Beautify Your Rental Property for Spring

As a Chicago property management company, and as Chicagoans in general, we typically get excited about this time of year with warmer spring weather coming our way.  With spring right around the corner there's no better time to spruce up your rental properties.  Landlords and property management companies are typically responsible for fixing up rental properties while on occasion residents will roll up their sleeves and beautify their rental themselves.  To prepare your rental property for the spring months consider a few of the following tips:

1- Add some flower boxes: If you're looking to beautify your rental and prepare for spring, why not get some flower boxes or even potted plants to give your rental a pop of color? If you don't have the time or ability to plant flowers, potted plants are an easy way to go.  Simply pick out your potted plant of choice, place it where you would like it to go outdoors and care for it over the course of spring and summer.  Flower boxes make for a nice touch outside of a rental property's windows and can be done relatively cheap.

2- Fix up trim: To make your rental property look like new again, fix up the trim surrounding windows and doorways.  If you have noticed your rental's trim having chips, scratches or yellowed paint a quick touch up is probably all that it needs.

3- New outdoor lighting fixtures: Perhaps your outdoor lighting fixtures are old or outdated, give them an update and invest in some new outdoor lighting fixtures.  Home improvement stores give plenty of options as far as the style and look of your outdoor lighting fixtures go.

4- Get crafty: There are tons of in-the-box types of outdoor features you can buy to spruce up your rental's outdoor space such as a pond in the box or a small bonfire pit.  Consider what you and your family typically do outside and choose features to add in from there.  The goal is to add ambiance and bring your outdoor space to life.

5- Purchase some outdoor furniture: If you have a little wiggle room with your budget this spring, invest in some great outdoor furniture.  If you can't afford brand new furniture, check out some resale shops and see what's available, you may be surprised.  Not all great furniture is brand new.  Consider fixing up some older furniture and making it look like new again with a fresh coat of paint or new outdoor-safe fabrics.  Furniture makes an outdoor space look cozy and inviting and is a surefire way to beautify your rental property for spring and even for summer.

Whether you are a landlord, property management company or tenant, there are some great ways to beautify your rental property to prepare for spring.  Have your own outdoor beauty tips you'd like to share?  Post a comment below.

Chicago Property Management Company
Chicago Property Management
Property Management

Getting New Tenants

Finding and securing new tenants is a part of a property management company's lifeblood.  If you are new to property management or just aren't sure what the best methods are for securing new tenants, then consider the following tips:

1- Doing some research: Before embarking on a quest to find new tenants, we suggest that you do some research to help identify who your niche audience is for your rental property. What is about your rental property that makes it unique?  Perhaps your rental property is all about going green and you have made modifications to the property to make it extremely eco-friendly, then this gives you an advantage to attract the kind of renter who insists on having a home that takes the environment into consideration.  The point is, to be successful getting new tenants you must figure out what it is about your property that will attract tenants and what kind of tenants your property is attracting.

2- Make new social connections: Finding new tenants for a rental property is often about who you know that can help you fill your vacancies, so making new social connections will certainly help any property management company find new tenants.  Business networking events are a great way to meet new people and can help you meet professionals who work in a similar industry that may be able to help you find new tenants.  Joining apartment or housing associations in your property management company's area is another way to build some new connections.

3- Your internet presence: Creating relationships with people via the internet is a great way to build rapport between your property management company and current tenants.  It also provides you with a relatively easy way to attract new tenants.  So maybe your not social media-savvy, then enlist a property management company staff member of yours to do some social media work. What should you be posting about and doing on the internet as a property management company looking for new tenants?  We suggest updating your website if it is outdated and setting up social media pages such as Facebook, Twitter, LinkedIn and perhaps even Google+  if you have not done so yet.  Use your social media pages to post updates about your properties, property management company, and your community.  Social media profiles give you the power to attract new tenants rather easily.

4- Referrals:  People today may not trust ads, but they certainly see value in referrals and testimonials, which is something you should take to heart when looking for new tenants..  Seek referrals as often as you can from current and even previous tenants with whom you feel have had a good experience renting from you.  Referrals or testimonials are wonderful additions to social media pages, websites and online review sites.

5- Make yourself the expert: Show what you know and make yourself into the expert in regards to property management and renting properties.  Making yourself the expert will show prospective tenants that you know what you are doing and that they would most likely have a good experience renting with you since you know what you're doing.  Establishing trust with prospective tenants is one of the best ways to get them to rent from you.  Write articles and submit them to relevant blogs or industry publications.  Speak at local colleges.  Do whatever you can to show what you know to help attract new tenants.

Have your own tips on attracting new tenants?  Feel free to leave us a comment below or contact us.

Keeping Tenants From Becoming Dissatisfied

As a Chicago property management company we strive to make our tenant's renting experience with us a pleasant one.  Renting should be a positive experience and a lot of times the way a landlord or property management company deals with situations will dictate how a tenant feels about their renting experience. Difficult or disgruntled tenants are typically not difficult immediately upon moving in, but a lot of times they can become difficult if their living experience is less than desirable.  How does a landlord or property management company handle dealing with difficult tenants and most importantly, how does a landlord or property management company keep tenants from becoming difficult tenants? Here are a few of our tips on keeping tenants from becoming dissatisfied:

1- Always stay professional: When a tenant comes to you, their landlord or property management company, with an issue they are looking to you for advice and for help.  Every issue a tenant brings your way is another chance you have as a property management company to truly shine and show your professionalism.  Conduct yourself and your business in a professional manner at all costs necessary giving tenants wonderful customer care and service.

2- Empathize with tenants: Tenants want to feel like their landlord and property management company understand their issues and concerns.  Empathizing with tenants gives you as the landlord or property management company a better perspective and understanding of what the tenant is feeling in regards to an issue they are facing.  Tenants want to know that their landlord or property management company understands their issues and concerns and is willing to help.

3- Do what you say you are going to do: When a tenant goes to their landlord or property management company with an issue, they expect a resolution for the issue.  They don't expect you to fix the issue in a week, two months or a year from now, they are usually looking for an immediate fix.  Maybe you can't jump on the issue right away and fix it, but you can give your tenant an estimate as to when you will be able to fix the issue. What you say you are going to do and what you actually do need to follow one another closely.  Promising a tenant something and never doing it is a surefire way to make a tenant angry.

4- Resolve issues: When a tenant presents you with an issue, figure out what kind of outcome the tenant is looking for and do your best to get as close as you can to their picture perfect resolution. When you think you have come up with a good solution for the tenant's issue, ask them what they think about your resolution plan and do your best to resolve the issue.

5- Getting past the issue: Once an issue with a tenant has been dealt with and resolved, do your best to move forward from the issue.  There's no sense dwelling on an issue or an unpleasant experience with a tenant, in fact dwelling may make the relationship between you and the tenant worse in the long run.  You best bet is to move forward from the issue and let go of any negative thoughts or feelings to ensure that you can work with the tenant in the future.

Looking for tips on keeping tenants from becoming dissatisfied or have a few tips of your own?  Feel free to leave us comments below or contact us.

Chicago Property Management Company
Chicago Property Management 
Property Management Company

Reasons Why Residents Renew the Lease or Not Renew the Lease

As a Chicago property management company, we know that a big part of the longevity of a property management company is the tenants a property management company has.  For years property management companies have been striving to find creative ways to maintain tenants.  Whether it was incentive programs, resident events or rental perks, it has been done, but has it worked?  Have incentive programs, resident events and rental perks really kept tenants occupying their space?  Not necessarily.  Sure it has probably worked for some, but not for all.  What makes or breaks whether a tenant renews the lease?  And what causes tenants not to renew the lease?  Here are a couple reasons why tenants renew or not renew the lease:

1- Safety of the building: Who doesn't want to feel safe in the place that they live or work?  One of the key factors facing whether a tenant renews the lease or not has to do with the safety of the rental space.  Studies show that if tenants feel their building or space is safe they are more likely to renew the lease. Safety can come in the form of a doorman in the building or a well-lit building or area.  Outside of typical security features, tenants also want to see that the space they are renting is as safe as possible.  The windows should be relatively new and have a solid locking system.  The door should have a good locking system, which may mean the door requires not just a key, but perhaps utilizes a chain as well.  On the flip side, if a tenant feels that the rental they have been occupying is not safe they will probably look elsewhere to take up residence.

2- Quality maintenance: Quality maintenance services are probably the most pivotal reason why a tenant will renew the lease or not renew the lease.  Quality maintenance services typically revolve around service requests.  Service requests should be fulfilled in the correct order that they come in to the office.  Whether the service request comes in the form or an email, call or the resident stopping by the main office, the resident has a need they are looking to have filled by the landlord or property management company.  This is when the office team needs to step in and provide quality maintenance services.  How the office team handles the requests and fills the need of the tenant will make or break the tenant's satisfaction with the building, landlord and property management company.  To prepare, the staff should be familiar with most common issues associated with the rental property and know what questions to ask tenants regarding the problem or issue they are experiencing.  Most office staff should be able to verbally walk the tenant through solving the issue and if need be get the tenant the proper help to fix the issue.  Tenants simply want to know that their issue will be resolved in a timely, efficient matter and that the landlord, staff and property management company supports them and will get the issue solved.  Odds are if tenants feel they are receiving quality maintenance services and care from the property management company, landlord and staff they will want to continue renting their space instead of looking elsewhere.

3- Good customer service: Customer service is key to keeping tenants satisfied and renting.  Similar to receiving quality maintenance services, tenants want to feel that they can approach their landlord, property management company and building staff with any comment or questions, so the lines of communication need to continually stay open.  Tenants want to feel like they're appreciated and that the landlord, building staff and property management company care.  Giving quality customer service to tenants is another way to ensure that a resident will renew the lease, rather than not renew the lease due to poor customer service.

A major part of whether a tenant renews their lease or does not renew their leases hinges around how safe they feel their rental space and building are, quality maintenance and good customer service.  This means a property management company, landlord and staff need to stay on top of the ball and make sure all tenants are being cared for properly.  If you have comments or questions on anything property management related, feel free to comment below or contact us.

Property Management Pest Control Tips

Property management companies, landlords and tenants are all looking to avoid the same thing from happening to their property-- an insect invasion.  As a Chicago property management company, we know how important it is to keep insects out of all of our properties.  Whether you're a condo management company, retail management company, or an industrial property management company, it is important to take precautions to keep bugs out.  Here are a few tips on keeping insects out of your properties:

1- Clean out the gutters:  When was the last time you cleaned out your property's gutters?  If you know it has been awhile, consider doing a thorough cleaning of your property's gutters.  Mosquitos look for standing, stagnant water as that is where they breed, so keeping the gutters clean leaves no where for them to lay their eggs keeping them away from your property.

2- Utilize screens: If you are a tenant with a property that currently does not utilize screens for your doors and windows, we recommend speaking with your property management company or landlord to see if they would install some screens for the doors and windows.  Screens let air in, but help to keep bugs out.

3- Sealing cracks:  Sealing any cracks around windows and doors is another great way to prevent bugs from invading your property.  Do a thorough inspection of your property's windows and doors and see if there are any cracks that need to be filled in.  Roaches and other bugs are good at squeezing through cracks and small openings, so make sure all of the points of entrance are filled in.

4- Be careful where you put mulch:  Try to keep mulch at least 12-15 inches away from the foundation of your property.  Mulch can harbor mosquitos, ants and other bugs, which gives easy access to the inside of your property.  Keeping mulch away from the foundation will make it harder for insects to enter your property.

5- Take out trash frequently: It may seem like a no-brainer, but trash is a big contributor to insect issues for any home or property, so take out the trash frequently.  Make sure bags are tied tightly and any containers used should be cleaned out throughly and often.

If you are a property manager, property management company or tenant looking for more tips on keeping insects out of your properties?  Feel free to leave a comment below or contact us.

Property Management Newsletters

As a Chicago property management company, we strive to keep our tenants constantly in the loop.  Most property management companies work hard to do the same.  One of the best methods for helping tenants stay in the loop is through the use of a property management newsletter.  Newsletters are a great way to get information out to tenants in a regular and proactive manner.  Rather than having tenants searching for information about your property management company online, a newsletter puts the information you want them to read right in front of them.  No more having to go look online when the information they need is delivered straight to them.  Newsletters can be quite effective when they are done right.  So what kinds of information in a property management company's newsletter?  Here are a few tips on what to include in your property management newsletter:

1- Information that helps you market your property management company:  A property management company newsletter is a great way to market your property management company.  It is the perfect vehicle to show off your logo and branding.  A newsletter is a great way to get your company's name in front of a large group of people, which will include your current tenants and even potential tenants.  Whether you're a property management company, a condo property management company, or retail property management company, marketing is a part of how you spread the word about your company.

2- Tenant and company information: As we mentioned before, keeping tenants informed is essential when it comes to helping your property management company run smoothly.  Communication is always the key to being successful.  A property management company newsletter provides a great place to post your company and even tenant information.  When a tenant picks up a property management company newsletter they are expecting to see information the property management company and some information on tenants as well, so let them in on what you know.

3- Guest articles: Your property management newsletter should have some pizazz or area of interest, so featuring some guest articles written by tenants or staff could be a cool feature for your property management newsletter.  As much as a property management company newsletter should contain important information for tenants, it should also have a feature that is entertaining to keep tenants reading.

4- Announcements: If you have something you want to announce to your clients, a property management newsletter is a great place to do so.  A section of a property management company newsletter should be a feature spot just for announcements.  The newsletter makes for an easy way to send out an announcement.

5- Reminders: Sticking a calendar inside your property management company newsletter could make for a great spot to list reminders for your tenants.  Instead of sticking a post-it note on tenant's door, a newsletter makes for a professional way to give tenants reminders.

Looking for more tips on creating a property management newsletter?  Feel free to leave us a comment below or contact us.

Goals for Property Management Companies

Since it's January and the start of a brand new year, we thought we'd take a few moments to help out fellow Chicago property management companies, and really just property management companies in general, by sharing some ideas on potential goals to set for the upcoming year.  There's no better time then the start of a new year to come up with some new, fresh ideas and goals to help start the new year off right.  Here are a few of our Chicago property management company's goals for the new year:

1- Improve communication between your property management company and tenants: A great goal for any property management company for the upcoming year is to improve communication between yourself and tenants.  Communication is key when it comes to the relationship shared between a property management company and tenants, so keep the lines of verbal communication open to the best of your ability.  Let tenants feel like they can come to you with problems and show them that you will work hard to help them when it's needed.

2- Maintain a steady income: As with any property management company, your goal as a retail property management company, condo property management company, or industrial property management company should always be maintaing a steady income.  Make it your constant goal to oversee all daily operations of your property management company in the most cost effective way all while maintaining a steady income.

3- Increase rental property inspections: If you have been putting off rental inspections over the last few months make 2013 the year to get back on track.  Increase rental property inspections this year.  Make periodic scheduled visits of your rental property to ensure that maintenance and rental standards that were set forth originally in the lease are being maintained.

4- Increase rents appropriately and competitively: In a previous blog we discussed increasing rents and this year you will want to stay on top of the ball with your rental increases.  When it comes to increasing rent, make sure you are increasing your rental rates appropriately and competitively within the standards of the market.

5- Work on a marketing plan: If your property management company's marketing plan crashed and burned last year, consider your marketing approach for the upcoming year (if you haven't already).  Develop and implement a creative marketing plan that will allow for financial gain, company growth and stability.

What are your property management company's goals for the upcoming year?  Share a few with us in the comments below or feel free to contact us.

Staffing for Property Management Companies

While many property management companies may be hurting for income due to tight rental markets and smaller budgets, the need for staffing will always remain the same.  As a Chicago property management company, we know first hand how difficult things can get and we also know how vital it is for a property management company to get creative during tough times.  Even when things aren’t tough it will pay off to truly analyze your budget in regards to your staffing.  Do you work for or own a property management company, a condo property management company, retail property management company or industrial property management company that is in need of new staff members but doesn’t have the budget to hire new staff?  That’s okay, you have options.  Here’s a few of our staffing tips for property management companies:

1- Assess your current staffing situation:  Take your current staffing into consideration first.  As a property management company, condo property management company, or retail property management company where do you feel you are lacking in the staffing area?  What job duties or roles aren’t being completed?  What jobs seem to fall through the cracks month after month?  After a good analysis of your property management company’s situation you should be able to compile a list of duties that aren’t being done that need to get done.  This will help you see where you are lacking and where you need some help.

2- Talk to your current staff first:  After you have assessed your property management company’s current situation, you should have a good idea of what job duties aren’t getting done that need to be done.  Sit down and talk with your current staff and let them know the staffing issues that you see and ask them for their thoughts on what they feel should be done.  They may have some great advice and may be willing to help out and take on some of those extra duties.

3- Consider cross-training: Cross-training your employees could quite possibly be one of the most beneficial things you do with your property management company staff.  Your bookkeeper may have great customer service skills and might be willing to fulfill both roles very successfully, but you won’t know unless you try out cross-training.  While many members of your staff are probably specialists in certain areas, there is nothing wrong with a little cross-training, however you must be realistic.  Not all members of your staff are going to be great at multiple jobs, so keep that in mind. 

4- Utilize your connection: Ask your friends, family and acquaintances if they know of anyone that may be able to fill the role that you need filled.  You never know, they may have someone in mind that can help solve some of your staffing woes. 

5- Determine your wants and your needs:  You may want another hand on deck for customer service, but perhaps what you really need is another maintenance staff member.  Determine the roles that can easily be taken on by yourself or a current staff member and hire someone for a role that absolutely no one else can fill.  Budget-wise you will thank yourself in the end. 

Looking for more tips on staffing for your property management company?  Feel free to leave us a comment below or contact us?  

Benefits of Moving Your Payments Online

Property management companies, whether you own or work for a retail property management company, industrial property management company, or condo property management company, typically have to take in many, many checks.  With so many of us going paperless these days the idea of moving your payments online probably seems like a great idea, and truly there are a lot of benefits to accepting online payments.  Here are a couple of the benefits to moving your payments online as a property management company:

1- Better security: The number one reason why you should move payments online is for the added security.  Each time a check is handled, whether it is being handled by your property management company staff or the post office, the odds of a loss or security issue are greatly increased.  Today online payments have become the most secure way to receive payments and withdraw money from your accounts. 

2- Added convenience for tenants: Your tenants are busy, aren’t we all?  Why not make receiving payments more convenient for them?  As we all know, paper checks are on the decline these days with less and less people paying using checks. Tenants are looking for more convenient, innovative ways to make payments these days, so offering them an easier way to pay is sure to please them. 

3- Fewer trips to the bank: Online payments will save both you and your tenants from frequenting the bank.  Payments that you receive online are obviously automatically received by the bank, which saves you trips to the bank and improves deposit security.  It definitely is the paperless, greener way to go. 

4- More efficient: Going paperless and moving payments online is a more efficient way to accept payments from your tenants.  Independent studies have been conducted on online payments and have suggested that accepting payments from tenants online will eliminate the number of phycical paper checks you receive which can save your property management company $2 in handling costs.  May seem like a small benefit now, but that $2 can surely add up in the end.  

5- More accuracy: Moving payments online can reduce the number of payment errors that occur.  Electronic payments can save your staff a significant amount of handling time and help reduce any errors.

Have your own experience handling online payments as a property management company?  Feel free to tell us all about in a comment below. If you have questions about moving your payments online feel free to contact us.  

Gauging Tenant Satisfaction

As a property management company, one of your main goals is keeping your tenants happy.  Tenant satisfaction is a big part of what helps a property management company build a great reputation for themselves.  Ensuring that your tenants are satisfied is extremely important if you want your property management company to grow and truly prosper.  If tenants are unhappy, they may be inclined to leave, putting you right between a rock and a hard place.  Here are a few tips on how to gauge tenant satisfaction:

1- Tenant satisfaction surveys: Some property management companies will hand out a short, one page tenant satisfaction survey, similar to the one in the picture to the left.  Surveys could provide great inside information as to what your tenants are really thinking.

2-  Face-to-face chats: Speaking with tenants face-to-face is a good way to build a relationship with them and gauge their satisfaction.  A maintenance visit is a good opportunity to build a relationship with your tenants and engage in a face-to-face chat.  Ask tenants how everything is going and ask for some feedback.  You'd be surprised by what tenants will tell you and you never know, feedback may just give you some great ideas on how to keep your tenants satisfied.

3- Utilize print materials:  Sharing information with your tenants through print materials is another great way to gauge their satisfaction.  Consider leaving newsletters for them to read outside their door or even hand deliver the material.

4- Phone calls:  Encourage your property management staff to share their phone numbers with tenants so that tenants know who they can turn to if an issue arises.  Satisfaction will come from giving your tenants comfort knowing that if an issue comes up they know who they can turn to.

5- Create a tenant retention program: A tenant retention program is a great way to put forth effort to keep current tenants from moving out of your building.  All tenant retention programs are different, but typically they include things like identifying the tenants, services and amenities provided, and methods to measure success.  The plan needs to be a formal written document that has defined objectives and measurable goals for each tenant involved.

Looking for more tips on gauging tenant satisfaction?  Feel free to comment below or contact us.

Rent Collecting FAQs

In a previous blog we discussed how a property management company goes about setting the rental rate.  Whether you're a condo property management company, retail management company, or an industrial property management company, setting rent and collecting rent are the sustenance of your business.  This blog is going to switch the focus from the previous blog and instead of discussing setting the rental rate, we will answer some of the frequently asked questions tenants ask about the rent collecting process.

Q- How does a property management company typically collect rent?
A- While some property management companies may accept checks, most offer direct debit for tenants.  Direct debit tends to be a much smoother process and the old excuse "the check was lost in the mail" won't crop up.  The direct debit process lets you know if you have the necessary funds ahead of time, which is a nice bonus feature.

Q- What is the typical late fee?
A- The answer to this question will vary based on how the property management company decides to handle late fees.  Typically a property management company will have a late fee that falls anywhere from five to ten percent of rent.  Some companies will do a small daily fee as an incentive for the tenant to pay rent.  Whether you are working with a condo property management company, retail management company, industrial property management company, the primary function of a late fee always remains the same. The function is to get tenants back on track to begin making their payments as soon as possible.  The fees are meant to reflect the fee that a homeowner would receive in the event that he or she is late on a mortgage payment.

Q- How does a property management company handle delinquent payments?
A- Make sure you find a property management company that runs a tight ship and has a firm, but still fair, process on how they handle delinquent payments.  It is important that a property management company enforces all aspects of a lease, otherwise tenants will take advantage of the leniency.  Once a property management company figures out that a tenant has trend of delinquencies, they need to keep a close eye on the tenant to make sure they get back on the right track.

Q- How does a property management company deal with evictions?
A- A good property management company will have a well-documented process and will determine the very best course of action based on the circumstances.  They should have a checklist that they go through with you that explains the process they go through each time before deciding to evict a tenant.  As a tenant, you always want to make sure you are dealing with a company that acts fast and documents all of their actions.

Q- Do property management companies provide eviction insurance?
A- Eviction insurance is basically just a small monthly fee that insures the management company will pay for attorney and court costs that are associated with evicting a tenant.  This is not a service that is offered by all property management companies, but it sure says a lot about the confidence a property management company has in their tenant screening process.

Have a rent collection question that we didn't cover?  Feel free to leave us a comment or contact us.

Tenant Appreciation This Holiday Season

The holidays are rapidly approaching and whether you are a condo property management company, industrial property management company, retail property management company, or really any type of property management company, you are probably wondering what you can get your tenants as a holiday gift.  Showing appreciation for your tenants is always a good gesture to keep tenants happy, so the small gift is well worth it.  Here are a few ideas:

1- Decorate:  Why not bring a little holiday cheer to your rental properties and surprise your tenants with holiday decorations.  No need to go overboard, but a simple strand of beautiful outdoor lights could make for a very simple way to show your tenants that you appreciate them and want to help them celebrate the holidays.

2- Holiday Cards: A simple holiday greeting card is a great way to show your tenants you appreciate them this holiday season.  If your property management company has a logo and branding a holiday card would be a great way to incorporate that in.  Why not get a little marketing involved!

3- Gift Cards: A gift card is another great gift for tenants during the holidays.  Who wouldn't enjoy a gift card to a restaurant or store?  Whether it's a gift card for Jewel, Target, or the local pizza place, almost everyone can find a use for a gift card. For a property management company, gift cards are an easy gift to give to tenants.

4- Rent Discount: Consider giving your tenants a slight rent discount during the holiday season.  A rent discount is another easy gift idea for any property management company.  This is something all tenants are sure to appreciate during the holiday season.

5- Upgrades: Perhaps you are a property management company with only a few rental properties under your belt, then perhaps giving your tenants an upgrade is a good option.  It doesn't have to be an extravagant upgrade, it can be something as simple as new window treatments or a new ceiling fan.  Something more expensive such as a dishwasher, stove or refrigerator could be a good gift if you have found yourself having to repair those appliances for multiple tenants.

Are you a property management company looking for more gift ideas for tenants?  Feel free to leave us a comment or contact us.

Setting Rental Prices

If you are a property management company, condo property management company, retail property management company, or industrial property management company you are probably all too aware that setting a rental price can be tricky.  Setting rental income is vital for any property management company or landlord, so getting the price right is key.  If you don't charge enough or charge too much you could find yourself in a heap of trouble.  Mechanisms needs to be put in place to bring in the right amount of money each month to keep your property management company or business afloat.  When all is properly balanced, you can expect to achieve a great return on investment.  Before setting your rental's price, consider the following:

Look to the local market

For a property manager or landlord to successfully set a rental's price, he or she must have knowledge of the local market and perform solid research on the last 15-20 most recently rented comparables.  Nothing takes the place of thorough research using current market data.  Make sure you consider the following:

-Current rents being charged for similar properties in the area:  Say your rental property is a two-story townhome with 2 bedrooms and 2 baths, then look for similar properties in your rental's area that match up to your rental.  See where they are priced at and that will give you a good range of what to charge tenants for your rental property.

-The shape that your rental property is in:  You cannot expect to charge a fortune for a rental property if it is not in excellent condition, so price needs to take into account the shape the property is in.  Look at your recently rented comparable properties and most specifically look at properties that are in similar condition to your rental.  See where they are priced at and that may give you a good ballpark figure for your rental property.

-Current rental demand in the area:  What is the current rental demand in the area your rental property is in?  If there is high demand and your rental is in a great area, that will allow you to charge more for your rental.  If the demand is low you will have to adjust the price accordingly.

-How desirable the rental's neighborhood is:  Is your rental property in an extremely desirable neighborhood or just the opposite?  The more desirable the area, the more you can charge for your rental.   

What will be included in your rental's price? 

What will be included in your rental's price is somewhat of a personal choice.  Some tenants or property managers may prefer that electricity, internet, water and gas be included in the rent and others may prefer to keep that separate.  If you are looking for a great competitive edge, you may want to consider including these items in your rental's cost.  However, leaving those things out may save you in case your tenant uses those items excessively.  This way you would not have to directly pay for them.  It is certainly something to think about.

Looking for more tips on setting rental property prices?  Feel free to leave us a comment or contact us.

Using Property Management Software

Property management isn’t always the easiest career, but it can be incredibly rewarding and made easier with the right tools.  There is software available to help property managers stay organized.  Have you found yourself buried in a mountain of scribbled notes and paperwork?  Consider property management software.  Property management software is designed to keep you organized and help your property management company grow.   Software costs can range anywhere from $100-$10,000.  Yes, that's a pretty big range!  With such a wide range available any property management company can utilize software at a cost that is most comfortable.  Here are some things to think about before you decide to purchase property management software:

(1) What’s out there: Before you purchase property management software look into all the different alternatives and what each product can offer your property management company.  Choosing the cheapest alternative might not be the best route.  Look into what pricey products will give you and what the less costly products will give you. 

(2)Assess your needs long before you purchase: Long before you purchase you should fully evaluate your property management company’s needs.  What are the most important qualities your property management software must have?  Why buy software that is complete overkill?  There is no reason and you will end up paying a lot more for features you will not even use.  The software you choose should do the following as far as the basics go:

            -Post rent, management fees and late fees

            -Deal with bank checks and deposits

            -Can easily update your information

            -Has a good interface

            -Maintain a separate ledger for tenants and owners

(3) Watch out for hidden costs: Hidden costs are out there so buyer beware.  If you purchase software that is not user friendly you may find yourself paying for support you never planned on needing in the first place.  Hidden costs can potentially break your budget, so make sure you know exactly what you're paying for and how much you're paying before you purchase.

(4) Features: Don’t be fooled into thinking that you need the latest and greatest software on the market today.  There may be cheaper alternatives that get the job done perfectly, but it all depends on the features.  Do some research on what each product provides and compare that with the needs we mentioned assessing in tip #1.  See where the products stack up. 

(5) Be wary of technical support: While most property management software companies do not offer support some do.  However, you must be wary of any property management software companies that do offer technical support as there might be big conditions attached.  Some companies offer free support for a short period of time then charge begin charging a certain dollar amount per minute and that’s where support can really get expensive.  If you know you would like technical support for your product, look for a company that will provide support you can utilize and afford.  

Looking for more tips related to using or buying property management software?  Comment below or contact us.  

Handling a Tenant Eviction

Let's face it, handling a tenant eviction is never easy.  Property management firms all have to face tenant eviction from time to time.  Whether your company is a real estate property management company, an industrial property management company, a retail property management company or a condo property management company, most likely you will have to handle tenant eviction at some point in your career.  It's not easy, but there are effective ways to handle a tenant eviction.  Here are some tips on handling tenant eviction:

Always follow state and local laws: A property manager looking to evict a tenant must first make sure they are following state and local laws.  This sounds simple, but in reality there can be plenty of sticking points, which makes it difficult.  If a mistake is made in serving an eviction notice, the eviction case may be thrown out and then legally, the real nightmares will begin.

Serving an eviction notice: Whether your property management firm hires someone to serve an eviction notice to the tenant or you do it yourself, it may be difficult, but it must be done.  There are several kinds of notices to issue, some types include the following:

1- Non-Payment of Rent- If your tenant does not pay rent when it is due, then the landlord can serve a notice stating that rent is due and provide the tenant with a time frame in which the rent must be paid.  If the tenant is able to pay the rent (in full) within the time frame than there cannot be an eviction.  This is based off of the tenants actions.

2- Unconditional Notice- Some states allow an unconditional notice to be given to a tenant.  If the resident has broken or violated the rental agreement or is breaking the law, then the notice can be given.

3- Fixing a Violation- In many states, a property manager or landlord can give a notice stating that a violation of the rental agreement must be resolved.  This notice must specify a time frame in which that violation be resolved.

When is Eviction Possible?

There are typically three scenarios that make eviction of a tenant possible for a property management company and this includes:

A Tenant Fails to Pay Rent- If a tenant fails to pay rent, then this could be terms for eviction.  This depends on how many months the tenant has failed to pay rent.  If it has been a period 1-2 months then many property management companies will be more lenient and simply mandate the tenant make up for the missed payment by a decided date in the near future.

A Tenant Poses a Health or Safety Risk to Others- If a tenant poses a health or safety risk to other tenants in the same building, they too may be eligible for eviction.  Any tenant conducting dangerous  or illegal activity that is a threat to other tenants could be evicted.  Many rental contracts include language that states no illegal or dangerous activity is to be conducted by a renter on a property.  That gives merit to a property management company seeking eviction of a tenant.

A Tenant Breaks Rental Agreement- If a tenant breaks the rental agreement this can of course be punishable by eviction as well.

The Eviction Process

One of the first things a property management company facing tenant eviction must do is terminate the tenant's lease.  An eviction lawsuit can't begin until the lease is terminated and the property management company or landlord has issue a written notice to the renter being evicted.  Each state has different laws that pertain to eviction, so again as we stated above, make sure you are following local and state laws.  This notice gives written proof that the tenant has been notified of the eviction and the reason why.

Looking for more tips on how to handle a tenant eviction?  Feel free to leave us a comment below or contact us.

Marketing for a Property Management Company

Property management companies do more than just the typical day-to-day tasks.  To be profitable as a property management company, property managers must raise the stakes a bit.  Marketing efforts become crucial for a property management company to attract the right tenants for a profitable price.  If your current marketing efforts are falling flat, consider revamping a bit.  Here are a couple of tips on updating your marketing plan:

Perform a market analysis

Perform a market analysis to help you accurately measure where your properties stand in the marketplace.  Through the analysis, find out if your rental pricing is within range.  Look into units, homes or apartments that are similar to your rental property.  Take into consideration how your unit stacks up in terms of space, number of bedrooms and bathrooms, floor design and overall square footage.  Also consider how you compare to others in terms of the features that your rental offers such as gated parking.  Make sure you assess how you can make your unit more desirable.  If you come across features you feel your rental should include, think about how you can make that a feature of your own rental.  Perhaps you see a unit that has a great feature like a gym and your rental does not feature a gym.  Consider sticking a gym in your property.  When you go to market your property, having a new gym will give you the ability to lure renters in who want that bonus feature.  It's a great way to interest buyers.

Assess effectiveness of tactics

Assess the effectiveness of the media you have been using to advertise your vacancies.  How do you feel about the ads you have been placing?  Is the headline strong?  How are the design and copywriting?  Do the words capture the attention of a prospective tenant?  Does it highlight the features of your rental space?  Is there a clear area where a prospective tenants can see how and where to contact you with questions?  Does your website provide accurate, relevant information and online applications for prospective tenants?  Have you pursued other marketing avenues such as providing brochures to agents?  Once you have assessed the ads you are putting out, consider the vehicles that you have been using such as newspaper advertising versus online advertising.  Assess which one is more worth your time and money and don't be afraid to scrap what is not working for you.  

Use marketing materials to your advantage

Assess costs on repairs and maintenance over the past year or two.  This information will help you analyze what the cost is for maintaining each unit.  Armed with information, create a marketing strategy to get your tenants' help in reducing costs.  Assessing costs can help you discover ways to lower expenses on things like appliance repairs or plumbing.  Give tenants tips and advice on what they can do to help out.  Put marketing materials to good use.  Consider creating a monthly newsletter or e-blast to distribute to tenants featuring different ways they can help.  Feature topics like cutting down on heating, air-conditioning, or electricity use.  Money spent on great, informative marketing collateral can help you save big in the end.

Looking for more tips on performing marketing for your property management company?  Feel free to comment below or contact us.

The Benefits of a Property Management Company

Never underestimate the value of a good property management company-- and no we're not just saying that because that's who we are!  We know how important finding a good property management company can truly be.  Have you had a bad experience with a property management company in the past?  While there are some property management companies out there that might not be the greatest, there are some that are excellent and maintain buildings beautifully all while make a tenant's life run alot more smoothly. Here are a few of the benefits of having a good property management company:

(1) Quality tenants: A good property management company will do a great job screening tenants and will usher in waves of quality tenants.  Having good tenants is extremely crucial in the property management business.  A good property management company can rely on their experience and will be able to thumb through tenant applications and be able to weed out any tenant they feel is no good.  As a result, a good property management company will bring in good tenants who typically cause less problems, pay rent on time, rent longer, and will care for the unit.

(2) Good tenant retention: A good property management company will efficiently be able to keep tenants happy and have a low turnover rate.  Typically, a good property management company will have a solid, time-tested retention policy.

(3) Less legal problems: One of the most beneficial parts of having a good property management company is less legal problems.  A good property management company will be up on the latest landlord and tenant laws that will ensure that you are not vulnerable to legal problems.  This is probably one of the most important parts of working with a good property management company.

(4) Shorter vacancy cycle: A good property management company will be able to fill vacancies quickly by suggesting property improvements, determining the best rent rate and proper marketing of the vacancies.

(5) Personal:  Having a great property management company on your side can provide a ton of personal perks including less stress, more time on your hands, and increased freedom and flexibility.

Want to know more about the benefits of a property management company?  Feel free to comment below or contact us directly.

Screening Tenants

Let's face it, having good tenants is vital for a property management company.  No matter what kind of property you manage, whether you're in real estate property management, industrial property management, retail property management, or condo property management, you always have the difficult task of finding the right tenants.  So how do you go about finding quality tenants for your property rental?  The best way to find quality tenants is to make sure you do a proper tenant screening.  Here are some easy steps to take when screening prospective tenants:

(1) Phone call (initial contact): As a landlord, real estate agency, or property management company, you should begin your screening process with the first initial contact you have with your prospective tenant.  Typically, the first contact made with a prospective tenant is done with a phone call.  By phone, you should get a pretty good read on what your prospective tenant is like.  Before speaking with prospective tenants, be prepared to ask a list of solid, qualifying questions to better understand who the prospective tenant is.  Be up front with prospective tenants about the rental you have and you may want to immediately let them know what rent is up front as well as the security deposit.  Give them the important facts they would want to know to narrow down your tenant choices to candidates that will be able to afford your rental.

(2) Show the rental property: Showing your rental property gives you, the landlord or property management company, the ability to not only show your rental property, but it also gives you the ability to check out your prospective tenant further. Take notice of the following things about your prospective tenant: Appearance, attitude and decision making abilities.  Does your prospective tenant appear messy or neat?  While judging a book by its cover doesn't guarantee any real truth about your potential tenant, it can give you some indication as to how your rental property will be maintained.  Notice your potential tenants attitude.  Does he or she seem difficult to please?  Does he or she respect the rental property while viewing it?  Take note of the tenants initial attitude.  Did he or she come prepared with a deposit ready to fill out an application or do they seem on the fence about your rental property?  Decision making abilities also say alot about a potential tenant.  Look out for any other red flags regarding your prospective tenant.

(3) Submitting an application: Once the applicant has applied, let him or her know that you will keep them in consideration and that you have multiple prospective tenants who have also submitted applications for your rental. Once a tenant has submitted an application to you, assure them that you will notify them once you have made a decision.  Once they have applied, check the application for any inconsistencies or red flags.  If anything seems strange, make sure you look into it thoroughly.  Remember, the goal is to rent your space to good tenants and to avoid renting to a tenant who will not care for your rental space.

(4) Being approved: Once you have chosen an applicant let him or her know the rental space is all theirs and also let them know if you decided to overlook something in their background, typically something that is minor.  During this part of the process a property manager may set a date and time for the approved applicant to come and sign the lease.  Does the potential tenant come prepared?  Take note, as that says alot about what could be in store having that applicant as a tenant.

(5) Signing the lease: Once it is determined that your approved applicant will be your new tenant, having him or her sign the lease is next.  Read over the lease and make sure your new tenant understands what they are signing.  Many people will just sign without reading.  Again, notice your new tenants behavior.  Is he or she arguing every step of the way on the terms of the agreement?  This could indicate problematic behavior, so take his or her behavior during this part of the process very seriously.

Throughout each step of the screening process take note of any indication that your potential tenant may or may not be a good fit.  If you're looking for more tips on picking out a good tenant, comment below or contact us.

The Benefits and Disadvantages of Allowing Pets for Chicago Property Management Companies

As a Chicago property management company, it is sometimes your decision on whether or not to allow your tenants to have pets. While some property management companies already do allow this, others are have much tighter restrictions. Some Chicago propertymanagement companies are on the fence, asking the question if they need to say yes or no to allowing pets to join the tenants in their homes.

When the market is slow and landlords are in need of tenants, a lot of times the guidelines become looser and pets are allowed.  When the market is booming again usually restrictions crop up.  One reason many landlords open up the homes to pets is because the rental market is slow. You will tend to see more and more companies that allow pets with a deposit when tenants are hard to find.

From a positive perspective, allowing pets could keep tenants happy, encourage more new tenants, and can help separate a property management company apart from the competition.  Depending on your goals as a propertymanagement company, those pros of allowing pets could outweigh the cons.  From a negative perspective, allowing pets to join your tenants could lead to the rental property being damaged or destroyed, increased noise, and it can potentially be unsanitary if the tenants do not care for animals properly.  Not allowing tenants to have pets could also potentially narrow down your choices for new tenants.  It can really be a tough call. 

What Chicago Property Managers Can Do

When Chicago property management companies start booming with more and more tenants, they can tighten up their guidelines and be more choosey.  This could mean bad news for renters who have their family pets. It reduces the homes they can find through Chicago property management firms.

One way a Chicago property management company can help renters is by accepting pets with precautions. By allowing pets in under your lease agreement, a Chicago property management company can give their tenants peace of mind that their family will be able to stick together, especially since many families consider pets to be family members.   

Propertymanagers can help to protect their owners and properties by putting some stipulations in the agreement about the pets. With guidelines in place, property managers can allow tenants to keep their pets by following a few simple guides to handling pets in the rental home. Be sure to talk with the tenant of the home to make sure they understand the restrictions.

For comments or questions on anything property management related, feel free to comment below or contact us.