Property Management Blog

How to Retain Long-Term Renters

Pinnacle Property Management - Wednesday, October 14, 2020

When having a successful rental business, it’s crucial to find the right tenants. Good tenants always pay rent on time. They also take the initiative to contact you when necessary and are considerate in the treatment of your property. When you find a good tenant, it’s best to retain them long-term.

What are the benefits of having long-term tenants? 

  • Unit turnover and property maintenance expenses are lower 

  • Time and money saved by not needing ads and prospective tenant screenings 

  • Peace of mind in knowing your tenant for quite some time

  • Best of all, you're able to enjoy a regular rental income

High unit turnover is very costly for landlords. Most of the time, tenants move because they find a more affordable property in the same location. Others relocate because of work requirements, or when they find good schools for their kids elsewhere. The tenant's reasons are often beyond the landlord's control.  

But there are still some things you can do to find and retain good tenants. In this article, you will learn useful tips on how to achieve this.

How to Attract Long-Term Tenants

1. Offer a Reasonable Rental Price

Finding the best rental deal is often the priority for tenants. Properties largely being advertised online mean that many options are accessible to them. As such, competition is high to find tenants for properties. Setting your rental property at a reasonable price will attract more prospective tenants than nearby competitors. 

2. Make a Good First Impression with Tenants

First impressions are vital in finding a long-term tenant. To make a good impression, treat all potential tenants with respect. Being polite and courteous makes a big difference. By doing this, you’ll show your tenant that you're professional and approachable. 

3. Keep the Property in Top Condition 

Potential tenants are looking for a well-maintained property that they can call home. By keeping your property in top condition, you'll be able to attract more tenants. You don't have to spend a huge amount to improve your property's look either. There are a few simple things you can do to make your property more attractive:

  • Repaint your property with attractive colors

  • Invest in a new kitchen countertop and floorings

  • Have your property professionally cleaned

  • Update the cabinets and other built-in furniture

  • Include essential appliances like washer and dryer

4. Provide Essential Amenities

By researching trends in amenities most tenants want, you’ll find the best options to make your rental property appealing. You don’t need to install all of them, but it will help if you provide some amenities that tenants prioritized. The type of amenities often depends on the age and lifestyle of the tenant. For example, most tenants look for a property with high-speed internet. They also want a unit with soundproof walls, appliances, large walk-in closet, and a balcony.

5. Screen Potential Tenants

It’s essential to know if prospective tenants plan to stay long-term when screening them. Asking lifestyle questions when you interview potential tenants can help determine this. For example, tenants with kids tend to lease long-term more often than single tenants.

How to Retain Long-Term Tenants

Once you’ve found a good tenant, you need to put in the effort to retain them long-term. You can follow these tips to best achieve that: 

1. Regularly Upgrade your Property

All properties show signs of wear and tear after some time. One way to upgrade your property is by adding fresh paint. You can also consider replacing the backyard’s old fences. If you regularly upgrade your property, your tenants will be appreciative. Tenants who feel looked after will be encouraged to stay long-term. 

2. Allow Your Tenant to Make Changes to the Property

Allowing tenants to customize the property’s interior will make them much happier. These changes don’t have to be major. You can allow them to make alterations as long as it won’t cause long-term property damage. For example, you can let your tenants change wallpapers or create a small outdoor garden. If they're allowed to personalize the property, they will be encouraged to stay long-term.

3. Encourage Tenants to Have Extended Lease Terms

Providing a reduced rate can encourage tenants to sign a long-term lease. For example, if your tenant renews yearly, you can ask them to extend it to two years at a lower rate. It's a win-win situation for you and your tenant. The reduced rate can be an incentive for them while you receive a guaranteed rental income.

4. Promptly Respond to Requests

Responding promptly to your tenants’ property maintenance requests encourages tenants to stay long-term. Aim to respond to your tenant's requests within one business day. However, there are some requests that you need to address immediately. Examples of these requests are broken bathroom fixtures or busted electrical wiring. Your tenant will feel valued if you’re quick to take care of them.

5. Explain the Contract to Your Tenant

Meet with your new tenant and go over the contract together. The tenant will appreciate you answering their questions quickly, should they have any. By doing this, you can also verify that the tenant understands the leasing terms and conditions. Whenever you make changes to the contract, you should discuss it with your tenant in person.

6. Take the Initiative in Lease Renewals

Remind your tenant at least 90 days in advance when their lease contract is about to end. If you do this, you will know your tenant’s plans and listen to concerns they may have. It would also give you enough time to find a new tenant if they decide to move out.  

7. Ensure the Safety of Your Tenant

Tenants prioritize finding a property that is secure. They won't stay in a place where they don't feel safe. Because of this, you need to make your tenant's safety your main priority. For example, you can change locks, install security cameras and provide outdoor lighting.

Taking action will help you to attract and retain long-term tenants. Ultimately, having long-term tenants provide many benefits such as being able to save on costs and have regular rental income.

How to Increase Your Income Without Raising Rent

Pinnacle Property Management - Tuesday, September 1, 2020

how to increase your income without raising rent

Do you want to boost your rental income?

You can get more creative than raising the rent! Sudden hikes in rent may be illegal in your area. Even if it's allowed, doing so multiple times may result in a higher tenant turnover rate as well.

Having an entrepreneurial mindset is useful for landlords. It’s possible to make more money without touching the monthly rent amount. Stay open-minded, and you’ll find exciting ways to create additional streams of income.

In this article, we're going to list the top ways you can increase your rental income without having to make changes to the rent payments. Try these approaches and see if they're a good fit for your financial goals.

1. Put Home-Sharing Platforms to Good Use

Empty rental units generate running expenses while providing zero income. Fortunately, you can use home-sharing platforms like VRBO and Airbnb to rent out your unit between tenants.

A great thing about these platforms is that you can tap into the market for holiday and short-term business rentals. The cost per night can be much higher compared to having regular tenants in your property.

2. Provide Space for a Cell Phone Tower

Did you know that you can earn extra money by leasing out space for erecting a cell phone tower? The average rent amount you can ask for this varies between $1,200 to $1,500. In some areas, the income could be even higher.

make space for a cell phone tower for extra income

Significant figures are getting paid to landlords who lease space to telecommunication companies or other institutions. Just keep in mind that having a cell phone tower next to your rental unit could affect its perceived value.

3. Install a Vending Machine

Add an automated vending machine to the common area of your rental property. Storage or laundry rooms work great too. Make sure it carries basic conveniences like snacks, toiletries, sodas and sports drinks.

Brand new machines are expensive. However, you can always purchase a used vending machine. Buy the items in bulk and charge up to 50% more than what you bought them for.

Decent traffic around the vending machine can lead to enjoying a decent income stream. Once everything is up and running, ask people for feedback. Maybe you missed some of the desired products that could sell like crazy.

4. Enforce Strict Late Fees

The enforcement of strict late fees prevents the situation from causing you to leave money on the table. Ideally, your tenants won’t delay their rent payments. Though, if it does happen, collecting the associated fees is an extra income on top of the monthly rent.

5. Get Solar Panels

Installing solar panels to your rental property creates numerous ways you can earn additional income.

  • You can sell excess energy to a company that agrees to pay for it.
  • You can charge your tenant for using the solar-powered electricity.

Check with your local institutions to see if the installation of solar panels entitles you to any financial benefits.

6. Charge Pet Fees

The majority of households in the U.S. have pets. When you haven't designated your rental unit as pet-friendly, you miss out on additional income. Allow pets on the premises to open new ways of making money.

rent to pet-owners to charge pet fees

Pet fee and pet rent are two of the most common approaches. A pet fee is a one-time expense for your tenants. However, pet rent is usually a monthly fare. Additionally, you could offer dog walking services to your tenants.

7. Offer Storage Space

Rental properties often lack enough storage space. If your rental unit is different, take advantage of that unique opportunity. Put the attic or basement space into use for paid storage.

This is an especially lucrative option when you own a multi-family property. Your renters are likely to take up the offer regarding extra space to store their personal belongings. It’s even possible to provide some storage room for non-tenants.

8. Provide Paid Upgrades

Offering extra services could get you the desired additional income. Say you have a rental unit with a lawn. You can then maintain that lawn by providing lawn service to keep everything tidy.

Providing these services doesn’t mean that you have to do the hard work. Instead, you can charge the renters for finding and maintaining the relationship with a qualified professional. That could get you $10 or $20 on top of the monthly rent amount.

9. Rent Out Your Rental’s Garage

Limited parking space in your property's area creates new income opportunities. The particular amount you’ll get from this venture depends on where your property is situated. Expect extra income anywhere between $50 and $250.

10. Purchase a Laundry Machine

Get a coin-operated laundry machine if you have a condo or apartment complex. Some landlords have seen returns of about $750 to $1,500 when they respectively had three and six units in a building.

generate income by having a coin-operated laundry machine

However, you may not have a multi-unit property. In this case, you can provide a combination of washer and dryer amenities. Ask a monthly charge for this. You could get up to $350 per year for that set-up.

In a Nutshell: Increase Your Income Without Raising Rent

Being a successful landlord is all about growth. While most rental owners want to increase rent, you can explore other avenues for income boost as well.

Here are some of the top ways to increase your return on investment:

  • Offer storage space in the basement or attic
  • Enforce strict late fees whenever a tenant is late
  • Use home-sharing platforms during tenant turnovers
  • Install a coin-operated laundry machine in multi-unit buildings
  • Designate a pet-friendly rental and charge pet fees
  • Lease out space for a cell phone tower
  • Provide paid garage space for anyone in the area
  • Install solar panels and sell the generated energy

Should I Allow Tenants to Paint My Rental Property

Pinnacle Property Management - Monday, August 10, 2020

Have your tenants inquired about painting your rental?

As a landlord, it’s likely that you have opted for colors in your rental units that are as neutral as possible. Gray and white are common favorites among rental owners. Even though these colors are neutral, you may still encounter tenants who find these colors off-putting.

As a result, your tenants may propose to undertake a paint job in your rental property. In this article, we are going to take a closer look at what options you have in order to find a solution in these scenarios.


Should Your Allow Tenants to Paint Your Rental Property?

Your tenants may want to paint the walls by themselves instead of having you do the paint job for them. This means that all the expenses regarding tools and paint will be paid by your renter.

Now, if your renter asks you to paint the rental, you have three main responses that you can opt for:


1. NO – They Can’t Paint the Rental


You can always reserve your right to completely oppose your tenant’s idea. However, even though you are disapproving of their plans, you can do so in a friendly and polite manner. 

You can also offer other alternatives. For instance, you can propose that they install removable wallpaper, or “renter’s wallpaper.” 

In theory, this type of wallpaper should come off easily and leave behind zero marks. However, you must be careful. Sometimes, after stripping it from the walls, the renter’s wallpaper may still leave unsightly stains.

You want to make sure your renter buys high quality removable wallpaper.


2. YES – But There are Certain Conditions


You may allow your renter to paint the property under certain conditions.  

One of the basic conditions is agreeing on the colors beforehand. Otherwise, you could find your rental to be painted in a color that has no popular appeal. This outcome will likely lower your property’s value until it’s repainted again.

You are also able to set clear boundaries regarding the suitable rooms and areas of your rental property for painting. For example, you can tell your tenants that woodwork and natural stone are off-limits.

Another condition is charging your tenants a repainting fee. This fixed fee would pay for any costs that result from the painting job when their lease finishes. It’s important to check whether this fee is legal in your particular jurisdiction.


3. YES – They Can Paint the Rental


This is a simple way to move forward, but you should definitely weigh the pros and cons of saying yes. As already outlined, it pays to take a precautionary approach and set a few conditions for your rental’s repainting.

Saying yes doesn’t mean that you have to skip a discussion with your renter. You can still try to understand their plans and offer your personal opinions and preferences on how the final outcome should look.

Agreeing to the painting project does have its risks, but it comes with advantages as well. For instance, saying yes can foster a better long-term relationship with your tenant. When the market is tough, it makes perfect sense to focus on these aspects too.


Rules Surrounding Repainting the Property


As a rental property owner, you have to be ready for a variety of situations. You could find yourself being asked to repaint your entire rental or a part of it. The reasons behind this could range from dissatisfaction with the current colors to finding the paint too faded.

You are definitely not required to proceed with a painting job. At the same time, it’s smart to remember that your local area could have requirements for your rental’s paint job. For instance, there are localities in the States that require you to repaint the living quarters every five or seven years.

Similarly, there are rules and regulations in place that govern the tenant-landlord relationships when the paint in the property contains lead. In most cases, your renters can ask you to eliminate the paint that contains lead and repaint the walls.

These requirements are not based on aesthetics but on public health considerations instead. This means that when your tenants want the walls to be repainted based on aesthetic preferences, they are not going to have any legal justifications to back them up.

Sometimes these situations take a wrong turn. For example, you may discover that your tenants have painted the property without notifying you of the changes. In such a case, you are likely to have the right to deduct the paint removal and repainting costs from the security deposit.



In a Nutshell: Allowing Tenants to Paint My Property


When your tenants want to paint your property, you have three major options.

  • Allow them to paint the unit without conditions in order to foster a long-term relationship.
  • Let your tenants paint the property after disclosing a set of conditions.
  • Politely disagree with the idea so as not take any risks with the paint job’s quality.

For further inquiries, contact us today!

How to Write a Good Property Listing

Pinnacle Property Management - Tuesday, July 14, 2020

To attract the best quality tenants available, you need to grab their attention from the initial marketing of your rental property. By writing a good property listing, you can achieve this. It’s your first introduction to a prospect and therefore, your chance to impress your target market. 

This introduction should be done in a way that awakens their curiosity and makes them want to know more. Your property listing should lead them to schedule a property showing with you.

There are effective strategies that you can follow to help execute a great property listing. Here are some brilliant tips you can apply:


1. It’s all about the details.


Since a prospect has not seen the property up close yet, you must fill their imagination with rich details. An image is not sufficient to gauge a room’s air of space. You can then state the measurements of a room. 

Mention brands to provide concrete information and provide descriptions of amenities. Does your property include a pool, parking garage, garden, terrace or patio? Include these features and describe them using simple and detailed words. 

Talk about the proximity of the rental property to parks, schools, airports, transportation hubs, grocery stores, hospitals, malls, libraries and community centers. These are facilities a prospect notices and finds significant.


2. Communicate about features that make your property stand out from the rest.


This is where the power of observation comes in. Study your property and similar properties around the neighborhood. What features does your property have that others don’t? 

You should be able to find distinguishable traits from the others. What do you offer that’s an important consideration for a renter? Those features could even act as an extra source of income, benefiting you alongside your tenants.


Think about what your property offers in comparison to others


For example, if you have a large garden space then you can promote that. This will attract those who appreciate horticulture. You can make this one of your central selling points in your property listing to earn a wider pool of prospective renters.


3. Post listing online.


There are hundreds of property listing sites. Choose the most popular ones. Additionally, you can start accounts on different social platforms to expand your market reach. 

It’s easier to network online since you don’t have to travel far and some of your contacts can refer you to their contacts as well. Your priority is to be visible. It’s easier to connect and develop an awareness of your rental property when it can be seen online.

People want more convenience now, so digital marketing is a preferred method. It’s also easier to track inquiries, provide feedback and get in touch online. 

It's also important to monitor your accounts. You don’t want potential renters to get frustrated because your response is too slow. Furthermore, you want to keep their contact information in case you can help them find other properties for which they may be looking.


4. Quality images draw the eye.


In a property listing, the attached photos should look professional and attractive. Before scanning for more information about a rental property, a prospect initially browses for pictures. 

If one catches their eye, that’s the time they’ll pause to take in more text details. So, the power of a quality photo should never be discounted. 

Before you take a photo, make sure there’s good lighting and the surroundings are pristine. If need be, schedule a professional cleaning service beforehand. 


Possibly schedule a cleaning before shooting the property


Your photos should include details of the features stated in your property listing. Use the proper lens and professional camera equipment to capture the best angles for your photographs.


5. Avoid exaggeration.


Even if you’re tempted to use exaggerated language, resist the urge. It might draw interest initially, but then turn people off. Level the expectations and avoid over-promising.

Use simple words and be wary of using cliché phrases. Some of these are “within walking distance”, “state-of-the-art”, “near transport” and other vague descriptions. 

Strive to use accurate measurements. How near is the property in terms of kilometers? Walking distance is subjective for most people who have different paces in walking. 

Include brands, furnishings and what kind of facilities you offer instead of simply resorting to saying, "state-of-the-art." This paints a clearer picture for the prospective tenant.


6. Don’t forget to proofread.


Review your property listing. A good photo is not enough. Your words have to be grammar-free using a friendly professional tone. 

Read your copy over and over again and note if it sounds natural. Weed out words that are ineffective, superfluous and too complicated sounding. 

Check for spelling errors that might alter the ad and make your copy humorous. You don’t want that kind of embarrassment and sloppy unprofessional message. 

Also, review the Fair Housing Act and make sure that there are no discriminating words included in your property listing. This can attract negative feedback. You can also ask an editor to review your market listing before posting it to a public platform.


7. Exercise transparency.


On the property listing, be truthful when it comes to fees. A prospect will be able to gauge if he can afford the rent and extra charges. This saves a lot of time, rather than keeping it hidden and letting a prospect know during the property showing. 

Be transparent about rent cost and fees

Being transparent opens the door for a great rapport at the start. Some renters only have a specific budget for renting and are not willing to go above for any extra fees. 


Bottom line


Creating a good property listing is the first step towards effectively marketing your rental unit. Make sure it emits honesty, detailed presentation and careful review. Take advantage of online marketing and maximize your exposure opportunities by using professional images, accompanied by well-crafted, descriptive texts.

If you need an excellent property manager with a long-term experience to market your vacant property, contact Pinnacle Property Management. With over 3 decades of experience, you can trust their expertise. Visit their website, https://www.pinnaclepmc.com or call them at (310) 530-0606. You can also email them at pinnacle@pinnaclepmc.com.

Tips to Prevent Tenant Damages

Pinnacle Property Management - Friday, June 5, 2020


As a property owner, you want to protect your investment and keep it damage-free. That said, property damages caused by negligent tenants are a common scenario. 

Floor scratches and marks, broken furniture, gaping holes in the walls and chipped wood are all common examples of damages you may experience in your rental property. As a result, you will have to spend a lot of money to get everything repaired. 

In this article, Pinnacle Property Management will provide you with solid ways to prevent tenant damages.

1. Be Cautious when Screening Tenants


Before accepting a tenant to fill your units, check with previous landlord for references. 

Here are some of the questions you can consider asking:

  • Has the tenant damaged the preview property? 
  • How was the condition of the previous rental unit when the tenant left?
  • Did the tenant get back the full refund of his security deposit? If not, why?
  • Does the tenant perform his property maintenance duties?

In asking these types of questions, you’ll be able to better determine whether your prospective tenants will cause damage to your units. 

Never let the immediate gratification of earning income right away lead you to skip necessary tenant background checking. Otherwise, you might suffer from the resulting stress of dealing with major damages to your property.


2. Create a Clear Leasing Agreement


If you outline the tenant’s duties and responsibilities in the lease agreement, they will be more accountable and more likely to follow the policies. 

Be clear and inform your tenants about your expectations in terms of the property’s maintenance. Outline what you permit, and what you discourage.  

Also, tell your tenants to report any property issues so that maintenance and repairs can be conducted right away. 

Make sure your tenants understand the repercussions if violations occur. 

signing lease


3. Have Thorough and Regular Inspections 


Before a tenant moves in, it’s best to document the property’s condition through photographs and videos. This is helpful to assess the extent of damages when a tenant moves out. 

In addition to the move in and move out inspections, you should also consistently monitor the property condition. In doing so, you will be able to notice any small damages and prevent them from getting bigger. 

Here are some areas that you should be regularly inspecting:

  • Roof
  • Gutters
  • Basement
  • Plumbing
  • Toilets


4. Collect a High Security Deposit 


A security deposit can act as a great incentive to help your property stay damage-free. 

By setting your security deposit too low, you’ll risk a tenant not caring about getting it back. Thus, it’ll be more likely that the renter is negligent in the property. 

However, if you set it high, a tenant will want to get his money back in full. This means that he will perform his responsibilities by reporting damages and taking care of the property. 


5. Implement a Long-Term Maintenance Plan


It’s best to design a strict schedule when it comes to maintenance and repair of your property. Not all tenants will report minor damages, and this will result in major damages long-term.  

Outline your inspection schedules. Consider various types of inspections including seasonal and annual inspections and drive by ones. Be consistent and exercise the same for all units, even if you have long-term tenants.

Preserving the value of your rental property needs consistent effort and evaluation. If you catch damages early, you’ll be able to improve the condition of your unit and lessen future maintenance expenses.


6. Be Conscious of the Presentation of your Home


As early as the tenant moves in, it’s advisable to set a good standard. Your rental unit must be neat, orderly and all things must function well. This will demonstrate your expectations for the unit’s presentation.

If you don’t present a clean and organized rental space, it sends a negative message to the tenants. It will make them feel that they don’t need to exert effort in keeping the rental unit well maintained. Therefore, it’s a good strategy to hire professional cleaners at least once a year for deep cleaning. 

living room presentation


Keeping the property clean is also important when photographing the space for property listings for new, potential tenants, which is covered here.

7. Cultivate a Good Relationship with your Tenants


Act professionally and establish a solid relationship with your tenants. You’ll find it much easier for them to adhere to the leasing conditions and house policies when they respect you.

Also, if they are comfortable with you, they’ll bring maintenance issues to your attention in a timely manner. Keeping your tenants happy is one of the crucial parts of preventing tenant damages. 


Bottom Line


As an overview, here are the main ways to prevent tenant damages:

  • Screen prospective tenants thoroughly.
  • Implement a clear lease agreement.
  • Regularly inspect the unit.
  • Collect a high security deposit. 
  • Schedule regular maintenance visits.
  • Set a good example.
  • Build a strong landlord-tenant relationship.

With these tips, your property will remain in good condition!


Best Practices for Landlords During the Coronavirus Pandemic

Pinnacle Property Management - Monday, May 4, 2020

Are you looking to improve your rental safety during the coronavirus outbreak?

As a rental property owner, it’s normal that you will face many difficulties during this pandemic. The outbreak of COVID-19 requires you to follow new laws and regulations, implement strict hygiene protocols, and increase ongoing communication with your tenants.

Regardless of your individualized circumstances, there are universal practices that landlords can use to stay safe during the coronavirus pandemic. In this article, we are listing the top ways you can continue to succeed as a property owner during this crisis. 


Provide First-Rate Communication

Quality communication is key anytime, but especially now during this pandemic. You want to be friendly, open, and proactive whenever you connect to your tenants online or offline.

Reach out to your tenants. Let them know that you will continue to deliver essential repairs and maintenance. Emphasize that you will offer support and assistance during this time.

Your renters will also likely be concerned about their safety and health. That’s why you should explain to them that you will take all the safety precautions to protect them against the virus.

Additionally, your tenants may feel stressed about potential emergency situations. Send out a clear message that you will quickly respond to any emergencies. Fires, serious gas leak, flooding or any other situation that puts your tenants at risk will be taken seriously and dealt with quickly. 

Finally, emphasize that you will always do your best to answer your renters' emails, messages and phone calls. Since the current times are full of confusion and doubt, it's important that you show your tenants you are there for them. This will also help foster a strong landlord-tenant relationship. 



Check for Changes in Laws & Regulations

The COVID-19 pandemic is updating and changing laws and regulations daily in order to reduce the social and economic consequences of the outbreak. You may find new stipulations or revisions on federal, state and local levels. Check with various official sources to obtain the latest information.

It’s important that you stay up to date with all the changes. You may also consider reviewing your lease agreement to ensure it complies with the new laws. 

If you’re worried about navigating this new territory, consider hiring a professional property management firm.


Be Vigilant about the Information You Encounter

When you are browsing the web for COVID-19 information, you'll find a lot of websites and social media channels sharing news and updates about the virus outbreak. However, not all of these media outlets are sharing quality content. 

You should avoid information if: 

  • You’re unable to verify their claims and information
  • Their findings feel too extreme
  • You’ve never heard about the blog or social media channel 

Sharing useful tips and relevant news with your tenants is a great idea, but make sure that it is coming from a credible source. 

Your best option is to consult and share information that comes from the authorities. Check with the Centers for Disease Control and Prevention (the CDC) and your local health organizations for new updates and guidelines. 


Create and Follow a Stringent Hygiene Protocol

Practice high standards of hygiene during the COVID-19 pandemic. Enforcing strict rules is the only viable way forward.

You should considering weighing the pros and cons of delivering non-essential maintenance and repairs. As long as you comply with the legal regulations, you may be allowed to conduct some of the services at a later date.

When you do enter your tenants' homes, make sure to disinfect and clean all surfaces using EPA-registered disinfectants. Surfaces can include light switches, tables, touch screens, keyboards, sinks, and remote controls.

In a rental unit, you should also always wear disposable gloves. Discard your pair of gloves after every procedure and upon entering a new rental unit. 

As for masks, these are only useful for caregivers and infected people, or for anyone who has reason to believe they are infected. However, the CDC has recommended that everyone is encouraged to wear cloth face coverings. These won't protect you from the virus, but they will prevent you from spreading COVID-19 should you be infected.



Finally, always wash your hands with water and soap for at least 20 seconds. This is one of the most effective ways of preventing the spread of COVID-19. Use hand sanitizers only if you have no water and soap available.


Frequently Go Over Your Plans

Resilience is the key to overcoming the COVID-19 pandemic. Adapt to the shifting circumstances in order to create stability in your own life and investments.

Definitely consider creating a contingency plan. Revisit your long-term strategies and build alternative future scenarios. As a property owner, you’ve already had to expect the unexpected - this is just another challenge in your list.


Consider a Professional Property Management to Help You

Self-managing is a difficult task during the COVID-19 pandemic. As a property owner, you have to deal with an ever-changing legal scenery, safety issues, and possible tenant financial troubles. 


Pinnacle Property Management can help you covers your rental property management needs. Our experience extends over 30 years. This means that we are an experienced, reliable, and knowledgeable partner to care for your property investments.

By partnering with us, you can enjoy a stress-free lifestyle. Contact us today to find out how you can benefit by working with us during the COVID-19 outbreak and beyond this critical period.

Should I Rent my Unit Furnished?

Pinnacle Property Management - Friday, April 3, 2020


To furnish or not to furnish? This may be the question you are asking yourself as a property owner. 


Here are some questions you should begin to consider: 

Do you want to make more money, or reduce the risk of tenant damage? Would you prefer offering your tenants convenience, or offering them flexibility? 


More importantly, based on your needs, your experience and your rental units’ target demographic, you must consider which path is best for your rental business. 


In this article, Pinnacle Property Management will lay out the advantages and disadvantages of furnishing a rental unit. You will then be able to be make the best decision for your business.



Pros of Renting a Furnished Property

1. You can charge a higher rent

Renters who are interested in furnished units are willing to pay higher rent. This is because they understand that they are not only paying for the space, but also for the furnishings and appliances that are included. Typically, the rent for a furnished property can be up to 40% higher than an unfurnished one. This difference can be as much as $400 a month in some locations. 


2. You will have more prospective tenants 

Furnished properties are in greater demand than unfurnished ones because renters want to keep their options open. Furnished units often attract young tenants and business workers who are constantly moving around. So, if an unfurnished property is vacant, it will likely stay on the market for longer than a furnished one.


3. You can charge a higher security deposit

Since the unit is filled with furnishings and appliances, you can charge a higher security deposit. This means that if the tenant causes damage to the property, or anything in it, you will have more money to spend on repairs. 


4. It is more convenient for the tenant 

For a renter, it is easier to move into a furnished property as all the furnishing and appliances are included. It saves the tenant the burden of having to find, purchase, transport and set up furniture. 



Cons of Renting a Furnished Property

1. It is expensive and risky

Furnishing a unit, depending on its size, can cost up to $10,000. In addition to the money, time and effort invested, every dollar spent represents an additional risk that the owner takes on. The possibility of damage is vastly increased when you furnish a unit. You must ensure that you are sufficiently covered by the rent, the security deposit and the lease agreement.


2. Renters are often short-term 

Furnished units often attract short-term renters. So, there will be a higher turnover rate. Here are some of the downsides that come with this:

  • There's a greater chance that your unit will be vacant, and a vacant unit means a loss in rental income.
  • You must spend more money on maintaining, preparing and cleaning the unit between tenants.
  • More money is spent on marketing the property after each tenant moves-out.


3. You need to spend additional money on storage

Sometimes, you won’t be able to keep the furniture in your rental unit. As a result, you’ll have to rent warehouse spaces and storage rooms to store the furnishings. This can be quite costly. Not to mention, moving furniture is not an easy task. 


4. Greater possibility for tenant damage 

If your rental property is furnished, the tenant doesn’t own the furnishings that are in it. And, as humans, we often take better care of our own possessions. So, tenants may be less careful with the belongings in the property. This means that there is a greater likelihood for severe wear and tear or tenant-caused damages.  



The Rule of Thumb

Here is a general guideline that you can use to help you decide whether or not you should furnish your rental unit:


Rent unfurnished if the properties are large:

  • Large properties target families and older renters who are usually established. These kinds of renters have typically accumulated many personal belongings over the years. People become attached to their possessions and are unlikely to give them up.
  • Also, families want the privilege of being able to design the space they live in. It gives them a sense of ownership and makes them feel more comfortable.


Rent furnished if the properties are small: 

  • Tenants who rent small spaces are usually at a transitory stage of life, such as younger individuals. They are likely to make life-changing decisions that will force them to move out. As a result, they don’t want to invest in furnishings that they can’t take with them. 
  • So, if your business model is to target short-term leases of 6 to 12 months, and your units are small, you should furnish them. 


Another option is to partly-furnish your unit:

  • This option offers the pros of both furnished and unfurnished units.
  • It offers the greatest flexibility because it allows you and the tenant to decide what furnishing should be included with the property.
  • Finally, with this option, the renters also get some freedom to customize the space as they want.

Top Tenant Complaints and How to Solve Them

Pinnacle Property Management - Tuesday, March 3, 2020

Most landlords have been tenants at one time or another. If you’ve never rented, maybe you’ve experienced life from the perspective of a tenant when you travel. Remembering what it feels like to be a renter is important in helping you provide the best service to your tenants as their landlord.


The key to keeping tenants happy is to put yourself in their shoes. Think about what would make you happy as a tenant. Doing this is not about being nice; it is good business sense. Putting yourself in your tenant's shoes means you’re putting your rental ahead of the competition. You will build your reputation as the local landlord that all tenants want. In this article, we examine the most common complaints from tenants and how you can resolve them.


Landlords who are never within reach.

Landlords who don’t answer the phone, return calls or reply to emails is top on the list of tenant complaints. All landlords are very communicative when looking for a new tenant. If you suddenly become difficult to reach after the tenant moves in, they will likely get frustrated at this. Your tenant may interpret this to mean that you only care about the money. It is discourteous and makes tenants feel insignificant. 


That being said, you may not intentionally miss your tenant's attempts to contact you. Maybe their call came at a time when you were busy. Whatever the reason, you should establish rules for how and when you should be contacted by your tenant when you sign the lease agreement. You should also give your tenant an alternative in case there is an emergency and you are not responding immediately. 


landlords never in reach

Indifference to maintenance requests.

Regardless of the cause or cost of damage, it is never a good idea to ignore a tenant's request for repairs. In the long run, this will cost you. Attending to maintenance requests promptly makes tenants happier and will save you money. Even when the requested repair is not your responsibility, it is still wise to respond. By paying attention to the issue and explaining why you cannot fix it, you keep the door open to future tenant requests, even if you cannot solve them all.


To ensure you can attend to the tenant's repair requests in a professional manner, you need to establish a maintenance system. You should have clear guidelines on how tenants should raise repair requests. You should ensure that requests are not left unattended longer than twenty-four hours. Guidelines give tenants confidence in the process; it is professional and shows that you do care. 

Uncertainty about the refund of the security deposit.

You should accept the security deposit with the intent to give it back to your tenant in full. The deposit serves as a check against irresponsible behavior. The hope of getting their money back is the tenant's incentive for being responsible. When a tenant feels they will not get their money back, they have no reason to keep your property in good shape. This may result in excessive damages to your property that you will have to repair. 


To reassure tenants that they will get all or part of their security deposit back, you need to be transparent about it. You should take a complete survey of the state of the property before tenant move-in, accompanied with photographs, and have the tenant sign it to ensure you’re in agreement.


security deposit refund clarity


You should do another survey of the property’s condition after the tenant moves out.  When it comes to returning the security deposit, you can use these two records to compare the state of your property and determine if you need to deduct from the deposit. Then you can forward this to the tenant so that they’re clear on the deduction process. 


Invasion of privacy. 

If you live in the same property as your tenant, they may feel like they are constantly under watch. This feeling is exacerbated if you have the tendency to interfere with the tenant’s lives. Even if you have the right to protect your investment, you cannot do this in violation of the tenant's privacy rights. 


You should take the time to draw up a comprehensive behavior code of behavior for you and your tenants. You should schedule any inspections or cleanings well in advance so that you can give occupants no less than 24-hours notice. This ensures that they do not feel that you are violating their privacy and personal space.


Failing to solve neighbor disturbances.

Other occupants of a building or neighbors in nearby properties can cause problems for your tenants. Neighbor disturbances can include loud parties, animal sounds, noisy quarrels, or cigarette smoke seeping into your property. If a neighbor causing the problem also your tenant, the problem is usually easier to solve. But if you have no legally-binding connection with the neighbor, there is not much that you can do.


To alleviate your tenant’s frustration, you can reduce outside noise by soundproofing your property, installing carpets, and planting additional noise-blocking shrubbery outside. In the case of cigarette smoke, you can block gaps to the outside between switches and other crevices. You can also report this to the homeowners association in the area if talking with the neighbor does not help solve the issue.


landlord solving neighbor disputes


Persistent pest infestations and issues.

Pest infestations are probably the worst complaint on this list. With other issues, tenants may still feel safe living in an apartment. When dealing with pests and rodents, however, some renters only feel if they vacate your property.


Don’t delay acting on this problem, even if you blame the tenant’s unsanitary conditions for it. Have an exterminator treat the property periodically. Also, make sure the lease agreement specifies the tenant's responsibility to maintain a minimum level of cleanliness.


Conclusion


In summary, you can solve most tenant concerns fairly easily so that they don’t develop into major issues. You must maintain basic rules to ensure that you keep a good relationship with your tenants. These include courtesy, attentiveness, responsiveness, and constancy. These will prevent small issues from degenerating into big problems that will result in lawsuits or the tenant leaving the property.

Tips to Find Great Tenants for Your Torrance, CA Property

Pinnacle Property Management - Thursday, January 30, 2020

Property investors in Torrance, CA face many challenges. 


One particularly difficult goal is finding quality tenants that pay and stay long-term. This is because lowering the turnover rate is necessary to get the best return on investment.


Empty rental units bring zero income, but simply filling the vacancies with random tenants may backfire sooner or later. Plus, failure to conduct proper tenant screening increases the risk of unknowingly signing a contract with problem renters.


In this article, we'll go over the top tips for finding great tenants for your Torrance rental property. 


Showcase high-resolution images

Many people looking for a home ignore ads that have low-quality photos. It's a knee-jerk reaction, because images with bad quality raise the following concerns:


  • Is the image low-quality on purpose? Maybe the owner is trying to hide something.

  • Does the lack of care in advertising reflect the owner's overall attitude and home maintenance?

  • Is there any point in visiting a property that you can't clearly envision beforehand?


Visual communication is an important part of advertising your property. Bad image quality raises serious doubts, making people less likely to come see your property.


You can hire the services of a professional, or use a high-resolution camera yourself. When taking pictures of the rental unit, refrain from using flash. Instead, let as much natural light enter the rooms as possible.


Sometimes, even the right angles and plenty of sunlight won't be enough to make the property look as good as possible. In this case, you can use a photo editing software to touch up your images. Many apps on the market today are intuitive and easy to use.


rental property Torrance



Maximize the potential of the internet

The internet is a great tool to spread the word about your Torrance rental property. You can upload information and photos of your place on various listing websites, such as Apartments.com, Craigslist, and Zillow.


Creating attractive listings on rental sites is great, but you shouldn't forget about the influence of social media. Use popular social media platforms to boost the online presence of your property.


Here are some practical ideas for social media marketing:


  • Join Facebook groups that gather local rental property offers.

  • Use paid social media advertising to reach the right people, if possible.

  • Create original and engaging posts that organically reach a lot of people.


social media marketing Torrance


Use a word-of-mouth approach

Online presence is important.  As you upload, post, and comment, however, there's something much easier that could have great results as well: spreading the word in your social circles is a powerful marketing tool.


In fact, many property owners forget how word-of-mouth marketing can work wonders. Your extended social network includes family, neighbors, friends, and acquaintances.


Let the people around you know that you are looking for a quality tenant. You may not have enough time to discuss the matter with everyone, so you can call some of the people in your circle instead.


You could make this approach even more efficient by setting a commission reward. By doing this, people will be more motivated to find you a great tenant. The commission could be a fixed amount or a percentage of the rent.




Provide plenty of details

Provide as many details as possible in your online listings, flyers, social media posts, and anywhere else. Take a look at the following recommendations on what to cover for maximizing your advertising:


  • What is the property's approximate location?

  • How many square feet is it?

  • How many bedrooms and bathrooms does the property have?

  • What is the monthly rent and price structure?

  • Is there a discount available for longer leases?

  • What is unique about this rental property? What sets it apart from the others?

  • How much storage space can a tenant expect to have?

  • What direction does the unit face?


Sharing many details raises interest in your Torrance property. Prospective tenants differ in their wants and needs. That's why it's a good idea to describe a lot of aspects about your property. 


tenants in Torrance California


The bottom line: Find Great Tenants for your Torrance, CA Property

Finding great tenants is a challenge for all property owners. Fortunately, there are some practical steps you can take to make the search easier. Here are the top tips for quickly filling an empty unit:


  • Utilize online marketing, including listing portals and social media.

  • Provide many details that pique interest and curiosity.

  • Tell your co-workers, friends, and family about your vacant property.

  • Use only high-quality images that bring out the best from your rental home.

What to Do With a Tenant's Possessions After an Eviction?

Pinnacle Property Management - Thursday, January 9, 2020

tenant-eviction-possessions

As a landlord in Torrance, California, it is important that you have a tenant screening process. It is not all too uncommon that even great tenants can struggle with their rent payments.

In such cases, as a landlord, you also need to consider your bottom line. Tenants should not be allowed to live in a property with several arrears. There will be scenarios where they will need to be evicted.

There are times that an eviction can be as simple as asking your tenants to leave. Other times, the process has to go through the formal eviction process and can take anywhere from a couple of months to a year.

Once the eviction process has been fully implemented and the tenant leaves your property, the question now becomes what happens to their possessions after an eviction?

After the landlord has acquired an order from the judge, the sheriff can now evict the tenant from the property. Note that it is only the sheriff that can do this. When this occurs, the tenant is required to leave the property immediately and cannot take any personal property with them.

In most cases, the tenants are given 72 hours to return to the property to get all their personal belongings. The landlord can choose to extend this amount of time.

clock-time

If the renter is unable to remove their belongings within the agreed-upon time, then the landlord now has the legal right to dispose of their things.


What to Do With a Tenant’s Possessions After an Eviction?

We at Pinnacle Property Management, have outlined exactly what happens to a tenant’s belongings after an eviction and the process they need to follow:


1. Contact the tenant 

Regardless of how the tenant left the property, as a landlord, it is also your duty to do due diligence and contact the tenant.

There must be a reasonable effort to get in touch with the client by sending multiple written notices of their abandoned belongings. These notices must include the inventory and itemized list, deadline for claiming, location of the stored property and any charges, details on disposal of the abandoned property if left unclaimed.


2. Inspect their belongings

Your tenants may have left different types of things behind. Upon inspection, you may throw away any garbage. For any fixtures that the tenant has installed, they become part of the property and do not need to be returned.

You will have to follow a due process, and possibly get the local government involved depending on the total value of the abandoned property.

If they left behind a car or any type of motor vehicle whether operational or not, will be handled by your local police. Coordinate with them regarding the details of the vehicle such as its license plate and parking location. They will determine whether it has been abandoned and will have it towed.

parking-towing-tenants

Once you have inspected what belongings they have left behind, create an inventory with descriptions of their state. It is better to document everything with pictures and videos to protect yourself from any possible liabilities.


3. Store these items securely

As a landlord, you are not required to keep their belongings. This is especially true if you are getting it ready for another tenant. You are, however, required to store them safely.

Track down any expenses incurred during removal and storage so that it can be added against the tenant’s security deposit or from the proceeds if these belongings are sold.


4. Dealing with the items

If the tenant claims the property within the determined timeframe, it will need to be available to retrieve them at a reasonable time. Landlords have a specific time to return belongings once the tenants claim them. For example, small items such as clothes, appliances, electronics, and personal items should be returned within 72 hours. For larger items such as furniture, the landlord and tenant should agree when they can be claimed.

The costs for removal and storage should already be determined before the tenants retrieve their belongings. This can be paid by the tenant or deducted from the security deposit.

If the tenant does not claim their belongings after the specific time frame and does not respond to the notices sent, the landlord can then make arrangements to dispose of the property. This can be done either through a public or private auction. The landlord also has the option to donate it or keep it in the unit for the next tenant to use.

calendar-donate-pig

You can keep a reasonable amount from the sale of the belongings to cover expenses incurred such as sending of notices, removal, and storage fees. 


The Bottom Line

One of the inconveniences of being a landlord is having to deal with evictions and all the events the come after such as dealing with tenant’s belongings. The landlord cannot just simply throw things out or sell them.

By following these steps when it comes to dealing with an evicted tenant’s belongings, you will save yourself from any legal disputes and future inconveniences.



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Pinnacle Property Management
CA BRE # 01905815
22700 Crenshaw Blvd.
Torrance, CA 90505
Ph: (310) 530-0606
Fax: (310) 626-9786
Email: pinnacle@pinnaclepmc.com

We are open from 8:30am to 5:00pm M-F.

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