Know the rental market you are working in. The number 1 key to successfully managing rental properties is to know your marketplace. What is the right price point for your unit? How nice is your rental versus others in the neighborhood? What types of amenities are standard? Knowing the answers to these questions is usually the difference between renting your unit in 2 weeks or 6 months. The easiest way to find the answers to these questions is to call other rentals in your area and schedule a showing. You want to view as many apartments in your area as you can so that you have great knowledge about the marketplace that you are competing in.
know the local rental laws in your area. This is very important. Not much more to say. Follow the laws. If you don’t, they could cost you a lot of money.
Advertise in the right places. For the past 2 years, I have put zero “FOR RENT” signs in my front yards. I advertise on free websites like Craigslist, Plugged-In, and other local websites that cater to renters. (This is another reason you want to know the marketplace.) These websites typically attract a higher quality tenant. This tenant is not a life time renter, but a young professional needing a nice place to live. In this case, if you make your place nice, 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.
Many people buy a lease from an office supply store, these are cookie cutter contracts that may not fit your situation. I also think they send the wrong message to a Judge if you have a problem (which is the law was an after thought when we signed the lease.) Find a local attorney who has experience in residential real estate. Plus they may help refer you some business.
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 3 handymen, why just in case the first two are busy. I can fix just about any small problem that arises in my rentals, and I don’t pay myself anything. However, I have 3 men who work part time. Why? So I am not inconvenienced by evening calls, late night calls, early morning calls, or weekend calls. Why do I have 3 of them? In case I can’t get a hold of the first 2. My tenants are very important to me, but so is my family. So that I don’t have to make a choice between them, I call my handymen. Everyone is happy, most importantly me!
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.
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 want to take care of your property. 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 is the managing partner of Cureton Property Alliance. Erin Cureton Flips and rents houses in Lakewood and Akron, OH. Erin Recommends Solid Ground Construction for Kitchen Remodeling Avon Lake and Co-Op Optic for eye glasses Cuyahoga Falls Ohio.