Posted by Teresa on February 18, 2009 under Landlord Tips | 
You’ve worked hard to prepare and market your rental property, and now you’ve found a great new, pre qualifed tenant. If you think the hard work is behind you, guess again! Now it’s your job as property manager to retain your good tenant—after all, you want to minimize tenant turnover.
Consider providing a Welcome Package that answers your tenant’s questions and clarifies everyone’s expectations. It’s a small, but significant, step toward building a good landlord-tenant relationship.
Include an overview of rules and policies, but don’t restate the entire lease. A simple list for referral purposes is enough. Include when and where to pay rent, how to access the building, where to park, and any other pertinent information. This can be accomplished with an FAQ (Frequently Asked Questions) list.
Be sure to provide practical safety information, such as an evacuation route, fire extinguisher locations, and emergency water shut-offs. A floor plan clearly indicating these items would be perfect.
A phone number list is essential for new renters. Include your own regular and emergency contact numbers, as well as those of your preferred maintenance service, plumber, and electrician. If a crisis situation occurs, your tenants should be able to get the help they need, even if they cannot reach you. Make sure your tenants know how to reach all of the property’s utility providers, too.
A guide to nearby restaurants, grocery stores, dry cleaners, and coffee shops would be most appreciated by a tenant who is new to your town. Tell them where the best pizza can be found, so they’re prepared to order dinner on move-in day. Visit your Chamber of Commerce or local Visitor’s Center for brochures and area guidebooks.
If you’re really dedicated to establishing a great relationship, the Welcome Package might include a few move-in necessities to help your new tenants transition to their new home. Think about the items most needed when moving—like bottled water, paper towels, soap, a roll of t.p. for the bathroom, and even a gift certificate to a local pizzeria. You’ll demonstrate you are going above and beyond to improve the landlord/tenant relationship!
Find landlord resources, including everything you need to know about tenant screening, from E-Renter.com.
Next post: Establishing A Property Inspection Schedule
Posted by Teresa on February 14, 2009 under Tenant Credit Checks, Tenant Screening & Background Checks |
The perfect tenant might not exist, but there are plenty of good, even ideal tenants out there. You know them—they’re clean, quiet, and pay their rent on time, every time. How do you sift through the prospects and make sure you’re renting to the one of the good ones? It’s simple: take the time to pre-qualify tenants.
Five reasons why you should pre-qualify tenants:
Today’s economic environment: Don’t rent without knowing a potential tenant’s credit history. The current economy makes this essential.
Avoid nightmares: Even the well-employed can be nightmare tenants. A good income never guarantees good behavior, so check personal and rental references of each tenant applicant.
Screen out the criminals: Check each applicant’s source of income. If a potential tenant’s income source is unclear or worse, not legitimate, you do not want them as a tenant on your property.
Mitigate your risk: Proper tenant screening can prevent a predator from becoming your tenant and your liability.
Reduce tenant turnover: Know what you’re dealing with going in, so you don’t have to watch tenants move out due to liens, overextended credit, or other legal issues.
Remember to be thorough when pre-qualifying—require written applications from each adult who will be leasing your property.
It’s easier than you think to ensure that you have the best possible tenant—before you sign the rental agreement. Decrease your headaches and your losses by pre-qualifying every potential applicant.
Find landlord resources, including everything you need to know about tenant screening from E-Renter.com.
Next post: A Welcome Package for New Tenants
Posted by Teresa on February 11, 2009 under General, Landlord Tips, Marketing for Landlords |
Part 2 of 2: Cost-effective ways to advertise
There is a lot of movement in the rental market right now. Renters living in recently-foreclosed homes are being forced to move. Homeowners who cannot afford rising mortgage payments are becoming renters again.
Now is not the time to be passive in your advertising efforts. The good news is you don’t have to spend a ton of money. Once you’ve prepared your property, get the word out with these cost-effective advertising tips.
Advertising is good; free advertising is even better: If you haven’t tried Craigslist yet, don’t let another day go by without posting your property on the site. Craigslist is free, easy to use and immensely popular—three very good reasons to check it out!Other websites offer free listings, too—but these vary. Some require that you pay for each subsequent contact. Let your budget be your guide as you Google “Free For Rent Listings.” Wherever you list your rental, include photos! Take the time to shoot at least one exterior and several interior pictures of your property. Include the kitchen and bathrooms, closets, and any unique features that will attract your ideal tenant.
Double your efforts with some low-tech methods, too. Write up your listing, and print it out. Repeat your phone number all across the bottom of the page. Cut strips between the numbers so interested folks can tear one off. Many grocery stores, coffee shops, and community centers allow fliers on their bulletin boards, so visit a few around your rental property to see how others post their rentals. Why reinvent the wheel when you can copy a good idea?
Local community publications are another good option for free or low-cost advertising. You might hesitate to advertise a downtown high-rise condo in a farm community paper, but the idea is to get the word out and let others do your advertising for you. You don’t know where your next tenant will hear about your property, so why not try a scattershot approach?
Don’t Forget Signage. Easy to read signs or banners will send the message that your property is available. While hardware stores carry the standard “For Rent” signs, you might want to investigate the options at your local sign and banner store. To make your contact info easy to read, you may need a larger sign or banner—and since they last for years, signs are a one-time investment.
Host an Open House: They’re free, and can be a great way to gather potential tenants all in one afternoon. The key is to advertise well in advance: again, use Craigslist, fliers, and signage to get the word out. Enlist some help so visitors are all greeted and shown the property. Have a contact sheet ready at the door to gather names, phone numbers, and emails for each person so you can follow up after the open house.
Utilize the Best Form of Advertising: Word of Mouth! Ask your friends and family, your hair stylist or barber, your manicurist and the home and garden store guy if they know anyone looking for a rental property. You may be surprised at the response this easy form of networking can bring.
After all your money-saving efforts pay off and you have some great possibilities, take the next step to ensure you’re choosing the right tenant. Tenant screening is easy and fast. Proper tenant screening also gives you peace of mind—and it’s impossible to put a price tag on that!
Posted by Teresa on February 6, 2009 under Landlord Tips |
Part 1 of 2: Prepare Before You Advertise
As we pointed out in our previous post, the newest study on rents and occupancy rates showed that both were down overall for 2008. No big surprise there! What wasn’t down in 2008 (besides unemployment figures)?
Today we’ll show that you don’t have to be down about marketing rental property in this tough economy. If you’re sitting on vacant rental properties and tightening cash flow, we’ve got some practical ideas that won’t break your budget.
4 Steps to take before you advertise your rental property:
1. Check it out: Look at your rental unit through the eyes of a potential tenant. Even better—ask a friend to come along and suggest some honest, critical observations. You may not see things like they do.
2. Spruce it up: It doesn’t take a ton of money to put things in tip top shape! Is your rental property super-tidy, inside and out? If not, get busy. Scrub the interior and powerwash the exterior, make sure the entry or porch is spotless, and put out a fresh, new welcome mat. First impressions are critically important.
3. Clear it out: A prospective tenant does not want to see beer cans and lost dog fliers in the yard—so remove any trash from the premises. Cut the grass and trim the shrubs, sweep out the carport and haul it all away.
4. Make it safe: Repair broken or sagging steps. Check railings for security. Trim overhanging branches and out-of-control shrubs near windows. Check the exterior lighting, and install additional if needed. Finally, check all door and window locks to be sure they work properly and easily. You’ll make your prospective tenant feel safe and reduce your risk.
Your rental property makes impressions every day. Ask yourself, What does the public see? You never know who will refer your new tenant, so make sure yours is an outstanding property, ready to become the perfect tenant’s new home!
Get the best new tenants by preparing your rental property. Then screen them properly. Find landlord resources, including everything you need to know about tenant screening from E-Renter.com.
Next post: Cost-Effective Ways to Advertise Your Rental Property
Posted by Teresa on February 4, 2009 under Landlord Tips, Tenant Screening & Background Checks |
A just-released study confirms what property managers and landlords already know: rents are down, and so are occupancy rates.
The reporting agency, Realfacts, covered nearly 3.2 million rental units in 60 MSAs (Metropolitan Statistical Areas). The study indicates the highest average drop in rents occurred in Florida, California, and Arizona, where declines ranged from 1.6% to 2.4%.
Additionally, the national average rent dropped below $1,000 in December, 2008, to $993. And there’s more not-so-good news: occupancy dropped in 2008, ending up at 93% for year’s end. This translates into more than 10,000 vacant apartment units.
As expected, the number of units added in 2008’s shaky economy dropped. The study showed that while an average of 65,000 units were added annually over the past ten years, 2008’s increase was only 9,248—a huge decline, reflecting both the tightening of credit and the concerns of nervous investors, who could be waiting for rents to swing back up before taking on new development.
Flat or declining rents, coupled with an average 4% increase in expenses, would make any landlord anxious. The good news is that smart landlords and property managers can successfully ride out the downturn, poised to prosper when the economy starts growing again—as it inevitably will.
While it’s more important than ever to tighten up procedures and control cash flow, don’t overlook reducing your risk. Haste can certainly make waste if procedures are pushed aside in order to fill vacancies. Go slowly and be careful—and consider implementing new policies that can increase occupancy and reduce your risk.
5 Must-Dos for Every Landlord
- Plan: Plan for occupancy, not vacancy: As soon as a tenant vacates, be ready to move the next one in.
- Pre-Screen Tenants: Now is not the time to take on tenants who cannot handle the rent or have a negative renting history. Screen before you offer any rental agreement.
- Market your property: Present it and sell it as strongly as you can.
- Keep advertising: But investigate lower-cost advertising methods to save cash.
- Don’t keep it to yourself: tell friends, family, and co-workers about your property, even when it’s occupied. The more folks know, the more they can help you when it’s time to hang up the “For Rent” sign.
Source: Realfacts
Next post: Marketing Your Rental Property in a Tough Economy
Posted by Teresa on January 24, 2009 under Rents and Deposits |
The law in each state regulates rental security deposits, giving specific requirements for how money is held during the lease and how the return of that deposit is handled at the end of the lease.
Landlords may be required to hold the security deposit in a separate bank account, and if there is interest earned the laws may indicate who is to receive that interest. Additionally, the state laws will specify the timing of the return of the deposit to the tenant, and usually require a written explanation of any amount retained by the landlord.
Posted by Teresa on January 20, 2009 under Rents and Deposits |
It’s important to clarify the difference between a security deposit and advance payment of rent. A security deposit is given from a tenant to the landlord to be held in the event there is damage to the property, caused by the tenant.
Advance payment of rent equal to a full or partial month is sometimes collected, to assure the landlord will receive the final month’s rent when the tenant vacates. A security deposit cannot be used by the tenant for that last month’s rent.
The tenant needs to pay the rent on time (or risk being in default of the terms of the lease). The security deposit is then returned to the tenant (the terms of that are addressed by the lease and by state laws).
Reduce the possibility of late or non-payment of rents and disputed deposits with effective
tenant screening from
E-Renter USA.
Posted by Teresa on January 13, 2009 under Landlord Paperwork and Forms |
There are many pre-printed lease forms, and they may suit your purposes just fine. It is always acceptable to change certain items on a pre-printed form, as long as all parties who will sign the document also initial those changes.
You can, of course, also choose to create your own lease (although you should check your local laws or contact an attorney for advice). If you do want to create your own, these are some common items to include in a lease:
- names of all parties
- description of the rental property
- term of the lease
- amount of rent and when that rent is due
- all details regarding security deposit
- what happens in the event of default of any party
- if there is a late fee (and in what amount and when it is due)
- is a business allowed on the property
- does disturbing other tenants constitute default of the lease
- duties of both parties with regard to maintenance
- what happens at the end of the lease term
- under what conditions is the landlord allowed to enter the property
- who pays attorney fees in the event of a lawsuit
- are pets allowed (and details)
- what happens if the landlord dies or sells the building during the term of the lease
Posted by Teresa on January 10, 2009 under Landlord and Tenant FAQs |
Of course, it is your property and you should choose how you manage it. You should always do research so you know as much about your choices as possible. Section 8 housing programs are designed to help very low income families, people with disabilities, and the elderly find affordable housing.
If you become familiar with the programs, you can benefit from Section 8 housing programs as well. After you are approved as a landlord for Section 8 tenants:
- your tenants will come to you already approved
- many of these people are very eager to have a new start in life
- they have been made very aware that if they get evicted from your property, they lose their approval for Section 8 housing
The local Section 8 housing authority will be paying a large share of your rent each month for the Section 8 units, and it arrives on time each month. The remaining rent you will collect from the tenants, who generally pay promptly. They know that there is a waiting list of eligible renters, so they are good tenants.
Posted by Teresa on January 6, 2009 under Eviction |
When rental property becomes uninhabitable and the tenant no longer has full use and possession of a rental property, that tenant can claim Constructive Eviction to relieve the obligation to pay rent to the landlord. A tenant must take several steps to claim Constructive Eviction:
- The tenant must serve the landlord with a written notice of the construction eviction
- Tenant must also provide the landlord with a reasonable period of time to correct the situation.
- If the defects are not corrected within that reasonable period of time, the tenant then may be able to leave the property without being responsible for payment of rent otherwise due under the lease.
- In most cases, the tenant must physically move out of the property, and then sue for damages, etc.
