From Rags To Riches in Rental Properties

The most important aspect of managing your property is to know your location. At what prices ranges are other people renting. What types of amenities come standard and what type are available. How does your rental compare to other units in the area. If you know the answers to these question you will be able to rent your unit in a timely manner. Also reducing the rent by $50 is loosing $600 per year. If the unit sits vacant for three months you have lost much more than that. Make sure you view other properties in your neighborhood so that you have enough information to make informed decisions.

Learn the applicable landlord tenant laws in your area. In some cases tenants know them better than the land lords, so This is very important.

Advertise correctly. For the past 2 years, I have put zero “FOR RENT” signs in my front yards they advertise that your place is vacant. I advertise on free websites like Craigslist, Plugged-In, and other local websites that cater to young profesionals. (This is another reason you want to be familiar your market.) These sites typically attract a higher quality tenant. This tenant is not a life time renter, but a young professional needing a nice place to live until they buy a house. In these cases, if you offer additional amenities, you can often get a higher rent. Why would anyone pay for an ad in a local paper? These websites work and they are free.

Offer a referral program. I have a policy that if you refer a friend and that friend signs a 1-year lease, I will give you 1/2 off next months rent. This is a great program! My best advertisers are my current tenants. I make my places nice and I stay on top of problems that arise quickly and in a friendly manner. This makes my tenants happy to refer their friends and family to my rental units.

Do a brief background check. No one is perfect. With today’s economy being what it is, I am very understanding when it comes to poor credit. I am more concerned with evictions on a background check. An eviction is a last resort measure. This means the landlord tried everything they could to make it work. To me if someone has been evicted, they were real bad tenants. I don’t want problems, I want income.

Get a local real estate lawyer to write a lease for you. If they have experience in writing leases they probably have a good one already written up. You can also take one you have downloaded to them and have them look it over. A good lease up front can save you headaches in the end.

Be flexible on your rent. When it comes to rent, I am flexible. Let’s say I want $800 per month for rent, but a tenant offers to pay $750 per month. If I wait I may be able to get more rent from another tenant. If however, I don’t rent it this month, I just lost $750! It will take me 15 months at $800 per month to break even. If I don’t rent it for two months, it will take me 30 months to make up that lost rent. This is where I think a bird in the hand is worth two in the bush. If I make a concession for lower rent, I will only do it if I get something in return, like the tenant agreeing to yard work or snow removal.

Hire a crew. I can fix just about any little problem that arises in my units, and I don’t pay myself. However, I have three handymen who work part time. This way I am not inconvenienced by late night calls, evening calls, early morning calls, or Sunday calls. I have three In case I can’t get a hold of the first two. My tenants are important to me, and so is my family. I have back ups so that I don’t have to make a choice between them. When I have a family commitment I call my handymen. Everyone is happy, most importantly my family!

Stay on top of problems. The number 1 complaint from tenants is that their landlords are not responsive to problems that arise in their units. No one cares if the kitchen sink is clogged, as long as someone comes to fix it in a timely manner. Leave it clogged, and they will move out. I tell my tenants that all maintenance calls will be answered in person within 24 hours (see “Hire a Handyman”) and I honor that commitment. Do this and you will have happy tenants.

Become a friend and your tenant will want to take care of your property. Thank your customers (your tenants). If I were selling copiers or pharmaceuticals this would be obvious. Why is renting an apartment any different? Sending a holiday card, or congratulating a tenant on the birth of a new child, you may be viewed as more of a friend than a landlord. Become a friend and your tenant will communicate problems to you rather than just moving out. Become a friend and your tenants will refer their friends to you.

Erin Cureton Medina Ohio is the managing partner of Cureton Property Alliance. Erin Cureton Medina Ohio Flips and rents houses in Lakewood and Akron, OH. Erin Recommends Solid Ground Construction for Kitchen Remodeling Westlake Ohio and Co-Op Optic for eye glasses Cuyahoga Falls Ohio.

categories: Real Estate,Rent,Finance,Business,mortgage,home,house,property managment

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