The One Book You Need

What resource should you buy immediately? There are many books written about property management, but the single book you need is The Unofficial Guide to Managing Rental Property by Melissa Prandi, MPM. Ms. Prandi is a past national president of the National Association of Residential Property Managers(NARPM). ( Please know I do not receive any portion of book sales.)

Finally, join NARPM (800-782-3452). Residential property management is an exciting area of real estate practice that offers great opportunities. Take advantage of the new resources and start your new business today.
.
Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

One Thing Is Common To All

How to obtain new clients is always key to any new business. The possibilities are beyond the limits of this article. However, let's suggest a few: a great web-site, networking with other REALTORS who only do sales, direct mailing to non-owner occupied properties and creating a farm area. There are pros and cons to each of these. One thing is common to all of them---don't expect it to happen overnight. Your competition for these new clients is fierce. In the Denver metro area there are over 250 firms specializing in residential property management.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Limiting Your Potential

When building a property management business many property managers limit themselves to a local geographic area. It really comes down to travel time to a given unit, say no more than 15 minutes one way. However, such limits may reduce your potential client market. A business decision you will need to make.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

A Horse Of Another Color

Managing apartment complexes and homeowner associations is a horse of another color. Both of these residential types of properties require different knowledge and are more complex. Some property managers do handle all of these various types of properties. However, unless you have good background experience, I would recommend not undertaking the above two at the outset of your new property management business.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Watching Business Grow

As I limited my business to single-family homes it turned out to be a great place to start. As business grew, so did opportunities to manage small multi-units, condos and town homes. These other residential properties can be managed in much the same way as single-family detached homes.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

What Type Of Properties To Manage?

The type of properties you seek to manage has a dramatic impact on your overall business plan. Considerations for Residential Property Management (RPM) could include: single-family homes, small multi-units (duplex,etc.), condominiums, town homes, apartment complexes and Home Owner Associations (HOA's).When I first undertook RPM, I limited my efforts to single-family homes on the theory such properties would always have strong rental potential.


Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

So You Want To Manage Residential Property!

Times in the sales business are tough. So you are thinking about changing the nature of your business. As in the case of sales, there are basic decisions that must be made at the outset. What type of properties are you going to manage? Where are these properties going to be located? How will you find potential clients? What type of resource material will you need?

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Business Risk Decision

In fact, pets cause damage that can be very expensive. I tell my clients this is a business risk decision. The previous landlord may or may not give you an accurate picture of the pet's behavior. If the carpet is more than five years old and the doors are not perfect to begin with, allowing a pet is not difficult. With brand new carpet, it is a very difficult decision. It really comes down to the owner deciding how critical is it to get the unit rented sooner rather than later. As a residential property manager, my job is to give my client the pros and cons and let them make the business decision.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Not Allowing Pets

For the last 25 years, every tenant I have talked to about his or her dog, tells me the same thing. Their dog is "Lassie" from the classic television series. Their perfect dog would never mess in the house, never chew or scratch doors, etc. Their cat is equally well trained, never touching the drapes or failing to use the litter box.


Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Know About ADA

Remember that service animals are not considered a pet. Also, keep in mind that service animals may be needed for psychological reasons and may well be protected under the Americans with Disabilities Act (ADA). If you are not familiar with the ADA then speak with your real estate attorney for advice and direction.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Term "Pet Deposit" Misleading

It is common to get a higher dollar amount for the security deposit when a pet is involved. you should NOT identify this additional amount as a "pet deposit", as that may limit how your total security deposit can be used when the tenant vacates the property.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

The Reason To Allow Pets

Remember that each lost week of rent can never be made up. Lost rent is similar to an empty airline seat. Once the plane leaves, the income from that seat is lost forever; hence the reason airlines will sometimes offer airfare below its actual cost. Getting the unit rented in only one week is guaranteed to put more money in the owner's hands.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Pets Or No Pets

The landlord has a business decision to make regarding pets. Probably two-thirds of would be renters for single-family homes have a pet (we are talking dog or cat here). By automatically excluding pets the landlord is drastically reducing the number of potential renters available. The balance of this series will look at the pros and cons of such a decision.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

 

Clients Will Thank You

The out of state investor typically assumes that our rental rates are similar to theirs. This assumption proves to be costly when it is time to locate a suitable tenant. As a general rule of thumb, it will take 25 percent down to allow a rental unit to break even. This 25 percent figure does not include the rehabilitation costs discussed earlier. As a buyer's agent assist your client by being realistic about foreclosed properties to be used as rentals. Your clients will thank you and perhaps purchase more properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Negative Side of Foreclosed

For investors wanting to purchase foreclosed single-family units to use as rental properties there is a negative side. These cons do exist and are significant. A buyer's agent should remember the following-generally, the condition of the foreclosed property is poor; and there is an incorrect assumption held by many investors that tenants are willing to accept tired and worn out properties to call home. While vacancy rates have fallen, it is still a tenants market. As a property manager, my customers (tenants) are demanding clean and functional homes to live in. Be certain your client is prepared for necessary rehabilitation costs connected with most foreclosed properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, and manages 150 single-family units in metro Denver. He is a speaker, consultant, expert witness and holds the Master Property Manager (MPM) designation awarded by NARPM. He has served on the National Board of Directors of NARPM. His firm holds the Certified Residential Management Company (CRMC) designation also awarded by NARPM.

Many Foreclosed Properties

Buyers of foreclosed properties should also keep in mind that interest rates remain at relatively low rates. So the good news for investors is that the supply of properties is high to go along with the historically attractive interest rates. Given these two factors how can there be any downside to purchasing a foreclosed single family home?



Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Location of Foreclosed Important

It would seem that most of these foreclosures are less starter homes located in areas that tend to be more modestly priced. As in all real estate acquisitions location, location and finally location is a critical factor. As a buyer's agent the REALTOR must keep this in mind when working with an investors client.






Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Pro Side of Foreclosed

On the pro side is the ever increasing supply of single family homes (foreclosed) available to purchase. Housing prices, in general,have declined and may provide the best value that we have seen in years. Single family homes continue to remain the the strongest segment of the rental housing market.





Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Foreclosed, Perfect Rental Property?

I receive an average of two phone calls per week from REALTORS with out-of-state buyers seeking to purchase cheap rental property in the Denver metro area. Our nationally recognized foreclosure rate appears to have created a demand for those properties. Often the buyer speaks of purchasing ten or more properties. My next blogs to be posted will examine the pros and cons of foreclosures to be used as rental properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Property Managers Need 24/7 Repair Service

Property Managers have another possible solution to repair service and that is to do nothing for emergency repairs. This would be below the standard of care that the property owner expects and is entitled to. The property manager must, to the best of his/her abilities, protect the health of the tenant and the condition of the property.

If you are going to be a property manager you must have 24/7 residential property repair service available.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Organizing Vendors Needed

I have three different firms that handle emergency service calls. A sewer line company, a heating company and a running water/immediate emergency repair company provide my 24/7 coverage. Having worked with all three of these vendors for years, I have little concern about the decisions they will make in the absence of speaking directly with me. They, in turn, know that they will be paid for their 2:00 am response to a backed up sewer line.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Policies And Procedures With Vendors

Once the vendor you have chosen for your residential property management business understands your policies and procedures, as well as having a proven record of reliability, you can discuss 24/7 emergency service. Many repair people have a person on call each night or holiday. When your tenant calls after-hours, your voice mail should provide the pager or voice number of the appropriate service company.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

RPM And Vendors

For 24/7 rental repairs I would suggest the following plan. As a residential property manager (RPM) it is expected that you will have vendors to make any and all necessary repairs. Building a strong relationship with these companies is the first step. The creation of this relationship occurs as you provide them work (as needed in your rental properties) on a regular basis, along with reasonable prompt payment.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Vendors Call List

What steps should a residential property manager take to resolve/mitigate potential health/property damage issues? One possible solution is to have the tenants call you at home any hour of the day or night. While this will keep you totally up to date, it will do little for your home life. Even if you took this approach, you still need vendors you can call that are willing to respond 24/7.


Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

24/7 Rental Repairs

When managing individual residential properties, the managing agent should expect serious repair problems at any given time of any given day. From experience I can say that sewer line backups, furnace failures, running water, leaking roofs, etc., may well happen at 2:00 am on Christmas morning. Given this, as a fact of life, what steps should a residential property manager take to resolve/mitigate these potential health/property damage issues?


Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Future In Advertising

There may be exceptions to my experience in trying newspaper advertising, however, I believe that classified advertising for renting residential property is truly an oxymoron. Internet advertising is the future, print media may be the past.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.