4 Air Conditioning Maintenance Best Practices For Summer

May 28, 2019

Here are 4 air conditioning maintenance best practices for the upcoming summer from rental property maintenance company Keepe.

Air conditioning issues pose one of the top maintenance items in rental housing every year. Now is the time to check your air conditioning maintenance before you get that call from a tenant.

1. Don’t Defer Air Conditioning Maintenance

Prevention is key to keeping your air conditioning in working order.

Don’t defer regular inspections and air conditioning maintenance requests. Deferred maintenance issues are more expensive to repair later down the road. It’s best to keep up efficient operation and ensure your property is performing well by having an expert take a look at problems you may have otherwise missed.

2. Strive for Energy Efficiency

Energy efficiency is a key indicator for determining your air conditioning system’s performance.

Increasing the energy efficiency of your systems will extend the life cycle of your infrastructure and keep energy-related utility costs under control.

3. Add a Smart Thermostat

Consider adding a smart thermostat to allow your tenants to program the temperature settings in their units. This can save energy over time.

A programmable thermostat makes it easy to match your cooling needs to your schedule. It offers more flexibility and ease for tenants to minimize air conditioning use.

4. Remove Obstructions Around the Exterior System

Regularly inspect the air conditioner system outdoors at least twice a month. Remove any loose vegetation, yard waste, and other debris from the system.

A clear zone allows your air conditioner to pull in the air it needs to control the temperature in your property.

A simple maintenance checkup can make all the difference in the world.

Utility bills jump in the summer as tenants increase their air conditioning system use. Be ready. Put in place efficient systems and processes in your maintenance strategy to ensure optimal efficiency.

Arizona Governor Signs Bill Putting Some Restrictions On Short-Term Rentals

By The Editors

May 27, 2019

Arizona Re-Thinking Short-Term Rental Laws After Sedona Uproar

Putting some restrictions on short-term rentals, Arizona Governor Doug Ducey has signed Arizona House Bill 2672 which prohibits homeowners from allowing properties to be used for special events and parties that create noise in neighborhoods.

However, some legislators feel the bill did not go far enough to protect neighborhoods.

The sponsor of HB 2672, Rep. John Kavanagh, R-Fountain Hills, said that the bill will put an end to “party houses” where a home in a residential neighborhood suddenly becomes the site for dozens and dozens of guests.

There were a number of failed attempts to amend the bill during the session to deal with the number of guests permitted in a house. However, the main part of the bill that made it through prohibits vacation rentals from being used for non-residential purposes, like special events, retail operations, restaurants or banquet space.

Short-term rentals bill does not go far enough

“What originally was sold as a way for empty-nesters and other owner-occupants to make extra money by renting a spare bedroom to a foreign tourist has become a multi-billion dollar industry that heavily caters to large groups and special events where entire homes are rented out and treated like bars and concert halls,” Rep. Isela Blanc, D-Tempe, told the Arizona Capitol Times.

Blanc said the bill doesn’t go far enough. She suggested that cities be permitted to limit these rentals to houses where the owner is the resident or the house is a second home.

“However, if you are just a capital investor coming in and changing the neighborhood completely by buying up as many homes as possible so you can continue to profit by calling yourself an Airbnb business, then you should be treated as a hotel,” Blanc told the Arizona Capitol Times.

Data from the Denver-based research firm AirDNA shows the Airbnb market has exploded in Arizona during the past five years, according to the Arizona Republic.

In late 2014, Phoenix only had 687 properties for rent listed on Airbnb, and only 245 of them were rented even one night in December of that year.

By March of this year, that number had boomed to 4,224 listed properties.

Are You Confused By Requests For Service, Emotional Support And Assistance Animals?

By The Editors

May 26, 2019

Are You Confused By Requests For Service, Emotional Support And Assistance Animals?

Consider the scenario where a prospective resident who is blind makes an accommodation request for her service dog or assistance animal to live in her apartment, even though your property doesn’t allow pets. Are you required to grant this request? This week the Grace Hill training tip takes a look at this issue.

By Ellen Clark

The FHA prohibits discrimination based on disability and requires housing providers to make reasonable accommodations for people with disabilities.

You probably know that you would need to grant this request. But what if the prospect requested an emotional support bird in addition to a service dog? What if she gave you an online “certification” for the emotional support bird? What if the requested service dog was a restricted breed in your county?

Accommodation requests related to assistance animals are prevalent, yet they cause much confusion. This is understandable – multiple laws apply and use different terms and definitions, there are many kinds of assistance animals that help people with many types of disabilities (some of which are not obvious), and online sites have surfaced offering questionable documentation.

So, what you can you do? First, you can download The Multifamily Property Manager’s Guide to Handling Assistance Animals for a handy primer on this tricky topic. Then follow these suggestions for reducing your risk of discrimination when it comes to assistance animals.

Know the laws on assistance animals, service and emotional support animals

Three laws relate to rental housing and service and assistance animals:

The Fair Housing Act (FHA)
Section 504 of the Rehabilitation Act of 1973 (Section 504)
The Americans with Disabilities Act (ADA).

The FHA applies to almost all rental housing. Among other things, it prohibits discrimination based on disability and requires housing providers to make reasonable accommodations for people with disabilities, such as making an exception to a no-pet policy or a breed restriction.

Housing that receives federal financial assistance from HUD must also comply with Section 504. Like the FHA, Section 504 prohibits discrimination based on disability and requires housing providers to make reasonable accommodations for people with disabilities.

Whereas the FHA and Section 504 prohibit discrimination in housing, the ADA prohibits discrimination based on disability in all areas of public life, including schools, transportation, and all public and private places that are open to the public. The ADA requires you to let service dogs accompany their owners in any area of the community that is open to the public, such as the leasing office.

Know assistance animals terminology and definitions

An assistance animal may be any type of animal and is not required to have specific training.

The FHA and Section 504 use “assistance animal” as a broad term to describe any animal that works, provides assistance, or performs tasks for the benefit of a person with a disability or provides emotional support that alleviates one or more symptoms or effects of a person’s disability.

Under the FHA and Section 504, service animals, emotional support animals, and companion animals are all considered assistance animals. An assistance animal may be any type of animal and is not required to have specific training.

The ADA uses the term “service animal” and defines it specifically as a dog that has been individually trained to do work or perform tasks for people with disabilities. Emotional support animals, companion animals and animals other than dogs (and sometimes miniature horses) are not considered service animals under the ADA.

You cannot deny a reasonable accommodation request because an animal does not meet the ADA definition of a service animal. Under the FHA and Section 504, reasonable accommodations must be granted for assistance animals, which include service animals, emotional support animals, and companion animals.

Residents making accommodation requests are not required to use specific terminology

If an animal works, assists, or performs tasks for the benefit of a person with a disability or provides emotional support that alleviates one or more symptoms or effects of a person’s disability, it doesn’t matter what term someone uses, it is an assistance animal under the FHA and Section 504.

Think of assistance animals as working animals, not pets

Thinking of assistance animals as working animals, not pets, can prevent confusion. Under the FHA and Section 504, assistance animals may be cats, dogs, birds, turtles, rabbits, hamsters, fish, or nearly any other type of animal. It is not the type of animal that matters, but rather the function the animal serves.

Understand assistance animal documentation

Currently, there are no legally recognized organizations for registering service or assistance animals. Sites that claim to be certifying bodies or that offer official registrations are misleading because there is no such thing.

Under the FHA, there is no requirement that assistance animals be trained. Documentation only needs to establish that the person has a disability and that the animal provides disability-related assistance or emotional support. An animal’s training is not relevant when evaluating a reasonable accommodations request.

HUD states that you are entitled to documentation from a reliable third party that is in a position to know about the individual’s disability. If the organization or person who issued the documentation has never talked to or met with the person requesting the accommodation, it is likely reasonable to ask for supplemental information.

No matter what source the documentation is from if you are suspicious, do not immediately deny the accommodation request. Instead, start a conversation with the resident to gather more information, and consult your legal counsel.

Know how to handle accommodation requests

Remember these three criteria when considering accommodation requests:

Under the FHA, there is no requirement that assistance animals be trained. The person must have a disability. If the person’s disability is obvious, you may not ask questions. If the disability is not obvious, you may ask for reliable documentation that the person has a disability. Never ask for details of a person’s physical or mental disability.
The animal must serve a function directly related to the person’s disability. If the disability-related need is obvious, you may not ask questions. If the need is not obvious, you may ask for reliable documentation that the animal provides disability-related assistance or emotional support
The request must be reasonable. You are not obligated to grant every request.

Continuously educate yourself

The best way to avoid confusion is to read as much as you can and get exposure to the scenarios that come up in real life. This is the best way to learn things like:

A resident may be entitled to multiple assistance animals.
You can deny a request if that particular animal has harmed someone in the past.
You can usually take action when residents with assistance animals violate community rules.
And more!

This stuff is complicated – and serious. You’ll find that The Multifamily Property Manager’s Guide to Handling Assistance Animals answers a lot of your questions about assistance animals, including how to tackle conversations with other residents. But when in doubt, ask your supervisor or legal counsel.

Read Ellen’s blog post here.

Recent Grace Hill training tips you may have missed:

What Do You Do When Assistance Animals Break The Rules?

How To Handle Suspicious Documentation For Assistance Animals

How A No Pet Policy Can Be Discriminatory

Red Flags In Evaluating Documentation For Assistance Animals

About the author:

Ellen Clark is the Director of Assessment at Grace Hill. Her work has spanned the entire learner lifecycle, from elementary school through professional education. She spent over 10 years working with K12 Inc.’s network of online charter schools – measuring learning, developing learning improvement plans using evidence-based strategies, and conducting learning studies. Later, at Kaplan Inc., she worked in the vocational education and job training divisions, improving online, blended and face-to-face training programs, and working directly with business leadership and trainers to improve learner outcomes and job performance. Ellen lives and works in Maryland, where she was born and raised.

About Grace Hill

For nearly two decades, Grace Hill has been developing best-in-class online training courseware and administration solely for the Property Management Industry, designed to help people, teams and companies improve performance and reduce risk. Contact Grace Hill at 866.472.2344 to hear more

Good Landlord Pac Supports Landlord Efforts In Oregon Housing Issues

By The Editors

May 23, 2019

Ron Garcia Responds To Landlord Leaving the Business Good Landlord Pac Supports Landlord Efforts In Oregon Housing Issues

By Ron Garcia

My name is Ron Garcia. I am an Oregon landlord and property manager. I am the Past President of The Rental Housing Alliance Oregon and currently serve as its Legislative Director. Several years ago I co-founded “The Good Landlord PAC” (www.goodlandlordpac.com) which has supported pro-landlord lobbying efforts locally and statewide. I have worked many hours both in the background and in the foreground for local and statewide property rights in a highly charged political climate.

As I read Carlos Garcia’s “A Good Landlord’s Open Letter on Why He Is Getting Out of Business” in the Rental Housing Journal I felt compelled to respond. Although he and I are unrelated and we have never met, we seem to share some common background and sentiments. But we have some differences.

I applaud his commitment to being a “good landlord”; I empathize with his frustration towards new tenant protection laws; and I congratulate him on his decision to sell.

I am equally certain that he, (like so many other property owners today who are making that same decision to liquidate), has been able to cash in on the substantial gains and profits accumulated due to the great residential investment market Oregon has experienced in recent years.

This is a far cry from what we landlords and property owners were experiencing 10 years ago while in the midst of the “great recession”. In 2009 anyone would have sold to any buyer for any price that would have pulled them out from being under water in their real estate investments. Today we can casually reflect on the notion (or cliché) that “real estate is cyclical” and chalk up our newfound wealth to some inherent truth that financial gains in real estate are a “divine right” and are ours to be expected.

From a tenant advocate’s viewpoint, landlords have been the entitled class for too long. Now they want to inject parity into the marketplace. Tenant advocates have the attention of the liberal party. The liberal party has a Super-Majority in our state government. They see a housing crisis in what owners view as a great housing market. They believe it needs to change. Government affects change through legislation. All legislation has “unintended consequences.” And as our society continually learns through the empirical science of economics, the market makes corrections.

I was told years ago that there is no such thing as a bad real estate investment…. But there is such a thing as bad real estate timing.

We are seeing many landlords today that are following Carlos Garcia’s reasoning and are “getting out of the business” – at least in Oregon. It is a rising tide and it will have an effect. The question is to what end?

For every unit we see go on the market, we see a new buyer ready, willing and able to perform. Our core issue of housing supply and demand is heavily weighted on demand with no relief in sight. Landlords have exasperatedly testified against rent control because it ultimately shuts down supply, while demand continues to grow and thus RAISES PRICES. We know this is true! So now we can all experience that truth together. Check every major city that has ever enacted rent control in the past and you will find the highest appreciation rates in the country.

Rent control creates a new reality: cap rates plummet yet values soar.

In Oregon, tenant regulations have created new business management realities. Have they gone too far? Most landlords don’t need much time to answer that. The real question is how will they affect our investments? What time does our real estate clock say it is?

My watch says this: It’s time to work in our new reality. It is a hard time to be a rental housing provider and a great time to be a residential housing owner.

Ron Garcia is Principal Broker for The Garcia Group www.garciagrp.com

Ron Garcia, Principal Broker
The GARCIA Group
OR & WA Real Estate Service
Rental Property Management

The Pros And Cons Of Renting to College Students And Maintenance Tips

By The Editors

May 22, 2019

The how and why of renting to college students is a practice that deserves special attention and precautions and is the maintenance checkup from Keepe this week.

In most cases, properties located on or near college campuses are extremely profitable.

As new students come and graduates go, the need for practical housing remains.

Most college-age renters prioritize proximity and accessibility to convenient transportation when looking for a place to live in while attending school. Also a large number of universities report a growing trend for graduates to remain in their college towns as opposed to relocating home whenever possible.

Simply put, being able to cater to a local student demographic can almost guarantee continued demand from new renters. And, in high-demand locations where the number of students looking for housing surpasses availability of affordable or available properties. This means a property without particularly appealing features or amenities can still be feasibly rented.

The pros of renting to college students

- Low vacancy – properties located nearby colleges attract a steady stream of prospective renters. As new students join the university and graduates depart, there will always be students looking for housing that allows them to live nearby their school.

- Leveraging value – while this changes from college town to college town and is largely dependent on the overall size of the student body of a particular university, in most cases homeowners and/or property managers can easily demand higher rent prices for properties that would typically be worth for far lower (as far as size, amenities and special features are considered). In high-demand years, in which a particularly high number of students is looking for off-campus housing, it is possible to tailor rent to demand and secure particularly high profits.

- Necessity – students are rather low-maintenance. Their top priority is their ability to easily travel to their university and be able to enjoy greater freedoms than they would in their family home or in a college-owned dormitory. Keeping college-age tenants satisfied should be fairly easy and does not require being able to offer a property with high-end features.

The cons of renting to college students

- Turnarounds – If a landlord or property manager wants the stability of having a long-term renter, students are unlikely to fulfill this expectation. For most properties, it is rare enough for the same renter – or group of renters – to live in the same property for all four years of their college experience. Most renters only stick around for one school year at a time.

- Inexperience and Immaturity – college students are new to renting. They have no rental history or references to evaluate. They often do not know what committing to a lease really means.

- Lifestyle – college students may be inconsiderate of their surroundings as they are too busy with school or enjoying themselves a little too much. They can throw parties or play loud music. Keeping the space clean and tidy is not a priority for many of them. They can compromise the actual conditions of a property.

- Damage – their unique lifestyle brings wear and tear. A property viewed by tenants as a very temporary space can lead to it being damaged by accidents or disregard.

5 maintenance tips for renting to college students

If you are a landlord or property manager who thinks renting to college students is a good idea, here are some helpful maintenance tips to consider:

1. Demand Higher Deposits and Guarantees: when it comes to opening a property to unreliable tenants, it’s definitely better to be safe rather than sorry. Higher security deposits and even the involvement of parents or guardians who can co-sign to cover repair costs is one of the best ways to stay protected.

2. Rethink Pet-Friendly Policies: for some college-age renters, being able to own their very own, first pet is one of the freedoms they seek alongside independently living in a place of their own. While allowing pets in a property – even with a higher security deposit to match – can make it stand out as the ideal place for pet-loving students, it can easily increase the gravity of damages that might occur. Younger pet owners are not always the most responsible. Remember they are busy with academics and extracurricular interests. Think twice about your pet policy and college students.

3. Invest in Regular Checkups: schedule regular maintenance checkups. It is the best way to avoid suddenly finding damage at the end of the lease. Do not wait until the very end of a tenant’s occupancy period to check. Tenants should be informed from the start of their occupancy that seasonal checkups and inspections will be performed in the property. This will help holding them accountable.

4. Structural Upgrades Come First: when thinking about upgrading or touching-up a certain part of the property – especially as a part of a “rental turn” – it’s important to think of what would be most helpful in adding an extra line of protection for the property. While tenants might love a brand-new stove, your money will probably be better spent turning a “damage-magnet” – like carpet flooring, which is prone to stains, discoloration, bad odors and tears – into a low-maintenance, practical feature.

5. Consider a New Maintenance Solution: with inexperienced tenants come a lot of emergencies, from accidental damage to practical, everyday concerns. Some tenants might have no idea how to operate a garbage disposal system or change a lightbulb. This cam mean frequent calls for help. Property managers overseeing a large number of properties will likely benefit from relying on a maintenance professional who can be on-call and step in when needed.

Summary on renting to college students

College students remain a one-of-a-kind tenant demographic that should not be underestimated. Their age, lifestyle, and overall needs are all important factors that a homeowner and/or property manager must take into consideration.

Seattle Rents Edge Up Slightly Over the Past Month

By The Editors

May 21, 2019

Seattle Rents Edge Up Slightly Over the Past Month

Seattle rents increased 0.2 percent in April, and are up slightly by 1.0% in comparison to the same time last year, according to the latest report from Apartment List.

Currently, median rents in Seattle stand at $1,340 for a one-bedroom apartment and $1,660 for a two-bedroom.

This is the fourth straight month Seattle rents have increased after a decline in December of last year.

Seattle’s year-over-year rent growth lags the state average of 1.7%, as well as the national average of 1.5%.

Rents rising across the Seattle metro

Throughout the past year, rent increases have been occurring not just in the city of Seattle, but across the entire metro.

Of the largest 10 cities that Apartment List has data for in the Seattle metro, all of them have seen prices rise.

Lakewood rents increased moderately over the past month

Lakewood rents increased 0.3% over the past month, and have increased significantly by 4.2% in comparison to the same time last year.

Currently, median rents in Lakewood stand at $1,180 for a one-bedroom apartment and $1,460 for a two-bedroom.

The city’s rents have been increasing for 18 straight months; the last time rents declined was in January 2015. Lakewood’s year-over-year rent growth leads the state average of 1.7%, as well as the national average of 1.5%.

Bellevue rents increased significantly over the past month

Bellevue rents have increased 0.4% over the past month, and are up moderately by 2.6% in comparison to the same time last year.

Currently, median rents in Bellevue stand at $1,900 for a one-bedroom apartment and $2,370 for a two-bedroom. This is the fourth straight month that the city has seen rent increases after a decline in December of last year.

Bellevue’s year-over-year rent growth leads the state average of 1.7%, as well as the national average of 1.5%.

Seattle rents less affordable than other cities

As rents have increased marginally in Seattle, a few other large cities nationwide have also seen rents grow modestly. Compared to most similar cities across the country, Seattle is less affordable for renters.

Rents increased slightly in other cities across the state, with Washington as a whole logging rent growth of 1.7% over the past year. For example, rents have grown by 1.8% in Vancouver and 1.2% in Spokane.
Seattle’s median two-bedroom rent of $1,660 is above the national average of $1,180. Nationwide, rents have grown by 1.5% over the past year compared to the 1.0% rise in Seattle.
While Seattle’s rents rose marginally over the past year, many cities nationwide also saw increases, including Phoenix (+3.9%), Austin (+3.5%), and Denver (+2.0%).
Renters will generally find more expensive prices in Seattle than most other large cities. For example, Spokane has a median two-bedroom rent of $900, where Seattle is more than one-and-a-half times that price.

Methodology

Data from private listing sites, including Apartment List’s own data, tends to skew towards luxury apartments, introducing sample bias. In order to address these limitations and provide the most accurate rent estimates available, Apartment List now starts with reliable median rent statistics from the Census Bureau, then extrapolates forward based on its own rental listing data, using a same-unit analysis similar to Case-Shiller’s approach, which compares only units that are available across both time periods to provide an accurate picture of rent growth in cities across the country.

Apartment List

Apartment List is a growing online apartment rental marketplace on a mission to make finding a home an easy and delightful process.

Mayor Says New “Renting in Seattle” Program to Provide Resources for Landlords and Renters

Portland Apartment Job Openings Half Of All Real Estate Sector Jobs

By The Editors

May 20, 2019

Portland Apartment Job Openings Half Of All Real Estate Sector Jobs

Portland apartment job openings represent almost half of all the job openings in the real estate sector, according to a new report from the National Apartment Association (NAA).

Portland and Denver, along with Raleigh, Kansas City and Las Vegas are the top 5 in the country with about 50 percent of real estate jobs driven by openings in the apartment industry.

In addition to the Portland apartment job openings, there are more than 8,000 apartment jobs open across the country, according to the most recent jobs report from the National Apartment Association.

With a busy leasing season ahead, the open jobs in the apartment industry represent 37 percent of all jobs in the broader real estate sector nationally, according to the report.

Property manager apartment jobs in demand

April’s edition highlights Property Manager/Community Manager positions, with a median salary of $42,059, the report says.

In addition to property management experience, employers are seeking candidates with strong budgeting skills, staff management skills, and experience with property management software.

The recent influx of new supply in the Raleigh MSA has contributed to the high concentration of demand for property managers.

National apartment association jobs report background

The NAA jobs report focuses on jobs that are being advertised in the apartment industry as being available, according to Paula Munger, Director, Industry Research and Analysis, for the National Apartment Association’s Education Institute.

“Our education institute is a credentialing body for the apartment industry. They hear often that one of the biggest problems keeping our industry leaders up at night is the difficulty in finding talent, attracting talent and retaining talent,” Munger said. “Labor-market issues are happening in a lot of industries, certainly with the tight labor market we have.”

NAA partnered with Burning Glass Technologies. “They have a labor-job posting database that is proprietary,” she said, and they can “layer on data from the Bureau of Labor Statistics (BLS). We looked at that and thought we could do something that is really going to help the industry and help benchmark job titles and trends as we go forward,” Munger said.

Last month’s report: Job Openings In The Apartment Industry Are Growing

What Do You Do When Assistance Animals Break The Rules?

By The Editors

May 18, 2019

Housing Authority Settles For $1 Million With Tenants Over Emotional Support Animals

“I didn’t know” is not an acceptable defense if you face a discrimination charge, so the Grace Hill training tip of the week focuses on assistance animals and rules for them in your apartments.

By Ellen Clark

An accommodation for an assistance animal that would otherwise be prohibited in an apartment complex is a common request property managers and landlords get.

Remember, while assistance animals are not pets, this does not mean they can run loose in your community.

Rules for assistance animals must apply to all animals on your property

Here are some rules and policies you can use for assistance animals.

- Residents must pay for damages, beyond reasonable wear and tear, caused by the animal.

- All animals must be vaccinated in accordance with state and local laws.

- Residents must dispose of all waste and observe all leash rules.

Be sure to let tenants know that you make reasonable accommodations for people with disabilities who need an assistance animal.

You may require leashes but a dog fetching an item for a person with a disability is ok

For example, you can require that animals be on a leash outdoors.

But you may need to make an accommodation for a resident with a disability who has a dog that fetches items for him.

In the event where an assistance animal is violating community rules, allow the resident to attempt to resolve the situation before taking steps to remove the animal.

What can you do if owners of assistance animals break the rules?

You can take action when residents with assistance animals violate community rules. However, proceed carefully and consult your legal counsel.

Give the resident opportunities to remedy the situation before taking steps to remove the animal.

Send written warnings recognizing that the animal is an assistance animal, and reminding the resident that they must follow reasonable rules of conduct.

If the situation continues, let the resident know that if the problem persists the animal may have to be removed and alternative accommodations will be explored.

Document disturbances or damage in writing and with photographs if possible. Phone or in-person conversations will not be as useful as written documentation if you find yourself in legal proceedings.

Summary:

Remember community rules for assistance animals must apply to all animals in your community.

Resources:

Recent Grace Hill training tips you may have missed:

7 Ways To Stay Out Of Trouble When Checking Criminal History

How To Handle Suspicious Documentation For Assistance Animals

How A No Pet Policy Can Be Discriminatory

About the author:

About Grace Hill

Photo credit cylonphoto via istockphoto.com

Why Digital Collections Is the Future for Property Rentals

By The Editors

May 16, 2019

Landlords should consider digital collections to get rent due them

By Ohad Samet

As a landlord, you’ve probably had tenants move out without paying rent or move out with damages that exceed the amount covered by their security deposit.

This is money that you need, and are rightfully owed.

When trying to recover it, should landlords hire a debt collector or contact their old tenants themselves?
How should landlords think about debt collection as it relates to their brand and cash flow?

While other aspects of rental property management have evolved with new technology and the Internet, collecting on past-due accounts hasn’t.

Traditionally, landlords focus on call-and-collect tactics and mailed statements, an unpleasant user experience that creates adversity—and usually proves futile. In today’s digital age, people move, but online identities are pretty stable.

Consider digital collections and mobile-first approach

It’s time to consider a digital- and mobile-first approach to collecting past-due amounts and protecting your brand, while making your accounts receivables whole.

We handle nearly every aspect of our lives online and through our smartphones. From ordering food delivery or summoning a rideshare car to online banking, consumers have come to expect a digital-first experience for almost everything. With the barrage of robo-calls in the past few years, even those of us who prefer calls to online are having a hard time. Debt collection isn’t exempt from this trend. It’s not just millennials, but people of all generations who have moved their lives partially or completely online.

Going digital isn’t only about reaching consumers more easily; it’s not enough to just start sending emails. The overall user experience tied to digital communications such as emails, text, push notifications, chat, and so on, matters a great deal, since consumers have rightfully grown accustomed to better service through digital means.

The design, timely delivery, content, and tone of those messages matter. So does the post-click experience, once they land on your website or talk to an accounts-receivable clerk. Collecting debt with empathy in the digital age is both an art and a science.

Confused? Not sure where to start? We gathered a few starting points for you:

Understand and acknowledge your tenant’s point of view

Engaging with an old tenant isn’t easy when you’re trying to collect on rent money and/or compensation for repairing rental unit damages.

Nevertheless, acknowledging that your tenants may also be going through a rough time can help you start a productive conversation. It’s a first step to help rebuild that trust between you and your former tenant. Having an empathy-based collection-outreach program ensures you are building upon that foundation of trust with respect and dignity.

Make a plan to diversify your engagement channels

Design a process that involves reaching out via multiple channels (e.g. email, text) over several weeks, in a way that is both persistent but not overly invasive.

Stay away from aggressive, automated-dialing campaigns or multiple contact attempts per day. While you may think that such methods will get you paid more often or faster, the reputational and legal risk is just too high. More often than not, aggressive calling results in the exact opposite of what you want, which is complete disengagement from the people you’re trying to reach. Design a program aimed to engage and maintain a conversation, rather than using digital channels to more effectively pester consumers at a high frequency.

Lead with and uphold your empathetic approach

People will not always respond exactly the way you want to in your attempts to get in touch.

While some may appreciate your kinder, empathetic approach and try to work with you, others will be evasive, scared, angry, and even verbally abusive. When the latter happens, especially on a call, the temptation to “get back” at the tenant will be strong—and utterly wrong. Again, acknowledging the other person’s feelings and communicating that back to him or her helps your tenant feel understood.

You should be prepared to offer payment plans as an option when acknowledging that maybe they can’t pay it all in full at that moment. Sticking to a pre-designed, pre-written empathetic script and process is key to improving your success rate.

Optimize, optimize, optimize

Write the best messages possible, set up a consistent process that leverages empathy and collect data on what works and what doesn’t.

Optimization isn’t an end goal, but a practice. You can change the time, frequency, channel and content of your outreach attempts, as well as the payment arrangements you offer. Finding what works for you and your tenants is worth the time and effort.

Seek professional help

Sometimes people just aren’t willing to talk, or your internal team members don’t have the bandwidth to continually optimize the process.

That’s when a new wave of digital-first, data-driven collection services can augment, and often take over, collections once you’re no longer interested in running it in-house. Seeking professional help can also open up new communication channels that would otherwise be too labor-intensive to implement on your own, such as emailing and text messaging at scale. Find a provider that can understand and support you while ensuring you get paid and providing you feedback.

Transitioning to a digital collections strategy is well worth the effort. The saying, “you catch more flies with honey than you do with vinegar” is particularly relevant in collections. Having the right empathetic approach and partner will result in higher recovery rates, and better relationships.

Ohad Samet is the co-founder and CEO of TrueAccord, the leader in digital collections. TrueAccord’s machine-learning platform adapts to consumer behavior with personalized and empathetic communications to deliver the right payment option at the right time and on the right channel. By focusing on great user experiences, TrueAccord provides businesses with superior debt collection results. For more information, visit www.trueaccord.com.

How to Better Protect Your Pet-Friendly Rental Properties

Holly Welles

May 16, 2019

Rental Has No-Pet Policy; What Are My Rights Regarding Therapy Or Service Dogs?

Here are 5 ways you can better protect your pet-friendly rental properties.

By Holly Welles

Before you included a pet policy in your lease, you weighed the pros and cons. On the one hand, you would increase interest in your rental properties and improve their profitability. A pet policy would have clear benefits for your bottom line.

On the other hand, you would have to spend a significant sum of money on maintenance. Cats and dogs aren’t exactly kind to hardwood flooring, and the condition of your rentals could suffer. The repair costs would add up quickly over time.

Regardless, you moved forward with a pet policy. Your tenants are now living with their furry friends, and you’ve had to address a diverse variety of new challenges. If the rental’s interior wasn’t enough, you also have to worry about the lawn.

So how do you begin to address these issues in your pet-friendly rental properties? How do you manage your new commitment? Though it may seem overwhelming at the moment, there are strategies to protect your rental properties, and any of the five suggestions below will help.

1. Take Precautionary Measures

Even a minor adjustment to the interior of a rental is enough to prevent damage. When you replace a set of longer curtains with thick blinds, you stop curious kittens from testing their claws. Here is a long list of precautionary measures to reduce risk.

To provide another example, you can encourage your tenants to place a waterproof mat beneath their pet’s food and water dishes. It’s a relatively simple addition that will guard against moisture and preserve the condition of your properties.

2. Install Scratch-Resistant Flooring

You may feel like your flooring’s at risk in your pet-friendly rental properties, which is perfectly rational. An overexcited dog can cause an enormous amount of destruction if they hear a doorbell. However, you have a variety of methods to mitigate the damage.

How to Better Protect Your Pet-Friendly Rental Properties — Scratch-resistant flooring and materials might be something to consider.

If you’re interested in a long-term solution, scratch-resistant flooring is effective. You have many things to consider of course, like traction, comfort, resistance and appearance, but it’s a reasonable option. Laminate boards have particular appeal for their durability and broad spectrum of styles.

3. Organize a Screening Process

No two dogs are exactly alike. They may share similar qualities if they’re the same breed, but their personalities can dramatically differ. One of them may have an enormous amount of energy, while another may prefer to sleep most of the day.

Naturally, you want to ensure your tenants’ pets won’t cause any problems. You can’t afford to generalize just because the bulldogs you’ve met in the past were docile and friendly. Instead, you can implement a screening process with these questions.

What is the pet’s size?
What is the pet’s breed?
How old is the pet?
Is the pet trained? Is it house- or litter-box trained?
Does the pet have its vaccinations?
Does the pet have any history of aggression?

You’ll gradually gain a better understanding of the tenant’s pet, allowing you to make an informed decision.

4. Look into Renters’ Liability Insurance

Your tenant’s pet is a potential liability. A dog could bite another tenant without warning, and you have to prepare for the possibility. To reduce risk, you should require your tenants to carry renters’ liability insurance, assuming your local and state laws allow it.

Concerning the insurance itself, it’s best to check for a dog-bite exclusion or similar limitation. Though it may cover damage from pet accidents, you should search for that additional detail to preempt any problems to ensure the security of your rentals.

5. Request an Additional Payment For Your Pet-Friendly Rental Properties

You can offset the higher costs of pet-friendly rentals with an additional charge. Your options include pet rent, a pet deposit or a nonrefundable pet fee. Depending on your set of circumstances, one or more of the following charges may seem appropriate.

Pet rent: A monthly charge that falls between $20 and $100. You add it to the baseline rent price.
Pet deposit: A refundable fee to cover any pet-related damages. Research state laws before you proceed.
Nonrefundable pet fee: An up-front cost for allowing the tenant to keep a pet on your property.

As you evaluate these options, keep in mind that some states have restrictions on this type of practice. Also, if the fee you impose is too high, a judge may not enforce it if a tenant chooses to challenge you. Keep the costs within reason.

Protecting Your Pet-Friendly Rental Properties

Even with the risks of pet-friendly rentals, they’re well worth the extra investment. Sure, you may have to pay more for maintenance and handle similar issues. But the benefits of a pet policy are just as important to acknowledge.

Now that you allow pets in your rental properties, you’ll enjoy a larger pool of potential tenants and higher rent payments. More than that, you can feel a sense of pride in the knowledge that you’re doing a good thing.

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Photo credit cylonphoto via istockphoto.com

Consider digital collections and mobile-first approach

Understand and acknowledge your tenant’s point of view

Make a plan to diversify your engagement channels

Lead with and uphold your empathetic approach

Optimize, optimize, optimize

Seek professional help

1. Take Precautionary Measures

2. Install Scratch-Resistant Flooring

3. Organize a Screening Process

4. Look into Renters’ Liability Insurance

5. Request an Additional Payment For Your Pet-Friendly Rental Properties

Protecting Your Pet-Friendly Rental Properties