<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" > <channel><title>Comments on: Three Innovative, but Risky Ideas</title> <atom:link href="http://www.biggerpockets.com/renewsblog/2009/06/07/innovative-risky-ideas/feed/" rel="self" type="application/rss+xml" /><link>http://www.biggerpockets.com/renewsblog/2009/06/07/innovative-risky-ideas/</link> <description>Learn, Network, Invest</description> <lastBuildDate>Sat, 11 Feb 2012 01:23:53 +0000</lastBuildDate> <sy:updatePeriod>hourly</sy:updatePeriod> <sy:updateFrequency>1</sy:updateFrequency> <generator>http://wordpress.org/?v=3.3.1</generator> <item><title>By: Larry</title><link>http://www.biggerpockets.com/renewsblog/2009/06/07/innovative-risky-ideas/#comment-96625</link> <dc:creator>Larry</dc:creator> <pubDate>Mon, 15 Aug 2011 22:27:42 +0000</pubDate> <guid isPermaLink="false">http://www.biggerpockets.com/renewsblog/?p=5558#comment-96625</guid> <description>Moving Assistance: Instead of physically helping them move, offer a financial &quot;rebate.&quot;  They pay for the move, i.e. rental truck, helpers (day laborers), a professional moving company, etc.  They show you the receipts, you rebate them either a flat fee ($50, $100) or a percentage based on the new rent rate (10%, 15%), after they have paid their rent deposit, pet deposit, 1st months rent, utilities in their name and moved in.You could vary the rebate based on bedrooms, i.e. 2 bedroom get $50, 3 bedroom gets $100; or dollar value, i.e. any place renting for $1,000 or less gets a $100 rebate, any place renting over $1,000 gets a $200 rebate.You would never want to physically help them move. a) You could hurt yourself lifting heavy items (back strain), or tripping. b) They could blame you for damage. c) They could allege theft (jewelry, cash, etc.). d) They could see you as more of a pushover (how many other landlords have ever offered to physically help a tenant move?). e) They could see you more as a friend (to be taken advantage of) rather than a landlord (to be respected/feared).Promotions: 1. Do the gift card promotion in stages, but increasing in value, i.e. when they move in its a $25 gift, 4 months later its a $50 gift card, 4 months later its a $100 gift card. Also - ask them where they want the gift card from.  Some may prefer its from a local grocery store rather than limited to a clothing store or electronics store. Another option is to use a card from American Express, MasterCard or Visa, so it can be spent at many different stores.2. I saw an ad where the owner included weekly lawn service in the rental price as a promotion. A different owner had an ad that promoted that the price included trash pickup (there was no municipal service, trash was picked up by a private contractor). A third ad said the rent included the monthly fees to use the area pool (the pool requires a membership based on address).3. Offer to report their payment history to the credit agencies, after 1 year of on-time payments and no issues (no destroying property, no police calls, no nuisance calls, etc.). From what I understand you can report payment information from the past, as well as current payment information.a. Each month send them a letter, email or remind them in person (if you pick up the rent in person) that they only have x number more of on-time payments and you will report the years worth of on-time payments to the credit agencies (or at least one credit agency).  After the year is up, show them proof it was reported. b. In addition, after the one year, keep reporting the on-time payments each month and remind them each time they pay.  This acts as an ongoing incentive. They will see the benefits of these positive, on-going credit agency reports each time they apply for a job or credit.</description> <content:encoded><![CDATA[<p>Moving Assistance:<br /> Instead of physically helping them move, offer a financial &#8220;rebate.&#8221;  They pay for the move, i.e. rental truck, helpers (day laborers), a professional moving company, etc.  They show you the receipts, you rebate them either a flat fee ($50, $100) or a percentage based on the new rent rate (10%, 15%), after they have paid their rent deposit, pet deposit, 1st months rent, utilities in their name and moved in.</p><p>You could vary the rebate based on bedrooms, i.e. 2 bedroom get $50, 3 bedroom gets $100; or dollar value, i.e. any place renting for $1,000 or less gets a $100 rebate, any place renting over $1,000 gets a $200 rebate.</p><p>You would never want to physically help them move.<br /> a) You could hurt yourself lifting heavy items (back strain), or tripping.<br /> b) They could blame you for damage.<br /> c) They could allege theft (jewelry, cash, etc.).<br /> d) They could see you as more of a pushover (how many other landlords have ever offered to physically help a tenant move?).<br /> e) They could see you more as a friend (to be taken advantage of) rather than a landlord (to be respected/feared).</p><p>Promotions:<br /> 1. Do the gift card promotion in stages, but increasing in value, i.e. when they move in its a $25 gift, 4 months later its a $50 gift card, 4 months later its a $100 gift card.<br /> Also &#8211; ask them where they want the gift card from.  Some may prefer its from a local grocery store rather than limited to a clothing store or electronics store.<br /> Another option is to use a card from American Express, MasterCard or Visa, so it can be spent at many different stores.</p><p>2. I saw an ad where the owner included weekly lawn service in the rental price as a promotion.<br /> A different owner had an ad that promoted that the price included trash pickup (there was no municipal service, trash was picked up by a private contractor).<br /> A third ad said the rent included the monthly fees to use the area pool (the pool requires a membership based on address).</p><p>3. Offer to report their payment history to the credit agencies, after 1 year of on-time payments and no issues (no destroying property, no police calls, no nuisance calls, etc.).<br /> From what I understand you can report payment information from the past, as well as current payment information.</p><p>a. Each month send them a letter, email or remind them in person (if you pick up the rent in person) that they only have x number more of on-time payments and you will report the years worth of on-time payments to the credit agencies (or at least one credit agency).  After the year is up, show them proof it was reported.<br /> b. In addition, after the one year, keep reporting the on-time payments each month and remind them each time they pay.  This acts as an ongoing incentive.<br /> They will see the benefits of these positive, on-going credit agency reports each time they apply for a job or credit.</p> ]]></content:encoded> </item> <item><title>By: Larry</title><link>http://www.biggerpockets.com/renewsblog/2009/06/07/innovative-risky-ideas/#comment-90127</link> <dc:creator>Larry</dc:creator> <pubDate>Wed, 29 Dec 2010 16:00:11 +0000</pubDate> <guid isPermaLink="false">http://www.biggerpockets.com/renewsblog/?p=5558#comment-90127</guid> <description>I used to work renting apartments.  We sometimes offered one months free rent, but only on a 12 month lease.  (I have seen some places offer two weeks free for 6 month leases.)We gave the new renter two options:Option # 1)  Have the free months credit applied over the 12 month lease, thereby lowering their monthly rent by $x/mo.Example: a $600 one month credit divided by 12 months = $50 credit per month for 12 months = results in $550/rent for the 12 months.  (They still had to put up the usual deposit, which equaled to months normal rent, i.e. $600 in this example.)The next lease went back to the normal monthly rental rate at that time.Option # 2) Get the full free month as the 13th month.After option 1 or 2 was complete, then they could: a) Renew for another 6 or 12 month lease (but not with another free month). b) Go month-to-month, at a higher rate (usually $25 - $75 more) than with a 6/12 month term lease. c) Move out.</description> <content:encoded><![CDATA[<p>I used to work renting apartments.  We sometimes offered one months free rent, but only on a 12 month lease.  (I have seen some places offer two weeks free for 6 month leases.)</p><p>We gave the new renter two options:</p><p>Option # 1)  Have the free months credit applied over the 12 month lease, thereby lowering their monthly rent by $x/mo.</p><p>Example: a $600 one month credit divided by 12 months = $50 credit per month for 12 months = results in $550/rent for the 12 months.  (They still had to put up the usual deposit, which equaled to months normal rent, i.e. $600 in this example.)</p><p>The next lease went back to the normal monthly rental rate at that time.</p><p>Option # 2) Get the full free month as the 13th month.</p><p>After option 1 or 2 was complete, then they could:<br /> a) Renew for another 6 or 12 month lease (but not with another free month).<br /> b) Go month-to-month, at a higher rate (usually $25 &#8211; $75 more) than with a 6/12 month term lease.<br /> c) Move out.</p> ]]></content:encoded> </item> <item><title>By: Dennis</title><link>http://www.biggerpockets.com/renewsblog/2009/06/07/innovative-risky-ideas/#comment-70233</link> <dc:creator>Dennis</dc:creator> <pubDate>Sat, 12 Sep 2009 17:43:38 +0000</pubDate> <guid isPermaLink="false">http://www.biggerpockets.com/renewsblog/?p=5558#comment-70233</guid> <description>Brendan,There is only one sure fire way to keep them in the apartment using a bonus. Give the tenant a bonus each and every week or month. One of my early mentors gave his tenants free pizza, one pie every week during the entire year. The free pizza deal would be canceled if they were late with the rent. The following year he would raise their rent, keeping the pizza deal intact.He made a deal with a local pizza join, getting a discount for sending them all of this business. These folks usually added toppings, soda, and extra pizza&#039;s. The pizza guy allowed him to post apartment for rent listings on the wall near the waiting area.This guy never had a vacancy that lasted more than a month.</description> <content:encoded><![CDATA[<p>Brendan,</p><p>There is only one sure fire way to keep them in the apartment using a bonus. Give the tenant a bonus each and every week or month.</p><p>One of my early mentors gave his tenants free pizza, one pie every week during the entire year. The free pizza deal would be canceled if they were late with the rent. The following year he would raise their rent, keeping the pizza deal intact.</p><p>He made a deal with a local pizza join, getting a discount for sending them all of this business. These folks usually added toppings, soda, and extra pizza&#8217;s. The pizza guy allowed him to post apartment for rent listings on the wall near the waiting area.</p><p>This guy never had a vacancy that lasted more than a month.</p> ]]></content:encoded> </item> <item><title>By: Steven Boorstein</title><link>http://www.biggerpockets.com/renewsblog/2009/06/07/innovative-risky-ideas/#comment-66130</link> <dc:creator>Steven Boorstein</dc:creator> <pubDate>Tue, 09 Jun 2009 02:10:21 +0000</pubDate> <guid isPermaLink="false">http://www.biggerpockets.com/renewsblog/?p=5558#comment-66130</guid> <description>Brendan, I too, am partial to the idea of minimizing the emphasis on credit checks. I would still do them, but they rank low on my scale of importance. I&#039;m more concerned with criminal background check, as far as background is concerned. In my experience, focusing on tenants that have enough income to pay the rent, a stable job, no criminal activity and exceptional attitudes are most important. Also, if you currently don&#039;t rent to tenants that have pets, you might want to consider that. I just posted an article on my site which discusses this issue. Best of luck, you are facing the same issue as many other landlords across the US!</description> <content:encoded><![CDATA[<p>Brendan,<br /> I too, am partial to the idea of minimizing the emphasis on credit checks. I would still do them, but they rank low on my scale of importance. I&#8217;m more concerned with criminal background check, as far as background is concerned. In my experience, focusing on tenants that have enough income to pay the rent, a stable job, no criminal activity and exceptional attitudes are most important. Also, if you currently don&#8217;t rent to tenants that have pets, you might want to consider that. I just posted an article on my site which discusses this issue. Best of luck, you are facing the same issue as many other landlords across the US!</p> ]]></content:encoded> </item> <item><title>By: Kyle Edginton</title><link>http://www.biggerpockets.com/renewsblog/2009/06/07/innovative-risky-ideas/#comment-66112</link> <dc:creator>Kyle Edginton</dc:creator> <pubDate>Mon, 08 Jun 2009 10:56:47 +0000</pubDate> <guid isPermaLink="false">http://www.biggerpockets.com/renewsblog/?p=5558#comment-66112</guid> <description>Thanks for the great ideas on running a rental property. Incentives, background checks and cutting your losses. Good stuff.</description> <content:encoded><![CDATA[<p>Thanks for the great ideas on running a rental property. Incentives, background checks and cutting your losses. Good stuff.</p> ]]></content:encoded> </item> </channel> </rss>
<!-- Performance optimized by W3 Total Cache. Learn more: http://www.w3-edge.com/wordpress-plugins/

Minified using disk: basic
Page Caching using disk: enhanced
Object Caching 304/308 objects using disk: basic

Served from: www.biggerpockets.com @ 2012-02-11 10:50:31 -->
