The cost of rehabbing your investments - Expect it

Author: Joe Lavid of Property Management Inc. of SW Florida

I have a client "venting" his frustrations about the expense of upgrading his newly purchased duplex - a "foreclosure” that he rehabbing to get ready for tenants.

Does he have the right to vent?

The duplex purchased was for $55,000, and to get it ready for tenants he will need to spend about $3,500. The property 2 years ago sold for $240,000, overpriced maybe - but the revenue he will be receiving on the 2 units will be in excess $1300 a month.

People, who invest in these types of properties (foreclosures), do so in hopes of making good returns from them. Trying to set aside funds and budgeting is very important when dealing with a investment property. These costs include the cost of repairs, taxes, and advertising. The repair costs and taxes depend upon the age of the building and a proper provision for them has to be kept while determining the return from the realty.

Does he need a property manager? Well he resides in Europe, so definitely! For others, well the thought of dealing with tenants, preparing leases, taxes, maintenance, credit screening, annual reports, and eviction to name a few would be something to consider when taking a investment property.

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Survey: How are Property Managers Using Technology?

Since Software Advice launched their property management software buyer’s guide in early 2009, they have talked with over one thousand people during their search for property management software.
This week, they are moving from the anecdotal to the empirical with our Property Management Technology Survey.

The survey is a short one – only 15 questions – and will only take you a couple of minutes to complete. Their goal with the survey is to create a 2009 snapshot of how property managers are using the vast amount of technology available to them.

Help them out by participating in their survey

Go to Survey Now

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Featured Property Manager of the Week - DuBose Realty Group

DuBose Realty Group - Southfield, Michigan

DuBose Realty Group is a full-service Property Management company servicing Detroit and its surrounding suburbs. We manage single family homes, flats, apartment buildings, condominiums, and cooperative associations. We are affordable and reliable, and our goal is to get the highest return on your investment while making your experience as a landlord easy and worry free!

Our services include, but are not limited to:

• Aggressively Marketing Your Vacant Properties

-On our Saturday Morning FM Radio Show
-On our billboard signage and in the Malls
-With Several Section 8 Offices
-On the MLS System
-With Insurance Relocation Services
-Email Blasts
-With Corporate Relocation Services
-On the internet

• Frequent Open Houses
• Tenant Screening and Placement
• Rent Collection
• Full Maintenance and Rehab Services
• Home Inspections
• Eviction Services...and more!

DuBose Realty Group is a licensed full service real estate agency as well, therefore should you want to sell your portfolio of rental homes, or purchase new ones, we can help! We are proud members of the National Association of Realtors and the Detroit Association of Realtors with complete MLS access. We want to be your Make-It-Happen team!!


Find property management companies in Michigan

Featured Property Manager fo the Week - Oz Accommodations, Inc

Oz Accommodation, Inc. - Lenexa, Kansas

The company was founded April 15th, 1993, to be the premier provider of Corporate Housing in the Kansas City Market. The company expanded services to include Property Management, Real Estate Brokerage Referral Services, Real Estate Investment Consulting Services, Property Rental Services, and Property Maintenance Services. Oz has enjoyed substantial growth while earning a reputation for excellence, making Oz Accommodations the preferred provided of reality rental services for real estate investors with rental property.

Oz Accommodations Inc., offers property owners peace of mind with services and experience to make your property investment, yield maximum returns. Our mission is to protect and enhance your investment performance while providing you trouble free, high quality, property management, with INTEGRITY. We are well connected with Kansas City's Best Corporations looking for quality properties, for transferees and executives. We can offer property owners a broader market of potential high quality renters. We work directly with other leading Real Estate Firms in attracting potential renters. Oz Accommodations can customize the best possible plan to achieve your property investment objectives. The following represents summary of our services.

Oz Accommodations has invested heavily in technology enabling our owners to access data regarding their respective properties via the web, to get real time information of accounts receivables of tenants, collection effort activities, rent rolls, information of transactions such as money received, money disbursed, and maintenance activity.


Find  property management companies in Kansas

Featured Property Manager of The Week - Allied Property Management Group, Inc.

Allied Property Management Group, Inc. - Fort Lauderdale, Florida


In Palm Beach, Broward, Miami-Dade, St. Lucie, and Martin Counties, Allied Property Manangement Group, Inc. Rental Management Division offers leasing and management to rental and investment property owners as well as apartment and multi family buildings.

Allied Property Management Group Inc.'s committment to service excellence and industry leading use of technology offers our clients unparrelleled service & value, and has made us a top choice in the markets we serve.

Our Capabilities

• Tenants can pay rent online with an e-check, debit from their bank account and also with a credit card. This feature increases tenant satisfaction and speeds the process of collecting and submitting rent to you
• We provide you a monthly online statement of income and expenses
• We have established relationships with many vendors to help ensure the best pricing and honest work
• We use one of the best, industry specific software packages to run our management database and accounting functions – No QuickBooks!
• We pay you by direct deposit so you get your money faster, no matter where in the world you are
• Tenants can submit maintenance requests online
• Our thorough screening process that also allows tenants to submit their application online
• Ongoing education and certifications

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Landlord and Property Managers must changed with the Times

This economy has been tough on the real estate market to say the least. And many real estate companies have had to change the way they do business, especially when it comes time to finding new clients.


What about the rental management industry? We would think the rental market would be doing well, since so many homeowners are now being forced to become tenants, that the landlords or property management companies phone would be ringing off the hook. New would-be tenants would be flocking to their offices looking for a place to live. Maybe some are getting extra business, but the climate and type of clients are quite different from the pre-economic woes.


In todays environment the prospective tenant has more options than ever could be imagined. The inventory of available rental properties is enormous, lease with option to buy are becoming the norm as well as the desperate landlord that has no choice but to reduced his rental rate to unrealistic levels so as to bring some type of income in or face foreclosure.

Today rental market is a tenants dream scenerio and a landlords nightmare that unfortunately has few winners.

Even though rental rates are at record lows, tenants are still finding it difficult to qualify for a lease for the following reasons:

1- Many new tenants are previous homeowners that have poor credit due to a recent foreclosure which makes it difficult to qualify


2- Many new tenants recently lost a job and can not show steady employment


3- Many new tenants are looking for short term leases due to unstable jobs


4- Many new tenants household incomes have been cut in half making it impossible to qualify

5- Many new tenants can not come up with the required security deposit or other monies to

secure a property

For the Landlord or property manager many new challenges have become apparent:


1- You are competing amongst not only the current pool of rental properties, but now all the homeowners who can not sell so will rent their property instead.


2- It's very difficult to find a qualified tenant and if you do chances are you better give them a offer they can't refuse, cause the next landlord will.


3- You may have to loosen the reigns when it comes time to your screening


4- You may have to loosen the reigns when it comes time to asking for full security deposits upfront

5- You may have to change your per policy and start accepting pets if you didn't before

If you have a property management company helping you to secure a tenant, they should be doing things different. They can not wait in the office for the phone to ring anymore. They must be more aggressive in they advertising, showing properties even if this means after hours, move-in incentives, freebies...you get the picture.

Times are tough and this means making tough decisions. There no winners, but hopefully by making some changes we'll be the one that are still standing after its all said and done.


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Property Management Software - Your Property Manager Shouldn't be Without It

Nowadays to stay competitive and run your property management office like a lean machine, you should consider using some sort of property management software. There are many different products out there but Chris Thorman of Software Advice does a nice job of pointing out some cool features these software programs can offer you to make your life easier as a property manager. Check out his software reviews below.
Reposted by: Property Management Profile

Six Things Property Management Software Makes Easy
Author: Chris Thorman of Software Advice

If you’re like most property managers, your work day is stuck in the 20th century. Rent checks are collected through a metal drop box. Brochures sit idly by outside of your office. Your web site consists of one page with a phone number, e-mail address and a few photos. Enough paperwork is collecting in your office to create a fire hazard.

I want to point out six things that property managers can really master in the 21st century, thanks to the latest property management software systems.

Managing Leads to New Tenants

According to Apartment Internet Marketing, 46% of apartment prospects inquire about a property after normal 9 AM to 5 PM office hours.

How are you currently tracking these? Through e-mail? Scrolling through your Caller ID to check missed calls? Do you even know how effective your current advertising methods are?

Fortunately, many property management software applications will collect and organize your leads from all sources, even after you’re out of the office. Rent Manager is one company that is integrating marketing with it’s property management software.

A modern property management application can:

• Collect call information from prospects inquiring after hours
• Respond automatically via e-mail to internet prospects
• Track e-mail open rates so you can follow up with those who haven’t seen your response
• Broadcast e-mails to the leads you’ve collected but haven’t converted
• Log the source of leads to your web site (Craigslist.org, Apartments.com, etc)
• Track leads from offline sources through the use of specific phone numbers
• Integrate with your online advertising methods (pay-per-click, banners ads, etc.)

In our opinion, this is the wave of the future in property management software. With more and more people every day going to the internet to look for properties, integration of web services with your property management software will be the difference between surviving and thriving.

Connecting with Your Tenants

Don’t be that property manager on ApartmentRatings.com whose tenants claim is never around.

Running your office on one of the leading property management software applications will allow you to:

• Generate e-mail blasts to your tenants and rental owners
• Create community forums to discuss important topics and feedback
  
• Manage online calendars of events and important dates

In short, your property management software becomes your communication hub between you, your tenants and your rental owners. There’s no need to combine three of four different, separate services that don’t talk to each other. Moreover, you’ll be present without having to knock on every door.

Automation of Regular Tasks

If the rent deadline has passed and a tenant has not paid their rent yet, what do you do?

Typically, you either call them on the phone or drop off a notice at their door. That’s too much manual effort. Your property management system should email them an alert or late rent notice immediately. No need for you to type, print, mail or deliver.

Property management software can even ease the pain during one of the most stressful times of the year – tax season. Buildium’s property management software will automatically generate 1099 tax forms for vendors and rental owners and even file them electronically to the IRS. All of this is done from within the software itself.

The advantages of automation are clear: more time to focus on more important tasks (like finding leads), fewer mistakes and an overall higher level of efficiency.

Others tasks that have been automated by property management software are:

• Rent increases
• CAM charges
• Preventative maintenance scheduling
• Lease expiration notices
• Tenant log in to view account details

Many of your automated notices to tenants can be emailed directly from the property management software or even sent to mobile phones.
Advertising with Popular Web Sites

Put yourself in the shoes of a prospective tenant. Where are you going to look first for a new apartment or home? More than likely, you’re going to start your search at Craigslist or another website.

Property management software company Appfolio integrates the ability to post listings to Craigslist directly into it’s software, making posting vacancies to the hugely popular web site that much easier.
Appfolio uses the information you’ve already entered and are managing about your properties and ports that information directly to Craigslist. No double entry and no time wasted managing your Craigslist account separately.

And it’s not just about making it easy to post to Craigslist. Appfolio allows you to design a custom template (pictured right) that makes your Craigslist posts stand out among the typical, text-only ads.

Building a Web Site that Integrates with Your Software

If you can count the number of pages on your web site on one hand, chances are it’s not doing much to help keep your occupancy rate high. You need more than a digital business card. What you need is a web site that appeals to prospects, tenants and property owners alike.

A good number of property management software systems out there give you the option to build a slick, fully functional web site that integrates directly with their software.

Property Ware and Rentec Direct are a few of the many property management software suites that give you this build-a-web-site option in addition to their other property management software services. They’ll build a fully customizable web site with all of the features you need.

Advantages of customizable property management web sites include:

• No coding or site maintenance is need on your part
• Installation is quick and painless
• They’ll manage your domain name
• Web site analytics built into the software
• Built in forms increase your lead generation
• All of this is integrated directly with the property management software

Instead of having one company handle your web site design and hosting and another handle your property management software needs, why not have one company do both?

Going Green

Eco-conscious tenants are increasingly concerned with the environmental footprint of their home, even if they are a tenant rather than an owner.

Here’s a list of ways that property management software helps property managers save energy and save paper:

• Storing documents digitally, resulting in fewer lost documents and less paper
• E-mailing renter’s statements at their request instead of printing out paper statements
• Scan renter’s checks and upload them electronically
• Web-based property management eliminates the in-house server, saving energy

Going green isn’t just about saving energy and trees. It also helps you increase your efficiency:

• Digital document storage cuts the time searching for documents dramatically when you can type in a search instead of rummaging through a massive file cabinet
• E-mailing out monthly statement’s is quite a bit quicker than printing, stuffing envelopes and making the rounds on your property dropping off statements
• Imagine eliminating those weekly, sometimes daily, trips to the bank when you can scan and uploading a renter’s check from your desk
• Web-based property management software virtually eliminates IT headaches (and time spent dealing with those headaches) because your software vendor hosts the software on their own servers

If you do take these energy saving measures and advertise them, you’ll attract more customers. And depending on the extent of the “greening” of your properties, you’ll be able to charge more in rent too.

What else does property management software help you do better? What things do you want your property management to take care of that it currently doesn’t?

Featured Property Manager of The Week - PRODIGY INTERNATIONAL REALTY

Prodigy International Realty - Sunny Isles Beach, Florida


Prodigy International Realty provides all services required for the management of your property. We offer a wide array of property management services, which are very beneficial to the international or out of state homeowner who needs someone to take complete care of their investment property or vacation home in Florida.

Because our property management portfolio is boutique style, we can offer our clients the personalized attention that their assets deserve.

Our Specialty is the rental, management and sales of Condominiums, Townhomes and Single Family Homes, serving the needs of property owners and residential tenants in metropolitan Miami-Dade and Broward areas.

If you currently own or intend to purchase residential property for rental in Miami- Dade and Broward counties, consider using our property management service. You will find it both professional and cost-effective; we know how to manage property for optimum performance, while ensuring smooth running tenancies.


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Help for the Rental Property Owner - Is there such a Thing

We all know how difficult it's been in this economy. The real estate market has taken a huge hit with record foreclosures, a failing mortgage industry and homeowners seeing their home equity disappear. Some homeowners are finding some relief by refinancing through one of the loan modification programs available for struggling homeowners. The current administration is heavily focused on keeping homeowners in their homes.

When the real estate market was good, many people were looking to get into home ownership and take advantage of the favorable lender environment. In another corner, many investors were buying up rental properties at record pace to capture the low interest rates, "zero downs", 100% financing and attractive ARM's not normally available for rental properties. And with so many baby boomers on the horizon, many were buying as second homes for their future, but using them as rentals for the short term. Of course, all assuming the market would continue to go up, equities would continue to rise and they'd have retirement funds in abundance.

Unfortunately this did not happen and many of these investors are now holding onto investment properties that have lost much of their value, have mortgages set to re-adjust at higher rates and are now becoming long term landlords.

Many have tried to apply for the same loan modification or refinance programs that are being offer to homeowners in their primary residence, only to find out that most of these programs do not apply to properties in the catagory of "investment properties", especially if the original financing terms were catogorizes as a "second home" and now the property is used as a rental.

Also if a second mortgage is attached to the rental it can almost be impossible to get the second lienholder to subordinate and allow the 1st mortgage to be modified. Nor would it be easy to get the first lienholder to consolidate 1st and 2nd mortgages together as this would most likely cause an upside down mortgage (over 100% financing).

As a result there are not many options for a property investor other than to try and stay afloat and hope their tenant never moves out. Or lose your property to a quick sell (hoping to break even), a short sale or worse foreclosure.

To me it's interesting this administration hasn't given much thought to the needs of property investors, as this group of people are not only helping the economy by offering affordable housing to many that have lost their homes, but also to the fact that these investors create many jobs in the building industry, supply income to the state and city by way of property tax revenues, banks, tradesmen, carpenters, real estate companies and property management companies.



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Featured Property Manager of The Week -

Capitol City Properties, Inc - Washington D.C.

Capitol City Properties, Inc. is a full service property management and Real Estate Brokerage firm. We take pride in the services we provide to our property owners and clients. As property management specialists with unique expertise in managing apartment buildings, condominium associations, strip shopping centers, residential and commercial properties, we provide comprehensive commercial real estate services. Capitol City Properties, Inc. is committed to preserving the value of an investment/rental property while generating income as an agent for its clients. When you engage Capitol City Properties, Inc. to manage and operate your investment property, you are assured to receive top quality professional services and advice.

We build relationships based on trust, proving time and time again, that service reigns as the number one factor in finding a quality real estate company to work for you. We work closely with each client; to make sure that every angle is examined, offering options based on value to your business or your personal investment. Contact us and find out why we emphasize INTEGRITY.

In the Property Management division everything we do is focused on the ultimate goal of maximizing our client’s cash flow and increasing the net value of their investments as if we own it. From marketing to accounting to maintenance issues, we develop a customized business plan for each property. Then, we find the best people to execute it.

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Featured Property Manager of The Week - Fletcher Property Management, Inc.

Fletcher Property Management, Inc. - Little Rock, Arkansas
A leader in the property management industry, Betty received her broker’s license in 1999 and opened Fletcher Property Management, Inc., CRMC^® for business on January 1, 2000. After joining the National Association of Residential Property Managers (NARPM^®) in 1999, she served in varying capacities on both a local and national level. Locally she is the founding president of the Central Arkansas Chapter of NARPM^® where she is still an active member. Her service on the national level includes chairing the Membership Committee, the Editorial committee, 6 years on Board of Directors. She is proud to have utilized the Endless Possibilities of NARPM^® by serving as the 2008 National President.

After completing extensive coursework and industry service work, Betty achieved the elite Master Property Manager (MPM^®) designation in September 2002. Betty is a frequent speaker at local, regional and national property management meetings and conferences as well as having numerous articles published in management specific national publications.

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Featured Property Manager of the Week - Real Estate Investor Service

Real Estate Investor Service - Elmhurst, Illinois

Real Estate Investor Service is dedicated to understanding our clients' individual needs and providing them with exceptional real estate experiences. We put each unique client at the center of the process, delivering superior service with insight, innovation, and integrity. We strive to develop life-long relationships with each and every client. Our clients' trust is at the forefront of everything we do.

Real Estate Investor Service represents only the finest of properties in Chicagoland. We conduct all forms of residential and commercial real estate property management, brokerage, project management, and consulting.


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Make Finding a Property Management Co. Easier on Yourself by Asking the Right Questions, Part 2 of 4

This is Part 2 of a 4 Part Series where we have outlined important questions to ask a property management company before hiring them.

Part 1 Companies Credentials
Part 2 Property Management Services
Part 3 Property Management Fees
Part 4 Tenant Screening Process

Property management companies come in all sizes, capabilities and expertise. Just because one works for one investor does not necessarily mean they will work for you. Below we have outlined some important questions to ask a company during your initial interview process regarding services they provide. Their answers to these questions will give insight into their business capabilities and can provide you with an understanding of the type of services they offer which are important to you.

Part 2 - Property Management Services

Properties they manage - Property management companies are as different as car dealerships are to each other. For example, a Mercedes dealership will have the best inventory and the most knowledge of the latest selection of new Mercedes. You could visit the Toyota dealership in your neighborhood, but chances are you will not find what you are looking for. Of course, they would love your business and will try and talk you into why a Toyota is a better fit for you than a Mercedes.

Same with a property manager, they are not created equal when it comes down to their property portfolios. You need to ask what types of property they manage and make sure your type of property is one they manage. If you own a single family home, a company that manages mostly large apartment buildings or commercial property would not be a good match. In this case, your best match would be a company that has a minimum 50% or greater of single family homes in their rental pool.
Some companies manage all types of investment properties...single family homes, apartments, commercial and community associations, but chances are they hold a specialty in one or two areas.

Inspections - A thorough property inspection should never be overlooked by a property management company. A property inspection needs to be conducted upon tenant move-in and at move-out. A property inspection can range from drive-bys, a walk-through or a video inspection. If disagreements arise between tenant and manager as to items missing or damaged, actual documentation from the move-in inspection and pictures of before and after hold validity versus a verbal agreement.
A video inspection of the interior as well as the exterior of property is the best option. Still pictures are good, but sometimes do not capture all areas of property. The video will not only capture all areas, but is easily interpreted and validated as the subject property. A signed checklist at move-in from tenant validates that tenant concurs with the inspection findings.

Maintenance - When it comes time to performing maintenance or repair work to their rental properties some property management companies have their own in-house maintenance personnel. These are usually employees of the company and are paid a salary through the company. The costs or hourly rate of any maintenance or repair work that is required will be dictated by the management company itself.
On the other hand, the management company may decide to outsource all or some maintenance work to outside vendors. These vendors could range from a handyman, specialized tradesman such as a plumber or a large facility that performs all types of maintenance work.
There are pros and cons to both and I do not advocate one over the other but will outline a few points of interest:
In-house Maintenance
Pros:
- More readily available, since they work within the management company
- Direct communication with management company and their policies
- More intimate with property...they are the "one" contact and know the history of your property

Cons:
- May be more of a "jack of all trades" versus being specialized in a certain field and having the appropriate licenses
- May not be as determined to perform or finish maintenance work in a timely manner as he/she is not being paid based on the job. Whether he/she finishes in 2 hours or 8 hours, its all the same.
- If in-house maintenance crew is not available, either the repair work waits or the company will need to search for a outside vendor on short notice

Outsourcing Maintenance
Pros:
- This allows the property management company the luxury of competitive bidding among vendors, which could equate to lower costs
- Vendors will be eager to sign contracts with a property management company that can bring stable business to them, and as a result will most likely perform quality work in a timely manner
- Most vendors will be specialized tradesman carrying all required licenses, insurance and being bonded

Cons:
- Some property management companies will add a surcharge or mark-up above the actual cost of any repair work to cover their time in acquiring these bids.
- If work was not completed properly, it may be difficult to get the vendor back on the job.

Another option is coordinating all maintenance work yourself. This may work for you if you have reliable contractors you have work with and are dependable. You can probably save yourself some money but this will involve a bit of your time on your part.

Accounting - Most full service property management company will offer as a customary service some type of accounting procedure. This usually comes in the form of a monthly paper statement itemizing all income and expenses funneled through the management company on your property for that particular month. It will show rental income and any expenses such as management fees, repair costs, lawn care service, advertising charges, lease renewal fees and possibly utility charges. The monies owed the owner also referred to as the net amount should be clearly spelled out on this statement. The monthly statements are usually mailed every month to the owner along with a deposit check for the net amount. You should also be provided with a end year statement along with a 1099 for tax purposes.
With the advancement of online technology many management companies are now offering their owners the ability to view and print their monthly statements via the companys' website or online portal. These portals have the ability to store other documents such as the management contract, vendor invoices, pictures of property, inspection reports etc...all at your fingertips.
Another great advantage of working with a savvy property management company is their ability to setup automatic deposit of your monthly checks. No more waiting for the postal service, your deposit checks can be deposited directly into your bank account. Chances are they will also have the ability to setup automatic debit of tenants rent from either a checking account or credit card.


 Part 3 of 4 "Make finding a property management company easier on yourself by asking the right questions - Property Management Fees"

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Featured Property Manager of the Week - SouthCoast Properties

SouthCoast Properties - Savannah, Georgia

Your Home is our Business. SouthCoast Properties is a family owned and operated company serving the Savannah and surrounding areas property owners. We manage single homes and multi-family property throughout the region. Our clients include homeowners living in Georgia and throughout the globe.

All property managers are licensed real estate agents and have over 80 years of combined real estate experience. Each of our property managers is knowledgeable, professional, prompt and courteous, which is one reason our clients stay with us for so long.

Our team of professionals realize your property is a valuable investment and manage your property as if it were our own.

At SouthCoast Properties, our primary goals are to:

Maximize Your Cash Flow: We are committed to obtaining the maximum amount of rent for your home that market conditions will bear, thereby maximizing your income. We also work hard to minimize the cost of repairs and maintenance using our extensive network of contractors.

Minimize the Vacancy Period: We are committed to designing and executing a targeted marketing plan to rent your property as quickly as possible, thereby minimizing the time that your rental is not generating income.

Protect Your Investment: We thoroughly screen prospective tenants and manage your property in a discreet, professional and competent manner.

Do the Work for You: We handle everything so you can spend your time on more important things!

In addition to providing professional property management services, we also provide extended services such as purchase and sales representation.

Please contact us today and order your free management package. Let SouthCoast Properties take care of all of your property management needs.


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Free rental ads - More Harm then Good?

I recently had a vacancy in my house in Myrtle Beach, SC and decided to post a "Free" rental ad promoting my property in one of the largest "Free online classifieds" website. I've posted here before and have had good luck and bad. The good being I got lots of leads...the Bad being someone duplicated my ad and posted it for less rent and was trying to get people who responded to his ad to send him money to secure my property. From this lesson I learned never to display your name, nor the full property address on your ad. This way you don't have angry people coming to your property asking for you by name and saying they sent you money but have no keys to the property.

But my recent posting for my Myrtle Beach property really took me for a loop. No name displayed on ad and I only put the street name...no house number. Close enough so they could get a feel for the neighborhood if any prospects did a drive-by. And of course attached lots of pictures to the ad...cause prospect like to see pictures.

Then one day I got an email from a prospect. I called her and we talked and I told her the rent was $995 as stated on the ad and tenant pays all utilities. She followed up with an angry tone stating my ad was being advertised for $700 and all utilities are paid by owner.

I told her this must be a different ad, but sure enough there was an ad just like mine, same title, same pictures, same content except the rent was like she said.

But, what was really wierd was the full house address was on this ad.
How could this be? I never put the full address on my ad.....who could possibly have known this?
I contemplated for awhile, got angry at why this was happening to me and wondering if this happens to everybody else?

Then I took a closer look at the fake ad and something caught my eye. There was an email address given if you wished to reply to the ad. Something looked familiar...I recognized that name...where have I seen that name before......

OMG...That's my previous tenant! What on earth is he thinking? He moved out a month ago due to job relocation. Was a fine tenant while he was there, paid on time. I didn't throw him out. What was his problem?

Okay so I had to deduct part of his security deposit for some damages. That's normally what you do...tenant does the damage...tenant pays for damages.

I'd thought I'd seen it all, but that one, I wasn't ready for. My own tenant, trying to get even, would go out of his way to find my ad, duplicate it and steer potential tenants away. Unfortunately it's easy to do, cost him no money because it's Free and he can be anonymous (as long as you don't use your full name in your email address).

So now I ponder the pros and cons of free rental ad sites and wonder am I doing more harm than good. I haven't come to a conclusion yet. I do like Free, but I believe it may come with a price.


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Featured Property Manager of the Week - Lamoureux Property Management Co.

Lamoureux Property Management Co. - Everett, Washington

You've worked hard to get to where you are. It's time to start reaping the benefits of your efforts and cut the leash of worry that binds you to your investment properties.
Managing a rental home can be a daunting task. Washington State laws are very "tenant-friendly" and can often leave you at the mercy of your tenants' every beck and call. You need peace of mind. You deserve to have the freedom to leave town without wondering who will answer that emergency call in the middle of the night.

Lamoureux Property Management will answer that call!

As a full service property management company we provide the professional knowledge and expertise to actively market your property using quality, proven, marketing techniques in order to find you a suitable tenant.

Our contracts are easy to understand and are specifically written to protect you, the owner, to the fullest extent of the law. We have active and attentive property managers and an emergency maintenance and rental hotline available at all times.

So stop worrying and let us manage it!

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Selling Occupied Rentals

Author: Lambert Munz

Our leases, and many others, address the showing of units to prospective buyers. The agreement language refers to this as "exhibiting the premises to prospective or actual purchasers".
When a tenant is given notice to allow agents to show units as well as being reminded that their lease requires them to do so, guess how they feel. They are upset because a) strangers are going to disturb their daily routine and work schedules. b) They are going to be kicked out as soon as it sells. At this point they do not give a tinker's damn about the owner's need to sell. They are going to be hard to reach and are not going to cooperate by taking off work to show units. Also, the tenants are probably in no mood to clean the unit every time an agent calls.
What about putting a lockbox on door allowing agents to enter when the tenant is gone? At our company, we reserve the right to cancel our contract if a lockbox is put on a door without the tenant's permission. It is a liability we don't wish to share. If a tenant does agree to the lockbox, then we will ask in writing that we be excused from liability as we have no control over who is entering the home. The listing agent doesn't even know who the parties are and agents will enter without calling. Anyone could walk in the middle of something private/personal.
THE SOLUTION TO THE PROBLEM IS SO SIMPLE - It is called compensation, AKA money. Money does wonder to gain cooperation. Resentment seems to vanish.
This reminds me of a story about my wife. Years ago, she was managing a large community of over 400 units. The owner decided to sell. Of course, my wife became concerned about whether or not the new owner would retain her or that the company she worked for would transfer her to another job.
This was a large transaction and the seller was a sophisticated investor. He told my wife's boss that he wanted to give my wife a $4,000 bonus for help with the sale with the new buyer. The boss told the owner that this was not necessary. The owner insisted that my wife be given this bonus as he wanted the transaction to go smoothly. He knew my wife had other concerns besides his successful sale. However, with the added bonus, my wife was enthusiastic to help the sale be consummated. With a $4000 bonus, she could worry about another job later.
The magic of cooperation is so simple and is often overlooked or purposely ignored.
The tenant is being inconvenienced and their privacy disturbed. It only makes sense that they should be given the courtesy of compensation for their cooperation.
An addendum can be prepared that will give them a free month's rent or a move out bonus. A condition of receiving the bonus will be a tidy house for showing and agreed upon showing times. No knocks on the door without proper notice.
Agents should use this same strategy regarding property managers when needing their cooperation with the sale of an owner's property. The property manager at this point is thinking that they will no longer manage the home and the enthusiasm for helping is disappearing. Think about cutting them a bonus if the sale goes through. The result will help in spades -- simply because nobody else does it.
I had an agent one time ask me if I would show the units for her. Guess what my answer was.

My name is Lambert Munz and I have been licensed as a Real Estate Broker for 44 years with the CA Dept of Real Estate. I currently am President of Arbour Real Estate Management, Inc. Background was as a Buyer's Broker for Investment properties. Currently a property manager and have been for 27 years. We offer residential and commercial management services. I hold two designations: RMP Residential Management Professional and MPM Master Property Manager. Awarded by NARPM National Association of Residential Managers. Past President of NARPM Sacramento chapter. My services are available in Sacramento CA.
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Featured Property Manager of the Week - LB Property Management

LB Property Management - Sherman Oaks, California

Apartment Management has been the cornerstone of our company since it's inception in 1988. LB is the recognized leader in successful apartment management. LB Property Management has an extensive background in all aspects of apartment management including taking projects from the ground up successfully. We have specialized departments that work together in meeting all of your property's needs. Once the contract is secured you will be assigned a supervisor who will be your main contact. There will of course be a team of people assigned to and working on the project however the property supervisor will be your liaison to the other team members. You will have access to all those working on your project. All of our supervisors carry blackberry phones so they can receive e-mails in the field and so that clients can reach them when needed.


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Featured Property Manager of the Week - MySmartlease

MySmartLease - San Bernardino, California

Our People Make the Difference - We believe that the key to our success is in the personal relationships that we have developed with our customers over the years. MySmartLease Management has assembled some of the most talented residential property managers in Southern California. Our experience and knowledge in managing single-family homes means savings for you. Our entire staff is well-compensated employees of our company with ongoing training surpassed by few in the industry. Leasing Consultants - Because we average dozens of prospective renter calls each week to our office, we dispatch our leasing consultants who show rental homes 7 days a week. Our leasing consultants are specially trained in the art of assisting prospective renters and leasing properties. This increase in showing efficiency, coupled with specialized training means results for our property owners, not to mention a tremendous benefit in time and savings to our qualified renters seeking quality homes. Video Taped Property Inspections - If you believe that a picture is worth a thousand words, then Video Taped Property Inspections are just one more reason why you should hire MySmartLease as the property manager of your single family home, condo, town house, etc… There will be little question as to "What the property looked like prior to move in". Adding this enhancement provides peace of mind property management for property owners who want to protect their property AND their residents who want to ensure the return of their security deposit. We Show Rental Properties 7 Days a Week - MySmartLease is open for your convenience 6 days a week, (excluding national holidays). We realize that often time’s renters seeking quality rental homes must have after hour or weekend appointments. We also realize that the management of rental properties doesn't stop on Friday's at 5:00PM.. We have property managers on call 24 hours a day to handle any situation for our customers.

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Featured Property Manager of the Week - Bluebonnet Properties Inc.

Bluebonnet Properties - Waco, Texas

Our business background is founded on the principles expressed by James Cash Penney, founder of The Golden Rule Store, in 1902. When you first contact us, you will receive a Welcome to Bluebonnet Properties to read. It will lead you to the story, How to Love Your Landlord, a story detailing the plight of a person who needs to rent a home. In the story, you will find who we are and how we feel about what we do. Realtors don't like being property managers. Owners don't like being property managers. Property managers don't usually like being property managers. We all like it and that's why people hire us. If you would like to see a list of referrals, I can send you emails and phone numbers of people who have hired us and are satisfied with our work. Most of our clients have never met us in person but stay with us over long periods of time. We hardly ever have a client leave us for reasons other than our completing our mission, selling the house after it's value as a rental is expired. I can always be reached. Call me. Mickey



Texas Property Management

Adversity For Some Brings Opportunities For Others

Author: Lambert Munz

This economic crisis has caused a great deal of hardship for many. Losing a home and losing a job is devastating. For others, this may be an opportunity to buy affordable homes that were unreachable before. If people have a job and feel comfortable with the future, now is the time to take advantage of the low prices and interest rates.

For investors, now is the time to buy investment property if they are able and ride on up the increased values that will happen again.

I knew the market would eventually crash, and when a realtor friend asked me if I was planning to "move up" using all of the equity I had acquired with my present home, my response was, "my home is overpriced and so are the others". I remember Alan Greenspan, the former fed chairman, stating that real estate would experience a soft landing. I thought, well, he is an expert he should know.

I secretly felt that the market would crash, but didn't want to appear negative to my real estate buddies. Anything that increases in value that quickly will come down hard later, especially when the values are higher than the median income of the community.

What then, was driving the market?
Speculation along with fraudulent loans made to unqualified people. Speculators sell to other speculators until the last one gets the one before the crash.

I feel very lucky because I bought my home nine years ago and the value went way up but later dropped about $200,000. Yet, I still bought $55,000 less than the current value today. Some financial planners will tell you to not pay off your home quickly, but rather to invest in more lucrative investments that will return more than what your current interest rate is along with the tax deduction. I wonder what they are saying today.

I am not a financial planner, but my advice is to pay your home off as soon as you can. Some will say I will lose my tax deduction. Think about this scenario. You are paying $1.00 and depending on which bracket you are in, for example 30%, you are saving 30 cents. I have a plan for you - pay off your home and pay me the amount of your former house payment for real estate services and deduct 30 cents for each dollar you pay me. You will have a free and clear house and still have your tax deduction.

My best to you and good luck in the future. Good times will return again.

My name is Lambert Munz and I have been licensed as a Real Estate Broker for 44 years with the CA Dept of Real Estate. I currently am President of Arbour Real Estate Management, Inc. Background was as a Buyer's Broker for Investment properties. Currently a property manager and have been for 27 years. We offer residential and commercial management services. I hold two designations: RMP Residential Management Professional and MPM Master Property Manager. Awarded by NARPM National Association of Residential Managers. Past President of NARPM Sacramento chapter. My services are available in Sacramento CA.

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Make Finding a Property Management Company easier on yourself by asking the Right Questions, Part 1 of 4

This is Part 1 of a 4 Part Series where we have outlined important questions to ask a property management company before hiring them.









Part 1: Company Credentials
Part 2: Property Management Services
Part 3: Property Management Fees
Part 4: Tenant Screening Process

Property management companies come in all sizes, capabilities and expertise. Just because one works for one investor doesn't necessarily mean they will work for you. Below we have outlined some important questions to ask a company during your initial interview process. Their answers to these questions will provide insight into their business capabilities, credentials and areas of expertise, and can provide you with an understanding of the type of services they offer which are important to you.

Part 1-Credentials

Years in the business - Years in the business can equate to experience and stability within a company. Of course things such as changes in key personnel or senior management can jeopardize this. But generally this is a good indicator of a company with a solid foundation. Chances are they have solid processes and procedures in place to streamline the management of possibly hundreds of properties all at the same time. Make sure these "years in the business" are related to property management and not sales only. Just because they have 30 years running a real estate sale department does not make them an expert in property management or tenant relations.

Done business under another name - You should do your due diligence and contact the Better Business Bureau or other reliable service such as Dun & Bradstreet to see if the company your interested in has a good track record or any consumer complaints filed against them. The Better Business Bureau assigns grades from A to F with pluses and minuses. A+ is the highest grade and F is the lowest. The grade represents BBB's degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns. If the company your interested in has done business under another name you will want to check the track record of this business entity also.

Property Management Only or Sales also - Some investors will only hire companies that deal strictly in property management when it comes time to managing their rentals. These companies are focused on every aspect of property management since this is all they do, and they will not be influenced in trying to get you to sell and making a sales commission. Other investors may find security in knowing they have a management company that is well verse in sales. A company that offers both sales and property management can be very useful if you plan on buying multiple properties and want to work exclusively with one company for buying and managing all these properties. These companies typically will have a good grasp of the overall market condition whether buying, selling for owner occupied or investment.

Real Estate or Brokers License - In order to practice business as a property manager some states require they process a Real estate or Broker's license. To receive a license requires extensive education as well as passing the state's licensing exam. In order to keep their license current they must also participate in ongoing courses. These courses and license designations cost money and show they have a commitment to their trade. Other states may only require a certificate, which consists of basic classes and passing a class exam.

Staff personnel - Some management company may employ hundreds of employees, while others may be run by a sole proprietor. What you want to find out here is the ratio between their portfolio of rental properties and managers they employ. In other words, if they manage several hundred properties yet only have two staff managers, they may be overworked and unable to give you the service you expect.

Type of properties you manage - Some property management companies manage all types of properties while others specialize in one type, such as residential. If you have a single-family house that needs managing, a company with 90% of its properties being commercial property may not be a good fit. Typically commercial and community association management is the most profitable for a property management company. And some residential property management company may prefer to manage only multi-unit apartment buildings of a certain size and not manage single family houses at all.

Associations/Affiliates - They are many local and national associations that are tailored for the property management community. These associations are full of valuable information, and are a great way to network amongst others in their industry. Once a member of these associations you have numerous channels of educational classes and seminars all geared toward enhancing their skills as property managers. Upon completing class requirements many are given professional designations to promote them as a professional in their field. Some popular associations are "National Association of Realtors®" (NAR), "National Association of Residential Property Managers®" (NARPM®), "Institute of Real Estate Management®" (IREM®), "Community Associations Institute" (CAI), "Building Owners and Managers Association" (BOMA) and the "National Apartment Association" (NAA).

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Featured Property Manager of the Week - Real Property Management

Real Property Management - Phoenix, Arizona


Real Property Management, located in the Phoenix Metro area is a full-service property management company which specializes in:

• Filling Vacancies
• Finding Tenants
• Ad Coordination
• Tenant Screening
• Rent Collection
• Facilities Maintenance
• Facilities Inspections

Property managers in Phoenix, Arizona

So you want to be a Landlord

So you've purchased your first rental property and are now ready to dive into the world of being a landlord. You got a pretty good deal on that house, have run the numbers and have decided in order to cut costs, to manage the property yourself instead of hiring a full service property management company. How hard can it be; you know how to fix a leaky toilet and paint. Plus it would be fun taken on a more hands-on approach with your investment.

You've already got a pretty good idea of what type of tenant you want, right? And you're going to tailor your ads to target this type. And of course you've got a rental rate already in mind that will not leave you with a negative every month. You also went to the local office supply store and picked up one of those ready made "one-size-fits-all" lease agreements. Cool…
You'll feeling like that weekend super seminar you went to on how to become a landlord in 3 easy steps is paying off.
Just do a few more of these deals and you'll be out of the rat race in no time. Sounds great, right? Yes that sounds great, but now comes the realty.

Being a landlord does not happen over night. It takes lots of experience, knowledge and lessons learned.
-It can become a full time job if handled properly.
-It can become a nightmare if not handled properly.
-It can be fun and stressful at the same time.
-It can become overwhelming
-It can make you laugh
-It can make you cry
-It can make you rich
-It can make you poor
-It can make you the hero
-It can make you the villain

I would never discourage anyone from not giving it a try. The best way to learn something is by hands-on experience. Just keep in mind, being a landlord is the same as running a business and there are legalities you must follow and adhered too.

Here are just a few things to consider before deciding if landlording is right for you:

-On a federal level, tenants can not be discriminated against based on race, color, religion, sex, national origin or disability.
-On a state or local level, it can go further by not allowing discrimination based on marital status, sexual orientation, presence of children, age, occupation, source of income (government assistance, section 8), educational status or medical status.
-Market condition, location and amenities or lack of will dictate how much you can set your rent at. It has nothing to do with making sure you cover any negative scenarios.
-You better know more than how to fix a leaky toilet and paint.
-Never schedule a vacation around the 1st of the month. Actually no time is good.
-Have the yellow pages handy, or just rip out the pages listed under "handyman", "plumber", "electrician", "carpet", "carpet cleaning", "painter", "hardware stores" and just cause in case "Lawyer" for quick reference.
-You'll need a cell phone at all times
-Always keep money set aside for the "just in case", because the "just in case" will happen.
-Once you've run the numbers and have come up with the monthly expenses of running your property, go ahead and add at least 10% more; because you'll need it.
-Attend as many of your local hardware stores "How-To" home repair demos. Being a jack-of-all-trades comes with the territory.
-Locate the nearest marshal office or district court from your rental property. You may need them in case you need to start the eviction process.

When I hear people talk about all their horror stories, how they lost their shirt investing in real estate and how you can't make money owning rentals, you can bet it's because they didn't know how to play the game. They didn’t even know the rules. I've had my share of horror stories, but I've learned from them and have moved on and will make better choices in the future.

Understand the rules of the game, play by the rules and you just might succeed.
Happy investing.

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Featured Property Manager of the Week - Blackbrook Associates

Blackbrook Associates - Ben Lomond, California

Blackbrook Associates specializes in the management of residential, multi-family, apartments and commercial properties. They service both property owners and residents. With over 40 years of providing solid real estate service to Santa Cruz County, Blackbrook Associates knows how to fit their management expertise to fill your individual property needs.


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Featured Property Manager of the Week - Real Estate Management Services

REMS INC aka Real Estate Management Services - Lawndale, California


Real Estate Management Services has been in business for over 50 years. This third-generation family owned and operated business specializes in the management of income and resident occupied properties. Property size ranges from single family dwellings, to apartment & condominium communities numbering in the hundreds of units. REMS also manages retail and office properties.



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Featured Property Manager of the Week - Triumph Property Management

Triumph Property Management - Las Vegas, Nevada

Triumph Property Management offers expert asset and property management services. It is our goal to our offer clients a complete spectrum of services. Our management services includes basic functions such as, tenant screening and retention, random property inspections, property maintenance, collection of rents, maintenance contracting, and supervision.

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Featured Property Manager of the Week - Azure Group Property Management

Signature Real Estate - Azure Group Property Management - Scottsdale, Arizona

Azure Group of Signature Real Estate Services has built a rock-solid reputation as the most effective and energetic group of real estate agents you can find. Our core competency is the finest property management services available. That core competency gives the group superior leverage in helping our investor network acquire new properties, and also provides our network a ready-made buyer pool for investors looking to divest their properties.
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Featured Property Manager of the Week - Real Property Management Rincon

Real Property Management Rincon - Tucson, Arizona

Real Property Management is a customer service oriented company specializing in the management of single family homes and small rental properties.

Our office and operations are built from a successful property management platform that has been in business for over 20 years managing thousands of properties nation wide.

Having been in business for over 20 years, we manage thousands of properties. We know the Arizona rental market. As a full-service management firm, we offer tenant placement, credit screening, maintenance, property inspections, collections, evictions and monthly financial reporting.

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