Getting into the details of finding tenants

The Landlord's Almanac - Landlord Conversations

Title:
Strategy for Renting Rentals
Summary:
In this episode, we discuss the different strategies and the why behind those actions that would help obtain the ultimate goal of "consistent rent". Finding the right person and match it to the right rental for the right price is key to having consistent rent payments and therefore PROFIT.
Host:
Kassandra Taggart / Dave Stohr
Recorded:
Jan 10, 2020
Links:
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Sponsor:
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Show Notes:
Getting into the details of finding tenants

Introduction

Get your home rented quickly

What is a property management top priority?

Consistently receiving the rent.

When renting your home quickly how important is consistency?

A landlord must have discipline or things will slide.

Who determines the rent price?

The market expects the wall to be painted, they don’t care how much work it took you.

What are circumstances in the market that would change the rental market?

Supply and Demand will change

Does timing play into pricing?

Timing Lease renewals based on property type

Where do you go to find quality tenants vs just tenants?

Today we are in a different world which is digital

Zillow now charges

Middle market tenants care about speed, convenience

The C,D, tenants tend to be on billboards.

What are the tendencies of quality tenants?

Many tenants have lower credit scores.

Watching the behaviors of how money is spent is the key.

The truth of today’s reality with rentals

Are people surprised that you check the credit?

5-10 years ago it was difficult to run background checks but now we have the technology

Most DIY landlord – 80% don’t run background checks

Do you have to be a “tough” person to run background checks?

We are human and want everything to be great.

Do you respond saying why you accepted or declined a person?

There are federal rules on how you process background and credit checks.

You can’t use “feeling” to approve a person because we all need to follow Fair Housing Rules

What are you an expert at when you are trying to max rent price and keep costs down?

Being trained, using facts, and have experience makes the difference.

RPM completed over 950 applications, as a result you can see trends.

What happens when the rental rate is to high?

What If your qualifications are to low?

Everything will cost more

What is your overall experience with high risk tenants?

There is many problems, and there are tenants that went through rough patch and their background shows it. So they might be worth the risk.

Eviction costs $400-$2000 all day and 30 days

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1. Introduction (00:00:00)

2. Radio Introduction (00:00:45)

3. What is a property management top priority? (00:01:35)

4. Consistently receiving the rent. (00:02:02)

5. When renting your home quickly how important is consistency (00:02:39)

6. A landlord must have discipline or things will slide. (00:03:05)

7. Who determines the rent price? (00:03:39)

8. The market expects the wall to be painted, they don’t care how much work it took you. (00:04:17)

9. What are circumstances in the market that would change the rental market? (00:04:28)

10. Supply and Demand will change (00:04:51)

11. Does timing play into pricing? (00:05:09)

12. Timing Lease renewals based on property type (00:05:43)

13. Where do you go to find quality tenants vs just tenants? (00:06:31)

14. Today we are in a different world which is digital (00:06:44)

15. Zillow now charges (00:07:18)

16. Middle market tenants care about speed, convenience (00:07:41)

17. The C,D, tenants tend to be on billboards. (00:08:17)

18. What are the tendencies of quality tenants? (00:08:28)

19. Many tenants have lower credit scores. (00:09:00)

20. Watching the behaviors of how money is spent is the key (00:09:07)

21. The truth of today’s reality with rentals (00:09:13)

22. Are people surprised that you check the credit? (00:10:23)

23. 5-10 years ago it was difficult to run background checks but now we have the technology (00:11:05)

24. Most DIY landlord – 80% don’t run background checks (00:11:20)

25. Do you have to be a “tough” person to run background checks? (00:12:17)

26. We are human and want everything to be great. (00:12:30)

27. Do you respond saying why you accepted or declined a person? (00:13:10)

28. There are federal rules on how you process background and credit checks. (00:13:20)

29. You can’t use “feeling” to approve a person because we all need to follow Fair Housing Rules (00:13:52)

30. What are you an expert at when you are trying to max rent price and keep costs down? (00:14:40)

31. Being trained, using facts, and have experience makes the difference. (00:15:04)

32. RPM completed over 950 applications, as a result you can see trends. (00:15:21)

33. What happens when the rental rate is to high? (00:15:58)

34. what If your qualifications are to low? (00:17:29)

35. Everything will cost more (00:17:35)

36. What is your overall experience with high risk tenants? (00:18:07)

37. There is many problems, and there are tenants that went through rough patch and their background shows it. So they might be worth the risk. (00:18:15)

38. Eviction costs $400-$2000 all day and 30 days no rent (00:18:54)

39. Who rents to people with high risk? (00:19:00)

40. The people who don’t do checks. (00:19:11)

41. Tenant hopping is an issue in this town. (00:19:25)

42. How landlords let it slide and get out of hand (00:20:00)

43. How does systems play into property management success? (00:20:30)

44. Systems make it to where I can leave the emotions out of it. (00:20:37)

45. It’s a cycle of bad decisions. (00:21:36)

46. When stocks stay negative long enough you make a change. That’s the same in real estate. (00:22:32)

47. Commercial (00:22:42)

48. Questions and Answers from the forum (00:23:12)

49. How do you have well water tested? (00:23:28)

50. Do you search for many vendor outside of your company? (00:24:38)

51. When your place freeze, you call a thaw company. (00:25:26)

52. Vendors prioritize large customers of small customers. (00:27:10)

53. Who pays for frozen pipes, the landlord. (00:27:17)

54. Most of our pipe breaks are $1,500 to $5,000 (00:27:34)

55. What’s the dollar amount for 1099? (00:27:54)

56. Why you need good vendor paperwork (00:29:11)

57. Does having a dishwasher make a difference? (00:29:18)

58. Appliances with smart technology (00:30:30)

59. Limiting thermostats (00:32:59)

60. Should we prohibit space heaters (00:35:31)

61. Should landlords accepts credit cards? (00:36:26)

62. Do you chase after tenants with a balance or move on? (00:38:03)

63. How much should be on the balance before you file eviction? (00:39:23)

64. What is the state of the 2020 rental market? (00:40:15)

65. Learn about Landlord Almanac and Ask (00:41:18)