This title from a Dr. Seuss favorite is the best description for a response to an inquiry about opportunities for challenges and advancement in Property Management.  A career in property management is different than many occupations.

Success is measured by results.

Special emphasis needs to be offered to individuals newly hired into the industry.  Unlike many employment opportunities; attendance, a good attitude and completing any task that is asked or assigned is not enough.

Results!  Securing a lease, executing a renewal, striving for resident satisfaction are the components that establish a foundation for a strong successful team member.

-Understanding the sense of urgency; every prospect has the potential of being a future resident; committed to asking for the sale, every call and repeatedly -the loss of revenue every day that an apartment sits vacant, multiple vacancies magnify and multiply the financial loss.

A self-motivated individual will have the drive and initiative to “follow up” with prospects.  This individual understands the importance of developing a relationship with a prospect.  Not satisfied with leaving a voice mail, text message or an email until the response is received.  Successful follow-up is a sale or a lease; not a check box on a guest card to say the task is complete.

Property Management is an industry where hard work and dedication are easily identified, again by RESULTS.  Strong consistent closing ratios, exceptional occupancy, growing revenue and limited concerns for unpaid rent or bad debt loss characterize attributes highly valued in property management.

Most Property Management Companies strive to promote from within; emphasizing the growth and career opportunities.  An individual familiar with specific policies and procedures builds on the knowledge base and the day to day experiences.   Experience in property management can be applied to organizations in every state in America, as well as foreign countries.  Providing homes satisfies a universal need; shelter.  Successful individuals in this industry appreciate the emotional impact of the decision each prospect is confronting.  Choosing a home for their family.

Property Management is not a “business hours only” occupation.  Emergencies occur when families are at home, nights and weekends.  Residents realize a problem exist when they return home at the end of the day.  Property Management is a customer service industry.  People can’t take a day off to look for apartments.  They tour properties on their lunch hour, on the weekend, or at the end of a day.  Being available when needed requires individuals with a mindset to serve prospects and residents.  It’s no surprise the office phone rings more often from 11:30 til 2 p.m. and increases again at the end of the day.

Successful members of the property management industry take ownership at their property.  Regardless of the location of their personal residence, each repair is evaluated as if the funds for the expense are their own.  Preparation for an apartment turns as if it would be a home for them, or a member of their family.    Acceptance of the repair carries a similar burden;-sloppy careless workmanship is not acceptable.  Curb Appeal care is scheduled based on the property’s physical appearance, not simply by the items on the schedule.

For the newly hired that ask about future opportunities; there’s no limit!  Regional Managers and Chief Operating Officers started their careers as onsite managers.  Attendance at Apartment Association events includes hundreds if not thousands from the property management industry.  I’m proud of my thirty plus years in this industry.

Lori Hammond | Company Website | LinkedIn Connect | Lori has 30+ years’ experience in the Property Management Industry, working with both market rate and affordable housing.  Lori has been privileged to work with some tremendous industry leaders during employment tenures with Oxford Management, NHP Management, AIMCO, Alliance Residential, Boston Capital, The Sterling Group, P.K. Housing and currently Management Resources Development.

by Sterling Luxury Group

Real estate investing has been around for centuries, but the factors shaping today’s real estate investment market and the strategies that work to succeed as an investor are markedly different than they were just 5 or 10 years ago. However, below are five sustainable real estate investment tips that can help you prosper as a real estate investor no matter what shape the market is in.

Invest in undervalued rental property on the fringes of desirable neighborhoods.

Rental properties located in lower to middle income area on the edge of more desirable neighborhoods typically sell for half the cost — or less! — of similar properties in bordering areas, but rent for about the same price. Your property has the potential of delivering a return of twice or more than the initial investment.

Don’t speculate.

Invest in properties with proven cash flow. With speculative investing, you are left hoping and waiting for the property to increase in value. And sometimes, this just never happens. Investing in middle to lower homes allows you to greatly increase your chance of having guaranteed profits because as the economy improves, lower class families move up to better homes and during economic downturns, middle class families move to lower cost properties.

Increase the security deposit and decrease your risk.

Two of the most costly problems for rental property investors are unpaid rent and risk of property damage. Raising your security deposit will help protect your profits and it will also help you attract more qualified renters.

Rethink your tenant pool.

Most rental owners shy away from renting to families with children and pets because they are afraid of the wear and tear on their property. But this is a mistake you should avoid. Families tend to be more responsible and take better care of the house, plus they already expect to pay higher security deposits and are actually the most likely group to become long term tenants because they have trouble finding other landlords willing to rent to them

Communication is key.

Negotiation skills are essential in real estate investing but instead of focusing on getting only what you want, work towards win-win solutions that let others know you have taken the time to understand their needs as well. Listen carefully and determine what is most important to the person you are communicating with. With practice, you’ll learn how to develop win-win deals that provide solutions to other people’s problems and lead to your own personal financial gain.

Sterling Luxury Group redefines the meaning of living a luxury lifestyle. From helping you select the perfect home through Sterling Luxury Homes, to refining the finishing touches of your interior decor through Sterling Home Styling, to styling you from head to toe through Sterling Personal Styling, let us redesign and restyle your life from Miami, New York, L.A., San Francisco and Dubai.

The decision to invest in property management ventures is often seen as a way to build a cushion for the future. Whether you assume a dual-role of owner/manager, or you provide management services to property owners, successfully managing your assets ensures the property lives up to your expectations financially.

Turning your focus toward improving the tour experience, will help you successfully manage your assets during the leasing season. Here are a few details to keep in mind while you develop a tour that promotes your property’s unique lifestyle features.

Make it Spotless and Bright

Fine-tune your make-ready process. Often overlooked details can detract from the beauty of your properties. Overtime, ignoring dirt and grime could become a big –  and costly – repair job.

• Thoroughly clean all vent covers, switch plates and interior air flow grills.
• Replace dented, rusted and poorly fitting covers – don’t just paint over them.
• Inspect light fixtures and fittings for damage.
• Examine cabinet interiors and built-ins for paint spray. Remove or replace peeling shelf liners.
• Clean window panes (inside and out) to allow ample sunlight to flood the interior spaces.
• Adjust doors; clean sliding door and window mechanisms to ensure proper closure and easy operation.

Showing an immaculate, beautiful unit creates a stellar first impression. Create a photographic record after the make-ready to document the condition and appearance of the unit. This protects your tenant and your assets.

Although this step is especially important during the leasing season, your property can further protect property investments by establishing a semi-annual inspection. Discuss your make-ready goals with on-site maintenance teams, landscaping contractors, cleaning staff and renovation/repair tradesmen to be sure everyone is one the same page. During the tour tell prospective tenants your encourage reporting maintenance issues promptly.

Embrace a Proactive Management Style

Manage each unit as though you plan to live there; this perspective ensures you consider the best interest of the property owner and the tenant. Use creativity to go above and beyond expectations during the tour. To overcome objections, think “what would I do if I wanted to live here?”

Do you have access to movers that specialize in moving large furniture pieces you could recommend – or better yet negotiate a price for tenants?

Are you willing to allow a tenant to use a block and tackle to hoist furniture to the balcony instead of navigating tight stairwells?

Liven up the Landscape

Before leasing season arrives, take a tour of open spaces and inspect landscaping with a critical eye. Yard ornaments add interesting features, but too many – or poorly maintained – pieces detract from the overall appearance.

Discuss options with your professional landscaping team or consult a landscaping architect for recommendations to de-clutter your open-spaces. Consider planting shrubs or low-maintenance ground cover in areas that perpetually develop bare spots.

Partner with Excellence

Choosing the right partners is essential for proactive property management. The cheapest tool isn’t always the best. Look for partnerships that add value to your property portfolio to maximize your cushion for the future.

AppFolio offers innovative solutions to protect assets for owners and managers.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Apartment managers in California are quickly discovering the many benefits of bringing an online service portal to their residents; benefits not only for those residents, but also for staff members of management. It’s common knowledge in our industry that a happy resident is a pleasant resident, and a pleasant resident is a low-risk resident! If your property hasn’t jumped on the online resident portal bandwagon, it’s time to get with the program, so to speak.

Every landlord, manager and apartment community staff member wants residents to be happy with and enjoy where they live, from the actual individual units they call “home” to the picnic areas and ball courts that grace the surrounding grounds. Part of your responsibility as a manager is to do everything you can to make your residents feel safe, welcome, comfortable and significant within the apartment community.

Connect with the Resident Community

Your residents will have a difficult time being an active member of your community if they aren’t made aware of gatherings, tournaments, parties, shopping excursions and other activities that are available to enjoy. An online resident portal is the ideal place for every tenant to connect with other members of the community, meet their neighbors, become aware of upcoming activities and get familiar with policies, ideas, and FAQs about the neighborhood.

They’ll appreciate and enjoy the quick access they have to community calendars; not to mention, staff members and managers will also be able to remain acquainted and active within the community and with its residents. Staff members will have the tools needed to expand their own awareness of the goings-on in the neighborhood.

Convenience

It isn’t always convenient for people to walk or drive to a leasing office to drop envelopes with their rent payments into deposit boxes; when the weather is less than ideal, when residents are out of town, or when they aren’t feeling their best, it can be a terrible inconvenience to get that rent to the office. With an online resident portal, they can save time, save effort and be spared the hassle as they take advantage of the ability to pay rent online, right from their apartments. They’ll be grateful and happy to avoid late fees when they’re able to pay automatically on time, every time. They can also take advantage of automatic recurring payment capabilities. No envelopes, no checks, no walks in the cold rain to pay rent. This is one of the biggest perks reported by residents to having access to an online portal.

Residents aren’t the only ones who will love the added convenience of a program like this when it comes to rent payments. Some of the best programs can integrate easily with software like Excel and Quickbooks, providing you, the manager, with automatic record-keeping ability and the ability to generate immediate receipts and reports. You won’t have to keep records in old-fashioned filing cabinets stacked to the ceiling around your office anymore! Imagine automated leasing and your desk in the office – when was the last time you could see your desk under all the files, folders, applications and maintenance requests stacked on top? It all disappears with a good online resident portal program that is linked with your financial record-keeping software.

Quicker Response Times

When a renter has a problem, issue or something that they need to bring to your attention, it’s best for him or her to be able to do so as quickly as possible. Few things bring about more stress for people than having some issue or problem and not being able to address it with someone who can help. Even being able to relay issues over the Internet brings about a sense of accomplishment and relief; being able to scratch a task off of a “to do” list just makes people feel better.

One thing residents can do via an online portal is request maintenance; when the toilet won’t flush for John in Apartment 12B, the office doesn’t open until 9 a.m. but he has to be at work at 8 a.m., John isn’t going to be a happy resident. Alternatively, thanks to the online resident portal you’ve put in place, he can send your maintenance team a quick note right away, which means maintenance can address the problem sooner, and John can enjoy a repaired toilet by the time he gets home from work that evening.

Easy Communication, Day or Night

In a similar fashion, residents will be able to contact your management team to provide feedback, ask questions and even refer friends any time it is convenient for them. When residents are given tools that are designed for their convenience, they’ll know that management values their time and will be happier for it. They can take advantage of having quick access to contact information for management, service teams, resident advocates or other staff members. This way, they never feel left in the dark and will always know there is a communication pathway open.

At the same token, when people are planning a party, a shower, a reunion or the like, they’re excited and often want to narrow down and reserve a facility as soon as possible. With an online resident portal, they’ll be elated when they can log in and reserve the community building at their apartment property as soon as they’re ready.

A Display of Loyalty and Sincerity

The main idea here regarding an online resident portal is that it makes residents happy. When residents are happy, it makes management’s jobs easier, which makes management happy. A safe, happy and active neighborhood is something every tenant and manager wants, and it is at the heart of a successful rental business.

People by nature enjoy feeling wanted and appreciated; by making your property the very best it can be for your residents, you are showing them that your team values them and that you appreciate them – that you care about their happiness. Happy residents are much more likely to take care of their homes, are more likely to remain in their leases longer, and are also much more likely to refer their friends and acquaintances to your property. This all means a great reputation for your apartment community and better business, as well.

Take it a Step Further

Having an online resident portal available for tenants is a valuable asset, but it won’t do anyone much good if people don’t use it. Many apartment communities encourage residents to register and use the portal by holding raffles, sweepstakes and contests with prizes. The prizes can be anything from a certain dollar amount off of next month’s rent or a gift certificate to a popular local business to a tablet, cash prize or just about anything else! Not only will this encourage tenants to use the portal, but it will further bring evidence to the fact that you care about them and value them as part of your community.

Steven Ozbun | Company Website | Steven Ozbun, Vice President and Managing Partner at The DZAP Group | LeaseLabs™, is a sunny San Diego native. Steven’s studies include Computer Aided Drafting, Computer Network Systems and Visual Communications with an emphasis in Marketing & Advertising.

You’ve likely already addressed the main staples of your building’s eco-friendly performance when it comes to energy assessments, water use, and green building principles and general practices. However, many of the little things that really make a green community truly green may still need addressing. Residents across the nation are into trends, and fortunately, being green is a trend – one that’s hopefully here to stay.

Do your part for Mother Earth and tap into that potential tenant base by appealing to their eco-friendly side with Energy Star appliances, green pest control, green cleaning, green landscaping, and adequate waste reduction and recycling programs.

Energy-Efficient Appliances and Fixtures

Properties built green already have them, but those considering a green property upgrade should consider installing them: we’re talking about Energy Star rated appliances like dishwashers, refrigerators, ovens, and laundry machines. Tenants love energy-efficient appliances because they cost them less money on their utility bills. Not only are these modern appliances eco-friendly, but many energy-efficient appliances produce less heat during use – an additional benefit during warm seasons.

Green Pest Control

Eco-conscious people possibly detest the use of pesticides more than just about anything, so fostering green pest control practices is a big one to green tenants who don’t want to come home to the scent of chemicals. Integrated Pest Management (IPM) certification indicates that a pest control company is trained in green pest control techniques. Look for these types of preventive and maintenance services in lieu of a traditional exterminator. Certifications to look for in green pest control contractors include those from EcoWise, GreenPro and Greenshield.

Waste Reduction & Recycling

Does your waste management company offer recycling? Do they offer real recycling, complete with clearly identifiable bins at no cost to residents? If not, then you should search for such a provider. Going green is all about recycling by both property management staff and tenants, and there’s nothing green tenants love more than feeling like they’re a part of the solution. Make it easy for them to feel good with a well-defined and implemented waste reduction and recycling plan for the community.

Green Rental Property Cleaning Methods

Do you periodically offer professional carpet cleaning for long-term tenants? Surely, you clean any windows, carpeting and drapes located in common areas and rental offices. Either way, make sure to employ the expertise of a green cleaning company. When it comes to housekeeping staff for your high-rise or concierge-style community, be certain to use eco-friendly cleaning solutions, preferably those made of diluted solutions that lack harsh chemicals.

Green Landscaping and Lighting

Green lighting should feature compact fluorescent light bulbs and timers, while motion activated lighting can be useful within non-essential areas. Lighting is necessary for protection at night, and water keeps the landscaping alive, but thrifty use is impressive to residents who don’t like to see valuable resources wasted on any level.

There are plenty of small, easy ways to Green Your Rental Property beyond these few steps. Be sure to promote your eco-friendly property features via social media and within your rental advertisements!

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Every manager and leasing person has experienced the frustration when a new resident challenges a policy or clause in the lease.

I didn’t know:

-The non-smoking policy would apply to my guests.

-I had to have management approval to have a pet.

-There would be a penalty if I moved outt before my lease is over.

Everyone in property management is well aware a lease is a legal binding contract.  Unfortunately, many residents want to overlook this minor detail.

The lack of respect for the lease as a legal document may start with the management team at the property.  The new resident rushes into the office to pick up their keys. The moving truck is right behind them, along with an entourage of families and friends to help move furniture.  “They don’t have time to sit down for a lease appointment, they’ve signed leases before, and they’ve been working with our staff for weeks, surely if it’s in the lease, we’ve probably already explained it to them, right? “. Sign here, initial, initial, sign and witness.  “Send me my copy by email, or I’ll pick it up later,” close out the lease signing appointment.

Even if the leasing staff was able to point out a few key items in the lease, how much of the resident’s attention was focused on the explanation?  The new resident is thinking about where to place the furniture, will the dining room table make the turn in the hallway and how will they make arrangements to feed the folks that are helping?

Scheduling a lease appointment a day or two before the move in creates the opportunity to review the lease and all the supporting documents, without distractions. The resident will be able to focus on the explanation of the lease.

The intent for a move in to be a positive experience may discourage the leasing team from spending too much time explaining policies or rules that may not apply to the resident’s current situation and could be viewed as negative.

-They didn’t have a pet so we didn’t talk about pet rules.

-I’m not going to talk about moving out on the day they move in.

-They didn’t ask about…..

Allowing an individual to sign a lease without a general understanding of the most important aspects of the rules will create problems and frustrations matching the term of the lease.   It is an individuals responsibility to “know” the content of a contract before signing but most leases are multiple pages of the smallest font size. Giving a new resident a copy of the document they’ve signed, with the offer, “Call if you have any questions,” does not provide any type of orientation for the new resident. Since the leasing staff is not qualified to offer legal advice, some questions or concerns may need to be directed to an attorney. However, holding a resident accountable for the content when no effort is made by the management to point out the items most likely to affect occupancy is poor customer service.

Encouraging the early appointment to review the lease, but insisting on a half hour to hour lease review appointment will eliminate many points of confusion. Referring to the lease as a contract, and described the term as binding, will assist in reinforcing the legal status of this document.

Lori Hammond | Company Website | LinkedIn Connect | Lori has 30+ years’ experience in the Property Management Industry, working with both market rate and affordable housing.  Lori has been privileged to work with some tremendous industry leaders during employment tenures with Oxford Management, NHP Management, AIMCO, Alliance Residential, Boston Capital, The Sterling Group, P.K. Housing and currently Management Resources Development.

There is a new reason for landlords to update their smoking policies (and smoke detectors!): electronic cigarettes.

E-cigs have been making headlines recently after the FDA proposed new regulations. What landlords may not be aware is the lurking fire danger they pose.

It’s not the usual cigarette butt tossed carelessly over a balcony that is the danger this time; it’s the lithium-ion batteries the power e-cigarettes that can explode and spark a fire. Litium batteries are found in many popular appliances, like laptops, cell phones, etc., but the ones in e-cigarettes are more likely to explode.

Sometimes it’s a mystery why that happens, but often the batteries combust because users don’t follow safety guidelines. Common misuse includes actions like using the wrong charger, or charging it for too long, which can cause the battery to fry, or explode. Some smokers may think using their USB charger will avoid fire hazard. This is a myth. The battery can fry either way.

There have been several incidents in the press over the past few years proving how common this problem can be. Some smokers had the e-cig blow up right in their faces. A few exploded the instant the e-cig was removed from its package. Users have reported the batteries leaking and exploding with bright, searing hot fire, and shooting across their house like a rocket. Far too many have been treated for serious burns and toxic smoke inhalation from these explosive batteries.

Besides the apparent fire danger, there is evidence to support the notion that e-cigs still give out harmful second hand emissions.Some tenants assume that e-cigarettes do not create secondhand smoke, so a smoking ban does not apply to them. Already, many city officials disagree, and have added e-cigs to the banned list wherever smoking is prohibited.

Landlords can’t be certain that e-cigs are safe for non-users living nearby.

If your rental policies prohibit smoking, make sure your lease extends the definition of smoking to including vaporizing (“vaping”) or the use of e-cig devices. If you don’t have a non-smoking policy, you should consider it.

And never forget to install and check smoke detectors to make sure they function properly.

American Apartment Owners Association | Company Website | Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

The year-to-date effective rent growth in the U.S. apartment market is the best since the nation’s economy started to recover from the Great Recession, Axiometrics Inc., reports.

Axiometrics, the Dallas-based leader in apartment research and reporting, found that effective rent growth rose to 3.4% in April, up from 3.1% in March 2014 and 3.2% in April 2013. Increased occupancy and burgeoning job growth provide landlords the ability to push rents higher.

Apartment occupancy increased in April to 94.8%, a 60 basis point rise since the beginning of the year. Meanwhile, job growth was 1.6% in March, and the unemployment rate dropped to 6.3% in April. As a result, Axiometrics analysts say, more people were looking for housing in what is already a landlord’s market.

“These outstanding April numbers exceeded expectations,” said Jay Denton, Axiometrics Vice President of Research. “Whether performance continues to exceed expectations for the rest of the year will depend on numerous factors.”

For example, more than 200,000 new units are slated for delivery during the rest of 2014, according to Axiometrics’ surveys of properties under construction or in the planning stages. And new wrinkles always arise: For example, many mortgage lenders in early May started lowering credit-score requirements, meaning more renters could join the home-buying market.

How this reconciles with the bias toward renting among people in their 20s and 30s remains to be seen. Axiometrics’ forecasts that occupancy will slow down and draw closer to the long-term average by the end of the year as supply begins to catch up with demand.

Class A Building Strength
Though Class B properties continue to generate the strongest annualized effective rent growth among asset classes in April at 3.6%, the newer, shinier Class A properties surged in April, jumping to 3.5% growth from 2.6% in March, according to Axiometrics statistics.

Class A effective rent growth is the highest since June 2013 and marks recovery from a dip that took the rate as low as 2.1% in November 2013. Class B properties had a much smaller dip in effective rent growth, bottoming out at 3.0% in November and December 2013. Class C effective rent growth has been relatively steady, though that rate declined slightly in April, dropping to 3.3% from March’s 3.5%.

Classes A and B both sport an occupancy rate of 95.1%, up from 94.9% in March. Class C occupancy lags at 93.9% for April, up from 93.6% in March and almost one full percentage point higher than the 93.0% of April 2013.

Top- and Bottom-Performing Markets
As has been the trend, California, Florida and Texas placed several markets among the best-performing metro areas for annualized effective rent and revenue growth.

Odessa, Texas, with the thriving Eagle Ford Shale in its backyard, tops the chart for a consecutive month, though its rate of growth has declined in the past year. Naples, Fla., is No. 2 and has been among the leaders for several months. Unlike Odessa, its effective rent and revenue growth rates are soaring compared to the previous year.

American Apartment Owners Association | Company Website |  Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

Every landlord wants a lease agreement that’s tough. But did you know that if your lease is too tough, it could cause legal problems?

In legal terms, a standard lease agreement is called an “adhesion” contract. That simply means that there is one party who drafted the agreement, and possesses all or most of the power in the negotiation. A lease agreement is a “take it or leave it” proposition.

There’s nothing particularly wrong with that, unless the lease provisions are too oppressive.

Then, an adhesion contract may be viewed as “unconscionable.” Tenants are forced to abide by disagreeable terms in order to get what they need — a place to live. Courts will restore the balance the power in an unconscionable contract by refusing to enforce some or all of the provisions.

An Iowa landlord learned that lesson when his tenants joined forces, initiating a legal battle over provisions in the lease that a court ultimately determined were unconscionable. The landlord argued (unsuccessfully) that he didn’t enforce any of the illegal provisions, therefore there was no harm in including them in the lease. But the judge found that these provisions could be intimidating to a tenant. Next, the court will decide whether demanding that tenants sign such an unfair lease violates the state’s consumer protection laws — the same laws that govern door-to-door sales and telemarketers.

Consumer protection statutes generally allow for significant  penalties.

Leases must be carefully crafted so they cover all of the bases, without going to the extreme. Does your lease put you at risk?

When evaluating your lease agreement, there are two aspects to consider. The first is to identify any specific provisions that could be illegal. These may include seemingly innocent provisions that are only illegal in your particular locale. For example, some states allow attorneys fees against a tenant, and other states strictly prohibit that provision. Attempting to shift your legal responsibilities onto the tenant is another potentially illegal term. The Iowa landlord required tenants to agree to pay for repairs and upkeep that were not the tenant’s fault.

Other common problem lease provisions include excessive late fees, application or administrative fees that may be prohibited locally, or any attempt to override the law, like extending the period allowed to return a security deposit.  Controversial terms hidden deep in the “fine print” can also be viewed as unfair.  Your attorney can help you identify these potential problem spots.

The other aspect of the lease agreement that you should evaluate is the overall impact. Rather than looking at one particular paragraph, a judge ruling on a lease dispute will consider all things together. Not only do the separate paragraphs of the lease have to mesh, but the lease, coupled with the leasing policies, must be fair. Let’s say you charge a nonrefundable pet fee for cleaning the carpet. At the same time, you reserve the right to deduct from the security deposit a carpet cleaning fee. If you attempt to enforce that provision and take both the fee and the deduction, these lease terms may be viewed as unconscionable. That’s even more likely to happen if you take the deduction even when the tenant cleans the carpet.

To avoid lease problems, the best defense is to know your responsibilities under the law. From there, choose a reputable lease form to work with, and avoid modifications that add fees, change the tenant’s responsibilities or shift liability. When you have your draft lease completed, run it past an attorney, just to be on the safe side. Also, try to resolve disputes with tenants before things get heated — it’s almost always cheaper that way!

American Apartment Owners Association | Company Website |  Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

Disputes with tenants can be a problem even if you have only one tenant at a time. Here are some strategies that can help you diffuse tense situations quickly and effectively before they spread to other tenants or cause profits to suffer.

Quick Resolution

One trick for keeping conflicts low-key is to respond immediately to a tenant’s concerns. Answer the phone or email as soon as it comes in. Allowing an upset tenant to stew for even a day can make the situation worse. Tenants need to have faith that you will respond to their needs. If they lose patience, they may go somewhere else for help — like to other tenants, or even the police.

Cool as a Cucumber

Whenever you are dealing with your tenant, keep emotion out of it. Anger or hostility toward one tenant, or towards tenants in general, will quickly lead to lost profits. Meditate, count to ten, squeeze the heck out of your stress ball — whatever it takes to vent any emotion, and then go deal with your tenant as a calm, cool, and collected professional landlord.

I Can Do What?

Know your legal rights before you make any threats or lay down the law during a tenant dispute. If you aren’t sure what those rights are in a particular situation, let the tenant know you will look into it. Then, call your lawyer and find out what where you stand and what your options really are. How much will it cost you? You need to know what you stand to gain, and what you stand to lose, from the situation.  You need to identify if you are in a situation where you must evict a tenant, and when the situation calls for a more creative solution that avoids the costs and trauma of evicting a tenant.

How Does That Make You Feel?

It’s important to listen to the tenant’s side of the story and do your best to try to empathize. Even if you don’t agree, you will get a better resolution by allowing the tenant to express their concerns. Sometimes, that’s all it takes. Let the tenant vent a little. If possible, talk face-to-face. Some people are more comfortable being jerks on the phone, but wouldn’t act like that in person. Use caution, though. If the tenant seems out of control, don’t place yourself in a dangerous situation.

Don’t ask tenants to face one another in order to resolve a dispute between them. Don’t leave it to a tenant to investigate other tenants for you. That tends to keep them hyper-focused on the problem. Besides, you need to stay in control of the situation.

Systems Work

Have a system in place for airing tenant issues. Think about common tenant problems — like repairs, noise, parking, pets — in advance so you will know what do to once you have the facts. List your options, and start with the least intrusive.  That may include steps like providing a portable air conditioner if the HVAC goes down, offering to move a tenant to another unit, a stern warning, or even negotiating an early termination of the lease if that will save everyone a lot of stress.

Make sure you include a note to yourself to follow up with the tenant to see how they are doing. Use every effort to save the relationship. Disgruntled tenants can cause permanent damage if they feel compelled to take their beef online.  Once those bad comments stack up, it will turn off the best tenants, and it take longer to fill vacancies.

Document Everything

Keep good records of all tenant communications so you don’t have to rely on memory, or try to recreate the event at a much later date. If you have received complaints from other tenants, it’s a good idea to document that, too. Ask the complaining tenant to journal the details and provide you the written information.

American Apartment Owners Association | Company Website | Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.