Archives December 2023

Rental application fraud is on the rise worldwide thanks to websites like X and Reddit, which give scammers the ability to share tips, tricks, and the latest technology that they use to take advantage of unsuspecting landlords.

Thankfully, knowledge is power and it’s easy for landlords to know what to look for and stop rental application fraud dead in its tracks.

In this article, we will offer you helpful tips that you can use to stop rental application fraud and ensure that you only rent to the most qualified tenants possible.

Tips For Spotting Rental Application Fraud

Detecting rental application fraud is crucial for landlords and property managers to ensure the integrity of their rental process. Here are some common signs of rental application fraud:

1. Inconsistent Information:
   • Check for inconsistencies in the application, such as conflicting employment dates, addresses, or income details.
   • Verify the information provided by cross-referencing with documents like pay stubs, bank statements, and employer verification.
2. Fake References:
   • Verify references by calling employers, previous landlords, and personal references to ensure they are legitimate.
   • Be cautious if the contact information provided for references is incomplete or seems suspicious.
3. Too Good to Be True:
   • Be wary of applicants with exceptionally high income levels, impeccable credit scores, or who offer large upfront payments.
   • If the applicant’s financial situation seems too good to be true, it might be worth investigating further.
4. Unusual Payment Requests:
   • Be cautious of applicants who request unusual payment methods or provide payment in large amounts in advance.
   • Fraudulent applicants may try to expedite the process with unusual payment requests.
5. Rush to Move In:
   • Be cautious of applicants who pressure you to speed up the application process without proper verification.
   • Fraudsters may attempt to rush the process to avoid thorough scrutiny.
6. Incomplete Applications:
   • Applicants with incomplete or vague information may be trying to conceal something. Verify missing details before proceeding.
   • Ensure that all required documentation, such as proof of income and identification, is provided.
7. Inconsistent Employment History:
   • Verify the applicant’s employment history, especially if there are frequent job changes or long gaps between jobs.
   • Cross-check the information with the employer or through official documentation.
8. Check Social Media:
   • Social media can provide additional insights into an applicant’s lifestyle and behavior. Look for any inconsistencies or red flags.
9. Identity Verification:
   • Verify the applicant’s identity through official documents such as driver’s licenses or passports.
   • Check for any signs of forged or altered documents.
10. Background Checks:
    • Conduct thorough background checks, including criminal history and credit reports, to identify any potential red flags.
11. Trust Your Instincts:
    • If something feels off or if your instincts are raising concerns, take the time to investigate further before finalizing the rental agreement.

It’s important to note that while these signs can be indicators of potential fraud, they do not guarantee fraudulent activity. Always follow proper legal procedures and respect the privacy rights of applicants during the screening process. Additionally, local laws and regulations may dictate specific steps that landlords must follow when screening tenants.

What is Rental Application Fraud?

Application fraud (and lease fraud) is the intentional, sometimes systematic misrepresentation of important information on the rental application and in related documents and declarations.

Given digital tools such as photo editing software and document editing packages which can scan and then reproduce a fake version of any document, misrepresentation is easier than it seems.

In the tenant screening post, we outlined some of the items to cover as you assess the background and intent of the applicant below. You’ll be looking at rent payment history, any past evictions, property damage and reported information from former landlords, lease violations, credit history, along with criminal records.

Bad tenants can use the property for purposes other than a living space for them (drug manufacturing, drug sales, hideouts for criminals/terrorists).

Rental Scam Fraud

The FTC warns of 2 common rental scams:

Hijacked Ads

The scammer tries to hijack a real rental or real estate listing by changing the email address or other contact information, and placing the modified listing ad on another website. The altered ad could use the name of the real landlord listing ad.  That ad may not even exist or is expired.

Phantom Rentals

Creating and advertising rental listings for places that aren’t for rent or don’t exist, promise a too good to be true offer or amenity, even non-existing amenity to dupe the hopeful applicant.

Scams not only target unwitting landlords but may involve genuine rental applicants too. USA.gov highlights some common scams they’ve spotted along with some tips on how to protect yourself from scams involving target renters.

It may be advantageous to include anti-scam comments in your website where visiting fraudsters can see it. This may be enough to deter them and let them choose another landlord to perpetrate their scheme. Every vacancy listing, tenant sublet, or renter in default provides an opportunity for a rental apartment scam to happen.

Illegal subletting and short term rental scams are common now. For instance, the renter you leased to suddenly rents out the unit to an unsavory or non paying tenant. They may have even took 6 months rent payment in advance from the duped applicant renter, and that person may now sue you for the loss and damage the unit in anger.

Source

Streamline Your Application Process By Hiring A Property Manager

Want to save the hassle of rental application fraud while streamlining the management of your rental property? If so, it’s time to hire a property manager.

Hiring a property manager can offer numerous benefits to property owners, especially those who own multiple properties or have other commitments. Here are some common reasons to consider hiring a property manager:

1. Time Savings:
   • Property managers handle day-to-day tasks such as property maintenance, rent collection, and tenant communication, allowing property owners to save time and focus on other priorities.
2. Tenant Screening:
   • Property managers are experienced in screening tenants, conducting background checks, and verifying rental histories, which can help in selecting reliable and responsible tenants.
3. Rent Collection:
   • Property managers handle rent collection, ensuring that payments are received on time. They can also enforce lease policies regarding late payments.
4. Property Maintenance:
   • Property managers oversee maintenance and repairs, coordinating with contractors and handling emergencies. This ensures that the property is well-maintained and in good condition.
5. Legal Compliance:
   • Property managers are knowledgeable about landlord-tenant laws and regulations. They can help ensure that property owners comply with local, state, and federal laws.
6. Marketing and Advertising:
   • Property managers can effectively market and advertise rental properties, attracting a larger pool of potential tenants and reducing vacancy periods.
7. Reduced Vacancy Rates:
   • Through efficient marketing, tenant retention strategies, and quick turnover processes, property managers can help minimize vacancy rates and maximize rental income.
8. Tenant Relations:
   • Property managers act as a point of contact for tenants, addressing concerns and handling communication. This can contribute to positive tenant relations and reduce owner involvement in day-to-day issues.
9. Knowledge of the Local Market:
   • Property managers have a good understanding of the local real estate market. They can provide advice on setting competitive rental rates and adapting to market changes.
10. Emergency Response:
    • Property managers are equipped to handle emergencies and urgent situations, ensuring that issues like water leaks or electrical problems are addressed promptly.
11. Lease Enforcement:
    • Property managers enforce lease agreements, handling lease violations, and taking appropriate action when necessary. This includes eviction proceedings if tenants fail to comply with lease terms.
12. Financial Management:
    • Property managers often handle financial aspects, including budgeting, accounting, and providing regular financial reports to property owners.
13. Experience and Expertise:
    • Property managers bring a wealth of experience and expertise in property management, helping property owners navigate complex issues and make informed decisions.
14. Peace of Mind:
    • Property owners can enjoy peace of mind knowing that a professional is managing their property, handling day-to-day operations, and ensuring compliance with relevant laws and regulations.
15. Cost Efficiency:
    • While property management services come with a cost, many property owners find that the time and resources saved, along with the potential for increased rental income, make hiring a property manager cost-effective in the long run.

To learn more about the property management services that we can offer you, contact us today by clicking here or calling (503) 447-7788.

Are you planning on investing in your first Portland Oregon Rental Property? If so, one of the most important things to do before renting the property is to make sure that it has the right safety equipment which ensures that your tenant stays safe while living there.

In this article we will share with you the top safety equipment that you should install in your PDX rental property.

Safety Equipment For Your Rental Property 

The safety equipment required in a rental property can vary depending on local regulations and building codes. However, there are some common safety features and equipment that landlords typically provide to ensure the well-being of tenants. Keep in mind that these may not be exhaustive, and you should always check local regulations for specific requirements. Here are some general safety equipment considerations:

1. Smoke Alarms: Most jurisdictions require smoke alarms to be installed in various locations throughout the property, including bedrooms and common areas. It’s essential to regularly test and maintain these alarms.
2. Carbon Monoxide Detectors: In areas where there is a risk of carbon monoxide exposure, detectors are often required. They are typically installed near bedrooms or in areas where fuel-burning appliances are present.
3. Fire Extinguishers: Providing fire extinguishers in easily accessible locations can be a safety requirement. Regular maintenance and checking of expiration dates are crucial.
4. Emergency Exit Routes: Ensuring that there are clear and unobstructed emergency exit routes is essential. Windows should be easily operable, and doors should not be blocked.
5. Fire Safety Equipment: Depending on local regulations, landlords may need to provide additional fire safety equipment such as fire-resistant doors, fire-resistant materials, or sprinkler systems.
6. First Aid Kit: While not always a legal requirement, having a basic first aid kit in the property can be a good practice to address minor injuries or emergencies.
7. Security Measures: Depending on the area, security measures like deadbolt locks, peepholes, or security systems may be recommended for the safety of the tenants.
8. Window Guards: In some locations, especially where there are young children, window guards may be required to prevent falls.
9. Railings and Handrails: Stairways and balconies should have sturdy railings and handrails to prevent accidents and injuries.
10. Water Heater Straps: Strapping the water heater to the wall may be required in earthquake-prone areas to prevent it from tipping over during seismic activity.

It’s important for landlords to stay informed about local safety regulations and codes. They should also conduct regular inspections and maintenance to ensure that all safety equipment is in good working condition. Additionally, clear communication with tenants about safety procedures and emergency contacts can contribute to a safer living environment.

Safety Equipment And Smoke Alarms

Smoke alarms are by far the most important equipment that landlords must install in their rental properties because, smoke alarms save lives and ensure that tenants have enough warning to get out of a rental property should fire occur.

ORS 479.270 states the following:

Don’t Forget To Check Your Appliances Annually

Contact 4 Rent Local

At 4 Rent Local, we specialize in local property management for the PDX area.

Our team saves owners valuable time every year, money and the hassle of managing their rental properties themselves.

To learn more about the services that we can offer you, contact us today by calling (503) 447-7788 or click here to connect with us online.

Are you planning on investing in rental properties in Portland Oregon? If so, you’re going to need to find a great contractor that you can call when the property is in need of repairs.

If you’ve never hired a contractor before, this article will offer you several tips that you can use for finding a contractor you can trust that will offer tremendous value and ROI.

1. Be proactive, not reactive

Have you ever heard the old phrase, “The best time to look for a job is when you don’t need one”? The same principle applies to contractors. If you’re only looking for one when you need one, you’re setting yourself up for problems from the start. Instead, be proactive. Have a continually evolving list of people you could call for various problems and continue to add people to the list even when you don’t need someone at the moment.

2. Understand price vs. cost

These two terms may sound the same, but there’s a key difference when it comes to hiring anyone or making investments in your business.

“Price” is the monetary amount paid when you purchase something, but “cost” is the long-term monetary amount paid over the life of a product or service. For example, the price of dishwasher A might be $400, and the price of dishwasher B might be $500. The first option has a lower price, but if it requires an extra $20 per month in energy bills that the second option doesn’t have, it’s not really saving you anything in the long run.

You see, buying for cost rather than price is a subtle difference, but it can have a tremendous effect on your business. This principle also applies to hiring a contractor for your property.

3. Ask for referrals

One of the best ways to find good contractors is by asking others who they have used for similar work. It’s a simple yet effective method that can help you out as well. But get referrals from a number of different people you trust. When people know a contractor has done great work in the past, it’s likely they’ll do so in the future.

4. Google them

References are great, but doing your own research is also key to picking a contractor. It’s like a referral… but from tons of people on the internet. Here, you can also check if they have been a part of any shady activity or if there are any active disputes. Check out their profile on the Better Business Bureau and see if they’re in good standing. If they’re private that could be a bad sign.

Putting their name, their company’s name, your city, and terms like “scam,” “rip off,” “complaints,” or “court” into a search can often unearth any red flags about the person. For example, if you wanted to find out more about First Rate Construction Company in Metropolis, you would search things like:

• First Rate Construction Metropolis
• First Rate Construction scam
• First Rate Construction sue

5. Check references

Always check references. Despite what you might think, even references supplied by the contractor will generally be honest. Also make sure to ask for examples of the kind of work you plan on getting done.

It’s a good idea to ask for multiple referrals and from the most recent jobs they’ve completed. Call the reference and ask if the contractor showed up on time, if they completed the work, if they tried to change the dollar amount mid-work or after it was done, and if they would use them again.

Even ask professionals you like who have previously worked on your home. For the most part, good subcontractors tend to work with other good subcontractors. Ask your electrician if they know any good plumbers. Ask the Portland plumbers if they know any good carpenters and so on.

You can also look at review sites like Angie’s List (now Angi) or Yelp for reviews.

6. Ask questions

References and recommendations are great, but they aren’t specified to you. Asking the right questions that are tailored to your needs is a great way to find the right contractor for you. This pre-screening process will help you weed out ones you don’t like early on. Here are some examples you can use:

• How long have you been in this line of work?
• What skill would you say you are the best at? Do you like bigger remodeling jobs or small repairs more?
• What job tasks do you hate doing?
• In what cities do you typically work?
• How many employees work for you? (Or work in your company if you are not talking to the boss.)
• How busy are you?
• Do you pull permits, or would I need to?
• If I were to hire you, when could you start knocking out tasks?
• What payment schedule do you prefer? When will you want the final payment?

Then, set up a time to meet and show them the project if you have one. Set an appointment so you can see if they are on time, look professional, and see how they act in general. Do they seem knowledge and capable for the job? If everything feels okay after this first meeting, you’ll be able to make an informed decision whether to hire them or not.

7. The 6 a.m. Home Depot trick

Go to Home Depot at 6 a.m. and meet the contractors that are there. These are the contractors who get up early and get their supplies before heading over to the job site. This is a strong indication that they know what they are doing and are not going to take advantage of you. Although this is no silver bullet, it can give you an idea of contractors who take their work seriously and get started early in the day.

This will also be a good time for you to ask the store’s employees who they would recommend. They have a unique insight into the quality of materials that the contractors use, as well as the experience level and management style of those who buy from them.

8. Have contractors compete

Sometimes the best answer is not finding one contractor, but several who can compete for your business. Having them compete will help breed competitiveness that will drive price and quality. If you let them know you have other pros on hand, they will be sure to give you their best prices, quality, and attention.

Some investors or homeowners call three to five contractors to do an Oregon bid and tell them all the same time, both to minimize the hassle of meeting multiple contractors and encouraging lean bids. Keep their names and contact information on file in a place you’ll remember so you always have it when you need it.

Source – Bigger Pockets

Contact 4 Rent Local 

At 4 Rent Local, we specialize in providing professional property management services for Portland, Oregon and the surrounding area.

Our team saves owners the time and hassle of managing properties themselves. This includes finding a great contractor and managing investment properties.

To learn more about the services that we can offer you, contact us today by calling (503) 447-7788 or click here to connect with us online.

Are you planning on growing your portfolio of rental properties in 2024? If so, you’re not alone! Most investors are thinking about growing their portfolio of investment properties in the coming year.

In this article, we will offer you several tips for finding great rental properties to add to your portfolio rental properties in Portland, or elsewhere nationwide.

Tip For Growing Your Portfolio Of Rental Properties In 2024

Growing your portfolio of rental properties can be a rewarding but challenging endeavor. Here are some tips to help you navigate and expand your rental property portfolio in 2024:

1. Market Research:
   • Stay informed about local real estate trends and market conditions.
   • Identify areas with potential for growth and high rental demand.
   • Consider emerging neighborhoods or areas undergoing revitalization.
2. Financial Planning:
   • Review your current financial situation and set clear investment goals.
   • Explore financing options, interest rates, and mortgage terms.
   • Consider working with a financial advisor to optimize your investment strategy.
3. Network and Partnerships:
   • Build strong relationships with real estate professionals, such as agents, property managers, and contractors.
   • Attend networking events and real estate conferences to connect with potential partners.
   • Consider forming partnerships with other investors to pool resources and share risks.
4. Diversification:
   • Diversify your portfolio by considering different types of properties (e.g., single-family homes, multi-family units, commercial properties).
   • Explore different geographic areas to spread risk and take advantage of varied market conditions.
5. Technology and Automation:
   • Leverage technology for property management, tenant screening, and financial tracking.
   • Explore proptech solutions to streamline processes and enhance efficiency.
   • Use online platforms to market your properties and attract potential tenants.
6. Due Diligence:
   • Conduct thorough due diligence before acquiring any property.
   • Assess the property’s condition, potential for appreciation, and rental income.
   • Research local regulations and zoning laws to ensure compliance.
7. Tenant Retention:
   • Focus on providing quality housing and responsive property management to retain good tenants.
   • Implement tenant retention strategies, such as regular maintenance and communication.
   • Consider offering incentives for lease renewals.
8. Adaptability:
   • Stay adaptable to changing market conditions and economic factors.
   • Be open to adjusting your strategy based on new information and trends.
9. Risk Management:
   • Mitigate risks by having a financial cushion for unexpected expenses.
   • Consider insurance options to protect your properties and investments.
10. Continuous Learning:
    • Stay informed about changes in real estate laws, tax regulations, and market dynamics.
    • Continue learning about new investment strategies and opportunities.

Remember that Oregon real estate investment involves risks, and it’s crucial to make informed decisions based on thorough research and careful consideration. Consulting with professionals in the field can also provide valuable insights tailored to your specific situation.

Property Management – The Key To Earning Passive Income From Rental Properties

Property management plays a crucial role in earning passive income from rental properties. Here are several reasons why effective property management is key:

1. Tenant Placement and Screening:
   • Property managers can attract and screen tenants effectively, helping to secure reliable and responsible renters.
   • Proper tenant selection can minimize issues such as late payments, property damage, and eviction proceedings.
2. Rent Collection:
   • Property managers handle rent collection, ensuring that you receive payments on time.
   • They can implement consistent and firm rent collection policies, reducing the risk of income disruptions.
3. Property Maintenance:
   • Regular maintenance and prompt handling of repairs are essential for preserving property value and tenant satisfaction.
   • Property managers coordinate and oversee maintenance tasks, saving you time and ensuring that the property remains in good condition.
4. Legal Compliance:
   • Property managers are well-versed in local and state landlord-tenant laws.
   • They can help ensure your property is in compliance with regulations, reducing the risk of legal issues.
5. Emergency Response:
   • Property managers are available to handle emergencies, providing a quick response to issues such as plumbing leaks, electrical problems, or other urgent matters.
   • This ensures the safety of tenants and protects the property from extensive damage.
6. Reduced Vacancy Rates:
   • Property managers work to minimize vacancy periods by efficiently marketing and advertising the property.
   • They can implement strategies to attract and retain quality tenants, reducing income gaps.
7. Conflict Resolution:
   • Property managers act as intermediaries in conflicts between landlords and tenants.
   • Handling disputes professionally can maintain positive tenant relationships and prevent escalation.
8. Time and Stress Savings:
   • Property management allows you to enjoy a truly passive income stream, as professionals handle day-to-day tasks.
   • This frees up your time for other investments, work, or personal pursuits, reducing stress associated with property ownership.
9. Market Knowledge:
   • Property managers are familiar with local real estate market conditions.
   • They can adjust rental prices based on market trends, ensuring that you maximize your rental income.
10. Financial Management:
    • Property managers can handle the financial aspects of property ownership, including budgeting, accounting, and reporting.
    • This provides you with a clear overview of your property’s financial performance.
11. Scale and Efficiency:
    • As your portfolio grows, property managers can efficiently handle the increased workload.
    • They have the systems and processes in place to manage multiple properties simultaneously.

In summary, effective property management is a cornerstone of earning passive income from rental properties. By delegating tasks to professionals, you can enjoy the financial benefits of real estate investment without being burdened by the day-to-day responsibilities.

At 4 Rent Local, we specialize in local property management for Portland and the surrounding area.

To learn more about the services that we can offer you, contact us today by calling (503) 447-7788 or click here to connect with us online.