As you probably know, when a prospective tenant is interested in renting one of our units, we should always be looking at the prospect's ability to pay the rent on time. That's what we refer to as tenant screening. So, I certainly hope that all of you out there do your due diligence when it comes to renting your units. 

Well, these days you may come across a few prospects who may have a foreclosure on their credit report. What do you do with that? Do you ignore it? Do you decline to rent to them? Well, it depends! Here are a few things we should be carefully looking at to determine if a candidate is right for our unit.

- See if there are any other delinquencies on their credit report. This will determine if a person habitually pays late or if it was just the bad loan that got the best of them.

- Check how long ago the delinquencies started. I've see credit reports where you can clearly see that an extraordinary circumstance must have occurred for a few months, because the credit is clean before and after that.

- Talk to your tenant, ask questions. Don't just decline the application, because of the foreclosure. There may be a very good reason as to why that happened. This is the time to talk to your tenant, not when you are taking them to court for an Unlawful Detainer Action lawsuit. 

So, a foreclosure should not automatically disqualify someone from being a renter. Read between the lines of the credit report, ask questions, analyze both what they are saying and what you see on paper. Cross examine and match pieces of information as you can find those on the application. You can ask for as much supporting evidence as needed for you to make an educated decision. Don't feel like you are offending the person for asking for the documentation. They are aware of their situation and they also need a place to live. 

And trust me, it pays to be thorough! 

If you are currently or have ever been involved in Leasing, you know that at times it is a very time-consuming activity. Preparing the place for lease, listing it online, in the newspaper, with a rental service etc, talking to people on the phone, meeting with prospective tenants ... and the list goes on. 

Many people dread a vacancy! Common sense tells us that each month a vacant unit goes unrented, we are loosing money that we can never recover. It is gone forever! There are certain things that we cannot control when it comes to vacancy rates, for example the rental market itself. There is not much we as individuals can do about the local economy, the unemployment rates etc. We can however control a lot of other factors. We can control our presentation to a prospective tenant. We can control our follow up skills. We can control what a unit looks like when we show it to a prospective tenant. And that's why it becomes extremely important that we master the art of Leasing. 

First and foremost when it comes to leasing, the most important thing we have to do is remember that people buy YOU. Remember that many other buildings in your community have the same exact amenities that you are offering, maybe even a lower price, but what makes one person lease from you vs the competition is again, YOU! 

Here is a list of a few things I try to pay close attention to when I have a vacancy:

1.  Know your community better than the competition

2. Don't focus on the price

3. Practice an interesting pitch that engages the prospect in a conversation and doesn't just give them a lecture

4. Get prospects to be honest with you

5. Ask people to come by right away or soon as possible to view the unit

6. Don't be afraid to ask a prospect to fill out an application right away

7. Make sure the unit is clean when you show it

8. Get contact information from your prospects and follow up with them

9. Get feedback from your prospects, have them fill out a short questionnaire. This way you can track your presentation and make small changes as you go.

10. Look professional

YOU are the image a tenant will remember when they leave the property. If you made a bad impression, they will not rent from you. We have to fine-tune our people skills especially in a time when unemployment is rising, the economy is slowing down, people's futures are uncertain. There are plenty of excellent, qualified tenants out there, it's just a matter of finding them and giving them the confidence that you are the one they want to be renting from. 

And remember, even if you are doing all of the above and more, not every person who walks through your door will be the perfect match for your unit. This is where your due diligence comes in and you separate the qualified prospective tenants from the rest of the pack. 

Not too long ago I had a tenant call me and tell me that the apartment they were living in was "waaaay" overpriced and they would either like to have the rent reduced or they will move out. So, I sat there for a moment wondering if I had made a mistake in my research on pricing vacant units. So, I decided to look into it again to triple-check my work. 

After a couple of hours online, making some phone calls, analyzing data etc I came to the conclusion that the tenant was in fact incorrect. I don't know about your particular area, but in Los Angeles prices on apartments vary widely from one block to the next. With all my research organized in charts, I finally called the tenant back to explain to them that the apartment was in fact priced correctly.  

Too many times, people just look at the title of an advertisement for an apartment, for example "Beautiful 2+2 upper unit apartment in Los Angeles, available immediately! - $1100.00/mo". They forget the importance of size of the unit, amenities etc. I was researching the market rent for a 3-bedroom unit once and I came across units varying from 1000 square feet (!) to 2200 square feet. Needless to say one will cost more than the other. 

I also found that a lot of times in advertisements people tend to use the name of a neighboring area that may be a "better" neighborhood to attract people to their listings. I actually went ahead and got a map of Los Angeles and placed pins for the location of each property that used as a comparable. I was astonished to find out that some of the units advertised as being in a certain area, were in fact about 6-7 miles (!) away from my apartment building. I don't know about you, but that irritates me. The apartments I used as comps, were all within a 1.5 mile radius.

As an additional precaution, I also called a local rental agency to get their take on the pricing in the area and the number they gave me also waaay off. I asked them to send me the comps they used and when I reviewed those, I found out that all properties used, where nowhere near my building. And I remember specifically being asked the city and zip-code of the subject property. 

So, all I am trying to say is that not everyone out there is doing their detailed analysis of the area they are in and that may cause confusion. You may be loosing out on good prospective and current tenants that believe your price is too high. That's why I made my research charts, notes, maps etc a part of my Leasing materials. I make a point of showing current and future tenants. what they are looking at out there. I want to make sure they are comparing apples to apples.

I hope you are doing your homework, before going out there and trying to lease an apartment. 

Have you ever driven up and down a street with rental properties or homes for sale? Chances are, you have! After all, you are in real estate business! :-)

Well, how often do you see a sign and you just drive by and other times you stop and you actually read it? Chances are, if the sign catches your attention, you will probably be reading it, otherwise you'd be driving right by. 

Proper and attractive signage is imperative everywhere, not just in front but also in the building. An eye-catching sign will bring you good tenants, a properly posted sign can reduce liability for the landlord and also reduce injury to the tenant. These days, having a custom-made sign can be quite inexpensive. You no longer have to purchase the generic signs sold at the store. The truth is, according to a survey conducted by 3M, "using full color graphics on a sign creates the highest awareness of all sign categories".  You don't even have to worry about hanging it up. Many of the companies making the signs, will also hang them up for you. 

The signs you use represent your building and the type of management your staff will provide to prospective tenants. People go as far as coordinating colors, designs, logos etc. A sloppy, old, broken sign will indicate your unwillingness to maintain your building. First impressions are everything. So, if your neighbor is going out of their way signage-wise, be prepared to do the same. I personally would like to be the one out-doing my neighbor, but of course I don't want to go overboard either. 

"A good sign is half of your marketing campaign!" - Mina V Garrey 

The key is to stay professional, tasteful and within budget. The best results are achieved when proper research is conducted and some thought put into it. So, please do me a favor, next time I am driving up and down a street again, blow me away with you signs. I don't want to look at another dreadful, old, broken sign :-)

I read a lot of magazines, newspapers and watch the news and everywhere the talk is about "GOING GREEN". Many of the improvements you can make to your building to make it more environmentally friendly and lower the operating cost, are quite extravagant and expensive. So, I was trying to think of a list of items that can be implemented immediately and is more cost-effective. So here is what I came up with:

1. Plant trees around your building - in the summer they will help keep your property cooler and thus have less of a need to run the A/C all the time; in the winter they will act as an additional insulation barrier and so keep the building warmer, lowering the need to for heating. The City of Los Angeles, for example, has a "Greener LA"-program in which they give building owners the option to get a certain number of trees per year to plant around their property. You have to attend a short seminar online or in person at the end of which you receive a certificate, which gives you the right to pick up your trees. It as all absolutely free! So, check with your city and see if they have similar programs.

2. Prune and maintain the trees/plants - just planting and watering will not do the trick. You have to maintain the trees/plants that you already have or will be planting. Trees left uncut and unpruned can potentially become a liability to the landlord. Branches will start breaking off, roots may damage the building foundation etc. So proper maintenance is imperative to keeping the trees/plants in good shape. Trimming annually is recommended. 

3. Use plants/trees that are specific to your climate - you can find out that information at your local store's garden center. That type of plant/tree will be beautiful throughout most of the year and will be much easier to maintain. 

4. Maintain your lawn - lawns play a major role in protecting underground waters. The lawn in your yard reduces runoffs, preventing soil erosion and in turn maintaining soil permeability and conserving water. 

5. Enrich your soil - instead of using the garbage disposal all the time, all the peels, coffee grinds etc can be used as a compost to give additional nutrients to your garden. Most importantly, it is a free way of improving the quality of your yard!

6. Replace appliances - if you can't afford to replace all appliances at once, start small and gradually do so. When there is a need to change an appliance, buy EnergyStar rated items. They may cost you a tad bit more, but will save you in the long run. The City of Los Angeles and the Department of Water and Power, also offer rebates for EnergyStar appliances

7. Educate your tenants - I decided to make a tri-fold flyer for each, conserving water, energy and gas and hand them out to all of my tenants. The flyers have not just tips on saving on utilities, but also interesting facts on how our savings impact the environment. I have had an excellent response on those and I am looking forward to working with my tenants in the future and continue being environmentally friendly. 

There are many more ways to save and conserve utilities and many of them are free or very low-cost and it is our duty as real estate professionals to make people aware of those.

If you have any additional suggestions on "GOING GREEN", please share those with us.

Thank you,

Mina V Garrey

Commercial Capital Properties

Just about a month ago I finally purchased a new cell phone (long overdue by the way!!!). For all the years that I have used a cell phone, I only used the call function and just recently I learned how to text. I went out of my way, however to learn a little more about the available phones out there and decided to purchase a phone that had a few more functions (ex. Internet, GPS, camera etc). 

Now, a month later, I wonder how I ever did without one!

Prior to purchasing my phone, I always had to make sure I have my pen, note pad, camera, all phone numbers that I may need when I am out of the office, directions to where I was going etc. In my line of work (property management) I am out of my office quite a bit. I have to inspect my properties, tend to tenant issues, meet with contractors, show units for lease etc. All too often, people show up late (which drives me crazy, but it happens!) and sometimes in the past, I felt like I was wasting 15 minutes of my valuable work time while I was waiting. With my new phone however, it's like having my office at my fingertips. I love it!

I can literally be doing work until the minute the person walks in the door. I can answer e-mails, return phone calls, do research on the Internet, work on a word document or excel spreadsheet all on the go. The camera comes in handy, to take a snap shot of things that need repaired or require my attention. The phone even has GPS with live traffic updates, nearby attractions, even gas prices in the area. I mean, what can I say, it is absolutely amazing what technology offers these days to make our lives easier. 

Gone are the days, when I used to walk around in circles waiting for my dear appointment to show up!

I remember when my friends were first purchasing cell phones with any/all of the above capabilities, I used to think they were crazy for spending all their money on "unnecessary" gadgets. So needless to say, I am now a firm believer in technological advances. The "computer on the go" cell phone has given me the opportunity to use my time as efficiently as possible. No longer do I have to get back to my desk to receive and review a document or answer an e-mail and I love that. After all, I live in Southern California, it's nice to be out and about during a beautiful summer day or any other day of the year!!! :-)

I wonder what else technology has in store for us for the future. Either way, I will try and make an effort to stay a little more on top of what's out there, because it may just turn out to be a very helpful little gadget. I look at it as an investment in my business!

As a property manager for both multi-family and office/retail properties, one of the most pressing issues always has been SECURITY! 

What can you do to improve security? What are all the options you have?  How much is it going to cost? All of those are legitimate questions with very different answers depending on the size, location etc of the property. A detailed analysis is always recommended before deciding what security features to implement. 

Following is a list of security features your property can provide. Some are quite inexpensive, while others may need a more carefully planned out budget and be classified as capital improvements.

1. Lighting in the Common Areas - one of the most cost-effective ways to improve security and one of the fastest to implement is proper lighting. With continued innovation in energy-efficient lighting it is becoming an almost necessary upgrade. Sufficient lighting not only promotes the feeling of being safe, but it deters intruders from entering and vandalizing a property.

2. Doors, Locks, Windows - as a routine part of your annual inspections, make sure you pay close attention to make sure all are operable. Anytime a window does not close properly, it becomes a flaw of the unit and creates a potential security breach opportunity. Regardless of the quality of locks, windows and doors, if an intruder really wants to break in, they will. The objective is to deter such activity. Locks should generally be changed after a tenant moves out, to ensure the security of the new occupant. Even if all keys have been returned, it doesn't mean that non were made prior to returning them. 

3. Security Gates - there are many different kinds of gates (swing-up, roll-up, sliding etc). The type to use will largely depend on the amount of space you have, the amount of traffic that will be going through the gates, and the amount of money you want to put into it. There are just as many access controls for gates as there are types. Gates can be operated with a remote control, access card, keys etc. Depending on your budget and security requirements a decision should be made. 

Card Access Control - if you desire to keep track of who goes in and out, that would be one of your options. It also offers the benefit of when a tenant moves out, to just delete their access code from the system. This will eliminate the need to collect access cards prior to move-out. Purchasing access cards is inexpensive. 

Keys and remote controls - are effective, however a little more expensive because of the cost of making keys and purchasing remote operators. In addition, the level of security is compromised, because both can be purchased and programed or made at a nearby locksmith or hardware store. 

4. Security Cameras - an excellent choice to solve issues when any arise, since it is all recorded and can be played back at a later time. With current digital technology, eliminating the need for video tapes, DVDs have definitely made this type of security feature more feasible cost-wise for many types of investment properties. The cost of purchasing the cameras and wiring them may be extensive. Proper lighting would also be a pre-requisite to make sure you record clear images. 

5. Security Guard - can be very effective and provide the greatest sense of security to a tenant of any building, but is associated with an extremely high cost. A full time guard on the premises, can cost well into the $1000s a month. A security patrol vehicle can be a more cost-effective choice. This type of service will send by a vehicle to inspect the premises randomly throughout the day or night and report any unusual activity.

There are additional ways to ensure the safety and well being of your tenants and property. Keep in mind that proper security will make your building a more desirable place to rent and will also allow you to charge premium rental rates because of that. As stated before however, no one security control is 100% effective by itself. If someone has decided to enter the premises without authorization, they will. You can however, do as much as possible to deter those people from doing so.

If you have any additional suggestions on how to secure your property, please share it with us. As a property manager, I always try to think of different ways to help a landlord avoid vandalism and help my tenants feel safe, and I hope you do too.

As a property manager for both multi-family and office/retail properties, one of the most pressing issues always has been SECURITY! 

What can you do to improve security? What are all the options you have?  How much is it going to cost? All of those are legitimate questions with very different answers depending on the size, location etc of the property. A detailed analysis is always recommended before deciding what security features to implement. 

Following is a list of security features your property can provide. Some are quite inexpensive, while others may need a more carefully planned out budget and be classified as capital improvements.

1. Lighting in the Common Areas - one of the most cost-effective ways to improve security and one of the fastest to implement is proper lighting. With continued innovation in energy-efficient lighting it is becoming an almost necessary upgrade. Sufficient lighting not only promotes the feeling of being safe, but it deters intruders from entering and vandalizing a property.

2. Doors, Locks, Windows - as a routine part of your annual inspections, make sure you pay close attention to make sure all are operable. Anytime a window does not close properly, it becomes a flaw of the unit and creates a potential security breach opportunity. Regardless of the quality of locks, windows and doors, if an intruder really wants to break in, they will. The objective is to deter such activity. Locks should generally be changed after a tenant moves out, to ensure the security of the new occupant. Even if all keys have been returned, it doesn't mean that non were made prior to returning them. 

3. Security Gates - there are many different kinds of gates (swing-up, roll-up, sliding etc). The type to use will largely depend on the amount of space you have, the amount of traffic that will be going through the gates, and the amount of money you want to put into it. There are just as many access controls for gates as there are types. Gates can be operated with a remote control, access card, keys etc. Depending on your budget and security requirements a decision should be made. 

Card Access Control - if you desire to keep track of who goes in and out, that would be one of your options. It also offers the benefit of when a tenant moves out, to just delete their access code from the system. This will eliminate the need to collect access cards prior to move-out. Purchasing access cards is inexpensive. 

Keys and remote controls - are effective, however a little more expensive because of the cost of making keys and purchasing remote operators. In addition, the level of security is compromised, because both can be purchased and programed or made at a nearby locksmith or hardware store. 

4. Security Cameras - an excellent choice to solve issues when any arise, since it is all recorded and can be played back at a later time. With current digital technology, eliminating the need for video tapes, DVDs have definitely made this type of security feature more feasible cost-wise for many types of investment properties. The cost of purchasing the cameras and wiring them may be extensive. Proper lighting would also be a pre-requisite to make sure you record clear images. 

5. Security Guard - can be very effective and provide the greatest sense of security to a tenant of any building, but is associated with an extremely high cost. A full time guard on the premises, can cost well into the $1000s a month. A security patrol vehicle can be a more cost-effective choice. This type of service will send by a vehicle to inspect the premises randomly throughout the day or night and report any unusual activity.

There are additional ways to ensure the safety and well being of your tenants and property. Keep in mind that proper security will make your building a more desirable place to rent and will also allow you to charge premium rental rates because of that. As stated before however, no one security control is 100% effective by itself. If someone has decided to enter the premises without authorization, they will. You can however, do as much as possible to deter those people from doing so.

If you have any additional suggestions on how to secure your property, please share it with us. As a property manager, I always try to think of different ways to help a landlord avoid vandalism and help my tenants feel safe, and I hope you do too.

Just recently I was reading through one of my residential leases to make sure that every paragraph is up to date and to see if there is anything I need to include due to changes and updates of local rental laws. I came across the paragraph talking about Renter's Insurance and it made me wonder how many of my tenant actually have this type of insurance coverage. I know that when a Lease is signed, I make sure to point that out to the prospective tenant and go over the importance of having the insurance. At the end of the day however, people can choose whether they are going to purchase the coverage. 

As a landlord/property manager, I believe that it is important go over that with your tenant, because if something happened and you never mentioned it, you will have lots of explaining to do. Guess what, if something happened and your building burned down, the tenants will be knocking on your door asking "So who's going to replace all my stuff?" Well, your answer should hopefully be, "Remember the Renter's Insurance we talked about when you signed the Lease, did you get that?"

Here are a few facts about Renter's Insurance:

1. Most people think that they can't afford it - The truth is, Renter's Insurance is quite affordable. You can be paying as little as just over $100/year or a couple of hundred dollars a year, based on the size of your unit, deductible etc. So the coverage you will receive could be in the $20,000+ range. I think that's worth the small upfront expense and peace of mind. 

2. But my landlord has insurance - That is correct, however the landlord's policy only covers the structure, not the tenant's belongings. In fact, if the tenant is the one who caused the damage due to negligence, they may be held liable for not just fixing the problem, but replacing the belongings of others if any were damaged.

3. I am not worried about security, my building's pretty safe - Well, surprise, Renter's Insurance goes beyond covering just your belongings. Most tenants don't have their own garage, they probably park in a parking area. If items get stolen from your car while you are parked there, the insurance is probably going to cover those. If someone slips and falls while visiting you, guess what? The insurance has coverage for that also. Some policies even cover your suitcases while you are on vacation, in case they get stolen.

4. I don't really own anything of value - You would be surprised how quickly $20,000 + of items accumulate. According to an article I read online, StateFarm.com found that most people own well over $20,000 worth of property. So all those electronics, appliances, books, CD's, furniture, jewelry etc. you have, if you lost all of it tomorrow, would you still say that it's worthless?

So, please encourage your tenants to get this voluntary coverage. It is both, for the protection of the tenant as well as the landlord. Above all, it buys you a peace of mind. And the minimal fees associated with the coverage are definitely worth it.

A friend of mine had his apartment broken in twice in 6 months. Prior to both times, I asked him if he had a chance to purchase the Renter's Insurance. Unfortunately, he didn't. He had to pay the heft price of replacing three computers (his and the two roommates) as well as all other valuables that were stolen. Now, isn't that worth the couple of hundred bucks?

Just recently I was reading through one of my residential leases to make sure that every paragraph is up to date and to see if there is anything I need to include due to changes and updates of local rental laws. I came across the paragraph talking about Renter's Insurance and it made me wonder how many of my tenant actually have this type of insurance coverage. I know that when a Lease is signed, I make sure to point that out to the prospective tenant and go over the importance of having the insurance. At the end of the day however, people can choose whether they are going to purchase the coverage. 

As a landlord/property manager, I believe that it is important go over that with your tenant, because if something happened and you never mentioned it, you will have lots of explaining to do. Guess what, if something happened and your building burned down, the tenants will be knocking on your door asking "So who's going to replace all my stuff?" Well, your answer should hopefully be, "Remember the Renter's Insurance we talked about when you signed the Lease, did you get that?"

Here are a few facts about Renter's Insurance:

1. Most people think that they can't afford it - The truth is, Renter's Insurance is quite affordable. You can be paying as little as just over $100/year or a couple of hundred dollars a year, based on the size of your unit, deductible etc. So the coverage you will receive could be in the $20,000+ range. I think that's worth the small upfront expense and peace of mind. 

2. But my landlord has insurance - That is correct, however the landlord's policy only covers the structure, not the tenant's belongings. In fact, if the tenant is the one who caused the damage due to negligence, they may be held liable for not just fixing the problem, but replacing the belongings of others if any were damaged.

3. I am not worried about security, my building's pretty safe - Well, surprise, Renter's Insurance goes beyond covering just your belongings. Most tenants don't have their own garage, they probably park in a parking area. If items get stolen from your car while you are parked there, the insurance is probably going to cover those. If someone slips and falls while visiting you, guess what? The insurance has coverage for that also. Some policies even cover your suitcases while you are on vacation, in case they get stolen.

4. I don't really own anything of value - You would be surprised how quickly $20,000 + of items accumulate. According to an article I read online, StateFarm.com found that most people own well over $20,000 worth of property. So all those electronics, appliances, books, CD's, furniture, jewelry etc. you have, if you lost all of it tomorrow, would you still say that it's worthless?

So, please encourage your tenants to get this voluntary coverage. It is both, for the protection of the tenant as well as the landlord. Above all, it buys you a peace of mind. And the minimal fees associated with the coverage are definitely worth it.

A friend of mine had his apartment broken in twice in 6 months. Prior to both times, I asked him if he had a chance to purchase the Renter's Insurance. Unfortunately, he didn't. He had to pay the heft price of replacing three computers (his and the two roommates) as well as all other valuables that were stolen. Now, isn't that worth the couple of hundred bucks?