Landlords: Calls do not Equal Rentals

One of the things Landlords first notice when using our service is that less people are looking at their property than when they were marketing it.

The reason is because we are filtering a majority of the calls incoming.

For instance, if someone calls on your sign and they think it is a 3 Bedroom house with 2 bathrooms when in fact it is a 2 bedroom, we do not show that property.

A tenant may not have the income to support your property and we quickly direct them to another that does.

Using this over-the-phone pre-screening method, we cut down on unnecessary showings which are a time waster for both Landlords and Tenants alike.

So what are the numbers?

20 calls may come in
5 may be valid and qualified calls (they meet your criteria or want to see the home).
2 may look at the place.
1 may take it.

When you were marketing you may have shown the place 5 times to get to that one. We just went that extra step over the phone to not waste people's time.

So have patience as we may be taking in 20 calls just to get that one valid renter. It does not mean there is no action on the property - it means we are saving everyone's time.

I can't tell you how many places rent with only one showing!

Utility Caps. What is it?

You used to be able to rent houses with all utilities included.

This practice is rare now.

Why? The high costs of energy are making too much of an unknown for Landlords. In other words, they would never be able to determine how much they are making (or most likely losing) from month-to-month.

Enter the utility cap solution. I don't know who to credit for this but it is a great concept.

Here is an example of how it works:

The tenant rents a house for $1000 inclusive with a $200 cap. The tenant puts a deposit of $500. This means that the Landlord will pay the monthly utility bills up-to $200. If it goes over $200, the Landlord has the right to keep the overage from the deposit money.

This is a very fair setup as a tenant knows they have to keep the windows closed in the winter and the Landlord knows how much their cashflow is per month.

This can easily be written into a lease.

If you want more information about this or just the clause to add to a lease, give me a call. 519-966-5565. John Adams

Renter’s Insurance: Making Sure You Are Covered!

A Landlord’s house insurance does not cover your contents. This is something you have to provide yourself in order to be protected.

What does this mean?

It means that if the unit burns to the ground or flooding occurs or if someone breaks into the property, only your insurance will cover your contents.

Fire would not be the only problem. Almost all of Windsor is prone to flooding and any units with lower levels are bound to have troubles at some point.

Lesson, talk to your insurance agent to get a renter’s package.

Tenants: Experienced Landlords Have Heard It All. Don’t Talk In Negatives

Good Landlords do 80% of their screening just by listening to you. They will ask a question and see your response. They may ask the same question and see if your response changes or if it seems to hit a bad chord in you.

For example, I often ask, “What has your experiences with Landlords been in the past.”

If the perspective tenant gets defensive, I will go into depth a bit more and later in the conversation ask, “Did you do something about your Landlord problem?”

This conversation tells me a lot. It verifies information and truths. It sees where the negative emotion is hidden.

The other thing people inadvertently do is complain about something that they are actually doing. I had a guy that was so adamant about not being in a building if there was ANY drug problems. Upon a bit of screening, he ended up being a severe alcoholic and I found out later O.D.ed on crack!

If a tenant tells me a Landlord kicked them out of their current place, I know I am only getting half a story but would not consider this a serious rental prospect!

So what is the lesson for tenants? Talk in positive terms. Landlords would rather hear someone say, “How are the rest of the tenants in the building?” instead of “are there drug dealers around here?”.

For Landlords the lesson is ask as many questions as is necessary. Doesn’t matter the question, just look for the emotion it creates. I used to base my hiring decisions off the question, “Tell me about something you are proud of”. This one question reveals volumes about someone.

The Best Offer Experiment

I’ve been having a bit of difficulty renting my own home. This is odd as most houses are renting within days. I began to ask myself why?

The main reason is because on the higher end properties, it's a RENTER’S MARKET (lower end, Landlords are getting multiple rental offers).

This means that a decent tenant can pretty well tell the Landlord a rental amount and they either take it or they can go find 10 other Landlords that will.

I have turned down about 10 offers as I knew the applicant could not afford the price. In other words they should be renting a house that is about $200 to $400 cheaper per month.

I had two decent prospects but they were playing the waiting game (a typical business strategy).

It got to the point where I had to do something -- so I advertised "For Rent. Best Offer."

But I had these stipulations to enclose with the OFFER:

• Bring a deposit cheque (first, last month’s rent).


• Bring a proof of income letter.


• Bring references.

The reason I did this was because there are three types of people that look at a rental:

1. A person that just wants to know if you will actually go down to an obscene amount for the rental (like $700 inclusive instead of $1200 non-inclusive).
2. A potential renter that can ALMOST afford, will pay near market value but has something wrong with their application.
3. A potential renter that can more than afford it but wants a deal.

(NOTE: Notice I said “potential renter” for the last two and not first. The reason is most tire kickers are merely feeling the market out. Which is good as you get an idea of current market values this way).

I advertised an Open House and quickly received about 10 emails and 6 calls. Some wanted to see it previous to me showing anyone else. Here is the breakdown of each category:

Tire Kickers/Dreamers: 9 (56%)
Hopefuls: 4 (31%)
Deal seekers: 3 (19%)

The interesting thing I noticed was the response was triple the amount a typical ad would produce. And a typical ad would produce about the same percentages as above. So I reached more of my target (somewhere between #2 and #3 above) in a much shorter time. And I had the #3s excited about seeing my house (which places me as a Landlord in a better bargaining position).

The one that showed came with all credentials, letter, etc. and it rented.

The lesson to tenants is to be ready. I don’t know any Landlord that would not listen to lower reasonable offers if the tenant has a cheque and letters at the ready.

Happy renting!

Good Tenants? What Does It Mean?

Each Landlord I meet tells me the same thing:

“Find me a good tenant!”

But what exactly does this mean?

To a novice Landlord this means:

1. Has perfect credit.


2. Someone with a high-paying job.


3. Low occupancy (tenant will not overcrowd unit)


4. Someone without a pet.


5. A non-smoker


6. Never been convicted of a crime.


7. Is not a nefarious character or associates with said characters.


8. Never been served by a previous Landlord.


9. Has never asked a unit be repaired.


10. Paints the place for the Landlord.
    etc.

The reality is that this tenant is VERY rare. And if I did come across one, they usually garnish a rental reduction on the order of 20 to 40%, which a typical Landlord is not willing to reduce to.

People have pets, if someone has perfect credit they likely qualify to own a home and know this (especially in the current buyers market). People have kids, smokers smoke outside, some have had experiences with bad Landlords. In other words, there is always something.

Which is why most experienced Landlords define a good tenant as:

1. Someone that pays on time all the time.


2. Someone that does not destroy the place.


3. Some that expects the same from the Landlord (repairs are done quickly).

As an example, I have seen tenants that were messy as hell, did drugs on a regular basis, played the home theater a bit too loud…but paid the rent on time each month without question and when they returned the unit it was spotless.

I have seen Landlords make $1000 cashflow a month in the WORST areas of the city because they understand that you can fix a hole in the wall but it is VERY hard to find a consistently paying tenant.

John’s Advice

Landlords: If you want a good tenant, be a good Landlord and attract the best.

Tenants: If you want a good place and good Landlord, make your rent the top priority of your finances. NEVER miss the rent. Return the unit BETTER than you got it. Do this and Landlords will line up to get you into your next place.

Renter’s Advice: Top 10

1. Search for your new home online before burning up tanks of gas.


2. Always be on time for your appointments.


3. When talking with a potential Landlord, be positive. Do not talk negatives.


4. Have a cheque, proof of income letter and references ready with all rental offers. You can even have a credit report ready as it is usually free for you to run (visit: http://www.equifax.com/home/).


5. Picture yourself in the rental. Don’t think of it as a rental — think of it as your new home.


6. ALWAYS pay your rent on time and do not holdback rent without the Landlord and Tenant Tribunal’s written approval.


7. Budget your rental amount. Usually 25 to 40% of your income is what you can realistically afford (non-inclusive rentals).


8. Try to negotiate with the Landlord for concessions if they will not go lower on the rent. For example, ask them to pay for paint. Get it in writing with deadlines.


9. Find a rental agent to do the legwork for you. They have access to much more resources than you and most do not charge anything for this service.


10. Do not misrepresent yourself on an application or lease. If you have lost your job at Ford, don’t say you work for Ford. Be honest and trust that a Landlord will work with your circumstances.