The Oregon Legislature in special session approved the extension of the state’s eviction moratorium for tenants who have or will apply for rent relief by June 30, 2022 but have not yet received any funds.
Lawmakers and others have acknowledged the distribution of rent relief has not gone well.
The bill, SB 891, extends the “safe harbor” measure that aims to help keep those renters who have applied for assistance but are still waiting for state aid from being evicted. The safe harbor will now cover those renters who will or have applied for assistance and shown proof to their landlord on or before June 30, 2022. Protections will continue until a tenant’s application is “no longer pending,” but will be extended “no later than” Sept. 30, 2022, according to the bill.
Governor Kate Brown said in a release, “I remain focused on working with agency directors to ensure relief reaches Oregonians as quickly as possible. Every Oregonian deserves a warm, safe, dry place to call home––and I am committed to working to prevent evictions as we prepare for the transition to local eviction-prevention services after federal pandemic-emergency programs draw to an end.
“Tens of thousands of Oregon renters have applied for rental assistance. While we have made significant progress in improving the delivery of rental assistance in the last several weeks, we know that renters and their landlords are counting on these additional state resources and that we must move quickly,” Brown said.
While lawmakers signed off on the bill, both Republicans and Democrats expressed concerns about the bill.
“The thing I think is so disappointing is how poorly this has been managed,” said Sen. Bill Kennemer, R-Canby, to KATU.com.
“I share your frustrations around the challenges the program has endured, but one thing we have to remember is we are in the middle of the pandemic and none of us have faced what we are facing today,” Sen. Kayse Jama, D-Portland, told KATU.com.
Rent Relief Slow For Tenants And Housing Providers
The need for this bill came about because a program hasn’t responded to applications in a timely manner. But lawmakers agreed they needed to protect renters and landlords.
Deborah Imse, executive director of Multifamily NW, wrote in an email to members that attorneys are providing guidance on the bills, which will be provided to members. She summarized the two important bills this way:
SB 891extends eviction protection for Oregon renters who have applied for rental assistance, through their aid application process – discarding any 60-day or 90-day limit of nonpayment eviction protection.
SB 5561authorizes millions more rental assistance dollars:
$100 million for rent assistance
$5 million to OHCS to speed up aid application processing
$10 million to pay housing providers for rent balances owed – even if their tenants don’t receive rent assistance.
Another $100 million was earmarked for longer-term renter protections and eviction prevention efforts.
Interested in joining the more than 11 million real estate investors making money off rental properties? It’s a form of potentially passive income with great appeal, but like any investment, it also comes with potential risks.
One way to mitigate risk is by setting up a business that would own the property rather than buying it in your own name. Creating an LLC for a rental property can help manage income, taxes, and liability for your rental business.
If you’ve been wondering, “should I put my rental property in an LLC” this guide should help you answer that question and others related to the LLC business structure.
What Is an LLC?
LLC stands for limited liability company and is one of several business structures you could choose for your rental property. The structure ensures you are not held personally liable for any claims against the company or any debts owed. It allows you to be taxed as a partnership while getting the limited liability benefits of a corporation.
An LLC can be you alone, with a partner, or with a group, and the LLC holds ownership of any assets placed in it. It can have a separate tax ID number, open a bank account, and conduct business transactions.
Benefits of an LLC
Starting an LLC for rental property makes good business sense for four key reasons.
1. Limited Liability
When you own a property as an individual, you are personally liable for any legal actions, which means your personal assets are at stake. By operating through an LLC, only the LLC’s assets would be at state should there be any lawsuit or claim made. This is one of the primary benefits of an LLC for rental property holdings since your tenants could claim the business.
2. Separate the Assets
Because an LLC is easy to set up, creating a new one for each property makes sense. This insulates each property from liability claims made on any others. It provides the same separation protection you get for your personal assets.
3. Pass-Through Tax
An LLC allows you to take advantage of what is called pass-through taxation. A business structured as a corporation would typically be taxed on its profits, then you as the owner are taxed again when you take out income.
With an LLC, the company income passes straight through to you, and you claim it on your individual tax return. Your rental income is only taxed once instead of twice.
4. Personal vs. Business
Any corporate structure is going to allow you to keep your personal and business expenses separated. This allows you to write off and claim business expenses on your taxes since you will have separate bank statements for yourself and the LLC for investment property.
Creating Your LLC
What’s involved in setting up your LLC for a rental property? It’s important to understand when the best time is to do it, along with the potential costs in doing so.
When To Create Your LLC
The good news is whether you have your LLC set up before or after you buy, it’s a relatively simple process to transfer ownership over to the LLC. However, if you plan to finance the purchase rather than pay cash, there are definite benefits to having the LLC set up before the purchase.
Transferring a mortgaged property could result in some additional headaches and costs.
Notifying your mortgage holder of the title transfer
Mortgage holder could close the loan and issue you a new one, which creates closing costs and potentially a higher interest rate
Notifying tenants that the LLC now owns the property
Update rental agreements
Transfer could trigger new taxes like a title transfer tax
Creating the LLC first means the property deed is in the company name from the start and keeps you from dealing with these issues.
How To Create Your LLC
Because the LLC is regulated at the state level, the rules and regulations for setting up a company might vary. But the basic process involves the following:
Choose an available business name
Fill out the Articles of Organization
Create an LLC Operating Agreement
Obtain any necessary licenses and permits
Register your LLC with the state
Once you’ve done all that, you can issue leases in the business name and set up your bank account. Costs involved in setting up the LLC can come from registration fees, title transfer fees, and legal fees for creating or reviewing your operating agreement.
Pros and Cons of an LLC
The LLC is a good structure for rental property businesses, especially if you are going into business with other people or entities. But there are some drawbacks to be aware of as well.
Pros
Limit your personal liability
Separate and protect individual properties if you set up an LLC for each one
Pass-through taxation keeps your income from being taxed twice
Easily separate business and personal expenses
Cons
Additional paperwork for initial setup and bookkeeping
Can be more difficult to get a mortgage as an LLC
Potentially higher interest rates on your mortgage
Annual filings and fees
Despite the downsides, keeping your rental property in a dedicated business structure sets you up for success.
Considering Creating an LLC for a Rental Property?
Eager to get started in real estate investing? Creating an LLC for a rental property is a good way to protect yourself and your money from liability issues. Depending on the state you live in, you could benefit by making it easier to manage your income and taxes as well. Here are some good places to invest in property.
When you establish smoke-free housing, you’re protecting your home from possible damage while improving the chances of a higher home appraisal. Smoking inside a house creates secondhand smoke (SHS), which can seep through air ducts and cracks, or travel through a shared ventilation system into another person’s living space. Don’t spoil your chances of preserving your home in the best condition possible. The best way to prevent damage to your property is by going smoke-free.
Better Health/Better Housing
The choice to smoke indoors doesn’t only harm the smoker. It affects everyone. The home is the central location where many children and adults breathe in secondhand smoke. SHS can contribute to a variety of health problems, including several types of cancers; increase the risk for heart attack and stroke; exacerbate asthma; increase the incidence of illness in children; and much more.
There is no safe level of exposure to secondhand smoke. Although some residents have adopted voluntary smoke-free home rules, they may still be exposed to SHS. Recent studies estimated that over 28 million residents who live in multiunit housing are exposed to secondhand smoke in their homes or apartment. While these nonsmokers choose to live smoke-free, smoke can still waft in from elsewhere in their building, like a nearby apartment.
Adopting smoke-free policies as a homeowner in multiunit housing helps protect everyone from being exposed to SHS. At present, the only means of effectively eliminating the health risks associated with indoor exposure is to ban smoking activity. There is no risk-free level of exposure to secondhand smoke.
The Preferred Choice
Did you know that an overwhelming majority of Utahns looking to buy or rent prefer smoke-free housing? Research shows that more than 91% of Utahns prefer living in a smoke-free environment. As parents take a closer look at the dangers of secondhand smoke, smoke-free housing is steadily becoming a higher priority for many. Since 2001, the overall number of children exposed to SHS in Utah has decreased by 53%. In addition, the percentage of children exposed to SHS in rented homes decreased from 12.6% in 2001 to 5.1% in 2005.
Properly Protected
Smoke-free policies can help property managers and owners protect their residents’ health and their real estate investment. Property owners, managers and residents can all benefit from a smoke-free policy. Much like smoke-free policies in workplaces and other sites with public access, establishing a smoke-free policy does not ban someone who smokes from living there. It just requires that all residents abide by the policy while on the property. Thinking about adopting smoke-free living for your residents? Learn what you can do as a property manager and find more reasons to go smoke-free here.
A pet-friendly apartment community can mean different things due to marketing so author John Bradford explains what a truly pet-friendly apartment community looks like.
The term “pet-friendly” is often used as a marketing chip in the rental-housing world, but simply allowing pets at a property no longer qualifies as being genuinely pet-friendly.
That’s because many restrictions often accompany an apartment community’s pet policies, such as a breed, weight, number of pets and even age, as some deny puppies and kittens. So if you’re a prospective resident and the community you’re considering as your next place to live allows some pets—but not yours—it doesn’t come across as exceedingly pet-friendly.
Communities with rigid policies are not only falling behind from the standpoint of appearing attractive to pet-owning residents, but also leaving an abundance of potential revenue on the table. Data supports the ideas that shedding restrictions might not be as off-putting to residents or difficult to implement as one might initially surmise, and that increasing pet-related amenities might not be a bank-breaker.
What does a truly pet-friendly apartment community look like in the modern apartment landscape? Here are a few of the ways operators have shed antiquated policies and shifted their overall approaches to be more pet-centric:
Easing restrictions
Breed and weight restrictions are a touchy subject for many landlords and pet owners.
Weight and breed restrictions have long been standard in the industry. However, innovative operators are beginning to rethink them as they take measures to cater to the ever-increasing pet-owning demographic, which is edging toward 70 percent of residents, according to several sources.
Weight restriction is an easy one to shed, as no data supports that larger pets cause any more damage than smaller pets. In fact, starting in 2019, many apartment operators began to rescind the standard 45- to 50-pound weight limit.
Breed restrictions, naturally, are a touchier topic. Most often, property teams fear that they will alienate residents by rescinding these restrictions. But according to the Pet Policies and Amenities Survey by PetScreening and J Turner Research, a minority of residents actively support them. In fact, 53 percent of residents are against breed restrictions, and 23 percent are indifferent (“don’t care”), leaving only 24 percent of residents who are in favor of breed restrictions. When the same question was asked but for weight restrictions, residents answered along similar lines — 56 percent of residents are against them, and 24 percent are indifferent, while only 20 percent support them.
Insurance concerns are another reason that communities often balk at easing or eliminating breed restrictions. But more and more cases are occurring in which operators are discovering that their property-insurance providers do not require breed restrictions to be in place onsite. This can easily be confirmed by reviewing the actual policy and, if the provider does indeed have breed restrictions, operators then can try shopping for new policy providers that do not.
In a survey 53 percent of residents are against breed restrictions.
To be clear, communities should not be advised to haphazardly eliminate restrictions and simply see what happens. Restrictions should be eased with a measured approach, and properties should screen pets and pet owners on an individual basis to determine where they rank on a risk threshold. Then teams can make a determination based on the individual case rather than any preexisting characteristics.
Puppies, for example, naturally have a higher level of household risk due to chewing issues and potty-training. This, though, doesn’t mean you will deny a puppy, but it’s reasonable to simply cover your additional risk with slightly higher pet fees or pet rent.
In-demand amenities
While conventional wisdom would suggest that adding a slew of pet amenities to a rental property would be a large—and exceedingly expensive—undertaking, that’s not necessarily the case.
When asked which three pet amenities were most important to them, survey respondents cited an onsite pet park (65 percent), pet-waste stations (64 percent) and an outdoor dog run (45 percent). These were higher priorities to pet owners than more expensive amenities, such as a pet pool, pet spa or onsite pet concierge.
While an onsite pet park could equate to a sizable expense depending on how expansive it is, residents mostly want a shaded space for pets to roam freely. Anything else contained within the park is a bonus. As such, many communities have converted existing outdoor space into onsite pet parks or dog runs.
The desire for simple amenities also helps appease the primary concerns of non-pet owners, who cited pet waste (84 percent), barking (62 percent) and off-leash activity (37 percent) as their top three pet-related apprehensions. Stocked pet-waste stations encourage pet owners to be responsible and pick up after their pets, and pet parks and dog runs give pets an exercise outlet, solving many of the barking and off-leash issues.
Revenue benefits
We’ve outlined the cases for easing restrictions and adding cost-friendly amenities, but many property teams wonder how this can boost the bottom line. On a wide-scale basis, this helps make communities more attractive to a larger demographic of potential renters—a certain segment of pet owners who might not have considered the community otherwise.
It also keeps existing residents in the building. According to the survey, pet owners ranked pet amenities 7.3 out of 10 on the importance scale when considering whether to rent or renew at a community.
Ease restrictions and take advantage of pet revenue streams.
Then there are the increased pet-related revenue streams. By easing pet-related restrictions, more pets are permitted at the community, which leads to an uptick in pet rent. Eased restrictions also make it less likely that a resident will try to sneak a pet into the community under the guise of a reasonable-accommodation request for a service or support animal like an ESA. Operators can’t charge pet rent or other pet fees for service or support animals.
Forward-thinking policies
The days of rental communities allowing one pet that weighs less than 50-pounds and restricting 20 different breeds are becoming a thing of the past.
While we’ve outlined the cases for easing weight and breed restrictions, communities should also consider increasing the number of pets allowed per home. Not drastic changes—no one wants 15 pets in a single household—but perhaps increasing from one pet allowed to two, or even welcoming both cats and dogs.
Pet friendliness can increase the bottom line and keep everyone happy.
Apartment community teams should also consider ways to get a more accurate count of their pet population, to make certain all pets are accounted for and ensure they are not losing out on rightful pet revenue. Screening methods that require all residents—pet owning or otherwise—to formally acknowledge a community’s policies also are becoming more popular, ensuring every resident is aware of policies whether they own, acquire, foster or host a visiting pet.
Contrary to some perceptions, an increase in pet friendliness doesn’t have to be accompanied with a hit to the revenue stream. When done correctly, it can carry the three-fold benefit of increasing resident satisfaction, ensuring occupancy and having a positive impact to the bottom line.
About the author:
John R. Bradford, III, is an experienced entrepreneur and CEO with a demonstrated history of working in the property management and pet-tech industry as well as in local and state government. He is the founder of two companies: Park Avenue Properties and PetScreening. John is a strong business development professional skilled in the rental housing management industry, technology startup space, legislative affairs and legal compliance and review. He is serving a third term in the NC House of Representatives. In his spare time he likes to fish, camp and travel with his family.
Hundreds of bad checks for rent relief in Oregon were send to landlords and tenants because of an incorrect routing number on the checks, according to reports.
It was unclear exactly how many rent relief checks were cashed and how many were not as the Oregon Housing and Community Services division said they were still working to find out.
One landlord told reporters that his bad checks came from a third-party contractor the state had hired to help with the backlog of rental assistance.
Carl Benda, a Portland-based property manager who manages about 60 properties across Oregon, told Oregon Live his company has received about 10 checks through the Oregon Emergency Rental Assistance Program since mid-November that he was unable to cash with his bank.
He said they came from Public Partnerships LLC, a contractor Oregon Housing and Community Services hired in August to help the state and its backlog of rent assistance applications.
Delia Hernández, a spokesperson for the state agency, told the Oregonian there was an accounting issue with one batch of checks, and that the routing numbers were missing a digit. Hernández said the agency issued 468 checks with incorrect routing numbers. Some of the checks had been cashed and some not, she said.
Oregon Gov. Kate Brown has said the legislature will hold a special session beginning on Dec. 13 to address preventing evictions for renters. The state has announced it would stop accepting rental assistance applications until at least mid-January, as it has already spent or allocated all of the $289 million received in federal emergency rental assistance.
Hernández did not say how long it would take for people to receive new checks. The agency also asked people to mail back the bad checks.
Secondhand smoke isn’t just a nuisance, it’s a significant danger to people’s health and well-being. It contains over 4,000 chemicals and can cause cancer, heart disease, and many other health problems (4). In fact, secondhand smoke is the third leading cause of preventable death in the U.S. An estimated 46,000 Americans die prematurely each year from heart disease caused by secondhand smoke (4).
Secondhand smoke puts tenants in multiunit housing at risk due to their shared proximity to neighbors. Smoke from one unit can seep through air ducts and cracks, or even travel through a shared ventilation system. Depending on the age of the building, up to 65 percent of the air in a unit can come from other units in the building (8). Even if one tenant decides not to smoke, the decisions of another can put their health in jeopardy.
A staggering 28 million residents who live in multiunit housing are exposed to secondhand smoke in their home or apartment that came from elsewhere in their building (2). Since the dangers of cigarette smoke are widely known, consider the possible repercussions of those exposed to smoke without having made the decision to take that risk for themselves. Even short exposure to secondhand smoke can cause blood platelets to become stickier, damage the lining of blood vessels, and decrease coronary flow velocity reserves, which can potentially lead to a heart attack. Alarmingly, research says there is no safe level of exposure.
Secondhand smoke particularly affects minors. In Utah, 22,100 children live in households where someone smokes inside the home. Children are especially vulnerable to the dangers of this kind of smoke exposure, which can cause ear problems, acute respiratory infections, and wheeze illnesses, which slows their lung growth and makes asthma more severe (4). It’s evident that secondhand smoke isn’t just harmful to health, it’s outright dangerous.
Going Smoke-free Isn’t Only Safe, It’s Smart
There’s no real way to control cigarette smoke in your properties. Despite what you might have heard, commercial air-filter systems and other methods simply don’t work to control secondhand smoke. In 2006, the U.S. surgeon general’s report said that the only way to fully protect nonsmokers from exposure to secondhand smoke indoors is to stop people from smoking indoors (5). The damage to the property might be temporary, but the health effects can be permanent.
Secondhand smoke is dangerous and the best decision you can make would be to ban smoking on your property. This step is the only means of effectively eliminating the health risks of secondhand smoke (1). Not only will it benefit your tenants, it’s also proven to be good for business.
The numbers don’t lie — people want smokefree housing. Nine out of 10 Utahns say they prefer smokefree housing. That’s in large part because over 90% of Utahns don’t smoke and 93% don’t allow smoking in their home (6). In addition to creating a higher demand for a property, making a property smokefree also leads to a higher appraisal and lower cleaning costs. In fact, property managers spend seven times more, on average, to clean a smoking unit than they do to clean a smokefree unit (7). A smokefree housing policy is the best thing for a tenant’s health, and a property owner’s bottom line.
Go Smokefree Today
Secondhand smoke poses an indelible health threat. It’s dangerous. And unlike cigarette smoking, secondhand smoke exposure puts those at risk who were not able to make the decision for themselves. The dangers are well established, and so are the benefits to property owners and landlords. Make the decision to go smokefree. Find out what steps you can take to make your property a healthier place for all to live. For more information, visit waytoquit.org.
Sources
U.S. Department of Health and Human Services (2006).The Health Consequences of Involuntary Exposure to Tobacco Smoke: A Report of the Surgeon General. Washington, D.C.: Department of Health and Human Services.
General. Washington, DC: Department of Health and Human Services.
American Society of Heating, Refrigeration and Air-Conditioning Engineers. “Environmental Tobacco Smoke, Position Document,” 2010.
2005 Utah Department of Health. Utah Health Status Survey, 2001–2005. Salt Lake City: Utah Department of Health. Center for Health Data.
The Health Consequences of Involuntary Exposure to Tobacco Smoke: A Report of the Surgeon General, 2006.
U.S. Department of Health and Human Services. “The Health Consequences of Involuntary Exposure to Tobacco Smoke: A Report of the Surgeon General,” 2006.
Utah Department of Health. Behavioral Risk Factor Surveillance System (BRFSS). 1999–2010. Salt Lake City: Utah Department of Health. Center for Health Data.
National Center for Healthy Housing Reasons to Explore Smokefree Housing, Fall 2009.
Center for Energy and Environment. “Reduction of Environmental Tobacco Smoke Transfer in Minnesota Multifamily Building Using Air Sealing and Ventilation Treatments,” 2004.
Ask attorney Brad is a regular feature with attorney Bradley S. Kraus and this week the question is about whether a landlord has to pay a relocation fee in Oregon if a tenant moves out. If you have a question for Brad, please feel out the form below.
Hello Brad,
I’ve been a member for years and appreciate your articles. I know Multnomah County has differing rent-increase regulations then Clackamas County, but I do not remember the specifics. I own a single-family home in Clackamas County and want to raise the rent 9 percent. If my tenant decides to move out, am I required to pay them a relocation fee, and if so how much would it be? The house is a three-bedroom and there are three tenants living there. The rent is $2,050 per month, and the tenant’s second one-year lease will expire in June. Thanks for the help! Dan
Hello Dan,
Thanks for reaching out, and for reading the articles. It’s nice to know they’re making it to the intended audience!
As things stand now, Portland is the only jurisdiction with odd rent-increase requirements with respect to additional disclosures/documents. The rest of the state is solely focused on ORS 90.323 for requirements related to rent increases. Hence, our focus should be on that statute.
Under ORS 90.323, you must provide 90 days’ notice, and your rent-increase notice must also contain the amount of the increase, the amount of the new rent, and the date on which the increase becomes effective. With respect to the amounts, the maximum you can increase rent is 7 percent + CPI (2.9 percent), which means your maximum increase is 9.9 percent for next year. Accordingly, your 9 percent increase would be lawful, as long as the other statutory requirements are met.
Keep in mind that you cannot increase rent during a fixed-term lease, so any rent increase you serve cannot become operative until the fixed term is up. If your tenants move out, instead of staying at the increased rent amount, there is no relocation requirement.
Thanks,
Brad
Bradley Kraus, Portland attorney
Brad Kraus is a partner at Warren Allen LLP. His primary practice area is landlord/tenant law, but he also assists clients with various litigation matters, probate matters, real estate disputes, and family-law matters. A native of New Ulm, Minnesota, he continues to root for Minnesota sports teams in his free time.
Ask Attorney Brad
Please enter your rental housing management question below for Ask Attorney Brad Kraus. Unfortunately he cannot answer questions from tenants.
You’re probably spending your valuable time collecting checks one by one and making multiple trips to the bank. This manual process is slow and you’re probably wondering if there is a better way. Well there is and it’s a lot faster. The easier way to collect rent is online.
Online payments are very popular. They’re convenient for everyone and they give the tenant a professional experience. Tenants pay online anywhere and the rent gets deposited in your bank account. This means no more dealing with paper checks and it eliminates trips to the bank.
Collecting rent online usually requires signing up for a merchant account. A merchant account requires a background check of your business and a monthly fee. For these reasons, it’s common for property owners to not sign up for online payments as it’s tedious and it can get expensive.
One company that provides online payments without requiring a merchant account is SimplifyEm Property Management Software. SimplifyEm is a safe and secure website that you can trust to collect your rent on time. Real estate investors and property managers collect rent online by just entering in their bank account information. There is no bank setup fee. Once your bank account is added, then tenants can be invited to sign up for online payments. Tenants can add their bank account information too or pay using a credit or debit card. SimplifyEm can keep track of the tenants’ leases and auto withdraw the monthly rent on the due date every month. This means that the tenant doesn’t need to lift a finger to pay rent, it can be automatically withdrawn every month. It’s very common to have tenants only on the auto withdrawal to guarantee the rent is collected on time. However, in SimplifyEm, you can control the manual payment option for tenants. You can turn on or off the manual payment option for any tenant any time. Also, if you have more than one bank account, then you can add more. There is no limit to the number of bank accounts you can have with SimplifyEm.
If a tenant needs help adding their bank account information or making a payment online, then SimplifyEm’s customer support team can help for free. You can feel confident knowing that your tenants will be taken care of and you don’t have to spend any time handling technical support. The tenants can also view a detailed online payment history in their online payment account so you don’t have to worry about tenants asking for reports or receipts.
SimplifyEm not only lets you collect rent online without a merchant account, but you can also send notices to tenants via email or text message, track expenses, manage vendors, track maintenance requests, generate Schedule E and 1099s and so much more. With Simplifyem, you’ll get free customized training, free live phone and email support, and free support for tenants and vendors. Get 50% off SimplifyEm today and start collecting rent online.
If you want to distinguish yourself from your fellow landlords, this is the “separation season” you must utilize to create distance from them and from your past habits.
Let’s face it, it’s easy during this time of year to want to just shut things down and enjoy family, friends, food, and football. For many of us, the holiDAYs turn into holiMONTHs, starting with a mid-November shutdown that extends well into the New Year.
Most people figure that this time of year is the perfect time to sit back, relax and slow everything down; after all, they’ve earned it. In the ultra-competitive landscape in which we operate, if you want to distinguish yourself from your fellow landlords, this is the “separation season” you must utilize to create distance from them and from your past habits. Let everyone else get lazy while you get to work improving your business and yourself by looking at these five qualities in your work and your life.
1. TIME
For most of us, there just isn’t enough of this precious commodity. We mistakenly wear the badge of honor that we are “too busy” to add in new things or invest time in changing or mending broken things. When was the last time you spent an hour (or even 10 minutes) analyzing how you use your time as a landlord? This has proven to be a great exercise we advise our clients on repeatedly. Set aside at least an hour to study the following:
Where do you spend most of your time as a landlord? Calls, service, collecting payments, evictions, etc.…
What processes and procedures can you modify to make those time-consuming tasks easier?
Are there existing programs that have a minimal cost but a maximum payoff in regard to time that you could incorporate into your business?
A one-hour investment dedicated to better understanding your business and life will pay major dividends moving forward.
2. FITNESS
You can make the obvious connection to fitness and our lack of it during the holidays, along with our renewed commitment to it in the New Year. But I’m not talking about your fitness, I’m talking about the fitness of your properties. In a competitive marketplace, how does your property stack up against others? A great landlord will walk other properties in the neighboring areas to see how their products compare to others. Maybe it’s time for a deep clean. Or maybe replacing paint, carpet, fixtures, and finishes are what will be the ticket to making your property shine. Just as in life, the fittest-looking property will attract more attention – and that is what every landlord and investor want. While everyone else is taking time off, put on those running shoes and give your portfolio a complete workout.
3. FOCUS
It’s easy to lose focus during the holidays because there are a million distractions clamoring for your attention. But to separate yourself from every other landlord, focus during these weeks is critical and can be a game changer. Instead of continuing to put off those things you have been putting off for months, buckle down and pay attention. Here are a few areas I like to focus on during this “separation season:”
Rental Fee Analysis: Should I or can I be charging more than I currently am? What will the market support?
Conversion: Is it time to turn my long-term rental properties into short-term rentals? Or vice-versa? Is it time to sell one or more of my properties?
What are my goals for the next year, and what areas can I improve in as a landlord to accomplish those goals?
What I find helpful in my “focus” sessions is to put all my devices away, find a quiet place to think, and write things down with pen and paper. Something about tapping into the old-school methods of note-taking provides an inspirational spark.
4. EDUCATION
While it is easy to fall back on your experience, there is a whole world of educational opportunities available to you during “’separation season” – and most of them won’t cost you a dime. Instead of listening to holiday music over and over again, find a great landlord/investor podcast and look for episodes that address some of your current challenges. Link up with a local real estate investment association and see if it is having any events during December and January that can kickstart your year. Research online rental-payment platforms and experience the joy of direct deposit for your payments. Examine what is happening in your state and local area political scene to see if there are legislative changes coming that may affect your business. Make the commitment to work smarter and not harder in the next year, and that starts with bumping up your personal education.
5. FUN
Being a landlord and having fun shouldn’t be mutually exclusive. After all, this is the greatest business in the world and allows us the freedom to have fun. But can we make our business fun at the same time? I believe you can by adding some of the following to your processes:
Connect with other local investors who don’t do exactly what you do. If you’re the long-term hold type, find a “fix-and-flip” investor to see what their business is all about.
Create an incentive program for your tenants that rewards them periodically and creates a long-lasting landlord/tenant relationship. Be creative!
Host a party for your team or invite the contractors and other service providers who help keep your properties functioning and fully occupied.
Implementing some fun into your business can help kill the monotony and frustration that can creep into your day-to-day processes.
In a time where we all celebrate connections to the things we love, make sure to carve out some time to find ways to separate yourself from old habits, costly processes, and time-consuming tasks. I’m not suggesting you don’t enjoy the holiday season, but by keeping your foot on the gas while everyone else is coasting, you will set yourself up for your most successful, rewarding, and joyful year yet, with more time available to enjoy the things you love all year long.
About the author:
Scot Aubrey is vice-president of Rent Perfect, a private investigator, and a fellow landlord who manages short-term rentals. Subscribe to the weekly Rent Perfect podcast (available on YouTube, Spotify, and Apple) to stay up to date on the latest industry news and for expert tips on how to manage your properties.
6 community maintenance tips for exceptional tenant experience to go above and beyond.
By Kris Servidio
Senior Associate Director of Facilities and Support Mark-Taylor Residential
The dedicated everyday work of maintenance and service teams at a multifamily community has an incredible impact on the overall living experience. Creating an inviting home-like environment would not be possible without expert community maintenance practices.
Here are six community-maintenance tips from us here at Mark-Taylor:
1. Your work, their home
While it may sound simple, remembering that you are working on someone’s home is critically important to creating an exceptional experience. This is where your residents live, relax, enjoy time with their loved ones, and make memories. When something needs to be fixed in their unit or in the building, it is happening to their home – the place where they should feel most at peace. They may feel unsettled or frustrated until the situation is fixed or resolved.
Our service teams deliver service that goes above and beyond because we share an understanding that our goal is to provide incredible places to call home. It reinforces that there is a real effect on a person’s life even when a small inconvenience occurs, so we fix it quickly and efficiently, with compassionate for the resident.
2. Be proactive today, save time tomorrow
Being proactive is a helpful hack in all areas of our work, but particularly with community maintenance. By consistently keeping areas clean and maintained and checking up on our building appliances before issues arise, our teams save an incredible amount of time (and money) in the long run. Cutting corners will always come back to bite you. By holding ourselves to proactive community maintenance practices, we have less serious issues. When needed, we can make fixes before they become a disturbance to our residents.
3. The difference is in the details
One of our long-standing points of pride is our detail-oriented approach. A resident may not specifically notice how thoroughly their kitchen was cleaned when they moved in, or how polished the fresh coat of paint looks in their bedroom, but all of those details will contribute to a positive and excited feeling when they get settled into their new home. When a five-star level of maintenance is always used, it truly sets the living experience apart as exceptional. Details cannot be underestimated.
4. Attitude sets the tone
Our service professionals embody one of our company principles in particular, “choose the right attitude.” Because service team members have frequent interaction and face time with residents, they are an incredibly important representation of who we are as a company, and they have a significant impact on the resident living experience.
The positive, welcoming and customer-centric attitude of our service team members can make the difference in a resident’s everyday elevator ride, maintenance repair or pool visit. These little interactions can brighten someone’s day, and choosing the right attitude is contagious.
5. Consistency adds up
One well-completed maintenance request followed by a mediocre one does not balance out to create a good experience. However, consistent quality completion of maintenance requests over time creates trust, and trust leads to brand loyalty.
Upholding the consistency of your service standards is a key part of being successful. Rare mistakes happen, but if the rest of your service has been consistently exceptional, residents will trust your service and be understanding.
6. Collect your kudos
Picture this: You have just completed a maintenance request quickly and efficiently, and the resident is grateful for your help. This is a great opportunity to politely suggest that the resident could share their feedback in an online review.
Review reputation is critical for multifamily communities, but when residents are satisfied, they may not go out of their way to post a review online. However, following a positive tenant experience, it is an appropriate and opportune time to capture their genuine kudos.
About the Author:
Kris Servidio is the senior associate director of facilities and support for Mark-Taylor Residential. He provides strategic oversight for Mark-Taylor’s service and facilities teams, who support more than 20,000 units with residents across Arizona and Nevada.
