Vacant Listings

If your rental has been sitting on the market, vacant, for what seems like forever, you’re not alone. It’s that time of year and we’re not going to see it let up until March, when the busy season starts to pick back up. So, while you’re sitting with a vacant home, it’s time to think about what you’re going to do to make up for the lost income.

Here are some suggestions to get your brainstorm started:

Vacation Rental

Before you begin, check your local laws surrounding the controversial short-term rental market, then move forward as you see fit for your investment property.

With the holiday season coming up, make sure your property is marketed to visitors in town for the season. Implement minimum night stays and highlight the tourist attractions nearby. If your unit is perfect for hosting, or as a getaway from all the bustle, make sure to include those aspects in your description, and maybe even the title!

Use your social media to reach out and tell your connections about the opportunity. Especially if you know they need some extra space, or a decent oven, share your short-term rental link with them personally. Reach out to the groups and events that are relevant to the rental. Either local communities, or if you know there’s a vacancy over a weekend when there’s an event going on nearby. Make sure to cast a wide net to friends and strangers alike.

If you decide not to rent the property with a short-term service, make sure your insurance company knows that the property is vacant and will likely be for a couple of months while you find a new tenant. Your coverage is likely going to change if no one is in the unit.

Renovate

If you’re in the position with some savings, take advantage of the vacancy to renovate something you’ve been meaning to update.

Update & Prevent Issues

Does that bathroom need new flooring around the tub? Maybe you need to get rid of that glass sliding door in there that’s really just a mold farm? Your last tenants complained that the washer made their clothes smell like mildew, maybe that’s something to fix for the next round of tenants. (psst – this is also a really great way to retain tenants once they’re in!)

Do you find that your tenants can’t take care of the yard the way you want? Fix it. Adding gravel is a great way to attract pet owners.

Do your locks need an upgrade? Look into coded door knobs and see if they’re right for your property to increase security and do away with the hassle of keys!

Attract Millennials

What about adding a plug for an electric car in the garage? Or a solar panel on the roof that takes care of the kitchen appliances? Even something as small as replacing all the bulbs with energy efficient LED bulbs can be a selling point to eco-friendly Millennials.

An outdoor living space can also attract millennial tenants who want to socialize and host their friends in the summer.

Consider upgrading your rental system to something that’s more online based. Can tenants pay online? If not, can they wire directly to your account? Maybe you can try Venmo or another payment app that you feel comfortable working. You’ve got time to test a few out and see which is best for you and your business.

Inspection

Don’t know what’s wrong with your property? Get a home inspector to come out and take a look. Use their report to make changes and upgrades to prevent future failures.

Check on the oil levels, the furnace filters, and dryer vents to prevent fires.

Look for signs of infestation, with no one living there, there’s no one to report the sound of scratching in the walls or seeing ants near the sink. If you’re not confident in your own abilities to spot a rodent or other pest, hire someone to give you a quote.

Take New Photos

The more recent the photos the better, so update those on your listings as often as you can. With a vacant listing, it’s always much easier to take great photos that show off the space.

When taking new photos make sure:

• Nothing is on the counters (just put that 409 bottle in the cabinet for a second)
• The floors and corners are swept and clean; carpets are vacuumed
• All the lightbulbs are on and working
• Windows are clean and have no finger prints on them

Get ready for new tenants!

These types of smaller projects can be done in the winter to maximize your rental value in the spring, when more tenants are looking, and especially if they’re looking for an upgrade.

Info for this blog post came from the following sources:

Rent Prep: Must Have Tenant Amenities for Millennials Link

AirBnb Support: What legal and regulatory issues should I consider before hosting on Airbnb? Link

VRBO Discovery Hub: Regulation Resource Link

Latter & Blum Property Management: 5 Ways to Attract Millennial Renters Link

Hosting Guests for the Holidays: A Guide

Maybe you have family coming into town or maybe you’re the family going to visit for the Holidays.

Keep your family safe and healthy with this guide. We’re thinking outside the box for you so you can think about what really matters, the food and the beverages. 

If the host lives in a rental property, here are some items to think about before setting up the pull-out couch.

Check the lease for what it says about guests.

Do you have to get permission from the landlord for the stay?

Are the minimums and maximums for how long someone can stay at the property?

This is important to make sure you are not in breach of your contract. It’s likely your landlord just wants to know who is in the house at what time. They’ll typically be understanding that it’s the holidays that guests are a normal part of that.

Get the property in shape for guests.

Don’t forget to handle anything that’s the tenant’s responsibility for keeping the property in good condition & most importantly, safe.

Things like cleaning up the moss and de-icing the walk ways will keep you and your guests safe, especially if they’re walking up with luggage or worse – their famous casserole.

If there is something you notice that is the landlord’s responsibility, give them time to fix it before your guests arrive. Check that the oven is working properly, that your dryer is drying, and that your heat is on. Don’t forget the fire alarms and carbon monoxide detectors.

Clean.

Not that your place isn’t in tip-top shape, obviously. But think deep clean to avoid allergy flare ups and colds spreading throughout the house.

Bleach your towels to stop the spread of diseases and infections, stock up on laundry detergent for the dirty clothes and sheets, clean the carpets with a pet enzyme to clear it out of any pests and dander.

Then tackle the fridge to make room for leftovers and wipe out that oven to avoid smoke and fire. Last but not least, disinfect the door handles and phones (does anyone have landlines anymore?).

Are you staying with your family in their rental? Share this article with them! Links at the top!

Haunted Rental Stories from Our Agents.

Chased Out of a U-District Home

Rebecca did a move-in inspection for our agent Jay LaBrie in the U-District. She had this to say about her experience:

“[It was] just a super creepy house. It’s an old farmhouse style home built in like 1901 and almost all of it is original, hardwood floors, fireplace, banisters, etc. I did a move in there years back and it is the only house that gave me a feeling that I shouldn’t be there. The upstairs was the worst – I wouldn’t even go up with the new tenants after my initial inspection because I felt chased out. I’ve probably been in 1000 houses over the years and it is the only one I wouldn’t go back to.”

– Rebecca Farmer

A Ghostly Figure

While taking marketing photos for a home, our agent Nicki Callahan had this experience:

“[The other day], I was taking photos of a house and [the day after] I looked at the images for the first time. [Some context], I was wearing a black and white dress with a sort of beige hat. I did not see this white “figure” as I was taking photos – you can clearly see it also has a reflection in the mirror. I am standing facing the wall when I am taking the photo, the mirror is to the left, and considering my outfit, there’s no way this is me. What do you think – I am kind of creeped out – do you think it is a ghost? Is there another explanation? AUGH…….”

–Nicki Callahan

Childhood Trauma

Ann shared this story:

I managed a property in Innis Arden. It was held in trust and the attorney hired me to lease and manage the property. The house had been owned by his client’s parents. I met with the daughter to do the initial inspection.  Other than that, she wasn’t supposed to have much to do with the management of the property. The daughter was nice, a little odd. She started contacting me a lot and I was having communication problems with her. I called the attorney to explain the problems I was having, with her. He explained that she has mental health issues, due to a childhood trauma.

Turns out, when she was a young girl, she found her parents, dead in the downstairs of the home. Her father shot her mother before hanging himself.

I always felt creepy, in the downstairs and garage. I didn’t like going down there. The rest of the house was okay. I didn’t feel the need to disclose all of that to the new tenant. She ended up living there for a couple years.

One day the tenant came into the office to pay rent and asked about the history of the house. I asked her why she asked. She said she thought the house was haunted. She said candles would light themselves, at night. The entertainment system would turn on by itself, in the middle of the night and other odd things around the house.  She would feel like she and her baby were being watched. She felt a presence in the house but it wasn’t a scary/menacing presence. After I explained what had happened in the house, she thought it was the spirit of the owner’s mother. I completely believe her!

–Ann Lopez

Fall Proactive Cleaning for your Rental

Fall Proactive Cleaning for your Rental

Here are some proactive things you can do to your rental property to prepare it for the fall & winter seasons.

Your rental lease with the tenants probably lays out maintenance responsibilities along the lines of ‘tenants are responsible for the furnace filter and light bulbs, and the owner is to make sure the home is habitable.’ Part of making sure the home is habitable is preventative maintenance to avert major repair issues later. The plus side is that being proactive can save you headaches and money down the road.

Here’s your to-do list this fall:

*Follow links to find pricing information.

But first…

Before doing any extra work, make sure to communicate with the tenants what types of maintenance you’re going to do that isn’t listed in the lease. They should understand, all of this is preventative and that you’re doing this so bigger problems don’t arise.

And also…

Additionally, if there’s anything that the tenants are responsible for, remind them of the deadlines and suggest your favorite vendors to them to make sure the job is done right. This is another proactive thing you can do to avoid major issues later.

Market your Rental Property like a Pro

So, you’ve decided to rent out your home! Congratulations on this big next step in your financial plan! Owning a rental property can be a rewarding experience; a fulfilling way to earn a little passive income while providing shelter for someone, while hopefully watching your property’s value appreciate.

So how best to end that vacancy and get a tenant in your home with a contract signed?

Prepare the Property

Set your property up for success, both for marketing and for when the tenants live in the unit. It is important to follow local codes and ordinances to prevent future issues and liability.

Here’s a list of things to check on:

• Smoke Alarms in common areas and near/in sleeping rooms.
• Carbon Monoxide detectors on every floor.
• Clean the interior, including carpets.
• If you have pets, fumigate and clean the carpets with a pet enzyme.
• Wash windows.
• Make sure all doors and windows lock properly.
• Check that all appliances are working properly.
  • An extra step is to provide the user manuals for all appliances.
  • Another is to record all the makes and models of appliances to have on hand if/when maintenance is required.
• Service the furnace/heat system.
• Freshen up the Paint
• Clean up the yard

It’s going to be much easier to require tenants to maintain a property that was properly maintained when they took possession.

If you plan to rent your home furnished, make a thorough and detailed list of everything in the home. Go as far as saying “2 grey spatulas, 1 black spatula, 2 silver serving spoons” to make sure you have everything back when you return. It also makes it easy for the tenants to replace anything that gets broken.  (Note- Unless you’re going to make your home primarily available as short term rental, having it furnished will make it harder to rent, not easier.)

Marketing Your Property

You’ve prepared the house or unit for new people to move in, now it’s time to tell them about it.

Create a thorough description of the house and the amenities. Focus on the property and local area, do not focus on the type of people you want to attract.

Be fully aware of how to comply with all pertinent fair housing requirements.

Things to include on your listing:

• Monthly Price (Do your market research. Be realistic.  Avoiding vacancy will benefit you more than hoping to get lucky and achieve an above-market price.)
• # of bed & baths
• Square Footage of the house and the yard
• Your preferred length of the contract (typically 12+ months)
• What upfront costs are required.
• If pets are or aren’t allowed.
  • If they are allowed, how much is that deposit for pet damage?
  • Will you charge a pet rent?
• Any utilities that are included in the rent
  • For full transparency explain what utilities the tenants will be paying
  • Don’t forget landscaping responsibilities
• Local things
  • Where’s the nearest grocery store? What’s the nightlife and commute like? What school district is the home in?
  • What’s the walk score?
  • Again, don’t focus on the people in the neighborhood, focus on the places.

Photos

Take great photos of your property, inside and outside, to attract prospective tenants. There are loads of quick tutorials on YouTube on how to take great Real Estate Photos.

Make sure to show off the space. Use enough light to show off all the details in the room, especially if you plan to leave your home furnished. Take photos from different angles to best capture everything the unit has to offer. If one room leads to another, show off that layout. Make the prospective tenants feel like they’re walking around the unit with you.

A note on that:  Put your photos in order of how they will happen at a tour, or in an order that follows these basics:

• Front Exterior
• Living Spaces (Living Room, Dining Room, Kitchen)
• Bedrooms
• Bathrooms
• Back Exterior

Try to make the order of photos orient the viewer, as opposed to disorient, as they first see your home online.

Photos and price are the first things to shake up when re-strategizing if you notice you’re not getting enough traction.

Hire a Professional

All of the above topics deserve more space than a blog allows.  If you’re going to lease and manage your own properties, read up on it.  Or consider hiring a professional (like us) to assist you.

Rent Prices are Dropping: It’s that time of the year.

It’s always the same, around this time of year all the news articles will exclaim that rent prices are dropping! They will fail to explain, however, that this is typical for this time of the year.

We already touched on the best time to rent your home based on the monthly and annual cycles.

As we transition into the cooler weather, we also transition into a cooler market. This is when landlords that missed the summer rental season see their units on the market for longer and start needing to lower their rents.

This seasonal shift varies in intensity but holds true year in and year out.  It’s important to get ahead of this pricing curve and drop the price a bit more quickly than you would at other times of the year when prices are either more stable or will be increasing.  Whatever the correct rental price is for an October 1^st move-in, it will almost assuredly be lower for a November 1^st move-in.  And you won’t make up for an extra month’s vacancy even if that turns out not to be the case.

If your unit is still on the market after 3-4 weeks of being well marketed, it’s time to switch up your strategy.

If your unit is still on the market after 3-4 weeks of being well marketed, it’s time to switch up your strategy. Re-evaluate the market and what the unit is worth compared to the other units that are available.  There is a smaller pool of renters that are shopping at this time of the year, and that pool will continue to diminish into the winter.

Incentives

Can you offer incentives? Can you include utilities? What about offering a free month of rent? These are changes landlords will employ when they don’t want to decrease their price, but they’re not for everyone.  They generally make sense for owners of larger projects with multiple vacancies, but the cost of them generally won’t ‘buy’ as much marketability as simply putting that cost towards a lower advertised rental rate.

New Photos/Description

Update the photos and the description of the listing. Make sure there aren’t any holiday decorations in the photos that give away how long the property has been on the market. Catch the unit at a different time of day to get lighting that might accent something new. Get creative with the description that might attract a new set of tenants to the listing.

And/or…  get professional advice, and hire a property manager who does this day in & day out.

You work hard to manage your property well in order to avoid litigation and the stress of going to court. That said, if you manage rental properties for long enough, chances are that disputes will arise. Going to court is typically a last resort, but there are times when Landlords and Tenants should recognize that they’re simply not going to be able to reach a common view of an issue. There should be a discussion about a settlement in which the parties ‘agree to disagree’ but still try and reach a financial outcome that both parties view as good enough to make the issue go away. Should the parties be unable get to that point, there are few good options left outside the legal system.

Of the options within the legal system, Small Claims Court is by far the least expensive and most expedient. This feels counter intuitive, but sometimes Small Claims Court is the most efficient path to resolving an issue.

Pros & Cons

Of course, even with a potentially productive process there are disadvantages as well as advantages.

The downsides of Small Claims Court are:  You must represent yourself (unless your property is held by a corporation), and the potential amount you can win is limited to typically $5,000.

The upside is: Your opposing party must represent themselves as well, and the potential amount you can lose is limited to that same $5,000.

The costs of professional legal representation usually won’t make financial sense to use an attorney to initiate a lawsuit for less than a $20,000 claim. In litigation, you’re not only risking your attorney’s hourly rate, but the potential of having to reimburse the other party’s legal expenses if you lose. This dynamic can quickly lead to an arms race where both parties are so afraid of losing that they let their attorney’s fees escalate way out of proportion to the original claim amount. In my experience, unless one party wins 100 percent of the arguments, judges won’t award actual attorney fees, meaning that both parties (win or lose) go away with a financial loss when considering what they spent on their own attorney.

Mediation

Another benefit of many Small Claims Courts is court-sponsored pre-trial  mediation.  Participation in mediation, and any settlements arrived at, are voluntary, and the process is FREE.  Often, by this time, the parties believe they’ve already failed to reach an out-of-court settlement and that they’ll continue to fail to reach one.  But it’s different when there’s a neutral mediator present, who’s emotionally un-involved and is solely focused on reaching a workable resolution.  Mediation is a great alternative option because that neutral party in the room relieves the stress and often helps translate the needs of each party to one another. Mediation is also an opportunity to reach a solution based on the ‘fairness’ of a situation because this process isn’t about the law; it’s about finding a common understanding from which a settlement can emerge.

It’s about legality

Whether mediation fails, or the parties decide not to try it, in court it’s not about fairness or common understandings.  Court is about a judge discerning the relevant legal issues. They will let both parties provide evidence, and then apply the law. To prepare for this, understand the relevant legal issues and rehearse how you are going to present the pertinent facts. Time is precious in court; parties are typically given only 5 to 10 minutes each. It’s important for parties to concisely state what the issue is, why they feel the other party is wrong, and what evidence they have.

When you present your case, dress and speak respectfully, be organized, and be honest. Again, it’s counter intuitive, but it can be a relief (regardless of the verdict) to let a third party reach a decision and put the issue to rest.

Grilling: A Cautionary Tale

Tenants and homeowners alike will likely fire up the grill this weekend for Labor Day. This week we wanted to cover some safety regarding your BBQ party, especially when you’re hosting at your rental home.

It’s something you’ll see in the newspaper and everyone thinks the same two things; First, “They should have been more careful,” and second, “Thank God it wasn’t me, I do that all the time.”

This Labor Day weekend stay alert as you grill and take those precautions that will keep you, your family, and your property safe.

A Tale:

He turned the grill on and stepped back inside to give it time to warm up. Doing dishes and preparing the meats and veggies inside, he notes that he was probably inside for too long. He went back out to turn it down and was staggered at what had happened. The grill was on fire.

Looking back, he says the grease must have dripped down to the bottom of the pan and caught flame when he turned the grill on too high.

He approached the grill and managed to turn the gas off, the flames licking his hand, “this might blow up” ticked through his mind.

Remembering the fire extinguisher he had bought a few years back, which he knew was still good because he had checked it at the beginning of the summer,  (How to use & check your fire extinguisher) He dashed for the garage and came back to larger flames, even with the gas off they had enough fuel with the old grease to not only keep burning but keep growing.

A couple bursts from the fire extinguisher and the flame was out. The grill was surprisingly fine, and he had managed to prevent the fire from spreading.

The Cautionary Part:

Your rental property has fire alarms inside, these are important when detecting a fire while you sleep, but outside is relatively unprotected. Using a grill or any other flame like a heater or even a mosquito repellent candle, has its danger.

Having a back-up is an important risk management step you can take to prevent disaster. Additionally, keeping your fire extinguisher up to date and in good working order is vital as well. Make sure to keep it nearby, but far enough away from flammable items, so that you’re able to get to it quickly.

As in the case above, ‘Plan B’ would have been to use the hose or dirt from the garden to snuff the flames, but not knowing what the fuel is for the fire is half the danger while putting it out. Check this out to better understand common fires in the home.

We hope you have a safe & relaxing Labor Day Weekend. Keep you, your family, and your rental out of harm’s way, but don’t forget to enjoy it too.

This linked survey is worthwhile reading for both renters and landlords.  It points out various types of scams prevalent in the rental market, and ways renters can combat them.

Avoiding Fraudulent Rental Listings

With every great new tool available to the public, there’s always someone out there who takes advantage of it. While looking for a new place to live, or for someone to manage your property, using internet search engines and email, it can be difficult to notice a scammer when you first come across them. It’s important to know what to look for and how to avoid it.

If you’ve ever been scammed, you’re not alone.

It’s so common that this study found about 5.2 million U.S. renters have lost money from rental fraud. About 43 percent of renters have come across a listing they suspected was fake.

What’s worse is when people lose money to a scam.

This study found that 6.4 percent of the population has lost some money on fraud.

The money loss is usually a big blow to the bank account. Of those who lost money, 1 in 3 lost $1,000 or more. This is because the fraudulent listings typically ask for around one month’s rent upfront. Those who lost less likely paid the fake landlord directly for the application or background check. These things feel legit to a lot of renters, especially first timers who have only heard of what to expect, and never actually seen it in action.

When handing money over for first month’s rent or a deposit, renters should have a signed lease beforehand, and never wire money to anyone. Legitimate businesses will accept check or cashier’s check and will understand when renters don’t want to give out bank information.

But, there’s good news as those scorned tend to learn their lesson, as 88 percent of those who have lost money change the way they searched for rentals.

Avoid getting scammed and losing money.

To avoid getting scammed, renters can use their adjusted search process as their normal one. It’s always a good idea to check other sites to see if the same listing with the same information is there. Also, renters should meet the landlord at the advertised unit before applying or giving any money for a deposit or first month’s rent.

This goes for landlords, too.

As a property owner looking for a manager, it’s always good to check references, and that includes listings with their name on it. If they seem to be conducting business in a professional manner that’s not sketchy, it’ll be obvious the listing is in good hands. Never give a property manager money before signing an agreement. With that, typical property managers won’t ask to be paid until after the unit is rented.

Use the services of a reputable property management firm.

This will allow renters and landlords peace of mind that they’ll know who they’re dealing with. Always look for something in the ad that says “Listed by <firm name>” to know who you’d be working with for that property. You’ll always see “Listed by JMW Group | Windermere Property Management” in our listings.

Meet our newest agent, Ann Lopez.

With almost 30 years in property management, Ann joined us about a year ago. She’s hit the ground running – operating out of Kirkland, she’s already found her niche in North Seattle.

I wanted to know how it was going since she began at Windermere, here’s the Q&A:

What’s it like working with JMW Group|Windermere Property Management?

I think JMW Group/Windermere is the perfect combination of autonomy and support. They support your goals, whether you want to work full time or part time. I think that’s appealing to people with young children, or as a second job. Another thing I really appreciate is the innovative marketing and branding strategies you all are constantly working on.

How is Windermere different or the same as other firms you’ve worked for in the past?

I think what’s different about Windermere is the education that’s offered. Windermere also has a different philosophy. Like, the Ninja philosophy, but also the concept of giving to and helping the community.

Do you find that you are given more opportunities with Windermere?

Yes. Like I said, they get to know your priorities and goals. So if you want to build your business, they give you the leads, the education and the support, to be as successful as you want to be. You get out what you put in, and Windermere and JMW Group in particular have given me that opportunity to grow my business on my own.

Work with Ann, shoot her a message.

If this community based business model appeals to you, give us a call and we can chat about career opportunities with us.