Rental Housing Journal Arizona February 2016

Monthly Circulation To More Than 7,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel

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2. 14 Points That Must Be In Your Apartment Building Leasing and Marketing Plan

Rental Housing Journal Arizona February 2016 - Vol. 8 Issue 2

Circulated to over 10,000 apartment owners,on-site and maintenance personnel monthly

Call 503-221-1260 for more information

Advertise inRental Housing Journal Arizona

continued on page 7

continued on page 3

continued on page 10

4. How Are You Helping Your Prospective Residents Who Are Searching For Trustworthy, Honest Content About Your Property Management Business

6. Inherit A House? – How To Rent It Out

9. Dear Maintenance Men – Landscaping, Gra� ti & Power Tools

Handling Application Deposit Disputes

Most landlords require a pro-spective resident to pay a de-posit to hold an apartment

until completion of the application pro-cess. A problem arises, however, when the individual does not enter into a lease agreement and he or she demands the deposit back. Th e following article will address this issue.

Management usually requires a pro-spective renter to pay an application fee to cover its expenses. Th is includes

credit, rental history and criminal re-cords checks. Additionally, a landlord may require a deposit to hold a partic-ular rental unit. In other words, man-agement takes a specifi c apartment off the rental market and reserves it.

Written AgreementOne of two things may occur which

results in the resident’s demand for return of the deposit: the property ap-proves the individual and he or she de-

cides not to move in; or the property denies the person residency. In either scenario, management can protect itself by implementing a written agreement that specifi cally addresses the deposi-tion of any monies paid.

Th e “Deposit to Hold Agreement” section of the AMA Rental Application states in part:

In consideration of management holding the apartment for me, I agree to pay a holding deposit of $_______ and a $________ non-refundable fee for administrative processing. Th e holding deposit is refundable if my Application is not approved (14 day delay required for bank clearance of check). I may can-cel this agreement and be refunded my holding deposit (14 day delay required for bank clearance of check) by notify-ing you of my decision to cancel by 5:00 p.m. on _____________, 20____.

Your Community Network – Doorway to Delivering New Dollars from Digital Services

By Eric Markow

Your renters not only want to live on your properties, they also want to live on the Internet and

the World Wide Web!In a recent article, we talked about

the increased value and desirability that implementing wireless (Wi-Fi) inter-net access in each of your units would

bring to your properties. Wi-Fi services would make your properties more effi -cient, and more in tune with the needs of today’s renters – whatever their age.

Presto – You’ve Built a NetworkWhat we haven’t talked about is the

fact that implementing Wi-Fi in all of

your units actually builds your own private community network -- a sort of mini-internet all your own!

So now that you have this network, what can you do with it?

5Extraordinary

Ways toMarket and

LeaseApartments

by Th eresa Bradley-Banta

When it comes to market-ing and leasing apart-ments Craigslist might be

your best source—but it’s not the only game in town.

Zillow.com, HotPads.com, Rent.com, Apartments.com, your own website and social media can all generate good traffi c. But have you explored new re-sources and strategies lately?

Try these ideas for great results:

1. Market Where Your Target Rent-er Hangs Out

Take a minute and think about where your target market likes to spend their leisure time. You can fi nd some unusu-al places to advertise. Oft en these are places that your competitors haven’t thought of like:

• Movie theaters (place an ad during the “pre-show entertainment”).

[email protected]

continued on page 8

2

Rental Housing Journal Arizona

Rental Housing Journal Arizona · February 2016

14 Points That Must Be In Your

I recently received the following re-quest from a multifamily investor:

“Can you please send me a marketing plan post purchase for an apartment building I am buying (my bank wants this)?”

This is a fantastic question! When you approach a bank to finance your apartment deal they most assuredly will want to see your apartment build-ing leasing and marketing plan. With-out a solid strategy you risk losing fi-nancing and you’re more than likely ready to walk into apartment building ownership with blinders on.

Let’s make sure you’re ready with a great plan and strategy from day one of ownership.

As an apartment building owner you have to be proactive. In order to succeed you must:

• Know exactly how you will market and lease units.

• Have a solid understanding of your market and your competition.

• Put the best team in place.

• Prepare an accurate budget forecast.

by Theresa Bradley-Banta

Apartment Building Leasing and Marketing Plan

All before you buy the building. This information will help you finance your deal and it will most likely help you negotiate a better deal with the seller. Here are 14 points to include in your planning:

1. Your team: It’s time to show that you have best around

If you are light on experience or you are a seasoned professional real estate investor this is your opportunity to let your lender know that you have the best multifamily real estate team in the busi-ness ready to step in the day you close

on the deal. Your list should include:

• Your third party apartment build-ing property manager. Some lend-ers may make this a requirement of your first year of ownership—they will insist you bring in profession-al management while you get your feet wet.

• Your leasing agents. If your prop-erty has vacant units you may de-cide to bring in a professional leas-ing team for the first few months of ownership.

• Your renovation and trade con-tractors. These professionals should have experience at the apartment building level. Be sure to point it out.

What experience does each team member bring to the table? Don’t hold back. Tout their talents and experi-ence to the skies. Be sure to include the company name, contact person and telephone number for each member of your team.

2. Responsive apartment building maintenance

A top-notch maintenance team goes a long way in keeping happy residents. Promptly addressing maintenance re-quests equals less resident turnover. Describe your team and their experi-ence. Put a plan in place for mainte-nance request response times and your method of communication with resi-dents. Include the details in your mar-keting plan.

3. Apartment unit rent and con-cession comparables

Describe what your competing mar-ket is doing and how you stack up to-day. You must know the rents that your submarket competitors are receiving for comparable apartment units and also if they are offering concessions or discounts in order to rent units. Include your research in your report.

If your units are currently leasing below market rent address this in your report. Describe how you plan to make changes—in both rents and conces-sions—in order to attract new residents to your apartment building. This may involve:

• Bringing in a new professional and seasoned management team.

• Updating apartment units.

• Offering creative concessions and incentives to new and existing res-idents.

• Creating greater curb appeal to improve marketing.

• Establishing a new leasing and marketing plan and,

• Hiring a temporary leasing agent in addition to the leas-ing services your management company provides.

4. Creative concessionsIf your market is giving away free or

discounted rent in order to lease units, you and your management team can come up with alternatives that don’t cost you in property income. For exam-ple, if you charge for parking and your spaces are not full, give your resident free parking for three months instead of lowering the rental amount.

5. Current and prospective resi-dent incentives

Entice your current residents to get the word out about your apartment building and apartment units to their friends, family and coworkers. Create an incentive for prospective residents to help lease apartment units in lieu of offering them other concessions such

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3



Incremental Revenue from Your Community Network

Th e fi rst thing you need to know about your community network is that it makes money for you. You become your renters’ Internet Service Provider (ISP), and incorporate the added value of internet access and related services into their rent. Implemented with a full-service partner like Dual Path, your renters will discover move-in-ready, easily accessed Wi-Fi from day one, plus ongoing technical support that is readily available at all times.

Wi-Fi based security systems are rev-olutionizing the personal security in-dustry. Far from the “burglar alarms” of yesteryear, these new state-of-the-art systems require no unsightly wires or separate network, and can protect ev-erything from doors to windows to mo-tion in and around the living unit. Your renters will benefi t from the ability to check video from cameras deployed strategically throughout their apart-ment or home via their smartphones. In an emergency, renters could even allow the police temporary access to these cameras.

Digital Telephone is growing in pop-ularity because it’s far less expensive than traditional landlines, and far more feature-rich with video-calling, voice-mail that is transcribed and emailed to the recipient, detailed activity and billing reports and much more. Your premises Wi-Fi network by Dual Path eliminates any costs to adding 4G and LTE coverage to your property, thus providing your renters with worry-free calling that is oft en totally free.

Alternative energy initiatives take full advantage of your community network infrastructure, providing you and your renters substantial savings on energy costs and enabling new technologies such as solar energy generation. Smart Home technologies automatically turns lights on when needed, off when they are not, and can even adjust thermo-stats to save energy when the premises is unoccupied. Additionally, leakage sensors, carbon monoxide, fi re, and other detection devices can be built into your network giving your property and your renters multiple layers of safety.

Maintenance Services and Property Administration also benefi t from your community network. Property-wide coverage enables video chat tours of the property or a particular unit for po-tential residents who may not have the opportunity to visit in person. Work Orders can be opened and sent to de-vices used by your maintenance staff to improve operational effi ciency.

Home Automation – Off er More Than a Home, Off er a Smart Home!

A visit to your local do-it-yourself superstore will show you that home automation is becoming the “next new thing.” People, including your renters, want the ability to switch lights and appliances on and off , adjust their ther-mostat, lock and unlock doors, and do much more remotely by using their per-sonal mobile phone or tablet.

Home automation protects too! Sensors are now available to provide early alert of moisture, leakage, fi re, carbon monoxide, as well as possible

intruders and unexpected motion on the premises.

Home automation also saves money! By pre-setting times when lights, appli-ances, and other devices and services turn on and off , the cost of electric bills, gas bills, and other utility charges are dramatically decreased. Great for your renters if they’re paying for utilities. Great for you if they’re not!

By installing Wi-Fi compatible equip-ment, you can off er your prospective renters more than a new home. You can off er them a new Smart Home! Conve-nience, control, and peace of mind will be available on their own mobile device of choice.

Opportunities Continue to EmergeWe’ve all seen the meteoric rise of

new Internet services. Now you can put all of that innovation to work for you on all of your properties by building your own Wi-Fi community network and us-ing it to off er and deliver an ever-wid-ening array of services and products.

Finding Your PathDual Path specializes in implement-

ing premises networks right on your properties. Our comprehensive services connect each of your properties to the

Internet, allowing you to become the source of internet-based services for each of your renters, while ensuring them top quality Wi-Fi equipment in-stalled by Dual Path’s experts in each of your units.

Our services are truly comprehen-sive because they include the ongoing maintenance of your network and the all-important highly responsive cus-tomer support your renters expect from their Internet Service Provider. Your renters will be thrilled with how easily and completely they enjoy life on the in-ternet from the fi rst moment they step into one of your properties enhanced by Dual Path.Eric Markow is Chief Technology Offi cer of Dual Path, a provider of high speed property-wide WiFi services. Dual Path’s customers include MDU and senior living communities who en-joy fast, reliable connectivity, delivered with old-fashioned customer service. Dual Path’s unique revenue generating model allows prop-erty owners to leverage their “Internet real estate” to maximize profi ts, increase resident satisfaction and retention, and increase prop-erty value. Headquartered in Phoenix, Arizona, Dual Path off ers property-wide WiFi, Gigabit Internet and WiFi calling solutions to proper-ties and businesses coast to coast. For more in-formation, visit www.dualpath.net or contact 1-800-468-6851.

Your Community Network ...continued from page 1

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How Are You Helping Your Prospective Residents Who Are Searching For

Trustworthy, Honest Content About Your Property Management Business?

How are prospective tenants fi nding out about your rent-al properties online, and what

you off er and how you diff er from the competition? What are you off ering to retain your current residents?

While many talk about Google and the importance of search engine opti-mization, there is something just as im-portant that is frequently overlooked.

If your potential, or current apart-ment residents fi nd your website and stop by for a visit, are you providing helpful, useful rental information for them to help make an informed deci-sion on where to live or what your com-munity has to off er? Or, are you just pushing at them what you want to sell?

Th e world has changed and the key is the quality of the rental content you are proving on your website for your visi-tors. Th is is key for two reasons.

First, attention spans are short and you only have a few seconds to grab their attention. Th e message they see should be about them, and what they need or are looking for. It is about them and what problems they are facing. It is not about you and touting your business.

Second, many websites are still using the old broadcast-style message that fo-cuses on one message to all. However the web has fragmented audiences and you need to focus on how each individ-ual is diff erent and has diff erent needs. Th e one size fi ts all message pushed in traditional sales language is no longer as eff ective.

People are tired of these broadcast type messages that interrupt them with a sales pitch. Th ey are tuning these

messages out. Th ey want to learn and investigate the options for themselves , and they have, at their fi ngertips, the ability to search and compare on their own. Your goal is to be a part of their search. You may not win every time, but you want to be on the playing fi eld when they are searching. And, more than ever, it is not what you are saying about yourself, it is what others are say-ing about you.

Research from CEB shows at cus-tomers are 57% through the buying decision before they want to talk to a sales person.

Help Not Sell To Engage CustomersTh e goal of your website, and the con-

tent you have there, should be to attract, engage and delight customers online. Th e stronger the content for your target audience, the more visitors you will at-tract. More visitors mean more sowings and more showings mean more rental applications and lower vacancies.

Th is is the core of what you have probably heard called content market-ing. Th e key is having great content, at the right time for the right audience.

You should know your audience and what their “pain points” are around when it comes to fi nding an apart-ment or rental home. You are the ex-pert and talk to renters all the time. Listen to what they are telling you and asking you.

Th en, you can design a core of great content about your rental properties and begin engaging your customers.

How Will I Know If This Works?Once you have the key content in

place, you want some way to measure engagement with your online audience to see if this is working.

One of the best ways to measure this is by adding an inbound marketing program to your content.

Sometimes people confuse content marketing and inbound marketing. Th e important thing is to do both. Inbound marketing is a great way to measure the ROI of your content marketing.

For instance, if you create a great piece of content that helps your po-tential or current residents solve their problem with content you create, they will be more than willing to give you their email address in exchange for that great piece of content.

You create a form for them to fi ll out which they will gladly do if the content you are providing is so valuable they might even pay for it as author Jay Baer says at convinceandconvert.com.

Th en, using this core piece of content, you can create additional marketing spokes around this hub which include email newsletters, social media and more for your apartment communities.

Understanding ExpectationsIf you decide that inbound market-

ing and content marketing are right for your property management business – or maybe you are already using some form of it – understanding expectations is a critical factor.

How are you going to measure suc-cess? What metrics are you going to track and how are you going to opti-mize for those metrics? Th e wonderful thing about digital marketing is that you can track many, many things and easily get lost in the trees and not see the forest.

What are the metrics that matter to your rental business? Defi ne the key ones and then track and watch and see what is working. Frequently it does not work right in the beginning and you will have to tweak the message to get the right fi t with your audience.

Th ese are just a few key points to consider in your inbound marketing program.

By John TriplettSpecial Editorial ContributorRental Housing Journal off ers inbound and content marketing services to property man-agement companies and industry service pro-viders. For more information, email [email protected]

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continued on page 11

Inherit A House?How To Rent It Out.

By Cliff Hockley President, Bluestone & Hockley Real Estate Services

We manage properties for homeowners with many unique circumstances but

inheritance is one of the most common reasons why people choose to rent out a home. Th is is the story of a typical case.

The InheritanceJayne was in her late 40’s when her

grandmother died. When Jayne met with the attorney to review the estate issues he gave Jayne the keys to the house her grandmother had lived in for forty years and a copy of the prop-erty deed. Th is was something she had

never expected. She had decided early in her career not to invest in real es-tate. She wanted nothing to do with the property taxes and maintenance head-aches, and now she had this old house to contend with.

She asked the attorney what others have done with houses they inherited.

Th e attorney frankly told her that she could sell it, rent it or donate it to a charity, but he advised Jayne not to make any decisions until she walked through it fi rst. “It was not a bad in-vestment,” he said, “It’s insured, owned free and clear, property taxes are cur-

rent and it’s well maintained, you can’t ask for much more than that.”

The DecisionHer grandmother had lived in an

older one level brick house. It was 1800 square feet with three bedrooms and two bathrooms, a two car garage and a small yard. She had already begun feel-ing sentimental about it during the es-tate sale when a young man approached her with a business card. He intro-duced himself as the neighborhood realtor and gave his condolences about her grandmother’s passing before swift -

ly changing the subject to ask her if she had put the house on the market yet.

Jayne was taken aback. Th is guy was rude and pushy and she wanted to get rid of him. Purely in reaction to his of-fensive demeanor Jayne told him with confi dence that she had already decided to keep it as a rental. Th at was how she made her decision.

But she knew nothing about being a landlord. She decided to start by con-sulting the attorney to fi rst understand the laws involved.

He sensed she might be in over her head during the conversation, “You may want to hire a property manager to help you,” he suggested.

Jayne, a successful businesswoman, saw no reason why she couldn’t handle it herself.

Renting the HouseOnce Jane made up her mind, she

toured other house rentals in the area in person and on the internet to get a sense for market rents and conditions. Based on her research she decided to upgrade the house with more modern colors and appliances. Since the car-pets were in good condition she just had those cleaned. She also received a refer-ral from a friend for a good handyman to make some minor repairs.

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Cancellation aft er this time will re-sult in forfeiture of my holding deposit. I must pay rent on or before my “rent start date” or my holding deposit will be forfeited and the apartment rented. (I understand that Management and Management’s employees are agents and represent the owner.)

Without a written agreement, the resident could demand return of all non-refundable monies and argue there is no agreement allowing management to keep any funds. Th e landlord would have to argue that the money covered potential lost rent for taking the rent-al unit off their list of available apart-ments. Th is could lead to small claims or other legal action with the outcome decided by a court of law.

To fully protect yourself and to avoid confusion or misunderstanding by a prospective resident, always use a writ-ten hold deposit agreement.

Another situation involves use of the holding deposit agreement but forfeits all the deposit if the property approves the resident but he or she decides not to move in. Th is is similar to a lease-break or early termination fee in which the renter pays a penalty charge for not fulfi lling the lease agreement.

One fi nal suggestion is for the land-lord to label the deposit as a holding

deposit, not a security deposit. Th e prospective resident could argue that if management calls it a security de-posit, it must refund the money if he or she does not sign the lease. Th e theo-ry, or argument, is that if management lists the money as a security deposit, it then becomes part of a lease. If this oc-curs, a landlord cannot forfeit or keep the deposit.

A.R.S. § 33-1321(B) states that unless management lists a fee or deposit as nonrefundable, it shall be deemed re-fundable. If it is nonrefundable, man-agement must state its purpose in writ-ing. Th e defi nition of a security deposit under A.R.S. § 33-1310 is money given to assure payment or performance un-der a lease agreement.

Perhaps the better way to handle these situations is to designate the money as a holding deposit and not a security deposit. However, this does not mean someone may fi le a lawsuit if he or she does not get a refund of the holding monies however stated in the application or holding agreement.

Andrew M. HullHull, Holliday & Holliday, PLCwww.doctorevictor.com602.230.0088

Application Deposit Disputes ...continued from page 1

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Apartment Leasing and Marketing Plan ...continued from page 2

DEAR MAINTENANCE MEN: 8. Annual income and expense budget forecast

Provide a 12-month spreadsheet budget for income and expenses. Th is spreadsheet will include all income and all expenses for the property from day one through the next 12 months. You should also include all planned capital expenses that exceed normal property operation requirements such as major building system repairs or replacement.

Your commercial property manage-ment company can prepare an annual budget. Use it not only to project future cash needs if any, but also to monitor your property operations. If your in-come falls short of projections or your expenses exceed projections you have a baseline to work from when you ad-dress the issue with your property man-agement company.

Read Creating an Annual Operating Budget for Your Multifamily Property to understand the benefi ts of preparing an annual income and expense forecast.

9. Additional sources of incomeIf you have untapped sources of in-

come describe them. For example you might be able to rent out unused storage space, lease unused parking spaces, in-crease laundry coin operation amounts or implement a utility reimbursement plan (commonly called RUBS) where your tenants will pay for their utility usage. It is not unlikely that the current owner has overlooked additional sourc-es of income. Let your lender know you have the expertise to increase revenue.

10. Advertising strategyHow and where will you advertise

units for rent? Make a list that includes:

• Online rental sites.

• Newspapers.

• Local merchants.Clearly defi ne your marketing bud-

get, frequency of posts/ads/notices, sys-tem for ad response follow-up and pro-fessional appearance. Will you have a designated leasing agent? If so, include that individual in your list of team members with appropriate contact in-formation.

11. Property curb appealAn apartment building with great

curb appeal is easier to rent. By in-vesting a small amount of your time and renovation budget you can change the entire look of your property. New shrubbery, signage, blinds and land-scaping can have a major impact on your ability to attract new residents.

12. Local apartment market “sizzle”

Market sizzle comes in all shapes and sizes. Your submarket renters might want free WiFi, wood fl oors or in unit washers and dyers. Study your local apartment market and let your lender know that you can give pro-spective renters what they’re looking for. Plan for these expenses in your renovation budget.

as discounted rent. For each new lease signed give the referring resident a $25 gift certifi cate or other attractive bo-nuses and incentives.

6. Current vacancyProviding a current rent roll and his-

torical fi nancials will be a requirement of getting fi nancing. Your lender will ask for these documents and they will be fully apprised of any vacancies at your property. Don’t shy away from de-scribing where you are today and where you plan to be in 6 months, 12 months, etc. Let your lender know you have a solid plan for leasing and lease renewals.

7. Upside to current rentsA lender does not want to hear that

you will be blazing new trails with the rents you plan to get. Do not be tempted to claim you can rent units for amounts that are far above what the apartment market receives—unless it’s true. And if you purchased a property that cannot command current market rents you’ll need to address how you plan to make appropriate changes in order to catch up to your local apartment market.

On the other hand your lender will love to hear that your rents are below market and that you can easily catch up to the competition. By having sol-id market research on the comparable rents in your submarket you will be able to address your plan knowledgeably.

13. Current leases and lease expi-ration dates

Review all current leases and demon-strate a solid understanding of your current resident status and lease re-newal dates. Have a plan for staggering lease renewals for all new leases.

14. Local police department prem-ise history

Most police departments keep a log of all visits to a property. Th is is typical-ly called a premise history. If it’s clean use it in your marketing. For example you might advertise a “Safe, secure, qui-et building.” A good report speaks vol-umes about the neighborhood in which your property is located.

Theresa Bradley-BantaFounder + CEOTheresa Bradley-Banta writes, speaks and men-tors on investing in real estate while avoiding the pitfalls that plague many investors.Over the past ten years she has owned or had primary ownership roles in single-family rent-als, multifamily properties and international single-family development projects from $50K to greater than $9M. Theresa has performed due diligence on hundreds of multifamily prop-erties and is a consultant to clients with an ag-gregate portfolio value in excess of $150M.

9



DEAR MAINTENANCE MEN: By Jerry L’Ecuyer & Frank AlvarezDear Maintenance Men:

I own a small apartment building with an average amount of landscaping around the property. I have a garden service that comes each week; they cut and edge and do what their supposed to do, I think, although they don’t spent a lot of time at the property. What should I expect from my landscapers or garden service?

John

Dear John:We have a minimum list of items

that must be completed at a property. If these items are skipped or ignored, we feel the property will suff er. On a week-ly basis, we expect the garden service to provide the following:

1. Cut the grass.2. Edge the grass.3. Pull out weeds between the side-

walk cracks, walk around the building, including the alley.

4. Turn over the dirt in all the fl ow-erbeds each week.

5. Pick up any trash around the property.

6. Broom, blow or hose down the walkways.

7. Turn on the sprinkler lines, check for clogged heads, bro-ken lines etc.

8. Check that the timer is set properly.

9. Cut, trim and thin any shrubs or bushes.

10. Maintain communication with the owner about problems or im-provements

Th e above list takes time, half hour minimum at a small property. If your landscape gardener completed the list on a weekly basis, you could very well have the best-looking property on the block! Which means higher rents … if you add color fl owers … even higher rents!

Finding a landscape gardener to do above list consistently is not easy. Ask your local apartment association for recommendations or look in your neighborhood or city for a property with outstanding landscaping and ask who the gardener is. Have him give you a quote according to your “list”. Keep in mind a landscape company or gar-dener who give the above service will charge more than a “blow and go” gar-dener, however your property will re-fl ect their above average service.

Dear Maintenance Men:My building gets hit by graffi ti on a

regular basis. How can I stop this curse? Jim

Dear Jim:We understand. Our company main-

tains several properties that attract graffi ti like a magnet. Th ere are several solutions that may help.

1. Painting over graffi ti as quickly as possible will help deter future vandalism. We recommend paint-ing over the same day or within 24 hours of the graffi ti appearing on your property. Graffi ti vandals like to advertise. By removing the graffi ti quickly, the less recognition the vandals will receive, thus mak-ing your building less attractive to graffi ti taggers.

2. Install lighting in areas prone to graffi ti. Motion activated lights also work well to deter vandals. If you have a sense of humor, install motion activated water sprinklers.

3. Planting vines or bushes along a wall or the side of the building is a good long-term solution. As the landscape grows, it will make it more diffi cult to graffi ti your walls.

Dear Maintenance Men:I have an opportunity to buy a small

power snake for cleaning out kitchen & bathroom drains. At the rate my ten-ants block their drains it should pay for its self in no time. Is this a good idea?

Dale

Dear Dale:We understand that almost any ex-

cuse is a good reason to buy a power tool. But… most bathroom and kitch-en drains can be cleared with a three-foot hand snake. Th e tub or shower will typically have a hair stoppage just past the tub shoe and the bathroom sink will have a toothpaste and hair stop-

page in the trap before the wall. Th e kitchen sink will typically be stopped on the garbage disposal side because of improper usage of the disposer. If both sides of the kitchen sink are blocked, then it may be necessary to use the power snake.

Power snakes can be very dangerous. Most operate with a ¼ to ½ horse mo-tor, which packs quite a punch, espe-cially if your fi nger or arm gets caught! If you buy this snake, we highly rec-ommend that you get some training on your machine. Power drain cleaning is very much an “art” when done well. Knowing when you hit the stoppage and when the snake is snagged comes with experience. A broken snake cable in your drain system will be far more expensive than simply calling an expe-rienced plumber when needed. Anoth-er thought is; most kitchen stoppages are caused by grease. Your snake will only temporarily clear the stoppage. Getting a company to “Hydro-Jet” your drains every year may help cure your chronic grease stoppages.

Bio:Please call: Buff alo Maintenance, Inc for main-tenance work or consultation. JLE Property Management, Inc for manage-ment service or consultationFrankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075Certifi ed Renovation Company Websites:www.Buff aloMaintenance.com & www.Con-tactJLE.comwww.Facebook.com/Buff aloMaintenance

Landscaping, Gra� ti and Power Tools

PublisherWill Johnson – [email protected]

Designer/EditorKristin Flores – [email protected]

Advertising SalesWill Johnson – [email protected]

Terry Hokenson – [email protected] Surratt – [email protected]

Rental Housing Journal Arizona is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in

Investing & Real Estate Investor Quarterly

w w w . r e n t a l h o u s i n g j o u r n a l . c o m

The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

10



5 Extraordinary Ways to Market ...continued from page 1

• Concert venues.

• Ridesharing apps such as Uber and Lyft (enormous advertising poten-tial).

• Local schools and universities.

• Coffee shops (put your property ad on cup sleeves).

• Bike sharing stations.For example, Denver B-cycle, which

was the first large-scale municipal bike sharing system in the United States, is a hugely popular program especial-ly among young urban residents. This wouldn’t happen to be your target mar-ket would it?

2. It’s Time to Update Your Curb Appeal

There’s nothing worse than seeing prospective renters keep driving right on by at 30 miles an hour after a quick glance at your property. Five seconds is all it takes to make a negative, and last-ing, first impression.

Curb appeal is one of the most im-portant things in property marketing and leasing. Presenting an exterior that meets your target markets’ standards must be one of your biggest priorities.

You can develop incredibly cre-ative ads that draw potential renters in droves yet lose them before they reach your front door if your apartment com-munity has no curb appeal.

Here are some inexpensive ways to make your property more attractive and welcoming:

• Touch up the paint.

• Add outdoor planters that are stuffed full of colorful flowers.

• Add a canopy.

• Install inexpensive landscaping.

• Put up modern signage (yes, may-be it’s time to get rid of your old dated signage).

• Offer mobile friendly ways to con-tact your leasing agent.

And don’t forget the people who walk by your property every day. If they’re walking, chances are they live in the neighborhood.

It’s a great idea to hold open houses at your property—especially if you have fantastic curb appeal. Put out a sand-wich board with balloons and grab the auto and foot traffic on busy weekends.

3. Develop Mutually Beneficial Re-lationships With Local Merchants

When a local merchant learns that you will promote their business to your community they will embrace the idea of cross promotion. Local employers are especially happy when their em-ployees live in close proximity to work. Proximity to work contributes to less tardiness and fewer missed days due to bad weather.

Offer to waive your application fees for employees of participating mer-chants.

Other ways to support your local merchant in exchange for free advertis-ing are to:

• Include coupons or flyers of the local business in new resident wel-come packages.

• Put a “Welcome to the commu-nity! Enjoy dinner (or a discount etc.) on us!” note in all new resi-dent packages.

• Offer local merchant dis-counts or gift cards to new and renewing residents.

• Offer a referral fee to merchants.

In exchange your local merchant can:

• Post your apartment building ad on notice boards or shopping carts.

• Include your ad in company flyers and mailings.

• Provide word of mouth advertising.The extra effort spent in meeting your

local merchants can be rewarding on both a personal and financial level.

4. Send a “Feel Good” Letter to Your Current Residents

Your current residents can be the most influential marketing group you have around. Sending occasional thank you letters to your residents will help establish a sense of community.

But it goes beyond creating hap-py feelings. When your resident loves where they live they will tell their friends and family. Establish a referral incentive program at your property where each referring resident gets a gift, bonus, or rent discount.

Some effective ways to get the word out are by:

• Hosting a resident referral party.

• Sponsoring a community yard sale.

• Holding open houses with tours of the property.

When you receive a compliment from one of your residents be sure to ask them if they would be willing to share it online.

5. Pick the “Right” Property Man-agement Company

Some property management compa-nies have amazing branding. Find out who they are and hire them—or watch them closely so that you can model their branding. These are the manage-ment companies that offer the “cool” factor to their residents.

Sometimes the branding is as simple as offering a “green” element to living at their communities. For example, re-cycling programs are a very inexpen-sive and desirable service to offer at your property.

You can create your own buzz and cool factor by offering something as simple as pre-leasing. Include text such as “Now Pre-Leasing for Large Two-Bedrooms” in your online adver-tising and on your property signage.

It may not seem like a big deal but pre-leasing can tell prospective res-idents that they are with a proactive management company. It also implies that your property is a desirable build-ing to live in because people want to sign leases months before they are able move-in.

Theresa Bradley-BantaFounder + CEOTheresa Bradley-Banta writes, speaks and men-tors on investing in real estate while avoiding the pitfalls that plague many investors.

Over the past ten years she has owned or had primary ownership roles in single-family rent-als, multifamily properties and international single-family development projects from $50K to greater than $9M. Theresa has performed due diligence on hundreds of multifamily prop-erties and is a consultant to clients with an ag-gregate portfolio value in excess of $150M.

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Inherit A House? ...continued from page 6

Once the place was up to par Jayne placed an ad online and within fi ve minutes started receiving calls about the house. A few roommates wanted to see the house that night. She didn’t even have any application forms!! She quick-ly printed out a form she found online but when they came she wished she didn’t have any to give them. Th ey were fi ve college students from the school down the street. One of them quickly asked her what application screening criteria she used. Another wanted to see the lease ahead of time. She hadn’t printed anything other than the forms out yet so she asked if she could e-mail it to them the next day. Th ey didn’t mind. Th ey liked the house so much they fi lled out the forms right there to be the fi rst ones in line.

Reviewing the applications aft er they left Jayne noticed that only two of the students had any real employment history and two never had any jobs at all. She doubted that these optimistic students could aff ord the rent for long. However, she remembered the attor-ney’s warning about the rules prevent-ing tenant discrimination and called her local landlord association for help.

She had found the application form through the landlord association web-site and was curious what other re-sources they could off er. She found the regional not-for-profi t organization had plenty of good information. In addi-tion to sponsoring monthly educational dinner meetings they had a newsletter providing tips for improving property management, sponsored annual train-ing seminars, and had an extensive

mentor and vendor referral program. From them she got linked to a cred-

it checking company and discovered that the roommates were not qualifi ed to rent the house. She learned what screening criteria she could legally use and was able to get the correct rental agreements just in time for the next ap-plicant to pass all her screening criteria.

Problems and SolutionsShe thought she found the perfect

tenants, young, up and coming, and eager to start their family. Within a year they had their fi rst baby. Th ey sent Jayne the birth announcement and she was so proud she had off ered them their fi rst home. But aft er 24 months she no-ticed the rent coming later and later and then not at all. Th e husband said they had struggled since his wife quit work aft er having their son. Jayne sympa-thized for a while but eventually was forced to hire an attorney to evict them. Th ey left a fi lthy home, with some dam-ages, which her handyman charged her $4,000 to fi x. Only later did she realize his limitations included plumbing and he had overcharged her in attempt to fi x something he had little experience with. Just preparing the house for her second tenant turn was so painful that Jayne considered selling it aft er all.

Th en Jayne realized that she had something in common with her handy-man. She had her strengths and lim-itations. She was at the height of her career. Her employer had just off ered her a national account that would come with a boost in pay and lots of travel. She loved to travel. She loved hotels.

She loved her little high rise apartment where she didn’t need to worry about plumbing and landscaping. Wasn’t that the reason why she didn’t want real es-tate to begin with?

She also loved the gift her grand-mother had given her and decided to rethink her approach. She interviewed a series of property managers and de-cided that their expertise was worth the cost to take care of her home. Aft er fi ve years of renting out her grandmother’s home hassle free she decided to refi -nance it and bought a four-plex with the equity. Her property manager also took over management of that property.

Over a period of 20 years she man-aged to increase her portfolio to 20 units (her goal), and her cash fl ow to $7,000 a month which combined with her savings, healthy 401K and social se-curity benefi ts was enough for her to re-tire on and travel for pleasure this time.

12



Documents

Rental Housing Journal Arizona February 2016