Renting in America

MARCH 2019 | FUTUREOFBUSINESSANDTECH.COM

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Renting in America Netflix’s “Stay Here” host Peter Lorimer empowers landlords to leverage tech for property management success

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Learn how Equifax is modernizing the application process for the next generation of renters.

Page 9

in this issue

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National Association of Realtors president John Smaby shares his expert advice for first-time investment property owners.

Page 10

7 Game-Changers Affecting the Apartment Industry The apartment industry houses nearly 39 million people, and the popularity of apartment living is growing. In fact, the industry will have to build at least 4.6 million apartments by 2030 just to keep up with demand.

Tomorrow’s renters’ needs and wants will be very different thanks to game-changing shifts that are radically reshaping residents’ expectations and experiences.

H e re a re s eve n t h i n g s t h e industry needs to consider when designing, developing and operat-

ing new communities and apartment homes.

1. Technology Technology will become part of the core design of communities rather than just an add-on. Smart-home automation and artificial intelligence will drive innovation and technology while also enriching the resident experience.

2. Marketplace E-commerce has reset consumer expectations by shifting the balance of power in favor of consumers. As real-time and personalized-purchasing experiences

become the norm, a lifestyle-focused, flexible and highly-personalized apartment is as important as its location and layout.

3. People In the coming years, apartments will have to serve a greater variety of households and housing needs.

A recent housing insights survey found 83 percent of respondents believe it is important to have a space that evolves with different stages of life, while 78 percent believe it is important to have a space that can transform to meet different needs. Adaptability in physical components of commu-

nity construction will be increasingly valued.

4. Employment Mobile technology, telework, growth in non-traditional jobs and increasing participation in the gig economy are disrupting where, how and for how long people work.

This impacts a consumer’s housing priorities, preference and decisions. Residents will expect to have the infrastructure associated with offices, such as high-speed internet and co-working spaces, provided within their communities.

5. Transportation A revolution in transportation is underway. Ride sharing and electric and driverless cars stand to challenge parking assumptions and free up millions of square feet of parking space. Apartment communities will need to adapt to fluctuating parking needs and an increasingly diverse range of mobility options.

6. Health A growing consumer emphasis on wellness means apartments will be valued by their contributions to not only physical but social

Check out “Million Dollar Listing” star Fredrik Eklund’s secrets to real estate success.

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and emotional health. With more scientific evidence confirming the importance of sleep and managing stress, consumers will demand and expect an environment that delivers more than just a treadmill in a fitness center.

7. Spaces The sharing economy is chipping away at the divide between the public and private space, requiring tomorrow’s apartment communities to be more integrated into the fabric of the community at large. Future residents will be more comfortable with the concept of “collaborative consumption” as the generation that grew up only knowing the sharing economy resets expectations about shared spaces.

We are already seeing other real estate classes — office, hospitality, retail and restaurants — evolve with these broader changes, so it would be a mistake to think we’re exempt from this disruption. The apartment industry must begin thinking about how to adapt to these shifts or risk facing a disconnect with their future customers.n National Multifamily Housing Council

Publisher Kirsty Moir Business Developer Abe Freedberg Managing Director Luciana Olson Designers Tiffany Pryor, Xiaoli Zhang Copy Editor Lauren Hogan Director of Sales Shannon Ruggiero Director of Business Development Jourdan Snyder Director of Product Faye Godfrey Lead Editor Mina Fanous Production Manager Josh Rosman Content Strategist Vanessa Rodriguez Cover Photo Ivan Meneses All photos are credited to Getty Images unless otherwise specified. This section was created by Mediaplanet and did not involve USA Today.

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Travel Channel’s “Hotel Impossible” Host Knows How to Make Your Vacation Pad a Space to Remember Do you own a vacation rental property or are looking to invest in one? Hospitality mogul Anthony Melchiorri proves exactly why guest experience translates into sales.

How has the term “guest experience” evolved over the past decade?

When you talk about guest experience, you’re talking about how your guest is not going to a hotel, they’re going to your home. When you go into an apartment, it feels like a home. I don’t think people understand that concept a lot of times. Property managers are trying too hard to impress people without trying to make people comfortable.

I think property owners, especially in the vacation rental sector, need to understand that comfort and amenities are two different things and that amenities are less important than comfort. For example, it’s a necessity for me to have an outlet next to my bed so that I can charge my phone and feel comfortable without having to get up. If I rent out a vacation property and I have a welcome bottle of champagne

on the kitchen counter when I walk in, but I don’t have an outlet next to my bed, that’s what I’m going to remember — I’m not going to remember that bottle of champagne. The difference between comfort and amenities really needs to be understood and appreciated.

How can the everyday home owner turn their property into a full-service hotel experience for renters?

If you want to make your vacation rental unit feel more like a hotel, that’s where topnotch amenities come into play. You need to keep in mind the amenities that you typically like may not be what your guests want or need. Make sure the essentials are present and quality: clean sheets, bedding and pillows, towels and shower amenities. Old and clean is fine, new and dirty is no good and old and dirty is no good.

Once you have the proper essentials, you can make any room or vacation area feel special. Property managers tend to overthink it a lot of times and worry about so much more than the key touch-points, spending too much money trying to impress people.

You impress people by understanding how to make them feel comfortable and content on vacation.

For this growing trend in hospitality, how can property owners leverage their rental properties and market them as a unique alternative to hotels for prospective guests?

First thing you need to focus on is price. It’s common for a lot of property owners and managers to base pricing off of the amount of space and amenities their vacation rentals have to offer. They think, “I have a house, three bedrooms, a pool and a laundry room, so I can charge $500 dollars a night.” But if the Hilton down the street is charging $250 a night and people don’t need all the space your rental property has, they won’t care.

Price must come before anything else, so despite how much bigger your property is, if you’re trying to beat out the competition of hotels in the area, the price in terms of the size of your property shouldn’t translate.

In terms of marketing your vacation properties on third-party listing sites, these sites spend thousands of dollars on advertising and everybody goes to them to search for vacation rentals, so as a property owner you have to be able to work with them and understand how their promotions work all the way down to how your property is listed. Once you partner with these sites to promote your property, having reviews through these listing platforms are critical for the success of your business. You can’t walk away from the biggest marketing platforms in the world, as they’ll make you so much more revenue in the long-term if you know how to effectively use them. (article continued on page 6)

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What to Know When Getting Your Vacation Home Insured

An estimated 600,000 homeowners in the United States earn extra income by renting out their homes on a short-term basis.

Many vacation-rental business owners believe they can rely on their standard homeowners or landlord policy for protection. While these policies provide property and liability coverage, they typically exclude business activities, which means liability claims arising from rental activity will most likely be denied.

The insurance industry offers options that range from liability-only coverage through online-booking sites to comprehensive property and commercial general-liability coverage. But with several options available, it can be difficult to know which option is best.

When choosing insurance for your short-term vacation rental, make sure coverage is available and appropriate for the exposure. For example, some policies won’t cover the risks associated with home sharing but are ideal for whole-house, short-term rentals.

Keep in mind that as soon as a home is advertised as a vacation rental, the home becomes a place of business, and the risk to the property and exposure to liability claims substantially changes. At minimum, a vacation rental should be protected by an insurance policy that includes property coverage and commercial general liability (CGL), as well as business-income coverage. CGL insurance provides protection against claims arising from your business operations, as well as advertising and personal-injury liability.

Business-income coverage provides financial relief while your property is being restored after a covered loss.

Alex Martin, Business Development Manager, CBIZ Vacation Rental Insurance

PHOTO: ANTHONY MELCHIORRI

Despite the vacation-rental industry’s growing popularity, confusion still exists around the right insurance needed for this type of business.

(article continued from page 4)

You have worked in the hospitality industry for a number of years. What are some best practices for protecting one’s vacation property from liability and risk?

The good thing is that every guest you accept into your rental home needs to use a valid credit card and driver’s license or passport to successfully rent out a vacation property. This gives the landlord stability to make sure their guests behave, and if they don’t, you have recourse to put any damage onto their credit. As a landlord, you also have the responsibility of making sure your guests review the liability and risks on the registration forms, confirming their understanding beforehand. I know vacation rentals hit a spiked interest during spring break season for a lot of college kids, so if you’re located

in this environment, a good way to avoid the risk of a rowdy crowd staying at your place is verifying on the listing site a specific age requirement for prospective guests.

How important is it to invest in property insurance when renting your vacation property?

I think it’s critical. It may be more expensive, sure, but why would you put yourself at risk from a liability standpoint? You can go to sleep at night knowing that even if a guest starts a fire in your rental, you’re still covered. If you don’t buy insurance for your vacation-rental property, you’re not a business person, you’re just playing games. You must have insurance — it’s not even a conversation.

For those people who are new to the vacation-rental sphere, what’s one piece of advice

you’d give these property owners who may be looking to rent out an entire property or even just a spare room?

The first priority for those just entering the vacation-rental space is to go online and look up a course on how to become a property manager, as there are many of them out there to educate yourself with. The second priority from a guest standpoint is to treat the person staying at your vacation rental like they’re your grandmother that you haven’t seen in twenty years. If you’re looking at renting out your place as just a simple money grab, you’re not going to be successful long term.

Long story short: Go online, learn what becoming a property manager is all about, invest in a partnership with these vacation listing sites so that you can start maximizing your property presence and your profitability and treat every guest that enters your vacation home like family. n

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6 Essential Reasons Why You Need to Properly Screen Tenants No one can predict the future, especially when it comes to renting to strangers.

Sometimes even the most presentable rental applicants have skeletons in their closet, and there is no way to know for sure without thorough tenant-screening practices in place.

W

hether you own hundreds of units or a single rental home, you are lending an asset worth hundreds of thousands of dollars. Why not spend the time and money to properly screen tenants?

Here are six reasons why it’s in your best interest to screen all rental applicants: 1. Eviction potential The average time and cost involved with an eviction can add up quickly. Tenants may attempt to extend the court process to stay rent-free or buy time to apply for

another rental. Even when you can get a court judgment against a tenant, it is likely they will not pay you what they owe. This can be easily avoided by calling landlord references and running an eviction report on every applicant.

If you use a tenant-screening company, do not rely on a credit report alone. Make sure to purchase a separate eviction search that will include records that are not provided by the credit bureaus.

2. You are liable As a landlord, you are responsible for keeping your community safe.

If you do not run a background check, you may be liable for your tenant’s wrongdoings and could be sued for negligence. If you are sued, you may need to prove that you conduct criminal and sex-offender searches and decline applicants that pose a threat to the safety of your community and property.

3. Rental-income losses Renting to a tenant who does not have sufficient income to cover the rent may result in an early lease termination or the tenant may leave owing you rent. This often happens when landlords

do not properly verify their rental applicant’s income and debt. Be sure to purchase a credit report to find out the tenant’s monthly debt obligation and verify all sources of income by collecting W-2s, paycheck stubs or other proof of income.

4. Reduce tenant turnover As a rental property owner, you know vacancies equal lost rental income. An applicant who earns sufficient income, has positive references, a good credit score and a clean background is more likely to be a stable, long-term tenant.

This translates to a better tenant relationship, lower vacancy rates and reliable rental income.

5. Proof of identity Collecting a government-issued ID and using a background check to verify an applicant’s identity ensures you uncover any discrepancy or misrepresentation before making a rental decision. If you do end up renting to a tenant that unexpectedly skips out on rent, you or your collection agency will be much more likely to track them down using their verified social security number, references, employers and previous addresses.

6. Trouble tenants Scam artists, felons and bad tenants target landlords that do not have strict screening policies. By simply requiring a background and credit check for all applicants, you discourage tenants who have something to hide from applying.

If a tenant refuses to be screened, that is a major red flag, and they will likely cause problems down the road.

A troubled tenant can eat up your cash flow quickly. Be sure to have screening criteria based on local and federal fair-housing laws and apply the same requirements to all applicants. By utilizing a solid screening policy, you can feel confident you will reach an informed decision that will minimize the risk of renting to the wrong person. n Alexandra Alvarado, Director of Education, American Apartment Owners Association

MEDIAPLANET | 9

SPONSORED

T

he current digital transformation, accelerated by millennials, has changed the profile of renters and expectations of a more secure, automated and transparent rental process.

However, many rental property managers and landlords haven’t caught up with the times. Some still utilize manual processes for income verification and some still use the antiquated “gut-check” to determine whether or not to convert a prospective renter into a tenant. Times have changed and so has the technology to drive the rental application process.

With the appropriate technology, property managers and landlords can better understand the renter of today and streamline the verification process in an expedited and cost-efficient manner.

The 21st century worker The new wave of workers is younger, and they — millennials — now represent the largest segment of the American workforce. As the economy continues to grow, millennials provide the greatest market opportunity for rental companies. While property managers recognize this opportunity, the shift in rental profiles can present unexpected challenges in tenant screening.

The other factor property managers have to account for in qualifying the right renter is the increase of the independent contractor, freelancer and, most recently, the ride-share driver — or as we say, gig economy worker.

This is the first time in modern history we’ve witnessed roughly 40 percent of the workforce turning to gig economy jobs.

While the reasons workers tap into the gig economy are varied, one thing is certain, millennials and independent workers have a greater tendency to be categorized as “thin or limited credit”

How Renters and Property Managers Should Take Advantage of New Technology to Engage the Next Generation of Renters consumers. This categorization can limit their ability to find rates and terms commensurate with their credit-worthiness.

Modernizing the rental application process Proving worthiness to rent can often become a complex and complicated problem for a millennial and gig economy worker.

According to survey data by MMR Research, commissioned

by Equifax, 55 percent of property managers require a larger deposit and 48 percent require a co-signer for renters with thin histories. These measures, while designed to safeguard the property manager and landlord, can become barriers for a thin credit history renter and ultimately lead to his or her exit from the application process.

To complicate matters further, oftentimes renters are

applying to multiple properties before securing a lease. Multiple housing applications may mean multiple credit inquiries, which can negatively impact the credit score calculated from an already thin credit file.

Solutions to the problem Over the past several years, Equifax has been laser focused on developing solutions to help with these modern-day issues facing the multi-family industry. For a property manager faced with a thin credit applicant, Equifax provides an automated employment and income verification service that leverages The Work Number®, the largest database of payroll records furnished by thousands of employers nationwide. Additionally, this service can help property managers streamline the application process and combat the potential for fraud.

“Leveraging a third party for employment and income verification enables property managers to keep renters satisfied during the application process, as it can take a property manager a week or more to manually verify an applicant’s data. And that’s too long,” says Tyler Sawyer, vice president of rental and real estate at Equifax.

In addition to verification solutions, Equifax recently announced a soft credit inquiry for tenant screening purposes.

Soft credit inquiries generally do not impact a consumer’s credit score like hard inquiries. Instead, they are posted on the consumer’s credit file in a way that is not visible to most financial institutions, tenant screeners, lenders, etc., and are not used to calculate a credit score.

“Offering soft-pull credit inquiries helps renters find the

best lease and terms without worrying about negative impacts to their credit score,” says Sawyer. “This becomes invaluable to millennials and gig economy workers who may already have thin credit files.”

As the millennial generation and the gig economy continue to solidify their place in the American economy, leveraging income and employment verification and rental-soft inquiry solutions like those offered by Equifax will become ever more important. Property managers and landlords who fail to leverage this level of technology stand a greater chance of missing out on a growing number of opportunities to engage new renters who are just as likely to pay rent on time as anyone else. n Kristen Castillo

10 | FUTUREOFBUSINESSANDTECH.COM

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Top Tips to Consider When Buying an Income Property Historically low mortgage rates and strong rental demands have led more and more Americans to diversify their investments by purchasing an income property.

For those interested in becoming landlords, the first and most important step is fi nding the right property. Making a mistake here will cost you every step of the way. It is critical — especially for a first-time investment property owner — to take the time to research where to buy, how much to spend and which property to purchase.

Here are a few tips to make finding the right property as simple and stress-free as possible: 1. Learn your market As the saying goes, real estate is all about “location, location, location.” Finding a community in want of rental options will ensure that you have plenty of potential tenants, so understanding the needs and conditions of the market in which you are hoping to invest is critical.

This may mean that purchasing close to your primary residence will make your first investment easier, as you already have a comprehensive understanding of the

local economic conditions and the community’s selling points.

2. Get and keep your finances in order It is important to understand that being a landlord means that you have a business. That’s why it’s crucial to have a thorough understanding of your finances, as well as a business plan for your rental property income. This includes staying on top of all the latest changes to the tax code. The Tax Cuts and Jobs Act enacted in 2017 created a 20 percent deduction for business income which, as the IRS confirmed in early 2019, can be applied to rental-property

income. In order to claim this deduction, however, you must be able to show your rental properties are part of a trade or business rather than just passive investments. The easy way to do this is to show you spend at least 250 hours a year on rental activities.

If you don’t meet this requirement, you can still take the deduction, but you must be prepared to defend your claim. That can be a challenge, especially considering previous court cases don’t provide any clear guidance.

3. Work with a realtor Realtors have unparalleled knowledge of local market conditions

Vacation rental data to set you apart.

Insights to keep you ahead.

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and can leverage that expertise to help you find the right investment property. Because realtors are involved in so many property transactions, they will have a comprehensive understanding of the communities in which you are considering buying and will know whether you are getting the most bang for your buck on your potential purchase. In addition, purchasing an income property can require a vast amount of paperwork, which a realtor will help you manage to avoid costly delays or mistakes. ■ John Smaby, President, National Association of Realtors

12 | FUTUREOFBUSINESSANDTECH.COM

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Peter Lorimer’s Secrets to ShortTerm Success in Real Estate P

The short-term rental industry is exploding. For real estate guru Peter Lorimer, success means rejecting shortcuts and leveraging technology.

Few people know more about real estate and the short-term rental industry than Peter Lorimer. The real estate legend now co-hosts “Stay Here” on Netflix with Genevieve Gorder, helping the famed interior designer transform drab Airbnb rentals into spectacular getaways.

“I think my favorite part of “Stay Here” is being able to immerse myself into the cultures of cities,” says Lorimer. “Which I

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think is the essence of Airbnb — we want to live like a local. It’s incredibly personal.”

Secrets to success Lorimer has seen it all, and he has a simple recipe for shortterm success.

“A word that I like to use in the show quite a lot is ‘narratives,’” he says. “Know what the story of the property is. Hire a professional photographer to capture the narrative. Thanks to technology, traditional real estate and short-term rentals have turned into real estate Tinder — please, please hire a professional cleaning crew!”

Technology also offers huge opportunities for landlords. “As

a real estate professional, I’m all about how I can utilize an hour.”

Lorimer points out. “Nothing replaces the personal touch, and if I’m knee-deep in paperwork, then I’m probably not going to be the most vibrant host that I could be. So if you can afford it — and really, you can’t afford not to — get property management software to streamline the day-to-day aspects.”

In addition to property management software, Lorimer stresses the importance of insurance.

“Having insurance as a landlord

is absolutely paramount — be very clear you’ll be using the insurance for an Airbnb, and get an umbrella policy. For renters, insurance adds an extra layer of comfort.”

Advice for newbies For new landlords, Lorimer believes knowledge is power.

“Data drives everything. Know your niche, who you’re going for.” He also believes in getting your hands dirty. “I’m a great believer in apprenticeships, and in getting things wrong so you

know how to get them right. Do everything except the cleaning and the photography. Hands-on is how you learn.”

It all comes back to that personal touch. “There are no shortcuts — clients will notice, and it will affect your ROI,” Lorimer warns. “Treat your guests like extended family or a long-lost friend. That’s what they’re looking for, that’s what this industry was founded on.” n Jeff Somers

MEDIAPLANET | 13

Industry Experts Speak to Current Trends in Rental Real Estate Industry leaders share insight into the pitfalls of the modern rental industry and how technology has changed the renter-landlord relationship.

Tony Melillo Sales Manager, CBIZ Vacation Rental Insurance

What’s the most common risk property owners and landlords face from tenants when renting out their property, and how can this be avoided?

Tony Melillo: Physical damage to the building and/or contents and personal injury claims are common risks posed by rental guests. Although it’s difficult to prevent accidental damage to property, owners can mitigate personal injury risks by ensuring that their home is free from common hazards such as uneven sidewalks and loose handrails.

Frank Jachetta: Identity fraud continues to be a major risk to property owners and managers.

Knowing your applicants is critical to success in today’s rental marketplace. Based on client feedback, the average total cost for a fraud-related eviction is $7,000, which doesn’t include the cost and time associated with finding a new resident.

Frank Jachetta Account Executive, CoreLogic

Jason Hull: The No. 1 challenge facing the rental industry is a lack of good, professional property management being used.

Seventy percent of single-family residential rental properties are self-managed. That means only 30 percent are professionally managed. Property managers are underutilized here. I believe good property management can have a massive impact on hundreds of thousands of individuals and families around the United States.

Mike Doherty: Overall, this is a great time for the rental-housing industry. We are experiencing high occupancy, healthy rents and there has been relatively low delinquency on renter payments.

However, there are some consistent themes we see from both our larger multifamily customers and from independent landlords.

The No. 1 challenge typically boils down to finding the right renter in the first place.

Barbara Corcoran Host, “Shark Tank”

What is the largest challenge you’ve faced as a woman in the real estate business?

Barbara Corcoran: Worse than not being taken seriously was being dismissed by the men I competed against. They really didn’t see me at first, and that would be very off-putting and shake my confidence to the core. I learned that I had to get my own attitude on straight. I simply made a mental note of the occasion and who I was with, and then I went out to prove them wrong.

How has technology helped empower the modern property manager to more effectively find, validate and keep longterm, reliable tenants?

FJ: Technology has empowered property managers to effectively manage applicant risk.

The first step to profitability is

Mike Doherty Senior Vice President, Rental Screening, TransUnion

Jason Hull Founder and CEO, DoorGrow

creating a fiscally and physically safe portfolio.

profit margin. This makes it hard for property managers and landlords to provide good service. Technology has allowed those managing properties to create leverage and serve more people quicker, and it has allowed renters to quickly get the support they need. Smart tools are helping to eliminate waste, create more clarity, collapse time and lower the high costs of managing so that better, healthier businesses can thrive in managing property, which in turn benefits renters.

MD: Modern technology is playing a role in helping both renters and property managers. On the one hand, it allows renters to more broadly search for rental properties. On the flip side, management can more efficiently optimize rental rates to make them more attractive, especially when they would like to have access to a bigger pool of applicants. As more customers choose to manage their entire rental experience online, it is imperative for property managers to beef up their technological capabilities so they may serve customers through the channels in which they want to be served.

How has technology helped to positively transform the renter/tenants experience in the last two decades?

JH: Managing property can be a lot of work and often yields very little

What are the benefits of pursuing a career in the real estate industry?

BC: The real estate industry is rapidly changing and full of opportunity for up-and-coming real estate professionals. In this competitive field, it’s crucial to not just keep up with trends but to be trendsetter yourself. Remember that the old boys get cocky and fall asleep at the wheel. It’s the new kids on the block that own tomorrow. n

14 | FUTUREOFBUSINESSANDTECH.COM

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HGTV’s “Income Property” Host Scott McGillivray Talks How to Become an Income Property Boss

Scott McGillivray refers to the 2008 housing-market crash and the recession that followed as a game-changer for homeowners.

“A lot of people couldn’t get approvals for mortgages. People were scared to get financing or to get into the real estate market, but everyone needed somewhere to live,” says McGillivray, who’s been investing in real estate for over 18 years.

Rental rates went up and the focus turned to ensuring tenants have a great rental experience.

“The best way to have the best tenants is to have the best property,” McGillivray says. “The caliber of your space will dictate the caliber of your tenants.”

With the ease of using the internet to list and rent properties —

including the rise of homesharing companies — it’s easier than ever for owners to become entrepreneurs, renting out their properties and earning extra income.

“Anyone with an empty bedroom in their house can start generating $500 to $900 a month by just having a student boarding in their house,” says McGillivray.

“For a lot of folks, that makes a big difference. An extra $800 a month rent for a room you don’t use? It’s hard to see the downside.”

Tips from an expert Whether you’re leasing out an apartment, renting a room in your home long-term or booking shortterm guests for vacation rentals, there’s a market for your property.

Still, you have work to do.

“Don’t just post it and say, ‘we’ll see what will happen,’ because you will make mistakes,” says McGillivray.

He recommends adding amenities like cable, internet, dishwashers, in-suite laundry and outdoor spaces to increase the amount of rent you can charge and to get a good return on investment. Upgrades, such as kitchen or bathroom renovations, add value as well. Price properties in

PHOTO: RICHARD SIBBALD

Viewers know TV host and handyman Scott McGillivray as the renovation expert on home design shows like HGTV’s “Income Property.” Now he’s sharing his expert advice on how homeowners and property managers can make money by effectively marketing their rental properties.

your area so you know how much rent to charge.

When you get a rental applicant, do a tenant application, credit check, reference check and always have a signed lease. Make sure tenants have insurance and check that your insurance incorporates your rental property and liabilities. Then follow local laws about rent, deposit and damages.

McGillivray always amends the standard lease to cover important details for the property, including courtesy quiet times, where to park and other finer details.

Rental marketing 101 Market your property to both local and a global audience. There’s a large international market for vacation rentals. For example, McGillivray rented his Florida property to a couple from Germany who found the rental listing online. Word-of-mouth used to be the norm for advertising rental properties, but now it’s the internet and social media.

“Social media has definitely added to the excitement,” says McGillivray. “You can showcase the property at its best. You’re

selling a lifestyle. You’re selling an experience.”

Landlords set the tone and should build long-lasting relationships with their renters.

“Instead of being scared of tenants, I tell investors that they need to embrace these tenants. These are your customers,” says McGillivray, who advises giving new tenants a welcome gift basket with a personalized note. “No business that treats its customers poorly ever does well.” n Kristen Castillo

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You’ll love this FREE REPORT...

• Learn how we have helped companies add 100s of doors without costly Learn how we have helped companies add 100s of • Learn how to effectively target the 70% of rental advertising. doors without costly advertising. property owners that are self-managing and that

aren’t searching on Google.

• Learn why SEO, PPC, pay-per-lead, content/social media marketing don’t make • Learn why SEO, PPC, pay-per-lead and content/ social media& marketing make sense & cause • Learn the secrets about the common blind spots sense causedon’t false scarcity. false scarcity. preventing PM growth.

• Learn how to effectively target the 70% of rental property owners that are self managing, that aren’t searching on Google.

GET ACCESS TO

• Learn the secrets about the common blind spots preventing PM growth.

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