Reliable Property Management, LLC has a simple and clear-cut mission: We use our experience and local market knowledge to best represent our client’s interests and to establish long-lasting relationships. We take over the responsibility of managing, maintaining and leasing properties, giving our clients the peace of mind to focus on their other business and personal priorities.
With over fifty years of combined real estate experience in the Chicago market, Reliable Property Management provides clients with the best combination of quality services, effective pricing, and reliability available.
Please visit our web site:
www.reliablemanager.com
Reliable Property Management, LLC
2106 West Belmont Avenue
Chicago, IL 60618
Telephone: 773-244-3200
Fax : 773-244-9999
For Leasing Services:
Dave Straub, @properties
773-255-3180
Reliable Property Management, a full-service property management company focused on residential and commercial properties in the City of Chicago. We manage condominium and homeowners associations, multi-unit rental buildings, investor properties, single-family homes, and small commercial properties. We also offer management services to developers and REO properties for banks and others. With a staff with a combined experience of more than fifty years, we provide the best combination of quality service, effective pricing - and reliability. More than in any other industry, property management and maintenance really comes down to good old-fashioned experience.
For an affordable monthly fee, we handle all aspects of the management and maintenance of your property, helping you retain and increase its value, and avoiding costly mistakes. We use our expertise to provide our clients with peace of mind about their valuable properties.
We offer a full range services, allowing you to pick and choose only those services that best suit your needs and budget, with no complicated package deals or charge for unneeded services. Please visit the “description of services provided” section in our website to learn more about the scope of our services. From the simplest to the most complex management or maintenance task, we are here to help you 24 hours a day, 7 days a week.
What is a Property Manager?
Ever ask yourself, what is a property manager, or what does a property manager do?
A Property Manager or a Property Management Company is responsible for taking charge of operating a rental property, or manage an HOA (Home Owners Association), when the property owner contracts with them to do so. Typical this includes finding and evicting tenants and generally dealing with day-to-day tenant issues, home repairs, home improvements, general clean up, snow removal and overall management of a property. A property manager may service home owners associations, commercial and residential properties.
These arrangements typically require the property manager to collect rents and pay necessary expenses and provide periodic reports to the property owner. A property manager may arrange for a wide variety of services to be performed, as requested by the owner of the property, for a fee.
Property management services may also include commercial rental properties or vacation rentals. The property manager has a primary responsibility to the property owner and a secondary responsibility to the tenant.
The relationships the property manager has with the rental property owner and with the tenant are crucial in forming the expectations of both parties to the lease since both parties will seek and expect certain rights and benefits. The property owners expectations from the Property Manager are to carry out the owners instructions, control costs and maximize revenue to maintain a stabilized cash flow as a return on investment. A property manager will exercise control over the property to safeguard the capital investment, provide a duty of care through proper maintenance of the building, to be professional and well informed and enhance the value of the property by making improvements that will increase its market value, retain and enhance pride of ownership.
The tenant’s expectations from Property Manager are to provide the "quiet enjoyment" assurance of the use and enjoyment of the premises for the intended purposes. They seek a comfortable living environment which is properly heated, cooled and ventilated with as many amenities as possible compatible with the rental level.
Are fees paid to a Property Management Company for managing my property tax deductible?
The answer is yes.
For those of you who are new to real estate investment, it is important to have a good understanding of the following tax deductions/tax write-offs associated with income producing rental properties.
All Operating Expenses incurred during the operation and maintenance of an income producing property is tax deductible. They include such things as property management fees, property taxes, repair costs, salary and wages, snow removal service, misc. supplies, telephone, trash removal, vehicle mileage expenses, utilities, accounting fees, advertising costs, legal fees, insurance premiums, janitorial service, lawn maintenance service, leasing commissions, license fees, office supplies and expenses, pest control, etc.
All Mortgage Interest paid on loans secured by income property is tax deductible
Closing Costs incurred for with the purchase of an income property such as title search fees, title insurance, appraisal fees, loan application fees and recording fees are deductible in the year of purchase.
Depreciation is the loss in value of an asset or building over time due to wear and tear, physical deterioration and age. The IRS allows you to depreciate income producing properties over their useful life which is determined by law.
Capital Improvements are subject to the same depreciation method as the building above. Capital improvements are things such as a new roof, new siding, new windows, and a new addition to a building, etc. Capital improvements to a residential income property are depreciated over a period of years.
The information contained on this page is not intended to be legal or professional tax advice, consult a professional tax advisor or the Internal Revenue Service for more information on allowable tax deductions.
How does a Property Management Company find and keep good tenants?
Many responsible tenants will only consider renting from a professional Property Management Company for a multitude of reasons. For example, a professional Property Management Company will have a website full of information about the available rental properties including photos, maps and pertinent information about the neighborhood. A professional Property Managers website will contain information about the local municipalities as well as the convenience of online forms such as necessary rental applications and contact phone numbers.
A professional property manager will adhere to State and Local laws and will offer the peace of mind in knowing they have a reliable maintenance team available on call 24/7.
A professional property manager will be available Monday through Friday to answer any questions or handle any problem that may arise as well as an afterhour’s emergency number or paging system to reach a maintenance technician for a maintenance emergency. An individual property owner managing their own rental property may not be able to answer emergency maintenance calls that come in and do so in a timely fashion.
A professional property management team will be set up to do background and credit checks on individuals filling out a rental application. They will also be set up to call on references to prior landlords and offer current employment verification. Allowing an unqualified tenant into a rental unit can only lead to delinquency and damages to the rental property.
What is a homeowners' association (HOA), a community association and a managed community?
Homeowners' Associations (HOA) are non profit committees that manage communities. An HOA is typically hired to oversee the maintenance of a community and enforcing their covenants, convictions, and restrictions, also referred to as CC&R, to help protect the appearance and safety of the neighborhood.
The CC&Rs are put into place to define how a property may be used. For example, a covenant may put a limit on the height of a fence or determine the allowable color schemes to be used when painting the exterior of a home. Although CC&Rs may be a pain for some home owners or renters living in an HOA, they are necessary to ensure a positive ambiance and curb appeal. There are also many benefits HOA members enjoy that they might not have been able to afford otherwise.
Part of being in an HOA includes paying assessment fees or association dues. These fees vary depending upon the square footage of the area and what kind of association it is. Because the assessments are paid by the community, HOAs are able to have well maintained landscapes, community pools, and in some cases, even community country clubs. On occasion, association dues provide for your home owners insurance premium as well. If you ask community members of an HOA, most would agree that the costs of the assessment fees are a reasonable price to pay for what you get in return.
Because HOAs must maintain multiple properties and a large area of landscape, many of them hire a property manager or property management company to oversee the operations, maintenance, and financial aspects of the community. The property manager or property Management Company is responsible for maintaining the community, finding tenants for the rental properties, and most of the time providing accounting services. The accounting proves to be very helpful to an HOA. When managing so many properties and allocating assessment fees into the community, accounting can be quite a daunting task to committee members. For more information on property management services please read our article.
How to Screen for Qualified Tenants
The problem with tenants who not have been properly pre-screened range from broken windows and stained carpets to damaged walls and late rent or worse yet, no rental payment, legal
expenses, and the list goes on and on.
Problem tenants are the leading cause of frustration and headache in the rental industry. Hundreds of property managers deal with bad tenants on a regular basis. This is why it is crucial that management companies take the appropriate steps to screen tenants, and when I say appropriate, I mean there are wrong ways to screen tenants as well.
It is VERY IMPORTANT that the property manager truly understands and follows Fair Housing Laws to avoid discriminating and being taken to court. A little time taken out to properly screen tenants could potentially save thousands of dollars of damage to your rental property. Lost income due to a delinquent tenant added to damage done to the property can be devastating to a rental property owner. Some property owners do not recover from these types of situations and end up in bankruptcy. Don't let this happen to you!
The first step is to have the prospective tenant fill out a rental application. The information gathered on a rental application should include the applicants employment history, monthly income, proof of identification (i.e. social security number, copy of driver's license, etc.), and references of previous landlords or employers to get a sense of character.
It is very important to check references. Just because they are on paper, doesn't mean they are legitimate references. Many management companies request references but never check them! With your rental application you should include a written code of conduct. The code of conduct should clearly detail the roles of both the tenant and the management company. This code could protect you in court, so it is very important to include this.
It is also very important to obtain a copy of the applicant's credit report. In order to obtain this information, the manager must first get permission from the applicant. If you do not have permission, do not run the credit report. The following information must also be gathered: Tenant's name, address, and Social Security number. Get their approval to run the credit report right on the application by having them sign a statement authorizing you to do so.
The next step is to find a credit report agency. If the information obtained by the credit report is not to your standards and you decide to decline their application, you must send an adverse action letter. Remember, even if the tenant asks you for a copy of their credit report, it is illegal to give it to them. By sending them the adverse action letter explaining the reason for the rejection, they can obtain a copy of their credit report through the agency from which you obtained it.
Whenever possible, meet your applicants in person. This will give you a better idea of what the person is like and how they might treat your property. Do they try to make a good first impression? Do they come off as well educated? This will also give you the opportunity to start a good tenant relationship right off the bat.
Renting your property to just anyone could cost you some serious time and money. It is not uncommon to see a property rented to bad tenants due to improper background checks or application processes. Follow these steps and you will protect yourself from court, property damages, and the headache of dealing with delinquent tenants.
Q & A about Fair Housing Laws. What is illegal to ask of a prospective tenant?
The purpose of the Fair Housing Laws are to protect a person’s right to own, sell, purchase, or rent housing of his or her choice without fear of unlawful discrimination. The Fair Housing Laws are intended to allow everyone equal access to housing.
State and Federal Fair Housing laws prohibit discrimination in the housing market on the basis of race, color, sex, religion, national origin, handicap, or familial status. To discriminate against a person on the basis of his or her membership in one of these protected categories is against the law.
Question: Do the Fair Housing Laws apply to all housing transactions?
Answer: Yes, except for the following limited exemptions:
The rental of a unit in a multi-family dwelling with not more than four units where the owner (or a member of the owner's family) lives in one of the units
The rental of a room or rooms in a private house where the owner (or a member of the owner's family) lives in the house
Lodging owned or operated by private clubs which give preference to their members
Religious, charitable, or educational institutions or organizations which are operated, supervised, or controlled by religious institutions or organizations that give preference in real estate transactions to their members, provided the organization does not exclude members of a protected category
Single-sex dormitories
Discriminatory Practices and Fair Housing Laws
Question: What are some common unlawful acts of discrimination?
Answer: Refusing to sell, rent or negotiate - It is against the law to take any of the following actions because a person is a member of one of the protected categories:
To refuse to engage in a real estate transaction
To refuse to rent or sell housing
To discriminate in terms, conditions, or privileges for the sale or rental of housing
To refuse to receive or fail to transmit a bona fide offer to engage in a real estate transaction
To indicate that housing is not available when it actually is available
To discriminate by providing different facilities or services
To refuse to negotiate for housing
Steering - Discouraging a person from seeking housing in a particular community, neighborhood, or development because the person is or is not a member of a protected category. For example, a real estate agent shows a black person housing in predominately black neighborhoods and a white person housing in predominately white neighborhoods.
Interference, coercion, or intimidation - Trying to limit the benefits of renting or buying housing in an area because the person is a member of one of the protected categories. This includes trying to coerce, threaten, intimidate, retaliate against, or interfere in any way with the use and enjoyment of housing.
Discriminatory advertising - Advertising or making any statement which indicates directly or indirectly intent to make a limitation, specification, or to discriminate with respect to members of one of the protected categories.
Blockbusting - (also referred to as panic peddling) - Trying, in a direct or subtle way, to scare a person into moving out of a neighborhood by representing that a person from one of the protected categories is considering or is in fact moving into the neighborhood. For example, stating that the neighborhood would decline or that the crime rate would increase if members of a protected category moved into the neighborhood would be unlawful.
Redlining - Being denied or subjected to stricter conditions in applying for a loan on property in a particular area because of the racial composition of the area, including loans to purchase, construct, improve, repair, or maintain housing.
Question: Can a person other than the seller or landlord be guilty of violating the Fair Housing Laws?
Answer: Yes. Anyone involved in the real estate transaction that discriminates based on a protected category has violated the fair housing laws. For example, a local banker informs a real estate agent that if the agent allows anyone else with kids to move into the neighborhood, the bank will not do business with the agent or the agent's customers.
Question: Does an owner have to rent or sell to a person just because he or she is in a protected category?
Answer: No. Owners may rent or sell to whomever they choose as long as their decisions are not based on the fact that a would-be tenant or buyer is a member of a protected category. If someone is from a protected category becomes a tenant, the owner may hold that tenant to the same standard of performance and behavior as everyone else.
Question: Can landlords protect themselves from complaints of discrimination when they reject someone from a protected category?
Answer: Yes. A landlord should have detailed standards for deciding who is acceptable as a tenant and who is not. However, these standards may not be based upon a prospective tenant's membership in a protected category. Such standards are particularly important in decisions to reject a tenant applicant because of poor credit, and to place would-be tenants on a "waiting list." The landlord should then apply these standards equally to every tenant applicant. If a waiting list is used, the landlord must make sure that every applicant who is told that his or her name will be placed on the list is indeed put there and that, as an applicant's name comes up; the applicant is notified of this fact.
What are the advantages of a 1031 exchange?
A 1031 exchange provides real estate owners with a range of opportunities to meet personal investment objectives including increased leverage, diversification, improved cash flow, reduction of management obligations, geographic relocation and/or consolidation. The tax dollars saved by an exchange may be maximized to increase an investor's overall net worth. Ultimately, the exchange process allows investors to reorganize and improve their real estate portfolios to best suit their unique interests and needs.
Generally, if you exchange business or investment property solely for business or investment property of a like kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 Exchanges do not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property
Properties are of like kind if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States is not like-kind properties.
Real properties generally are of like kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
Why should I hire a property manager to manage my rental properties?
Managing a rental property can be a full time job. You must be available 24 hours a day, 7 days a week to respond to tenant’s needs and emergencies. You're also responsible for collecting rent, managing maintenance of the property and finding new tenants when old tenants decide to vacate. This can turn into a lot of work especially if you own more than one property.
An experienced property management company can help take the guesswork out of maintaining your properties. Many property management companies have an experienced network of professionals such as plumbers, electricians, and marketing professionals to keep your property not only in good condition but rented out and making you money.
Many first time rental property owners feel they can manage their rental property on their own. In some cases that works out just fine. However, with the rules, regulations and laws put in place by local and state governments, often leaves a self-managing investment owner with problems they are unable to handle. These problems could be detrimental to your bottom line.
By placing unqualified tenants in rental properties without the proper tenant pre-screening can not only result in property damage and lost income but can also create issuance of covenant violations with Home Owners Associations.
How would you handle emergency maintenance issues at 2:00 a.m. on Thanksgiving Day, or when you're on vacation or worse yet, out of the country? Maintenance issues on rental properties such as sewer back-ups, water heater issues or furnace failures in the dead of winter can be extremely overwhelming when you don't have qualified repairman ready and willing to attend.
Routine inspections of your rental property, followed up with pro-active maintenance programs, are necessary to ensure that you capture the highest rental rate, home-proud tenants, and compete in the competitive rental property market.
What is a homeowners' association (HOA), a community association and a managed community?
Homeowners' Associations (HOA) are non profit committees that manage communities. An HOA is typically hired to oversee the maintenance of a community and enforcing their covenants, convictions, and restrictions, also referred to as CC&R, to help protect the appearance and safety of the neighborhood.
The CC&Rs are put into place to define how a property may be used. For example, a covenant may put a limit on the height of a fence or determine the allowable color schemes to be used when painting the exterior of a home. Although CC&Rs may be a pain for some home owners or renters living in an HOA, they are necessary to ensure a positive ambiance and curb appeal. There are also many benefits HOA members enjoy that they might not have been able to afford otherwise.
Part of being in an HOA includes paying assessment fees or association dues. These fees vary depending upon the square footage of the area and what kind of association it is. Because the assessments are paid by the community, HOAs are able to have well maintained landscapes, community pools, and in some cases, even community country clubs. On occasion, association dues provide for your home owners insurance premium as well. If you ask community members of an HOA, most would agree that the costs of the assessment fees are a reasonable price to pay for what you get in return.
Because HOAs must maintain multiple properties and a large area of landscape, many of them hire a property manager or property management company to oversee the operations, maintenance, and financial aspects of the community. The property manager or property Management Company is responsible for maintaining the community, finding tenants for the rental properties, and most of the time providing accounting services. The accounting proves to be very helpful to an HOA. When managing so many properties and allocating assessment fees into the community, accounting can be quite a daunting task to committee members. For more information on property management services please read our articles.
What is renters insurance and why is it so important?
Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord's insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.
By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.
There are two types of renter’s insurance policies you may purchase:
Actual Cash Value - pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
Replacement Cost - pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy
With either policy, you may want to consider purchasing a floater. A standard renter’s policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.
Information provided by the
Insurance Information Institute.
What is Sustainable living and how do I reduce my carbon footprint?
If the polar ice caps melted and all life on Planet Earth ceased to exist, could you honestly say that you did everything in your power to prevent global warming? It is not certain that global warming will reach this extreme. It is certain however, that our modern day lifestyles are contributing to the Planet's climate change. The environment is an increasingly controversial topic nowadays. It's sad to say, America is the number one polluter and biggest contributor to global warming. We emit more fossil fuels into the atmosphere than any other country in the world!
Going "green" has never been more important for Americans, considering how far behind we are and how little time we have before global warming could turn into a serious problem.
The question is, where do we start? The answer is sustainable living. Changing the little things around the house of everyday use can drastically reduce our impact on the environment. According to an article by McKinsey & Company "Curbing Global Energy Demand Growth", the residential sector is the single largest energy consumer worldwide, accounting for 25% of the global demand.
As property owners, landlords and property managers, it is our responsibility to make sure our rental properties are environmentally friendly and encourage sustainable living. Here are a few ways to not only help save on energy bills, but increase the value of your property, attract and retain tenants, and progress in the fight against global warming for years to come.
Insulate your home. The University of Harvard did a study that showed there are over 46 million under insulated homes in the United States. Heating and cooling consumes the most energy in residential properties. A poorly insulated home could cost up to 34% more in heating expenses. How do you know if your property is under insulated? The best way to find out is to hire a licensed inspector to complete an energy audit. They can tell you if your home needs more insulation and where the most energy is being lost. Insulation is a cheap, easy, and efficient way to save money and reduce energy consumption.
Use fluorescent lighting. Incandescent light bulbs are slowly becoming a thing of the past. Compact fluorescent light bulbs last ten times longer and consume two thirds less energy than a normal incandescent light bulb. So how much of an impact could change a light bulbs actually have? According to the U.S. Environmental Protection Agency, if every American changed five light bulbs in their home to a fluorescent light, it would make an incredible difference. Each household would save up to $60 a year and keep about one trillion pounds of greenhouse gases out of the air!
Apply weather stripping to doors and windows. Leaky windows and doors have the same effect as a poorly insulated home. When energy escapes, the home is more expensive to heat or cool. By simply applying weather strips, you will trap more energy in the home making it less expensive and more comfortable for living.
However insignificant these three things may seem, they really add up over the long run. The value of your property will go up, tenants will be more satisfied, and you will be doing your part in putting a stop to greenhouse gas emissions and encourage sustainable living.
Please visit our web site:
www.reliablemanager.com
Reliable Property Management, LLC
2106 West Belmont Avenue
Chicago, IL 60618
Telephone: 773-244-3200
Fax : 773-244-9999
