Rental Housing Journal Colorado February 2016

Rental Housing Journal Colorado

February 2016 - Vol. 8 Issue 2

3. 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. Ask the Secret Shopper – Curb Appeal

DENVER • COLORADO SPRINGS • BOULDER

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

Your Community Network –

Doorway to Delivering New Dollars from Digital Services

by Theresa Bradley-Banta

W

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

By Eric Markow

Y

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

• Local schools and universities.

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

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

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

So now that you have this network, what can you do with it? continued on page 2

MOLD

• Concert venues.

• Ridesharing apps such as Uber and Lyft (enormous advertising potential).

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.

T

What Colorado Property Managers Need to Know

here is mold everywhere. You are breathing mold spores into your lungs as you read this article. To most of us, this is not a problem. Nature has given us an immune system which allows us to resist any negative consequences of these mold spores. There are many different kinds of mold. Several of them are more likely to carry health consequences than others. Stachybotrys, or “black mold” has been known to cause breathing and other health problems for some people. Other molds seem to cause little if any health issues. Children appear to be particularly susceptible to inhaled mold spores. Persons with asthma or other breathing ailments such as COPD (chronic obstructive pulmonary disease) are also more likely to be affected by mold.

While mold spores have been known in rare cases to get into the bloodstream, in which case the health impact can be severe, the most common way that mold spores can cause difficulty is through inhaling the spores. So, while mold appearing on exposed surfaces is an indication of the likely presence of mold spores in the air, mold growing on fully enclosed surfaces such as within walls and under baseboard is often not a significant threat to health.

Advertise in Rental Housing Journal Colorado Circulated to over 7,000 apartment owners, on-site and maintenance personnel monthly.

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Mold typically grows in moist, dark environments, such as under leaky sinks or in damp drywall. Mold can appear as a black stain or as dark fuzz on surfaces. When mold is discovered, adequate remediation will depend upon how deeply it has penetrated the area on which it is found.

If the mold appears only on the surface, it can be sprayed with a diluted bleach solution, cleaned off, and sealed continued on page 5

Rental Housing Journal Colorado

Your Community Network

...continued from page 1 tential 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.

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 mo-

tion 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.

PROFESSIONAL PROPERTY MANAGEMENT SUPPORT COMPANIES Rental Applicant Screening Pre and Post Move Out Inspection Video Taped Reports Eviction Support Licensed, Bonded and Fully Insured National Coverage for Most Services PO Box 33950 Northglenn CO 80233 (303) 993-4871

2

Special Events Vacation and Emergency Coverage for Staff Security Evening and Weekend Patrol

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 po-

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.

Rental Housing Journal Colorado · February 2016

Rental Housing Journal Colorado

14 Points That Must Be in Your Apartment Building Leasing and Marketing Plan

by Theresa Bradley-Banta

I

recently received the following request from a multifamily investor:

ON-SITE-NW SEATTLE

VALLEY, METRO, ARIZONA APT. NEWS

Salsbury Industries

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

Feb,question!

Apr, Jun, This is a fantastic WhenAug, Oct, Dec 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 VALLEY, METRO, and lease units.

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

• Put the best team in place.

• Prepare an accurate budget forecast.

Jan, Mar,

• 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.

ON-SITE

ARIZONA APT. NEWS

Salsbury Industries

you negotiate a better deal with the seller. Here are 14 points to include in your planning:

May, Jul, Sep,best Nov, you have around

1. Your team: It’s time to show that

1010the Eastbuilding.

62nd Street,IfLos All before you buy youAngeles, are light CA on 90001-1598 experience or you 1-800-624-5269 • Fax: 1-800-624-5299 This information willPhone: help you finance are a seasoned professional real estate your deal and it will most likely help

September

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 lend-

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 maintecontinued on page 8

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Octoberp

ers 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.

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1/8 Page

Circulated to over 7,000 apartment owners, on-site

4 7/8” x 3 5/8” On-Site3a

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Rental Housing Journal Colorado

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

H

ow are prospective tenants finding out about your rental properties online, and what you offer and how you differ from the competition? What are you offering to retain your current residents?

While many talk about Google and the importance of search engine optimization, there is something just as important that is frequently overlooked.

If your potential, or current apartment residents find your website and stop by for a visit, are you providing helpful, useful rental information for them to help make an informed decision on where to live or what your community has to offer? Or, are you just pushing at them what you want to sell?

The world has changed and the key is the quality of the rental content you are proving on your website for your visitors. This is key for two reasons.

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

about you and touting your business.

Second, many websites are still using the old broadcast-style message that focuses on one message to all. However the web has fragmented audiences and you need to focus on how each individual is different and has different needs.

The one size fits all message pushed in traditional sales language is no longer as effective.

People are tired of these broadcast type messages that interrupt them with a sales pitch. They are tuning these messages out. They want to learn and investigate the options for themselves , and they have, at their fingertips, the ability to search and compare on their own. Your goal is to be a part of their search. You may not win every time, but you want to be on the playing field when they are searching. And, more than ever, it is not what you are saying about yourself, it is what others are saying about you.

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

Help Not Sell To Engage Customers The goal of your website, and the content you have there, should be to attract, engage and delight customers online.

The stronger the content for your target audience, the more visitors you will attract. More visitors mean more showings and more showings mean more rental applications and lower vacancies.

This is the core of what you have probably heard called content marketing. The key is having great content, at the right time for the right audience.

You should know your audience and what their “pain points” are around when it comes to finding an apartment or rental home. You are the expert and talk to renters all the time.

Listen to what they are telling you and asking you.

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

How Will I Know If This Works?

Once you have the key content in place, you want some way to measure engagement with your online audience to see if this is working.

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

Sometimes people confuse content marketing and inbound marketing. 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 for your apartment communities.

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 Colorado · February 2016

Rental Housing Journal Colorado

Mold

...continued from page 1

using a coat of sealing paint. In such treatment, it is, of course, important to prevent the mold from becoming airborne. The maintenance technician should wear a mask to avoid breathing in the disturbed spores and the areas should be aired out afterwards. If the mold has penetrated drywall or other building surfaces, then it should be carefully taken out and replaced.

If there is a danger that the tenant will make a claim for personal injury based upon the presence of the mold, then a professional mold inspection report should be obtained. Note that the mere presence of mold in a contained space does not mean that the occupants will have been exposed to the mold spores. The question is whether there are unhealthy levels of mold spores in the air of the rental unit. The inspection and report should not only look for and identify mold on surfaces, but should also take readings showing the number of mold spores per cubic meter inside the room where the mold was found.

There should also be a similar reading taken outside the building so that the two measures of mold spores can be compared. If the spore counts are similar, then there was no unusually high exposure to mold spores in the rental unit and there should be no liability for any claimed personal injury.

In 2008 the Colorado legislature passed into law a “warranty of habitability” statute. This law gave a tenant a right to terminate an existing residential lease or gave the tenant a justification for the tenant’s failure to pay rent in cases where the warranty of habitability was breached by the landlord. In order to breach the warranty, however, the landlord’s failure to repair had to render the premises hazardous to the health of the tenant or had to render the premises uninhabitable.

The law contains a statute which lists those things that a landlord must do or provide in order for the rental premises to be considered “habitable.” The list contains a variety of items such a heat and hot water and treatment of pests. However, there is nothing in the list about mold or its absence in the rental premises.

However, the clear intent of the warranty of habitability law is to protect tenants from conditions in the rental which are or could be hazardous. Most judges will want to protect renters from hazards. So, if mold is discovered, it should be treated as a habitability problem and a potential health hazard. The warranty of habitability law places requirements on the tenant to notify the

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

landlord of a maintenance issue such as mold and that such notice be given to the landlord in writing. Before the tenant can take advantage of the remedy allowing her to terminate the lease and vacate the rental premises without further legal liability, the landlord must have failed to address the problem within a reasonable time after the first written notice and must also have failed to address the problem within five (5) days after a second written notice.

Even where the tenant fails to meet her requirements under the warranty of habitability law, mold can still render a rental unit hazardous. If the premises can no longer be used for the purpose for which they were rented, the tenant can argue that she has been constructively evicted. Constructive eviction is a recognized legal theory and Colorado has ample legal precedent to allow a tenant to escape liability for rent, to terminate a lease prior to its expiration, and to obtain an award of damages caused by the constructive eviction.

If the landlord receives a report of the presence of mold, action should be taken right away to remediate the mold.

Have your maintenance staff inspect the affected area. If mold of any type is found, remediate as described above and determine whether there are any ongoing water leakage problems. Those should be addressed as well. Document the actions taken. This will accomplish two things. First, it will neutralize the mold, protect the occupants, and preserve the property. Second, it will positively impact any mold spore count that the tenant may request as a precursor to a personal injury claim.

There have been cases in which a tenant refuses to allow remediation so that the tenant can investigate whether they have a personal injury claim.

This should be documented as well. If the tenant prevents remediation, it offers the defense to the landlord that any personal injury was caused or exacerbated by the failure to treat the mold.

The tenant’s obstruction of the effort to remediate also is likely to be a lease violation and grounds for eviction.

- Phil Klass, Attorney Phil has been a practicing attorney in the Denver Metro area for twenty-eight years, fourteen of those years practicing with the law firm of Coldiron & Hamrick specializing in landlord/tenant law. Phil’s practice has focused on landlord-tenant law, business litigation, collection law, debtor-creditor disputes in the state district and county courts.

KlassLawGroup

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

Rental Housing Journal Colorado 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 Colorado · February 2016

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Rental Housing Journal Colorado

SK THE SECRET SHOPPER Curb Appeal

I

t’s that time of year when drive by traffic can slow down, as one gray, rainy day blends into another. Occasional sun breaks do little to brighten up your community, but rather expose areas with built up dirt and left over dead leaves. In some neighborhoods dense with apartment buildings, there is nothing to separate one group of gray or brown buildings from the next; they just blend into the dreariness of the day.

Several smaller apartment communities on a block could actually be mistaken for one larger community to people who are driving by. The question is:

Q

What can I do to make my community stand out from all the others in the area?

A

The first thing to take a close look at is the signage you are using. This may seem very basic, but are the signs you are using clearly visible? Can they be seen from a distance, in ALL directions, and are your signs CLEAN? Are your signs placed in such a way that it’s clear they are identifying YOUR building, and not the one next door? Is your signage creative and colorful? If advertising a promotion, are you using clev-

er, eye-catching signs, banners, and/ or balloons? Once a visitor drives into your community will they be able to find the rental office? What about managers and assistants who work out of their apartment homes? If this is you, are there well placed directional arrows and appropriate signs so prospective renters can easily find your apartment?

The second thing to carefully assess is the cleanliness of your community.

This time of year is especially challenging because of the unpredictable

weather. One day it’s pouring down rain giving you water and mud issues to contend with, followed by a sunbreak so you have just enough time to clean up the mess before the next downpour!

This is also the time of year when weeds begin making their appearance in the shrubs and flowerbeds. They are looking for the sun too, even though it’s not exactly gardening season yet! However, with “all hands on deck,” this seemingly impossible goal of a clean property is completely realistic. It can be accomplished if all staff members are willing to take on responsibility for the outward appearance of the community.

For maintenance staff, that would be washing down gutters, downspouts and siding, and power washing to keep sidewalks and other areas from taking on the dreaded “green hue” that is so unattractive this time of year. For office staff and visiting property managers, that would mean picking up litter when you see it, as well as pulling an occasional weed, and keeping flowers cleaned up.

Speaking of flowers . . . Do you have any? If you don’t have colorful plants or flowers, how are you brightening up your community to enhance its curb appeal? Is there a freshly painted fence or curbing that differs from your neighbors? What about the use of flags

or balloons to highlight the entrance to your community? If you use balloons, do you keep them properly inflated?

Nothing communicates apathy and a lack of attention to detail like deflated (dead) balloons!

No matter what you have going for you on the “inside” of your community, no one will ever find out if you can’t draw them in from the “outside.” If the basics aren’t handled at the curb, your prospective renters won’t make it to the front door.

Clear, clever signage + clean, colorful curb appeal = countless cars carrying customers!

If you are interested in leasing training or have a question or concern you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employee evaluation needs: www.jancyn.com ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops E-mail: shptalk2@gmail.com Copyright Joyce (Kirby) Bica

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Rental Housing Journal Colorado Circulated to over 7,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information 6

Rental Housing Journal Colorado · February 2016

Rental Housing Journal Colorado

5 Extraordinary Ways to Market and • 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.

...continued from page 1

• 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.

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.

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.

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Rental Housing Journal Colorado

Apartment Building Leasing and Marketing ...continued from page 3 nance 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 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.

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.

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

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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tion.com is an easy to use, database driven software. Most form fields are auto populated from the database. The modTenant Network Logo ules are all integrated and work together.

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2. Rental and Lease Forms Unlimited apply fees, and create eviction forms with • No other colors are acceptable for use for the logo. use of •aNofull line of state specific rental a few clicks altering of the logo is allowed. If you have a special circumstance that simple requires something notof the mouse. and lease forms. provided on the CD,All pleaseRentegration.com call NTN NaTioNaL HeadquarTerS 1.800.228.0989 for assistance.

Logoscreated should not be put a busy background. forms •are byoverattorneys and/or 5. Value - Large property management companies that use Rentegration.com local rental housing associations. forWHITE only generation will save time BLACK (withforms 40% gray circle) 3. Simplified Accounting - Owners and money over other methods. Mid and managers can track income and ex- and small size property managers and pense for each unit, property and compa- independent rental owners can manage ny. Perfect for mid and small size property their entire business at a fraction of the managers and independent rental own- cost of other software and forms. ers, who neither have the need or budget for larger, more expensive software.

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Rental Housing Journal Colorado

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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.

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

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

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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.

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WA-RTG-20 Washington

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CHECK-IN/CHECK-OUT CONDITION

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TENANT(S): __________ ADDRESS: __________ ______________________________ ____________________ ____________________ ______ CITY: __________ __________________UN ____________________ IT: ______________ _____ STATE: ________ Rating Scale = (E)Excellent ZIP: _________________ (E)Excellent (VG) Very Good (G)Good (F)Fair ( (P)Poor

REPORT

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48-HOUR

BEDROOM 3

NOTICE OF ENTRY TENANT(S): OR-RTG-24 Oregon __________________ __________________ ____________ ADDRESS: ____________________________________ __________________TENANT(S) : ______________________ ____________UNIT: ______________

Walls Windows

___________ ADDRESS: ___________ PET AGREEMENTCITY: ___________________________________ STATE: ________ ZIP: _________________ ______________________ ___________________ D DATE:_____ _____________ CITY:

TENANT INFORMATION

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TENANT(S): ____________________________________________________ DATE:________ IN ADDRESS: ____________________________________________________ UNIT: _________ LIVING AREAS CITY: _________________________________________ STATE: __________ ZIP: _________

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48-HOUR NOTICE OF ENTRY

Windows

Blinds/Drapes

2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ License Number: ______________

Blinds/Drapes Rods Floor Light Fixtures

Pursuant to RCW 59.18.150, this is your 48 hour notice that entering the dwelling your la landlord or their agents unit and ______________________ premises located at (Address) will be ______________________ ______________________ ____________ on between the hours of (Date) and .

(Time) (Time) The entry will occur for the Light Fixtures Fireplace ______________________ following purpose: ___________ Cleanliness Doors/Woodwork___________ ______________________ _________________________________ ___________ ______________________ Locks ______________________ _ _ Walls

DESCRIPTION OF PET(S) 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ License Number: ______________

Rods

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Additional Security Deposit Required:$

Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) understands that the additional pet(s) are not permitted unless the landlord gives ten ant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises subject to the following terms and conditions:

1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the tenant’s dwelling unit.

2) Tenant(s) shall promptly pick up all pet waste from the premises promptly.

3) Tenant(s) are responsible for the conduct of their pet(s) at all times.

4) Tenant(s) are liable for all damages caused by their pet(s).

5) Tenant(s) shall pay the additional security deposit listedCleanliness above and/or their rental agreement as a condition to keeping the pet(s) listed above.

6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the BEDROOM other tenants, guests, landlord or any other persons lawfully on the premises.

1 7) Tenant(s) shall immediately report to landlord any typeWalls of damage or injury caused by their pet.

Windows 8) This agreement is incorporated into and shall become part of the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part of this agreement Blinds/Drapes shall constitute a material breach of the rental agreement. _____________________________ Landlord

Rods

______________________________ Floor Tenant ______________________________ Light Fixtures Tenant Doors/Woodwork

Locks ©2011 NO PORTION of this form may be reproduced without written permission.

Ceilings Electrical Outlets

Ceilings

BEDROOM 1

Electric Outlets

Walls

Windows

Phone

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Blinds/Drapes

BATH ROOM Towel Bars

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BEDROOM 2 Walls Windows Blinds/Drapes Rods Floor Light Fixtures Doors/Woodwork Locks Ceilings Electric Outlets

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Ceilings

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Electrical Outlets

Electric Outlets

Smoke Detectors

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Essential Services

Plumbing

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Electricity

Hot Water

Smoke Detectors

©2009 NO PORTION

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Essential Services Plumbing Heating Electricity

©2009 NO PORTION

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Electric Outlets Light Fixtures

Rental Housing Journal Colorado · February 2016

Toilet Tub/Shower Fan (Exhaust) Floor Electric Outlets

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BATH ROOM

Towel Bars

Sink & Vanity

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Fan (Exhaust)

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Doors/Woodwork

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Hot Water

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Sink & Vanity

Smoke Detectors

©2011 NO PORTION of this form

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Smoke Detectors

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3) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ License Number: ______________

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