In our ever-evolving industry, the property management clients’ needs come first and drive the focus of technological advancement. Round-the-clock accessibility that recent technology provides caters to the renters’ needs for convenience without sacrificing customer service. Technology within the residential property management industry helps to increase response time and efficient communication, providing a platform through which requests are answered promptly and essential management tasks are undertaken with little to no hassle.

#6. Easier and faster.

Management software has become an efficient way for property managers and property owners to access powerful tools for effectively managing the rental properties for which they are responsible. Technological developments like property management software make detailed tenant and property information accessible virtually anywhere.

A modern property management company has tons of useful software products available to make managing property more efficient. With being a society always on the go, advanced property management companies, like Lofty are embracing the use of technology for their owner and tenant clients alike. Useful, web-based applications can manage everything from contact forms to live chats, listed available properties, tenant screening and applications… Lease and other agreements can even be signed online—this is helpful if you have to move out of the country for work over a weekend, and need help managing your property. In fact, there are ways to “link” these individual components together to build systems that generate feedback and manage the entire property manager workflow in harmony! Do you have goosebumps!?

Because everything can be linked through the internet, property managers can receive alerts at the same rate of transmission as a text message. Mobile connectivity ensures that clients don’t have to wait long for a response. Faster response time mean reduced friction when something unexpected happens, and allows property managers to handle situations as they happen.

#5. Reduce user error

The right property management system provides effective accounting functions and reports that will replace any double-entry errors, and the old fashioned pen and paper. By automating property management tasks, important information is archived through the redundancy of computer processes. Also, utilizing live error-checking features ensures less mistakes are made, and there will be more time to focus on other projects. Come tax season, accountants love those who can effectively take advantage of quality accounting software.

#4. Added value for tenants

Whether it is a request for maintenance work when the washing machine breaks down, a rent payment is due or to simply review their lease, property management software offers online portals as a means of communication between the tenants and the property management company. This communication hub is accessible anywhere, 24/7, and can give owners a place to get a high-level overview of their property status at any given time. By using the property management software’s online tenant portals correctly, the situation can benefit managers, owners and tenants alike by leveling the playing field and allowing each party the advantage of clear communication.

#3. Convenient payment online

With online rent payment solutions software, property management companies, property managers and property owners no longer have to wait for rent checks to get delivered through time-expensive methods like mail, courier, or delivery services, let alone the frequently awkward and inconvenient hand-delivery! Paying online is easier for both tenants and managers when secure ACH or credit/debit card online rent payments are used. Secure online payment gives tenants the opportunity to easily make their rent payment from work, home or anywhere they have an internet connection. By making payment as convenient as possible for all parties, and as secure as an in-person meeting with a teller, quality, modern property management software solutions allow the excuses to just melt away.

#2. Marketing through Social Media

Social media has become more than just a platform for friends and family to keep in touch about life events. It creates a platform for businesses to maintain constant contact with any subsegment of the planet’s population, maximizing virtual awareness and the target audience’s ability to stay proactive. Social media management software allows a residential property management company to market to multiple engagements using campaigns that deploy in multiple social channels at once. With the ability to announce, promote, engage and share your company’s skills as well as your residential inventory to attract new potential tenants all at once, there are endless opportunities to grow brand awareness and create new business!

#1. Property Protection

Using property management software makes background tenant reports instantaneous for property managers, owners and leasing agents. Instant access to tenant screening reports allows managers and property owners review applicant backgrounds including criminal, credit, and eviction history in order for the property owner to make an educated decision about the potential financial responsibility and behavior of the person or people that seek to reside in said owner’s property. By making applicant screening accessible, property management software allows property managers and owners to select the most qualified tenant who will maintain the rental property, much like their own home, respect the agreed upon lease terms and pay their rent on time.

Developments in technology have paved the way for property managers and property owners who are seeking more efficient processes to streamline their business and boost profits. By incorporating the latest property management software applications into their daily operations, property management companies can evolve to become more efficient and effective, industry-wide. Not only have affordable property management systems been developed to make managing rental properties online easier, but today’s renters are seeking and appreciate the convenience of online services provided by their property management company or landlord.  Technology within this industry has changed and evolved to be convenient, cost-effective, and efficient for property owners and/or property managers to provide extra services to their tenants, organize their data and improve their business processes.

Here at Lofty, we pride ourselves on existing on the leading edge of property management software technology, and we use it daily to enhance our client’s experiences. The purpose of technology is to make tasks easier to perform, and there have been many advances in property management systems to the benefit of the client. By automating a lot of the tasks that can bog down personnel, Lofty is able to pay more attention to our clients’ needs and create a customer service experience unsurpassed in property management! Talk to us today, and see 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.

Another Chicago winter has crept up on us! Luckily, fall is the best time to prepare your property for the winter with a bit of maintenance. Here at Lofty, we feel it is better to be proactive now than to have a possible emergency issue arise when winter really shows up to get it done. For your benefit, we took the liberty of putting together a list of pre-winter to-do’s that are widely considered to be standard home maintenance, but easily overlooked.

The Great Outdoors

Nothing battles the elements of winter more than the exterior of your property. Inspect for any leaks or cracks throughout spring, summer and fall. If identified, these should take precedent to repair because water can and will find a way into them before it freezes and expands, quite literally creating a bigger problem. Also, take a close look around the doors and windows to see if there is any torn weather stripping, loose caulk seals, or gaps where the doors and windows meet in the frame. Many times, a simple and cost-effective solution is applying a renewed bead of caulk around the seals. Of course, take care not to seal the opening that is supposed to be there. You may laugh now, but it is unfortunate and very frustrating when it happens. If you encounter an issue that seems to exceed your abilities, don’t hesitate to reach out to a professional. With proper maintenance, your exterior will be able to withstand the elements and maximize energy efficiency through what will inevitably turn out to be another harsh, Chicago winter.

Get Your Mind Into The Gutter

Throughout the year, gutters collect all sorts of debris. In the fall, this really kicks into high gear as the trees first change from all types of green into beautiful, warm tones only shed their foliage and help create those spooky shadows just in time for a dark, cold Halloween night stroll. The drawback, besides scaring yourself into running in terror from nothing, is those falling leaves can really clog the gutters.

Clogs inhibit the effective job of these otherwise efficient drainage systems which can ultimately cause load bearing issues of accumulating snow, dangerous icicles and ice dams, and leaks when that ice finally finds a way inside. Before inclement winter weather settles in, it’s best to clear gutters and any other drainage systems of leaves, sticks and other debris from your property. It’s a dirty job, but somebody’s gotta do it!

If you already have cleaning out the gutters on your to-do list, why not take a peek at the roof while you’re up there? Inspect for loose, damaged or missing shingles and replace them before the winter months arrive. A strong roof will help ensure your rental property can withstand the weight of what winter may bring.

Slip & Snowfall

Snow can be so romantic when imagined as tiny, beautiful intricacies, slowly falling from the fluffy clouds only to melt on the tip of your nose. In Chicago, we know that snow is nowhere near as innocent. Piles and piles of the stuff to move and move again, causing aches in muscles you didn’t realize you had, and making each trip outside an award-worthy act of bravery and valor. As such, it is important to have a sense of urgency about securing the details of snow removal for your property ahead of time.

Whether it will be you, the owner or landlord, your tenant, or a professional snow removal company, it is best not to leave this detail dangle until the first snowflakes fall. Chicago laws mandate all walkways be cleared of snow and ice, and a fine may await those who fail to comply. Here at Lofty, we understand the need for clear sidewalks and are happy to coordinate the snow removal for our property management clients who are interested in this seasonal service.

Fall Foliage Fun

Another fall maintenance task to consider for your rental property is to rake up leaves and other autumnal detritus before the first snow falls. Once the snow begins to melt, any leaves still on the ground begin to rot against grass and can leave dead patches come springtime. This can be unsightly and costly to repair. The fall maintenance of your landscaping can preserve your property’s curb appeal for spring, just in time for new prospective tenants—especially if a lease is soon to expire!

A quick trim of branches, shrubs and hedges can reduce breakage and damage under the weight of accumulating snow and ice. Shearing vegetation growth that comes in contact with  the exterior of your property or another structure (for example, a fence) can assist with prevention of damage from bitter wind storms. The work of trimming and pruning your property’s trees, bushes and hedges late in the fall can really take the edge off springtime maintenance and make things easier when spring arrives as your plants can begin regrowth with a fresh start.

Winter Warmer

What’s one thing every property owner wants to avoid during winter? Burst pipes which can cause all kinds of water damage. Fear not, there are measures to avoid this dreaded dilemma! By wrapping otherwise uninsulated water pipes with foam sleeves, the running water itself can act as an antifreeze agent. In the event your property will be vacant this winter, keep the thermostat set to a minimum of 55 degrees and keep your mind set at ease. As part of property management services, your property manager should be maintaining and properly monitoring temperatures in vacant units, as well as any residences containing a tenant that will be gone for an extended period of time.

While we’re at it, if your property has a sprinkler system, be sure to completely empty or drain them of any leftover water. Water left in the irrigation system will freeze and can lead to burst lines. Not a huge deal in the dead of winter but it can lead to an extremely strange and costly situation come springtime. You wouldn’t want to unintentionally turn your garden into a bog, would you?

The Heat Is On

This one is a biggie—a furnace is absolutely essential in Chicago! If you have a radiator, it can be bled to alleviate malfunction. However, by 2015 most properties have been retrofitted with gas forced air furnaces for heating in the winter. After months of going unused, a tune-up for your furnace may be a necessity. Here at Lofty, we offer thorough furnace tune-ups to all our property owners that include the following:

• Clean and adjust burner assembly.
• Clean ignition assembly.
• Replace Thermocouple on Standing Pilot Furnaces.
• Inspect heat exchanger or elements.
• Monitor flue draft.
• Test safety controls.
• Clean and adjust blower components.
• Lubricate all moving parts.

A broken or malfunctioning furnace can be quite unpleasant for you and your tenant, especially during the coldest months of the year. The best service people book-up quickly, and can result in very long wait times and be quite pricey for emergencies. worth the preventative maintenance tune-up for your rental property, your wallet and the warmth and happiness of your tenants!

As our Chicago summer is now only a memory and fall is quickly turning into winter, we are also counting down the days until spring. Our property managers at Lofty are well equipped to offer assistance and recommendations with your “winterizing” property maintenance. It’s kind of like we are all in this together. Proper property maintenance going into winter can help minimize any cold weather type issues and that’s something else to toast to come New Year’s Eve!

Speak with one of our experts today to find out how we can maximize 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.