1. Increase rent following updates or improvements. Complete projects that enhance the current environment and raise the rent when a lease expires.

2. Charge additional fees for amenities or services, add a per-use or monthly fee for onsite laundry facilities or arrange for nearby parking and charge a monthly fee.

3. Test higher prices with vacant spaces, used by managers of multiple properties who can afford to test the market while a unit is empty.

4. Offer a discount in exchange for a longer term, extend leases by reducing the monthly payment, and include an early termination fee.

5. Create a revenue sharing arrangement on commercial properties; offer a discounted rent to businesses in exchange for a percentage of their earnings (works best in a growing economy!).

Tenants

Attracting the Best Tenants

The lifeblood of property management is the tenant base that leases your rental units. Whether you manage a residential complex or multiuse commercial building, your tenants are paying the right to occupy a space and receive the benefits associated with this relationship. To be successful, you should manage the property in a way that ensures that you have satisfied, prompt paying tenants renting for long periods. How do you attract the types that will pay on time, will not disrupt or disturb neighbors, will maintain their space properly, and remain your tenant?

It is important to look at property management from a sales perspective. Your responsibilities are to fill vacant space, maintain the property, and deal with tenants. An effective sales approach to each of these tasks will go a long way in determining your future as a property manager. You should market the property by looking at it through the eyes of your potential tenants, and that starts with a first impression.

As with any first impression, appearance is going to be important. In this case, both the property's appearance and your appearance should be examined to make sure that both would persuade a quality potential tenant to sign a lease agreement. Studies have shown that the top two factors that have the biggest impact on rental applicants are, 1) how the manager behaves and, 2) what the building and leased space looks like. Your physical appearance should be neat and professional yet casual. Using notepads and checklists show that you are organized and interested in providing good service. The building should be clean, clutter free and showing no signs of unusual wear or damage.

How you advertise the property will also affect the response you receive. If you run a print advertisement, choose a publication that your best potential tenants typically read. The local newspaper is a good choice for a general audience; however, you may attract many undesirable prospects, unless your ad is written well (see below). If you can afford magazine advertising, you can target tenants with specific interests. Placing an ad in the classified section in the back of regional or trade publications has been effective for some multi property managers. Distributing flyers at locations known for attracting the quality of person that you seek is another method to use. Announcing a vacancy in the neighborhood where your property is located can attract tenants through neighbor referrals. The important thing to remember is to choose a method that will allow you effectivelyto target tenants that will have the qualities that you are looking for. A tenant that is simply able to pay the rent will not generate a solid income. You should seek to create a community of positive, like minded tenants that will support the property for years to come.

What you say to attract tenants is important as well. The general practice is to describe property and list the price; however, if you place a general, run-of-the-mill advertisement you will likely get responses from a broad, run-of-the-mill audience. Property rental should not be viewed as a commodity trade (cash for space). You will be entering into an extended relationship, a minimum one year, so you will want to approach a "sale" of leased space with a long term attitude. Use terms in your ad that will interest the specific tenant that you seek. For example, if you are attracting tenants for a trendy metropolitan property use terms like "step up to your new lifestyle" or "around the corner from (the city's) vibrant nightlife." Tap into what appeals to your prospects. For commercial tenants, you can describe the area, talk about traffic, or explain the type of visitors that come to the property.

Choosing Your Tenants

Many property managers announce a vacancy and simply accept whatever applicants respond. However, a more effective approach to creating a profitable, enduring relationship with tenants is to choose exactly the type of tenant you want. This does not give you license to discriminate, that is against the law. However, property management is competitive and you have the right to run your business in a way that returns the greatest profit. That being said, by seeking specific characteristics among your prospective "customers," you have a good shot at having a successful business relationship with them.

Let us examine some general qualities that will help determine if an applicant will become a solid, reliable tenant:

1. Payment history. By examining an applicant's credit history, you can determine if he will pay promptly, how he uses credit, and his debt level.

2. Previous tenancy. An applicant that has a stable history of tenancy bodes well for a long term relationship, but movement year after year shows a pattern of instability that may indicate that this is not a good candidate.

3. Job or business history. A good history reflects responsibility, so look for a consistent track that shows achievement.

4. Personal and professional references. Look for character issues within the details of a reference's responses.

5. Future prospects. Try to determine if the applicant's future looks bright because it generally reflects a good prospect.

Maintaining Your Tenant Base

Once you have brought the best tenants in, how do you keep them renting your property? That will depend on several factors. The rental space must meet the needs of a tenant, and you must be able to depend on reliable payments and a tenant's concern for keeping the property free from damage.

Create incentives for good tenants to stay beyond the lease term. Make an offer with reasonable time, say three months, remaining on the lease so that, 1) there is time to make any necessary adjustments to the lease and, 2) the tenant has time to consider the offer and discuss it with you.

Some laws prohibit extending certain incentives so check with the laws in your jurisdiction or consult with an attorney. If it is lawful to offer incentives, think about ways you can extend a lease period, retain a prompt paying tenant, or bring in other tenants that are familiar with your renters. Here are some conditions that you might offer.