Managing Property Until the Turn Around

Some Hard-Hit Cities See Signs Of a Housing Market Turnaround

By James R. Hagerty and Ruth Simon

The latest trends offer some hope for an eventual recovery in a U.S. housing market that generally has been cooling since mid-2005. Even so, many economists and industry executives say that recovery will be very gradual and won't start before 2008 at the earliest. That's partly because more-stringent lending policies are keeping many potential buyers on the sidelines, while others are holding off in hopes of prices heading even lower. Meanwhile, there is still a glut of homes on the market in much of the country, especially in Florida and parts of Arizona, Nevada and California. (See chart.)

Home sales and prices generally should bottom out around mid-2008, says Mark Zandi, chief economist at Moody's Economy.com, a research firm in West Chester, Pa. "The market will not revive quickly, however," he says. "It won't be until the turn of the decade before housing activity returns to more normal conditions."

Well, things are not looking up. In fact many are thinking it will be better by 2010! Given this dismal news it seems that many will be landlords like it or not. Well, if its time to focus on management then where do we begin.
Lets start with professional property management. As always there is a lot of choice, but how do you get to the short list? Well, here are some tips:
If you have a large portfolio of properties or a large multi-family income property you can attract a variety of companies because many are paid as a percentage of rental income. If you have a single family home or a smaller rental property its just not that attractive to many companies because they won't see much income from it and you may not get the attention you deserve. You may find better service from a smaller property management firm.

Wall Street Journal

Property Managers: How Do You Find Them?

Check with the standard sources such as referrals. You can also ask:

• Local Real Estate Agencies - They may have a local property manager they often recommend to or perhaps one of the agents also manages property.

• Check with your local Property Management Association or apartment association for a list of local firms

• In rural areas the State Apartment Association may be a good resource for a firm near you.

What Do You Look for In a Management Firm?

• Valid Brokers License: In may states a brokers license is required to operate a property management company. You can check to with the local dept of real estate to validate it and see if it has ever been revoked or suspended.
  

• Management Fees: Property Management fees are generally a percentage of rental income. Fees can vary from company to company and you should shop around. Expect fees of 5% or more as a percentage of rental income. If you own a single family home or a duplex that has a low rental income number, you may get quoted a flat rate. Get more tips
  

It seems to us that f you cant get your price now, that successful property management is what will help you navigate this storm until time get better.

When the housing rebound comes

When the housing rebound comes
How will you know?

Because housing markets are intensely local, it won't do much good to check national figures. Instead, stay alert to leading indicators of recovery in your local market, such as: Inventory is declining.

In markets with fewer than 6.5 months of inventory, homes tend to be appreciating faster than inflation, says Mark Dotzour, chief economist at the Real Estate Center at Texas A&M; above 6.5, prices are lagging inflation.

1. Houses are selling faster than they used to
Generally, if the average house is selling in less than a month, it's a seller's market. By 90 days it may be a buyer's ball game.
2. Realtors are feeling better
3. Sellers are acting less desperate
All this should give you a hint, says Sacramento broker Elizabeth Weintraub. "If you're seeing no decrease in FOR SALE signs, balloons and banners and OPEN HOUSE signs, and the SOLD signs aren't popping up right away, that's pretty much telling you it's still a buyer's market."

CNN

NAR, always the optimist is banking on the classic business cycle. Lawrence Yun, NAR Senior Economist simple makes the case that inventory will bring prices down and the slowing market will cause declining rates eventually. According to Yun, “Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” Yun said. “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.” We have our fingers crossed, but we know that the trend must play itself out and its hard to predict

The 30-year fixed-rate mortgage is estimated to average 6.7 percent during the second half of this year, and fluctuate around 6.6 percent in 2008.

If you wanted to use these numbers to get a feel for a local market, there are some good resources available.

1. NAR has a quarterly report on Metropolitan Area Existing-Home Prices and State Existing-Home Sales
its comprehensive and you have to trust the source. It would be interesting to test some of the rule of thumb guidelines out forth by the CNN article.
2. Property Shark is a real estate site with extensive data
3. Your Property Path has a good list of real estate blogs

Its your property

Tenant Screening Insurance & Mortgages

Home owners Experience increased risks

We have noticed an increase in the risk of ownership due to a pull back by property and Casualty insurers. Following are some recent articles that point to the problem and with the weather becoming increasingly uncertain we can expect to see more of this. Its only logical that this may begin to affect buying habits in the future.

Homeowners Brace for Disaster Against Potential Property Losses
By M.P. McQueen

As natural disasters threaten to drive up property losses in many parts of the country, insurers increasingly are requiring homeowners to better protect their houses as a condition of staying insured.

These moves reflect efforts by the insurance industry, including Allstate Corp. and State Farm Insurance Cos., to place more responsibility on homeowners to reduce the risk of loss when disasters occur. In many Western states, where wildfires are a growing menace, some homeowners are being required to clear brush over large areas around their houses, or even to install a new fire-resistant roof. In hurricane prone areas of Eastern and Gulf states, some insurers are requiring that certain properties have storm-resistant window shutters in order to be insured.
David Wessman, 47, says he got notice from his insurer a couple of years ago that the company would drop him unless he replaced the wood-shingle roof on his home in Northern California with a fire-resistant one, a job he figures would have cost about $12,000. "We had just spent several thousand dollars to treat the roof [with fire retardant], and they refused to accept it," says Mr. Wessman, a computer-game designer. Mr. Wessman instead found coverage with another insurer.

Meanwhile, in hurricane-prone areas in the East, some insurers are requiring that houses be equipped to withstand heavy winds. The Florida legislature recently passed a bill requiring many homes valued at $750,000 or more to have permanent storm shutters within two years as a condition of receiving a policy from Citizens Property Insurance Corp., the state-run insurer that covers a majority of homes in Florida. The bill is awaiting the governor's signature. And Privilege Underwriters Inc., a new insurer that covers high-end homes in the state, says it refuses to accept any property that isn't built to 2001 state building codes for high-wind resistance.

Wall Street Journal

RECENT DEVELOPMENTS

Hurricane and Windstorm Deductibles

* The South Carolina Wind and Hail Underwriting Association was expanded on March 30, 2007 and again on June 1. The orders, from the department of insurance, expand the coastal territories already covered by the wind pool in four out of the five counties and added coverage on three islands. The department ordered the expansions after considering the results of the Coastal Property Insurance Data Call, a report which found that “essential property insurance is not available on a reasonable basis through normal channels for all consumers within the seacoast area.” The insurance department also conducted a review of information from insurance companies and found that insurers are either not including wind coverage in the policies they write in wind-pool areas, which is permitted, or are increasing deductibles.

* On May 30, 2007 the Governor of Connecticut signed Public Act 77 which prohibits an insurer from not issuing or renewing a homeowners policy solely because the homeowner has not installed storm shutters to mitigate damage from hurricanes and severe storms. It also requires an insurer to offer a premium discount to homeowners who install shutters or impact-resistant glass. These provisions go into effect on January 1, 2008


* Florida Legislation: The governor of Florida signed legislation (SB 1980) in May 2006 which stipulates that starting July 1, 2008 Citizens, the state-run insurer of last resort, will no longer cover homes with a combined structure and contents replacement value of more than $1 million. In these cases, homeowners will have to apply for coverage from either the voluntary private market or the surplus lines market. Citizens coverage will only be available if an applicant can prove that coverage is unavailable elsewhere and then only for a limit of three years. Vacation or second homes were also eliminated, but this provision was rescinded in January 2007. The law also encourages homeowners to invest in hurricane-mitigation measures, such as hurricane shutters. Homeowners will be able to request inspections at no charge to get recommendations about how to reduce their home’s vulnerability to hurricane damage. Grants will be available for retrofitting; depending on the insured value of the structure and the homeowner’s income, some grants will have a matching funds feature. Owners of mobile homes and manufactured housing will also be eligible for grant money.

* Legislation passed in January 2007 requires insurers to give policyholders the option of declining windstorm coverage, if the homeowner provides a handwritten statement saying that he or she does not want the coverage and if a mortgage or lien holder provides a document of approval, confirming that there is no mortgage or lien on the home.

Insurance Information Institute

How is This Affecting the Homeowner?

Besides the highest risk areas no longer getting automatic insurance coverage from the large companies we all know and have dealt with over the years, there is a void that is being taken up by questionable insurers usually state run. These lenders of last resort are aggregating the risk in order to keep home covered. After all, could you sell your home if it was uninsurable? What lender would lend for a purchase for a home that was unprotected. Could an owner borrow to remodel?

The damages done by hurricane in Florida caused the state to apply a 3 billion dollar charge to its state policy holders. In other words, everyones premiums went up. The reason is the state associations charged with providing insurance to homeowners when there is no private market left, really dont have the money for a major disaster.

No one really believes that the California Earthquake Insurance Association could cover a major quake the size of the 1906 quake. They simply dont have that much in the till. Still, Cities and states have a big stake in making sure that their constituents have coverage. Real estate is a huge part of the economy if you consider property taxes, commodities used in remodel, sales tax generated by home sales, industry employment and more. All of this would go away if there was no coverage at all. Ownership would just be too risky.

The Lenders of Last Resort

These state created lenders of last resort offer premiums at affordable rates and are often the only option left as the private markets retreat form high risk areas, leaving only the state to protect their constituency. The result is that the states have taken on a financial responsibility that is not fully funded if a big disaster where to take place. These associations have actually created a pool of high risk potential cost. Ultimately, of course, it will be up to the state and the Federal Government to step up. According to the the Wall Street Journal, the cost of flood insurance in the 16 hurricane prone states has grown from 200 billion to 600 billion in just five years.

Your Property Path

Tenant Screening Insurance & Mortgages

Tenant Screening Software: Managing Risk

Identity theft, Free Loaders, Collections, Small claims court and worse. Whats an owner to do. If you think about it, tenant screening is all about risk management. What is worse than a long term relationship with a deadbeat or a constant annoyance.

The credit report goes a long way towards trying to measure the reliability of potential resident. The FICO score is comprised of over a hundred variables to help you measure the behavior of a human being. There are more tools available for the owner/manager to help keep the problem people out of your life.

We wanted to follow up on the last blog entry with some automated tools being used by some landlords.
Tenant screening software comes in two varieties...

1. Rules Based Software: It is an interactive approach requiring the owner/manager to set the criteria they want to use to screen potentials. Each applicant must pass these criteria.
The variables that are commonly used are often similar to the major criteria seen in a credit report, FICO scores use over one hundred criteria but some of the most critical ratios are:

• Rent to Income
• Debt to Income
• Late Payments
• Insufficient funds or bounced checks
• Evictions and much more, criteria is added by the owner/manager

2. Statistical Based Software: Statistical software trys to predict tenant behavior. It uses statistical scoring models based on the actual behavior of hundreds of thousands of tenant behavior. This is an attempt to quantify human behavior and to reliably predict the future behavior of a potential tenant in the future.

The statistical approach maintains a data base of tenants and the factual data regarding the tenancy. It attempts to find tenant behavioral patterns by mining the data and using the common factors to predict the behavior of an applicant.
Tenants that are late pays or dont pay rent seem to have patterns of behavior that are in the public records.

Tenant Screening Insurance & Mortgages

Tenant Screening Tips and Tricks

This week we wanted to continue to look at tenant screening and the entire rental process, for those of you who are property managers or for those of you caught in the downturn and find yourselves new property managers.
The screening process is one of the most important decisions you make when owning a rental property. Its important to understand the law and its important to find the best tenant for you. Following is an article that lives on our real estate web site that you may find helpful. But first a quick look at the markets.

Of the 52 cities tracked by the blog housing tracker all but two had rising inventories for the week. This info is pulled from the MLS and so we tend to accept its accuracy. Inventory is increasing in almost all cities with some of the Pacific Northwest and Bay Area escaping the big hit soo many of us are taking.

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Mortgage Rates Fall fo the Second Consecutive Week

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.67 percent with an average 0.4 point for the week ending June 28, 2007, down from last week when it averaged 6.69 percent. Last year at this time, the 30-year FRM averaged 6.78 percent.

The 15-year FRM this week averaged 6.34 percent with an average 0.4 point, down from last week when it averaged 6.37 percent. A year ago, the 15-year FRM averaged 6.43 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.30 percent this week, with an average 0.5 point, down from last week when it averaged 6.31 percent. A year ago, the 5-year ARM averaged 6.39 percent.

Freddie Mac

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May Existing- Home Sales Show Market is Under Performing

Lawrence Yun, NAR senior economist, said the market softness is understandable. “I think psychological factors are currently the biggest drag on the housing market, in addition to a disruption from tighter credit for subprime borrowers,” he said. “Household formation has slowed dramatically since late 2006, implying that many people are doubling-up – they’re adding roommates or moving in with parents.

“The market is underperforming when you consider positive fundamentals such as the strength in job creation, economic growth, favorable mortgage interest rates and flat home prices. It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market.”

National Association of Realtor

Tenant Screening Tips and Tricks

Have potential tenant complete and sign a standard rental application to provide personal and employment information and authorize the landlord to obtain a credit report and background checks. Obtain the applicant credit report through a Credit Reporting and Tenant Screening Agency

Do a thorough background check. Do call prior landlords. They are your best, most honest source for information regarding on your prospective tenant. Present landlords, wanting to get rid of bad tenants may not be most objective source for you.

• Don't rush. The credit and background checks take only a few hours to complete.
• Pay special attention to Fair Housing Laws. Many prospective tenants do know the law. The internet is a wonderful source for both tenants and landlords. Know what you can say and be careful to stay within those guidelines
• Never discriminate based on race, color, national origin, religion, gender, family status or handicap or source of a person's income.
• Check with your state and local laws to make sure you are complying with all regulations.
• Tenant Associations and local rent boards are good sources for compliance questions. If dont have the time, you may want to look to professional property management.

You may and should consider the following when setting your criteria. More on this discussion can be found here.

Tenant Screening Insurance & Mortgages

Reverse Mortgages: A source of cash and Some New Opportunities

This week the housing slump continues with the western states of California, Arizona and Nevada taking the lead in foreclosures. It seems pretty clear that the slump will continue, now that mortgage rates are rising. The cost of money, in the form of higher interest rates, always makes home prices even more out of reach for many people. Consider that the variable mortgages that have been taken out in the last few years are re-setting and that the higher monthly payments will put more supply on the market. The only conclusion is that the markets will continue to slump until this surplus inventory is absorbed and that is now expected to take until 2008.

New foreclosures Rose to a Record level

New foreclosures rose to a record level in the first quarter, with 0.58% of all mortgages entering the foreclosure process, the Mortgage Bankers Association reported this week.
Much of the blame for the increase came from the jump in foreclosure starts in California, Florida, Nevada and Arizona, where speculators likely walked away from homes, the MBA said. Other states keeping the foreclosure inventory rate elevated were Ohio, Michigan and Indiana, where local economies were hurt by job losses.
And, as the Stanford Washington Research Group, part of financial services firm Stanford Group Co., told investors following the report, these states represent about one-third of seats in the U.S. House of Representatives -- helping to keep the issue of mortgage reform legislation on Congress' to-do list this year.
Further, the firm doesn't believe delinquency and foreclosure data will improve before the enactment of reform legislation, including the revamping of the FHA mortgage program and the imposition of restrictions on mortgage underwriting.

MarketWatch

Mortgage Rates Spike as Treasury Yields Rise

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.74 percent with an average 0.4 point for the week ending June 14, 2007, up from last week when it averaged 6.53 percent. Last year at this time, the 30-year FRM averaged 6.63 percent. The 30-year FRM has not been higher since the week ending July 20, 2006, when it averaged 6.80 percent.

The 15-year FRM this week averaged 6.43 percent with an average 0.4 point, up from last week when it averaged 6.22 percent. A year ago, the 15-year FRM averaged 6.25 percent. The 15-year FRM has not been higher since the week ending July 6, 2006, when it averaged 6.44 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.37 percent this week, with an average 0.5 point, up from last week when it averaged 6.24 percent. A year ago, the 5-year ARM averaged 6.23 percent. The 5-year ARM has not been higher since the week ending July 6, 2006, when it averaged 6.39 percent.

One-year Treasury-indexed ARMs averaged 5.75 percent this week with an average 0.7 point, up from last week when it averaged 5.65 percent. At this time last year, the 1-year ARM averaged 5.66 percent. The 1-year ARM has not been higher since the week ending July 27, 2006, when it averaged 5.78 percent.

Freddie Mac

An Extra Cash Lift Reverse Mortgages Expand to Second Homes
By Tom Kelly

Reverse mortgages for second homes, until now available through a handful of small regional banks, will soon be offered by at least two national lenders.

Bank of America, which recently announced an agreement to acquire the reverse-mortgage business of Seattle Mortgage, is expected to roll out the second-home wrinkle as soon as the purchase is completed this summer. BNY Mortgage, which recently introduced the first jumbo fixed-rate reverse mortgage, also will allow reverse mortgages on second homes under certain guidelines.

"The demographics of our seniors and the upcoming boomer group indicate there are multiple tentacles of financial planning tools that could be used in the long run," said John Nixon, executive vice president and chief operating officer of Reverse Mortgage of America, a division of Seattle Mortgage. "One of those tools would be helping people with significant equity in the second home to help tap that equity to make their lives more comfortable."

Washington Post

Reverse Mortgages

Many older Americans are seeking money to finance a home improvement, pay off a current mortgage, supplement their retirement income, or pay for healthcare expenses.They allow older homeowners to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills.

In a conventional mortgage, you make monthly payments to the lender. But in a “reverse” mortgage, you receive money from the lender and generally don’t have to pay it back for as long as you live in your home. Instead, the loan must be repaid when you die, sell your home, or no longer live there as your principal residence. Reverse mortgages can help homeowners who are house-rich but cash-poor stay in their homes and still meet their financial obligations. NOTE: Reverse mortgages are loans against your house and you do not have to have any income to qualify. You must be at least 62, living in your home as your principal residence and have equity in the home.

To qualify for most reverse mortgages, you must be at least 62 and live in your home. The proceeds of a reverse mortgage (without other features, like an annuity) are generally tax-free, and many reverse mortgages have no income restrictions.

As you consider a reverse mortgage, be aware that:

• Lenders generally charge origination fees and other closing costs for a reverse mortgage. Lenders also may charge servicing fees during the term of the mortgage. The lender generally sets these fees and costs.

• The amount you owe on a reverse mortgage generally grows over time. Interest is charged on the outstanding balance and added to the amount you owe each month. That means your total debt increases over time as loan funds are advanced to you and interest accrues on the loan.

• Reverse mortgages may have fixed or variable rates. Most have variable rates that are tied to a financial index and will likely change according to market conditions.

• Reverse mortgages can use up all or some of the equity in your home, leaving fewer assets for you and your heirs. A “nonrecourse” clause, found in most reverse mortgages, prevents either you or your estate from owing more than the value of your home when the loan is repaid.

• Because you retain title to your home, you remain responsible for property taxes, insurance, utilities, fuel, maintenance, and other expenses. So, for example, if you don’t pay property taxes or maintain homeowner’s insurance, you risk the loan becoming due and payable.

• Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.

Getting a Good Deal

If you are considering a reverse mortgage, shop around to compare your options and the offered terms. Learn as much as you can about reverse mortgages before you talk to a counselor or lender. It will help you ask more informed questions, which could lead to a better deal.

If you want to make a home repair or improvement or need help paying your property taxes, you may want to find out if you qualify for any low-cost single-purpose loans that may be available in your area. Area Agencies on Aging (AAAs) generally know about these programs. To find the nearest agency, visit www.eldercare.gov Ask the AAA for information about available “loan programs for home repairs or improvements,” or “property tax deferral” or “property tax postponement” programs.

If you are interested in a federally-insured HECM, know that all HECM lenders must follow HUD rules, and that many of the loan costs including the interest rate will be the same no matter which lender you select. Still, some costs including the origination fee, other closing costs, and servicing fees may vary among lenders.

If you live in a higher-valued home, you may be able to borrow more from a proprietary reverse mortgage. But it generally will cost more. The best way to see key differences between a HECM and a proprietary loan is with a detailed side-by-side comparison of future costs and benefits. Many HECM counselors and lenders can provide you with this important information.

No matter which type of reverse mortgage you are considering, be certain you understand all the conditions that could make the loan due and payable. Ask a counselor or lender to explain the Total Annual Loan Cost (TALC) rates, which show the projected annual average cost of a reverse mortgage, including all itemized costs.

Its Your Property

Tenant Screening Mortgages & Insurance Services

Apartment Rentals: Multi Housing Sector is Alive and Well

Where housing will bounce back and when

When it comes to real estate, the questions on everyone's lips are: How low is low, and when's the perfect time to buy back in? hat moment has passed in Seattle and Charlotte — both metros hit bottom in the first quarter of 2006 and have since posted price gains of 12.3 percent and 6.3 percent, respectively, according to National Association of Realtors (NAR) data.

Ripe for investment? Philadelphia and New Orleans. Based on housing inventory and local economic conditions, both should hit price troughs by year's end and bounce back with moderate gains around 4 percent in 2008.

MSNBC

Long and Short-Term Mortgage Rates Reach 10 Month Highs

McLean, VA Freddie Mac today released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage averaged 6.53 percent with an average 0.4 point for the week ending June 7, 2007, up from last week when it averaged 6.42 percent. Last year at this time, the 30-year FRM averaged 6.62 percent. The 30-year FRM has not been higher since the week ending August 10, 2006, when it averaged 6.55 percent.
The 15-year FRM this week averaged 6.22 percent with an average 0.4 point, up from last week when it averaged 6.12 percent. A year ago, the 15-year FRM averaged 6.23 percent. The 15-year FRM has not been higher since the week ending August 3, 2006, when it averaged 6.27 percent.

Freddie Mac

Full Commissions Make a Comeback

The tough market for home sales may be spurring a surprise side effect on real estate commissions: For the first time in years, the average commission rate on closed sales nationwide rose slightly last year.

According to a review of revenue and cost data from hundreds of brokerages by the industry publication Real Trends, the average commission rose by nearly one-fifth of a percentage point last year, to just under 5.2 percent. That turnaround came despite the growing number of real estate firms that offer discounted standard commissions or limited-service options in which consumers pay lower fees but perform some of the tasks traditionally handled by full-service real estate agents.

Washington Post

Rental Properties Can Be a Good Investment

If you own to rent it can be very helpful to understand why renters move and what amenities they choose in their new digs. If we can isolate the major needs of tenants we can begin ot offer those amenities ourselves and we can certainly punch up our new listings advertising by highlighting those amenities for ourselves.

HUD produces a study every two years or so and polls tenants that have moved. Paying attention to our tenants is the best way to create strong interest in our available rentals and to assure good tenant rentention. Keeping good tenants assures a stable cash flow. This allows us to plan with some assurance new business activities and helps us stay on a stable maintenance program.

Why do renters move

According to the US census Bureau about 1 in 3 move every year. With home sales slowing we see rentals gaining strength and in my market, San Francisco, we see apartment sales which are based on cash flow and are bought for investment reasons not emotional reasons (as family homes are often bought).

The first reason given in the HUD study was to begin a family. This means to us that if your tenant has notified you with a thirty notice to terminate and you have a larger unit coming up, you should consider an offer to move them to the larger unit rather than letting them go.

Target Market: new families. If you have a large unit vacancy then you might consider new families as a target market. Please be careful of Federal fair housing laws, you cant discriminate for or against children. Post flyers in laundromats, near family clinics, family birthing classes.

The second reason given for a move was job location.

Target Market: We think it would be good for an owner to be aware of transportation, location to highways and emphasize being close to any large companies or industrial parks in your area. The target market should certainly include employees in these locations and your listings should mention ease of travel or even travel time to large employees. Place flyers near work places with good access to your area, local community papers, internal company newspaper

Another big reason when choosing units is price.
The take away: Know you market. Price you unit or home according to the area and your amenities. If you price too low you may wait years to get to market value for that unit, especially if its rent controlled. If you price too high, you may wait months for a rental causing a loss in the unit.

Action Plan
1. Search craigs list for units in your area with the same size and amenities. We like to use craigs list as a MLS for rentals. Its been very effective for establishing a ball park number.
2. Drive your neighborhood and notice for rent signs. Call them and get a sense of your local market before you price your home or unit.
3. Notice the curb appeal of units in your area.There are many cosmetic upgrades that are inexpensive yet create interest.
a. Try some flowers or landscaping to make the front more attractive at little cost to you
b. Try offering some high tech amenities such as DSL or wireless in the building
c. Offer storage if you have under utilized space such as a basement area
d. Consider installing a revenue sharing plan for either storage units or laundry room. There are companies that will provide the equipment on shared revenue basis.

Fair Housing

Be sure you are aware of fair housing laws as they relate to what and how you can describe a property or you can face a discrimination law suit.

Fair housing laws prohibit making, printing or publishing a notice, statement, or advertisement that indicates any preference, limitation, or discrimination based on a protected class. Advertising must show that all people and classes are being equally considered. Fair housing laws address all types of statements newspaper, radio, magazines, and television. All of the above including vacancy signs are advertising and must not prohibit making any statement indicating a preference or put limits on housing. There are some exemptions but it is advisable to be sure that you are among those exceptions before you advertise

Images in Advertising: If you customarily use advertising with photographs or drawings of people, try to use men, women, children, people with disabilities, and people of all races, nationalities and ages in a way that reflects the population as a whole. A key is to be sure to use images that are representative of society in general.

Language: Avoid using words or phrases that show a preference or discourage anyone because of his or her protected class. If you describe the property itself and not the targeted audience, you are safer under fair housing laws. Make no assumptions about the needs or desire of a protected class that may seem to categorize them.

Marketing to a protected class: Be careful with your language. Do not make assumptions about the need of a group of people. It is best to objectively describe the property and allow the prospective applicant to determine their needs, but it can be mentioned that your unit has access for the disabled or that you are near schools and playgrounds and that families are welcome. There are other exceptions. It is advisable to always be careful and consult with your attorney or apartment association.

Tenant Screening Mortgage & Insurance Services

Its Your Property