Ramey & Associates Inc.

Should I Rent From Family Members?

2012-02-24T06:53:00.000-08:00

If you're considering moving into an apartment run or owned by a relative, consider the following points first.

Make sure they can they can say no
Are you putting you relative in a tough spot? You might be in one yourself, but if you're forcing someone's hand, no one will benefit in the long run. If you really want it to work, give your family member/landlord an out, and see if he still offers you the place.

Don't assume you will pay less than the market rate
Not only would it be unfair to ask your relative to give you a discount, it could get him into financial trouble; as we've discussed before, renting for less than market rate can count as a financial gift on which he'd have to pay taxes, or as personal use, meaning he couldn't write off any maintenance or repairs as a business expense. Avoid these pitfalls, and pay what anyone else would be charged for the space.

Are you ready to be a really good tenant?
With family usually comes expectations. While you might be able to get away with paying your rent a little late or slightly damaging the baseboards at another property, your kin might be expecting more from you. Have an honest conversation about how the situation should play out, from both your perspectives. Setting boundaries is important in any relationship, but especially one complicated by mixing business transactions with personal ties. If you get the feeling that you'll need to be pitching in on repairs every weekend, it might be worth finding someplace better.

Will your relationship blossom?
On the other hand, if you can arrange it well, renting from a family member might result in a stronger bond. Again, clear communication is required to develop a healthy and sustainable working/personal connection.

--Caitlin Morgan

Crafty Curb Appeal

2012-02-23T08:09:00.001-08:00

By: Ashley Halligan, a property management analyst at Software Advice

Most property owners know the basics of curb appeal. Keep a property tidy, the lawn manicured, add fresh paint, etc....But in a growing market where niche rentals are becoming more popular, what can property owners do to stir more interest in a property and become more eye-catching to passerby? I interviewed Jared Meadors, owner of Medusa Properties in Houston, to pick his brain about his strategies on curb appeal.

Crafty curb appeal is an investment--but it's an investment that can prove quite valuable in the way of returns down the road. Meadors has built a small empire in Houston's rental property scene with a collection of boutique properties that renters love so much he rarely has vacancy issues.

He says, "People move right in after another because they love the property." The value of minimizing vacancy alone is reason enough to consider a little curbside uplift. So what does Meadors do?

1. Chooses properties carefully, them restore or add character--Meadors begins by investing in properties that he sees potential in. It can be a boring property at first glance, but was perhaps built in the '20s or '30s, giving him the opportunity to capitalize on an era. This can be done by adding appealing, era-specific touches that instantly enhance charm. It's in vogue to live in a rental that has a unique or authentically old feel.

2. Offer fencing or privacy buffers--Fencing is an easy (and often affordable) addition that can actually be quite valuable. Not only does fencing offer the definition of perimeter, a convenient addition for pet owners, and privacy, it also creates a buffer between the front door and the street. By creating a nook-like perimeter, tenants will appreciate the added privacy, it also creates a buffer between the front door and the street. By creating a nook-like perimeter, tenants will appreciate the added privacy.

3. Use interesting foliage--Foliage can offer more than beauty and aesthetic appeal to a property. It can also serve as an additional privacy measure in the case of climbing plants and flowers. use foliage as a way to draw attention to a property's features.

--Ashley Halligan, Property Management Software Guide, Austin, TX

No In-House Washer and Dryer? How to Make the Laundromat Less Awful

2012-02-22T08:23:00.000-08:00

It's a sad fact of life: many of us have no in-house laundry, and have to drag our stuff to the Laundromat whenever the pile of laundry starts to stink up the room. So how can you make these trips less frequent, and less annoying when they do happen? Read on.

Wash your sweaters by hand. Granted, not the most exciting of activities, but sweaters take up a huge amount of space tumbling around, and you should probably be hand washing (or dry cleaning) them anyway. Keep a separate basket for handwashing, and do them all at once on a slow evening. Think of it this way; at least your sink isn't three, long blocks away.

Don't wash your pants every time. Many of have the wear-'em-til-they're-stiff strategy down, but if you're the kind of person tosses your jeans into the hammer after one wear, think again. If there are no visible stains, they're not stretched out, and they don't smell, well, you should be wearing them again. Keep a special drawer or pile for almost-clean-and-should-be-worn-again-soon clothes. Sleep shirts can be usually be worn a few times, too, and almost-smelly tees can have a second wear as a workout shirt. This goes for towels, too! Towels NOT need to be washed after every use. You just scrubbed all the dirt off, for goodness's sake.

Hang your clothes. If it's rumpled and on the floor, you'll probably wash it out of paranoia. Hang things up as soon as they're clean or after light use, and you'll wash fewer things unnecessarily.

Separate whites and darks ahead of time. I had a boyfriend once (okay, I still have him, but he's reformed in this manner) who would avoid doing his laundry for weeks because it took so long to separate it all into lights and darks. I worked long and hard, wracked my brain, spent my life savings and...bought him a second hamper. If you can chuck your dirties directly into the laundry machine, it cuts down on a lot of time.

Have outside clothes for dirtier tasks like gardening. This way, you won't ruin clothing you could otherwise wear for the rest of the day (or two), and you can re-use your outdoor things several times before feeling the need to clean them.

Make good use of your Laundromat time. When you finally do end up at the Laundromat, make good use of your time. Take your computer and clean out your email inbox. Update your journal, or better yet, read a trashy novel you couldn't otherwise justify spending time on. Run short errands in between washes. If you use this time wisely, it will feel less like an irritating chore and more like time well spent.

--Caitlin Morgan

Property Management Banking Tips

2012-02-21T07:29:00.000-08:00

If you have decided to delve into the world of property management then the banking procedures will be a bit more involved than simply having a bank account, making your deposits and payments, and balancing the register at the end of the month. I want to stress that every state's laws are different. Much of what I talk about in this article relates to the best practices specific to the state of Washington.

The first rule of business is to establish a trust account with your commercial bank. Oddly enough, once you have sat through the session to get this going, do some telephone banking and ask the representative what kind of account you have set up to make sure it was actually set up as a trust account. Just because they tell you that it is a trust account doesn't mean it is. You have to follow up to make sure that the personal banker did their job correctly. You could find out the hard way that this account was never in fact a trust even if you were told it was. If it isn't a trust, then it will not be protected from potential seizure in the event of the bankruptcy or other issues with separate personal or business accounts. Do your due diligence and don't rely on the initial set up.

Additionally, you should not have any business operating funds coming into or out of this trust account. The account should only have tenant money or client money. All this money should be attached to a property. You must pay out a monthly commission as stipulated by all management agreements at least once monthly. The checks should also state that it is a property management trust account and the leases should state where and what bank the security deposits are held. If the owner of the property is holding the security deposit then you should hold back rental income in order to keep the security deposit in your trust because you are responsible for that deposit while you are managing the property.

The security deposits may be kept in the same account as the rental income but if you have many units with the same owner then it is advisable to get a separate interest bearing trust account and another trust account for the rental income. If you are dealing with multiple owners that do not have a large number of properties then it is better to get a combined account for both rental income and security deposits. If you have an interest bearing account you should be transferring the interest income to the owner. You will need to transfer the security deposit into the regular trust account before you can pay the owner any money from the refund due to charges as well.

If you keep a combined account, all the security deposits held on account as stated on the balance sheet and the rent roll register must match the accumulation of all the owner balances plus the security deposits. You must balance the rent roll with the balance sheet and the register with the bank statement each month. Failure to do so could put you out of compliance with the state and if you are not in balance each month, it could be a serious problem.

There should be two places for receipts, the computerized accounting system and the handwritten deposit ticket for all the payments. Copies of all checks should be kept, whether carbon or photocopied. Copies of all duplicate receipts should also be kept once the funds are deposited.

It is always a good idea to write a detailed process and policy for your property management banking to show that you are practicing due diligence with other people's money held in trust. This way anyone who handles the trust account is fully knowledgeable and accountable about the importance of practicing all the state law requirements.

The rules, regulations, and customary practices vary wildly across the country. As I mentioned above, these are some of the best practices for Washington. For example, in Washington, it is okay to comingle rent and security deposits in the same bank account, however it's a big no-no in Massachusetts, and in California it's customary for rental owners to hang onto the security deposit. Also remember that rules about reporting vary state to state, i.e., if it's not customary to get a full month's rent as security, then your rent roll won't tie to security deposit liability.

Clients put their trust in property managers and believe that they are doing the right thing. The way you handle your banking will solidify this trust with both clients and tenants, thus keeping you out of trouble!

Carla Toebe, New Century Realty, Kennewick, WA

Applying Green Principles in Property Management

2012-02-20T07:44:00.000-08:00

With sustainability becoming more important to the general population, there is an ever-increasing necessity to provide eco-friendly properties. The rise in popularity of green technologies has led an industry that was once seen as expensive and niche-based into one that has competitive prices for many aspects of the building process. With the decreasing initial price disadvantage combined with the always present efficiency positives, the green movement presents a good deal of incentive to implement more eco-friendly resources. With the majority of greenhouse gas emissions coming from buildings, incorporating sustainable processes in homes is vital for curbing the impact of global warming.

As a property manager, the bottom line is the strongest guide as to how a property is to be managed. Incorporating green strategies can be a very productive aspect of property management. A major incentive for providing eco-friendly aspects to homes are the tax breaks, whether on a local or national level. Whether it is windows, heating systems, or solar panels, incentivized government programs are out there waiting for people to take advantage. Along with tax incentives, the strategies of increased efficiency provide savings in the operating costs of residential buildings. In cases where utilities are included, the bottom line effect can really add up. If utilities are not included, the potential renter will, or at least should, recognize that their own personal utility bills would lower. This provides a key advantage over non-green buildings where potential customers will be left to wonder how inefficient their potential home might be.

Taking advantage of perceptions, good and bad, provides another opportunity for property managers to keep their bottom line strong. Creating an eco-friendly living environment can be a powerful marketing tool that keeps the properties filled. As previously stated, the green movement has been initiated into the mainstream consciousness. The reasons behind the two-fold: the growing recognition that the Earth's resources are being taxed by its people and the need to change that, and the cost effectiveness of more efficient models of building. Taking advantage of this newly invigorated social consciousness by offering people what they want creates a boon of public relations goodwill that will keep property managers busy with potential customers.

One final eco-friendly strategy that can help your bottom line is creating a paperless interface for your customers. Monthly statements, contracts, leases, and receipts are all things that can become paperless. This allows you to save paper for only the most necessary of jobs. With the rise in technology, from phones to tablets, more people are keeping digital records, so why not join in this movement and save some money on paper along the way?

With competitively priced green technologies, tax incentives, the obvious efficiency benefits, and the public relations goodwill, updating and expanding properties into more eco-friendly operations provides a strong compliment to your bottom line. Plus, it is becoming increasingly evident that it is the right thing to do. It seems to be a rare occasion where the right thing and the profitable thing travel the same arc, but the eco-friendly property is one of those cases!

--Samantha Harvey, General Waste Collection, Lancashire, United KIngdon

How to Handle an Abandoned Property

2012-02-17T07:44:00.000-08:00

They say that abandonment is a landlord's or property manager's worst nightmare when dealing with a tenant. How do you know it is really abandonment? Sometimes it's obvious when everything is gone, the place seems perfectly empty, and the tenant's keys are lying on the counter. But what if the place is full of furniture, the food is still in the cupboard, and you can't get ahold of them? They haven't paid their rent, they haven't returned your phone calls, no one has seen them, and you can't get ahold of anyone on the emergency contact form you had them complete when they moved in. Surely this means they must have abandoned the place. So you change the locks, and uh-oh! There they are coming back claiming you have now burglarized their place, and you took all the steps you had to take that were required by law.

Maybe it isn't that clear cut. Maybe a tenant still has some rights. Now you are facing penalties, a criminal investigation, and a whole slew of troubles you never knew you had. Let's back up and figure out how to determine that this is really abandonment and you have a right to take possession of your unit.

You spelled out what abandonment was with your tenant and you had written in the lease, right? Good, well at least you tried to get the tenant on board with your ideas. Unfortunately, they have forgotten about your request for them to tell you they have left, and to turn in their keys. That would be the easy thing to do. However, they don't want you to know they have left because they are in a hurry, that they are embarrassed that they have to leave owing rent, or that they had to leave things such a mess. They may not want to face you or deal with any of these responsibilities. Maybe they could have left a note telling you to dispose of everything there, and that they are not coming back.

Why didn't they think of these things for you? Unfortunately, abandonment isn't always so sweet and simple. Usually you have to determine without any doubt and with full public notice of some sort that you intend to declare the place abandoned. You also have to hold onto any property left for so many days prior to disposing or selling it. Each state has their own set of laws and it is very important to become familiar with the particulars of the process to establish abandonment because that tenant could come back. Now you are expected to return everything that you just disposed of because you thought it was left behind.

Write your abandonment process down if you haven't already so that tenants, anyone who works for you taking care of the units, and owners who are hands on, consistently follow the appropriate process. Make sure that your complete process complies with the state laws. It may be helpful to have an attorney review it.

Typically in order to establish abandonment, the tenant must be late on the rent and they must have not responded to a 3 day notice to pay or quit that you mailed and put on their door. They have also not responded to an abandonment notice that you put on their door for all to see after 48 hours. What if they are just gone for 5 days and forgot to pay rent? Well you need to start calling their personal phone numbers, work numbers, relatives, friends, neighbors, and anyone you can think of that might know them in order to validate that they are really gone. You need to check and see if their vehicles have been parked there at all during this time. You also need to check with the utility companies to see if any service has been disconnected. In other words, ask around, do some investigating, and document all that you have done.

Once you are inside because the evidence all points to the fact that they have abandoned the unit, take a picture of that abandonment notice still stuck to the door and a picture and/or video of everything inside that has been left behind. Carefully store all items that are clearly not garbage and place it into a safe and secure location for the length of time required by law. I don't know how many times I have seen someone dump everything outside for all bargain hunters in the neighborhood to come around and clear away. Do not fall into that temptation as appealing as it sounds! It is the worst thing to do and it is not worth the potential harm that a little effort would prevent. Do the right things, know the laws, and know what the process should be.

If you are a tenant, please let someone know that you have left. If you don't, it will cost you more money in the long run than it would if you just let your landlord or property manager know when you left the property. Avoid getting into legal troubles over abandonment, turn in your keys and leave a note!

--Carla Toebe, New Century Realty, Kennewick, WA

Never Put Off Until Tomorrow

2012-02-16T08:39:00.000-08:00

Touch It Once is a mindset, a philosophy, and a management style. It is the antithesis of procrastination coupled with a smart way to work by stopping redundant behavior dead in its tracks; both of which are the enemy of any efficient and well run organization.

The concept is simple--Touch It Once (TIO). Did you ever notice that each month the cycle is the same? Collect rent, send out 5 day notices, process accounts payable, cut checks, etc. So if this is something you know that's going to happen, why is it so painful? Then at the end of the 30 day period, the cycle is going to start again! How can you not be prepared? It happens every 30 days!

If you think about how the concept of TIO comes into play, it will change the outlook you have on your business. Every time you do a task, think about how you can do that task perfectly. Save the process, document the task, and create a road map for others to follow that same format or system. The next time the task is required, anybody can use your process, learn how to execute, and actually accomplish it with the least amount of error or redundancy.

So how do you as a property manager or leasing agent "touch it once?" For me it was about checklists and document packets. These checklists include a new resident checklist, a move out checklist, a new vendor checklist, a monthly owner's report checklist, etc. Every single time a new resident moves in or moves out we have a series of steps and actions to take. Of course things change constantly, so the checklist was set up as a packet and saved as a .pdf document. Inside the packet are all the forms, letters and actual physical checklists for each item that needs to be accomplished. The checklist is clipped to the top of the file and it travels through the office circulating and being executed as required in anticipation of that new resident move-in. So, if there is a form, letter, orientation, or document to be signed for any new resident, just open the New Resident document and all of it will be there. Simply hit print and go! This same concept can be accomplished in a similar fashion via online forms, but the system and procedure is the same.

TIP is the most empowering tool a property manager can employ. TIP provides training, checklists, procedures, processes, and standards in everything you do. Remember, you are on a cycle. The cycle is daily, weekly, monthly, quarterly, annually, semi-annually, etc. What you want to do when you start to breaking the tasks down is to perfect the task, document the task, and train folks on how to perform the task. You are now building processes.

Those processes can be saved and used over and over like templates. After achieving these cycles and documenting these processes for one year, you now have an incredible roadmap of excellence for all to share. Now combine the power of TIO with today's technological tools and you have a multitude of ways to execute this legacy of knowledge, which will result in the right tools being shared to your entire department, property, portfolio, or company.

One process that we developed has to do with new vendors. Each time we receive a call from a vendor or service provider we simply send them to our website to click and download our New Vendor Packet. It includes a cover letter, checklist, insurance standards, vendor profile form, all IRS forms, etc. Every single time this task arises, it only takes seconds of time. It is also paperless and effortless. In addition, we now have a company-wide standard that everyone follows and knows what to expect. The other important element to this process is the image of you and your company. When meeting a new resident or interacting with a potential new service provider, your system is organized and systematic. When you give each process the care and proper attention to set it up and only touch it once, you are showing the world how much you respect, not only your experience with them, but also your organization, your clients, and your people.

Imagine if all employees understood the concept of TIO? If each employee were exposed to this philosophy, the power would multiply even faster and be an exciting approach to management and excellence.

TIO can result in comprehensive checklists, quality control, time saving templates, video training, orientation of new hires, new business tools, etc. It is also the least disruptive way to organize, train, and develop standards on a company wide basis, with everyone contributing. Start off trying it with one task. Remember, do it now and Touch It Once!

--Linda Day Harrison, theBrokerList, Chicago, IL

Renters on the rise as homeownership declines

2012-02-15T09:09:00.000-08:00

Less and less in the United States does "home, sweet home" mean a mortgage payment.

Despite historically low home prices, Americans are renting in greater number than ever. Nationally, the trend reflects an unstable housing market while locals are either choosing or being forced to rent.

"The housing collapse certainly illustrated that homeownership isn't always a 'can't miss' investment and entails disadvantages as well as benefits," said Jim Lapides, public relations director for the National Mulit-Housing Council, which represents some of larger and more prominent apartment firms in the United States. "We're seeing long-term demographics that favor renting."

The number of U.S. renter households grew by almost 4 million between 2005 and 2010, according to Harvard University's Joint Center for Housing Studies. Researchers there estimate the number of renter households nationwide will increase by 360,000 to 470,000 annually over the next decade.

According to U.S. Census data from 2010, 64.2 percent of occupied housing units in the Shreveport-Bossier City metro area are owner-occupied. The remaining 35.8 percent of homes are renter-occupied.

In 2008, 65.1 percent of Shreveport-Bossier City occupied housing units were owner-occupied and 34.9 percent were renter-occupied, according to U.S. Department of Housing and Urban Development data. Local homeownership was even higher in 2000, and renters represented even less of the market.

The Shreveport-Bossier City area apartment occupancy was 95.9% at the end of the second quarter of 2011, according to a report from U.L Coleman Companies.

Market-wide rental rates increased from 79 cents per square foot to 83 cents per square foot from the second quarter of 2010 to the second quarter of 2011, reflecting growing demand.

Families with children drive the single-family market, but now make up less than half of all households, Lapides said.

The local marker swing toward increased renting has been obvious, said Brad Gossless, chief operating officer and co-owner of Coldwell Banker J. Wesley Dowling and Associates in Shreveport.

The expectation of a home purchase as a stable investment is no longer so widespread.

"That whole mentality has changed," Gossless said. "People aren't anticipating their home's value will continue to increase like they used to. There's a case for renting that wasn't here five years ago."

In local market, Gosslee said there's a 50-50 split in reasoning behind increased rentals--half are choosing it and half don't have a choice.

"Gun-shy" is how Gosslee described many Shreveport-Bossier City renters, those capable or almost capable of buying a home but who avoid doing so because of market conditions.

Many renters in Shreveport-Bossier City are homeowners in softer markets, Gosslee said. Though they may be moving here work for personal reasons, selling homes in other parts of the country is significantly harder than doing so locally.

That could mean they don't have the revenue available to purchase a new home yet, or they are cautiously waiting out the sale as renters, Gosslee said.

A significant segment of renters are also young people who want to remain unfettered to a specific region, according to U.L. Coleman Area Property Manager Stacy Waters.]

About 76 million members of Millenial Generation, those born in the 1980s and early 1990s, are entering the housing market, primarily as renters.

Three years is the generally accepted minimum residence for a home purchase to be a sound investment.

"If it fits your lifestyle, renting is not a bad investment," Waters said.

"Young people don't want to be tied down. They're at the beginning of lives and they want to avoid the commitment and the cost of homeownership."

Theodor Hrisafi, a 22-year old nursing student at Bossier Parish Community College who rents from Lee Hardware Apartments, said between school, working and trying to sleep there's been no time to investigate buying a home--and for now he isn't interested.

"There's too much on my plate," Hrisafi said. "I want to travel and find a career in another city. Getting tied down with a home would limit that."

Hrisafi said he expects to be in the market for a home by the time he's 25 years old, but wants to get married before that becomes a priority.

Keith Bishop recently moved into Riverwalk Apartment Homes in Shreveport after leaving his home for personal reasons.

His new place is much smaller than his old house, but for now he says it's cheaper than looking for a new home.

"Now it's just me, and I don't have to worry about things like utilities and upkeep," Bishop said. "I'll probably buy again eventually, but not for a while. The complex offers everything my house did and more."

For others, the option to buy a home has disappeared.

Following the housing market crash, home loan requirements have increased dramatically, Gosslee said.

"Those with lesser credit now can't buy a home and those with good credit have many more hoops to jump through," Gosslee said. "As much as 25 percent of the local population is no longer eligible for a home loan."

But real estate agents believe there has never been a better time to purchase a home.

"If you're secure in your job, you can get so much more house for your money compared to any time in history," Gosslee said. "It's a great time to move up, but people are still nervous."

Buying a home is cheaper than renting in 74 percent of major U.S. cities, according to an August 2011 report from real-estate tracker Trulia. It's still cheaper to rent in cities like New York City, Fort Worth, Texas; Omaha, Neb.; Seattle; San Francisco; and Kansas City, Mo.

The average listing price for a Shreveport home for sale on Trulia was $199,751 for the week ending Jan. 25, which represents a decline of 0.1 percent or $221, compared to the week prior and a decline of 3.7 percent or $7,573, compared to week ending Jan. 4.

Local home sales were up 13 percent last month compared to January 2011, Gosslee said.

Home prices have been on the rise in the local market, but only defy the national trend because of a strong economy and a historically undervalued market.

--Adam Duvernay

Six Points to Cover Before Contracting a Web Development Firm

2012-02-10T06:50:00.000-08:00

1. Do Your Research!
Would you take your Porsche into a Volkswagen dealer for repairs? Absolutely not. Why? You want a mechanic that is knowledgeable with Porsches! The same holds true for your website. Look for developers that specialize in the industry and have a proven track record for success. Do your research! True high-quality web development firms will be able to offer case studies and testimonials from clients they've worked with in the industry. Ask, "Are they able to design on multiple platforms?" "Can they integrate with other third party multifamily software?" "Do they have professionals on staff that possess first-hand knowledge of industry challenges and trends?"

2. Optimize It!
It's a modern life--people are in a hurry. Studies indicate that the faster technology advances, the faster people expect them to be (ever wish your microwave popcorn would pop faster?). What does this mean for your website design? It means you have between 10-30 seconds to capture your prospect's attention. When choosing your web development firm, make certain they possess the knowledge on how to best optimize graphics.

3. You Get What You Pay For!
We have all heard the cliche: "You get what you pay for" but never more apropos than when hiring a web development firm. Be wary of designers who offer "free" websites or who submit significantly lower bids than their competitors. Think of it this way, if you received three bids for a new roof on your house where contractor 1 quoted 10k, contractor 2 quoted 12k and the third contractor priced it at 1k you would naturally be concerned that the third contractor's bid was missing important elements, right? The same rule applies when contracting a web designer. You want to partner with experts that offer service and support beyond the initial design.

4. Know Your Target Market
Do they know your target market? It is crucial that your website reflects the values of your potential residents. It is your market primarily business professionals? If so, your website design should be clean and professional. What about student housing communities? Gen Y compromises the bulk of today's student population. If you are developing a website to attract them, keep it informal and relaxed. They key is to know your market and build the website to cater to their needs and preferences. Look for web development firms who have a comprehensive portfolio that demonstrates their experience with multiple asset types.

5. Get Analytics
Review your competitor websites; where are you losing leases? Check their website and you might see why. What benchmarking do you have in place to know if your web development firm is actually producing the desired, promised, or anticipated results? Set up a method of comparing traffic, leads, search engine referrals, and response forms to be sure your website is operating at optimum. Studies show that 40% of all leases are generated from the property and/or corporate website--how does that line up with your website performance?

6. Require Accountability!
Lastly, remember if it sounds too good to be true then it is! Exercise great caution if a developer offers guaranteed traffic or lead conversion ratios. This is a sure sign that they are overpromising and will under deliver. Ensure your web development firm of choice has the ability to deliver true analytics so that you can monitor success first hand.

-Terry Jackson

National Apartment Vacancy to Dip Down to 5% by Year End

2012-02-09T07:30:00.000-08:00

The US apartment sector powered through last summer's economic doldrums to record strong absorption gains and higher occupancy rates. So says a 2012 National Apartment Report, which was released by Marcus & Millichap. Tight supply conditions exist, especially in metros with high barriers to entry, says the report. "Foreclosures in the single-family market, the inability of most Americans to meet mortgage financing requirements and households choosing rental housing for lifestyle reasons or employment mobility contributed to a net rise in apartments."

Hessam Nadji, managing director, research and advisory services at the firm, tells GlobeSt.com that "Demand for rental housing will with shifting consumer behavior. The total population within the prime 20-34 old renter cohort has increased dramatically, and will increase by an additional 2 million through 2015," he says. "As this age cohort continues to face significant hurdles to homeownership and as the tight employment market encourages flexible housing decisions, many of these new households will continue to favor renting."

In addition, Nadji says, though foreclosure activity has begun to recede from peak levels, homeownership rates have declined dramatically since reaching their 69.2% peak in 2004. "The most recent readings place homeownership at 66.3%, and this sharp decline has significantly added to rental housing demand. As a result, rental housing will remain a favored choice for the coming year."

Nadji tells GlobeSt.com that "strong demand trends will continue to pressure rental housing stock, and although many developers have begun to ramp-up construction plans, substantive increases in construction remains one to two years out." Presently, only 85,000 new apartments are anticipated for 2012, he says, "a significant shortfall from the forecast demand of 120,000 apartments in 2012. This will press vacancies to the 5% range by year-end, the lowest level since 2001, and empower owners to advance effective rents by 4.8%"

Foreclosure activity has begun to decelerate from peak levels, but will remain elevated through the coming year, adds Nadji. "Many of the foreclosures delayed by the investigation into 'robo-signing' that surfaced in 2010 will continue to move forward while areas that have demonstrated very slow employment growth will continue to face significant risk."

He points out that Southern California, Florida, Georgia and Michigan will face the steepest hurdles while Arizona and Nevada, where foreclosures were most prevalent over the last couple of years, have improved prospects in the coming year "as job growth is forecast to significantly outpace the national average in these areas."

The San Francisco Bay Area has earned two top spots in this year's NAI, which ranks 44 major apartment markets based upon a series of 12-month, forward-looking economic and supply and demand variables including forecast employment growth, vacancy, construction, housing affordability and rents. The Bay Area dislodged its East Coast counterparts, with San Jose (#1) and San Francisco (#2) occupying the top positions in the year's index, edging out New York (#3) and Washington DC (#9). The Silicon Valley benefitted from robust technology employment and significant income gains, as well as 40 percent of all venture capital finding in 2011. Rounding out the bottom of the NAI as Jacksonville (#44), Tucson (#43) and Sacramento (#42).

Barring any unforeseen shocks to the global financial markets, an array of lenders will continue to finance multifamily developments and acquisitions in 2012 against a backdrop of historically low interest rates, says William E. Hughes, senior vice president and managing director of Marcus & Millichap Capital Corp. "Fundamentals and a favorable spread against Treasuries will promote multifamily development this year. Fannie Mae and Freddie Mac will remain the chief suppliers of apartment loans in an increasingly crowded field of providers.

"In fact, monetary policy--both domestically and worldwide--should keep interest rates low for several years to come," adds Hughes. "Expect life companies and commercial banks to grow market share by pursuing assets with good credit features and stabilized revenue."

After a brief respite in the third quarter of 2011, multifamily investment sales activity is expected to rebound this year. "Sellers will bring more properties to market, capitalizing on strong investor demand, based on the strong economic gains recorded at the end of 2011,"says John Sebree, national director of Marcus & Millichap's National Multi Housing Group. "We expect capital to migrate to secondary markets and value0added investments. Sales volume will rise as risk tolerance expands and capital becomes more fluid. Expect higher levels or workout activity from banks and lenders," Sebree notes.

--Natalie Dolce

Three (Incredibly Easy) Healthy Pantry Substitutions

2012-02-08T06:55:00.000-08:00

If you're already having trouble sticking to that "eat healthier" New Year's Resolution, perhaps it's because you have lots of tempting things in your pantry that are foiling your best intentions. Because you know what they say about good intentions and white bread: they pave the road to a heart attack. Below are some simple substitutions you can make RIGHT NOW to affect a big change in your health.

Replace white bread with whole wheat bread--good whole wheat bread

Whole wheat is generally less processed, has more fiber, will keep you fuller longer, and won't spike your blood sugar like white bread. As far as your body is concerned, white bread is just sugar, and eating straight sugar doesn't fall under "eat healthier." Ideally, buy fresh baked bread from a deli, bakery, or farmers' market; although highly-processed, pre-sliced whole wheat bread is a bit better than its white alternative, it's still highly processed and pre-sliced. Insider tip: Look at the ingredient list. If it lists "wheat flour," it means white wheat flour. If it lists ingredients you don't recognize, they're probably preservatives or other sketchy things you don't want in your body, and you'd be better off buying a different loaf.

Replace canned vegetables with fresh or frozen vegetables
Unlike canned vegetables, frozen vegetables retain most of their nutrients and fiber--and they're just an convenient, if that's a factor in your decision. When possible, eat fresh vegetables. This tip also goes for fruit. Canned fruits often come swimming in a sugary syrup, and have almost none of the beneficial nutrients of fresh or even frozen fruit. Insider tip: Want to go to the extra mile? Freeze your own veggies, from your garden or from a farmer's market, to enjoy healthy produce throughout the year.

Replace meat--especially red meat--with a vegetarian protein
Hold up! We're not suggesting that you go full-on vegetarian, but at least once a week, go meatless. If possible, eat vegetarian proteins that are natural and not processed. For example, serve vegetarian Mexican food, with beans instead of meat. Or whip up an omelet, and let eggs provide the protein. You can always buy a tofu-based "fake meat," but it's cheaper and healthier to pick natural foods. Insider tip: You can also improve health just by reducing the amount of meat in a meal. for red meat, a serving size should be no bigger than a pack of cards. Sound pitifully small? Mix the meat with other ingredients, for example in a stirfry, and its flavor will spread out over lower calorie, more fibrous foods.

There is endless conflicting advice about which foods are "healthy." A simple guideline is to buy whole, processed foods, and to focus on fruits and vegetables. And, of course, avoid sugar.

--Caitlin Morgan

AHHHH! Apartment Emergencies You Should Be Prepared For

2012-02-07T08:48:00.000-08:00

It's 2012 people, you know what the Mayans said. There's never been a more appropriate time to use your paranoia to a good end, i.e. preparing for the worst so you can make the best of things.

Fire
Smoke detectors and fire extinguishers. You might need them, but if you do, you'll REALLY need them. These should be some of the first things you move in to your new place. Change the batteries regularly, and check that extinguishers haven't expired. And while you're at it, install a carbon monoxide detector, too.

Leaks, Leaks, and Other Infrastructure Problems
Gas leak? Water leak? Ceiling collapsing onto your living room? (I have it on good authority that that last one is a real bummer.) Keep a list next to your phone with the numbers of your landlord, plumber, electrician, etc. Keep important documents in water-tight containers, and for goodness's sake, get renter's insurance.

Power Outages
Not the worst thing that could happen--unless Grandma is visiting and breaks her hip while stumbling around in the dark. Buy several flashlights and maybe even some battery-powered lamps. If your stove is electric, have another way to keep everyone from starving.

Bleeding Out
Also known as: Why don't you have a First-Aid kit? A little tape and gauze goes a long way when it's 30 minutes to the nearest hospital. Don't know what you should include? The American Red Cross has a list for you, and if they don't know what they're doing, we're all screwed anyway.

The Apocalypse
Whatever it takes, it won't be pretty. Keeping a stash of water, non-perishable food, survival blankets, flashlight and batteries, battery-powered radio, whistle, and anything else that might help you survive those first few End of Days. Seriously though, only a small percentage of people don't believe in climate change, so all this strange weather we've been having? We might get even more of it. Stock up.

--Caitlin Morgan

Rent Roll Buying and Selling--More Than Meets the Eye

2012-02-06T10:42:00.000-08:00

Recently, I have been involved in the sale and purchase of a rent roll. I had the rare opportunity of consulting for both the buyer and purchaser. Let me say, this was the smoothest and least stressful rent roll transfer I have ever witnessed!

Now some might say there is a conflict of interest by consulting to both the seller and the purchaser, and yes, I would agree! I definitely had my reservations about consulting and advising to both of them, but I discussed my dilemma with both parties. They both agreed they would retain me as the consultant and adviser through the negotiation, transfer, settlement, transition, and retention period. In fact, I even conducted the inspection and overview on the selling rent-roll, and prepared the due diligence report.

This was a tremendous lesson for all concerned (including me!) The offer and settlement process lasted for several months. The buying agency is now in the midst of the four-month retention period. The selling agency must continue to cooperate to ensure all clients (both property owners and tenants) are happy with the new managing agent. Both agencies must not become complacent or lulled into a false sense of security until they are clear of this retention period.

For all intents and purposes, the first goal of the buying agent is retention. The second goal is to build on the managements that they have invested in to encourage the investor to buy more property and recommend their services. That's how a business owner should focus their attention to build on their investment. Principals need to understand and monitor their ROI (Return on Investment).

The amount alone should be kept at the forefront of the mind. The managememts that transferred with the rent roll should be tracked with the historical information. Performance should also be logged and recorded. This ensures that not only the investments in purchasing rent rolls are made with factual historical data.

It's important to understand the previous purchase had on your business, good or bad--and that is just the financial investment! What about the investment of time, the years the principal has invested in developing, growing, and nurturing their own brand, and their personal and professional reputations?

Too many principals purchase a rent roll and never have any way to track the performance and ROI of the investment. Too many principals that decide to sell their rent roll believe once the contract has been agreed and is unconditional that their job is all over. They believe it's just a matter of transferring the files over on transfer (settlement) day. Nothing could be further from the truth! Some principals even make sure the new managing agent employs their current team to continue managing the properties. They believe property owners will feel more secure with the management continuity and familiarity, therefore have a greater chance of retention. Once more, nothing could be further from the truth!

So, before you decide on buying a rent roll or selling your rent roll, ensure you are informed. It's not just a matter of signing a contract and employing a team. Oh no, there is so much more than meets the eye.

-Jo-Anne Oliveri, ireviloution, intelligence, Brisbane, Australia

Technology and the Successful Property Manager

2012-02-03T08:13:00.000-08:00

It's the kind of job that requires a lot of patience, and today being a property manager also requires keeping up with technology. Property managers work with many different personalities, which require them to have some important skills that help make the job of managing properties a success. But they also need to keep up with where their future tenants are spending their time--online.

Get Social.

Interestingly, social media and technology play a critical new role in the job of property managers. Now, tenants and prospective tenants aren't just stopping by to see a property; instead they're on Facebook, Twitter, YouTube and other social media platforms learning about rentals in your area before they have even set foot in the neighborhood.

Through these and other social media sites, not only is information shared but also reviews and feedback about properties are posted. That's why today many companies are hiring social media people to actively listen to their sites. It's part of online reputation management and it's a good way to see if and what people are sharing about your properties.

As a multi-media video journalist, I am often asked about how to respond when there is a negative remark about your company, product, or property. Should you roll up your sleeves and "fight back?" No. Often this will cause the person who is negatively commenting to start a full-blown war. The campaign can get very ugly and turn into an over-dramatized sensation.

My suggestion is to counter the attacks by addressing the issues in a positive manner and not necessarily right after the person leaves the comment. How do you do this? Article writing and posting on many sites is a great way to get the information you want out about your properties.

So, for instance, if there's a negative comment about your property being poorly kept up, writing a post and showcasing with photos the well-manicured property and its unique attributes is a better way to convey your message.

Resist the urge to fire back a comment that sounds defensive. Instead, think of the negative comment as a question: "How well maintained is your property?" Then write your post. Of course, this is assuming you are keeping your property in good shape!

Give it to them Quick.

Quick response (QR) codes are showing up everywhere. How important are they to the property manager's job? Very. These little codes can help carry vital information to prospective tenants, when used appropriately.

QR codes are used by people with smartphones. They download a free app and then scan the code which is linked to a website page. You can create a QR code very easily and for free using online resources; just search for free sites to create your code.

The QR code is meant to provide information to the user in a quick fashion. In order to be useful, the information must be valuable. So, if you link the QR code to a video that gives good information about your property, that's useful. If, on the other hand, you embed a faulty link or the link just opens to a generic website, the QR code can be seen as nothing more than advertising--useful to some, but others may feel it was a waste of their time to scan the code.

Placing a QR code on your brochures, business cards, and marketing materials with helpful links to very valuable information such as frequently asked questions, videos of your properties, etc. can be a big help for prospective tenants.

Pay rent online.

With so many people doing online banking, getting your residents to pay their rent online makes sense. There are many advantages such as the ability to schedule payments, automatic monthly debits, no hassling with paper, and being able to pay rent from anywhere instantly.

If you're finding that your tenants aren't as hip to signing up for the online rent-pay option, try using sign-up incentives such as a gift card to a local merchant's shop or do a drawing from a pool of all the tenants who signed up that month.

Technology is nothing more than tools that can help streamline and better brand your business. However, it's how you use them that determine how successful you'll be as a property manager.

--Phoebe Chongchua, SD Real Estate Help, San Diego, CA

Got Cabin Fever? Celebrate the Season and Decorate Your Apartment

2012-02-02T08:08:00.000-08:00

They don't call it cabin fever for nothing. There you are, in your little cabin of an apartment, feverishly itching to do something new, and yet spring isn't just around the corner, not yet! Well for you little OCD spring cleaners out there, why not relish this moment for all its grey and cold glory? You think we're kidding, but we aren't; the holiday decorations need to come down, but you don't need to be down in the dumps. Perk yourself up this weekend with a little winter decorating.

Stencil
Admit it, it doesn't actually take that long to repaint one wall, and you'll more than make up for it in compliments and resulting smugness. Use some leftover paint that's been hanging around, and only paint a small but noticeable area. By now you should know that we'll recommend such projects only if you have a amenable landlord, so be smart and don't blame us if you track paint all over his prized wood floors.

Throw some white paint on winter-related projects
Seriously, all it really takes is a basket of pinecones you filched from the park and then dipped in white paint, and all of the sudden you're Martha freaking Stewart. Don't believe me? Try it! Just let the paint dry before ruining that woven masterpiece. How else can you make this ridiculously easy? Stick a spruce branch in a vase and use it as a centerpiece. Gather a bunch of Christmas tree bulbs and "arrange" them in a nice bowl, and use that as a centerpiece. Sprinkle some fake snow in the corner. The lazy options are endless.

Buy Stuff
While we don't feel entirely good about encouraging your addiction to shopping (you know, there are therapists and probably even medication for that), if you're going to do it anyway, we might as well point you in the right direction. Etsy has some ridiculously cute items for easy winter decorating, and if you weren't such an addict, you could always store them away til next year and re-use the wonder. Just a suggestion.

Don't take our word for it
Feel like striking out on your own here? (but don't actually want to come up with your own ideas?) You can always stalk the hundreds of people on places like Pinterest, who are fetishing the latest season (that's a lot of sketchy verbs for one sentence, but you catch our drift.) Actually, this is an excellent way to spending so much time looking at how your apartment could be decorated that you never got around to actually decorating it. Trust me, I know.

--Caitlin Morgan

Apartment Politics: How to Handle a Roommate on the Other Side of the Aisle

2012-02-01T10:58:00.000-08:00

2012 is an election year and, as daily headlines remind us, the country is in the middle of an contentious primary season.

If you're sharing an apartment with another person, this is a time when you may discover that your roommate favors a candidate you find abhorrent or takes a view on an issue that's in sharp contrast with how you feel.

It's nice if you agree with your roommate when it comes to politics, because it's one more thing you have in common. But when roommates don't see eye to eye on political issues, there's no need to view disagreements as a threat to your good roommate relationship.

Compatibility is key when looking for the perfect roommate. When it comes to politics, what's important is that roommates respect each other's views and different backgrounds. It's easy to let your roommate's politics get to you, feeling as if your belief system or values are suddenly under attack in your own home. But remember that your roommate didn't adopt any political view to spite you, and so while friendly debates might be fun, getting defensive and argumentative isn't healthy, productive, or warranted.

The truth is that people of all political persuasions can make great, considerate, and responsible roommates, and there's no reason that politics should interfere with a terrific roommate experience.

--Ron Leshnower

How to Rearrange Furniture for a Party

2012-01-31T06:57:00.000-08:00

The couch blocks access to the food, the chair arrangement is like a maze, and given the blockade of people in the hallway, you'll never make it to the bathroom. If you've ever been to a party like this, you can appreciate that a little planning can make a big difference in the flow of a private event. Next time, don't just set up decorations and set out hor d'oeurvres; make use of these tips and ensure that when your best friend sees her ex, she'll be able to bolt to the next room without breaking anything.

Allow for enough space to walk. No one likes playing oaf and tripping over the It Girl's Manolo Blahnicks--or, for that matter, crashing into a tray of Champagne. If your apartment allows for it, make "traffic lanes" at least a couple feet wide.

Don't over-centralize. People will want to talk in smaller groups; let them. As long as they can get from one place to another, little nooks and spaces will allow your guests to congregate as they wish, and thus enjoy the party.

Separate food and drink. If your serving plan includes a buffet and bar, keep them far apart. This will minimize traffic jams.

Let them eat cake, standing. Providing about a third as many chairs as guests will ensure that people move around and mingle, rather than getting stuck in any one place. Disregard this suggestion if your guest list includes a high proportion of older people.

Get rid of your 56 inch television, unless it's a flat screen. Temporarily move large pieces of furniture that aren't needed for the party. Flatscreens are an exception both because they take up little space, and because we assume you'll want to show yours off.

--Caitlin Morgan

How to Rent an Apartment with Bad Credit

2012-01-27T08:57:00.000-08:00

Although good credit comes in handy, it's not the only factor that landlords use to decide whether or not to rent to you. To understand how to beat a bad credit rap, you need to understand why landlords check credit in the first place: they want to know if you will pay your rent in a timely fashion. There are other ways to demonstrate your trustworthiness.

If a landlord requires a credit report, ask to provide it yourself. Too many "hard inquiries," requests for your score from other people other than yourself, can lower your score. Additionally, you should attach a letter to your reports, explaining past financial hardship that resulted in a less-than-stellar number, and how those issues have been resolved so that they will not affect your current ability to pay rent.

If possible, also attach a letter of recommendation from your previous landlord. In most cases, such a recommendation will mean more than a simple score. And property managers want conscientious tenants, so the effort of providing extra documentation might win you points.

Know your credit history, and be aware of how it has affected your current score; as the saying goes, forewarned is forearmed. Every year, you're entitled to one free credit report from the three biggest credit bureaus, Experian, Equifax, and TransUnion. The TrueCredit 3-in-1 Credit Report will tell you whether these bureaus have reported your scores differently and how each calculates your score. Knowing these numbers ahead of time will prevent any surprise questions from a potential landlord, and may also help you understand how to build good credit going forward.

Another strategy to avoid rejection is to search for apartments whose managers don't require credit checks. Smaller apartments and single family homes, especially in non-competitive areas, are most likely to rent without a credit score.

Finally, it's important to remember that most landlords don't have a particular, deal-breaking score in mind. It might take more time or further explaining, but if you're proactive about your apartment search, you should be able to rent...even if your credit leaves something to be desired.

--Caitlin Morgan

Form 1099s & Year End Statements

2012-01-26T08:07:00.000-08:00

For property management companies, the month of January signals a time to prepare and issue year end statement to their clients for tax preparation purposes. Consequently, each January the IRS requires that any taxpayers who have made payments in excess of $600 to workers that are not considered employees must prepare Form 1099--Miscellneous Income. Property management companies are also federally required to file Form 1099 for their clients regarding rental income received throughout the year. In addition, copies of this completed form must be provided to the IRS. The IRS compares the payments shown on the information returns with each recipient's income tax return to determine whether the payments were reported as income and done so properly.

-The filing deadline for Form 1099 is January 31, 2012.

-The IRS also requires that you file a Form 1096 to identify all of the Form 1099s.

-The filing deadline for Form 1096 is February 28, 2012.

Failure to issue a Form 1099 and file Form 1096 results in penalties and potential disallowances of deductions for those amounts paid. Thus, it is imperative to comply with these filing requirements. In years past, SDP Management would spend a lot of time and resources preparing large bulky paper laden year end packages to meet these requirements. The packages, which contained printed year end statements and other tax required documents, would detail the properties prior year performance and provide necessary documentation for the client's CPA or tax preparer. All packages would be carefully prepared prior to the end of January and mailed via snail mail (USPS) at a considerable cost. Well, the industry has advanced and those days are long gone. The advent of cloud computing and advanced property management software, such as Buildum, have allowed property managers to formulate numerous detailed reports and provide them via email in PDF format to clientele at a fraction of the cost and time.

These reports also meet state and federal requirements. It has also allowed the tedious and many times misunderstood Form 1099 to be computer generated and scheduled for automated mailing. Not only is this convenient for property management companies, but it also allows clientele to continue forwarding the year end PDF report to their CPA or tax preparer regardless of where they are in the world.

Don't let 1099s and year end reports get you down, use January to focus on the upcoming year and not the past.

- Salvatore Friscia, San Diego Premier Property Management, San Diego, CA

Smart Ways to Add Storage to a Tiny Apartment

2012-01-25T08:24:00.000-08:00

So many of us dream of living in a castle, sliding down banisters and hiding all our worldly possessions in endless closets. In reality, most of us live in slightly smaller situations, and if a person's home is their castle, we live in rather cluttered ones. To that end, we've put together some smart, simple strategies for adding storage to your oh-so-tiny apartment and living the clutter-free fairy tale life you deserve.

Mounted Organizers
Shelving is an excellent way to get the most out of your small square-footage, especially if you're lacking in storage space. Choose open organizers for items you need to access quickly; for messy heaps and eyesores, used closed cubbies for the illusion of order. Apartment Therapy lists its favorite wall-mounted organizers; they're a good place to start.

Racks
Especially good in the kitchen, racks keep items out of unmanageable piles. Try coat racks, pot racks, wine racks for plastic wraps and tin foils. Belts? Ties? Bags? All can be hanging, perfectly organized, with the right rack. We especially like wire racks hidden away in cabinets, creating multiple tiers for dishes or even t-shirts.

Curtains
With enough shelving, you can transform an entire wall into an eight-foot storage space--but how unattractive! Hide your belongings behind a curtain. They'll still be easy to access, but you won't feel like your stuff is visually encroaching on day-to-day life. Check out Better Homes & Gardens for a slideshow of inspiration.

Baskets, trunks, and under-the-bed boxes
While you don't want to lose all your floor space to such strategies, decorative storage can keep your things on the fringe of a room, or hidden altogether. Large baskets can contribute to your decor and house anything from kids' toys to extra blankets to dirty laundry. trunks serve a similar purpose. try a hinged bench in the mudroom for a place to keep your dirty boots and also to sit and put them on. And to the extent you can, stow infrequently-needed possessions under the bed and out of sight--just don't forget to vacuum up the accumulated dust every once in a while.

--Caitlin Morgan

Getting that Lease Signed: Tips for Apartment Owners and Property Managers

2012-01-24T07:41:00.000-08:00

You can own the most magnificent apartment on the upper East Side of Manhattan, but unless you sell it right, a prospective renter could just as easily rent the second most magnificent apartment on the Upper East Side, owned by your property manager nemesis, Dr. Strangerent.

So how do you ensure that it's your lease that gets signed? As a Desperate Housewife once said, "perception is reality." If your apartment looks and feels like a home, renters will perceive it as a home. According to Jessica Fiur at the Multi-housing News Blog, staging should be your #1 strategy. Some (tasteful) art on the walls, some well-arranged furniture, and the blank canvas transforms into a place they could imagine living. It's a cliche, but remember the old baking-cookies-in-the-oven trick. Everyone seeks comfort and relaxation, especially at home. Create the illusion of it, and they will do the rest.

Close behind comfort comes bragging rights. Tell the apartment's story--does it have a sordid past? Was it designed in a special way? Did anyone famous ever stay here? Make people familiar with the place. It's not unlike adopting a puppy; he's just another slobbering canine until his prospective parents know how well behaved he is and how he likes his belly rubbed.

And learn from your successes and mistakes. How have you sealed the deal in the past? Is there a pattern to the times people walked away? If it's not your first time finding a tenant, you already know something about making it work.

--Caitlin Morgan

The Road to Recovery: Simple Ways to Get Organized

2012-01-20T10:59:00.000-08:00

I believe there's a fear inherent in us that we will die alone in a pile of things we bought 50 years previously. Or maybe that's just me--and numerous characters from TV and film, not least Bridget Jones, who feels she'll die "fat and alone, and be found three weeks later eaten by Alsatians." While we can't guarantee that getting your apartment organized will prevent you being eaten posthumously by wild dogs, it sure couldn't hurt to try.

Give everything a home
Sounds nice, doesn't it? No orphans panties lying around? I'll tell you all the same thing I told my boyfriend while he was wading knee deep in unwashed jeans, looking for a credit card: if every item has a place it belongs, you'll know where to put it, and you'll know where to look for it. In other words, if you keep essential forms of payment in the pocket where they were last seen, you're in for trouble.

Tidy every day.
Stop hyperventilating (although that could be the dust you've never wiped from your bookcase). I don't mean vacuum daily, but if you let things like mail and unwashed dishes pile up, they'll be exponentially more daunting when you finally get around to dealing with them.

On that note, God made hampers for a reason.
even the atheists among us can agree, dirty laundry is best kept in the dirty laundry basket, and not in the clean laundry pile of covering that nice Oriental carpet you inherited. This will also prevent your mother from seeing your scandalous see-through teddy when she drops by for a surprise visit. I can't emphasize enough that this is a situation to avoid. Not that it's ever happened to me.

After a year, give it the heck away.
If you haven't worn or used it in a year, you're probably not going to. You'll also have way more space for the next time you want to indulge in retail therapy.

Chore-chart it.
Creating a chart makes it more likely you'll get chores done in a timely manner, especially if you have roommates. Did you know you're supposed to clean your bathroom once a week? You might if "clean your smelly bathroom" was staring at you from the refrigerator. Organization is all about planning, so plan to do it.

--Caitlin Morgan

The Comeback of the Transferee Tenant

2012-01-19T07:23:00.000-08:00

One area that really took a hit during the economic downturn over the past few years was the ability to lease property to employees being hired and transferred. Nobody was hiring, and it seemed that very few companies were taking on the expense of transferring their employees to other markets. Although the job market continues to stagnate, overall it does appear that in many markets, companies are beginning to add staff, and once again we are seeing an influx of transferring employees and executives.

Renting a property to an incoming transferee presents a few issues that need to be considered that don't necessarily apply to local tenants.

Timeframes are much more rigid.
When an employee needs to transfer, they need to move. They typically have a start date for work set already. They have received instructions from their HR department to secure housing and are under pressure to get things coordinated as soon as possible. These tenants have a matter of days or weeks to completely relocate their lives. They don't have the ability to move back a move-in due to utility problems or issues with a previous tenant move-out. When dealing with a transferee, it is important to make sure everyone commits to specific dates and that the property is 100% ready for occupancy on the lease start date.

You may not be able to assess creditworthiness.
For international transferees, it is very difficult and sometimes impossible to retrieve a credit report. In many cases, all that we have to make a decision on is a letter from the employer and the estimated income details provided by the applicant. This makes it increasingly important to verify every single piece of information that is provided, which includes contacting the employer to verify job details and income. If the company is making the investment to relocate an employee,they will do whatever they can to verify the information and expedite the process. If the information is difficult or impossible to verify, this should act as an immediate red flag.

If the tenant is working with their own agent, you may never get a chance to meet the tenant or review the lease terms with them.
While this does otherwise happen occasionally when other agents are involved, it is the norm when dealing with transferees. These tenants are very often only in town for a day or two to look at properties and get corporate affairs in order. By the time that they decide that they want to rent our property, they have left town to return home. Much or all of the communication is done via solely the other agent involved. While this is not a huge deal in most cases, it has to be taken into account, as we will likely have no chance to begin real dialogue with the tenant until the time of occupancy. It is also possible that the exact terms of the lease have not been clearly conveyed to the tenant with the detail that you are comfortable. It is a good idea to bring a copy of the lease to the move-in in order to review any important items within the lease that you would like to clarify, as we know that many tenants do not review their lease completely prior to move-in.

Tenants may be unaware of utility guidelines and setup procedures.
Our experience is that the employees that companies are willing to transfer are generally pretty successful and many of them are property owners in their current location, not renters. May of them have not rented for many years and this is a fairly unfamiliar process. They are not familiar with the local utility companies or the process for setting up their accounts. It is particularly important to provide these details as early and as clearly as possible to avoid any delay in switching utilities, and any chance of an accidental disconnection of service. Provide as much detail as possible, no matter how obvious or excessive it seems.

Don't assume tenants understand local weather conditions.
I write from experience on this item. You absolutely can't assume that someone coming from another location (especially internationally) understands the local weather. One of the worst maintenance situations we ever experienced was a townhome near Chicago that we rented as an executive from Italy. This tenant planned a trip home to Italy during December. The temperature had not fallen below 50 degrees in Chicago when he left and he had never experienced a winter in the US, so he did what he would normally do when vacationing back in Italy--he turned the heat off completely. Within a week, the temperature had fallen below zero, the pipes broke, and the nightmare ensued. He had never experienced that type of temperature change before. From that point on, I've made it a point to explain the details of the local weather to anyone relocating from a different type of climate.

The fact that executive rentals are now being scooped up by transferring execs is a great sign for our industry, as our higher end rentals are filling more quickly with high quality, longer-term rentals. However, every relocation deal presents its own set of challenges and issues that need to be addressed to ensure that we are providing top-level service to our tenants and clients.

--Ben Holubecki, STML Realty Group, Glen Ellyn, IL

Apartment New Year's Resolutions

2012-01-18T06:42:00.000-08:00

Our guest blogger Ron Leshnower introduced the idea of making some apartment-living resolutions for 2012! It's been two weeks--do you need help figuring out some New Year's Resolutions for your home? We have plenty of ideas how you can a cleaner, prettier, safer home.

Cut Costs
This is a big one, so we suggest you choose several, easily achieved strategies for creating a more economical home. There are myriads of ways to do this. Some ideas:

-Insulate the heck out of your apartment, including stopping up all drafts.
-Get an energy audit, and make changes accordingly.
-Sell/toss/donate unwanted items and stop paying for storage
-Eat in more often
-Buy a water filter and stop buying bottled water
-Go "green"--there are so many ways to do this, and many, like paperless banking, are very easy
-Replace appliances (if needed) with energy efficient models

Remodel
Maybe what you really need is change. If that's the case, consider what you would enjoy, and what you can afford to remodel. It could be as simple as repainting a room, or as drastic as reupholstering all your furniture. The new year is a great time to shed old appearance and start fresh.

Stay Safe
Whatever projects you take on, maintaining safety should be top of the list. Check all your fire alarms, make sure fire extinguishers are easily accessible, install carbon monoxide detectors if you don't have them already, know whether you need to deal with lead paint before you start scraping off old colors, and update your security system as needed.

The key to realized resolutions is to think small. Don't pick too many, and don't pick too big. Choose a few things that you really care about and follow through. If you get those done, you can always go for more!

Government Policy Continues to Fuel the Residential Property Management Industry

2012-01-17T07:11:00.000-08:00

Over the past four to five years, I have been posed all of the questions of many business owners in the real estate industry. How has the downturn in the economy hurt your profits? Has the housing collapse crippled your business? What about the high unemployment rate? My answer to these questions has been consistent throughout all of these turbulent times. Business is great, and consistently so. I usually walk away from those conversations feeling fortunate to be a part of a strong niche within a deeply depressed industry, and I think many good property managers feel the same way. However, I don't know that we give a lot of thought to how profound external factors affect our industry. The recent announcement by President Obama regarding expansion of the HARP (Home Affordable Refinance Program) got me thinking about the ramifications for the property management industry as well as how the housing collapse has shaped our industry overall.

One factor that seems to be absolutely clear is that the US government's incompetence and inability to stabilize the housing market continues to drive the residential property management industry forward. I was first exposed to the property management industry during the apex of the housing boom. It was a time when everyone had equity, mortgage approvals and refinances were easy to come by, and anyone with a few dollars in the bank was trying to rehab and flip property in their spare time. The portfolios of many property management companies were comprised primarily of real estate investors of one type or another who actually expected to turn a profit as a result of operating their investment properties. Sadly, many of these investors continued to buy property all the way into the height of the market, overextending and overexposing themselves, and blindly wagering their economic futures and retirement finds on a market preparing for collapse. As a result, we have seen many of these investors, including many of our own former clients, get crushed by adjusting mortgages, credit tightening, and the evaporation of millions of dollars in equity.

Those investors, who at one time filled our portfolio with property to manage, seemed to disappear as quickly as they previously appeared. Only the more savvy and stable investors have made it through the storm thus far and those less fortunate investors have been replaced by a flood of single property owners forced to rent a property due to the terrible sales market conditions. This flood of potential clients will continue to benefit our industry, so long as our government fails to find a permanent solution to solve our housing crisis. there are a few factors that drive homeowners to make the decision to lease and have a property managed, and one of those primary factors may be swinging in our favor.

The newly announced upcoming changes to the government's home affordability initiative will allow many deeply underwater homeowners the ability to refinance into a reasonable interest rate and monthly payment. There is also a possibility that those who bought a house as their primary residence but now hold the property as an investment will be able to refinance through HARP at an additional cost. What does that mean for us as property managers? It means that there may be an additional pool of thousands of homeowners who will now have manageable monthly overhead related to their property, but since the new program does nothing to solve the overall problem of negative equity, these owners still have no chance to sell their properties. For those owners who would have otherwise never considered renting out a property due to the fact that they would be operating in the negative every month, they may be able to break even with reduced monthly mortgage payments, or dare I say, even make a few bucks by putting their property on the rental market.

This scenario makes a couple of assumptions. it assumes that the government can actually roll out the changed terms. It also assumes that the banks can figure it out and implement the program. There is no guarantee that all of these stars can align and this program will work as planned. Since the government and banks are involved, I'd almost be certain that it will fall apart at some point. Even so, if the program only helps a fraction of the 900,000 homeowners projected, an eventual influx of thousands of substainable rental properties on a longer term basis. This means more available clients and profit for leasing agents and property managers throughout the country and built-in growth for our markets. it's not often that a bad policy hastily implemented to grab a few presidential votes will help to build your business, but it looks like that is exactly what is going to happen here. I continue to to feel fortunate to be in the right place at the right time.

--Ben Holubecki, STML Realty Group, Glen Ellyn, IL

Using Smartphones for Property Management

2012-01-16T10:56:00.000-08:00

As smartphones rapidly flood the market, businesses are increasingly looking for ways to bring their companies and processes mobile. Androids, iPhones, and Blackberries all allow users to perform a variety of processes straight from their mobile phones by incorporating functionality that was primarily limited to PCs just a few years ago. Though there is conflicting information out there regarding the degree to which smartphones have permeated the market (Nielson estimates that one out of every two Americans will own a smartphone by the end of 2012, while Forrester Research estimated that only 17 percent of Americans had smartphones in September 2010), there's still no denying that mobile is the wave of the future. It's important to at least begin thinking about how this technology will ultimately fit into your business plan.

When it comes to apps, the sky's the limit. You can build an app that will allow potential tenants to search your rental listings. Or, alternatively, you can build an app for tenants (this makes more sense for larger property management companies) to communicate with you, find information, file requests, or even make payments. According to BusinessInsider.com, when deciding to build an app, it's important to consider three main questions:

1. What is the key benefit I want users to get from using this app?

2. What other apps exist that are competitive and why will mine be different?

3. What is this app going to do for my business?

If you decide the time is right to bring your apps into your property management business, following are some options to consider.

Proprietary Apps
If you decide to build an app for your company, you can choose between building it yourself or hiring a developer to take care of it for you (which can get expensive, ranging anywhere from $2,000 to 8,000 on average). Since different smartphones use different app architecture, you will then decide if you want to build a few different versions for different smartphone platforms.

If you're feeling ambitious and want to try building your own smartphone app, some development tools on the web can help. Google offers App Developer (now in beta) for building Android phone apps. Designed for small business owners, Sweb Apps helps you build your own iPhone apps, no programming knowledge necessary (some fees do apply).

Remember, once you've built your app, you'll need to submit it to the appropriate app provider for consumer download.

Second-party app.
If building your own app sounds a bit overwhelming, you can also make use of pre-existing apps to market your own rental listings. The following listing sites are currently using apps--by advertising your properties on their websites your units will turn up in search results when app users search rental listings on their smartphones.

Apartments.com
MyNewPlace.com
Rent.com
Rentals.com
Zillow.com

Weatherproofing: Staying Warm in the Winter Without Emptying Your Wallet

2012-01-13T07:04:00.000-08:00

It's that time of year! The time when mornings are crisper and you begin to think about frost creeping over your windowpane. (Unless you live in Texas, in which case you're probably just ecstatic that it's not 110 degrees out.) With the temperature changing and the winter months quickly approaching, it's good to start thinking about weather proofing. Weatherproofing, you say? Why? I didn't freeze to death last year! Ah, but chances are, you paid bigger energy bills than necessary. In the spirit of economy and conservation, consider making these small investments so you can enjoy the winter snug as a bug in a well-insulated rug.

Weather-strip your windows. Cracks between windows and walls? Prime place for air to leak in or out, and either way, you're paying to heat the outdoors as they say. Laying down weather-strips is a simple and inexpensive way to reduce your heating bill right off the bat. There are numerous kinds of stripping, so do a little research and pop by your local hardware store to get outfitted.

Update your storm windows. Speaking of windows, if you live in a cold place, you should be installing storm windows every fall--again, so as to heat your house and your only house. Newer windows are two or three times thicker than older models, so it might be worth upgrading your normal windows, especially if you live in a warm place and use air conditioning; heat flows in both directions. But at the very least, make sure your storm windows are up before the storm starts, so that you and your family won't be tempted to congregate in the middle of all your rooms, far from the heat-sucking glass lurking in every wall.

Turn down the thermostat, turn up the sweater. This is a no-cost, very simple way to keep fuel consumption and energy costs down--a real win-win. And yet, many people can't bring themselves to make this small change. Try our tip: start at the beginning of the season. Whatever setting you normally keep your thermostat, set it 4 degrees lower, as soon as you begin turning your heat on. That way, your body will accept the setting as natural rather that much colder than you kept it yesterday. And you'll get more wear out of those cute sweaters filling up your closet.

Insulate your body. Sweaters are great; rugs, and warm sheets are better. If you don't want to spring for radiant floor heating, at least throw down some rugs so that your chilly tile floors don't make you want to leave the heat on 90. And make up your bed with warm flannel sheets--not only will you not mind sleeping in a house that's a few degrees cooler, you'll be thinking about how cozy your bedroom is all day long.

--Caitlin Morgan

Changing Coasts? How to Make Your Cross Country Move Stress-Free!

2012-01-12T06:25:00.000-08:00

Depending on how well-prepared you are, a cross-country move could be a great opportunity to start fresh or a complete nightmare. If you're moving far away, whether for school, work or just because you're ready for a change, you'll want to make sure that you're properly prepared and that you have enough funding to see you all the way through to your new place.

1. A cross-country move is going to be expensive: plan wisely!

If you're traveling across the country, there's really no way to do it on a shoestring budget. Though you can always cut some corners, getting yourself and your belongings a few thousand miles away is going to cost a great deal of time and money. If you're thinking about a big move, make sure you start setting aside as early as you can. The more you save up, the less stress you'll be under when the expenses start to mount.

2. Determine how to get from Point A to Point B.

When you're traveling a long distance, there are a few ways to get you and all of your things from your old state to your new one. You can drive, fly or take a train across the nation and your things can travel along with you or they can be shipped to you at your new home. Depending on the size of your family and the amount of belongings you have, one or another of these options may make more financial sense. In order to get an idea of how much transportation costs, get quotes on airfare, shipping, rental trucks and cross-country drives (including meal breaks and hotels along the way.) Comparing your options will let you know which is best for you.

3. Start planning your move well ahead of time.

Moving across town can take anywhere from one to two months of planning. If you're moving across the country, you may want to start planning as early as six months in advance. Get estimates for moving costs, start budgeting and start thinking about which items you'll be moving and which ones you'll need to get rid of. There's no need to start packing months in advance, but it does help to start thinking about the process early.

4. Get to know your new neighborhood early.

If you have friends, or friends of friends already living in your new city, you'll want to talk to them about which areas are the best to live in. If you're truly moving to a new city blind an without anyone on the other end to welcome you, use the internet to scope out your new town. There are lots of tools that can let you see and explore an area from afar.

5. Don't Save Anything for the last minute.

The biggest difference between a cross-country move and a cross-city move is that you can't go back for anything you forgot. Get your paperwork in order early and keep on top of it in the two months prior to your move. Have everything packed a couple of days before the move. If you have your things together before you leave, you'll be much less stressed come moving day.

-- Crystal Beran

Apartment Industry Booming During Recession

2012-01-11T07:16:00.000-08:00

Rental apartments are a rare point of growth n the commercial real estate industry, according to Investor's Business Daily. Developers throughout the industry are investing in large and ambitious projects; with the largest growth is in Dallas; Houston; Los Angeles; Orange County; California; and Northern Virginia. The new apartments vary as much as their locations--some large, some small, some high-end, and some economy.

Given the lag time embedded in commercial real estate, this increase in building could mean good news for years to come. Investor's Business Daily quoted Mark Obrinsky, chief economist with the National Mulit Housing Council, as saying, "At this point, there is some noticeable pickup in new construction, but a lot more pre-construction activity is going on." This is a welcome change from the past two years of building only 100,000 new units a year (compared to 300,000 units a year between 1998 and 2007.)

Why the sudden upswing in the real estate market? It's a classic case of economic supply and demand. In the lagging economy, fewer people by and maintain their own homes, so more renters enter the market. Furthermore, as the economy starts to recover, Gen Y is starting to find jobs and rent property for themselves. With both groups scrambling for apartments, vacancy rates are falling fast. Manhattan rental vacancy hovers in the low single digits, and Los Angeles boasts a 96.4% occupancy rate. A great demand and a small supply mean that property owners can ask more money for their rentals.

In fact, rents have continually and steadily increased throughout the past two years. Though the national average increase was 4.2% in the past year, some regions are much higher--such as San Francisco and San Jose, where have over 13%. MPF Research, one of our sister companies and a consulting firm for the apartment sector, estimates that rents will climb another 4-5% in the next year. This doesn't mean bad news for renters though. With all sorts of units in short supply, builders and developers are sure to expand the market for affordable (and new!) rentals, too!

--Kate Flynn

How to Handle Noisy Neighbors

2012-01-10T08:07:00.000-08:00

We've all had the experience: that neighbors who won't take their barking dog inside at night, who consider treble to be inferior to bass and makes you think there's an earthquake every time the stereo comes on, who has loud, erm, relations on a alarmingly regular basis. If you're living in such a situation now, the first step is to take a deep breath and remember the days when you partied five nights a week until 3am. We're all only human. That said, you should be able to enjoy coming home to your apartment; below are some steps that might alleviate the ringing in your ears.

1. Evaluate your breaking point. Your neighbor shouldn't have to give up his passion for drums just because you moved in next door, but he also shouldn't be playing at sunrise on the weekends. When you're feeling calm and reasonable, talk to some friends and decide what is a reasonable expectation for quiet.

2.. Speak up. Some advisors will tell you to do this anonymously, others in person. Regardless of how you approach your neighbors, do it politely. He might have no idea how well sound travels between your homes. Also, keeping your cool will make it more likely that he'll feel sorry, rather than defensive or, even worse, vengeful. And say something sooner rather than later--I once ignored the screaming of children for 8 months before losing it and drying my sneakers after midnight every night for a week. Revenge goes both ways, and I can tell you from experience, it's not productive. The longer you go without addressing the problem, the more angry you'll be, and the more surprised and entrenched-in-noisy-routine neighbor.

3. If necessary, take further action. Hopefully, one or two reminders will take care of the problem. If not, you can speak to your landlord about the issue. Tell your neighbor before asking for landlord intervention; it might be enough incentive. Review your lease for clauses about noise or "quiet enjoyment." It's possible other people living nearby would sign a petition expressing discontent with noise levels. If the situation still does not improve, even after speaking with your landlord, there are legal avenues for recourse, depending on when the noise occurs. Most cities have noise ordinances, times after which residents much respect the sleep of their neighbors. Complaints must be made at the time of obnoxious, illegal loudness, however.

4. Keep records. From your first complaint, document all communications about the issue, and any instances of unreasonable noise. This documentation will make it easier for you to specify your concerns with the guilty party, and will hopefully keep you from looking like a Complaining Connie when you speak with your landlord.

--Caitlin Morgan

Snow Removal Done Right

2012-01-09T08:21:00.000-08:00

If you live east of Nebraska, chances are you've spent a lot of time thinking about snow lately. As cozy and idyllic as it can be to watch flutter to the ground when you're safely tucked away by the fire in your living room, snow is a very different beast when you're forced to contend with it. Particularly this winter, when a new blizzard seems to be blowing in on a weekly basis.

As a property manager, contending with mother nature is part of the job description. Some cities even have laws mandating that you are legally responsible for removing snow and ice from the public sidewalks in front of your property. Even if your town doesn't have such laws, it's still in your best interest to get rid of that snow. Should someone happen to slip and fall in front of your property--which is all too easy to do right now--you may be legally responsible.

Let's begin by looking at the areas you'll want to shovel:

1. A clear path leading from the sidewalk to your property's entry door.
2. A clear path leading from the driveway/parking lot to the closest door.
3. The driveway.
4. The sidewalk area around/on your property.

In addition to shoveling these areas, you will also want to scatter salt and/or sand to ensure people don't slip on any remaining ice.

With that in mind, what are your options for removing snow and ice?

Do it yourself. If you opt to remove snow yourself, remember, it can be hard work. If you live in a snowy climate, chances are you've seen news stories about individuals suffering cardiac arrest while shoveling. Aside from this worst-case scenario, anyone can cause themselves physical injury, pain, or simply more work than is actually necessary when shoveling if done incorrectly.

Offer tenant discounts. If you have a willing and able tenant, discounting rent in return for snow shoveling can create a great win-win situation. Your tenant saves on rent, and you get your snow removed. If you choose this option, figure out the going rate for snow shoveling in your area (you should be able to determine this with just a few minutes on your local Craigslist page). Have your tenant track time spent shoveling, then multiply by the average show-shoveling rate. This amount should then be deducted from the tenant's rent. One word of caution: be sure to make it clear to your tenant beforehand that you expect them to do a thorough job. If you are embarking on this scenario for the first time, check out the tenant's work upon completion to make sure it's a job well done and that all necessary areas are clear and safe.

Hire contractor. Hiring a contractor to take care of your snow is likely the most hassle-free way of getting rid of that snow. Again, Craigslist can be a great resource. Alternatively, ask fellow property managers and owners for recommendations. If you're really on top of things, you may want to locate a contractor before the snow hits and their schedules fill up.

Property Management: Steady Work with a Solid Future

2012-01-06T08:34:00.000-08:00

Property management is a well-defined profession with solid growth prospects. Over the next ten years, experts predict that jobs will increase between 8% to 18%. At the same time, it is also rated as one of the best jobs in America. According to a recent story on CNN, commercial property management is one of the best jobs top have with median salaries around $75,000. The rating further states that our industry has a personal satisfaction rating of "A" and a job security rating of "B."

This is great news for current property managers and job seekers alike. Job growth, security and job satisfaction are all ingredients of a promising career. However, to win the best jobs, you need to stand out from the crowd...

I think training and certifications are the keys to get noticed. So, here I present my top 5 tips for building a successful career as a property manager.

1. Education and training are crucial. Property owners know the best method for securing consistent revenue and maintaining expenses is to have well-trained people; they know this is a solid investment.

With education you are creating a transferable skill set. For maximum opportunities, a four-year college degree or industry training is the right place to start. A major in real estate, business or communications compliments a career in property management.

The real decision-making time happens before you enter the profession. You need to consider your personal career objectives. Real estate, like law, has many career tracks. Finding one you enjoy is important for job satisfaction. First, identify those specializations that are in high demand, and match these with your area of interest. By doing this, you are providing yourself with maximum flexibility in the job market.

2. Professional designations. Adding to your credentials sets you apart from the competition and confirms your commitment to the profession. Beyond a college degree, advanced training affirms your willingness to devote time, energy and effort to becoming a knowledgeable professional.

The best time to gain credentials is early in your career. This allows for greater responsibility, like having a greater number of assets under your management (i.e. more people reporting to you.) This level of responsibility leads to greater salary increases.

When considering designations, the right one depends on the size and type of property managed, and whether or not your interest is in site management or asset management. Here are a few to consider:

Certified Property Manager (CPM) is a professional designation awarded by the Institute of Real Estate Management (IREM) and recognized by the National Association of Realtors (NAR). This designation is the most established and takes the longest to acquire. It is well-known and has a high level of acceptance industry-wide.

Accredited Resident Manager (ARM) is a professional designation awarded by Institute of Real Estate Management (IREM).

Certified Apartment Manager (CAM) is a professional designation awarded by the National Apartment Association (NAA).

Certified Apartment Portfolio Supervisor (CAPS) is a professional designation awarded by the National Apartment Association (NAA).

Registered in Apartment Management (RAM) is a professional designation awarded by the National Association of Home Builders (NAHB).

3. Become a thought leader. As your career and experience advance, your knowledge, skills and abilities become a valuable resource. With time and age, people expand their knowledge from learning to doing to teaching. People want to connect with you when you're in a leadership role. Embrace this.

With experience, consider sharing your knowledge with the talented up and coming professionals following in your footsteps. Sharing your intelligence can sometimes change the perspective and enhance outputs throughout an entire organization.

4. Incorporate new technology. Stay current. Be an early adopter. Be well read. The technology cycle continues to shorten. Seldom is there a full twelve months between new releases of anything technology based. For example, most property management software vendors offer updates on an annual if not quarterly basis. You cannot ignore this.

Today we discuss social media and tablets, tomorrow these forms of communications will have adapted to the next cycle of technological rendition. Right now, transitioning tenants to secure electronic rent payments is all the rage. This is not to say that technology should rule your professional life, but it is the life blood of making certain your skills are relevant in the marketplace.

5. PM is a global business. Property management has a presence around the world. With quality training and language skills, the world is your oyster. If you are mobile, consider taking the best opportunity that can be identified in any location that fits your fancy; London, Athens, Bahrain.

Borders are meant to be crossed. Get a passport and expand the job search to companies that desire your services. As a subject matter, expert in property management, your potential employers are coast-to-coast and international.

Career choice is very much like taking a road trip; no matter where you start, it's always easier to get to the destination when the trip is mapped out first. Choosing a career in property management requires interacting with people of every stripe. Remember to think twice and speak once. It is an engaging and rewarding profession. Once you have decided to make property management your profession...jump in with both feet!

- Property Management Software Guide

Do Short-Term Rentals Make Sense for Property Managers?

2012-01-05T07:00:00.000-08:00

Short-term rentals, of all natures, have become a hot commodity--and a controversial one at that. Short-term rentals can include vacation rentals and temporary housing, often sought by vacationers, business travelers, or people who have recently relocated while seeking long-term living arrangements. Either way, it's become an ongoing topic of debate and an attractive investment opportunity for property owners and managers. In comparison to traditional rentals, short-term rentals can charge significantly higher rates given their nightly and weekly availabilities. Some property owners have earned as much as 25% of their mortgage in a single night. And during special events or peak rental periods in a given area, potential rental rates can be very attractive to property owners. Because of the income, short-term rentals can procure, the opportunity for profit potential may be exponential--but there are several considerations that should be kept in mind.

First and foremost, it's essential to keep the added costs of maintaining a short-term rental in mind. These rentals can be subject to Hotel Occupancy Taxes in certain cities, while other cities require specific licensures and inspections not required of traditional, long-term rentals. Penalties for not abiding by short-term rentals in your city may result in hefty fines. There can also be increased insurance costs. Additionally, the cost of regular upkeep and maintenance, including utilities, should be calculated. In order to continually attract tenants, your property must be kept in prime condition, both functionally and cosmetically. From a marketing perspective, this could include offering unique amenities like sporting equipment or movie libraries, all of which are additional expenses. On the flip side, the regular maintenance of these properties has been credited with helping to increase neighboring property values.

Legal issues are another important consideration given the ongoing public debate and subsequent restrictions arising in many cities. Some city officials and neighborhood associations oppose short-term rentals for many reasons including a fear of transient tenants potentially bringing chaos and crimes to communities, noise and parking complaints and a failure to fall under the same standards required of local hotels. Because ordinances, zoning limitations and overall restrictions are popping up all over the country, it's necessary to be aware of the possibility of your property being restricted by new laws. New York City, for example, has recently banned all rentals under 30 days. Though San Francisco has a written law of the same nature, it's instead levied a 15-16% transient occupancy tax that reaps millions of dollars in revenue for the city.

Aside from the considerations that should be kept in mind, there seems to be a well of favorable reasons to contemplate short-term rentals. Short-term property managers prefer these rental types for many reasons, and for many reasons other than the revenue potential. Property owners who have a sentiment for a home they're renting on a short-term basis claim it allows for a more feasible preservation of a home, allowing regular entry and ongoing maintenance and beautification that isn't typical of long-term rentals promote tourism in communities, particularly communities who may not have optimal hotel capacity during peak visiting periods. And lastly, there's hefty tax breaks that are sometimes associated with the maintenance costs of operating a short-term rental. Advertising and maintenance costs as well as high-ticket improvements can also be tax deductions.

With all these things in mind, it's important to calculate both the pros and cons associated with short-term rentals before diving into the deep water surrounding them.

- Ashley Halligan, Analyst, Property Management Software Guide

Tenant Referral Programs--Are They Worth It?

2012-01-04T07:14:00.000-08:00

Let's face it--keeping vacancy rates as low as possible is any property manager's first priority. With the economy in its current state, this is truer than ever before. Today we're offering just another tool aimed at keeping vacancy rates low--a tenant referral program.

Tenant Referral Incentives--How much is Enough?
By far the most common type of tenant referral program involves offering current tenants a monetary incentive to refer a new friend, family member, or colleague to their community--the current tenant signs a lease. Although monetary incentives can come in all sizes, one of the most commonly used programs offers a $100 per tenant successfully referred. It's important to note that if you go the monetary route, incentives should match your tenant demographic--we recommend starting with an incentive that is about 20% of one month's rent. That being said, some of the most successful referral programs actually occur in more high-end properties. A wealthy person in a high-end property may be more motivated to refer a friend for a $1,000 incentive than a less well-off person would be for a $100 incentive.

Get Creative with Your Program.
You know your property better than anybody else. In order to achieve the highest adoption of your tenant referral program, it's very important to implement a program designed specifically for your unique property. This may require a little outside-the-box thinking: Are you going to offer incentives to only current tenants or to the general public? Will incentives be paid out on a per tenant basis or a per unit filled basis? Perhaps even more interesting are the array of incentives that you can offer. In lieu of monetary compensation we've seen programs that offer incentives ranging from flat-screen televisions to parking spots. We even found a program that offers referred tenants 20% reduced rent for 90 days if they lose their job. Talk about recession proofing a lease!

A Word of Caution.
Tenant referral programs can be a very slippery slope depending on the tenant make-up of your building. Always consider the history of the tenants who will be referring new tenants to you. If a current tenant is frequently late with their rent or has been the subject of several noise complaints, the tenant that they refer to you may act similarly. You must make sure that you are abiding by the Fair Housing Act, so if you have some major problem tenants, it may be best to not offer a tenant referral program--you might find yourself with more of the same.

While offering monetary incentives or luxuries like flat-screen televisions and parking spots may seem out of your reach in this economy, you need to think about the income to be gained rather than the money spent. Ultimately a newly signed lease will almost always bring in much more money than a few hundred dollars paid out in incentives.

New Year, New Apartment? Consider These Hidden Costs of Moving

2012-01-03T12:13:00.000-08:00

There's no doubt about it: moving is expensive. How expensive? Well, it's been said that you should carefully consider all the expenses you'll incur: the boxes, moving van, cleaning supplies, first and last month's rent, deposit, and a healthy chunk of spending cash aside for things you didn't need in your old apartment that you will need in your new one and then triple this figure to get a somewhat accurate picture of how much you'll be spending to move into your new place. Here are some of the most overlooked expenses that can make the move much more costly than you though it would be.

1. Days off work. Moving takes a lot of time. You've got to pack up all of your things at the old place, cart them over to the new place and set them up so that you have some manner of livable space. Then you've got to go back to the old place and clean it up so that you don't lose your entire deposit. Even if you've planned ahead like a genius, gotten your packing done early and timed your move so that you don't have to take any days off at all, you're going to be exhausted at the end of your move. You'll have given up all your free time and you may need to take a mental health day once you're all settled in. No matter what, you'll be running yourself down and you'll need some time to recuperate. Factor this into your moving expenses, especially if you work hourly or for tips.

2. Food. If you're just moving across town you may be able to bring your food with you but chances are, at the end of a long day of moving, you won't have much energy left over to cook yourself a meal. All those pizzas and take out dinners cost money--quite a bit more than homemade meals do. And don't forget that if you've got friends helping you move that you'll need to buy them dinner and drinks at the end of the move as well.

3. Things You Can't Find. If you've got an entire apartment full of stuff you can bet that you packed something you need on the bottom of some unlabeled box. So unless you're prepared to dig through all your things and make a mess out of your new apartment, there will probably be a few things that you'll need to buy even though you know you have them around somewhere.

4. Things that Broke. Whether you move yourself or you hire professionals, there's a slim chance at best that your things will all arrive in your apartment unscathed. Be prepared to buy replacements for all the things that broke.

5. Transportation. A moving van may cost a couple hundred dollars but it means that you'll only need to go from your old apartment to your one once. If you're moving in your car, be prepared to spend money on gas; lots of gas if you're moving 20 or more miles away. make sure that you carefully examine the cost of multiple car trips before you dismiss the moving van since driving your things over to your new place can end up costing you quite a bit more in the long run.

-Crystal Beran

10 Signs Your Property Management Company is a Success

2011-12-30T06:14:00.000-08:00

While profitability is one great sign of success, there are also many other less tangible indicators that your property management business is doing well. Following is a list of ten signs you're running a good property management shop. How many items on this list apply to your business?

1. Your vacancy rates are low. Low vacancy rates can mean any one (and often a combination of) several good things: 1.) that you're doing a good job marketing your property to new tenants; 2.) that you're maintaining existing tenants; and 3.) that your units are generally sought after.

2. You receive new property management clients from referrals. In business, referrals are the sincerest form of flattery. When existing clientele are referring potential clients your way, it is a sure sign you're doing things right.

3. You receive new tenants from referrals. Chances are tenants whop are displeased with your property aren't going to recommend your property to their friends. As with client referrals, tenant referrals speak kindly of your work and may also indicate that you've successfully instated a good tenant referral program.

4. Your tenant stays put. They like you, they really like you! As with all business, it costs far less to keep existing tenants than it does to find new ones. If your tenants tend to remain in your units for multiple lease periods, chances are you're pricing your units right and making tenants feel well cared for.

5. Other property managers contact you for advice. While it's nice to keep some secrets to your success as your own proprietary information, you should feel good about what you do every time another property manager seeks out your advice. Being viewed as an authority in the field speaks well of your skill set.

6. Associations and other professional organizations invite you to speak at events. This is a no-brainer, but if professional industry organizations are asking you to speak at events, it's a sure sign you are viewed as an industry expert.

7. You have an online marketing strategy. The size of your online presence doesn't matter as much as the fact that it exists in the first place. Maybe your company has a robust website or perhaps you limit your online activity to posting available units to Craigslist. Alternatively, maybe your favor social networking sites like Facebook or Twitter for marketing purposes. The main goal is that you have some sort of online presence, large or small.

8. Rental Agents approach you. In some areas, clients use real estate agents not only to assist them in purchasing a home, but also in renting one. Because these agents are paid to know rental properties, no one has a better overview of what's out there. If these rental agents are approaching you to inquire about availability, chances are it means your properties stack up against the competition well.

9. Potential tenants approach you even when you're not actively advertising vacant units. This means your name and/or reputation has made a big enough impact that you're a known commodity, available listings or not. Credit this to great marketing, great properties, or great customer service skills (or a combination of all three!).

10. You like coming to work every day. If you enjoy what you do, you're probably good at it. In property management, you deal with so many people: property owners, tenants, and vendors. Contentment in the workplace tends to translate to better relationships all around, and this means everybody wins.

New Year, New Apartment? Here's a Moving Essential Checklist!

2011-12-29T08:51:00.000-08:00

Moving into a new apartment in the new year? Here are a few things you'll want to be sure to have around on your first day! If you're moving from an old apartment into a new one, be sure to label your boxes well so that you know where to find the essentials. You may also want to pack these things together. If you're moving into your first place, be sure to buy these right away since you'll use them every day.

In the Kitchen:

A few easy meals such as frozen dinners or packaged dinners from the counter at the grocery store. These are a bit less expensive then take out from a restaurant and just as easy for the end of long days of unpacking.
Drinks: coffee or tea for the morning, milk, juice, soda and plenty of bottled water. make sure you have the drinks you like on hand.
Snacks. Moving day is a great day to splurge a little and give yourself some of your favorite treats. After all, carting your boxes around burns about 400 calories an hour.
A microwave over. If your apartment doesn't have one in it, this is a great investment.
Paper towels.
Sponges.
Dish soap.
Silverware and a couple of plates, bowls and glasses. If you have some from your last apartment, make sure you know where to find them. If not, you may want to start out with a few inexpensive, heavy-duty plastic dining sets.
Garbage bags.

In the Bedroom:

A lamp, especially if your bedroom doesn't have an overhead light.
A few good books and magazines since it can sometimes take a couple of days to get the internet and cable hooked up.
Clothes for the next week. Consider packing a suitcase for your first week so that you don't have to dig through your entire wardrobe in search of socks.

In the Bathroom:

Toilet paper. Though asking for a roll can be an interesting way to meet your neighbors, better if you're not dancing on their doorstep when you first introduce yourself.
Soap.
Toothpaste and a tooth brush.
Shampoo, conditioner and body wash.
A bath towel and a hand towel.
A rug so that you don't flood the bathroom floor your first morning in your apartment.
A shower curtain if your apartment doesn't have one.

In the Living Room:

A set of speakers that you can plug into your iPod or smartphone. This way you can listen to music while you unpack and while you get settled into your new place.
A comfy place to sit. If you don't have furniture, a bean bag chair is a great first piece of furniture though you'll want to get some more furniture in the apartment before you throw your housewarming party.
A lamp--again check to see if your apartment has an overhead light. If not, it's going to get dark that first evening.
A game or puzzle to relax with, especially if you have some friends or family helping you move.

--Crystal Beran

Moving with Kids? How to Choose a Toddler-Friendly Apartment

2011-12-28T06:44:00.000-08:00

Finding the perfect apartment when you've got a toddler can be a bit more complicated than apartment hunting for adults. Here are a few things to look for.

Other Kids in the Complex. If you've got a small child, one of the best things you can do is move into an apartment complex with lots of other children. Arranging play dates and signing your kids up for activities is great but kids also need time to play in an unstructured environment. Playing with other kids helps children learn to get along with others and problem solve. Kids who have lots of free play will grow up to be more secure and independent than kids who spend most of their time in structured play. If there are lots of kids around, there will more opportunities for your little one to make new friends and free play.

Proximity to Parks, Libraries and Schools. Being within walking distance of the park or library will make it easier to visit these places more often. If the school is around the corner, when it's time to send the kids off to kindergarten there won't be any need to worry about busing or battling the morning traffic each day. As a bonus, walking to these places will help improve your child's physical fitness. You may also want to look for an apartment community with a park onsite.

Distance from Roads. With little kids, you can't be too careful when it comes to roads. If you're going to let your child play outside, which is almost always a good idea, make sure you choose a complex that is offset from the main, busy roads in your town.

Plenty of Sidewalks. An apartment complex with plenty of sidewalks around it will make it much safer to walk around with your child.

Gates around the Pools. Pools are a lot of fun for kids, but they are almost always unsupervised. If you would like to live in a complex with a pool, make sure that the gates lock properly so that your little ones can't wander in accidentally.

Railing on the Balcony/Well-Enclosed Patio. If you're on the second or third story of your complex (or above if you're in a high rise) be absolutely certain that the railing around the child-proof. This means that the bars should be close enough together that a child can't slip through (or slip a head through, getting stuck in the railing). They should also be free of horizontal bars so that toddlers can't climb up to the top of the railing. If you're on the ground floor, look for a unit with a well enclosed patio and a gate that locks. The walls should also be high enough that people walking by can't look in.

Steepness of the Steps. If you've got a new walker and your apartment is up a flight of stairs, make sure that the steps aren't too steep so that your toddler can climb up and down on his own. Stairs should also have a rail that keeps a toddler from slipping off the slides.

--Crystal Beran

What to Consider in Your First Married Home

2011-12-27T09:03:00.000-08:00

There's no two ways about it: Building a home as a married couple can only be learned through trial and error. But that doesn't mean you can't get some pointers along the way. Below are some things to ponder when making that biggest of moves.

Think about what it could look like, not only what it does look like. A house or apartment can change radically depending on how much renovation you do, and how you like to decorate. Read up on home renovation and decorating blogs, and see what appeals to you. Knocking down a wall, putting up a temporary wall, wallpapering a drab room...the possibilities are limited only by your imagination (and budget, and and landlord). An unappealing apartment can look like a dream house with enough work and vision.

Figure out your priorities. Do you need a park near by for Buster? Does your passion for woodworking require a garage or basement? Do you have a million heirlooms needing space for display, or would you like to pack most things away into lots of storage space? With your partner, make a list of "musts" and "shoulds," i.e. the things you absolutely need in a home and then things you'd have in an ideal world. Compare your ideas to see where they overlap--and if they conflict.

Then, compromise. Although you should have your list of priorities in hand, go into home-shopping with the knowledge that you probably won't get everything your heart desires. That's okay, as long as you can bounce back. Nothing can taint the first few months of marriage like pouting over the window size in an apartment that your spouse just adores.

Find someplace you really love. Eventually, it all comes down to feeling. Does the place excite you? It may take time, and money, but finding the perfect pad to house your wedding bliss can help make the good parts of a marriage seem great, and the lousy ones more bearable. Remember, you may have to drag your partner to dozens of locations, but the lengthier the "no thanks" list, the more that final "yes!" decision.

--Caitlin Morgan

Keep Your Apartment Safe Over the Holidays!

2011-12-22T06:39:00.000-08:00

If you're traveling during the holidays, chances are that you have a lot on your mind. In the midst of cooking, gift-wrapping, and stockpiling warm clothing, make sure that you don't forget about the home sweet home. Follow these easy tips to keep your apartment secure while you get into the holiday spirit far, far away!

Find a point person. Make sure you have a man (or woman) on the ground, who can be responsible for the essentials--stopping by once a day to bring in the mail and make sure nothing is amiss. A few days ahead of time, give him or her all keys needed to get into the house and phone numbers to reach you during every portion of your trip. Also, make a list of other tasks you need--plants watered, fish fed, etc. If you have a cat or a dog, make sure you've booked a kennel or a pet-sitter and packed all that they'll need.

Having one person take care of everything will make the time away much easier on you. It will also prevent you from having to tell the whole world that you're leaving...and up your chances of a break-in.

Prepare for the trip. Get an early start on all your packing, so that you can devote the last few hours to making sure that everything in your apartment is in good shape before you leave. If you have to venture back in the door after hitting the road or hailing a cab for the airport, you're more likely to be in a hurry and leave the door unlocked or the iron on. Also, if you're trying to pack and close up at the same time, you may get distracted from one task. Make sure you have the essentials: wallet, ID, keys for your return, computer, camera, phone, and all chargers. Also, think about what you need to do before you can go: if you're flying, check in online and weigh your bags; if you're driving, check your oil and tire pressure.

Prepare Your Home. Now that you're ready for the trip, figure out what loose ends you have at home. To ensure a sweet-smelling apartment when you return, take out the trash and get rid of all your perishable food. Before you leave, pay all the bills for the month. Save electricity by unplugging everything you won't use while you're gone, such as coffeemakers, toasters, and charges of all kinds. Avoid frozen pipes by keeping your heat on while you're gone; just set it to the lowest possible setting.

Pretend You're There. Late December is one of the most popular times to vacation, so burglars are on the prowl. Make sure your apartment looks as normal as possible. Keep curtains and blinds as usual; if you can, ask your house-sitter to adjust them while you're gone. Nothing gives away an empty home like a bunch of dark windows, so invest in a few light timers. Consider leaving the TV or radio on, so anyone who passes through will think that there's several people inside.

Seal It Up. Lock everything! Right before you leave, go through and make sure that all doors are secured. If you have an alarm, make sure you turn it on. Also make sure that any friends, neighbors, or house-sitters know how to relock the door and set the alarm.

--Kate Flynn

Bonuses and Incentives in the Real Estate Industry

2011-12-20T07:10:00.000-08:00

Are you in a position to create your own bonus and incentive plan that strategically builds your business, not just your property manager's pocket? Successful bonus and incentive plans are all about understanding your team at an individual level, your agency's business plan, and your market area. So, this week, let's take a look at how understanding these critical factors converts to a bonus and incentive plan where all parties--the team member, property owner and you, the business owner-win now and win the in the long term.

What happens if, for instance, the average weekly rent in your market area is $300 and the property manager has a target of five new managements per month? The property manager could in fact reach the target of five new managements, but the five properties average only $200 per week. The problem: the property's manager focus is on numbers and not quality.

What happens if the agency then increases its weekly rent on leased properties to $1000? On management fees of eight percent, this would equate to $80 per week extra income for the agency. If the incentive is a bonus equivalent to one week's rent for each new management (which seems to be the norm in most businesses), the business owner will pay $1000 as a bonus to the property manager or business development manager.

Rewarding the property manager for every management, regardless of the target, only encourages the property manager to secure whatever business they can secure, at whatever cost to the agency. Therefore, quality and the owner's need for discount are overlooked. The result--the property manager, while having a target of five new managements, still receives a bonus equivalent to one week's rent on every new management regardless of whether they achieve their target or not. What's more, they also receive the bonus regardless of whether they sign up the new management with standard full fees or charges. Therefore, the business owner's focus is solely on new business numbers and not income achieved from the new business. In other words, it's quantity over quality, a formula not strong enough to sustain growth and profitability, as it fails to provide the property manager an incentive to build the business. So, words of advice--if the agency does prefer to incentivize the team in this way, the property manager should only be rewarded on properties achieved beyond what the target for the month is.

Quantity over quality also does not provide incentive for retention of managements or income on managements. It's all about the numbers or income on managements. It's all about the numbers and hence a fundamental reason why we have so many problems and therefore a negative perception within the industry and from our clients.

The solution--shift the focus to income rather than numbers and the quality of managements will improve. For example, if the average weekly rent for the area is $300 and the achievable target is is five new managements per month, then the month's target is to increase is to increase the weekly rental income by $1500 (5 x $300 per week). The property manager's focus is now shifted from management numbers to income, so the focus instinctively switches to weekly rental returns on potential new managements.

Quality over quantity means the property manager is incentivized to achieve the best possible rental for the property owner and work to achieve the target amount in the simplest way possible. To illustrate this point, if the property manager signs up and leases two new managements at $750 per week each, then the target total has been achieved and any new management signed and leased after the target total can now be paid as a bonus incentive to the property manager. However, the bonus is not paid as a rental fee, rather a percentage of the increased weekly rental they have attained. The focus is on quality of rental and income generated, not management numbers.

Another vital component to successful bonus and incentive plans is to understand the individual. Some people are not motivated by money. So, incentivizing them with the potential to earn a certain income per year if they achieve their target is not really helping the business or the individual. For example, say an individual sees money as the "root of all evil." No matter how hard this individual may try, somehow they subconsciously (or consciously) sabotage their own efforts to achieve targets due to this deep seated belief. A simple way to overcome this is to understand the individual and gain a clear indication of what motivates him or her so a personal incentive scheme can be designed.

The individual can have a list of goals as long as their arm, but if they have a negative image of money, they are unlikely to achieve their goals. However, what a lot of individuals don't realize is that in order to achieve these goals, they need money! So, take time to understand each other's goals for the year, both professional and personal. If, for instance, they are saving for a weekend away at the coast every three months, work out how much the income needs to be increased in their portfolio if, for instance, they are a property manager with a portfolio. This particular individual could then be incentivized to achieve an increase of the nominated amount of income to be rewarded with their desired weekend away once that income level is achieved. It's a win-win for the individual, the business, and the clients, as this style of incentive-by-design motivates the individual to build while ensuring retention at the same time.

Successful bonus and incentive plans are all about understanding the individual, the agency's business plan, and the market area. They must be designed around these three factors to ensure commercial growth, retention, strong profit margins, market dominance and long-term and client loyalty.

The keys to building your business are what I refer to as the "Four Rs." Repeat. Referral. Recommendation. And the one that is usually forgotten--Retention. I look forward to blogging more about the Four Rs in future blogs, but for now my focus is on assisting you with creating successful, stimulating and result-driven bonus and incentive plans.

It's time to put on the thinking caps and get creative in designing your bonus and incentive plans. Don't forget to add some fun incentives in there too. After all, a happy team is a productive team! Does your bonus and incentive plan strike a happy accord?

- Jo-Anne Oliveri, irreviloution intelligence, Brisbane, Austrailia

Changing the Layout: How to Use a Temporary Wall in Your Apartment

2011-12-19T08:47:00.000-08:00

A temporary wall can change an apartment. It can break up an overlarge room (if you're so lucky), give you the office you always wanted, or even reduce rent by making a one-bedroom apartment into a rent-sharing two-bedroom. Read on for an overview of points to ponder when considering an additional wall in your home.

There are several ways to design a space using a temporary wall. One easy partition is zig-zag shaped; it's not intended to create a new room, but it breaks up an existing area for multiple purposes. This solution can work well in a shared room as children grow up and start wanting more privacy. The upside of this approach is that it maintains the openness and even natural light of a room. These temporary walls are relatively inexpensive, compared to building a new load-bearing wall or even moving to a bigger place.

Conversely, a temporary wall can be made to look like an original, load-bearing wall, able to fool even the most discerning guests. This approach is especially helpful when a little more privacy is in order. Walls must be fastened securely--nothing ruins an apartment redesign like part of the house falling onto an enthusiastic friend! There are many tips and tricks to installing a wall that looks aesthetically pleasing without damaging the apartment and incurring the wrath of your landlord. Although this construction can be carried out by a proficient amateur, there are plenty of remodeling contractors happy to do the job.

Be careful, though--there's a number of criteria for partitions. Walls must not block exits or sprinklers, and they cannot hinder ventilation. Changes in electrical systems must be up to building codes. Some cities have minimum size requirements in order to qualify as a "room." And some cities, or ever some landlords, may have rules against increasing your number of rooms with an extra wall. Before redesigning your whole apartment or posting for a new roommate, make sure that your changes are both safe and legal.

- Caitlin Morgan

Trying to Live Large in a Small Apartment? Ten Creative Ways to Organize Your Space

2011-12-15T09:12:00.000-08:00

In a small apartment, any amount of clutter is too much. When space is limited it's imperative to have a place for everything so that the inside of the apartment doesn't appear as if it was struck by a tornado. Here are 10 tips for innovative organization.

1. Book Shelves. They're not just for books anymore! Bookshelves are a great way to organize all sorts of things. If you're low on cabinet space, consider placing dishes or cans and jars that won't fit in the cabinets on shelves instead. If you have nice dinnerware or glassware, this can also be an interesting way to decorate the kitchen area.

2. Jars. Using jars to hold dried goods instead of bags is a great way to clean up clutter inside cabinets and keep foods from spilling. Pastas, beans, rice and legumes all look pretty inside of mason jars, as well. You might consider keeping them out an open shelf.

3. Storage Boxes. If you have some things that you don't need all year round, it might make sense to keep them in storage boxes. Many of these boxes are colored or covered in fabric so that they look nice if stacked neatly along a wall. You can also use the tops of the boxes as extra shelves.

4. Organize Your Storage Boxes. Trying to find something that's been packed away in a box can be a big hassle. If you store some things in boxes, make sure you clearly label all the contents so you can find what you're looking for.

5. Drawers. Drawers aren't just for clothes. If you have extra drawer space, consider storing jewelry inside or turning a drawer into a charging station for your hand held electronics. of course, you don't want to create a junk drawer, so be sure you keep the inside of the drawer neat and tidy so you can find all the things you keep inside.

6. Drawer Organizers. If you keep a lot of little things in a drawer, it's a good idea to get drawer organizers so your things can be kept separate. Plastic or metal organizers can be bought at office supply stores or picked up cheap at thrift stores. There's no need to use traditional organizers, though, any set of small containers will do, including muffin tins, tea cups, bowls and even egg cartons.

7. Hooks. Hooks can be used for a variety of different things. They're great for jackets, hats and scarves in the bedroom, towels and robes in the bathroom and mugs, pots and pans in the kitchen. Using hooks helps keep bulky items out of the way while still easy to get too. Stick-on hooks are very inexpensive as well, though not as strong as hooks attached to the wall with hardware.

8. Tall beds. If you need a place to keep storage bins, consider getting a raised bed frame. These allow for storage in what would otherwise be wasted space.

9. Futons. In a studio apartment, one way to get around the question of whether to get a couch or a bed is to get both in the same piece of furniture. beds that convert easily can be switched into couches whenever guest arrive.

10. Purge. If you have too much stuff to organize in your apartment, it may be time to get rid of some of it. Go through some of your things and consider whether you've used them in the past year. If you haven't, chances are you're not going to use them again.

- Crystal Beran

Tips for Planning all Your Holiday Celebrations!

2011-12-12T07:33:00.000-08:00

As Frosty the Snowman would remind us, we're in the midst of the "most wonderful time...of the year!" However, that also means that the busiest time of year is upon us. Now that apartment guru Ron Leshnower has warned you about the perils of decorating, here's our short list to guide you through a picture-perfect December!

Decorations

Once the halls are decked and the snowflakes are up, you can't help but feel festive. Plan some decorating time in advance: weekends provide plenty of time, but weeknights can help you draw out the experience. Before you begin, make sure you know where your decorations are stored and where they are going. Do you need a stand for the tree? Special candles to avoid setting off the smoke alarm? Hooks, nails, and fishing line to hang everything?

Parties

Whether you're hosting or attending, holiday parties are a great reason to relax and see the people you love. To make sure you cultivate cheer (and not anxiety!) start scheduling early to avoid any conflicts. keep a calendar with dates for any work parties, tree trimmings, neighborhood caroling, or cookie decorating. Also, if you have a number of events this winter, keep a few easy and tasty recipes on hand so you always have something to bring.

Holiday Trips

What do your BIG plans entail? How are you spending he holidays themselves? If you're planning to travel, make sure you have your flights and routes mapped out ahead of time, and that you've given yourself plenty of wiggle room; snow, ice, sleet, and rain can really slow things down. Make sure you have someone to bring in the mail, feed your cat, and keep an eye on the apartment.

Presents

Need I say more? Unless you've been avoiding stores, television, radio, and e-commerce for the past few weeks, you're probably already feeling some pressure to make a list and check it twice. Our best advice on this front is not to stress. Brainstorm some ideas for everyone on that list, create a budget for each person, and then hit the stores. If you're the type to giftwrap, make sure that you have all the necessary supplies on hand; wrapping paper, gift bags, tissue paper, tape, scissors, and ribbons or bows.

- Kate Flynn

The True Value of a Property Management Company

2011-12-09T07:03:00.000-08:00

Before doing business with a property management service, a property owner must feel that the company's 8-10% management fee is valid and deserved. When you take a call from a prospective client, you must sell yourself based on what you truly offer. This article covers some key areas to explain when discussing your company's role in the business.

Responsive service. If a manager doesn't handle all incoming rental leads quickly, you can believe that they'll move on to the next listing. In a market where the competition for renters is stiff, you need to jump on every opportunity. Also, responding quickly to maintenance or payment issues is of utmost importance.

Ability to deal with all types of tenants. Being a landlord sometimes requires less-than comfortable interactions with tenants. Your role is to serve as their liason in all dealings no matter what. At the same time, understanding and compassion is a key trait. Your company must react to each situation in a way that best reflects the interests of the property owner.

Experience in marketing and applicant screening (judging the good from the bad). One bad tenant can turn a profitable venture into a money pit. Owners benefit from an established procedure that a property manager uses. Appropriate market analysis, tenant screening, and statement accounting till ensure that the property is well-managed. In most states, a property manager must be a licensed real estate agent, which means we understand the laws and duties that are required.

Guru of home maintenance and repair. While much of the time will consist of quiet enjoyment on behalf of the tenant, maintenance and repairs will occasionally be necessary. Whether it's unit preparation in between tenants or a plumbing issue, property managers diligently supervise all work done by their preferred vendors.

Value for Service. The industry standard is 8-10% of collected rent and 50% of the first month's rent for tenant placement. While this represents and additional cost to the property owner, it ensures that the property will be well-managed. There should be no mark-up on maintenance or repair, and any funds resulting from late fees or penalties should belong to the property owner.

A property management company is essentially a partner in the rental business. A company that exhibits these traits will become an essential entity and ensure the best chance of success.

- Andrew Payne, Louisville Property Management, Louisville, KY

Host the Holidays in Your New Home

2011-12-07T06:43:00.000-08:00

Have your friends and relatives confused the holidays with a housewarming party? Is your apartment swarming with guests when your boxes are barely unpacked? Don't worry; it can be easy to host the holidays in your new place. Just follow our tips below!

Two birds, one stone. Use this as an opportunity to clean house, get the last of the boxes unpacked, and hand curtains, paintings, and hooks. You'll impress the gaggle of guests, and when they leave, you'll feel much more at home.

Ask your friends for rentals. Everyone is leaving town at this time of year, so why not take advantage of it? many people have purchased blow-up beds or cots at one time or another, only to stash them in a closet or stuff them under the bed. See if you can borrow one (or two or three...) for the weekend, and your friends will be happy to see them used. Better yet, see if anyone needs a "housesitter." You gain some extra space, and your neighbors don't have to worry about their pets and pads while they're gone.

Break with tradition. A new home is a great time to invent new ways to celebrate the holidays, especially if the old routines are no longer feasible (Watching The Game on your 12-inch laptop? A 10-foot Christmas tree with 8-foot ceilings?)

Make your meal foolproof. Do as much as you can ahead of time. In general, buffets offer more flexibility than plated meals, and anything that comes in a casserole dish will make your life easier. Substitute Paula Deen's awesome baked French toast for pancakes; forget about the time constraints of fluffy mashed potatoes and prepare some twice baked potatoes a day in advance.

Accent help. People are coming to visit you because they love you; remember that you're not filming a show with Julia Child or Martha Stewart. Nearly every host hands out assignments, and you should do the same. Suggest a BYO of any sort...booze, dessert, bedding, or music. People understand that you've just moved in and have way more on your plate than turkey and stuffing.

Enjoy it. Having company is a great excuse to see your world through a different lens. A mellow holiday gives you time to experience your home as a guest would, so sink into the leather couch and appreciate how homey your new apartment looks. If you've just moved to town, you have the perfect excuse to finally check out all the tourist attractions.

Should I Allow Tenants to Make Unit Upgrades?

2011-12-06T06:50:00.000-08:00

Every now and then, a tenant offers to make repairs to the unit he's living in. Often, such offers are made in exchange for rent (in other words, the cost of the repairs is deducted from the monthly rental rate). In other instances, the tenant simply wants certain upgrades in his unit (a new paint job, removed carpet, etc.) and offers to do them himself.

Clearly, there can be benefits to this sort of situation: You receive property upgrades at a reduced (or negated) cost, and your tenant gets to customize the unit to his own preferences. Unfortunately, though, there can also be some pitfalls. All too often in these scenarios, tenants are not qualified to complete these upgrades or updates up to par. The result is unfinished or sub par work that ultimately becomes your responsibility to rectify.

Not only this, but such deals can also result in sticky financial situations and-in extreme situations-legal problems. Let's say that one of your long-time tenants wants to repaint his living room from the standard white all of your units are painted in to a more colorful rustic red. You agree that the color would suit the place well and tell your tenant they can deduct the price of paint and labor from his next rent payment.

When the first of the next month rolls around, the tenant presents you with a painting bill that accounts for most of his monthly rent. You ask to check out the living room and find that not only is the paint a much different shade of red than you had anticipated, but also the paint has been shoddily done. It's uneven, red paints runs over the edges and is splashed on the white ceiling, and has also splattered over the carpet. Clearly, this is not what you had bargained for, but your tenant argues that you agreed he could deduct painting costs from rent. You are now faced with either battling over rent money with your tenant or eating the cost to keep the tenant happy. Not only this, but you have lost money because you will have to repaint and re-carpet for the next tenant once this one vacates the unit.

Unfortunately, situations like this occur frequently when tenants take on repairs and upgrades themselves, no matter how good both of your intentions are. While it's true that some of your tenants may be perfectly capable of taking on repairs and upgrades themselves, this is not a skill you can identify simply by how responsible your tenant is in other areas.

With all of this in mind, even if some tenants are perfectly capable of taking care of upgrades, you are best to make an across-the-board rule to avoid conflicts with all tenants: Repairs and upgrades can only be completed by licensed contractors at your discretion.

You do what tenants to feel at home, though. This is one of the ways that you keep long-term, desirable tenants. So when tenants come to you with this sort of request, make sure you let them know that you understand why they would like this upgrade but that, unfortunately, your contract does not allow for tenants to alter units, whether it's paid for through a rent break or is free. If you do feel that the upgrade is viable (for example, a tenant in a particularly hot apartment wants to install ceiling fans), consider hiring a contractor to do the work the right way at some point in the near future. It may cost you more up front, but you can rest assured that the wok will be done correctly and your good relationship with your tenant will remain intact.

Moving out of your apartment? How to get your security deposit back in full!

2011-12-05T10:36:00.000-08:00

An apartment landlord will take a deposit from renters for a variety of reasons. The deposit can help cover the cost of rent if a tenant can't pay one month and it can cover the costs of cleaning that landlords need to font after their tenants move out. While there's nothing wrong with paying a deposit, this fee can get lost in the shuffle. Here are a few ways to work with your landlord and protect yourself so that you can make sure you get your deposit back at the end of the lease.

1. Document the state of your apartment when you arrive. When you first move into a new apartment, the most important thing to do is take photos and video of the unit. Perform a walkthrough with the landlord and check off the form your complex gives you but take it a step further and, instead of just writing that there is a crack in the bathtub or that the paint is peeling inside the master bedroom closet, take a picture to go along with your written description. Make absolutely certain that you examine every element of the apartment thoroughly. This means you'll need to open up cabinets, test out all the windows and perform much more than just a cursory glance of the apartment. The more thorough you are in the walk-through, the more protected you'll be when it comes time to get your security deposit back.

2. Take good care of the apartment when you live there. Whether you'll be in an apartment for six months, a year or a decade, the best thing you can do is treat it as if it belonged to you. Clean up messes as soon as you find them, repair anything that becomes damaged and be gentle with the apartment. The best way to get your deposit back is to give your landlord no reason to spend it.

3. Clean up thoroughly when you move. Unless you have some professional cleaning experience, it's unlikely that you'll be able to clean the apartment to pristine condition but that doesn't mean you shouldn't try. Clean everything you can: the inside of the cabinets and drawers, the windows, the walls, the carpets, the appliances. Make sure everything, including the garbage is out of the house as well. If you've laid the groundwork, a professional crew may only take an hour instead of half a day, saving you a lot of money. If you've given it a decent try, it's also possible for the landlord to decide to pick up the tab on the remainder of the cleaning bill.

4. Document the apartment on your way out. Perform another walk through with your landlord after you've moved out and cleaned the apartment up. Again, you'll want to document everything in writing and in video or photo. Agree on anything that needs to be fixed and get everything in writing so that there aren't any surprises later.

5. Know your rights. Some states require that the deposit be returned within a couple of weeks while others give landlords a couple of months to pay back tenants. Some states may also require that the landlord pay interest on the deposit. Know the laws in your state so that you're able to get everything you're entitled to.

- Crystal Bean

New to Town? Here's How to Cope!

2011-12-02T07:09:00.000-08:00

It takes time to get to know a new city, and this time can be bewildering and frustrating. Fortunately, there are a number of things you can do to help familiarize yourself with your new surroundings when you move into a new apartment. Follow these simple tricks and tourists visiting your new town will be asking you for directions in no time.

1. Get a map. One of the best ways to get to know a new place is to familiarize yourself with the layout of the city and any neighboring towns. You can pick up local maps at gas stations, book stores, librarians or for free if you're a member of an automobile club such as AAA. Take some time to study the map at home and learn the names of some of the major streets. This way, when you're asking for directions, you'll have a rough idea of where you're going. If you want to go green, you can also study online maps from Google of MapQuest.

2. Visit the library. The library is a great place to get information about your new town. They often have copies of local newspapers and may have a community bulletin board where events can be posted. the librarians are also a great resource, and it's quite likely to find one who's lived in your town for a long time. Librarians are usually happy to help give you any kind of information you may need about your town.

3. Read the local newspaper. You don't ready a local newspaper for superb coverage of world news; you read it to learn what's happening right in your hometown. If you're new to a place, reading community newspapers will help you get a feel for the town. There are also likely to be local events like concerts, art shows and sports games listed in these papers, which are great places to meet other locals.

4. Visit local shops and markets. If your new town has a farmer's market, this is a great place to go learn more about the town you live in. People mill about for hours in these markets and it's not too difficult to strike up conversations with strangers. Ask questions about the town and introduce yourself to people in the market. The same holds true for local coffee shops, restaurants and stores. If you let people know that you're new around town and hoping to learn more about it, many people are more than happy to share their knowledge.

5. If you've moved to a big enough city, visit the local tourism office. While you may technically be a local in your new city, in many ways you're more like a tourist when you first arrive. There's nothing wrong with heading out to participate in tourist activities when you first move to a new place, especially since it can help you learn more about your city's history. True, the locals may not be riding bicycles across the Golden Gate Bridge or climbing to the top of the Statue of Liberty, but that's mostly because they've already seen the sights.

6. Use your social networks. Last but certainly not least, when you switch your town orientation on Facebook, Twitter, and your various other social sites, you will be able to see a whole new group of locals. Sending few messages to interesting people, or finding cool groups that are aligned with your interests could really help you get out there. Also helpful are online message boards and neighborhood even calendars. Be diligent--we're sure there's tons of interesting folks right around the corner.

- Crystal Bean, My New Place

10 Property Management Pitfalls

2011-11-30T08:06:00.000-08:00

Let's review some indicators that it may be time to make some changes (after all, the time for New Years' resolutions is just around the corner!). Following are a few red flags to keep an eye out for in your property management business.

1. Lack of referrals. This applies to both tenants and property owners. In an ideal scenario, you should be creating a web of referrals that expands year after year. If you're not, it may mean that 1.) existing tenants and clients aren't confident enough in your work to refer you or 2.) business-building incentive programs are not in place.

2. Haphazard organizational systems. If your office doesn't have an organizational system in place for things like accounting, rent payment tracking, and maintenance requests, your efficiency and accuracy may be taking a hit. An investment in property management software will pay off big in the long-run.

3. Sporadic maintenance schedule. Staying on top of regular maintenance (like winterizing) and repairs will keep your property value up and your tenants happy. Creating and sticking to an annual maintenance check-list is the most sure-fire way to stay on track.

4. High turn-over. This applies not only to your tenants, but also to your property management staff. While people move on for any number of reasons (both personal and professional), a consistent pattern of frequent turn-over indicates it's time to take a look at your property management and business management practices. Happy tenants and employees both tend to stick around.

5. Offline. Are your apartments listings online? If not, they should be. Dip into the online rental listing pool through sites like Craigslist.

6. Slow Response Time. Do you make a point of getting back to rental queries and tenant communications within a 24-hour period? If not, you could be losing out on potential tenants and letting your tenants' best interests fall to the wayside.

7. Lack of goals. Having both long-term and short-term goals helps ensure your business not only stays on track, but continues to grow and improve over time. If you have not yet made a point of establishing business goals for yourself, 2011 is the perfect time to start.

8. Missed annual review. Speaking of goals, a great way to determine areas for growth and improvement is through the completion of a thorough annual review. Reviewing your properties, tenants, staff, office procedures, accounts, and marketing programs on an annual basis and honestly identifying your successes and failures will help your business continue to grow and improve. Not doing so can result in stagnancy and missed opportunities for improved processes, cutting costs, and streamlining.

9. Non-compliance. Do you make a point of attending seminars or other informational gatherings at least once a year to learn about changes to FHA, ADA, and other federal, state, and local law changes that may affect you and your property? If not, it's important to begin doing this immediately--laws change quickly and it's all too easy to fall out of compliance without realizing it.

10. Slacking on screening. Though it can be a cumbersome process, it's essential that each and every tenant has a credit and criminal background check, employment verification, referrals from past landlords, and personal references. The more thorough you are, the better tenants you will have. No business is perfect--chances are you have not yet mastered every single area is on this list. But looking for business elements to improve is one of the best ways to build a red-hot property management company.

Focus on Profitability over Volume Lends to Successful Property Management

2011-11-29T07:50:00.000-08:00

One of the most important and difficult things to do as a professional property manager is to honestly assess your strengths and weaknesses and build your business around the part of the business that you do best. For those outside of the industry, a property manager is a property manager, and few people can or care to make any distinction between an HOA, multi-family, or single family manager. There are also few who make any distinction between competent professionals and slum lords.

It is not surprising that the general public can't grasp these differences. What is surprising is that many of us as property managers and landlords can't even make this distinction within our own companies and portfolios. I'm not pointing fingers here, as my company was found guilty as any other only a couple of years ago. Our property management portfolio consisted of hundreds of single family units, multi family buildings ranging from the worst of areas to the best, multiple commercial properties, as well as some associations. We had spent years building up our volume of managed properties without any regard for the type, quality, or location of the properties without any regard for the type, quality, or location of the properties that we were taking on. We were happy that our unit count was growing steadily, but no matter how many units were added, it seemed that we were not making any additional profits month over month. It was frustrating, to say the least, so we made an effort to find out what the issue was.

After taking a long, objective look at every single property we had under management, it turned out that 40% of the units we managed actually lost money. This was due to the additional overhead necessary to deal with those properties on an ongoing basis. As our management agreements expired for these properties, we made a conscious decision to terminate or not renew service for them. We have also narrowed the profile for the properties that we are interested in managing, and we continue to become a more profitable company overall. We have no interest in volume for the sake of the volume. As I continue to communicate and network with other successful managers throughout the region, it is becoming clear that many of the successful companies have figured this out as well. A few of the factors that successful property managers consider before taking on any new property are follows:

Property location
This seems simple enough, but it is very tempting to stray outside of your normal service area when you know that a new deal can easily close. However, once the property is on your plate, you need to lease, manage, and maintain that property, which could require some excessive window time in the car. It can also mean that your current vendor network may not be willing to travel to service that location. If this turns out to be a difficult property, it can easily become a losing proposition as the miles and time needed to track down outside vendors stack up.

Property Owner
This is many times the most overlooked and underestimated factor when taking on a new property. Every time that a new account is taken on, we need to consider how interactions with the property owner will go. While there is no way to predict the future, you can get a pretty good idea of a property owner's personality and attachment to their property within a couple of conversations. If the property owner's needs and expectations don't fit with what you offer, then it is best to let him or her know that and pass on the business. A high-maintenance and overbearing property owner can drain the profit out of a management deal faster than any other factor.

Property Condition
This is a personal/business decision, as there is no right or wrong answer as to what properties are "best" to manage, but it does seem that many successful companies are only really good at managing a specific range of property conditions. The company that is good at managing dilapidated 6-flats in depressed areas is generally not the same company that should be managing a pristine million dollar single family property. The methods for marketing, maintenance, and tenant relations are completely different. The vendors that will service the properties are likely different. The owners that own the properties are probably very different as well. We see successful firms focusing on their niche within the business and becoming experts within that segment of the market. If you are not well equipped to handle a poorly maintained property, it can be an incredible drain on your time and should be accounted for when deciding whether or not to take on a property. On the other hand, if you are experienced and equipped to handle a true mess of a property, there is opportunity to take on that business, as there is no shortage of subpar property to try to turn around.

Property Type
I touched on this previously, but there are very few companies who can pull off successfully managing every type of property. That's why an increasing number of firms are focusing solely on their strongest and most profitable sector. Many companies that now only serve HOAs once managed investment property and vice versa. Most management companies will still take on a huge range of property types, from a tiny low-rent apartment to a high end home or apartment or building, but the industry seems to be becoming much more specialized, as successful companies are focusing on very specific markets and property types. As our client base is becoming more demanding regarding service, it is increasingly important to become experts within our respective markets and market segments.

No matter where our strengths lie, the most important question that we need to ask ourselves when we consider taking on a new account is, "Will we be better off twelve months from now by taking this property our portfolio today?" If the answer is not clearly a yes, then it may be time to reassess our position and the profitability of that deal before committing to manage the property. Taking on volume for the sake of a higher unit count is not only costly, but can take a long time to remedy once you decide that you've moved in the wrong direction.

- Ben Holubecki, STML Realty Group, Glen Ellyn, IL

Happy Holidays Equal Happy Tenants

2011-11-23T07:42:00.000-08:00

It's the holiday season, and no one wants to be the neighborhood Scrooge. Those tenants that want to go all out when it comes to decorating for the holidays can do so in their own units, but it's also nice to incorporate subtle bits of holiday cheer to the common areas of your property. Think of it as one of those little touches that demonstrates your ongoing investment in and appreciation of your tenants. Holiday decorations are a great low-budget way to make your property more cozy and cheerful for tenants. After all, tenants who truly feel like their units are "home" will be far less likely to move.

Decorating doesn't have to cost a lot of money, nor do you have to decorate with items that require a lot of upkeep ( as we all know, Christmas trees, though fun to look at, can require a lot of regular attention when it comes to sweeping up and keeping them watered--not to mention the fact that a dry tree can be a fire hazard.) Consider incorporating one or more of these simple items to jazz up your properties with some holiday cheer.

Light it Up
While hanging lights around the entire exterior of your property may be more effort than you want to exert, lights can provide a quick holiday fix when used in other ways--wind them around banisters or string them in pre-existing plants in common areas. A conservative amount of lights is extremely affordable at common chains like CVS and Target (a string of 100 incandescent white lights go for as little as $3.99 at CVS.) If you want, you can pay a bit more up-front for LED lights, which are more energy-efficient than their incandescent counterparts, though LED lights will ultimately only save you less than $1 a year on electricity costs.

Seasonal Smells
Don't forget that infusing a sense of holiday festivity into your property doesn't just have to be a visual thing--you can also incorporate evocative, cozy smells like cinnamon, pumpkin, and pine into interior common areas. If you want a bit of visual effect to accompany the smell, consider placing pine cones, potpourri, or a decorative scent warmer in a festive container in a common area. If you're just going for smell, you can do something as simple as a holiday-scented fragrance plug-in, available at most grocery stores for around $5. Remember, though, some people are extremely sensitive to smell, so be careful that whatever scent you select isn't overly powerful. Ultimately, you want to achieve a hint--as opposed to an onslaught of fragrance.

Tasty Treats
The holidays bring out the sweet tooth in all of us. It sounds so simple, but just putting out a decorative bowl of holiday candy in a common area for tenants to enjoy can be enough to put a smile on their face at the end of a long day. Just remember to replenish the candy stash every few days throughout the holiday season.

Just a little bit of effort and nominal expense on your part during this merry season can be enough to keep your tenants smiling for months to come. What are some of your favorite ways to ring in the holidays at your property?

QR Codes for Property Management

2011-11-22T07:44:00.000-08:00

I was out and about this week and while on the interstate I pulled behind a contractor that had a QR code on the back of their tow trailer. While I applaud them for embracing an emerging technology, it occurred to me that that may not be the best application of a QR code. Some of you are probably wondering, "What the heck is a QR code?"

QR code is an acronym meaning Quick Response code. It seems as though QR codes are the latest rage in advertising. But what are they? Without getting into the computer advantages of using QR codes versus standard bar codes; they are in essence a 2D bar code allowing you to pack a large amount or information in a small space.

The QR code was invented by a subsidiary of Toyota in the mid 1990s for tracking parts during shipment. The format of the code allowed machines to quickly scan and track parts on a conveyor belt and route their destination accordingly. Fast forward 20 + years and with the proliferation of smartphones with cameras what was once a way to track machine parts is now the hottest new way to pack more advertising into smaller spaces.

Would you rather see this....

FOR RENT

3 BR, 1BA 1/2 double $xxx/mo plus utilities call for details XYZ Management, Inc maybe with a picture, a phone number, perhaps a website, etc.

A single image that when scanned will instantly display up to 4,296 characters of text, a website with multiple photos, perhaps even a virtual tour, a ready to send SMS message requesting a showing, a ready to dial phone number, and many other virtually limitless options.

The QR shown in this post will bring you to this blog, but it could have just as easily brought you to a map or any other website.

As mentioned above, the max QR code is 4,296 characters but the larger the amount of data you store, the more complex the QR becomes and the larger it needs to be printed in order for it to be scanned. If this occurs you may want to post the info to a website and link there or simply rethink the use of the QR code. The key to any technology is proper use.

At the beginning of this post I mentioned that I did not think the contractor's application was the best use. Whereas a QR on a vehicle is rather cool it was more the location and size that I took issue with; not to mention the safety issue with trying to scan while driving...YIKES! The fact is many areas don't allow you to have a phone in use while driving. The QR on the vehicle was too small and would require you to be stopped directly behind the person in traffic to even be close enough to scan it and even at that distance I fear it would not be able to be scanned. It seems the only way to scan the code in this case would be to step outside your car and walk up to the trailer. It should have been bigger and in a location that could be easily visible without much trouble. I will outline a few creative and practical ways to utilize QR codes below.

Business cards

I recently just placed an order for new cards and decided to add a bit of tech on my cards by placing a QR code that links to my contact info easily to enable someone to reach me. When networking, you want your business cards to stand out and what better way to start a conversation and be memorable than to have a QR code on the back of your card.

Rental Signs

Some apartment complexes print signs monthly or every time a new special of the month changes. Rather than constantly paying to have new rental signs printed with your hook you can place a QR code on the sign with a link to your latest rentals or specials.

Newspaper Ads

Stand out from the crowd and place QR in your ad, linking to all your rentals with full color photos and more text then you could ever afford to place in the paper. I would be sure to place a line similar to this at the bottom of the ad. "Scan the QR code above to view our rentals or call XYZ Management, INC @ (555)555-5555" in case the reader doesn't have QR.

QR Readers
Here are some QR readers I use: Google Goggles, Beetagg, Scanlife, At&T Scanner.

QR Generators
Google offers a QR code generator. I don't find it that user-friendly for a basic user but it has some cool advanced features.

Kaywa offers a more user-friendly version.

There are many more but those two should get you started.

With these tips and tools you are well on your way to reduced advertising costs and showing your owners that you embrace technology. Also, keep in mind your audience--QR codes clearly appeal to a more "techie" crowd and may not be suited for all your rentals.

- Peter Lamandre, Better by Design Real Estate, Scranton, PA

Minimizing the Cost of Vacancy

2011-11-21T10:47:00.000-08:00

As a professional property management company, we have found that one of the most difficult concepts for rental property owners to grasp is the true cost of vacancy. Investors who have been in the rental game for a while understand that in almost all cases the greatest expense they will experience over the life of their investment property will be the cost of vacancy due to lost rent and preparing the property between tenants. 100% if our managed properties have or will go through a vacancy and prep period. Based upon our experience in managing this process literally thousands of times we provide the following advice to our property owners to help minimize the costs associated with turning around the property and to expedite the placement of a new tenant to begin collecting rental income again.

Get started now. The worst thing that can be done is to wait for any particular task to be completed before starting on the next. The game plan should be in place the day the tenant vacates the property. Vendors should be ready to come in and provide quotes, marketing efforts should be getting put into place, and a firm deadline for completion of the necessary clean-up/repairs should be determined.

Get your utilities in order. Make sure your utility accounts are in order as soon as your tenant leaves. Nothing is as frustrating as having the carpet cleaners or painters show up to an empty property with the electricity or water shut off because the accounts did not get transitioned properly. This can add days or weeks to your vacancy time.

Deal with your paint. This is an area where we see most owners overspend. Paint needs to be carefully examined and a strategy determined to minimize cost and a strategy determined to minimize cost and address necessary issues. Very rarely does an entire home interior require painting top to bottom between tenants.

Ceilings do not get abuse like the walls. Unless your tenants are heavy smokers or very messy cooks you can often get away without repainting the ceilings eliminating quite a bit of cost.

You should consider painting walls instead of whole rooms. This is especially the case in bedrooms and other fully enclosed rooms. In many rooms, a piece of furniture such as a bed or sofa rubbing against a single wall does most or all of the damage to the paint in that room. Consider making that wall an accent wall if you can't match the color. If you kept the paint or can match your colors then paint that entire wall only. Try not to "touch up" areas smaller than an entire wall unless your paint matches exactly.

Never paint anything flat while except your ceiling. Many people think that white paint makes a home look clean. It does until you touch it, then it doesn't look so clean. If you must use white only, use a semi-gloss or another cleanable finish in bathroom or kitchen areas if desired. Otherwise, stay away from white walls in rentals. If you are not doing it yourself, then get a couple of quotes. Painting labor costs vary greatly, especially in this economy. There is no shortage of painters searching for interior painting jobs. You have control. Negotiate yourself a good price, especially if this is a small job.

By making good decisions regarding paint, we commonly turn $3,000-$5,000 whole house painting proposals into $300-$500 worth of walls and touch up paint. These properties and up just as clean and marketable as they would have been if the whole home had been painted. We also cut days off of our vacancy time by eliminating the painter's schedule. The lesson is not to go crazy with the paint. Make choices that will make or save you money.

Carpet and flooring: If you are fortunate enough that your rentals have hardwoods or laminate throughout then you don't have to deal with the pain of rental carpeting. However, if your rentals are like ours then a large majority of them are partially of fully carpeted. There are a wide variety of opinions regarding what constitutes "acceptable" rental carpeting. Do not utilize your own living standards to determine if you should replace your carpeting. Many owners do exactly this and replace your carpeting that has 102 rent cycles left in it. Get the most out of your carpeting and do not replace it unnecessarily.

Clean it first. Some look at it as a waste of money to clean carpet that may eventually be replaced. However, we have seen literally hundreds of cases where we believed carpets to be unsalvageable, we had them professionally cleaned, and they looked nearly new once the cleaners were done. Good professional carpet cleaners utilize some pretty strong cleaning agents that get out dirt and stains that you may not think possible. Many can also repair or patch burn marks or persistent stains. The average cost of our carpet cleanings is $200 vs the average carpet replacement at $2500. It is almost always a good bet to try to clean it first.

If you must replace it go cheap. We don't advocate throwing in the lowest quality product for the sake of being cheap but there is no certainty that you will not be replacing this carpet again for your next tenant. It certainly won't last forever and typical rental carpeting lasts 2-3 tenants. We generally purchase inexpensive and mid-grade rental carpet and go with upgraded padding to account for the lack of cushion/thickness. Clean and new is much more important than comfort when it comes to most rentals outside the high-end market.

Be careful with berber. It is a good product and many people like the durability, but berber has 2 big drawbacks in rentals. 1.) it does not clean well at all. Even normal traffic dirt that will clean out of standard carpeting will not clean out of a light-colored berber. 2.) Berber snags. Most of the berber I see in rentals has at least one damaged area caused by furniture snagging the carpet. This is generally not repairable.

If lower maintenance flooring is an option, consider it. Laminate, tile, and hardwoods are not cheap, but over the life of a rental can save thousands in repair and replacement costs. If you have the option to lay flooring other carpet you should at least give it some consideration.

General repairs: I won't spend too much time on this section as it is pretty clear that broken items need to be fixed. We just caution owners not to overlook the small terms. We want to be sure that all of the doors open and close easily, that locks lock, windows open and close, faucets don't leak, screens are not torn, etc. Sending a handyman through the property for a few hours to check and address these minor issues may save literally hundreds of dollars of service calls and hours of time to coordinate service once a tenant is in place. It is always easier and cheaper to complete repairs in a vacant unit rather than deal with those issues once the tenant is in the property.

Clean the place! We are routinely asked by the new rental property owners what is the most important factor that renters want to see when they come to view an available rental property that we have on the market. They expect that location, room sizes, or staging is going to be my response. I always give them the same answer. The most important thing that renters are looking for today is a clean home. There are a lot of rentals available in almost every geographic area. The single most important factor (even more than rental price) that we see between the homes that rent quickly and those that sit on the market for extended periods of time is cleanliness. We strongly recommend having every property that we lease professionally cleaned once carpet, paint, and general repairs are complete. Within our suburban Chicago market, the average cost to clean a home from top to bottom is $150-$200. This is a tiny investment as compared to the benefits of of having a home to market and show with gleaming bathrooms, cabinets, and appliances. That $150 can literally cut weeks or months off of the time the property sits vacant by helping generate more applications from interested applicants . If you have very limited funds and can only choose one thing to do to a rental property cosmeticly, have it professionally cleaned before putting it on the market. This item definitely provides the most bang for the buck.

By following these general rules it is possible to significantly reduce costs when turning over a rental property.

- ben Holubecki, STML Realty Group, Glen Ellyn, IL

Tenant Selection in Today's Economic Environment

2011-11-18T07:36:00.000-08:00

I was recently on the phone with a rental property owner who was considering utilizing our leasing and property management services and he asked me an interesting question. He asked me how the downturn in the economy and the flood of foreclosures and short sales had affected the way that we make decisions about rental application approvals. I had not given the issue a lot of thought as the housing collapse didn't exactly happen overnight. However, as I reflected upon the way that we used to process rental applications a few years ago as compared to the way we do today there is a big difference in our process as well as the information that we deem important. There are several factors that have contributed to the change in the way that tenants are screened and selected.

The biggest factor that we have seen is that the market is now flooded with people who are converting from property owners to renters. While a small percentage of these people are making this transition by choice, a huge percentage of them are being forced into rentals as a result of foreclosure, short sale, and the inability to produce financing for a home purchase. This presents an interesting dilemma when reviewing a rental application as these applicants do not fit the typical renter's profile that we are accustomed to making decisions about. This has also forced traditional selling real estate agents into the rental market which causes its own set of hurdles.

We have also noticed that layoffs, cut hours, and job changes are increasingly common these days. A large majority of the rental applications that we see include current job tenures of less than 1 year, Total income numbers seem to be trending down for our lower rent properties which make decisions for those unit increasingly difficult.

These issues and others have led to a fundamental change in the way that we screen tenants and make decisions regarding who is qualified to rent a property and who is not. This selection process pertains to what we consider to be "marginal applicants." We typically categorize our applicants into one of three possible designations:

1. The absolutely yes category. These are the easy ones to spot. Credit scores in the 700s or 800s, high income, stable employment history, no pets, etc. These are the east ones that we race to the phone to approve before they start looking for another property. In my market only about 10% of our applications fall under this category.

2. The absolutely no category. These are almost as easy to sniff out. Miserable credit, collections, judgments, no verifiable income, criminal histories, and the like. These are easy decisions as well. We just write off our time and effort showing the property and screening them and move on to the next. In my market about 30 % of applicants fall under this category.

3. That means that 60% of the rental applicants that we see fall under the marginal applicant category. These are applicants who have both positive and negative factors which have to be carefully examined and balanced to determine if they will be successful tenants or not.

Our opinion is that making the proper decisions regarding these 60% of the rental applicants is the single most important process determining how valuable a service we are providing to our property owner/investor clients. Placing the wrong tenant can be a very expensive mistake for a property owner and a very big headache for us as a management firm. The basic considerations that we make when selecting a tenant in this environment are:

Credit Reports: Credit scores are only a small factor in our decision making process these days. There was a time when we would automatically dismiss an applicant with a credit score under 600. Those days are long gone. Credit scores are not what they used to be. It used to be a source of pride to have clean credit and a lofty credit score. There was social pressure to avoid bankruptcies, foreclosures, and damage to your credit report. The economic crisis the country has faced over the past few years has changed this completely. Property owners are making business decisions to walk away from under water properties or sell short. The social pressures have given way to acceptability as this process has become commonplace. Scores are very often devastated by a short sale or foreclosure. However, many of these people have pristine credit otherwise. While a short sale/foreclosure can't be completely overlooked, we often discount them a great deal if credit otherwise is very strong, regardless of credit score. For the career renters things have not changed quite as much. We still look for average to above average credit although we seem to discount medical collections these days since they are so common. We also consider non-payment of utility bills or a judgement/eviction from a previous landlord to be automatic disqualifiers in most cases. Even for these applicants, credit score is far less important than the details within each type of account within the credit report.

Income and Employment: People are changing jobs, being laid off, and are having hours cut constantly. While credit scores have become less important in our decision-making process we put a big premium on stable, long-term employment. It is also increasingly important to verify income. While we ask for contact names and number for employers it is often difficult to verify income with employers. Paystubs are by far the easiest way to verify income and if the paystubs do not match the stated income, it is an issue. If the income can't be verified, it should not be counted for qualifying purposes. While we are typically approving lower total income numbers, we are much more stringent as it pertains to qualifying that this income is legit.

References: Personal and landlord references used to be a huge part of our decision-making process. A few years ago, you could call a landlord and get direct answers to questions about your applicant. This has given way to faxed tenant authorization forms and a lot of unreturned calls. Landlords do not want to deal with the liability stemming from providing the wrong information, especially without tenant authorization. There has also been an influx of recommendation letters from previous landlords, professional colleagues, and others. What we've seen is that many landlords will provide a reference letter to a tenant that they are trying to get out of their property in a hurry. What better way to get a deadbeat tenant out of your home than to highly recommend them to another unsuspecting landlord. References from friends and family are truly useless and are not even considered. While we still attempt to contact previous landlords, we only consider the positive information we receive as supplemental information. The negative factors do figure strongly into the process though.

Everything Else: The other factors involved including criminal checks, pet and smoking details, number of occupants, and others will also contribute to the decision-making process but really only serve as possible disqualifiers based upon owner preferences, HOA guidelines, and local laws/ordinances.

It is vitally important to constantly update the way that we as property managers evaluate rental applications and to adjust our practices to mirror the changes going on in the rental market and the economy as a whole. By doing so, we will make better choices regarding our application approvals and denials and ultimately provide better service to our clients and investors.

- Ben Holubecki, STML Realty Group, Glen Ellyn, IL

Set Ground Rules Early with Owners and Tenants

2011-11-17T07:13:00.000-08:00

I've always had a lot of respect for professionals who truly learn from their mistakes. Many of the top companies and executives in the world admit that they have made plenty of them over the years. What sets the successful companies apart from the unsuccessful ones is the ability to immediately make adjustments and avoid making the same mistakes twice. It can be costly to make an error on the job but it can be devastating to repeatedly make the same mistake over and over again. That's why I sat down last week to reflect upon a recent string of lost property management accounts.

Those of us who manage properties owned by others all have our steady, long-term clients. These are the ones that we can count on. We depend on them to provide the residential revenue that drives our business and allows us to operate on a monthly basis. These owners generally defer to our decisions, believe in our process, and most importantly trust us to manage an important part of their investment portfolio. In our experience, we have found a common theme that runs along with most of these clients. Ground rules and expectations were properly set at the beginning of those business relationships. Although there are always ups and downs involved in managing any relationship when you are playing with someone else's money, those hurdles can often be overcome if guidelines were property established at the beginning of the relationship. If those guidelines are not set up properly and early, we are asking for trouble. If we wait until a problem arises to set up those expectations, the business relationship is ultimately doomed.

Property management is a high churn business by nature so there are a certain number of accounts that are going to be lost and replaced every month. Property owners sell their properties, they get foreclosed upon, or they let their hard-on-his-luck brother move in. We are used to this, but those transitions are generally friendly ones with property owners thanking us for our service and moving on. What prompted this post was the fact that we began losing a few accounts that were not for these reasons. We had three accounts last month choose to self-manage their properties rather than continue with our services. I began to consider where things went wrong and why those owners no longer saw value in our services. Once I asked a few questions and gave some thought to how things transpired, I realized that it was not where things went wrong that mattered. It was WHEN things went wrong. Every one of those property owners were signed and set up by a previous employee who was not terribly thorough during the setup process. We failed as a company to compensate for that shortfall and allowed the relationships to begin and continue without setting up those ground rules. As we faced typical challenges throughout the two years with these clients, we were always butting heads with them about very minor issues. The fact is that this conflict could have been avoided by properly establishing the program from the beginning. Once we had already run into issues, it was simply too late.

This doesn't only go for the owner/manager relationship. The same dynamics exist when we are dealing with our tenants. There's a reason why it is so much easier to deal with tenants that we have placed ourselves as opposed to inheriting a tenant placed by a property owner or another agent/management company. When we place them ourselves, we have control of that critical initial period where we can properly set expectations regarding rental payment, collections, maintenance, service calls, etc. Once a tenant has had a bad experience with a previous agent or have become accustomed to poor payment, it is extremely difficult to turn them around.

When managing the manager/owner relationship:

Clearly explain the service call process. Walk them through a typical call from the tenant call-in all the way through paying the vendor for that service. We will often go through this twice just to be clear.

Explain spending guidelines, limits and approvals in detail.

Make it absolutely clear who the owner contact is within your organization. Our firm typically has 2 contacts for each owner but we try to clearly explain when the owner should contact each of their contacts.

Make sure owners understand how the money flows through your system. They should be clear about how security deposits are held, how the tenants pay, how expenses are assessed and paid, when they get their money, and how they receive it. Avoid the "where's my money" call at all costs. A quick tutorial regarding their Buildum online owner account is a great idea at this time.

When managing the manager/tenant relationship:

Explain rent payment options, terms, and most importantly the ramifications if rent is not paid on time. many managers are afraid to discuss late fees, 5-day notices, evictions, and judgments at this time. There is no better time to set up these expectations.

Make the maintenance request process crystal clear. Provide appropriate phone numbers. Let them know step by step what will happen when they call. Will they leave a message or speak to a live person? Should they expect a call in 5 minutes or 5 hours? By setting the expectations properly you will avoid repeat calls and many complaints.

Walk the tenant through the move-in process in detail. They should know who will be contacting them and when. They need to know what will happen during their move-in walk-through, what they need to bring at the time of possession (rent, deposits, etc.), and what is expected during their move-out walk through.

These are the basics that we establish for every account. Every property and market are going to have their own particular set of rules that need to be addressed, but the important thing to remember is that WHEN is the most important variable as you set the expectations for owners and tenants. Your best bet is to always act early.

- Ben Holubecki, STML Realty Group, Glen Ellyn, IL

Decrease Vacancies with Creative Leasing Strategies

2011-11-16T07:18:00.000-08:00

As the weather warms up and the rental leasing season gets into full swing it is easy to get caught up in the rush of showing requests, rental applications, lease signings, and new tenant walk through appointments that usually fill these months for leasing agents and management companies. From what we are seeing in our area and what I have heard from managers and agents in other markets, this is one of the more active springs in recent history for tenant moves and new leasing activity. We have seen our average vacancy time decrease from 30 days to less than 20 days over the last few months and some properties are renting as soon as they hit the open market. This is a far cry from just a few months ago when we were in the middle of one of the least active leasing winters that we can remember in the Midwest.

While this is all great news for those of us who earn a living filing and managing these vacant units, we have noticed one area where things have not picked up all that much. The "tough to rent" properties are still hard to move. The nice unit in the dirty building, the overpriced 1 BR apartment, the house with the crazy wallpaper, the home next to the hoarding neighbor, and other general nightmare rentals still continue to be issues. While the market seems to be increasingly active, I see the activity picking up for well maintained, clean, and competitively priced units. Unless the property is in a top-notch area, the properties with problems continue to be a tough sell but through some aggressive marketing and incentive offers we have seen even those properties move in a reasonable period of time. It takes a bit of creativity to get someone to look past things that they believe they can't live with but sometimes it's just a little bit of money or the structure of a deal that keeps things from coming together. Some of the more common and effective offers we see in our market lately have been:

The waived pro-rated rent approach. While many property owners are opposed to waving pro-rated rent for a mid-month move-in, we think it's a great marketing tool. We try to explain to owners that the only true alternative is a vacant property and there is no upside in leaving the home vacant for 1-2 weeks while we wait for a tenant to move-in. By having the option to offer this as a bonus (free rent) to a potential applicant, we have an advantage over other agents who do not have this option.

The early move-in. Many moving tenants view the move as a stressful time where they have 1 weekend at best to finish packing, load a truck, move their items, and unpack before getting back to work on Monday. We have closed a ton of leases by just offering an extra week or two to begin moving items into the property. The tenants generally do not "live" in the unit during this time, but use the time to bring in carloads of items based upon their schedule. They also have time to set up cable/satellite, utilities, etc. Cutting down on a potential renter's stress is of great value to them. If a home is vacant and parties are agreeable to an early move-in period, it can often make the difference.

Reduced security deposit instead of reduced rent. We have dealt with literally thousands of tenants and I can remember only small percentage of them where we did not refund at least half of the security deposit to the tenant. In most cases, we are returning 80-100% of the deposit upon move out but we still insist upon 1 month rent of more as our deposit guideline. Most renters are worried about the up-front cost associates with moving. They are less concerned about the amount of deposit that will be refunded 1,2, or 3 years later. Instead of taking half off the first month's rent, offer half off the deposit. It accomplishes the same goal for the tenant by reducing up-front costs while keeping the rental income for the property fully intact. We even see $0 security deposit offers when times are tight although that's more risk than we are willing to take on.

Avoid psychological pricing barriers and rental search tiers. These are different in every market, but they exist everywhere. There are cities where tenants won't pay more than $X amount for a particular property type of location. You may be in a market where $1,000 for 2 bedroom apartment is the breaking point. No matter what you do, you can't rent units for more than $1,000 regardless of how nice they are. We have to be aware of these barriers and market accordingly. People in that market are not running online searches for properties $1,000-$1,499. They are searching $500-$999 generally and your property may not even be viewed by people searching in those ranges. The $995 or even $999 rental price is not only a psychological pricing issue for people who want to stay under $1,000 but due to the way that many rental website searches display listings, you may be missing out on a huge number of potential tenants by overpricing units by as much as $1.

Teaser or promotional rent rates. We only use these in times of high vacancy in larger multi-unit properties but this obviously works. By offering a significantly discounted rental price for 3-6 months which then re-states to standard rental rates you can quickly fill properties with high vacancy rates. Now, the property owner must be prepared for the decreased potential cash flow in the short-term but if vacancy rates. Now, the property owner must be prepared for the decreased potential cash flow in the short-term but if vacancy is an issue it should be considered as an option. We recently had a 72 unit property with 12 vacancies that we were having a hard time filling. We marketed $750 units for 2 year leases at $500 per month for the first 6 months and $750 for the last 18 months of the lease. We rented all 12 units in 30 days and they are now fully occupied. We had so much interest during that time that we now have 10 people on a waiting list although the promotional pricing program has ended. The owner's potential income for the property was decreased by $3,000/month for 6 months but the 100% occupancy and longer term leases were well worth that risk in the short-term.

Providing multiple payment options. A more recent option is the ability to offer multiple payment options. Offering online payments, weekly payments, accepting credit cards, Paypal, and other methods of payment open up options for tenants who otherwise may have to wait to sign a lease and move. The fact that these options are now being integrated and even offered by management software companies makes it all that much easier for us to implement these programs.

There are dozens of other tactics out there and every market and agent should have options suited to their area and business practices. The important point is that a bit flexibility and creative structuring of leasing deals can make a big difference in leasing success and decreasing vacancy rates and overall.

- Ben Holubecki, STML Realty Group, Glen Ellyn, IL

Handling Repairs--The Right and Wrong Way

2011-11-15T07:34:00.000-08:00

Having to make repairs to your rental property should not come as a surprise. For some reason most owners drop the ball when it comes to handling maintenance requests from their tenants. Some owners struggle to understand the importance of addressing repairs in a timely fashion. They fail to realize how the lack of maintenance affects the condition of their property and ultimately the quality of tenants the property attracts. The owner, not realizing that every rental property regardless of age will have its fair share of plumbing leaks, electrical problems, water heater issues, and broken appliances will either let maintenance repairs linger or handle them in a poor fashion.

Repairs should not be confused with the normal upkeep such as cleaning, changing light bulbs or plunging a clogged toilet. These issues are the responsibility of the tenant. Repairs can be considered anything a licensed bonded contractor should take care of such as: plumbing, electrical, appliance repair, heating/cooling, flooring, and construction. These types of repairs are best left to the professionals and when handled appropriately, exhibit the owner's willingness to resolve repair issues properly and in a timely fashion. In some cases, a handyman can be useful and worth the small fee to resolve minor repairs. Now, if you normally handle repair issues yourself and have the knowledge and experience to do so, then that becomes a judgement call, but most owners would rather sit back and collect checks then make repairs to their rental properties.

Besides lingering or not taking care of necessary repairs, one of the most tempting mistakes owners make is to allow their tenants to physically handle the maintenance issues. This is tempting because it gives the owner a false sense of relief not having to deal with the issue at hand by allowing the tenants to resolve the problem. Usually the tenant will volunteer to fix the repair themselves and just deduct the cost of the job (labor and materials) from the rent. Sounds fair enough, right? Problem solved, well think again. A "repair for rent reduction" headache may have just been created. This is when the tenant will consistently make the landlord aware of every little issue that may or may not need repairing to try to "work off" their rent. It may start gradually but rest assured the tenant will eventually offer their unlicensed amateur services for every minor to major repair in attempt to pay less of their rent.

Having tenants physically make repairs to rental properties is like playing a Russian roulette. The owner not only runs the risk of creating a "repair for rent" headache but the tenant may handle the repairs with poor workmanship. This may result in further damages and additional cost to correct the initial repair and any new damages. Even worse the owner places themselves in jeopardy by increasing the risk of a lawsuit if the tenant gets injured as a result of making repairs to the property. Play it safe and use professional, licensed and bonded contractors that issue invoices detailing work performed and costs associated with that work. Stay on top of repairs and make sure tenants are aware that the owner must authorize any and all repairs associated with the property and when necessary, don't be afraid to inform tenants that they are responsible for the cost of excessive wear and tear damages.

- Salvatore J. Friscia, San Diego Premier Property Management, San Diego, CA

Strategies for Collecting Missed Rent Payments

2011-11-14T10:24:00.000-08:00

What to do when a tenant doesn't pay or skips? I don't mean hop-scotch. I mean what do you do when the tenant leaves the rental prior to the termination of their lease? The process can vary and depends upon the terms of the lease? The process can vary and depends upon the terms of the lease (if there is one). This post will provide some pointers on how to handle this less than ideal situation.

I've always tried to be human with my tenants and recognize that sometimes good people fall on hard times. The most important thing to remember is not to make this too personal--it is business and whereas you can empathize with the situation you can't allow that empathy to blind you to the fact that the non-payment hurts your business. Have a specific policy set for dealing with the delinquent accounts. Here is an example action plan for collection, which based on location and local laws may need to be modified (but I think you will get the idea.)

20th of the month--statements go out for next month
1st of the month--rent is due
5th of the month--late fees begin
7th of the month--collection calls/letters begin
10th of the month--eviction notices are posted
13th of the month--eviction filing begins

The big picture here is you need to have a plan and follow it. But what do you do if the tenant wants to make payments? Again, it is all about having a plan in place. Some things to keep in mind when setting these policies....

What will you do if the tenant contacts you prior to the rent due date to alert you to an upcoming problem? This shows a certain degree of responsibility and an ownership of the problem. Will you be more willing to spread out the payments? Do you want 100% of the balance in the next week or in the next 30 days? Are you willing to spread the payments over the next 3 months, etc? At what point does the risk that the tenant will default outweigh the demand for a vacant unit? Are you dealing with high demand and low vacancies resulting in a fast turnover or have units been sitting vacant making it cheaper to work something out rather than face the cost of the turnover? If they could not pay the rent, what has changed that will allow them to pay the next month's rent in addition to their outstanding balance? A good practice would be to basically "re-screen" the tenant based on the new payment. Here is an example:

The tenant owed rent of $1,000 and made a partial payment. She now owes $400 spread over 3 months. This means the tenant would pay $1,133.33 per month using your normal approval method (it's common to require income to be 2.5-3xrent). Do they make enough money to pay this debt back or are you only postponing the inevitable? Assuming you believe they can make the payments, make sure you get the agreed upon payments in writing and have the tenant sign the document. That way if they fail to make the payments as agreed and you end up in court, you can show you attempted to reconcile the problem. If you decide it is not in the best interests of the property for the tenant to remain in the unit, hold to your dates, and follow through with an eviction.

There are times when the tenant will leave without being evicted, more often than not, when the tenant who owes you money can't or won't pay and leaves without telling you. I have even (rarely) had tenants pay the rent on the 1st of the month, clean the apartment, turn in the keys, and leave.

If the tenant has left and owes you money, how do you find them? You typically need to find them to have them served with court papers--it's rare that someone owes you money lets you know where they are going so that you will have the chance to track them down. Good records will help here, especially place of employment and emergency contact information. If all else fails, here is a great tip--once they have left the unit, wait a few days until the mail stops arriving, then mail the tenant a letter--any letter really but on the envelope, place the words "RETURN SERVICE REQUESTED." Visit the USPS.gov website to learn where the service statement needs to be. Then just wait. If the tenant is having their mail forwarded, the post office will return your letter to you and provide you with the tenant's new address. Once you have their new address, you can have them served at their new residence and begin collection.

A large portion of our success as property managers is based on creating plans and following through with them, and dealing with missed or late tenant payments is no exception.

--Peter Lamandre, Better by Design Realty, Scranton, PA

Creating Soul and Personality for Your Business Part 2

2011-11-11T08:47:00.000-08:00

If it's all about the client experience, and it is ( just ask your clients), then how do you create a memorable and enjoyable client experience? Remember that it has to be a real experience because clients can spot fakes and phonies from a mile away. Therefore, your team must internalize your business personality--it must become the natural way that they interact with clients and teammates as well as how they represent your brand and your service.

Step one in creating a happy client experience; inject soul into your business by finding your personality. Don't be another 'Me too' business--find out what type of personality you want to portray to your clients. It doesn't have to be fun and zany, although fun and zany may very well suit your company. Consider personality styles like classy, funky, professional, happy, colorful...the list is endless. However, you can't fake a personality. It has to be real, genuine, and sincere. Your company has to be you. Brainstorm with your team. What is your personality? Only then can you know it, live it and be it.

Once you have discovered and created your own special and unique personality it will be easier to understand and therefore create the type of experience you wish your clients to experience.

Disney created the happiest place on earth and in doing so created a magical experience. Starbucks simply created "The Starbucks Experience." They knew through business by design what nature of experience they wanted to create for their clients. Who would have thought that a coffee shop could create such an internationally recognized and sought after brand just by offering an experience? Well there is a little bit more to it than that, but for those millions of Starbucks fans around the world, me included, we go to Starbucks around the world, me included, we go to Starbucks for our own particular flavor and size of coffee and because we have come to rely on the customer service standard we know will be consistent no matter where we might be in the world. When you know what you aim to achieve , you know how to achieve it. Therefore, there is no way we can create a happy client experience if that is not part of your business model.

Yes, even without business by design may commend you for the wonderful experience they have just had. Sadly, this praise is likely not consistent if service is not consistent across your team and client base--other team members could be letting your team (and company) down. And every time this happens, it diminishes your brand as well as your reputation more and more.

Step two therefore is to design the style and feel of the client experience you wish to deliver--'that special something' when they step inside our business, see your brand and connect with your team. That special something that you just can't seem to put your finger on, yet you know it's there. Disney refers to is as "Feeling the Perfection."

By understanding what your company personality is, you are then in a position to align the client experience with your personality. For example, if you had a personality that portrayed funk and panache, then to create a customer experience of "good old fashioned values" just wouldn't coalesce. Design the experience you wish to create. It could be perfection, happy, memorable, gratifying, delightful, magical whatever the experience, once selected a method in which to deliver it needs to be developed, and that's a whole new article.

Remember, to protect your brand and create repeat and referral clients, you have to make things happen. Don't become just another 'Me2" business. Design your business with purpose to have personality, soul and a consistent level of client service whereby the whole team is working to the same standards with the same level of enthusiasm and pulse.

Creating Soul and Personality for Your Business

2011-11-09T11:19:00.000-08:00

How do we know what service experience we want our clients to feel if we don't know what experience is ourselves? We don't, so it's no wonder our industry is mostly confused when it comes to delivering the best client experience.

Have you ever experienced that feeling when you walk into a particular business and feel good, appreciated and respected, yet you just can't put your finger on why you feel that way? I have on many occasions. It's what I refer to as business with soul and personality--their businesses seem to know who they are and what they are there for. It's all about business by design. Knowing what your purpose is and what experience you want to create for your clients.

Disney knows that their purpose is to create happiness and they create a magical experience for their guests. It doesn't matter whether their guests are visiting the parks, staying at one of their resorts, or attending a Disney movie. If it has the name Disney attached to it, you are assured of a magical experience.

And then there is Virgin. The Virgin Group, no matter which branch of the company you are dealing with, are all about fun and laughter and crazy pranks. Every client knows that whether they are flying with Virgin, subscribing to their telephone service, or using any one of their multitude of products and services they are guaranteed to have a fun, happy and slightly zany experience. This is what I describe as a business with a personality.

It's ok to have personality--in fact, it's wonderful to have a business with a personality. It is my belief and my humble opinion that our industry lacks personality. Is it because we get swept up in day-to-day tasks and forget to put our head up from time to time and have some fun? Is it because we have no direction and no purpose? Or is it because our industry is so busy looking over our shoulders copying what our competitors are doing that we have become clones of our competitors, thus lacking any personality of our own?

Personally, I think it is a combination of all the above, but mostly I think it is because we are clones. We keep looking over our shoulder at our competitors and because we copy we look, feel, act, and interact just like them. In essence we become them, with no individuality whatsoever.

How many airlines are there in the world and how many airlines were already in operation when Richard Branson launched Virgin? Hundreds! And do you think Richard Branson looked around and thought 'wow, these guys are all so serious, we better conform and act just like them?' Somehow, I really don't think so. Virgin's crazy antics, silly in-flight announcements and slightly zany team just wouldn't seem quite right on a Qantas flight. Virgin created their own personality and very strategically injected that into everything Virgin does. Everyone who works for Virgin lives and breathes that same personality.

In the next post, we will review how you can evaluate and inject your business with soul and personality, enabling you to create your own unique client experience. And remember, it is all about the experience.

Five Things New Landlords Don't Know

2011-11-08T07:01:00.000-08:00

Renting out your property might sound like a great idea, and it is. Inviting tenants to live in your home, especially if you are not using it, can be a great way to make some extra money and let someone else pay your mortgage.

The idea of enlisting and paying a property manager may at first seem contradictory to your idea of making money. If you only have one property and minimal outside commitments, then you might not have a problem managing your own property. However, there are some things most new landlords don't consider before taking the leap.

A fair amount of legal knowledge is required.

Unless you come from a real estate background, there is going to be a huge learning curve with respect to housing laws and regulations. There is much more to renting out a property than finding a tenant and collecting rent. From complying with Fair Housing Laws during the tenant selection process, to writing a lease agreement that adequately protects your rights, to handling potential evictions, there are many aspects of landlording where knowing the law comes into play. Not to mention, these laws and regulations are always evolving, so you will need to stay on top of any changes that take place.

You are on call for maintenance emergencies 24/7.

Part of the landlord title means being able to put on your tool belt and take care of household issues and damages to your property. It is hard to predict exactly when your tenants might need a handyman to fix a leaky faucet or anything that compromises the livability of the home. If the task is much larger than you can handle, you will be responsible for hiring an outside contractor to take care of it.

Screening tenants is not as straightforward as it appears.

Choosing someone to live on your property is one of the most critical decisions you will make as a landlord. A tenant who does not take care of the property, or is slow to pay rent, can become an unnecessary burden and liability. Aside from an applicant's ability to pay rent, there are a number of things to consider before allowing a person to sign a lease. It is essential to perform background and credit checks on all applicants. While this may sound simple enough, interpreting the results that come back may not be as straightforward as you think. You will also have to deal with the fact that you may spend a large amount of time screening applicants who are not qualified, not to mention the real probability of not finding any leads at all. You will need to be effective and creative with promoting vacancies.

Managing an ongoing relationship with your tenants require more than knowing how to cash rent checks.

Even after putting in the time to find a good tenant, issues may still surface. You have to be prepared to be direct with your tenant about fixing the problem, while also doing what it takes to maintain a good rapport with them. This can be considerably more awkward than it sounds . If you are not firm enough, the tenant might not take the initiative to fix the problem. If you are too firm, you might have trouble keeping any tenants at all. It's a delicate balance that takes a long time to master.

You'll need to plan on spending a minimum of 10-15 hours per month managing your property.

Chances are you probably have a full-time job and various other obligations. Adding landlord duties can become a burden on your to-do list and create much unneeded stress. Between your personal life and the aforementioned commitments of renting your property (these are just a few landlord duties, the list goes on...) this can often be too much for one person to handle.

Professional property managers have a team that specializes in taking on all of these issues with tried and true methods that are effective and efficient. If managing your property is your main project and focus, it is possible that you can handle it on your own. For most people, though, rental properties are a sales investment, and spending 10-15 hours a month keeping a rental property running detracts considerably from the return on that investment. For a small percentage of your monthly rent property to an expert, and turn a tedious part-time job into a passive stream of income.

- Dusty Henry, All Property Management, Seattle, WA

5 Fast Ways to Improve Your Property

2011-11-04T07:17:00.000-07:00

If it's time for a facelift for your property, there are a lot of things that you can do to give your place a fresh new look without investing a lot of time or money. If your property includes rental units, keeping it clean and appealing can significantly upgrade the quality and duration of your tenants, which is great news no matter how you slice it.

Curb Appeal
Whether it's an apartment building, a condo complex, or a home, the largest and most significant change that you can make is to give your property some serious curb appeal. Flower beds, baskets or pots of greenery, or a well maintained parking area including custom parking signs can really improve that first impression. Custom parking signs will also show people that the property is organized and cared for.

Painting
Getting the entire exterior of your property painted can be far more than you're willing to do on your own or pay for. However, why don't you consider a fresh coat of paint in a vibrant contrasting color for all of the front doors or maybe the trim? This option is substantially less difficult and provides a great deal of bang for your buck.

A professional operation
If you are renting units then you'll want to make sure all of those little details like contracts, rental ads and information for potential renters are professional in both appearance and function. This inspires confidence in your management skills and will expose you to a more serious group of tenants. Many companies online can offer free tips or marketing supplies to ensure that you have the tools you need to market your property. The marketing supplies that you're looking for will depend on what type of property you own and whatever your individual marketing needs are.

Interior common spaces
Areas like the mailboxes or lobby are seen by all so make sure they reflect the way you want them treated. If the walls are grubby and the carpet hasn't seen a vacuum in over a year, then chances are people won't respect the areas or care whether there's garbage on the floor or old flyers piled up to the ceiling. If the area is bright and clean then people will be much more apt to pick up the occasional dropped piece of trash.

The tenant factor
Making sure you have responsible tenants will automatically attract more responsible tenants because people who have the same type of lifestyle will be much more likely to be able to live harmoniously. If you have a building full of young professional families then advertising for a bunch of college frat boys looking for a party pad will not be a great long term situation for anyone. If your tenants get on well, it will drastically improve the overall vibe of your property.

At the end of the day, an upgrade doesn't have to cost a lot of money or require a lot of your time. You just have to have a clear vision of your end goal and the ability to make clever choices.

- Brandon Serna, Denver, CO

8 Tips for New Landlords

2011-11-03T11:57:00.000-07:00

Building a strong relationship with a new tenant and protecting your real estate investment is of paramount importance when crafting a lease agreement. There are a multitude of considerations at the juncture that are essential to understand. Here are some top tips for new landlords as a helpful tool for navigating lease creation and the ongoing considerations of managing a rental property.

Understand the Fair Housing Act and how it applies to your rental. When advertising for a new tenant, it is critical that landlords and property managers understand and comply with the Fair Housing Act. The Fair Housing Act prohibits landlords from using any of the following criteria when evaluating potential tenants: race, color, national heritage, religion, gender, disability, and familial status. While that may sound simple on the surface, consider that stating in a rental listing "perfect for a single professional" is a violation of the Act (bias against familial status). Advertising only in your church's newsletter discriminates by religion. What landlords can and should use to evaluate potential tenants is financial data, credit histories, and other background data.

Know your tenant by thoroughly screening each prospective renter to avoid problems down the road. This can be accomplished by a few simple steps. First, conduct a professional credit check to learn an applicant's credit history and if they have been fiscally responsible in the past. Bad credit can serve as a red flag and you may wish to avoid such tenants.

Next, ask for references from past landlords. However, be on notice that while references from prior landlords are worth a quick phone call, they aren't particularly telling, because tenants can give fake names and number, and even if they don't, the old landlord may well be painting a rosy picture of the tenant in order to get rid of them.

What a landlord should verify are the rental applicants' credit, employment/income (and historical stability), criminal background, and eviction history. When landlords run these checks, not only can they determine the best rental applicant, but the landlord can defend against discrimination lawsuits by producing hard data used to choose one rental applicant over another.

Build an airtight lease agreement by knowing the laws that apply in your state through a state-specific lease. Each state has slightly different laws that impact a landlord-tenant relationship. Accordingly, use a state-specific lease instead of a general lease to best protect your real estate investment. For example, California requires all lease agreements to include clauses mandated by Megan's Law, and every state has different limits on security deposits on security deposits, late fees, etc.

While not an exhaustive list, other elements a lease agreement should clearly define include: Who is responsible for paying the utilities, which appliances are included and who is responsible for maintaining them, whether the lease auto-renews and for what term, details surrounding fees and deposits, and whether there is an option to purchase--and if so, what are the terms?

Understand the eviction process. Although many of us don't wish to think about worse case scenarios, it is important to become familiar with the eviction process and be ready to start the process immediately when a tenant violates the lease. While the specific documents required are different in each state, all states involve the same general eviction process. The landlord or property manager must serve the defaulting tenant with a particular notice, wait a specified period of time, file in court, attend a court hearing, schedule a date for the actual eviction, and so on, and landlords are well advised to understand this process before actually having to go through it, because it is extremely expensive and takes far longer than most landlords anticipate.

Devise a Moving In and Moving Out Procedure and be sure it's clearly defined. One helpful tool is a comprehensive walk-through checklist. This document will be used for the landlord/manager to walk through the rental unit with the tenant and document the condition of the unit upon move-in and move-out.

Offer performance incentives: While most lease agreements include a late fee, landlords can further incentivize timely rent by offering a reward for early rent payment, renewing for a longer term period, and/or any other behavior you want to encourage. Rewards can range from the simple, such as rent discounts, to the complex, such as point systems where tenants earn points and exchange them for rebates, gift cards, updates to the rental unit, etc.

Establish a relationship with at least two good contractors. Landlords and property managers need at the very least a licensed contractor who can handle large jobs, and an inexpensive handyman who can affordable fix minor issues. Don't wait until your tenants' heating system stops working in January, or the roof collapses, as the time lost in trying to find a contractor by that time will cost real money. Instead form these relationships before you actually need them, and then you will simply be able to make a phone call and have the problem resolved immediately.

Stay capitalized. One of the most serious problems small landlords face is lack of cash, as being a landlord involves unexpected expenses. These range from tenants suddenly ceasing to pay their rent, to unexpected repairs, to lawsuits, but the only predictable aspect to these unexpected expenses is that they will happen, and with some frequency. Set aside a hefty amount of cash specifically for rental expenses, and resist the temptation to use it for anything else.

-Brian Davis, Ezlandlordforms.com, Moorestown, NJ

Five Things to Consider Before Buying Your First Investment Property

2011-11-02T08:48:00.000-07:00

If you're considering purchasing a buy-to-rent investment and becoming a first-time landlord, there are a few things you should consider. Here are top five pointers to think about before taking the plunge.

Location, Location, Location.
It's vital that you carefully consider. It's vital that you carefully consider the location of your rental property before investing. the location will influence the desirability of your property, and that in turn will impact the amount of rent you can charge. Consider your target market--is the area mainly home to young families? If so, consider the proximity of the rental property to good local schools. If it's a student area, try to find a rental investment that's well connected to the main campus buildings. Also, are there good train and bus stops nearby as well as local amenities like shops and banks?

Location can also affect the amount you pay for landlord insurance If you live in a high crime area for example, you'll probably be charged more for your insurance policy.

Know Your Stuff
Make sure you understand the processes and legal obligations involved in renting out your property. You will need to draw up a tenancy agreement, which is a legally binding contract between you and your tenant. You'll also need to read about your tax obligations and understand how security deposits are handled.

Insurance
Landlord insurance is considered a must-have purchase for most buy-to-rent owners. If your property is being rented to paying tenants, then it's highly likely that a standard house insurance policy will not be sufficient.

Maintenance and upkeep
You'll need to carry out regular maintenance checks at the property to see that it meets all health and safety regulations. If you fail to sufficiently maintain the rental, you could be at risk of a negligence claim. Also, if the property isn't in good condition it may fail to provide you with an adequate rental income. Think about how you'll maintain the property--will you require assistance from a qualified tradesman or do you have the skills to carry out work yourself?

Finding Tenants
You'll need to promote your property effectively to ensure it doesn't sit empty. For a fee, you could employ a property management company to handle the entire tenant finding process for you. If you're doing it yourself, make sure you carefully vet potential tenants and take the necessary references and deposits. Most people look to the web to find rentals, so make sure to feature your property on all property websites.

-Munveer Garcha, Policy Expert, London, UK

How to Cultivate a Green Thumb in Your City Apartment

2011-11-01T06:31:00.000-07:00

Apartment living is efficient: a practical and pleasant way to make a home, in the short or long term. But it can sometimes feel sterile. Finding ways to connect with nature--within the realities of an urban lifestyle--poses a challenge for many apartment dwellers. As Americans show more and more interest eating fresh food, creative urban gardening and local food sourcing solutions are cropping up everywhere. Here's a quick guide to simple ways you can get more involved with your next meal--short of actually moving to a farm.

Grow a Box Garden

Many Americans have no access to a backyard, and while we might enjoy sprawling on a park's green grass, busting out our rake and hoe might not endear us to other park-goers. Window gardens are an almost universally accessible answer to an itchy green thumb, and can improve your view as well as your salad. With a little more space-say, a deck or roof, you could also start a box garden or a "square foot" garden, to get the biggest broccoli for your buck.

Join a Community Garden

If you prefer really getting down and dirty, or if you'd like to nurture some neighborhood unity along with those tomatoes, consider joining a community garden. These shared spaces are managed in a myriad of ways, but most broadly are gardens shared by a group of people. Even the state of California has formally recognized the importance of community gardening in multi-housing developments. Search for a community garden in your area to start feeding your family, and to meet others interested in doing the same.

Support Local Agriculture

Luckily, there are many ways to support local farmers, and there's nothing wrong with choosing the most convenient method for you--you'll be more likely to make it a habit. Farmers' Markets are a great place to meet the face behind the fruit basket, and eliminate the middle man. Search for farmers' market listings at Local Harvest. You can also search for CSAs (Community Supported Agriculture) a no-stress option in the form of a weekly fresh, seasonal produce box directly from the source. Look around for co-ops, which support sustainable farming. Or, just take a peek around your grocery store: many conventional markets are trying to keep up with the local food movement by stocking and labeling local products. It never hurts to ask!

Guerilla Gardening

Okay, we confess: the appeal of sneaky seedlings is too great for us to resist. If you have limited time, but still want more plant life in your vicinity, make some seed balls and toss those suckers anywhere you see some barren soil in need of a little love.

How to Choose the Perfect Color Paint

2011-10-31T09:40:00.000-07:00

Those of us who enjoy decorating live in fear of choosing a seemingly beautiful color, only to hate the hue for years before we can justify repainting the room. Plan ahead! Below are some strategies to help ensure you pick the Goldilocks of interior paint--not too warm, nor too cool, but juuuust right.

Acquire a zillion paint chips

Feel free to interpret a "zillion" however you like, just make sure you have a lot of options. This includes choosing colors that appeal to you, as well as ones a few shades lighter and darker. Your best guess on paper isn't always the right value (lightness or darkness) for a space.

Tape them on the wall

Hanging paint chips should give you a better sense of what the color will look like. Give them a few days, check them out in different light. The second you feel negatively about on the chips, take it down and toss it.

Get actual samples

When you finally get down to a choice between two or three options, buy samples and paint swatches on the wall. If all goes well, this stage should make the final decision easier. You might consider painting a few layers of white around and below the swatches so that your current color does not skew your new ones.

Consider your couches

Repainting the living room? Don't clash with the couches. The bathroom? Make sure you take into account that red tile you love. Whatever paint you select should enhance the appearance of things you already own.

Live with it

Occasionally, no matter how much time you dedicated to choosing the correct color, it ends up completely different than you envisioned. Sure, you can make yourself crazy and start all over. Or you can save your money and take it as a lesson in patience and forgiveness--of yourself AND that too-burnt orange.

Eco-Editor's Note

Choose low or zero VOC (volatile organic compound) paint to minimize the toxic fumes invading your space! If you don't want to drop the dough on the greener option, keep your room well ventilated while you paint, and avoid spending too much time there for a few days.

RENT INCREASE WATCH: Rent vs. Buy Calculator & Economic Outlook

2011-10-28T07:55:00.000-07:00

With the economy stepping into a slow and yet hopeful recovery, many apartment renters are wondering whether to expect rents to rise or fall over the next few years. Though the future of the economy is always veiled behind a fog or complex financial interactions, experts tend to agree that the rental market may be on its way towards higher prices and less availability. How much rent can be expected to increase depends on a number of different factors, though the demand in the house buying market drastically affects the rental market.

At what point is it better, long-term financially speaking, to rent or invest one's savings in something somewhat more permanent? The answer depends largely on a renter's projected income, the market, and a variety of other factors. The New York Times has developed a rent vs. buy calculator which, given extensive variable inputs, helps determine a more personalized answer to the "rent-vs-buy" question. Generally speaking, in the short-term at least, it is often more financially feasible to rent-particularly for those of us who have just weathered a long recession and don't have down-payment type savings in our bank accounts or credit scores that still-cautious lenders might favor.

Though the recession is officially over, the relief of such news is yet to be felt in the bank accounts of many people across the nation. Unemployment is still high, credit is still hard to come by and many homes are still about to go into foreclosure. Economists warn that many areas, especially regions with highly inflated prices that experienced sudden drops in value, should expect the housing market to get worse before it gets better. As more families lose their homes through foreclosures or short sales, the apartment market will see a sharp rise in demand.

The economy is a complicated creature, one that is difficult for even the experts to predict, but at its heart, it is usually driven by a simple concept: when demand goes up, prices go up; when supply goes up, prices go down. Experts predict that two things are due to happen with the rental market in the near future: an increase in demand as more people lose their homes, and a decrease in supply, since new apartment units are not being built quickly enough to fill the increase in demand. Put these two things together, and we can expect as we have been speculating for quite a while now- a economic climate of drastically rising rates in rent.

Of course, the rise and fall of rental prices varies considerably from state to state and city to city, but nationwide, experts are predicting a significant jump in rental rates. Over the past ten years, rent has increased on average about 1% per year. In 2011 and 2012, rents could rise at a rate closer to 3% or 4% each year. Markets with a sharp increase in demand for rental units could see higher increases, pushing a 5% increase each of these years.

Nationally, we seem to be trending towards higher rental prices. High unemployment will drive the demand for rent up because people who are unemployed or underemployed are not able to save up for a large purchase such as a house. Areas with high rates of foreclosures will also see an increase in demand for apartments. Though many areas across the nation are experiencing both of these things, there are other places that have seen an increase in the construction of new homes and sometimes decreases in the cost of property. In these regions, rental prices may fall as more people find it possible to afford to buy a home, many of which are selling at low prices.

Is buying a home still very much a part of the American dream? So far, the answer seems like it is--even if at times it seems an impossible goal to attain. In the meantime, the folks who write this blog are renters and quite happily so-and we will do our best to continue to find ways to make renting awesome!

Meeting the Neighbors

2011-10-27T10:45:00.000-07:00

If you're just moving into a new apartment complex, it's the perfect time to make friends. In many apartment complexes, neighbors keep to themselves and may be hard to connect with them, but don't give up! Check out the following tips for making your new apartment into a new home!

Introduce Yourself
It seems obvious, but many of us never think to actually introduce ourselves to our neighbors. It may feel strange to go door to door, letting your new neighbors know who you are, but really, it's the simplest way to meet them. You can have a card or a file prepared for them as well, so that they'll remember your name after you've gone. If you want to befriend your new neighbors, you'll want to carry a pad of paper around to jot down their names as well.

Invite your neighbors over for a casual get together or housewarming party.
A good time to invite your neighbors over for a housewarming party is while you're our introducing yourself. If you have a flier, include information about the party on it so that your neighbors will know when to come over. And make sure the party isn't too wild or formal, either. It's hard to get to know people when you're serving a large meal or keeping your drunken friends from climbing the walls. These types of parties may be unbearable uncomfortable for people who don't know you very well.

Come bearing gifts.
One of the easiest ways to make friends with neighbors is to bring something over. If you're baking cupcakes or muffins, put a few aside to share. Most people will appreciate the gesture and many will respond with a gift of their own. A common unwritten social rule states that you never bring over an empty dish, so if you hand over a gift of food to a neighbor in a dish that needs to be returned, many will fill it up before they give it back. Remember this "rule" yourself in case a neighbor welcomes you with a gift of food!

Attend community events.
Your apartment complex may put together informal events for all the residents to enjoy. If you attend these events, it'll be a lot easier to meet the people who live in your complex. If your community doesn't have regular get-togethers, you can talk to the leasing office about organizing one. Most offices won't mind hosting a party and sending out the information in the monthly newsletter if you do the leg work of planning and organizing. You can even meet people by shopping at a local market and saying hello to anyone you recognize.

Be a good neighbor.
One of the best ways to befriend your neighbors is to be a good neighbor. Make sure that you don't disturb your neighbors by turning to music or television too loud. Be respectful of the community's quiet hours. Say hello when you pass your neighbors on your way to or from your apartment. There are lots of ways to be a good neighbor and it's often the little things that add up to a friendship.

Can You Afford Your New Apartment? Read This Before You Rent!

2011-10-26T06:53:00.001-07:00

Many people don't like to keep a budget. It's time consuming, difficult to keep on top of and can be a source of stress when you can't seem to make your income and expenses match up. And when you see that perfect apartment that has everything you want, your budget might not be at the forefront of your mind. But running out of money is a lot more stressful than knowing exactly how careful you need to be with money. If things are tight, it's difficult to get on top of money troubles if you don't understand where all your money is going. For these reasons, it's critical to make a budget to help you figure out exactly how much apartment you can afford--before you sign on the dotted line.

Before you decide on a new place, make a list of all the expenses that go along with it. Rent is only one portion of the cost of an apartment. You'll also need to pay for electricity, gas, water, garbage, cable, phone and internet. Figure out how much each of these additional expenses will be and add them up as expenses you'll need to pay for each month.

There are also monthly expenses not related to the cost of living in an apartment and you'll want to record each of these as well. You might be paying for car and health insurance, a cell phone, a data plan on a tablet or paying off a car. You may also have debt that you've got to pay off, so be sure to record the minimum payments you need to pay on each of your credit cards or student loan accounts as well. If there's room in your budget, doubling the minimum due can help you save a great deal of money on credit cards in the long run.

You'll also want to make sure you pay attention to variable expenses you may have every month. Food, household supplies, entertainment, gas, clothes and gifts also consume some of your income. The best way to fund out how much you spend on these things is to track your expenses in each of these categories for a few months and then average it out. Mint.com provides a great online platform for automatically syncing and sorting your expenses, and would be a great place to start. While you be able to save some money by cutting back on entertainment, dining out or buying the latest clothes, you'll have to expect some money on these types of things. If you're realistic about how much you do spend, you'll be in a better position to determine how much money you'll have available for rent.

So how can you figure out how much you can afford on an apartment? Add up all your monthly expenses, plus a couple extra hundred for emergencies or unforeseen expenses and then subtract it from your monthly income. What you have left is the amount you can pay in rent. If you choose a place that's more expensive than this, you'll find yourself falling further into debt each month rather than getting ahead and remaining in control of your financial life.

Considering Giving Back? Check Out These Excellent Housing Charities

2011-10-25T06:29:00.000-07:00

Want to improve your housing karma? Consider donating to one of these housing charities. Times are tough for many of us right now, but there are many families who don't have the resources to put a roof over their heads. Donating or volunteering can help you make a difference in the world and give your self-esteem a great boost.

Habitat for Humanity

There's a reason that Habitat for Humanity is the largest and best known housing charity in the US. The organization, first started in 1976, has helped build over 400,000 homes for people all over the world. Habitat believes that everybody should be entitled to proper shelter and that communities can come together to help people who don't have enough resources on their own. There are a number of ways for people to get involved with this organization. Habitat accepts monetary donations, of course, but also accepts donations of new building materials. This organization also relies on the help of volunteers to build houses across the nation and around the world and volunteers can assist at build sites for a couple of days, weeks or months. Houses created by Habitat for Humanity are sold at reasonable rates for families who have worked hard within the program and the money from the sales goes back into the program to help out other families in need.

Red Cross

Though it isn't directly involved with helping those in need get housing, one of the main responsibilities of the Red Cross is helping people after a disaster. Fires, floods, earthquakes or other disasters can damage homes and apartment buildings and the owners and renters of these places often have nowhere to go. The Red Cross responds to these emergencies around the world giving immediate financial relief to people in need. Donating money to the Red Cross is a great way to make a difference in the world, but the organization can also use help from volunteers. People with a spare half day a week can volunteer at their local chapters working in the Red Cross offices or out in the field with people in need.

Enterprise Foundation

This organization is focused on providing affordable housing to low and medium income people across the US. Over the past two decades, the group has built 280,000 homes that it sells or rents at reasonable rates. The Enterprise Foundation is supported largely through grants but it does rely on donations from individuals as well. Though Enterprise focuses mainly on a few communities, it is partnered with other organizations across the nation to provide housing support to every state.

Local Charities

There are plenty of local charities to donate to as well. These many focus their efforts on just one state, county or region and are often very good at getting help out to people who need it. Make sure you research your local charities fully before donating to make sure that they use the money effectively and that you fully support their cause. The apartment industry in general gives back amazing amounts to a variety of charities across the United States, and they were certainly not alone.