The recently passed FAA Air Transportation Modernization and Safety Improvement Act will authorize in excess of $60 billion for the Federal Aviation Administration, with the intent to modernize the aviation sector. This bill includes an interesting--and controversial aspect--drones. 

It may sound like a futuristic and space age additive, but the truth is, they're here. And by September 2015, the FAA is required to open U.S. airways to Unmanned Aerial Vehicles (UAVs) or drones--including to commercial industries. That's where property and real estate management come in. 

Several high-end California real estate agencies had been utilizing drones for unmanned aerial photography (which agencies know can serve quiet an expense) of high-end estates. However, these operations were halted after the bill passed till the FAA releases its new set of laws. 

Naturally, there's also interest of the public, including residents, who may feel their privacy rights are at stake. 

Let's Talk. What do you think about the future of drones in these markets? Read what the experts had to say in Halligan's original article on the Software Advice blog: Drones: A Controversial Eye in the Sky for Property Managers.

I am sure this question goes through the minds of many new landlords. And it is an area that, if not handled well, can cause many headaches and heartaches.  I have a friend who recently had to evict a tenant for not paying their rent, and then to add insult to injury had to clean up the complete mess they left behind after vacating the property. No one wants to deal with that kind of situation and proper tenant screening is the best way to minimize the risk.

However, tenant screening is also subject to fair housing laws. Landlords, who are not formerly trained in fair housing law and may be unaware of local landlord-tenant legislation, put themselves at risk of litigation if the screening is not handled properly.

Fair housing legislation is in place to prevent unlawful discrimination based on race, color, national origin, religion, sex, familial status, or handicap.  Some state laws may include additional protections, such as marital status, age, sexual orientation, and more.

It is extremely important to handle the screening process in an educated and professional manner so that you avoid questions, comments, and conversation that may lead to accusations of discrimination (intended or not!). You must treat each applicant equally, meaning you ask everyone  the same questions and expect them to meet the same objective criteria.

What kind of questions can landlords ask tenants during the screening process?

• Financial Information, to determine the ability to pay rent
• Rental History, to find out if there have been issues with rent payment or proper care of past rental properties
• Work History, to verify employment
• Criminal History
• Move in timeframe and reason for the move

What should they avoid completely?

• Discussion about family or children
• Racial comments or conversation
• Conversation about religious beliefs
• Conversation about marital or sexual relationships
• Personal conversation about the tenant
• and more...

In the end, you must choose a tenant based on their ability to pay the rent and care for the property. If they meet the objective criteria you've established in advance, then the tenant is qualified and must be offered a chance to rent the property.

Personally, I've been very fortunate to only have to go through the tenant screening process once since becoming a landlord myself.  It is one of the stickier aspects of the job and I certainly would not have done it alone. We relied on a tenant screening service to provide us with the data needed to make an objective decision. Some of these services "score" the tenant based on these criteria and make a recommendation to rent or not to rent to them. This takes your personal viewpoint completely out of the equation.

An even better solution would be to hire an experienced professional to help you with the marketing, screening, and leasing process. Some property management companies offer lease-only services, designed to help you market the property, screen tenants, and get a signed lease. I am very impressed with the property managers I meet through NARPM® (National Association of Residential Property Managers) events. They are educated professionals who hold themselves to high ethical standards and pursue education that helps them increase their industry knowledge and better serve their clients. Visit the website to view a list of NARPM® chapters and their members.

When you are looking for a tenant, it is tempting to hold out for a "perfect match" - the tenant you've been imagining in your head. But, you must remember the legal implications of being a landlord and accept the "perfect match" on paper - the tenant who meets the criteria to rent your property.

To keep my finger on the "pulse" of fair housing issues, I set up a Google Alert to deliver me links to relevant online articles and I also follow the Fair Housing Defense Blog.

Let's Talk. Landlords, how do you make sure you comply with fair housing law when you market your property and screen tenants?

You might be asking yourself what Seth Godin’s blog post has to do with saying “Happy Holidays.”  I might be asking myself the same question in your shoes, so let me explain.

(Warning: stop reading here if you don’t want to know.)

There is an assumed culture of genuineness developing – Facebook, Twitter, LinkedIn, other online communities, review sites, and more. There is a growing level of transparency because people can talk about you on the Internet . . . whenever they like.  Influence of business and personal reputation has shifted into the hands of the “beholder” – we no longer have as much control over the public perception of ourselves or our business. Along this journey towards transparency, we’ve seen increased celebration of individual uniqueness, opinion, and being true to oneself.

This is why I just can’t say “Happy Holidays” to you . . . or “Season’s Greetings” for that matter. These words don’t mean anything to me at all. If I said them, they would be empty words said to avoid criticism and offense.  I must absolutely say “Merry Christmas” not because I think you celebrate Christmas or to persuade you to believe in something you don’t, but because it MEANS something to me. Saying "Merry Christmas" is Trustworthy . . . not "trusty."

When I wish you a Merry Christmas, I am wishing good things for you: joy in your life, a reason to celebrate, an atmosphere of love, and more.  I care enough to say this because I like you and I want to connect with you on a bit deeper level – whether you are a family member, a co-worker, my customer, or someone I have a chance encounter with throughout my day. When I say “Merry Christmas” to you, I want you to feel the friendly affection that is behind the words. I could just say nothing – that would be more trustworthy than saying something that does not mean anything to me , but I choose to be genuine . . . real.

So . . .Merry Christmas to you, my friend. I wish you a time of peace, love, joy, and contentment. I hope your life is full beyond the gifts you receive and the feasts you enjoy.  

And, you know what?

Even though I celebrate Christmas and fully believe in the promise God delivered to us through his son Jesus Christ, I am happy to receive a different greeting from you . . . as long as it means something to you and comes from your heart. Tell me Happy Hanukkah, Happy Kwanzaa, or whatever (positive) thing you like. I will know you are saying it because you care.

 Let’s Talk.  What means something to you at this time of year? How do you express it?

This is why for the love of sharing my experiences as a zerovacancygal I bring you behind the scenes of tenant personality profiles.

Does this sound all too familiar?  Keep reading and make your own conclusions

1. The professional renter who’s a B/C+ applicant on paper, great personality on first impressions but then becomes a serial “NSF” tenant after they’ve moved in and deposited the 1^st and last month’s rent. Unique individual because not only do they keep their daytime job, but a hobby of theirs is discerning the “grey areas” of residential tenancies act.
   
   
2. The Venom Spitter- is a foul mouth tenant with a superiority complex . They don’t dialogue, they command; they don’t respect themselves let alone co-tenants, landlords or a property manager. But the weird thing is they often pay rent on time, their unit is immaculate; they actually host a ton of parties and have friends (is this real? You ask). Well like mom and pops said “never give in to a bully” so I’d say bear it for as long as you can.
   
   
3. The Tenant turned landlord – the roles are clear on the tenancy agreement but not in real life dealings with this person. They make simple procedures difficult by being uncooperative. Obviously they don’t own the building but they gather klout via gossip with other tenants. Good news is that sooner than later – late rent notice or eviction time everyone’s role does become clearer.
   
   
4. The Complainer – a conversation with this person is often 1 way, they do all the talking and you do all the listening. Because they focus only on problems not solutions nor on opportunities for solutions. They are hard to please so I’d recommend don’t bother; stand up to them by dropping nuggets of things you’ve done on time, well and worthy of being celebrated even if they don’t think so. Beware of Chronic complainers for they sap you of positive energy and can rob you of precious time if you allow it.
   
   
5. Fairytale Story – this is the one you pray for because they are just a delight to have around, be around and serving them is a treat because they get IT. By IT, I mean the roles and responsibilities of a tenant are not just legal jargon or meaningless syllables to them. They operate by it, they pay rent on time, they have a pride of rental ownership in the space/building, they get respect because they give it, they show empathy , and ultimately they possess a healthy appreciation for what it truly takes to run the place they call HOME.
   
   

There you have it, 5 personality profiles to watch for when screening your next tenant for that fabulous space you have for rent.

Remember, we are all human and imperfect in our ways; but in our daily interactions with each other we can make a conscious on how will the conversation end?

Is it with a smile or with a frown?

With a smile . . .

Your  zerovacancygal

Guest Post by
Jumie Omole

Founder of
Abode Property Management

Let's Talk.  What tenant sterotypes have you encountered?  How do you find ways to effectively manage different tenant personalities?

Jumie is a member of the Let's Talk Property Management Community.  She was the featured member for August 2010.

Jean Storms MPM ®, a property management industry expert and owner of LandlordSource.com, outlines some suggestions in her article "Do Your Manuals Comply with Fair Housing." In it she challenges property management companies to go through their manuals regularly to make sure they remain an asset and do not become a liability. Here is an overview of questions you should ask yourself, but be sure to read the complete article to get some specific implementation advice 

• Do you have a general Fair Housing Policy in your company manual?
• Do you include specifics about the Fair Housing legislation that form the backbone of today's Fair Housing Laws?
• Does your manual include state-specific fair housing laws, which may dictate additional requirements?
• Do you update your manual regularly to ensure it changes along with law? 
• Do you educate your current staff about the changes?

Fair Housing Compliance touches many key areas of day to day property management from marketing and advertising, to conversations with tenants and owners, to the questions asked on forms and documents.  It important to educate your new and existing staff, give them a reliable reference point (like a policy and procedure manual), and to emphasize the importance of following the law by keeping your staff current as the law changes.

Let's Talk.  Does your property management company have policy and procedure manuals for your staff?  How do you make sure your team members keep Fair Housing compliance top of mind as they are servicing your prospective and current owners and tenants?