Archive for April, 2009

Rental Vacancies

April 3rd, 2009

If you’re a landlord you’ll probably encounter a period where your rental units are not all filled, in fact you could have a substantially long period where your units sit vacant. Vacancies can be very costly so it’s important that you use any time available to your advantage. Spruce up the property and make any repairs that are necessary. If you feel a couple little improvements will help you rent the unit faster, by all means go ahead and make the improvements. It’s an investment that should pay off quickly as you’ll attract more renters.

Another expense that will pay off in the end is advertising. Make sure that people know you have a property available and advertise the benefits of your place. If you’re still having trouble renting, consider offering an incentive of reduced rent for a period of time or a signing bonus of one month free. You’re still saving money in the long run if you can get a tenant into that property.

Look to your current tenants to find new tenants. Offer them a reduced rate or a bonus fee for recommending a tenant that you ultimately select to rent the open unit.

But don’t get too desperate when you have open rental units, you still don’t want to rent to irresponsible tenants who will not treat your property with respect or who will have a hard time making ends meet.

Dealing with Late Paying Tenants

April 2nd, 2009

shutterstock_12595462As a landlord or investment property owner you know that collecting rent is a big part of the game. There are tenants who will pay on time, and will love doing so month in and month out; these are the types of people that you want to rent to. But on the other side there is sure to come a day when you have to deal with late paying tenants. More and more landlords are running into this because of the bad economy, and the financial strain that it is putting on many people.

Dealing with late paying tenants is not going to be fun. This is the case for you, as well as the person who did not pay. If you are in this position you need to take the proper steps. First off, send a late payment notice to your tenant. Maybe they simply forgot to pay the rent. This may not always be the case, but on a first offense you will want to give the tenant the benefit of the doubt.

If the problem persists, and your tenant is always paying late, you need to hit them with a fee in order to show that you are serious. As long as you have a late fee clause in your lease you can do this without any problems. It is never easy to act on this clause, but in some cases it is the only thing that will teach a late paying tenant a lesson.

Overall, dealing with late paying tenants can be a pain in the neck and is not the most exciting part of managing an investment property. Once you learn how to deal with problem tenants, especially those that pay late, future instances will be easier on you.

Do your Tenants want to negotiate?

April 1st, 2009

shutterstock_24108502More and more tenants are deciding to negotiate with their landlord due to increased competition within the rental market. Is this something you are facing? Are you expecting this to come up in the near future? If so, you need to know what you are doing.

Tenants who want to negotiate are trying to do one thing: get you to lower the price of your rent. This is something to be aware of at all times. Even though it is the tenants right to ask for a lower rent, it is also your right to tell them no. Remember, you own the property and as long as you are consistent you have nothing to worry about. Of course, there may be times when you want to negotiate with a tenant to keep them around.

If a tenant asks to negotiate their rent you should listen to him. No, you don?t want to lose any money, but if it means losing the tenant altogether you may be better off negotiating a bit. There is no denying that taking less money from a well established tenant is often times better than venturing out and hoping to find another quality person to rent your property.

When tenants want to negotiate you should listen. Just make sure you know where you stand, and that you stick to your guns during this process. There is nothing wrong with lowering your price if this is based on market data, as well as your own personal wellbeing.