Duct Tape

As a landlord or property manager, the last thing you want to hear from a resident is that something in your investment property isn't working right. Whether it be plumbing, electrical, HVAC or any other material function of the property, repairs are rarely cheap. The investor in you always wants to come up with the cheapest option possible to repair the issue, but is that really the best option? I used to represent an owner who would only send a handyman for repairs, regardless of the issue. He would always say "Just throw a little duct tape on it and it'll be good as new". The problem is, you can only have so much duct tape keeping a place together until you have major problems. He would then get angry when the problem (predictably) reared its ugly head again a few months later. This owner wasn't looking at the whole picture when it came to his investment property or finances; only choosing to look at his monthly proceeds check(s). Having maintenance items repaired by a competent and qualified repairman can make all the difference in the world. This applies not only in the long-term maintenance of the property itself, but also to your cash flow on the property. Well maintained properties attract good tenants, stay rented longer and stay trouble free longer.

Choose Wisely

A huge part of being a landlord or property manager is having a great support staff. If you're a property manager, this starts with a fantastic administrative assistant. My administrative assistant or "Super Woman" as I call her, does a fantastic job of knowing how I would deal with a situation and acting accordingly. This is true for working with tenants, owner-landlords or my service providers. She provides a warm, welcome environment in the office and is very courteous & respectful of everyone who calls or comes in. Another major role player is my handyman. In my case, I actually have 2 handymen - one is very good at what he does, but doesn't work well with the public, so I keep him on vacant properties only (move-out stuff, etc). The second is much better with people and is also very good at what he does & both charge very reasonable prices. These are both gentlemen who are licensed general contractors but charge handyman rates. A good handyman is worth his (or her) weight in gold because they are much less expensive than normal service providers while providing essentially the same work on certain items. They're also my eyes & ears at the properties they go to - they're able to tell me if any "shenanigans" are happening at a unit. These gentlemen handle most of my service calls with the exception of plumbing, electrical & HVAC service calls. It is also very important to have a plumber, electrician & HVAC servicer who are straight-shooters and charge a reasonable rate for their service. Sometimes you'll have to go through several to find the right one, but they can also be invaluable when the need for their service arises. Being a good landlord or property manager can be maddening without these support staff - choose wisely.....

Screening - The other fun stuff...

Screening of potential residents doesn't just stop at the report (credit, background, eviction, etc). In order to properly screen a potential resident, it's imperative to also check on their job status, verify income & talk to their current & previous landlords to see if they've been good tenants. When I call to verify the employment, I always make sure that I call the employer at the number I find in the phone book or Google instead of the number provided by the applicant - this is essential to making sure I'm actually talking to the correct person instead of a friend posing as an employer reference. I can't always get an exact income figure, but usually they'll give me an income range for the applicant's position. The income is very important for obvious reasons, but I also like to make sure there's plenty of disposable income in addition to rent. 3x the monthly rent is a good number to use as a minimum guideline. This helps to avoid the "my car broke down and I don't have rent" scenario. When talking to current or previous landlords, I ask all sorts of questions that a current or previous landlord should know (i.e. rent amount, how long they've lived or did live at the place, etc). If a landlord doesn't know the answer to this, it's potentially a friend or acquaintance who is posing as a landlord for reference purposes. The verification process in addition to the report(s) makes all the difference in starting a positive renting experience with your resident.

Screening - Reports

I always say the #1 thing that a property manager or landlord must do to avoid headaches is to properly screen their potential residents. A good start is a credit report, but it's a good idea to expand the screening to include criminal background checks, public records (i.e. judgments, liens, bankruptcy, etc), eviction history & a sex offender search. While this information alone can't predict with full certainty as to how the resident will be, it's a great start. I subscribe to a service that charges me $15 for an all-encompassing report which is extremely valuable. The nice thing is that the applicant pays for the report, so it's a win-win. I'll touch on additional screening options & procedures in my next entry.

Property Managers are People Managers too...

"My neighbor yelled at me just because I was outside looking at the jets!". "My neighbors are up at all hours blaring music & partying!". "My neighbor's kids keep kicking their soccer ball against my fence!". Those who get into property management and don't like working with people are doomed to fail. You HAVE to be a people person to succeed in property management. You are not only a property manager, but a people manager as well. Whether you manage a duplex, triplex or a large apartment building, you are inevitably going to have conflict between residents. When that time comes, you have to be able to diffuse the situation and take the appropriate measures to ensure harmony between residents. One good step is to genuinely care about your residents. I'm not talking about becoming their best friend, but genuinely caring about their well-being and to make sure they know you care. I have a great rapport with most, if not all of my tenants because they know I care. This makes it easier to work with them and their neighbors when conflicts arise. Happy residents = happy property manager.

And so it begins....

This is the maiden voyage of my property management blog effort. This blog has been created as a resource for property managers, owner-landlords and even residents who may find the blog useful, educational or even entertaining. My name is Bryan Coe and I am a property manager in Klamath Falls, OR. I got into the business almost 6 years ago when the housing bubble burst. I was a loan officer for a reputable mortgage brokerage at the time and was the low man on the totem pole. I decided to resign to allow those who had more seniority than I did a chance to stay afloat. Property management was my in-laws' idea for a new business and after several meetings with real estate lawyers, investors & real estate professionals in the area, I discovered a need for this community that hadn't been met: a quality property management establishment which provided top-notch service at a competitive rate. I jumped in the deep-end with both feet and haven't looked back. This business certainly can be frustrating at times (what business isn't?), but it has been an enormous blessing to my family and we are thankful every day that we made this decision.