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Tips from the Property Manager: Garbage Disposals 101

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  We receive maintenance requests from our tenants every day and one of the most common issues tenants have is with their garbage disposal.  Most disposal   repairs are quite simple and just about anyone can turn a stuck disposal into a functioning one.  We’re always happy to come out and repair issues, but      disposals tend to break down due to misuse and putting inappropriate material in them.  If you follow the steps below, you can probably avoid disposal    breakdowns altogether. I’ve also listed some simple steps to repair it yourself, so you can get your kitchen back in action quickly.

 Do not put solid items in the garbage disposal.  Hard items bind and clog the disposal and will always cause problems.  Avoid the following:

  • seeds
  • bones
  • fruit pits/avocado pits
  • shrimp and seafood shells
  • anything hard… and never put inorganic material in the disposal

Stay away from fibrous materials such as the following.  If you must put them in, make sure to cut into small pieces:

  • fruit peels
  • onion peels
  • carrots
  • potato peels
  • celery
  • large quantities of coffee grounds
  • egg shells
  • corn cobs and corn husks

Avoid greasy items as they can create a film that makes the disposal function improperly.

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Always use cold water while running the disposal and run it for 30 seconds after the debris is cleared to ensure the system remains clear. The cold water helps keep the mechanics from overheating, and hot water has the potential to melt fat which would then solidify further down the pipes and cause a blockage.

Keep it Clean

  • Wipe the understand of the rubber flange of the disposal (while it is off).  This is where odors can often come from.
  • Running ice through the disposal once a month or so helps to keep it smelling clean and free of debris.  You can also make ice cubes with vinegar and this works well.
  • If you have a really stinky disposal running small bits of citrus peel through it can freshen things right up.

 

Does your disposal sound like a handful of quarters is stuck inside of it?

1.  Turn it off

2.  Insert a ¼ inch allen wrench into the bottom of the disposal and turn the motor manually until the debris is broken free.  This often removes the debris that is jamming the disposal.

3.  If that doesn’t work, try to remove the debris manually with a pair of needle nose pliers or your hand.

4.  If steps 1-3 don’t work, call your property manager.

 

Does your disposal not turn on or make a faint buzzing sound?

1.  Make sure all your circuit breakers are turned on.

2.  There is a red reset button on the bottom of the disposal.  Press it.

3.  Insert a ¼ inch allen wrench in the bottom of the disposal and turn until it spins freely.

4.  If you are still having problems, call your property manager.

 


Tax deductions when working with a property manager

Tax time can be somewhat daunting for real estate investors. Often this means reviewing bank account records to figure out how much was actually collected in rent, adding up receipts to determine maintenance expenses, contacting banks, insurance agents, etc. As a client of JG Real Estate, we’ve simplified much of the equation for you. Through our 1099 and year end statements, you’ll know exactly how much was collected in rent, the total of maintenance expenses, total professional fees, etc. Here’s a breakdown of each form.

  • 1099 – A form 1099 will be sent by JG Real Estate to each property owner for the gross amount of rent received. For example, if your property is renting for $1,000/mo and rent was collected for 11 of 12 months, the 1099 would be for $11,000. Prepayments such as last month’s rent are included in the 1099, however escrow funds such as a security deposit would not be included. See below for an example of a 1099 for gross rent received.

  • Year end statement – Around the same time your 1099 is issued, a year end statement will also be sent out. This statement will outline cash flows for the property including rent received, expenses (owner paid maintenance charges, commissions, common area utilities, etc), and finally net income. It’s important to note that JG Real Estate’s cash flow report will NOT include expenses such as insurance, mortgage, & taxes as these are items which owners for pay directly. Please see the below example owner statement.


Philadelphia Bike share

On August 22nd the Philadelphia bike share strategic business plan was released. The plan, in short, seeks to increase personal mobility in Philadelphia, develop an innovative transportation system, and provide a safe mode of transportation. Rolled out across five deployments, there are plans for 185 stations and 1800 bicycles by Summer/Fall of 2017. By 2020 the proposals claims that the bike share program will have over 2 Million users representing both casual/short term & registered membership types.

Read the actual proposal below:

Better yet, administrators would like to hear YOUR feedback as to where Philadelphia Bike Share locations should be – check out the interactive map below which allows you to pin the location where you’d like to see a Philadelphia Bike share station. Additionally, you are able to comment on other proposed locations which starts a dialogue with neighbors and hopefully catches the attention of program administrators. You’ll notice that we suggested a location in front of our office.

Download (PDF, 393KB)

And here is our instructional version (remember, we’re not accountants or lawyers, so if you have questions or are unsure of how to fill the form out we HIGHLY recommend contacting the appropriate professional):

 

 

Jared Gruber


Real Estate Scholarship – JG Real Estate giving back to the community

JG Real estate is pleased to announce that it will be offering a pre-licensure real estate eduction scholarship for one qualified individual.  Included is full tuition for both courses required by the State Real Estate Commission to qualify to become a PA Real Estate Salesperson – “Real Estate Fundamentals” and “Real Estate Practice”, along with the required textbook.

The ideal candidate will have a passion for real estate and seek to start work as an agent within three months of passing both classes, either in a part time or full time capacity.

Fill out my online form.

The fine print:

  • This real estate scholarship is only intended for applicants which will go to an approved Pennsylvania real estate eduction provider, and wish to be licensed in the State of Pennsylvania. JGRE reserves the right to select which school the applicant will attend.
  • Upon passing classes, applicant must sit for the state and national real estate exams within 60 days.
  • JGRE reserves the right to reject any applicant, for any reason.
  • Applicant must be a US Citizen.
  • The deadline for all applications to be received is 5/1/13. An applicant may be approved prior to that time, and applications will still be accepted after the deadline, for future scholarship opportunities.

JG Real Estate is a full service real estate brokerage and Philadelphia Property Management Company. Visit us by clicking here.


Transitioning Insurance: Owner occupied to Landlord’s Insurance policy

Choosing the right policy to properly protect your property is an important and often daunting task. As a property manager, I contractually require my management clients to carry adequate insurance, and to also name JG Real Estate as additional insured. Many of my clients are homeowners turned landlords, which have a standard owner occupied policy. Some understand that they need to transition over to a landlord’s insurance policy, while others are naive. It’s important to have the correct policy in place for a few different reasons, as explained below:

  • Depending on the terms of your owner occupied policy, the moment you rent the house out, it might be voided. If you move out of the property and continue trying to rent it out (without having successfully located a renter) you might be up against a separate issue. Most policies are rendered ineffective if the subject is vacant for than X amount of days (check your policy for the specific time frame). This is where vacant property insurance comes in, which does just that; insures vacant properties because standard polices refuse to.
  • Loss of rents – What happens if your property, due to a loss which is covered under the policy, is no longer habitable, and therefore cannot be rented to tenants? A standard homeowner’s policy is not going to cover the rental income you have lost. Whether you are an accidental landlord, or it’s your primary business- you ARE running a business and it should be treated as such. The coverage is usually not dollar for dollar, but rather a reimbursement formula based on net losses.
  • Cost differential – For obvious reasons, a landlord’s insurance policy with similar coverage amounts, deductibles, etc. is going to come at a higher cost. Why? To start with, the level of diligence displayed by renters vs. homeowners. As a professional property manager, I’ve come across a variety of mind boggling circumstances, related to tenant negligence. In one instance, a tenant did not report a leak which caused massive damage, for over seven days. So, for seven days there was a huge ongoing plumbing issue (the water service coming into the house ruptured & was spraying all over the place) which was never brought to my attention, and the damage continued to pile on. If the roles were reversed, and this was a homeowner experiencing damage to his own dwelling, I am sure a call would have been made to a plumber within minutes of discovering the issue. Landlord policy premiums in my experience are 10-20% higher than their counter-parts, because overall they propose a greater risk to the insurance company. Some might say that this is a good reason to NOT switch policy types, but in my opinion the modest savings (maybe $100-$200 on a typical Philadelphia row home policy) is not worth what you’d be sacrificing.

Now that I’ve (hopefully) convinced you that it’s important to switch over to the appropriate policy type once your home is converted to a rental property, what riders are important to get?

  • Vandalism – In Philadelphia, this is a must have in my opinion. I have experience with a vandalism related issue causing a lot of destruction to a home that I personally own. In my case, a thief stealthily climbed up on my roof and chopped out a copper drain-box (presumably to scrap it for literally a few dollars). While replacing the drain-box itself was not a big deal, a couple hundred dollar repair, the bigger problem was that it rained that same evening the vandalism had occurred. With a now gaping hole in the corner of my roof,it was easy for all runoff water to find its way directly into the home. In all, due to the vandal’s actions, a few thousand dollars of damage was done between ripping down the ceilings in a few rooms, installing new drywall, painting, and replacing a couple of light fixtures. Guess what? None of the damage was covered due to the fact that I didn’t have a vandalism rider. On a side note, be wary of public adjusters – some are great, but others are awful. I had hired an adjuster who advised me to file the claim, not even realizing that I didn’t have a vandalism rider; because he never even read the policy.
  • Rent Guarantee:  This can be offered either as a policy in itself, or as a rider with select insurance companies. It’s a new offering in the United States, although fairly common in the UK. Basically, if a tenant is not able to pay rent due to financial difficulties, you’re covered if you have one of these policies. The cost seems to be equal to approximately one month’s rent. I’ve never used one of these policies, or suggested them to my clients, but that’s not to say that in some circumstances they wouldn’t be a good idea. Part of what I offer to my clients is great due diligence on the front end, meaning that we thoroughly screen tenants by checking prior landlord references, pulling credit reports & eviction screens, and verifying income. This weeds out the overwhelming majority of people who might cause a problem down the road, however with all the screening in the world, you’ll still eventually run across a deadbeat tenant. So, you as a landlord need to evaluate this on a risk versus reward level, just like the insurance companies do. Think about it, the only way an insurance company stays in business is by being profitable. Revenues must exceed expenses. So, they’re making an educated bet that the premiums they collect are going to be more than the claims they pay out. You should do the same thing when deciding to purchase a policy; what’s the likelihood that you’ll need to take advantage of this policy? You know your property and the tenant much better than the insurance company does – do you think you’re going to need to evict them? When qualifying a tenant, if you’re uneasy, another strategy would be to have THEM pay for this additional coverage. Of course you probably want to avoid telling the tenant that this policy is in place, as it may translate to a free-ride in the tenant’s mind. Maybe you could have them pay for first, last, 2nd to last month’s rent, and security deposit upfront, rather than the standard first ,last, and security. With that additional month upfront, you could potentially buy this policy for additional protection without coming out pocket.

Of course, as a Philadelphia property manager, I offer advice & guidance to my clients whenever they need it. If you are a current JG Real Estate client, or interested in our services, and would like some more information about insurance please do not hesitate to contact Jared Gruber by emailing Jared@JG-RealEstate.com.


City of Philadelphia renames Business Privilege License Commercial Activity License

Attention Philadelphians, the business privilege license which you’ve come to know and love (or hate) has been renamed! All business owners in the city are required to have the business privilege license AKA Commercial activity license, which quite literally gives an individual the privilege  to conduct business in the City of Philadelphia.

According to The Philadelphia Revenue Department “Effective May 1, 2012, Council Bill 110758 renames the Business Privilege Tax the Business Income and Receipts Tax and the Business Privilege License the Commercial Activity License. This change will not be reflected on the actual Business Income and Receipts Tax forms until next tax season.”

As far as we can tell at JG Real Estate, this renaming does not impact any other aspect of the form. The lifetime license (which we recommend for landlords vs the annual version) still costs $300. We wrote an in depth blog post a while back which was specific to the BPL and housing inspection license, and the same concepts still hold true. That blog post may be found here.


Holiday Recycling Program

The gifts are open, the tinsel is down, and it’s time to put away the decorations for another year! If you’re anxious to get that Christmas tree out of the house, the City of Philadelphia has an eco-friendly option with their two week long Holiday Recycling Program.

CITY OF PHILADELPHIA HOLIDAY RECYCLING PROGRAM

The City of Philadelphia is asking residents to recycle their live Christmas trees by dropping them off at the following Streets Department Sanitation Convenience Centers:

3033 South 63rd Street
Domino Lane and Umbria Street
State Road and Ashburner Street

The program will run for two weeks from Monday, January 7, 2013through Saturday, January 19, 2013, and you can drop off your trees at any of the above locations Monday through Saturday 8 a.m to 6 p.m.

The Department of Parks and Recreation will then take the trees for composting and/or shred the trees into mulch. There is no charge for the drop off, and it doesn’t matter if you purchased your tree from somewhere else.

Before you drop your Christmas tree off for recycling:

  • Remove lights, ornaments and tree stands, including wooden stands and nails.
  • Do not place the tree in a plastic bag.

Trees placed curbside will not be recycled, and will be considered trash.

You can also recycle your holiday gift materials, and start earning Philadelphia Recycling Rewards points. Please see the link below for full details.

Read more: http://www.philadelphiastreets.com/holidayrecycling.aspx


New Year’s Eve in Philadelphia 2013

Where will you be when the clock strikes 12?

New year means fresh starts, opportunities, and new beginnings. It’s important that you start your year off right by being with the people you love and celebrate the many good changes to come. Scroll below to see a variety of  activities you and your loved ones can do this year. What will you do to bring in 2013?

Restaurants:

The Best from each Neighborhood

Bars & Clubs:

Ball Drop

Affordable Open Bar

5 Parties in One Ticket

Dinner Cruise:

Spirit Cruise

Free Events:

                                        Firework Shows

 


Bike-Share Coming to Philadelphia

Bike-Share Coming to Philadelphia

Already implemented in other cities, Philadelphia mayor, Michael Nutter, has just announced that Philadelphia will be next in bringing “bike-share” to its streets. An exciting new and innovative form of public transportation, rental bicycles are going to be brought to the city and placed in docking stations for users.

Philadelphia’s Plan for Bike-Share

In its first year, just 650 bicycles will be in Philadelphia, growing to 1,200 bikes in the following years. These bikes would be free to ride for the first half hour and then charge a metered fare for time over that.

Bike-Sharing Pros and Cons for Philadelphians

Clearly bike-sharing will help reduce gas emissions and add to the convenience of the Philadelphia commute for some. It is a nice idea for people who want to go out and explore the area for the day, but, 650 bicycles doesn’t seem like nearly enough. To what areas is the bike-sharing going to extend? Are Philadelphia officials thinking on too small a level? Only time will tell!


Christmas Village In Philadelphia 2012

4th Annual Christmas Village

Are you looking for a fun night downtown? A romantic evening? A place to take the kids? A night away from all the hustle and bustle? Then Christmas Village should be on your list.

Each year, since 2008, one of Philadelphia’s main holiday attractions has been the Christmas Village. Located at LOVE Park, in the heart of the city, this outdoor holiday market opens Thanksgiving Day until Christmas Eve.

This event grows larger each year, with about 60 vendors selling items ranging from German and European food, hand crafted goods, wines, chocolates, roasted nuts, clothing items, ornaments, and much more. Vendors set up in wooden booths, scattered about the park grounds, selling goods in the fashion of the traditional German Christmas Market, the most famous being the Christkindlesmakrt in Nuremburg, Germany. As you walk from vendor to vendor, you do in fact get a sense that you are walking through a market in Europe. There are covered tent areas for eating, drinking, or conversation, which allows for a break from the crisp winter air. Don’t miss out on this chance to experience this European Christmas tradition right here in Philadelphia.

The market is open Sunday – Thursday: 11am – 7pm, and Friday – Saturday: 11am – 8pm

For more information, visit their website at http://www.philachristmas.com/index.php


Christmas Lights Taken To Another Level By PA Home Owners

PA Home Owners: Latest X-mas Trend

Technology doubles nearly every 2 years. This allows for more creativity and possibilities for the average Joe. The latest trend popping up in many neighborhoods is synchronizing Christmas lights to music. This new technology is available to most PA Home Owners who choose to put out a great display that can be synchronized with a local radio station.

Basic 2-Step Process:

1. Set up your lights as you would normally but make sure they are all connected to each other. Protect your project by plugging the final cord into a surge protector before connecting it to the outlet.

2. To sync the music, you can either connect your lights to your Computer or use a musical Light Control Box with synchronizing capabilities. Click on the hyperlinks above to read further and learn more about the process.

Is it worth it?

This project will cost you a lot of money, time and energy, both physical and electrical. Your PECO bills will definitely run you up to the higher $1,000′s depending on how extravagant you choose to go. If you’re willing to put forth the cost, then this is your year to shine. If not, then take a drive by and you may stumble on to a great show like I did shown below.