It is very common for tenants to need to be out of their old apartment at 5pm on the last day of the month, but they can’t move into their new apartment until 8am the next day.  This can be a stressful time to be without a home and have all your stuff loaded in a moving van overnight.

Many landlords will allow tenants to move their belongings into their new apartment early if possible.  I do this all the time.  Unfortunately, it is common for landlords to forget several key points when they allow their new tenant to do this:

• If your tenant is actually moving in early, make sure to sign an addendum to the lease for the additional days.  You may or may not be collecting rent, but you want something in writing that holds the new tenant to the same requirements they will be under during the rental period.  Evictions can be complicated with no written lease in place.
• If you are allowing them move furniture onto to the property only, have the tenants sign a waiver of responsibility.  You are only responsible for giving them a key, not for the contents of their apartment.  Again, your full lease will have this language.  Also specify in writing that they are not authorized to live there.
• Set a concrete date for their arrival to insure you will have the apartment ready.  You may need to negotiate the opportunity to continue to work on the unit despite the tenant beginning to move in.

Following a few simple rules when allowing a tenant to move in early will make the process easy for both you and the tenant.

How did you decide what to charge for rent in your apartments?  Do you rent them quickly or do you show them to dozens of people only to get a tenant once you lower the rent?  Maybe you need to check what the other comparable properties are renting for in your neighborhood.  Here are a few ideas on how to confirm you are maximizing your rental amounts and minimizing the apartment’s time on the market:

• Drive around the neighborhood and call on some “For Rent” signs.  In fact, introduce yourself, tell them which buildings you own, and give them your phone number.  We all need to help each other as landlords.
• Use Craig’s List to quickly see what landlords are offering their apartments for.  Also check out the “seeking housing” section to see what tenants are willing to pay.
• Ask your existing tenants what they think about the rent amount you are planning to charge.

Even if you think you have the rent amount correct, watch how quickly or slowly your apartment rents once you start advertising.  If it is taking a long time to rent or you are experiencing a low call volume, lower the rent sightly.  You may also need to change your rent amount based upon the time of the year, changes in the neighborhood, and the condition of the unit while showing it.

Check your rent amounts at least yearly.  Setting your rent amounts correctly will help you rent your apartments quickly which will help you minimize leaving money on the table.

Should you accept Section 8 or not?  Many new investors are nervous about the program as they have heard horror stories about it.  Tenants that are on Section 8 are the same in every way (and must be treated the same way), but some or all of their rent comes from a government source instead of their bank account.   

Section 8, also known as the Section 8 Housing Choice Voucher Program, exists to provide housing solutions for low income families. The program provides families with a certificate or voucher that allows them to lease an apartment or home they otherwise couldn’t afford. Families pay some “reasonable rent,” which is a percentage of their income; the remaining rent is covered by the local housing authority. Total rents are determined by the local housing authority, and are capped by the Fair Market Rent (FMR), which is set by HUD (US Department of Housing and Urban Development).

In Minnesota, it is illegal to discriminate against anyone on public assistance.  As a landlord, you have the option to not participate in the Section 8 program, but you can’t disqualify an applicant for being on Section 8.

You should work tenants and applicants with Section 8 just like any other tenants.  They should follow the same screening criteria and process.  You should get the name and number of the applicant’s Section 8 case worker to verify the applicant is indeed on Section 8 and can afford the rent that you are charging for that apartment.  I have had situations where 2 weeks prior to the move in, the Section 8 worker calls and asks me to drop my rent by $100 per month so the tenant can afford the apartment.  That is a tough decision to make (drop the rent by $100 and get the tenant or refuse and possibly lose a month of rent).

The unit must be inspected by a Section 8 inspector prior to Section 8 paying any rent.  If the tenant moves in and then the inspection occurs, most likely the tenant will be responsible for the rent.  Work with the tenant and their coordinator to insure you are following all the deadlines.  The inspections are generally straight forward.  The inspectors are looking for health and safety issues and want to insure that everything in the apartment is in working order.  I always advise that you attend the inspection with a screw driver and 9 volt batteries in hand so you can take care of 2 minute repairs instead of trying to schedule a re-inspection for a missing battery in a smoke detector!

Be prepared to wait up to 45 days for the first check from Section 8 arrive.  After the intial check, though, each payment will arrive on the 1st of the month or even the day before.  Often you can also have multiple Section 8 tenants rents combined into one larger check.

I find that my Section 8 tenants are often my most stable tenants, often staying in the same apartment for many years.  To minimize the administrative work, Section 8 typically prohibits the tenant from moving during the lease.  They will also require a decision, 60+ days prior to the end of the lease, from the tenant and landlord if the tenant will continue to lease the apartment for another 12 months. 

Many of the above aspects of the program make it an appealing opportunity for the landlord.  I believe the horror stories are because of the tenant, not the program.

As I take on new investment property customers, one of the early questions is:  “Where do you find tenants?”.  As with most other questions, I usually say “It depends”.  The neighborhood in which the property is located often has a lot to do with your advertising technique.

Here are some different advertising suggestions and what I have found works best for each tenant demographic:

• Craig’s List-This is a free resource for almost every major city the US.  I have had good success with Gen X & Gen Z tenants on Craig’s List as they are on-line so many hours per day.  You should post pictures in every ad, as some prospective tenants will not look at your post without pictures.  Also, you must repost your entry every 4-5 days as just like the search engines, we have been trained to never go past the 1st page.  Read more about Craig’s List in my May Newsletter.
• Major newspaper-In Minneapolis, this would be the Star Tribune.  Although typically a more expensive option, this is one of the only ways to reach out to tenants without computers.  I have had good success with the newspaper in NE Minneapolis.  You should pay for the full 2 week run which will cost you about $165.
• Free newspapers-Typically these are the newspapers inside the door at the grocery or record store.  Many of these papers actually have incredible circulation numbers.  They are often cheaper to advertise in than the large corporate newspaper (such as the Star Tribune).  You should examine your target tenant to decide if they would read this newspaper.
• Yard sign-In certain areas this has outperformed all other advertising.  I recommend NOT using the $3 wimpy sign from Home Depot that is going to blow over at the slightest wind.  Find a sign shop and have them make you a bright red 2′X3′ sign with a metal frame that says “For Rent” in 4″ letters with your phone number.  I will even put my sign in the front of my building on a busy street just to get calls for another building down the road.
• Ask you existing (good) tenants for referrals and pay them $200.  People love to recommend businesses and connections they are comfortable with.  Generally, people will also only recommend other good tenants as a bad one will reflect poorly on them.

Each of these suggestions may need to be tailored for your area or the property.  By analyzing where your calls are coming from, you can optimize your time and money spent finding new tenants.