Over the last few months, we have noticed a huge increase of falsified documents submitted by applicants . With the wide range of technological opportunities, it has become easy for applicants to create fake pay-stubs, bank statements and rental references. “According to industry studies, 80% of fraudulent incomes reported in lending applications actually are really misinterpretations in the original form. This said, customers with no financial source of income or with low income, can find an alternative to faux pay stubs to qualify for a loan” or rental homes. “A number of video websites have surfaced that can teach anyone with a little interest how to create counterfeit pay stubs to get a clear pass.” With this risk, it has become critical that property management companies be extremely vigilant in verifying, and in some cases re-verifying application documents submitted by applicants. In doing so, the turnaround time for application processing has almost doubled. “Income fraud is the easiest to perform and the most difficult one to be identified by the lender, but before going any further with this process, one must know that creation of any such phony pay stub is illegal and absolutely off limits! This can result in a misdemeanor and/or felony and can cost offenders incarceration and/or fines.” Applicants are often unaware of the repercussions associated with such fraud and believe a denial of the application may be the only consequence they could face.
Negotiating a fair price
Always make sure you compare apples with apples when getting any work done. Our regular house painter had been with us for 14 years when he quoted $1200 to paint a newly-vacant house. As with all our vendors, he has a license and insurance. The owner of the property was not happy with the estimate and found someone to do the work for $200 less. When we inspected the house after the painting was finished, we found that the insides of the closets and the ceilings were not painted. It appears that the owner was taken advantage of because our painter’s bid would have been far lower if he only had to paint the walls. Make sure that when you get multiple estimates they provide numbers as well as details so you can make sure you get what you pay for.
At Horizon Properties we are always seeking qualified vendors who provide fair estimates and quality workmanship to serve your needs. Our ongoing inspections keep you up to date on any necessary or cosmetic repairs you may need to know about. Our vetted vendors, many who have been doing work for Horizon Properties for more than 10 years, will benefit you when it is time to make a decision about work needed at your property.
Tenant Relations
Tenant relations is an important component of the property management equation. I have been in the property management business for more than 37 years, yet there are always new things that pop up. This is one of the things I love most about this industry – it is never boring!
Long ago tenants were treated as second-class citizens. The properties available for rent were not usually cared for in the same way as a house one might purchase for their home. Today, however, tenants are as important and have as much of a voice as everyone else. Many of today’s tenants are people who choose to rent instead of own but still expect high-quality housing and attention to problems in a timely manner. There are still some clients who do not agree with this new rental model.
Today we were faced with a tenant who had a roof leak which caused significant damage to their living room ceiling. The owner chose not to repair the ceiling because the roof had been replaced and there was no longer a leak. The problem is that the ceiling was in good repair when the tenant moved in and they deserve to have a good ceiling now. Not only is it unsightly, it could potentially pose a health hazard. Gone are the days when you can opt out of doing the right thing just because you don’t want to. We choose not to wait for the tenant to report the problem to Fair Housing and city code enforcement. In an effort to provide the best service to both our clients and our tenants, we are making sure this ceiling is repaired. If it takes numerous estimates and photos to make the case with the owner, that’s what will be done. So, when faced with how to handle a situation, put yourself in the other person’s shoes and see how best to help them.
