The Landabout Blog

Making Property Management Manageable.

Good reads: This week in property management

A bizarre bedbug twist: Former Fox News reporter sues the landlord, case is thrown out.  If that doesn’t make you itchy enough, more on bedbugs.

A payout in waiting, another reminder that maintenance is king.

Interesting Q & A on month to month, when your tenants are house hunting.

Doubly good news in the Twin Cities, low vacancy and rent hikes to come.  And in Denver too!

How do you look at prospects’ income and obligations?  A new Harvard study says renters spend more.  The WSJ says it has to do with scarcity in affordable housing.

Cuomo gets aggressive about rent rules.

Tenant-Landlord coalition in Vancouver warns of supply trouble ahead in the local market

According to one analysis, rapidly rising food costs may soon encroach on tenants’ ability to pay rent.

What not to do about rising energy costs.

If you’ve made a few touchdowns, career-wise, maybe you can spring for Madden’s digs.  If that feels cramped, how about Lichtenstein?

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , , , , ,

Good reads: This week in property management

Landlords take a stand in Minnesota and file suit over new ordinances.

From Australia, another lesson in checking and rechecking the insurance coverage on your investment property.

There must be at least 1,000 other ways to get rid of squirrels…

 Proposed federal spending cuts could have an effect on Section 8, inspections, dollars available for repairs, etc.

The Wall Street Journal on the very high stakes, different game for developers in China

Good things to come?  Rental vacancies expected to drop, rents expected to rise

Just rolled out:  Zillow takes on rental estimates.

Always a party:  rent control in the spotlight (again) in NYC.  And, in the city’s unique housing market, is it better to rent or buy

This week in “we can’t make this up”…Missing property report and squatters have a go at starting a school in Guy Ritchie’s mansion, currently under renovation.

Filed under: Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, , , , , , , , , , , , , , , , , ,

Good reads: This week in property management

The best holiday gift? Signs of recovery in the rental market.

The gifts keep on coming…occupancy improving and Denver is boomingRents are rising too.

Here’s an area that hasn’t seen many gifts in recently…multifamily starts expected to rise.

Role reversal…Advice to tenants on finding a good landlord, from a landlord.  Also, what your landlord isn’t telling you from the WSJ.

Priceless comments:  You’ve heard of the crazy that is the NY rental market, now read about what landlords in the area are asking for.

Sex and the (Giant) Salary: SJP snags a really expensive NYC apartment.

Filed under: General Information, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , , ,

Good reads: This week in property management

Fun landlord find of the week:  Boom!  WWII explosives.

Speaking of boom, rent at gunpoint?

And…no less explosive:  A very chilly lawsuit in NY.

The good news is a mile high:  Rental outlook positive in Denver.

Rethinking the 60 day notice…death should probably get y0u off the hook.

Is the rent too damn high?  Meet Rent-O-Meter, tenant tool that can come in handy on the other side as well.

Looking to rent the perfect spot for a heroin packaging mill?  The first step is choosing a low profile location.

Not loving the satellite dish bouquet look?  DirectTV hopes they have your answer.

 

 

Filed under: General Information, Landabout Features, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, , , , , , , , , , , , ,

Raising the rent: The smoothest ways to handle one of your bumpiest tasks

It happens to all of us, everywhere. A few more pennies for milk, an extra dollar to fill up your tank. The cost of living our lives changes regularly, and the cost of doing business is no different. As a result, you will eventually find yourself in the position of asking your tenants to pay more in rent. Despite the fact that they will greet the news with no more enthusiasm than you do when you pay that extra dollar at the pump, at the end of the day most tenants will accept reasonable increases as a normal and predictable shift in their cost of living.

For your part, failing to initiate rental adjustments because of a fear of confrontation or vacancy makes very little business sense and can cost you thousands. Undercharging becomes a greater hurdle with each passing lease period, as the market continues to command more around you and your tenants become even more comfortable and complacent (and far more likely to balk at change, when it does come). Charging slightly less than market comps to keep tenants is a good strategy, charging significantly less is foolish. Do the math and determine which is more expensive–a five year tenant underpaying by $600 a year, or the cost of attracting a new tenant who will pay what your property is worth.

Naturally, you can remove this task from the “fun” column. It will never be pleasant, and you can count on some fallout. Fortunately, there are ways to make it as trouble-free as possible for both sides, and in some situations maybe even as (relatively) painless as shelling out that extra nickel for a gallon of milk.

Tips and tricks for when it’s time to raise the rent:

  • Prepare in advance for vacancies created by those already at the top of their spending limit. With each rent increase, you should assume that you will not have 100% retention. Keep your advertising, marketing, and social media efforts strong at all times to keep your pipeline of prospective tenants full
  • Rent increases can be structured annually, biannually, or at your own chosen intervals taking economic & market conditions into consideration. Whatever increase schedule you choose, remember that the longer you wait between adjustments the greater the likelihood of pushback
  • Do not schedule increases for fall and winter, or in the middle of a lease term. In addition to the cruelty factor in forcing your tenants to amend their budgets around the holidays, if they do choose to leave, units that turn over in the colder months are more likely to stay vacant until spring
  • If using a lease from a book or online form library, study the rent adjustment language closely and make any necessary corrections to section(s) that would bar you from making increases. If you’ve just taken over a property, be mindful of the language in tenants’ existing leases and make changes at renewal time. Discuss changes clearly with tenants before they sign a new lease under your management
  • Plan to give your tenants more notice than your state requires when preparing for a rent increase, a policy that helps all involved. Most states require 30-90 days, but if you don’t have an annual planned increase try to exceed the required period of notice. Some would say this gives the tenant extra time to drop their renewal and find a new place to live, but know that it works both ways…you’ll have extra time to replace tenants who don’t choose to stay
  • Weigh the benefits of freezing an rent hike in exchange for a longer lease period. If tenant loyalty is a goal over cashflow, give your tenant the opportunity to lock in for 18-24 months and enjoy the security of having rented unit for a longer period of time
  • Keep all things equal. It’s never a good idea to raise the rent for some tenants and not for others (obvious exceptions being optional long term lease freezes mentioned above). Tenants will talk, and not only is an arbitrary rent increase system a lawsuit waiting to happen, it’s generally an unfair business practice. If you’re using rent increases to chase away problem tenants, it’s best to look into other ways to tighten the screws
  • Check on and stay up to date with local rent control requirements. Rent control in your region is likely something you’re already on top of as an owner or property manager, but as with most regulation it’s very costly to be misinformed or uninformed
  • As a rule, gradual increases are better received than large jumps. Your tenants live by a budget just as you do, and tweaking the balance sheet by $25 each month is generally easier to swallow than, say, a larger amount like $100. Naturally the real figures vary wildly, but bear in mind that some of your tenants may already be spending up to 40%-50% of their take home pay on housing. Jumps in rent of even 10-15% can turn a spending plan that’s already tight on its head

Above all, the bottom line is that you are in the property management business to turn a profit and provide a service.  Rent increases are a necessary evil, and you should not be apologetic about running your business in a fiscally prudent manner.

Filed under: General Information, Landabout Features, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , ,

Successfully taking the “zombie” out of property management


As a property manager, you’ve probably seen everything. In a world with deity-laced grilled cheese sandwiches and television shows about women who turn their uteruses into clown cars, protecting oneself and one’s property from the ever rising tide of crazy is no longer as straightforward as it used to be. It could even be said that the statement, “When hell is full, the Undead will walk the Earth” has never been more real. While we don’t have access to the data, chances are good that things are close to capacity downstairs. Therefore, it’s best to prepare, do your research, and be willing to pound some zombie cranium if duty calls.

Surviving a zombie attack begins with recognition. Knowing your enemy is the first step, and, fortunately for us humans, zombies aren’t practiced in camouflage. A zombie will display a set of very distinct characteristics, but what separates the victims from the survivors is the ability to know them at a glance and take serious, immediate action. Because zombies can be mistaken fairly easily for your garden variety vagrant or drunk, pay particular attention to a subject’s keen, unnatural interest in brains and his or her indifference to the odor and unsightly nature of decomposing flesh. A zombie is also far less personable than a drunk, and will lack even the most basic communication skills.

Immediately following confirmation of an attack, know that you will not have a great deal of time to collect yourself. This is why preparation is so imperative, but more on that later. As a human, you possess a number of skills that will play to your advantage. The first is your brain (ironically the one bit of you your enemy craves). Learn to recognize the weapon in everyday objects, and look for creative barricading solutions. By choosing to stay with your property and defend it, you are accepting a challenge, but not an insurmountable one. Please note that you should never use a basement as a bunker, or any area that has an entrance but no exit. If you are forced to flee, choose a path with a low zombie density, arm yourself, and move quickly. Their erratic form of locomotion makes most zombies slow, and outrunning them shouldn’t be a concern. Keep your eyes open, and know your route before you go.

The first step in defense is reinforcing all windows and doors and collecting your survival materials. Because there are a number of tasks to manage in a very short time, you should take on this project with as many uninfected buddies as possible. Remember that reanimation can take up to 24 hours, so make it clear to all of those on your team that anyone presenting with zombie symptoms will be taken out immediately, no questions asked. Members of your group will learn very quickly that a zombie attack allows for none of the following: emotion, nostalgia, or jokes.

To lock down your building, preparing in advance is the key. For property managers, we recommend filling a storage unit on premises with zombie attack essentials. Note: Unless prospective tenants ask about zombie readiness, it is best to omit this information during tours and showings. A complete zombie preparedness kit should include:

  • A dozen or more rechargeable chainsaws. Keep an eye out for sales and ask about buying in bulk. While guns and other firearms are effective when aimed correctly, it is difficult to keep the amount of ammunition on hand required to withstand a long-term attack, and you’ll likely find yourself in the midst of the paperwork hassle of an FBI watchlist.
  • Stackable 5 gallon buckets for water collection. Gathering as much tap water as possible as quickly as possible should be a priority. Assume that all municipal utilities and systems will be lost almost immediately. Also on this note, prepare to shed any ideas you maintain about modesty and toilet use.
  • A collection of coats, pants and other clothing made of a sturdy material such as leather, as well as a number of cycling and other helmets. Designs should offer cover to more vulnerable parts of the body like the neck and arms, and most importantly, your head. These items have the added advantage of being easily explained away to the suspicious, as you have simply been saving them to donate to a disadvantaged motorcylists’ club.
  • Foodstuffs that will not break down over a term of days, months, or even years, and (for the most severe attacks) seeds and soil for indoor gardening. Foods with long term staying power include Twinkies and Ding Dongs, or essentially anything with a name that sounds more like an insult than a snack.
  • A supply of random, innocuous garden tools, crowbars, and combustible cleaning products to use as a backup weapon supply. These items will chop and burn things nicely and run solely on human power, a plus if or when your supplies run scarce.

In terms of additional preparation, take note of any tenants and neighbors who may exhibit a predilection toward zombie safety and awareness. These people may ask you about extra storage space for the 1,000 freeze dried military rations they purchased on eBay (just in case) or openly talk about helping a “friend” build a bomb shelter just before Y2K. These are the people who will be your trusted allies and partners in a zombie attack, so it’s wise to stay close.

Finally, some basics for surviving an attack that every property manager should know:

  • Location, location, location. Think carefully before investing in a property located near a cemetery or morgue. Because zombies will initially emerge from these areas, you’ve just purchased a little bit of zombie ground zero.
  • Make good use of outdoor mats and rugs. Not only will they reduce slippage and accidents for your tenants, they make for easy cleanup in the event of a brief zombie attack. Rinse and resume.
  • Practice cracking soft, slow, round things open. As everyone knows, the only way to permanently un-animate a zombie is to destroy its brain. This process will get easier over time, and rest assured the zombie you’re disposing of won’t feel a thing. Basic decapitation, while cool and satisfying, leaves you exposed to risk that the separated parts of the zombie will still function. If you opt to use this technique by accident or for sport, be sure to finish the job immediately. Zombies are as persistent as they are unattractive, and will pursue their pleasures even in the midst of serious injury.
  • In the end, zombie management is an every man for himself game. Choose your partners wisely and stay together for as long as possible, but always be ready to destroy some rotten brain—even if that rotten brain used to be the tenant who was always a month ahead on his rent and offered to help with the landscaping.

Reprinted from the Landabout Blog, 2009. Happy Halloween!

Filed under: General Information, Green Building, Landabout Features, Links, Mission Statement, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , , , , , , ,

Manage like a Yankee

Love them or hate them (and let’s face it, there really is no gray area), the New York Yankees know how to succeed in business. Even if you cringe at the mere sight of those stripes and are only rooting for injuries this playoff season, there are very few who wouldn’t give their eye teeth to have more Yankee-style triumphs on the job.

What can we learn from the team whose enemies are as passionate as their fans? Quite a lot, and you can even maintain relationships with Bostonians while you study up. Evil Empire or Greatest Team that Ever Played the Game, here’s the good stuff we can all take away. You know you’re playing like a Yankee when you:

Act As If

Act as if the game is already yours, like those other guys on the field are simply a formality. Act as if your vacancies are already filled and your waiting list is already growing. To be clear, this is not about swagger or arrogance. Rather, it is simply the opposite of desperation.

Rental incentives, while nice and arguably required these days, can cheapen your product if handled the wrong way. As a professional property manager, you work hard to offer a nice place to call home and provide your tenants with impeccable customer service. Chasing your prospects out the door with free iPods and extended periods of free rent may attract the sort of tenants who bail as soon as the perks dry up. Worse, it can leave others walking away wondering about fine print or hidden horrors. You and your staff should exude an air of confidence that comes with knowing you’re offering a great residence and great service. Save the iPods for the pool party, or as a gift of appreciation for signing that lease.

Pay for Talent

Fortunately for property managers, leasing office Jeters are far less expensive than the shortstop variety. However, it doesn’t mean they come cheap.

Turnover can be one of the most expensive hurdles your business faces. Happy employees tend to stay put, and they make sure they’re putting all they can into their performance. Certainly money isn’t the only thing that makes a happy employee, but it’s definitely high on the list. If you’re not already getting creative with your benefits package, start looking into ideas like flex time or a 401K plan/match to supplement salaries. Most driven individuals are eager to work on a pay for performance basis, which gives you the opportunity to offer innovative bonuses for those who do the most to help the business. Doling out a bit of extra cash for 100% occupancy? Sounds like a win.

Inspire Loyalty

Remember Johnny Damon’s famous hair? It became a lot less important when he was offered a Yankee uniform. What’s the only thing that would make a player scarcely blink before surrendering a trademark to the barber, or lead a fan to risk life and limb to walk into Fenway? Why loyalty, of course.

For you, keeping your tenants and staff true only to you needn’t come with mounds of cash or a decades long history in the business. Fair business practices and honest, personable service is more than half the battle. It’s okay to follow your own rules and still deal with problems on a case by case basis. In a human business that asks you to grant a fair amount of deference to human shortcomings, you are allowed to be firm and understanding all at once. Be a good employer, be a good landlord, and in this Internet age you can watch it come back to you in online reviews and social media sites. Yes, your tenants’ Facebook friends put more stock in what they say on there than anything you could say in your advertising.

Get Noticed

It didn’t take long for the population to start turning out jokes about the new Steinbrenner memorial at Yankee Stadium being one of the few things you can see from space. It is true that making dwarves of DiMaggio and Ruth is one way to get remembered, but fortunately there are a lot of other ways to leave a mighty impression and don’t require the Steinbrenner fortune.

Start getting noticed by getting involved in your community in positive ways. Volunteer, sponsor community events, and join your local Chamber of Commerce and/or Apartment Association. Even a backyard BBQ to help a local charitable organization can put you a handshake away from the people you serve. To meet the people who can help you take your business to the next level, it’s important to stay in the game.

Filed under: General Information, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , ,

Good reads: This week in property management

Have we exhaled yet?  Nope, it appears potential buyers still renting.

Go Pack Go…rent your game day digs now.

Two words you just don’t hear together that often: vacant and Manhattan.

The ongoing saga of the landlord and the weed takes to the streets.

That’s a whole lotta lead!  Landlord takes EPA fine of $83K for violations. If that doesn’t make you spit out your coffee, try $164K in asbestos.

From NY, shocking vandalism indeed: Swastikas!?

Landlord shares the rap on pitbull cruelty charge.  Nevermind, here’s a truly horrifying tenant pet story.

Meaningful discussion comes from “garbage properties” accusation hurled in Dubuque, IA.

Filed under: General Information, Green Building, Landabout Features, Links, Mission Statement, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , , , , ,

Good reads: This week in property management

Mold and sewage and Hermine and…gardening? Oh my, landord can be a dirty job.  Sometimes, a little too dirty.

Good landlord alert:  An act of kindness in Louisiana.

Trend alert: Using a realtor for rentals.

Who turned up the heat in Chinatown?

When explosives in the apartment aren’t enough…  Alabama and eviction laws.

School’s back in session, and the targets have been identified.

Waiting for your shot at the show?  How about (sort of) free rent at the Reno Aces clubhouse.  Arizona DBacks 2nd baseman admits to squatting.

Santa Cruz becomes the latest city to monitor rentals.

Look, the horses were only in the bar for a minute.  Scottish landlord in trouble for horsing around.

Filed under: General Information, Landabout Features, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , , , , , ,

Good reads: This week in property management

Want to green it up?  See Multi-family g for tips on boosting value and pleasing tenants. 

Sending your kids to college?  You may want to make sure you’re not footing the bill for University Presidents Gone Wild.  Landlord from hell, or tenant from hell?  You decide.

A hot issue that won’t go away…Smoking in rental units under fire in Tacoma.

Speaking of being under fire, absentee landlords get a closer look in VA.

Meth wins again, destroying 30 units in a Des Moines multi-family.

Holes in the story?  Three young people fall through a (relatively) small hole in an apartment floor.

Investment property owners (and all you reluctant landlords) pay attention!  Nice homes at rental rates within reach are all the rage.

Multi-family finds it difficult to touch down in Asheville.

Tenant kills landlord, self.  Money is the suspected culprit, which unfortunatelykind of makes it old news.

Everyone wants to be Mel Gibson.  Marilyn Manson’s ex suing over anti-semitic rant.

Filed under: General Information, Green Building, Links, Property Maintenance, Property Management Topics, Ramblings, Real Estate Investment, Urban Renewal, , , , , , , , , , , , , , ,

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