How to Market a Property

A vacancy drives me crazy. I thank God for not having much of those periods in my landlord journey. My previous post is about my respect for my young tenant who is moving back home due to her financial state. I respect her for being a man (woman) about it, swallow her pride and move back with mom and dad. However, if I don't get a tenant soon, I may have to live with a vacancy for a month. And I don't think I can afford to have that huge reduction in my income. So much for my plans to be a more responsible investor and cutting on my budget. I still have 3 weeks to show, screen, approve applications and sign a contract. This is how I market my property for rent:

How to Market a Property for Rent (or Sale)

In my 10 years in the real estate world, I have seen marketing trends coming and going. I remember searching for a place to rent in a classified section of a newspaper. That's what was efficient at time. I circled all the prospects with a marker, called (not email) property managers and went to view the apartments. I loved that huge apartment and I threw a few parties there too. Anyways, that process of the newspaper going from the editor's desk, to print, to hitting the shelves seems to have grown with time. Or rather replaced by the quicker and more efficient methods of advertising. Here's how I am actually marketing my current vacant duplex.

• Online Media

The local classifieds websites work very well. The ones on real estate are even more targeted. Your target market is there searching for your property. I post my advert in two or three. The challenge I get is the spamming by the property managers. Its a minor irritation. But I go back to remove the ad as soon as I can after securing the tenant.

• Email List (No Spam Please)

 I email my friends and family with photos and maybe a link to the vacant property advert. This method has worked better than any other, so far. My loved ones always give me the best referrals. I am also happier having a tenant that someone I trust knows. This is how I got one of my tenants. We have a great relationship but the fact that we know each other gets in the way of business sometimes. But I can really live with that. Don't get me wrong, I do get strangers who do even better. My best tenants are people I never knew before. I must send the email today by the way.

• Social Networking

Social networking has changed my life and that of other business people I know. I post a link to my personal and business profiles, and in seconds, there are comments and references. Its amazing. I am indebted to my facebook friends for the highest quality leads. This works like a dream. I love it.

• Print Media

 Like I mentioned, this is not for me. It worked well in the 90s. Property management companies do use this just to let the prospective tenants know they exist. And it makes sense when you have tons of properties for rent or sale. If it works for you, stick with it. This is not a "one size fits all" list.

• Signs, Billboards, etc

When I have a complete block of apartments, I will definitely consider those permanent cute signs. So really I shouldn't be mentioning this at all. Just thought it may give you an idea.

As you may have gathered, I have no property manager for this property. But I have one for some property, depending on the condition I was in when I was marketing it. I hire a property manager when I am busy or traveling. And I love working with my long term manager.

I would love to hear your views on how to market a property for rent, and what has worked for you.
Move from how to Market a Property to Preparing a Property for Rent.

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Dealing with a Vacancy and Late Rent Payments

One of the townhouses

Dealing with a vacancy is less frustrating than dealing with late rent payments in my opinion. Vacancies are inevitable and contracts makes it easier for them to be predictable. On the other hand, late payments are the evils that we should try to avoid at all costs. I have one tenant who is developing a habit of paying the rent late. It started with 10 days and then 15 days with R450 shortage. I must say that, I have now set precedence by accepting the 10 days with no consequences. Tough!


How to Avoid the Late Rent Payments
Getting the best tenant is key when managing your own property. So avoiding any kinds of tenant - landlord discrepancies start with the screening. The advertising should obviously be done properly, in the right form of media. But the real work begins with  the screening of the potential tenants. Get the credit history right or hire someone who can do that for you. No cutting corners. Credit worthy tenants, take care of their finances, and should take care of their spaces too, Right! Not necessarily, but I would still trust someone who takes care of their money, to take care of my property, to pay rent on time and to want stability...thus staying for a longer period than most.

Well, if the tenant who had a promising financial record and had you fight for her/him to get the place rewards you with a late payment, just make sure it happens once ONLY. Stick to the contract and its contents. I know, its not easy, but its the right way to do it. If the contract has an "interest on late rental" clause; implement it fully from the very first breach.

Yes I know, I never did that when my tenant paid late the first time. I thought of the relationship that we have, how I wouldn't want sourness and the daunting task of getting a new tenant. So the tenant did it again. I am now expecting this and will have my Emergency Fund waiting for the third time it happens.

The beauty with this is that I've learned a valuable lesson that I am so human and not as much of a business person as I'd like to think I am.

Dealing with a Property Vacancy
I actually am having a tenant serving a notice for September to leave by the end of the month. The one month notice is meant for me to get a replacement as quick as I can. At least that's what I am trying to do.The tricky part is showing the prospective tenants a place with the notice tenant. I have to work around her schedule. I cant go and show as I please but only in the evenings. The prayer is that the great tenant I get should be free at the same time the notice tenant and I are available.Eeeeessshhh.

Anyway, as a landlord, one should be having the savings to cover the costs during the vacancy periods. A few posts ago I was talking about how I need an emergency fund. I have savings that are not titled EF and mixed with family funds. I so pray that I don't get to use anymore of the family savings than I already have because of this vacancy.
I always choose to collect slightly lower than market rate rentals than deal with a vacancy for the following reasons:

• That way I miss out on R100 per month, instead of R5000 per month over a few months of the vacancy.
• My property has someone in it and not at a risk of being vandalized.
• I have peace of mind knowing that the rates and taxes are covered even if my net worth is growing slower. R200 or R100 in some cases would build up.
• Psychologically I feel all together and efficient that I have no vacancies. Some ego boost.

The best way in dealing with a vacancy and late rent payments is avoiding them. I haven't had more than two weeks of vacancy since I started in the business. I must give credit to better economic times in general.

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