Nathan M

I am an online business providing software solutions to landlords and property managers. As such, industry acceptance and trust is an absolute must. I struggled with this decision for the last couple years on whether to take the leap and apply for BBB Accreditation. For anyone unfamiliar with BBB Accreditation it is an official seal from the BBB confirming a company is established, legit, honest, and handles customer complaints (if any).

Officially from the BBB website: If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards which include a commitment to make a good faith effort to resolve any consumer complaints.

Their accrediation standards can be reviewed here.

The upsides as I see them:

• The BBB is basically a 3rd party endorsement that you are a real business
• Being an accredited business is third party endorsement that your company meets all the standards above. Otherwise they pull your membership right?
• You get listed within their accredited business directory, and they refer business to you both electronically and over the phone if they receive inquiries about your market / location.
  
• If your not already listed on their site as an unaccredited business, it provides another link into your website that otherwise didn't exist which is good for SEO.

The downsides:

• Cost. I believe it's different in various parts of the USA; however, an online business forks out about $800/yr to be a member in the northwest.

I've read articles stating the BBB is an unnecessary entity since anybody anywhere can search out a companies reputation online, and that along with the cost itself of joining the BBB are what kept me on the fence the last two years.

I opted to go ahead for accreditation, and was approved just the other day, YAY!! Here's why:

Take my industry for example, our website provides property management software and tenant screening to property managers and landlords. I've done it, many times, searched for property management software reviews, and other variations. Unfortunatly there is not a single site out there with unbiased information. Most of the sites are owned by competitors just plugging their product, or advertising companies trying to retrieve and refer the sale. In my industry there are very few, if any, legitimate and unbiased third party reviews. I imagine the same holds true for most industries including real estate professionals.

When I have customers ask if we are legit I now have a place that is instantly recognized (the BBB) as a legitimate source of trusted information to refer them to.

Opinions on BBB Accreditation, Thoughts, Suggesstions? How does it work in YOUR industry?

Craigslist is an EXCELLENT tool for listing rentals, in fact, it's so excellent I've heard more propery managers say they get more leads from craigslist than from any other source. Managing my own rentals, I can say the very same thing. Craigslist is an excellent medium to get the word out about your vacancy.

The solution I want to address today is not to redress how great craigslist is for listings, but I want to show you how to make your listing STAND OUT from the rest.

• Pictures. The default craigslist layout is text only, formatted in old style times new roman font. As a buyer, seeing any ad in the default text layout that craigslist provides turns me off instantly. Craigslist provides the option of adding pictures; however, they show at the very bottom of the ad, which can often be off the page for people using smaller monitors, laptops, or mobile devices. They trick is to format your listing in HTML, and include a good image at the top of the page and more within the content to generate interest with the renter immediately.
  
• Format. Again, I'm going to pick on craigslist stock formatting. It's just text, and no better than a classified ad in the newspaper. Most listers are unaware they can make their ad better, and therefore that is why most listings on craigslist look so bla. Craigslist supports HTML within their listings, click here for more info. The challenge is that most HTML editors these days use CSS and other methods that are not supported by craigslist. There are services out there such as postlets or vflyer, or your property management software should have support to create a good craigslist ad using your previously entered property information.
• Details. Picture yourself as a renter when placing your ad. Are you going to be more likely to inquire about a property which has a good paragraph or two of details about the property and location, along with good pictures, OR the listing which says little more than the address and price? Of course the ads with more details get the attention. You have virtually unlimited space to include all the pertinent info. Be sure to include the following:
  
  • Pictures of the following: Front of house, living room, kitchen, master bedroom. If they are in good condition, also include the back yard, extra bedrooms, garage.
  • A description should include details about the home, neighborhood, schools, and local activities. If you accept pets, what kind.
  • Include all the features and appliances included in the property.
  • The lease terms should clearly explain what is required. For instance, 12 month minimum.
  • Be sure to include contact information for somebody who will answer the phone. More often than not a renter is going through a list of possible homes, and if the contact person doesn't pick up, they move on to the next listing and often never come back.
• Next Steps. Some users prefer to call or visit; however, times are turning towards online interactivity. It's a great idea to give the prospective tenant a method to apply online, or at a minimum take the next steps in setting an appointment with a click rather than a phone call.

While the points in this article are designed for property managers, the same concepts all hold true for property for sale listings as well, so these tips are equally valuable for agents who are not also property managers.

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The author is a founding member of Rentec Direct, a property managers, and a business owner. Rentec Direct provides property management software which includes ach for landlords, tenant screening, and a marketing module to assist with creating fabulous craigslist ads (totally free).

Earlier this year, a bill named H.R. 5297: Small Business Jobs Act of 2010 amended tax reporting rules for landlords. Section 2101 establishes that, “a person receiving rental income from real estate shall be considered to be engaged in a trade or business of renting property”. Previously unincorporated landlords were not considered a “business” and therefore complicated tax reporting rules that generally only applied to corporations did not apply; however now they do!

While this bill expands government (the IRS specifically) and increases administrative costs to taxpayers to the tune of 3.3 billion dollars per year, its stated intent was to help small businesses. Unfortunately landlords have got caught in a political crossfire and now have a significant new tax reporting burden.

Here’s how to comply. This law takes effect for all payments made after December 31, 2010. Be prepared by following these steps.

1. Before hiring anyone who may bill for services greater than $600 during the year for their service, have them fill out and provide you with a W9 form. Do not do business with them until they return the form otherwise the IRS has heavy new penalties they will be imposing next year. Retain these forms, or best yet, scan and upload them to your file library for safe keeping.

2. Retain complete records of all expenses from each service provider (vendor). You are required for 2011 taxes to file a 1099 for any vendor whom you have paid greater than $600 through the year. The easiest way to maintain these records is with good property management software. With Rentec Direct you simply go to the Properties tab, and click Post Expense.

3. Prior to January 31, 2012 you are required to send a 1099-MISC to the vendor, and by February 28th a copy must be sent to the IRS and State. This is made easy with Rentec Direct’s 1099 assistance. During January 2012 provided all vendor expenses were entered throughout the year, simply click to print your 1099s with no further work to do.

Remember, these rules are for tax year 2011. This means any transaction after December 31st, 2010. CPAs, accountants, and tax preparation firms typically charge from $50 – $100 per form, plus hourly for research to compile information which can cost landlords thousands, possibly tens of thousands in tax preparation costs if you have them do this task on your behalf. By being prepared and following the simple steps above you can eliminate this potentially massive cost in your 2011 tax return.

HR5297 information obtained from: http://www.govtrack.us/congress/bill.xpd?bill=h111-5297

Some say to keep business and personal completely separate. Others feel that practice is hogwash. I tend to lean towards keeping them separate except around Christmas time. If I've seen the property has been being taken care of I really enjoy giving a gift around the holidays. It's often sometimes as simple as a discount on rent for the month. Generally its reserved for longer term tenants.

Anyways, this is just a quick note to stimulate discussion rather than to go on and on about something to make a long blog post. ;) I would love to hear other property managers takes on the topic.

My feeling is that it generates long term good-will and therefore longer term tenants, which means less vacancies, which ultimately means better return on the property.

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The author is a founding member of Rentec Direct, an property managers, and a business owner. Rentec Direct provides property management software which includes ach for landlords, tenant screening, and online documentation and file storage.

So there's a bit of a misconception out there for landlords, especially, private landlords who aren't incorporated that it is difficult to do a proper tenant screen.  I've heard not just from my friends in the industry but from countless customers things like:  "I'm not allowed to get credit reports", "criminal data is only available to PIs and police", and "it's too expensive".  I must say I can debunk all those myths in about 30 seconds!

Simple fact is, all these reports are available TODAY to landlords, as well as property managers.

• Credit Reports
• Criminal Reports (nationwide, state, or county)
• Eviction Reports
• Judgments, Liens, Bankruptcy Reports
• many more..

The cost is often completely paid for in a $25-35 application fee which virtually all states allow for.  To do a good background check you would do at minimum Credit and Criminal, and expect to pay about $17.00 for this.  A $25 application fee covers your cost plus some.

Another thing I've heard is "it's too hard to get setup", or "it requires a site inspection".  False, and True; however, the site inspection can be easier than you may think.  I'm not sure how all other companies do it, but Rentec Direct provides a single page form you can have a neighbor or friend fill out on your behalf which replaces the typical expensive and long wait a typical site inspection carries.  There's no costs, and the entire application/setup process takes no longer than an hour.  Literally it's not unreasonable to get setup and operational the same day ordering credit & criminal reports just a few hours later.

I think I just debunked the myths.  Rentec Direct isn't the only tenant screening outfit out there; however, it's the only one I have access to, so I created a video using our system on just how quick and easy it is to order background reports.  Better quality tenants = better quality income.  Better quality tenants = fewer legal expenses.  Better quality tenants = better property care.  Better quality tenants = Huge Benefit!

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The author is a founding member of Rentec Direct, an property managers, and a business owner.  Rentec Direct provides property management software which includes ach for landlords, tenant screening, and online documentation and file storage.