Make a Dedicated Team Effort to Reduce Resident Turnover
We have over 23 apartment communities in seven states in our portfolio, including approximately 12 in one metro area. In that metro area, turnover traditionally runs approximately 70% in class B product and our experience was in line with the metro averages. We analyzed that our greatest opportunity to increase portfolio returns was to reduce resident turnover. We estimated that each turnover costs us approximately $2,000. plus. This is a combination of down time, utilities, labor, apartment preparation costs, marketing, and more.
Solution: We decided to dedicate a full time team to the number one goal of reduction of turnover in our major metro area. We identified our best two leasing agents in our portfolio and moved them to a centrally located, separated office in the clubhouse of one our properties. We gave them the assignment of tracking lease renewals by property, month, and floor plan, and the goal of working with each properties staff to reduce turnover and to be pro-active in lease renewals. We utilize the software “Rent Roll” for on site lease management. Using the F-148 report which details month by month and floor plan by floor plan lease expirations they review each properties lease expirations in the upcoming months and establish goals, plans, and ideas for each property. As an example, if they see a particular property has a large number of leases expiring three months from now, they will go in and analyze those leases and see which leases are closest to market rent. They, or property staff, then use various materials to contact those particular residents with a small incentive to renew now, with no increase to some month where we have less potential turnover. They design, coordinate and attend lease renewal parties. They track each properties progress on lease renewal follow up, making sure that each resident is being contacted well in advance, and follow up is made. They have designed and implemented contests between the properties with an emphasis on renewals.
The Results: As of the end of the Third Quarter our turnovers have dropped by approximately 7% from last year. Turnovers through the third quarter are 172 units less than for the same period last year. We are also seeing the workload of staff flattened out by managing expiration dates better and a resulting reduction in overtime. Further, now that the program is really rolling and in place we are optimistic we will be able to improve upon those numbers in the quarters ahead.
Contributed by: Jerry G. Banks
Apartment Management, Multifamily Brainstorming Sessions, Resident retention
Saturday, February 27, 2010
Friday, February 26, 2010
New Landlord Regs on Leadbase Paint by SimplifyEm
New Landlord Regs on Lead Paint
As a landlord, property manager or property management company, there is a responsibility for the safety of the tenants. This means properly preparing for the renovation and keeping persons out of the work area. It also means ensuring the contractor uses lead-safe work practices.
Beginning April 2010, federal law will require that contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, apartments, residential rental properties built before 1978 to be certified and follow specific work practices to prevent lead contamination.
Until contractors are required to be certified, make sure your contractor can explain clearly the details of the job and how the contractor will minimize lead hazards during the work.
1. Ask if the contractor is trained to perform lead-safe work practices and to see a copy of their training certificate.
2. Ask them what lead-safe methods they will use to set up and perform the job in your home, child care facility or school.
3. Ask if the contractor is aware of the lead renovation rules. For example, contractors are required to provide you with a copy of this pamphlet before beginning work. A sample pre-renovation disclosure form is provided at the back of this pamphlet. Contractors may use this form to make documentation of compliance easier.
4. Ask for references from at least three recent jobs involving homes built before 1978, and speak to each personally. Always make sure the contract is clear about how the work will be set up, performed, and cleaned.
5. Share the results of any previous lead tests with the contractor.
6. Even before contractors are required to be certified you should specify in the contract that they follow the work practices described on pages 9 and 10 of this brochure.
7. The contract should specify which parts of your home are part of the work area and specify which lead-safe work practices should be used in those areas. Remember, your contractor should confine dust and debris to the work area and should minimize spreading that dust to other areas of the home.
8. The contract should also specify that the contractor clean the work area, verify that it was cleaned adequately, and re-clean it if necessary.
Once these practices are required, if you think a worker is failing to do what they are supposed to do or is doing something that is unsafe, you should:
1. Direct the contractor to comply with the contract requirements,
2. Call your local health or building department, or
3. Call EPA’s hotline 1-800-424-LEAD (5323).
Download guide for handling lead based paints Lead Hazard Information for Landlords, Property Managers and Property Management Companies (1.41Mb pdf)
This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software.
As a landlord, property manager or property management company, there is a responsibility for the safety of the tenants. This means properly preparing for the renovation and keeping persons out of the work area. It also means ensuring the contractor uses lead-safe work practices.
Beginning April 2010, federal law will require that contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, apartments, residential rental properties built before 1978 to be certified and follow specific work practices to prevent lead contamination.
Until contractors are required to be certified, make sure your contractor can explain clearly the details of the job and how the contractor will minimize lead hazards during the work.
1. Ask if the contractor is trained to perform lead-safe work practices and to see a copy of their training certificate.
2. Ask them what lead-safe methods they will use to set up and perform the job in your home, child care facility or school.
3. Ask if the contractor is aware of the lead renovation rules. For example, contractors are required to provide you with a copy of this pamphlet before beginning work. A sample pre-renovation disclosure form is provided at the back of this pamphlet. Contractors may use this form to make documentation of compliance easier.
4. Ask for references from at least three recent jobs involving homes built before 1978, and speak to each personally. Always make sure the contract is clear about how the work will be set up, performed, and cleaned.
5. Share the results of any previous lead tests with the contractor.
6. Even before contractors are required to be certified you should specify in the contract that they follow the work practices described on pages 9 and 10 of this brochure.
7. The contract should specify which parts of your home are part of the work area and specify which lead-safe work practices should be used in those areas. Remember, your contractor should confine dust and debris to the work area and should minimize spreading that dust to other areas of the home.
8. The contract should also specify that the contractor clean the work area, verify that it was cleaned adequately, and re-clean it if necessary.
Once these practices are required, if you think a worker is failing to do what they are supposed to do or is doing something that is unsafe, you should:
1. Direct the contractor to comply with the contract requirements,
2. Call your local health or building department, or
3. Call EPA’s hotline 1-800-424-LEAD (5323).
Download guide for handling lead based paints Lead Hazard Information for Landlords, Property Managers and Property Management Companies (1.41Mb pdf)
This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software.
Landlord Quick Tip #45
Landlord Quick Tip
Tip #45: Do the Math
In this economy, you may be one of many landlords sitting with vacancies longer than usual.
One key to quick rental is setting the right rent.
If you start out too high, you scare away prospects at a critical time. The result: another month’s vacancy.
If you are in a high-vacancy market, consider lowering the rent slightly before you advertise the unit. It may save you in the long-run.
Here’s an example:
If units like yours are going for $750, your daily prorated rent is $25. Offer the unit for $725, and you just may get a better selection of applicants. You “lose” $300 over the term of a 12 month lease ($25 x 12), versus losing $750 if your unit sits vacant for another month.
You can also offset the reduction if you lease for 6 months, and increase the rent at renewal — maybe the market will have improved by then!
Tip #45: Do the Math
In this economy, you may be one of many landlords sitting with vacancies longer than usual.
One key to quick rental is setting the right rent.
If you start out too high, you scare away prospects at a critical time. The result: another month’s vacancy.
If you are in a high-vacancy market, consider lowering the rent slightly before you advertise the unit. It may save you in the long-run.
Here’s an example:
If units like yours are going for $750, your daily prorated rent is $25. Offer the unit for $725, and you just may get a better selection of applicants. You “lose” $300 over the term of a 12 month lease ($25 x 12), versus losing $750 if your unit sits vacant for another month.
You can also offset the reduction if you lease for 6 months, and increase the rent at renewal — maybe the market will have improved by then!
Monday, February 22, 2010
11 Benefits of Being Positive by Jon Gordan
11 Benefits of Being Positive
Over the years I've done a lot of research on the positive effects of being positive and the negative affects of being negative. The research is clear. It really does pay to be positive and the benefits include enhanced health and longevity, happiness, career advancement, athletic performance, team building and financial success. Being positive is not just a nice way to live. It’s the way to live. In this spirit here are 11 benefits of being positive.
1. Positive People Live Longer - In a study of nuns, those that regularly expressed positive emotions lived on average 10 years longer. (The Nun Study)
2. Positive work environments outperform negative work environments. (Daniel Goleman)
3. Positive, optimistic sales people sell more than pessimistic sales people. (Martin Seligman)
4. Positive leaders are able to make better decisions under pressure. (Heartmath.org)
5. Marriages are much more likely to succeed when the couple experiences a 5 to 1 ratio of positive to negative interactions whereas when the ratio approaches 1 to 1, marriages are more likely to end in divorce. (John Gottman)
6. Positive people who regularly express positive emotions are more resilient when facing stress, challenges and adversity. (Several Studies)
7. Positive people are able to maintain a broader perspective and see the big picture which helps them identify solutions where as negative people maintain a narrower perspective and tend to focus on problems. (Barbara Fredrickson)
8. Positive thoughts and emotions counter the negative effects of stress. For example, you can't be thankful and stressed at the same time. (Several Studies)
9. Positive emotions such as gratitude and appreciation help athletes perform at a higher level. (Heartmath.org)
10. Positive people have more friends which is a key factor of happiness and longevity. (Robert D. Putnam)
11. Positive and popular leaders are more likely to garner the support of others and receive pay raises and promotions and achieve greater success in the workplace.
Over the years I've done a lot of research on the positive effects of being positive and the negative affects of being negative. The research is clear. It really does pay to be positive and the benefits include enhanced health and longevity, happiness, career advancement, athletic performance, team building and financial success. Being positive is not just a nice way to live. It’s the way to live. In this spirit here are 11 benefits of being positive.
1. Positive People Live Longer - In a study of nuns, those that regularly expressed positive emotions lived on average 10 years longer. (The Nun Study)
2. Positive work environments outperform negative work environments. (Daniel Goleman)
3. Positive, optimistic sales people sell more than pessimistic sales people. (Martin Seligman)
4. Positive leaders are able to make better decisions under pressure. (Heartmath.org)
5. Marriages are much more likely to succeed when the couple experiences a 5 to 1 ratio of positive to negative interactions whereas when the ratio approaches 1 to 1, marriages are more likely to end in divorce. (John Gottman)
6. Positive people who regularly express positive emotions are more resilient when facing stress, challenges and adversity. (Several Studies)
7. Positive people are able to maintain a broader perspective and see the big picture which helps them identify solutions where as negative people maintain a narrower perspective and tend to focus on problems. (Barbara Fredrickson)
8. Positive thoughts and emotions counter the negative effects of stress. For example, you can't be thankful and stressed at the same time. (Several Studies)
9. Positive emotions such as gratitude and appreciation help athletes perform at a higher level. (Heartmath.org)
10. Positive people have more friends which is a key factor of happiness and longevity. (Robert D. Putnam)
11. Positive and popular leaders are more likely to garner the support of others and receive pay raises and promotions and achieve greater success in the workplace.
Friday, February 19, 2010
Accepting Late Payments Can Land You in Court by Bill Gray
Accepting Late Payments Can Land You in Court
by Bill Gray
There are many reasons why you shouldn’t allow a tenant to pay rent late, but the legal implications must always be at the top of the list.
Unfortunately, by being the nice guy or gal, and accepting late rent payments, you might be establishing grounds for a Fair Housing lawsuit.
Last year, I sat in on a seminar given by Milwaukee landlord-tenant attorney Tristan Pettit, where I learned that case law has been established that says you cannot accept late payments from one tenant and not accept late payments from another.The Fair Housing Act makes it illegal to “set different terms, conditions, or privileges for sale or rental.” By accepting late payments from one tenant and not another, you may be violating the law.
Any trip to court can be precarious and expensive in terms of time and money. You can never be certain of what the outcome of a court case or dispute is going to be. Any good attorney will tell you that avoiding court altogether is always preferred.
To compound the issue of being sued for a Fair Housing violation, consider what you are doing to the terms of your lease by habitually accepting late rent. Let’s say your lease requires the rent to be paid by the third of the month. But for the last six months, you have accepted the rent on the fifteenth.
Suddenly, in the seventh month you put your foot down and demand the rent be paid by the third, but the tenant ignores you and continues to pay the rent on the fifteenth. In the eight month, you file for eviction when the tenant again is late with his or her rent.
If the tenant were to hire a savvy attorney to represent them, the attorney could easily argue that you had amended the terms of the lease by accepting the rent late the first six months of the lease. Not only could this force you to continue accepting the rent, it could cause a counter suit.
Enforce the terms of the lease and require that the rent be paid on time—from each and every tenant. Doing so may keep you out of court.
The information contained in this article is provided for informational purposes only, and should not be construed to be legal advice. Consult a local landlord-tenant attorney to discuss your specific situation.
Copyright 2010 Bill Gray
Bill Gray is a tenant debt collection specialist, which makes him a tenant screening specialist. For tenant debt concerns, email him at Bill@thelandlorddoctor.com. Visit Bill Gray’s blog at TheLandlordDoctor.com.
See our seven part series, Vital Tips to Increase Your Debt Collection.
See Bill Gray’s feature, Tenant Screening Tips: Beyond the Basics.
by Bill Gray
There are many reasons why you shouldn’t allow a tenant to pay rent late, but the legal implications must always be at the top of the list.
Unfortunately, by being the nice guy or gal, and accepting late rent payments, you might be establishing grounds for a Fair Housing lawsuit.
Last year, I sat in on a seminar given by Milwaukee landlord-tenant attorney Tristan Pettit, where I learned that case law has been established that says you cannot accept late payments from one tenant and not accept late payments from another.The Fair Housing Act makes it illegal to “set different terms, conditions, or privileges for sale or rental.” By accepting late payments from one tenant and not another, you may be violating the law.
Any trip to court can be precarious and expensive in terms of time and money. You can never be certain of what the outcome of a court case or dispute is going to be. Any good attorney will tell you that avoiding court altogether is always preferred.
To compound the issue of being sued for a Fair Housing violation, consider what you are doing to the terms of your lease by habitually accepting late rent. Let’s say your lease requires the rent to be paid by the third of the month. But for the last six months, you have accepted the rent on the fifteenth.
Suddenly, in the seventh month you put your foot down and demand the rent be paid by the third, but the tenant ignores you and continues to pay the rent on the fifteenth. In the eight month, you file for eviction when the tenant again is late with his or her rent.
If the tenant were to hire a savvy attorney to represent them, the attorney could easily argue that you had amended the terms of the lease by accepting the rent late the first six months of the lease. Not only could this force you to continue accepting the rent, it could cause a counter suit.
Enforce the terms of the lease and require that the rent be paid on time—from each and every tenant. Doing so may keep you out of court.
The information contained in this article is provided for informational purposes only, and should not be construed to be legal advice. Consult a local landlord-tenant attorney to discuss your specific situation.
Copyright 2010 Bill Gray
Bill Gray is a tenant debt collection specialist, which makes him a tenant screening specialist. For tenant debt concerns, email him at Bill@thelandlorddoctor.com. Visit Bill Gray’s blog at TheLandlordDoctor.com.
See our seven part series, Vital Tips to Increase Your Debt Collection.
See Bill Gray’s feature, Tenant Screening Tips: Beyond the Basics.
Tuesday, February 16, 2010
Landlord Quick Tip #43
Landlord Quick Tip
Tip #43: Snowmageddon!
With 49 states experiencing snow this winter, (lucky Hawaiians!), many rental property owners are now facing the ugly side of Old Man Winter – ice damming.
Ice dams occur when the top of a roof is warmer than the bottom. As snow or ice melts from the top and rolls downward, the water cools and then re-freezes near the bottom. If the weather stays cold, the dams builds in size, and ultimately shove water up under the shingles and into the house, damaging the interior.
Unfortunately, doing nothing is not a good option.
Ice damming is one of a property owner’s biggest headaches, in part because it happens when the roof is too icy to access safely.
The trick to eliminating ice dams is to keep the roof temperature consistent. While there are heated de-icing kits available, it may be easier to keep the roof consistently cold rather than hot.
Check your roof for ice dams. The location of the dams gives you an indication of the source of the problem.
Find out why your attic is releasing heat onto the roof – the insulation may be packed too tightly to allow proper ventilation, or there may be air leaks around vents, for instance.
Consider cooling the attic down with fans.
Find out why the heat from the house is escaping into the attic in the first place.
Unfortunately, your best option may involve a roofing re-do this spring.
Tip #43: Snowmageddon!
With 49 states experiencing snow this winter, (lucky Hawaiians!), many rental property owners are now facing the ugly side of Old Man Winter – ice damming.
Ice dams occur when the top of a roof is warmer than the bottom. As snow or ice melts from the top and rolls downward, the water cools and then re-freezes near the bottom. If the weather stays cold, the dams builds in size, and ultimately shove water up under the shingles and into the house, damaging the interior.
Unfortunately, doing nothing is not a good option.
Ice damming is one of a property owner’s biggest headaches, in part because it happens when the roof is too icy to access safely.
The trick to eliminating ice dams is to keep the roof temperature consistent. While there are heated de-icing kits available, it may be easier to keep the roof consistently cold rather than hot.
Check your roof for ice dams. The location of the dams gives you an indication of the source of the problem.
Find out why your attic is releasing heat onto the roof – the insulation may be packed too tightly to allow proper ventilation, or there may be air leaks around vents, for instance.
Consider cooling the attic down with fans.
Find out why the heat from the house is escaping into the attic in the first place.
Unfortunately, your best option may involve a roofing re-do this spring.
Friday, February 12, 2010
Quick Tip #42
Landlord Quick Tip
Tip #42: They’re Taking Names!
2010 is a U.S. Census year. Every household is required to answer a census questionnaire.
That includes your renters, so landlords and property managers need to know the rules.
Questionnaires will be mailed out to individual households in March, and responses are due back April 1.
If a tenant does not respond to the government questionnaire, they may get a visit from a census worker. That probably won’t happen until late spring or summer.
Landlords and property managers in multi-family buildings have to allow access for census workers to buzz or knock on front doors of specific tenants who have not responded to the census mailing. The census worker may have to return a number of times to catch the person at home. They must be allowed repeated visits, but their requests for access have to be reasonable.
If the census worker is unable to contact the tenant after repeated attempts, the landlord or property manager may be asked to provide demographic information about that unit.
The 2010 Census has several parts, or surveys, going on at once. Only the 2010 Census and the American Community Survey are mandatory. You do not have to allow access for others.
Obviously, this census process will bring out identity thieves and other criminals who will pretend to be census workers to gain access to your tenants.
Here are some tips to help you confirm that a census worker is legit:
Before you allow entry, you have the right to ask for ID. Workers are issued a government badge. Cross-check the badge with personal photo ID.
You can call the National Processing Center to verify the person’s employment. Try 1-800-923-8282 – you may be transferred to a different office. There will be a number of regional offices as well, but be careful if you get the verification phone number from the person you are trying to verify.
Ask them to tell you the specific name of the survey – cons don’t always do their homework.
Ask for proof that they are carrying a confidentiality statement with them – they are required to read it to each person they interview.
Make sure they have something with them to record data. This year, most census workers will be using hand-help computers.
You may see a bag, probably black, with “U.S. Census Bureau” printed on it.
Census workers will not request to come inside the unit.
Census workers will not request personal financial info or SSN’s — they may ask for general income data.
Be suspicious for those who ask to “canvas” – knock on random doors, or need to meet with quite a few renters.
Watch for someone who demands immediate access without time to call to verify or otherwise throws their weight around – threatens to have you arrested, for instance.
And don’t forget to fill out your own questionnaire — or you’ll have a census worker at your door.
Tip #42: They’re Taking Names!
2010 is a U.S. Census year. Every household is required to answer a census questionnaire.
That includes your renters, so landlords and property managers need to know the rules.
Questionnaires will be mailed out to individual households in March, and responses are due back April 1.
If a tenant does not respond to the government questionnaire, they may get a visit from a census worker. That probably won’t happen until late spring or summer.
Landlords and property managers in multi-family buildings have to allow access for census workers to buzz or knock on front doors of specific tenants who have not responded to the census mailing. The census worker may have to return a number of times to catch the person at home. They must be allowed repeated visits, but their requests for access have to be reasonable.
If the census worker is unable to contact the tenant after repeated attempts, the landlord or property manager may be asked to provide demographic information about that unit.
The 2010 Census has several parts, or surveys, going on at once. Only the 2010 Census and the American Community Survey are mandatory. You do not have to allow access for others.
Obviously, this census process will bring out identity thieves and other criminals who will pretend to be census workers to gain access to your tenants.
Here are some tips to help you confirm that a census worker is legit:
Before you allow entry, you have the right to ask for ID. Workers are issued a government badge. Cross-check the badge with personal photo ID.
You can call the National Processing Center to verify the person’s employment. Try 1-800-923-8282 – you may be transferred to a different office. There will be a number of regional offices as well, but be careful if you get the verification phone number from the person you are trying to verify.
Ask them to tell you the specific name of the survey – cons don’t always do their homework.
Ask for proof that they are carrying a confidentiality statement with them – they are required to read it to each person they interview.
Make sure they have something with them to record data. This year, most census workers will be using hand-help computers.
You may see a bag, probably black, with “U.S. Census Bureau” printed on it.
Census workers will not request to come inside the unit.
Census workers will not request personal financial info or SSN’s — they may ask for general income data.
Be suspicious for those who ask to “canvas” – knock on random doors, or need to meet with quite a few renters.
Watch for someone who demands immediate access without time to call to verify or otherwise throws their weight around – threatens to have you arrested, for instance.
And don’t forget to fill out your own questionnaire — or you’ll have a census worker at your door.
Landlord Checking Up on Their Tenants by Benny Kass
How Can a Landlord Check Up on Tenants?
by Benny Kass, Inman NewsDEAR BENNY: When does a landlord have the right to enter one of his rental properties? For example, the smoke detector was going off and the renters were away for the weekend. Or the lease says that three adults can live on the property, yet the landlord knows that four adults are now living on the premises. Can a landlord enter the property (without the consent of the renters) at any time? –Barbara
DEAR BARBARA: While I do not know the laws in every state, I suspect they are the same. You — as a landlord — own the property and clearly have the right to enter the property.
However, most leases I have reviewed contain the following language: “The landlord shall have the right to enter onto the property for any reason on reasonable advance notice to the tenant; however, in the event of an emergency, the landlord may enter at any time.”
Some leases spell out what a “reasonable time is” — such as 24- or 48-hour advance notice. So, review your lease. It may contain such language, and if it does not, your future leases should have it. And if your lease is silent, I suggest you follow the guidelines of the language of those common leases.
But let’s look at your two examples. If the smoke detector is ringing and the tenants are not at home, I consider this an emergency, which would give you the right to enter without notice. But to check on the number of tenants living at the property, in my opinion, is not an emergency.
I suspect you will respond and say, “Well, if I have to give them advance notice, when I show up they will hide the fact that there is another tenant in the property.” Yes, that’s a possibility, but even though you are the landlord, your tenants deserve a modicum of privacy.
Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. Questions for this column can be submitted to benny@inman.com.
Copyright 2010 Benny L. Kass
See another Benny Kass feature, No Capital Gains Tax on Home Exchange?
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