When Should I do a Rent Increase?

When Should I do a Rent Increase?

If you ask your tenants when it would be a good time to increase the rent, they are likely to tell you there is not a good time. That is understandable. What would you tell the guy at the corner petrol station if he asked when would be a good time to raise the price of filling your tank?

There is no magic time of year to increase the rent that your tenants will be happy with. So you might ask “When should i do a rent increase?” No matter when you send the notice, there is always a possibility they could look at moving out. However the trick is minimise that possibility as much as you can, and I’ll tell you how..

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How to Turn Down a Tenant Application

How to Turn Down a Tenant Application

Rejection stinks. It is no fun to be rejected, and it’s not much better to give a rejection. Unfortunately, if you have more than one application for your rental property (and hopefully there are several), someone will have to miss out.

We tend to focus on selecting the right tenants, so we forget the effort that a tenant puts into making a good application. As the owner, it is up to you to get the best tenants you can, even if you have to break someone’s heart.

Ignoring a Rejected Tenant Application can Lead to Trouble

Rather than facing those you don’t want living in your property, some agents choose to ignore the tenants which they cannot accept. That is not good enough. Especially when you consider that coming out for an inspection and completing a tenant application requires a good deal of effort. Some prospective tenants take it as a personal insult when their application is not accepted.

Personally informing the tenants that you are forced to turn them down shows a lot of class and its actually very simple if you know how. The trick is to get it done quickly with little fuss. Let me show you how…

Change the Heading in your Ad to UNDER APPLICATION

The most important reason for this step is to save you from getting calls for a house that is essentially off the market. Yes, removing your ad does the same thing, but UNDER APPLICATION keeps the ad active in case your tenant falls through at the last minute.

However, it does not save you from those disturbing calls from applicants who have not seen the updated ad. The best way to avoid that is to beat them to it!

Get in First and Make the Call

Contacting applicants before they contact you is a magical tactic. The magic is that they are not prepared for the encounter, but you are. This gives you the opportunity to be direct and to the point (but not short or rude, obviously). Then you can get off the phone before they have time to think it through enough to ask questions.

Here’s a basic script I’ve used to get in and get out quick. Let’s pretend the tenants name is Hannah.

“Michael: Hi Hannah, its Michael, how are you?

Hannah: Hey Michael, great how are you?

Michael: Not to bad thank you, I’ve been really busy with all the applications.

I just wanted to let you know that unfortunately you have not been accepted for the property.

We had quite a few applications and they were all really good. However, do you mind if I call you back if the application falls through?

Hannah: Yes please thank you.

Michael: Thanks for your understanding Hannah. Good luck. Bye.”

Sometimes the unsuccessful applicant will be on their toes enough to question why you did not accept them before you say “Thanks for your understanding”. Have a good answer ready: “To be honest there was no particular reason, it was very close even after we went through all the applications”.

My friend Rhonda has a slick solution when she has someone asking why their tenant application was not accepted. She says that there were a lot of great applicants, but in the end her husband had to make a decision!

The Easy Way Out

The problem with calling is that you cannot really script the call; they always go differently than expected. However, an email always goes according to the script. If you send the email out in bulk to all your applicants, be sure to use the “bcc” (email sender option) so the applicants do not see each other’s email addresses.

Here is a sample format for your email:

Hi,

Thank you for taking the time to apply for my property at 123 StreetName Drive.

After carefully reviewing all the applications, I am sorry to inform you that we have decided to go with another application. Your application was very much appreciated, and if the approved application falls through I hope you don’t mind if I get in contact with you.

Thanks again for your application and good luck in your search.

All the best,

Rules to Remember

  • Even if you have a specific reason to reject an application, do not reveal it. You will just open a can of worms.

  • Keep your contact short and sweet.

  • Get in first and don’t give them an opportunity to come back asking questions.

The more applications you have, the better chance you have of selecting the best tenant.

Beginner’s Guide to Renting Out Your Property

Beginner's Guide to Renting Out Your Property

My friend Kylie is a busy lady. Between a successful career and a growing family she barely has time for herself, let alone friends. So I was surprised and pleased the other day when she called to invite me for a coffee.

She and her husband Tom recently bought a second house as their first investment property. Now they are ready to see some return on their investment, so she came to me looking for some guidance for self managing their property.

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How to Write a Property Description that Attracts More Tenants

How to Write a Property Description that Attracts More Tenants

Warning: This next statement may disturb some readers.

Over the past month I have been tracking the performance of 20 properties on realestate.com.au. Those properties were viewed 19,726 times. From those views came 420 enquiries. That works out to just one enquiry for every 47 views.

Ok sure, some of them would have been the same people going back for a second look but for arguments sake it took 30 different people to click into the property for 1 enquiry. This means 29 out of 30 people read the descriptions and decided that the property wasn’t right. So, if they are clicking and reading the ad, why aren’t they making enquiries?

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Photography Tips for Rental Properties

Photography Tips for Rental Properties

Your mission when you are taking photos of your rental property is to get as many good pictures as you can.

Getting the best pictures of your property is not hard, but it will take some effort and technique.

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What to do if you can’t find a tenant

What to do if you can’t find a tenant

A rental property without tenants is worse than frustrating. For the owner, it means that money is going out instead of coming in.

The first two weeks that your property is on the rental market is critical. This is when the property seems the freshest and most attractive. Like any marketing exercise, you want to present the freshest merchandise you can.

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Sharpening Your Edge: The Ninja Tenant Screening Process

Sharpening Your Edge: The Ninja Tenant Screening Process

You have got your property on the rental market. A number of potential tenants have toured the place and you have a nice selection of applications to choose from. Using the principles you learned from my Ninja Guide To The Tenant Screening Process, the pile is divided into “potentially great tenants” and “people you want nowhere near your property”. Of all the potentially great tenants, you can only choose one. For the sake of your sanity as a property owner, choosing the correct one is vitally important.

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The Ninja Guide to the Tenant Screening Process

The Ninja Guide to the Tenant Screening Process

What in the world is a Ninja Guide? Coined by President and CEO of Consumer Electronics Association (CEA), Gary Shapiro, the Ninja Guide is a metaphor Shapiro uses to demonstrate how to create a ‘killer strategy’. It is defined by clear goals, flexibility, focus on competition and innovative thinking.

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Capital growth vs Rental returns

Capital growth vs Rental returns

Chances are you have scanned dozens of articles online about real estate investing and found the same highly debatable question raised in each – Is it better to invest in a property for capital growth or rental returns? Instead of giving you a ton of confusing formulas, I’d like to take you on a journey of two investors – one seeking capital gains and the other rental returns and what a real world outcome would be so you can decide which strategy is ultimately the best.

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Calling All Property Owners… How to Get Your Tenants to Pay Rent ON TIME

Calling All Property Owners… How to Get Your Tenants to Pay Rent ON TIME

A common problem for property owners is getting their tenants to pay on time.  Although during the course of the tenancy your tenant may face unexpected financial difficulties that may cause them to fall behind on their rent, the following tips I have found are proven, effective methods to make it easier to get your tenants to pay on time.

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