The Great Frame-Up…Taking Great Pictures of Your Rental Property:

Posted on April 24, 2012 by sunrisejan

Great pictures will sell your rental property and bad pictures can be the kiss of death.  We’ve tracked the time prospects take to view our listings.  Inevitably, properties with cluttered and poorly lit frames are viewed for the least amount of time, which means the least amount of interest.  We are a visual society and we want to make our decisions quickly.  Poor pictures are simply irritating to contemplate and the inquirer will move on.  So, here are some good picture- taking pointers.

  1.  Use a wide-angle camera.  This makes space appear larger and more open, even with closets and bathrooms.
  2. Try to send at least 6-8 good photos.  Be sure to include exterior, kitchen, bath, living room or dining room and any extra features you want to highlight. Take different angles of the same room, turning the camera vertical as well as horizontal.  If you are in a community, include things like the exercise room, the pool and the outside gate or sign.  Err on the side of more rather than less as they can be weeded out later on.
  3. Try to send pictures taken when the rooms were empty or lightly staged.  Taste-specific furniture in your pictures can ruin a marketing strategy.  What do I mean?  We turn our pictures into short videos.  We get stats from various marketing sources on how long each visitor to our sites views each video.  The videos that contain pictures of rooms loaded with furniture get cut-off in the first few frames.  We track this, we correct it, and then we see the view-time stats go up to show visitors are viewing the entire clip.  If potential tenants can’t picture their possessions in your property, they will move on to one that does feel more easily like home to them.
  4. Be sure the pictures are bright, clean and attractive.  I take the pictures on a sunny day, when the sun is overhead and not streaming into the rooms I’m photographing.  If the room has blinds, take a picture with them open and with them closed with the light on.   If it’s Winter and you’re shooting an outside shot, consider sending a picture you already have on file from the Spring or Summer when the lawn and trees were green and maybe some flowers were in bloom.  No such choice?  Then take several pictures from different angles and depths, cropping the frame to include only the home/yard you own.  Close cropped shots of the outside of the home tend to look really good.
  5. Be sure no people, pets, cars or trash is included in the photos you are sending.  There’s nothing sillier than a “NO PET” policy and a picture starring Rover in it.
  6. Not a photographer? No problem. Some people opt to have a Quick-Shoot Photographer swing by and take the pictures for them.  This is usually a flat rate /affordable option.  They can even do some Light Home Staging if it’s needed to make the shots look just that much nicer.  We use a gal at creativenative@att.net if you would like to make use of our resource.
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The Inside Scoop…Showing Your Home:

Posted on April 17, 2012 by sunrisejan

As stated in our last article, preparing the outside to get people to call you is the first step.  Now, let’s get the inside prepared to WOW them as well.

Whether your home is a higher-end property or a more affordable option there is no reason not to have the property as show-ready as possible.

Here are some tips for making a grand first impression:

Clean up all trash, including phone books, brooms, cleaning supplies, bobby pins in the vanity drawers… everything!  Don’t leave any pictures or calendars or magnets hanging up and make sure all the previous hanger holes have been patched and painted.  Also, check the fans, grates, windows and replace any broken blinds if applicable.  EVERYTHING should be thoroughly cleaned.

If you have control over them, keep the walls, trim, flooring and fixtures as neutral as possible.  This gives a feeling of “I can picture this as my home” to the person viewing it.  If they are distracted by the flowered wallpaper or a cute hummingbird border, pondering if their decor will match it, they won’t remember anything else about your place

Leftover furniture…hmmm, this can be tough.   Accidental landlords often have excess furniture they are willing to “let the renter use”.   Be honest, is it helping or hurting?  If it makes the house seem small or taste-sensitive consider moving all of it into a back bedroom so it isn’t the first thing they see.  Then, when you show the place you can mention that those pieces are available or can be removed if they don’t wish to use them.

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Love at First Site…The Curb Appeal of Your Property:

Posted on April 11, 2012 by sunrisejan

Imagine you are the potential tenant.  You are looking for a home to rent.  You turn down a street that would be a convenient and desirable location for you to move to.  You see two houses on the same block with “FOR RENT” signs showing.  The first home has an overgrown lawn, the bushes are unkempt and the trash cans have blown over in the wind.  On the second home the lawn is trimmed, the bushes have been clipped and there are even a few flowers in the bed out front.  Which home do you call to look at first?

Aside from the few obvious lawn care and foliage needs, there are some inexpensive and small things to do that can make all the difference when someone sees your property for the first time.

  1. Clean up any trash lying around.  This includes broken lawn furniture, toys, trash and broken trash receptacles.  Replace these if needed.  If there is a fence, place them around the corner out-of-site or the wind’s path.
  2. Pull or spray weeds if they are over-powering the landscape or flower beds.
  3. Sweep the front stoop or blow the sidewalk and driveway free of fallen debris.
  4. How are the screens and windows?  Can they be tightened or cleaned?
  5. Is the driveway stained or the siding moldy?   If yes, pull out that pressure washer!
  6. Lastly, consider adding some flowers, a little mulch, a colorful lawn flag or a welcome mat.

Take before and after pics if you think it won’t look that much better because you’ll be surprised at how a little work and some small splash of color can make your home the one that gets called first.

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The High Cost of Procrastinating… Avoid this Common Landlord Mistake

Posted on April 4, 2012 by sunrisejan

Whether it’s the rent being a little late or a minor repair you keep putting off, there is a tendency to just hope that a problem will go away and so often wait and hope.  It’s like that old leftover in the fridge – you don’t want to eat it and so you just leave it there knowing full well it’s not going to get any better. In fact the longer you leave it alone the greener, fuzzier and nastier it will become.  The same is true for those business problems you are ignoring.  If your tenant hasn’t paid you on time the longer you wait to address the problem the harder it will be and the more likely that it will end badly.  Even if they do end up paying a few days late, without you saying anything you still have now trained them into a bad habit.

Instead, consider addressing the problem on day one.  If you haven’t received your rent, give your tenant a call.   Try something like “I noticed the rent hasn’t been paid this month, is everything ok?”  Ask when they can pay the rent.  If they don’t have the total amount due, suggest they pay a portion now and remind them of what the late fee policy is in their lease.  We typically go ahead and post 3-day notices on the second of the month, so we explain this as well.  This is a way of getting the tenants attention.   It doesn’t mean we will evict them, but we want them to know we are serious about having on time rental payments.  Be sure to do this in a polite and professional manner.  The person is probably embarrassed as it is.  We make the entire process sound like routine company policy.

How does this help?  Here’s an all too familiar story:  The owner waits one and a half weeks to contact the tenant about a late rent payment (let’s say it’s now the 11th).  The tenant says they will pay on Friday, when they get paid.  Another week goes by (now the 18th).   A few days go by before you call again (the 21st).  By now the tenant is thinking… even if I pay now, I’ve got another month’s rent due in about a week.  Instead of paying you they save the money for a deposit on a new place.  Our suggestion: Address the situation quickly.  Then, if it’s a minor setback you can settle it easily.  If they are no longer in a situation that they can pay, better to arrange to get them out quickly.

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Collecting Your Rent – Best Practices

Posted on March 28, 2012 by sunrisejan

One common concern for new landlords is how to collect rent.  Consider having your tenants deposit their rent directly into a designated bank account.  They can either do this directly at the bank or through their online banking.  Here are some advantages.

-No more “checks in the mail” scenario.

-You’ll know exactly who has paid when.

-You can be out of town on the first and still check to see that your tenants have paid.

-No more wasting time and money driving around collecting rents yourself.

How it’s done:

1.            We use a separate bank account for each property and then transfer the money into our operating account.  This allows us to easily track who has paid.  It also allows us to close or freeze an account if we are processing an eviction.  (If you accept any payment during the eviction process you will have to start the process over.)  Just be sure that your bank doesn’t charge fees for these accounts.

2.            Some owners prefer to have one master rental account to track multiple properties.  If you do this you will need to keep the rent amounts different so you know who has paid.  Have one property have a rent of $802, another for $805, etc.  This may make it more difficult to keep track of in the event of a partial payment circumstance.   Also, be aware that if you have an eviction you will need to prevent the tenant from making a partial payment into this account per our note above.

3.            We keep our rent collecting account separate from our operating account.  This way if there is any problem it won’t affect our regular business accounts.  If you are worried about giving out an account number, just remember every time you write a check you’re giving out the same info.

Other tips:

When choosing a bank explain what you are doing and ask about fees.  Also, for your tenant’s convenience, be sure that there are branches close to where your rental properties are located.

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The Pros and Cons of Renting with HUD – Part 2

Posted on March 20, 2012 by sunrisejan

In our last post, we discussed the advantages of having Section 8 – Hud renters.  Now we will look at some of the disadvantages

Cons:

  1. Like any government program, there is extra work and time involved in any participation decision.
    1. Once you have a tenant with a HUD voucher who wants to rent your property you must have the property inspected.  Here in Jacksonville, this can take several weeks.  The inspection itself is fairly quick but you are given a two-hour window where you need to be at the property, waiting for the inspection.  If your property fails the inspection, you will need to fix the problem(s) and then wait to have it rescheduled for another inspection.  This can amount to a lot of lost time and rent.
    2. HUD may or may not approve the amount of rent you are asking for.  Just because you and your tenant have agreed on a rental price and their voucher is enough to cover it doesn’t mean that you will be approved for this amount.  HUD looks at comps (not a clear process and they won’t use other properties rented to HUD) to make the determination.  If they chose a lower amount you have the right to decline, but by then you’ve had the property off the market for awhile. We have found it helpful to take rental comps to the inspection, but this is added time and effort on your part.
    3. Here in Jacksonville, there is a freeze on rents and there has been for awhile now.  Our market has been declining so this hasn’t been a big problem, but this is beginning to change. As the market turns around it will become more of an issue.
    4. You must have your property inspected yearly as long as you have a HUD tenant.  Either you or your tenant will need to meet the inspector during a two-hour window, and then  if there is a problem reschedule a re-inspection.  Generally it is a good idea to go to your property prior to the inspection to be sure that everything is working properly.  This is an inconvenience, particularly for people who have commitments during the day that don’t allow them to leave for a few hours.
    5. HUD voucher amounts generally don’t allow for higher-end rentals.  This, however, varies by area.
    6. So, weigh the Pros and Cons and decide if HUD is right for your situation.  HUD has more hoops to go through and potentially more down time waiting for inspections, but, especially in lower areas, it can increase your pool of renters, give you at least partial guaranteed rent and some recourse if problems should arise.  Only you can decide if the added hassle is worth it.

A word to the wise…. Often, landlords don’t bother to screen HUD tenants.  We strongly urge you to SCREEN these tenants like any other tenant.  (See our article about “Finding Great Renters”.)  Over the years we have many great HUD tenants but we screen them carefully.  We recommend you do the same.

A little more info…If you are in Jacksonville and wanting the information on what inspection items then you can locate this on the Jax Housing Authority Website.

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The Pros and Cons of Renting with HUD – Part I

Posted on March 15, 2012 by sunrisejan

Want to start a heated debate?  Ask a group of landlords what they think of renting to Hud – Section 8.  Some love it, some won’t touch it with a ten foot pole. Here is a breakdown of the advantages and disadvantages so you can decide if its right for  you .

Note to newbies – Hud (Section 8) is government subsidized housing.  As with anything there are Pros and Cons.

Pros:

  1.  HUD will pay part to all of the tenant’s rent directly to you.  The amount they pay is dependent on the tenant’s income as well as family make-up.  In tough economic times this can be a huge plus.
  2. You have some recourse if there is a problem.  HUD recipients don’t want to lose their vouchers (benefits) so they have an added incentive to stay in compliance.  HUD will not pay for the damage themselves, but they can act as a middle man to encourage the renter to do so. Practically, how well this works depends on the renter’s caseworker/counselor.  We have worked with some who were great and helped to remedy the problem while others were less involved.
  3. In the lower end market where income requirements are often hard to meet, HUD tenants can help fill those difficult to lease vacancies.

Stay tuned next time for the list of Hud Disadvantages

 

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The Pros and Cons of Renting with Pets

Posted on March 5, 2012 by sunrisejan

A 2007 study found that 37% of US household owned dogs and 32% cats.  So… should you allow pets in your rentals?  There are pro’s and con’s to each decision.

THE ADVANTAGES:

1.  Allowing pets you have a larger number of prospective tenants.

2.  Some argue that pet owners tend to stay longer since it is harder to find pet friendly rentals.

3.  Pets can provide extra income.  You can charge an additional monthly pet rent in addition to your regular amount.

THE DISADVANTAGES:

1.  Pets can cause a lot of damage both from chewing and from hard to remove urine smells.

2. Some pets (particularly vicious dogs) can be a liability risk… check with your insurance agent.

If you do decide to rent to a pet owner here are a few things you can do:

1.  Always meet the pet (to make sure the tenant described “mixed breed” isn’t a pit bull).  If you are concerned about damage ask the previous landlord and possibly go to the owner’s existing home.

2.  Include a pet addendum in your lease… a great place find this is Florida Landlord Network where registration is FREE and they offer numerous landlord forms.

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Choosing a rental to buy…. Things to consider

Posted on December 6, 2011 by sunrisejan

When buying a rental property there are a few things to consider besides just rental income and expenses.  Here are several things that can affect your overall success.

1. Location, location, location….. Are you in an area that is rentable?  If you have a home in a rough area, know that your vacancy and turnover rates will be much higher both in money and time.  In a market where houses are inexpensive (like Jacksonville) spending a few thousand more to get into a slightly better area will often more than pay for itself in less and faster turnarounds.  Even if you are buying in more affordable areas get a feel for how the street looks, what the reputation is and so forth.

2. Rentability – Are there things that you can’t easily change about the property that will make it hard to rent?  We’ve learned for example that small bedrooms (especially the master) make a property hard to rent.   We’ve also seen that often investors want to increase the number of bedrooms to increase the rent.  That’s fine, however, if the house is small for the number of bedrooms it will increase your vacancies. Sometimes a spacious 2 bedroom works better than a cramped 3 bedroom.

3.  Ease of maintenance – Consider how difficult the property will be to maintain.  Is it brick or painted?  One toilet or two?  Simply having a second toilet in the house can make a huge difference.  If the only toilet in the house is stuffed up it’s an emergency.  A second toilet can buy you some time.

When buying a rental property look at some of these less obvious factors that will affect your vacancy rate, turn over and expenses.  In the end you’ll be glad you did.

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Free Landlord Class – Avoid the Top 5 Landlording Mistakes, Thursday Oct 6th

Posted on September 28, 2011 by sunrisejan

Free Class:  Avoiding the Top 5 Landlord Mistakes 

by Jan Rannow of RentQuickJax.com

Landlording can have its challenges.   In this class learn how to avoid many of the common pitfalls.  Based on years of experience this class will help you save time, money and hassle.  We look forward to seeing you there!

Where:  JaxREIA Tradeshow,

At the North East Florida Builders Association Center,

103  Century 21 Drive, Jacksonville, Fl 32216

When:  Thursday October 6th, Class starts at 8pm (tradeshow starts at 4:30)

This free tradeshow feature real estate friendly vendor and free mini-seminar on

  1. Private Lending from a Self-directed IRA
  2. Achieving Financial Freedom through Real Estate Investing
  3. 5 Steps to doing your first Deal
  4. Avoiding  the top 5 Landlording mistakes

For more information  http://www.jaxreia.org/

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