The Lease

A lease is the written legal agreement between a tenant and landlord, property manager, or property owner. Be careful when dealing with any legal document, as they represent binding terms. Certain information is necessary within the contents of the lease document, but sections can be tailored to match your (the landlord’s) specific preferences and that of the property. At Jason Cohen Pittsburgh, we know the importance of this document and cannot stress it enough. It is the basis for what youyou’re your tenant expect from one another. The Internet houses an abundance of sample leases, which you can use either as guides to write a tailored lease. A lawyer can also draw up a lease for a nominal fee.

The required sections of a lease are:

• The parties involved
• Property location
• Lease term
• Rental amount
• Acknowledgment or signature

The first section, parties involved, is simply a clarification of the names of the tenant and the landlord.  The property location should be listed in as detailed a description as possible. Include the unit number with the street address. The lease term should include the date that the tenant can take possession of the property and when she/he will have to vacate or renew the lease. The rental amount can be listed as a weekly, monthly, or annual fee — monthly is most common. Lastly, the lease must be signed by the tenant and the landlord, property manager, or property owner to be valid.

Within the section of the lease including the rental amount, it is advisable to detail additional terms. The deposit amount should be clearly stated in this section. The circumstances in which the deposit can be used can be explained in a separate section. The late payment policy can be included with the rental amount, or it could have its own addendum. The latter is more common.

Although a pet policy is not a necessary section in the lease, at Jason Cohen Pittsburgh, we advise you to include it in as much detail as possible. If an additional deposit is required for pets, describe it in this section. If pets are allowed, detail the types and sizes of the allowed and restricted pets. Consider all types of pets — from mice and hamsters to cats and dogs. Even take into account exotic pets, such as lizards and monkeys — you never know what you’ll encounter renting out a property. While many people do not consider fish a problem when it comes to rental unit, the size of aquarium should be limited to what the floor can support. Research the types of pets that residents may have before writing this section to be sure to cover all situations. Of course, the pet policy can be a simple “no pets allowed, ” but you may find the tenant pool shrinks with this strict rule. 

Sometimes a tenant will allow friends or family to visit or stay for an extended period. You can choose to include a section limiting the time that a guest can stay. Fifteen days is a common term for a guest. Detail the circumstances in which this can be allowed. For instance, a tenant caring for an ailing mother in the apartment can be viewed differently than a friend crashing on the couch for six months. Punishments for breaching this rule can either be listed in this section or in a section allotted to breach of contract for any reason. 

The words written in a lease agreement can be as important as the tenant’s signature. Including the mandatory parts of a contract make the agreement legal. Adding additional sections tailored to the property and your preferences will minimize issues later on in the renting process. 

Eviction 101: For Property Managers

As a property owner, you know that it is very important to find the perfect residents for your rental properties. Have you ever stopped to think, what happens if I was wrong? Just how hard is it to get a bad tenant out of my rental unit? While it varies from state to state, in most cases the process of eviction is long and arduous. Jason Cohen Pittsburgh knows how to protect yourself and your company while also maintaining the rights of your tenants by following several rules.

Even before you have a resident, you must consider eviction and the process of eviction. When creating the lease agreement, include sections explaining when and why you, as the property owner, have the right to evict a tenant. A violation of the rules and regulations in the lease is a reason to begin the eviction procedure. Obviously, failure to pay rent and regular late payment are two major reasons to evict a tenant. If the tenant is willfully destroying the property, you also have a case for eviction.

The first step in the process is giving the tenant written notice. If the reason for eviction is failure to pay rent, or breaking the lease by having an illegal roommate or pet, you may want to serve a “Notice to Quit” in place of the eviction notice. A “Notice to Quit”, allows the resident a period, such as 10 days, to correct the wrong. If the tenant has broken the lease to the point that a correction will not be offered, the tenant must be given a 30-day notice to leave if the lease is for a year or less. A 90-day notice is issued for leases that are longer than a year. This notice must include certain information in order to be legal — the date of the notice, the name and address of the tenant’s rental unit, the reason for the notice, the time period for correction, the date of eviction, and a statement detailing how the notice was given to the tenant. If essential information is omitted, the notice is not valid and the process must start over.

Rules are in place for getting the notice to quit or evict to the tenant as well. Oddly, you cannot mail this notice. The property owner or a representative at least 18 years old can deliver the notice. If it cannot be given directly to the resident, the notice can posted on the tenant’s door of the rental unit or somewhere else where the tenant will be sure to see it. Be sure to make sure it is conspicuous.  The notice cannot be hidden, covered, or placed in the mailbox. If the notice is not delivered properly, the notice is not valid and the process must begin again.

The next step depends greatly on the resident’s reaction to the notice. If the notice demanded a correction to illicit behavior and the tenant corrects this wrong, the tenant cannot be evicted. For example, if the notice gives the tenant 10 days to pay the late rent, and the tenant pays the rent, the tenant cannot be evicted. This also holds true for illegal pets or roommates. If a correction was not offered, the best-case scenario is that the tenant vacates the premises within the notice period. 

If the resident does not comply with the eviction, the property owner must file a complaint. The complaint will result in a hearing. Until the hearing is held and the decision is made, the tenant will still be in the rental unit. At this point, the tenant can file a counter-complaint, which will also be considered at the hearing. If you, as the landlord, win the case, you will receive a judgment for possession. However, you must wait no less than 15 days to have a constable or sheriff give the resident an “Order for Possession”.  Issuing an “Order for Possession” informs the tenant that, after a set date on the notice, the constable or sheriff will forcibly remove the tenant and the belongings from the unit. The set date must be at least 15 days from the notice.

When reviewing the procedure for eviction, it can be shocking how long it can take to remove a problem resident. Even though the procedure does not seem fair from a landlord’s perspective, it is the law. In order to avoid these proceedings, Jason Cohen Pittsburgh knows that it is essential to find the proper residents.

The Pros and Cons of Renting to Section 8 Tenants

Sure, there are the horror stories of tenants turning your property into a veritable house of horrors, but renting to Section 8 tenants can have advantages. The U.S. Department of Housing and Urban Development runs this financial assistance housing program to help low-income families afford rentals. As with any demographic, there are risks and rewards to renting. At Jason Cohen Pittsburgh, we believe in thoroughly researching a program before either writing it off or diving in headfirst.

Pro: Rent comes in on time via direct deposit

Since HUD is responsible for the payments, rent is automated and deposited to a landlord on time every month. The federal government does not have medical or education expenses or vacation plans that make monthly payments late.

Con: Inspections

Local Public Housing Authorities conduct frequent inspections in 13 aspects of the property that must all meet their standards.

Pro: HUD takes care of payments if a tenant cannot

Even if a resident falls into unemployment, HUD will cover the rent until work is found.

Con: Lack of security deposits

The vouchers that HUD supplies for monthly rent payments do not cover security deposits. Obtaining the deposit directly from the tenant can be challenging, but it should be an essential step towards ensuring the state of your investment.

Pro: Higher profit margins

Because of the government assistance, you can charge more monthly rent in lower-income neighborhoods where properties are much cheaper to purchase.

Con: Limits on voucher amounts

Although you could receive more money in rent from HUD if you were to rent to non Section 8 tenants in the same depressed area, there are also limits on how much rent the government will pay each month. HUD calculates Fair Market Rents annually and allots voucher amounts based on those while factoring in number of bedrooms and condition of property. Even if your property is immaculate, there is a limit on how much HUD will pay.

Pro: Free marketing

Tenants are relatively easy to find by listing your property on the Section 8 web site. Keep your marketing costs low by containing your advertising on a free government site.

Con: Stigma

While you may not have any trouble renting your HUD-assisted unit, you may have issues renting other units in your building due to the stigma attached to Section 8 tenants. Even if the conception that Section 8 tenants are unruly is wholly untrue, it is still enough to drive other potential renters away from your property.

When dealing with Section 8 and any other tenants, screening potential renters is extremely important. If you are worried about the wear and tear that is often (whether fair or not) associated with HUD-assisted tenants, the onus is on you as a responsible landlord to thoroughly screen all applicants. At Jason Cohen Pittsburgh, we cannot endorse Section 8 housing either way. It is up to you as a landlord to decide if the pros outweigh the cons.

Renting to College Students: Jason Cohen Pittsburgh’s Advice

College students are a huge rental market for real estate investors. Students are seeking short-term residences that offer location as the top amenity. They, or their parents, are generally willing to pay a bit more for proximity to the school, and they’re seldom looking for luxury living. College town rentals are typically seen as price-per-room, so the overall monthly income generated from each property is greater than renting to a single family.  

However, there are risks and rewards when renting to college students. From our years of renting to college students, we at Jason Cohen Pittsburgh have compiled the following list of smart strategies.

Require a co-signer

Most college students don’t have the credit history to run a credit check. And, many of them won’t actually be the ones responsible for payment. Sure, the check may be in their names, but the money will often be coming from the parents. Require mom, dad, or both to co-sign a college student’s lease.

Make the tenant responsible for utilities

For the majority of college students, this will be their first apartment. They may not realize just how much it costs to leave all the lights on in the house all night, or the air conditioner running while they’re at class. Having your tenants put utilities in their names puts the burden on them. Don’t get hit with huge bills because your renters don’t know how to manage them.

Include strange rules

In few places outside of college towns does one need to stipulate that couches do not belong on porches. It’s not the aesthetic — it’s the chance for burning when festive revelers light things on fire after a sports victory. You may need certain regulations that are not necessary outside of college life. You may have to forbid climbing onto the roof.

Keep the property in good shape

Students and their parents will not tolerate slumlords any longer. They’re willing to pay more these days for better. Maintain the property and you will reap the rewards. You don’t need to go overboard though. Students often still have meal plans and are seldom gourmet chefs, so high-end kitchens are likely not necessary.

Hire a property manager

Several factors make a student house or apartment a high-maintenance endeavor. This is likely their first residence that they will at least have some responsibility to maintain. College students just may not be aware of all the ways that household items can break. They may not know when to “fix” something themselves and when to call for help. They may even be afraid to call the problem in for fear or being penalized. Or they may call too often because they are unaware of what constitutes an actual problem with the property. And, they may be more prone to damaging the home more than an older tenant. Having a property manager dedicated to overseeing the property is a good idea if you don’t have the time to deal with young renters.

Renting a property in a college town can be an extremely profitable investment that you can keep year after year. The rewards can be great, if you know the risks and how to minimize them.  

Jason Cohen Pittsburgh's Jason Cohen Pumps $1.5 Million into Pittsburgh

Jason Cohen, Chief Consultant at Jason Cohen Pittsburgh, has completed the reinvestment of proceeds, obtained from a sale on March 28, 2013 in the South Oakland area of Pittsburgh, back into the Pittsburgh economy, with the closing of an 18-unit apartment building on Friday, August 30, 2013 in Regent Square.   At a time when the Pittsburgh real estate market is finally being noticed by the masses, having experienced its first population increase in over three years, this reinvestment only adds fuel to Pittsburgh’s fire.  By utilizing the services of a 1031 exchange qualified intermediary and by choosing to reinvest the proceeds from the sale back into like-kind property (selling multi-family property then buying multi-family property with those funds), Mr. Cohen was able to maximize the amount that he could reinvest back into the local economy.  

When asked about his experience with this process, Mr. Cohen said, “We made a promise to Pittsburgh several months ago, that selling the property in South Oakland was not a sign we were divesting, but rather just the opposite; that we would put that money right back into the Pittsburgh real estate market.” That he did. With today’s closing, Jason Cohen’s reinvestment into Pittsburgh ends up being more than double the amount of the proceeds from the original sale outlined in a press release on April 22, 2013, featured in the Wall Street Journal.

This reinvestment, totaling $1.5 million, afforded Jason Cohen Pittsburgh the opportunity to take part in the acquisition of five more local properties. The acquisitions occurred in some of the most premiere neighborhoods of Pittsburgh. One purchase was a 7-unit property in Shadyside and a 4-unit property in Squirrel Hill, another was a 3-unit property in the South Side, and the last was two properties totaling 18-units in Regent Square. While this is Jason Cohen Pittsburgh’s first delve into the Regent Square area, this purchase already positions Mr. Cohen as one of the largest multi-family owners in Regent Square.

Regent Square is an up and coming area of Pittsburgh and runs through four municipalities: the City of Pittsburgh, Edgewood, Swissvale, and Wilkinsburg. It has a unique shopping district and is comprised mostly of family and independently owned businesses.  While predominantly smaller multi-family properties exist in this neighborhood (6 units and below), Jason Cohen was able to combine two of the larger properties in the highly sought after Braddock Avenue section of Regent Square.

Shadyside and Squirrel Hill are also ideal locations for living. Shadyside is home to many upscale stores, boutiques and businesses located along three corridors: Walnut Street, Ellsworth Avenue and South Highland Avenue.  The majority of Squirrel Hill's business areas are located along Forbes and Murray Avenues. In addition to these, there are a number of longtime, non-profit organizations in the area and many annual events are hosted in Squirrel Hill by various community organizations.  The South Side of Pittsburgh is also a model place to reside offering plenty to explore along bustling East Carson Street, and plenty of green spaces to enjoy (South Side Park, South Side Riverfront Park, Armstrong Playground, Ormsby Recreation Center).

Jason Cohen Pittsburgh is one of the largest and most rapidly growing small to mid-size multifamily investors in specific Pittsburgh markets, with the first commercial property being acquired in 2004. The company is a consulting forum for Jason Cohen and others to unite and package together specific real estate strategies tailored to the unique financial situation and goals of each client. Jason Cohen Pittsburgh represents, and has provided, real estate consulting services to everyone from private citizens to seasoned investors and real estate professionals. Cohen’s group is set apart by the customized process designed exclusively for each client to succeed in their real estate activities.

Jason Cohen Pittsburgh's Jason Cohen and Team Give Back to Habitat for Humanity

On August 8, 2013, Jason Cohen Pittsburgh worked together, alongside Habitat for Humanity of Greater Pittsburgh, on rehabbing a home in the Sharpsburg area of town for a family of 7, from Burundi, who had been recently displaced by war.

The home, built in the early 1900s, was sold to Habitat for Humanity of Greater Pittsburgh at a very low cost from a Sharpsburg police officer. It was purchased specifically for this family in need and offers 5 bedrooms in order to accommodate everyone in the family. The majority of the renovations consisted of minor demolition, updating electricity and plumbing, and bringing things up to code.

This project is being funded by the Episcopal Diocese of Pittsburgh and various church groups within the Diocese have raised money for the renovations to this home. The Archbishop blessed the home as well. The Fox Chapel School District also holds fundraisers throughout the year, with proceeds benefitting Habitat for Humanity of Greater Pittsburgh, and for this particular home.

Habitat for Humanity of Greater Pittsburgh was established in Pittsburgh in 1986, and their belief is that “all God’s people deserve a simple, decent place to live.” It is through this belief that they have been able to help 73 low-income families with affordable housing. In order to qualify for housing through Habitat for Humanity of Greater Pittsburgh, a family must first meet certain income criteria, and fill out an application and necessary paperwork. Next, a committee must accept or deny the application.

If accepted, family members begin earning “Sweat Equity” by working 350 hours of labor at house construction sites. After 50 hours of working on another family’s house or at Habitat for Humanity of Greater Pittsburgh’s ReStore, which sells reusable donated house building and home improvement materials to the public, a site is chosen for their home. Next, an army of enthusiastic volunteers works side-by-side with the family to build the house, which will become their home. This construction experience helps families learn to maintain their new home and fosters a sense of pride, accomplishment, and responsibility to their community. The home is then purchased by the family through a no-profit, no-interest mortgage. This entire process typically takes about a year to complete, from start to finish.

Jason Cohen Pittsburgh has had a relationship with Habitat for Humanity of Greater Pittsburgh for approximately 3 years now, working on several projects a year. In fact, Habitat for Humanity of Greater Pittsburgh is the only charitable organization who can do roof repairs, and that is due to its relationship with Jason Cohen Pittsburgh.

Jason Cohen is the Chief Consultant of Jason Cohen Pittsburgh, one of the largest and most rapidly growing small to mid-size multifamily investors in specific Pittsburgh markets, with the first commercial property being acquired in 2004. Jason Cohen Pittsburgh is a consulting forum for Jason Cohen and others to unite and package together specific real estate strategies tailored to the unique financial situation and goals of each client. Jason Cohen Pittsburgh represents and has provided real estate consulting services for private citizens, from doctors, teachers, and single parents to the seasoned investor and real estate professional. Jason Cohen Pittsburgh also offers extensive services to small- and large-cap businesses. Cohen’s group is set apart by the customized process designed exclusively for each client to succeed in their real estate activities.

Jason Cohen Pittsburgh Launches First Podcast

http://jasoncohenpittsburgh.podomatic.com/entry/2013-05-24T13_44_07-07_00

Jason Cohen Pittsburgh Launches its first of many podcasts.

Top Ten Real Estate Investing Tips by Jason Cohen of Jason Cohen Pittsburgh

Jason Cohen of Jason Cohen Pittsburgh publishes his Top Ten Real Estate Investing Tips on Squidoo.


http://www.squidoo.com/jason-cohen-pittsburgh-chief-consultant-jason-cohens-top-10-tips-in-real-estate

Jason Cohen Pittsburgh - a Real Estate Consultant

Known to his friends and his colleagues as a leader among leaders, Jason Cohen assumed the position of entrepreneur after a stint with the corporate world left him feeling uneasy. In his role as the leader of the Pittsburgh multi-family acquisition scene, Jason Cohen has been the leading force behind Jason Cohen Pittsburgh, but also the de facto spokesman for the industry as a whole.

Cohen’s work at Jason Cohen Pittsburgh is fueled by both his extensive managerial experience, and his passion for the industry itself. Cohen is committed to the idea that individuals and real estate firms alike should have a say in how they are represented—and a set of resources for combating those that take advantage of others with lack of knowledge or experience and other acts of betrayal. Says Cohen, “In this where is mine, era, it is a good and necessary service to give people and companies control over a real estate transaction by feeding them experience based knowledge that others either fail or deliberately choose to leave out.”

His success as Jason Cohen Pittsburgh comes on the back of a lifetime of experience as a top-tier manager. Cohen with the Jason Cohen Pittsburgh team has over 10 years of management experience in the Real Estate Industry. His most public acts of managerial service and Real Estate experience came during his complete transformation of a run down, dilapidated town house community in the heart of Bethel Park. In true Flip This House mentality, Jason Cohen became the face of Real Estate transformations in Pittsburgh, With his tireless work ethic, organization skills, and leadership, Cohen  has proven himself to be a manager and business executive utterly without peer.

Cohen continued to show his first-rate management abilities through his 8 year stint managing over 6 Real Estate Firms transforming from barely breaking even endavours to strong cash flow performing entities. Cohen  then went on to lend his Real Estate expertise to Habitat for Humanity, based out of Pittsburgh, by giving them the necessary tools and resources to allow them to tout being one of the only Western Charity offering.Roof Repair.

Ultimately, Jason Cohen is famous for keeping Jason Cohen Pittsburgh at the top of the industry, both in terms of best-in-class ideas and the most advanced acquisition strategies in the business. For Cohen, the chance to bring fairness and control to a buyer in the Pittsburgh Real Estate industry is ample reward, in and of itself