2020-05-01 COVID-19: A GOOD TIME TO RE-EVALUATE
| By:
Jeff Taylor
COVID-19: A GOOD TIME TO RE-EVALUATE
Jeffrey TaylorFounder@MrLandlord.com
During this time period many landlords are seeing how vital it is to have qualified and cooperative residents in their property who continue to pay rent. With economic chaos all around, don't simply sink down and get trampled. Instead, we should take a second look at our procedures to see how we can come out stronger from all this. Some landlords are considering changing their procedures to increase the odds of getting qualified and cooperative residents.
One successful landlord named (S i d, MO) shared on our Q&A Forum the following new procedure he will soon be implementing: "I've had auto-pay as an OPTION for about 18 months now, and a little over half of my residents use it. But going forward with new lessees, I've decided to make it a requirement. Why? It's so EASY! That alone is a good enough reason. But I also think it speaks to the character of a resident who is trustworthy enough to have an account in good standing and who is willing to ensure they have money ready to go on the due date. The full amount too, not "whatever is left over" is what the landlord gets this and every month. This may be a nutty time to make a change like this with all the economic chaos going on right now. And I might be back here next month or June singing the blues.
But for now, I want to give this a try and see if I continue to get better quality residents and have fewer hassles collecting rent." My response: This is the perfect time to re-evaluate how you can better protect yourself and get more qualified residents. Even minor adjustments can significantly add to your success over time. During the last month on all new leases going forward, I have implemented the following requirements or changes: 1) Minimum standard security deposit has to be at least the equivalent of 1 and 1/2 the rent amount on all new residents. 2) Re-evaluate all rental rates and increase the rents on new leases moving forward, ranging from 2% to 15% increase.
Starting this month I will also: 3) Increase the amount of the application fee by an additional $10 per application. To see the complete discussion "Am I Nuts?" (to be making changes in the midst of economic chaos) click now. Also, it's a good time to consider utilizing a service referred by one of the landlords in the discussion that can help you get set up to receive automatic payments each month. Agree or Disagree? Share your thoughts. We welcome your feedback or any landlording tip you would like to share. Email editor@MrLandlord.com. Editor's note: Our tenant screening sponsor continues to be an excellent source for helping you qualify applicants. View their new Overview on screening services they offer.
Keep moving forward and continue to make the most of the assets God gives you!
Jeffrey TaylorFounder@MrLandlord.com |
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