Handle Property Maintenance Calls Stress-Free

Written by Landlord Property Management Magazine on . Posted in Blog

A sure way to keep your best tenants happy is to respond to their maintenance requests in a timely manner. This involves responding to them right away and selecting your maintenance vendors carefully so that they get the best service possible. Regardless of whether it’s a vital necessity or just a small leak, you should always provide a clear plan for a resolution as quickly as possible. There are a few simple things you can do that will prevent your tenants from becoming disgruntled.

Here are three tips for handling maintenance requests smoothly:

  1. Acknowledge Receipt: Be sure to let residents know that their request has been received, even if you don’t have a solution yet. Just knowing that you will start looking for a solution will help your residents feel at ease. If you are managing several properties, you may want to use a property management software with a built in maintenance monitor, such as ManageZoom. Tenants can create an account on ManageZoom to send you a detailed request with pictures and description. ManageZoom will alert you when you get a request and you can set reminders so that you don’t forget about the request.
  1. Choose Your Vendors Carefully: You want to make sure that the repair team that you hire to maintain your properties are professional and timely. The team you use is a reflection of you as a property manager. We suggest running a background check or using a company that checks their employees, to keep your property and tenants safe. Once you’ve vetted a vendor, be sure to keep their information handy for future fixes. ManageZoom’s property management software makes this much easier by giving you the option to save vendor information in your account. When a tenant sends in a request you can create a ticket and assign a vendor to it. You’ll know what vendor is servicing which property and you can track how much those services will cost.
  1. Provide a Timeline: Nothing is more frustrating for a tenant than ambiguity. Granted, you may not have all the answers and you are probably depending on the repairman to give you an accurate time estimate, but if that’s the case let your tenants know. When you do get a timeline communicate it right away and follow-up with the repairman to make sure the repair will be done on time.

A major cause of tenant dissatisfaction is related to maintenance difficulties. Maintenance will always be necessary, but how you handle it will help you keep good tenants around longer. Organizing multiple maintenance requests at once can be a challenge, but subscribing to ManageZoom’s property management software can keep you on track. Sign up here to try out the ultimate maintenance monitor for free for 30 days.

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Hail All Property Managers: What Today’s Renters Expect, Want & Need

Written by Landlord Property Management Magazine on . Posted in Blog

RENTERS_1

With spring almost upon us, the real estate market readies for a busy season as leases end and Americans enter back into the rental market. How can property managers ensure they’re competitive, filling vacancies and giving prospects what they want in the apartment search?

AppFolio conducted a survey to uncover what‘s top of mind for today’s renters and what trends modern property managers need to adopt to meet their expectations. As an industry with one of the slowest adoption rates of technology, renters are keen to the tech trend, and online convenience can make or break a signed lease. Property managers need to be thinking about the impact and opportunities of technology to fill vacancies and remain competitive.

All Things Digital, Please

With more and more consumers renting versus buying a home, the rental market has become increasingly crowded. So how can property managers adequately market their available listings? Time to get everything online, folks! Among current renters, nearly one-third (29 percent) say they found the rental listing for their current residence online (via a classified ad or an online service). This trumps traditional methods such as finding a rental listing via word of mouth (23 percent—still a relatively big influence) or through a realtor (nine percent).

This indicates the importance of a digital presence during the listing process and, with traditional word of mouth remaining prominent, the importance of satisfied residents. This is achieved through fast response and maintenance, good upkeep of the property and an overall quality of services so that tenants will refer others to vacant units—all of which today’s modern property manager can boost through technology.

Now let’s take it one step further. Today’s renters are not only finding rental listings online, but they’re also attracted to digital conveniences in deciding which rental to move into next. From paying rent to reporting a maintenance issue, renters want to be able to do apartment tasks from their phone, iPad or computer, whether on-the-go or sitting on the couch. The majority of tenants (46 percent) prefer to pay their rent digitally—through an app, website or automatic withdrawal. Mailing a check or dropping off cash is now old school; after all, this is the digital age. If your property management company can offer these types of digital services, you’ll have a higher chance of attracting more lessees.

Virtual Assets are Key

Nearly a quarter of renters eliminate a property from their search if photos or videos of the property are unavailable. Bad reviews (of the property itself or of the property manager) are also a deterrent, with 27 percent of respondents choosing this as the top reason for eliminating a property from their search.

Bottom line: make sure to highlight your property’s value online. Don’t be shy; be transparent and show off the space.

Millennials Expect—and Are Willing—to Pay More

Surprisingly, millennials are least sensitive to price as this demographic’s expectations have been modified by the current market. Of the total respondents that cite rent being more than they want to pay as the top reason for eliminating a property from the search, only 28 percent are age 18-34. Adults age 55-64 are most sensitive to price, with 45 percent selecting it as the top determining factor. Pay attention to this market property managers—since the rental market is going gray.

Top U.S. cities such as San Francisco, Boston, and NYC are known for making residents “rent poor.” It must be true, as 32 percent of respondents said half or more of their monthly income goes toward rent. This is another reason to satisfy your residents! If they’re going to spend a large portion on rent and have an abundance of apartments to choose from, things like property upkeep and offering digital conveniences will keep current tenants happy, increase the likelihood of re-signed leases and attract new tenants.

The findings highlighted above are critical for property managers everywhere, whether you’re city or small town, 10 units or 100.

AppFolio Rental Market Survey Methodology

Commissioned survey of U.S. consumers conducted in January 2016 via Google Consumer Surveys. The survey collected responses from a representative sample of 1,500 total consumers. AppFolio was the sole investor in the study and the survey population is made up of a mix of U.S.-based consumers aged 18 and older.

AppFolio Rental Market Survey Data Points:

  • How did you find your current residence rental listing?
    • Word of mouth (23.8%)
    • Classified ad (15.3%)
    • Online service (14.3%)
    • Realtor (9.3%)
    • Mobile App (3.4%)
  • Assume that rent is not an issue. Which of the following would cause you to eliminate a property from your search?
    • Property rent is more than I want to pay (31.5%)
    • Lack of photos or videos of the property (24%)
    • Quality of property’s amenities (18%)
    • Property itself has poor reviews online (13.9%)
    • Property manager has poor reviews online (12.6%)
  • Age Breakdown: people who picked property rent is more than I want to pay:
    • 18-24 (27.9%)
    • 25-34 (28%)
    • 35-44 (29.1%)
    • 45-54 (30.2%)
    • 55-64 (45.4%)
    • 65+ (42.8%)
  • Approximately what proportion of your monthly income goes towards rent?
    • Less than 1/4 of monthly income (19.7%)
    • 1/4 of monthly income (21.4%)
    • 1/3 of monthly income (25.7%)
    • 1/2 of monthly income (18.3%)
    • More than 1/2 of monthly income (14.9%)
  • Which of the following methods would you most prefer to use for paying rent each month?
    • Pay through an app or website (28.5%)
    • Deliver a check (21.6%)
    • Mail a check (18.1%)
    • Automatic withdrawal (17%)
    • Cash (14.8%)

The post Hail All Property Managers: What Today’s Renters Expect, Want & Need appeared first on The Official AppFolio Blog.vvv

The Delicate Art of Rent Increases

Written by Landlord Property Management Magazine on . Posted in Blog

rent increase_1Rents seem to only continue to go up. Nationally, the median asking rent increased 5.74 percent in the third quarter of 2015, compared with the same quarter a year earlier.

But while many landlords raise the rent whenever it seems right, this isn’t the best strategy. You shouldn’t increase the rent because you’ve had an expensive year, or a major roofing job. Instead, your rental rates should be dictated by one very simple factor: the rental market.

Simply put, your rental price will be determined by how much tenants are willing to pay. Use anything other than this criterion to set your rent, and you run the risk of losing them and experiencing higher vacancy rates.

Let’s look at how you can accurately assess the market to determine the sweet spot—the best price that you can get for your property — and how to go about tactfully breaking the news to your tenants.

Ensure Compliance With the Law

First things first: Make sure your proposed rent increase is in compliance with state and regional laws, and of course, in accordance with the terms of your lease.

Rent control areas, which include Washington, D.C., and cities in California, Maryland, New York, and New Jersey, have specific requirements regarding rent increases, including the frequency of the increases and the amount of notice that you must provide. For all other areas though, you’ll still have to provide sufficient notice. In most states, 30 days’ notice is generally required for month-to-month leases. For fixed-lease properties, you’ll want to let tenants know before the lease is up. Commercial properties are usually less regulated, but still require compliance with the original lease agreement.

Give Extra Notice

Sure, you’re required to give enough notice to be in compliance with the law — but why stop there? If you can, give tenants a 60-day notice instead of just 30 days. This will give the tenant more time to prepare for the increase, and allows them a chance to shop around. If your increase is in line with market rates, they’ll see that there’s no better deal to be had. So get those notices ready early. For longer leases, this means at least 60 days before the lease is up. Timing your notices so that the rent increase will take place immediately after the lease renewal date will allow you to start collecting the increased rent as soon as you can.

When informing tenants about rent increases, make sure you put everything in writing. Without a written agreement, a rent increase will be difficult to enforce.

Try to Raise It Every Year, or at Each Lease Renewal Period

If you have a month-to-month lease, you’ll want to increase the rent once per year. If you’re on a longer lease, wait until the lease runs out, unless your rental agreement specifically states that you will evaluate and raise the rent mid-lease. Even if the market only allows for a 1 to 2 percent increase, this is a better choice than waiting years in between rent increases, and then having to raise the rent substantially. This will help tenants to get used to rent going up, and you’ll find them less likely to complain over a $20 per month increase as opposed to a sudden $200 jump.

Calculate the Rent Increase

The amount by which you raise the rent should be competitive with local rental market rates, so do your research. Take a look at what other similar rentals in your area are going for. You could also multiply the consumer price index by your current rental rate. For example, the Bureau of Labor Statistics’ most recent release indicates that the index for shelter increased 3.2 percent in 2015. Suppose your current rent is $1,200 per month. You could multiply $1,200 by 3.2 percent (or 0.032) for an increase of $38.40 per month. While a 3 to 5 percent annual increase is standard, you may want to adjust this to fit your situation and the local rental market.

Determine Why You’re Raising the Rent

Your tenants will want to know, and you’ll need an answer. Be truthful and make a list of reasons that the rent needs to go up, such as increased utility costs (if you pay them), rising insurance costs, higher taxes, and the cost of inflation, if these things have all increased in the last year. Other reasons for a rent increase may include the rising cost of maintenance and repairs or renovations or upgrades planned for the property.

Keep Your Tenants Happy

Also consider your tenants’ situation. If you have an excellent tenant who looks after the property and pays rent on time, you may want to cut them some slack as an incentive to stay. One way to do this is to show them what the rent increase was going to be, but with this number crossed out and with a smaller percentage written in instead. Communication is key to keeping the air clear, so be in touch with your tenant and be willing to talk to them about the increase.

Another option would be to consider offering your tenants a compromise. Propose a rent increase, and be prepared to lower the percentage if they are willing to sign a longer lease.

While rent increases can be stressful, they don’t have to be. Ensuring that you raise the rent in line with market values and communicate all upcoming changes with your tenants will go a long way toward making the process as simple and straightforward as it can be.

Source: realtormag.realtor.org

The 9 Most Important Lessons I Learned About Money When I Became a Landlord

Written by Landlord Property Management Magazine on . Posted in Blog

Real estate financeWith 30 years under my toolbelt as a landlord, I’ve had my share of lessons learned — so I thought it was about time I put some of those learnings down on paper. Previously, I’ve written about key considerations when shopping for a rental property. Here, I focus on money lessons learned after closing the deal and actually managing the property.

The real estate properties that form the basis of my experiences are a two-family property my wife and I have owned and managed for 30 years, and a rental condo we managed for 20 years then sold. Now on to those lessons…

1. Learn to Be Handy

Owning rental properties is all about building “sweat equity.” The less you pay others to do maintenance and make repairs, the more you keep for yourself. But when you make the repairs, do buy items of higher quality that will last longer. Having to return over and over to make the same repair gets old quickly and winds up costing you more in the end.

2. Be Respectful and Responsible

Remember that both landlord and tenant have responsibilities. I try to put my best foot forward with a new tenant by making sure the unit is in excellent move-in condition, and by responding promptly when they reach out to me. More often than not, they return the favor by taking better care of the property. In other words, “What goes around comes around.”

3. Get a Good Lease (From a Lawyer)

Your lease is a legally binding contract. Make sure you read, understand, and agree to every word. Who is responsible for lawn care? Who shovels the snow? Does it require tenants to be responsible for small repairs (say, under $20) and basic maintenance such as replacement of light bulbs? How much notice do tenants need to give you that they are leaving? (I suggest at least one month.)

Consider the lease a flexible document that can be improved over time to address lessons learned. For example, we’ve found a month-to-month lease works better for us than an annual term, because it provides more flexibility for tenant changes.

4. No Pets! No Exceptions

It took a double-whammy for us to learn this lesson. The downstairs unit of our two-family has very nice Andersen casement windows with stained wooden sills. The upstairs has wall-to-wall carpeting to cushion sounds between the floors. Our very first choice of tenants to occupy the downstairs unit had two cats. Even today, if I close my eyes, I can clearly see images of the deep gouges in those (previously) beautiful sills, and the rips in the Anderson screens.

Upstairs, the culprit was a dog. He used the carpeting as an opportunity to mark his territory — and he did a thorough job, extending into the hardwood flooring underneath. After spending thousands of dollars to repair the windows, replace the carpets, and sand and refinish the wood flooring, it has now become very easy to answer the question we’ve since been asked many times: “Do you allow pets?” Without hesitation, the answer is always the same: “NO!” I take pride in even sticking to my guns when a recent prospect offered to add $300 per month to the rent if we allowed him to keep a pet piglet.

5. Check Tenant References — And Their Car

Banks and other lenders often use the “5 C’s of Credit” to determine whether or not a borrower qualifies for a loan. One of those “C’s” is Character. You want to rent to someone of strong character, who is responsible and honest. So ask for and check both employer and personal references. Do Google, Facebook, and LinkedIn searches while you’re at it. Look for other clues, as well. For example, when meeting a prospective tenant, I always look at their car to see how clean they keep it on the outside, and how cluttered it is on the inside. Unlike a banker, you’re not just lending money; you’re lending someone your house.

6. Check Tenant Finances: Trust but Verify!

Another of the “5 C’s” is “Capacity.” Capacity answers the question, “Do they have enough income to afford the rent?” As a general rule of thumb, your rent plus utilities should be no more than 30% of your gross monthly income. Ask for their most recent pay stub, and call their employer to verify their employment. It’s human nature to want to trust other people, but in this case you need to back it up by verifying.

7. Wait for the Right Tenant

This one falls under the “Pay me now or pay me later” category. I do admit, it’s easy to yield to the taunts of the devil on one shoulder (“Live for the moment and take the money now!”) rather than heeding advice from the angel on the other shoulder (“Wait for a better candidate!”). Trust me, it’s much more costly — not just financially, but also in time and aggravation — to remove a bad tenant than to forego one or two months’ rent in order to find a good one. Do yourself a favor and take the advice of your better angels.

8. Get an Umbrella Insurance Policy

Being a landlord elevates your risk of being sued. It only takes one lawsuit — perhaps involving a tenant falling down stairs or slipping on driveway ice — and you could face hundreds of thousands of dollars in damages. So take out a general liability, or umbrella, insurance policy. Don’t risk getting wiped out. Paying $50 per month for umbrella insurance is a small price in exchange for sleeping soundly at night.

9. Take an Honest Look in the Mirror

Do you have the people skills to deal constructively with tenants? Are you willing to be on call 24/7 to respond to complaints big and small, or to drop everything for the repair of a furnace, toilet, or hot water heater? At times these things are a true test of patience and perseverance.

Self-awareness is key. If you have a spouse or partner, and if the demands of property management begin to weigh more and more heavily on either or both or you over time, it could drive a wedge in your relationship. No amount of rental income is worth that price.

So, taken as a whole, has our experience been worth the effort? Yes. The two-family has worked out better, and we still have it. It generates a regular monthly stream of positive cash flow (over $1,000 per month after all expenses). Granted, it requires time and attention (isn’t everything in life a tradeoff?), but in return we’ve received the equivalent of a modest monthly pension payment since our early 40s. Not many other investments can do that.

Do you own rental property? Any of these lessons sound familiar? And if you rent, how’s it look from the other side?

Source: wisebread.com

360 Sq. Ft. Might be the Next Big Thing for Multifamily Housing

Written by Landlord Property Management Magazine on . Posted in Blog

micro apartment

When it comes to architecture trends, micro-apartments are all the rage. It’s hard not to be impressed when you see a 420-square-foot apartment transform into 6 functional rooms, accommodate 12 person dinner parties, and house 2 overnight guests. The question is, will it affect the multi-family industry? With New York’s city council approving the development of their first micro-apartments (against the 400-square-foot apartment minimum) in an attempt to experiment with affordable housing options, it’s safe to say it soon will be. That being said, no one will start renting out micro-apartments until some necessary changes are made.

Generally, micro-apartments are tiny one-room living spaces that are multi-purpose and self-contained. They’re like the Russian nesting doll of apartments; they’re compact but the space is utilized completely. Due to their specific design, particular furniture is needed. A renter can’t just go out and get any sofa, they have to buy a sofa that doubles as a bed, has unique storage options and has specific dimensions. While New York’s new 260 to 360-square-foot micro-apartments might leave you wondering how any renter would be attracted to the lack of space and weird furniture requirements (see for yourself), the keyword is: affordable housing.

With so little square footage, single renters will be able to afford living on their own (without packing in three or four roommates into one apartment) and landlords and developers will be able to maximize profits by putting in more rental units. At $950 per month for 55 rental units, low and medium-income applicants have been flocking to New York’s new micro-units. More than 60,000 applications have already been received. In response, the de Blasio administration is proposing to end a square-footage limit on apartments, opening the door for more affordable housing options with micro-apartments. Alongside New York, cities such as San Francisco and Boston have begun looking into micro-apartments as well. On February 1, 2015, the City of Fresno, CA even passed new zoning codes for tiny houses (the micro-apartment version of a house on wheels).

While many, including UCLA, are betting on micro-homes and apartments to combat the affordable housing crisis, critics point out the design isn’t nearly as full-proof as it seems. Since micro-units are made for single renters, questions have been raised about what will happen when a single renter wants a family and an affordable micro-unit. With designs like the Kasita, a micro-home inspired by shipping crates, many are skeptical the micro-housing won’t make renters feel isolated and thus create a high turnover rate.

In response to this criticism, designers have been experimenting with creating expandable micro-units and communal spaces. Studio P10 used Project Salva46 to tackle these challenges, creating a space that could easily house two strangers, or two different couples, with its independent micro-studios. More focused on abolishing the isolation criticism, SsD Architecture designed the Songpa micro-housing to have semi-communal spaces not just on the first floor, but in between units. They hope this effect will make their communal micro-housing make it feel more like its own neighborhood.

The idea of a cheaper and communal housing option isn’t unknown to affordable housing. In March, 2015, Boston proposed creating dorm-like villages, suggesting they build 10,000 communal units to satisfy the housing demand in the area. Although the proposed units weren’t specifically micro-units, the idea was that the communality would attract the growing number of single, millennial renters. Unsurprisingly, a micro-unit building has already been built in Syracuse, NY and is taking advantage of this idea by catering to millennial renters at a low $700 to $900 per month rent. However, unlike the New York micro-apartments and the proposed Boston dorms, CoWorks takes the communal living a step further by trying to create a specific sense of community. While CoWorks wants to foster a professional community aimed at making work connections, other affordable housing options have been targeting a more a creative community. The La Esquina micro-apartments in San Diego are an affordable housing option for professors, grad students and alumni and the co-living situation has been designed for creative collaboration between teachers and grad students.

While creating a cost-efficient solution to solve the growing need for affordable housing is a top priority, creating larger communal spaces and options for growing families should be considered. Although the necessity in creating a community in affordable housing that targets specific segments and community types is still debatable, it’s undeniable that it could be used in specific housing types like aged 65+ renters and possibly teacher affordable housing. If micro-apartments do become the affordable housing solution for big cities like New York, tenant screening will be even more important for these tight-knit and communal complexes. Before even implementing micro-apartments and micro-housing, considering all the options (design included) is apparent.

Becky Headshot_Pro

About the Author

Becky Bower is a writer for ResidentScreeningBlog.com and the Communications Executive at Contemporary Information Corporation (C.I.C), a nationwide tenant & employment screening company.  She has also spent several years in compliance and auditing.  Becky holds a degree in English with a focus in creative writing from CSU Channel Islands and is a published writer.

About CIC

Celebrating 30 years of background screening excellence, CIC is a leading provider of tenant and employment screening solutions for the multifamily housing industry. CIC offers full service background checks, credit reports from all three major bureaus, the nation’s most comprehensive eviction records database, complete nationwide criminal records search, full verification services and other specialized screening products. For more information, please visit www.CICReports.com.

Renters Buying Again as U.S. Starter-Home Financing Gets Cheaper

Written by Landlord Property Management Magazine on . Posted in Blog

first time home buyer

Erin Maude returned to homeownership in December, three years after losing her condo in the U.S. foreclosure crisis. This time, she’s confident she’ll keep the house she bought with the help of a 14 percent raise and a Federal Housing Administration loan, which required little money down.

“I’m very lucky,” said Maude, 38, an airline marketing manager. “Without FHA, I don’t know how long it would have been before I could have saved for a bigger down payment.”

Renters gaining confidence about the economy — those buying their first home, and people like Maude who are looking for a second chance — are jumping into the property market. Many are compensating for soaring starter-home prices with FHA loans that became cheaper after insurance premiums were cut last year. And they’re giving a lift to the U.S. homeownership rate, which rose in the second half of 2015 after steadily declining for almost two years.

An increase in apartment rents — which rose 4.6 percent nationally in the fourth quarter from a year earlier, according to Reis Inc. — also is helping drive young people to buy instead of lease. They’re entering a market with few affordable houses available. The U.S. inventory of starter homes — the bottom third of the market — is down 39 percent from three years ago, according to data from brokerage Redfin.

FHA-insured mortgages, used mostly by first-time buyers, nonetheless accounted for 22 percent of all loan originations in December, up from 17 percent a year earlier, according to data compiled by Ellie Mae Inc.

Higher Homeownership

“The FHA insurance-premium cut pulled forward the day that first-time home buyers came back in a big way and turned around the homeownership rate,” Mark Zandi, chief economist for Moody’s Analytics Inc., said in a phone interview. The rate rose to 63.8 percent in the fourth quarter from 63.7 percent in the previous three months, the Census Bureau reported last week.

For the $2,400 monthly mortgage payment on her Kirkland, Washington, home, Maude gets twice as much space and is closer to the water than she was in the townhouse she rented for only $400 less — and it has a fenced-in backyard where her dog, Percy, can run. Maude, a marketing manager for Delta Air Lines Inc., put 4 percent down for her house, more than the 3.5 percent required by the FHA but less than the 20 percent typical for mortgages.

Maude lost her job and then her Atlanta condo three years ago in a short sale, a transaction in which lenders agree to accept less than what’s owed on the property. By November of last year, she was eligible to borrow again from the FHA.

She bought the Kirkland house in December, making a full-price offer of $422,000 the day after it went on the market. She knew, after six months of searching, that the supply of homes for sale was too tight to delay.

Competitive Market

“There are now only two to four houses within 5 miles even on the market in the price range I was looking at,” Maude said in an interview.

Other Americans wanting to become homeowners haven’t been as lucky. Tight credit standards prevented 5.2 million mortgages from being made from 2009 to 2014, according to the Housing Finance Policy Center at the Urban Institute in Washington. That left fewer families able to buy at an opportune time in the market cycle and build the wealth that often comes with homeownership, the institute said in a report last month.

The FHA reduced annual mortgage-insurance premiums in January 2015 to make homebuying more affordable. The Department of Housing and Urban Development estimates the decrease in costs will save borrowers an average of $900 a year.

New Buyers

As a result of the mortgage-insurance decrease, FHA purchase originations increased more than 30,000 a month last year from 2014, said Sam Khater, deputy chief economist for CoreLogic Inc. That means that more than 250,000 first-time homebuyers were added to the market.

The increase in FHA loans brings added risk that would become apparent the next time the U.S. economy tumbles, according to Stephen Oliner, a resident scholar at the American Enterprise Institute in Washington who worked at the Federal Reserve Board of Governors in Washington for more than 25 years. With prices rising, borrowers have been gravitating toward government-guaranteed loans, mainly from the FHA, that require only small down payments and allow high monthly payments relative to a borrower’s income, Oliner said.

“Since the federal government is guaranteeing these loans, there isn’t much market discipline to prevent risky loans from being made,” Oliner said.

‘Pristine’ Loans

A look at loans of all types originated in the past six years shows they are “pristine” and have the lowest default rates in almost two decades, Khater said. FHA loans that are at least 90 days delinquent were up only slightly, with an increase of just 0.05 percent in fiscal 2015 from a year earlier, he said.

Rob Nunziata, chief executive officer of FBC Mortgage LLC in Orlando, Florida, said lenders are feeling more confident as the real estate market recovers. In the past year, his firm has dropped its minimum credit score for a FHA mortgage to 580 from 640.

“Credit standards were a little too tight — now they’re easing toward a more acceptable level,” Nunziata said. “Defaults have decreased, the economy is doing better and the housing market has stabilized.”

Source: bloomberg.com

Mobile Marketing: Touring Your Property on a Smartphone

Written by Landlord Property Management Magazine on . Posted in Blog

Social media on smartphoneThere are plenty of great ways to market a property and get potential renters interested, but the problem is that your competitors use those same ways. An even bigger challenge is that the current pool of young renters rely on their smartphones for pretty much everything, and prefer things like texting and Facebook wall posting to phone calls and face-to-face interaction. With technology’s prevalence today, one of the best ways to reach out to potential renters and stir up some interest in your available properties is through mobile marketing.

Why Spend Your Time on Mobile Marketing?

People searching for a new apartment usually have to conduct their research in between work or school or coffee dates. Apartment hunting is often viewed as an inconvenience, so renters may not have the time to spend several days touring properties; they may want to focus on eliminating the majority of properties that won’t work for them before they see them in person. Time is precious, and by providing your property information in a way that is accessible anytime, prospects will be able to check it out when it’s convenient for them. That means they can take a look while they’re at home, on the bus, on a lunch break, in line at the grocery store, or anywhere else where they have a spare minute.

Here are some recent mobile trend stats that prove mobile is one of the biggest marketing opportunities for your business:

  • 4 out of 5 millennials use smartphones
  • 82% of current or prospective renters view property floor plans on mobile devices
  • 40% of current or prospective mobile renters use video to make a decision

Potential renters who see properties they like online can then get in touch directly with you from your mobile-optimized website, and they’ll spend a lot less time driving around looking at places that might not be right for them. Not only will that help them budget their time, but it may persuade them to rent from you because your company offers convenience and utilizes modern technology. It can make a significant difference in your interaction with potential tenants, particularly millennial renters.

Social Media is another aspect of mobile marketing that might have a big impact if done correctly. With so many people using social media each day, and accessing their Facebook and Twitter accounts from their mobile devices, it would serve you well to be visible on these channels. Check out 8 Ways to Drive Rentals with Social Media for more social media marketing ideas.

Mobile Video Property Tours

While offering pictures of the property and relevant descriptions of amenities and unit pricing is important, another valuable way to get into mobile marketing in a big way is through video tours. When you provide a video, anyone who is interested in the property can get a “walk thru” right there on their phone. They can see the layout, and will be able to get an idea of the size of the rooms, the finishes, and more. While pictures can show prospective renters what the property basically looks like, a video can help them put it all together in their mind, so they can make an informed decision about viewing the property. They may even want to fill out an application right then, so having online applications optimized for mobile devices is the next important step. For more on video tours, check out this post: Lights! Camera! Action! Getting the Most From Virtual Property Tours.


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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.

Find More Renters – Marketing Beyond Craigslist

Written by Landlord Property Management Magazine on . Posted in Blog

AR-121109999There’s a general perception that finding residents is easy because renters are relatively abundant and often found within the first few days of posting an ad. But with more properties being built in some of the major cities and new management companies popping up every day, it can be hard to find renters for your properties among the competition.

Modern renters are venturing away from Craigslist to find their next home, which means you need to venture away, too. There are marketing methods, tips, and tricks that you can utilize in parallel with what you’re already doing that could bring in more renters for your rental properties. And ultimately, you’ll find better-quality residents which will lead to lower vacancy rates, happier owners, and more money in your pocket as the property manager. (Keep in mind, high-quality is relative to your specific properties, but in general, you want someone who will resign that lease year after year.)

If you’re set on Craigslist advertising, here’s a trick.

Many property managers will only place a single ad for their available rentals on Craigslist. The challenge with Craigslist is that you can easily become lost in the sea of competing rentals (and the same can be true for property listing websites). A best practice is to re-post your advertisement every three days to ensure that it’s fresh and gets new eyeballs on it. In many large cities, your ad can be on page 3 after only a few hours. Be sure that you don’t post a similar ad to the same category any more than every 3 days with a single Craigslist account. This will lead to you getting flagged by Craigslist and if you do this a couple times, they may delete your account. (I have tested this theory.)

Find more renters on property listing sites.

While Craigslist is a popular website for prospective renters to find your listings, you may be missing out on potential high-quality renters that can be found elsewhere. So where could we look for residents without spending a lot of extra time?

Beyond Craigslist, there is a plethora of online marketing platforms that are great for advertising your rentals and attracting higher-quality renters. Some people look for rentals on other sites. Many times, people that are moving from one area of the country to your area will not look to Craigslist as their first resource. Many times these people will look to sites like Rent.com, or Hotpads.com, etc. [Read: 5 Rental Sites for Listing Your Properties in 2016]

Many property managers don’t have time to place an advertisement on each online rental website. That is where online syndication companies can take your standard listing and distribute them among a number of websites for you. This is a great time-saving opportunity and allows you to cast a large net to attract a wide range of quality and quantity of residents, with minimal effort.

Another avenue to consider is social media. Sites like Facebook and Twitter get millions of visits a day from potential renters, so why not post your vacancies on these channels? You’re building brand awareness and engaging with potential and current customers at the same time as you are filling your properties.

Technology can streamline the vacancy listing process for you.

There are a number of online syndication companies that provide the type of service mentioned above. That is one of the great things about the AppFolio marketing platform. If you’re an AppFolio user, with the push of a button, 100% of your available rentals are distributed to all of the largest online rental marketing platforms that are available. This is an amazing time-saver and allows you to focus on more important items, while still allowing for greater marketing visibility.


appfolio 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.

How to Build an Effective Custom RFP

Written by Landlord Property Management Magazine on . Posted in Blog

RFPKnowing what you want to achieve in a project is important of course, but ensuring that your vendors and contractors know your expected outcomes and goals is, even more, important. A well-thought out, well-written RFP (Request for Proposal) prior to beginning your project will not only accomplish this for you, but it can also protect your interests should the project begin to experience problems.

It’s difficult to overestimate the importance of an RFP when you start a new project, for it becomes the “baseline” of understanding between you and your contractors or vendors. The RFP outlines your needs and requirements, making them clear to all parties involved. As a written document of your expectations and your vendor’s responsibilities, it becomes a historical record to which both sides can refer as needed.

The importance and value of your RFP

As all property managers know, a problem can develop at any point in any project, and may include any aspect of the project: from scheduling to deliverables. If a problem becomes serious and begins to affect the project itself, the baseline documentation, your RFP, will most likely be the tool you use to determine where the problem occurred, who is responsible, and what must be done to resolve it.

While it’s difficult to outline every piece of information required to create a comprehensive RFP within the limited space of a blog post, it is important that you understand the basics of how to build and distribute a custom RFP. Much of this information is borrowed from the Warehousing Education and Research Council website, an association for logistics professional. If you would like a more detailed explanation of the components of a well-written RFP, and perhaps a useable template as well, click here

Here is a brief description for each and any of the common sections of your RFP:

1. Statement of Purpose
Describe the extent of products and services your organization is looking for, as well as, the overall objectives of the contract.

2. Background Information
Present a brief overview of your organization and its operations, using statistics, customer demographics, and psycho-graphics. State your strengths and weaknesses honestly. Don’t forget to include comprehensive information on the people who will handle future correspondence.

3. Scope of Work
Enumerate the specific duties to be performed by the provider and the expected outcomes. Include a detailed listing of responsibilities, particularly when sub-contractors are involved.

4. Outcome and Performance Standards
Specify the outcome targets, minimal performance standards expected of the contractor, and methods for monitoring performance and process for implementing corrective actions.

5. Deliverables
Provide a list of all products, reports, and plans that will be delivered to your organization and propose a delivery schedule.

6. Term of Contract
Specify length, start date and end date of the contract, and the options for renewal.

7. Payments, Incentives, and Penalties
List all the terms of payment for adequate performance. Highlight the basis for incentives for superior performance and penalties for inadequate performance or lack of compliance.

8. Contractual Terms and Conditions
Attach standard contracting forms, certifications, and assurances. You may include requirements specific to this particular contract.

9. Requirements for Proposal Preparation
A consistent structure regarding content, information, and documents types simplifies things for the people evaluating the proposals. Therefore, you should request a particular structure for the project and provide an exhaustive list of documents you want to receive.

10. Evaluation and Award Process
Lay down the procedures and criteria used for evaluating proposals and for making the final contract award.

11. Process Schedule
Clearly and concisely present the timeline for the steps leading to the final decision, such as the dates for submitting the letter of intent, sending questions, attending the pre-proposal conference, submitting the proposal, etc.

12. Contacts
Include a complete list of people to contact for information on the RFP, or with any other questions. Incorporate their name, title, responsibilities, and the various ways of contacting them into this list.

In short, a well-constructed RFP will allow your providers to propose creative, relevant, and cost-effective solutions by focusing on the end, not the means.


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MultifamilyZone.com provides a listing of products, services and industry-related companies, technology tools, marketing trends and is a resource for information and news. Our goal is to assist individual owners, as well as fee and national management firms in the operations of their assets by connecting them with professional vendor partners.

Sacramento Seeing Low Supply, High Demand & High Occupancy in 2016

Written by Landlord Property Management Magazine on . Posted in Blog

CLLI3pCWwAAImn0The Sacramento real estate market is one of the strongest in the nation, with the winning combination of low supply, high demand, and high occupancy. Prepare now for 2016 with this breakdown of Sacramento rental trends impacting property managers.

Highest Occupancy Rate in 10 Years as Demand Outstrips Supply

The third quarter of 2015 saw a 97.4 percent occupancy rate, the highest recorded in over 10 years. There is significantly more demand than supply in the Sacramento area. Roughly 923 new units were added over the year, while demand existed for 1,032 units. Annual permits for 623 units were granted in 2015, suggesting that Sacramento renters will be looking at a continued shortage of available housing stock through 2016 unless something changes.

This is great news for landlords and property managers, who should have no trouble filling available units — if there even are any to speak of!

Increased job growth is driving the Sacramento real estate market: The California capital saw 24,700 jobs added in 2015. This 2.6 percent job growth rate is higher than the national average.

Sacramento Rental Trends Say the Time Is Right for Property Improvements

The Sacramento real estate market was in negative growth in just March 2013, but started to turn around by October 2013. Since then, growth has been steady — much to the delight of landlords who may finally be able to fill apartments that were long vacant.

This may leave property managers trying to keep up with the rapid growth in landlord-tenant duties after a relatively dry period. With landlords finally receiving tenant income after a long period of higher vacancies, skilled property managers know that the time is right to suggest routine maintenance that will make the apartment retain its value over the long run. If properties you manage could use a new coat of paint or fresh landscaping to retain curb appeal, prioritize these in 2016. Any improvements you are able to make will help rental units retain their value through the 2016 rental market.

Landlords/Owners Stocking Up in Anticipation of a Strong 2016

With home prices in Sacramento still affordable, many owners are considering purchasing another rental property to maximize their earnings. Those hoping to add properties should do so soon, as supply is low. For property managers, 2016 could bring additional properties to manage. If you do not already have systems in place to streamline your property management duties, now is the time to invest in systems that make daily property management easier.

Job growth has been strong ever since 2012, which suggests that the city’s economy will be strong in 2016. Realtor.com nominated Sacramento one of its top markets to watch in 2016, giving a nod to the city’s strong rental market. Based on these factors, landlords and property managers should look forward to another year of continued strong growth. Property managers should continue to be attentive to tenant demands to make long-term tenants happy, while ensuring that they attract desirable tenants to rental vacancies that arise.


appfolio 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.