PropertyManager.com » Marc Courtenay

How to Attract “Generation Y” Residents for Your Rental Properties

Marc Courtenay — Mon, 23 Jan 2012 20:05:33 +0000

Believe it or not, there are up to 80 million people between the ages of 16 and 29 who will be filling your vacancies in the year ahead. They are often called “Generation Y.” Also known as the “Echo Boomers”, they are the children of that other gigantic demographic, The Baby Boomers (those born between 1946 and 1964). Born between 1981 and 1995, they’re already having a huge impact on entire segments of the economy. And as the population ages, they will become the next dominant generation of Americans. So whether you call them “echo boomers,” “Generation Y” or “millennials,” they already comprise nearly a third of the U.S. population, and currently spend $180 billion a year of their own and their parents’ money. They are a force to be reckoned with and not to be ignored.

How to Attract Them to Fill Your Vacancies?

To begin with, you have to reach them on a technological level. They don’t read newspapers and aren’t likely to even read their mail. They are multi-taskers with smart phones, iPads, music downloads, and text-messaging on their Internet-connected devices. They are totally plugged-in citizens of a worldwide community. Communicate to them like their favorite smart phone and computer-tablet company does. Have you been to an Apple store lately? It’s absolutely packed with Echo Boomers! Think about it, do you know anyone between the ages of 16 and 29 that doesn’t have either an iPhone, an iPod,or an iPad?

Go to Apple’s website and see for yourself how they grab and hold the attention of this enormous generation. Watch the videos that they use to speak to the heart of their interests and how Apple motivates them. When it comes to having a place to live, this generation doesn’t mind living with their parents as long as tolerably possible. Yet at some point they want their privacy and independence. What they don’t seem to want is the responsibility or financial obligations involved in owning their own place. My own two (my daughter, a Generation Xer, and my son born in 1981) both have chosen to rent or lease their respective housing.

Forbes recently had a relevant article titled, “Housing the Echo Boomers—Next Big Real Estate Opportunity?” and it is a must-read for property managers who want to attract this age group. In the section titled, “What Will They Want?” the author emphasizes that “…most of Generation Y seem to want modest homes, the demand of which may be indicative of their young age. But it might also represent a demographic shift against large housing that is often overpriced and unnecessary.”

So if you’re using smart phone and online applications to advertise rental properties to this group, make sure you focus on affordability, easy upkeep, and the manageable size of your rentals. The Echo Boomers have been polled in recent years, and they value not only economy, but also ecology. They want to live in as green and environmentally-friendly a home as possible. If your units are energy efficient and have features that show respect for the planet, make that part of the theme for your advertisement. Appeal to their priorities and let them know that you understand what they’re looking for.

This massive generational group is rediscovering the joys of marriage, partnering and raising a family. Again, reach them through their technologies and stress that your rental housing is close to work, school and their kind of social areas. Accentuate the point that housing which is centrally located will save them money so that they can afford other things in the area and be closer to where they work or can find additional employment.

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Rental Housing and Apartment Rental Market Trends for 2012

Marc Courtenay — Wed, 04 Jan 2012 20:40:48 +0000

The year 2011 will go down in history as the year when the rental housing and multifamily apartment rental markets began to tip in favor of owners and landlords. In many areas in the U.S. like Los Angeles, Dallas, Phoenix, Chicago and Miami, the vacancy rates lowered compared to 2010.

Other areas like Cleveland, Ohio, Denver, Colorado, Houston, Texas, Atlanta, Georgia as well as the San Francisco-Oakland Bay Areas of California saw vacancy rates flatten out or improve somewhat during 2011, according to the National Association of Realtors (NAR).

The 2012 Forecast for Multifamily Rental Markets

The apartment rental market (aka multifamily rental housing) is expected to see vacancy rates drop from a nationwide average of 5.0 percent in the fourth quarter of 2011 to 4.3 percent in the fourth quarter of 2012, again according to the NAR. Multifamily vacancy rates below 5 percent generally are considered a landlord’s market with demand-supply factors usually leading to higher rents and higher capitalization rates for owners.

Areas in the U.S. with the lowest multifamily vacancy rates currently are Minneapolis, Minnesota, 2.4 percent; New York City, 2.7 percent; and Portland, Oregon, at 2.8 percent. According to the NAR, the average apartment rent was projected to rise 2.5 percent by the end of 2011 and another 3.5 percent in 2012. That’s an amazing 40% increase year-over-year! Multifamily net absorption is likely to be around 238,400 units all tolled for 2011 and 126,600 in 2012. The number apparently drops in 2012 because of a considerable reduction in supply. The true measure of change in total demand is net absorption. Gross absorption is often an inappropriate and potentially misleading indicator in terms of understanding and evaluating changes in total demand for rental units.

How Rental Housing is Being Advertised and Vacancies Filled

2012 will see the expansion of rental housing being advertised online or via sites that correlate to the explosive growth in the usage of Smart Phones and tablets such as the Apple’s iPad. The following video is a reminder of how many property managers around the nation are choosing to advertise vacant rentals using the worldwide web and why (click here). Property managers are also finding that social networking sites, like Facebook and Twitter, can be another great channel to market vacancies. Specialty websites like RentVine.com have been used by an increasing number of owners and property managers to expand their advertising of vacancies online. That trend should continue and grow in 2012.

The number of houses going into foreclosure increased exponentially in 2011. As a result, the number of displaced former homeowners looking for rentals increased to record levels. The good news is that the year 2012 looks very bright and promising for the property management industry and for both single and multifamily rental housing owners.

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What Property Managers Need to Know Now About the Real Estate Market

Marc Courtenay — Fri, 30 Dec 2011 16:00:31 +0000

If you ask 5 different realtors in your area how the real estate market is fairing, you’re likely to get 5 different responses. The reason for this is that there is a great deal of confusion and uncertainty right now. How many homes are in foreclosure or about to go into foreclosure seems to be a well-guarded secret. Add to that the growing number of homes that have been taken off the market and are being rented for the time being and you can see why the accurate supply figures on unsold homes is skewed.

Key Factors to Keep Your Eye On

First, it’s the challenge of borrowing money, a.k.a. qualifying for a mortgage. The standards for qualifying are stricter than they’ve been for many years, and only those with top credit scores are able to qualify for the lowest rates. Interest rates would be the next key factor going forward. Real estate interest rates are important, not just because of the debt service one pays. They’re also critical because all value in real estate is determined by capitalization rates. If interest rates increase, cap rates increase. This would be devastating to values. Many analysts think the risk of rising interest rates far outweighs any reward present in today’s market. Unless an owner can qualify for a very reasonable, fixed longer-term rate, it may be difficult to charge enough rent to service the debt and the operating costs of the rental unit. Sure enough, operating expenses are the next key factor to focus on. We’ve already witnessed expenses increase for every product type, in all areas. That’s how inflation will continue to have a major impact on the value of real estate. In fact it already has, and if inflation suddenly increases it will impact wages, cost of materials and other operating expenses.

Next, be aware of the kind of prospective renters that are out there looking for a place to live. There are more extremes appearing. There are some extremely qualified people who have lost their homes due to the “upside down” valuation implosion on their homes. There are also a growing number of unemployed and under-employed people who are having to lower their standard of living while at the same time having to move to less expensive rental housing. Many new apartment complexes are in the process of being built. I’m told anecdotally that rarely have many areas seen as many apartment units planned as are now on the drawing board. In Denver for instance, there are at least 14,000 units planned or under construction. This will all be financed through Fannie Mae, Freddie Mae, or HUD. In addition, the rents that are needed for these new multifamily units are high and going higher. This is due to the increasing construction costs.

Reports from around the country are telling us that the housing market under $250,000 is active and apparently stabilizing. However, the more expensive “jumbo loan” home market is deteriorating steadily. As you know, the GSEs (Government Sponsored Enterprise) and HUD doesn’t finance homes over $417,000 in most of the country. That’s why if a home buyer requires a loan over that amount, it’s very likely that they’ll have to come up with the money themselves for 20-25% of the price of the house. So, a borrower looking to finance a home with a price of $500,000 will likely have to write a check for at least $100,000 to get the loan. In this day and age of volatility and negative savings, there aren’t many borrowers who can do that. As a result, the jumbo markets are severely impacted.

The Bottom Line

Efforts are under way by lenders and the GSEs to organize rental programs for single-family homes becoming available due to foreclosures. Once available, a rental home has far more appeal to a resident than an apartment. This is especially true for prospective renters who formerly were home owners. That’s why the houses usually rent faster than apartments in many areas of the country. This is an anomaly we should watch carefully. When one considers this reality and the other risk factors confronting real estate, investors are seeing that building new apartments could be a risky proposition in these times. We are most likely at least another year away from the bottom of this housing price slump. The price of houses in your area may not drop much further, but their recovery may be at least 5 to 10 years away. Rents are not going up in all areas, but operating expenses are. Know what the trends are in your areas of operation and know them accurately.

Property managers need to streamline the application and screening process of filling vacancies. Finding good renters in this economy is becoming a numbers game. The better you know the condition of the housing market in your area, and the more potential renters you can reach and process, the more you’ll succeed.

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Celebrate the New Year with your Staff: 4 Fun Ideas

Marc Courtenay — Thu, 08 Dec 2011 19:10:26 +0000

The year 2012 is almost upon us. You staff has worked long and hard to fill the vacancies, please the residents and fulfill the expectations of your clients. So it’s time to show them how much your appreciation while at the same time reinforcing their positive efforts to help your property management business to grow and “flourish.”

Fun Idea #1: Organize a “Progressive Dinner.” For decades this has been a popular way for friends and colleagues to enjoy a fine meal while having a chance to visit several places all in the same evening. At a Progressive Dinner you’ll be experiencing a meal together where each course is served at a different participant’s home. This way the party literally moves from one place to another throughout the evening. This fun experience works especially well for a group where the members live close to one another, or within a 5-mile radius. Ask for volunteers to be designated drivers, and carpool with at least four people per car. If the weather and proximities allow, it’s even more fun to walk between locations. This facilitates getting exercise and digestion between courses! When planning your dinner, you should schedule no more than 3-4 courses. Beyond that the logistics become too complicated with too much traveling. In planning this, make sure you allow about three hours for the evening’s experience. You’ll want to also plan for about 45 minutes at each location. You can find lots of good tips and delightful ways to organize a Progressive Dinner by going to web sites like the following.

Fun Idea #2: Rent a school gymnasium and/or cafeteria while school is out and have a “fun-and-games” luncheon and afternoon. This has worked well for groups and companies that I have managed. Whether the facilities allow you to have sports games like volleyball, badminton and basketball, or you just make it an afternoon of board games and card games, it will be a blast! Cater an inexpensive lunch by asking a local restaurant or popular fast-food place to pack up enough box-lunches and drinks for your group. Then when the eating is over, let the games begin! Ask some of your more sociable, creative employees to decide what games to play. They can ask each staff member to bring the needed equipment, cards and/or games. This really doesn’t take a lot of planning, but you should get started soon. You could even plan on doing it after New Year’s when many people have the “post-holiday blues” and need something to look forward to.

Fun Idea #3: Sponsor a contest where everyone ends up winning a prize. Choose quality prizes like a one month guest pass to a fitness center (call the manager and ask them to give you some free, trial membership passes). Make “the contest” a fun experience for all. Perhaps it’s the theme of solving a mystery or coming up with smart ideas for improving client relationships and communications with residents. Ask each staff member to take a “stab” at it, and have prizes for participation as well as coming up with the answers and the best suggestions.

Fun Idea #4: Have a “Hot, Tropical Theme Party” during the cold, drab winter. Contact a local fun-oriented eatery that either has a tropical décor or a place like “Pizza Time Theater”. Choose a time of the day when they need the business (often mid-afternoon) and have everyone who attends wear tropical clothing (under their jackets and coats). Ask the management of the eatery to provide some decorations. Then have them turn up the lights (and the heat) and provide some Hawaiian music or all the hits from The Beach Boys. Encourage attendees to dance or do karaoke. You can find some neat tips on this idea by clicking right here or by using your favorite online Search Engine. Just be creative and ask some of your staff to help you think of ways to make this event fun for everyone.

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How to Select a Property Manager

Marc Courtenay — Mon, 21 Nov 2011 19:49:35 +0000

Yes, I’m aware that this is an unusual title for an article on this website. A recent set of circumstances helped me to realize that property managers might want to know how owners and investors go about selecting a manager for their property.

A close personal acquaintance called me last week and said, “I just purchased a residential property that is far from where I live. Can you give me some suggestions and criteria concerning how to find a really competent property manager? After referring them to this web site (www.propertymanager.com) I discovered another organizational website specifically tailored to the needs of landlords. Take a look at http://www.landlordassociation.org/management.html. Take special note of the information and section titles as well as the origin of this organization. Landlord Association.Org is an online company developed by property investors and landlords who want to extend information and services to others who are involved in real estate investing throughout the United States. Their self-expressed primary objective is “… to become your best single point of entry for information, ideas, knowledge, and resources which can help you make or save thousands of dollars each year. Landlord Association believes the “tricks of the trade” can often best be taught by business peers.”

They navigated me to an article titled “How to Choose a Property Manager” which is publicly available at http://www.rentalprop.com/prop-mgmt/property-manager.htm. This was the first time in awhile that I’d considered this topic from the point of view of those who are looking for competent property management. They say the best way to understand what your residents, clients and owners need is to “put yourself in their shoes”, or to “walk a mile in their moccasins”.

Well, it happens to be good advice, and this article helped me see what potential clients of yours are looking for. In fact, it was one of the articles that I sent to the above-mentioned acquaintance who was asking me for my help as they began their search. The first thing that caught my attention were the six questions that were posed by an individual who was thinking of turning his house into a rental and needed to find a good property manager:

What are my responsibilities as the property owner?

What are the responsibilities as the property manager?

Approximately how much would it cost to have the property managed and maintained by a property manager?

What kinds of questions do I need to ask when trying to choose a property manager?

What expenses would be tax deductible? Is the interest paid on the mortgage (or any part thereof) still deductible?

If you can provide me with a list of available resources that can help me answer these questions and the many others that I have, I would greatly appreciate it.
If we keep in mind what clients and residents are looking for when it comes to property management, we could be the answer and the solution. Be prepared and you’ll be just that!

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Renting vs. Owning: The Rent Ratio

Marc Courtenay — Thu, 03 Nov 2011 18:01:28 +0000

The buy-versus-rent question is particularly relevant right now as we see home prices continuing to decline and interest rates on new mortgages also going down to the lowest levels in 60 years.
Back in April of 2010 The New York Times did an impressive job of explaining the ratio that helps define whether it is economically more sensible for residents to buy or rent their housing. Part of the purpose of the article was to help those looking for housing to decide. http://www.nytimes.com/interactive/2010/04/20/business/20100420-rent-ratios-table.html

The Times analysis is based on comparing the costs of buying and renting a similar home, using data from Moody’s Economy.com, a research firm, and from real estate agents. This kind of comparison can never tell someone for sure what the best financial move will be. However, it does show whether a buyer will need a big jump in future prices to cover all the costs of owning — including the down payment, closing costs, property taxes, mortgage interest, repairs and co-op fees.

A simple way to do the comparison is to look at something called the rent ratio: the purchase price of a house divided by the annual cost of renting a similar one. The number 20 provides a useful rule of thumb. When you do the math, you discover that a ratio above 20 means you should at least consider renting, especially if you may move again in the next five years or so. When the ratio is well below 20, the case for buying becomes a lot stronger.

In many large metropolitan areas, including New York, Los Angeles, Chicago, Houston, Dallas, Atlanta and South Florida, the average ratio is now 16 or lower. It was more than 25 in several of these places at the peak of the bubble, about five years ago. Recently The Times asked Mark Zandi the chief economist at Moody’s Analytics about the chances of yet another housing crash happening and his current analysis of “The Rent Ratio”. His answers are revealing:

Q. I’m struck by how much higher the rent ratio still is in many places, relative to its average from 1990 to 2010. It’s about 18 in Washington (relative to a 1990-2010 average of 13), about 17 in Boston (relative to 15) and 15 across all metropolitan areas (relative to 11). Is there any reason to think the ratio should remain higher in the future than it was in the not-too-distant past? Or should we expect the ratio to continue falling in coming years, either through further house-price declines or through rent increases?

Mr. Zandi: I expect the house-price-to-rent ratio to continue falling at least through the remainder of this year and next. National house prices are set to decline by 5 percent this year, and apartment rents are on track to rise by about 5 percent. I do expect home prices to stabilize in 2012, but rents will continue to rise strongly. Supporting the strong rent growth is declining apartment vacancy rates. Apartment demand is healthy given the better job market and accelerating household formation, particularly among younger households that generally rent, and the ongoing foreclosure crisis which is forcing families from home ownership into renting. Apartment construction is also especially low by historical standards. If this script roughly holds, the house-price-to-rent ratio will be back close to its long-run average in most areas of the country by 2013.

Q. When we were talking earlier, you mentioned that a straight comparison of rents and home prices argues for renting in most places — but that once you consider other factors, the issue becomes a closer call. Can you explain what you meant?

Mr. Zandi: A literal interpretation of the current house-price-to-rent ratio argues that it is still better for most households to rent rather than buy. This suggests that a prospective home buyer might want to wait until house prices fall even more before buying, but there are several important things to consider. Most of the coming house price declines will be for distressed properties — foreclosures and short sales. And timing the precise bottom of house prices is an intrepid affair, and may not the best strategy if the homeowner plans to live in their home for more than a couple of years, as most homeowners do. It is also important to keep in mind that mortgage rates are extraordinarily low, with the rate on a 30-year fixed rate mortgage currently well below 5 percent. Rates could go lower, but it is unlikely. As the economy continues to gain traction and the Federal Reserve ends its zero interest rate policy, mortgage rates will move higher. Indeed, in a well-functioning economy fixed mortgage rates will be closer to 6 percent.

The entire interview can be found at http://economix.blogs.nytimes.com/2011/05/11/is-another-housing-crash-coming/?scp=6&sq=rent%20ratio&st=Search The still high price-to-rent ratio means that home buyers shouldn’t be in a rush to buy a home, but owning is quickly looking more attractive, and it won’t be long before owning is once again more financially attractive than renting.

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Grow Your Property Management Business with New Investors

Marc Courtenay — Thu, 20 Oct 2011 15:00:48 +0000

Just yesterday I interviewed a local bank manager (the branch manager for one of the largest banking and financial services companies in the United States). To help supplement his meager income he is buying distressed houses and duplexes that are selling “dirt cheap” in areas where property taxes are lower and vacancies are fewer. Using his knowledge and connection within the world of banking, he mapped out a way to buy one property at a time, fill them with residents, and then leverage these properties to buy more.

“It takes money to make money” the adage goes. So do as I did, and become familiar with the latest banking and financing strategies. Talk to bankers and loan officers so you know the latest “tricks of the trade,” and make sure you speak their language so you can gain credibility in their eyes. Be aware of all the latest tax advantages of owning residential rental property. Take a look at the IRS (Internal Revenue Service) site that goes into all the tax laws and incentives. One of the best places to start this search is at the IRS index page. Everything you’ll need to know is found there, from depreciation to the rules concerning personal use of a rental unit. It even gives many useful ideas on how to find tax help and where to locate low-income taxpayer clinics.

Know the reasons why now is the best time to own residential rental income property. This isn’t a cliché, but an actual fact. If you can get in front of groups of potential rental income investors (service clubs, investment clubs, and fraternal organizations) you’ll need to know the reasons and be able to discuss why potential investors shouldn’t delay by hoping for better times.

These are the “better times”, when interest rates are their historical lowest and the number of people needing rental housing is growing exponentially with each passing year. As one publication stated it, “However, in real estate, the right time, the most advantageous time, is always the present. Real estate investing is not like stock market investing. It is not a game of chance where the investor must speculate whether it is the right time to get in or out of the market. “In fact, the only unprofitable prudent Multi-Family/Residential Income Property investments made in the last fifty years, even during times of severe economic hardship, were the ones that never closed escrow.”

“The truth is that profitable real estate investments have little to do with the economic climate at the time of the purchase. Many investors are afraid to close on the first transaction because they want the economy to turn around first. They want everything to be perfect before jumping in. “This is impractical and unreasonable. Successful real estate investing requires the investor to be informed, disciplined and ready to evaluate the current and future profitability of a property.

“Waiting for the “right time” to buy does nothing more than delay success. Prosperity comes as one takes action, not when one sits and waits.” Read the rest of that article and become more familiar with how to motivate investors to take action by studying web sites like http://www.yourincomeproperty.com/the-university/residential-income-property-investing/. Sites like this one can help you learn how to form real estate investor syndicates. More specific information on that topic can be found at http://www.towardswealth.com/node/285. One of the best ways to create more clients for your property management business is to create them and mentor them. If you’re willing to try you’ll see what I mean and you’ll learn so much in the process.

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Let Your Owners Know You’re a Source for Real Estate News

Marc Courtenay — Mon, 03 Oct 2011 21:47:00 +0000

Rental property owners want managers who are keeping up with the latest trends and keeping their eyes peeled for ways to help their clients prosper. One of the ways you can impress them is by being the “conduit” of news about lucrative opportunities in today’s fast-changing economy. You can call them about the latest industry news. Give them some ideas on how they can take advantage of today’s real estate and financial trends. Impress them with your creativity and business acumen.

Many property managers are using emails and online “newsletters” to highlight what’s happening in the rental property market and the latest trends in interest rates and financing. Mortgage Rates are Falling and Mortgage Default Rates are Rising: “Carpe Diem!” Fixed mortgage rates fell to the lowest level in six decades for the second straight week. But few Americans can take advantage of the historically low rates because they are unable to qualify for new loans or refinanced mortgages. Freddie Mac said on Thursday September 15th that the average rate on the 30-year fixed mortgage fell to 4.09 percent this week, down from 4.12 percent. That’s the lowest rate seen in 60 years, going all the way back to 1951. The average rate on the 15-year mortgage, a popular refinancing option, fell to 3.30 percent from 3.33 percent. Economists say it is likely the lowest rate on the 15-year ever. Mortgage rates tend to track the yield on the 10-year Treasury note. Worries over Europe’s debt crisis are pushing investors to shift money into safe Treasuries, forcing the yield lower.

Let your clients and any qualified residential rental property investors that now is the best time ever to find new financing on homes to buy. If they have existing mortgage loans that are at higher rates or loans that are about to expire, recommend some eager lenders in your area who will help them take advantage of these record low interest rates. Some lenders are very motivated to offer financing in areas where the number of people needing affordable rental housing meets or exceeds the current supply. Many of these lenders are lowering and even waiving the loan charges and origination fees.

Today we learned that default notices sent to delinquent U.S. homeowners surged 33 percent in August from the previous month. Why is that important? Because it’s a sign that lenders are speeding up the foreclosure process after almost a year of delays, said RealtyTrac Inc. (http://www.realtytrac.com/trendcenter/trend.html).

California, Florida and Michigan were leading the nation in foreclosure activity as of the end of August. Nationwide 1 out of every 570 housing units received a foreclosure filing in August 2011. So the number of dislocated, former homeowners continues to increase. Their income may still be adequate though, and they’ll be looking for affordable rental housing.

Lenders seized 64,813 properties in August, a 4 percent decline from the previous month and a 32 percent slump from a year earlier, according to RealtyTrac. However some industry analysts are predicting that the jump in default notices means repossessions will probably increase in coming months as more foreclosures are processed. Some incredibly good “deals” on houses and duplexes appear to be growing in number around the nation.

Let your owners know this is “the best of both worlds”—low buy-in prices and record low interest rates with many motivated lenders. That’s a “perfect storm” for increasing your client’s rental unit inventory, and increasing your income. Meantime you’re owner-clients will realize you’re the “heads up” property manager who’s looking for ways to keep them prosperous and their rental income expanding.

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4 Easy Ways to Attract More Applicants for Your Vacant Rentals

Marc Courtenay — Wed, 28 Sep 2011 23:29:36 +0000

Success, like great ideas, is not always in the conspicuous or necessarily intuitive. Some of life’s most important solutions lie just below the surface of the “Sea of the Obvious.” Let’s look at 4 simple ideas that will motivate and facilitate the rental application process so you can draw a larger number of applicants like metal shavings to a powerful magnet.

Create a way for applicants to apply online. The technology to do this is already exists and some better, faster options are on the immediate horizon. When you advertise your listings, highlight how the application process is simple and fast, and give them a link or web address. To learn more yourself I suggest you check out the following: http://www.appfolio.com/property-management/online_rental_application

Spread the word with shameless enthusiasm. Often with the good intention of looking professional or being overly concerned with appearing desperate, we narrow our solicitation strategy. From Craigslist to Facebook to LinkedIn to your local media’s online services, there are many ways to attract applicants. Consider some inexpensive advertising, but try and think outside the box. A good example is to advertise with companies that give free information, have millions of “page views” and “unique visitors” per month, and know how to use the internet to attract “eyeballs” and brand yourself online. A trusted source that I’m aware of can be found at www.maps.com/Advertising. Contact them and see what kind of special promotional offers they currently have available.

Create some strategic alliances with realtors, credit unions and independent merchants in your area who need your help. Find creative ways to “cross-promote” and incentivize them to keep their ears open or post “for rent” notices in their stores and offices. If you’ll help other businesspeople in your community to reach their goals, they’re likely to want to help you reach yours. Along the way you’ll learn more creative ways to fill those vacancies and make your management business more profitable.

Contact all your existing residents and sponsor a resident referral program. For example, offer a $30, one-time rent reduction for every qualified (you set the criteria for what constitutes qualified) referral who fills out a rental or lease application. You may also want to offer a one-time, one-month-only rent credit if your existing resident refers a potential renter to you and that referral actually signs a rental agreement and moves in.

There are many other clever ways to motivate applicants to apply. If you have a good idea or a helpful suggestion, please leave a comment at the end of this article. Thanks!

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Rental Applications: Knowing the Rules and Requirements

Marc Courtenay — Fri, 16 Sep 2011 23:44:57 +0000

As property managers, we confront the ever-changing process of attracting and qualifying new residents to fill vacancies. With the legal landscape also changing, it’s increasingly important to understand the laws governing rental applications in the state where we manage our rental properties.

Let’s begin with the state having the largest population; California. Here’s what a potential renter is told on the state’s web site for information by The Department of Consumer Affairs on the topic of “Looking for a Rental Unit” (http://www.dca.ca.gov/publications/landlordbook/looking.shtml): “Before renting to you, most landlords will ask you to fill out a written rental application form. A rental application is different from a rental agreement. The rental application is like a job or credit application. The landlord will use it to decide whether to rent to you.” Then it lists all the information that a rental application form will probably ask for and reminds the potential renter, “The application also may contain an authorization for the landlord to obtain a copy of your credit report, which will show the landlord how you have handled your financial obligations in the past.”

No matter what state you’re operating your property management business in, it pays to carefully study the instructions and clarifications that the state is posting to educate the public on their rights and the responsibilities of owner-landlords.

One of the other most populous states is Florida. The Division of Consumer Services of the Florida Department of Agriculture and Consumer Services has a similar page which explains the highlights of “Florida’s Landlord/Tenant Law—Summary of Chapter 83, Part II—Florida Statutes” (http://www.800helpfla.com/landlord_text.html). The State of Florida has its own style of explaining the “Oral and Written Rental Agreements” which they succinctly describe as follows: “A rental agreement is an agreement to rent property (commonly referred to as leases). Rental agreements may be either written or oral. “Most rental agreements are written because oral agreements can be subject to misunderstandings and are difficult to prove. A written rental agreement can be a formal contract, or simply a copy of a letter stating the rights and obligations of both the landlord and tenant. “Florida law requires that notices to and from a landlord must be in writing, even if the rental agreement is oral. You should always retain a copy of any correspondence to and from your landlord.”
Section 83.46(2), F. S.

“If the rental agreement contains no provision as to duration of the tenancy, the duration is determined by the periods for which rent is payable (week-to-week, month-to-month, etc.). All other terms are either those specifically addressed by law or those that are part of the agreement between you and your landlord.”

My point is that as property managers we need both continuing updates and sometimes legal guidance on what the state laws dictate and how they may have been recently changed and interpreted. Before you go to any great expense, locate, print out and study the specific text in your state’s website and make sure your rental applications comply specifically with the rules that protect the rights of anyone who may be applying to fill one of your vacancies.

In future articles I hope to offer more ideas on ways to simplify the process of making sure you have a rental agreement that is consumer-friendly and legally “bullet-proof”.

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