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At Mynd, we believe in life-long learning and improvement. Whether you’re a new or seasoned investor or a first time rental owner, Mynd offers a variety of complementary resources and tools to help you stay informed and educated.
Sharing educational resources is one of the ways we’re improving the property management and real estate investment industries. So take a look at our videos, blog, articles, market reports and helpful tips. We believe in continuous education and self-improvement, which helps everyone become better investors.
September 22, 2020
When a tenant occupies a room for only a partial term (month, week, day, etc.), the amount a landlord charges is known as “prorated rent.”
Prorated rent is charged only for the number of days the unit is occupied. It’s based on a monthly rate rather than daily since a daily rate tends to be pricier.
Here’s everything you need to know about prorating rent.
If your tenant moves in or out in the middle of the month or sublets to someone else, then it’s practical to use prorated rent. For example, if your tenant moves in on the 15th, which they often do, you can charge them a prorated amount for those days and then set the regular rent due on the first day of their first full month.
Prorating rent isn’t a landlord’s legal responsibility, but it does help establish a good relationship with your tenant. A good relationship is essential. It makes your tenant more likely to re-sign (reducing the likelihood of vacancies), recommend other potential tenants to your properties, be a good tenant, and follow any rules you may have (like your fire prevention tips).
There are four methods to calculate prorated rent.
Before moving on to the actual formulas for calculating rent, here’s a quick high school math lesson about performing the proper order of operations for mathematical equations. You’ll need to know this because the formulas for calculating rent tend to require multiple operations.
The mnemonic device for this is PEMDAS, or “Please Excuse My Dear Aunt Sally.”
This is the most accurate way to prorate rent when dealing with a year-long lease. Here’s the formula.
((Monthly Rent X # Months in a Year) ÷ Number of Days in a Year) X Number of Days the Tenant is Paying For = Prorated Rent
Here’s the formula with a move-in date of September 15th with a rent of $1,500.
( ( $1,500 x 12 ) ÷ 365 ) X 15 = $739.73
This formula is slightly more confusing than the monthly one, so your tenants may require more explaining. The extra amount of money you'd make isn't worth the effort because a confusing formula may make your tenants feel like something fishy's going on. Best to keep things simple.
This formula is based on the number of days per month, given that 365 days per year divided by 12 months is 30.42 average days. Here’s the formula:
((Rent ÷ 30.42) x Number of Days Occupied)
Here’s the formula for when your rent is $1,200 per month, and the tenant is staying for ten days.
($1,200 ÷ 30.42) x 10 = $394.50
This method entails diving the monthly rent by 30, no matter how many days are in the month. In some states, like California, this is the exclusive method used to calculate prorated rent. Here’s the formula.
((Rent ÷ 30) x Number of Days Occupied)
Here’s the formula for when your rent is $1,200 per month, and the tenant is staying for ten days.
($1,200 ÷ 30) x 10 = $400
This is the formula for prorated rent based on the number of days in the month. Here’s the formula:
(Monthly Rent ÷ Number of Days in the Month) X (Number of Days of Rent Being Paid For) = Prorated Rent
Here’s the formula with a move-in date of September 15th with a rent of $1,500.
( $1,500 ÷ 31 ) X 15 = $725.80
In addition to requiring less explanation formula, the monthly formula has the advantage of making your tenant feel like they’re getting their money’s worth since it frames their rent in the short-term rather than the long term.
These are some things to keep in mind when calculating prorated rent. Which of these influences your calculations will impact how many days you divide your rent by in your calculations.
Your prorating policy should be in writing or your lease agreement.
If it’s a leap year, divide your prorated calculation by 366 days if you plan on using the yearly formula.
It’s not your responsibility to prorate rent if your tenant signs a lease for the first of the month but moves in on a later date. Similarly, it’s not your responsibility to prorate rent if your tenant chooses to move out earlier, but their lease runs to the end of the month.
Offer a prorated rent calculator on your website.
Find out if your state requires you to use the flat 30 method for prorating rent.
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Prorating rent is easy to do and an easy way for a landlord to start or maintain a good relationship with their tenant. It makes tenants feel like they’re getting their money’s worth and like the landlord is on their side.
Unless you have to use the flat 30 option, the monthly method of prorating rent is a landlord’s best bet because it’s easiest to explain to the tenant.
And a happy tenant is the best bet for a happy landlord.
September 21, 2020
Thinking about purchasing a rental property in Tacoma, WA? Learn how looking at the rental statistics, the demographics, and having a local property manager as a partner can ensure you are looking at real numbers when deciding if the area fits your investment strategy.
Before investing in an area, you will want to look at the demographics, home prices vs rental prices, forecasted economic growth, and other important statistics to see if it fits with your investment strategy to help you reach your goals. Will the area give you the cash flow or appreciation you are looking for?
Tacoma, WA, one of “America’s Most Livable Cities”, is a port city on the Puget Sound and is known for being one of the most walkable cities in the US. From its beautiful waterfront to its numerous city parks that include the country’s second largest city park (700 acres), the area has seen a 12% population growth since 2010.
Tacoma offers more affordable investment opportunities than the Seattle area which can be expensive. Cash flow opportunities are better in Tacoma because the prices of homes are not as high.
Median home price: $354,019
Home prices have gone up 9% in the past year.
Commuters – Many choose to work in Seattle but live in Tacoma because it is more affordable.
Students - Several universities are in the area including the University of Washington’s Tacoma campus, so there are a lot of student renters.
Military - McChord Air Force Base is South of Tacoma, so there are military families renting in the area as well.
Between the port, universities, military presence, and proximity to Seattle, Tacoma is a great area for investors looking for an area whose economy is being fueled by a diverse mix of industries.
Tacoma is the 7th busiest container-handling port and attracts businesses in multiple industries. It is known for its high-tech industry that includes Intel and Expedia which are headquartered there. Agricultural and forest products are also large contributors to the local economy.
Tacoma has seen steady job growth over the last 10 years and expects 39.9% in future growth. With its strong industry presence and growth record, it is a great place to invest in rental property for less than a home in a Seattle would cost.
If you are considering investing in Tacoma, contact us at Mynd. We can help you determine if this market fits your strategy to reach your goals. If it doesn’t, we have offices in 19 markets and can help you find an area that does.
The rental market is cyclical, so you want to make sure you set rent to match today’s prices. Just because you rented your property for a certain amount 3 years ago doesn’t mean it will rent for that amount today. The price could be higher or lower depending on what the market says is the going rate. To avoid extended vacancy time, you will want to accurately price the property, so you are getting the maximum return while also filling the vacancy quickly.
Steve Rozenberg, Head of Investor Education for Mynd, says he sees this as a good, steady mix of renter/owner occupied homes which makes it a great market to have a rental property. You should always be able to find a renter.
Knowing the trends and statistics for the area is key to your success as an investor. Consider hiring a local Tacoma property manager like Mynd who can help you determine the correct rent rate. Mynd has access to proprietary information so you are getting current, accurate numbers to base your decision on. If you want to know what you can expect to rent your home for, Mynd offers a FREE rental analysis.
They take care of the day to day operations required when you own a rental property such as:
Do you have the time to manage the property? How valuable is your time to you? If you are managing it yourself, do you know that you are doing it correctly and following the laws?
Landlords must comply with Federal, state, and local laws that apply to rental properties. These laws are constantly changing, and as a landlord you are expected to keep up with them. If you must evict a tenant, there may be new laws in place that limit how you can do that. If managing property isn’t your full-time job, you are more likely not up to speed on current laws such as:
There are a lot of laws that have to do with tenant’s rights, and you must be sure you comply. If you aren’t up on the laws, you may find yourself getting in trouble which can cost you $1000s in fines and court costs.
Our Tacoma property managers can help you make smart decisions and ensure your property is following the laws. Mynd has in-house counsel to help ensure your property is complying with the laws. Contact us today at Mynd about property management in Tacoma or finding your next investment property in one of the19 markets we serve.
September 18, 2020
As an investor, you want to know that investing in a rental property in Everett, WA aligns with your strategy and helps you achieve your goals. Identifying the right data and numbers to calculate your return is an important step in making an informed, smart decision. Having a local partner like a property manager makes this process easier.
Are you looking for monthly cash flow? Is the property you are looking at going to give you what you need to at least cover your expenses? Are you only interested in appreciation or debt paydown? Your strategy must be defined before you start looking for a property.
Everette is a coastal city on the shores of Port Gardner Bay and is located 25 miles north of Seattle. It attracts families with its world class schools, over 30 city parks, and numerous outdoor sports, activities, and art experiences.
The median income for the area is about average for the US, but the home prices are significantly higher than average. You might be able to make enough cash flow to cover your expenses, but you are more likely looking at making your money in appreciation.
Many of the homes in the area were built between 1970-2000. Being older properties, they may require some maintenance or updates to attract a quality tenant and meet Property Code.
Boeing’s 747, 767, 777, and 787 Dreamliner airplanes are constructed in the world’s largest building located in Everett, and they offer a popular tour of the facility. Everett’s proximity to Seattle is an advantage because it is going to be fed by the strong industry nearby.
When you buy a property in one of the more popular areas, you are probably going to see more appreciation. With an average age of 33, residents are likely families interested in the quality schools in the area. They are also more likely looking homes with multiple bedrooms for their growing families.
Talk to an Everett, WA property manager about the local market and what trends they are seeing. They can answer questions like:
These are the questions you want answered before purchasing a property, so you have the proper expectations. Contact us at Mynd for more information on the Everett area. They can tell you what types of properties are renting quickly, what renters are looking for, and more.
If Everett doesn’t fit your strategy, we can help you find a market that does. Mynd has offices in over 19 markets. Our local property managers can use Mynd’s proprietary data to help find you properties that match your strategy, whether you want to invest locally or diversify across several markets.
It is important to know what the market is dictating when setting rent for your Everett rental property. The goal is to get the right amount of rent while leasing it quickly, so pricing it right is critical.
You might not be able to get the same amount of rent if you lease your property in the Winter (off season) vs the Spring/Summer months (peak season).
If the industries in the area are in a downturn or upturn, that can influence the rent you can expect to receive.
The rent amount will vary depending on the property type, square footage and number of bedrooms. When comparing rents, look at properties that are the same as yours. Being that many of the homes are older, you may find you can get a little more money in rent by doing some updates to the property.
Mynd’s Everett Property Management company offers a FREE rental analysis so you can see what your property can expect to rent for.
When you own a rental property there are a lot of day to day operations to take care or not to mention all the ever-changing laws you must follow. Should you continue to do this yourself or does it make sense to hire an Everett property management company?
If you own multiple rental properties or plan to in the future, the tasks required increasingly take up more of your time. Keeping up with all the laws you must comply with can become a heavy burden. Maybe you got into investing because you wanted a safe, secure retirement investment or passive income, but you did not realize the amount of time that was involved in managing it yourself. You thought you were gaining free time and ended up having a second job.
It is entirely possible that you will not end up where you hoped because you may not be doing something right. Not complying with a law could result in your ending up in court owing $1,000s in fines.
Getting that great deal when you buy the property is only the first step in the process that leads to your success. Steve Rozenberg, Head of Investor Education for Mynd, thinks it is important to have a team to help you maximize your return.
They take care of the day to day operations required when you own a rental property such as:
You must follow Federal, state, and local Property Code that dictate how a property must be maintained. When it comes to fixing things in the property, who is responsible for them? The tenant or the landlord? There are things you can’t ask on an application or during the screening process.
Landlords must comply with Federal, state, and local laws that apply to rental properties. These laws are constantly changing, and as a landlord you are expected to keep up with them. If you have to evict a tenant, there may be new laws in place that limit if or how you can do that.
Mold can be a problem in the Everett area due to the amount of rain it gets. You will need to make sure the roof, ventilation, and plumbing is in good shape to prevent mold. There are laws that protect the tenant to ensure they have a safe home to live in. Property managers know what you have to do to comply with any laws in regards to Property Codes.
If you don’t have the time or desire to keep up with the laws and regulations, it might be a smart decision to hire a knowledgeable property manager. Mynd has local property managers that know the laws to ensure you are following them as well as in house legal counsel.
A good property manager helps you make smart decisions and ensures your property is following the laws. Contact us today at Mynd about property management in Everett or for help in finding your next investment property in one of the 19 markets we serve.
September 18, 2020
On August 31, 2020, California Governor Gavin Newsom (D) signed AB 3088 into law, providing state-wide protections for tenants and landlords in the face of the ongoing coronavirus pandemic. The safeguards extended to tenants worrying about evictions and to landlords concerned about foreclosures.
AB 3088 limits a landlord’s ability to evict a tenant for non-payment of rent. To make use of this protection, the tenant must submit a declaration signed under oath of financial hardship due to the financial burden experienced between March 4 – August 31. A valid declaration will prevent evictions from occurring before February 1, 2021.
For hardship stemming from the coronavirus pandemic between September 1, 2020 – January 31, 2021, tenants are expected to pay 25% of expected rent to avoid eviction by January 31, 2021.
The expectation of rent has not been eliminated. Instead, unpaid rent cannot be the reason for eviction for tenants that have experienced financial hardship and submitted a valid declaration. Tenants will still be responsible for paying back rent to landlords, who can begin to recover their debts through a civil small claims lawsuit on March 1, 2021.
The jurisdiction of small claims courts will be temporarily expanded to allow landlords to recover unpaid rents.
Unpaid rent isn't waived under AB 3088. Instead, it's converted into consumer debt collected in small claims court as early as March 1, 2021. If a tenant cannot meet the 25% rent minimum, AB 3088 would only provide eviction protection until February 1, 2021. If a landlord attempts to use extrajudicial self-help, such as shutting off utilities, threats, or coercion, to generate an eviction, then the landlord may face penalties as high as $1,000 to $2,500.
The following legal and financial protections will be extended to tenants:
AB 3088's protections are extended to most tenants if they sign a declaration that they've been financially impacted due to the pandemic. What constitutes "COVID-19-related financial distress" includes:
When a landlord delivers an eviction notice for failure to pay rent, a financial distress form must be provided. The tenant has 15 days to sign and return the financial distress form. The economic distress form does not cover months to come, so that the process may be repeated on a month to month basis. The declaration is signed under "penalty of perjury,” so if a tenant provides knowingly false information, they can be charged with perjury.
Lawful eviction that has nothing to do with unpaid rent caused by the coronavirus pandemic can move forward as early as September 2, 2020. That means landlords will be able to pursue:
Evictions for unpaid rent will resume on October 5, 2020, for tenants that do not submit a financial distress declaration.
Evictions for reasons other than nonpayment of rent cannot be performed as retaliation against nonpayment of rent due to the coronavirus pandemic.
Individual cities may have their own eviction moratoriums, and tenant and landlord protections that may be more robust than that provided by AB 3088. For this reason, it's critical to consult both the stipulations outlined by AB 3088 and the stipulations, if any, of one's local jurisdiction.
If a locality passed a new moratorium after August 19, 2020, then it cannot take effect until February 1, 2021. Ordinances that expire before February 1, 2021, cannot be extended until February 1, 2021. Finally, if a local jurisdiction establishes its repayment period, it must begin on or before March 1, 2021.
Given the complicated nature of the law, it's advised that tenants contact an attorney if a landlord provides notice of eviction. There are many free legal aid foundations to reach out to. The Legal Aid Foundation of Los Angeles, for example, offers free legal services to over 100,000 residents of the greater Los Angeles area.
AB 3088 does not protect landlords from foreclosures, nor does it require banks to provide forbearance. Instead, mortgage servicers must contact borrowers before pursuing foreclosure proceedings with forbearance options.
Dual tracking, when a provider initiates foreclosure proceedings while considering loan modifications with the borrower, is also forbidden.
If forbearance is not an option for a small landlord, then the mortgage servicer must provide a written explanation. These protections extend to January 1, 2023.
Due to AB 3088, California will keep a dramatic increase in residential evictions at bay through the early part of 2021. Although, further action by the federal government is required to ward off the true extent of the pandemic's effects.
If you have rental properties, your property manager should be able to support you in navigating the changing regulations around tenant protections. To learn more about Mynd Management's services, contact getstarted@mynd.co
September 17, 2020
If you are considering investing in Griffin, GA, you should determine if the demographics, home prices, and expected rental return fit with your strategy. It is also important to have the right team to give you good advice about the local market.
Griffin, GA is a metro Atlanta suburb in North-central Georgia. With a population of around 23,000 people, it offers a smaller town feel while being convenient to the city with just a 25 minute commute. The city is home to many families who enjoy the green parks and good schools. Several of the top schools in the area have a B rating, and Niche.com gives Griffin a B rating.
A city that is trending toward future growth is something you want to look for when investing in property. The largest industries in the area are Retail Trade, Manufacturing, and Health Care. Griffin has seen a 2.9%increase in the job market and future job growth is forecast to be 44.8% over the next 10 years.
If the Griffin market doesn’t fit your investment strategy, Mynd has offices in over 19 markets and can help you find an area that fits your goals.
Griffin has a population of about 23,000 people, so it is a smaller city.The average cost of a home is about $140,000 which is way below the US average.
As an investor, you want to look at all these factors when determining rent rates. Contact Mynd’s Griffin,GA property manager who can help you determine what your property will rent for. We offer a FREE rental analysis.
The role of the property manager is to make sure both tenants and owners are happy. They take care of the day to day operations required when you own a rental property such as:
Beyond the regular tasks you think about when it comes to managing a property, you have laws you must follow. There are things you can’t ask on an application or during the screening process. You must follow Federal, state, and local Property Code that dictate how a property must be maintained. When it comes to fixing things in the property, who is responsible for them? The tenant or the landlord?
Landlords must comply with Federal, state, and local laws that apply to rental properties. These laws are constantly changing, and as a landlord you are expected to keep up with them.
With COVID, there have been more laws and regulations enacted that may affect lease renewals, evictions, and more.
If you don’t have the time or the desire to keep up with the laws and regulations, it might be a smart decision to hire a knowledgeable property manager. Mynd local property managers that know the laws to ensure you are following them as well as in house legal counsel.
A good property manager allows you to remove yourself from the situation so you can concentrate on managing your assets not running the day today tasks. Contact us today at Mynd about property management in Griffin or finding your next investment property in one of the 19 markets we serve.
Before deciding if Marietta,GA is the right place for you to invest in a rental property, you want to look at some key statistics to determine what kind of rental return you can expect. Learn why hiring a Marietta, GA property manager that knows the rental market might be a good investment and the key to your success as an investor.
As an investor, you want to research home prices and rental rates so you can calculate the expected rental return. Can you expect any cash flow or are you looking at appreciation only?
Next you want a property that people are looking for when renting. Are there a lot of house, apartments, etc in the area? What are the more popular home sizes? If the rental market is demanding 2 bedroom mobile homes and you have an expensive, large single family home, you might have a harder time leasing the property.
Other important indicators of a good area include job and city growth trends as well as how transient the area is? Do people move in and out or do they stay years?This could affect your turnover time.
Northwest of Atlanta, Marietta is a smaller city rich with history. The Church-Cherokee Streets Historic District is listed in the National Register of Historic Places, and many of the homes were built in the early 1900s. Homes in the 6 historic districts are sought after. However, you will need to keep in mind if you purchase a historical home, you will have to follow guidelines as far as any renovations to the home goes. Outside of the historic district you will find both older and newer homes to choose from.
Marietta has some tourism from its Gone with the Wind Museum and Kennesaw Mountain National Battlefield and Park. It is also near enough to Atlanta to be just a short drive away from seeing the Atlanta Braves play a game at Truist Park.
Residents either commute into Atlanta or are employed locally in multiple industries including manufacturing, retail, accommodation/food services, and construction industries. Lockheed Martin’s manufacturing plan is one of the major industries in the city. Marietta has made a great effort to bring in industries without compromising the historic integrity of the city. The county has seen major growth, and it anticipates seeing slower, steady growth in the future.
Contact Mynd’s Marietta property manager for more information on the area.They are local and familiar with the rental market. Mynd has proprietary data that can help you find an investment property that fits with your strategy and goals.
If Marietta,GA isn’t a good fit for your portfolio or you are interested in diversifying your portfolio in several cities, Mynd has offices in over 19 markets and can help you find properties that fit your strategy.
Setting the correct rent for your property is key to find a tenant quickly and reduce vacancy time.
Note this average rent rate will be different based on the property type. Single family homes will be priced differently than apartments or mobile homes.
Marietta, GA has benefited from some of the highest home appreciation rates in the country. Over the last ten years it has seen 57.12% appreciation. The majority (62%) of homes in the area were built between 1970 and 1999 and are 2-3 bedroom homes. The return on your investment is going to be higher in Marietta than you would see, for example, in California.
When buying a rental property, it is important to have a good team on the ground to help. Mynd has a local Marietta property management office that can help you determine the right rent amount so you maximize your return and lease the property quickly. Mynd offers a FREE rental analysis.
When you own a rental property, you own a business. There are daily operations to oversee and rules, laws, and regulations to follow.
Each of these steps must comply with the laws, rules and regulations. Breaking a law can end up costing you in court fees or fines. It is your obligation to know the laws and comply with them.
Keeping up with ever changing laws is time consuming. Not only do you need to comply with federal and state laws, but local city regulations can include things like:
Don’t have the time or interest to dedicate hours a month to research changes in laws? Hiring a property manager that knows the laws to handle the day to day management and compliance issues might be a good decision for you. Having someone else manage the property offers you peace of mind that your investment is being cared for, the tenants are in a safe home, and all laws are complied with.
A property management company has access to licensed, insured vendors that they trust and work with daily. Based on the properties we manage; the biggest maintenance issues landlords face in the area include:
Property managers help reduce the impact of expected and unexpected expenses such as:
If you are interested in talking to Mynd about property management in Marietta, give us a call today. Mynd is ready to be your strategic partner and offers a three-tiered pricing structure so you can choose the level of service that fits your needs.
