For the last few decades, landlords have been screening tenants the same way.

First, the applicant fills out a rental application that includes a plethora of personal information. Next, the prospective landlord does whatever he or she wants with it. Scary, right?

Requesting a Social Security number has long been the backbone of the tenant screening process, but in reality, it’s not needed to screen a prospective tenant.

It’s 2014, and identity theft is the #1 crime in America. Sadly, landlords whose “best practice” still consists of collecting an applicant’s personal identity information on a paper rental application aren’t helping to reduce that statistic.

The times have changed, and so has the technology.

Myth 1: I can’t pull a credit report without an applicant’s SSN.

Why is it False? Experian, TransUnion, and Equifax offer tenant-screening services for landlords without the need for the landlord to collect a SSN. In fact, all you really need is an email address and the tenant’s participation.

Cozy has taken this a step further by giving landlords the ability to order the Experian credit report directly from their dashboard. Not only can landlords collect online rental applications, they can also order an Experian credit report with ease.

If you want to hire a third-party screening company to pull the report for you, you’ll need to collect the SSN and pass it along to the screening company.

Myth 2: I need my tenant’s SSN to report a delinquency to the credit bureaus.

Why is it False? You can’t actually report a debt directly to the three big credit bureaus. If you win a judgment against a tenant, most credit reporting companies already have ways of discovering such judgments and registering them on the individual’s credit report.

Screening companies and other business entities can report debt, but first they must apply for reporting access to the various systems and adhere to the requirements set forth under the Fair Credit Reporting Act. Reporting access is not typically granted to individual landlords.

Myth 3: I can’t file a court case without the tenant’s SSN.

Why is it False? The process will vary from county to county, but typically the only information needed to file an eviction or small claims action, is a name and current address (so the tenant can be notified).

For example, California and Colorado courts, among many, only ask for name, address, and phone number on their eviction forms. Most (if not all) counties do not require, nor do they ask for, a Social Security number when filing a court case.

In a recent interview Mark Busch, a landlord-tenant attorney in California and Oregon, commented: “I am not aware of any court that requires a SSN to file. In fact, given the potential for identity theft, it would be highly unusual for any court to require this information at the outset of a case.

Examples of Eviction Action Forms:

• Form SUM-130 – California Unlawful Detainer Form
• Form 1A R7-12 – Summons in Forcible Entry and Unlawful Detainer

Myth 4: I need the applicant’s SSN to run a background check.

Why is it False? A FCRA-certified screening company will be able to pull criminal and eviction records from multiple sources with only a name.

However, in cases that involve common names, such as John Smith, you’ll need something more to narrow it down. Having a middle name, date of birth, and previous or current addresses will help tremendously.

Criminal and eviction records are created by the courts, which don’t list the SSNs in the reports for privacy and security reasons.

Myth 5: I need my tenant’s SSN to garnish wages.

Why is it False?: Though an employer would certainly prefer that you had the SSN to verify the identity of the employee, you don’t need it.

A wage garnishment is a method used by the courts to collect money that might be owed by the defendant as part of a judgment. Before you can garnish your former tenant’s wages, you first need to get a court order, which does not require a SSN.

The employer must obey the court order regardless of whether you have the individual’s SSN or not.

Fact 1: I need the tenant’s SSN if I want to hire a collections agency.

Why is it True? If you plan to hire a collections agency to report or pursue a debt, you will need the tenant’s SSN. However, you should first go to court and win a judgment for the debt.

If the tenant shows up for court, you can request that the judge require that the tenant provide his or her SSN at that time, as part of the judgment, in order to collect on the debt.

If the tenant doesn’t show up, then your only option is to put pressure on the tenant to pay up, or to get a court order to garnish wages from the employer.

Though a collections agency is often the best way to collect the debt, the success rate is abysmal. In fact, landlords have the lowest success rate of collecting a debt compared with every other industry.

Though minimally successful, if you insist on using a collections agency, you’ll need the tenant’s SSN.

Authorship:
Lucas Hall is the Chief Landlordologist at Cozy, which provides free rental management software to landlords. He has been a successful landlord for almost 10 years, with dozens of happy tenants and a profitable income property portfolio. Learn more at Cozy.co and Landlordology.com.

Being a landlord can be incredibly profitable, but also very difficult at times. I don’t know about you, but my properties aren’t exactly on Easy Street.

Over the last 10 years, I’ve experienced many of the issues that plague owners, and cast fear into the hearts of wanna-be landlords. Through endless reading, trial and error, and tenant feedback, I’ve learned that almost every rental problem has a solution.

Based on my experience, here are the top 10 pain points that most landlords will eventually experience, along with ways to fix or prevent them.

1. Loss of Rent/Income

• Vacancy
• Rent Default (Tenant Stops Paying)
• Tenant Hold-over (Tenant Won’t Leave and Won’t Pay Rent)

Solutions:

• To reduce vacancy, start listing your units for rent 60 days prior to the end of the current lease.
• Screen your tenants better – make sure you don’t let a deadbeat or a scammer into your property.
• Terminate the lease immediately for nonpayment – with proper notice for your state, of course.
• Learn about your local eviction process, and be ready to file the paperwork immediately after lease termination.

2. Eviction

• Court Costs of Eviction
• Strict Legal Rules for Eviction
• Tenant Retaliation by Damaging the Property

Solutions:

• Require a large security deposit (1-2 month’s worth of rent, depending on what is allowed in your state) at the beginning of the lease to alleviate potential expenses of court costs and damages.
• Learn about your local eviction process, and be ready to file the paperwork immediately after lease termination.
• Include a clause in your lease that mandates court costs and attorney’s fees be paid by the prevailing party.

3. Stress of Property Management

• Cleanliness of Tenants
• Unintentional/Intentional Destruction of Property
• Illegal Drug Use
• Lawsuits
• Chasing Down/Collecting Rent
• Tenants Lying to You
• Noise and Nuisance Complaints
• Dealing with Disgruntled Neighbors of Your Rental
• Police/Domestic Violence Issues
• Ensuring Tenant Satisfaction
• Ensuring an Unbiased and Fair Screening Process

Solutions:

• Find a rock-solid lease and stick to it.
• Stop by or drive by the property at least once a month.
• List the tenant’s cleaning responsibilities in the lease.
• Put everything in writing (or email).
• Ask the neighbors to call you first, whenever there is an issue.
• Don’t be afraid to call the police.
• Find a local landlord-tenant lawyer and build a friendship with him or her, before you actually need an attorney.
• Use an automated tool, such as Cozy, to accept applications, screen tenants, and collect rent online.

4. Stress on Personal Life/Relationships

• Spouse or Partner Worried About Finances
• Always Being On-call for Rental Issue

Solutions:

• Include your spouse or partner in the financial decisions and respect their opinion.
• Keep a three- to six-month emergency (or vacancy) fund for each property. Yes, it takes a while to build that up, but you’ll sleep better.
• Ask your tenants to report issues via email or text, which only takes a second to review. If it’s urgent, you can deal with it immediately.

5. Tenant Turnover

• Trying to Find a New Tenant
• Cleaning up After a Previous Tenant
• Feeling of Rejection When Prospective Renters Don’t Want to Rent Your Place
• Exhaustion from Showing a Unit Week After Week
• Handling, Storing and Disposing of Abandoned Personal Property

Solutions:

• When looking for new tenants start early, while the unit is still occupied.
• List your units for rent 60 days prior to the end of the current lease.
• Refresh your listing on Craigslist every three to five days.
• Don’t sweat the clean-up, just hire a maid service and deduct the cost from the deposit (excluding normal wear and tear).
• Schedule showings back-to-back, every 30 minutes, in a four-hour block on a Saturday. I call this “The Landlord’s Open House.”

6. Repairs

• Knowing When to Do It Yourself and When to Hire a Pro
• Finding and Evaluating Qualified Contractors

Solutions:

• Create a handy tool bucket that you can keep in your trunk.
• Your rentals will provide great opportunities to learn basic handyman skills, but don’t get in over your head. I’ve made small leaks much worse because I didn’t know what I was doing.
• Buy an all-purpose DIY book, and skim through it regularly. Keep it in your car, so you always have it nearby.
• Ask to observe every service professional that comes to your property. You’ll learn a lot through observation.
• Research contractors on Angie’s List, Handy (formerly Handybook), Yelp, and the Better Business Bureau.

7. Compliance with Laws

• Obtaining Business Licenses and/or Landlord Registration
• Understanding Landlord-Tenant State Laws
• Knowing Landlord vs. Tenant Rights

Solutions:

• Don’t try to circumvent the government. You may get away with it for a while, but eventually it will catch up to you.
• Learn your state’s rental laws.
• Join a local landlord association, rental housing association, or real estate investor association to network with other landlords.
• Attend landlord training in your city. Landlordology provides free guides and occasional online webinars. Join our newsletter to stay in the loop.

8. Adequate Insurance

• Insuring Each Property
• Insuring Against Rental Income Loss and Lawsuits
• Insuring Your Portfolio

Solutions:

• You might get a better rate if you insure all your properties with a single provider.
• Inform your provider that your properties are rentals, and not homeowner occupied (critical!).
• Sign up for “Fair Rental Income Protection” in your policy to cover the rent during a covered loss.
• Make sure you have proper coverage.
• Consider getting “umbrella” insurance to cover excess liability and risk not covered by the individual policies. An umbrella policy will insure your entire portfolio, not just your properties.

9. Leases

• Finding a State-compliant and Bullet-proof Lease
• Explaining Lease Clauses to Tenants
• Knowing Whether or Not Your Lease Will Hold up in Court

Solutions:

• Use a premium, state-specific lease that has been reviewed by lawyers. It’s worth the investment.
• Don’t ever use a “free lease” that you find on the internet. It could cost you thousands in lawsuits.
• Review your state laws for any required or prohibited clauses.
• Review the entire lease with the applications before signing.
• Use online document signing tools, like SignNow, HelloSign, and Docusign, to digitally sign leases remotely.

10. Finances

• Keeping Track of Security Deposits
• Calculating Interest on Deposits
• Commingling Funds

Solutions:

• Keep the security deposit in a separate, interest-bearing bank account.
• Open a separate security deposit bank account for each property.
• Collect and give interest on the deposit money if you are required to by law. If the statutes don’t regulate interest, just give the tenant all the interest that is accrued.

BONUS: Taxes

• Keeping Track of Income and Expenses
• Calculating Depreciation
• Sending out 1099s to Contractors
• Deciding to DIY or hire a CPA

Solutions:

• Use an all-in-one property management software that lets you track income and expenses. If not, there are other great tools, like Freshbooks, Excel, and Quickbooks.
• Property Managers (not landlords) who pay a contractor more than $600 in a given year, must send out 1099s. Some tools like, Buildium and Appfolio can make this task easier.
• TurboTax can easily prepare and file the taxes for most small landlords. If you have multiple business entities, joint ownership, or tax shelters, then you should probably hire a CPA.

Authorship:

Lucas Hall is the Chief Landlordologist at Cozy, which provides free rental management software to landlords. He has been a successful landlord for almost 10 years, with dozens of happy tenants and a profitable income property portfolio. Learn more at Cozy.co and Landlordology.com.

Many small business owners struggle with measuring how well individual marketing campaigns are performing. This is especially true when you launch several campaigns simultaneously — mobile coupons, social media surveys, print ads. Some property managers wonder if measuring marketing efforts really matters.

Three Reasons Why Measurement Matters

Measuring return on investment helps you identify what strategies are working for your business and which ones are ready for the recycle bin. With accurate measurements, you can prioritize activities effectively and make better informed decisions about future campaigns. Finally, measurements give you benchmarks for determining value and demonstrating return on investment.

What to Measure and How

Before you start gathering data, you need to conceptualize your challenges. It’s easy if you break it down into three stages.

#1  Name Your Challenge

In step one, you’ll clearly define your challenge or problem. What is your goal? Do you want to improve your reputation in the community? Are you looking to grow your market share or outperform similar properties? Maybe you want to reduce vacancy rates by ten percent compared to last year or last quarter.

#2 Test Your Solution

In stage two, you put your solutions in motion. You’ll need to identify media or activities you want to measure. It might be partnering with an advertising firm, running ads in the location newspaper or enlisting the help of social media influencers.

#3 Establish Benchmarks

Define your baseline standards. Individual property benchmarks will depend on your overall property goals. You might want to measure your marketing activity against industry norms, past performance or local competition. In stage three, you identify measurement standards to prove the effectiveness and monetary worth of certain campaigns.

Let’s say you want to introduce a new floor plan or upgraded amenities to the community and think local real estate agents are a valuable resource.

Designing Your Marketing Strategy

The graphic above doesn’t include all details for your plan. For example, you might want each real estate agent to use a registration code to measure who generated the most traffic, or your goal might be to measure only increased traffic using outside influencers. Your property goals define your tactics.

To effectively measure return on investment, you need to focus on the desired outcome. Let’s use social media as an example to show you how designing your marketing campaigns for measurement works. If you’ve recently deployed new property management software that helps your team respond faster to maintenance requests, your desired outcome might be to repair a less than stellar reputation and improve online reviews.

• Your first line of action might be to use social media to announce your improved response times (property activity).
• This activity generates interest and attention. Measure interest by the number of shares, re-tweets, comments or inquiries.
• Heightened interest, if effective, will increase public awareness and improve satisfaction for current residents.
• Improved satisfaction leads to a change in attitude in the community.
• Better perception leads to more traffic and hopefully increased lease applications and a better reputation overall.

You could incorporate a feature on your property website that shows the average response time to maintenance requests as your team improves. This is a great feature that many industries use as an accountability tool and a marketing tool. Your property management software team can help you learn leverage analytics to fine tune your marketing activities.

There’s an awesome analytics tool to help you measure social media engagement and calculate your  ROI called True Social Metrics. Get a free 30-day trial here.

Whether your property management goals include rebuilding a soiled reputation, announcing new services or amenities, or generating community awareness, measuring the value of your marketing campaigns is essential if you want to get the highest return on investment. Understanding what to measure and how is the best place to start.

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.

Most apartment owners want to increase their length of tenant occupancy. Not only does this limit the amount of resources you have to sink into cleaning, changing keys and paperwork related to tenant screening and landlord forms, low turnover increases an apartment complex’s chances of being a safe, neighborly place to live.

Unfortunately, while you can’t make tenants stay, you can offer them incentives to remain. Tenants who switch apartments but stay in the same general area often move because they’re looking for better amenities. This means that if you can provide these amenities, you stand a better chance of keeping your renters around. The next time your buildings are up for renovation (or even if they aren’t), consider these five simple and relatively inexpensive projects that will lengthen renter occupancy and make your life easier.

1. Install In-Home Laundry Units

No one likes having to haul bags or baskets of stinky laundry down to the Laundromat, especially when it’s hot, rainy, cold or otherwise dreary outside. Even heading down to the basement facility, while it’s better, can feel unpleasantly inconvenient.

Instead, give your tenants a reason to love their home by providing in-home washer and dryer units. Many apartments have an underused but convenient corner or closet in which to stick stacking or side-by-side units, and most major retailers offer smaller than normal appliances for apartments. Keep an eye on sales and talk to distributers about bulk purchases to maximize your dollar.

2. Increase Storage Space

When apartment owners hear “increase storage space,” they often imagine lengthy and expensive projects to build out closets or add basement lockers. While it’s great if you can do this for tenants, small additions also go a long way toward increasing available space in an apartment.

For instance, if you offer shelving in closets, bathrooms or pantries, extend it all the way up to the ceiling. Most items that stack on shelves aren’t three feet tall, so there’s no need for shelf space to end that far below the ceiling. You could also add TV connector cables above mantles or fireplaces. Since so many people have wall-mounted televisions these days, this low-cost move could really increase tenant satisfaction.

3. Put in A/C Units

Heaters are standard, but in areas where summer nights become unbearable, air conditioning units really should be as well. If your tenants have to depend on their own clunky, annoying window units to cool off during the muggy months, they might move on to cooler climes.

Prevent this by installing central air conditioning. To keep costs down, consider waiting until you need to install new heaters, then putting in combined heating and A/C units. Many places offer servicing with purchase, so ask the sales rep whether you’ll get free delivery and installation when you place an order.

4. Lay Down New Carpet

Everyone loves something shiny and new, and carpet tops that list. Carpet can be downright disgusting when it’s dirty and old, dingy no matter how many times you wash it, which can be a real tenant turnoff. On the other hand, new carpet lights up an apartment and makes it feel cozy.

If you consider installing new carpet in all your units, make sure you choose one with a low pile to minimize the buildup of dirt and grime. Berber carpet is a great choice for rental units, because the threads are pulled back down into the carpet itself instead of sticking up. While this isn’t as fluffy, it’s easier to keep it clean and remove stains.

5. Switch Out Your Appliances

If you’re still rocking pea-green Frigidaire products from the 1970s, it’s time to upgrade the kitchen appliances in your apartment units. Even if you’ve got a slightly newer array, you may still want to upgrade: “New appliances” is a real winner when it comes to rental advertisements.

If you can’t afford new, go with the ever-classy stainless steel, which with a brush-up can look like new. This idea, along with the ones above, will reduce turnover by helping create satisfied tenants who love their apartments and don’t want to move.

American Apartment Owners Association | Company Website | At the American Apartment Owners Association (AAOA), our mission is to serve the interests of landlords, real estate brokers, property managers, real estate owners and apartment building owners nationally.  Visit www.AAOA.com for more information about membership details!

If you unexpectedly find yourself with a home to rent, you’re what some people call an accidental landlord. You never really planned on owning rental property, but maybe you’re facing a job transfer or you’ve recently inherited a piece of property in another city.

The Cautious Market Place: Food for Thought

Perhaps rigorous scrutiny from oversight committees and regulatory agencies like the Office of the Comptroller of the Currency are dampening private home sales in your area.

The real estate market has rebounded and continues to show promise for homeowners, but there’s reason to be cautious about the recovery – and the future. Some industry experts suggest that as the recovery period flattens, some mortgage lenders are reverting to practices seen before the housing market crash.

Digital Risk Analytics reports that almost two-thirds of states will reach or pass pre-crash home values in 2015. That’s great news for people who have been biding their time for prices to rise over the past seven years. However, it looks like some appraisers, under pressure from lenders, may be artificially inflating prices. Alterra Group, LLC, an advocacy group for real estate appraisers in Maryland, says 40% of appraisers polled reported increased pressure to over-value homes. That’s up 3% from last year.

According to the National Association of Realtors, the rate of contracts cancelled due to low appraisal values fell 7% between March 2012 and March 2014. It makes one wonder if this is a legitimate indicator that prices are returning to normal or evidence of inflated valuations.

Preparing for the Landlord Role

Regardless of what circumstances find you assuming the role of accidental landlord, there are at least five things you must consider before you sign the lease.

One: Know Your Prospects

Obtaining a thorough application is vitally important. Verify the information by using resident screening services or property management software that allows you to compare application details with background check data, criminal records and credit histories.

Two: Check Your Emotions

If you’re renting a home where you’ve lived for many years, set your emotions aside. Establishing rental rates based on personal experiences and intrinsic value may price your home out of reach for high-quality residents. Once you’ve decided on a resident, respect his or her privacy. It’s acceptable to periodically inspect the property, but give proper notice and outline expectations for access in the lease.

Three: Compare Rental Rates

Along with emotional pricing, unrealistic expectations can limit your options. Talk to a local real estate agent or invest in rent comparison tools to determine average rental rates in your area. You may have to adjust your expectation to avoid having a vacant property. Taxes, insurance and mortgage payments won’t stop just because your property is vacant.

Four: Understand Your Rights and Responsibilities

Every state has a unique set of landlord/resident laws. While you have some flexibility in lease design to assign responsibility for repairs and general maintenance, you’ll want to know which repairs you are legally responsible for and if there is a mandatory response time.

Five: Lease with Confidence

If you’re planning to sell the home, make sure your lease reflects your plans. It’s equally important to advise potential buyers of lease terms upfront. Hiring a real estate attorney to review your lease will ensure you cover all the bases in a legally binding document.

Becoming an accidental landlord has its privileges and drawbacks. The better prepared you are before you sign the lease the more likely it is that you and your resident will have a great experience. Who knows, you might like it so much you invest in other properties down the road to fund your retirement.

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.

If you’ve decided that you’d like to open a property management company in 2015, you might be wondering how to get started.

Operating a property management company that oversees the daily operations for multifamily housing communities and commercial properties is more complex than it was a few decades ago. Fortunately, there are dozens of resources today to help you get started on the right foot.

While experience is definitely valuable, self-training is a risky approach if you want to succeed in the property management game today.

Legal Challenges Can Quickly Drain Your Financial Reserves

There are literally thousands of laws and regulations governing everything from lease structure to discrimination avoidance. Retaining an attorney who specializes in real estate law is not required, but it is highly advisable in our litigious society. Every state has a unique set of rules and regulations and many municipalities have additional laws regarding evictions, privacy and property maintenance.

In addition to regulations governing rent collection, building repair and maintenance, and leasing, code enforcement includes things such as workplace safety, sexual harassment, insurance and a host of tax responsibilities.

Relationships Can Build or Break Your Business

Starting a property management company naturally requires some negotiating and relationship building skills. You’ll need to manage relationships with employees, contractors, bankers, owners, residents and other business leaders.

Building your brand requires creativity, an innovative spirit, exceptional sales skills, and conflict resolution strategies. If you’ve never taken a class in communications, you should. Understanding the nuances of body language and respectful dialogue will help you communicate effectively with diverse groups.

Building a good reputation takes time, but rebuilding a damaged relationship is exponentially more difficult.

Technology and Information Move at the Speed of Thought

A few decades ago, many property management teams relied on manual accounting systems and the telephone to dispatch maintenance requests.

Today, residents can report maintenance issues and monitor the progress on their mobile devices. With social media, a disgruntled resident can broadcast dissatisfaction with management in a matter of seconds to hundreds of online friends.

Deploying technology-rich resources will help you efficiently manage the day to day operations of your properties, improve communication and build long-term relationships.

What Steps Should You Take to Get Started on the Right Path?

1. Get certified/licensed in property management. Having credentials, whether it is a real estate license, a property management certificate, or other industry recognition will build credibility with clients and residents.
2. Fine tune your leasing skills. Take a class in communications. Talk to your attorney about lease language and enforcement. Compare resident screening technology that weeds out undesirable residents and identify solid prospects.
3. Subscribe to trade journals and industry publications. Many organizations and industry advocates offer online resources for property managers. Access to market research and up-to-the-minute regulatory changes gives you valuable information about the economy, demographic expectations and technological advances you can use in your business.
4. Build relationships within your community. Join the local Chamber of Commerce or the Downtown Leadership Club. Engage in community events or volunteer with a local charitable organization that supports your area.

There’s never been a better time to start a property management company than today. Technology makes it easier to gather research and document conversations. New tools allow you to screen residents, communicate with clients and monitor your financial activities.

Your experience is valuable, but you’ll want to partner with industry professionals and make sure you deploy key technology solutions to better serve your clients and grow your business.

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.

Thinking about self-managing your rental property? Managing unavoidable expenses like taxes, maintenance, professional consultant fees and administrative costs, will set you on the path to increasing profits.

Let’s start with insurance.

Managing Your Bottom Line

Insurance costs continue to rise, although industry experts predict rates will increase at a slower rate or remain flat in 2015. Commercial insurance saw a modest 3% increase overall in the third quarter of 2014. Compared to increases as high as 6% in previous years, that’s a welcome bit of news. The asking price for homes (market value) likely influenced the diminished growth. According to MarketWatch, although some metropolitan areas are still accelerating home prices are flattening out in many markets.

If you’re going to manage your own properties, it’s imperative that you research state and federal requirements about coverage and understand your options. Coverage varies from state-to-state and depends on the company you choose, but here are some options to consider.

• Comprehensive: Covers property owners from sudden loss not excluded elsewhere in your policy.
• Named Peril Coverage: Covers specific natural and accidental damage from specific events, such as fire, hail, flood, etc.
• Liability: Covers injuries and damage to someone on your property due to negligence. Some attorneys recommend you add a liability rider that covers your property reputation. These riders protect you again slander, claims of discrimination and unlawful eviction charges.
• Extended Loss: Covers additional expenses associated with total property loss not covered in cash-value and agreed loss settlement policies.

Whether you have one home, or a dozen homes ready to bring on the market, schedule a risk management review with a trusted insurance agent.

Protecting Your Residents and Your Workforce

Designing an insurance plan is critical to protecting yourself from the unknown, but you can reduce your risks by keeping your property in excellent condition. Minimize your exposure by vetting local contractors carefully, scheduling repairs promptly, and inspecting your property for signs of age and damage. Your property is unique, but these tips will help you create a checklist for preventative care.

• Check exterior lighting weekly.
• Inspect stairs and walkways quarterly.
• Inspect breaker boxes and fuses annually. Don’t foget to check electrical outlets, wall receptacles and exhaust fans.
• Test smoke detectors and recharge fire extinguishers twice each year.
• Replace filters on appliances and HVAC units quarterly.
• Schedule routine maintenance on water heaters, heating and cooling systems, plumbing and appliances based on age and manufacture’s recommendations.

Partnering with Professional Consultants

Building a good relationship with outside contractors to maintain your property is important. Preventative maintenance extends the life of your appliances and keeps your property value high.

Unless you have extensive accounting and legal experience, you’ll probably benefit from hiring professionals. Many attorneys don’t charge for the initial consultation, so take your time finding a legal representative with an education and experience related to real estate law. It’s better to have a relationship with an attorney before a legal challenge arises than to search for one after the fact.

Our tax code is challenging. Staying informed about allowable deductions and fluid tax regulations is a full time job. Permanent tax code changes for landlords took effect in January 2014, offering some unique benefits for homeowners, but taking advantage of the changes means properly “decoding” the updates.

Engaging a CPA to guide your tax planning strategies is one step you can take to increase revenue potential.

Investing in Technology

Proactive management saves time and money. Investing in property management tools that help you manage maintenance issues and record rents and expenses accurately reduces stress and streamlines reporting.

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.

Sometimes the cost of repairing an old appliance just doesn’t make sense. But when is a good time and what brand should I consider buying? Last week I sat down with Chris Boucher from De Anza Appliance, Service and Repair, to ask him a few questions about purchasing a new appliance.

When is it time to repair vs. replace my appliance?

There are a lot of factors to consider but the general rule of thumb if your appliance is less than 10 years old have someone take a look. If it’s over 15 years old I suggest you consider replacing it. New appliances will be more efficient and you’ll start fresh with a new useful life. That middle ground in-between depends on a couple items: 1) Is the appliance in otherwise good shape? 2) Is it built-in to the cabinet and harder to install? 3) How long will it be before I remodel my kitchen again? With some appliances, like built-in double wall ovens, professional style ranges, large Sub Zeros or other built-in appliances, it may be worth fixing an older model since the replacement cost could be in the thousands of dollars. I would estimate the useful life of most current washers, dishwashers, and refrigerators to be between 12-18 years; and dryers, ovens, and cooktops between 15-25 years.

With so many brands out there, how do I figure out which one is best for me?

Whirlpool is a manufacturer that owns several brands. Currently Amana, Maytag, KitchenAid, and Jenn-Air appliances are all built the by the Whirlpool company. Swedish based Electrolux owns the Frigidaire brand and was recently purchased General Electric home appliance division. Whirlpool also builds the Kirkland brand you see in Costco and many of the appliances you find at IKEA.

There’s a lot fewer brands than you might think. For instance Kenmore at Sears is built by other manufacturers. Most of their current models are built by Whirlpool, Electrolux, Samsung, or LG. Sears carries the most brands of any of the big box retailer, but their sales team might recommend Kenmore since it has the best profit margins.

Other big box chains have Electrolux, LG, Samsung, and Whirlpool brands. Check out local independent dealers like University Electric or Airport Appliance if you’re looking for commercial or boutique brands, such as Dacor, Speed Queen, Sub Zero, or Thermador. Although you might pay a bit more we always recommend our customers start there. You’ll get better selection, a more knowledgeable sales staff, and full-service installation options. Price is sometimes negotiable at the independents, especially if you’re buying a laundry pair or doing an entire kitchen remodel.

Checking out consumer reports for repair rates and efficiency ratings doesn’t provide a complete picture. If you have an appliance repair company you work with talk with their technicians and ownership team about brands they service, ones that last the longest, brands that have lower costs of repair. Finding a good servicer you can trust that can handle your appliances is as important as having a quality appliance. Even the best rated machines can break down and you’ll be in a pickle if you don’t have a good servicer.

What can I do to help make the sales process easier?

Size matters. If you have a technician in your home and you decide it’s better to replace rather than repair have the tech measure both the appliance and the opening around the appliance. The “cut-out” dimensions will help guide the sales professional in finding an appliance that will come closest to fitting the existing opening. If the new built-in appliance is bigger or smaller knowing the dimensions helps the installation team provide an accurate quote that includes cutting into the cabinets or countertop or building a trim to fill in the gaps.

What’s important to you; time-saving features, energy efficiency, or price. With today’s units you usually can’t have it all. The least expensive appliances will last the longest but won’t be as efficient or have as many options as their more expensive counterparts. Energy efficient laundry and dishwashers can save you money but sometimes have longer cycles than you are accustomed to. Feature laden appliances, especially refrigerators with ice makers, computer controlled crisper bins, and other additional electronics provide a lot of convenience but you sacrifice energy efficiency and pay a higher price tag.

Be prepared to answers questions like; how many people are living at home, how many loads of laundry do you do, do you wash king size bedding, do you cook frequently, do you like to bake, how often do you go grocery shopping and what appliance features are important to you.

By Sandy Adams

As a property manager you already know that owners depend on you to collect rent and disburse payments promptly. But, a good property management team proactively takes steps to make sure that owners earn the highest return on investment possible.

Achieving that goal is about so much more than just funneling a monthly check toward the owners. Capturing the highest rent potential starts long before a resident signs the lease.

Here are a few things to consider to help you determine if you’re really giving your owners everything they deserve and expect.

Are you attracting residents?

With an attractive online presence and a strong marketing plan, your property should always be filtering resident inquiries.

• Does your website give potential renters enough information to entice them to want to know more?
• How quickly does your team respond to an inquiry?
• Can a prospect schedule a tour to view an apartment online?

If your website isn’t attracting potential residents, it may be time to update your information, add better photos or consult with a professional content writer to get your web presence in tip-top shape. Marketing strategies should work like a magnet – attracting viewers and holding their attention.

Are your rates competitive?

Do you really know your competition? Knowing the market in your area is imperative to delivering maximum rental income for owners. If you’re using property management software, you likely have access to real-time rental comparison tools. You don’t have to invest hours researching rent yourself, but you must tour nearby properties often enough to know when your competition adds new amenities or updates their property rate tiers.

Are you screening residents effectively?

Keeping your occupancy rates high is one way to serve your owners. But, having a full complex shouldn’t come at the expense of finding the right residents for your property. Warm bodies don’t pay the rent, so to speak.

If you have an unusually high percentage of residents that pay late or ask for extensions, take a look at your screening tools and approval criteria. Your goal should always be to attract the highest-quality resident – even if it means turning down a few applicants along the way.

Are you managing third-party relationships?

Maximizing revenue streams means managing expenses. A property manager who knows how to control expenses is a property manager that serves residents, owners and the management company wisely. Choosing contractors and hiring dependable on-site employees is as important as personally selecting highly-qualified residents. Contractors who aren’t reliable – or who don’t bill promptly – directly impact profits. Residents are less likely to renew their lease if they frequently have to wait “too long” for repairs and maintenance.

Leverage your property management software to help you vet contractors. Your annual bidding process should be an exercise that leads to partnering with exceptional vendors.

Are you making it easy for residents to pay rent on time?

Online resident portals allow residents to conveniently pay rent 24/7. But, if you only accept electronic checks, you might be slowing down the process. Could your company expand the type of online payments accepted? Naturally, you’ll want to explore fees associated with ACH deposits, third-party clearing houses or credit cards, but the fees may offset the delay.

Limited office hours are another reason residents cite for making late payments. If you’re not using an online portal, this might be a great time to explore that option.

A good property manager knows that maximizing profits should be an everyday goal, and not just something you focus on from the first to the tenth.

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.

Experienced property managers and multifamily investors keep a close eye on national inventory. The laws of supply and demand suggest that when thousands of units come on line in a few months, occupancy rates and rent potential fall. But, 2014 hasn’t followed traditional patterns. Knowing there’ve been about 180,000 units added over the past twelve months – and the third and fourth quarters should add thousands more – it seems implausible that occupancy rates are the best they’ve been in a decade and a half.

Why? There are a number of factors driving this phenomenon. Let’s look at three.

Number One: Balancing the additions and the subtractions.

With abysmal conditions of the economic downturn behind us, inventory growth has improved, but not fully recovered – staying below the long-term average. Plus, while thousands of new properties are slated to come online in 2014, thousands more are being retired. Senior housing, low-rent high-rise buildings and other aging properties are being demolished to make room for more modern, compliant condominiums and apartment structures.

Jay Denton, VP of Research for Axiometrics, told Multifamily Executive effective rent growth from March to May (2014) was one of the strongest periods they’ve seen since they started tracking apartments almost twenty years ago. New York and Minneapolis markets reported occupancy rates in January nearing 97%, and Lancing, Michigan and Naples, Florida achieved that milestone – 97.0% and 97.5%, respectively.

Number Two: Millennials are making changes.

The financial outlook is improving for young adults. After years of camping out in mom and dad’s basement to save money, young adults are finally able to afford to move out of their parents’ homes and start supporting themselves. But homeownership isn’t as important to the 25-34 year old group as it was to their parents.

Today’s recent grad is more likely to choose an apartment in a trendy downtown neighborhood that is within walking distance to work or public transit than he is to seek a suburban single-family home. The result is that more people are staying put when they find an apartment home rather than looking for a place to buy.

Financing is still challenging for some Millennials who want to become home owners. These financial challenges often mean they’re willing to pay more for an apartment that meets their needs while they save the money for a large down payment. All of these factors are contributing to the gap between single-family and multifamily starts moving closer together.

Number Three: Renters are shaping the market.

A large percentage of new units coming online are high-end apartments. Renters who can afford top-of-the-line apartment homes are absorbing most of the new-to-market units, while those on the lower end of the economic scale may be upgrading from Class C to Class B, or B to A. In essence, the times are creating a new group of renters, who are shaping the rental market to fit their dreams and visions.

The remainder of 2014 looks promising for property managers and investors. Expect residents to continue to upgrade to the next level – searching for better amenities, more convenient locations and long-term addresses. It’s not the norm, but that’s probably a good thing.

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.