As a landlord, you can do everything in your power to make a situation agreeable for a tenant, but the unfortunate reality is that sooner or later, you may find yourself facing a tenant who has stopped paying rent for some reason, or who is asking to get out of their lease early. Both of these situations are problematic for a variety of reasons, and the eviction process can be a nightmare for everyone involved, so it’s best to try and resolve problems if you can. If you can’t come to a compromise that works for everyone, though, you do have rights as the landlord. If you’re dealing with unpaid rent or an unhappy tenant who wants to leave before their lease is up, we’re here with some helpful advice.

What to Do When Your Tenant Stops Paying

It can be disheartening if, after all of your screening processes, you wind up with a tenant who stops turning in rent checks. Of course, a day or two late is understandable—we’re all human, after all—but when weeks or even months drag on with no payment coming your way, it’s time to take action.

Most tenants will be open to having a conversation about why they aren’t paying on time. Perhaps they were hit with an unexpected medical emergency and the accompanying bills, or they got into a car accident and have had to cover those expenses. Maybe they lost their job or are going through a divorce. There is usually a reason that people stop paying rent—most tenants aren’t simply neglecting their responsibilities and going out partying every night.

However, whatever the reason, the bottom line is that your bottom line is suffering. Have a sit down talk with your tenant and find out what’s really going on. Once you’ve heard their side of the story, you can make a decision about what to do.

Should You Evict or Negotiate?

Eviction processes can be complicated, expensive, and drawn out. If you haven’t been through the process before, you’ll want to be aware of what you’re getting into before you start down that road.

The Eviction Process in Chicago

If you decide to evict a tenant for non-payment, you must first notify them that you plan on starting the eviction process if they do not pay within a certain amount of days. If they don’t pay, you can then begin the eviction process. Eviction lawsuits must be filed in the same county that the property is located in. Once you do, the tenant will then receive a court summons and a court date. If they intend to fight the eviction, they will have to appear. If they appear in court, they’ll have to detail why they are fighting the eviction. There are a number of reasons that a tenant can fight their eviction, and if the case is over unpaid rent, they may choose to bring up issues of damage or lack of maintenance as a reason for the nonpayment—you will want to have any communications between the tenant and yourself on hand to prove that lack of maintenance is not the issue.

Due to the length of time that these proceedings can take—anywhere from five weeks to three months, assuming there are no delays—many landlords choose alternative methods for dealing with nonpayment. The most common alternative is negotiating with the tenant to figure out a smoother transition.

Common Negotiation Options  

Instead of evicting tenants, some landlords choose to work out a solution that involves paying the tenant to move out so that the apartment can be re-leased sooner. Often, the reason a tenant isn’t paying and won’t vacate is because they can’t afford movers. While it’s understandable to sympathize with this plight, the reality is you aren’t obligated to provide charity to non-paying tenants. If you’d prefer avoiding a court case and want the unit vacated, you can consider working out a deal to pay for the tenant’s moving fees so that they can leave sooner. This is sometimes the best case scenario—while you are paying a tenant to leave, a flat fee can work out to be less expensive than taking them to court and evicting them over months of unpaid rent.

You can also work out a payment plan if the tenant thinks they can get back on track relatively soon—whether you want to explore this option has to do with the reliability of the tenant and whether you can trust that they will actually catch up, and how they can prove to you that they can be trusted—documentation of a new job, for instance. This can be a risky choice, because if they turn out to be untrustworthy, you’re back at square one with unpaid rent and a tenant who needs to go.

Talk with your property management company about the best option for what to do when your tenant stops paying. They likely have a lot of experience dealing with all kinds of tenants, and will be able to offer you sound, realistic advice based on the specifics of your property and the current rental market.

What About a Tenant Who Wants to Break Their Lease?

Another issue that you may have to deal with as a landlord is a tenant who wants to leave before their lease is up. Breaking a lease is generally unadvisable for tenants, but from time to time, someone may have a legitimate reason that they need to leave: job relocation, family emergency, loss of income, etc. Other times, tenants simply want out of their responsibility– perhaps they want to move in with a significant other, or maybe they don’t like their roommates, but whatever the case may be, you need to find a way to deal with their dissatisfaction.

As a landlord, it’s in your best interest to try and come to a compromise on the tenant’s requests; resistance may lead to them stopping paying rent, and then you have to deal with that, in addition to an unhappy tenant.

If a tenant leaves, you are not allowed to simply do nothing, wait out their lease, then sue them for the months they weren’t there/were not paying. You are obligated by law to try and fill the vacancy in a timely manner. Even if you have a full plate of other responsibilities, you have to start showing the unit as soon as possible. You can charge costs of advertising the unit to the tenant breaking the lease, but thankfully, you aren’t required to list it at a below-market price just to fill the vacancy faster.

Whatever reason the tenant gives for wanting out of their lease, it is often easier to try and work with them to get the situation resolved sooner, rather than argue with them and force them to stay or sue them for unpaid rent.

If the tenant who wants to break the lease is not the only person on the lease, it should be reiterated to the remaining roommates that they are still responsible for the total amount of the rent payment. Recouping unpaid rent from a departed tenant will usually involve suing the tenant, and your leases should have a clause that informs roommates of the potential of having to cover the total cost of the rent in case someone leaves. The remaining tenants may not know that they will be held responsible if one person leaves, and that can cause a domino effect of more unpaid rent. In other words, it’s best to communicate with everyone what the terms of their lease are, even in the event of one person breaking the lease.  Try and get the departing tenant to find a sublet, but if they can’t, and you let them out of the lease, it’s up to you to fill the vacancy.

Don’t Get Overwhelmed

If all of this information makes you stressed out just reading it, that’s fair—dealing with unpaid rent, unhappy tenants, and broken leases can be nightmarish. Property management companies know that these issues pop up from time to time, and due to the volume of their businesses, have often dealt with these situations at least once or twice. They can help you track down tenants who aren’t paying on time (or at all), and they’ll be able to help you re-list vacant units, screen tenants, and take care of everything related to possible legal battles.

Here at Lofty, we want everyone who owns investment property to enjoy doing so, and we help facilitate that by managing every aspect of your property’s needs. We handle the difficult situations as well as the everyday minutiae of being a landlord, so that you can live the life you deserve.

Contact us anytime to learn more about how property management can make your life easier.

Speak with Lofty’s expert and managing broker Anthony Zammitt.

When you own investment properties, making sure you schedule regular maintenance can save you a lot of hassle from having to do costly emergency repairs. If you’re a first time landlord or just want to know more about how to best maintain your properties’ ducts and dryer vents, this is the guide for you. Learning about what you can expect, how often maintenance is required, and how much you’ll be paying for duct and dryer vent services can ensure that your properties stay in tip top shape for the duration of your ownership.

What Kind of Maintenance is Required?

Dryer vents and ducts need to be kept clean in order to ensure that your properties are safe. Dryer vents can become clogged over time, and in order to prevent house fires, you’ll need to make sure they’re not blocked. Ducts should also be cleaned to improve the air quality in your properties. Dust, mold, and other contaminants can build up in ducts and may cause health problems for you or your tenants. As a landlord, you’re responsible for providing a safe and healthy environment for your tenants, and duct and dryer vent cleanings need to be a part of your maintenance checklist.

How Often Do You Have to Do It?

Dryer vents should be cleaned about once a year, though you can schedule regular checks for blockages every six months to be extra careful. As for duct cleanings, those can be done less frequently. Duct cleaning is suggested every three to five years, but that time frame may vary depending on what part of the country your property is in, how often the heating and cooling system is used, or if anyone living in the space has health problems related to air quality.

How can you tell when it’s time to schedule a cleaning? Contact your property management company and have them schedule duct cleaning services if any of these apply to your situation:

• You suspect mold is in the ducts.
• You can see visible puffs of dust leave the air vents when the system is turned on.
• If there is/was a pest infestation in the property (such as before you took ownership).
• Your air filters are heavily coated with dust when you replace them—this can be a sign you’re overdue for a cleaning.
• You’ve done heavy renovations in a property. Drywall dust and other contaminants can build up in the ducts during construction, and prior to tenant move-in, the ducts should be cleaned.
• There are a lot of pets in the building. Ducts will need more frequent cleaning if there is pet hair and dander in them.

How Much Will It Cost?

Cleaning your dryer vents generally runs from $60-$150, depending on who you work with. Duct cleanings can be more costly, depending on the size of the property and how much work needs to be done. In order to get the best deal, be sure that the company you choose for the service offers full service cleaning, which should include a full cleaning of the heating and cooling unit. Get written estimates by a few HVAC cleaning companies—reputable companies should provide a free inspection and estimate. Don’t fall for “all-inclusive” deals that are extremely low-cost, because they can be very cursory jobs that will just have you calling another company to do the work the first company missed. High quality duct and dryer vent cleaning can take a few hours and may involve sophisticated equipment—not just a half an hour with a Shop-Vac. If you’re not sure how to find the most reputable HVAC and duct cleaner in Chicago, your property management company can help. They should have a list of qualified, reliable contractors that you can trust.

What Happens If You Don’t Do It?

Dryer vent fires are a very real threat if you don’t do routine cleanings. According to the National Fire Protection Association, dryers were the cause of more than 15,500 home fires in 2010, so taking the chance simply isn’t worth it. Less serious issues can include longer dry cycles (which range from being merely inconvenient to downright problematic, if your tenants threaten to withhold rent until maintenance is performed), or a clogged vent system. If the vent system is clogged and not exhausting properly, it can wear out your appliances much faster due to the higher heat. Wait too long and you may need to completely replace the vent system, which can be a costly procedure—you’ll be wishing you had paid those smaller fees to clean the vents!

Neglecting duct cleaning can also lead to dust and other contaminants building up over time. Beyond improving the quality of the air in your properties, cleaning the ducts will help improve the efficiency of the building’s heating and cooling units. When it comes to winter property maintenance and ensuring your tenants stay safe and warm through the cold spells, duct cleaning can play a big part.

Want to know more about duct cleaning and dryer vent maintenance? At Lofty, we’re committed to helping landlords and property owners live the life they deserve to be living, and that includes helping you take care of building maintenance and repairs. Contact us anytime and let us take some of the responsibility off your hands, so that you can spend your time doing things you want to be doing.

Speak with one of our experts to find out how we can supercharge your investment.

When you’re a landlord and have regular turnover in your units, the work that you need to get done between occupancies can start to feel like it’s taking up all of your time—partially because if you have enough properties, it actually is taking up all of your time. Tenant turnover procedures and responsibilities can take up a lot of time, but another reason you may feel like you’re running around all over the place can be chalked up to doing tasks that are unnecessary. In order to ensure you’re making the most of your time, you need to be aware of what’s truly required of you as a landlord or property owner when one tenant moves out. Finding out what your responsibilities are between tenant occupancies can not only save you a lot of time, but it can save you some money, too.

Don’t Expect Your Tenants to Leave the Place Move-In Ready

The first step with this process is to go into the situation with reasonable and realistic expectations. In other words, while in a perfect world all of your tenants would patch holes in walls, scrub the floors til they’re sparkling, and do everything else necessary to bring the apartment back to life, that will almost never be the case. Tenants can generally be expected to clean the apartment before they move out, but they’ll be busy focusing on getting their moving plans and their new apartment in order, not making sure that their old place is in perfect condition and prepped for new tenants. Keep in mind that the responsibility for making the apartment ready for your next tenant will largely fall on you and your property management company.

What Needs to Be Done Between Tenant Occupancies?

Think about what you would expect an apartment to look like when you moved into it for the first time—that can be a starting guideline to knowing what you need to do for your tenants. For instance, if the paint and walls are dirty, scuffed, or scratched, you need to repaint them so that the apartment looks its best. Your new tenants are paying to live in a comfortable, habitable space, so it’s up to you to make sure their new home is livable and inviting.

Appearance, Security, and Safety of Chicago Rentals

Beyond aesthetic work like repainting, you need to make sure your new tenant is aware that they need to set up the utilities in their own name. This is usually outlined in tenant leases, but it can’t hurt to remind new occupants of that responsibility.

You’ll also need to rekey the locks for the apartment. This is a security measure that will prevent former tenants from having access to the unit, and thus, it keeps your new tenants optimally safe. Be sure to get the keys back from the old tenant, as well. Even with rekeying individual units, many buildings have master keys for the main entryway doors that may not be rekeyed every time someone moves. If a tenant doesn’t return keys, you may want to charge a fee to cover costs (and, when this is noted in the lease, it can incentivize them to return the keys!). If the tenant still doesn’t return keys, you’ll have to rekey everything their set had access to and take the costs from their security deposit.

You’ll want to do a walk through before you schedule any maintenance, so that you can make note of any repairs or other damages you’ll need to take out of the departing tenant’s security deposit (if there is one). Take photos of the unit and any damages and write down detailed descriptions of what was left for you to take care of. Having a detailed list of what you’ll be retaining a portion of the deposit for can help you down the road, particularly if the tenant fights you on the withholding of any or all of the deposit.

However, it’s best to do this walk through without the departing tenant there—their presence can not only put a lot of pressure on you to give them answers about their deposit on the spot, but they can also mask problems that won’t show up until a few days later, like stains that have been scrubbed from the carpet, only to reappear when the cleaner dries, or lingering pet odors.

Make sure that everything is still in proper working order before a new tenant comes in. Check that the shower, toilet, and sink in the bathroom all function as they should, that the refrigerator and freezer are still working, and that electrical appliances and lights in the unit are still safe—there should not be any loose wires or broken bulbs when a new tenant moves in. You may not be required by law to provide new tenants with working light bulbs, but that small cost can be a good start to the tenant-landlord relationship, and should be considered.

Once all of these tasks have been taken care of, it’s advisable to bring in a cleaning crew for a deep cleaning of the unit. A professional cleaning company will make the place move-in ready, something that your new tenants will appreciate.

As far as painting, unless the paint is peeling or overly damaged, you may not be required to paint. Many landlords allow their tenants to paint for them, provided they repaint it back to a neutral shade upon move-out. It’s up to you how you want to manage painting. Some landlords dislike the prospect and work involved in painting, and offer their tenants the option to choose paint and do it themselves, taking the cost out of their rent. How you deal with painting in apartments between tenants is mostly personal preference, though you should make sure there are no state laws requiring painting every certain amount of years.

Using Your Time Efficiently When Transitioning Tenants

All of these tasks may seem like they won’t take up too much time, but when you have multiple units across multiple buildings, with tenant leases ending at different times, the amount of time you spend preparing your properties for new tenants can really add up. You shouldn’t be spending all of your free time doing apartment upkeep and maintenance; getting involved with investment property was supposed to be beneficial to you, not take up all your time, after all.
You could hire out contractors to do the work for you, of course, but even that requires you to show up to the property to let cleaners, painters, and other maintenance workers in and return to the property when they’re finished to ensure the building is secured. Though it’s less time consuming than doing everything yourself, it’s still a lot of wasted time that you could be spending doing something more productive or enjoyable.

How Property Management Companies Can Help You

If you’ve never worked with a property management company for your properties, you may be surprised at how much they can help with move-out and move-in procedures, as well as other aspects of being a landlord. They’ll be able to contract out the necessary work, meet workers at the property, ensure that the units are ready to go for the next tenant, and work with departing tenants to get everything squared away for you. You can literally hand off all of those pesky jobs to someone else and really reap the benefits of owning investment properties.

Here at Lofty, we believe that owning investment properties shouldn’t be a headache. We take care of everything our clients need, from screening tenants to doing the work between occupancies. Stop wasting time checking whether lights are working and sweeping baseboards and start enjoying being a landlord and property owner.

For more information about how we can help you live the life you deserve, contact us today.

Speak with one of our experts to find out how we can supercharge your investment.

If you’ve been a property owner or landlord in Chicago for any significant amount of time, you probably know all about security deposits: how to store them properly, when you need to give them back (if you plan on giving them back), what constitutes normal wear and tear and what constitutes damage that should be paid for with the security deposit, and how to deal with tenants who fight your decision to withhold the deposit.

But if you’re just dipping your toes into being a landlord or owning investment properties, learning about all of it can make your head swim. At Lofty, our goal is to make your job easier, and that means teaching you everything you need to know about returning (or not) the security deposits for your properties.

Returning It? Here’s How

Generally speaking, in Illinois, security deposits must be returned to the tenant within 30 to 45 days of the lease ending. Though some states require landlords to give tenants a move-in statement that details the condition of the property, Illinois is not one of them, so it’s in your best interest to keep accurate records of the condition your properties are in when tenants move in. That way, when they vacate the unit, you can cross-check against your old notes and see if there are repairs that need to be made.

If you’re returning the deposit, be sure to make receipts for both your own records and the tenant’s, so that the tenant can’t claim you never returned it. When you return the deposit, be sure to date the receipt—though it seems like a simple detail, leaving it out on accident can come back to haunt you. Without a date on receipt, you could find yourself paying out more in fees and court costs if tenants take you to court over deposit-related conflict. If it sounds confusing, don’t worry—it kind of is. If you’re taking matters into your own hands, security deposits can be a real headache. Working with a property management company can help take away some of the stress associated with security deposit issues.

What You Need to Know About Keeping Deposits

Returning a security deposit is easy. It’s when you decide to keep some or all of it that things can get really messy. Here’s what you should know about keeping deposits.

First Things First: What Constitutes “Normal Wear and Tear”?  

Security deposits are typically kept by landlords in Chicago (and elsewhere) to cover the cost of damages and repairs. A lot of times, this is fought by tenants who claim that the damage is consistent with “normal wear and tear” on the unit. Normal wear and tear is a real thing, but in order to know whether or not something falls under that category, it’s helpful to know what’s generally considered normal wear and tear in a rental unit.

• • Flooring: Carpet gets dirty and hardwood floors can get scratched, but if a tenant leaves behind pet stains or multiple cracked tiles, or floorboards that are excessively damaged, that’s not considered normal use.
  • Walls: This is a big issue between landlords and tenants—whether holes from nails used to hang artwork or other decorations are considered normal wear and tear. And the answer tends to differ from landlord to landlord. Use your best judgment here; splitting hairs over two or three nail holes might not be worth the potential hassle of a tenant trying to take you to court for the security deposit. Holes in the wall, however, are a completely different story and should be fixed with security deposit funds.
  • Pet Damage: Things like chewed-on cabinet doors, scratches on the walls, and stains are all out of the realm of normal wear and tear in a rental. In order to plan for problems like these, many landlords choose to charge non-refundable deposits or additional pet rent.

• Overall Cleanliness: While you might want to reconsider charging a cleaning fee for unswept floors and some light tidying, if a tenant leaves behind the remnants of a last-minute party, food in the refrigerator, and general filth, it’s more than acceptable to charge for cleaning.

The Most Common Reasons Deposits Are Kept

There are a handful of reasons that a security deposit might be withheld. They include:

• Early termination of the lease
• Unpaid rent
• Money owed to the landlord for utility bills
• Cleaning fees for dirty or un-cleaned apartments
• Damage to property (or furniture in furnished units)

What Do You Have to Provide to the Tenant if You’re Keeping the Deposit?

Laws vary from state to state regarding what you need to give your tenant if you are keeping any or all of their deposit, but generally, it’s good form to provide a list of services performed or things that needed fixing/replaced and the costs associated with them. This lets the tenant know that you actually used the money for what you said you did, and that you didn’t just charge $200 to dust the baseboards.

What to Do If a Tenant Contests Your Decision

If a tenant feels that you are wrongfully withholding any or all of their deposit, they may choose to file in small claims court or even hire a personal attorney to handle the case. However, you have rights—if you are justified in keeping the deposit, you can counter-sue the tenant to ensure you don’t end up underwater with fees and costs. Going to court can be a huge pain and can cost a lot of money for all parties, though, so if it’s a minor quabble—say, over a $50 invoice for cleaning, it may be best to try and settle with the tenant to avoid a costly court case.

Getting Help When You Need It

You got into investment property ownership to make money, not to make your full-time job dealing with tenant hassles. Here at Lofty, we want to help you with every aspect of being a landlord, from finding the best tenants to answering your security deposit questions and everything in between, so that you can save time and frustration and do things you actually want to do. Contact us anytime to learn how working with a property management company can help you start living the life you deserve to live.

Speak with one of our experts to find out how we can supercharge your investment.

When one lease ends and another begins, there’s a lot of work that needs to be done. Security deposits need to be sorted and returned to departing tenants, the first month’s rent needs to be collected from new renters, and in between, maintenance may need to be done on the property. And if you’ve got one tenant moving out without having one lined up to move in, that’s even more work—creating an ad and marketing the property, booking showings, and screening tenants. Altogether, it’s a lot of time that you could be using to do virtually anything else. Owning and managing investment properties shouldn’t be a mess of paperwork and endless busywork. If you’re tired of spending all of your time on what you thought would be a relatively easy way to earn extra money, you’ll be relieved to know that you’re not stuck—learn more about how property managers can make the move-in and move-out processes easier for Chicago landlords and property owners.

What to Do When Tenants Move Out

When tenants’ leases end and they move out, there are a few things that property owners or landlords have to do, including:

• Ensuring the property is in good shape and performing any maintenance that needs to be done, such as repainting or changing locks.
• Retrieving keys from the tenant.
• Returning the tenant’s security deposit, if applicable.

These three tasks alone can be be very time consuming—finding vendors and contractors to take care of repairs, maintenance, and any updates you want to make can feel like you’re on a wild goose chase. Once you find contractors, you’ll have to fit them in your schedule during a time when you can be at the property. To say that it’s inconvenient is an understatement. Getting keys back from the tenant can also prove frustrating. If you’re working with a property manager, though, they can take the time to track down the tenant, so that you don’t have to deal with calling over and over again, getting their voicemail every time. Likewise, the best property management companies in Chicago will have a list of trusted, vetted vendors and contractors that they can schedule for any property maintenance you need, and you won’t have to be there for any of it if you don’t want to.

Managing Vacancy Periods in Chicago Rentals

After one tenant moves out, one of two things will happen: there will be a vacancy period, or the next tenant will move right in. For now, let’s focus on the former.

If your property is vacant, you need to place ads, market the property, field phone calls from interested renters, schedule bookings, and show your property. If you’re trying to do this on your own, you can end up spending almost all of your extra time dealing with the property—which can feel like more work than it’s worth. After all, you got into investment properties to make money, not to take on a second full-time job, right? Property management companies in Chicago have written hundreds of apartment, condo, and home ads, and in addition to knowing the best places to market your property, they can often work out better deals with publications than individual landlords or property owners can, simply due to the higher volume of ads they place.

You want your vacancy period to be as short as possible so that you aren’t losing money, and property managers will be able to set your rental price according to current trends and market demands. You won’t have to worry if you’re charging too much or not enough for your rental, and people will be more interested in the property when it’s priced well—too high and people will balk, but too low, and some people may wonder what’s wrong with the place (are the walls so thin that they’ll be able to hear their neighbors debate about who should win The Bachelor, for instance?).

Once the property managers have shown your property and have some potential tenants lined up, they’ll be able to screen them, too. You won’t have to deal with background checks or conducting interviews. Property management companies have tried-and-true methods for ensuring they’re getting reliable tenants into properties, too, so you won’t have to worry about whether the tenants are the type of people who pay rent late every month or host loud, late-night parties in their studio apartments every weekend.
Imagine not having to deal with any of the headache-inducing frustration that is the vacancy period. You’ll have so much more time on your hands—time you could use to, say, catch up on The Bachelor (or do anything else!). Working with a property manager means you won’t have treat owning investment property like a second full-time job.

Helping Tenants and Landlords with the Move-In Process

Now that you’ve got a tenant who is ready to move into your property (whether or not you had a vacancy period), you’ll have to do even more work. It can feel like it’s never-ending, can’t it? Some property owners and landlords like to be onsite when new tenants move in, for helping with anything that might come up, and if you own a lot of properties, that can mean busy days for you every time a new lease starts. You’ll also need to make sure that the new tenant has paid their first month of rent, which can, like getting the keys back at the end of a lease, sometimes be a frustrating process. New tenants may not know where to send rent at first, too, which can lead to a late payment or two. You shouldn’t have to worry about tracking down your payments, and when you work with a property management company in Chicago, you won’t have to. Property managers take care of everything related to the tenant move-in process. They can be onsite during the move, they can track down your rent checks, and if anything happens during the move-in process, they can quickly schedule maintenance or repairs. It’s a level of convenience that’ll have you wondering why you didn’t start up with a property management company sooner.

Enjoy Your Time and Your Property

Here at Lofty, we understand that your time is your most valuable commodity, and we work hard to ensure you won’t have to waste it doing busy work for your rentals. We can take care of everything during the move-in and move-out processes for your properties, and we can also manage vacancies so that you can earn more money. To start living the life you deserve to live, give us a call anytime—we’d love to work with you and help make your life easier.

Speak with one of our experts to find out how we can supercharge your investment.

When you think about real estate in Chicago to rent or buy in, you’ve probably got a pretty good picture of what the more expensive neighborhoods look like: high-end boutiques, unique, trendy restaurants, and sharp looking homes, condos, and apartments. You’re not wrong—these highly sought after lifestyle amenities are what make some neighborhoods so hot. But when it comes to buying and renting, there are some other reasons why certain areas of Chicago cost what they do. Learning what tenants are looking for (hint: it’s not only stainless steel appliances and marble countertops) will help you make the best decisions about where to purchase investment property or rental units.

Neighborhood Growth

Over time, the vibe of different neighborhoods changes, causing fluctuation in things like how much homes are valued at. As a property owner or landlord, it’s natural to want to get the most return on your investment, so purchasing properties in up-and-coming neighborhoods is generally a great plan. An increase in the cost to rent or own in a neighborhood can often be attributed to the amount of—and the type of—development happening in an area. If more restaurants, newer apartment buildings or homes, and other interesting hotspots are being built up in a certain area, it’s safe to assume that those neighborhoods will soon cost more to live in, and in turn, will cost more to rent or own property in.

Location, Location, Location

Of course, where an apartment, condo, or home is located in Chicago will also dictate how much it will cost. Property owners and landlords know that the closer a home is to L stops, the more sought after it will be—Chicago is a city full of commuters young and old, and getting to school or work conveniently is a priority that a lot of renters and owners have when choosing where they live. For instance, though neighborhoods like Rogers Park have a lot to offer, they’re further away from the center of the city, and it can take longer to get places from there. The same can be said for most any neighborhood on the outskirts of the city—the longer it takes to get somewhere, the less popular the area is, generally speaking.

What’s Happening?

Aside from simple proximity to transportation, people will be looking for what they can do in their neighborhood without getting on a train or bus. In other words, what Chicago events take place? For example, in neighborhoods like Bucktown and Wicker Park, the Do Division and Wicker Park Fests are a popular fixture every summer, and for those who already live in the area, it’s a convenient way to spend a weekend. In River North, plenty of nightlife options are attractive to people who love checking out the latest bar, nightclub, or restaurant. When considering where to purchase investment property, property owners and landlords should consider what their potential future tenants will be looking for and make decisions accordingly. In order to get the best return on an investment, you’ll want to be able to offer your potential renters something they find value in.

How to Stay Ahead of the Curve

Naturally, purchasing property that is in a popular neighborhood will mean that you’ll likely have no trouble renting it. But as a landlord or property owner, it’s only natural to want to get a great deal on property as well as be able to make the most of your investment. Paying a high cost upfront can mean spending a lot of time trying to keep up with the competition—working very hard for marginal returns. Earning more on your investment means looking at up-and-coming neighborhoods that don’t yet have the numbers you’re looking for, but will very shortly.

Take a look at a neighborhood like Logan Square. A decade ago, tenants shied away due to lack of development. Five years ago, renting in Logan Square was a popular choice with younger, “artsy-type” tenants who were looking for a great deal after being priced out of Wicker Park. Now, it’s one of the hottest and fastest-growing areas in the city. Rents have gone up—the average price of a studio apartment is now between $800 and $900, with larger apartments costing more—a lot of new businesses are thriving, and the overall feel of the neighborhood is much more fun and exciting than it used to be. As a landlord or property owner, finding properties in neighborhoods that are growing but not yet fully built-up—such as Humboldt Park or Avondale—can mean a high return on your investment. In a similar vein, purchasing apartments, condos, and homes in popular Chicago neighborhoods like Hyde Park, Lakeview, and West Loop can mean you’ll always have people interested in your property.

Taking advantage of growing areas means keeping a close eye on where developers are heading and where tenants are moving from. This will give you a good idea of where to buy or rent next—property owners benefit a great deal from getting into a certain real estate market early. As an area heats up, you can adjust rent accordingly and watch your profit margin rise. You’ll also want to look at properties that are closer to the L stops and bus lines—as we previously mentioned, ease of getting around is a major reason people pick to live in one place over another. That means that cost of properties will be different even from block to block. Choosing location wisely can have a huge impact on your property’s success.

Start Taking Advantage of Opportunity

When you’re ready to start capitalizing on new rental properties or want to learn more about why some neighborhoods cost more to rent and own in than others, property management companies can offer a lot of insight. At Lofty, we’re ready to help you get the most out of your investment so that you can live the life you deserve. Contact us anytime to find out more about investment properties in Chicago and how you can make them work harder for you.

Speak with one of our experts to find out how we can supercharge your investment.

In the increasingly competitive rental market in Chicago, it’s becoming more and more common for landlords to charge non-refundable move-in fees instead of the more traditional security deposit. There are a number of reasons for the shift to this policy, and in order to decide which is better for you and your properties, it’s important to learn more about why these fees are becoming a standard part of the rental agreement in Chicago.

Tenant Rights for Security Deposits

One of the biggest reasons landlords and property owners are choosing to charge non-refundable fees instead of security deposits is the risk potential that accompany even small, seemingly-insignificant mistakes. For example, if a landlord forgets to date the receipt for the security deposit, tenants are eligible for an immediate return of the deposit, as well as other damages, which can equal up to two times the initial security deposit amount, plus court costs and associated legal fees. With the risk of situations like these arising, it’s not surprising that the non-refundable move-in fee is getting more popular.

What’s more, there are very detailed regulations associated with how landlords have to manage, store, and pay interest on the collected security deposit. While security deposits can be helpful in eviction processes to cover a tenant’s unpaid rent, they may not always be the most ideal choice for your properties—even with helpful property managers taking care of your paperwork and books, the process of dealing with security deposits can sometimes be complicated. When it comes to streamlining the rental process, move-in fees can be a great way to save time and frustration, but it’s up to you to determine what’s right for your properties. If you’re stuck, a property management company can help reveal all the potential benefits and drawbacks of security deposits and fees, allowing you to make the most informed decision.

Benefits of Charging Non-Refundable Move-In Fees and Pet Rent in Chicago

For renters, move-in fees have obvious benefits—handing over the equivalent of one or more months of rent as a security deposit can be a tough financial hurdle, and move-in fees are traditionally much less expensive than security deposits—averaging around $200-400 for Chicago tenants.

The benefits of charging non-refundable fees don’t just apply to tenants, though. For landlords in Chicago, charging move-in and pet fees eliminates the need for separate, often-complicated accounts to hold deposits in, and it guarantees immediate income that can be used for property maintenance or other costs.

With non-refundable fees for move-ins, landlords have immediate access to funds that they can use for taking care of routine maintenance and other tasks that need to be done between leases—changing locks, updating directories, painting, small repairs, etc.

Non-refundable fees are easier to keep track of, as well, meaning less work overall for landlords—what’s not to like about that? By collecting fees instead of deposits, you’ll save the time that you would have spent working to ensure you’re meeting all the requirements for holding onto security deposits. As far as tenant rights and landlord responsibilities are concerned, move-in fees are becoming the clear winner for many property owners because they’re convenient, quick to collect, and easy to manage.

Pet Deposits and Pet Rent In Rental Agreements

In addition to choosing between move-in fees or security deposits, another important aspect of any rental agreement in Chicago is how the landlord will manage pet deposits or pet rent. There are a lot of benefits to allowing your tenants to keep pets in their homes, but it’s important to make sure you’re protected, too. Many property owners choose not to charge separate pet deposits and security deposits, and for good reason—if a tenant causes damage that is unrelated to the pet, landlords aren’t allowed to use their pet deposits to cover the damage. Pet deposits can only be used for pet-related damages and maintenance, so many landlords instead choose to simply charge an additional amount of pet rent per month.

By charging an additional amount for pet rent, landlords ensure they’ll have the necessary funding to take care of any pet damage, and they’ll also have guaranteed extra income every month, increasing the profitability of the property.

Your Best Option

Making the choice between charging fees or security deposits will depend on a number of factors—beyond the pros and cons of each option, it can ultimately depend on your personal preference as a landlord. Property management companies can offer valuable guidance for what the best course of action may be. Here at Lofty, we are excited to be of service any time you need help deciding whether to charge fees or deposits for your apartments and condos. Reach out today and see how we can help you live the life you deserve.

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Here at Lofty, we  want to see people be warm and safe over the holidays, perhaps curled up by the fireplace or sipping hot cocoa. It can be easy to get distracted with the all the holiday excitement going on, but there some things you pay attention to, in order to avoid an unfortunate incident over the holidays. For example, did you realize a best practice is to keep flammable material at least three feet away from any heat source (i.e. furnace, space heater, fireplace) and Christmas trees with lights? Did you know the curtains are commonly overlooked as flammable material?.Here are a few key tips to staying warm and safe over the holidays.

Doors and Windows

We have already gotten a taste of the Chicago cold and as Chicagoans, we know it is about to become really cold. Chicago winters can bring ice, snow, and below zero temperatures. The easiest way to keep the home insulated is by closing windows and doors, securely. You may want to consider putting plastic on the windows and making sure you have a draft guard on the door to keep warm air in and cold air out.

Furnace

Past winters have brought on extreme low temperatures. A reputable property management company will be able to assist with a checklist of “winter proofing” tasks for your home. The name of the game is minimizing emergencies during this frigid season. For example, conduct a furnace maintenance inspection to keep the furnace working properly. Keep anything that can burn at least three feet away from the furnace, as well as, keep a “kid free zone” around the furnace avoid any unnecessary accidents. Also, test smoke alarms monthly to make sure they work. To see more tips, check out Lofty’s blog on Winterizing Your Home.

Space Heaters

Electric space heaters need to be plugged into a wall socket, not an extension cord. Most extension cords can’t handle the extra wattage a space heater needs, so take an extra precaution and check to make sure the space heater is properly rated and grounded.

Home is where the hearth is / The hearth / Fireplace safety tips

We have yet to meet someone who did not enjoy the warmth and coziness of a fire in the fireplace. The fireplace, to be working properly and safely, should be properly maintained. Read more fire safety tips.

Tips to warm your home and enjoy the holidays with a fire is:

1. Have proper fireplace tools on hand, like a pick, brush and a shovel. The pick will help position the wood around the hearth while the brush and shovel will help make cleaning up the leftover ash quick. Do not have the tools on hand? It might be worth contacting your property management company (or landlord) to see if they can supply those and instructions on how to use.
2. New, dry wood is the best food for the fire and will keep the warmth for a cozy evening at home.
3. A fireplace screen will be helpful to keep the sparks in the fireplace and not on the carpet, rug, floor or a person.

A fireplace, under the proper supervision is a comfy, memory making staple during the holidays. Remember to never leave a fire burning unattended. A fire in the fireplace is not an intentional, constant, source of heat for the whole home (nor is an oven!), but rather something to look forward to on a cold day, after a long commute, or just an excuse to curl under a blanket with a cup of hot cocoa.

Vacations

For the snow bunnies who escape the Chicago cold for warmer weather, it is important to care for the home while away. Whether it is for a short weekend getaway or for the entire winter season. If your home or rental will be unoccupied for more than a day, it is recommended to turn your heat down…not off. An ideal temperature is 66 degrees, per the Chicago Building Ordinance. Low heat, or even heat that has been turned off, runs the risk of pipes freezing and bursting.  Another tip if planning on leaving is setting various lights on timers. This will give the illusion that your home is still occupied while you are away to discourage intruders.

Christmas Trees

If you choose to celebrate the holiday with a live tree, be sure it stays fresh and keep it watered. For if it dries out, it can become a fire hazard. Keep the trees away from hot lights and open flames. Artificial trees are a lot safer especially with modern LED lights that run cooler, but they sure do not give off that pine fresh scent!

Speak with one of our experts to find out how we can supercharge your investment.

Are you looking to lease your property and not sure what price to list? Here at Lofty, we’ve had the experience of listing hundreds of properties in the Chicagoland area. In this guide, we share exactly how to list your property like a professional.

Choosing a rental price for your home or condo can be a tricky task. You don’t want to set the price low and miss out, but you don’t want to ask too much. No one wants to be that house that has been listed for six months. Like a teenager without a date to the prom, this is something to be avoided at all costs. Staying realistic is the key, along with a little legwork and market research. As a landlord your goal is to minimize vacancy to boost profitability and reduce risks associated with an unoccupied place.

When tasked with setting an accurate rent price, your first instinct may be to charge as much as the market can bear. But there are some things to consider before choosing a rental price.

Know The Market

Market demand will dictate your rent price. To get the best idea of what the current market demand is in your area, assess value. A first simple step is to have a look at similar properties available for rent in your area to gauge what price they are listed for rent. From Craigslist to Zillow and even the classified section of your local newspaper—if you like to kick it old school—can be great starting points.

Determining Market Value

The best next step is to consult a real estate professional to secure a Comparative Market Analysis. A CMA will evaluate similar, recently rented units (called comparables or comps) that are near your property. These comps assist in establishing the current market value of your property. There are several factors to keep in mind when reviewing rented comps: price, market time, seasonality, location compared to your property, room sizes, amenities, and so on.

With these comps in mind, along with the active listings previously discussed, you are now prepared to analyze the data to achieve your list price. Get your analytical thinking hat on and strap in! Or leave it to the professionals at Lofty who offer you a free market analysis!

This process should be repeated each and every time you relist your property to account for any market shifts. Even the most experienced real estate professionals rely on an accurate CMA to determine the market price. For example, if there is a downturn in the economy the demand for rental properties may increase as people can no longer afford to buy their own homes and will choose to rent instead. A dip in the economy may also benefit landlords who own smaller properties and apartments as people look to downsize in order to save money. The general rule of thumb is that the greater the demand the higher the rent you can charge, and visa versa.

It also doesn’t hurt to be competitive. Offering a slightly lower price than the average comparable property in your area may win over a renter quicker.

Think Like A Tenant

Imagine your potential renters and how they are searching for their next home. If their max rent price is $1,800, they are likely to set $1,800 as their maximum search price. If you were to set your pricing at $1,850 or $1,900 with the willingness to negotiate less, you may be unintentionally missing out on potential renters.

Additionally, it may not add value to your listing to market your price ending in a $50 increment, like $1,850, since most search criteria increases in $100 increments. The $50 increment puts you in limbo with the inability to take advantage of viewers who are the next tier down. Take the plunge and lower another $50, it will pay off with a faster turnaround.

Rent Is Based On Desire

The desirability of your property will play a huge role in how much rent you can charge. If your property has very little amenities or upgrades or is in need of a lot of work, renters will not be willing to pay top dollar. The more attractive your property is, the more you will likely be able to charge. The following are some of the most sought-after features in Chicago, which should be taken into consideration:

• Vista – What will your tenants see when they draw their curtains in the morning? A view of Lake Michigan or a park is more desirable than a view of a the exterior of the building next door.
• Altitude – If your apartment is in a high-rise building, the higher levels are more desirable. Ground floor or garden apartments can be less desirable to some renters, due to security concerns and the possibility of flooding in heavy rains.
• Area – Value increases with square footage. In most cases, the greater area your property has the more desirable it is. There is one caveat though: how well your space is used plays a major role.
• Beds/Baths – Value increases in any market as bedrooms and bathrooms increase.
• Storage – From closet space to a basement or storage locker to a garage, any and all extra space is a bonus and should increase desire.
• Updates/Upgrades  – The more modern your property is, the better. Homes with modern, updated appliances are far more desirable than those with outdated features and finishes. Even ‘vintage’ can get old

The Right Price Is Attractive

If your property has been listed for a 2-3 weeks but you are not flooded with viewing requests, the price is likely a turn-off. Whether it is too high or too low, your audience will make assumptions. If a potential tenant thinks you are under-charging based on market demand, they may believe there is something wrong with the property.

You may find that using interest to find the “Goldilocks”, or perfect price point for your property is a solid tactic. Ideally, in the first couple of weeks that your property is new to the market you should receive 10-20 inquiries. And inquiries lead to showings!

Ideally, most landlords also want to make a profit. On average, a landlord pockets anywhere from zero to seven percent of the monthly rental income as profit. If the property is not benefiting you in some way, you might have set the rent too low, or worse, you might have over invested. Regardless of your goals, the right rent should, at the very minimum, cover all your expenses on the property. These include mortgage repayments (if you have one) as well as maintenance and repairs. If the value of your rental property does not meet or exceed this criteria, it may be time to consult an experienced, professional Leasing and/or Property Management service like Lofty to help get your investment back on the right track.

Speak with one of our experts to find out how we can supercharge your investment.

Here at Lofty, we understand that life can sometimes be tough for a landlord or property manager. You have to deal with a lot of issues that many people simply do not want to deal with. However, promoting a safe and secure living environment in your buildings does not have to be complicated. Here are some basic safety and security measures you can take to improve the safety of the home, units or complex for your tenants.

#7. Secure Entry

Door locks can vary widely in number and type from building to building. It might depend on the preference of the landlord and tenant. It may be important to discuss this together to come to some sort of agreement. The locks can be old fashioned and this may make the tenant feel less safe. Modern locks make the home more current and sometimes safer.

Lost keys do not have to be a scary situation. Partnering with a local, trusted locksmith will prove to be invaluable. They can offer fast, reliable services based on the needs of your properties. In the event of specialized key systems, additional deposits and fees included upfront will ensure you are not financially liable in the event of an accident or negligence.

#6. Secure Units

Though it may seem like common knowledge, urge tenants to lock their doors at night and when they are not home. Even if the building seems safe, they still need to lock their doors if they want to prevent an unwanted intruder. Regardless of the time the tenant has spent in the property, a locked door is a safe door.

Some tenants may be moving in with valuable belongings. As such, they may only be interested in buildings with security systems monitored by an off-site service. If a tenant is already occupying your space, and expresses an interest in having a home security system installed, consider footing the bill for installation in all units, as this can be an investment that may make your vacant units more marketable in the future.

#5. Safe Passage

Did you know that there are sometimes financial benefits to making your multi-unit property safer? Consult with you insurance adjuster to discover all the ways you may save money on your policy. Consider installing locks on exterior gates or fences around the property. Additionally, exterior lighting, especially in secluded, dark areas, can be a huge safety plus for your tenants. Proximity or motion sensors and a timer will ensure these lights are not wasting energy while contributing to the overall safety and security at your property.

Let’s face it: this is Chicago and the weather is always going to cause a problem for someone, somewhere in the city. If it rains and tenants are coming home at night, you might want to have no slip strips to prevent falling. The exterior lights can help here, too. Even inside the building, it helps to secure the stairs. If it is carpeting make sure it is secured with tackless strip, just as a professional would install it. This may help prevent accidents for which you could be liable.

#4. Private Eyes

Installing security cameras is another option for safety and security. From large apartment buildings where people might not know who is in and out of their building, to multi-unit walkups occupied by familiar faces, a prominently displayed security camera can be an effective deterrent for criminal activity. While some states have a one party consent rule for recording, Chicago is in Illinois, a two party consent state. That means you must obtain written consent from your tenants, and keep a record of it, before installing the recording equipment. If a security camera system is not in the budget, a decoy camera (that looks real but does not actually record) can also be a deterrent—at a fraction of the cost and without requiring the consent of your tenants.

#3. Fire Prevention

Fire safety is not a thing to be taken lightly in your properties. Placing a fire extinguisher in a glass case in common areas or hallways can not only raise the property value and aesthetic appeal of your building, it also makes it safer. Additionally, consider fire extinguisher storage in individual units as well.

Providing basic fire safety tips for tenants can also go a long way. Check out our complete review of fire safety tips.

#2. Communicate Together

It is important to maintain the professional relationship between landlord and tenant but also remain friendly and light whenever possible. Consistent behavior like this can help foster a trusting relationship that does not cause stress. Sometimes people’s livelihood, families, or pets are concerned. Landlords should be respectful of their tenant’s wishes and tenants should respect their landlord’s boundaries.

#1. Special Care

If the tenant is elderly, has a health problem, or has a pet, they may need special accommodations. The landlord may need to check on them sometimes even if it’s a friendly email or phone call.

When you have successfully curated a safer and more secure environment, share your safety tips with your tenants. Just knowing you took the time to put together safety tips on their behalf could help them feel comforted and secure in their new space. Also provide a safety tip overview before new tenants move in, along with their welcome package.

Here at Lofty, it is our hope that these measures help make everyone feel comforted and secure in your properties. The home should be a comforting place, a place one comes to at the end of their day to feel safe and secure.

However, we know that property management is not for everyone. In fact, we embrace that fact and are eager to help take the headaches of owning a property off of your plate if you find it is not for you. Talk to us today and find out how we can help you live the life you deserve.

Speak with one of our experts to find out how we can supercharge your investment.

Advertising your property to potential tenants is very similar to a job interview. You want your property to be displayed in an appealing manner that compels potential tenants to contact you for a viewing. Set your property up for success with a “fitted suit” and invest in great quality photography. You want your property to make a great first impression every time a potential tenant scrolls through the photo gallery. This is why photography really matters when renting your property. If your property photos are lacking in quality or number your property may be viewed as unappealing on the web.

Did you know that after specifics and price, photographs are the top three reasons that can make or break a potential tenant’s opinion of your place during their rental search? With that being said, strong photography can be the deciding factor in getting tenants from the web to the doorstep.

1. Curb Appeal

Most property managers and real estate agents are familiar with the terminology, “curb appeal”, but just in case, curb appeal by definition is the attractiveness a property exudes from a street view (curbside view, if you will). Well, you can create web curb appeal by having great shots of your property’s exterior displayed at the beginning of a photo gallery. After all this is the first impression a property has on potential tenants, who physically visit the property.

For single family homes make sure the law and hedges are well manicured for exterior photos. It is best to take exterior photos during a sunny day when there is great natural sunlight. However, if this is not a possibility, try having the photos taken at dusk with inside lights on. This will create a warm welcoming glow from the inside of the house.   

For apartments in large buildings an exterior photo might consist of an artful shot of the actual building itself showcasing the building’s address and main entrance. If it’s a high-rise with great amenities, such as a pool or track, those would also be excellent additional exterior shots, which could add to the property’s curb appeal.

2. The Inside Counts

Don’t skimp on interior photos! If you have a lovely picture of the exterior property, but lack an abundance of interior photos, an alarm goes off in the minds of your potential tenants. “Why aren’t they showing me the interior? Is something wrong with it?” Photographs shouldn’t evoke more questions but should instead provide answers to them. Basic questions like “What is this space like?” and “Can I see myself living there?” So don’t leave potential tenants hanging with questions or the likelihood of them calling for a viewing decreases.

To adequately answer potential tenants’ burning questions, create a virtual tour of the apartment through a photo gallery. Start with an exterior photo, then work your way into the property. Showcase the flow of the space by using photos taken from doorways into a room. Follow with photos from the opposite side towards the doorway to show off all your space has to offer! Giving potential tenants a 360 degree view from flattering angles can better demonstrate the layout of a space, and allows them to imagine living in your property.

3. Eye Candy

From image galleries that offer a virtual tour of your property to eye-catching advertisement photos, professional photographs of your property need to welcome potential tenants into a space. Professional photos offer a great backdrop to let potential tenants begin imagining all the future possibilities of living in a property’s space. Create a flow to your gallery, being sure to pick the best shots of your property. Not only can this give future renters a virtual tour, but also creates a story of which potential tenants would like to be a part. The key is in highlighting the best aspects of the property. For example: maybe there’s a wonderful built-in kitchen nook that gets exceptional sunlight during the afternoon… Renters will delight at the photo of this feature that you have displayed with pride!

4. Size Matters

Strong real estate photographs should demonstrate the dimensions of rooms in an ideal way. Unsure of how to optimize space? Begin by decluttering shelves, mantels, and other surface areas to create the ideal living condition and help visually open up the space. When surfaces are cluttered and packed with personal items, it can make the room feel crowded. Cluttered surfaces can also distract tenants from the actual space, as they are more focused on the things currently taking up the space.

Furniture and decor should also help emphasize the size and flow of the property. Tenants will enjoy visualizing themselves living in your property, so it may be necessary to remove or hide personal photographs before the photographs are taken as well as during viewings. This will allow potential tenants to focus more clearly on the space rather than the current occupants.

We have this piece of wisdom that we consider immensely important: make sure the toilet seat is down when the bathroom is photographed. While this has little to do with space, it has everything to do with creating an appealing image.

5. Time Saver

Photographs can work in your favor to separate potential tenants, who are actually interested in the property, from individuals who are not. This is why strong photography is so important to marketing your rental property. You want someone to be able to go through the image gallery and feel like they just walked through the home. Your property may be designed and built with care and taste, but if the photos are grainy with poor lighting and look like they were shot with a mobile device camera by an amateur in a hurry, you are certainly not doing it any service.

Get Professional Help

Truly, the way to good photos is by enlisting the help of a professional photographer. The images they make can help your property stand out for all the right reason on the web and marketing efforts for years to come. When you’re having trouble filling a vacancy, you can rest easy that your photos are not the issue. Eliminating one more variable in the equation will allow focus on accurately pricing the property.

Just like dressing to impress to land a great new job, great photos of a clean space work to create a great first impression to potential buyers. But maybe this just seems complicated or  sounds like too much to take on alone. Here at Lofty, we provide guidance and counsel to help better manage your investments. From high-quality photos and ads for your vacancy to first-class property and tenant management, Lofty can help to free up your time to live the life you deserve. Get in touch today to see how we can help your investment.

Whether you just need to find the right tenants for your investment property, or you want everything managed from top to bottom, we’re here to help.

Speak with one of our experts to find out how we can supercharge your investment.

It’s 2AM and you receive a panicked call from a tenant: it’s raining in their living room! Upon inspection of the leak, it appears a new roof is needed. How will you pay for the new roof as well as the interior water damage? How much should you have in reserve funds?

While emergency maintenance is every property manager’s worst nightmare, having an appropriate amount of reserve funds can help nightmares from becoming an unpleasant reality. No one wants to end up filing for bankruptcy because one property sat vacant for 3 months while another needed major repairs, draining reserve funds and digging a hole deep into debt. As you may imagine, crawling out from such a place can be very challenging. Inadequate reserve funds or a complete lack of them could quickly snowball into a financial crisis for property managers.

Fear not! We have some tips to help you determine the appropriate amount of funding for your property portfolio.

Reserve funds are necessary to handle anything and everything from routine maintenance and upkeep to emergency maintenance and unplanned vacancies. So how much reserve funding is the appropriate amount for you? Here are our pro tips, compiled by experts, to consider when determining how much to keep in your reserve property funds.

Quantitative Factor

The number of properties within your portfolio is important to consider when calculating the appropriate amount of funds to have in reserve. Each property should have its own reserve fund. This will insure each property has its own coverage for maintenance and unplanned vacancies. Since each property has different costs associated with it’s upkeep and expenses, having separate accounts will help keep each property’s reserve funds available to that specific property only. Having multiple accounts allows you to focus on each property’s small picture and how it fits into the bigger picture of your overall property investment.

If you have multiple properties operating out of one reserve fund it is easy to disproportionately attribute more or less reserve funds to each of your current properties. This could end up leaving you in a risky position, under the right circumstances. It is our advice to maintain appropriate reserve levels for each property. Working with one account per property allows you to maintain those levels individually, and makes things easier on you come tax season.

Maintaining a separate account for each property has other benefits too! Cash flow from your property portfolio is also an important aspect in regards to building reserve funds. It’s wise to have a portion of each incoming rental payment invested into that specific property’s reserve fund. This allows for continual replenishment of funds, which were used while also allowing for saving towards future maintenance projects.

Set standards for your tenant pool, then make sure you screen everyone to the same standard. Some of the worst tenants around come from a friend of a friend’s mother’s cousin. (What even is that?) Do not bend your requirements and screen everyone equally.

Age Factor

The age of the property is an important factor to take into account when determining reserve funds. Older properties are more likely to need repairs and possibly more upkeep. Meaning the older the property, the more reserve funds are needed to mitigate property risks. For example an older property may need to upgrade the plumbing or electrical as the originals were installed in 1922. However, this wouldn’t be a foreseeable issue in a newer property featuring plumbing that was installed in 2002.

Reserve funds come in handy on all types of repairs, from the predictable to the unpredictable. For example, let’s say your reserved funds are $5,000 and you’re planning on replacing some of the outdated plumbing in one of your properties. So, you’ve been using monthly cash inflows to build your reserve funds account to pay for these planned repairs. Your account now has $6,500 in it— now the surplus of $1,500 in reserved funds can be used for your plumbing repairs!

Conversely, if an emergency situation occurs then the $5,000 in reserved funds would be used. For example, a stove in one of your properties has stopped working and needs to be replaced. You pick-up a new stove for $500, which comes out of your reserved funds. This brings your reserved funds down to $4,500. You will now use your monthly cash inflows to build your reserved funds back to $5,000.

As a landlord you are open to liability all the time. Ensure that you have enough insurance to cover you in case anything goes wrong.

Operating Factor

Paying monthly operating expenses while properties are occupied isn’t a problem, as rental payments cover these expenses. However, what happens when a tenant moves out and the property sits vacant? How will you pay the mortgage, insurance, taxes and other fees? If you don’t have reserve funds or your funds are inadequate you will end up paying these expenses out of pocket, which could get expensive if the property sits vacant for months on end. These expenses can also be compounded if the vacant property ends up needing repairs.

This is yet another time when reserve funds are needed to protect your investment. While you are working to fill the property your reserve funds can be utilized to pay the monthly fees that would normally be covered through rental payments.

Growth Factor

If you’re thinking about expanding your property portfolio or just beginning one, but are in need of outside funding from either investors or a financial institution, many will have specific reserve fund standards you’ll need to meet before being approved. These investment reserve fund requirements allow investors to insure their return on investment, thus protecting them from a possible loss.

For example Quicken Loans requires six months of reserve funds. These funds must cover rental payments (including taxes, insurance, and other fees) as well as two months of reserves for every property already in your portfolio. It’s also important to remember when working with investors that many will require proof of seasoned accounts, meaning the money has remained in the account(s) for 60 days. This further safeguards their investment in your portfolio.

When expanding into new property investments remember reserve funds should not be used for investing in new properties. These are not funds to purchase more real estate. These funds are safeguarding each of your current real estate investments so be sure to only use reserve funds for those specific purposes (i.e. expenses due to vacancies, maintenance). It’s important to remember these funds are reserves for a reason, they are there for your property’s protection and are an investment in the longevity of your property and shouldn’t be used unless necessary or planned.

Do you already have all your reserved funds up to par and then some? Kudos to you! However, if you’re a little worried about your property’s ability to generate the necessary cash flow to maintain adequate reserves, give us a ring! We truly would love to hear from you because here at Lofty, we love to help. It is our goal to take the tedious tasks of management out of your hands and free your time to live the life you deserve while maximizing your investment. Get in touch today to learn more!

Whether you just need to find the right tenants for your investment property, or you want everything managed from top to bottom, live the life you deserve and let Lofty handle the rest.

Whether you are a fledgling investor, looking to make your first deal or a seasoned investor, chances are you could use a few tips to make your investments a success. Many people view real estate investment as a quick and easy way to make money, when in fact it requires a lot of work and know-how. Here at Lofty, we know that knowledge is power so we have gathered a list of habits that successful real estate investors have in common.

1. They Treat Their Investment Like A Business

Real estate is an investment, and successful investors know this. Like any successful business, they have a business plan with set goals. Outlining what you want to accomplish through real estate will help guide you toward what you want. Putting in place both short-term and long-term goals will help you keep your eye on the prize when you experience a minor setback—and you will probably experience your fair share. However, this is all part of growing your successful business. In addition, do not forget to add new goals as you accomplish the ones you already have in place

2. They Are Realistic With Time Management

Real estate investment can be time consuming and successful investors are aware of this. It is not uncommon for a young investor to bite off more than they can chew by taking on too many properties quickly. As experience grows, so does the ability to handle a larger portfolio.

The learning process, property management, and other details related to running a business will all take more time than many realize. When you are first starting out, it is likely that you will still have your regular full-time job and running your real estate investment business will be done during your off time. You could quickly find yourself overwhelmed if you do not take things one step at a time and pace yourself.

(If you’re just getting started check out our Top Ten Property Management Tips For Landlords)

3. They Invest In Their Education

Successful real estate investors do their research. They are constantly staying up to date on the current market trends. Not only that, they also stay up on what is going on outside of real estate: How is the economy; What is the unemployment rate; How are the schools in the area; What is the crime rate? All of these things affect real estate value and ultimately rent prices and successful investors know this. Staying up to date on these things helps you be prepared and aware of potential problems or potential opportunities.

It is somewhat common to think that if you can, you should. However, if you are capable but unskilled, the time it takes to complete a task quickly compounds. Consider your options and compare against the value of your time. You may find that it is cheaper to hire someone skilled than to attempt to save money by doing it yourself.

4. They Are Niche Experts

There is a familiar saying: “Do what you know,” and successful real estate investors agree. Becoming an expert in a certain area of real estate allows you to develop expertise that is important to long-term success in real estate. A diversified portfolio is important in any type of investment, so once you become confident with your expertise in one niche, use the same approach to mastering another. In his book Outliers, Malcolm Gladwell states that it takes 10,000 hours to become a master in a specific area. Keeping this in mind can help if you find yourself becoming impatient.

5. They Seek Advice From More Experienced Investors

Books are helpful, but a large part of real estate investment is learned through experience. Successful real estate investors know the importance of building a network of other people involved in real estate. Adding a mentor who is more experienced to your network will give you someone to bounce ideas off of and seek advice from. Think of your business network as your own personal “think tank”; a community of like minds who all want to see each other succeed.

6. They Operate With High Ethical Standards

If you want to be successful in real estate, expect to be in it for the long haul. In order to last in this business, it is important to hold yourself to a high level of ethics and standards. There are times where it might be easier to misrepresent a property or take advantage of a situation, but in the end the truth always comes out. In this business, a good recommendation goes far, but a bad one goes even farther, and can be incredibly damaging to your reputation. Successful investors know that important ethical business practices are imperative to creating a successful and long-lasting business. 

7. They Know Relationships Are Key

A major component of investing in real estate is working with people. And not just renters! Anyone with whom you have a business relationship should be treated with respect, courtesy, and patience. Successful real estate investors are also successful customer service providers. It is important to listen and pay attention to detail. Should a problem arise, handle it courteously and as timely as possible. Happy renters and other individuals with whom you have business or professional dealings are the best promoters of your business. In the same respect, maintaining a positive relationship with vendors is just as important; professional and prompt communication will insure that they continue working with you and referring others to you as well.

8. They Know Where to Best Spend Their Time

In general, successful people know the limits of their expertise. So, it stands to reason that successful real estate investors will eventually reach that point. One of the first people whose advice you want to seek is that of a reputable accountant. It is important to find someone that has a demonstrated understanding of current tax laws who you can trust to handle your books. Doing this right away will keep your finances in order and save you money in the end. Successful investors also establish a professional relationship with a lawyer whose services are useful in drawing up contracts, leases, or eviction proceedings should the need ever arise.

Real estate investment is hard work and if done correctly in the end it can be quite lucrative. If you just read this list and thought to yourself, “Wow, I really want to invest, but I don’t think I have the time.” Or maybe you just are not sure where to begin. Here at Lofty we are here to help you every step of the way. Whether you are a newbie that wants to invest but does not know where to begin, or a veteran investor that wants to take a step back and let someone else take the reins, give us call and learn how we will leverage our expertise and experience to create a plan that is right for you.

Whether you just need to find the right tenants for your investment property, or you want everything managed from top to bottom, live the life you deserve and let Lofty handle the rest.

You have a great property for rent in a prime location in Chicago, but you’re not the only one out there. What can you do to make your rental stand out from the others? Nowadays, it’s all about the amenities; those little extras that add more value to an apartment in the eyes of renters. Not only can this added value cause you to stand out more to potential tenants, but it can also mean increased rent and renter retention.

1. High-Speed Wireless Internet

Let’s face it: the internet has become a major part of life. It has become so important to daily American life that the most desired amenity feature among renters is high-speed wireless internet access. Most people have multiple devices, such as laptops, tablets, and gaming systems, that require simultaneous internet access. Renting an apartment that has high-speed wireless internet included is a huge bonus to most potential renters. It’s one less expense they have to worry about and gives them a sense of added value when considering your apartment.

2. Outdoor Space

We might be a little biased, but Chicago has the best summers. What better way to enjoy a beautiful summer day than to invite friends over to enjoy the day by grilling out on your balcony or patio. Outdoor space is a huge selling point to potential renters, so it’s important to evaluate your options. Maybe a patio or balcony is not a feasible option, consider a shared rooftop deck. A well-designed rooftop deck is just as attractive to many potential tenants as a private balcony or patio.

3. In-Unit Washer & Dryer

Nobody likes to go to the laundromat, so it is not surprising that one of the most desired amenities for renters is an in-unit washer and dryer. For many, the lack of an in-unit washer and dryer is a deal breaker. If your units do not currently have this amenity, it is definitely a good idea to consider. If in-unit washers and dryers are not something you are able to provide, an alternative option would be to provide a shared laundry space. Many potential renters do not mind taking their laundry down a couple of floors to the laundry room. This is still a better option than lugging it down the street to the laundromat.

4. Upgraded Kitchen

The heart of a home is the kitchen and one of the most desired amenities among renters is an upgraded kitchen. Potential renters are looking for things that will make life easier for them such as a dishwasher, garbage disposal, microwave, and a refrigerator with a water and ice dispenser. A great looking kitchen is important to potential renters as well. Style upgrades such as granite countertops and stainless steel appliances often top the list. It may not be possible for you to include everything but picking a few key items such as a dishwasher and, at the least, matching appliances can go a long way to securing your desired tenant with minimal market time.

5. Fitness Center

Healthy living and exercise can be very important to many people. Having an onsite fitness center is a very attractive amenity to many potential renters. This makes staying fit easier because potential renters don’t even have to leave their building, and it also saves them the trouble of having to pay extra for a gym membership somewhere. A fitness center does not need to be anything huge or elaborate. Most potential renters are happy with a bright airy room with a place for stretching, free weights, and high-quality equipment, such as a treadmill, elliptical, cycle, and a stepper. If a fitness center is not something you can provide, consider reaching out to a local gym to see if a partnership can be made.

As an investor, staying on top of trends and knowing which are the most beneficial to your potential renters is an important part to acquiring and managing property effectively. It can be stressful and time consuming trying to determine what is best for your next purchase or current property. Here at Lofty, it is part of our job to stay on top of the trends to know what renters are looking for in your neighborhood. We consider ourselves experts in knowing how to make your property stand out to potential renters.

Whether you just need to find the right tenants for your investment property, or you want everything managed from top to bottom, live the life you deserve and let Lofty handle the rest.

Many times it is easier to spot a bad contractor than it is to spot a good contractor. When choosing the right contractor we want to look at their reputation, work portfolio and how they communicate with us. The right contractor should be trustworthy, have a proven track record and treat us with respect.

Being Trustworthy is one of the most important traits when choosing a contractor since they will be working on your property and be in your home. So how can we make sure someone is trustworthy?

Reputation

Reputation speaks volumes! Ask friends, family and neighbors if they can recommend a good contractor.  Someone that does good work will come highly recommended. Check out online ratings as well. People love to talk about bad contractors which can easily help you narrow down your choices.   

Reputation really is everything when it comes to contractors. If they have a strong reputation it is likely hard earned and will speak volumes about them being credible and trustworthy.

Check examples of their work.

Occasionally you will run across a great contractor after seeing their work. Ever been to a friend’s condo and admired the new kitchen they put in? If a contractor has done a great job for a friend it’s likely they will do the same for you. Be sure to ask for their contact information at that time.

A solid contractor will have a portfolio with examples of their work that you can review. A reliable contractor will not mind showing you examples of their work.

Important Fact: Seeing examples of their work also helps you to decide if their style and yours can mesh well to accomplish your goals.

Communication

It is important that a contractor has the ability to communicate with you. Before you ever hire anyone be mindful of how long they take to call you back. Everyone gets busy so it is understandable when a contractor doesn’t call back the same day. However, you should expect a phone call within the next 24 hours. If they take longer than that to get back to you we recommend moving on and finding someone with a faster response time.

Important Fact: Even if a contractor gets back to you quickly, you also want to make sure that your questions are answered and that the contractor is patient with your questions.

Gut Instinct

Sometimes you meet a contractor and just something about them (you usually cannot put your finger on it) does not sit right with you.  No matter how great someone’s references are, or how impressive their work is, if you are not comfortable hiring them, don’t!  You do not HAVE TO hire anyone. It is your property and it is very important that you are comfortable with the person that you choose.

Nothing Beats Due Diligence

It is really up to you to do the research before you hire anyone.  You are letting this person onto your property and trusting them with costly home improvements. Make sure they can be trusted by checking references and before and after work. In addition, ask them to verify they have all the right business licenses and insurance in place.

Ask, check and then check some more.  Any contractor that is a good contractor will not mind answering your questions and providing you with proof of coverage. If they get annoyed with your diligence, run! You want a contractor that really appreciates having you as a client.

Final Tips on Choosing the Right Contractor

Once you have made the choice, be sure to get every detail in writing. Do not leave anything up to chance. A strong contract that outlines all the expectations and all the responsibilities of each party helps to keep everyone on the same page. Look to provide extensive and detailed explanations to ensure crystal-clear expectations.

One of the biggest mistakes property owners make is that they are hesitant to demand that everything be put in writing.  It can be hard to “speak up” when a contractor is promising something and say “hey, can you put that in writing in our contract”?  If it is not in writing then you cannot count on it. The right contractor will be more than willing to put all the job details in writing.

Lastly, do NOT pay for all the work up front. It is common for contractors to ask for a fee upfront to minimize their risk and cover job materials. If it is in the contract to pay a percentage up front that is fine. We do not recommend you pay more than 50% up front and do ot pay the remaining balance until you are 100% satisfied with the outcome. If you pay the full balance before the job is finished, you may have a challenging time getting them to finish the work.

You may already know and follow every one of these points. In that case, Lofty would like to congratulate you on your abilities to choose a great contractor! On the other hand, if you’re thinking to yourself, “wow, I would really like to take all of these steps,” but your life is already busy with plenty of other tasks and responsibilities, have no fear.

Here at Lofty, we love to help. We have a massive network of vetted vendors that will make sure you get the best product at the best price. Get in touch today to learn more!

Whether you just need to find the right tenants for your investment property, or you want everything managed from top to bottom, live the life you deserve and let Lofty handle the rest.

The choice to have a property professionally managed provides release from the headaches of trying to juggle too many things at once. The fact is, a large majority of us are stressed because we just can’t seem to find enough time in the day.

Here at Lofty, many of our clients have reached out to us because they simply didn’t have enough time to enjoy life on their terms. Others found themselves making the same mistakes over and over based on the fact they had no one with expertise to guide them to the right way to think about the issues at hand. Others still found a combination of issues resulting in a less than desireable return on their investment—there are a lot of folks out there who are or are planning to use their investment property as a retirement solution. That is hard to do when it is losing money.

There are three main factors that provide the reasons why property owners make the switch to a professional property management service.

Factor One: Expertise

A lot of property owners not only lack the time but they also lack the knowledge of how to deal with tenants. This is the kind of knowledge that accompanies experience. Professional expertise quickly becomes invaluable, especially in the instance of a difficult tenant.  Difficult tenants can sap your time, energy and money. A professional property management company will run pre-screening process that takes multiple steps in seeking only the right tenants.

And what if a difficult tenant evades the pre-screen? The property management company handles them! If you’ve ever had a bad tenant you know how much strife they can cause. Save yourself the hassle and hire a property management company! Many property owners find that handing over day to day management duties to a professional with expertise is an overall smarter way to do business.

Factor Two: Time

More property owners have decided to sign with a property management company in order to free-up enough time to really enjoy their lives. This rings especially true for owners who live more than 30 minutes from their property. It can be extremely pressing on your time to have to swing by for any reason other than an actual fire. Tenant phone calls can easily cross into the stressful and time-consuming territory.

There are lots of areas that need focusing on to effectively manage a property. It can quickly turn into a full time job. If there is a repair that needs to be done you will have to hire a contractor and schedule the repair. If you own more than one property, it is a burden to create a network of trusted contractors and vendors for the various tasks on your list.

When the lease is up, you will have to find tenants to rent the space! This means: producing your own photography; writing and posting your listings on all the various websites out there; field phone calls and emails, then coordinating showing times in a way that doesn’t have you driving back and forth for each one; consistently vetting all applicants; drafting legal documents from the lease to the security deposit receipt; collect and manage funds; perform move-in and move-out walkthroughs that ensure fairness and accountability; provide all necessary disclosures… Wow!

Property owners choose to have their properties managed professionally because they understand that even the greatest juggler has a limit. They also understand that the most precious commodity in any person’s life is time.

Factor Three: Profit

A professional property management company is all business and, as we all know, business is about the bottom line. There is no emotional attachment to tenants and there is no emotional attachment to the property. A quality property management company will do what is in the best interest of both the Owner and Renters, while keeping the bottom line front of mind.

This means that a property management company will:

• lead you to make informed decisions about what is best for the property; this essentially leads to an increase in overall profits.
• attract qualified tenants and keep your property rented; this includes pre-screening to ensure you get a reliable tenant who pays on time.
• help you manage your income and expenses so you increase revenue.

Reach Out And We Will Be There

If you own a property, we would love to hear your successes and horror stories. We would also love to have a conversation about how Lofty can help you get out from under your responsibilities and back out in the world, enjoying your life. Here at Lofty, we want to help you live the life you deserve!

Whether you just need to find the right tenants for your investment property, or you want everything managed from top to bottom, live the life you deserve and let Lofty handle the rest.

1. Only qualified tenants need apply!

Set standards for your tenant pool, then make sure you screen everyone to the same standard. Some of the worst tenants around come from a friend of a friend’s mother’s cousin. (What even is that?) Do not bend your requirements and screen everyone equally.

(Need tips on finding the right tenant? Follow our Ultimate Guide here)

2. Take a security deposit or admin fee!

It is fine (some might even say “kind”) to work out an agreement for someone to pay the security deposit or fee over the course of two or three payments. The most important point is to collect additional, upfront funds to mitigate risk should damages occur later on down the road.

3. Write it all down!

Objectively good, comprehensive lease agreements protect everyone. Even if the agreement is month to month, the lease is meant to protect both parties involved. It is the only smart way of doing business.

4. Provide a safe environment!

Make sure the building is secure. A good rule of thumb from a single family home to a multi-unit buildings is to provide secure locks, plenty of outside lighting and clear pathways throughout the common areas.

5. Get enough insurance coverage!

As a landlord you are open to liability all the time. Ensure that you have enough insurance to cover you in case anything goes wrong.

6. Know when to outsource repairs!

It is somewhat common to think that if you can, you should. However, if you are capable but unskilled, the time it takes to complete a task quickly compounds. Consider your options and compare against the value of your time. You may find that it is cheaper to hire someone skilled than to attempt to save money by doing it yourself.

7. Acknowledge all complaints with care!

If a tenant calls in with a complaint, it is your responsibility to let them know that you got the message. Make sure you let them know how you are going to handle the problem and keep them in the loop with the solution timetable.

(Checkout our blog about keeping renters happy.)

8. Disclose any issues to your tenants!

If there is mold in the building (or any other environmental hazard, for that matter) it is your responsibility to let your tenants know. Let them know what you are doing about it and put it in writing with proof of delivery. As a landlord you run the risk of being sued over environmental hazards if not properly disclosed.

9. Do not get emotionally involved with your tenants!

Make sure you establish a business relationship with your tenant from the beginning. Tenants tell all kinds of stories to get out of paying rent. There is a fine line that separates weakness from kindness. If the relationship is professional from the start your tenant will treat you in a professional manner, and appreciate your kindness all the more.

10. Maintain open communication!

Keep in touch with your tenants and give adequate notice when you need to get into the property. It is important to respect your tenant’s time, privacy, and the fact that they are paying you for the space.

Of course, you may already know and follow every one of these points. In that case, Lofty would like to congratulate you on your excellence in property management! On the other hand, if you’re thinking to yourself, “wow, I could really stand to improve,” but your life is already busy with plenty of other tasks and responsibilities, have no fear.

Here at Lofty, we love to help. It is our goal to take the tedious tasks of management out of your hands and free your time to live the life you want while maximizing your investment. Get in touch today to learn more!

One of the most important components to being a successful landlord is forming solid business relationships with your tenants. A solid landlord/tenant relationship consists of both sides respecting one another and appreciating what each of you is bringing to the partnership.

The key is following through on your end of the relationship: a landlord who shows they respect and care for the tenants by being accountable and responsive to maintenance requests; tenants who pay on-time and continuously work towards leaving the property better than they found it. It is important to avoid letting a sense of entitlement seep into the relationship on either side as it can cause offense and crumble this relationship.

Check out our guide to finding the right tenant.

Getting off on the right foot with your tenants early on will set the pace of the relationship for the life of the lease. There are several benefits to being more than a faceless person that collects rent payments.

Fostering a relationship with your tenants is beneficial because:

• Tenants that have good relationships with their landlords are more likely to take care of the property.
• Trusting relationships are better for business.
• Open communication can help you be proactive.
• If they feel comfortable in your place, there is a higher likelihood they will renew their lease and reside in your property longer.

Keep things “business friendly” to avoid letting the relationship become too personal. Building a landlord tenant relationship that is built on mutual respect can benefit any landlord.

Renters that “like” their landlords because they have a good working relationship are far more likely to take care of the property. Tenants that feel uncomfortable or disconnected from their landlords are less likely to notify them of any issues. Having open communication with your tenants so they feel comfortable to call and tell you if there is an issue with your property can really pay off when it comes to minimizing damages. A strong relationship with your tenants also helps to ensure your rent is paid on time.

Set The Mood

A good business relationship works best when established from the beginning. You want to be friendly and approachable but always responsible and consistent. This is your business, and your tenants are essentially your customers. Even if your tenants are not particularly nice or professional towards you, it is recommended that you remain professional and respectful, treating them the way you would want to be treated if the situation were reversed.

As the landlord, you can set the tone of the relationship by always being courteous, regardless of how trying the situation may be. Keeping that professional attitude can help you get through the tough spots that you may experience with your tenants. As with anyone, it is easy to be positive, cheery and agreeable when things are going well. The mark of great landlords and property managers is how successfully they navigate through challenging situations.

Be Upfront

If there is a problem with the property, disclose it at the beginning. State it before the lease is signed and advise as to a solution. Only make promises on which you intend on following through. If there is a problem, do your best to rectify the issue in a timely fashion, and be transparent with the steps you will take to improve the situation. Err on the side of over communication versus under communicating.

Treat your expectations similarly; make it clear to your tenants what you expect from them while they live in your property. Clear expectations eliminates confusion and avoids mishaps. Depending on local city ordinances, owners may be explicitly required by law to maintain aspects of the properties.

For instance, in Chicago it is the responsibility of both the owners and the tenants to remove snow and ice on public areas, with fines awaiting offenders. Consult your local ordinance to ensure compliance.

Strong Listening Skills

Listen to what your tenants want or need from you and do your best to meet the expectations within reason. Good landlords seek to answer, “Yes!” to any reasonable request, and people respect someone that pays attention to them and tries to meet their needs. Renters also appreciate a landlord’s willingness to discuss the reason why the request cannot be met — honesty can go a long way.

Accurate Record-Keeping

Clear and accurate record-keeping protects a landlord/tenant relationship from “he said she said” arguments. A strong document trail protects both you and your tenants, from the lease to emails back and forth throughout the lease period. This will clearly display your professionalism and organization which ultimately increases trust.

Respect Privacy

It is not okay to just pop in on your tenants unless there is an emergency. Give adequate notice for every situation, especially repairs or maintenance. Work with tenants to ensure they are able to develop a workaround in the event a major utility like water or electricity must be interrupted.

For top-notch customer service, send emails in lieu of calls or text conversations or send emails to recap calls or text conversations. This allow for a paper trail, allowing you and your tenant to review as needed. In some cases, you are also affording them the convenience of choosing response time. Another smart move is to follow-up on all communications within 24 hours. Always remember: the E in email also stands for Evidence.

People Skills

It is important that you are authoritative but within limits; you also want to seem accommodating and willing to willing to compromise and work with your tenants. It will help to build a healthy, collaborative relationship. Most tenants will appreciate your efforts and respond in kind. Other tenants will be difficult to work with but this is your business and you do have to take the bad with the good and not let emotion ever become part of the equation.

While these steps seem simple enough to deploy, they are all vital steps in forming a strong, effective relationship that will benefit the success of your investment. Of course, you should be available and keep up your end of the deal. Do what you say you will do, when you say you will do it.

The key to effectively building a strong landlord/tenant relationship largely lies on your shoulders. Take this part of your responsibility seriously and you will be rewarded with loyal, longterm tenants that will maintain your property like it is their own. If you are enjoying respectful, courteous tenants who pay on time and stay for three or more years, then you’re doing great!

Speak with Anthony Zammitt, managing broker of Lofty Real Estate to find out how Lofty can supercharge your investment.

Are you looking to lease a property in the Chicago area fast? Yes? Then you’ve come to the right place! Below you will find our simple guide on how to quickly lease your property in Chicago. We’ll share with you the 4 keys to leasing your property the right way.

Many of you may be veteran investors who know the drill already. Alternatively, you might be a first time landlord and not know what to expect. Whether you are the ultimate investor or the new kid on the block, these 4 keys will help you get your property on the market and back off of it just as fast. It may seem easy to rent a property, but there can be a lot of factors you wouldn’t think of that can make the whole process a lot trickier. You want to make sure that you have all the information to get the most out of your property.

#1. Pricing is Key – Don’t Price To High!
The most important thing to take into account is price. It can be tricky to know how much to charge for rent. Clearly, you don’t want to set rent too low, but if you price your home too high then no one is going to rent from you, leaving you with nothing but a vacant unit with a large price tag.

So how do you know what to ask for? There is no set agreed upon price for any given property. What you want to do is research what properties like yours generally go for and base you’re your price off of that.

You can also start at a slightly higher bracket and if need be drop the price. It does not have to be a fixed sum. Often times, if you start a little high and then lower the price, people will think they are getting a deal and be more likely to take it.

We also suggest you ask for multiples of a hundred. If someone decides that $2,000 is their budget, they won’t go for a place priced at $2,050. That extra $50 isn’t worth losing potential renters. We see properties rent a lot quicker when priced at multiples of a hundred. Make sure you follow this property leasing tip as this will ensure you are set up for success.

#2. Timing is Key – Know When To List!

You also need to get your timing right. When leasing your property, make sure you have a good grasp on what the seasons are like. Iin Chicago, for example,. you probably don’t want to be renting during the winter months. November through as late as April can see some serious snowfall. That’s just the type of thing that can cost you potential renters and potential cash. Show your property at its best, not its coldest.

Make sure you get the timing right so you can maximize your chances of leasing your property. It might be the case that in the nice summer months you are away or have other stuff to deal with. This is where a property management company like Lofty can really help to save you time and get your property leased. Don’t hesitate to contact us as we are always here to help.

#3. Presentation is Key – Know How To Show!

In addition to renting at the right time, you want to be renting in the right way. Make sure that you do a good job presenting your property so people will want it.

Get photos, and make sure they are good ones. If you are going to be asking renters to pay you to live there; you need them to see that it will be worth their money. The right kind of photos can really make or break a listing. If you your property looks great then people are much more likely to see it—they can’t rent it if they can’t see it. If you do not have quality pictures available then it really increases the chances that people will pass you by.

At worst, a lack of pictures indicates that there is some major flaw you are trying to hide. Make sure you use the right kinds of photos. Poor quality pictures are a sign that you don’t really care about renting/leasing your property. In addition, even if you do, a few small snapshots with your phone won’t do it justice. In some cases, they can make it look worse than it actually is. So use good quality cameras if you can.

Also, keep in mind what features of your property you want to emphasize. For instance if you are leasing a city apartment, you probably want to use mostly interior shots to display how nice the various rooms are. Often times an apartment doesn’t look that great from the outside, so don’t draw people’s attention to it if you don’t have to. With a house or Condo though, you might want to play up the yard so people can see the great opportunities for a garden or play area for the kids.

#4. Advertising is Key – List, List, List!

You may have pricing right, timing perfect, and you’ve polished up your showing skills like a pro! However, none of the work of pricing and proper presentation will do you any good if no one knows your property is on the market! Effectively advertising your property is the 4th key to renting out your space.

You are going to want to make sure you have ads everywhere. Put up signs all around the area. If you can, put ads in the paper. Go online to sites like Craigslist and post there. You want as many potential renters as possible so you need to make sure that all the people who might be interested know what’s going on.

Also, you can never assume people have a lot of time to shop around. Just because someone might be in the market to lease your property does not mean they will go through all of the trouble of hunting it down if you aren’t easy to find. They won’t want to spend their valuable time searching, so make sure they don’t have to.

If you’re able to tie all of these key tips together, you’re sure to get your property rented faster than ever before! We hope you have enjoyed our four keys to renting or leasing property the right way. If you have any questions or need any help be sure to email or call us. We are always happy to help property owners get their properties rented fast!

Whether you just need to find the right tenants for your investment property, or you want everything managed from top to bottom, we’re here to help. Speak with one of our experts to find out how we can supercharge your investment.