When it comes to rental homes, property managers have to make sure that the owners investment is reasonably protected. This is why when we do accept pets, there is always an additional refundable security deposit. If your pet is as good as you claim it is and is that perfect of an angel, then 100% of that deposit will be refunded.  There is a huge myth that property managers want to keep your deposit, which is so untrue! Any day of the week I would rather have a clean, fresh smelling unit returned to me and gladly refund all of the deposit money.  Everyday! But obviously, that isn’t what sometimes happens.  Therefore, we can either not take pets at all, or hold additional funds for the protection of the unit. This deposit does vary depending on the type of animal, the age, previous verifiable rental history of the pet, number of pets, and the specific property itself. In addition to the pet deposit, some companies like ours also charge a pet fee, which is kind of like pet rent, and does not go toward any damage whatsoever.

I am sure I will always have a dog or two in my life; I love them dearly.  You may feel the same way, and if you do, I’ll have a place you can rent.  Just be responsible and take care of those precious animals.

Paul

Yesterday I had to evict a tenant that has rented from me for over 3 years. I begged and pleaded to try to avoid it, but sometimes it is, and should be, the last resort. After no rent payments for 2.5 months with not attempt to make any such payments, and a home that has been abused, eight of us moved all of the tenants possessions to the street.

It is easier said that done.  This kind of thing really bothers me, and as my staff will attest, makes me very cranky. As I was boxing up kids toys, coloring books, the little girls art work on the wall, I couldn’t help but think this could all have been avoided. The tenant knew this day was coming, but did nothing.  Even at the 10 am eviction with the Sheriff standing in the driveway, I gave the tenant an additional 2 hours to get out whatever could be removed.  The tenant had just started to move possessions out about 9 am and the house was full of stuff.  Now if it was me being evicted, I would be hustling to get everything out I could as fast as I possibly could. But that didn’t happen, as if the tenant could care less.  It took 8 men 4 1/2 hours to remove all of the possessions out of the home.

Here is my advice on how to handle these difficult situations:

Respect.  Yes, the tenants owes thousands of dollars and the tab is rising due to damage in the home.  However, before we started I made sure that every one of my crew would handle every piece with respect.  They are to move quickly, but handle every item as gently as possible not break, or abuse anything.   The situation is difficult, but it can still be done with respect to the tenant and the tenants possessions.  Also, I advise to have a full crew on hand to respect the time of the Sheriff, who was very grateful, since he is to stay on the property until the home is secure.  The quicker we move it out, the quicker he can leave to take care of other business.

Carefulness.  Nothing is to ever be thrown, dropped, kicked; Ever.  In this case we even had to deal with a 70 gallon aquarium full of fish; we drained it, carefully handled the tropical fish and kept them inside to the very end to keep the water warm. The tenant did finally take the fish.

Time.  We move as quickly as we can, without doing damage.  In Missouri, once we get to the point that we have the Sheriff’s execution, we move the tenants stuff out of the home and then can dispose of it without liability.  However, we don’t want the stuff so we move it out, then secure the home.  Once all of the items are in the yard, I told the tenant to remove everything he could or wanted, and rather than us remove the possessions right then as allowed, I gave him even more time to get everything he could and we would come back later.  As expected, mostly trash left in the yard for us to clean up.  Even still, it is the right thing to do.  I must mention, that usually we close the office and it is all hands on deck to move everything out as quickly as we can.  Everyone participates.

Sometimes we don’t have a choice.  When begging and pleading doesn’t work, an eviction has to happen.  But as difficult as it is, I can assure you that treating the tenants and tenants possessions with respect is the only way to do it.

Paul

My bank just sent me a letter stating that their lobby hours are changing to better serve me.   Great! I immediately thought, more open hours would be better.   Then I realized they are now opening at 9 am instead of 8:30 to “better serve me.”

I needed to call a software company to help me fix an issue that I could not get corrected no matter how much I tried.   Luckily, they have a toll free 24 hour help line so I used it.   Then I heard their automated message that said, “we have just updated our computer system to better serve you which may result in longer hold times.”  Aggravation.

As business leaders, we must never spin our changes to make them sound like a benefit when it is really not at all to the people we serve.   The above examples are really no more that ways to cut costs not customer benefits.  I don’t have a problem with sound business decisions that make sense, and in the case of the bank they have very few people come to their lobby before 9, so they changed their hours.   Not a big deal in itself, but trying to sell it as a benefit undermines the consumer.

Consumers are not idiots, and changes like these are discussed at the dinner table putting the companies in a bad light.   We need to always look closely at the message we are sending, and how the consumer sees it.   It isn’t hard to find out, just ask them.

What have you seen that has been pitched as a benefit and really isn’t?  Love to hear from you.

Paul

of my real estate career.  They were talking about new technologies that would allow us to send a contract right from our office to the other agent through the phone lines.  How could this be?

Mailing recipe cards was the best way for client retention along with pre-printed information flyers, which made direct mail king.  The “big dogs” even invested in folding machines, postage machines right in their office, and the postmaster loved us.   The new ways of marketing were changing the way we do business, and a really new thing once thought impossible was now emerging, the ability to make a phone call without a landline.   All you need is 5 pound backpack phone and a big wallet, and we were calling people on the fly.  We thought long distance was expensive, but this technology was becoming affordable enough for the wannabe mobile agent.  Personal assistants were the new thing where an agent would actually hire someone to help them and have their payroll.  Classes were filled with people like me, who were so eager for knowledge that I could not take notes fast enough to keep up.

In 23 years, most things have changed dramatically, from the way we communicate to the way we dress, Thank God!  But there is one thing for sure that has not changed, it is a people business about building relationships.  People like working with agents they trust and like. Buying a home is the still the single largest purchase most Americans will make in their lifetime, and they don’t and shouldn’t give that trust to just anyone.  I have been to thousands of hours of education sessions, gone to conventions until 2000 when they changed it to a conference, and I am more convinced than ever that nothing will ever replace the personal relationship that is built, not given, from the public.  As a Realtor, I take pride in wearing my blue pin, knowing that even after all these years face to face is what makes our organization the best in the world.   

LOOK!  Made the cover in 2002!  (that’s me, the young guy in the upper pic on the left

So I decided to do an experiment over the last 6 years to find the perfect floor covering that is durable, will withstand pets & people and a leaky washing machine.  It has to be easy to clean, low maintenance, and of course low cost.  There has to be something out there that will give landlords a solid solution.  If a family member of mine can have carpet in their home for 40 years and it is still holding strong (of course it is 1960’s green, but still) then why can’t we find a 15 year solution?

I do know that with care, any floor will do just fine however, it seems as if we are constantly keeping the carpet mills in business.  And although we do allow pets, often the problem is not the pets, but carelessness.  We all know that if one vacuums the carpet often it will prolong the life not to mention immediately clean up and spills.  Unfortunately, it doesn’t always happen like that. My dad once told me that he gave his tenants vacuum cleaners thinking that would help, and it would have had not most of the tenants sold the units at garage sales.

I tried Berber carpet for a while since it was touted “wears like iron,” and I suppose it does until the tenant actually uses the vacuum and snags it making a run and losing all the fiber.  Won’t do that again.  Vinyl rips and tears since it is not made as durable as it use to be, laminate flooring will not hold up to moisture so putting it in kitchen, laundry, or bath is a no-no.  Stick down tile doesn’t really stick, VCT works good but reminds me of my 3rd grade classroom, and commercial carpet is, well, commercial.  So what does that leave us? Hardwood and Ceramic tile.  Both are good options but can be pricey.

Over the last 2 years we have been mainly using laminate flooring in high traffic areas like hallways and living rooms, carpet in bedrooms, and ceramic tile in the kitchen and bathrooms.  So far this configuration appears to be doing quite nicely.

So what is the perfect floor?  From a landlords point of view I think it has to be our old standby, the concrete floor.  Yes it is a little cold in the winter but at least you can paint it all kinds of fun colors.

I’m less than two weeks away from the big real estate event of the year (The REALTORS® Annual Conference and Expo 2010) in New Orleans.  Sugarcube and I are speaking on property management and how to be profitable at one of the sessions on Sunday, November 7th at 11:00 am.  However I’m a little concerned that people may show up an hour early.

Daylight Savings Time falls on that same Sunday morning, November 7, 2010 at 2:00 am and it’s the time to set your clocks back one hour.  You know it’s fall: fall back, spring forward.

But, how many times have you forgotten to set your clocks back in years past, only to show up at church an hour early on Sunday morning??  You then realize that you missed the changing of the clock, you go home and get comfortable and don’t go back to the service because you think to yourself “heck, I’ve already been there today, why go back?”  Okay, granted my NARdiGras session isn’t the same caliber as church, but what happens if people show up early and then decide to do something else then don’t come back?!

Am I freaking out over nothing?  I’m a little nervous, can you tell?

And on a side note… don’t forget to change the batteries in your smoke detectors. —Concerned Landlord.

1.  Set your policies right up front.   For example, if your rent is due on the 1st, and you are willing to allow tenants to be a few days late, determine an exact number and stick with it.  Our policy is every rent is due on the 1st, late on the 2nd, however we do not charge late fees until the 6th giving everyone 5 days grace period up front.  If the rent continues to be late past the 15th, we file.  Do not make the mistake and determine what is acceptable as you go along.  Set a policy.

2.  Stick by your lease.  If the tenant has not paid on schedule or violates any significant portion of it, file for eviction.   Don’t bend on this, it won’t get any easier. It’s just business, treat it that way.

3.  Listen carefully and document everything.  Sometimes it is difficult to know who is telling the truth and who is just making up stories trying to buy time.  So take notes of how often the car has broken down, who has past away, and you may find you have a tenant like I do that has had 4 mothers, 3 sisters, 1 dad and 3 cousins all die in less than 2 years.  Hope you are not related to her.

4.  Be empathic.  Problems are tough and sometimes our tenants face some very difficult times.  However, we all face problems and still have to deal with our financial obligations.  We can be empathic, but still stick to the lease.  Harshness in most all cases in not necessary.

5.  Hire an attorney.  If you find yourself having to go to court, don’t go alone.  Although it is an expense, it could cost you more not being represented.  Besides, if the property is owned by an LLC, or someone else, one has to have an attorney because you cannot represent someone else.  Most rent and possession cases can be done for under $500.

6.  Have your documentation in order.  If you do have to go to court, go to win.  You win by documenting everything.  Make sure you have a signed written lease agreement, a written schedule of every rent charge and payment, written logs of every phone call and personal visit pertaining to the lease, photographs as needed for visual proof, etc.  Remember, you have to prove your case.

Hopefully you will never have to go to court.  But plan for it now, just in case.

I wish this was an isolated case, but I have seen this several times before.   Owners want to believe, I want to believe, but 4 months?  Robert was getting scammed and he knew it, but even still evicting someone, anyone is difficult.   In Missouri evictions can happen pretty quickly compared to some states, but still takes at least 3 weeks.   Therefore, by the time Robert used our crack shot attorney, filed with the court, appeared in front of the judge, the tenant was into him for 5.5 months, about $6000. Thank goodness the tenants were taking good care of the home and at least there would not be any damages; wrong!  Although on the surface the home didn’t look too bad, a basic cleaning, trash removal, and carpet cleaning should do the trick; another $250.  Oh wait, what is that odor?  Our “nice guy” tenant put raw chicken in the duct work causing all sorts of nasty things to appear and replacement of duct work.  There goes another $1000.

Once this ordeal was finally over, Robert then asked one more favor from me; “Will you manage this home for me, I’m done.”

Part 2: When you should file for eviction, how to file, and who can file.  More on Robert too…

I am a real estate education junkie.  I go to as many conferences as I can, absorbing like a sponge as much as I can.  But this year at the National Real Estate Conference in New Orleans, my top reasons for being there have changed a bit from my list at my first conference in 1992.  Then again I didn’t even have a list then since I didn’t know what to expect.  So here’s why I’m going:

1.     Juice.  I need it, crave it, and it fuels me.  Not the orange kind, rather the kind of juice that gets into the soul and inspires me to do things I never thought possible.

2.     Encouragement from like-minded real estate professionals that are in the trenches everyday.  Seeing others successes motivates me and shows me “it” can be done, whatever “it” is.

3.     Socialization with other fellow colleagues.  Often over-looked, I thrive on finding others who are willing to share their success and failures just like me.  I do it not for networking, but for growth.  Learning from others in those critical hallway conversations.  Besides, who knows, maybe I’ll meet Regis since he’ll be there.

4.     Success and learning what it means.  I use to think it was all about the money, until I realized it is more about our commitment and making the client first.  Easy to say, hard to do with bills staring you in the face.  Make clients first, the money will come.  Therefore, I must stay on cutting edge to help them the best I possibly can.

5.     Inside track is critical.  To be on the top of my game I must have the knowledge of every aspect of this business including the latest, greatest, newest, technology developments in real estate.  With hundreds of vendors from all over the globe, this is where I need to be.

6.     Computer Software that will help our accounting side of property management.  There has got to be a better program out there than the old, outdated one we are using.

7.     A guy named Walter.  Every year I seek him out for his inspiration, wisdom and motivation.  Walter Sanford takes agents and shows them they can do it, regardless of the issues, market, or adversaries they face. He knows, he’s done it.  Walter Rocks.

8.     Two meals a day.  Yes, two. Twice everyday I will dine with someone new, maybe you, who is at the convention willing to share.  I make it a point to have a meal with a REALTOR I don’t know, twice each day.  I have said for years that I learn so much in hallway conversations between sessions that a few years back I started expanding that time to mealtime.  New to the business or veterans, this is THE BEST TIME TO GROW.

9.     One Chance To Experience WordCamp.  I am not great at Word Press, but I am so excited to attend the camp on that Monday.  Who knows, maybe my blog will look better?

10.  Eight Sensational Ways to Profitable Property Management.  We’re speaking! Quite frankly, the thing I am most looking forward to during our session is interacting with other REALTOR property managers from all over the world.  Seeing how you do business is what I’m all about.  Sunday November 7, 11:00-12:30.

Ok, so it is pretty apparent that what most inspires me the most are the people.  If you are a Realtor and haven’t decided to go or not, get off the fence and register.  It will change your career and your life.

1. I had to get my cat de-clawed (and pets were not allowed in the home).

2.  My cousins mother sister died; (which would be her mother who had already died twice previously).

3. I returned my movie to Red Box and it didn’t register so they charged me lots of late fees

4.  I was almost in a coma.

5.  I have no money left after my vacation.

6. The bank stole my money.

Whatever the reason, if you do find yourself late on any type of payment, just be responsible and take care of it.  Unfortunately, the ones who have lied and been irresponsible have made it more difficult for those who just make honest mistakes.