Prevent Loss of Control

As your business grows larger, it becomes harder to know the physical interior/exterior conditions of properties. As your knowledge of the units decreases, your problems most certainly will increase.

In order to prevent a loss of control over properties, you should consider a planned maintenance/condition survey. I say "survey" as opposed to "inspection" because there is a difference. An inspection is an examination in an official capacity ( i.e., licensed building contractor or a Certified Safety Inspector) versus a survey which is an examination with reference to condition.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

Maintenance Surveys

Maintenance surveys are the second area of developed maintenance procedures. Maintenance surveys help stop the surprises. How many times have you (a) had the tenant notify you that all the ceramic tile has "suddenly" fallen into the tub or (b) found the unit a disaster at the end of the lease? These and other horror stories may occur infrequently when the number of units you manage is small and you have sufficient  time to occasionally check the units.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

Ready To Go

If the unit needs minor preparation, then have all necessary maintenance people ready to go. Sometimes the current tenant will move out a few days early, thus giving you much needed time. The cleaning service, locksmith and other vendors usually have a very short time frame in which to complete their work. Be certain to plan for all necessary work as far in advance as necessary.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

Properly Prepared

Sometimes it will be necessary to allow the unit to go vacant after the tenant moves out and then make necessary repairs. Let your client know well in advance that a vacancy is going to occur so that the unit may be properly prepared.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

Make Readies

The "make readies" require some advance analysis and planning. Do not assume an occupied unit will be ready for a new tenant with only "minor" repairs. If you are utilizing maintenance surveys during the off season, you may already know just how poorly a unit will show to prospective tenants. In any case, get into the unit four weeks in advance of lease expiration to determine its condition.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

Property Management Means Property Control - Part 1

As a property management firm grows larger it becomes more difficult to control the multitude of activities dealing with individual properties. Over a period of years, we have developed numerous maintenance procedures, generally falling into the following three areas: (1) make ready,
(2) maintenance surveys and (3) yard checks. In Part 1 we will delve into how to make a property ready and the beginning of why maintenance surveys are important.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

Summing It All Up

To sum it all up, as a residential property manager be prepared when you are asked to have significant repairs done on your client's property. Be certain to get a written bid, obtain the necessary funds from the owner prior to work beginning and be certain all the work is completed before the final payment to the contractor.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Prepayment to Vendor

Another significant question deals with prepayment to the vendor. By paying dollars upfront, the property manager is increasing the risks involved in the transaction. Most often the property manager has a relationship with the vendor, thus prepayment is unnecessary. On a larger job over $5,000 I will pay half of the bill when 75 percent of the work is completed. That provides the vendor with some needed working capital and still protects the property manager's position. If your contractor demands dollars before the work is to start--find another contractor.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Wait For Check to Clear

Here is an important point to remember. Do not undertake the work until the owner has sent you the necessary funds. It is difficult to ask your client for certified funds, as they may view such a request as questioning their honesty. Thus, accepting their personal check is almost a necessity.

Before undertaking any work you should have the check in your hands. The "check is in the mail" is never a safe bet. After receiving the check, protect yourself by waiting long enough for the check to clear. Remember that even though the owner signed the bid, you are here and your client may be thousands of miles away. Your vendor will look to you if payment is not made.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Formal Bids

All formal bids should be in writing. Even with trusted long time vendors, do not use a verbal agreement. With a written bid, the details of the job, the start and completion date, and the terms of payment are all clearly stated. If the property manager is signing the bid, he/she should do so clearly indicating that they are acting as an agent for the owner. A safer procedure is to have the property owner sign the bid. 

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Repairs Up to a Limited Dollar Amount

Most management contracts allow the property manager, without prior owner approval, to make repairs up to a limited dollar amount. The limit ranges from as low as $50 to as high as $400. Over $400 a bid is usually required and owner approval mandated. Multiple bids in the busy Denver market are difficult to obtain. Most property managers have vendors they know will provide competitive prices and reliable work. It is reasonable to deal with a single bidder when the property manager knows the firm and the other potential vendors are an unknown quantity.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

The Check is in the Mail (From the Owner?)

As a residential property manager, you will sooner or later be asked to have significant repairs done on your client's property. There are a number of significant issues that such projects raise. We will look at formal bids, getting necessary funds and completion of such projects over the next few weeks.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Message Loud & Clear!

So the message is loud and clear. DO NOT USE individuals that cannot provide proof of workman's compensation insurance coverage. Should you do so, you are exposing yourself and your client to significant legal liability in case there is an injury. When your client presses you to find less expensive repair people, do not give in to the apparent quick solution of using an uninsured independent contractor.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Potential For Liability

Contrary to what these uninsured independent contractors will tell you, there is NO mechanism for waiver or release of the right of Worker's Compensation Coverage. The potential for liability cannot be effectively avoided even if the independent contractor incorporates and the worker, as an officer, elects to reject coverage.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Property Owner Also A Statutory Employer

In addition, the property owner would also be considered a statutory employer. As a statutory employer, the property manager is required by statute to provide worker's compensation coverage to
to uninsured independent contractors (&8-41-401, C.R.S.). In the event of an accident, even a bona fide independent contractor can seek recovery from the statutory employer and property owner.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Worker's Compensation Coverage

As property managers, we all get calls from individuals seeking to provide one type of service or another for our property repair needs. Most of these folks do not carry workman's compensation and tell you they don't need to do so. They contend they are independent contractors, thus any injury incurred while working on your rental property is not a liability to the property manager or the owner of the property. Allow me to quote part of an attorney's opinion on this subject: "Property managers that manage income-producing real estate for others, by law are a statutory employer for any person proving work on those properties. This is true, even if the worker is a bona fide independent contractor."

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Two Great Sites For Marketing

There are many Internet sites for advertising residential rentals. Some sites promise the world, but deliver much less than that. Two companies that I have found do a great job at a very reasonable price: Rentbits.com and Rentals.com. These two companies provide great access to those seeking a residential property tenant. Both of these sites provide lots of room for your narrative and for pictures. They also have some great tracking tools that help you with the folks who don't leave a phone number.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Require Additional Security Deposit

Given the foreclosure and medical bills is it worth accepting this tenant? Depending on employment and landlord verification, the answer may be yes. It is not unusual for us to require an additional security deposit to offset the "higher" risk involved with this type of tenant. Before automatically turning down the foreclosed, medical bills galore tenant consider the above thoughts. Make a business decision that fits your company model.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Screening Tenants With Medical Bills

Medical bills are a very common problem. When you are ill, with no insurance, your options are limited. Most often the individual waits until it becomes an absolute necessity. This is one reason that emergency rooms across the country are always full. When I run the credit reports, these unpaid bills show up and dramatically impact the FICO score. In many cases the individual continues to make appropriate payments on other debits (credit cards, car loans, etc.). So even though the credit score is low and there are unpaid medical bills, it may be a risk worth taking.


Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). Visit Meer and Company website at www.meerandco.com.

Qualifying Tenants for Residential Units/Conclusion

Contact the current and previous landlords for a reference. Be careful that the "landlord" you reach is not their friend or relative posing as their landlords. When you are talking with these individuals try to get them to verify current rent or the exact address rather than you providing that to them.

Evaluation of the tenant should be based on this criteria discussed. Do not allow your personal likes or dislikes to be your yardstick. Your office policy should define your standards so making the decision becomes a regular routine.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Stability A Good Sign

Longer term employment is a good sign of stability. Getting such information in large companies can be slow. We have found that the immediate supervisor is often willing to confirm the necessary employment verification. The applicant can provide you with his/her pay stub, thus confirming income level. Establish an office policy on how much income is necessary to qualify for renting the property. That level of income varies from one landlord to another.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM).  www.meerandco.com.

Normal Standard of Care

The criminal background check has now become a normal standard of care for a property manager. You will need an office policy on accepting/rejecting those individuals with felony or misdemeanor convictions. You should consult your attorney as to the pros and cons of this issue.


Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single-family homes and properties in Denver. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

How To Qualify Tenants For Residential Units

Some applicants may have foreclosure and/or medical bills. It is necessary to have an office policy about how to handle such issues. We are more concerned with credit card debt than foreclosures and medical bills. Establish what FICO score is necessary to qualify for your rental properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single-family homes and properties in Denver. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Foreclosures Make New Class of Tenants

Our standards of yesterday may end up excluding up to 40 percent of your applicants. In order to keep your property rented you may have to modify your rental qualification standards.

The entire lending situation has created a new class of tenants. Individual tenants recently were homeowners and have now become tenants again. I have made a business decision that a foreclosed individual does not provide as high of risk as in the "old days". So even though this individual has lost ownership of a home, I believe he/she may be a reasonable risk.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Landlords and the Recent Recession

The recent recession has created a different owner/tenant psychology. These changes are outlined below:

Let's start with the owners. Tenant turnover in rental property is to be expected. When a tenant does not renew the rental agreement for another year, the owner will certainly face "make ready" costs along with advertising, a potential vacancy period, change of locks, and possibly higher management fees to find the replacement tenant. None of these things are any different than they have been for all these years, however, now I am seeing owner insistence on doing the "make ready" themselves. Literally flying or driving to Denver and doing the painting and other non-technical repairs with family and friends. They are also out shopping for building items that are on sale.

Peter Meer is the President/Broker of Meer and Company, Inc., 303-322-1550, which manages 150 single-family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

RPM Simply Asks

The Residential Property Manager (RPM) collects the monthly rent, pays bills/management fees and then pays the mortgage. As long as the rent covers all these items, everything is fine. Should there be a shortage, the RPM simply asks the owner to forward the necessary funds.

Peter Meer is President/Broker of Meer Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Making Mortgage Payments - A Serious Business!

As a Residential Property Manager (RPM), you may be asked to make the mortgage payments on behalf of the owner. Seems like a simple request, no problem. Looking more closely, there are a variety of potential hazards.

Peter Meer is President/Broker of Meer Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco

Notarized Letter

The original tenant will also need to provide a notarized letter that they have received their portion of the security deposit. This letter should also release you from any and all obligations connected with the original tenant's deposit. With these letters in hand, you can remove the old tenant's name and replace it with the new tenant. The new tenant initials their inserted name and signs the original lease.

Peter Meer is President/Broker of Meer Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.

What The Vacating Tenant Needs To Do

Making sure this new tenant meets your requirements is important. This procedure will require dealing with the security deposit of your original tenant. The vacating tenant needs to provide a notarized letter indicating their actual departure date from the rental property and their relinquishment of all rights to the property.

Peter Meer is President/Broker of Meer Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CcomRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.

Proper Screening Important

Ask the departing tenant to locate a replacement, subject to your normal credit, criminal, employment and landlord checks. The departing tenant needs to direct this new person to you, thus allowing the proper screening procedure to be followed. If this individual meets your requirements, go for a substitution of tenants.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CcomRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.

Look For Solutions

Most often, a tenant who is about to break the lease will call you to discuss how to handle the "change". At the point of the phone call you need to look for solutions to the problem, rather than threats of legal action and credit reporting. Most often hardball tactics do not work.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

Musical Chairs

All applicants (age 18 or over) for the residential rental property should be required to complete your rental application. The lease I use (there is no standard residential lease in Colorado) prohibits subleasing or assignment. Unfortunately, that prohibition does not stop tenants from playing musical chairs.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com

The Once and Future Tenant

When renting a residential property all of us want to know who, exactly, is going to be occupying it. So how does it happen that different or more tenants end up in the property? MUSICAL TENANTS! How do you stop this from happening?

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com