Rentec Direct

US Census 2010 data shows that rental vacancy rates are at the highest points they’ve been since the 1950s when the data begun being tracked.   Today rental vacancy rates are 10.6% or 1 in 10 homes do not have a tenant.  One might ponder; how can this be given all the foreclosures and new renters in the market?

There are 3 primary reasons and by taking a few critical steps you can cut your vacancy rates in half or more.  Read on if you are a property manager or landlord and don’t want to fall into the trap so many other property managers have in today’s declining real-estate market.

1. We’re in a recession. Despite our government telling us it was over in 2009; it’s not for most of us, especially those in the real-estate or property management business.  Because times are tight right now owners are skimping on maintenance such as putting off the new paint job or new carpet until next year when times are better.  That line of thinking will ensure that next year will be no better.  The maintenance has to be done eventually anyways, and if the money to do it can be scraped up to repair the problem today, the outlook for tomorrow will be much better because your vacancy rates are going to go down.  Fact is, tenants do shop and it is more of a tenant’s market today than ever, so if there is a better house available (that doesn’t need new carpet for instance), you are going to lose that tenant.  If you manage your own properties make the decision to keep up the maintenance, and if you manage somebody elses properties, provide them this compelling data so they will.  Pay specific attention to these items, in order of importance:  Exterior paint, front yard landscaping, front door and entryway, living area & kitchen.
    
2. Who is your customer? Running a property management software service we hear from a lot of property managers, owners, as well as tenants.  What is the #1 gripe from tenants these days we’re hearing?  “We’re not treated with respect”.  Property managers often forget that their customer is the tenant.  It can be easy for us to get wound up in the screening process and be so strict, for the protection of the property, that we reduce our friendliness to the prospective tenant.  Make your customer love you and they will not go somewhere else!  This starts with the application process, showing the property, and the continued relationship.  One huge mistake in this process we see time and time again is making the tenant wait on your schedule to see a property.  If a property cannot be shown until tomorrow and they can see a property today from your competitor you just lost a customer and have done a disservice to your client, the property owner, by further increasing their vacancy rate.  I feel it’s important to have the staffing available to bend over backwards for tenants and treat them as equals, or better yet, in the same way you would treat a property owner looking for a manager, in the utmost respect and courtesy.
    
3. Do it better. Great property managers and landlords today are providing services to their tenants to make their lives easier.  Make your tenants fall in love with you by providing them something that makes their lives easier and most importantly, something they won’t get if they move away.  Be creative, every market is different; however, here are a few examples that work in almost every market. 
    

   Offer automated ACH. Automated ACH not only makes your tenant’s life easier because the rent happens automatically, but it also increases your retention rate and level of importance for a tenants monthly expenses.  It’s also been observed that an automated payment isn’t as emotionally stressful to a tenant as if they have to write a check each month for what is often their largest monthly bill.
   
   Offer a tenant portal. 80%+ of your tenants today have online access and that number steadily grows every year.  Tenants check their bank balances online, pay their bills online, and merchants have embraced online tools to save them time and money along with providing an extra convenience to their customers.  These same tools are available to landlords now, and if you aren’t providing them and your competitors are, guess who’s making their tenants more happy which is equating to longer term tenants and lower vacancy rates.
   
   Keep up on maintenance. Even when occupied it’s important to inspect and maintain a property.  More often than not your tenants are not cleaning the carpets or painting the walls.  If the home gets run-down, even if it is the fault of the tenant, they will feel less happy with the home and always be eying a fresh new place to live that is being kept up.  There’s an emotional factor to a clean, maintained home that keeps tenants longer.

Vacancy Data Source:  http://www.census.gov/hhes/www/housing/hvs/historic/files/histtab1.xls

We’ve added some great reports, based on user feedback, to Rentec Direct.  These new reports are available to you today!  We base a lot of our development on user feedback.  If you have any ideas for reports which would help you manage your properties, please email them to us at support@rentecdirect.com.

• Account Summary – See all of your banking accounts in one spot with their total income, expenses, and balance.
• Property Summary – See all of your property accounts in one spot with their total income, expenses, and balance.
• General Ledger - Customizable general ledger report by property or account.  Fully sortable by your own custom dates.
• Current Deposits – Quick report to show you deposits held per property.
• Lease Expiration - Quick report to show you which properties have leases and when those leases expire.
• Rent Roll – At a glance report of properties and tenants, their rent due, and current balance.
• Vacant Properties - Quick report to show you all vacant properties.

You may have noticed the new right click interface within Rentec Direct, if not we posted about it here.  One of the primary goals of adding the right click interface was to be able to bring you new tools without cluttering the screen.

We’ve released our first set of new tools based on landlord requests.  Rentec Pro users can begin using these immediately.

Print Invoice – You can quickly print the most current rental invoice for any tenant by clicking the Tenants tab and right clicking the tenant, and choosing Print Invoice.

You can also print any historical tenant expense in invoice format by entering the accounting history for a tenant, selecting any charge, right clicking on the line item and selecting Print Invoice.  Invoices are generated in the same reports screen you are already used to.

Print Receipt - Additionally you can within the tenant accounting select any payment or credit made to a tenant, right click on it and select Print Receipt.  If you handle walk-in payments this is incredibly useful as you can post the payment into the system on the spot, and immediately print out a receipt for your tenant.

With the great added functionality of the latest web techniques like this new right click menu functionality, we plan to be able to implement many other feature requests from our users.  Keep them coming.

We’ve produced a new product demonstration video showing off the features and power of Rentec Direct in just a few minutes.  If you haven’t already looked through any of our product demos, this video gives a quick glance into the power, ease, and flexibility of Rentec Direct.  The video will quickly go through many of the highly used features of Rentec Direct, including:  adding a new property, moving in a tenant, handling and tracking deposits, posting payments and attachments, reports, and settings.

We’ve had a lot of signups for our property management software lately, and we wanted to help those wondering who we had in mind when designing Rentec.

We designed Rentec for individual property owners and investors who own and manage their own properties. Rentec direct is designed for you, the investor who may do property investing full time or part time and you own from one to one hundred properties.  The owners and designers of Rentec Direct are landlords too and we know what it is like to manage a handful of properties without the need or expense of paying a property management company.  We found the need to create Rentec Direct because there was no software application available that fit our needs fully as landlords.  As a current or potential landlord yourself, you may have experienced the same.

Rentec is built from the ground up to meet the needs of landlords managing typically between 1 to 100 properties.  Very rarely do we see a landlord or small team managing a larger set of properties, so we are able to fine tune the software to work best for this niche.

Another driving factor for us in offering Rentec for free is that generally we feel life has treated us pretty darn good.  I personally have the best family one could ask for, great friends, and live in beautiful Southern Oregon.  All this came from a lot of hard work, the help and support of our community and country, and perhaps a little luck.  One of our goals with Rentec is to give something back.  There’s thousands or more man-hours put into developing Rentec Direct, and we give away most of that for free.  It’s our way of contributing back to the landlord and investor community and saying Thank You in general.

Rentec Direct is FREE for individual landlords.  There’s no risk to try it out, so take it for a spin today.