February 8, 2010
Wear and tear is a fact of life for every landlord. Since we’ve already spent some time on this blog looking at how to tell the difference between damage and wear and tear, let’s talk about the specifics of what to expect when it
comes to basic apartment fix-it work and how to stay ahead of the maintenance game.
Generally speaking, the best time to take care of wear and tear on a unit is between tenants. And often, this goes beyond just doing a thorough clean and making sure that everything is spic n’ span for your next tenant. While it’s so obvious that this between-tenant downtime is the perfect opportunity to take care of any and all outstanding issues, all too often things are still neglected. Whether it’s because the window of time between tenants is so short or expenditures are already up for the month, it can be easy to let the little things fall to the wayside until next time. Our best advice? Don’t.
No matter how small a wear and tear item seems, no matter how loudly the voice inside your head tells you it’s okay to leave that tiny scratch on the hardwood floor until the next time you flip the apartment (“But it’s so small!”), don’t delay. As we’ve discussed so many times before on this blog, all too frequently little things become big things if they are left unattended. Also, the best way to ensure that your property maintains—or even better yet increases—it’s value is to constantly stay on top of everything.
A few things that will help you make sure those wear and tear fixes are taken care of immediately:
- Always keep frequently used supplies on hand: paint, plaster, floor polish, door knobs, latches, hinges, blinds, linoleum tiles, etc.
- Develop good relationships with contractors you trust so that they’re likely to come out and help you if need be … even if it’s at the last minute. Most vendors will go out of their way to keep their best customers happy.
- Insist on doing a walk-through of every vacated apartment yourself. Even if someone else is doing an official tenant walk-through at the end of a lease, you should still take the time to get an overview of the apartment and see what needs to be done with your own two eyes.
- Make a checklist of wear and tear items to go through during your own personal walk-through. This will help ensure that every unit is evaluated with the same standards and degree of thoroughness, even when time is of the essence. Think of it as your own personal system of checks and balances.
To help with your checklist, we like the tips provided from Rental Housing Online. Based on that, we suggest adding the following to your checklist every time a unit turns over.
Wear and Tear Checklist
- Check all door knobs and locks to make sure they aren’t loose and are working correctly.
- Open and close closet doors to ensure they are not off-track.
- Make sure hinges and handles on doors and cupboards are not loose.
- Check carpeting for dirt and other signs of wear.
- Check carpet seams to ensure they are not coming up at the edges.
- Make sure wood, tile, and linoleum floors are not scuffed, scratched, thinning, or loose.
- Check countertops for wear or scratches.
- Check ceiling for stains.
- Check walls for cracks.
- Make sure all wallpaper is securely applied.
- Check drapery rods, curtains, and blinds.
- Make sure all windows, latches, and screens are in good shape.
- Check faucet handles.
- Check toilet for leaks or running.
Finally, remember that although flipping units provides a great chance to go in and take care of wear and tear issues, you should always remain on top of general maintenance and housekeeping. Encourage tenants to let you know when little things need to be fixed or repaired (and thank them every time they do so). When you are asked to visit an occupied unit for any reason, keep an eye out for wear and tear issues that need to be resolved and ask your tenant for the access necessary to resolve them immediately. Finally, apply the five-minute rule. Whenever you see an issue anywhere on your property that can be fixed in five minutes or less, don’t delay. Fix it immediately. In the long run, you will save much more than five minutes’ worth of time and effort.
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Posted by Buildium
February 4, 2010
Renting to families with children can be difficult if you don’t have a plan on the ready at all times. Making units child-proof is imperative to keeping your entire residential community a happy one. Here are some helpful hints.
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Posted by Buildium
February 1, 2010
In previous blog posts we’ve discussed the pros and cons of renting to specific sectors, such as students and low-income tenants. Another category
that requires specific consideration is tenants with children. First of all, be aware that in most states refusing to rent to families with children (based solely on the fact that they have children) is considered discrimination and is, therefore, illegal. It is also commonly illegal to reserve only certain units for families. So the question is not so much whether or not you decide to rent to families with children, but special considerations you should bear in mind when this situation arises.
When it comes to renting to families with kids, there are two main considerations to keep in mind to ensure the comfort of other tenants and the upkeep of your units: 1) noise and 2) unit maintenance/protection. Following are a few tips for ensuring you have both of these areas covered.
Noise
Kids will be kids. And sometimes being a kid involves a bit of noise. The bottom line, though, is that many tenants (particularly those who live directly under the pitter-pattering of little feet) may be annoyed by the extra noise that often comes with children. Luckily, there are some measures you can take to help minimize noise levels and keep all of your tenants happy and comfortable.
- Make sure that floors are carpeted (more on keeping carpets clean below). According to HGTV.com, “The best covering for the floor is wood with an area rug over it. In this manner the wood floor gently absorbs the sound, while the rug swallows excess noise.”
- Install soundproofing wall insulation. CertainTeed.com offers products that work well for this purpose.
- Although it is somewhat intensive, if you rent to families frequently, you may want to consider using Green Glue, which creates a gap between your existing drywall ceiling and a new layer of drywall. According to a Today feature, this can reduce noise by up to 20 percent by blocking sound vibrations. For more information, visit SoundIsolationCompany.com.
- Finally, remember that soundproofing walls and ceilings without securing windows is a moot effort. Obviously, your tenants’ windows will be open at certain times of the year, but make sure that they are sealed to prevent noise from leaking out when they are closed. According to Repair-Home.com, double-paned windows and an acrylic frame can go a long way toward preventing sound-leakage. Double-paned windows reduce noise by up to 20 percent, while acrylic frames reduce noise by up to 50 percent.
Protecting Units
Flooring
While carpeting will help prevent some of the noise associated with children and families, it can also be easily damaged by spills. When installing carpeting, make the extra effort to secure it with fabric-protectant spray, such as Scotchgard™ Protector for Carpet. Such products can be applied on either a DIY basis or be professionally applied by a carpet cleaner.
If you opt not to take the carpet route, you can add a bit more protection to hardwood floors by applying a stain. Hardwood stains protect from scratches, dust, and grime, are long-lasting, and can be applied to the hardwood surface with a paintbrush.
Walls
In addition to flooring, walls are another area often subjected to stains and spills at the hands of little ones. Protect paint jobs with a product like AGS Wall Guard. This clear coating can be applied as a “top coat” to paint and will resist scuff marks and stains, and is easily cleaned, thus ensuring your paint will stand up to the test of little hands.
While all of this may sound like a lot of work to ensure that your units are kid-friendly, bear in mind that tenants of all shapes and sizes can make noise and messes. Consider these measures not only way to prepare for families with children, but also a means of ensuring that all of your tenants live in a comfortable, peaceful environment that is as damage-proof as possible.
3 Comments | Property Management | Tagged: apartment, carpet, children, discrimination, families, family, hgtv, illegal, kid, kids, low income, maintenance, management, noise, Property Management, real estate, resident, safety, sound, soundproof, students, tenant, tenants | Permalink
Posted by Buildium
January 25, 2010
It goes without saying that no landlord wants to see illegal activity occur on his premises. Unfortunately, this doesn’t mean that it never happens. No
matter how mundane a tenant’s behavior may seem, as a landlord it is your job to put a stop to any potentially illegal activity the moment it comes to your attention. Although your tenants are ultimately responsible for their own actions, depending on your state’s laws, you may actually be liable should one of your tenants inflict damage on other building occupants or even your property’s neighborhood.
Although you should be on guard for any sort of criminal activity on your property, drug dealing is one of the top criminal-related activities landlords are faced with. If you suspect a tenant may be dealing drugs on your property, be on the lookout for the following common signs:
- Excessive traffic in and out of a unit, with visitors staying for relatively short periods of time.
- Curbside “drop-offs” (i.e., if a tenant is frequently walking out to cars parked on the street outside of your property).
- Greater-than-normal nighttime activity.
- Drug paraphernalia (i.e., pipes and needles).
Should you suspect a tenant is dealing drugs (or committing any other sort of criminal activity) on your property, it’s imperative to respond quickly and decisively. Aside from endangering other tenants, landlords may potentially be held liable for public nuisance lawsuits by other tenants or neighbors. Not only that, but if your property gains a reputation for illegal activity, chances are the quality of your tenant pool will diminish, as good tenants leave for more safe living situations and a less desirable tenant pool becomes available to fill those vacancies.
We’ve said it before and we’ll say it again: The very best way to avoid behavioral problems on your property is to carefully screen tenants before signing a new lease. Run criminal and credit background checks, verify employment, and complete reference checks with former landlords. Although this process may be time-consuming, it’s the best way to avoid serious problems down the line.
In addition to protecting against illegal activities committed by your tenants, it goes without saying that you also want to do everything in your power to protect your property from criminal acts committed by outside parties. The following common sense measures will help ensure that your property offers tenants a safe environment and allows their minds to rest at ease.
- Make sure that the exterior of the property is well lit. You may want to consider motion-detecting lights.
- Make sure that all unit windows have latches—and encourage tenants to keep them locked.
- Prevent tenants from copying keys and distributing them to outside individuals such as family and friends. Many manufacturers now make keys that cannot be copied by general locksmiths. Also, limit each tenant to one set of keys and charge a fee for additional copies to help cut down on extra copies floating around.
- Alert tenants about any criminal activity in the neighborhood.
- Frequently inspect your property for necessary repairs that may represent potential security breaches (such as broken locks or windows).
- Take any tenant security-related concerns seriously and immediately take appropriate action.
Although criminal activity is out of your control to a certain extent, exercising due diligence is a great way to minimize threats to your tenants, your property, and yourself.
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Posted by Buildium
January 21, 2010
Since we already provided a slew of goal setting links last week, this week we’re going to mix it up a little and offer up a free-for-all list of some interesting property management related links. Happy surfing!
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Posted by Buildium
January 19, 2010
Although it may seem as though we’re already several months into winter for those of us in frigid climates, believe it or not, 2010 has really only just
begun. With that in mind, we’d like to expand a bit on last week’s blog about goal setting. This week we’ll really narrow in on those S.M.A.R.T. methods for achieving all you want in the new year.
As a refresher, S.M.A.R.T. goals are those that are: specific, measurable, attainable, realistic (relevant), and timely (time-bound). Let’s break those elements down one by one to gain a clearer understanding of why goals that follow these guidelines will serve you and your business best in the year to come.
Specific
In order to get what you want, it’s important to know what you want. Think of your goals as a map—how can you expect to reach your final destination if you don’t know where you’re going? Sure, every now and then you might get lucky and stumble your way to a desirable destination … but you will make your life much easier by knowing the quickest route from Point A to Point B.
Let’s look at a specific example. Chances are, most of us would like to raise our profit margin this year. But what does that mean? In and of itself, raising your profit margin could mean anything from making $5 more in 2010 than you did in 2009 to making $100,000 more. Being specific forces you to really strive for something. Sure, if you make $5 more this year than you did last, you can pat yourself on the back for crossing the finish line, but what have you really attained when all is said and done? Specificity is a great way to hold yourself accountable when it comes to striving for increased success.
Measurable
It’s important to establish metrics for measuring success. Saying “I want to improve my business” is too broad; saying “I want to improve my bottom line by 20%” is a measurable goal. Knowing where you stand and where you want to be helps assess your business strategy and gain a greater understanding of what works and what does not. While there are certainly some goals that are unmeasurable, most goals on your list should be measured in black and white terms.
Attainable
Sure, we all want to shoot for the stars when it comes to success, but it’s also important to make sure you are setting feasible goals. Of course, you want to make sure that you are challenging yourself (after all, this is where professional growth and innovation are honed), but you also don’t want to set goals that are impossible to meet, essentially setting yourself up for failure. Can you raise your profit margin by 50 percent in 2010? Sure, if you work 24 hours a day and 2010 follows a dismal financial year for you, you just might. But is it probable for the average property manager? Chances are, it’s not. Keep your goals within your grasp … just make sure you have to stretch a bit to reach them.
Realistic (Relevant)
In addition to considering your own resources, make sure that you account for the environment in which you’re functioning. Maybe you are willing to work 24 hours a day to raise your profit margin by 50 percent. But even if you are, that doesn’t mean that you’ll be able to locate a pool of new tenants that are willing to pay a higher rental rate … the economy simply may not allow for it. When making goals, always be sure that you maintain a realistic view of the climate and circumstances within which you are operating.
Timely (Time-Bound)
Make sure that your business goals are assigned a time period for success. Your goal may be to open up a luxury 100-unit apartment complex. Is this an admirable goal? Yes. Is it something that you can accomplish in one week? Chances are it is not. Assign a time period to the goal, make your goal to open a luxury 100-unit apartment complex by year end 2010. Even the best plans in the world will fall flat if there are no established deadlines. Don’t be afraid to be aggressive with your goal setting deadlines, because these deadlines will motivate you to act now… not later.
In the end, the S.M.A.R.T. methodology provides a road map for setting productive goals and a framework for bettering business. It’s proven very successful for us here at Buildium and we can’t wait to hear how it works for you and your business in 2010.
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Posted by Buildium
January 14, 2010
There’s no better time than 2010 to be proactive about putting forth the effort required to define (and, better yet, achieve!) your own personal version of success. The following sites can help you set and achieve all your goals in 2010.
Leave a Comment » | Property Management | Tagged: goal, goal setting, goals, management, property, Property Management, s.m.a.r.t., smart, success, team goals | Permalink
Posted by Buildium
January 11, 2010
It’s that time of the year for goals and resolutions … and this blog post is no different. Both professionally and personally, most of us start the new year off with the best of intentions—but this doesn’t mean it’s not all too easy to
get waylaid by the day-to-day grind, often before January has even run its course.
So this year, we encourage you to be accountable. Take an hour out of your week to put some serious thought into what you hope to achieve professionally in this first year of a new decade. Then make yourself accountable. Post your goals somewhere you will see them every day for the next year. Create reminders in your calendar at least once a quarter to “check in” and see where you stand. Are you taking realistic measures to achieve your goals—not just in January, but throughout the entire course of the year? Are you taking time to recognize your achievements and celebrate professional victories large and small? These may sound like trite suggestions … but they work.
Depending upon your personality and the current state of your business, creating a list of goals may be a quick, straightforward exercise or a daunting task. Whether you’re having difficulty narrowing your many goals down to a few or coming up with a single one, we encourage you to approach your list of goals with the following tactic in mind: S.M.A.R.T. strategy. Make sure that your goals are:
- Specific
- Measurable
- Attainable
- Realistic
- Timely
Keeping these qualities in mind will not only help you select goals that benefit your business, but will also build in a framework that ensures you can actually measure your progress throughout the course of the upcoming year.
We also encourage you to make your goals with the following simple but effective philosophy in mind. There’s a lot of truth to the adage “if it’s not broken, don’t fix it.” But this year, make a vow to yourself that if it is broken, you should fix it. This applies to all areas of your property management business: the units you manage, your advertising and marketing tactics, day-to-day business routines, and how you communicate with tenants and business contacts.
Particularly in these tight economic times, it can be scary to spend money on things that you could put off to a later date. But, in the long run, this doesn’t pay off. If you feel that you’re missing out on property management opportunities or could up your game when it comes to reaching potential tenants, make an investment in yourself and your business and take the steps necessary to make some headway. If you’re missing out on online marketing opportunities, invest in a web site. If you’re not out there pitching potential clients for property management work, invest the time in promoting yourself and your business. While everyone else is holding off on taking the steps necessary to grow their business until the economy takes off, you have the perfect opportunity to make some real inroads and get ahead of the pack. Don’t miss out!
2009 may have been a trying time for many landlords and property managers—but there is no reason that 2010 has to follow suit. Take the time necessary to envision what you would like to achieve this year and, more importantly, take the steps necessary to make it happen.
From all of us here at Buildium, Happy New Year! We can’t wait to hear about all of your achievements in 2010.
2 Comments | Property Management | Tagged: 2010, advertise, apartment, attainable, broken, calendar, fix it, framework, goal, goal setting, goals, landlord, management, market, measurable, money, multifamily, new years, property, Property Management, realistic, s.m.a.r.t., smart, smart goals, specific, timely, unit | Permalink
Posted by Buildium
January 4, 2010
We’re still recovering from a great New Year and to help us stay up-to-date with the Buildium Blog we enlisted Bill Gray, Tenant Debt Collection Specialist, to tell us what to expect when it comes to tenant debt collection in 2010. Bill’s blog can be found at www.thelandlorddoctor.com.
The downturn in the economy has caused many landlords to lower their credit requirements for new tenants. Of course, lowering credit
requirements increases financial risk. Renting to a tenant with little or poor credit increases the likelihood that the tenant will at some point leave owing the landlord money.
This change in rental criteria is understandable, considering the need to keep all units rented. But know that when you lower your standards and in turn incur debt, this debt will be tougher to collect than if you had rented to a tenant with good or great credit. If you use a collection agency to collect the debt, you should also lower your expectations about how much you feel they should collect.
Collection agencies are reporting that they are receiving many more files than two years ago. The average amount of debt in these files has also increased. Relaxed rental standards, coupled with the high unemployment rate, have put collection agencies in a tough spot.
The American Collectors Association reports that the collection industry debt recovery rate is down 30-40% over last year. Angi Pusateri, National Sales Manager for RentDebt Automated Collections, confirmed that her company is experiencing a similar decline in debt recovery. However, RentDebt Automated is weathering the storm well and has added employees in the last year at their offices, which are located in Nashville, Tennessee and Dallas, Texas.
Jeff Cronrod, the President of Rent Recovery Service, a national collection agency specializing in the collection of tenant debt, estimates that nearly 40% of the debtors his company is trying to collect from are unemployed. “It is not that these debtors do not care about the debt or their credit. They simply have no means to pay the bill,” Cronrod explained.
Saul Wertzer, President of Rent Recover Solutions in Atlanta, Georgia (not to be confused with Cronrod’s Rent Recovery Service), told me that his company has also seen an increase, not only in the number of collection files, but also an increase in the average amount of each file. I have heard this from every company I have spoken with, in every corner of the country. Wertzer went on to say that it is important for landlords and property managers to think long-term about debt they are owed by previous tenants. Over time a good percentage of tenant debt is collectible.
If your collection agency has served you well in the past, stick with them, even though recent recoveries may have dropped. Trust me, every agency is experiencing a tough time collecting debt. Don’t jump ship and hire another agency, because eventually the economy will improve and many of these tenants who owe previous landlords will get back on their feet. When they do, they will work to clean up their credit and pay their debt. But don’t wait until then to do something about it. Now is the time to make sure the debt you are owed is reported to all three major credit bureaus. Whether your collection agency reports the debt or you report it via an automated service, make sure every dollar you are owed is reported.
Doing so will greatly increase the odds that you will get paid the debt your previous tenant owes you.
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Posted by Buildium
comes to basic apartment fix-it work and how to stay ahead of the maintenance game.
