State of the Market • Although there are signs of stabilization. oversupply of homes on the market and low absorption rates have forced a decline in property values. • Low absorption has forced relocating sellers to place their properties into rental programs, causing a record number of vacant, available rentals. • Newer (never rented) properties, priced below market are drawing tenants out of previously rented properties which are often less desirable. New apartment complexes add to the oversupply. • Landlords are now offering incentives to the limited number of prospective tenants in order to help reduce vacancy loss.
Current Landlord Strategies • Retain tenants – aggressively pursue lease renewals 60 days (or more) prior to expiration. Offer incentives if necessary. • Maintain properties in above-average condition. • Aggressively market properties prior to vacancy and competitive rates and terms, incentives if necessary. • Be selective, avoid marginal tenants with unfavorable history. • Maintain ongoing tenant communication – anticipate collection problems. • Aggressively pursue rental delinquency and eviction if necessary.
Property / Client Set-up • Gather detailed property information. • Obtain photographs. • Input detailed information and photos into MLS • Input detailed information and photos into AHRN. • Add property to all marketing lists. • Order Yard sign from vender. • Add all data to Yardi accounting system. • Establish preferred vender list with client. • Create property information flyer. • Email Information to key contact list and HR departments of leading employers. • Obtain keys and install lockbox if necessary. • Fee $200
Tenant Procurement • Market for prospective tenants • Accept applications, obtain credit report and check references. • Create lease agreement, appropriate addenda and disclosures. • Obtain tenant signature on lease. • Receipt tenant deposit & initial rent payment. • Deliver lease documents to owner. • Send lease documents to attorney for review. • Cost: one month rent less set-up fees paid.
Full Service Management • Complete property management client setup. • Complete Tenant Procurement. • Fully execute the lease. • Accept deposit and initial rents to escrow account. • Manage all maintenance and repair issues. • Manage all collections and delinquencies. • Complete all monthly accounting & owner reports. • Create annual statements and 1099 forms. • Make short and long term maintenance recommendations to owner. • Fee: 10-15% of rent collected.