BiggerPockets

First Impressions Are Important in Rental Property Management

Wednesday, September 14

Most everyone knows the old adage that you only get one chance to make a first impression. That’s sage advice for most businesses, but it’s especially true when people are looking to make such an important decision as which rental property will be their next home.  This is one of the many reasons why we at The Property Management Boutique work so hard to get every detail just right.

As rental property management San Diego, it’s easy to see that the correlation between successfully attracting and securing long-term tenancies with qualified tenants can be influenced by that first impression. Your rental property isn’t the only one on the market, and your rental prospects have many options, so remember that you’re competing for the best renters with everyone in your area who has a vacant rental property. You need to make a positive impression to stand out from your competition.

Being organized and professional from your very first contact through the entire rental process instills confidence in your prospective tenants that you have the ability to meet their housing needs. A professional attitude and presentation also let them know that if problems occur with the rental property, you’re likely to address their concerns promptly.

The way you advertise or promote your rental property is part of making the first impression in rental housing, but the chief impression making factor is that very first time you have contact on the phone or in person with prospective tenants. One way to make a positive first impression is to be organized and professional, and using technology helps you achieve this state by being easy to reach and responsive to rental inquiries. Nothing turns off rental prospects faster than an inability to get in touch with you. Even the most diligent prospects only call once or twice before giving up and moving on to other rental properties.

After your prospects are willing to make a commitment and apply for your rental property, you need to have your rental application and rental contract, with all addendums, ready for their review. A disorganized rental property owner doesn’t get a second chance. Being prepared allows you to focus your energies on evaluating each rental prospect to find the most qualified applicant who’ll be your next long-term tenant.

Fringe Marketing Techniques for Your Rental Property

Friday, September 09

If the other marketing tactics listed in this blog don’t appeal to you, you may find success through property brochures, direct mailings, leasing agencies, or broker referrals. Although most owners of small to medium size rental properties or San Diego property management don’t find these services advantageous, you may want to consider the following as part of your marketing plan:

Property brochure: A property brochure isn’t necessary for most small rental property owners. However, if you have a rental property with more than ten units, you should seriously consider developing a basic one. The benefit of a rental brochure is that the prospective tenant can take the information with her and easily share it with a co-applicant. I recommend a simple tri-fold brochure that can be printed on both sides of 8 1/2-x-11- inch paper.

Direct mailings: The key to success with direct mailing is to have a good flyer or brochure combined with a mailing list that reaches your target market. If you’ve already developed your flyer or brochure, using this same marketing piece in a direct mail advertising campaign is a natural next step. Of course, like all advertising, direct mail is only effective and cost efficient if you can get your specific marketing piece into the hands of a prospective renter for your rental property when he’s looking for a place to rent. Use an outside direct mail firm for the most time and cost efficient handling of direct mail.  The Property Management Boutique has found this method to be very effective.

Leasing agencies: Leasing agencies, or rental locator firms, often have working relationships with major corporations and relocation services and have excellent tenants looking for high-end rentals, usually in major metropolitan areas. Some offer their services for no charge to the renter and are compensated by the property manager when the prospect signs a rental contract. Other leasing agencies charge tenants for their service and are only compensated when they find a rental unit that meets the renter’s needs.

Tenants relocating to an area typically don’t have the time to search for a rental property and want the leasing agency to handle matters for them. They also aren’t often candidates for purchasing a home, because they’re only staying for a specific assignment or because they want to rent in the area before making a purchase decision. You often encounter a trade-off with these renters: They’re usually very well qualified, but they’re not as likely to rent long-term. But the reality is that not all tenants stay for a long period of time anyway, and if you know that a certain tenant will only be with you for a set period (such as a one-year lease) you can adjust the rental rate to reflect this rental term.

Broker referrals: Besides selling real estate, many real estate agents are also in the business of referring renters to Chula Vista property management. Many of the calls real estate agents receive are from individuals relocating from other areas who contact an agent inquiring about a future home purchase. Although they may have long-range plans to purchase, they often rent while they become familiar with the area. Real estate agents don’t mind referring renters to an owner or property manager, because they know that today’s renter may likely be tomorrow’s home purchaser. Real estate agents are also very interested in referral fees from owners or property managers. Although the referral fee may be a small amount of money compared to the potential commission the real estate agent can earn on a sales transaction, agents are willing to be patient and accept a small reward in the short run, knowing that the big money will be earned down the road.

Check the laws in your state, because some states prohibit the payment of commissions to anyone other than real estate licensees.

Sunnyvale Manor Part Five

Wednesday, September 07

In today's blog we continue to look at Sunnyvale Manor and Margaret, the on-site manager.  As stated previously, Margaret works for The Property Management Boutique, a San Diego property management company.  As property management San Diego, Margaret is all too familiar with the ins and outs of the area.

Before she can call the new tenant about the two-bedroom unit, several tenants are waiting to see her.  One wants to rent a video and she is accommodated first.  Each month the office receives approximately 250 videos for a fee of about $250.  The office can rent the videos to tenants and easily make a profit by charging one dollar for one day or night.  The tenants appreciate the convenience and the good will, and the extra income is easily accomplished in the office.

A second tenant reports that he has lost three quarters in the coin-op laundry of his building.  Margaret writes down the building number and makes a note to call maintenance to check out the problem.  She refunds the three quarters immediately and thanks the tenant for coming in.  The third tenant has a complaint against a neighbor.  Margaret asks if she is willing to put the complaint in writing and sign it.  Margaret explains that she will not reveal to the tenant who filed the complaint, but that she doesn't do anything about a complaint unless the one complaining is willing to put it in writing.  The tenant agrees to do that and Margaret gives her the proper form.  While the tenant is filling out the complaint form, Margaret takes time to call the tenant for unit number 268.  He is delighted and will come in tomorrow morning to sign the lease, make the first month's payment plus security deposit, make the move-in inspection with Margaret and pick up the keys.

Sunnyvale Manor Part Four

Friday, September 02

As we discussed in our previous blog, Margaret, the on-site manager of a large apartment complex, employed by a Pacific Beach property management company called The Property Management Boutique, has been spending some time organizing the keys for her 610 unit complex. As any good Chula Vista property management company in San Diego knows, just organizing the keys to such a large complex can be a daunting task.

Today, Hector, the maintenance supervisor, is not at the sop, and she is told that he is at number 268, the two bedroom she is checking on.  She hurries down to that unit.

As Margaret pulls up to number 268, she is pleased to see her favorite carpet cleaning team working on the unit.  Greg and Steve always do an excellent job and have surprised Margaret more than once by saving carpet that she thought would have to be replaced.  Not only do they work miracles with stained, matted, and smelly carpeting; their prices are reasonable too!  Margaret uses them for all the carpet cleaning jobs in the complex.

Hector points out to Margaret that the interior of the unit has been painted, a window pane has been replaced, all appliances have been checked, the door has been re-keyed, heating and air conditioning are working, and this afternoon the cleaning crew will come to put on the finished touches.  There's no reason a tenant cannot move in tomorrow.  Margaret is delighted to hear this and hurries back to the office.

To be continued…

Sunnyvale Manor A Case Study Part Three

Wednesday, August 31

In our last blog, we continued to paint the picture of Sunnyvale Manor and Margaret, the on-site manager.  Margaret works for a Chula Vista property management company in San Diego named The Property Management Boutique, which specializes in Pacific Beach Property Management.  

Margaret makes a right-hand turn down at the end of the alleyway, crosses a main street and makes a left-hand turn in the next alleyway.  She is still on the property of Sunnyvale Manor and soon approaches the apartment's maintenance shop.  Eleven full-time workers are employed at the shop.  They handle their own carpentry, flooring, linoleum, screens, glass, and keys and lock work.  They don't do their own air conditioner work and Margaret thinks they should add that trade to their repertoire.  Two employees are used full time for maintenance of occupied units, two for painting, and two as porters to carry out trash and debris from vacated units.

For Sunnyvale Manor to have its own key shop is a wise decision indeed.  Let’s see, 610 units, times four keys for the door locks, plus a mailbox key for each unit.  Well, you do the math.  Not to mention the locks - 610 door knob locks, 610 deadbolt locks, and laundry room locks all keyed so that the keys from one building will open the appropriate laundry room, plus master keys for management to be able to enter any units in a given courtyard with just one key.  Factor in the turnover rate, and the charges per visit for a locksmith to change the pins and re-key the locks, and you get the idea.  For cost effectiveness, it's one of those things you've just got to learn how to do.

Margaret learned a long time ago the importance of having her keys properly labeled and her key ring with her anytime she made her rounds.  A manager in a neighboring complex was making his rounds and did not use a master key system.  He had a large key ring with him the size of one in the old western movies and the keys were unmarked.  He noticed smoke coming from the windows of one of the units.  He fumbled with the keys for many minutes before the fire department arrived.  Since he was unable to open the unit with a key, a fireman opened it with an ax.  Master keys easily labeled cost a few dollars.  Fire damage and lost rental income costs thousands.  It's really a no brainer.

Margaret also insists on keeping the master keys, both her own personal set, and the office's well hidden and under tights security.  It would be a near disaster to have a burglar steal the master keys.  All locks would have to be re-keyed and new keys issued to all tenants post haste.  Such a situation must be avoided and prevented.

Sunnyvale Manor A Case Study Part Two

Tuesday, August 30

In our previous blog, we started to tell you about Sunnyvale Manor.  It is a large apartment complex located in San Diego and is managed by The Property Management Boutique, a San Diego rental property management company serving all of San Diego County.

As Margaret reports to work at her rental property management company in San Diego Tuesday morning, the phone is already ringing and there are messages left with the answering service from the night before.  Several prospects have called to inquire if there are any one-bedroom and two-bedroom units available.  Two callers have left messages looking for a three-bedroom unit.  Sunnyvale Manor doesn't have many more three-bedroom units.  Some were divided and converted to a studio and a two-bedroom unit.  Though the three-bedroom units are spacious and highly desirable, the conversion results in an additional $300 per unit over the three-bedroom rental price.

One message is from a prospective tenant who has already been approved for a two-bedroom unit.  He needs to move in immediately but the unit has been slow to be made ready.  Except for the few three-bedroom units, the turnover rate of two-bedroom units is the lowest because many families with children rent in the area.  This prospective tenant has excellent credit and a good job, and Margaret doesn't want to loose him.  Unable to raise the maintenance supervisor on the phone or walkie talkie, Margaret decides to go and check on the unit herself.

She takes her golf cart out the back way past the carports and onto the alley between two rows of buildings.  She notices a car in one of the resident's reserved spaces with the tires removed sitting with its rims on blocks.  She makes a note of the parking space and will tag the car later, notifying the owner to move the car or make it operable, because the lease states that all inoperable cards will be removed from the premises.  If the tenant does not respond within three days, Margaret will have the car removed on one of those new flatbed tow trucks.