Here are a few things we do over here, maybe some will apply to your adventures in the great land down under!
How to make land lording easy.
So...how do you do it the right way?
1) You must enjoy people
2) You must be a good listener
3) You must be compassionate and understanding
4) You must say what you mean and mean what you say
5) YOU MUST HAVE RULES AND REGULATIONS
6) You must stick to those rules and regulations ALWAYS
7) YOU MUST SEND OUT A NOTICE TO QUIT THE VERY FIRST DAY RENT IS LATE.
8) NEVER CONFRONT A TENANT FACE TO FACE WITH ANYTHING THAT THEY DON'T WANT TO HEAR. ALWAYS PUT BAD NEWS OR REPRIMANDS IN WRITING AND SEND IT TO THEM.
9) ALWAYS HAVE EVERYTHING YOU DO IN WRITING...ALWAYS... EVEN IF IT'S TO THANK THEM FOR SOMETHING.
10) Take care of repairs ALWAYS in the order they are received.
11) Take care of EMERGENCIES, (NO WATER, NO LIGHTS, LEAKY ROOF, RUNNING TOILET, NO HEAT, ETC. IMMEDIATELY
12) BE A GOOD LISTENER WHEN YOUR TENANTS CALL AND DON'T ARGUE BACK. This is hard to do so I don't take phone calls. Normal repairs are submitted to me in writing. EMERGENCIES are called into my office. I have them state that it is an EMERGENCY and I call back IMMEDIATELY!
But if they call to complain about something I deal with it through a letter. Make sure your letters are not nasty in anyway. (I have wanted to write some pretty nasty stuff, but threw them away after I wrote the first draft to get it out of my system. When I cooled off I wrote a professional letter dealing with the issue. NOTHING MORE)
12) IF A TENANT SAYS SOMETHING TO YOU AND YOU DON'T KNOW WHAT TO SAY BECAUSE THEY TAKE YOU OFF GUARD THEN DON'T SAY ANYTHING AND THEN SEND SOMETHING TO THEM IN WRITING.
14) WHEN IT COMES TO REPAIRS AND THEIR OUTRAGES SEND THEM A LETTER STATING YOU APPRECIATE THEIR REQUEST FOR THESE UPGRADES AND YOU WILL BE GLAD TO DO THEM IMMEDIATELY. THE NEW RENTAL RATE FOR THIS UPGRADE WILL BE $$$. Tell them if they agree you will begin immediately.
15) Remind Tenants through cards or letters about smoke detectors, lawn maintenance time and things you want them to do. I make my Notices such as Vehicle Violation Notices, Lawn Maintenance Notices and Late rent notices and apology cards for repairs taking longer than normal, with funny cartoon like figures on them to take away the harshness of having to tell a tenant they need to do something. (My greeting cards are sold here on mrlandlord.com)
16) Make their time with you enjoyable. Make it fun by making them feel special with Birthday Cards, Baby Cards, Anniversary Card (their time with you) and more.
17) DON'T GET NASTY WITH YOUR TENANTS OR FIGHT WITH
THEM. ESPECIALLY FOR NON PAYMENT OF RENT OR EVICTIONS.
If a tenant is late with their rent I send them a Notice I never confront them verbally. If it is time to file the summons and complaint I may call them just before I go to the court house and say, "Hi Tenant this is Nancy, I haven't received your rent yet...so what's going on", and I say that in a very friendly, nice and concerned voice. Not, Hey Tenant where's my rent, hey what's going on! The way I talk to my tenants is always in a respectful way, that way the worst of the worst tenant will feel their special and not get into a heated argument with you.
Now if the Tenant gets nasty, I keep my cool (hard to do believe me) and I just say, okay, okay, let me think about, I understand, and just refrain from saying anything. I try to answer the questions as best as I can. If they don't like what I say and they are belligerent and I can't get a word in edgewise, I polite hang up the phone and send them a letter. Professional, not nasty, but concerning the rules and this s how it is and I'm sorry they are not happy here, and that is why their lease is on a month to month so they can give me a 30 days notice when they are ready to leave.
17) No need to argue when doing an eviction. Just send them the Notice, take them to court and do the normal steps to evict them. No need to argue. Nothing to argue about. That's part of the job. You know the steps just do them.
18) When they move and you see damages, you rant and rave and then fix the place up and start all over again because that' our business. You will get reimbursed for the damages from their Security Deposit and by garnishing their income tax or their wages because they were COLLECTIBLE when you screened them.
19) TRULY LIKE YOUR TENANTS AND THEY WILL LIKE YOU BACK.
(I have had many disagreements with some of my tenants. Where I was cordial with them, never argued back but held firm to my convictions. They have yelled at thought me to be unfair, but arguments stem from not understanding the other persons point of view. When you explain to them why you have to do something, then it usually calms the situation down. They may not like it but they respect you for letting them know. I can have a discussion with a tenant and they can be fuming mad and after I explain the situation to them, we continue to like each other and hug when we meet and they have been with me as long as I've here.
22) Enjoy land lording and it will show
23) There will be times when you will flip over the edge because that's normal, but these times will be few and far in between and not an every day occurrence like I read from some posters on a daily basis.
When you complain about your tenants on a daily basis and start calling them names, then it's time to sell. This business is not right for you.
Remember if you hate or dislike something it shows. If you LOVE IT, everything runs smooth and your tenants feel it.
Many times my tenants tell me how much they enjoy us as Landlords. They tell their friends about us and their friends tell them their lucky and they want to rent from us too.
Isn't that your dream? Isn't that the goal? Life is what you make it. How you deal with these situations will make your life as a Landlord Hell or the best investments of your life.
Creative ways to advertise for tenants!
Use a professional sign outside the property, not one of the cheapo ones from HD.
How is the curb appeal? Get rid of weeds and trash and anything that makes the property look run-down. Paint the outside if it needs it.
These ideas, except for one, cost you nothing unless you get a renter. I pay for performance and rarely use newspaper ads.
Offer cash bounties to anyone who refers a qualified applicant that takes a unit. Start with existing tenants. I'm offering one month's rent right now.
There are companies that specialize in placing tenants and sometimes the tenant pays. Pay extra if the LL usually pays and offer to pay a portion of the tenant's share if the tenant usually pays. I offer a sliding scale of payment depending on the credit score. 100% if the score is over 680; 75% from 660 to 679; 50% from 630 to 659; 25% from 600 to 630.
Donate to local religious institutions if they refer a qualified applicant who takes a unit. The priest, rabbi, or whatever will make an announcement every service about your vacancy and will post your flyer on the bulletin board.
Offer to buy gift certificates from local stores if they refer a qualified applicant who takes a unit. Use mom and pop places, not large chains. I avoid bars and places where the customers are not the type of person I want as tenants. Laundromats and convenience stores are good places. Around me there is stiff competition for laundry services. If I give the gift certificates to tenants, they are more likely to use that particular place.
Check out whether your local movie theaters offer advertising on the screens. Some LLs spend several hundred dollars to run an ad for a few days. For several hundred, your ad will run before every movie for a month.
Contact local insurance companies and tell them you have units available for their insured waiting for their home to be rebuilt after damage. This won’t be a weekly rental. Some damage can take months or a year to repair.
Place your flyers in local schools and government offices. Just be sure to avoid the health, building, and legal departments. You don't want tenants that know the law better than you.
Contact the local large employers and tell them you have units available for employees moving to the area. Also, contact local temporary agencies. Many of them bring in talent from across the country and offer nothing in the way of relocation information.
Contact foreign embassies and tell them you have units available for their citizens that are moving to the US. Offer perks like included utilities or move-in help so that it is easy for a person unfamiliar with US customs to move-in easily.
Contact the local universities and tell them you have housing available for graduate students. Foreign ones are the best and I avoid renting to undergraduates as they require a hands-on approach I do not with to give. Offer the school a kickback if a student rents one of your units.
www.craigslist.org will allow you post a free ad. I offer free, wireless broadband access in some of my units. Just raise the rent the cover the cost.
Are you an alumnus of a local university? The ones around me allow alumnae to use their email distribution lists for rental ads.
Pay for the movers or work out a deal with a particular moving company to offer discounts to your potential tenants. If your units are small, negotiate storage deals with the company for your tenants.
Once you get them to call, you need to get them too view the unit, assuming they pass your pre-screen.
Just before I end the call, I tell them all people who view a unit are eligible for a drawing where they can win a gift certificate to a local restaurant. That eliminates many of the no-shows.
The inside of the unit must be in "WOW" condition. All fixtures should sparkle and not a spec of dust or dirt is anywhere, including closets and cabinets. Wipe down the walls and doors. Mop the floors and clean the windows. Don't forget mirrors if you have them.
The bathroom, including the toilet, is extra clean. Keep some TP and towels in the bathroom and some furniture in the rooms. Don't clutter the place. Make it look homey and keep on all the lights, even the ones in closets.
Have a table and chairs set up so that applicants can fill out the application there. Keep a phone book handy so that they can look up numbers, if needed. You should have a list of the major vendors in your area for utilities so that it is easy for the tenant to change over and have a sheet with information like emergency numbers, trash day, parking information, and city ordinances on snow removal and emergency parking.
If they won't fill out the application there, get as much contact information as you can so that you can follow up with them. Give them a brochure that shows how your units are better than the competition. You may want to consider novelty items like pens and magnets that have your contact information on them. Tenants will use them and be more inclined to call the person that gave them something. It's real easy for them when they can read the phone number off the pen they are using. Don't forget to tell them about referrals. They are more likely to send you a renter if they will get something out of it. --
Don’t forget your tools!
The Landlords tool kit a work in progress”
A pick up truck with tool box in the bed w/ Cooler and cold water
Full sets of tools, including Garden gloves, wet dry vac, leatherman, versatile ladder and a Cleaning supply kit
Good contracts w/clipboard and Paperwork for quick action
An answering machine, Cell phone, digital Camera and note pad.
Contractors discount plan at the Home Depot.
A good network of reliable and trustworthy workers/(friends)
Extra kitchen and bath faucets, tank and shutoff valves w/ supply lines
Trailer or trailers for storage
A system for collecting rent, screening applicants, showing property, managing leases, enforcing rules, storing and labeling keys and contracts, filing set up for tax accounting year end, a method of handling emergencies.
Best of luck mates! Dan at www.magicbullets.com
How to make land lording easy.
So...how do you do it the right way?
1) You must enjoy people
2) You must be a good listener
3) You must be compassionate and understanding
4) You must say what you mean and mean what you say
5) YOU MUST HAVE RULES AND REGULATIONS
6) You must stick to those rules and regulations ALWAYS
7) YOU MUST SEND OUT A NOTICE TO QUIT THE VERY FIRST DAY RENT IS LATE.
8) NEVER CONFRONT A TENANT FACE TO FACE WITH ANYTHING THAT THEY DON'T WANT TO HEAR. ALWAYS PUT BAD NEWS OR REPRIMANDS IN WRITING AND SEND IT TO THEM.
9) ALWAYS HAVE EVERYTHING YOU DO IN WRITING...ALWAYS... EVEN IF IT'S TO THANK THEM FOR SOMETHING.
10) Take care of repairs ALWAYS in the order they are received.
11) Take care of EMERGENCIES, (NO WATER, NO LIGHTS, LEAKY ROOF, RUNNING TOILET, NO HEAT, ETC. IMMEDIATELY
12) BE A GOOD LISTENER WHEN YOUR TENANTS CALL AND DON'T ARGUE BACK. This is hard to do so I don't take phone calls. Normal repairs are submitted to me in writing. EMERGENCIES are called into my office. I have them state that it is an EMERGENCY and I call back IMMEDIATELY!
But if they call to complain about something I deal with it through a letter. Make sure your letters are not nasty in anyway. (I have wanted to write some pretty nasty stuff, but threw them away after I wrote the first draft to get it out of my system. When I cooled off I wrote a professional letter dealing with the issue. NOTHING MORE)
12) IF A TENANT SAYS SOMETHING TO YOU AND YOU DON'T KNOW WHAT TO SAY BECAUSE THEY TAKE YOU OFF GUARD THEN DON'T SAY ANYTHING AND THEN SEND SOMETHING TO THEM IN WRITING.
14) WHEN IT COMES TO REPAIRS AND THEIR OUTRAGES SEND THEM A LETTER STATING YOU APPRECIATE THEIR REQUEST FOR THESE UPGRADES AND YOU WILL BE GLAD TO DO THEM IMMEDIATELY. THE NEW RENTAL RATE FOR THIS UPGRADE WILL BE $$$. Tell them if they agree you will begin immediately.
15) Remind Tenants through cards or letters about smoke detectors, lawn maintenance time and things you want them to do. I make my Notices such as Vehicle Violation Notices, Lawn Maintenance Notices and Late rent notices and apology cards for repairs taking longer than normal, with funny cartoon like figures on them to take away the harshness of having to tell a tenant they need to do something. (My greeting cards are sold here on mrlandlord.com)
16) Make their time with you enjoyable. Make it fun by making them feel special with Birthday Cards, Baby Cards, Anniversary Card (their time with you) and more.
17) DON'T GET NASTY WITH YOUR TENANTS OR FIGHT WITH
THEM. ESPECIALLY FOR NON PAYMENT OF RENT OR EVICTIONS.
If a tenant is late with their rent I send them a Notice I never confront them verbally. If it is time to file the summons and complaint I may call them just before I go to the court house and say, "Hi Tenant this is Nancy, I haven't received your rent yet...so what's going on", and I say that in a very friendly, nice and concerned voice. Not, Hey Tenant where's my rent, hey what's going on! The way I talk to my tenants is always in a respectful way, that way the worst of the worst tenant will feel their special and not get into a heated argument with you.
Now if the Tenant gets nasty, I keep my cool (hard to do believe me) and I just say, okay, okay, let me think about, I understand, and just refrain from saying anything. I try to answer the questions as best as I can. If they don't like what I say and they are belligerent and I can't get a word in edgewise, I polite hang up the phone and send them a letter. Professional, not nasty, but concerning the rules and this s how it is and I'm sorry they are not happy here, and that is why their lease is on a month to month so they can give me a 30 days notice when they are ready to leave.
17) No need to argue when doing an eviction. Just send them the Notice, take them to court and do the normal steps to evict them. No need to argue. Nothing to argue about. That's part of the job. You know the steps just do them.
18) When they move and you see damages, you rant and rave and then fix the place up and start all over again because that' our business. You will get reimbursed for the damages from their Security Deposit and by garnishing their income tax or their wages because they were COLLECTIBLE when you screened them.
19) TRULY LIKE YOUR TENANTS AND THEY WILL LIKE YOU BACK.
(I have had many disagreements with some of my tenants. Where I was cordial with them, never argued back but held firm to my convictions. They have yelled at thought me to be unfair, but arguments stem from not understanding the other persons point of view. When you explain to them why you have to do something, then it usually calms the situation down. They may not like it but they respect you for letting them know. I can have a discussion with a tenant and they can be fuming mad and after I explain the situation to them, we continue to like each other and hug when we meet and they have been with me as long as I've here.
22) Enjoy land lording and it will show
23) There will be times when you will flip over the edge because that's normal, but these times will be few and far in between and not an every day occurrence like I read from some posters on a daily basis.
When you complain about your tenants on a daily basis and start calling them names, then it's time to sell. This business is not right for you.
Remember if you hate or dislike something it shows. If you LOVE IT, everything runs smooth and your tenants feel it.
Many times my tenants tell me how much they enjoy us as Landlords. They tell their friends about us and their friends tell them their lucky and they want to rent from us too.
Isn't that your dream? Isn't that the goal? Life is what you make it. How you deal with these situations will make your life as a Landlord Hell or the best investments of your life.
Creative ways to advertise for tenants!
Use a professional sign outside the property, not one of the cheapo ones from HD.
How is the curb appeal? Get rid of weeds and trash and anything that makes the property look run-down. Paint the outside if it needs it.
These ideas, except for one, cost you nothing unless you get a renter. I pay for performance and rarely use newspaper ads.
Offer cash bounties to anyone who refers a qualified applicant that takes a unit. Start with existing tenants. I'm offering one month's rent right now.
There are companies that specialize in placing tenants and sometimes the tenant pays. Pay extra if the LL usually pays and offer to pay a portion of the tenant's share if the tenant usually pays. I offer a sliding scale of payment depending on the credit score. 100% if the score is over 680; 75% from 660 to 679; 50% from 630 to 659; 25% from 600 to 630.
Donate to local religious institutions if they refer a qualified applicant who takes a unit. The priest, rabbi, or whatever will make an announcement every service about your vacancy and will post your flyer on the bulletin board.
Offer to buy gift certificates from local stores if they refer a qualified applicant who takes a unit. Use mom and pop places, not large chains. I avoid bars and places where the customers are not the type of person I want as tenants. Laundromats and convenience stores are good places. Around me there is stiff competition for laundry services. If I give the gift certificates to tenants, they are more likely to use that particular place.
Check out whether your local movie theaters offer advertising on the screens. Some LLs spend several hundred dollars to run an ad for a few days. For several hundred, your ad will run before every movie for a month.
Contact local insurance companies and tell them you have units available for their insured waiting for their home to be rebuilt after damage. This won’t be a weekly rental. Some damage can take months or a year to repair.
Place your flyers in local schools and government offices. Just be sure to avoid the health, building, and legal departments. You don't want tenants that know the law better than you.
Contact the local large employers and tell them you have units available for employees moving to the area. Also, contact local temporary agencies. Many of them bring in talent from across the country and offer nothing in the way of relocation information.
Contact foreign embassies and tell them you have units available for their citizens that are moving to the US. Offer perks like included utilities or move-in help so that it is easy for a person unfamiliar with US customs to move-in easily.
Contact the local universities and tell them you have housing available for graduate students. Foreign ones are the best and I avoid renting to undergraduates as they require a hands-on approach I do not with to give. Offer the school a kickback if a student rents one of your units.
www.craigslist.org will allow you post a free ad. I offer free, wireless broadband access in some of my units. Just raise the rent the cover the cost.
Are you an alumnus of a local university? The ones around me allow alumnae to use their email distribution lists for rental ads.
Pay for the movers or work out a deal with a particular moving company to offer discounts to your potential tenants. If your units are small, negotiate storage deals with the company for your tenants.
Once you get them to call, you need to get them too view the unit, assuming they pass your pre-screen.
Just before I end the call, I tell them all people who view a unit are eligible for a drawing where they can win a gift certificate to a local restaurant. That eliminates many of the no-shows.
The inside of the unit must be in "WOW" condition. All fixtures should sparkle and not a spec of dust or dirt is anywhere, including closets and cabinets. Wipe down the walls and doors. Mop the floors and clean the windows. Don't forget mirrors if you have them.
The bathroom, including the toilet, is extra clean. Keep some TP and towels in the bathroom and some furniture in the rooms. Don't clutter the place. Make it look homey and keep on all the lights, even the ones in closets.
Have a table and chairs set up so that applicants can fill out the application there. Keep a phone book handy so that they can look up numbers, if needed. You should have a list of the major vendors in your area for utilities so that it is easy for the tenant to change over and have a sheet with information like emergency numbers, trash day, parking information, and city ordinances on snow removal and emergency parking.
If they won't fill out the application there, get as much contact information as you can so that you can follow up with them. Give them a brochure that shows how your units are better than the competition. You may want to consider novelty items like pens and magnets that have your contact information on them. Tenants will use them and be more inclined to call the person that gave them something. It's real easy for them when they can read the phone number off the pen they are using. Don't forget to tell them about referrals. They are more likely to send you a renter if they will get something out of it. --
Don’t forget your tools!
The Landlords tool kit a work in progress”
A pick up truck with tool box in the bed w/ Cooler and cold water
Full sets of tools, including Garden gloves, wet dry vac, leatherman, versatile ladder and a Cleaning supply kit
Good contracts w/clipboard and Paperwork for quick action
An answering machine, Cell phone, digital Camera and note pad.
Contractors discount plan at the Home Depot.
A good network of reliable and trustworthy workers/(friends)
Extra kitchen and bath faucets, tank and shutoff valves w/ supply lines
Trailer or trailers for storage
A system for collecting rent, screening applicants, showing property, managing leases, enforcing rules, storing and labeling keys and contracts, filing set up for tax accounting year end, a method of handling emergencies.
Best of luck mates! Dan at www.magicbullets.com
