Find Tenants In A Soft Market

How Landlords Find Tenants In A Soft Market
by: David Schneider

What has happened to all the renters? Well, Let’s examine what has happen in the last few years in the housing markets.

First of all, interest rates have dropped to all time historical lows. This means that many renters have taken advantage of this and went out and bought a house. The second thing that has happened is that most real estate values throughout the country have gone up a lot in a short period of time. Because of this, many more people have decided to start to invest in rental real estate. More landlords, fewer renters equal a soft rental market.

When the market is soft, you have to be better at finding renters

It’s the mission of all business to get and keep customers. Well, the business of owning and managing investment real estate isn’t any different. You must have a system and plan in place to find new tenants and keep you old tenants.

Typically owners of small rental property only do one or two things to find tenants. They may run an advertisement in their local newspaper or they may put a sign on the property that says “FOR RENT”. This is fine in a good rental market, but if you want avoid vacancy you have to do more.

Here are five simple ideas to help keep those vacancies filled:

1. Put together a property feature sheet explaining the features and benefits of your property and distribute it to local real estate offices.

2. Offer bonuses and incentives to your other residents if the refer anyone to you that rents. As an example: gift certificates for dinner out, tank of gas, microwave, etc.

3. Use the apartment rental services in your area. They can be found in your phone book and will list your property in their “properties for rent list” that they give to residents.

4. Make up some cards that say “Properties For Rent – Houses, Duplexes and Apartments. Call Me” and leave them all over. Put them in the envelope when you pay your bills, leave them at restaurants or post them on bulletin boards at stores. Leave them anywhere, be creative and get the word out.

5. Create a waiting list. Keep a list of all callers on any rental that you ever had available. When a new unit comes up for rent, notify the people on your list and see if they might have an interest. If you ever get calls from someone looking for a rental and you don’t have any available now, put them on you waiting list.

Even though the above list is short, it should give you the idea that you need to have many ways to find renters. I’m sure that if you sat down and thought about it you could create a list of 50 –100 ideas. Once you have your list created, you should now test the ideas and see which ones gave you the best results. By doing this process you will fill your vacancies fast and have a constant stream of new tenants wanting to rent from you.

Copyright 2006 David Schneider

Advertise your Rental Home

The 5 Best Ways to Advertise your Rental Home.

Simply filling the unit is not enough; savvy landlords view the marketing effort as the first step in screening tenants.

Getting you rental filled is of primary concern when you are turning over rental units. Landlords understand that a vacant unit is translated to profit loss. This is why having a sound marketing strategy is so very important. Simply filling the unit is not enough; savvy landlords view the marketing effort as the first step in screening tenants. An efficient and proper marketing campaign is the best method for landlords to reduce the risk in choosing the best person to rent the unit. They want to be sure that the person they contract with can pay rent on time and fulfill the obligations of the lease. Having to choose a marginal tenant because of lack of options can prove to be costly. The cost evictions, turnover and repairs can be devastating.

* The easiest and best way to market you rental home is the time tested “For Rent” sign. Simple as it may be, this method capitalizes on the idea that renters will drive around desired communities in search of future housing.

To enhance visibility, it is recommended that more than one sign be placed on the property. Many landlords place a small box on one of the signs to place flyers with rental details. This will allow for the landlord to disqualify prospects by revealing price, policy and expectations. Qualifying prospects will save much time by cutting unnecessary phone calls and showings.

Signs must be reveal contact information clearly and in large print. Many landlords lose rental opportunities by making the writing too small or unreadable. To make the signs stand out more, tie two or three balloons. Adding simple balloons to the "For Rent" sign in front of your rental can increase the effectiveness of the sign by 150%. Add helium for increased effect.

* The second most effective marketing effort is to distribute the rental details flyer to all the free community bulleting boards in the vicinity. These boards are located at grocery stores, churches, community centers and government offices.

Prepare and place announcements or flyers about the availability of your rental property on bulletin boards in local shops, businesses, churches and community centers. This method is especially effective if you are marketing to Hispanics and other immigrants.

* The third most effective way to market your rental is by offering other tenants, friends and associated a referral commission if they refer a new tenant. Customary referral rewards range from $50-$200. This allows landlords the ability to shorten vacancy time.

* The fourth most effective way to market your rental is “classified ads on newspapers”. They can be more expensive if you go to the larger newspapers in most cities. However, if you go to smaller publications that distribute the in rental’s neighborhood, municipality or city district, the price will be much more reasonable. Ads in big newspapers are generally very short because word usage is limited. Smaller publications allow more details in the ad.

The problem with classifieds in general is that they are limited in that they cannot put many details in the ad. Having many details in the ad is very important because they allow the landlord to prescreen prospects. Having unqualified prospects robs the landlord of valuable time. It can never be overstated that the time spent on unnecessary showings and phone calls can be better spent on real prospects.

Classified ads also run into the problem that they expire when the next newspaper is published. People seldom go to previous issues to look at classifieds.

* The fifth most effective way to market your rental is “online ads”. Online ads can be effective when people relocate from outside the area of the rental. People considering a move generally go to the internet for housing information.

Online ads allow for the landlord to post much more information to better pre-qualify prospects. This information is available to prospects anytime prospects connect to the internet.

The internet has many rental sites that vary in price. A good starting point is to start with an inexpensive ad (www.usrentallisting.com) in order to test the ad without risking too much. If it proves to generate rentals, then the testing ends.

Generally these websites are promoted through pay for click and organic search strategies along with print ads.

If a landlord manages many properties they may consider getting their own site with individual pages devoted ( www.homepartners.com) to every aspect of every rental. These sites are used as property management tool in addition to the obvious marketing uses.

It is never too late for landlords to develop a sound marketing strategy for their rental. Landlords cannot afford to limit their number of qualified prospects to their rental.

Manuel Enrique Lopez- “QuiQue” mlopez@l2l2l.com

How Landlords Find Tenants In A Soft Market

What has happened to all the renters?
How Landlords Find Tenants In A Soft Market
by: David Schneider
What has happened to all the renters? Well, Let’s examine what has happen in the last few years in the housing markets.
First of all, interest rates have dropped to all time historical lows. This means that many renters have taken advantage of this and went out and bought a house. The second thing that has happened is that most real estate values throughout the country have gone up a lot in a short period of time. Because of this, many more people have decided to start to invest in rental real estate. More landlords, fewer renters equal a soft rental market.



When the market is soft, you have to be better at finding renters
It’s the mission of all business to get and keep customers. Well, the business of owning and managing investment real estate isn’t any different. You must have a system and plan in place to find new tenants and keep you old tenants.
Typically owners of small rental property only do one or two things to find tenants. They may run an advertisement in their local newspaper or they may put a sign on the property that says “FOR RENT”. This is fine in a good rental market, but if you want avoid vacancy you have to do more.
Here are five simple ideas to help keep those vacancies filled:
1. Put together a property feature sheet explaining the features and benefits of your property and distribute it to local real estate offices.
2. Offer bonuses and incentives to your other residents if the refer anyone to you that rents. As an example: gift certificates for dinner out, tank of gas, microwave, etc.
3. Use the apartment rental services in your area. They can be found in your phone book and will list your property in their “properties for rent list” that they give to residents.
4. Make up some cards that say “Properties For Rent – Houses, Duplexes and Apartments. Call Me” and leave them all over. Put them in the envelope when you pay your bills, leave them at restaurants or post them on bulletin boards at stores. Leave them anywhere, be creative and get the word out.
5. Create a waiting list. Keep a list of all callers on any rental that you ever had available. When a new unit comes up for rent, notify the people on your list and see if they might have an interest. If you ever get calls from someone looking for a rental and you don’t have any available now, put them on you waiting list.
Even though the above list is short, it should give you the idea that you need to have many ways to find renters. I’m sure that if you sat down and thought about it you could create a list of 50 –100 ideas. Once you have your list created, you should now test the ideas and see which ones gave you the best results. By doing this process you will fill your vacancies fast and have a constant stream of new tenants wanting to rent from you.
Copyright 2006 David Schneider
About The Author
Dave Schneider has been investing in real estate for over 25 years and is devoting to helping landlords make more money!. For free audio seminars, tools and information on real estate investing and being a landlord, visit this site now: http://landlordtools.com.

Advertising Your Rental Home

Simply filling the unit is not enough; savvy landlords view the marketing effort as the first step in screening tenants.

Getting you rental filled is of primary concern when you are turning over rental units. Landlords understand that a vacant unit is translated to profit loss. This is why having a sound marketing strategy is so very important. Simply filling the unit is not enough; savvy landlords view the marketing effort as the first step in screening tenants. An efficient and proper marketing campaign is the best method for landlords to reduce the risk in choosing the best person to rent the unit. They want to be sure that the person they contract with can pay rent on time and fulfill the obligations of the lease. Having to choose a marginal tenant because of lack of options can prove to be costly. The cost evictions, turnover and repairs can be devastating.

• The easiest and best way to market you rental home is the time tested “For Rent” sign. Simple as it may be, this method capitalizes on the idea that renters will drive around desired communities in search of future housing.

To enhance visibility, it is recommended that more than one sign be placed on the property. Many landlords place a small box on one of the signs to place flyers with rental details. This will allow for the landlord to disqualify prospects by revealing price, policy and expectations. Qualifying prospects will save much time by cutting unnecessary phone calls and showings.

Signs must be reveal contact information clearly and in large print. Many landlords lose rental opportunities by making the writing too small or unreadable. To make the signs stand out more, tie two or three balloons. Adding simple balloons to the "For Rent" sign in front of your rental can increase the effectiveness of the sign by 150%. Add helium for increased effect.

• The second most effective marketing effort is to distribute the rental details flyer to all the free community bulleting boards in the vicinity. These boards are located at grocery stores, churches, community centers and government offices.

Prepare and place announcements or flyers about the availability of your rental property on bulletin boards in local shops, businesses, churches and community centers. This method is especially effective if you are marketing to Hispanics and other immigrants.

• The third most effective way to market your rental is by offering other tenants, friends and associated a referral commission if they refer a new tenant. Customary referral rewards range from $50-$200. This allows landlords the ability to shorten vacancy time.
• The fourth most effective way to market your rental is “classified ads on newspapers”. They can be more expensive if you go to the larger newspapers in most cities. However, if you go to smaller publications that distribute the in rental’s neighborhood, municipality or city district, the price will be much more reasonable. Ads in big newspapers are generally very short because word usage is limited. Smaller publications allow more details in the ad.

The problem with classifieds in general is that they are limited in that they cannot put many details in the ad. Having many details in the ad is very important because they allow the landlord to prescreen prospects. Having unqualified prospects robs the landlord of valuable time. It can never be overstated that the time spent on unnecessary showings and phone calls can be better spent on real prospects.

Classified ads also run into the problem that they expire when the next newspaper is published. People seldom go to previous issues to look at classifieds.

· The fifth most effective way to market your rental is “online ads”. Online ads can be effective when people relocate from outside the area of the rental. People considering a move generally go to the internet for housing information.

Online ads allow for the landlord to post much more information to better pre-qualify prospects. This information is available to prospects anytime prospects connect to the internet.

The internet has many rental sites that vary in price. A good starting point is to start with an inexpensive ad (www.usrentallisting.com) in order to test the ad without risking too much. If it proves to generate rentals, then the testing ends.

Generally these websites are promoted through pay for click and organic search strategies along with print ads.

If a landlord manages many properties they may consider getting their own site with individual pages devoted ( www.homepartners.com) to every aspect of every rental. These sites are used as property management tool in addition to the obvious marketing uses.

It is never too late for landlords to develop a sound marketing strategy for their rental. Landlords cannot afford to limit their number of qualified prospects to their rental.

Manuel Enrique Lopez- “QuiQue” mlopez@l2l2l.com

Hispanic Renter Information

Statistics of Hispanic Renters
Based on U.S. Census figures, the Hispanic community in the United
States is the fastest growing demographic group in the country.
Between 1990 and 2003, the Hispanic population grew 61 percent from 21.9 million to 35.3 million.
According to the US Census Bureau, by the year 2050 the Hispanic population of the US will nearly triple: “The Hispanic population will jump from 35.6 to 102.6 million, or from 12.6 percent to 24.4 percent of the (American) population. Latino purchasing power has increased from $223 billion in 1990 to $490.7 billion in 2002 and is projected to grow to $1.1 Trillion by 2009” - Selig Center for Economic Growth, University of GA
The gross domestic product of U.S. Hispanics will be the ninth-largest economy in the world by 2010. Did you know that 54 percent are renters?
The following are interesting rental statistics:

"Latinos make up nearly 13% of the total US population."

· The purchasing power of Hispanics has increased by 118 % in the last 10 years
· In 2002, 2.9 million banking customers were Hispanics
· Over 2 Million LA Hispanics use credit cards – up from 1.7 Million four years ago.
· 67% - the percentage of Hispanic families consisting of a married couple.
· 44% - the percentage of Hispanic families consisting of a married couple with children under 18.
· 65% - the percentage of Hispanic children that live with both parents.
· 11% - the percentage of Hispanic population underage 5, as of July 1, 2004. Hispanics had a higher concentration of preschoolers among their population than any other race or ethnic group.
· 2.53- the average household size of renter-occupied units
· More than half of Hispanic households have two or more earners

Screening of Hispanics

One of the benefits of doing proper credit checks and criminal background investigations of potential Hispanic tenants is that it documents a landlord’s diligence in applying consistent, nondiscriminatory criteria in their rental decisions. Without such documentation, a landlord faces possible litigation under the Fair Housing Act, which is also known as Title VIII of the Civil Rights Act of 1968. The act prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). More on the Fair Housing Act. Landlords should screen applicants on the order that they received the applications and base their decisions on criteria that demonstrate a tenant’s ability to pay rent and a tenant’s criminal background is not a threat to the property or the community. When filing out their rental application, many Hispanics may not be able to supply a social security number. This should not dissuade a landlord from following through with the screening process. Many Hispanics use a federal tax ID to build credit information. If a Federal Tax ID is not available, the landlord should ask for the number that the applicant is using to build their credit. It is highly recommended to do a criminal search in addition to the credit check to complete the screening. NOTE L2L MEMBERS: The Landlord2Landlord National Database allows members to perform Social Security searches as well as last name, maiden name and alias searches at no additional cost. This enables landlords to have the flexibility to perform name only searches to catch the rent skipper that changes their Social Security number (even if its one digit) in order to escape detection. This system also allows landlords to enter their Hispanic renter’s (who have no Social Security number) information and conduct searches to track and record renter history. Our Report Cards enable our members to track by name only