I’m not a psychologist. Nor am I able to speak in absolute maxims because let’s face it, no two people are alike. But there is a pattern to tenant behavior. Here are some of the things I noticed in the eighth years I have managed other people’s property.
Any change over is fair game for downright deceitful behavior. It’s amazing how any new owner is showered by tenants with “promises” the other, previous landlord had made. Heck, we’ve had a fake receipt given to a new owner this last go-round. I guess the tenant didn’t think that a fake receipt for the equivalent of four months of rent wouldn’t be verified by the previous landlord. Fortunately the previous landlord still has his receipt book. But we see variations of this over and over and over again when we take over new rental properties either through our property management business or our investment property sales division.
40%-50% of Rents Comes In “Just in time”
A great many of our 252+ tenants pay their rent early. Sometimes as much as a week early. But the greatest majority of our rents come in on the last day and a half before the late fees kick in. Our late fees kick in on the 6th of the month. We’re thinking about new leases saying the late fees kick in on the 4th of the month. I’m sure the money would then all arrive on the 3rd. Just human nature?
Working with tenants is different than working with buyers/sellers in this aspect; Buyers and sellers, in general, tend to calculate and plan their next moves while tenants tend to be more impulsive. They want to see a For Rent house “right now, I’m out front” or they need to move “immediately” even though the lease doesn’t end for another four months, etc. But that’s the beauty of short term commitments, right? I’m not saying the tenants are wrong to be more short term on their thinking. It goes with the leases. You have to adapt to that.
Quality of Housing
Tenants want the same things as buyers. They want clean, safe housing and good schools and convenience to local amenities. Some owners and landlords seem to think that these things are not as important to tenants because they’ll be living their less time, most likely. But it’s simply not true. We have tenants, many of them, that could purchase homes if they chose to do so. But they like the convenience and mobile nature of leasing. Make no mistake, however, that they want as nice a house as they can afford. They want the same things buyers want when it comes to those issues. Deliver them a quality house and you’ll most likely get a quality tenant.
I have a Meet Up account to help track our Bicycling in Olathe and Beyond. “BOB”
That’s the URL to visit to keep track of the bicycling adventures that we will schedule here in Olathe. Yes, I fully realize that this has little to do with real estate or real estate investment property. But it’s part of who I am. Just like Jayhawk basketball, my wife & kids, and my faith.
Anyhow, if you are a reader of BBQ Capital and you like bicycling, or would like to try bicycling, come on out and join us. I don’t take myself too seriously and it’s my hope that this group won’t either.
We’ll start at our office here in Olathe. Good sized parking lot and good access to trails. Also, a couple good “after the ride” meeting spots. Hope to see you.
We have been enjoying historically low interest rates for about these past 6+ years. I mean historical. If you are reading this and you are 35 and under you need to know it’s not your God given right to have interest rates at or below 5%. These rates are going to go up. It’s really just a matter of time. In fact, I’m surprised they are still so low.
When interest rates rise it negatively impacts your rental property purchases. Don’t worry. The income property you have now, if it’s on a fixed, conventional loan, won’t change. But your purchase of additional rental property will change. With higher interest rates you’ll have to buy the rental property at a lower price or get higher rents (or a combination of the two) in order to receive the same rates. And that is not always possible.
Then 10% cap rates become 9% cap rates, and so on.
Now is the time to keep buying rental property if you can afford it. My guess is, it’ll be decades more before we see rates this low again.
HELP WANTED: Ad Astra Realty, Inc is in need of a bookkeeper/accountant to start work immediately. This is initially a part time position that could grow to a full time position depending on skill set and expected, continued growth.
Must be familiar with bookkeeping, Quickbooks and minor account auditing. Ability to learn a new set of financial tracking software, Buildium, a must. We have trusts accounts that we must get perfect for our clients.
Duties to include bill processing and payments, owner ledgers and disbursements, deposit preparation, account audits, processing of commission checks, etc. Additional hours could be earned if you have additional customer service skill sets.
The perfect candidate will have the skills previously listed but also include a self-starting work ethic, great attitude and a willingness to figure out how to get the job done. We work hard. We have fun. Must be able to put up with a boss who likes Jayhawk basketball.
Initially a 15-18 hour a week position. Pay range $13 – $18/hr depending on experience. Even part time we offer a one week vacation after one year of service. (Based on avg hours worked.)
To join our rapidly growing real estate and property management business please send a cover letter and resume to Chris Lengquist of Ad Astra Realty, chris (at) AdAstraRealty.com. No phone calls please. Interviews begin soon.
I am very excited to announce our very first Web Conference. I’m sure we’ll develop a catchy name. But for now, I’m just calling them Tuesday Talks. For our very first meeting, I’m going to keep it basic. It will be a kind of give and take to ask others what they will want to learn on these talks. What is interesting to you? Please share in the comments section below or drop me a private email.
Real estate investing will most likely be the chief topic. But we’ll also have to discuss property management and how that has an affect on your returns. We can also discuss financing, leverage, etc. We’ll have more pronounced topics as time moves on. But for our inaugural meeting, we’ll be general.
This first meeting may also give me a clue as to demand for this kind of thing. How many times a month, etc.
So, won’t you join us to talk about real estate investing in Kansas City…and beyond. The principles are the same. It’s the geography that changes.
Tue, Feb 24, 1:30 PM Central Standard Time
There are some great people that can help you with your Kansas City real estate investing and property management. I’d like to think that we here at Ad Astra Realty, Inc are in the best position to help you with your acquisition of income property and then to tackle the ongoing property management. We have two websites that show you what we do. For sales, both buying and selling, you can find out more about Chris at Ad Astra Realty, Inc.
For Kansas City property management you can find out what we do over at KCPropertyManager.com. They are two very separate parts of your investment / retirement planning. But they are are very much related to one another.
CRITERIA is so important to your planning.
If you know you are going to have to manage a property you sell, you pay more attention to the buyer’ criteria. If you know you are going to have to one day sell a property you are managing, you tend to keep an eye towards the future during the management phase. It just makes sense.
Give us a call today so that we can see how we may be able to best help you.
For sales, call us at 913-815-3474
For property management call us at 913-839-2953.
Ad Astra Realty, Inc.
Serving Kansas City’s real estate investor and property management needs.
I am so excited that next week I’m going to be in Las Vegas while the troops here in the office keep up the good work. I am going to the NARPM Broker/Owner’s retreat for a little (hopefully a lot) of property management education.
Real estate investing leads to property management like sex leads to babies. I wrote that back in June of 2014. See, new investors seldom seriously (I mean in detail) think about property management. And neither did I, at first. Heck, I sold investment property for years trying to shirk my continuing commitment to my clients to make sure those properties were correctly managed in the coming months/years.
I would refer the work out. But the comments (complaints often times) kept coming back to me. After all I was the one who sold them the rental house. Couldn’t I help them?
What I am trying to say is that property management in Kansas City was an accidental business for me. I didn’t grow up wanting to be Kansas City’s property manager. But now that it is here and in my lap I want to do the very best I can for my clients, my business and our collective futures.
Yes, we still do investment property sales. Heck, I sold 70+ investment units last year in addition to my “regular” sales. But our propery management business, KC Property Manager, has continued to grow and grow. And now we, I, need to get better and better at it.
Wish me luck this next week. It could be for your benefit.
Ad Astra Realty, Inc