| Many of you aren't here yet. You don't have any | | | | you'll get more in rent. |
| properties to fill. So save this, and read it again when | | | | 2) Price. I can't believe how many investors I talk to |
| you've got some properties. If you DO have some | | | | that complain about their empty property and having to |
| properties, are in an area where it might be a little | | | | pay the mortgage month after month with no income |
| harder to fill properties, or just want to not have to | | | | from a tenant. When I ask about the place, it's location, |
| deal with filling properties much, this is more timely. | | | | size, condition, etc., I quickly figure out that they've got it |
| When I first started investing 'no money down', the | | | | overpriced. Let me say this very clearly - your |
| market in my area was abysmal. I could pick up | | | | payment does NOT determine the rent you charge! |
| houses (once I learned how to properly market), but | | | | Did you hear that? Your payment does NOT |
| getting decent people into them with a decent deposit | | | | determine what you can rent the place for! Just |
| or option payment was difficult. But I found through | | | | because you pay $1,000 / month doesn't mean you |
| much trial and error how to easily and quickly fill my | | | | should charge $1,200. Rent is what rent is. Period. Look |
| properties. | | | | in the newspaper, on craigslist, on rentclick, ask around, |
| First, let's take a look at the basics. In real estate, the | | | | but come up with a fair rent price (not too high, not too |
| old adage is 'Location, location, location'. I think this | | | | low) for the area, condition and size of the place. |
| mostly came from retail space, but the saying holds | | | | 3) Condition. Here's another lesson I learned the hard |
| true for rentals too. I have a few condos that are | | | | way. If you let your properties fall into disrepair, you not |
| close to downtown in an area that is somewhat | | | | only will have a harder time re-renting them, but the |
| desirable. Good community, great park just up the | | | | quality of tenants will go down, and it'll get trashed |
| street, desirable area. A couple weeks ago a | | | | even more. This is another complaint I hear - "My |
| long-term tenant in one of my condos called saying | | | | tenants moved out and the place is trashed!" When I |
| she wouldn't be renewing her lease, and would be | | | | ask, "How often did you do inspections?", the answer |
| moving out at the end of the month. | | | | is invariably "Never". When they say that, I say they |
| Sad as I was to lose a good tenant, my heart was all | | | | got what they deserved. The rule is - keep your |
| a-flutter at the thought of yet another raise in rent | | | | properties in decent condition (they don't have to be |
| (rent's been going up again here - FINALLY!). I put an | | | | pristine, just nice), inspect every 3 to 6 months (and do |
| ad on craigslist (one of my favorite spots), and got a | | | | one about 2 - 3 weeks after a new tenant moves in), |
| few calls later that day. As I was going over to the | | | | and if people are trashing the place - KICK THEM |
| condo that next day to inspect it, I called a few of the | | | | OUT! |
| folks back. One woman that I got ahold of said she'd | | | | 4) Last, but certainly not least, is marketing. Gee, that's |
| already taken a place, but could she look at mine 'just | | | | kinda the key to success in everything, isn't it? Look at |
| in case'. It took her 15 minutes looking at my place, she | | | | Microsoft, or IBM, or Pepsi. Think they're slugs when it |
| wrote me a check for the deposit and filled out an | | | | comes to marketing? NO! They have huge marketing |
| application. She moves in next week. | | | | budgets. So learn how to market for filling your |
| Okay, so the rental market here is coming back. BUT - | | | | properties. Learn where works best in your market. |
| it's not red hot like it was in the late 90's. So how come | | | | Learn what keywords will help get people calling fast. |
| I was able to fill my place so quickly? | | | | And learn marketing techniques that work well in |
| Four things are key when filling properties: | | | | markets where the rental market might be a little off. In |
| 1) Location. Yes, the adage is true. This condo is in a | | | | a market with high vacancy rates, one ad in the |
| good area where people want to live. This is | | | | newspaper won't fill your place. Signs all over the |
| something to think very hard about when you're buying | | | | neighborhood will. So think numbers too. |
| property, especially when you're just getting started. | | | | One of the things we do during my One-on-One |
| When I started, I was hungry. If someone said yes to | | | | Mentoring is go over this in more detail. There's a lot of |
| me, I didn't think about where the property was | | | | stuff to cover, and I can't cover it all here. I have a |
| located, the condition of the place, or how easy it | | | | limited amount of space, and I find that most people |
| would be to keep filled. I learned some very hard | | | | won't read a really long article anyway. Suffice it to |
| lessons that way. So think about where the property is | | | | say that the four things I mentioned above are key to |
| located. If it's in a part of town where people want to | | | | filling your properties and keeping them filled. |
| live you'll have an easier time keeping it rented and | | | | |