HOA and Rental Property Management News and Updates

While Zelle offers a convenient and fast way to send and receive money, there are several risks that both senders and recipients should be aware of. These risks are especially relevant when using Zelle for transactions like rent payments or other business dealings. While Zelle is a convenient payment method, there are important factors to consider to avoid complications: 1. Not Keeping Proper Records Landlords need to keep accurate records for tax purposes, legal compliance, and in case of disputes. Zelle transactions typically don’t come with a receipt like traditional payments, so it’s important to log details such as the date, amount, and tenant’s name. Keep a digital or paper log of each Zelle transaction. You can also request a receipt from your bank or use accounting software to track payments. 2. Assuming the payment is correct without verifying the amount or tenant’s details. Zelle transfers are instant, and once sent, they cannot be reversed or undone. If a tenant mistakenly sends less rent or uses an incorrect reference, it could lead to confusion or missed payments. Always double-check the payment amount and confirm with the tenant that it was sent correctly. You can also ask for a confirmation message or screen capture of the payment. 3 . Not Having a Written Agreement on Payment Method Zelle may not be the preferred method for all tenants or landlords. Without clear terms in the lease, tenants might mistakenly assume Zelle is acceptable, leading to misunderstandings about payment deadlines or methods. Clarify payment methods in the lease agreement, specifying the due date, the method of payment, and consequences for missed or incorrect payments. 4. Receiving rent payments through a personal Zelle account Using a personal account for business transactions can complicate tax filings, create potential legal issues, and make it harder to separate personal and rental income. Set up a separate bank account for your rental properties and link that account to Zelle to ensure a clear distinction between personal and rental transactions. 5. Not Providing a Clear Payment Reference If multiple tenants are paying rent through the same method , it can become difficult to identify who made which payment. This can lead to confusion and missed or incorrect payments. Always ask tenants to include a reference note, like "Rent for [Month] - [Tenant's Name or Apartment Number]," so you can quickly identify who made the payment. 6. Assuming Zelle is Secure Without Understanding the Risks While Zelle is generally safe, it’s important to only use it with trusted parties. Scammers sometimes pose as tenants, tricking landlords into accepting fraudulent payments. Always verify the identity of the tenant and confirm that they are the one sending the payment. Avoid using Zelle for rent payments until the tenant is vetted. 7. Not Addressing Payment Disputes Promptly Once a Zelle payment is sent, it’s immediate and irreversible. Disputes need to be addressed quickly to prevent miscommunication or potential eviction proceedings based on payment issues. If there’s a dispute, verify payment history through your bank's online portal, confirm the payment details with the tenant, and resolve any issues immediately. 8. Overlooking Transaction Limits Zelle has daily and monthly transaction limits, which might be a problem for large rent payments or tenants paying in installments. Familiarize yourself with your bank’s Zelle limits and inform tenants if you need to adjust payment methods or send rent in multiple installments. Set clear due dates and confirm payment timing with tenants, as Zelle and maintain a separate account for rent payments and regularly reconcile transactions to avoid confusion.

When landlords accept rent payments in cash, there are several potential mistakes and risks they may inadvertently commit. These mistakes can have legal, financial, and operational consequences. Common errors Landlords make when accepting cash payments for rent: Failure to Document Payments – Without proper documentation, there's no clear record that the tenant has paid rent. This can lead to disputes, especially if the tenant claims they’ve paid when they haven't, or vice versa. Not Keeping Payment Records – Cash transactions are harder to track, and failure to maintain proper records can lead to issues during tax reporting, property inspections, or disputes over unpaid rent. Not Reporting to the IRS – Cash payments may be tempting to keep off the books, but failing to report rental income is illegal and can lead to penalties, fines, or audits from the IRS. Accepting Payments Without Verification – This can open the door for fraud or payment from unauthorized individuals. It may also cause confusion if the tenant tries to deny paying rent or if there’s a misunderstanding about the payment. Inadequate Security – Handling cash can expose landlords to theft, especially if rent is collected in person or if large amounts of cash accumulate. Ignoring Late Payment Systems – Without a clear system in place to handle late or missed cash payments, landlords may find it difficult to track tenant arrears or take timely action if payment is delayed. If you're not tracking cash payments properly, this can lead to overdue rent accumulating undetected. Best Practices to Prevent Mistakes with Cash Rent Payments: Encourage tenants to pay with checks, money orders, or through electronic payment systems that leave an audit trail. If you must accept cash, make sure the tenant deposits it directly into your bank account (rather than handing it over in person) and always obtain a receipt. Regularly review tenants' payment history and ensure that all payments, including cash, are recorded in your tracking system. This will help you avoid disputes and better manage your properties. Set up a written policy for late rent payments in your lease agreement. This should include any grace periods, late fees, and procedures for handling missed payments. Keep track of all rent payment dates and amounts to ensure you are clear on what is owed. Set up a written policy for late rent payments in your lease agreement. This should include any grace periods, late fees, and procedures for handling missed payments. Keep track of all rent payment dates and amounts to ensure you are clear on what is owed. Check out what Texas Law has to say about rent payment.

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CenterPoint Energy plans to adjust the customer charge used to calculate monthly bills as detailed below. The proposed Interim Rate Adjustment is scheduled to take effect on April 19, 2025 . This proposed Interim Rate Adjustment will apply to all standard sales service customers within the cities and unincorporated areas served by the company covering the Company’s Houston, South Texas, Texas Coast, and Beaumont/East Texas geographic rate areas. The adjustment allows for the recovery of additional capital investment made between October 1, 2023, and December 31, 2024 . This request pertains to capital investments not included in any prior rate case or service rates and is subject to refund.

Rent Paid Through Credit Card refers to tenants paying their rent using a credit card instead of traditional payment methods like checks or bank transfers. This payment method offers convenience but also comes with specific considerations for both tenants and landlords. Landlords who accept rent payments via credit card might encounter several common errors. These errors can lead to issues with cash flow, financial management, or legal compliance. Below are some common mistakes and their potential solutions: 1. High Transaction Fees Problem: Credit card payments often come with significant transaction fees, usually ranging from 2.9% to 3.5% of the transaction amount. For landlords with multiple tenants, these fees can add up quickly. Solution: Consider using a third-party payment processor or platform that offers lower fees. Some property management software may have partnerships with payment processors that provide discounted rates for landlords. Alternatively, you could pass these fees on to tenants by charging a processing fee or offering other methods of payment (like ACH transfers) that do not incur high charges. 2. Delayed Payments Problem: Credit card payments may not immediately clear, leading to delays in receiving funds. Some tenants may forget to schedule their credit card payments on time, especially if they are manually processing the payment each month. This can impact a landlord’s ability to pay bills or cover property maintenance costs. Solution: Make sure tenants are aware that payments may take a few days to process. Consider setting up a clear system that notifies tenants about payment deadlines, and remind them that credit card payments may not be processed instantly. Also, consider using services that offer instant payment options for landlords who need immediate funds, though these may come with additional fees. 3. Fraudulent Transactions or Chargebacks Problem: Credit card chargebacks can occur if a tenant disputes the charge. This can be a common issue when tenants claim that payments weren’t authorized, leading to the loss of rental income. Solution: Always ensure that you have proper documentation (e.g., receipts, transaction logs) for each payment. You can also mitigate this by utilizing platforms that offer fraud protection and chargeback management. If using a payment gateway, ensure it has secure encryption and tokenization to protect against fraud. 4. Failure to Account for Partial Payments Problem: Some tenants may make partial payments using their credit cards, which could lead to confusion when tracking rent balances. If this occurs, landlords may have difficulty keeping track of whether the full rent has been paid. Solution: Use a property management system that automatically updates tenants’ accounts after each payment. This will allow you to keep track of whether partial payments have been made and send reminders or notices if the tenant’s balance is not fully paid. 5. Limited Payment Processing Options Problem: Not all tenants may have credit cards or feel comfortable using them for rent payments, leading to missed payments or frustration among renters. Solution: Offer multiple payment options alongside credit cards, such as ACH payments, e-checks, or money orders. Providing flexibility can help retain tenants who prefer not to use credit cards. 6. Incorrect Credit Card Information Problem: Tenants may have expired credit cards, changed accounts, or provide incorrect details, leading to failed transactions and missed rent payments. Solution: Implement systems that notify tenants when their payment fails due to incorrect or expired credit card information. Ensure that tenants have easy access to update their payment details and offer alternative payment methods if necessary. Communicate clearly and regularly with tenants about the payment process. Provide them with information on how to make payments, any associated fees, and the importance of timely payments to avoid late fees. Consider offering a payment portal with user-friendly access to ensure tenants understand the process. Thus Landlords can avoid financial complications and improve the efficiency of rent collection.

When rent is paid through check, it involves tenants writing a personal or business check to their landlord to cover the agreed-upon rent amount. This traditional method of payment is common but can involve certain risks and considerations for both landlords and tenants. Checks provide a clear paper trail for both landlords and tenants, which can be helpful for record-keeping and dispute resolution but the disadvantage is that if a tenant’s check bounces, it can cause delays and financial inconvenience and Checks take time to clear through the bank, which can delay access to funds and there’s also a risk that checks may be lost in transit or damaged. Key points to keep in mind while receiving rent through check: Landlords should ensure the check is valid and that funds are available to cover the rent. If a check bounces due to insufficient funds, this can cause delays in payment and additional fees. It's important for landlords to keep detailed records of the check payment, including the date it was received, the check number, and the amount. Receipts should be provided to tenants for proof of payment. Landlords should deposit checks promptly to avoid confusion or potential issues with bounced payments. Delaying deposits could lead to disputes about when rent was actually paid. The lease agreement should specify the date the check is due and where it should be mailed or delivered to avoid late payments or miscommunication. If a check bounces, landlords should have a clear policy for handling the situation, including charging fees or requesting alternative payment methods (e.g., money order, cash, or bank transfer). It's important for landlords to be cautious when accepting postdated checks, as they can cause issues with timely payment if the tenant's check is not honored when the date arrives. There is a risk of checks being lost in the mail or altered. Landlords should be mindful of these risks and take steps to ensure checks are securely handled. While checks are common, offering other payment options (like online payments, direct transfers, or credit card payments) may help reduce delays and enhance convenience for tenants.  Landlords should weigh the pros and cons of receiving rent by check and ensure clear procedures are in place for handling payments.

Did you know that changing your air filter regularly can help save you money? Proper air filter maintenance is essential for keeping your HVAC system running efficiently and your energy bills low. It’s one of the simplest maintenance tasks with the most significant impact on your utility bills. Here’s why: 1. Improve Efficiency & Lower Costs When your air filter is clogged with dust and debris, your HVAC system has to work harder to maintain your desired temperature. This means more energy is used, and your utility bills go up. By changing the filter, you allow the system to run more efficiently, using less energy and ultimately saving you money. 2. Extend Your HVAC’s Lifespan A clean filter helps reduce strain on your HVAC system, preventing unnecessary wear and tear. This can extend the lifespan of your heating and cooling units and reduce the chances of costly repairs or early replacements. 3. Enhance Indoor Air Quality Regularly changing your air filter can improve your indoor air quality by trapping dust, allergens, and pollutants. It not only helps you breathe easier but also prevents these particles from circulating through your home, making it healthier for you and your family. Tip: Change your filter every 1 - 3 months, depending on your system's usage and based on the advice from AC companies in Houston. For ceiling intakes ,Filters should be changed at least once a month. For wall/floor intakes and if you have pets , Filters should be replaced every couple of weeks since they collect more dust, pet hair, and debris. Taking a few minutes to replace your filter can save you money and keep your home comfortable and healthy. Feel free to reach out to us for assistance or maintenance requests!

The Fair Housing Act protects individuals and families from discrimination in the sale, rental, financing or advertising of housing based on their race, color, religion, family status, national origin, sex, or disability. Landlords may inadvertently violate Fair Housing Laws, which protect tenants from discrimination based on race, color, national origin, religion, sex, familial status, or disability. These violations can lead to costly legal consequences and damage a landlord’s reputation. Common Mistakes: Posting rental listings that discriminate against certain groups (e.g., specifying "no children" or "only adults") can violate Fair Housing laws. Applying different standards or criteria (such as income requirements or background checks) based on a tenant's race, ethnicity, or other protected characteristics is discriminatory. Failing to accommodate tenants with disabilities (e.g., not allowing service animals or not making necessary modifications) violates Fair Housing laws. Treating tenants differently based on protected characteristics when enforcing lease terms, such as late payment policies, can result in discrimination claims. Landlords who engage in discriminatory behavior or harass tenants based on their race, religion, gender, or any other protected class can face significant penalties. Solutions: Apply uniform standards for all tenants regardless of their background, and use consistent screening criteria for every applicant. Avoid language in advertisements that could be interpreted as discriminatory. Use neutral language that welcomes all prospective tenants. Be proactive in offering accommodations for tenants with disabilities, such as allowing service animals or making necessary property modifications. Seek advice from legal professionals to ensure full compliance with Fair Housing laws and avoid unintentional discrimination. By understanding and adhering to Fair Housing laws , Investors can foster inclusive rental practices while avoiding legal issues.

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