tenants

I'm a sucker for watching The Outlaw Josey Wales every time it is on TV. josey whalesMy absolutely favorite scene is the "Missouri Boat ride".   Josey is riding for his life, chased by the infamous Red legs.  But instead of hustling, he naps.  One cool cat.  Watch the clip below then read on....     https://www.youtube.com/watch?v=t-KEnU9TBmQ&app=desktop Read More
January 30, 2015

I'm a sucker for watching The Outlaw Josey Wales every time it is on TV. My absolutely favorite scene is the "Missouri Boat ride".   Josey is riding for his life, chased by the infamous Red legs.  But instead of hustling, he naps.  One cool cat.  Watch the clip below then read on....     https://www.youtube.com/watch?v=t-KEnU9TBmQ&app=desktop Read More
February 6, 2015

How to Hire a Property Manager Correctly…

Below is an unaltered, unedited email from Ken Anderson, a Client of Polaris Property Management.  Enjoy.} On Feb 4, 2015 7:08 PM, “Daniel Baldini” <dbaldini@polarisbrokers.com> wrote: Hey Ken, I need a favor from you, please. You have a unique situation as a landlord whereby you switched from an owner to landlord with a management guy, fired him, and hired us. I’d like to have your first-hand observations of the differences between the guy you used to use and your experience with Polaris. Would you be willing to type out your thoughts (even if simple, run of the spout stuff without editing) so we can help others understand why they should consider hiring us in the future? It would mean a lot to have it in your words, in your ideas… Dan Baldini, MBA (Ken’s response….) Sure. Here you go.. To whom it may concern, In the fall of 2013 I […]
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 […]
August 17, 2015

Are Residential Rental rates going up?

This is one of the Top 3 questions asked whenever I speak with Landlord and Investors. The answer to this simple question is anything but simple. As with any measurement, the answer is always two words:  It Depends. It depends on how you measure rental rates and what data points you are using.  Below are some of the ways we track this information on the portfolios we manage: Rent per square foot New Move-In rental rates Renewal rental rates Year-over-year blended rent inflation:  This is a method of tracking rent rate growth based on rent growth for new move-ins and renewals.  It ‘blends’ the first two rates since both rates operate off materially different consumer behavioral patterns. Stabilized Occupancy: While this is not exactly a measure of rental rate direction, it is a worthwhile tracking mechanism to observe how a portfolio is performing.  This is the occupancy level reached by a […]
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 […]
April 26, 2016

The importance of Tenant keeping Utilities on….

If you’ve noticed a common thread to my posts, it is the critical nature of setting proper expectations for ALL PARTIES in a lease transaction.  In other words, it’s critical for the Tenant to know what is expected of them just as it is for the Landlord to know their role. Today’s article is about the need to properly and repeatedly communicate with Tenants about utilities.  And keeping them turned on! Now, most leases will have clauses in them about who pays for the utilities–Tenant or Landlord–and that is good to have this clarity.  Where I see the expectation “break down” between Tenant and Landlord or Tenant and Property Manager is this:  What about the time period when a Tenant voluntarily moves out of the home before the end of the lease and they turn off the utilities thinking they’ll save money? Case in Point:  The picture of this once-beautiful […]
May 18, 2016

How to Create Margin in your Rental portfolio

Margin–that critical component Margin….What comes to mind for most real estate investors, landlords, and property managers is financial concepts, such as Profit Margin.  Or maybe Gross Margin.  Or, if you are a particularly deep financial geek–Contribution Margin.  And that’s all well and fine.  Yes, savvy investors fuel their Financial Freedom by keeping a focused eye on their financial margins because without them, let’s face it, losing money on rental properties flat out sucks. What I’m offering to plant in your fertile mind today is a different kind of margin.  In some very very smart people’s minds, like Dave Ramsey for example, it is one of the best kinds of margin.  The kind of margin I’m mentioning here is margin for the unplanned. Unplanned expenses. Unplanned sources of emotional pain. Ultimately, Unplanned changes in your overall plan for Financial Freedom. Unplanned expenses: In my experience in counseling hundreds of real estate investors […]
May 31, 2016

Young Adults choose living with Parents vs living with a romantic partner

Times they are a changin’……again. A new study by Pew Research Center shows that young people are choosing to live with their parents in a higher amount than ever before in modern history….even higher than living with a romantic partner. Why the change? Pew researchers suggest several factors, including declining employment among young men in recent decades and lingering effects of the recession. But the researchers said that the chief reason is a “dramatic drop in the share of young Americans who are choosing to settle down romantically before age 35” either with a spouse or a partner.  “Forming a new family is not nearly as important as it was for young adults,” said Richard Fry, a senior researcher with Pew, a nonpartisan think tank that conducts public-opinion polling, and does demographic research. So what does this mean for Landlords and Investors?  It could mean the following: Your rental properties with a target demographic of this age group may be tougher to fill due to financial constraints of the tenants moving out of […]
July 8, 2016

In Case of Emergency…

Run rental properties long enough and it will happen to you. You rent to a wonderful person who pays their rent on time each month, never complains, and keeps the property spotless. I’m talking a true breath of fresh air. Ahhhhhhhhh……… Then, all of a sudden, she misses the rent payment.  Weird, huh?  She’s never missed a payment.  So like a good landlord or property manager you call her and you get voicemail.  Two days go by without any return call.  Completely not like her. You send her an email.  No response. You send her a text message.  Still zero communication. Now a bit of panic starts to set in.  You leave her another voicemail saying you’d like to stop by to talk with her on Thursday after work.  Your mind starts wandering thinking things like “Did she move out in the middle of the night and just not tell […]
July 8, 2016

In Case of Emergency, Part II….

So yesterday I posed this hypothetical question of:  “What would you do if your Tenant was incapacitated and a friend of theirs needs access to the property to pick things up?” (https://danbaldini.com/2016/07/08/in-case-of-emergency/) If your lease agreement doesn’t contain specific language and data to address this situation, you as the landlord or property manager are in a tough spot. Do you deny access to the friend or do you allow him access to the tenant’s personal property? How do you know he isn’t a scam artist? How do you know he is not perhaps an identify thief who happens to know the tenant is traveling out of the country and unreadable for a few more weeks? Fact is, unless you have protocols in place prior to this event happening, you simply don’t know and you are unprepared to deal with it appropriately. Not a fun position to be in, is it? […]