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

Fresh Water

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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 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.

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.

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.