All Forum Posts by: Stefanie K.

@Jo Klekowicz I ask for basic info like name, current address, employer, years at employer, current landlord name and number, annual income, if they have pets (number and kind).  I am pretty sure I found a basic template online when I first started.  I make it clear in my advertisement the credit score required for renting so I don't ask it during the application.  My advertisements are not fancy but I do take great photos and generally explain the unit and features and the area.  I price generally around the top of the market because I believe I have a premium product for the areas I am in and I want a quality tenant.  They aren't anything fancy (small 1-2 bedroom condos) but I keep them well maintained, nice appliances, nice paint colors, so they attract better quality tenants.   So far, this has worked well for me.  Hope that helps!

What has worked for me in the city....

Advertise for free on Postlets.com and Craigslist.  Make sure you create a nice advertisement, something YOU would be interested in replying.  This has drummed up enough good interest for me to hold a weekend of "open house appointments".  You do the showings to meet possible tenants.  Have folks commit to 15/30 minute rolling slots so people feel like they have an appointment vs just it being a true open house.  You will get far more committed people to show up and people seeing others interested in your place will make them feel that it is in demand . Have tenants complete an application (free) at the property if they are interested or they can take one and email it back before the weekend ends (most of the time, the people who take them aren't REALLY interested and won't be your tenant).  Review the applications which have most of the cursory information you need to find a qualified tenant.  When you have selected a tenant, only at that point ask them to continue with the process by paying for the full background check.  If they are not serious, they will not pay, if they are, they will gladly.  If cedit/background comes back ok, follow up with prior landlords and employer to validate they will have a job.  Tip:  In Chicago, forget a security deposit, they are a massive hassle and instead consider a "non refundable move in fee" (+ addl for pets).

Other things that just seem to have worked for me.  Females tend to really like my places, I must advertise to them subconsciously :)  I love people in the service industry, never a lack of cash or opportunity to generate more cash to pay rent.  

If you don't own other real estate, make it your primary residence.  You will receive far more favorable terms.  If you need a recommendation for a lender, I can provide someone I have worked with locally who has been great.  If you are new to this, it helps to have a lender who will take the time to explain and teach you these things (not sure how Perl has done, I don't have experience with them).

Joe, I can't say I would start with wholesaling, but to each their own!  I started much where you are and before I dove HEAD FIRST into real estate investing, I tested it out with a small, SUPER affordable condo in an up and coming area.  I targeted the very West edge of Logan square about 5 years ago (knowing all things move West in Chicago :).  It's been a great strategy for me.  I've been able to add those small, affordable, little condos each year for the past 4 and purchased my first 3 flat this past November.  

While some people like to BIG BANG their entry into RE investing, my advice for someone just starting out would be (1) don't get in over your head financially (don't do a multi unit right out the gate) (2) pick something small to TEST it, hell you may not LIKE doing this whole real estate thing after all (3) Don't buy a major reno, on the whole, houses are old in Chicago, so MAYBE take on a small cosmetic fixer but don't pick something that needs a ton of work.  It ALWAYS costs more and takes more time than you think especially when you start and don't know what you are doing (4) starting small lets you learn how to manage everything about it from picking tenants to scheduling repairs, etc.  The education is invaluable (5) After a year of doing all that, decide what your next property should be :)

I am not sure anyone has mentioned this but occupancy isn't really the right metric for Airbnb since nightly rates fluctuate. 

For a long term rental this matters since you have a fixed amount of income coming in monthly BUT Nightly Rate X Occupancy is the metric and you can lever those up and down to get optimal revenue. For example, you can have 100% occupancy but if you aren't getting decent nightly rates, occupancy doesn't mean squat! In my opinion, 100% occupancy too far out (more than 30 days) is CERTAINLY not optimal, it probably means you left money on the table with nightly rate. I'd rather take 15 days or 50% occupancy @ $250/night vs 30 days of 100% occupancy @ $100/night. More revenue, less wear and tear on my place, likely a higher caliber of tenant :)