What to do if your property is empty...

[Music] thank you seven hours driving on the highway welcome to the Ken McElroy show I'm your host danil here with Ken hey happy Cyber Monday cyber monday it is he stole my line I was gonna say last week was my birthday and this week we have cyber I know I know so check out our cyber monday deals they're amazing save us a Black Black Friday ones if you missed it 299 and that gets you a year of the premium Inner Circle and also the uh Master Court both Master up on the street so we are pre-recording this because Ken and I have a big um EOS meeting and Thanksgiving Day well yeah and Thanksgiving yeah we have a big meeting on Monday so we could not we are in but we couldn't record true so we also had a very nice Thanksgiving because I already know we're going to have a very nice Thanksgiving I already know the pumpkin pie that they're making for me at Orchard Canyon is going to be amazing they do an amazing vegan gluten-free pumpkin pie for me and Jerry keep that in because it's promoting order Canyon that's true www. enjoyorchardcanyon.com in Sedona book your reservation today it's the best it's a heck of a spot that's where we're going for the holiday it is it's beautiful up there um okay so today we're gonna Jump Right In to things to do if your property is sitting empty and I think that this is an important one um because a lot of people are having issues uh filling their rentals right now yeah um you know everything's just slowing down a little bit on all fronts it's so funny people are used to like oh my gosh like I've had a vacancy more than a week like you have no idea it happened to be on my last one I had a vacancy for three weeks and I was like maybe I need to lower the price and you're like not necessary or you or lowering the price when you first got into business uh because it was making a day I know I'm used to renting it out before the other people yeah well that's a good point that's why I like this topic you know I came from you know Property Management Health right like it is you know the business is tough so a vacancy two to three weeks is about right and you know what we've experienced this point is uh you know it's been a gift yeah it's been abnormal right and uh you don't want to do what I did which is you know if you have any kind of Gap just lower your price because you know you could be as long as you're priced correctly you could be missing out on rents just because you're impatient well there's there's a bunch of things uh you know to to fill a vacancy and I think we should start with before the person moves out if you even know so let's call it a non-skip which hopefully most years are non-skip so just your normal person giving you notice and saying they're going to move so you have anywhere from 30 to 60 days and notice that that person is going to move and there's a lot you can do before they move to make sure that the place is even pre-rented while somebody's in there you yeah absolutely you know I think as soon as somebody gives me a notice and I do require a 60 day because I like the extra time I get a handyman in there to just assess yes what's going on very important guys listen I'm telling you you need to know especially now with all these supply chain issues uh what you need you might need a refrigerator you might need a new carpet you just don't know what you're going to need and also gives you an opportunity to take a look at whether or not the the how the renter lives and and you have to give proper notice each State's a little bit different I think can uh can be 24 to 48 hours but you have the right as a landlord to go in and and and assess anything that you might need and start fixing it correct you know I don't like to fix like little things early like you know little holes in the walls because anything that can be done in a day's work you don't need to fix beforehand but if you have some big issues then in things you have to order you want to know about that sooner than later that's right so if you have a rental house you could have multiple bedrooms and you know yards and garages and all kinds of things you know it's easier obviously with smaller Apartments but the point is when that Resident gives you notice you should immediately schedule something go in and to your point even go in yourself with a handyman and and and start to knock out some of these things because all that stuff those are vacancy days so right now they're occupancy days so now you have to think of them as occupancy days and vacancy days so if your rent is let's say fifteen hundred dollars then your your vacancy day is 50 that's how you have to look at each day that goes by it's a 50 loss or a 50 gain so it's a really important that you go get that done before yeah and the other thing that's important is that you schedule so you have your handyman come in and you know gauge everything and then you schedule them for the day after their move out day yeah because you know you try to schedule your handyman last minute as some of you know especially nowadays you know they might be three weeks booked out ours is yeah I mean as much businesses we give them uh you know it's frustrating they're they're two to three weeks out absolutely for you know and so you know we're used to like hey could you be here this week yes it's not like that right now absolutely so you just need to you know that's a really good point you know you need to ideally rent your unit while you still have somebody else in there which is why I like the 60 days I really recommend the 60-day notice it's really beneficial to you um because a lot of times what happens is your tenants they have to move out before the 60 day because you know they bought a house or they're moving or whatever and then you have a little buffer time when they're not there and they're still paying rent to try to get somebody else in there and I always tell my tenants if I can get somebody else in before the end of your 60 days a refund then I will give you your money back or that you know that portion of your money back so it's a win-win because it gives me some time to get it clean to get it fixed well you just did that recently yeah yeah I've done it most of the time yeah and the that's a great incentive for the renter you know because then now the renter's working with you if if you could re-rent that thing and um and the tenant moves out and they can get some of their rent back because you you can't collect double rent so um and and you in the actual lease you can put a 60-day move out requirement you a 60-day notice is required so this is all part of the initial lease that that you put in and then for the next tenant if it's not in there now that gives you 60 days uh it really can help mitigate vacancy and your tenants are really appreciative you know because most of the time almost all the time I've been able to rent it out before the end of that 60 days so they get part of their money back and then they're very happy with me because I'm going to the effort to rent it but it's also beneficial to me because it's less of a chance I'm going to have that Gap and the other good thing is if there is major damage because I've had one time where I had some pretty major damage it actually gave me time to fix that damage um because it was kind of last minute hey we're moving out in two weeks because we bought a house and there was a bunch of damage and I set my handyman in there and they had smoked in the unit which I no longer allow but it was very smoky and that gave me like you know three weeks to try to get that smoke smell out because that was really tough where if it would have been hey we're leaving and then I only had you know no time without them in there then it would have um I would have probably lost a month's rent because I couldn't show it Smokey like yeah and the yeah the other thing is you got to understand somebody that's going to rent something from you they're also giving notice and they're also looking so that you know they you you might be able to rent the unit um you know uh obviously right away but the the people that are looking are also looking 30 60 days before so you know you want to make sure that you're what you're trying to do is save on those vacancy days that's what you're actually trying to solve to yeah and something I've really noticed is you know people that look way ahead like you know 30 45 days ahead they're typically you are more put together organized kind of people because they are looking that much ahead so you don't you don't want it to be vacant and then you know three days later want somebody to move in right because you don't want somebody that's scrambling like why are you scrambling that much you know so you kind of wanted that 60-day notice because it really gives you some yeah be careful of the I'll pay you all cash as long as you don't run a background yeah exactly moving to zero but you're right yeah you know most people aren't looking for immediate occupancy unless they're looking for like a hotel so you know most people have furniture and and potentially kids or pets or you know they're relocating and they have all these things going on and that's one thing so they also need notice as well so that 60-day notice is a good idea and that kind of gives you um you know a little bit of breathing room to try to again reduce the number of vacancy days absolutely because as we as landlords know we hate vacancies because they don't bring in any money and we wanted to do the video today because I think a lot of you out there are sitting there with empty properties right now because the market slowed a little everything's kind of slowed down and some people are getting really concerned especially if you're very tight on very small margins and there's things that you and I look at with different properties um that people do so they remain bacon right they're kind of hindering themselves with some of the things they do so we kind of wanted to go over some of those things today um how long before you'd start to like because you you did say something interesting to me you said you know as long as you're getting showings even if people aren't renting that means that you know your your ads good and your pictures are good and the price seems good based on the pictures but then if you're showing so if you're showing a lot it seems to all the ad seems to be good but then if you're not renting and you're showing it seems like maybe there's something wrong with the unit or maybe you're misrepresenting an ad all of that's true so you know so let's say it's vacant the first thing that a lot of people make mistakes on is that we would never ever show a non-ready unit never so in other words so you never want to show a unit that does not have new flooring new carpet new this new that freshly painted freshly um uh you know the housekeepers been through there it smells really nice you would never want to show a unit that everything's not fully done it's really really hard to rent something that is just moved out I have walked through thousands of units and they're in all kinds of conditions and it you don't want somebody that's going to walk through and say yeah I'll take it and I trust you it's going to look nice you want it so you do have to turn it we personally like to turn our units in two to three days up on Rainbow that's very very very very very very important because then like to your point you can walk in you can smell that smoke you can the tenants are looking for maintenance issues they're looking for things um and so you know so you got to pay attention to from the time they pull up to the where they're walking they're they're evaluating everything where are my kids going to play where am I going to walk my dog you know is this a secure place especially um depending if like let's say they're seniors or do they have stairs or no stairs or or maybe um you know somebody who's safety conscious you know all those kinds of things are issues so you have to be thinking put yourself in the in the in the mind of the tenant so the the unit this itself it sounds rather obvious but you'd be surprised at how many people don't you know they just well just Jam another person in there that that you know and so when you can take all those factors away to your point then now it becomes typically and maybe a a financial issue for them or a pricing issue you know I mean I just asked a couple examples so you might not be priced uh adequately or they might be uh stretching you know personally and they they can't particularly afford maybe uh maybe you're asking for the first month's rent plus a first month uh deposit you know so they're moving costs you know all those kinds of things so you have to kind of get into their head and find out you know what it is that is going to help you rent that unit yeah we're going to go through some of these here in a minute but I kind of wanted to just go over the basics too and I know it's something that we used to do when I rented Apartments um you know all the lights were on all the blinds were open yes and all the doors were wide open because what this does is it makes the unit appear bigger it shows that there's light coming in so those things do help if they're walking to this dark apartment and they have all the blinds closed and they're shut doors everywhere it's not going to present in the same way is when it's light and Airy and there's some you know some Breeze coming in and things like that right so it's more of the experience as they're walking through because it is a sales job you know what I mean it's not a hot you know it's not hard sales but it is a sales job they're they're touring more than your apartment so what can you do to make your apartment kind of stand out that's right and you can have little things in there too like like we actually put the you know beverages in the refrigerator where we put some fruit out you know we light some candles I know this all sounds a little corny but those are all little things that just make it not look like a sterile vacant apartment so when they come in say hey would you like a water would you like a soda you know you know what would you like and and even if they say no trust me if they're out looking and shopping you're going to stick out a little bit absolutely yep so let's go through some things that we've seen or that you know we recommend as you're trying to rent your unit so number one is the most obvious right you need to look it it's the most obvious but you don't want to just run to this one but look at your rent prices uh are you priced adequately are you two are you priced too high and this is easy to do by just kind of like going on Zillow looking at local apartments Apartments do a lot of work on pricing so find an apartment in your area a couple apartments and kind of see where they're priced at and then how you are aligned or disaligned with them and I think those are good places to start if you're if you're literally fifty dollars or a hundred dollars High then that could be the difference I mean you think about fifty dollars based on my example earlier that's one vacancy day so you know it it you need to really understand your pricing and the other thing is you got to be very careful with pricing it too low which is what denial ran into before and that is when they came up for Renewal her tenant was significantly below Market absolutely and you don't want to just run to pricing you know that's what everyone wants to run to oh I'm priced too high I need to lower it well that could be but that's why you need to check because a lot of times you know you're discounting your price and when you could have done some of these other things we're going to talk about that would have got your place rented yeah well on the other side of that I know you've got a place where you're you're five or six hundred higher than the your friends unit that's worked yeah so you know same exactly it could work the other way too you know so you got to be careful you know you could have priced yours at the same as her and you would have gotten five six thousand dollars less a year right um but now in her situation she's now looking to you so but the market sets the rent not you that's a that's important piece vacancy Supply you know um all kinds of things set the market rent just like anything else just like when you go to Vegas I used to live in Vegas whenever like the final four weekend or the Super Bowl weekend the the prices of the hotels were a lot higher and then in the off weekends of course they were a lot lower it's the same with rental market you know when you know there are different seasons and and and uh all kinds of things that can that can determine your pricing absolutely so I think I think the second thing I want to address is when you show them the unit you want to make sure you're showing them around the property and the area right don't just hey here's my two bedroom you know if you don't know if you have that right like because in a lot of cases you might not have a whole property but you're right yeah but but even what's around hey there's a dog park like right across the street there's a bike path there's this awesome restaurant that create around the way you know you're selling them on the area because like we were saying before they're going in a whole bunch of different apartments right and you know like an apartment might be the right one but there's probably a lot of nice Apartments they're looking at but if you can sell them on why this area why this unit you know what's so great about it and you know like especially if they have dogs like the amenities for the dogs like all that stuff is a big big selling point think of Airbnb like when you go in and they have the binder it says these are all the things you know in the area you know that you're flipping through especially if those are important things and I'm sure you know where they are right you know but all the little things all the little conveniences that people have to you know figure out when they first move somewhere um you know those are very very important things yeah and even if you do have a nice property you know walk them hey here's the pool on Saturdays you know you could read out here you can have a party you know you have some friends over out here and here's the business center and here's the workout room and because even if the people don't use it it's just showing there's so many amenities that's right that's the doctor right and it's really that part's really important you know here's your mailbox because you want them to feel like I could live here I could see myself checking the mail here I could see myself relaxing at the pool on a Saturday morning so when they start feeling like they could live there they're more likely to rent there yep yep and so the the big hot buttons for people are traditionally security and parking um you know if it's light or not you know all those kinds of things are really really important the environment the area that's uh you know those are always the continually constant things absolutely so the third one is and I've seen this like recently I know I just had a tenant that rented from me that great tenant but he because he had three small dogs nobody would would let him rent from them right so are you allowing animals and what are your restrictions around that so if you're not allowing animals in your unit which I know some of you aren't you're eliminating at least 50 percent of people that live in an apartment because I right now three out of the four of my uh tenants have animals so you know I think that that's maybe something to consider if you're not considering animal yeah I think well people default to they think of drug dealers with pit bulls you know it's just not the case you know we decided to embrace pets and what happened was we had um you think about most seniors and I mean many seniors maybe not most many many many many seniors they have pets usually you know small pets typically and so you're cutting out in my opinion one of the best rental markets that you know ever the other thing pet owners are very conscientious we bring our dogs everywhere and we pay deposits you know in our airbnbs and and you know and we're responsible pet owners I would say the majority of the people are you know there's very rarely do we have issues at the properties with with pats one of the things that one of my things when when we go somewhere or uh you know we read to people with pets is we were cognizant of what is it that they want so you know they want an area where their dog can go run they can let them out you know and and um you know all those little things are important if you're going to do that it it by the way you can get more rent this way yeah absolutely you know and as long as you're collecting some pet rent and you're collecting a pet deposit it's refundable you know then who care you know because I know like people like my parents and stuff they get very worried about the floor and things like that but as long as you're getting that deposit and you are renting to people that are responsible chances are you're going to be fine yeah and it's a rental so you have to decide whether or not you want pets because you know they are going to do a little bit more damage yeah yeah let's just face it but so are kids and uh of course you can't discriminate against kids but you know the the the reality is that rentals are rental right so um what we what we do is we we we we we've moved away from carpet completely so we have what we call Hardscape so and you know those snap-in flooring it looks like you know faux wood or whatever you could really that could be very very very nice and you know with small pets and all that it's not a problem if you have a little yard or something like that um and you're gonna open up I guess the point is you're going to open up a whole world of and you can determine what you want as a pet or not want as a pet right right yeah like you can say I have a I have a a size restriction or a breed restriction those are all things that you could do and I would encourage you to go online and look you know there are certain breeds that are more aggressive than others you can just say sorry we don't you know that's not that's not something that um that we accommodate and but that's not going to really hurt you too much no there's not very many people that have like this big aggressive dog they want to move into the rental right um and also like the number right because like my tenant who's great he has three small dogs if you had two small dogs he could have run in a million Apartments before mine but because they have this limit of two yeah I now am letting him have a third small dog but in my opinion I'm like what the heck's the difference between two small dogs and a three small dogs and he said by the way he's a great tenant great yeah actually super super tidy and every you know everything and uh the interesting thing is is that you got into a dialogue with him yeah that's how you knew well he was so desperate you know he basically I answered the phone you know for my you know condo hey I need to move and now it's at the three week point and I'm getting nervous because I can't find anyone that allows three dogs so just first off the bat will you allow three small dogs and I said yes you know because if he meets all the other requirements I have then of course three small dogs is going to be fine now three big dogs I mean that's going to be a little bit tight for a two-bedroom apartment but you know you just have to use your own common sense but don't just turn away people because they have more than one pet I mean knock on wood I haven't had much pet damage at my apartments and then the little bit that I've had has been like a hundred bucks here 100 bucks there and then they just pay for it yeah and don't forget you're getting 50 or 100 more a month in pet rent and you have a pet deposit so you have you you actually have a deposit that will fix anything you need to fix and you're getting more rent and pet owners will pay it absolutely really so I think we killed the pet issue yep so if you're not allowing animals and you have an empty unit allow animals um and then the the third one though is our fourth one fourth one is um your expectations may be too high on your tenants so um I've I have not personally encountered this but I know people that are really worried about I mean kind of like in Idaho when I rented that unit and the lady coming next door and peering in the windows and stuff making sure I wasn't yeah yeah this is a touchy one though you got to be careful you can't discriminate period so yeah so you run an application and um that's it I mean you have to have very clear guidelines it has to be the same no matter what you you just had a a creepy landlord why it was a lady I wouldn't say she's crazy lady and a husband but I mean they were just very worried I was their first tenant and they were worried just about a poor Africans so they were carried in the window I know that's more of a that's an issue uh for the landlord they need to go to counseling yeah but but for for people though like I mean I I do know that people sometimes like you know if you know things aren't like perfect you know we were very strict so you know with credit scores got to be good and the debt to income and all of that but you know you still allow you know people to rent as long as they meet all the qualifications yeah that's a good point you have to run criminal credit background checks we've talked about this in the past we run a sex offender check you know criminal background check and you can discriminate against that you can say sorry you know uh you know you have a criminal record this is a little controversial just to let you know some people think that um you should rent um you know to you know but I just you know for us as a company we've just said sorry you know and but again we have criteria for every single tenant we don't know their age their you know their their gender we know nothing literally they fill out an application and they either fit in the box or they don't yeah absolutely so but if you're paranoid about it just you know let the credit score and the you know background check be your guide so that's right um number five is the security deposit so you are the one that gave me the idea on this and typically that security deposit is one month's rent but sometimes people don't have all of that right because now you're talking about one month's rent plus the first month's rent so this could be thousands of dollars so what you can do is you if they meet all your other qualifications you can do a payment plan for the for the security deposit you gotta again guys like this is the same if you're buying a home and you need a down payment or you're buying a car and you need a down payment you know the amount of money that is needed to rent something you know can be an obstacle and so all you're trying to do is solve for that obstacle right um you know it's not a I wouldn't call it a great practice but it is something to explore you know if you know if if rents are 1500 and then you require a first and last let's say uh you know now you're at three thousand plus the credit you know screening and all the other thing you know it is just it could be Out Of Reach For A lot of people some people only have two grand or 2500 and they might not have extra and they're not going to most of the time they're not going to just say I don't have the money right you know they're just going to say I'm going to keep looking um and so you know you don't always have to have one month's rent you know you can have less but um if you want to have one month then by the way these are landlord tenant loss basically say what you can and can't do but if um yeah to your point you can do something well why don't we just do an extra 100 a month for 12 months or why don't we do 300 or 400 a month and just what you know you just work with them while they're building up by the way it's a deposit so the way to spin it for the tenant is it's a deposit it's not a non-refundable fee so it's your money we're just holding it on your behalf it's your money based on the condition of the part of when you move but that could be a deal breaker for them if they're you know say your unit and two other units they're kind of debating and they can do some installments on your security deposit that might put them to pick your you know your unit because now you've already I know what you're thinking you're like well what if they just stop paying me rent and I don't have any security deposit you've already vetted them they already have great credit they already have a great background they already have you know no prior evictions or issues so now all you're doing because a lot of times when you move out of your previous unit you don't you know the landlord doesn't have to give you back your security deposit at least in Arizona for 30 days so they have all this money tied up in this other security deposit that they don't get for 30 days and you know it's a lot of it can be a lot of money for people so if you feel like especially as our rents have increased your amount over the past couple years so if you're thinking that that might be maybe you know something that they're kind of struggling with that they're asking a lot about the price you know then maybe that's an option you could give to them yeah the other thing is that if you guys are concerned about all that there's you can have a renter um get renters insurance so you can make it mandatory so for like 20 to 30 dollars a month you can get insurance so if you're afraid of damage because what really deposits are about damage so that's one way we we do that as a company we we have our renters get renters insurance that's one more thing that helps you know on the damage side there's also another couple other companies out there called sure deposit where you can actually insure the deposit so let's say your deposit is 1500 that you know it's an insurance policy for the deposit so there's all kinds of products out there to help again the the you know the landlord rent the unit so it you know it don't be dissuaded by just having them having to come up with that 1500 let's say absolutely and then the next one we're going to get to is lease terms so you know some people are you know dead set in their 12-month lease right they don't want to consider anything else and I get that because I prefer 12 monthlies but if somebody's going to you know if your property's sitting they can and you have somebody that's willing to do a six-month lease or maybe even a three or four month lease then that might be something you want to consider especially if you're in a slow Point like Phoenix like the slow point is kind of Summer and this little three-month bump could take you to a busier Point let's say for Phoenix like October right so that kind of gives you more time if you do have somebody that wants a shorter lease that you wouldn't normally consider but if it's sitting empty it might not be a bad thing to consider yeah it's possible we typically don't like to do anything under six but to your point if if you're trying to shore up some vacancy loss trying to get somebody in there the the challenge with that of course is that you might be moving somebody into you know a unit that you know costs you a few hundred to turn and so you do have that so you might want to charge a little bit more for a shorter term lease you know you could charge 100 or 200 let's say more per month you want to compensate for any any short-term cost as a general rule we don't do this but to Daniel's point if when summer hits in Phoenix you know rentals go way down or in winter in some areas you know go weighed out so you know if somebody's willing to move in during a period of time and you know we always we always joke around because if something's vacant let's say in Phoenix in at the end of May it might be vacant until October because of the hot summer potentially not always but you get the point so um you know so you have to kind of evaluate that based on the amount of choirs you're getting and all that kind of stuff but generally um you know I don't have any problem with shorter term leases uh you know obviously you want to try to get a 12 if you can but if they can't then you you know why not do a six seven or eight nine or a ten month lease well and I also do this with my renewals right so if I have somebody's that is their lease is expiring in May and they tell me hey Danielle I want to go month to month because you know I'm looking for a house or I'm you know don't know what I'm going to be doing and it's Phoenix I say hey I'm going to charge you more to go month to month but if you extend till September I'll keep your rent the same because that floats me through summer so I don't have a vacancy so they're not giving me a 30-day notice or 60-day notice in June smart so you know and then that's a win-win for the tenant because they kind of assess and they're like well I'm probably not going to be moving in you know three months right so they just didn't want to commit to the year so it's a win-win because it floats me over the summer here which is our slow time and then it puts me in a good month that's a good point and what you want is a disincentive in the lease to go month to month that's what you want so if they go a month to month it's 100 200 more a month and you know what you want is there um you want them to re-sign you don't really want month-to-month fees what you really want is a renewed lease so but some people need a month to month let's say if they're buying a home or something they need the flexibility so uh it's okay to have a month-to-month clause for people that that want that they want that flexibility or you know the shorter commitment yep then another thing to do is just make sure you're advertising all the places that you could be because I know like for me my predominant place I rent is through Zillow and they put it on like truly on hot pads but like when I had that vacancy for three weeks I started putting it on Facebook Marketplace Craigslist posting it on my own Facebook page on my own Instagram because and I got a lot more traction and I ended up still renting it through Zillow but I had a lot more traction and what it taught me is that I need to be doing this every time because if I would have been having that traction the whole time I probably could have rented it on a different avenue so don't just commit yourself to one place to advertise yeah for sure you should be putting it everywhere anything anything you think about Craigslist even you know all you want is people calling right right and then you have your criteria set and um you just want traffic you want phone calls traffic you want you know another really good one is um you know sometimes you can get your renter if they're uh breaking a lease to actually refer somebody that they know um that helps you know we in a in a property that has lots of other renters in it we we have resident referrals where they can get some money off on their own rent um but you're right you gotta you have to basically blanket it out there don't go to One Source and um you know and the one thing that uh you know you can be expensive is you know using a realtor right you know I'm nothing against Realtors but you know they're going to charge you a month rent or half a month rent um you know and you know that might be something that you might want to do but that should be um after you exhaust all the other things absolutely right and then also you know something that's worthwhile for me is going down to your actual Community your apartment community and posting just a piece of paper with little flips on it because there could be somebody there that is in a one bedroom that wants a two bedroom or somebody that doesn't like their landlords they don't fix things that wants a new landlord you know that loves the community so putting those up the old school way yeah old school at the mailboxes and also yep and the local grocery stores and coffee shops those kinds of things you know this is a hustle you know you wanna like people need to know that you have a vacancy so whatever you can do and you know we call those little bandit signs you know as you drive around you see those little sides it says vacant two-bedroom you know X or whatever phone numbers those work people call on those kinds of things so the thing is is if you know you have a vacancy but other people don't know and that's the problem so you just you need to let everyone know that you've got this vacancy until you don't yeah the hardest part about being a landlord is your vacancies and you got to work really hard to fill them and that's you know people always ask me is is it a lot of work to be a landlord and this is the time where it can be a lot of work because you need to be out boots on the ground you know figuring out how to rent your unit to the right people you know we have a we have a tenant that we bought a place together as you guys know we've talked about before I don't think the guy's ever called or you know once he moved in you know fine he fixes things yeah he fixes things I had to tell like that for nine years and um you know so it's not always that way trust me you don't always you always get gold like that but um sometimes you do but you're right trying to fill that uh that vacancy um can be hard yeah yep all right so now we're gonna move to our Inner Circle questions make sure if you're watching you hit the like button I know I'm not live but I'm gonna look at this so make sure you hit the like button and uh if you go to Ken's innercircle.com it's uh 30 bucks a month and you can ask Ken questions and do all of our happy hours and book clubs that's right so G on from the inner circle speaking of animals she put can I take a dog from some tenants and not others I have a tenant that is really responsible and I let her get a dog but another one of my tenants wants a dog and she is already messy so I'm concerned so you need to create a policy and live with the policy you know I would be careful with that one you know it's it you know it's you know there she could take that and turn that into something else right yeah so I'd be very careful there and just again set a policy with your with your now you can set that around um um condition you know and there's other things that you can do inside of that pet there's a pet agreement right so um you know but I'd be careful on discriminating because you're really discriminating against the person exactly and so you can't discriminate you know in being a landlord and so the policy is the policy just make sure you have your security deposit and then if the dog ruins things breaks things scratches things you have a deposit to fix all of that damage that's right and like I said you can be breed restrictive so if she wants to get this huge dog maybe you only take dogs under 20 pounds or whatever your rule is um Emily's question I like this one I want to get into real estate investing but I feel like it's a man's world what is Daniel's advice and Ken's opinion I like she called mine advice and yours an opinion first year advice you know I actually think that you because there's so many men in real estate being a woman in real estate it's actually you have some advantages there I think that it's going to be possibly a little easier for you to get a mentor I think it's going to be um you know you'll be able to work with maybe some um homeowners that are women that would rather work with a girl or even some guys I'd rather work with a girl than a guy so I think that you know being different actually gives you an advantage versus being all the same and I haven't really noticed I mean I've gotten a little bit of oh you're a girl whatever you know but not any more than just normal life I actually I'm being serious I I think the majority of the women that I um majority of people I'm dealing with are women I mean look at my company well you have mostly women in your company but I would say that like Real Estate Investors are predominantly no I don't know like I mean well maybe you know I guess at the commercial property level that Pro that could be accurate I I think that's changing it is changing yeah it's changing a lot but um boy I it I it it seems to me like there's a lot of very very smart women investors that that we deal with a lot and so for me um it's with the exception of maybe the commercial property level I I feel like there's uh it's there's a lot yeah I mean I would just say to to use that to your advantage you know yeah use the fact that you're a woman to your advantage so um I think there's ways you can do that and I think that you know you can be very successful you have to have confidence but you have to have confidence if you're a Man Too anybody that's going to try to be raising money from other people buying things managing tenants well regardless you're gonna need confidence I mean I I don't know that we're a real number but it seems like most real estate agents are women yeah I'd say more than men yeah and so why what I'm thinking of is you know most of the real estate agents that we know are investors that's true this is my point like we've had them on the show that's why I was like it's you know it feels to me like the majority of the people at least that we're dealing with for for buying um and selling some of these uh smaller investment properties are women and and they're doing it themselves I I don't know hardly any that I don't actually own rentals yep just don't go into it intimidate it because then you're gonna if you feel like you're going to be you know um taken advantage of than you are right so just go in with a lot of confidence and just know there's a lot of women investors now I think it's great yeah so Joseph has a question he said a while back you did a video discussing the CPI and inflation and you were discussing articles you pulled from Shadow stats and you referenced another price index other than the highly manipulated CPI to give a more realistic measure on inflation by City can you please reshare what that index is have to go off a memory here shut up status I feel like you do that a lot even though it might have been the PPI instead of the CPI was that about right Jerry I think the producer price index is the one that precedes the Consumer Price Index and what that is is an index that looks at the cost to produce stuff so it's it's if you think about it it's the index before the CPI I guess is said another way so the PPI is something to watch in addition to the CPI so um that's the only thing I can recall at the moment and you know you never know with me I'm like a mad scientist when I'm doing these videos I'm looking at all kinds of stuff our next question comes from Jordan is there any time you would take a felon that applies to live in a rental if the crime was done a long time ago so again going back to our criteria um I I would be guessing exactly how we're handling that but most felons were not so uh you know when we run a criminal credit background check you know I what I'm by the way I know there are plenty of people that have committed felons that are completely fine now but you know I'm thinking of not necessarily them I'm thinking about the rest of the people um that they're living by or next to just in case I don't want to be in I don't want to be in a situation where there's liability on me that's all so I'm not trying to discriminate but you can so that's the thing you if you if you create a criteria and you say I don't accept felons and anybody with a criminal background check then you have to do that for everyone so um you know if you've done it before um you know and um you know you've said it you're not accepting them and now you are then you're actually a little bit more exposed so that's just our policy yeah you just have to be consistent no matter where you have to be consistent so if you do if you decide to take this person then that's fine but then whatever criteria you use for him or her you have to then use for the next person that applies yeah you can't you know have a feeling on this or something so it just has to be a standard so Bob has a question what metrics do you follow to track the market and identify good markets I'm interested in both for a multi-family I have 1500 units and single family yeah so the I I suggest that you get on every single national brokerages uh mailing list so this is a good place to start now they are Brokers so but what they have is they have very strong research department so I'm talking about burkettia grobanelis I'm talking about CBRE I'm talking about jll I'm talking about these companies what they do is they spend a tremendous amount of money on economic data and research so they have very very very good information on absorption and supply and and rent growth and expenses and companies you know you think about it if uh you know some of these these um these Brokers you know they're trying to sell you on on an investment property well they need to know everything that's happening in that market so all that stuff makes it into these into these um you know these quarterly reports there's so many other ones you know like um uh you know like Globe Street and um a Yardie and uh you know there's a there's a there's a um co-star is another one they're all really good uh utilities and softwares that track right growth and all that kind of stuff but you need to take it kind of with a grain of salt we do you know they're high level and you know so when we're looking at a market like Houston it's not meaningful because there's like a hundred sub-markets in in Houston right so then you got to go down to the sub markets even there it can't be that meaningful so their barometers and their things for you to look at but when you look at Phoenix you know it's impossible because North Phoenix and South Phoenix and east Phoenix and Central Phoenix they're all different so um you know you have to you have to get down to that into that minutia yep and then Brent has a question he said if you or Daniel do any vacation or short-term rentals what data do you track and where specifically do you find that data um there had I haven't found that there's a lot of great data around this so um you know one of the things that I one of the things I look for is you don't want boom and bust markets so that should be obvious but it's not obvious to everyone so you know where do people want to be for example what I'll give you a couple examples um they want to be in Orange County they want to be in Newport Beach Huntington Beach they want to be in Florida they want to be in um you know South Padre Island in Texas and you know they want to be in San Diego those are places that people think about and they go to so all right so if you know that already uh you know you can go to those markets and you can kind of see are there too many in a market are there not enough you know uh and then you got to look at how long and the amenity structure and all that kind of stuff so as an example you're probably not going to do that well on a short-term rental in Las Vegas because there's so many hotels and you know it's easier and hotel can they can walk their price down to you know 89.99 a month if they're off or sorry a night if their occupancy goes down so there's all these factors that you know but you first got to start off with you know why are they there and how many are there right and and uh so you got to be very careful then you price a quarterly based on the market yeah yeah I mean I think with um short-term rentals you want to focus on vacation areas right and I think another um issue you could find is if you were industry Reliant so if you're not an in a um a vacation area like say you're doing it in Akron Ohio where I'm from you know that's not a vacation area so now you're industry Reliant like why people are coming there are they coming there for a job or are they coming there for you know something you know a festival or you know why are they coming there and then do you want to be reliant on that specific thing because if that job market dries up then all of a sudden you have no one to rent to at least if you're in a vacation Market people are always going to be wanting to vacation in certain places but like Ken said you still have to check on you know if we go into a recession can people afford to go on a vacation and how many vacation rentals are there and it's hard to um track that because a lot of times in the you know short-term rental market people kind of just they can just make you know they can just rent out their house that they live in and go stay at their moms and now you have a whole another player in the short-term rental game and we're seeing that a lot here in Phoenix because if you look at like the Super Bowl that's coming you have people that are advertising for like a whole house for like 100 bucks a night because clearly they're gonna just go somewhere else and rent their house and now you as an investor are trying to make money on your property against people that are just running their place so it's it's trickier than the long-term rental market yeah and yeah I guess uh you you don't want to you don't want an event you want you know a destiny you want somewhere where people are going to go uh and they have historically gone you know that's what you want and you need to be in the right location right like you don't want to be in a vacation Market on the sketchy Outer Edge that nobody wants to like vacation in you know what I mean like if you're going to be in a vacation Market make sure you're by the malls and you're by the amusement parks and you're by the stuff people want to do because if you have this random vacation rental that's out in the middle of nowhere if things start to get cut and the market starts to shrink and that's what we're starting to see a little bit with these short-term rentals your rental is not going to get rented right yeah and and so you know one of the things that um impacts of course is how many of the others there are in the market so you know if you're trying to run a three-bedroom House in Orlando like you guys are doing this summer and there's 50 others within the three or four mile radius which is actually um not a stretch you know that means that there's going to be a lot more competition uh you know I was looking in Coeur d'Alene Idaho this summer and there's a lot more this summer than this coming up Summer that that there was last summer which is interesting now that could be because there's more people getting into the market or it could be that less people are going uh either way if there's more inventory so things are sitting vacant longer they're sitting on rented longer so all that comes into play and you know Coeur d'Alene Idaho is a I would call it a boom and bust Market because tell you what you know come come mid-september man the lights flipped down and you know that place is dead you know it's it's it crazy busy July August and let's say through Labor day but that's it and so you don't want to be in a market like that because you're gonna you're gonna get killed for the rest of the nine months absolutely all right well I hope you guys enjoyed our show we'll be live again next Monday at 11 o'clock Arizona time and make sure you hit the like button and check out our cyber monday deals I'll have Jerry put that back up on the screen if you're going to be buying the Inner Circle membership or any of our Master courses now is the time to do it it's the last day ends tonight at midnight Arizona time cheers guys foreign [Music] [Music]

Channel: Ken McElroy

Views: 10,140

Keywords: Rich Dad, Entrepreneurship, Investing, Personal Development, Get Wealthy, Earn Wealth, Ken McElroy, Entrepreneur, Rich Dad Advisor, Success, Business, Coaching, Real Estate, Real Estate Entrepreneur, Real Estate Investing, Lifestyle Business, Hustle, Ken McElroy Housing, Ken McElroy Real Estate, MC Companies, Real Estate Investment, Investing in real estate, Federal Reserve, Interest Rates, U.S. Economy, housing market 2022 forecast, housing market crash, housing market 2022

Id: JXu5CwmIEnI

Length: 52min 19sec (3139 seconds)

Published: Mon Nov 28 2022