Preparing your investment property for sale is key to maximizing your profit. Even little things like a fresh coat of paint can add thousands of dollars to your property’s sales price. Here are links to point you in the right direction for getting the most out of your investment property.

• If you decide to paint your property before selling, make sure you learn how to paint like a pro.
• Staging a small space such as an apartment is different than staging a home. Karla Davis provides tips for staging small spaces.
• If you’re selling a condo, you may be working with a small outdoor space. Mr. Smarty Plants answers a question about landscaping small outdoor spaces.
• Choosing a REALTOR® can be tricky. Minimize your risk by following the National Association of REALTORS® guidelines for choosing the right realtor.
• Make sure you avoid the top 10 mistakes sellers make when choosing a realtor.

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It goes without saying that selling your property is a large undertaking. Arming yourself with as much information as possible, surrounding yourself with knowledgeable professionals, and exercising due diligence when it comes to pre-sale property preparation can make all the difference in the world between a smooth, profitable sale and a stressful selling experience.

Your REALTOR® is your best friend.

Or at least he should be. Picking a REALTOR® is one of the most important decisions you will make when it comes to selling your property. Do your research and make sure to speak with other property owners and trusted friends for recommendations. After you have created a short list of potential REALTORS®, bring a few of your top choices in to take a look at your property and to “interview” with you. During this interview, you’ll want to gauge not only their industry knowledge and neighborhood expertise, but also determine how their personality and sales style meshes with yours. After all, this is someone you’ll be working closely with and entrusting with one of your most valuable financial assets. This is the time to be picky.

Make sure the price is right.

While it’s obviously important not to undervalue your home, it’s just as crucial not to overprice it. Generally speaking, overpriced properties linger on the market, potentially developing a bad stigma with agents and buyers. In short, an overpriced property is far more difficult to sell in the long-run and chances are the price will ultimately have to be lowered to match the market anyway. A fairly-priced home, on the other hand, will result in a quicker sale, more offers and, potentially, a higher price from competitive multiple offers. Pricing a property is all about strategy so, again, finding a savvy agent is critical.

Comparative sales are a great way to gauge the current market value of your property and to ensure your price point is one the market will bear. Your REALTOR® will have easy access to this information and should utilize it to gain a clear idea of the appropriate listing price.

Boost your curb appeal.

Potential buyers often begin their property search by driving by properties and narrowing their search down from there. This is to say that on their first visit to your property, they may very well never even walk through the door. As always, first impressions count so the exterior of your house should be as tidy and appealing as possible. Make sure that your yard and porch are clean and uncluttered, wash down walls and windows so everything is sparkling clean, and ensure that your yard is at least well-cared for and—even better—landscaped.

Staging goes a long way.

Staging is becoming an increasingly common practice in the real estate business. Staging involves bringing a professional into your property to outfit it with furniture and decorations that complement the house and demonstrate to buyers what it can potentially look like. Staging helps houses look more like homes and can make the difference when it comes to buyer interest. Ask your real estate agent for a good recommendation.

Ask tenants to pitch in.

In the case of rental properties, you may well have occupants in units while potential buyers are viewing your property. Make sure to give your tenants plenty of notice that potential buyers will be coming through and ask for their assistance in keeping everything as clean and tidy as possible. As with staging, this sends visual cues to potential buyers and may well increase your property’s salability.

While preparing for the sale of your property can seem daunting, like anything else it’s a step-by-step process. Taking your time, being thorough, and working with all the right people is the best way to ensure that your property sale is as smooth and profitable as possible.

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It takes only one problem tenant to make work a drag.  Save yourself a lot of stress by learning how to deal with problem tenants and—even better—how to screen them out during the application process.

• View some short videos about dealing with problem tenants on Law Info.
• The American Apartment Owners Association (AAOA) preaches the gospel of good due diligence before accepting prospective tenants.
• Not only do problem tenants exist in real life, they also make Second Life difficult.
• Here’s a great forum addressing one tenant’s  smoking problem.
• Eric Brown, the Apartment Veteran, has some great insights on apartment management … and marketing too.

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Chances are every landlord will encounter a problem tenant at one point or another in his career. Whether issues arise based on noise levels, delinquent rent payments, illegal roommates, or any number of other violations, dealing with problem tenants can be tricky. Following are some tried and true suggestions for dealing with issues as effectively as possible and—better yet—avoiding renting to problem tenants in the first place.

Prevent problem tenants from getting a foot in the door.
The importance of carefully screening tenants before locking yourself into a lease cannot be overstated. No matter how eager you are to occupy a unit, renting to an unqualified tenant is never worth it in the long run. In addition to checking credit and criminal records, be sure to call former landlords for applicant references.

Remember, some landlords may be unwilling to explicitly state that they do not recommend renting to a potential tenant for fear of litigation. Bear this in mind when speaking with references, and be sure to read between the lines when necessary. Sometimes what a reference doesn’t say is just as important as what she does say. Ask the applicant’s former landlord if she would rent to the tenant again. If the answer is “no,” think long and hard before handing over that lease.

Have a system in place.
Many leases neglect to cover behavioral expectations. Be meticulous and specific when it comes to setting forth your expectations, whether it be in your lease or as part of a lease addendum. Also, make sure you have a clear system for issuing warnings in place and that all tenants know how this system will work from the offset. For example, let tenants know that should problems arise, they will receive two written warnings for lease violations. On the third violation, they will be asked to vacate their unit. Finally, be sure that all tenants sign off on these guidelines before handing over the unit keys. This will ensure there is no room for dispute further down the line.

Follow through with your system.
Just as important as tenants abiding by your guidelines is that you abide by your guidelines. After all, if you don’t take your rules and regulations seriously, why should your tenants? In other words, if a tenant violates a building rule or regulation, make sure you follow up with the appropriate prescribed action as set forth in the lease agreement. Also be aware that an inconsistent system could cause problems down the line. It’s important that all tenants are treated equally. For example, if you neglect to write one tenant up for a noise violation, you can hardly write up another tenant for a similar violation.

Keep the lines of communication open with all tenants all the time.
When it comes to problem tenants, communication is critical. In cases where a landlord has developed a friendly relationship with tenants, it can be uncomfortable to put on the disciplinarian hat and issue a formal written warning. You have to maintain your role as the resident authority, but you don’t have to do so at the sacrifice of your relationships with tenants. Should such a case arise, keep the channels of communication open. Follow through with the prescribed warning, but take the time to talk openly with your tenant—listen to his side of the story and explain where you’re coming from. Also in terms of communication, if a tenant complains about a fellow resident, be sure to follow up and let the tenant know you’ve addressed the problem.

If tenant problems are serious and consistent enough that eviction is warranted, carefully check your state and local laws and take the steps necessary to begin the eviction process. Eviction is never ideal, but if you don’t address the problem tenant, you may inadvertently lose some of your good ones. And no landlord wants that to happen.

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This week’s blog is all about keeping  your staff motivated. Check out these motivational resources for more information.

• So what exactly is motivation?
• Trying to motivate others is difficult when you’re not motivated.  Learn 100 Ways to Motivate Yourself.
• And for those days when you need a little extra inspiration, check out these motivational quotes.
• Motivation results from great leadership.  The Leadership Challenge by Kouzes and Posner is a must-read for all leaders.
• Evaluate yourself as a leader and see how your employees view you by taking the Leadership Practices Inventory (LPI).

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It’s likely that one of your company’s biggest assets doesn’t actually appear on a balance sheet or in a property portfolio. To see this invaluable asset, look no further than your employees. In a business that inherently involves dealing with people and making quick, educated decisions, a well-versed employee is an invaluable asset. With this in mind, there are many measures you can—and should—take to do everything in your power to keep good staff onboard for the long haul.

1. Stay on top of market salaries.

Carefully research the going salary for comparable positions in your region and make sure you are at least matching it. While everyone wants to keep their overhead as low as possible, trying to get “bargain” employees will rarely work to your benefit in the long run. You’ll either end up losing employees to companies that are willing to pay higher wages or end up with an inferior staff. Consider that according to Entrepreneur.com the average cost of losing an employee is 38 percent of the departing employee’s annual wage and it’s readily apparent that it’s financially savvy to make sure good employees remain on staff.

2. Be diligent about goal-setting and annual reviews.

Goal-setting and annual reviews may elicit a few groans from your staff, but don’t be swayed—they’re essential. Goals offer a clear-cut method of tracking employee progress and ensuring that both you and your employees have a good idea of where growth has been achieved and, alternatively, where training may be necessary. Additionally, goals and reviews instill a measure of accountability for staff and provide both you and your employees with a built-in opportunity to take stock of where they stand and to make adjustments as necessary.

3. Promote from within.

Whenever possible, promote from within. Although this is not always feasible in cases where specialized positions need to be filled, if you are never promoting from within this likely means it’s time to evaluate your management style. A good employee-manager scenario should involve training and, subsequently, consistently increasing employee responsibility.

4. Delegate responsibility as it is earned.

Even in the absence of an official promotion, make sure your employees’ responsibilities are consistently increasing (this is, of course, assuming, that they are earning such increases). The more ownership of and investment in your company employees assume, the more effort they will extend on your business’ behalf. As boss, you also want to ensure that you have as many capable hands pitching in as possible. Everyone wins when employees are empowered.

5. Recognize milestones and outstanding achievements.

Everyone likes to be recognized. Pay attention to what’s happening around the office and reward employees who go the extra mile. Even when money is tight, a $25 or $50 gift card to a restaurant or local shop will be well worth the expenditure. Remember, you’re in a high-touch industry—you may be able to negotiate a trade with local vendors wherein you offer advertisement opportunities (e.g., including coupons for their product or service in new tenant packets) in exchange for gift cards that can be put toward employee incentives.

Finally, remember that maintaining staff morale is not an “extra” task to tackle when you have more time or increased profits. By then, it may be too late. Maintaining good staff is nothing short of essential to good business.

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Managing a condo or homeowners’ association (HOA) differs slightly from managing multi-family housing or an apartment. Now that you know the 5 keys to association management, check out these links for more association management resources.

• The Community Association Institute (CAI) is a leader in community association education and a great resource for trustees and residents alike.
• NOLO® provides a great HOA definition as well as a frank discussion of HOA limitations.
• Sign up for The Cooperator, a monthly publication that includes articles on condo management, finance, and maintenance.
• Join the Trulia forum conversation about the difference between condo association by-laws and rules and regulations (yes, there is one).
• Do you know the seven questions everyone should ask before buying a condo?

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Whether you’re in charge of managing a well-established condo association or a brand-new one, whether your membership is 5 or 50, the guidelines below will make the difference between a successful association and an unproductive one.

1. Build a community.
Sure, you’re dealing with a network of neighbors that dwell in close proximity to one another but that doesn’t necessarily mean there’s a built-in sense of community. Fostering ties between association members—and particularly condo residents—is one of the most important tasks you have to accomplish as a condo association manager. A solid community is an inherent part of any productive condo association.

2. Give everyone a voice.
Essential to a solid community is good communication. Remember that members of the association are ultimately paying for the decisions your association makes, whether they ultimately agree with them or not. Because everyone has a vested interest in the matters at hand, it’s critical that all members feel they have an equal chance to have their voice heard. While you may be the spokesperson, your biggest task is to make sure that you are representing your contingency and acting in their best interests. Which means it’s imperative that you know where everyone stands on various issues that affect the condo.  And remember, the more input you have, the more likely you are to come up with creative solutions—allowing all members to speak their mind and offer their opinions will go a long way toward ensuring everyone wins in the long-run.

Perhaps most important, foster an environment where all members listen to one another’s opinions respectfully. After all, no matter how vocal of an association you have, if no one is listening it’s all for naught in the end.

3. Communication is key.
Now that you’ve got your membership talking, you need to pull those many voices together into one decisive communal voice. As a manager, it’s your responsibility to liaise between a number of involved parties including unit owners, lessees, legal entities, real estate offices, and lending institutions. It’s up to you to make sure that everyone receives the information they need as efficiently as possible. There are a number of ways to disseminate information and you should choose whichever one works best for you and association members. And, remember, you also want to make things as easy for yourself as possible. Consider the following options for communicating with association members:

• Send out a regular newsletter (weekly, monthly, bi-monthly or quarterly—whatever makes the most sense for your association)
• Set up a website where news is posted as necessary (but if you take this route, make sure you have a web-savvy, proactive membership)
• Send out emails on an as-necessary basis (make things easy on yourself by setting up a distribution list and sending out an annual notice for email address updates)
• Organize regular meetings where everyone can come together to share information

4. Be financially savvy.
Whether you’re finding a contractor or shopping for condo insurance, do your homework and make sure you’re getting the best value possible for your association. Ask for referrals from trusted sources, request bids, and read reviews when available. And remember, the “best value” is not always the cheapest option—you’re better to pay a little more up front if it makes the difference between getting the job done right the first time and revisiting the issue in a few months or years.

5. Stay organized.
Organization is nothing short of critical to effectively managing a condo association. You’ll want to make sure that you keep meticulous records of everything—meeting minutes, important correspondence, repairs and upgrades, and financial records are just a few of the items you’ll need to track. Investing in a simple system that can be easily accessed at all times (not only by you but by all necessary parties) will ensure you stay on top of everything.

Finally, remember that even though you may be the association manager, you’re not in this alone. You have a great resource right at your fingertips—association members. They have a vested interest in making sure that the condo community, communication, finances, and records are in good shape. The more you engage your members, the better off everyone will be.

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Reading about real life property management situations and the lessons other landlords have learned the hard way is a great way to get practical tips that will help you solve issues that could potentially become tenant complaints in the long-run. After all, why make your own mistakes when you can learn from those of others?

• When bed bugs infest your property are you responsible? This British property management company argues that bed bugs are the tenants’ responsibility.
• Noisy neighbors are a common source of tenant complaints. Find out what tenants have to say on the matter by clicking here.
• Prevent tenant complaints before they happen by outlining tenant living guidelines.
• Don’t end up like this landlord.  If you have broken windows, fix them. If you have rats, exterminate them. If you have gas leaks, close them.
• Tenant compliants can result in a PR nightmare. Case in point: After reading about Connolly Properties, would you want to rent from them?

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