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Chapter 8
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G E T T H E S C O O P O N … Knowing your rental market ■ Pricing your prop- erty competitively ■ Creating catchy advertising ■ Knowing where to advertise ■ Creatively filling your vacancies in a down market ■ Identifying
and understanding the ideal tenant ■ Fair hous- ing as it applies to marketing
Marketing Your Rental Property
D etermining the rental price for your invest- ment property is an important step before you begin marketing your property and sign-
ing a new tenant. After reading Chapter 5, you know that before marketing your vacancies, you must have the property in pristine condition to attract a quality tenant. You have to do your homework and research the rental market to determine the current value prior to advertising. Before you can begin marketing your available rental, you also need to set your asking price and have your applications and lease paper- work ready. You need to know the appropriate secu- rity deposit to request and the entire move-in cost and what other expenses the tenant may incur, such as utilities or parking. When you begin to market the property for rent, have your marketing file as well as your written policies and procedures easily accessible.
After you determine the price for your up-and- coming rental, you need to have a marketing plan.
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You want prospects to call and view the entire property inside and out. Hold their interest by selling the features of your prop- erty. Take it a step further and have them fill out and return the rental application promptly and completely. By having the prop- erty in excellent condition, being organized and prepared with your paperwork, and pricing your rental competitively, you will be on your way to having a quality tenant.
Determining the appropriate rental price Setting your rental price is an important decision and what you decide depends on your situation. If you have taken over a rental property with tenants in place, you may not need to mar- ket a rental right away. However, you should know the rental value when you purchase the property. You may choose to raise your tenants’ rent appropriate to the market.
If you price the property too high, it will sit vacant and you will have a loss of income that you will never be able to recapture. Usually, you need to price your rental according to the current market. Tenants who are willing to pay an above-market rent for a property usually have bad credit or have been forced to move. Of course, if your market has more demand than supply, even with a high rent, you probably will receive several applications as bidding wars occur.
Find out what comparable units in the area rent for by checking sources where other landlords advertise. A compara- ble property is a property that is similar to your rental property. They may be located right in the same neighborhood or they
Watch Out!
Some states or counties have laws that determine just how much notice you must give to raise the rents, as well as how much you can raise a tenant’s rent within a certain time limit. Make sure you check your local laws.
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may be similar but located across town or in a nearby city. Also watch the advertisements for a week or two. You may find that the properties aren’t renting at the higher price and only dis- appear from the ads when their rental rate has been reduced to the appropriate level. Drive around the area. Do you see ban- ners saying, “move-in special,” “special rates now,” “ask about our incentives”? If so, this tells you that supply is higher than demand and you will need to be at the lower end of the market to rent your property quickly.
Plan to raise current tenants based on their length of time at the property, condition of the unit or the property, and the cur- rent rental agreement. When purchasing a property with a ten- ant already in residence, be sure to read the rental agreement prior to proposing any rent increases.
Ways to determine your market rent Not sure how to price your rental? Try the following tips:
■ Pick up the local newspaper in the area of the available rental. Go through the section where you find properties for rent. Highlight the ones that sound similar to yours and make a few calls to get the location and drive by.
■ Search the Internet for available rentals by entering the city and the type of rental.
■ Call a local property management company and offer to pay them for an hour or two of consultation. Have the rental agent or property manager meet you at your avail- able rental. The key is to offer to pay for the service. See Chapter 16 for more on hiring a property management company.
■ Go to a few local property management Web sites and look up their available rentals. They usually provide addresses, current rents, and even photos of the compara- ble properties. If you just purchased the property, there will be some rental comparables in your appraisal report.
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■ Call on properties nearby from the “FOR RENT” signs placed in front of the units. Ask the person who answers how much he or she is asking for the rental. When calling, you have two choices: You can ask the questions as if you were the prospective tenant, or you can introduce yourself and let them know you own a property nearby and you are conducting a market analysis. I recommend being honest, as you usually can get additional information and some- times more information than you expected.
When setting your asking price, do your homework to find the market rent, and then stay at the lower end of the market. This will be one of the incentives that will draw a prospect to your property rather than the similar one for more money. Having your rental price just under the other comparable ones will save you time, money, and hassles while finding a tenant promptly. Of course, you should consider particular aspects of your own market as well as your financial needs when deter- mining the final price to ask.
Looking at an example Consider the following example: You’ve done your homework and the rental range for your unit appears to run between $500 and $525. Of course, you want to maximize your investment over the next 12 months, so you decide to advertise at the higher amount and wait for the person willing to pay that much — because your unit is in pristine condition. However, it takes you an extra four weeks to find a tenant.
Moneysaver
Don’t overprice your rental. Overpricing a rental causes frustration and loss of income you can never recover. Remember, your goal is to fill the rental unit and rent to a quality tenant who will pay on time and take care of your prop- erty. Pricing the rental correctly saves you time and money.
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12 months @ $500/month is $6,000 for the year.
11 months @ $525/month is $5,775 for the year.
You also have additional advertising costs and more show- ings and phone calls to get it rented. How much is your time worth? Do you think it will be easier to raise the rent next year from $500 per month or from $525 per month? Look at the long-term return on your investment.
Offering a discount or move-in bonus If your market is really soft and you are having trouble renting your property, consider some type of move-in bonus or dis- count. Some people offer a discount off of the last month of a lease, but this may not be an incentive if you are looking for a long-term tenant. Check the local newspaper when you are researching your market price and see what the others are doing and what type of incentives are being offered. Keep in mind that the tenants are aware of the competition in a soft rental market. They may call you and ask you to match what the property down the street is offering.
Rental markets, like everything else, are subject to change. There will be strong markets where you no sooner get the sign up or the advertisement in the paper and you have a qualified prospect turning in an application. Then, other times, you may have tried everything possible to rent your property and a significant amount of time has gone by and you still have not rented the unit. Don’t be afraid to lower your rent — do it quickly and be aggressive. Avoid chasing the market down and going weeks without a tenant. Getting a qual- ity tenant quickly sometimes means being extremely competitive
“ Prepare your propertyfor a good tenant, and they will come. By pric- ing your rental fairly and competitively you will get a quality tenant who in turn takes care of your investment staying long term. ”—Jack D., investor
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with your asking rent. Remember your property should be in excellent condition and priced to rent right away to a qualified long-term tenant who will care for your investment.
You want to create an appropriate advertisement and mar- keting plan to get in front of people who desire the amenities you offer, who want to live in your area, and, of course, who can afford the rent you are asking. This is your business and it takes time to market your property to the greatest extent possible. Only you can determine the correct balance between time needed for a full-blown marketing campaign and dollars lost on a vacancy. It’s your choice.
Preparing yourself to market your property You need to be prepared and organized prior to placing the property on the market for rent. You will save yourself time and money, but most importantly, you will avoid the headaches that come when you have not taken the time to have your systems and procedures in writing well in advance. When you are making appointments, let the prospective tenant know what you will be expecting up front and in detail. If you have a Web site for your rental property, you will be able to allow prospective tenants to view the photos of your property. You will also be able to provide the option to download your application and your lease policies in advance. Technology today can truly assist you in managing and renting your rentals. By having a Web site, you will attract tenants who are also up to date with today’s technology.
Here are some questions to ask yourself before you begin marketing your property:
■ Who do you want to reach?
■ What is your select market?
■ What kind of market are you in currently?
■ Are there more rentals than prospective tenants, or vice versa?
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■ How much money and time are you willing to spend on your marketing for a new tenant?
■ Where can and should you market to reach your intended audience?
■ When is the best time to advertise? Weekends only? Continuously, ten days in a row?
Finding effective places to market your property Right now there are dozens of potential renters out there who are looking for just the right place, a place just like yours. You should be able to advertise and draw them in to view your prop- erty. A good advertising and marketing program lets you pinpoint and attract just the kind of tenant you want for your property. You need to know how to identify, understand, and find your ideal tenant. Think about what you consider to be your ideal ten- ant and what you value in a tenant. Consider at this time whether you are going to allow pets, whether your property is suitable for pets, and what type of pets you will consider. Some landlords believe accepting pets gives you a longer-term tenant, while oth- ers have had so much damage from tenants with pets that they have sworn never to accept an applicant with pets again.
Note: Companion or help animals aren’t considered pets and you cannot use this as a reason to turn down the applicant. See Chapter 7.
You need to decide where the best, most-effective places are to market your property. The following sections give you several options.
Remember: Effective marketing involves differentiating your property from other properties that are listed for rent. In a tight rental market, advertising may not be as critical, but when renters have many places to choose from, you need to be cre- ative and competitive. Think about that special attraction for your property that tenants are looking for. Effective and catchy
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marketing will increase your number of calls and showings, which increases your chance of attracting the ideal tenant for your property The more clearly you state the property’s special or unique features, the greater the odds of attracting quality applicants.
Place a sign on your property Start by placing a “FOR RENT” sign on your property. You need to be sure the sign is professional looking. What do you think of when you see an 81⁄2 ” x 11”, red-and-white sign stapled to a tele- phone pole? Pay the extra money to get a sign you can actually stick in the ground. You can easily put one together with vinyl letters on a hard plastic 3’ x 4’ Plexiglas or hard plastic board, put a screw through it and attach to a pole. This sign is going to attract more qualified renters and sets the tone of professional- ism. Your sign reflects that you care about your property.
A sign works well because prospective tenants who want to live in the area drive by. Make sure your rental sign is in good condition, as the sign is yet another reflection of you, the land- lord. The phone number needs to be clear and easy to read from the street. If you have a sign with extra space, include a few details on the sign, such as number of bedrooms and bath- rooms, and the asking price. Make sure everything written is leg- ible. You should always have signs available and ready to place on your property. This is a very inexpensive way to fill a vacancy.
The advantage of a sign is the person calling already knows the location and the area and has seen the exterior of your rental. This is again where the curb appeal of your property
Bright Idea
Take the time to go down to your local sign store and have a professional sign made up with the basic teaser information: “FOR RENT” should really stand out as well as a contact phone number. Keep in simple enough, however, that you can reuse the sign.
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comes in. Sign placement is also very important. Place the sign where it is clearly visible from the street. If you are placing it in front of your property, it is nice to have a double-sided sign. If your window faces the street, place a sign in that window. After you have placed the sign, drive by and see how it looks. Make sure you can see the sign clearly from both directions.
If you have a multiple-unit building, your local sign company can also make a banner for you that can be hung on the outside of the building. If you have multiple vacancies, don’t leave the sign up indefinitely. Try taking it down for a week or two, and then putting it back up. This will give the impression you just had new vacancies come up.
Many owners choose not to put up a sign while their current tenants are still living there because many people driving by will go right up to the door and ask for more details. If you put up a sign where your tenants are still living in the unit, be sure to put up a “Don’t disturb occupant” sign. You can also minimize the disturbance to the tenant by putting up a box with flyers in it next to the sign.
You can utilize the time of a good current tenant by offering him or her an incentive to show the unit, especially if you don’t live nearby. Make sure to consider your current tenant carefully and how that person will represent your property. Give them a handout with the features and fair-housing guidelines. I’ve found that some tenants are great, but they also want to gossip about the owner or the neighborhood.
If at all possible, show the unit yourself. You are the expert and the one who wants to sell your unit. Obviously, if you have a
Watch Out!
By placing a sign on a vacant property you give a message that the property is vacant. Put up a “DON’T DISTURB OCCUPANT” sign as a precaution to avoid any vandalism. When describing the property on the phone, I always say, “Please don’t disturb the tenant.”
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tenant leaving under difficult circumstances or if the tenant doesn’t have good housekeeping skills, you need to wait until the tenant has moved out prior to showing the unit.
Newspaper advertising By far the most common form of renting your property is adver- tising in your local newspaper. However, the trend in the last three years has been toward the Internet. This is especially true in areas where people are relocating from other parts of the country (or world) or around universities.
Choosing which newspaper You need to decide which paper is the most effective one to place your ad to get the results you need to rent your unit. In many areas you have more than one paper to choose from to advertise your property. Usually, you have at least one larger paper that has a large classified section, plus at least one smaller,
Providing Information 24/7 Callers who can’t get through to you won’t keep calling back. Have a voice mail system or answering machine with a friendly but professional message providing the move-in details and features of your available property. Make sure the message gives the total move-in costs and informs the caller whether yours is a non-smoking property and whether pets are allowed. You may even provide the address and welcome a drive by, but ask prospects not to go onto the property or disturb the occupant. Let the caller know when the property will be available to view and how to go about making an appointment. In addition, tell the caller what the move-in date is and that you have a Web site or other place to view digital photos and obtain an application.
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privately owned paper. The smaller paper is usually read by peo- ple in the area and can be effective and the least costly. It really depends on the type of rental and your specific area. Sometimes advertising in the large city paper costs a lot, but it covers a wide area.
Be sure to review whichever paper you choose and check out your competition. See which ads catch your eye and think about why.
Keep in mind that many newspapers now have online news- papers so that anyone searching will also pull up the newspaper online as well as reading it in the actual paper they pick up at the newspaper stand.
Writing an effective ad When placing your ad, list the key features. Start by describing the property from the inside to the outside, listing the features that matter. Let prospects know what makes your place unique and better than the others. List items that not all units have, such as a view, a fireplace, a garage, new appliances, and list the condition. Is it newer, does it have upgrades, large bonus rooms, and so on?
Place yourself in the tenant’s position. What would you want to know before calling to get details? What would entice you to call? The hardest part of placing your classified ad is figuring out what is important to the reader. Put in the benefit and value of the property.
■ Location You will find most newspapers list the ads by location. It is a good idea to mention the neighborhood or area that someone reading it may be familiar with. Some locations aren’t for everyone or offer some particular ben- efit like being close to shopping, buses, or schools.
■ Size This is the next important criteria in your ad. You should list the number of bedrooms and bathrooms, as well as any bonus rooms, offices, family rooms, sun porches.
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Mention the size of a room or rooms if the bedrooms are large or if there is a large living room or kitchen. Also, it is important to mention whether any part of the property has been newly remodeled. Square footage may be impor- tant if that description is needed to support the rental price being above market for the number of bedrooms and baths.
■ Amenities Next, mention the special features of the property such as fireplace, pool, spa, appliances, laundry, garage, yard, deck, patio. It is important to talk about the view and the setting. Use descriptive words such as “quiet, private.” Consider the time of year. Air conditioning is important when temperatures soar above 80ºF, but not when the furnace is needed. If gardening is provided, this may be very attractive to the person who travels a lot and/ or currently doesn’t have yard-maintenance equipment.
■ Monthly rent and terms desired Include whether a lease is required. Communicate whether pets are allowed. Mention move-in bonuses.
■ Utilities It is important to mention any utilities included, especially if all utilities are (or aren’t) included in the rent.
■ Cleanliness If the rental is newly painted or has new car- pet, or something has been upgraded, mention that in your ad. I sometimes state, “Clean and ready for immedi- ate move in.”
■ Contact information The last thing in the ad is usually a telephone number where you can be reached or where
Bright idea
Describe the location first, using a catchy word or two to draw in your reader, and then describe from the inside out. List the features, especially those that separate it from other rental properties. End with the price, lease term, and the contact number.
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the reader can obtain additional information. I highly rec- ommend you have a answering machine or voice mail sys- tem. Your outgoing message is so important. I also feel this is the time to give the drive-by address and mention any pre-arranged showing times or open houses.
Looking at a typical ad A typical ad may look like this:
SF—apt 2 bdrm 1 ba w/incredible views frplc, newly remod kit, sm deck, gar. Avail. 6/1. Lse. No pet/smoke $1,700. 379-9038
Or, like this:
SF/APT, 2/1 w/views, FP remod kit, DK, gar. Avbl 6/1, lse, N/P/S. $1,700. 379-9038.
Don’t be afraid of a short ad. Keep in mind most newspapers will assist you if you tell them you want the ad as short as possi- ble and you want to them to abbreviate wherever possible. Some papers even provide you a list of common abbreviations. Here are the most common ones:
■ Apartment: apt
■ Townhouse: th
■ Bedroom: bdrm
■ Bathroom: Ba
■ Fireplace: f/p
■ Dishwasher: d/w
■ Large: lg
■ Small: sml
■ Room: rm
■ Laundry: lndy
■ Washer and dryer: w/d
■ Garage: gar or 2cr or 1cr
■ Air conditioning: a/c
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■ Yard: yrd
■ Renovated: Reno’d
■ Move-in bonus: M/I bonus
■ No pets or smoking: No pet/smk or N/P/S
Check the ads in your local newspaper to find out what abbreviations are commonly used. Your newspaper can help you reduce the ad to get in the important features.
How big to make your ad Your ad will usually be placed in the classified rental section under the available category, based on the type of property and/or area. In this case, bigger is not better. Placing a small ad that will attract your reader is important. Prospective tenants tend to look for smaller ads in certain areas with quick-and-easy details to read. Therefore, your ad needs to be short, yet packed with the valuable and basic information.
How often and when to run your ad in the paper Most newspapers give a discount based on the commitment of running your ad for a specific number of days. I feel the best time to run an ad is the end of the week. You can begin the ad on a Friday and run it for ten straight days. This gives you their ten- day rate and hits two weekends.
Find out whether you can change your ad without charge. After the first weekend, if you didn’t get any calls, consider changing the price or changing the verbiage to get more inter- est. Taking your ad out for a couple of days, and then placing it again with different information may also spark interest.
Watch Out!
It is important to check your ad the day you expect it to come out in the newspaper. Be sure the information is correct, especially the price and phone number. Don’t expect the ad to be correct, and call the paper immediately if you find an error.
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I find the busiest days and most active days for rental calls and rental showings is toward the end of the month, with the last weekend before the first of the month being a very good time to advertise and rent your property. Remember, good tenants give 30 days’ written notice to their current landlords. They look around toward the end of the month with plans to find a place and give notice to their current landlords on or around the first of the month when they pay their rent.
Advertise in rental publications There are many local, weekly, and monthly rental publications that are widely used by prospects looking for a rental. The most widely circulated rental publications are For Rent and Apartment Guide. Rental guides are primarily designed for larger rental housing communities. If you have a large building with several vacancies, this may be the route to go. Keep in mind that adver- tising in these publications can be quite costly and may not be your first choice.
If you do decide to run an ad in a magazine, I recommend that you keep it small. Refer the prospects to a Web site or a rental hotline where they can get up-to-date information about what you have available at the time they make the call. There is also a lead time before the ad will be published, sometimes up to 10 days. Be sure to find out the cancellation policy if you rent the property.
Use a Web site or online ad As more and more people have become Internet savvy and have learned to search for what they need on the Internet, it is important for you as a landlord to have an Internet presence. It would be great to have a Web site or to list your property for rent on a local or national Web site. You should have a detailed description and digital photos of the property and the unit.
There are many Internet providers that offer Web sites at lit- tle cost. You may find an online service where you can list your
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vacancy with photos. Search on your computer or go to Yahoo! or Google sites, type in “online ad housing rentals,” and include the area or city.
Many of the rental publications offer online advertising as well. Many local newspapers now have all their advertising online as well as in the printed page. Some will charge an addi- tional fee for this advertising but many are including it in their ad costs. To find out which Web sites are most effective, go to the Web and search for rental homes with the name of the city your property is located in. You may find that there are local places to advertise that you were not aware of before.
Put up flyers Think about posting flyers in your laundry room and around your neighborhood, with details about your upcoming unit. In some cases, it makes sense to have a nice flyer with a photo or two on it, along with the address and showing information. Flyers are great for college towns, where you can post the flyer in a central location. You need to have a plan, though, because distributing the flyers could take a lot of time. At a minimum, handing the flyer to the other tenants or neighbors is effective.
Try community bulletin boards Some areas have an electronic community bulletin board, such as Craig’s List (www.craigslist.org). If not, consider using a phys- ical bulletin board, where you can post your flyer. Sometimes, even your local post office has a place to post flyers. Local grocery stores and restaurants may have a bulletin board you can use. If your property is in an area that has a homeowners association, ask
Bright Idea
Take the time to create a simple Web site. After spending the initial money to get it started, it won’t cost you much to maintain, yet it will provide many leads. The Internet is the way to have a presence for tenants to find you and learn about your available property.
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about posting the flyer in its newsletter or on the complex bul- letin board. This is not as effective as some of the other methods, but it only takes one person to walk in and call from your posting of the flyer.
Your local chamber of commerce may be a good resource. Many people moving into an area drop by the chamber to pick up information about the area. Ask if you can put your flyers in their information stand.
Contact a local employer or relocation department Large employers nearby are a great source for rental prospects and usually have a break room or a person you can contact to possibly post a flyer. Making contact early on is important. Many employers have a rental-assistance or housing-referral office or relocation person. Most rentals are located close enough to a few large companies. Many employers find it is essential to assist in affordable-housing resources nearby their offices.
If your rental is a large single-family home, using a reloca- tion company can be quite beneficial. You can search for relo- cation companies in your local Yellow Pages or on the Internet.
Use your current tenants or other word of mouth If you have a building with more than one unit and you receive a notice to vacate, utilize your current tenants to help you fill your vacancy. Offer them some type of incentive. You could offer lower rent for a month, movie passes, free carpet cleaning, a gift certificate for a local restaurant, or some type of upgrade
Watch Out!
Never place your flyer in anyone’s U.S. mailbox. This is illegal and absolutely not allowed. In addition, be careful where you put the flyers and how you secure them, so that they do not blow out into the street or neighborhood with the wind.
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in their unit if their friends rent a unit. If your tenant is involved in helping you find a tenant, this could be a win-win situation. You will fill your vacancy and have a current tenant who is happy with their new neighbor. Think about the tenant who is refer- ring the prospect, though — do you want more of the same type of tenant in that property?
Hiring a property management or rental company Some management companies (discussed in detail in Chapter 17) handle only the renting of your property. They refer to the service as a one-time rental service or a lease-only or lease-up service. When you hire the rental company, you will also get a professional opinion about the condition of the property and the price they think the property should rent for. If you are using a professional company to do your renting only, make sure your agreement states that you get to meet the prospective tenants prior to approval of the application and before they sign a rental agreement if you live in the area. Don’t let this get in the way of closing a deal to get the property rented.
Hiring a local property manager to lease your property is preferable when you don’t live in the area of the property. Some companies will take care of the move out of the old tenant, adver- tising, showing, and moving in the new tenant. Balance their fees against your time and money spent traveling to the property and doing the research and showings yourself. Interview several companies before choosing one.
Moneysaver
You may find that you know someone or have a current tenant who happens to work for a large employer where you can post your flyer. Sometimes, hav- ing a name or a contact within a large company can save you a bundle in mar- keting costs. Utilize your contacts when trying to rent a property.
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In addition, there are local real estate and relocation com- panies that assist tenants in locating rental units. Realtors may feel that if they assist the prospect in finding a rental home, per- haps down the line they will have an opportunity to sell them a home. (See Chapter 3 for additional information on Realtors.) Another advantage of hiring a real estate office or a property management company is that they will handle the necessary screening and lease paperwork. Real estate companies, rental agents, and property management companies are usually up to date on the current laws and market conditions.
In addition, many property managers or Realtors are mem- bers of a multiple listing service (MLS) and can list the rental in this system. This reaches all the members within that MLS sys- tem and usually doesn’t cost you any more than what you have offered to pay the rental company. They usually split the com- mission 50/50, very much like they do in the sales market. Be sure you know who is going to pay the advertising, which rental agreement is going to be used, and who will be doing the move- in inspection with the tenant.
Advertising and fair housing When you place an ad, set up a Web site, put up a sign, or record your message, be aware that you are responsible to know and to abide by the fair-housing laws (see Chapter 7). There are many words you may not use in your ad when you are searching for that qualified tenant. Here are some examples:
Bright Idea
In hiring a professional company, choose one that handles rentals in your immediate area and that has a great deal of experience. Look for a company with professional accreditation and rental agent or property manager with designations. And be sure you feel comfortable with the person or people who will be managing your property.
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Sample Alternative Wording Discriminatory Phrases Alternative Words
Adult home Quiet area
Executive home Designer touches
Dramatic Home
Perfect for couple Starter home
Cozy home
Perfect for young professional Commuter’s dream
Sophisticated
Elegant
Ambiance
Made for entertaining
Wired for home office
Family home Affordable
Large home
Great for kids Close to schools/parks
Large back yard
Roomy home
Perfect for singles Cozy studio
(List square footage)
Employed Responsible
Confirmable income
Note: This is not a complete list.
Whenever in doubt, check with your local or state fair housing office. Advertisers must determine whether the proposed adver- tisement indicates any preference, limitation, or discrimination
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based on race, color, religion, sex, handicap, familial status, or national origin, or an intention to make any such preference, limitation, or discrimination.
It is easy to innocently and unknowingly make a subtle state- ment in marketing your vacancy that violates federal and state fair-housing laws. These laws apply to all, whether you are an owner or a professional in the business of renting properties. Any form of advertising is subject to these laws, and all owners and agents are required to know and abide by the local, state, and federal housing laws. It is your responsibility to know the fair- housing laws and makes sure you don’t at any time violate them. There are many places to obtain the up-to-date information for fair housing. Not only can you find it on the Internet but you can also call your local, state, or federal fair housing office. The U.S. Department of Housing and Urban Development (HUD) has developed pamphlets to help you understand the law. Its Web site at www.hud.gov/fairhousing is a wealth of information.
Adhering to the Fair Housing Act as well as local fair hous- ing laws is paramount. If you aren’t sure whether your adver- tisement is in violation of federal and local fair-housing laws, have your ad reviewed by an attorney. Any discrimination in rental housing advertising is illegal and can result in major penalties.
You find a lot of details in Chapter 7 regarding fair housing. In addition, I highly recommend you take a workshop on fair housing so that you know how to stay out of trouble while adver- tising your rental.
Just the facts ■ Your financial requirement for the positive cash flow of
your property doesn’t determine your rental price. The current market does.
■ By pricing your property according to the current market you will attract the tenant you want.
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■ There are many ways to research your asking price. Take the time and do the homework.
■ If you are getting little or no activity showing your rental, either the price is too high or you need to reevaluate the condition.
■ A good ad and marketing campaign will attract a quality tenant.
■ There are many resources to market your property — use them.
■ Fair-housing laws apply to your advertising.
■ View your available unit through the eyes of a prospective tenant.
■ It doesn’t hurt to get a professional opinion. Hire some- one in the business to consult with you on your price and condition.
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