All Forum Posts by: Rachel Jacobson

@Ric Kenworthy -

Social media and online ads a good ideas. Have you thought about creating a blog? Putting up useful content can drive people to your site and make them more likely to do business with you. You could write about local attractions in your area, tips for traveling to Arizona, or unique activities that are off the beaten path. People who are planning trips will want recommendations of things to do...and they'll also need a place to stay.

Check your local laws. Some states (like California) don't allow non-refundable move-in fees. I agree with Nathan G.'s statement about how charging a security deposit gives tenants incentive to earn it back by taking good care of the property. A move-in fee is already non-refundable, so they may not be as careful. 

I would second what others have said about knowing your state laws. Landlord-tenant laws are state and sometimes even city dependent. Research your local laws regarding security deposits, late fees, notice for entry, and evictions. Hopefully you won't ever have to evict, but it's better to be prepared.

Having a rock-solid lease is essential to protect yourself and your investment. Outlining your expectations for your tenants (and communicating those expectations well) will save you a lot of trouble down the line.

A common mistake for first-time landlords is to be overly lenient, especially when it comes to on-time payments. Be fair, but firm. If you allow tenants to consistently pay late, it can easily become a habit. Having a written lease is great start, but the key is enforcing the lease consistently so that tenants know what to expect. This also makes you a more professional landlord.

Good luck!

I agree that prescreening is a great way to eliminate the time wasters. Write up a generic email you can copy and paste with some questions: when are they moving, why are they moving, do they have any pets, will they meet your credit and income requirements, etc. Make the email a bit longer than normal. The people who take the time to read it and respond to your questions are interested. If they reply without answering your questions, then they don't get a showing.

Legally, I would not tell someone you don't want to rent to them before they even apply. Even if you're basing your decision off of financial data you have found, it may appear like discrimination if you haven't processed their application. Prescreening can help eliminate some of the hassle without risking a fair housing complaint.

Follow your state laws on grace periods and late fees. Some states have no required grace period, and you can begin charging late fees right away. Others have a mandatory grace period. Whatever your policy, being consistent about enforcing your late fees and due dates will encourage tenants to pay on time.

Tenant A is depending on Tenant B to get him out of hot water. Your lease should state that they are jointly and severally liable for timely rent payments. You should accept payment from one tenant and let them figure out how to divide it among themselves.

Tenant A is clearly taking advantage of you. Be firm with your late fees and deadlines. Payments should be made in full unless your tenants want to pay a portion early and the remainder on the due date. An eviction notice will let your tenant know you are serious about him paying the rent on time.

@David Woz -

While there are plenty of good property managers out there, it seems like communication is not this company's strong suit. It may be worth a conversation to clarify your expectations and come up with a plan going forward.

For you personally, what is the biggest advantage of hiring a property manager? As an out of state investor, you obviously need boots on the ground if anything were to go wrong. Would you feel comfortable making contacts with local contractors and calling on them when needed? Some may be willing to take jobs after hours for an extra fee. If you continue to invest in the same area, having a verified network of local professionals will save you time and money. Once you've established your contacts, you won't need to compare quotes anymore, because you'll know exactly who you're going to call. If you continue with a property manager, you can provide them with a list of your preferred contractors.

How important is it to you that your management company handles all payments and documentation? Would you be willing to put in the time and handle those yourself? 

Good property managers can provide peace of mind, but no one manages your property like you do. It may be worth looking into different companies or finding a more transparent means of communication.

I agree with JD in that you need to look at your market to determine the right answer. In my market, an in-unit washer/dryer is desirable and would be worth a higher rent price. While some renters might appreciate an office, everyone needs to do laundry. If your unit is not near a laundromat, installing a washer and dryer makes sense. If you go this route, make sure to plan for maintenance costs down the line. Appliances don't last forever.

I second Lisa's comment about the HOA. Even if the numbers make sense now, HOA fees can rise to the point where they put a major dent in your cash flow. I'm sure by now you've gotten a copy of the regulations and know this property can be rented out. If you can, talk to some of the other homeowners to get a feel for how the HOA operates. Hearing from them may be enlightening.

Even if there were no HOA or local restrictions, I think it depends a lot on your personality. Operating a short term rental is much more like being in the hospitality industry than in real estate. Your short term guests expect more than your long term tenants, and your business can thrive or die based on reviews.

The constant turnover and the rush to get everything ready for the next group can also be exhausting. Some people love it; others prefer the stability of a long term lease.