All Forum Posts by: Arthur R. van der Vant

One of the most common questions we get as property managers is how to handle issues that may arise with tenants. Whether it's a dispute over property damage, a security deposit, a lease violation, or something more serious, it's important to be prepared and know how to handle these situations properly.

🏡 First things first: make sure you have a solid lease agreement in place that meets the local law and clearly outlines the rights and responsibilities of both parties. Some jurisdictions, e.g., City of Chicago and Cook County, Illinois, have Landlord-Tenant Ordinances that regulate what is permissible in a lease agreement and what is not. When deciding what lease agreement form to use, first consult with a local eviction attorney. Properly drafted lease agreement will provide a foundation for any legal proceedings that may occur.

Another area in which we often see property owners make mistakes is the service of process. If the notice you served upon a tenant is defective, that may delay or complicate your legal proceedings. It is far easier to do it right the first time. If a legal issue does arise, it's crucial to consult with an attorney. A local attorney will be able to help you serve a proper notice, advise you on the best course of action, and represent you in any legal proceedings.

Remember, an ounce of prevention is worth a pound of cure! Regular communication with your tenants and being proactive in addressing any potential issues can go a long way in avoiding legal disputes.

What are some legal issues you've had to deal with as a property manager? Share your experiences below! 💬

Are you struggling to build and maintain strong relationships with contractors, vendors, and other service providers in the property management industry? 🤔 These relationships are crucial for any successful property owner, as they help to ensure that your properties are well-maintained and any issues or repairs are handled promptly and efficiently. 🏠

Here are some tips to help you build and maintain strong relationships with your contractors and vendors:

• Establish clear lines of communication and clearly outline your expectations. 📞
• Be responsive and attentive to the needs of your contractors and vendors. 📧
• Foster a sense of trust and mutual respect. 🤝

By following these tips, you can build strong and productive relationships with your contractors and vendors, which will ultimately help to ensure the success of your rental properties. 💪

Want to learn more about how to effectively manage your contractors and vendors? Leave a comment below or shoot me a message! 💬

@ We don’t visit applicant’s current place of living, but we do verify that the address provided is true and correct. To prevent us from finding out that the applicant is not paying rent to the current landlord, we have had applicants list as their current residences, addresses of other people (friends’ or relatives’ addresses). Any time an applicant lists a family member as a current landlord, it should be a “red flag”. We check references from current landlords, and previous landlords. Current landlords may not always be forthcoming with information, especially if they want to get rid of a problem tenant. But previous landlords who no longer have that problem, may provide more honest verification. One other thing that we do as a part of our rental application process, we require all applicants to provide last 12 months of bank statements showing proof of their rent payments to the current landlord. We ask that the applicant circles or highlights the rent payment on each statement. That allows us to see if payments are made timely, in what amount, and to whom.

Creating a successful budget for your rental properties is essential for managing your business effectively. Here are 5 tips for creating a budget that will help you achieve your business goals:

💰 Identify your income sources. What sources of income will you rely on to fund your rental properties? From rental income to property investments, it's important to understand where your money is coming from.

📊 Determine your expenses. What expenses will you incur as you manage your rental properties? From property taxes and insurance to maintenance and repairs, it's important to identify all of your expenses to create an accurate budget.

📈 Project your income and expenses for the coming year. By forecasting your income and expenses for the coming year, you can create a budget that reflects your business's needs and goals.

💰 Set aside money for unexpected expenses. No matter how well you plan, unexpected expenses can arise. By setting aside money in your budget for these types of expenses, you can be prepared for the unexpected.

💰 Review and adjust your budget regularly. As your business evolves and circumstances change, it's important to regularly review and adjust your budget to ensure that it reflects your current needs and goals. By staying on top of your budget, you'll be well-equipped to navigate the ups and downs of the rental market and achieve your business goals.

By staying vigilant and proactive with your budgeting, you'll be able to effectively manage your rental properties and reach your business goals. Don't let budgeting be a roadblock - use it as a tool to unlock success in the rental market! 💻 Share your thoughts in the comments below! 💬

Screening tenants is an important step in the property management process. By thoroughly vetting potential tenants, you can ensure that you choose reliable, responsible renters who will pay their rent on time and take good care of your properties. Here are 5 best practices for screening tenants:

📋 Use a thorough application process. Require applicants to fill out a detailed rental application, including information such as employment history, rental history, and credit history.

💰 Check applicants' credit reports. A credit report can provide valuable insights into an applicant's financial responsibility and ability to pay rent on time.

💬 Verify employment and rental history. Contact applicants' previous landlords and employers to get a sense of their rental and employment history.

💬 Conduct tenant interviews. Meeting with applicants in person can give you a better sense of their personality and whether they would be a good fit for your properties.

📋 Use a tenant screening service. There are a variety of tenant screening services available that can help you verify applicants' information and identify potential red flags.

By following these best practices for screening tenants, you can choose reliable, responsible renters who will take good care of your properties and pay their rent on time. 💻 Share your thoughts in the comments below! 💬

Effective communication with tenants is essential for any property owner/manager. Here are 5 tips to help you communicate effectively with your tenants:

💬 Set clear policies and expectations with your tenants. By establishing clear guidelines, you can avoid misunderstandings and ensure that your tenants understand their responsibilities.

📱 Use technology to facilitate communication. With tools such as email, texting, and apps, you can stay connected and respond to tenant inquiries and requests promptly.

🏠 Be responsive and attentive to your tenants' needs. By addressing issues and concerns in a timely manner, you can build positive relationships and foster a sense of community at your properties.

💬 Use clear and concise language when communicating with your tenants. Avoid jargon or technical terms that may be confusing and stick to simple, straightforward language.

💬 Be respectful and professional when communicating with your tenants. Treat your tenants with kindness and respect, and be sure to listen to their concerns and feedback.

By following these tips, you can improve your communication with your tenants and build positive relationships. 💻 Share your thoughts in the comments below! 💬

As a property owner, it's important to prioritize regular property maintenance to keep your rental properties in top shape. Here are 5 reasons why regular property maintenance is essential:

🏠 Regular maintenance helps to prevent costly repairs. By addressing small issues before they become major problems, you can save money on repair costs and keep your properties in good condition.

💰 Regular maintenance can improve the value of your properties. By keeping your properties well-maintained, you can increase their value and appeal to potential tenants.

💬 Regular maintenance helps to build positive relationships with your tenants. By addressing maintenance issues promptly and maintaining a clean and well-maintained property, you can create a positive living environment and build trust with your tenants.

🏘️ Regular maintenance helps to reduce vacancies. By keeping your properties in good condition, you can attract and retain high-quality tenants and decrease vacancies.

🌍 Regular maintenance can help you meet local laws and regulations. By following local ordinances and codes, you can ensure that your properties are safe and compliant.

🏠 By prioritizing regular property maintenance, you can improve the value and appeal of your properties, build positive relationships with your tenants, reduce vacancies, and meet local laws and regulations. 💻 Share your thoughts in the comments below! 💬

Owning rental real estate can be rewarding. But it can also be difficult for some investors to juggle all the tasks related to owning and managing a rental property while managing a career, especially if you don't have enough units to scale and hire help.

One of the areas in which I often see property owners make mistakes is the tenant screening process.

There's a vacancy looming. The only applicant that completed the process isn't great. In fact, he or she doesn’t meet the minimum criteria you established. You promised yourself that you wouldn’t risk it, when you first evaluated that rental application.

But you need a tenant who will pay rent. You have a mortgage payment and other operating expenses. In one week, the property will be vacant for another month. Maybe a small compromise on the screening requirements - just this once - wouldn't be such a bad idea, right?

Wrong. The temporary sting of a vacancy can hurt, but the lost rental income of 6-to-18-month eviction, attorney fees, repairs, and vacancy later are significantly more damaging. It's a lesson learned all too often. Unfortunately, some landlords learn it from first-hand experience.

According to the TransUnion, only 43 percent of landlords surveyed use credit checks as part of their leasing process. Ask yourself, what the other 57% of the landlords do?

“Risk comes from not knowing what you’re doing.”

Warren Buffett

After leasing properties and dealing with tenants for 35 years, I want to do all that I legally can to screen tenants. In fact, I want to know more about an applicant than his or her own mother.

@Olivia Grabka. You are correct Olivia, we always want tenants to stick to lease terms. My #1 Tip concerns properties where the lease term is less than 12 months (e.g. 3ms, 6ms.) and that is the term we want to have and to enforce. Not all properties are created equal. Some properties will generate higher returns for owners when rented short-term. There are traveling professionals and remote workers that want short-term housing. For example, a property that is located near a major hospital or a university, may attract "traveling nurses" or PhD students that only need short-term housing, and are willing to pay a premium. I have also worked with relocation companies that were willing to pay much more, so their clients could come to the market and explore options without having to make a long-term commitment. 

Our property management company (Three Pentacles, PLLC) charges 150% of the long-term rate on all leases that are less than 12 month.