rental homes

February 3, 2015

How to Maximize your Rental Revenue from real estate

Each landlord we work with has a unique problem—filling their rental vacancy.  On the surface, It may seem like a unique problem to only this industry.  But when you apply business topology, the problem becomes quite common. In fact, there are at least 3 other industries who have almost the exact same problem. Unsold inventory. Billboards, hotels, and airlines all HATE unsold inventory because the moment when time passes, it is utterly worthless. As soon as the date changes on a hotel room with vacancies, that hotel cannot make up the lost profit.  Same with the radio station with unsold advertising slots for radio commercials. Same for airliners that taxi and take off with seats missing rear ends sitting in them. Same for landlords. Which is why we are a strong proponent of aggressive and early marketing of properties with vacancies coming up soon.  Think about the math here…. If you rent a […]
March 16, 2015

More Data Points on Rental Applications = Less Risky Tenants

I’m always confused when I see rental applications that are one page long.  In large font. With lots of white space on the paper. Such a disaster waiting to happen… If you want to secure better tenants in your rental properties, the solution is simple. Ask questions.  Lots and lots more questions. Trust me.  We process hundreds of rental apps each year and NOT A SINGLE PERSON didn’t finish the application just because we asked for lots of data on their personal and financial lives. How many data points are on our application?  164.  Yep.  One hundred and sixty-four. We gather it all upfront so that the we have all the necessary information for our Landlord’s to make informed decisions on how risky a tenant profile really is prior to making a Go/No Go decision…. An additional residual value in gathering this data up front comes into play after they have moved […]
April 8, 2015

Meth houses

Our daily interactions with Clients, peers, and prospects is always wickedly weird and unpredictable…. I got this text message from a friend of mine after he calls and I click ‘decline’ on my phone… Uh-Oh…..                 You can tell this isn’t going to be a good conversation ending well….                           Take Away:  When your Spidey-Sense goes into orbit, listen to it!!!
May 19, 2015

Why you MUST collect Security Deposit and 1st Month rent at time of lease signing

  One of the most frequent questions I receive from novice landlords is what funds to collect at lease signing. As fast as an Indy 500 car slams into the 3rd turn wall I respond with “Security Deposit PLUS 1st Month’s rent”. The reasons are simple for why you should require both to be paid at once but they all congeal into one simple concept: RISK MANAGEMENT Successful real estate leasing is almost all about risk management and the simplest way to minimize this risk is to force the tenant to have skin in the game.  Collecting essentially 2 months rent value at time of lease signing is plenty of skin for most tenants. It also sets the stage for the tenants to expect a certain standard of engagement with you as the landlord–you aren’t joking around with an important business transaction. Finally, it is an excellent secondary screening method–after all, if they don’t have […]
July 26, 2015

Top 7 reasons why Tenants lose Security Deposit money

There’s an old Landlord saying…. If it wasn’t for the dealing with Tenants and property maintenance, Landlording would be Easy! If you’ve been a Landlord for more than 2 months, you’re silently nodding your head acknowledging the above with a smirk.  It’s OK.  Everyone does it, too. You also know that, as required by State law, you are required to send the outbound tenant a letter accounting for deductions to their security deposit. With this in mind, here’s the Top 7 reasons why tenants frequently see deductions made from their security deposit funds: 1.  Light Bulbs.   If your lease document does not require the tenant to replace burned out light bulbs in your property, you are literally throwing money out the window.  When our management company moves in a new Tenant, all the light bulbs are confirmed to be working and in good condition via photographs in our extensive […]
August 24, 2015

Your Rental property is not worth what you think it is…

August 24, 2015 Today’s New York Stock Exchange activity was historical. Ouch. We may be in for continued volatility for the near term in the equity markets, which reminds me of how this relates to your rental properties… When I speak with new potential clients, the conversation usually goes something like this…. Property Owner: “I’d like to rent out my house, but I need to get at least $1500 a month because we bought it at the height of the market in 2008 and owe too much on the mortgage still to sell it. Can we get that amount for the house?” Me: “Well, according to the market comps and the demand for your house, I don’t think we can get anything higher than $1300 a month.” Property Owner: “But you don’t understand. I NEED $1500 a month in rent.” Me: “I certainly appreciate your needing to maximize the revenue […]
October 2, 2015

Millenials ARE INDEED moving to suburbs….and the impact on mass transit plans

Over the past few years, State and city officials have been GaGa over introducing enormous plans for mass transit to Indiana and Indianapolis, specifically.  The  most recent projections I’ve read include the estimate of approximately $1.1 Billion over the next 10 years. The urgency behind such a huge undertaking?  The theory that Millennials aren’t moving to the suburbs, but only want urban areas to reside and they demand mass transit, otherwise they will not relocate to Indy. In other words, it’s about trying to attract them to Indianapolis for high paying jobs. Uhhh…..only one small tiny problem with their hypothesis:  they have zero quantitative data about this projected human behavior pattern on which they are gambling tax payer money. Today’s Wall Street Journal doesn’t help their argument either.  Case in point:  Millennials are the FASTEST GROWING class of car buyers.  Here’s the entire article: Somehow, their choo-choo train idea seems to […]
March 9, 2016

Housing Market Recovery–Split like Charles Dickens classic….

Today’s WSJ published an article about the US Housing Market recovery diverging into two recoveries.  Reminds me of the Dickens classic a bit…. Essentially, lower priced inventories are vanishing fast while inventory on the higher end piles up.  While on the surface this might seem like “Economics 101” (and it does reflect some of that light) there is more to the story, especially as it relates to your rental portfolio positions and future purchases. WSJ Housing Market Takes on Split Levels 030816. Here’s some of the highlights from the article: On the low end, after a slow recovery from the housing bust, first-time buyers are finally returning to the market, bolstered by still-cheap mortgages. But after years of little new construction, inventory is still tight. High-end buyers, meanwhile, are more sensitive to the stock market’s struggles this year.           So…..how does this information impact your rental […]
April 12, 2016

Liar Loans making a Comeback….future opportunity to buy more Rental units?

Have you seen this movie yet? If not, don’t worry….you will soon possibly be re-living it in just a few years. According to this WSJ article, similar loans are coming back around. (ADA Moment here:  Did ANYONE on Wall Street or in the lending world learn a damn thing since 2008 real estate meltdown?) Sigh….. Ok, now that I have that out of my system, here’s the link to read the entire article.  Liar Loans making a comeback Here’s my thoughts on this situation: Keep some of your powder dry.  With the reintroduction of these types of higher risk loans, this implies there will be good opportunities in the next 3-5 years to pick up more distressed properties. Greed is good….for you and I to take advantage of others hubris and ignorance.  Just make sure you don’t get too greedy.  Pigs get fat–hogs get slaughtered! Take stock of your current […]
April 19, 2016

Chipping away at your Property Rights….

Property rights continue to be under full assault. Here’s another recent article describing the Who/What/Where/Why…. http://www.foxnews.com/politics/2016/03/20/no-right-to-rent-cities-barring-property-owners-from-renting-out.html