This article is for those homeowners who have decided that they can not keep their current home and are seeking to move on, instead of trying to work out a solution that will stop foreclosure. The situation may be due to a new job in another state that requires a move, a precipitous drop in income that is expected to last long-term, or other circumstances. Because of their poor credit from the foreclosure and falling behind in other debts, however, these homeowners may have a difficult time being able to rent an apartment and start their lives over. Most landlords will not want to discover the fact that the homeowners are currently behind on their mortgage payments or had faced a very recent foreclosure. That will indicate to them that the apartment applicants do not take their housing payment obligations very seriously, and may pay the rent late or not at all. The foreclosure victims will have to find a way around the credit check, if they are serious about renting an apartment and proving their financial integrity.
One way they can do this is to find a landlord that they know, or talk to someone (friends/family) in the area that in which they want to move, and ask if they know of anyone that would allow apartment rentals without a credit check. The key is for the homeowners to let the potential landlord know that their credit is not great at the present time, and that they are not willing to damage it even further with more inquiries, but that they want to have an opportunity to start recovering their financial situation. A lot of landlords will be reasonable if the situation is explained to them very clearly, and if the former homeowners make a good first impression.
If the foreclosure victims do not know any friendly contacts in the area, though, they will have to offer the landlord an incentive to decide not to pull their credit histories and discover the late payments and foreclosure. For this purpose, they can offer an extra amount as a security deposit, or offer to pay an extra 2-3 months rent up-front, in exchange for the landlord not conducting a credit check. The offer of more money is a very powerful incentive for landlords, as they will be able to use the extra resources for current projects and investments. If the former homeowners need a "cover story" to explain their unwillingness to have their credit pulled, they can use the one in the paragraph above, or simply inform the landlord that they are very private and do not want to give out their social security number and financial information to anyone, since they have been a victim of identity theft in the past. This can be useful to explain their poor credit situation as well as the reason they can not give away any personal information that can be used to pull a credit report. Extra cash in the form of a security deposit or extra rent will usually help the landlord see things from the foreclosure victims' perspective.
The important point is to concentrate on the desire for personal and financial privacy, or the homeowners' intention to begin repairing their credit because of recent, unavoidable financial hardships. As well, it helps to offer the landlord a reason to trust them at their word. These tactics should take care of many of the problems for foreclosure victims attempting to rent an apartment after facing foreclosure, although they may have to speak with several different landlords who will lend an understanding ear in this situation. Money talks, though, and most landlords, for the right price, can be persuaded not to pull a credit report on applicants.
It is unfortunate that not all homeowners are able to save their homes from foreclosure, but each situation is different and needs to be dealt with in the homeowners' best interests. When there are no options left to prevent the foreclosure, or the foreclosure victims do not want not keep the property but can not unload it due to market conditions, adding another level of problems in trying to rent a new apartment just continues the humiliation and rejection that so define foreclosure situations. But even in these cases, with a small amount of planning and the addition of a few financial incentives, the homeowners can get a fresh start and gain some control back over their financial lives.
Mistakes that cause profit losses are often associated with property managers that are new to the industry. This simply isn't the case. Experienced apartment rental managers often learn what works early in their career and continue to use these concepts throughout their time in the industry. Unfortunately, they often fail to notice when their tried and true methods are no longer as profitable as they once were. They end up wondering what is going wrong when they notice their tenancy rates decrease and their turnover rates increase. Here are three issues to watch out for.
Failing To Provide Adequate Customer Service
While this error is frequently found in apartment rental owners who have underestimated the job or have spread themselves too thin, experienced property managers can make the same mistake. One of the biggest goals in this job is to hold onto the good renters as long as possible to keep that income coming in. This saves on time that would otherwise be used to screen tenants and saves money because there is no concern about having the unit sit empty or risking the loss of income with a new renter. This also helps to stabilize cash flow overall.
Taking a few extra moments right from the start to provide personal customer service goes a long way. Take time to learn the names of the renters, give them a tour of the complex and its amenities, and read the agreements with them. This demonstrates you value their support. In addition, both sides have a positive experience and each knows what to expect. Another good idea is to give new tenants a gift when they take over the unit. This can contain items such as a map of the area that includes public transit stops, coupons and contact information for takeout restaurants, and even a checklist that provides them with information for all of the things they may need to change over utilities and other items after the move. This makes the move easier for everyone and reduces the stress.
Improper Or Poor Maintenance Plans
Set up a pre-determined schedule to ensure that the property continues to run at the highest quality level possible. Property managers find that the number of afterhours calls decreases because there are less things breaking down in the evenings and weekends. The extent of the damage caused by these incidences is decreased as well because they are fixed in a timely manner and are found sooner. When you set up a maintenance plan, make sure to check with the building's residents to see if they noticed anything that needs attention. This prevents having to make numerous trips for the same apartment rental and it looks after issues before the tenants have to complain making for a far more positive experience.
Repairs and maintenance in any building is inevitable. When setting a schedule for repairs and maintenance, be sure to stick to these goals by providing a specific date. Sharing this information with the tenants is also highly beneficial. The apartment rental can be prepared if need be and they are aware that you are making a conscious effort to keep things up to par.
Not Dealing With Late Fees And Rent Payments Adequately
Some property managers attempt to avoid situations by allowing late rent payments to continue. Some will only send a letter of request or make a quick phone call. This simply doesn't work; it is harder for renters to hide if they have to look at their landlord directly. Renters who are rarely if ever late on their payments may have something going on, so take the time to ask questions. It could be an innocent mistake, but sometimes it may be that the tenant is dissatisfied with a situation and using this to get your attention. In this case, find out what it is and deal with the issues while working to prevent the same situation in the future.
When payments are not made on time, make sure to add on a fee as a discouragement to keep it from happening again. This will help to ensure that the apartment rental is paid for on time in the future. Property managers want to be careful here however. It needs to be large enough to be a deterrent, but not so large that it is unreasonable. Also, offer some type of incentive to promote prompt payment.
Many property managers regard these things as being a waste of time and money, but the truth is rather quite the opposite. By watching out for these three problems, you will notice the apartment rental's occupancy rates improve dramatically. It will also improve your reputation and save time in other areas, making these solutions well worth the effort. Both new and experienced rental professionals will notice a significant increase in the returns these solutions provide.
Both Nick Adama & Christine Okelly are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Nick Adama has sinced written about articles on various topics from Foreclosure Help, Bankruptcy Law and Foreclosure Help. ForeclosureFish.com has been designed to help homeowners locate the most relevant foreclosure advice that they can use to save their homes. The site contains several hundred pages of information and resources. Visit today and receive a free e-book describ. Nick Adama's top article generates over 90500 views. to your Favourites.
Christine Okelly has sinced written about articles on various topics from Disease & illness, Finances and Accident Lawyers. Christine O'Kelly is an author for apartment rentals along Lake Michigan are. Christine Okelly's top article generates over 135000 views. to your Favourites.