Keeping At It - Colosseum

We are having a rough time find tenants for the Colosseum. Our biggest hurdle seems to be that Landlords have let their units out for R2500 and the tenants have got this as their bench mark.

Two new developments have been completed in the area and this over supply is also putting pressure on the rentals. We are aware of the frustration of not having a tenant and the financial stress that it causes.

End of a long Week

Our first week of May 09 is finished,

We have had a very interesting week; we are still battling to get the true rent value for the Colosseum. We have had huge resistance from prospective tenant that we tell the rent is R3500 and they have friends the have unit for R2500.

We find this desperately frustrating as we are investors ourselves and have to repair and suffer the mistakes others. However life is not always plain sailing and it will go on no matter how much you complain.

So we have got creative and are approaching the building from a new point of view. We have been spending our time visiting the surrounding businesses (incl Standardbank and ABSA) to create exposure for the building and get local companies to see the value in their staff having quality accommodations so conveniently situated.

We are starting to see some pay off and it looks like things are going to start turning for the good.

In hard time you need to identify the problems that you are facing and then get busy with creative ways so solve them,

Keeping your Tenants happy

Keeping your tenants happy saves you money in the long run. Happy tenants tend to stay in your rental property longer and don’t complain much. Here are some attributes about rental properties that tend to keep tenants happy over the long haul:

A place with not-too-high rent increases. Don’t be unreasonable and raise the tenant rents too high and too often. If the market is a strong market, explain what the rental market is for their apartment and let them know you value them as great tenants and you are keeping the property under the market for that reason.

A place tenants are proud to live. Everyone wants to live where they can invite their friends and family over and be proud of where they live. By providing a rental property that is clean and well maintained, you are providing a property that your tenants will be proud to show off.

A place that they can move into that’s clean. They want to be able to put their belongings in a clean environment. Be sure old odors are gone and nothing of the past tenants’ is left over.
A place with well-kept common areas and clean grounds. Clean laundry room, clean pool, well maintained landscape, and well lit parking lot.

A place that’s safe and well lit. Let them know that you feel safety is important. Be sure all the smoke detectors are working and that they know how to turn off the water if needed.
A place where everything’s in working order. Make sure before your tenants move in that all the appliances work, and the furnace and air conditioning are in working order.

A place that respects tenants’ privacy. Don’t go over to the property unannounced; instead, let your tenants know you are coming over prior to showing up. This is their home, too, while they pay the rent and live there.

A place that encourages good neighbors. Don’t lose a good tenant due to a bad tenant making noise and causing problems. Take care of the problem. Be sure to let the good tenants know you are attempting to solve the problem.

A place where the rental manager truly cares about the property. From the very beginning, tenants can tell whether they are renting from someone who cares about the property, based on the condition and the reaction to any request before the tenants move in.

A place where the manager responds to reasonable maintenance requests. Tenants want to know that when they have a problem, it will be addressed and taken care of in a reasonable time.

A place that keeps tenants informed. No one likes surprises, so keep your tenants informed. If the plumber is really busy and cannot come out for a couple of days, let the tenants know that. If you cannot make a scheduled appointment, show common courtesy by letting tenants know.

A place with fair rules that are monitored and communicated to all tenants. These are rules the tenants would agree to and sign prior to moving in. It is important that all tenants follow the same rules and that you as the owner see that they are enforced.

Being fair and reasonable will keep tenants a whole lot longer. You don’t have to make long-lasting friends to have a long-lasting tenant.

Managing your property

The positive aspects of renting property are as follows; a lot of these apply whether you hire a property management company or not:

1. You own your own business.
2. You save the fees charged by a property management professional.
3. Technology has made self-managing your properties easier than in the past.
4. It’s a people business.
5. It can be fun and challenging.
6. You may enjoy it enough to make it your career and even manage property owned by others.
7. After everything is set up properly, it’s not a lot of work.
8. You can see and touch your investment.
9. The business provides continual income rather than the one-time income from a sale.
10. With creativity, you can purchase with little cash.
11. You can keep a home you may want to move back to later.
12. Renting properties is usually profitable.
13. Renting property provides current or future lodging for your children.
14. Buying your first property starts you on your way to purchasing more.
15. Property values usually appreciate.
16. You diversify your investments.
17. There are great tax advantages.
18. It can be a second income.
19. It can be a part of your retirement.
20. It can be a long-term business.

Cons of Managing Rental Property

You may have days when you question why you purchased rental property and became a landlord. But then, when you arrange an appraisal and find that your property value has gone up, you’re probably pleased with the gain in value. The time, money, and effort suddenly are all worthwhile, and you realize that hard work really does pay off.

1. It takes a lot of time in the beginning to set things up.
2. There are many details you need to learn and understand.
3. The initial outlay may be greater than with other investments.
4. Your property may have a negative cash flow, especially at first.
5. Technology is hard to keep up with and takes time.
6. Reporting income and expenses on your tax return requires additional time and knowledge.
7. Like anything, there is always a risk involved.
8. The hours are not 9 to 5.
9. It is like having a second job, often without vacations.
10. Dropping everything to respond to an emergency isn’t fun.
11. Finding and dealing with contractors can be tricky.
12. It is a people business, which means you have to enjoy talking to people.
    You listen to many complaints.
13. You can always hire a professional to rent and/or manage your property. This way you don’t have to deal with the emergency call in the middle of the night or all the problems that arise from dealing with different types of people. You let them take on the time-consuming tasks while you receive the income.
    

Questions for your new tenents

We often have limited time, here are a few question that you should ask when a tenant calls you to make an appointment. if their answers don't satisfy you, you don't wast your time on a fruitless viewing.

If you do make an appointment to see the unit, ask them to bring ID.

1. What are the best phone numbers to reach you should we get disconnected or I need to reschedule an appointment? (home, cell and and work, if possible)- So that you can call them back if necessary. (Remember, they have yours!)
2. 
   How many people will be living in the unit, even if temporarily?
3. 
   What's your current situation?/ Where are you renting now?
4. 
   Why are you looking to move?
5. 
   When are you looking to move?
6. 
   Do you think your current landlord would give you a good reference?
7. 
   Do you have any pets? (if so, what kind?)
8. 
   Does anyone who wants to rent this property smoke?
9. 
   How many vehicles total would everyone need to park at the property? (not normally a problem in the CBD)
10. 
    In what other areas would you be interested in renting? (in case you have vacant units in other units, too.)
11. 
    How many bedrooms do you need?
12. 
    How long are you looking to rent?
13. 
    How much do you make per week/month/year (whichever seems most appropriate)? How about the other applicants? Is this "gross income" or "take home" income?