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.

Research and development over the past several decades have consistently reduced energy consumption in the US. But, did you know that the National Academy of Engineering predicts we will use almost 70% more energy in 2040 unless we continue to reduce energy intensity sufficiently enough to offset growth and economic conditions?

Understanding the Vital Role of Multifamily Property Managers

The good news for property owners and managers is that those energy predictions don’t have to come true. In fact, the same NAE study found that, accounting for population growth,  if U.S. continues to reduce energy consumption at the levels that it has for the past 30 years, energy use will rise by less than 10% over the next 15 years. With 25 million multifamily residences in the U.S., property managers have the potential to reap tremendous savings and benefit our country at the same time.

Some property managers delay implementing energy conservation measures because they doubt reports that their efforts will produce significant benefits. Others hear anecdotal accounts of green industry failures and hesitate to invest money in unproven upgrades and lifestyle changes.

There are steps every owner or property manager can take to reduce energy consumption and lower costs; increasing ROI and profit potential.

Before you get down to planning for energy conservation, you must know how much energy you typically consume over a specific period – and how much that energy costs. Working with your utility provider, or by reviewing a year’s worth of utility bills, create a spreadsheet that details average monthly use. This simple method does not take into account extreme weather patterns and economic fluctuations.

Consulting an energy conservation specialist to analyze your current and past usage provides more accurate starting numbers. This also gives you a realistic starting point for setting goals and creating strategies to meet your goals.

Strategic Considerations

Energy conservation measures encompass a broad array of strategies that tighten control of energy use and expenses. It is valuable to understand the diverse types of conservation strategies. Here are three examples.

Some strategies seek to control cost per unit. For example, negotiating utility rate contracts can reduce costs, even if the energy consumption remains flat.

Consumption lowering strategies seek to control energy use: Switching from electric to solar lighting might reduce energy use and carbon footprints immediately, but could require more financial investment up front.

Dual-strategies seek to control both financial investments and energy use: Upgrading appliances or installing energy-efficient window treatments can reduce energy loss and lower consumption.

Partnering with Experts

Working with industry experts and energy conservation specialists help property owners conduct a property-wide analysis, drill down into the details to set an accurate baseline for measurement and to design strategies for reducing energy use and costs.

The partnerships you form will have the greatest impact on the success of your energy conservation program. Leave no stone unturned as you look for energy drainers on your property.

1. Inspect appliances for age and performance deficiencies.
2. Consult your accountant about applicable tax incentives and credits.
3. Review lighting, landscaping, irrigation systems, interior design, window and door integrity and exterior siding to see if upgrades could save money or lower energy use.
4. Compare energy types. Should you switch to LED light bulb? Would gas appliances be more beneficial than electricity? Can solar lights replace electric security lights?

Multifamily homes use an extraordinary amount of energy in the US. Implementing energy conservation measures for your property has the potential to reward you with significant return on investment.

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.

Revenue growth and opportunity is a performance indicator for every property under the Property Management umbrella.

Many affordable properties are restricted from increasing rents or limited by agency restrictions to increases that are deemed necessary by expenses.  There are still several opportunities to increase revenue.

Occupancy and rent collection are two areas of focus.

Is the property 100% occupied and 100% collected?  Not just on the date the reports are reviewed, but the average monthly occupancy.  As properties become more the stable the average occupancy increases.  Increased occupancy supports increased opportunities for rent collection.

Average occupancy is a reflection of the number of days each apartment home is occupied, the mirror side of a days vacant assessment.  While many properties have a wait list, there is often a window of vacancy during the turnover and assignment of the new lease.  Every day the apartment is vacant represents lost revenue.  Completing a turn in 5 days instead of ten, increases the opportunity to get the new lease signed and initiating a new commitment for rent assessment.  Likewise, insuring the next move in is financially prepared to sign a lease and take possession of the apartment as soon as the turnover process is completed, will also reduce vacancy loss.  An apartment that is “preleased” but sitting vacant for the next move in, for a week, two or even three is not generating income.

In conjunction with occupancy is rent collection.  A property with 100% occupancy and 100% rent collection is the true jewel of any management portfolio.  The economic rent for a property is calculated by the rent collected in relationship to the gross rent potential.  In essence a property with 93% occupancy and 7% unpaid rent could be viewed as 86% economic occupancy.  Rent discounts and concessions can also influence the economic occupancy but the use of these tools is usually limited with an affordable property.

Too often, the unpaid rent at month end is viewed as improved when evictions or other individuals with delinquent rent, turn in keys and move outs are recorded.  Most unpaid rent review focus’ on current residents, allowing move outs to eliminate unpaid rent balances.  These move outs are viewed as a victory.  Described as Bad Debt by some organizations, move outs with unpaid rent balances represent unrecoverable lost revenue.  Security deposits reduced to assist in lower move in costs seldom offset the accumulated unpaid rent balance.  Unpaid rent balances assigned to a debt recovery agency will occasionally recover a portion of these charges, but the agency collecting the payment will retain a percentage of the amount collected as their fee.

Organizations will recognize, acknowledge and reward the efforts to reduce bad debt loss, but the true performance reward is the property that year over year records “zero” as their bad debt expense.

Occupancy, rent collection and reduction of bad debt can provide any property the opportunity to achieve growth in revenue without requiring a rent increase.

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.

Apartment markets rebounded from a soft January, according to the latest National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions.

Last year’s concerns of overbuilding or lack of capital have largely eased for the first time since April 2013.

“Supply appears to have ramped up enough to meet approximate ongoing demand with few, if any, signs of irrational exuberance,” said NMHC Senior Vice President of Research and Chief Economist Mark Obrinsky. “A handful of submarkets are facing a temporary surge in new deliveries that may put downward pressure on occupancy rates or rent growth. However, increased development costs could well keep a lid on new supply.”

According to the survey, the Market Tightness Index rose from 41 to 56. Almost half (47 percent) of respondents reported unchanged conditions, and approximately one-third (32 percent) saw conditions as tighter than three months ago, in contrast with January’s survey, where almost one-third saw conditions as looser than three months ago. This is the first time the index has indicated overall improving conditions since July 2013.

The Sales Volume Index also rose from 41 to 52, the first time the index has been above 50 in a year. Almost half (43 percent) of respondents felt that sales volumes were unchanged from three months earlier, while a slightly higher share of responses noted higher sales (28 percent) than lower sales (23 percent).

“The improvement in sales volume comes as a bit of a surprise, both because volume generally falls off seasonally at the beginning of the calendar year and because there has been a dearth of product available. It will be interesting to see whether the results are further borne out in transactions data over the next few months,” said Obrinsky.

The Equity Financing Index rose slightly from 50 to 53. The majority of respondents (58 percent) continue to report that the availability of equity financing is unchanged from three months ago—a similar result to the past two quarterly surveys. One-fifth of respondents (20 percent) believed that financing was more available than three months prior, slightly higher than the amount of respondents (13 percent) that believed financing was less available.

The Debt Financing Index had the largest increase, rising to 63 from 42. Almost one-third (30 percent) believed that conditions are better, and only 3 percent felt that conditions were worse, a marked decline from January’s Quarterly Survey, when 30 percent felt conditions were worse.

A strong majority of respondents (80 percent) reported that land costs for new development have increased from last year. 34 percent reported increases of 10 percent or more and 46 percent noted increases of less than 10 percent. By contrast, just under one-fifth (19 percent) reported land costs unchanged from the previous year. (Note: these percentages exclude those who responded “Don’t know/not applicable.”)

The April 2014 Quarterly Survey of Apartment Market Conditions was conducted April 14-April 21, 2014; 133 CEOs and other senior executives of apartment-related firms nationwide responded.

Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is the leadership of the trillion-dollar apartment industry. For more information, contact NMHC at 202/974-2300, e-mail the Council at info@nmhc.org, or visit NMHC’s web site at www.nmhc.org.

A majority of Americans have begun taking precautions against the spread of bed bugs, which is good news for landlords trying to keep their rental properties clear of this menace.

That finding came from the 2014 “Bed Bug Awareness Week” survey conducted online in the U.S. by Harris Poll on behalf of the National Pest Management Association.

The survey found that nearly three in five (59 percent) Americans take some kind of precaution against bed bugs. NPMA released the report to help spread awareness about bed bugs and what people can do to curb infestations.

Bed bugs are known for their hitchhiking capabilities and are easily transported, making them an elusive pest and formidable opponent. In fact, bed bugs are considered one of the most difficult pests to control by professionals, due in part to their quick breeding capabilities and tendency to hide in small, dark crevices, often unseen by the human eye, such as behind headboards and baseboards, as well as inside electrical outlets and box springs. Depending on the scope of an infestation, it can take several treatments to fully eradicate the bugs.

Industry experts agree that public awareness is key in quelling infestations. “Education and vigilance are the first steps to help stop the spread of bed bugs, and we’re pleased and encouraged to hear that so many Americans are becoming more aware of their surroundings and taking measures to protect against this troublesome pest,” said Missy Henriksen, vice president of public affairs for NPMA.

Below are highlights from the survey:

59 percent of all U.S. adults take some kind of precaution against bed bug infestations.
34 percent inspect sheets, mattress pads and mattresses for signs of bed bugs upon checking into a hotel
33 percent wash all clothes in hot water after returning home from a vacation
29 percent avoid visiting homes or locations that have had a bed bug infestation
28 percent remain vigilant of where they place their belongings when in public places
12 percent vacuum suitcases after returning home from vacation
8 percent keep their suitcases in a plastic trash bag or protective cover for the duration of their hotel stays

If they suspected a bed bug infestation in their home, 95 percent of U.S. adults would do something to alleviate the problem:
69 percent would wash their sheets and bedding in hot water
64 percent would clean and vacuum their bedrooms
62 percent would contact a pest professional/exterminator
40 percent would buy an over-the-counter bed bug removal product
30 percent would throw away their mattress and purchase a new one
More information, including bed bug biology, prevention tips and best practices can be found on AllThingsBedBugs.org.

The National Pest Management Association, a non-profit organization with more than 7,000 members, was established in 1933 to support the pest management industry’s commitment to the protection of public health, food and property from common household pests.

A Denver landlord has agreed to build a $10,000 play area for his tenants’ children in order to settle a discrimination claim.

HUD, which prosecuted the case, announced that the owners and managers of the metro-area apartment complex have agreed to construct an accessible playground on the property in order to resolve the allegations that they discriminated against families when they refused to allow children to play outside.

The complaint alleged that the apartment complex unfairly restricted the activities of children. A notice published in the complex’s monthly newsletter set the following rule:

“All children must be supervised by an adult at all times while playing outside. No sports activities, skateboarding, roller-blading, or general extracurricular activities are to take place in our community. If we see anyone violating any of the above activities or see any unsupervised children they will be sent home immediately.”

The Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, and disability. This includes setting restrictive rules on families with children.

“A requirement of constant parental supervision of all minors, and even teenagers, is oppressive, unnecessary, and unfairly burdensome on families with children” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “The Fair Housing Act protects the rights of families with children to enjoy the same housing amenities that others do.”

Under the terms of the agreement, property managers will design and build the play area, which will be accessible to persons with disabilities, within six months; all employees will undergo fair housing training within a year; and the company will amend its policies to comply with the Fair Housing Act regarding familial status and distribute the new rules to employees and residents.

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.

We all work hard at our J.O.B., don’t we? We work hard each day and hope to retire when we’re 65, that’s the American dream, right?

Many of us are looking for something better, maybe a scenario where we can retire earlier or perhaps enter a state of semi-retirement. The answer: investing in apartment buildings.

Imagine working really hard to find a good building at a fair price, putting the financing together, and hiring a property manager to run the whole thing. Was that a lot of work? Of course. But don’t you work hard anyway? Here’s the difference….

Apartment Ownership – What’s It Really Like?

Imagine the day you close on the building and your property manager takes over. Ask most apartment building owners, and they will say they spend anywhere between 2 and 5 hours per week on their building if it’s managed by a professional management company.

What have you done? You went from a job that took 40-50 hours of your time each week to one that takes a fraction of that. And you replaced part or all of the income of your job with that from the apartment building.

You’re working less while maintaining your income.

What would this mean to you? Maybe you could spend more time with your family. Maybe you want to travel more. Pursue a hobby. Give back. Or maybe do more deals.

How is something like this possible with apartment buildings? The answer is in how apartment buildings are valued.

How Do you Make Money On Apartment Investments?

The value of an apartment building is driven by its net operating income, the amount of income left after all expenses are paid. The more money the building spits out after all expenses, the more it’s worth.

In many parts of the country, a building is worth 10 times its net operating income. This “10 times multiplier” is referred to as the “capitalization” or “cap rate” for short. Don’t worry about this for now – it’s not important to the point I’m trying to make. Let’s just use a cap rate of 10 for our discussion.

Let’s say a building has a net operating income of $100,000, which would make it worth $1M. If you could somehow make the building generate $10,000 more each year, maybe by increasing rents or decreasing expenses, you would have generated $100,000 in value (a cap rate of 10 times the additional income of $10,000 is an additional $100,000 in value).

Let’s look at a more specific example, so that you can start visualizing how this “math” could work for you in real life.

Assume you bought a 10-unit building for $540,000, and you had to put 30% down. The building was bought at a “10-cap” based on our formula we’ve used so far. Which means its net operating income (or NOI) is $54,000 per year, times our cap rate of 10 is $540,000. The income per unit is $1,000, and the expenses are 55% of the income. The building is in great shape and has been managed by the owner himself.

So far there is nothing special about this deal.

However, suppose you found out that the average market rent in the area is actually a $200 higher per month. Suppose further that you meet a property manager who manages two similar buildings in the area, and he tells you that his expenses are only 45% of income.

Let’s say it takes us 3 years to get the building to where it should be, i.e. with each unit bringing in $1,200 per month and lowering our expenses to 45% of income. Here’s how this would impact our financials:

By making small improvements each year, we have added $25,000 to our Net Operating Income. What is our value now?

Our new NOI is $79,000, so our value now is about $790,000 ! That is an increase of $250,000 in three years! Isn’t that incredible?

But that’s not all.

You also had between $2,600 and $4,700 in monthly income from this building over those three years.

That’s still not all. You (em, I mean your tenants), paid down $21,500 of your mortgage balance during that time, too.

Here’s what you get if you add everything together:

Your down payment was $160,000, and your total profit if you sold this building in 3 years is $284,000. This means you nearly doubled your investment!

In the meantime you enjoyed an average of $3,500 per month in cash flow.

Maybe you need more than that each month to quit your job. No problem. Buy a bigger building. Or get a second or third one. Three of these buildings will give you $10,000 per month in income and almost a $1M of profit in 3-5 years.

Retirement Possible In 5 Years After Investing In Aparments?

Would it be a lot of work? Absolutely. Do you work pretty hard right now? Probably.

Imagine working just as hard for the next 5 years and being able to retire. Imagine. 5 years.

And then you can do whatever you want. Keep working. Keep finding new deals (why stop?). Travel. Family. Give back. Whatever.

You don’t have all the answers, and you probably feel overwhelmed. That’s to be expected. The point I’m trying to make is, make sure that whatever you’re working hard at gets you to where you want to go.

I always say, “where there’s a will, there’s a way. And where there isn’t a will, there is NO way”. So ask yourself first, how badly do you want it? If you want it badly enough, you will choose to commit to the journey.

Use REIClub.com as a resource to get started – there are tons of articles, blog posts, and videos! I’ll try to do my part to write articles (and maybe publish a few videos) on the subject of investing in apartment buildings with a particular focus on raising money from private individuals (called “syndication”).

For me, and many others, apartment buildings are the single best way to retire early. It might be a good wall to consider climbing. Why not get started today!

Michael Blank’s passion is being an entrepreneur and helping others become (better) entrepreneurs. His focus in real estate investing is buying apartment buildings by raising money from private individuals.

Michael has been investing in residential and multifamily real estate since 2005 and began syndicating deals in 2010. He is the author of the Syndicated Deal Analyzer and the free eBook “The Secret to Raising Money to Buy Your First Apartment Building”.

www.TheMichaelBlank.com

Seasoned landlords know that all tenants are different.

Some like to settle into rentals for years and often stay in the same neighborhood even after they move. Other tenants might prefer short-term rentals and the flexibility it can provide.

Depending on the type of renters you are trying to attract, furnished units can either help — or hurt — your investment.

A month-to-month lease with a furnished apartment is often very attractive to the right tenant — someone who likes to move often and doesn’t like having to haul furniture from rental to rental. A furnished room is very convenient to a renter who travels light or doesn’t have a lot of extra money to spend. They might be sleeping on an air mattress in an empty studio and would be quite happy to upgrade to a dwelling that has, say, a couch or bed. If nothing else, furnishing rentals also can keep some tenants from dragging those dumpster or thrift store couches that may contain roaches or bed bugs into your clean, unfurnished apartment.

Don’t assume that renters seeking furnished are all the drifter type; some renters may own a home elsewhere and are looking for something convenient for work or an extended vacation, and are perfectly acceptable tenants. These tenants may even pay a little more, especially for summer rentals. But chances are they are uncommitted for the long-term.

An apartment with basic appliances is a good draw, but many tenants are going to be dubious about moving into a furnished rental. Most will already have a full set of furniture, and won’t want to get rid of it or pay to rent a storage unit in addition to the lease with you. Many renters shy away from ads for furnished out of fear that furnished rentals will cost more, or require a higher damage deposit to cover the cost of the furnishings.

It’s true that if a tenant damages or stains a piece of furniture, it will look dirty and unattractive to the next tenant. Once you go down that path, you might find yourself having to constantly re-furnish the dwelling as often as you paint the walls. You can’t assume the risk that the previous damage deposit will cover all your costs. Furthermore, tenants are often picky and may not agree with your decorating tastes.

One look at the bland sturdy neutral furnishings may send them running to another rental. Perhaps the idea of a slightly used mattress makes them squeamish.

Your decision to go furnished or not will greatly impact the type of tenants you attract.

If you prefer a higher priced, short-term lease, than furnished may be the way to go. If you want long-term nesters then an empty, clean, well-maintained dwelling should suffice.

In the end the decision should be based on what is the most profitable for you.

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.

Extending your property management circles to entice remote property owners can be fruitful when approached correctly. Remember, property owners are looking for someone they can trust to oversee their vested interests as well as help them improve the rental value of their rental properties regardless of locale. Property owners that live elsewhere are looking for someone they can trust to have their backs even though they aren’t nearby to oversee your every move.

When approaching these potential clients for business, keep in mind that less-than-stellar management companies may have disappointed them in the past. Show them that you are that special management company or supervisor that surpasses these challenges by actively seeking out their business and advertising beyond just local boundaries. These property management tips will help you reach possible owners outside your local market.

Print Medium Speaks Volumes

Don’t hesitate to promote your business with a banner, billboard, or print ad that declares, “I’m a property manager looking out for your interests, regardless of where you live!” Whether you are an online promoter, a print ad advocate or a supporter of both, utilize what the means you have available. If you live in a metropolitan area with mass transportation, take advantage of print ads, sign up for taxicab promotions, and those with larger budgets can strive for buses and mass transit ad space. Others can can look for low-cost print space in local registries and free publications.

Utilize Professional Marketing and Social Media

Facebook, Twitter, Pinterest and other social media sites are all attention grabbers for those who stay apprised of current events in the neighborhood and the community. Use your web presence to establish your authority on local events, and don’t hesitate to hire professionals or utilize an online management service to keep this goal on track. Take time to read and respond to online reviews of your property, and if those things have gotten out of control, consider hiring a reputation management expert for assistance.

Professional Networking About Your Expectations

Yes, blogging and sharing what you expect from tenants can attract new property management clients. If you expect superior behavior from your residents, then what would a property owner expect from you? Expecting the same isn’t asking for too much, so utilize your professional network to promote these successes and your demand for tenant excellence.

A Brief Summary of Tips for Landing Remote Property Management Clients

As you’re trying to gain notice from new clients from a distance, keep these tips in mind.

• Offer the same level of service you give to local property owners to remote clients.
• Agree to a risk-free trial term.
• Provide regular updates and occupancy stats to owners.
• Be prepared to DWIT – Do Whatever it Takes

From newbies to old-school pros, these tips for expanding in the property management scene beyond your local area can help take your business to the next level of success.

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.