How To Deal With Water Damage In Your Colorado Springs Rental Property PART 1

Fresh Water

Brought to you by Muldoon Associates, Inc. Exceptional Property Management

This first part is going to cover the lesser of two evils in the water damage world, fresh water.  Some of you may be under the impression that fresh water events are no big deal.  The carpet got a little wet, you can shop vac it dry, and everything is good to go!  Unfortunately this is not the case and you are going to want to make sure this type of work is done right or you could be opening yourself up to lawsuits or health hazards.

Water extraction is a complex business now.  There is specialized equipment, chemicals and training required to properly extract and dry affected areas.  If your affected areas are not properly dried you could be creating the perfect atmosphere for mold growth which will cost much more than just doing it right the first time.  Fortunately, fresh water sources if tended to quickly are less of a health concern than contaminated water.  If drywall is not "too" wet it can be dried, carpets can be peeled back and padding replaced, and there will not be a need for as much removal of materials.

Fresh water can turn into contaminated water if it's not cleaned up quickly enough.  Every minute the water is left in the home it collects more debris, germs, dust and dirt.  It also wicks and soaks more and more areas in your home.  This is why it's so important to act quickly.  As the water gets more contaminated the cost of mitigation goes up.   Most water damage situations will involve humidity readings, specialized drying equipment and time.  The wetter an affected area is the longer it's going to take to dry.  This all seems common sense but you would be surprised how many folks I talk to are under educated when it comes to this type of damage and they are shocked with they get bills that often times range in the thousands.  I suggest contacting your insurance company and checking what kind of water damage coverage you have.  If you don't have proper coverage for fresh or contaminated water damage I suggest purchasing it or finding a company who offers what you need.

That finishes up our post on fresh water mitigation!  Check back soon for the second and final part of this series which we will cover contaminated water mitigation!

Daniel Muldoon

How To Deal With Water Damage In Your Colorado Springs Rental Property Introduction

Water Damage Introduction

 Brought to you by Muldoon Associates, Inc. Exceptional Property Management!

I'm writing this blog post to help property owners and property managers get more educated about water damage in a rental property or personal residence.  This is important information because incorrect actions can result in fines, health risks, and excessive damage to your property.  I'm not certified or licensed in the water extraction business but I do have a lot of first hand experience and that's what I'm going to be sharing in this 2 part series.  

There are 3 categories to differentiate between levels of contamination in the water source.  

Category 1 would include water from a fresh/sanitary source.  For example, the plumbing to your sink breaks and floods the kitchen.

Category 2 is somewhat contaminated water.  This also includes fresh water that has been left for an extended period of time.  Using the scenerio above, the water that came from the fresh water supply has been left on the floor, carpet, etc for a few days and has become contaminated with the dirt dust and debris on your floor.

Category 3 is grossly contaminated water.  For example, your sewer line backs up and floods your basement. 

For the sake of this blog I'm going to break it down into two category's, "Clean Water" and "Contaminated Water".  I'll also be touching briefly on insurance claims and insurance coverage.  Please stay tuned for the first part in our series!!

Daniel Muldoon

 

How To Avoid Water Damage In Your Colorado Springs Rental Property

In Colorado we have a semi arid desert climate but during our monsoon season it's not uncommon to have leaky roofs, flooded basements, and other water related issues. The water itself is a big problem but the potential for mold due to the water is an even bigger problem.  In order to avoid these issues it's imperative you take the steps in this blog to protect your rental property from water damage and mold.

At least once per year you should have a roofer come out and inspect your roof.  Many companies will provide this service for free and you should take advantage of it!  They will not only check out your shingles but also the soffit, gutters, flashing, etc.  All of these areas are possible points of entry if they are not totally sealed off.  Many times a roof leak will cause damage to ceilings and it's possible to drip into ceiling fixtures and create a fire hazard.

Window wells are another problem area that can allow water to enter basements or lower levels.  Make sure none of your downspouts empty near or around your window wells.  Place a couple inches of river rock in the bottom so the water can drain without eroding the dirt at your foundation.  Verify your gutters are draining properly to the downspouts and rain water is not flowing over the tops of the gutters.

Last but not least you need to make sure the drainage around your foundation is such that the water runs away and into the street as opposed to pooling up or draining into your foundation.  You will want to make sure your neighbors drainage does not come towards your property also.  In Colorado Springs it's against the law to have your drainage affect another property and water must be diverted towards the street.

I hope this information has been helpful to you and will help avoid issues with water damage or mold.  You will want to check with your insurance company and see if your policy covers this type of damage in case it does happen or if they offer a rider policy that will cover you.

Daniel Muldoon
Muldoon Associates, Inc.

Things To Do To Your Colorado Springs Rental Property Before Fall

Things are going great!  You have read my previous blogs on properly vetting tenants and keeping your rental property occupied and you have had months of smooth sailing!  Remember you still need to stay ahead of repairs and upkeep on your property.  As we come into fall it's a good thing to have a list of items that you will check and repair before fall hits.

Summer in Southern Colorado involves hot days and 60-70 degree nights.  There is little to no risk of freezing so hoses are easily forgotten and left attached to spigots, or sprinklers are set on auto-pilot with no fear of breaks.  As we come into the fall season the days will stay warm but the nights will begin to cool.  You will need to start the furnace soon and turn off the A/C.  Here is a list of things you should do to your rental property as we transition into fall.  Some of these items are tenant responsibility but use this as an opportunity to walk your tenant through the processes or provide them with preferred vendors to take care of it if they cannot.

1. Have the furnace serviced and cleaned
2. Keep an eye on your gutters as the leaves and sticks begin to fall
3. Get into the habit of spooling up your hose and removing it from the spigot
4. Fertilize and aerate your yard
5. Check all weather stripping and caulking around doors, windows, vents, etc
6. Winterize your evaporative cooler
7. Turn off your sprinklers are nights that are below freezing
8. Make sure you have secondary heating options in case there is a problem with the central heat
9. Mow your yard at higher depth to help protect the grass from the coming cold season
10. Remove all dead and overgrown vegetation

If you have completed this checklist you are well prepared for fall in Southern Colorado.  I'll be back shortly with a list of items to prepare for winter!

Daniel Muldoon
Muldoon Associates, Inc.

How To Effectively Complete A Move Out Property Condition Report on your Colorado Springs Rental Property Part 3

WHAT SHOULD AND SHOULD NOT BE WITH HELD FROM A DEPOSIT

This can be a tricky subject but here is a list of things that should never be with held from a deposit.

1. Yard Rehabilitation-A tenant moves out and your wonderful green grass is now dead.  Unfortunately there are too many variables that put you at risk of a deposit dispute.  Colorado is a desert climate, vegetation does not grow without human intervention in many areas.  Yards are like anything else in your home.  They have a serviceable life and once that's exceeded you cannot collect money to repair or replace without risking litigation.  Make your yard as maintenance free as possible.  If a tenant does not complete a final mowing, trimming, weed pulling at time of move out this could be a legitimate charge.
2.  Anything that has exceeded it's serviceable life-  Carpet is good for 5 to 7 years, if you have gotten longer than that, consider yourself lucky but don't plan on charging the tenants if it's damaged at move out.  Even if you went to court and won the case the magistrate may very likely award you a pro rated amount based on it's serviceable life.  In this case it would be zero dollars since the carpet exceeded it's serviceable life.  
3. Anything that is not documented on the move in inspection- If you failed to document any part of the home and it's damaged now, chalk it up as a learning experience.  If you go to court you will lose. Refund the money, kick yourself in the pants, and do a more thorough job next time.
4. Anything that is not outlined as a cost in the lease packet-  If you have not made a detailed lists of costs for repairs it's very difficult to enforce.  Include this form in the lease packet at move in and have the tenants sign it.
5. Ordinary wear and tear- Per Colorado State Law, ordinary wear and tear is allowable by law and cannot be charged back to the tenants.  Flooring, paint, windows, etc.  Scuffs, nail holes, fraying carpet by thresholds, are all considered ordinary wear and tear.  

This obviously is not an all inclusive list and there are limited circumstances where some of these may not be applicable but use this as a rule of thumb on your next disposition.

Daniel Muldoon
Muldoon Associates, Inc.

How To Effectively Complete A Move Out Condition Report On Your Colorado Springs Rental Property Part 2

MOVE IN AND MOVE OUT INSPECTIONS

After you have completed all of your repairs and upgrades and you have approved a tenant for move in you you will need to complete a move in inspection.  This will be for your records so you can refer back to the condition of the home after the tenants vacate.  We currently use written reports and photos but we will be converting to video inspections in the near future.  I suggest you use the method that works best for you but make sure you are thorough and have some type of visual documentation (photos or video).  

You will need to test and document the condition of every light bulb, switch, socket, door, window, knob, blind, etc.  Don't forget anything!  Open drawers, inside of fridges, furnace and filter, EVERYTHING!  Once the lease has terminated and the tenant has turned over possession you will use the same process.  Now that you have the move out and move in inspections complete you need to go line by line and compare the condition.  Many of the items that need to be repaired or replaced will be normal upkeep items that the landlord is responsible for.  You need to decide what damages are beyond normal wear and tear, complete the work, and keep receipts for the deposit disposition.  

Your disposition will need to be written and delivered to the last known address of the tenant or a forwarding address if provided.  Make a copy of the stamped envelope and place it in the file in case you ever need proof it was completed and mailed.  Hopefully if you did everything according to the law the tenant will not dispute any of the damages and you are in the clear.  If the tenant does dispute the damages they must do so in writing requesting their deposit be returned because it was wrongfully with held.  The landlord has 7 days to return the deposit (right or wrong) or the precedence in Colorado is you are already wrongfully with holding a deposit.  At this time the tenant can litigate for 3 times the with held amount.  Based on my experience it's best to just refund the deposit except in extreme circumstances.  This will cost you less in the future and even though it can be a tough pill to swallow it's the right financial decision.  

You may have legitimately with held the items owed but this can only be proven by a magistrate or judge.  It could take you month's and thousands of dollars to "prove them wrong" or "prove your right" but that does not make sense in the scheme of things.  I have also heard but not experienced that some magistrates will not award any money that was not addressed at move in.  You should have a form that outlines how much each charge will be if the tenant does not take care of it at move out.  I.E. cleaning is 250 dollars, locks are 75 dollars, furnace filter is 25 dollars, and the list goes on for virtually everything in the home.  This should be given to and signed off by the tenants.  A rock solid lease packet, inspections, and disposition will help keep your return on investment high and your days in court short.  

Daniel Muldoon

Muldoon Associates, Inc.

How To Effectively Complete A Move Out Inspection Part 1

DEFINING SECURITY DEPOSIT

Security deposits are probably the most litigous aspect of a tenancy.  The deposit is regulated by Colorado State law and how the deposit is to be handled post move out is dictated by law.  You must be certain you know every aspect of the laws pertaining to security deposits and dispositions in order to limit your legal liability.

In the state of Colorado a tenant is able to sue for treble damages when their deposit is "wrongfully with held".  This could mean a deposit was not returned in the allotted time (30 days by law unless agreed upon in writing by tenant and landlord at which time it will be extended to no more than 60 days.), with holding for damages or repairs that were not beyond normal wear and tear, or a number of other situations.

The security deposit belongs to the tenant but is held by the management company in order to secure the condition of the home at move out.  This means you better not use the deposit for anything during the term of lease.  It cannot be applied to last months rent, late fees, or anything else while the lease is in effect.  These fees can be with held from the deposit post move out if the tenant has not paid the account in full but you must wait for the lease to terminate and handle it on the deposit disposition.  I may sound like a broken record but I can't stress enough how important responsible and legal handling of the deposit is.

Now that we have defined the deposit and the disposition rules we will proceed to the move out inspection itself.  Per Colorado Law your lease must state that wear and tear damage is acceptable and will not be with held from the deposit.  This means nail holes, trim scuffs, carpet wear, blind wear, etc.  At every single move out (and likely more frequently) you need to be prepared to touch up paint, replace door stops, and other repairs as needed.  This is why long term tenancy and keeping your tenant happy is so important.  The longer they stay the less often you are doing touch up work.  Some landlords are under the impression the tenant is responsible for all damage and do not take normal wear and tear into consideration.  This is a complex subject because wear and tear does not apply equally to every situation.  If you have a property with one individual living in it compared to a property with 4 individuals living in it, the wear and tear will be more, typically, with more occupants.  This does not change the fact it's wear and tear and should be handled as such. 

There are things that can be with held from a deposit.  Major damage, abuse, or neglect.  For example the tenants take your brand new carpet and change their motor cycle oil with no oil pan.  The tenant would be responsible for the carpet but only in that area.  If it can be patched it should be patched and not replaced.  Remember, you are trying to avoid legal disputes so "sticking it to the tenant" is not the methodology you will want to use.  You must be fair and you must document thoroughly.

Your move in inspection is your first tool that needs to be taken seriously. Make sure you have pictures and written documentation, or a video with voice over.  If you ever do have a dispute you are going to need a rock solid inspection.  Your move out inspection must be just as thorough in documenting condition.  These are the first things magistrates will look at if you go to court.  The best thing to do is avoid court all together.  Many times it will cost you thousands of dollars in legal fees and many days in court and you may not even get legal fees awarded.

Daniel Muldoon
Muldoon Associates, Inc.

Reasons To Hire Muldoon Associates, Inc.

Muldoon Associates, Inc. has perfected the art of managing single family residential properties in and around Colorado Springs, CO and Pueblo, CO.  Whether you have a 1 bedroom home or a 10 bedroom castle we can handle your property management needs efficiently, effectively, and professionally.  We are so confident in our tenant placement services that we offer free eviction protection coverage.  If we have to evict a tenant that we placed in your property, we will absorb the legal fees.

We offer a simple flat management fee with no hidden costs, and no percentages!  Our costs do not increase based on rent, we offer our flat rate management fees to everyone.  Our flat fee includes tenant placement, security deposit disposition, rent collections, showing your property to prospective tenants, advertising, maintenance correspondence, tenant correspondence, online owner portals, tenant portals, and much more!

    

Let us handle your asset for only 99 dollars per month.  Nobody can match our services or our prices!  Muldoon Associates, Inc. has managed thousands of homes over the past 30 years.  We have implemented virtually fool proof systems and policies which allows us to keep our fees low and our quality of service unsurpassed.

Property management isn’t just a business to us.  It’s our name, our livelihood and our passion.  Investment properties can be risky but we do everything we can to minimize your risk while maintaining your return on investment.  Call or email Daniel Muldoon to discuss your specific needs and situation.  

How To Choose The Right Property Management Software

Hello All!

In this post we will be going over what to look for in a property management software.  There are companies providing software that suits everyone from the one unit owner to companies that manage thousands of units!  You will need to begin by outlining what you want your software to do.  Will you only be using it to keep track of your occupants?  Do you need online rent payments or owner/tenant portals?  Will you be using the software to mass produce emails?  Would you like the software to automatically create templates for online advertising?  There are many powerful property management programs available at this time it's just a matter of deciding what's right for your situation.

Smartphones and tablets are very powerful tools and relatively inexpensive.  There are property management apps available for little or no cost and work well for the owner who has a few units or a small start up company.  Most of these apps will keep track of occupants, lease dates, inspection dates, and some even have built in payment features!  If this is all you need then a smart phone or tablet and an app should suit your needs just fine.

On the other hand if you are managing more properties or you need your software to do additional tasks you will need to upgrade to a desktop or laptop computer.  Many of the larger management software companies offer web based solutions.  This is great because you don't need much local hard drive space since all of the information is held in the cloud.  Typically you pay a monthly fee based on the number of units you manage and the features you need. All of the updates and changes are automatically done with no additional cost.  Beware though, you must have an internet connection to access the database so if you are out of service often, a web based solution may not work for you.

We use Appfolio for our property management software and it's been great for us!  They offer online ads, one click posting to craigslist, online tenant and owner portals, and all of the accounting features you would expect out of your management software.  Their customer service is excellent and they are constantly making their software better and easier to use!  There are other software choices such as Propertyware, Promas, Yardi Systems, TOPS and a few others.  Be sure to check out each one thoroughly so you know what the program can do for you! 

Feel free to comment, share, or contact me directly if you have additional questions!

Sincerely,

Daniel Muldoon