A Landlords Guide to Upcycling

Upcycling is the art of taking old, unfashionable materials and turning them into something much more chic and contemporary with little to no cost to the owner. Not only this, but upcycling can help keep your property looking modern without having to purchase new furniture every few years. Here’s a quick and handy guide to everything you need to know about upcycling and how it could help save you money while improving the value of your real estate investment.

Furniture:

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With furniture, upcycling can be as easy as sanding down some rough edges or applying a new cover to a battered old sofa. But, if you really want to make an impression with prospective tenants, don’t be afraid to get creative. Kitsch art décor can give your property a bohemian vibe while costing you just a few dollars in new materials. Retro patterns and unvarnished wood are great ways to give your property an earthy sixties vibe. Combine this with modern accouterments and you have a property young professionals would die for. The best thing is, providing they’re still in working condition, you can always upcycle your furniture again the next year to keep it up to date.

Fixtures:

upcycled fixtures in rental property

If you’re worried that your property may be too old-fashioned for the kind of tenants you want, then upcycling could provide the answer. An old lamp can quickly be turned into something hip with just a little imagination and some easy to acquire materials. Don’t be afraid to use your imagination, taking ideas from the plethora of upcycling blogs on the internet and making them your own. Old fans can become chandeliers, jam jars can become quirky lightbulbs and old advertisement signs can become a piece of contemporary art with just a few simple twists. It may sound like a cliché, but your imagination really is the only limit.

Exterior:

When it comes to upcycling the exterior of your home, there are even more options available. Without needing to worry about your old garden features appearing weather-worn, you can begin to really test your creative skills. Water fountains are surprisingly easy to make from old materials, yet they add character to your garden and ensure an interesting collection of wildlife all year round. Meanwhile, the addition of a garden swing or hammock made from indoor materials will give your property the kind of personal flair that insists prospective tenants take a seat and never leave.

When it comes to upcycling the exterior of your home, there are even more options available. Without needing to worry about your old garden features appearing weather-worn, you can begin to really test your creative skills. Water fountains are surprisingly easy to make from old materials, yet they add character to your garden and ensure an interesting collection of wildlife all year round. Meanwhile, the addition of a garden swing or hammock made from indoor materials will give your property the kind of personal flair that insists prospective tenants take a seat and never leave.

Summary

Upcycling is just one aspect of your property that you have ultimate control over. Don’t be afraid to play around with aspects of your property, but be sure to limit the level of personal touches. Try not to make the unit too orientated to what you like. It’s important that you bear the tenant in mind when setting up your property. As long as your upcycling serves a practical or subtle stylistic purpose, it could go on saving you money tenant after tenant.

3 Steps to a Rent-Ready Property [Infographic]

Thinking about renting out your property? There are a lot of considerations that need to be made before your property will be ready for a new tenant. The most important things to remember are to determine your needs first, to evaluate the condition of your property, and to document everything.

3 steps to a rent-ready property

contact us renter placement quiz

Working with a property management company eliminates almost all of this responsibility for you as the property owner. To find out how we can help you get rent-ready, and stay that way, contact us today!

Fall Is Here, Are You Ready?

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Is your rental property ready for fall?

As summer comes to an end, Minnesotans begin the process of preparing for the fall and winter seasons. Much of that preparation involves buying new back-to-school clothes, sealing up the windows, and making sure that all hats, coats and other winter gear are up to snuff. With all that preparation, homeowners often overlook the needs of their home due to the changing weather.

For example, while changing leaves are stunning for sight-seeing, they’re an absolute nightmare for your gutters. If you have a rental property, the last thing you’re going to want to do is come home from watching the changing colors to clean dead leaves out of the gutters. Luckily, when you work with Simply Residential Property Management, these things don’t need to be a concern. We offer this service at a nominal charge as part of our maintenance services.

Along with cleaning your gutters, it’s also necessary to blow out your sprinkler system. While it isn’t necessarily a difficult task, it can certainly be a burden to take the time out of your day to do this amidst all of the back to school hubbub. Are you going to want to take a day off of work to take care of this? In our experience, it’s easier and more effective for us to perform this service for our clients. After all, what is your time worth?

Lastly, it’s important to remember to check your furnace before the cold weather sets in. Unlike your air conditioner, you can check your furnace at any time and at any temperature. Don’t get caught off guard and end up with cold and angry tenants! We offer this service to our clients on a yearly basis to ensure they’re always ready for the season. You can have any of these services on their own, or we can do an annual maintenance walk-through to help you get a better understanding of what maintenance issues may come up in the next year. As we say goodbye to summer and usher in a beautiful Minnesota fall, don’t forget to consider the special needs of your rental property.

If you’d like us to take these tasks off of your plate, give us a call: 952-893-9900!

Renter Placement vs. Property Management: What’s the Difference?

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Many property management companies, like Simply Residential, offer both property management and renter placement services. For this reason, we often encounter questions about what a homeowner truly needs in order to rent out their home — do they need a property management service, or do they just need someone to help them find a renter? The right solution can often be found by a quick discussion about resources. Essentially, if you plan to use a renter placement service, you’re taking all legal responsibility for that lease agreement upon yourself once the renter has signed it. Property management services are different. For example, at Simply Residential, we don’t charge for renter placement with a management agreement, and we take on all risk and liability from a legal standpoint by actually signing the lease with the tenant.

do you need property management or renter placement

There are a few more distinguishing factors between renter placement and property management that have helped our clients decide what is best for them. Let’s start with the basics.

What is Renter Placement?

There is more to renter placement than you might anticipate right off the bat. This service should include marketing your property to help get the attention of prospective renters, screening applicants through criminal background and credit checks, and ultimately choosing which renter will be best for your rental property. That is the extent of the scope of a renter placement service.

If you feel confident taking on legal responsibility, even in the event of an eviction, and are able to draft a solid lease, this could be a good option for you. Keep in mind, there are going to be maintenance needs and emergencies that will arise during the time you rent out your home, so be prepared for those situations as well.

What is property management?

Property management services can vary from company to company. When we talk about property management at Simply Residential, we’re referring to the services that we provide to our clients, and they may not be the same as another company’s services. Generally speaking, property management covers the services provided by renter placement and adds on maintenance services, rent collection, lease signing and renewals, and anything else you may request in the management of your property.

Ultimately, the majority of our clients choose to take advantage of our property management services for the peace of mind they allow. It’s good to know that someone has things under control in your rental property, especially when you have other things going on that require your attention. After all, being a landlord is a big job, and nobody likes late-night maintenance emergencies and tracking down tenants for late rent. Those are the kind of details we thrive on at Simply Residential.

If you’re curious to find out what services you need, take our new quiz! Otherwise, give me a call at 952-831-5300 — I’m happy to discuss options and services with you for a more personalized set of information.

Ethics in Property Management: What You Need to Know

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If you’ve been following the news this last week, you may have noticed that the property management industry has been getting some less than flattering coverage. Unfortunately, in a burgeoning industry, when one company behaves unethically it can tarnish the reputation and perception of the industry as a whole. Luckily, cases of bad business practices aren’t entirely common among property management companies.

As a consumer, it can be hard to decipher which companies are acting in your best interests, or strictly in their own. However, it is endlessly important to ensure that the property management company you choose to work with not only abides by legal standards, but high ethical and moral standards as well. It comes down to the idea that just because you can do something, doesn’t mean you should. There are several reasons why this rings true across industries and relationships, the risks of associating yourself with unethical or unreliable vendors or organizations are very real.

Guilt by Association

When you choose to do business with a company, especially when it comes to property management where the company represents you as the homeowner, it’s important to ensure that their organizational values align with your own. In business, as in real life, guilt by association is a real thing. Working with a property management company with questionable business practices is a lot like washing a brand new red shirt with your white socks. The red from the shirt bleeds all over the white socks, changing the way they appear to others. In this instance, low ethical standards are the red dye. You could potentially tarnish your reputation if you employ a management company that isn’t exactly on the up-and-up.

Financial Risks

Your home is one of the biggest investments you’ll make in your life. As with anything that you spend a considerable amount of emotional and financial resources on, you shouldn’t hand it over to a company you can’t trust. Even if they offer guarantees and assurances, chances are unless they abide by a strong ethical code, they’ll find a way to legally get around it in the interest of making more profit. Be sure to do your homework when choosing a property management company to work with, evaluate their claims and do some background research.

Additionally, hidden fees and up-front charges are often the hallmark of questionable business practices. When you’re working with a service-based company, it doesn’t make much sense to pay them up-front with the promise of continued dedication to your property. If all the money from the transaction is made up-front, where’s the incentive to truly care for your investment?

Safety, Protection, and Trust

When a business only holds themselves accountable to their interpretation of legal standards without showing much concern for the ethical implications of their actions, it’s ultimately the consumer who suffers. A huge part of doing business with another person or company is the element of trust. Companies that don’t have strict ethical standards simply aren’t trustworthy.

For the most part, laws are put into place for the protection of the consumer. However, laws are often up for interpretation. There are also some things that are technically legal but truly unethical. Working with a property management company that dedicates itself to the best interests of their clients is absolutely essential — there is a lot at stake on the part of the homeowner.

At Simply Residential Property Management, we dedicate our time to providing the best service we can to our clients, while representing them and their best interests. Integrity is a key pillar in the foundation of our organization and we take pride in the fact that we work well within legal and ethical standards. If you want to learn more about the way Simply operates, or you want to hear more about the services we provide, I’m here to help! Send me an email and let’s chat: amanda@simplyres.com.

6 Tips for Advertising Your Rental Property [Infographic]

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Finding the right tenant for your rental property can be a challenge. These 6 tips can help you understand how to advertise your property to attract a great selection of renters.

1. Take awesome photos. Good photos can help bring your property to life, finding the best angles and showing off its best features. Try to make sure there are at least eight photos of your property, including a few exterior shots. It may be worth looking into hiring a professional.

2. Include a floor plan. Understanding the layout of your rental property will allow potential renters to visualize the space as their own.

3. Include details about local amenities. If your property is conveniently located near to schools, hospitals or shops, then say so. Features like quick access to public transit and shops can massively increase a property’s appeal.

4. Know your audience. Look at what types of property appeal to which kinds of people. For example, If your property is located in a student area, then tailor your message to emphasize the requirements you believe they will prioritize.

5. Be realistic about rent. Charging too much for rent can result in extended vacancies, leading to a loss of profit. Conversely, charging too little for rent can make you miss out on your max ROI.

6. Hire a management company. When you work with a property management company like Simply Residential, they handle the advertising from strategy through execution, leaving you with more free time to enjoy your earnings.

Advertising is key to the success of your property investment — make sure you’re doing it right! If you have questions about how to market your property, or want some help getting all the steps right, let’s talk: 952-831-5300!

Pets in Your Rental Property: Lovable or Liability? [Infographic]

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Whether or not you should allow pets in your rental property is a big decision. On one hand, irresponsible pet owners can cause more than their fair share of damage, and even well-behaved pets can have bad days. On the other hand, allowing pets in your rental home opens up a larger variety of potential tenants, and allows the property owner to charge more in monthly rent and in pet deposits.

At Simply Residential, we’ve worked with homeowners who allow pets, and those who don’t. This question comes up often. While we don’t have an official stance either way, we have found some helpful research. The infographic to the right details the current state of renting to pet owners.

Minneapolis and St. Paul are considered among the top 25 pet friendly cities for renters in the country, although comparatively fewer rental properties allow pets than there are renters who own pets. One of the most important things to remember when considering, or reconsidering, your pet policy is the anticipated amount of damage. This damage and the associated costs are often offset by a pet deposit and monthly pet rent. That information will tell you what the best and worst case financial situations will be if/when you decide to allow pets in your property.

To get a better understanding of what those numbers look like, contact us! We’re happy to discuss the pros and cons of renting to pet owners. Call us at 952.893.9900!

This article was originally published in Simply Residential Property Management Magazine.

3 Key Benefits of a Property Management Contract

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As consumers, we’re used to seeing ‘no contract’ as a benefit. Many of us even have our own horror stories about service contracts we’ve signed in the past — whether that’s for cell phone service, massage or beauty services, joining a gym, or simply getting water delivered to your office. Believe it or not, there are certainly still situations in which a contract is not only helpful, but necessary. It’s important to think critically about this concept when you’re making purchasing decisions — the first question you need to ask yourself is who is truly benefiting from the lack of contract, the consumer or the vendor?

When it comes to big purchases and big decisions, especially in the case of investments, you should take every precaution to ensure you’re protected. Your home is arguably one of the most important investments you’ll make, and it’s always in your best interest to protect that investment as well as you can. If you decide to work with a property management company and don’t sign a management contract, how can you really know that they’ll live up to your expectations and fulfill their duties and commitments? Before you make that decision, I want to tell you about three key benefits of entering into a contact with your property management company.

Protection

There’s a strange phenomenon between some property management companies that operate in Minnesota where they charge rental property owners the first month’s rent when they begin managing a new property as a placement fee. That’s not typical for the industry. Without a contract, especially if you’re paying up-front fees, what’s the company’s incentive to truly take care of your property? If you don’t sign a mutual agreement, you’re unprotected and so is your investment. Just like any big decision you make, especially one that relies on the promise of future services, it’s good business to get it in writing. You can hold your service provider accountable for the promises they make when you have them in writing, which leads me to the second benefit.

Accountability

Some property management companies run their sales process like politicians run their campaigns — they’ll tell you what you want to hear, but there’s no actual obligation to deliver. When you enter into a contract, the benefits and services promised are guaranteed in writing. That allows the property owner to hold their management company accountable for what they said they’d do. If you don’t sign an agreement, it doesn’t matter what was promised to you. If it’s not in writing, it doesn’t count — plain and simple.

Clarity

Deciding to rent out your property can be confusing, especially if it’s your first time. There are a lot of considerations that need to be made and some that aren’t immediately apparent. Your management contract should function as a guide through the process — what concerns can arise and how they’ll be dealt with. This will also help you decide what maintenance you want your renters to be in charge of, like mowing the lawn or removing snow, and what you want to take care of yourself or have your management company handle, like blowing out your sprinkler system or changing your furnace filter. When these considerations are put in writing, there’s no room for confusion.

While not being locked into a contract may be a benefit in some situations, it’s irresponsible to not sign one with  your property management company. Especially if you’re paying them up front costs for the promise of future services. In many cases, you’re not going to encounter trouble, but is it really worth the risk of being unprotected in the event something goes wrong? Personally, I’d rather be protected.

If you want to hear more about our property management services, give me a call and let’s chat: 952-831-5300!

How to Maximize Your Rental Property’s Curb Appeal

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It’s common knowledge that first impressions are important, and that you never get a second chance to make it a great one. This fact holds true for your rental property as well. When prospective tenants first arrive at your property, many will have already made a decision about whether or not they like it by the time the get to the front door. While having a warm, welcoming interior is a must, your property must also have a certain degree of curb appeal to inspire potential renters to get inside in the first place. So, how do you up your curb appeal? Here are a few easy steps.

Clean Up Your Act

A clean rental property is a happy rental property! When considering your curb appeal, take a the following into consideration: Is your property in need of a new coat of paint? Do the windows need washing? Is the lawn trimmed to a level that makes your property look lived in? As simple as they are, these factors can mean the difference between a tenant walking away or putting down a deposit there and then.

It’s OK to Be Garden Variety, Sometimes

Not all of us have green thumbs, but if you happened to be blessed with the talent, having a garden at your rental property will make it look beautiful to future renters and will also add value to the property itself. Bright flowers, an open garden plan and a well maintained lawn can all go a long way in ensuring those viewing your home can see themselves living there. If you’re less inclined to garden, simple hanging plants or even some cool new landscaping can also improve the perception of your property right off the bat.

Don’t Keep Up with the Joneses

While you can make the exterior of your own property stand out with just a few quick improvements, it’s more difficult when it’s your neighbor’s property that stands out for the wrong reasons. Sometimes you’ll have a neighbor that finds stray auto parts and yard gnomes to be the cutting edge in exterior design. There’s not a lot you can do in the way of improving their taste in decor, but you can find a way to help detract the attention of your prospective tenant from the neighbor’s home to your own. If it’s truly terrible, you may want to consider erecting a partition or fence to help block the view from your yard.

The Rental Property Golden Rule

On the same ticket as ‘treat others how you’d like to be treated’ — make your rental property a place that you’d enjoy renting yourself. Remember, the same reason this property seemed so appealing you in the first place could be the same reason tenants want to live in it. When trying to increase your property’s curb appeal, think of what would make it more enticing to you. A garden chair swing, hammock or built in barbecue could add that extra allure to prospective renters.

Deciding how much time and money you spend on your property’s curb appeal is up to you, but my experience in residential property management has taught me that the more time and care you put into the exterior of your rental home, the more appealing your property is likely to be. If you’re wondering if updating your landscaping or sprucing up your paint job would be helpful for your rental, I’m here to help — leave a note in the comments or give me a call at 952-831-5300.

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How Do You Determine the Value of Your Rental Property?

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When renting a property, deciding how much to charge for rent can be deceptively difficult. Sure, charging more than surrounding properties might pay off if you own the most desirable property in the neighborhood, but this can drive potential tenants away. Remember, while you’re looking to turn the most profit, tenants are looking for the best property, at the best price. The decision to rent out your home is a business decision at its core. As with any business, your pricing strategy affects everything. If it’s priced too low, you’re not getting the maximum ROI, and it can negatively affect the perception of your property to prospective tenants. If it’s priced too high, you run the risk of it sitting vacant for an extended period of time, effectively preventing you from making a profit at all. Finding a balance that’s fair to owners and to tenants may be trying, but there are a few key points to consider that will help you in the right direction. Whether or not you’re working with a property management company, it’s important to know how pricing works so you fully understand what your potential return will be.

Free rental property analysis

Location, location, location.

One of the most important factors to consider is where the property is located. Look at surrounding properties to see what kind of rent they are charging. Try to keep track of which properties in your area are being rented quickly and which are sitting dormant, and try to figure out what differentiates them. Of course, the desirability of a property is affected by its proximity to local amenities, such as schools, transportation, local attractions, and hospitals. The closer a property to these facilities, the more youcan justify adding to a rent. This is one of the key benefits of working with a property management company like Simply Residential Property Management. We know the market and are always up to date on the latest trends in the industry because that’s our job. Our clients don’t worry about all the leg work, we find the information and explain their options to them.

Seeing is believing.

A good view can greatly increase the value of a property. Looking out over a garden or field, a property will feel more enticing to prospective tenants. Meanwhile, a property that faces a parking lot or a highway will sometimes struggle to justify a higher rent.

Extra, extra!

When considering how much to charge for rent, extra storage space, a washer and dryer in the unit, central air conditioning, a fenced in yard, balconies, being pet friendly and off-street parking can all help justify adding a few extra dollars. Prospective tenants will likely have seen several properties, and many will be willing to pay that little bit extra for the added benefits your property has to offer.

Try to find a balance.

If your listing is over 21 days old, despite regular viewings, then it’s time to consider if you have been asking for too much. While it’s tempting to leave a high rent rating on a property in the hope someone will snap it up, tenants are more likely to continue looking than settle for somewhere they feel is overpriced. Likewise, if you set the rent too low just to attract potential tenants, you’ll feel the pinch further down the line when you aren’t experience the greatest possible return. Also, it could negatively alter the perception of your property, or attract tenants that aren’t the best quality. Working with a property management company in this respect is also a huge benefit. They have the resources to do more marketing and thoroughly screen renters before they’re offered a lease.

Know your market.

There are very few properties on earth that will stay the same value forever. When you set your rent, remember that this will be liable to change according to the current property demand. If you leave the rent at a higher price during a dip in the market, then your property will be seen as overpriced in comparison to those around it. If you keep your rent at the same price when everyone around you is raising theirs, you could be missing out on the chance to increase your overall yield. There is no such thing as a set-it-and-forget-it rental price.

Remember what’s important.

The most important thing to remember is that each decision you make regarding your property is first and foremost a business decision. Your property is an investment, and so turning a profit is the most important aspect of your role as landlord. Many property owners, especially those with large mortgages or construction loans, do not see an actual profit until they sell their property or until they have owned the property long term. If the property is not helping you pay down your mortgage, reap tax benefits, or if it isn’t putting money directly in your pocket, you need to reassess the amount you charge as a rent or potentially refinance your home. This is yet another instance where working with a property management company is beneficial. Think of that relationship as a business partnership — at Simpy Residential we’re connected to many realtors, financial advisors, insurance agents, and even lawyers. When our clients need advice or help, we have a strong network to refer them to so they know they’re working with someone they can trust.

If you’re sick of self managing, or if your property management company isn’t doing everything they can to increase your ROI, it’s time to think about making a change. It all starts with the basics — understanding what your property is worth and how much a property management contract will cost you over time. If you want to take that first step, get your free rental analysis today!