PropertyManagementMaven: September 2009

About 20 years ago, I started getting would-be client requests for current client references.  I talked to several local clients * 2 of which were real estate agents * and they agreed for me to provide their contact information....problem solved.

Then verious DIY books * including Property Management for DUMMIES * started suggesting that would-be clients get references and that they question (grill) the references in order to avoid mishaps during the management of their property.

I stopped providing reference names when a current client/reference recounted a phone call from a would-be client who seemed more interested in my client's properties than exploring my management policies and procedures. 

Where I had envisioned a 5 or 10 minute phone call to my clients, the callers were actually asking questions that they should have asked me directly * so that I could then judge if I WANTED to work with them * AND my current clients were uncomfortable.

I've stopped providing references and when would-be clients ask me for a list of my current clients, I explain that just as I would hold their contact information in confidence, I want to hold my current clients information as well as our relationship in confidence.   So far, most have appreciated my response and it is no longer an issue.

I've been plagued recently by tenants who have misplaced/LOST their lease agreement.  Now, I provide a 19+ page Resident Handbook in 3-ring binder with back pocket where they SHOULD keep their copy of the lease.

When I present my 6-page/8.5x11 lease printed front to back (went GREEN when postage went UP) I present the original and copy both signed by me WITH the Resident Handbook - they read the lease and the Resident Handbook AND then sign 1 copy of the lease for me - I usually already have their move-in monies...so really just want them to read the lease, ask me questions, sign and I'll hand over the keys....They keep the Resident Handbook * it has the utility turn on information * and they FAIL to put the lease in the back pocket for safekeeping.

While syncing my TENANT Contacts in my Palm cel phone, I was comparing tenants with properties and came to the realization that almost 20% of my current rental residents are actually LANDLORDS elsewhere.

They moved to the Charlottesville/Central Virginia area for new jobs or to attend school.  Some who were fortunate enough to sell their former homes before moving are electing NOT to purchase in the area because they will be leaving in 2 to 4 years. 

The residents who were NOT fortunate to have sold their former homes are electing to be landlords until their former real estate market recovers.  A few have family or friends in the area who will act as caretaker for their property; however, many have elected to hire a professional to manage their property.  Of these, most attempted to find tenants themselves * either through connections or local websites and when time became a issue, they elected to hire a professional to market and lease their property.

It will be interesting during the lease term of these residents to see if their mind-set can switch from landlord to tenant as appropriate.

Why should I write down my callers' phone numbers?  My office phone LAND line forwards to my cel phone and has for over 3 years....there is a way for Realtor offices to utilize their incoming land OFFICE line with a voicemail menu that will make their agents' CEL PHONES their extension phones so that when they call me from their CEL PHONE and I RETURN their phone call, I do not get an office voicemail with a menu tree of 30+ agents....I promise that if you ALLOW me to take your voicemail message and RETURN your call by my phone's 8 key, I will call you back.....if you call from your office land line, and I get your phone tree agent menu which is cumbersome to operate, you think I have not returned your call....if you call me from your CEL PHONE, I can return your call, answer your question and assist you with your inquiry on my property for your client. 

If I have to write down your extention, how you spell your first or last names and what phone #s you will be at for the remainder of the day, you need to lobby for a new office phone system OR just use your cel phone.

In July, I received an e-mail from a property owner whose daughter had just graduated from UVa Med school and who was leaving the area and he wanted to keep the townhouse as an investment.  I arranged to meet with the daughter, view the unit and I gave a realistic rent estimate with the caveat that the rent needed to be reduced sooner rather than later because of the late time of the year.....After sending him my management proposal and management agreement, I got his e-mail that he had decided on another property manager.  When I realized who he went with, I knew his only criteria was their lower management fee.

The townhouse has now been vacant for over a month and having started out at a very AGGRESSIVE rental rate, it is now down to the rent I quoted in July.  Their property manager does not have a national website presence and has a canned "sales" website that she features her rental property on.  She has posted a half-hearted listing on our area Craigslist every week or so and does not have the CL presence that most area professional PMs have (I post daily on a rotation between my HERO listing HTML and postlet).

This is a REALLY good example of penny wise and pound foolish.....feel free to quote my exprience when you receive those dialing-for-dollars phone calls from prospects. If they are ONLY making their selection on the mgmt fee quoted, they are leaving DOLLARS on the table with lost rent, utility/upkeep carrying costs.

This late in the season, many prospects who move locally have sold their homes and want to rent while they build a new home or prior to leaving the area in the next year or so...many prospects currently work in the area so seeing property on the weekend is the only alternative to viewing property late in the afternoon when it get's DARK earlier and actually seeing the property is problematic.

Also, if "she" has seen the house during the week - at lunch or during a break - he will need to see before the final decision.  People moving within the community have many considerations including schools, distance to work, church and shopping.

With some prior warning, I don't mind showing properties on the weekends or doing client property presentations....I just don't want to be stuck in traffic for a UVa football game and I want to makesure I and the prospects have parking available while we view the property.

At my age, there are several moments in my life where I remember EXACTLY where I was when an event occurred!!!!

....when JFK was shot

....when SPUTNIK went up

....walk on the MOON

....assault on WACO

....9 * 11 * 2001

On that day, I was in my office meeting with a would-be client in my conference room and my office manager came in and said her mother had called and said to turn on the news.  Luckily our conference room had a TV and we watched NBC and saw the second tower go down.  My would be client had worked at the Pentagon, a suite mate's sister worked in Tower One (luckily, she was late to work that day) and several of the office tenants had friends or relatives in the Pentagon.

For those who may live an in area not effected * NY * NJ * PA * VA * we actually have this logo on a license plate and every time I see it, I am effected.....

I received a phone call yesterday from a local man who is assisting his son with purchasing an investment property in the area.  He was referred to me by a long-standing client who went to college with his son....after asking me many questions on our current rental market, he advised me that his son was working with a local Realtor who had suggested a property at XXXXX address.  DUDAH!!!! It might be a good BUY; however, it is NOT a good property to expect a positive cash flow with the $$$DOWN son was willing to pay....too far out, not the more desirable school system and very little socialization for incoming new residents......this is MORE important than many realize.....I suggested some alternative properties of similar price - one a BRAND NEW PROJECT where son could purchase for Spring 2010 delivery/possession and get to choose dual sinks in master bath, upgrade carpet, etc.....all desirable and less than 5 min from one of the area's BIGGEST employers.....a "good deal" going in (short sale) is not necessarily a good deal for the investor wanting to buy and hold for the long term.

Although several fellow realtors suggest we should not be political, I drove my RX with local GOP bumper stickers (Race Fans for McCain, Snow KNOWS, Bob McDonnell, Cuccinelli (for AG)) on my back window to the beautiful Auburn Hill farm in Milton (part of the original land grant of Monticello) to meet Fred Barnes (author of Rebel in Chief and commentator on Fox TV) pre-tailgate before the first UVa (v W&M) football game.....the turn out was outstanding with local GOP politicos Duane Snow, Ken Boyd, Rodney Thomas and Rob Bell. Laurence Verga who has filed paperwork to run for the GOP spot for the 5th District Congressional race in 2010 was also there * feature the Twelve Oaks bbq from Gone with the Wind with horses on the hillside, hay bales for seating under a BIG OAK TREE overlooking a beautiful pond. 

Fred's remarks showcased his quick wit and longstanding knowledge of "doings inside the Beltway"....Fred graduated from UVa in 1965 and has daughters who attended UVa (he says his son could not get in) and that he feels that the tide is turning on the Dems with Bob McDonald likely to win the VA governorship and the GOP NJ challenger also the likely victor. 

He also extolded that the conservatives have many new faces in the party on state and local levels including VA's own Eric Cantor.

Great UPBEAT day!!!....and thank you to Rob Bell's team for bringing this great speaker to our area!!

Yes - landlord friendly states.....just like BUSINESS FRIENDLY states, this feature should be in the TOP 5 FACTORS when deciding WHERE to invest $$$ for rental property ownership....how well the purchase $$$ work will be immaterial if all the investor's profits go down the drain with a 3 month eviction for non-payment of rent and if there are onerous rules or regulations for inspections and improvements.

Texas is a GOOD landlord state * Virginia is the BEST.......we have 2 landlord tenant codes and VERY ACTIVE apartment and realtor association involvement in our state legislative process.  We follow federal fair housing guidelines with the addition of ELDERLINESS (over 55)

We have an indemnification statute that if landlords abide by the lead based paint disclosure rules, they are indemnified from further action or responsibility.  Our burden in the case of mold at the rental property is also limited and insurance companies have assumed some of the burden also.

Our eviction process for non-payment of can be started and completed in less than a month and the removal of unwanted guests or invitees is just a visit to the magistrate's office.

....and BEST of ALL....after the state legislature changes the rules effecting our business, our real estate trade organizations and apartment associations have classes on these updates!!!  The Virginia Association of Realtors actually has the author of many of these laws * Chip Dicks * provide all-day courses with CE credit BEFORE the laws take effect.  Likewise, the Virginia Apartment Management Association has similar update courses throughout the state....VAR will have a 2 day property management meeting in my BACK YARD in mid-October when for the second year, the VAR Property Management Coalition has its meeting at our area's Boar's Head Inn......

NOW, there is no excuse for not knowing the RULES..... http://www.varealtor.com/MemberServices/AlliancesSIGs/PropertyManagement/CoalitionConference/tabid/708/Default.aspx