Rental Housing Journal Arizona February 2016 by Professional Publishing, Inc

Rental Housing Journal Arizona

February 2016 - Vol. 8 Issue 2

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

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

6. Inherit A House? – How To Rent It Out 9. Dear Maintenance Men – Landscaping, Graffiti & Power Tools

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC Monthly Circulation To More Than 7,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel

5 Extraordinary Ways to Market and Lease Apartments

by Theresa Bradley-Banta

hen it comes to marketing and leasing apartments Craigslist might be your best source—but it’s not the only game in town. Zillow.com, HotPads.com, Rent.com, Apartments.com, your own website and social media can all generate good traffic. But have you explored new resources and strategies lately? Try these ideas for great results:

1. Market Where Your Target Renter Hangs Out Take a minute and think about where your target market likes to spend their leisure time. You can find some unusual places to advertise. Often these are places that your competitors haven’t thought of like:

Handling Application Deposit Disputes

ost landlords require a prospective resident to pay a deposit to hold an apartment until completion of the application process. A problem arises, however, when the individual does not enter into a lease agreement and he or she demands the deposit back. The following article will address this issue. Management usually requires a prospective renter to pay an application fee to cover its expenses. This includes

credit, rental history and criminal records checks. Additionally, a landlord may require a deposit to hold a particular rental unit. In other words, management takes a specific apartment off the rental market and reserves it.

Written Agreement One of two things may occur which results in the resident’s demand for return of the deposit: the property approves the individual and he or she de-

cides not to move in; or the property denies the person residency. In either scenario, management can protect itself by implementing a written agreement that specifically addresses the deposition of any monies paid. The “Deposit to Hold Agreement” section of the AMA Rental Application states in part: In consideration of management holding the apartment for me, I agree to pay a holding deposit of $_______ and a $________ non-refundable fee for administrative processing. The holding deposit is refundable if my Application is not approved (14 day delay required for bank clearance of check). I may cancel this agreement and be refunded my holding deposit (14 day delay required for bank clearance of check) by notifying you of my decision to cancel by 5:00 p.m. on _____________, 20____. continued on page 7

Your Community Network –

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By Eric Markow

our renters not only want to live on your properties, they also want to live on the Internet and the World Wide Web! In a recent article, we talked about the increased value and desirability that implementing wireless (Wi-Fi) internet access in each of your units would

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

Presto – You’ve Built a Network What we haven’t talked about is the fact that implementing Wi-Fi in all of

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your units actually builds your own private community network -- a sort of mini-internet all your own! So now that you have this network, what can you do with it? continued on page 3

Rental Housing Journal Arizona

14 Points That Must Be In Your Apartment Building Leasing and Marketing Plan by Theresa Bradley-Banta

recently received the following request from a multifamily investor:

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

This is a fantastic question! When you approach a bank to finance your apartment deal they most assuredly will want to see your apartment building leasing and marketing plan. Without a solid strategy you risk losing financing and you’re more than likely ready to walk into apartment building ownership with blinders on. Let’s make sure you’re ready with a great plan and strategy from day one of ownership. As an apartment building owner you have to be proactive. In order to succeed you must: • Know exactly how you will market and lease units. • Have a solid understanding of your market and your competition. • Put the best team in place. • Prepare an accurate budget forecast.

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

1. Your team: It’s time to show that you have best around If you are light on experience or you are a seasoned professional real estate investor this is your opportunity to let your lender know that you have the best multifamily real estate team in the business ready to step in the day you close

on the deal. Your list should include: • Your third party apartment building property manager. Some lenders may make this a requirement of your first year of ownership—they will insist you bring in professional management while you get your feet wet. • Your leasing agents. If your property has vacant units you may decide to bring in a professional leasing team for the first few months of ownership. • Your renovation and trade contractors. These professionals should have experience at the apartment building level. Be sure to point it out. What experience does each team member bring to the table? Don’t hold back. Tout their talents and experience to the skies. Be sure to include the company name, contact person and telephone number for each member of your team.

2. Responsive apartment building maintenance A top-notch maintenance team goes a long way in keeping happy residents. Promptly addressing maintenance requests equals less resident turnover. Describe your team and their experience. Put a plan in place for maintenance request response times and your method of communication with residents. Include the details in your marketing plan.

3. Apartment unit rent and concession comparables Describe what your competing market is doing and how you stack up today. You must know the rents that your submarket competitors are receiving for comparable apartment units and also if they are offering concessions or discounts in order to rent units. Include your research in your report. If your units are currently leasing below market rent address this in your report. Describe how you plan to make changes—in both rents and concessions—in order to attract new residents to your apartment building. This may involve: • Bringing in a new professional and seasoned management team. • Updating apartment units. • Offering creative concessions and incentives to new and existing residents. • Creating greater curb appeal to improve marketing. • Establishing a new leasing and marketing plan and, • Hiring a temporary leasing agent in addition to the leasing services your management company provides.

4. Creative concessions If your market is giving away free or discounted rent in order to lease units, you and your management team can come up with alternatives that don’t cost you in property income. For example, if you charge for parking and your spaces are not full, give your resident free parking for three months instead of lowering the rental amount. 5. Current and prospective resident incentives Entice your current residents to get the word out about your apartment building and apartment units to their friends, family and coworkers. Create an incentive for prospective residents to help lease apartment units in lieu of offering them other concessions such continued on page 8

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Rental Housing Journal Arizona · February 2016

Rental Housing Journal Arizona

Your Community Network ...continued from page 1 Incremental Revenue from Your Community Network The first thing you need to know about your community network is that it makes money for you. You become your renters’ Internet Service Provider (ISP), and incorporate the added value of internet access and related services into their rent. Implemented with a full-service partner like Dual Path, your renters will discover move-inready, easily accessed Wi-Fi from day one, plus ongoing technical support that is readily available at all times. Wi-Fi based security systems are revolutionizing the personal security industry. Far from the “burglar alarms” of yesteryear, these new state-of-the-art systems require no unsightly wires or separate network, and can protect everything from doors to windows to motion in and around the living unit. Your renters will benefit from the ability to check video from cameras deployed strategically throughout their apartment or home via their smartphones. In an emergency, renters could even allow the police temporary access to these cameras. Digital Telephone is growing in popularity because it’s far less expensive than traditional landlines, and far more feature-rich with video-calling, voicemail that is transcribed and emailed to the recipient, detailed activity and billing reports and much more. Your premises Wi-Fi network by Dual Path eliminates any costs to adding 4G and LTE coverage to your property, thus providing your renters with worry-free calling that is often totally free.

Alternative energy initiatives take full advantage of your community network infrastructure, providing you and your renters substantial savings on energy costs and enabling new technologies such as solar energy generation. Smart Home technologies automatically turns lights on when needed, off when they are not, and can even adjust thermostats to save energy when the premises is unoccupied. Additionally, leakage sensors, carbon monoxide, fire, and other detection devices can be built into your network giving your property and your renters multiple layers of safety. Maintenance Services and Property Administration also benefit from your community network. Property-wide coverage enables video chat tours of the property or a particular unit for potential residents who may not have the opportunity to visit in person. Work Orders can be opened and sent to devices used by your maintenance staff to improve operational efficiency.

Home Automation – Oﬀer More Than a Home, Oﬀer a Smart Home! A visit to your local do-it-yourself superstore will show you that home automation is becoming the “next new thing.” People, including your renters, want the ability to switch lights and appliances on and off, adjust their thermostat, lock and unlock doors, and do much more remotely by using their personal mobile phone or tablet. Home automation protects too! Sensors are now available to provide early alert of moisture, leakage, fire, carbon monoxide, as well as possible

intruders and unexpected motion on the premises. Home automation also saves money! By pre-setting times when lights, appliances, and other devices and services turn on and off, the cost of electric bills, gas bills, and other utility charges are dramatically decreased. Great for your renters if they’re paying for utilities. Great for you if they’re not! By installing Wi-Fi compatible equipment, you can offer your prospective renters more than a new home. You can offer them a new Smart Home! Convenience, control, and peace of mind will be available on their own mobile device of choice.

Opportunities Continue to Emerge We’ve all seen the meteoric rise of new Internet services. Now you can put all of that innovation to work for you on all of your properties by building your own Wi-Fi community network and using it to offer and deliver an ever-widening array of services and products. Finding Your Path Dual Path specializes in implementing premises networks right on your properties. Our comprehensive services connect each of your properties to the

Internet, allowing you to become the source of internet-based services for each of your renters, while ensuring them top quality Wi-Fi equipment installed by Dual Path’s experts in each of your units. Our services are truly comprehensive because they include the ongoing maintenance of your network and the all-important highly responsive customer support your renters expect from their Internet Service Provider. Your renters will be thrilled with how easily and completely they enjoy life on the internet from the first moment they step into one of your properties enhanced by Dual Path. Eric Markow is Chief Technology Oﬃcer of Dual Path, a provider of high speed property-wide WiFi services. Dual Path’s customers include MDU and senior living communities who enjoy fast, reliable connectivity, delivered with old-fashioned customer service. Dual Path’s unique revenue generating model allows property owners to leverage their “Internet real estate” to maximize profits, increase resident satisfaction and retention, and increase property value. Headquartered in Phoenix, Arizona, Dual Path oﬀers property-wide WiFi, Gigabit Internet and WiFi calling solutions to properties and businesses coast to coast. For more information, visit www.dualpath.net or contact 1-800-468-6851.

Advertise in Rental Housing Journal Arizona Call 503-221-1260 for more information Rental Housing Journal Arizona · February 2016

Rental Housing Journal Arizona

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

ow are prospective tenants messages out. They want to learn and finding out about your rent- investigate the options for themselves al properties online, and what , and they have, at their fingertips, the you offer and how you differ from the ability to search and compare on their competition? What are you offering to own. Your goal is to be a part of their search. You may not win every time, retain your current residents? While many talk about Google and but you want to be on the playing field the importance of search engine opti- when they are searching. And, more mization, there is something just as im- than ever, it is not what you are saying about yourself, it is what others are sayportant that is frequently overlooked. If your potential, or current apart- ing about you. Research from CEB shows at cusment residents find your website and tomers are 57% through the buying stop by for a visit, are you providing decision before they want to talk to a helpful, useful rental information for them to help make an informed deci- sales person. sion on where to live or what your community has to offer? Or, are you just Help Not Sell To Engage Customers The goal of your website, and the conpushing at them what you want to sell? tent you have there, should be to attract, The world has changed and the key is engage and delight customers online. the quality of the rental content you are Th e stronger the content for your target proving on your website for your visiaudience, the more visitors you will attors. This is key for two reasons. tract. More visitors mean more sowings First, attention spans are short and and more showings mean more rental you only have a few seconds to grab their applications and lower vacancies. attention. The message they see should This is the core of what you have be about them, and what they need or probably heard called content marketare looking for. It is about them and what problems they are facing. It is not ing. The key is having great content, at the right time for the right audience. about you and touting your business. You should know your audience and Second, many websites are still using VALLEY, METRO, what their “pain points”ARIZONA are around the old broadcast-style message that focuses on one message to all. However when it comes to finding an apartthe web has fragmented audiences and ment or rental home. You are the exyou need to focus on how each individ- pert and talk to renters all the time. ual is different and has different needs. Listen to what they are telling you and The one size fits all message pushed in asking you. Then, you can design a core of great traditional sales language is no longer content aboutDec your rental properties Feb, Apr, Jun, Aug, Oct, as effective. and begin engaging your customers. People are tired of these broadcast type messages that interrupt them with a sales pitch. They are tuning these

How Will I Know If This Works? Once you have the key content in place, you want some way to measure engagement with your online audience to see if this is working. One of the best ways to measure this is by adding an inbound marketing program to your content. Sometimes people confuse content marketing and inbound marketing. The important thing is to do both. Inbound marketing is a great way to measure the ROI of your content marketing. For instance, if you create a great piece of content that helps your potential or current residents solve their problem with content you create, they will be more than willing to give you their email address in exchange for that great piece of content. You create a form for them to fill out which they will gladly do if the content you are providing is so valuable they might even pay for it as author Jay Baer says at convinceandconvert.com. Then, using this core piece of content, you can create additional marketing spokes around this hub which include email newsletters, social media and more forNEWS your apartment communities. APT.

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Understanding Expectations If you decide that inbound marketing and content marketing are right for your property management business – or maybe you are already using some form of it – understanding expectations is a critical factor. How are you going to measure success? What metrics are you going to track and how are you going to optimize for those metrics? The wonderful thing about digital marketing is that you can track many, many things and easily get lost in the trees and not see the forest. What are the metrics that matter to your rental business? Define the key ones and then track and watch and see what is working. Frequently it does not work right in the beginning and you will have to tweak the message to get the right fit with your audience. These are just a few key points to consider in your inbound marketing program. By John Triplett Special Editorial Contributor Rental Housing Journal oﬀers inbound and content marketing services to property management companies and industry service providers. For more information, email Inbound@ ProPubInc.com

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Rental Housing Journal Arizona · February 2016

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Rental Housing Journal Arizona

Inherit A House? How To Rent It Out.

By Cliﬀ Hockley President, Bluestone & Hockley Real Estate Services

e manage properties for homeowners with many unique circumstances but inheritance is one of the most common reasons why people choose to rent out a home. This is the story of a typical case.

The Inheritance Jayne was in her late 40’s when her grandmother died. When Jayne met with the attorney to review the estate issues he gave Jayne the keys to the house her grandmother had lived in for forty years and a copy of the property deed. This was something she had

never expected. She had decided early in her career not to invest in real estate. She wanted nothing to do with the property taxes and maintenance headaches, and now she had this old house to contend with. She asked the attorney what others have done with houses they inherited. The attorney frankly told her that she could sell it, rent it or donate it to a charity, but he advised Jayne not to make any decisions until she walked through it first. “It was not a bad investment,” he said, “It’s insured, owned free and clear, property taxes are cur-

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

The Decision Her grandmother had lived in an older one level brick house. It was 1800 square feet with three bedrooms and two bathrooms, a two car garage and a small yard. She had already begun feeling sentimental about it during the estate sale when a young man approached her with a business card. He introduced himself as the neighborhood realtor and gave his condolences about her grandmother’s passing before swift-

ly changing the subject to ask her if she had put the house on the market yet. Jayne was taken aback. This guy was rude and pushy and she wanted to get rid of him. Purely in reaction to his offensive demeanor Jayne told him with confidence that she had already decided to keep it as a rental. That was how she made her decision. But she knew nothing about being a landlord. She decided to start by consulting the attorney to first understand the laws involved. He sensed she might be in over her head during the conversation, “You may want to hire a property manager to help you,” he suggested. Jayne, a successful businesswoman, saw no reason why she couldn’t handle it herself.

Renting the House Once Jane made up her mind, she toured other house rentals in the area in person and on the internet to get a sense for market rents and conditions. Based on her research she decided to upgrade the house with more modern colors and appliances. Since the carpets were in good condition she just had those cleaned. She also received a referral from a friend for a good handyman to make some minor repairs. continued on page 11

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Rental Housing Journal Arizona · February 2016

Rental Housing Journal Arizona

Application Deposit Disputes ...continued from page 1 Cancellation after this time will result in forfeiture of my holding deposit. I must pay rent on or before my “rent start date” or my holding deposit will be forfeited and the apartment rented. (I understand that Management and Management’s employees are agents and represent the owner.) Without a written agreement, the resident could demand return of all non-refundable monies and argue there is no agreement allowing management to keep any funds. The landlord would have to argue that the money covered potential lost rent for taking the rental unit off their list of available apartments. This could lead to small claims or other legal action with the outcome decided by a court of law. To fully protect yourself and to avoid confusion or misunderstanding by a prospective resident, always use a written hold deposit agreement. Another situation involves use of the holding deposit agreement but forfeits all the deposit if the property approves the resident but he or she decides not to move in. This is similar to a leasebreak or early termination fee in which the renter pays a penalty charge for not fulfilling the lease agreement. One final suggestion is for the landlord to label the deposit as a holding

Com pet Pric itive ing

deposit, not a security deposit. The prospective resident could argue that if management calls it a security deposit, it must refund the money if he or she does not sign the lease. The theory, or argument, is that if management lists the money as a security deposit, it then becomes part of a lease. If this occurs, a landlord cannot forfeit or keep the deposit. A.R.S. § 33-1321(B) states that unless management lists a fee or deposit as nonrefundable, it shall be deemed refundable. If it is nonrefundable, management must state its purpose in writing. The definition of a security deposit under A.R.S. § 33-1310 is money given to assure payment or performance under a lease agreement. Perhaps the better way to handle these situations is to designate the money as a holding deposit and not a security deposit. However, this does not mean someone may file a lawsuit if he or she does not get a refund of the holding monies however stated in the application or holding agreement. Andrew M. Hull Hull, Holliday & Holliday, PLC www.doctorevictor.com 602.230.0088

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Rental Housing Journal Arizona · February 2016

Rental Housing Journal Arizona

Apartment Leasing and Marketing Plan ...continued from page 2 as discounted rent. For each new lease signed give the referring resident a $25 gift certificate or other attractive bonuses and incentives.

6. Current vacancy Providing a current rent roll and historical financials will be a requirement of getting financing. Your lender will ask for these documents and they will be fully apprised of any vacancies at your property. Don’t shy away from describing where you are today and where you plan to be in 6 months, 12 months, etc. Let your lender know you have a solid plan for leasing and lease renewals. 7. Upside to current rents A lender does not want to hear that you will be blazing new trails with the rents you plan to get. Do not be tempted to claim you can rent units for amounts that are far above what the apartment market receives—unless it’s true. And if you purchased a property that cannot command current market rents you’ll need to address how you plan to make appropriate changes in order to catch up to your local apartment market. On the other hand your lender will love to hear that your rents are below market and that you can easily catch up to the competition. By having solid market research on the comparable rents in your submarket you will be able to address your plan knowledgeably.

8. Annual income and expense budget forecast Provide a 12-month spreadsheet budget for income and expenses. This spreadsheet will include all income and all expenses for the property from day one through the next 12 months. You should also include all planned capital expenses that exceed normal property operation requirements such as major building system repairs or replacement. Your commercial property management company can prepare an annual budget. Use it not only to project future cash needs if any, but also to monitor your property operations. If your income falls short of projections or your expenses exceed projections you have a baseline to work from when you address the issue with your property management company. Read Creating an Annual Operating Budget for Your Multifamily Property to understand the benefits of preparing an annual income and expense forecast.

10. Advertising strategy How and where will you advertise units for rent? Make a list that includes:

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

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

• Online rental sites. • Newspapers. • Local merchants. Clearly define your marketing budget, frequency of posts/ads/notices, system for ad response follow-up and professional appearance. Will you have a designated leasing agent? If so, include that individual in your list of team members with appropriate contact information.

11. Property curb appeal An apartment building with great curb appeal is easier to rent. By investing a small amount of your time and renovation budget you can change the entire look of your property. New shrubbery, signage, blinds and landscaping can have a major impact on your ability to attract new residents.

13. Current leases and lease expiration dates Review all current leases and demonstrate a solid understanding of your current resident status and lease renewal dates. Have a plan for staggering lease renewals for all new leases. 14. Local police department premise history Most police departments keep a log of all visits to a property. This is typically called a premise history. If it’s clean use it in your marketing. For example you might advertise a “Safe, secure, quiet building.” A good report speaks volumes about the neighborhood in which your property is located. Theresa Bradley-Banta Founder + CEO Theresa Bradley-Banta writes, speaks and mentors on investing in real estate while avoiding the pitfalls that plague many investors. Over the past ten years she has owned or had primary ownership roles in single-family rentals, multifamily properties and international single-family development projects from $50K to greater than $9M. Theresa has performed due diligence on hundreds of multifamily properties and is a consultant to clients with an aggregate portfolio value in excess of $150M.

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Rental Housing Journal Arizona · February 2016

Rental Housing Journal Arizona

DEAR MAINTENANCE MEN: Landscaping, Graffiti and Power Tools

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men: I own a small apartment building with an average amount of landscaping around the property. I have a garden service that comes each week; they cut and edge and do what their supposed to do, I think, although they don’t spent a lot of time at the property. What should I expect from my landscapers or garden service? John Dear John: We have a minimum list of items that must be completed at a property. If these items are skipped or ignored, we feel the property will suffer. On a weekly basis, we expect the garden service to provide the following: 1. Cut the grass. 2. Edge the grass. 3. Pull out weeds between the sidewalk cracks, walk around the building, including the alley. 4. Turn over the dirt in all the flowerbeds each week. 5. Pick up any trash around the property. 6. Broom, blow or hose down the walkways. 7. Turn on the sprinkler lines, check for clogged heads, broken lines etc.

8. Check that the timer is set properly. 9. Cut, trim and thin any shrubs or bushes. 10. Maintain communication with the owner about problems or improvements The above list takes time, half hour minimum at a small property. If your landscape gardener completed the list on a weekly basis, you could very well have the best-looking property on the block! Which means higher rents … if you add color flowers … even higher rents! Finding a landscape gardener to do above list consistently is not easy. Ask your local apartment association for recommendations or look in your neighborhood or city for a property with outstanding landscaping and ask who the gardener is. Have him give you a quote according to your “list”. Keep in mind a landscape company or gardener who give the above service will charge more than a “blow and go” gardener, however your property will reflect their above average service.

Dear Maintenance Men: My building gets hit by graffiti on a regular basis. How can I stop this curse? Jim

Dear Jim: We understand. Our company maintains several properties that attract graffiti like a magnet. There are several solutions that may help. 1. Painting over graffiti as quickly as possible will help deter future vandalism. We recommend painting over the same day or within 24 hours of the graffiti appearing on your property. Graffiti vandals like to advertise. By removing the graffiti quickly, the less recognition the vandals will receive, thus making your building less attractive to graffiti taggers. 2. Install lighting in areas prone to graffiti. Motion activated lights also work well to deter vandals. If you have a sense of humor, install motion activated water sprinklers. 3. Planting vines or bushes along a wall or the side of the building is a good long-term solution. As the landscape grows, it will make it more difficult to graffiti your walls.

page in the trap before the wall. The kitchen sink will typically be stopped on the garbage disposal side because of improper usage of the disposer. If both sides of the kitchen sink are blocked, then it may be necessary to use the power snake. Power snakes can be very dangerous. Most operate with a ¼ to ½ horse motor, which packs quite a punch, especially if your finger or arm gets caught! If you buy this snake, we highly recommend that you get some training on your machine. Power drain cleaning is very much an “art” when done well. Knowing when you hit the stoppage and when the snake is snagged comes with experience. A broken snake cable in your drain system will be far more expensive than simply calling an experienced plumber when needed. Another thought is; most kitchen stoppages are caused by grease. Your snake will only temporarily clear the stoppage. Getting a company to “Hydro-Jet” your drains every year may help cure your chronic grease stoppages.

Dear Maintenance Men: I have an opportunity to buy a small power snake for cleaning out kitchen & bathroom drains. At the rate my tenants block their drains it should pay for its self in no time. Is this a good idea? Dale

Bio: Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultation Frankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075 Certified Renovation Company Websites: www.BuffaloMaintenance.com & www.ContactJLE.com www.Facebook.com/BuffaloMaintenance

Dear Dale: We understand that almost any excuse is a good reason to buy a power tool. But… most bathroom and kitchen drains can be cleared with a threefoot hand snake. The tub or shower will typically have a hair stoppage just past the tub shoe and the bathroom sink will have a toothpaste and hair stop-

Rental Housing Journal Arizona · February 2016

Rental Housing Journal Arizona

5 Extraordinary Ways to Market ...continued from page 1 • Concert venues. • Ridesharing apps such as Uber and Lyft (enormous advertising potential). • Local schools and universities. • Coffee shops (put your property ad on cup sleeves). • Bike sharing stations. For example, Denver B-cycle, which was the first large-scale municipal bike sharing system in the United States, is a hugely popular program especially among young urban residents. This wouldn’t happen to be your target market would it?

2. It’s Time to Update Your Curb Appeal There’s nothing worse than seeing prospective renters keep driving right on by at 30 miles an hour after a quick glance at your property. Five seconds is all it takes to make a negative, and lasting, first impression. Curb appeal is one of the most important things in property marketing and leasing. Presenting an exterior that meets your target markets’ standards must be one of your biggest priorities. You can develop incredibly creative ads that draw potential renters in droves yet lose them before they reach your front door if your apartment community has no curb appeal. Here are some inexpensive ways to make your property more attractive and welcoming: • Touch up the paint.

• Add outdoor planters that are stuffed full of colorful flowers. • Add a canopy. • Install inexpensive landscaping. • Put up modern signage (yes, maybe it’s time to get rid of your old dated signage). • Offer mobile friendly ways to contact your leasing agent. And don’t forget the people who walk by your property every day. If they’re walking, chances are they live in the neighborhood. It’s a great idea to hold open houses at your property—especially if you have fantastic curb appeal. Put out a sandwich board with balloons and grab the auto and foot traffic on busy weekends.

3. Develop Mutually Beneficial Relationships With Local Merchants When a local merchant learns that you will promote their business to your community they will embrace the idea of cross promotion. Local employers are especially happy when their employees live in close proximity to work. Proximity to work contributes to less tardiness and fewer missed days due to bad weather. Offer to waive your application fees for employees of participating merchants. Other ways to support your local merchant in exchange for free advertising are to: • Include coupons or flyers of the local business in new resident welcome packages.

• Put a “Welcome to the community! Enjoy dinner (or a discount etc.) on us!” note in all new resident packages. • Offer local merchant discounts or gift cards to new and renewing residents. • Offer a referral fee to merchants. In exchange your local merchant can: • Post your apartment building ad on notice boards or shopping carts. • Include your ad in company flyers and mailings. • Provide word of mouth advertising. The extra effort spent in meeting your local merchants can be rewarding on both a personal and financial level.

4. Send a “Feel Good” Letter to Your Current Residents Your current residents can be the most influential marketing group you have around. Sending occasional thank you letters to your residents will help establish a sense of community. But it goes beyond creating happy feelings. When your resident loves where they live they will tell their friends and family. Establish a referral incentive program at your property where each referring resident gets a gift, bonus, or rent discount. Some effective ways to get the word out are by: • Hosting a resident referral party. • Sponsoring a community yard sale. • Holding open houses with tours of the property. When you receive a compliment from one of your residents be sure to ask them if they would be willing to share it online.

Publisher Will Johnson – will@propubinc.com Designer/Editor Kristin Flores – kristin@propubinc.com

5. Pick the “Right” Property Management Company Some property management companies have amazing branding. Find out who they are and hire them—or watch them closely so that you can model their branding. These are the management companies that offer the “cool” factor to their residents. Sometimes the branding is as simple as offering a “green” element to living at their communities. For example, recycling programs are a very inexpensive and desirable service to offer at your property. You can create your own buzz and cool factor by offering something as simple as pre-leasing. Include text such as “Now Pre-Leasing for Large Two-Bedrooms” in your online advertising and on your property signage. It may not seem like a big deal but pre-leasing can tell prospective residents that they are with a proactive management company. It also implies that your property is a desirable building to live in because people want to sign leases months before they are able move-in. Theresa Bradley-Banta Founder + CEO

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

Advertising Sales Will Johnson – will@propubinc.com Terry Hokenson – terry@propubinc.com Larry Surratt – larry@propubinc.com

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

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

Rental Housing Journal Arizona · February 2016

Rental Housing Journal Arizona

Inherit A House? ...continued from page 6 Once the place was up to par Jayne placed an ad online and within five minutes started receiving calls about the house. A few roommates wanted to see the house that night. She didn’t even have any application forms!! She quickly printed out a form she found online but when they came she wished she didn’t have any to give them. They were five college students from the school down the street. One of them quickly asked her what application screening criteria she used. Another wanted to see the lease ahead of time. She hadn’t printed anything other than the forms out yet so she asked if she could e-mail it to them the next day. They didn’t mind. They liked the house so much they filled out the forms right there to be the first ones in line. Reviewing the applications after they left Jayne noticed that only two of the students had any real employment history and two never had any jobs at all. She doubted that these optimistic students could afford the rent for long. However, she remembered the attorney’s warning about the rules preventing tenant discrimination and called her local landlord association for help. She had found the application form through the landlord association website and was curious what other resources they could offer. She found the regional not-for-profit organization had plenty of good information. In addition to sponsoring monthly educational dinner meetings they had a newsletter providing tips for improving property management, sponsored annual training seminars, and had an extensive

mentor and vendor referral program. From them she got linked to a credit checking company and discovered that the roommates were not qualified to rent the house. She learned what screening criteria she could legally use and was able to get the correct rental agreements just in time for the next applicant to pass all her screening criteria.

Problems and Solutions She thought she found the perfect tenants, young, up and coming, and eager to start their family. Within a year they had their first baby. They sent Jayne the birth announcement and she was so proud she had offered them their first home. But after 24 months she noticed the rent coming later and later and then not at all. The husband said they had struggled since his wife quit work after having their son. Jayne sympathized for a while but eventually was forced to hire an attorney to evict them. They left a filthy home, with some damages, which her handyman charged her $4,000 to fi x. Only later did she realize his limitations included plumbing and he had overcharged her in attempt to fi x something he had little experience with. Just preparing the house for her second tenant turn was so painful that Jayne considered selling it after all. Then Jayne realized that she had something in common with her handyman. She had her strengths and limitations. She was at the height of her career. Her employer had just offered her a national account that would come with a boost in pay and lots of travel. She loved to travel. She loved hotels.

She loved her little high rise apartment where she didn’t need to worry about plumbing and landscaping. Wasn’t that the reason why she didn’t want real estate to begin with? She also loved the gift her grandmother had given her and decided to rethink her approach. She interviewed a series of property managers and decided that their expertise was worth the cost to take care of her home. After five years of renting out her grandmother’s home hassle free she decided to refinance it and bought a four-plex with the equity. Her property manager also took over management of that property. Over a period of 20 years she managed to increase her portfolio to 20 units (her goal), and her cash flow to $7,000 a month which combined with her savings, healthy 401K and social security benefits was enough for her to retire on and travel for pleasure this time.

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Rental Housing Journal Arizona

Rental Housing Journal Arizona 路 February 2016