Real Estate

Know the rental market you are working in. The number 1 key to successfully managing rental properties is to know your marketplace. What is the right price point for your unit? How nice is your rental versus others in the neighborhood? What types of amenities are standard? Knowing the answers to these questions is usually the difference between renting your unit in 2 weeks or 6 months. The easiest way to find the answers to these questions is to call other rentals in your area and schedule a showing. You want to view as many apartments in your area as you can so that you have great knowledge about the marketplace that you are competing in.

know the local rental laws in your area. This is very important. Not much more to say. Follow the laws. If you don’t, they could cost you a lot of money.

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

I have a policy that if you refer a friend and that friend signs a 1-year lease, I will give you half off next months rent. Ask for referrals & be willing to pay for them. My best advertisers are my current tenants. I make my places very nice and I stay on top of problems that arise quickly and in a friendly manner. This makes my tenants happy to refer their friends and family to my rental units.

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

Have a good lease written by a professional. Many people buy a lease from an office supply store or an on-line service. In many cases these leases will work fine. They are boilerplate contracts that you fill-in the blanks to complete the lease. This may work fine for you. My recommendation is to take a contract like this and get a real estate lawyer in your area to look it over and suggest improvements. A good lease is like good insurance. A little money up front for piece of mind down the road.

Be flexible on your rent. When it comes to rent, I am flexible. Let’s say I want $700 per month for rent, but a tenant offers to pay $650 per month. If I wait I may be able to get more rent from someone else. If however, I don’t rent it this month, I just lost $650! It will take me- month at $700 per month to make that up. If I don’t rent it for 2 months, it will take me 22 months to make up that lost rent. This is where I think a bird in the hand is worth 2 in the bush. If I make a concession for lower rent, I will only do it if I get something in return, like the tenant agreeing to yard work or snow removal.

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

The most common complaint from tenants is that their land lords are not responsive to problems that arise in their apartments. No one cares if the kitchen sink is clogged, just as long as it is fixed it in a timely manner. Leave it clogged, and they will move out. I tell my tenants that all maintenance calls will be answered in person within 24 hours (see “Hire a Handyman.”) Honor that commitment and your renters will be happy.

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

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

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