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.

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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.

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.

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.

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.  

Increase the Value of Your Rental Property

If you have been feeling like your rental property is not as aesthetically appealing as you would like for it to be, you have options.  Simple fixes and tweaks to your rental property can certainly enhance your property.  Whether you're a property management company, landlord, or tenant, simple fixes can greatly up your rental property's appeal no matter what your budget is.  Here are a couple changes you can make to increase the value of your rental property:

Paint:

A fresh coat of paint can drastically change the look and feel of your rental property.  Painting can be a relatively inexpensive way to update a room.  Check close-out stores which typically have a decent selection of basic interior and exterior colors at lower than average prices.  To cut costs on painting, purchase flat or semi-glosses finishes over high-gloss.  High-gloss paints typically require more coats, which is not necessary for sprucing up your rental property.

New Windows:

If you have windows on your rental property that are in need of an update, consider installing storm windows over the pre-existing ones instead.  If you're a pretty handy renter, property management company, tenant or landlord you may be able to install the storm windows by screwing the tracks into the frame.  Aside from the windows themselves, you should also consider putting in some sort of blinds or window covers.  While some renters may not want window covers, they are easy to remove if unwanted.  When it comes to window covers there are quite a few options such as venetian blinds (which can be difficult to clean and tend to break easily) or stained-glass appliques (which provide privacy and go on and come off very easily).  You could always put up shades or curtains, which may be the best route.

Kitchen & Bathroom Remodel:

It is said that the kitchen and bathroom are the two most important rooms in a homeowners house.  Putting a little time and some money into a rental property's kitchen and bathroom can greatly increase the value of your rental property.  Again, close-out stores are excellent resources for discounted flooring and other material needed for a remodel.   If you are in need of some relatively new appliances and obviously don't want to break the bank, you could consider checking the scratch and dent departments. Scratch and dent departments feature brand new appliances sold at a hefty discount due to minimal damage, hence scratch and dent.  It's not a bad idea since you're getting a fully functioning appliance at a fraction of the cost.  Second-hand appliance stores may also be worth checking out.

Clean-up:

Sometimes the best and cheapest way to beautiful a rental property is by giving it a good, top to bottom, cleaning.  Maybe the walls don't need fresh paint after all.  Perhaps they just need a good wipe down.  Over the years, dirt and debris can collect on your walls, so dingy paint may just be dingy from dust.  Your rental property will probably require deep cleaning and some parts of the property may require much deeper cleaning than other parts.  You may want to do a little research on great cleaning products that will really get the job done.

Landscaping:

Beautify your rental property's outdoor space by doing some basic planting.  Doing a little landscaping will give your rental property great curb appeal and is worth some seasonal maintenance.  Don't let your rental property's yard be bare.  Flowers, such as Pansies, are great to plant as they can survive a frost.  Tulips and Day Lilies are cost effective and come back every year, which is great in terms on maintenance in the long run.  Put in plants that will enhance your rental property's outdoor beauty, but will require little effort in terms of maintenance.

Whether your the renter, or a property management company, tenant or landlord, lots of little improvements can be made to make a house look more like a home.  For more tips on improving your rental property, comment below or contact us.

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Preparing Your Property for Winter Storms

If your rental properties are in cold-weather states, you could be in for a rough winter.Preparing a rental for winter storm season is an important part of maintaining your investment. Here’s how to limit the damage a storm can do:

• Trim dead tree branches and limbs: Snow, wind and ice can bring down branches, damaging property or causing injuries. They can also take power lines with them, which is even more dangerous.
• Clean gutters: If gutters are filled with leaves and debris, snow and ice can build up, causing damages to the roof an eaves, and eventually harming walls and ceilings.
• Check chimney flues: In units with working fireplaces, it’s important to have an annual inspection by a qualified professional. Creosote buildup can cause fires.

Landlords & Locks: New Laws for Illinois 2012

The laws defining when locks or re-keying should take place are getting harder in 2012, and failure to comply offers a harsh penalty. Take a look at the new law that will take effect on January 1, 2012:

"The State of Illinois, by way of Public Act 097-0470, just amended the Illinois Landlord and Tenant Act, adding new section 765 ILCS 705/15, effective January 1, 2012, requiring landlords in counties with a population in excess of 3 million people (ie. Cook County) to change or re-key the locks on a dwelling unit after a tenancy ends. Exempt from the law are (1) owner occupied buildings containing four or fewer units or (2) rentals of a room in a private home.
The law basically requires covered landlords to change or re-key the locks when a tenant moves out and before a new tenant moves in. There is an exception when the tenant, by way of lease, has obtained the right to change or re-key the dwelling unit. The changing or re-keying must occur after the dwelling unit has been vacated and on or before the day a new tenant takes possession. The law defines “changing or re-keying” as any of the following (1) replacing the lock; (2) replacing the locking or cylinder mechanism in the lock so a different key must be used to unlock the lock; (3) changing the combination on a combination or digital lock; (4) changing an electronic lock so that the means or method of unlocking the lock is changed; or (5) changing the means of gaining access to the locked unit so it is not identical to the prior tenant’s means of gaining access to the unit."

As stated before - failure to comply offers a harsh penalty: A landlord who violates the law is liable to the tenant for any damages the tenant may incur if a theft occurs at the dwelling unit that is attributable to the landlord’s failure to rekey or change the lock.

This means that landlords and property managers should be prepared to change or re-key locks at the end of each tenancy, no matter what. This isn't unreasonable by any means, but this needs to be factored into time and costs for each new tenant.

source: chicagoeviction.com …

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The Landlord's New Year's Resolution for 2012

It’s time to put together your New Year’s Resolutions for 2012. And while you are probably anexcellent landlord in every way, you may be considering making a few improvements in the New Year. To help, we’ve compiled a list of landlord behaviors to avoid:

1. Avoid the temptation to go through your tenants’ private spaces. Sounds silly, since tenants have the right to privacy, even though they live in your property. But when a tenant recently reported coming home and finding the contents of her closet on the floor, along with a note saying that, quote, "over-stuffing will break the door", it apparently needs to be addressed.
2. Don’t show up at your tenant’s door without the appropriate notice, as specified by the law and in the lease. Even if you’re already in the neighborhood, and you just want to stop in and change the furnace filter, and it will only take a moment, avoid this bad habit. Unless you see an imminent threat to your tenant’s safety, you need to give them proper notice.
3. Avoid being like the San Francisco landlord who is being sued for $10 million by his tenants for failing to deal with bugs and mold. We’ll never be able to completely eradicate the rats, bedbugs, cockroaches, and other creepy crawlies that most people do not enjoy having around. But it’s a landlord’s duty to provide a safe and habitable living unit. And mold is a serious health hazard, especially for those with asthma or compromised immune systems. So if your tenants report a problem with bugs or mold, take care of it.
4. Don’t discriminate against your tenants or prospective tenants. Raise your awareness of what constitutes discrimination—because it’s illegal. For example, one Ohio landlord recently got in trouble for her “White Only” pool sign. She said it’s an antique, and must have thought it was harmless, but one tenant didn’t find it to be harmless. The landlord has been fined by the state Civil Rights Commission, and is appealing the charges

Landlords aren’t perfect—and neither are tenants. But it’s important to keep a professional business relationship with your tenants—keep that in mind as you go into the New Year!

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When Should a Landlord Hire a Property Management Company? Now!

One of the biggest decisions a landlord will make during their years as property owners is hiring a property management company. Smaller complexes are still managed by the landlords themselves or with the help of an employee, but even in a small complex, corporate or residential, landlords may need more help than they think. This is exactly the time hiring a property management firm makes the most sense.

Not only are property management companies a huge asset to the company as a whole, but the elevated level of care taken with the complex can make it a more appealing place to live or conduct business, making the complex itself more lucrative for the landlord. Carefully review the following points to see if hiring a Chicago Property Management Firm is right for your business.

The PMC's Role in Your Business
One of the biggest questions landlords typically have is, 'what do you do?'. Property management companies deal one on one with tenants and potential tenants including rent collecting, maintenance and repairs, complaint handling and dealing with evictions, leaving you more time to pursue marketing and other property investment opportunities.


When to Hire a Property Management Company
It is never a bad decision to hire a property management company, but as a real estate investor, it is up to you to determine whether it is the right investment for your business as the service can sometimes be expensive.  

You should hire a PMC if:

1. You have several properties and/or rental units. 
2. Your time is limited.
3. You don't want to/like hands-on management.
4. You can afford it!
5. You don't live close to your properties.
6. You suddenly find yourself with too much to do and not enough time to do it.
7. You don't want to be an employer.


If you fit into one of the many reasons you should hire a property management firm, give MK Assets a call to speak about how we can help you get the help you need with your real estate investments.