November - Greater Springfield Apartment and Housing Association

NOVEMBER 2007
The Newsletter of the Greater Springfield Apartment & Housing Association
nside this Issue:
A Message From Brent
Dear SAHA Members:
It is that time of year again! We have received many
SAHA Award Nomination Forms and are looking
forward to sharing the results with you. Join us at the
Springfield Apartment & Housing Association Award &
Member Appreciation Banquet on Friday, November
16. It is an event you will want to be part of!
With 2007 drawing to a close, the board has
recommended the following members serve as
officers for 2008-2009:
President: Sandy Wheeler
Vice President: Sam Coryell
Secretary/Treasurer: Jay Titus
Directors: Gary Wilson, Mike Breeding,
Butch Morris, Nancy Preffitt, Bob Hunt,
Brent Haselhorst, Tim Roth, Gordon Elliott,
Terrie Smith and Barb Rohrbaugh
Our special thanks go to US Bank, Overall Plumbing,
Metro Builders Supply and Servpro of Springfield for
their Gold Sponsor donations for the upcoming
Banquet! Thank you for showing your support!
Though we will be taking December off for the
holidays, we’re looking forward to presenting very
relevant topics at the 2008 membership meetings,
starting with January’s presentation,
Thank you for letting us know what you’re
interested in as property owners and managers.
The SAHA website is being updated and is slated to
be unveiled early in January 2008. It will include a
Vacancy Survey link making it easier for you to
participate in this valuable market summary. We
appreciate your suggestions about how the website
can better serve you ~ keep them coming!
See you at the next meeting!
Sincerely,
Brent Haselhorst, President
Springfield Apartment & Housing Association
SAHA is a non-profit, professional organization dedicated
to the betterment of the rental housing industry. Our members strive to provide and promote quality affordable housing.
SAHA serves these members through •Education •Legislation •Communication
Housing News
November 2007
2
Should you hold out for your asking rent or lower the price to fill
a vacancy? First, let's clarify that this in no way refers to dropping
your standards in order to fill a vacancy. No experienced
landlord will dispute the fact that you're better off with an empty
apartment than having a full apartment with a bad tenant in it.
But, how long do you keep an apartment empty waiting for a
good tenant to come and pay your price?
Over the past two years, I've had a string of vacancies that would
make any landlord shudder. The local economy has been terrible
and at any given time, I typically had 15%-20% of my apartments
vacant. I spent lots of time advertising and working to fill the
empties, but nothing I did seemed to help. Most of my empties
stayed that way for months and months.
As apartments sat empty, we'd try lowering the rent $25/month
and we'd increase the advertising campaign. After another month
or two we'd drop the asking rent another $25/month. There were
several reasons that we dropped the rents slowly and cautiously.
For one, we thought our rents were fair and our whole budget was
based on charging those amounts. Another reason was that other
tenants living in those same buildings were paying those same
rents and I didn't want to deal with the turmoil of angry tenants
who were paying $975/month when an identical empty apartment
was now being advertised for $950/month or even 925/month.
After close to two years of fighting this battle, I decided to waive
the surrender flag. I still had close to a 15% vacancy rate and the
monthly loss of rents was killing me. I dropped all the rents on the
open apartments by $125/month and started an advertising
campaign that our apartments were affordable and the most
reasonable around. Within a month, we had filled almost every
vacancy. Even though these lower rents had lowered my combined
monthly rent collection by about $1,000/month, it was far better
than the $7,000+ that the empty apartments were costing. Now
that they were full, our advertising costs dropped and we no
longer had to pay the heat and electricity on these units that were
previously empty. No complaints yet from the existing tenants who
are still paying the original higher rents, but I expect a few
complaints will roll in over time. I'd much rather deal with a few of
those than have that huge rent loss each month.
So what did I really learn from all this? Well, I'm not just going to
drop rents any time a vacancy occurs. However, I'm not going to
hold out for months and months to rent a place for a certain
amount if it just isn't working. If I can't rent an empty apartment
after a month of showing it, I'll instantly drop the rent $50-$75. If
it still doesn't rent after another couple weeks of advertising and
showing then I'll drop it another $50-$75. If it rents at $150 below
what I had originally planned, that's a loss of $1,800/year.
Comparatively if a $900 apartment sits empty for four months I'll
lose $3,600. So I'd rather rent it for $825 or even $750 if that's
what it takes to get it filled right away. When the local economy
improves, I'll work at raising some of these rents up closer to
normal. Also, as the economy improves, perhaps I won't be as
quick to drop rents. But for right now, when apartments don't rent,
I'll drop the asking rent and drop it fast.
CHECKLIST OF REASONS FOR TURNING DOWN AN APPLICANT
Following is a list of legitimate reasons for eliminating prospects.
Please learn them and apply them correctly when separating the
wheat from the chaff.
Housing News
* False information on the application
* Too many occupants
* Lack of sufficient income to pay rent
* Does not pay bills
* Accounts that have been turned over for collection
* Record of past due or unpaid rent
* Bankruptcies
* Applicant has judgment or suit liens
* Disruptive activities
* Damage to previous dwelling
* Heavy drinking/smoking
* Selling or representing prostitution * Pets (if you do not allow them)
* Possession of stolen property
* Possession of illegal firearms
* Negative previous landlord comments
* Record of selling, purchasing, manufacturing, or distributing illegal drugs
Know what reasons you can and cannot use for eliminating the
less desirable tenant prospects. Knowing and applying this
knowledge correctly can make a world of difference in your
landlording career.
YOU MAY NEED TO ADJUST YOUR SELECTION CRITERIA
According to a recent study, average rents nationwide will rise 4%
this year. This study was released the end of August 2007 by the
Center for Housing Policy. However, the number of people shelling
out more than half their income to landlords has doubled over the
past decade. The problem is expected to get worse as rents
continue to rise and foreclosures force home owners into the rental
market.
ANOTHER QUESTION TO ASK ON YOUR APPLICATION
With so many foreclosures currently occurring, start asking rental
applicants if they currently rent or own? If they do own, who is the
mortgage with? Many landlords have discovered homes to buy
cheap by asking these questions.
DON'T GIVE UP - GET EDUCATED!
When the economy is tough and challenges are frustrating, often
landlords, especially those who are relatively new at real estate
investing, often consider giving up. After reading of a landlord's
frustration recently on the MrLandlord Q&A Forum, about how
he/she had tried different management techniques and nothing
was working, I am motivated to share the following.
I'm going to ask you, and others landlords who also may be
frustrated, a serious question. Have you tried taking some
extensive time to 'educate' yourself on how to be a successful
landlord? A lot of people post questions on real estate and
landlording forums, and read monthly publications like this one,
which is great. However, while online feedback from others and
occasional reading of real estate tips are a big help; in my
opinion, that is only a small part of what most landlords need to
really be successful. Before you totally give up, may I suggest that
you participate in a landlord class, training, conference or cruise.
This suggestion is for the hundreds of rental owners who read this
monthly publication, yet are frustrated because of the continual
challenges you face. If that's you, and especially if you are
relatively new as a landlord, I encourage, challenge and dare you
to really get serious about this landlording thing. There is a lot of
money that can be made from rental property, and it does NOT
have to be a continuing frustrating experience. If your association
is conducting or sponsoring any type of landlording class or
training in the future, make it a priority to attend, where you can
participate, learn and exchange ideas with other successful
landlords with many years of experience.
These tips are from contributors to the MrLandlord.com website and newsletter. For a free sample newsletter,
call toll-free, 1-800-950-2250, or visit their informative website at mrlandlord.com to register to win a free
landlording book.
November 2007
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Manager of the Year
Maintenance Person of the Year
Leasing Person of the Year
Vendor of the Year
Community of the Year
Large Owner of the Year (over 100 units)
Small Owner of the Year (less than 100 units)
Yes, I plan on attending the SAHA Award & Member Appreciation Banquet on
November 16, 2007. (Please respond no later than November 13.)
Housing News
November 2007
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The Springfield Apartment & Housing Association will hold
an Awards Banquet/Installation of Officers
on
at
at 6:00 - 7:00 p.m. (Social with cash bar), 7:00 p.m. (Dinner)
and 8:00 p.m. (Awards & Installation of Officers)
Nominations are free!
Plaques will be presented to the winners along with recognition in the December newsletter.
Please select category:
___
___
___
___
Manager of the Year
Maintenance Person of the Year
Leasing Person of the Year
Vendor of the Year
Why:
Nominated by:
Company:
Phone:
Email:
Housing News
___ Community of the Year
___ Large Owner of the Year (over 100 units)
___ Small Owner of the Year (less than 100 units)
(Please attach a 300 word description as to why this individual/community should win.
Feel free to attach a picture and a resume.)
SAHA
1717 E. Republic Road, Suite A
Springfield, MO 65804
417.883.4942 (fax) 417.886.3685
November 2007
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Housing News
November 2007
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Terrie Smith
Housing News
November 2007
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Over-All Service Specialists .....417-866-6276
Midwest Rug ..........................417-869-3030
Lockwell Heating & Cooling ....417-868-8100
Ozark Cleanpro L.L.C. ...........417-425-4722
Apartment Finder/Maximum Media . 800-795-5207
Gershman Mortgage ...............417-877-1320
ForRent.com ........................(757) 351-7359
Mid America Mortgage Services 417-882-7373
Metro Housing Finder ............417-889-3880
Savage, Inc. ..........................316-264-0800
Pellham Commercial Realtors ..417-890-6868
Metro Builders Supply .............417-300-0666
Fitch Electric ............................417-889-8008
Neale & Newman L.L.P.
Brian Asberry .......................417-882-9090
KennCo Contractors ................417-881-8147
Lowther, Johnson Law Firm
Craig Lowther ......................417-866-7777
Servpro of Springfield ..............417-865-7711
Citigroup/Smith Barney ..........417-885-1618
All Glass .................................417-849-2548
Servicemaster ..........................417-868-8111
Empire Bank ..........................417-841-4485
Great Southern ......................417-888-4345
Guaranty Bank ......................417-885-0506
Metrolpolitan National Bank ...417-823-9944
US Bank ................................417-868-4473
Air Services Heating & Air
Conditioning .........................417-866-1460
Lockwell Heating & Cooling .... 417-868-8100
Over-All Service Specialists ......417-866-6276
S.S. & B Heating & Cooling ......417-866-0990
Wood & Huston Bank .............417-881-6400
Adco-Burch Insurance ..............417-877-8338
Surplus Warehouse Springfield 417-862-0100
Shriver Companies .................417-932-4432
Media.com Communications ..417-875-5500
Housing News
Mike Breeding – State Farm .....417-882-2800
U-Link LLC...............................417-818-2507
U.S. Lawns of the Ozarks..........417-353-1601
November 2007
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Metro Builders Supply ..............417-300-0666
Sun West Storage .....................417-864-7722
Thousand Hills Golf Resort ........417-496-3941
KennCo Contractors ................417-881-8147
MTS Contracting .....................417-865-9991
Two Men and a Truck ...............417-866-0376
Queen City Construction .........417-866-8834
ServiceMaster Restoration .........417-868-8111
Springfield Striping & Sealing ....417-831-5114
Surplus Warehouse Springfield .417-862-0100
Critter Control of Springfield .....417-581-5899
Sign-A-Rama ...........................417-886-5050
Republic Pest Control ................417-732-4295
Pepsi-Cola Bottling Co. ............417-862-9238
Domino's Pizza .........................417-865-8443
Wood Re New & Tile Too! ........417-833-3303
Drain Doctor ............................417-724-2890
Over-All Service Specialists .......417-866-6276
City Utilities .............................417-831-8300
Ward All Service .......................417-865-1302
Wood Re New & Tile Too! ........417-833-3303
Doug's Pool & Spa ....................417-882-7665
Digital Print Ink ........................417-881-5309
Minuteman Press ......................417-887-1234
Home Again Properties .............417-268-5030
Springfield News-Leader ...........417-836-1168
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Ozark Rentals ..........................417-831-4640
Advantage Waste .....................417-866-8700
Waste Corporation (WCA) ........417-831-5320
Housing News
November 2007
www.springfieldhousing.net
9
Housing News
November 2007
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Housing News
November 2007
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Housing News
November 2007
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Housing News
November 2007
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A landlord may not evict a tenant without
a court order. The landlord may begin
eviction proceedings if a tenant:
The tenant will receive a notice that an
eviction lawsuit has been filed and will
have the opportunity to be heard in court
before any eviction.
• Damages property
• Fails to pay rent
may sue a landlord if
all or part of the
security deposit
is wrongfully withheld.
• Violates the terms of the lease
• Injures the lessor or another tenant
• Allows drug-related criminal
activity on the premises
• Fails to vacate at the end of the
lease term
• Gambles illegally on the property
Housing News
This information is from The Office of the
Missouri Attorney General: Missouri’s LandlordTenant Law, The rights and responsibilities of
landlords and tenants. The consumer guide is
available online at www.ago.mo.gov.
November 2007
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The Springfield Apartment & Housing
Association thanks the following
members for renewing their
membership!
Annual Dues invoices are mailed based on the month
of the anniversary (join date) .
A.R. Wilson, Inc.
Accent Properties
Advantage Waste
Affordable Housing Action Board
Air Services Heating & Cooling
All Glass
Apartment Finder
Bell Management
Ben Steele Properties
Better Business Bureau
Bibbs (Nellie), Independent
Bridges Apartments
Bryan Properties
Caffey Rentals
Calhoun, Independent
Canterbury Townhomes
Casagrand Real Estate & Investment
Chandler Properties
Chen (Jun), Independent
Citygroup/Smith Barney
City Utilities
Coryell, Independent/TLC Properties
Cowherd Construction Co.
Crabtree (Tyler), Independent
Craigmont Place Apartments
Credit Bureau Services
Critter Control of Springfield
Culbertson & Faegre, Independent
Dameron, Independent
David Properties
Debco Management
DHS Property
Digital Print Ink
Domino’s Pizza
Doug’s Pool & Spa
Drain Doctor
Elliott Lodging
Empire Bank
Eoff & Associates
Fairwood Enterprises
Fitch Electric L.L.C.
Forest Park Apartments
Fredrickson ( David), Independent
Freedomway Enterprises
G & S Rentals
Gershman Mortgage
Gillenwaters Developments
Great Southern Bank
Greater Springfield Board of Realtors
Greystone Properties
Guaranty Bank
Hamilton Properties
Hargrove Rentals
Haselhorst Properties
Housing News
Haun Properties
Hazell Investments
Heyle Realtors & Counseling Services
Home Again Properties
HomeVestors
Horizon Court
Housing Authority of Springfield
Hunter Property Management
J & J Properties
Jefferies Duplexes
John Andes Properties
John B. Hughes Apartments
John Morris Equipment
Johns Investments
Kayser (Dave), Independent
Kee Wes Service
Kellett (Angie), Independent
Kennco Construction
Key Management Company
King Rentals
Kodiak Property Management
Lacy Investments
LL&B Properties
Lockwell Heating & A/C
Lowther Johnson Law Firm
Magers Properties
Manley (Loy), Independent
Manley (Ralph), Independent
Mayhew (Soonok), Independent
McCann Properties
McKinnis (Rick), Independent
Media.com Communications
Merritt Properties
Metro Builders Supply
Mid America Mortgage Services
Midwest Rug Co.
Millennium Properties
Minuteman Press
Momentum Real Estate Investments
Monarch Propertyies
Morelock-Ross Properties
MTM, LLC
MTS Contracting Inc.
Neale & Newman Law Firm
Newman Enterprises
Northside Rentals
Oakwood Terrace
Outzen (Sharon), Independent
Ozark Cleanpro Carpet Cleaning System
Over-All Service Specialists
Ozark Realty Management
Ozark Rentals
Pay to Stay Properties
Peck (William), Independent
Pellham Commercial Realtors
Pepsi Cola Bottlers
Perry Rentals
Pin Oak Properties
Preffitt (Dick & Nancy), Independent
Preston Holdings, LLC
Priority Homes, LLC
November 2007
Professional Property Management
Queen City Properties
R.B.S. Properties
Realty Services
Republic Pest Control
Rumley (William), Independent
Savage, Inc.
Selement Rentals
ServiceMaster Restoration & Construction
Servpro of Springfield/Greene Co.
Shaddy Rentals
Sifferman Manor
Sign-A Rama
South Creek Development Corp.
Southwood Properties
Springfield Newsleader
Springfield Striping & Sealing
SS & B Heating & Cooling
State Farm Insurance
Stump (Keith), Independent
Surplus Warehouse Springfield
SW Center of Independent Living
The Villas at Copperleaf
Thousand Hills Golf Resort
TRK Properties LLC
Tuck Rentals
Turner Properties
Two Men and a Truck
Uckele Independent
US Bank
U.S. Lawns of the Ozarks
Waste Corporation of Missouri
Wilhoit Properties
Wood & Huston Bank
Wood Re New & Tile Too!
Encore Management Group Old South Plantation & Tall Grass
For Rent Media Solutions Travis Tisdale
Greystar Lake Shore Apartments
Metropolitan National Bank John Maupin
Aimee Dixon Plumlee, Independent
Queen City Construction Greg Cobb/Robert Sasser
Shriver Companies - Darrell Shriver
U-Link LLC - Matthew Thomas
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PRSRT STD.
U.S. Postage
Springfield Apartment & Housing Association
1717 E. Republic Road, Suite A
Springfield, MO 65804
Springfield, MO
Permit No. 357
Phone: 417.883.4942
Fax: 417.886.3685
Email: [email protected]
www.springfieldhousing.net
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TOPIC SUBJECTS & SPEAKERS SUBJECT TO CHANGE
ALL
Housing News
M E E T I N G S
B E H E L D A T N O O N A T T H E G O L D E N C O R R A L ,
_________________________________________________________________________
W I L L
November 2007
UNLESS OTHERWISE SPECIFIED
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