PropertyManagementMaven: May 2008

For some reason, this year, I have several tenant move-ins with PODS....they want the PODS unit delivered the day before their move in, then they arrive and have their moving crew move their belongings into the property and the PODS is picked up next day.....I am trying to make sure that the PODS is placed in the driveway and not on the street although the delivery truck may not be able to make some of the driveways with grades and/or long driveways.

I'm looking for experience and suggestions I can give residents so that these do not become a problem in tight spaces or when delivery is delayed!!

Thanks for your assistance...I'll owe you one!

Few landlords or property managers realize that they have rights and duties when residents are victims of domestic violence.  The website Legalmomentum.org is an EXCELLENT resource and has a publication that outlines this issue for rental housing providers on a state-by-state basis...

http://www.legalmomentum.org/site/PageServer?pagename=erhdv_22

Knowing what you can and can not do, what the tenant/victim must provide and how to handle the abuser will go a long way toward making a bad situation less traumatic for you and your residents.

Having been quoted in The Hook about the rental increases for GOOD, single family homes, I'm including some recent articles on the real estate market nationwide that supports my observation that the local market is enjoying some significant rental increases.

$ There are fewer rental homes in the area as many investor owners took advantage of the last few years of double digit appreciation and sold their rental homes to first-time owner-occupants. They either went into the long string of apt to condo conversion units for CASH or they got out of the real estate market altogether.

$ Many new hires to the area are electing to rent rather than buy if they are only going to be in the area for 2 or 3 years. While the rule of thumb for the last decade has been to buy a home if you would be in our area for 2 or more years, newcomers to the area are not willing to get stuck with an unsold home if and when they leave the area.

$ Many new residents still have un-sold homes with little or no equity. They are either renting their current home short term until the market turns in their area or the wife is remaining in that home until it is sold and the entire family can relocate and reunite to our area. In anticipation of this, they rent a comparable home locally so that the family does not have to relocate twice.

$ In addition to NGIC * National Ground Intelligence Command * expanding and bringing in over 800 new employees, the new MJH * Martha Jefferson Hospital * has broken ground next to State Farm on Pantops. The UVa Medical Center is expanding, again, and with a significant grant from the State of Virginia, the new Emily Couric Cancer Center has broken ground where the old "Towers" at the corner of W. Main and Jefferson Park Avenue once stood. While many incoming new residents will rent some of the newer condos or conversions in the area, many will want to rent homes in the county for amenities, schools and quality of life.

$ The Fluvanna/Lake Monticello area continue to be desirable for new residents working in the west side of Richmond/Henrico/Short Pump area and Charlottesville. Additionally the commercial area at I-64/Rt 15/ZionXRoads has blossomed with a new Best Western motel on the NW corner across from a new LOWE'S. This area will continue to attract new com-ercial growth with the employees desiring to live in Albemarle or Fluvanna counties * a 10 to 15 minute commute.

Anticipating the tightening of our local rental home market, many homeowners who are relocating out of the area are electing to rent their current home and purchasing a second home in their new home town. They are buying at the low end of the market and hope to sell their current/local home when the area sales market increases in the next few years...Buy LOW and Sell HIGH works for real estate as well as the stock market.

Anticipating the next growth area for desirable rental homes is not hard. The Crozet/Old Trail area will not be a "rental home destination" until there is significant commercial presence in the area * primarily a regional grocery store which is in the works.

Although there continues to be new construction at Lake Monticello, it is smaller/Senior housing that does not attract families so the current rental homes in the area will continue to be desirable. The Forest Lakes/Hollymead area continues to attract families because of the very good schools and commercial businesses new to the area.

My crystal ball says that our area's rental market will continue to remain STRONG and demand will continue to GROW!!

From our May, 2008 newsletter....view the full newsletter on our website...http://VAHomes4Rent.com

More and more frequently, I am getting applicants who own property elsewhere that they are not selling and have chosen to rent.  Their credit report comes up with their mortgage obligation on that property....how do you verify additional rental income to cover that expense?  Do you

1) request copy of their lease with their tenant;

2) request information from their property manager

3) request income/rental verification from their tenant

I have been offered copies of their tenant's lease with the caveat that they had not run a credit report on the tenant.  I don't want that information in my file on the tenant for security/confidentiality reasons.

I have been offered copies of their quarterly financial statement from their agent (quarterly?) showing income and expenses.  I am more comfortable with taking that as evidence of their financial capability there are no identifying financial information on them.

Craigslist posting with SCAMMER suggesting prospects provide their own credit report is the SECOND "hidden" caution in the SCAM.  With a copy of the credit report that a prospect can run on themselves, fake IDs can be easily produced which scams the CL "prospect" a second time.

At a recent Virginina Association of Realtors L-T seminar, it was suggested by a newbie PM that they do not need to subscribe and go through "due diligence" on site inspection from credit reporting to run prospect applicants reports since they have prospects pull their own report....

WRONG * the report a consumer pulls is NOT, repeat NOT the same as a retail credit report and it says so right on their report.

It is important to know the difference between these 2 reports and be able to advise prospects why you do not take such reports in an intelligent and effective manner.  It's not about the credit check/application fee, it is about the VALUE of the information in the tenant screening process!!!

Sometime property managers are so anxious for business and properties, they fail to protect themselves from PITA owners.  Here are some ways to make sure the relationship is beneficial to BOTH parties:

1) Have your property presentation at the property....there are 2 schools of thought on this - WOW them in your office or SEE what you are being asked to manage.  I prefer to go to the property and interview the property owner there.

2) PREVIEW the property from your office chair * run MLS search for any current/past listings.  Run assessor records for ownership to make sure that WHO you are meeting is the property owner.  Run MLS rental comp OR Craigslist search for homes in similar areas.

3) Ask more questions of the property owner at the property presentation that you answer.  If you have written marketing/presentation material, mail it in advance or take it to the presentation * I have a 18-page Rental Management proposal, I take 4 of my quarterly newsletters, 2 management agreements I have signed and a SASE for mgmt agreement and their CHECK to be returned to me.

4) Ask why they are thinking of renting their property?  They want a long term rental investment?  Can't sell so they will rent for 2 or 3 years?  This is IMPORTANT if you have extensive web/up front marketing costs and efforts.  Cover these costs in your management agreement if contract is cancelled

5) Ask about any service contracts, utilities, repair personnel familiar with property.  Ask about neighbors and neighborhood if you don't already know.

6) If you have any qualms about the property owners, their questions (or lack of questions) don't be afraid to suggest an alternative property manager or that they have their listing agent place the rental in local MLS and find tenant if they are balking at your fees or marketing program.

If you don't HAVE a marketing program * GET ONE!!!

I walked out of a property presentation last week.  I could not find an exterior photo from local MLS so I drove 20 min last Sun to take ext photo.  When I got to the property presentation following Wed, it was batchelor pad PLUS which would make marketing difficult with owner in place.  Owner was waiting for job relocation offers which meant property availability was unknown.  Easy fix-it projects were left half-done AND owner is an attorney.

The property looked good from the exterior, it is a good area and is LARGE; however, before leaving, I suggested 2 more local (lesser) property managers who would be more likely to take property for management....

Don't be afraid to say no AND suggest other property managers.

PRO property managers will tell you that 90% of their client/hand holding time is spent on 10% of their owners....we expect PITA residents - we don't need PITA owners!!!

Each of my properties are featured on my website with interior photos and floor plans.  My husband, a reformed framing contractor does my floor plans on a computer program named HomePlanPro.  These floor plans have GREATLY increased my web marketing effectiveness and property leasing.

With 30+ photos and floor plans for each property, I request that interested parties PREview properties online, that they they download my application, complete one for each adult applicant and fax/scan email them to my office.  I'll then PREview their application and set up a viewing of the property.  Although my properties appear vacant on my website, they are actually rented and I don't take "unknown" persons into my residents' homes without an application....

I started showing property to PREscheduled appointments at 8:30A on Friday * all prospects flew/drove into the the area as they are moving to attend/work at UVa Medical Center * out of 5 PREscreened applicants, 4 are renting a home they saw with me.

How are you PRE-preparing and PRE-screening this rental season?