Tuesday, January 28, 2014

The #1 Question Tenants Ask When Vacating: Give Them the #1 Answer



“When will I get my (full) security deposit back?”

This is the #1 Question property managers get asked when tenants vacate.  And this is the #1 opportunity to get the house back in the condition you want.  Make sure you take it!

Note: This is not a full-proof plan!  Some tenants have a completely different view of “clean” after they move out.  As in, “Though the carpets are stained now and the walls are marked up, it is in better condition then when we moved in.”  I get it: people can be temporarily delusional to further their own interests.  As in, “I didn’t know that the McDonald’s coffee would be hot because it didn’t have a warning on the cup, I swear.”

When I hear the #1 Question through property manager ears, it really sounds like they are asking, “What do I need to do to get my full security deposit back as quickly as possible?”  Fortunately, that is precisely the question we want them to be asking!

Getting a house back from the tenant in great condition is a win-win-win for all involved:

1.  Tenants: They get all of their security deposit back- yeah!  I root for all of our tenants to do this.
2.  Owners: They get a property that can immediately go back to market and requires minimal cleaning/fix-up costs.
3.  Property managers: They don’t have to take a lot of pictures, document repairs, compute repair costs, and then explain the damage costs to the tenants and owners.

So how is getting a house back in great condition facilitated?  The bottom line: You get what you ask for!  Ask the tenants (in specific terms) what you want them to do so you can give them their full security deposit back.  Examples include:

1.  Steam clean the carpets after vacating and leave the receipt as proof
2.  Put clean air filters in all the vents
3.  Clean out all the appliances, drawers, and cabinets
4.  Don’t leave any personal items in the house
5.  Put new batteries in the CO and smoke detectors
6.  Leave all copies of the keys, garage door openers, HOA passes, etc.
7.  Fill in wall holes and touch-up paint where appropriate
8.  Make sure the landscaping has been trimmed and the grass cut

If expectations are set, then (at least some of) the tenants will follow them.  And this will save some of the “I can’t believe how the tenant left the house!” laments.  And also cushion the tenant protests if some of their security deposit is held back.

We can’t expect the tenants to leave a home in “good condition”, when we don’t define what “good condition” means to us.  It’s a subjective term.

When tenants ask the #1 Question, they are listening very hard to your response.  Give them the #1 Answer.  Take this opportunity to detail how you want the property left (and providing a check-off sheet in writing is even better!) while they are focused.  Then add, “… so depending on how the property is left and how many repair quotes we need, it could take up to 30 days.  If it is left in great shape, you could get it in a few days!”

The #1 Question is good; it shows the tenants care.  Make sure you volley back the #1 Answer while you have their full attention!


Brett Furniss is the President & Owner of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords.   BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales (including Rent-To-Sell) for single-family homes, condos, and town homes in the Charlotte-Metro Area.  Contact Us Today!

Wednesday, January 8, 2014

#1 Way to Fill Rental Homes Quickly



Concerned rental home owners are wondering how to best fill their rental properties quickly.  So are property managers.

“Everyday my house is empty costs me money!  Besides the mortgage payment, it’s the other things that are absolutely killing me- utilities with this unusually cold and snowy winter, HOA dues rising, you name it.  I need someone renting (or buying) my home!” is a common lament from homeowners with a vacant home on the market.

As a real estate investor and property manager in Charlotte, I feel your pain.  I don’t like vacancies anymore than you.  But there is a simple way to make your home attractive.  And it addresses the most heard complaint, by far, that I hear about houses and why prospective tenants pass on them.  And just what is this revelatory nugget?

Cleanliness.  That’s it.  Houses are typically not clean.  Actually, it’s not that they are not clean technically.  It’s that they are not clean enough.  Prospective tenants want to see sparkle.  They want to see their unblemished reflections coming off of stainless steel.  They want to be able to eat off the floors.  They want to lap cool spring water out of the toilets (well, I may be pushing it now…).  The point is that they really like the houses to be much cleaner than they would normally keep them.

Recently, we switched to a different cleaning service that was more expensive.  I would never think of adding expenses to our owner clients (especially in this economy), but I felt that our homes were not standing out as the rental market continued to get more and more crowded.

And it worked.  I noticed our rate of conversions of visits to completed applications went up dramatically.  This has gone on for months.  Thorough, deep-cleaning was more effective than lowering the rental price.  This has been especially effective for our rent-to-sell program where people want to fall in love with the house they are potentially buying.

I would challenge you to give it a try.  When a house has been on the market for a while and has been getting visits (but no completed applications), resist the urge to lower the price and just pay the dollars to give the rental home a thorough scrubbing (or do it yourself, though I recommend professionals).  See if it works!

Cleanliness is next to godliness, the saying goes.  Reap the benefits of a shorter courting period with prospective tenants!


Brett Furniss is the President & Owner of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords.   BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales (including Rent-To-Sell) for single-family homes, condos, and town homes in the Charlotte-Metro Area.  Contact Us Today!