Chandler Properties Blog

In the last year, rental rates have plummeted in the Chattanooga, Tennessee area. I have 5 rental units and just about every one of them is renting for less than it did two years ago. A property that I used to rent for $625 a month just rented out for $550 a month. The economic downturn has really hit the landlord in the wallet.

When the housing crisis first happened I figured it would be a boon for landlords. After all, with family homes being foreclosed on and credit being tightened, people would have to live somewhere. This has not played out how I thought it would. I have talked to several other landlords in my area and they are all experiencing the same results. The conclusion that I have come to is that people are moving back in with their families. A lot of newly graduated students, recent divorcees, and singles must be moving in with friends and family members.

Last November, when the financial crisis first happened I held firm to my guns and did not drop rent for 6 months on my $425 unit. I had been getting $465 for two years and did not want to take a hit. In April 09’ I finally gave in and rented to a strong tenant for $415. I was reluctant to rent at the lower rates and it cost me 6 months of rent.

Anybody else experiencing the same kind of results?

When Did I Change that Air Filter?
The other day I was scratching around trying to remember when the last time the air filters on my apartments had been changed.  As part of the lease agreement, the tenants are supposed to change the filters out on their own.  However, this only rarely happens.  Therefore, every three to six months I’ll go around and check the filters.  I am always amazed at the dirty condition of the filters.  In order to keep up with the age of the air filters as well as the dates of other routine maintenance I put together a maintenance log for each of my properties the other day.  I have decided that starting now, I will change the air filters every three months and reduce the strain on my air conditioner units.  If you would like to download an excel version of the maintenance log, go to the Resources Page and download it for free.

Maintenance Log Details
The maintenance log spreadsheet is a form that can be printed out for each property that a landlord manages.  It includes dates, amounts, and notes related to the following maintenance types.

• Lawn Care
• Pest Control
• Air Filters
• General Maintenance

IRS Consequences
This form not only provides an easy way to keep up with routine maintenance, but it also helps provide evidence that you are an active owner of real estate.  This is an important criteria for determining your tax status with the IRS.  There are tax advantages to being classified as a business owner by the IRS instead of a passive investor.  Keeping records of routine maintenance that you performed helps provide evidence that you are actively engaged in the management of your rentals.

I hope this form is helpful to the landlords out there.  Feel free to download and modify it to best suit your needs.  Any feedback is appreciated.