I recently had dinner with a friend's brother who has a home on the California coast. He's toying with moving out of state and is wondering about leasing his home.
He asked me how to choose a property manager. I advised him to first see who is a member of Narpm in his area. www.narpm.org It's a professional organization of property managers and membership is a sign of quality although not a guarantee.
I would stay with a local company, someone who's within 1/2 hr of his property. Anyone further away than that will have trouble showing the property as frequently as necessary and may not have vendors located close enough to respond in a timely manner for repairs.
I recommended he interview firms and ask what their services cover. How will his property be advertised? What costs are covered in the management fee and what costs are extra? Don't agree to a low management fee only to find out lots of services are extra charges. Kind of like air travel today!
My friend asked if the property could be inspected monthly. I told him many firms will do an annual survey but not monthly--that would interfere with the tenants' quiet enjoyment of their home.
I advised him to look for firms that lease similarly priced properties in his area. They'll be experienced with owners who are leasing out their personal homes and although the decision to lease is financial it can still be an emotional challenge.
Friday, May 17, 2013
When Roomies Go South
Found a place you love but can't quite swing the rent on your own? Or maybe you and your bff have so much fun together you've decided to share a roof.
Understand all the ramifications before you sign a lease together. Your landlord will have all roommates on one lease and each is jointly and severally responsible for the rent. That's legalese that means each roommate is responsible not for his "portion" of the rent but for all the rent. If your roommate has a sketchy job history think twice about living together as you will have to come up with all the rent if he loses his job.
What if your roommate wants to vacate but you want to stay? Your landlord most likely will not return any security deposit until all tenants have vacated so you will have to negotiate any deposit return directly with your roommate.
This may not seem fair to you especially if there's any bad blood between you and your roommate. But remember you chose each other. Your landlord did not put the two or three of you together and is not responsible for resolving disputes among you.
If you are a roommate who's vacating make sure that your landlord takes you off the lease. Otherwise you could move out, your prior roommate not pay the rent and you be named in an eviction. There's that old "jointly and severally" again.
If you're a fan of "Big Bang Theory" you may chuckle when Sheldon mentions the roommate agreement but it's not such a bad idea--treat a roommate as a business partner and understand all the financial details of sharing a home together.
Understand all the ramifications before you sign a lease together. Your landlord will have all roommates on one lease and each is jointly and severally responsible for the rent. That's legalese that means each roommate is responsible not for his "portion" of the rent but for all the rent. If your roommate has a sketchy job history think twice about living together as you will have to come up with all the rent if he loses his job.
What if your roommate wants to vacate but you want to stay? Your landlord most likely will not return any security deposit until all tenants have vacated so you will have to negotiate any deposit return directly with your roommate.
This may not seem fair to you especially if there's any bad blood between you and your roommate. But remember you chose each other. Your landlord did not put the two or three of you together and is not responsible for resolving disputes among you.
If you are a roommate who's vacating make sure that your landlord takes you off the lease. Otherwise you could move out, your prior roommate not pay the rent and you be named in an eviction. There's that old "jointly and severally" again.
If you're a fan of "Big Bang Theory" you may chuckle when Sheldon mentions the roommate agreement but it's not such a bad idea--treat a roommate as a business partner and understand all the financial details of sharing a home together.
Tuesday, February 5, 2013
No Joe Fridays
Many factors contribute to short vacancies and quick turns of empty units. You have to know your market and present your units well. Immaculate and with appropriate updates. Price them well and respond quickly to requests for showing. Good signage and well chosen web advertising.
Many tenants will begin their search on the web and your ad has to be attractive enough to convince them to take a closer look. If your ad is their first impression of the unit and it doesn't grab them they'll keep looking elsewhere.
Some ads read like Joe Friday wrote them. Just the facts, Ma'am. Yes ads must be factual, must not be misleading and must not violate any laws. But that doesn't mean they have to be boring! A boring ad is a missed opportunity. A well written creative ad is a great tool in your arsenal to shorten vacancies. When I sit down to write an ad first I look at the unit. I take photos that demonstrate the size of the rooms and then also take close-ups of any details. An unusual light, cabinet handle or doorknob, any item that updates your unit and makes it less "cookie cutter". I photograph trees and plants outside the unit and any common amenities like pools, playgrounds, etc.
I sit down with the photos and a list of the unit's features. I list features of the surrounding area. Is it close to public transportation, schools, commuter friendly, parks, Starbuck's, farmer's markets. I then write the ad as if the tenant is already living there.
"Enjoy your morning coffee sitting on the expansive front porch".
"Soak away the cares of the day in the master whirlpool tub".
"Enjoy spending time with your guests as you whip up a quick bite in the open kitchen".
Picture the tenant in the unit, in the neighborhood, and describe living there.
Once you have the ad written the title is crucial. On websites such as Craigslist the title is the first thing an applicant notices. If it doesn't reel her in she won't click on the ad. Decide what the most salient features of your unit are and make sure they're in the title.
Sell the sizzle.
Many tenants will begin their search on the web and your ad has to be attractive enough to convince them to take a closer look. If your ad is their first impression of the unit and it doesn't grab them they'll keep looking elsewhere.
Some ads read like Joe Friday wrote them. Just the facts, Ma'am. Yes ads must be factual, must not be misleading and must not violate any laws. But that doesn't mean they have to be boring! A boring ad is a missed opportunity. A well written creative ad is a great tool in your arsenal to shorten vacancies. When I sit down to write an ad first I look at the unit. I take photos that demonstrate the size of the rooms and then also take close-ups of any details. An unusual light, cabinet handle or doorknob, any item that updates your unit and makes it less "cookie cutter". I photograph trees and plants outside the unit and any common amenities like pools, playgrounds, etc.
I sit down with the photos and a list of the unit's features. I list features of the surrounding area. Is it close to public transportation, schools, commuter friendly, parks, Starbuck's, farmer's markets. I then write the ad as if the tenant is already living there.
"Enjoy your morning coffee sitting on the expansive front porch".
"Soak away the cares of the day in the master whirlpool tub".
"Enjoy spending time with your guests as you whip up a quick bite in the open kitchen".
Picture the tenant in the unit, in the neighborhood, and describe living there.
Once you have the ad written the title is crucial. On websites such as Craigslist the title is the first thing an applicant notices. If it doesn't reel her in she won't click on the ad. Decide what the most salient features of your unit are and make sure they're in the title.
Sell the sizzle.
Tuesday, November 20, 2012
Panic Button
Nobody likes a vacancy as it means nobody's making money. Keeping a vacancy as short as possible is one of the most valuable jobs a property manager can do for an owner.
Owners first need to budget for vacancies and expect them. It's unrealistic to think 100% of your units will be 100% occupied. Even if you have responsible reliable long term tenants life happens and people will occasionally move.
So how can you get those properties filled as quickly as possible? First get them ready to show. Here's where it pays to know your market. If you're new at landlording surf the net and check out your competition on craigslist or other websites. If your competition is holding open houses show up at one and take note of upgrades and amenities. What are the salient points stressed in your competitors' ads? That will help you decide what improvements will draw applicants. In my area of Southern California garage space isn't a deal breaker but if you're in a colder climate it may be. Some areas that I cover prefer hardwood floors to carpet. Other areas find every landlord willing to accept dogs. Do your homework and know your local market and then improve your units accordingly.
The cheapest improvement is fresh paint. Pick neutral colors but be more adventurous than the ubiquitous Swiss Coffee. If the kitchen has wooden cabinets instead of painting top and bottom cabinets white make the bottom ones slightly darker. No price difference for you and your units will stand out. If your budget for improvements needs improvement at the very least make the unit sparkling clean and paint if at all possible.
Okay, the work's been done, ready to show, now what? Back to researching your market. Price your unit competitively. If you want to try for a higher price don't hang onto it for too long. If you don't get any bites after 2 weeks, time to lower.
Put up signs, load the listing on your website, place internet ads and respond quickly to calls or emails.
During slower markets or times of year you may want to offer an incentive. In a multi unit building you may offer a rent credit to exisiting tenants for anyone they refer who signs a lease. You may advertise 13th month free to qualified applicants.
If your unit shows well and you've had several viewings but no applications your price is probably too high.
In your haste to rent don't skimp on your screening. Remember the only thing worse than a vacant unit is an occupied unit and a tenant who isn't paying. Or even worse than that an occupied unit with a tenant who isn't paying and is damaging your property.
Owners first need to budget for vacancies and expect them. It's unrealistic to think 100% of your units will be 100% occupied. Even if you have responsible reliable long term tenants life happens and people will occasionally move.
So how can you get those properties filled as quickly as possible? First get them ready to show. Here's where it pays to know your market. If you're new at landlording surf the net and check out your competition on craigslist or other websites. If your competition is holding open houses show up at one and take note of upgrades and amenities. What are the salient points stressed in your competitors' ads? That will help you decide what improvements will draw applicants. In my area of Southern California garage space isn't a deal breaker but if you're in a colder climate it may be. Some areas that I cover prefer hardwood floors to carpet. Other areas find every landlord willing to accept dogs. Do your homework and know your local market and then improve your units accordingly.
The cheapest improvement is fresh paint. Pick neutral colors but be more adventurous than the ubiquitous Swiss Coffee. If the kitchen has wooden cabinets instead of painting top and bottom cabinets white make the bottom ones slightly darker. No price difference for you and your units will stand out. If your budget for improvements needs improvement at the very least make the unit sparkling clean and paint if at all possible.
Okay, the work's been done, ready to show, now what? Back to researching your market. Price your unit competitively. If you want to try for a higher price don't hang onto it for too long. If you don't get any bites after 2 weeks, time to lower.
Put up signs, load the listing on your website, place internet ads and respond quickly to calls or emails.
During slower markets or times of year you may want to offer an incentive. In a multi unit building you may offer a rent credit to exisiting tenants for anyone they refer who signs a lease. You may advertise 13th month free to qualified applicants.
If your unit shows well and you've had several viewings but no applications your price is probably too high.
In your haste to rent don't skimp on your screening. Remember the only thing worse than a vacant unit is an occupied unit and a tenant who isn't paying. Or even worse than that an occupied unit with a tenant who isn't paying and is damaging your property.
Monday, October 22, 2012
When in Doubt Check your Gut
Scams probably date back to Adam and Eve but with the advent of the internet there are new twists to scams and applicants need to beware.
Scammers may target property managers as well as tenants but we have more ways to verify information. We ask for id, we run your credit, we verify your income and we talk to your current landlord. If you want to scam us you could fudge some of those categories but not likely all of them. And then there's the big guns tool we use to vet you as a tenant: our gut. If it doesn't feel right we sit on our heels and ponder.
I have had several new tenants tell me about internet scams. Our most popular website for posting available leases is Craigslist. Scammers often copy our ads and put a ridiculously low price on our rentals. So how do you seperate the legitimate from the illegitimate?
Beware if someone is willing to rent property to you before you view it.
Beware if the price is seriously under market. If it sounds too good to be true it is.
Beware if the leasing agent does not have an office. If his only contact is by phone.
Beware if you're asked to pay a deposit or rent before viewing the unit. You can be asked for an application fee and that amount varies by state but never pay a deposit or rent before personally viewing the unit.
If your leasing agent is licensed check your state's Department of Real Estate website to verify the license.
Remember your ultimate tool: your gut. If it doesn't feel right walk away.
Scammers may target property managers as well as tenants but we have more ways to verify information. We ask for id, we run your credit, we verify your income and we talk to your current landlord. If you want to scam us you could fudge some of those categories but not likely all of them. And then there's the big guns tool we use to vet you as a tenant: our gut. If it doesn't feel right we sit on our heels and ponder.
I have had several new tenants tell me about internet scams. Our most popular website for posting available leases is Craigslist. Scammers often copy our ads and put a ridiculously low price on our rentals. So how do you seperate the legitimate from the illegitimate?
Beware if someone is willing to rent property to you before you view it.
Beware if the price is seriously under market. If it sounds too good to be true it is.
Beware if the leasing agent does not have an office. If his only contact is by phone.
Beware if you're asked to pay a deposit or rent before viewing the unit. You can be asked for an application fee and that amount varies by state but never pay a deposit or rent before personally viewing the unit.
If your leasing agent is licensed check your state's Department of Real Estate website to verify the license.
Remember your ultimate tool: your gut. If it doesn't feel right walk away.
Thursday, June 28, 2012
Ya Can't Take It With Ya
You've made your house a home, feathered your nest and now you're moving. What can you take with you and what stays with the property?
If you changed out anything on the property, like light fixtures, cabinet handles, door knobs, etc. they stay unless you kept the original ones and are re-installing them before you move out.
If you shared the cost of any floor improvements the floor improvements stay and you will probably not be reimbursed for your share since you enjoyed living with the improvement and it is now no longer new.
Was there a yard that you put some plants in? Unless they're in pots you cannot remove them.
If you upgraded any existing appliances those will probably stay too unless you clearly discussed that with your landlord before you spent the money.
If you changed out anything on the property, like light fixtures, cabinet handles, door knobs, etc. they stay unless you kept the original ones and are re-installing them before you move out.
If you shared the cost of any floor improvements the floor improvements stay and you will probably not be reimbursed for your share since you enjoyed living with the improvement and it is now no longer new.
Was there a yard that you put some plants in? Unless they're in pots you cannot remove them.
If you upgraded any existing appliances those will probably stay too unless you clearly discussed that with your landlord before you spent the money.
Friday, June 15, 2012
Wanted: Ideal Landlord
Wanted: Ideal Landlord
Will maintain property. Will respond promptly to maintenance requests. Will not raise voice even though tenant may raise his. Will clearly explain lease and delineate expectations with tenant. Will not divulge personal information. Will charge fair rents. Will have emergency number available for after hours calls. Will not enter rental units without notice except in case of emergency when tenant is unreachable. Will not charge extra for credit counseling, interior decorating, roommate mediation or psychotherapy.
Will maintain property. Will respond promptly to maintenance requests. Will not raise voice even though tenant may raise his. Will clearly explain lease and delineate expectations with tenant. Will not divulge personal information. Will charge fair rents. Will have emergency number available for after hours calls. Will not enter rental units without notice except in case of emergency when tenant is unreachable. Will not charge extra for credit counseling, interior decorating, roommate mediation or psychotherapy.
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