord Remedies

If you are considering renting an apartment from a landlord or condominium owner or if you are thinking about leasing your property for rent, it is important that you know both the law and the legal instruments that govern landlord tenant relationships in the Commonwealth of Virginia.

Leases:

First, consider the lease. A lease is the contract that governs a landlord-tenant relationship. In contrast, covenants within a lease are generally independent of the lease itself, where if one party breaches a covenant, the other party may still recover dam¬ages but cannot terminate the landlord-tenant relationship in its entirety. Although not covered herein, the doctrines of actual and constructive eviction and the implied warranty of habitability are exceptions to this general rule. In addition, many states including Virginia have created a statutory exception to this general rule which does allow, however, a landlord to terminate a lease for any nonpayment of rent. Below is a brief discussion of a tenant's duty regarding the doctrine of waste and other considerations including ordinary wear and tear as they may or may not be contemplated in any given leasehold agreement.

Tenant's Duty to Repair and the Doctrine of Waste:

A tenant has a duty not to damage (or commit waste on) a leased premises. There are three rules governing waste in a leasehold context, all of which a Landlord may recover for from the tenant in the form of damages should the tenant breach. 1) Voluntary (affirmative) waste results when the tenant intentionally or negligently damages the premises or exploits minerals on the property. 2) Permissive waste occurs when the tenant fails to take reasonable steps to protect the premises from damage from the elements. The tenant is liable for all ordinary repairs, excluding ordinary wear and tear. If the duty is shifted to the landlord (by lease or statute), the tenant has a duty to report deficiencies promptly, and the tenant can assume liability for such deficiencies if not reported in a timely manner pursuant to the lease agreement. 3) Ameliorative waste occurs when the tenant alters the leased property, thereby increasing its value. Generally, the tenant is liable for the cost of restoration. There is a modern exception to this rule, however, which permits a tenant to make this type of change if he is a long-term tenant and the change reflects changes in the neighborhood. Finally, remember that in the absence of a specific reference to ordinary wear and tear, most repair covenants frequently exclude ordinary wear and tear whereby a Landlord usually remains obligated for certain structural and casualty destruction repairs except for damages caused by the tenant.

Why Hire Nesbitt Realty as Your Property Manager?

Relocation

Are you leaving the area, but not quite ready to part with your Clarendon townhome? Are you active duty military, with upcoming orders for assignment in Germany? Regardless of your circumstances, property management is a great way of safely and effectively renting out your property. You could use your rental property income to put towards the mortgage, if you haven’t paid it off yet.
Realtor Stuart Nesbitt chats with a handyman
Realtor Stuart Nesbitt chats with a handyman
 

Separation between Clients

Tenants and landlords each have their own wishes that they each want met (e.g. timely rent payments, proper repairs / maintenance, thorough unit inspections, etc.) Having a property manager can make this process a walk in the park, especially for the landlord. Without a property management service, there is the potential to have quarrels over issues, which can lead to undesirable leeway being extended (i.e. late payment). For example, what if your tenant would like to paint the walls? Will you let them smooth talk you and guilt trip you into having it their way? Nesbitt Realty can enforce your rules and keep a diplomatic barrier between both parties.

Legality

Nesbitt Realty can file all of the legal paperwork (e.g. lease, pets addendum, lead based paint disclosure, etc.) involved with renting out your property. This documentation can provide a great preventative safety measure for the landlord, in case of a breach of terms. Nesbitt Realty has several NVAR licensed Realtors who can put your property into the MLS (multiple listing service) and thus reach a much larger audience, than say, using craigslist.  

Reliability and Accountability

Whether we like it or not, sometimes homes need maintenance and sometimes they need maintenance at the worst of tim es (e.g. the dead of winter, early Sunday morning, in the hot and humid summer, etc.) Nesbitt Realty has top notch accountability with handling maintenance issues – from sinks needing snaking, to hardwood floors needing updating, to lost keys needing replacing. If you need to get a hold of the Nesbit Realty, you can call and either a.) Get a hold of someone or b.) Get a call back from someone in a very timely manner. Not everyone has this level of reliability and accountability.

Market Knowledge

Outside political and economic forces can seriously affect the market conditions in the area. CMA’s (competitive market analysis) can help estimate what you can charge for you rental. On the other hand, Zillow estimates, can be very distorted and misleading. Additionally, Nesbitt Realty’s Principal Broker, Will Nesbitt, keeps a very up to date informed eye on the trends affecting the area. This can help to create an appropriate price to get your place rented quickly, preceding a harsh rental market.

Investment Properties

Readying for Spring
Readying for Spring
Some smart people are aware of the fact that you can use your money to make more money. One way to do this is to buy choice properties, when the conditions are right. Will Nesbitt regularly surveys listings all throughout the Northern Virginia area, to find these assets for clients. Also, the combination of his experience with the vast array of properties, combined with his moral ethical outlook for your best interest, leads to a good partnership for everyone involved.

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What do property managers and leasing agents do?

I recently received this email:
Will,   What all kinds of assistance do you provide? Do you check the background and credit of the perspective renter? If work needs to be done what happens? I know that the carpets will need to be cleaned before the renters would move into the place. Does one have to use your people to do any work necessary? What happens if I were to need a new renter, would your service handle that too? I have never used a service such as yours before, so I have a lot of questions. Thanks for your help. Sincerely, (name withheld)
Like most property managers, our services to the landlord are broken into two different jobs. The first task that landlords ask us to perform is often the task of finding a renter--to describe, explain and memorialize how we find your renter, write and sign a listing agreement. The listing agreement is not unlike the listing agreement a homeowner signs when he or she sells a house. The listing agreement is what lets us put a lockbox on the door. We need a listing agreement to put the property in the MLS (multiple listing service). The listing agreement describes the terms and conditions under which we get paid. We  get paid only if and when we find a renter. Most agencies charge between one-half to a full month's rent to get this service done. If our client is using our property management services, we let the client set the fee, but we take the time to explain how agents get paid.
MLS
The MLS is a database of homes listed for sale.
Like all listing agreements, the listing agreement will set a term or time period and then expires. In the past few years I can't remember having an expired listing agreement as we push hard to rent quickly. Once we find a prospective tenant, we take an application and proof of income. We then pull a background check to make determine a recommendation regarding the applicant. If the tenant can afford the property and has a good payment history we give a positive recommendation. If the tenant has a questionable credit history or if the tenant can't afford the property, we advise the landlord that we have an application but do not recommend proceeding with a lease. In some cases, we can provide solutions to guard the landlord against potentially problematic tenants, but still find a way to move forward with the applicant. After we are settled on a tenant, we prepare a lease and have it signed by the landlord and tenant. This is the end of our duties as a listing agent. But that's when our duties as a property manager begin. As a property manager, we collect the rents and make payments to the landlord as described in the property management agreement. From time to time, we respond to service calls from the tenant, dispatching appropriate handymen, electricians, plumbers, etc. to solve the problem. When this happens, we deduct the cost of these services from the rent collected and pay the landlord the remainder. From time to time we make inspections of the property and we occasionally recommend maintenance or upgrades.
Will Nesbitt examines some tools at Home Depot
Will Nesbitt examines some hardware at Home Depot
Unlike some property managers, we  collect fees only when the property is occupied. No rent equals no charge. If the property needs to be prepared prior to leasing, we can and will make some efforts to put the property in order. Some properties need a little clean-up to prepare for market. We don't charge for managing a clean-up. We simply pass the cost without mark-up back to the landlord. We will take some deposits from the landlord as required to take care of this clean-up. Some properties need something more than a clean-up. When a property needs a renovation, we may charge a fee to manage construction and clean-up to put the place in order. Eventually the renter moves out and we'll need a new renter. At that point, we'll sign a new listing agreement and start the process again. We manage houses, townhouses and condominiums. We bring a special expertise to condo management because we know how condos operate, but we don't limit our business to condos. It's hard to describe everything we do in a format like this, but that's what we do in a nutshell. There are additional services and limitations I'll describe when we go through the agreements, but this should be enough to get you started. For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.

What your property manager should know …

Will Nesbitt
Will Nesbitt
If you own rental property, you probably should consider a property manager. If you don't know the answers to these questions, then you should definitely contact us to find out more about our property management services.
  • What is the proper procedure for filing a notice to pay rent?
  • What notices can permissibly be served to a tenant under the terms of a lease?
  • What important legislation is looming on the horizon regarding debt collection?
  • By law, what is the maximum security deposit you can collect in Virginia?
  • What rights do you have (or not have) regarding pets on your property?
  • What amenities are included (or not included) with your property?
  • What are the latest fair credit reporting rules and requirements?
  • What are the Federal and/or State laws that govern fair housing?
  • What questions are you NOT allowed to ask on an application?
  • What laws apply to abandoned personal property left behind by a tenant?
For more information or to set up an appointment call Nesbitt Realty at (703)765-0300.  

Five Home Renovations That Can Deter Potential Buyers

  1. Luxury upgrades: Avoid trendy and frivolous renovation expenditures. Simple and relevant renovations are more likely to pay off in the long haul.
    property managment
    Amin & Will in Lowes
  2. Garage conversion: Converting a garage to a family room can turn off potential home buyers. Some people want a garage and not a family room. Consider if you plan on selling in the future before you make the change.
  3. Adding a swimming pool: Unless you live in a place that is warm year round, a pool might not the the best idea. Pool maintenance can prove to be very costly. Some home buyers will factor in this cost and decide to pass on your home. Also a pool runs the risk of being a liability for small children.
  4. Bedroom conversion: Converting an office or master closet can deter a home-buyer. Some people prefer the home as it was built, without changes to the layout. If you are considering putting you home on the market, you might want to consider undoing these changes.
  5. Making it too personal: Personalized fixtures, colors, finishes, and paint jobs might not be what the person considering buying your home likes. Neutral finishes, colors, and fixtures are a safe bet. Potential buyers might think your home needs renovation if your personalization is not to their liking.
Taylor, Jim. "Five Home Renovations That Negative Affect Resale Value." Five Home Renovations That Negative Affect Resale Value. Version 1. Realty Times, 25 Nov. 2013. Web. 9 Dec. 2013. <http://jimtaylor.realtytimes.com/advicefromagents1/item/26717-five-home-renovations-that-negative-affect-resale-value>.

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