A Tenant That Just Won't Leave the Property

As a Property Manager did you ever have a tenant that takes you all the way through the judicial system? This may be due to the refusal to pay their rent or are they are squatters. I have had this
experience twice in my career. I don't think it is luck, it is your tenant trusting your word, while trusting you. I believe this is due to the initial tenant evaluation, plus my ability to work with a tenant when they are having a rough month. It happens when a tenant stops communicating or the communication is untruthful. This is how this case began. The tenant was late, making broken promises. Was given a five day notice. It appeared that she had removed her belongings, locked the premises, keeping the keys. There is a little known law, that your lease continues until you have returned your keys, to the designated place that you made payment to.

Now it becomes a legal matter. As long as she has possession of the keys, she has control over the property. The property owner decided to take her to court, for the past due amount. She was given a date to appear at the court. Since the date of the court appearance, is after the first of the next month of the lease. While continuing to hold the the keys, a financial amendment will be added to the lawsuit. An additional months rent will be added to the amount of the lawsuit.

If she does or does not appear in court, the lease speaks for itself. The judge will issue an order of removal of tenant. The Property Manager along with the court representative ( in this state is the Sheriff's Dept), will meet at the location. If the tenant refuses entry into the premises the Sheriff will arrest her, for trespassing. The tenant will be advised she has 5 minutes to remove any belongings she can, the remainder will be placed in storage at her expense. While this is happening the locks and the overhead door opener combination are being changed

The next step is take a video or still pictures of the damage. Clean out any belongings, place them in a storage locker. This is a billable expense. Get two contractor bids for repair of damage. You need to advertise this premises for rent, in order to recoup this as a loss.

You go back to court again, to recoup your losses. You have lost rent, repair damage, storage of belongings, lock changes, lawyers fees, new court costs. Make three copies one for you, one for the judge and one for the defendant, the tenant. You don't necessarily need a lawyer in small claims court. Each state is different. You do need to follow your states Landlord Tenant Act, federal and state laws, regarding the eviction process. If you represent the owner of the property in small claims court, you should have a notarized statement that allows you to do that. This is separate from the management agreement. This article does not replace attorneys advice, it is my accounting of one experience I had.

FHA Bill Approved by Senate Vote 19-2

The changes to the bill mainly are that the government will have control of Fannie Mar and Freddie Macs profits, and will earmark about $500 million per year from their profits with a diversion of funds to low income rental housing. Areas hit most, like New Orleans from hurricane Katrina, will receive the first benefits. Many people speculate that Fannie and Freddie will not lobby against this since, they got busted for accounting fraud 1 1/2 years ago, and basically are doing whatever the government says at this point.

Since the foreclosure crisis started, there have been over 1.5 million foreclosures nationwide. FHA has been able to help 200,000 borrowers so far, however out that number, only 3,000 have been delinquent on their mortgage. FHA needs to dig deeper, and loosen their guidelines, so these people can save their homes, and not go into foreclosure. This bill should clear the Senate by Memorial Day, so hopefully President Bush will sign off on this in the next few weeks. With a 28% approval rate, I think he should do something good for once.

Republicans were adamant against the bill because of the cost to taxpayers, however when the democrats stated that they would take the money from Fannie Mae to fund FHA expansion plans, the White House is changing it's tune, in a highly heated election year.

In closing, whatever happens, I expect more and more strict regulation on the mortgage broker industry, with the government slowly getting more and more involved. I would not be surprised if my industry shrinks another 30% until we find a bottom on this market.

Equipment Financing For Business Accounting and Fiscal Solvency

Every business, corporation or partnered enterprise has its own financial situation, and for many, well-stocked coffers allow for outfitting a business with cash purchases, buying equipment outright, where acquiring the gear needed to operate is straightforward.

What if the cash isn't on-hand? Businesses frequently turn to banks for business loans to get needed equipment. Banks do routinely dole out loans of all sizes for getting a business client operational.

One problem, though, is in the process. Many business owners argue that banks are unresponsive to their time frames, not sympathetic to financial realities, or unwilling to share even minor "risks" or go an extra step forward with a client. Business loan petitioners find themselves tied to a bank's own stubborn stance on payout terms.

That's why other operators in need turn to other private lenders to finance purchasing of equipment.

Financing Equipment in Construction and "Road-Side" Industries

In the world of equipment finance, everyone, from contractors to municipalities, look to their bottom line for getting the necessary tools to do their jobs. For the construction and physical infrastructure industries, a vehicle or fuel-operated power tool is a serious purchase, and buying one can turn into a liability quick.

When business owners find a private partner they can cooperate with to get equipment financing, they free themselves up to work up budgets that they can be confident in, with terms extended in their favor from a lender. This can be an effective way to get operational and stay that way without breaking the bank in any one year.

Equipment Finance for Office Buys

Office managers and owners also run into problems with purchasing and cash flow. Often, in these industries, it's the workstations and attending technology that restrict growth when costs are piled on top of 'standard overhead' for operating facilities (rent, utilities, etc.) Office clients can also take advantage of private lending deals to optimize growth in times where they encounter a cash crunch.

Diversified equipment financing companies understand the need to get hardware onto desks in a jiffy. A skilled company can partner with a client to do critical cost estimates to make sure the costs are manageable and reasonable for intended growth. This provides support for a client who might be tempted to 'over-reach' with off-the-cuff estimates and over-enthusiastic purchasing.

Quality Equipment Financing

What do clients look for in equipment leasing firms?

One aspect of getting good care is in quick turnarounds: skilled staff can do the necessary estimates and the paperwork without wasting time, time that a client dearly needs.

The bottom line is that a client needs a leasing firm to be a partner. The leasing company is not there to "bail out" clients, but they shouldn't be an inflexible liability, either. The best equipment leasing company is one that understands this line and is ready to walk with a client just the right distance.

How to Interview A Property Management Company

Property Management companies come in all sizes and shapes. It seems that many of them are a small business or family business. If you have a large portfolio of properties or a large multi-family income property you can attract a variety of companies because many are paid as a percentage of rental income. If you have a single family home or a smaller rental property its just not that attractive to many companies because they won't see much income from it and you may not get the attention you deserve. You may find better service from a smaller property management firm.

How Do You Find Them?

Check with the standard sources such as referrals. You can also ask:

* Local Real Estate Agencies - They may have a local property manager they often recommend to or perhaps one of the agents also manages property.

* Check with your local Property Management Association or apartment association for a list of local firms

* In rural areas the State Apartment Association may be a good resource for a firm near you.

What Do You Look for In a Management Firm?

* Valid Brokers License: In may states a brokers license is required to operate a property management company. You can check to with the local dept of real estate to validate it and see if it has ever been revoked or suspended.

* Management Fees: Property Management fees are generally a percentage of rental income. Fees can vary from company to company and you should shop around. Expect fees of 5% or more as a percentage of rental income. If you own a single family home or a duplex that has a low rental income number, you may get quoted a flat rate.

* Maintenance Staff: Does the firm have its own maintenance staff? Are they 24 x 7 for emergencies? Will they provide you with itemized statements and for larger jobs three independent bids? Does the company charge a fee on top off the management fee for major upgrades?

* Working Relationship: Are they friendly and is the staff easy to reach at during normal business hours? Is the office clean and uncluttered? Do they respond in a timely fashion and can they provide referrals or testimonials for you to contact. In short, do you want to work with them?

* Reporting: All property Management firms should have software that will provide you with clear and professional monthly statements. Accounting: When will the manager mail your check to you? Can you use direct deposit? State laws usually dictate accounting rules for managers its good to have that information at hand. On Line Statements: Many firms will have on line monthly itemized statements available to owners. This convenience will increase transparency and save you time. EFT: Does the management firm allow tenants to pay online. This would allow bounced checks to be discovered sooner and that increases your cash flow. 1099: Will the management company provide you with an IRS-1009 and a summary profit and loss statement for tax purposes?

* Reserves: Most companies will require you leave some funds on deposit for small needs your property may require. This way they don't have to call you each time they need to send someone to fix a small item. You should ask how much reserves the company requires. Also, set a limit on how much a company may spend on your property for maintenance or repairs without contacting you for approval. Is $500.00 appropriate or $750.00, discuss your comfort level before you sign

* Vacancies: Do they charge a rental fee? Often companies will charge a percentage of the months rent for the service of renting a unit. The screening should process include an application, a credit report, a conversation with the prior landlord and income verification using the 1040 for self employed or pay stubs. The service should include reporting a qualified tenant to you and a proper lease. We provide a lot of info on tenant screening information. Be familiar with the process so that you can determine for your self that a good job is being done. You only want good tenants, evictions are expensive. Viewings: Some companies will be there for a showing to groups of people interested in the unit. Other companies allow prospective tenants use of the keys with a small deposit. Find out how viewers can see your property and whether you are comfortable with the procedures. If the management company staff shows the unit ask how often they will show and especially on weekends.

* Advertising: How will they advertise the vacancy? Be clear on all costs involved and have limits or a system of approval. Do they use the web? If so, can they create virtual tours or use photographs. These skills should translate into quicker rentals and better cash flow for you.

* Evictions: This should require a lawyer and the proper legal procedure for your area. How do they charge for this and will the lawyers fees be invoiced so that you can see the true cost.

* Termination of your Agreement: We like contracts that can terminate in thirty days with a written notice and without penalties. An exit plan that is agreeable to you is critical.

Howard Bell for yourpropertypath.com

Print Brokers - They Do All The Dirty Work So You Don't Have To

Printing Brokers don't have any commercial printing equipment whatsoever, so why are they better??

Consider this!!

Do you think anybody gives a toss about, or even thinks about, where the latest magazine they're reading was printed, what type of press it was printed one or whether the gloss laminate on the cover was heat bonded or cold pressed (yawn)?

Printing Brokers don't have any commercial printing equipment whatsoever, so how are they cheaper??

I don't think so Tim.

Yet the vast majority of printing companies still sell the sausage and not the sizzle.

They try to impress their customers by talking sexy (sexy??) industry jargon about how they've just "commissioned" their new whiz bang 5 over 5 colours + aqueous varnishing printing press that does a great flat white & mows your lawn every other Saturday.

You can hear the cracking as the customer's eyes glaze over!!

I guess this stems from way back when business people visited their print shop to be greeted by the boss or the "foreman" wearing King Gees splattered with ink or a lovely dark blue apron over Khaki shorts.

Nice!

I know this sort of stuff because that's what my boss used to wear when I was doing my apprenticeship. Oh, and I used to wear the outfit as well.

Call me blind- but no matter how hard I try I just cannot envisage either character creaming orders after knocking on your door & describing in detail how their 2 colour press has just been serviced and is now running much better so they need more work for it - who cares?

Here's How a Print Broker Works

Print Brokers work along very similar lines to an insurance broker or finance broker.

What business owner or manager these days doesn't use the services of one or both of these providers.

And the majority of home mortgages are now written by mortgage originators (finance brokers)

And the reason is... they provide a superior service, usually at a more competitve price

When they receive a quote or an order from a customer, they negotiate & haggle with their suppliers to get the best price. If they don't get the best price first time, they return with a large stick with Customer written on it and belt them around the ears until they get the absolute lowest price possible.

All the while, each supplier knows that they're competing against other suppliers for the work.

This means that the Print Broker's customers get rock bottom prices and pay less than ever for their company printing.

The Early Days

Initially, many brokers were extremely cautious about letting their customers know about what they actually did.

They would, well, you know, sort of indicate that they were printers, being fearful that if the customers realised that they did not actually print anything they would be on the wrong end of - the stare of death.

You know the one.

However over the years as their confidence grew they started to talk freely, although cautiously at first, about the service that they provided and I soon started to realise that they had absolutely nothing to be afraid of.

Most consumers could see the benefits of dealing with a print broker.

They understood how the benefits could be of value their organisation.

Most brokers now make it known to everybody, at every opportunity, that they are most definitely NOT printers and that's the very reason they should use a print broker for all their printing.

To me, it's a no brainer.

Printing Companies are PRODUCTION Driven.

Many have huge, expensive, hungry presses (with huge lease payments) that they absolutely must keep running at all cost so their focus is well & truly on production.

And so it should be.

Keeping up with "bleeding edge" technology so "my press runs faster than yours" is an extremely expensive game to play. But that's what they need to do, to remain competitive.

I've seen it many times.

Printer A has always got a ton of work on the schedule because he has the latest technology and is the favourite with advertising agencies and the "leather lounge set"

Then, printer B catches on and upgrades his equipment (at great cost, a large commercial press can cost upwards of $1 million) and over a period of time, printer A's scheduling board starts to look a little lonely.

So the expensive game continues...

A print broker simply does not have these concerns. They don't waste time on production related problems or issues so they have more time to focus on you, the customer.

Print Brokers are SERVICE Driven.

So.. now you know.

If you're a busy organisation with little time for the menial task of printing, a Print Broker may be just what you need.

Perhaps you should give one a try.

Why Ratio Analysis Plays An Important Role In Business Strategic Planning

Ratio Analysis is the basic tool of financial analysis and Financial analysis itself is an important part of any business planning process as SWOT (Strengths, Weaknesses, Opportunities and Threats), being the basic tool of the strategic analysis plays a vital role in a business planning process and no SWOT analysis would be complete without an analysis of companies financial position. In this way Ratio Analysis is very important part of whole business strategic planning. There are mainly six types of ratios :

1) Return On Capital Employed: This ratio helps to examine the figure for profit earned in relation to the money invested (Capital Employed) in the business. It is generally acceptable to use either Net Profit Before Tax or Net Profit After Tax.

(a) ROCE= (Net Profit / Capital Employed)*100

2)Profit Ratio: This ratio is helpful to assess the adequacy of profit earned and their trends in comparision with the past.

(a) Gross Profit Margin= (Gross Profit/ Sales)*100

(b) Net Profit Margin= (Net Profit/ Sales) *100

Eeaning Per Share = Profit After Tax/ Number of Equity Shares

3) Solvency Ratio: In order to maintain the status of going concern a business must be able to meet its debts for which it should have enough working capital. The working capital ratio helps to examine secuted financial position of a business.

(a) Working Capital Ratio= Current Asset/ Current Liability

(b) Liquidity Ratio= Liquid Asset/ Liquid Liability

4)Asset Turn Over Ratio: Figure arrived from this calculation helps management to ensure efficient utilization of resources applied.

(a) Rate of Stock Turnover (in number)= Cost of Goods Sold/ Average Stock Level

(b) Stock Turnover (in days)= (Average Stock/ Cost fo Goods Sold)*365

(c) Rate of Collection of debtors (in days)= (Average Trade Debtors/ Credit Sales)*365

(d) Rate of Payment to creditors (in days)= (Average Trade Creditors/ Credit Purchases)*365

(e) Cash operating Cycle (in days)= Stock Holding Period + Debt Collection Period- Creditors Payment Periods

(f) Total Asset Turnover= Sales/ Aerage Total Assets

5) Gearing or Levearage Ratio: This ratio defines capital structure of gearing.

(a) Debt Equty Ratio= Total Financial Debt/ Shareholders Equity

6)Cash Flow Statement Ratio: This is a ratio of cash inflow and outflow. It helps in examining sources and uses of cash and their net effect. This ratio is calculated in percentage and the percentages can be used to show the relative balance between the inflows and outflows of cash, with the choice of which figure to use as a lease (i.e. which one equals 100%) depending on the purpose of the analysis.

(a) Cash Flow Ratio= (Cash inflow/ cash outflow )* 100 or ( Cash Outflow / Cash Inflow) *100.

Limitations of Ratio Analysis:

1) It helps in finding out the changes in financial results but they don't explain the reason of such changes.

2) Deterioration is accounting ratios does not always indicate poor management e.g. a decline in stock turnover ratio may seem unhealthy sign for a business but a further investigation may reveal that reason is accumulation of scarce raw material that enable a plant to continue working when competitors are forced to suspend production.

3) Too much significance to individual ratio cannot result in good decision. eg. Sometimes higher ROCE may be accompanied with low liquidity.

Increase your profits with a Point of Sale (POS) System

If you operate a chain of restaurants, a mom and pop shop, or medium-sized merchants, you are in business to make money. And one of the most important in the profit and loss account is to keep your ability to track information ... You need to know what products you need to know to make money, something to be reorganized, that are customers, and so on. It's the dawn of Sale (POS) systems play an important role.

In the not too distant past, retailersused mechanical cash registers to the sales on a strip of paper record that was entered manually into the company records. Later, the electronic versions of cash registers were introduced, the entrepreneur can, because the data for each transaction (such as management in a position was responsible for all sales and redemptions of the individual funds track). Today, funds have evolved into the modern computer-based systems, point of sale, show moreInformation than previously thought impossible.

Some of the ways that can help a POS, you increase your profit margin analysis of product, tracking sales, increasing the accuracy of the price, and keep in touch with your customers.

As an entrepreneur you know how important it is to follow closely the margin of each product, because you are at selling things that you want to concentrate the greatest profit. A system of point of sale can help you quickly identifyYour money more responsibly and to decide on the quantity of each item you want to camp. (If you have little space, it makes no sense to fill with items of low profits).

A POS allows you to know, practically touch of a button, how much money you have (in your body and what makes sense!) The nature and quantity of each product sold that day and how many items still on the shelf. You can also up to automatically warn you whenachieve a new perspective on a topic.

With the introduction of barcodes and barcode scanners, retailers now have a greater precision in the prices of their products than before. If you raise the price of a "widget", you simply change your air intake system and all widgets now reflect the new price. In addition, did not imagine the cashier or clerk, that all costs of the product (which might make you lose money) ... that only research and correctThe price will be applied automatically.

Marketing 101 tells us that money that an existing customer is much more than an entrepreneur, it is likely to buy from you again and again in the future, the so-called "residual value ("). For this reason you should sell your existing customers in your marketing plan. A system of point of sale, you can track customer names, addresses and purchase history ... Imagine how you might use this information to generatemore sales!

Hopefully it is now clear that a point of sale system, you keep track of information that is critical to the success that can. This includes the analysis of profit margins, track sales per day, increasing the accuracy of the price, and keep in touch with your customers. Armed with this information, you can make informed decisions and take action, which will surely increase your profits.