CategoriesLong Term Rentals

How Gen Z & Millenials Are Changing The Rental Industry

Millenials & Generation Z are bringing a wave of change to our lives.  From how they earn their money, to the places they work, to where they lay their heads at night.  As landlords we have to be ready for the massive shift our industry will be seeing in the next 7 years. 

They Want To Be Mobile

They want to be want to be mobile.  They don’t want to be tied to a mortgage, or even a year long lease in most cases.  It is the still accepted in the millennial community that the initial term of a standard lease is 1 year.  However the days of being able to leverage a year long renewal are fading. After the initial term (if they haven’t decided to move yet) M’s want the option to move freely with limited notice.  It’s not necessarily because they are indecisive or fly by the seat of the pants. They want to enjoy the opportunities and freedoms other generations only dreamed of or thought were absurd.

They Are Increasingly Self-Employed.

M’s & Z’s will have the highest percentage of self-employed under the age of 40 that has even been seen. Instagram, Youtube, Snapchat and the likes have created a billion dollar industry of potential income for those willing to push and make the effort (these people are called creators). In high population markets its not unrealistic to receive an application where the employment is listed as “Youtuber” .   It’s also common for creators to have their creation content as a income source in conjunction with a low stress flexible job like store clerk or wait staff. It doesn’t mean they aren’t stable or responsible or trustworthy. In fact what better way to handle your finances they find an income source you control and supplement it with a w-2 job just in case. They seems highly responsible if you think about it in those terms.   

Less Stuff.

These generations value experiences over items. They scrimp and save for experiences rather than making retail purchases  They’d rather drop money on food or live entertainment than a 6th pair of Nikes. They also do not create large emotional attachment to items that we saw in the Baby Boomers and Generation X.  Items are items. Their memories come from senses and their mind not the items. Packing their apartments doesn’t take an army. Usually just 30 boxes, a small uhaul, 2 friends, and 3 pizzas.

Internet is King. Convenience is Queen.

If it can be done on the internet, they will do it.  If they can’t, they very likely won’t. This isn’t to say they are going to become hermits.  If they can’t pay their bill online, you don’t exist. If they can’t schedule a viewing online, they will find a landlord who offers that.  If you’re listing says to call, they won’t. Why are they like this? Convenience. They don’t want to waste time playing phone tag, mailing a payment, or driving somewhere to get something.  They know time is a finite resource and don’t want waste it on certain things.

In the next blog we’ll take a look at specifically what changes the industry can expect as a result of the new generations. Changes are coming. Are you prepared?

CategoriesLong Term Rentals

The Quandary of Lease Lengths

Recently a client of mine asked for clarification of what our company policy was regarding lease renewals.  They were curious if we permitted (or even required) tenants to default to month to month after the original term was up.  Since we had no clear cut policy across the board yet for renewals I posed this question to my war council (a.k.a. my staff) and I was surprised at the differing opinions that existed on the subject.  Not only individual staff members but by property type. It’s a very passionate topic!

As a landlord I’ve normally preferred my tenants to default to month to month unless I’m really in love with them…in every fashion.  If you pay rent on time every month (and it doesn’t bounce!), I never hear a peep from you (or about you), and I believe you take good care of the place then I might offer you a full term.  As you can imagine based on my rather lofty criteria there, I don’t extend many year renewals. I generally prefer to hold the sword in my hand…and a 30 Day Non Renewal in the other.

The Disadvantages Of Freedom

This does have its disadvantages though.  For one, it leaves you slightly vulnerable at the same time  Though happy people (and tenants) are slow to move that doesn’t mean they won’t….especially if they have the freedom.  I’ve had some happy tenants stay month to month for up to three years and others that got the sweet smell of freedom and found a rosier garden within a few months.  If you are one to create budgets for your rentals, it makes it difficult to be confident in your income projection when you have ¼ or more of your residents on a month to month renewal.  When the confidence in your budget begins to slip it just snow balls from there. The budget becomes a guideline…then it becomes advice…then it becomes…scratch paper.

What Does Your Portfolio Have To Do With It?

You can probably think of the advantages of month to month on your own.  Some of them being legitimate..others rather Scrooge McDuck based. Should your approach be based on your portfolio?  If you have a smaller portfolio of 4 units, should you forgo the freedom of month to month in favor of some sort of term leases, even if they are 3 or 6 month? Possibly, what kind of position would be in if suddenly 2  of your month to month left in the same month?

Yet I think this varies more based on the types of properties that make up your portfolio.  Paying the mortgages on 4 single family homes with 2 month to month is much more daunting than paying the mortgage on 1 quad or two duplexes with the same month to month tenancy.  If your portfolio is of modest size perhaps it is best to consider the types of property that make up your portfolio when deciding your renewal policy. If your portfolio is larger, you have a little more freedom…maybe.  This is assuming your portfolio isn’t 50 single family homes….which is another blog in itself.

Bonus tip: If you own a commercial property (generally 5 or more units) and want to refinance, keep as many residents on term leases as you can.  Banks love the certainty of guaranteed income…on paper. As landlords we know better than to call that guaranteed income…

CategoriesLong Term Rentals

A Premier On Leases

Rental Investment Owners are constantly asking questions about lease documents.  Next to support animals it is the most frequently questioned aspect of being a landlord.  Below is a list of questions that have been splattered across rental investment boards from landlords everywhere.

How much should I include in my lease beyond the normal terms?

There is no perfect length for a lease.  Some landlords believe that too long of leases leads to tenants who don’t actively read them and are therefore ill-informed of the rules.  Others use the strategy of putting everything in writing you plan on enforcing and creating long leases in the process. They prefer being able to stand up in court and say with certainty their lease covers the supposed violation in direct language. You need to pick the length that works for you.

I see some leases that are one document and others that are multiple addendum. Which is better?

This again comes down to a matter of preference.  Some landlords and property managers find leases that are just one document too cumbersome and difficult to follow.  Therefore they create these common addendum to cover additional items: rules and regulations, pet policy, repair and maintenance charges, parking rules, washer/dryer agreement, etc.  The down side to this strategy is that you use more paper and it also requires a lot more signatures and dates.

Note: In Wisconsin you need to include a Non-Standard Provisions as required by state law.

Can I get by purchasing bulk lease products from online vendors?

Can you get by? Yes. Is it smart? No. It’s not smart because your state may have additional clauses that are required in every lease. If you buy a premade lease packet it’s likely not tailored for any particular state regulations.  Some vendors are tailored for specific states, others advertise attorney approved leases for every state, and others are simply generic. Buy with caution and read the leases before you purchase. Make sure there aren’t clauses that aren’t illegal in your state.

Do I need to have my tenants sign every sheet? Do I need to sign everything?

Simple answer: Yes.   Long answer: Anything paper that has rules on it  that you plan on putting in front of a judge should be signed by everyone. Those renting and the landlord or property manager (broker).    

Do I need to have children on the lease?

It is your preference whether you list children on leases.  However don’t be surprised if a resident comes and requests a copy of a lease with their children’s’ names because it is sometimes required for school registration  Remember you can’t enter into a legally binding contract with a minor so be cautious with where you place their names. Most attorneys don’t recommend listing them under “tenants” and suggest using terminology like “additional occupants.

CategoriesLong Term Rentals

30 Minute Insurance Audit

When was last time you evaluated your insurance policy?  I mean seriously evaluate it. Not just question your premium if it happens to go up.  Do you file your annual policy statements without a glance? I mean you didn’t ask for any changes so why look right? Wrong. Do you know for sure what coverage you have? Do you have the riders you need? When was the last time you evaluated your deductible?  Most of us probably have scary answers to those questions. Below is a 30 minute guide to do an insurance check up. (I tested this on my policies then also asked some of my owners to participate to be sure my claim of 30 minutes was correct.) First, grab a notebook and label it Insurance Action Items at the top then grab your policy statements.

What type of policy is it?

If you are renting out SFR, first be sure your policy is a dwelling policy (also called tenant dwelling policy).  A homeowner’s policy will be invalidated if there is ever a claim and the insurance company finds out you were using it as a rental property.

Evaluate your deductible.

Do you even remember what deductible you picked when you signed up for the insurance?  When you see the deductible is your reaction relief or terror? If it’s terror or nervousness write “talk to agent about deductible” on your action list.  Remember a high deductible means decreased payments but it’s not worth if the number makes you nauseous. Regardless of how you feel, do you have your deductible money in liquid form at this moment? If you don’t that might be a sign you need a different deductible as well.  

Check your policy declaration page.

Check if you have the policy riders that best suit your needs. Do you have riders that seem obsolete? Sometimes insurance companies send you updates on your policy and give you a certain number of days to waive the new riders they are adding.  If you failed to waive it, it was added to your policy. Below is a basic list of riders:

Terrorism (an owner’s choice)

Errors & Omissions (this may be useful for if you do your own leasing and bookkeeping)

Vandalism

Water/Flood

Burglary

If you have any riders that seem odd or are missing ones one listed above add “talk about riders” to your action list with the specific riders that concern you.

What is your liability limit?

I’m not talking about the maximum you can be held responsible for if you are sued.  What is the maximum your policy will cover on a claim if someone sues you for personal injury from your negligence (I.e. slip/fall).  If it seems low, write it on your Insurance Action List. Your agent will have their pulse on lawsuits and where settlements and payouts typically fall nowadays.

Is it an umbrella policy?

If you have multiple properties you should consider having an umbrella policy that would help insulate your personal assets from liability claims that exceed your policy.

 

Check your property damage declaration.

This is probably the most important step to take given some recent events in Wisconsin.  When Beaver Dam’s apartment complex went up in flames from illegal tenant activity the insurance company wasn’t very willing to pay out…and last I knew refused to pay out.  Does your insurance policy kick in if a tenant damages your property while conducting illegal activity out of it? What if there is property damage and a housing code violation is discovered during inspection by law enforcement or adjustor? Are you still covered?  Answers to these questions will involve a phone call or email to your agent. But it’s important phone call to make to be sure you aren’t caught in the dark when something happens and were expecting coverage.

There. In 30 minutes you have familiarized yourself with your insurance policy.  It is possible you have more questions than you did before, but that is a good thing.  Now take those questions to your agent. Bring specific questions to make sure you get the answers you desire and to keep the conversation on track.

CategoriesReal Estate Investing

Real Estate Networking In A Tech Driver World

Even as soon as just a decade ago, networking was something that was only done in person.  You had to find chamber events, groups, community functions in hopes of finding people who are not only like minded but also eager to connect. Trade organizations (like WAA or REIAs) were the best chance to meet people who were in the same field as you.  The internet began to erode away at that norms of networking and in the last 4 years technology has shattered the long-held belief of networking only happens in person.

The cornerstone of these web based groups are the discussion forums. A place for idea exchange and advice seeking among members that knows no geographic bounds.  A query posted may have investors from California, NYC, or Australia offering comments or suggestions. This networking allows real estate investors to gather knowledge from across the world, connect with people in different parts of the world, and possibly become partners on deals.

.Com Groups

A web based real estate networking group uses the website as the primary focus or method of communication between members. These membership bases tend be nationwide.  This means education and opinions are not based on your local housing laws. But they are still amazing resources and ways to connect with people in various stages of real estate investing. Some examples of these are “Biggerpockets.com” and “realestateinvesting.com”.

Facebook

Facebook is one of the easiest ways to network with other investors.  There are groups within Facebook dedicated to connecting landlords or other real estate professionals. A simple search on Facebook for “landlord” will yield about 6-8 groups dedicated to rental investing.  Some are large groups (5k member) others are small (less than 500). Some are geographically focused on a certain area of the world, others are national or internationally based. The best groups are closed groups that require approved membership to join.  Membership is free but they ask you to answer a few questions to be sure you are truly an investor and not someone just looking to spam the community. Facebook groups are discussion based groups. Meaning their purpose is discussion started by other members posing questions, telling stories, etc.  Moderators aren’t necessarily posting original content or posing group questions, though some do. For the most part moderators are only there to make sure the community isn’t being spammed or being abused.

Instagram

Instagram is quickly becoming a platform that is more than just for posting neat photos.  Through use of hashtags, stories, and live video Instagram is becoming a unique platform for networking for all fields.  Instagram is unique because it allows you to see more than just words. It’s not a platform for seeking advice necessarily.  It’s a platform for you to exhibit your knowledge and skills in the industry. Real estate investors post pictures of their current projects, deals, and day in the life.  They use Instagram to brand themselves as investors. It’s a marketing tool. It networks them with people who have the same interests (through hashtagging). It’s a source for creativity by browsing other investors content. It’s a resume in video and picture form which can be used when talking to prospective private money investors, loan officers, and other investors.

Even with all these amazing networking abilities at your fingertips, it still is the in-person connections that will likely yield the quickest results. There is something about that in-person connection starts building loyalty and trust almost instantaneously.  Combining in-person networking with technology sources can really accelerate your investment business. Always be sure you are part of one organization that gives you a local pulse on laws and trends.

Remember: Your results are directly related to your level of participation. Little participation yields low results.

 

CategoriesLong Term Rentals

3 Low Budget Spruce Ups for A Tired Apartment

 

 

 

Does your rental need some sprucing up but time and cash are low?  No worries, there are plenty of ways to breath new life into a rental without sucking the life out of your wallet.

Cabinet knobs and drawer handles

I feel like knobs and handles are overlooked and underrated improvements.  If your cabinets are in sturdy shape, hardware is a great way to add a new spin on them. Adding hardware even has a practical purpose: it helps extend the life of varnish or paint on the cabinets because it reduces the skin oil absorbed and fingernail destruction.   A package of 10-12 usually runs between $15-$20, this of course depends on the style you get. If you already have hardware (says dark 1970s hardware), swap them out for a more modern silver finish.

Outlet covers and light switch covers

Nothing makes a empty room pop like an electrical cover that is different from the wall color (but doesn’t clash with the outlet or switch color!).  You don’t have to do every room either. You can chose to only do the living room and kitchen (where people spend the majority of their waking time).  These covers run anywhere from .25 cents to $1.10 depending on the finish and type you need. A silver or black outlet cover is great way to add contrast to a white outlet and white-ish wall.

Showerhead

One of the best ways to make an old and tired bathroom sparkle is changing out the shower head and sink faucet. Oddly enough renters love shower heads that do more than just spray water. You don’t need to get one with a hand held adapter if the idea of a water fight in the bathroom scares you.  Many fixed ones come with 1, 2 or 3 alternative spray settings.

These are some low budget ways to spruce up the look of your rental. In a future I blog I will give you a review of the more expensive way to update an apartment using refinishing kits for counters, tubs, and cabinets. Yes, I’ve done all of them (not all in the same unit).

CategoriesEntrepreneurship

The Importance of A Morning Routine

Last year I had a book recommended to me by my brother-in-law.  Normally his book recommendations are heavily based in business procedure and protocol. So foolishly…I put the recommendation on the bottom of the list.  Last summer, the timing seemed right so I cracked it open. While I didn’t care for the writing style, the content was important and more interesting than I had thought.

We’ve all heard how our mornings set the tone for our day.  Most people wake up hoping the stars will align and their morning won’t ruin their day.  Roll out out of bed with the alarm, start the coffee, maybe get kids (or spouse) up, tend to breakfast, get dressed and head to work…hopefully not in a frantic already. Yet there are things we can do take control of the mornings and start our days on the right foot.

Wake up at least 2 hours before you start your day

I start my day at 9am so I wake up at 6:15 right now.  Getting up early is very common in the highly successful people. Oprah rises at 6am, Richard Branson at 5am, Dwayne Johnson (AKA The Rock) rises at 4am, and Bill Gates wakes at 5:30am.  All of these people do it by choice.  They aren’t doing because they have 6am stage calls, meetings or anything else.  They do it to spend time with themselves doing what they feel is important.

Use the time wisely

Start by thinking about meaningful things you can do in the morning that will positively impact your mood and productivity.  What are somethings you don’t normally do that you wish you had more time for? Getting up one hour earlier only to waste it watching morning tv will not aide you. Consider using it for: exercising, reading, meditation, writing, playing guitar, learning a foreign language.  Think of things that are being creative or being active. A list of 3-5 things will do well for one hour of activity.

Prioritize the things that will make a difference

Make your morning routine about things that will get you energized for the day and give you an immediate sense of accomplishment.  Doing this will make it easier to keep going because the accomplishments can remind you of why it’s good to wake up early. Let’s face it the first week will be unique and new….the second week will be killer.

Always wake up at the same time every day..or with very few exceptions.

Waking up every day (even the weekends) at the same time is extremely important for keeping the morning routine.  I rise at 6:45 every day. I hope to get to 6:15 but so far I haven’t been able. I do this Monday through Friday only allowing exceptions for New Years Day and jet lag.  Your body thrives on consistency and regimen. Don’t lie in bed with your phone after the alarm goes off. Get out of bed right away. (I recommend leaving the phone out of sight until the end of your morning routine.) It’s better to sneak in a 45 minute nap later in the day after you’ve been up for awhile than sleep an extra hour.

If I were to recommend two things for your morning routine….

I  recommend starting with drinking a full glass of cold water first thing and in under 10 minutes.  Most of the grogginess we associate with mornings actually stems from dehydration. Drinking the full of glass of water will restore fluid and wake up your body.

I also recommend fitting in your reading in the morning.  It is one of those things we rarely make time for during the day as we get busy.  Compared to exercise it doesn’t really make sense to get in a “quick read” because you have 15 minutes.  Also, the most successful people in the world devour 40-50 books per year. If you spend an hour every morning, it won’t be hard to hit that number.

So what does my morning look like?

6:30 Rise and drink full glass of water

6:50 Yoga

7:15 Listen to quick Youtube business inspiration video

7:30 Get ready for the day (all that personal stuff)

7:45  Read from a book of my choosing

9:00 Start my work day

Happy Mornings!

Corina Eufinger

Owner of Brio Properties

Director of Online Content WAA

Owner of CRC Investments

CategoriesEntrepreneurship

7 Ways to Break The Ice At a Networking Event

Networking events can be daunting.  It’s walking into a room where (hopefully) there is a lot of new faces.  We are all there to make connections yet we all become a little trigger shy when it comes to striking up a conversation.  

1. Have A Wingman (or Lady).

It doesn’t need to be your spouse or business partner.  Bring someone else you know that may benefit from the event.  Strength in number always works. Just don’t get caught up in your companion that you don’t approach anyone new.  The whole point of bringing them along was to make it easier to strike up a conversation with a stranger.

2. Inquire About Their Drink

If you are at a mixer with..well…mixed drinks start the conversation off by asking the person what they are drinking. This opens up an avenue of discussion.  “Oh I love that wine. What is your go to brand?” “I’ve never heard of that drink, what’s in it?” (I use this one if I am still trying to crack the egg even if I know what the drink is.)

3. Comment On The Food

Everyone loves food.  Food is a great source of conversation because of that.  When I walk up to someone I may size up what is on their plate (or cocktail napkin).  If I find something interesting that I can spin in a positive way I start the conversation there. “Oh it’s nice to meet a fellow spicy food enthusiast.”  (This would never come out of my mouth by the way because I am a spice wimp.) “I can can never pass up a slice of cheesecake myself.”

4. Ask “What brings you to the event?”

Asking this question is a great premier question if you want to just dive right in.  In most cases their answer can lead to another point of conversation. They may say a friend brought them here, you can reply with “Who is the person who persuaded you to come?”  They may answer with what they want out of the event “I’m looking to meet an attorney who can help me legally insulate my properties.” You can follow this up by inquiring what they mean, or if you have a connection informing them you may able to help. If you are responsible for connecting someone with what they are seeking, they will not forget it and will look for ways to return the favor.  

5. Comment On Their Cell Phone

Technology is a great conversation starter now days.  If you see a person’s phone is out on the table you can comment on it. “Is that the S9 [or latest Iphone]?”  Then extend the conversation by saying “I want to upgrade to that next. Is there anything you wish they had done differently with it?” Commenting on  unique phone cases are awesome conversation starters even if it is as simple as asking “Where did you get that phone case?” The tried and true question is “What apps do you use?”

6. Pay Attention To Their Name Tag

If there are name tags, there are many ways to utilize these to your advantage. Comment on a unique first name or spelling.  If their company name is familiar, “I’ve seen your company name around town a lot.” If their hometown is listed, think of a comment you have on the area.  If someone is from Lake Geneva, I may comment how I love all the locally shops owned shops or really love Sprecher’s Restaurant. Be sure your comment is localized enough to the area. You don’t want to say “I love Perkins. You have one in Appleton don’t you?” Show your knowledge of their hometown.

7. Comment On The Venue

If all else fails comment on the venue.  If you notice someone is rubbing their arms or has their winter hat on, “The venue is nice but I wish they would turn up the heat a little.” Comment on the light fixtures or other decor.  I love using rather off the wall statements like “I wish I could have that fountain in my living room.” The unexpected comments are intriguing and often serve as a good ice breaker.

CategoriesReal Estate Investing

CPAs and Your Taxes

It’s tax time. If you are ambitious, you may already have them done. I am not part of that category when it comes to taxes.  My poor accountant usually receives my reports middle of March.  Which might not be a problem if it didn’t involve 3 businesses.  Even if you have finished your taxes this year already, continue to read because this article isn’t strictly about getting your taxes down this year.  

When I started my first business, I went through a checklist to get my professional support team in place.  I found an attorney (well two one business law the other real estate and rental), I found a CPA, and I found an insurance guy.  It wasn’t until after I had my first taxes done that I learned that all CPAs are not built the same.  

Big Box Tax Preparation

It’s no secret that places H&R Block and Hewitt-Jackson are not the same as the Certified Public Accountant that may operate a practice off your local street corner.  If you need a description of why they are different think of it this way: H&R Block operates a business, a CPA operates a practice.  A CPA practices accounting much like you say your doctor practices medicine.  H&R Block is business with a procedure used for every transaction (much like McDonald’s drive thru). While I believe H&R Block and others may do okay for the Jones Family who don’t own businesses or investments, if you own either of those you are being under serviced by those companies.

Do You Dare Do Your Own?

The same goes for doing your own taxes if you own investments or a business.  Tax preparation is a specialized field.  If you don’t have the proper knowledge to complete your own taxes (and your online service doesn’t go in depth) then you are doing yourself a disservice.  I truly believe preparing your own taxes is much like doing car repair.  You wouldn’t rebuild your transmission without preparing yourself with a very complete understanding of vehicle operation and the process to rebuilding the transmission.  Tax preparation is the same way when you own things other than your primary residence.  You should have read a few books, watched a few tutorials on how the tax code works prior to preparing your own. Your research should include learning how to prepare them when business income or investment income is involved.  

CPAs v. Tax Advisors

Now all CPAs are not built the same.  The vast majority of CPAs are specialists in accounting and the procedures of filing taxes.  An accountant can help your depreciate your asset, decide between accrual and cash accounting, and like concepts.  But most accountants are not tax advisors.  A tax advisor is one who helps you build a plan for your investments and businesses that presents the lowest possible tax liability based on your projected performance for the year.  When you have a major change, they help you structure and organize said change so that it will have the smallest negative affect (or biggest possible positive influence) on your tax liability.  Tax advisors are passionate about knowing the tax code in its most updated form.  

It is possible for CPAs to be tax advisors but not all tax advisors are CPAs.  Tax advisors do have accreditations available to them. The Accreditation Council of Accountancy and Taxation bestows tax advisors with the accreditation of ATA (Accredited Tax Advisor).  This is why every once in awhile you may stumble upon an accountant that lists his or herself as  “Ellis Bell; CPA, ATA”.  If you prefer to have your accountant and tax advisor in one, that is the alphabet soup you look for after their name.

You may be wondering if they even should be the same person.  It depends on the size of your ventures.  If you own 300 rental units and have 7 LLCs you may want to consider having an accountant and a separate tax advisor.  Only because keeping your accounting in line will likely be enough of a load one person.  And truth be told at the point your tax strategy will be enough work for one consultant.  However until you get to an enterprise level, you can certainly use one accredited person for both purposes.

 

CategoriesLong Term Rentals

Tenant Proofing Your Units: Is There Such A Thing?

Most landlords would agree that the most aggravating aspect of being a real estate investor is tenant damage.  It is also one of the reasons most of us fear turnovers (preparing the unit for the next tenant).  Especially we have a gut feeling about the the unit condition.

I was listening to a real estate podcast a few months ago and the investor being interviewed mentioned he was attempting to develop a formula for “tenant-proofing” his rentals.  The idea is of intriguing.  He was quick to clarify that “tenant-proofing” did not mean making the unit (or an aspect of it) invulnerable to tenant damage. It was more about making a unit tenant-resistant as a more achievable goal.  My brain started going a flutter with the possibilities.  

After a few months of research and now implementation into my last vacancy I believe there are ways we can make our units tenant-resistant.  Part of it is due to better technology for flooring, blinds, etc.  Others are going back to the way things were “back in the good ole” days.  Yet some are simply thinking outside of the box for rentals.

Hollow Core Doors v. Other Doors

As landlords we do look at the price tags of items we buy for our rentals. It’s how we keep within a budget that makes our units cash flow.  Doors are not inexpensive especially when we may have to include staining or painting them in addition to simply buying it.  There are typically 3 kinds of interior doors to choose: hollow (least expensive), foam core (moderate price tag), and solid core door (most expensive).  The difference between a hollow door and the foam core door is like the difference between an spoiled apple and and ripe apple. The spoiled apple (hollow core door) easily gets dinged and punctured where as the ripe apple (the foam core door) can withstand a more pressure.  A solid core door would be the most durable option but I’ve been told the difference between foam core and solid core is not enough to justify the price tag.  There is usually a $15-$20 price difference between hollow to foam, then a $30-$50 jump from foam to solid.

Backsplash The Kitchen

One of my favorite things to do is to add a backsplash that runs the entire height of the wall space between kitchen counter and the bottom of the upper cabinets.  Its add dimension to the kitchen and also prevents wear and tear on a very tricky area to paint.  (It is the most annoying part to paint in my opinion.)  A backsplash can be individual tile and grout, a premade sheet of smaller tiles, or decorative tin or metal pieces.   The great part is that with the exception of tile and grout, the other options can easily be DIY.  

Get Rid Of Carpet

If you are still putting carpet in your rentals it is also one of the biggest ways you are inviting tenant damage and wear and tear.   Laminate flooring technology has increased greatly in the past 5 years so if you haven’t evaluated it lately at trip to your home improvement store is in order.  Now this isn’t to say laminate is foolproof.  You will want to be sure installation is done properly to avoid gaps.  It needs to be snug and tight.  If you rip up your carpet and find old hardwood flooring.  It may be salvageable.  You can rent an industrial floor sander for fairly inexpensive and cut your time and backbreaking work in half.  Best part is if you are a fan of golden tones you may not have to stain the floor. Poly brings out a warm golden hue in most wood floors.  Be sure lay down at least 3 coats poly.  After All, this is a tenant who will be living there and not you.  

Hinge Doorstops

For starters, if you aren’t making sure every door has door stop then that is an easy way to make your rental slightly more tenant resistant.  Yet baseboard door stops can easily get damaged.  Pets love to play with the baseboard door stops. Funny Fidos make it their mission in life to remove the nub (because its an awesome toy!).  Once the nub is gone your door stop is just a metal rod.   I like using hinge door stops lately.  I find that in combination with my foam core doors I barely have any door or wall damage from the opening of the door.  The nubs are also way to high for Fido turn into a toy.  

Heavy Duty Chair Rail Paint

As avid blog readers would know, all of my rentals that I own are old homes…I mean OLD.  So many of my units have items like chair rails, half wall paneling, and other wood details and accents not found in more modern rentals.  Needless to say these chair rails and paneling can take a beating.  I  took a suggestion from my handywoman and painted the chair rail and wall paneling with the epoxy shield-coating meant for basement floors.  Three months in it’s held up well where as with normal paint I would have had at least a half a dozen chips by now.  I won’t pretend it was easy to apply but the extra durability is proven to be worth it.

 

 

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