Charlotte Property Management Weekly: Obama’s Entrepreneur-less Recovery Plan
“Too big to fail.” (President Obama)
“…(Then US Treasury Secretary Alexander) Hamilton regarded the national debt as ‘a national blessing,’ for it permitted the clustering of resources into the hands of a small group of enterprising men who would invest and not just spend it.” (Founding Brothers by Joseph J. Ellis)
Learn MoreCharlotte Property Management Weekly: Coke vs. Pepsi vs. Your Real Estate Firm- What’s the Difference?
“I can’t believe that millionaire CEO who just moved to town is looking for houses with Jimmy “The Home Seeking” Missile. Doesn’t he realize Jimmy knows more about weaponry than he does real estate?” (Baffled Charlotte Real Estate Agent)
Coke and Pepsi have been warring over market share in the soda business for a long time. Coke had a gigantic lead until Pepsi started making inroads in the 1970’s and 1980’s.
Learn MoreCharlotte Property Management Weekly: Sarah Palin- A Huge Rent-To-Own and Seller Financing Fan?
“I need to do something to sell my empty house NOW.” (Unhappy Charlotte Landlord)
Moderator: “Who do you think was at fault? I start with you, Gov. Palin. Was it the greedy lenders? Was it the risky home-buyers who shouldn’t have been buying a home in the first place?”
Sarah Palin: “Darn right it was the predator lenders!” (VP Debate vs. Joe Biden 10/2/08)
Learn MoreCharlotte Property Management Weekly: What is “Rent-To-Sell”? A Primer by “Ugly Kid”
“You think ‘Rent-To-Sell’ is the best way to sell in this economy? Why is it better than just listing my home for sale?” (Skeptical Charlotte Home Seller)
“My son will have a date to that darn prom if it is the last thing I do…” (Rueful rallying cry from the father of “Ugly Kid”)
A father had a problem. Rather it was his son’s problem, but he couldn’t stomach the thought that his offspring was so unappealing to the opposite sex.
Learn MoreCharlotte Property Management Weekly: Retail Lessons on How to Sell the “Little House on the Prairie” in Today’s Market
“Oh, I wish a buyer would buy my house now…” (Many anxious Charlotte home sellers)
“Oh, I wish I could buy a house right now…” (Many anxious Charlotte renters)
Retailers are getting a really bad rap these days. Their sales figures are low, profit margins are terrible (they have to discount everything to move it), many are going into bankruptcy, and Wall Street is punishing their stocks.
Learn MoreCharlotte Property Management Weekly: Interpreting Signs in New Testament Times & Today
“The real estate market is coming back!! Did you see the news last night? The Fed and Obama say the recession is over. They’ll be buyers for my house in no time!” (Charlotte Landlord)
“…When evening comes, you say, ‘It will be fair weather, for the sky is red,’ and in the morning, ‘Today it will be stormy, for the sky is red and overcast.’ You know how to interpret the appearance of the sky, but you cannot interpret the signs of the times.” (Jesus Christ, recorded in Matthew 16:2-3)
Learn MoreCharlotte Property Management Weekly: Rental Incentives with Dennis Rodman
“I’ve had my home listed with my real estate agent forever! I didn’t figure it would sell in this market, but he has it up for rental and rent-to-own as well on MLS. Still, there are no takers yet. What gives???” (Charlotte Landlord)
Dennis Rodman was one of the most prolific rebounders in NBA history, a 2-Time All-NBA Defensive Player of the Year, and an integral member of five championship teams. Known affectionately as the “Worm”, his off the court antics were even more noteworthy.
Learn MoreCharlotte Property Management Weekly: “To evict or not to evict” OJ Simpson
“If the glove doesn’t fit, you must acquit.” (Johnnie Cochran- OJ’s lawyer)
“If the tenant doesn’t submit (payment), you must evict?” (Anxious Landlords)
From a drama perspective, OJ Simpson’s (first) trial was great theater. It had a thrilling beginning (who could forget the white Bronco chase on the interstate?) and it immediately captured the nation’s attention. The story was televised 24-hours a day and reporters energetically followed every lead and generated hundreds of side stories (the “Dancing Ito’s” anyone?). The public was excited, and then the trial got past its first week (which turned out to be the first of around 60 weeks). Whew!
Learn MoreBest 2 Rental Strategies in this Economy with Help from Ashley Judd
Worried Charlotte landlords are asking, “How do we keep the rental cash flow coming in? My tenant’s lease expires in a few months and I don’t have the cash to spare for the mortgage payments if they leave. What to do?”
The answer lies in the timeless story of true love. Much like a tearful Val Kilmer in the movie, “Heat”, when his wife is about to leave him says, “I can’t let her go. My sun rises & sets with her, man…” Or Romeo and Juliet, who would not leave each other despite their disapproving families… This needs to be the relationship between you and your current tenant.
“What??” you are probably saying. “Val Kilmer was shedding tears because he was about to lose Ashley Judd, man; what guy wouldn’t be crying? And, didn’t Romeo and Juliet both die because they were too stubborn to go out and meet other singles?”
That non-withstanding, your Top 2 strategies to weather this rental storm:
1. Like Val Kilmer not allowing Ashley Judd to leave him, you must keep your tenant if they are paying somewhat regularly. If you let them go, you are looking at many costs (let’s see if I can list them alphabetically- fix-up, miscellaneous, mortgage, property management tenant procurement fees, utilities, vandalism). And from a revenue perspective, the rent you can now command will be 10-20% less.
However, if you keep your tenant, you can avoid these costs and keep the rental rate constant. The truth is, your flexibility at this point is limited- you need to get through 2009 and survive until the end of 2010; the improved economy should allow you to raise rents or sell your rental at that point. To be proactive, we contact our tenants 75+ days before the end of their lease and try to incent them to stay. This approach has put our lease renewal rate at 90%+ in 2009 thus far. As much as you do not want your tenants to move, they don’t really want to move either (it’s expensive!). Get them to stay! If they are planning on leaving, find out why and try to make it right.
2. The economy is against you; don’t let seasonality get you as well! If your tenant is going to leave no matter what you do, don’t leave yourself in a ditch. When writing leases, don’t have them end 7/31 (kids going back to school), 8/31 (kids), 11/30 (holidays); I know this is sometimes easier said than done. However, there is no rule that says leases have to be 1-year long; when not offer an 11-month lease or a 14-month lease to steer clear of bad rental months when few people move?
It’s time to play defensively and hunker down! Don’t let Ashley Judd walk out on you!
Brett Furniss is the President & Owner of BDF Realty, “Charlotte’s Most Innovative Property Management & Investment Company” (www.BDFRealty.com and www.RentToSell.com). You can follow his Twitter thoughts on the Charlotte real estate market by clicking on http://twitter.com/bdfrealty. He is the author of the FREE E-Manual entitled “How to Rent-To-Sell Your Own Home” (http://www.renttosell.com/RTS-Book.html) which details how to get the most potential buyers to your home in this challenging real estate market.
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