Tips for Being a Good Landlord

Be consistent in all your dealings with residents.
Be aware of your rights and residents’ rights.

  1. Never say the word “tenant”.  Use the word “resident”.
    1. Communication is the key to a good relationship.
    2. Be upfront and frank with your residents.
    3. Demand respect and give respect.
    4. Be flexible, it’s a “win-win”.
    5. Always remember you are a businessman…doing business.
  2. Make your residents feel like winners by a “Customer Loyalty Plan”.
    1. Giving a “move in” gift (pizza, bottled water, wine, gift basket).
    2. Leave your phone number on the refrigerator in case of emergencies.
    3. Consider an anniversary gift such as a gift card.
  3. Consider a 3 Star Point Plan.
    1. Point 1
      1. Look for “qualified” as well as “trainable” residents. You may not have a unit that is perfect – neither is your resident.
      2. Look for “truthful” applicants. (Are they able to “pass” application or will something “else” show up they thought you would not find?)
      3. Take photo of applicant, family on lease, and their pet and call it a “Drug & Crime Prevention Program”.  A bad applicant will be gone.
      4. Refer to yourself as “Manager” not “Owner” (fewer complaints).
      5. Watch for red flags:
        1. Complaining about previous landlord.
        2. Are the children well behaved?
        3. Are the applicants prompt for appointment?
        4. Are they critical of unit they are viewing?
    2. Point 2
      1. Call it a resident orientation instead of a lease signing.
      2. Be flexible with lease, one month, six month.  Bad residents are gone earlier.  Make renewals during summer months.
      3. On leases, use the term ETAL.  This will include all occupants.
      4. Make friends with adjoining neighbor (good to keep eye on resident).
      5. Cooperation – have a bonus to move out earlier than last day of lease.
    3. Point 3
      1. Have resident inspection one week prior to their moving out  -
        1. Do a pre-move out inspection.
        2. Point out the problem areas that need to be addressed.
        3. Offer to do repairs before resident moves out.
        4. Give a break on deposit.
  4. Levels of Screening
    1. Income, rental history, credit report.
    2. Use a pre-established point system to determine best candidate.
    3. Do a drive by if need be of old address, be objective.
    4. Use referrals from residents moving out.
    5. Be objective, do not hurry the process.
  5. Study Competition
    1. View other properties in your newspaper, want ads, craigslist, yard signs.
    2. Target your market – teachers, nurses, students, etc. – reflect that in your ad.
    3. Take an ad stating – “taking applications this week only”.
  6. Money Making Points
    1. Don’t be set in stone on price – ask applicant what “they” want to spend.
    2. Use a price range.
    3. The applicant may want to upgrade (fan, washer, window air, storage space).  You can charge more for these “extras” the resident needs.
    4. Pay Day Program – offer a new plan to pay weekly, bimonthly.
    5. Rent Allocation Clause – late rent, penalty is paid first, and then the rent is applied.
  7. How to Collect
    1. Use a worry free payment plan – direct deposit.
    2. On lease, you have an emergency contact person – contact them – usually is parent, sibling, boss – notify them of resident’s inability to pay.
    3. Have a list of local churches, organizations that assist with rent, etc.
  8. Deposits
    1. Pay deposit before they move out – good renters like a bonus/reward.
    2. After 4 years, start them on a yearly return of deposit.  This helps a good tenant stay longer.  If they are good, they will not need deposit when they move out.
  9. Use the Iowa Law
    1. Iowa Law, Code 562A8 states certified mail is receipt of proof of notice.
    2. Restricted mail is OK now which is called “proof of mail receipt”.
    3. Code 562A9 refers to late fees – $10 per day, not to exceed $40 per month.
    4. Use the term ETAL on leases to refer to “all” resident occupants on notices.
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