Resident Screening - Merchants Information Solutions, Inc.

Apartment Sector to be Among First to Recover

noreply@blogger.com (MGM) — Fri, 20 Aug 2010 15:56:00 +0000

This morning, in an article (Early Surge Seen in Apartment Demand) published in the Investors Business Daily, the apartment sector is predicted to be among the first to experience recovery. While the labor market remains very unstable and this week's unemployment figures (increasing unemployment) don't bode well, the recovery (when it does finally occur) should visit the apartment sector first.

This is welcome news as multi-family housing has, during the current recession, become an euphemism for younger families losing their homes. Mom, Dad, and children are moving in with Grandma and Grandpa. Young single adults have opted for the financial security of living with Mom/Dad in some cases, or a larger number than usual of roommates in the home or apartment.

The central point in all of this is that there is pent up demand for additional living space when the economy improves. Some of that demand is being felt as the economy has improved over the last few months, but it will require a sustained recovery for demand to return to normal levels.

Dealing with Bad Tenants

noreply@blogger.com (Jaycee Fox) — Sat, 08 May 2010 14:45:00 +0000

There are advantages to being a landlord. It can make for a nice additional income enabling one to get ahead financially. This is what everyone wants in today’s financially unstable world. If rental property is selected wisely, the mortgage debt can decrease over time while having a positive increase in cash flow. Sounds good? Definitely sounds manageable when we have easy renters and minimal upkeep.

But with those problem-free tenants, we also encounter the opposite extreme. One of the most difficult things to deal with as a landlord is bad tenants. These tenants can range from being vicious criminals, to trashing your property, to not paying rent, or to being sue-happy. However there are some things we can do to protect ourselves as landlords, but still we must proceed with caution.

Resident Screening. To help sift out potentially bad tenants, the first key step is to screen them. Check if they have a criminal history, contact past landlords -- use every resource to make a decision whether to even accept a tenant in the first place.

Detailed Rental Application. Get as much asset information as you can on record and then you’ll have this for collection purposes if necessary.

Strong Lease Agreement. Know the lease and the law. Lease Agreements should be specific to your state. Make sure policies are clear, clarifying how and when rent is to be paid and the penalties for late payments, criminal behavior, and dirty and damaged apartments. Also include some kind of peace and quiet phrase, covering any type of complaint that could be possible from other tenants. Even have signed leases for every adult in the apartment/house, sending separate notices to each of them. This can help you avoid sticky situations in the future where one roommate may not receive a notice or when evicting there’s another tenant living there and you have no signed lease with them.

Divulge Legally-Required Rental Disclosures and Abide with the Eviction Laws. If renters don’t pay, their lawyers will be seeking out any disclosures that weren’t actually ‘disclosed’ to the tenants. Find out what your state requires or you may be out on rent. You can do this by reading your state’s landlord-tenant code directly, hiring a real estate attorney, or using an online landlord form system. Also comply with laws when evicting a tenant. Once again you can hire a real estate attorney or an eviction specialist which can get expensive. Best advice: do your homework first, know the laws as it will save time and money if put in a difficult situation.

Provide a Succinct, Written Notice. This will be an explanation of the expectations of the tenant. For example, they’ll be expected to leave by a certain time if rent isn’t paid or damages aren’t fixed. This will provide documentation in case you need to take the tenant to court for unpaid rent or damages.

Offer a Deal. The aim here is to have the tenant vacate quickly. Avoiding eviction for the tenant can keep their credit untainted and can also save you paying high legal fees which may be higher than the ultimate amount you’ll be able to get from the tenant. Judgments against the renters can be on their credit for years and this information may help motivate them to get out fast, leaving no mess behind.

Treat all Tenants Equally. Never single a tenant out. The Fair Housing Act safeguards the tenants. Even with evictions, you can’t threaten tenants. If they’ve filed a complaint against you, it would be looked upon as retaliatory. And when sending notices, give nonpayment notices to all the renters at the same time.

If you’re a landlord or are seriously considering owning some more property to rent out, take these helpful hints to heart otherwise you may be dealing with a situation similar to landlord Ted Hayes. He rented a home in Peterborough, Ontario to tenant Greg Houle and it cost him $30,000. Greg Houle figured out how to use the legal system for his gain -- delaying the eviction process -- and hopping from one rental unit to another pretty much rent-free (Read the full article here).

This brings home the point -- know the eviction laws and follow the legal process. But of equal importance, find as much information about the tenant as you can before you hand over the keys. Again you can do this fairly cheaply through resident screening. Obviously some things are protected by privacy laws so all the more reason to screen your potential renters and protect yourself by knowing the laws of your state. And all this information must then be balanced out with the need to rent out your houses. Owning property can be a lucrative investment, just know what you’re doing so the final outcome is positive cash-flow rather than a deep money-pit.

Showcasing our Investment Property

noreply@blogger.com (Jaycee Fox) — Wed, 10 Mar 2010 18:51:00 +0000

Purchasing property is generally seen as a good investment. Whether the economy is good or bad, people always rent. The first step is to choose the right property in an ideal location. The second key step, which is often overlooked, is the showcasing of the investment property. The interior can be cold or welcoming and this could then result in more or less value for our rental property. We’ve all heard the tricks of baking bread or cookies when we’re selling our home and even the profession of stagers. Yes, people can be paid to come into our home and transform it when it’s on the market to make it more inviting. So as an owner of an apartment complex or some kind of rental property, we must be our own stagers. Tenants don’t have the right to make major changes so they’ll be aware that if the interior is unpleasant, they’re stuck with it. Success here means making money on our investment property and it starts from the very beginning: Showcasing our investment property correctly. Here are the important factors to remember when showcasing.

Decorating. The two most critical ingredients in decorating are simplicity and knowing your potential tenants. It’s important to keep to neutral colors. These are easy to decorate with as bold colors won’t appeal to all. And who are our potential tenants? Students don’t require luxurious finishes but executives will expect lavish superior finishes.

Maximizing Spaces. Apartments are smaller than homes so we need to learn how to best maximize the spaces to make it appealing. Are there hidden storage spaces that can’t be seen?

The Building. Potential tenants will want information about the building, its amenities and management, so have that information easily available. Is there anything distinctive about the architecture? They will be more confident when making rental decisions if they have this information.

General Information. Make it simple. How many bedrooms and bathrooms? Is there a patio area or a place for tenants to have a small garden? Does the apartment have a garage space or is it street parking? What’s the general location and of course, how much to rent?

Positive Features. Expand on these as much as possible. What’s striking about the location? Close to good schools, dining and shopping? Is the view spectacular?

Once we’ve maximized all our investment property’s best features, decorated accordingly, and provided important information, we must then be vigilant in who we choose as renters. The best case scenario is that we’ve got the ideal location and provided an attractive rental property so we hope to now have many interested renters. And with all that work, we hope we’re done. Resident screening is key here also and shouldn’t be forgotten. We don’t want to spend so much time preparing and then have a tenant who doesn’t pay rent on time and trashes the place. Companies contract with investors to provide this service where they perform background checks on potential residents, including credit checks and criminal background checks. A simple step compared to choosing a location and decorating an apartment complex. Prepare, choose tenants wisely, and then maintain, and we’ll find success in our investing endeavors.

Purchasing an Apartment Complex

noreply@blogger.com (Jaycee Fox) — Thu, 21 Jan 2010 21:58:00 +0000

Purchasing an apartment complex isn't a light decision. It's an investment that can generate thousands of dollars or it can be a black hole, sucking thousands from your pockets.The first step is to do your research. What kind of complex are you looking for? Are you seeking family apartments or units that are studio or 1 bedroom? A fixer-upper will be a lower purchase price but the risk can be greater. So examine what the apartment complex is like now and how you expect it to be after the repairs. You want all the facts and number crunching done before any purchases are made. Here's a to-do list for serious apartment investors.

What is the address? Is the complex in a desirable location -- close to shopping, schools, restaurants, banks, hospitals etc?

Analyze income and expense statements. This will allow you to see how the apartment has done over time. Examine at least 3 years of income statements. How much is rent and what are utility bills and maintenance costs?

How many buildings and how many units are in the complex and what are the floor plans? What year were these buildings/units constructed? Check all apartments if possible to see what condition they are in. Take photos of both the interior and exterior.

Are there vacancies? If a property has over 25% of its units empty, it's a sign it's not doing so well. This can be good or bad for you. Good if you're renovating the whole complex which can then increase the value. Bad if you're keeping it as is where it's clearly a struggle to find tenants. Look at the copies of leases, making sure the information is accurate.

How many acres and parking spaces? No tenant is keen on fighting for a parking spot at their own home. What about public transportation, is it close by?

What about amenities?Is there a pool, hot tub, game room? These can all add value to the facility, as well as maintenance time and money. So weigh the pros and cons.

What is the price per unit? This is done by simply dividing the asking price of the property by the number of units. Then compare this price to neighboring complexes. What are the most competitive nearby complexes? Is there an opportunity to increase the value?

Examine reports and records. What improvements have been done and when? Also look at past engineering reports, environmental reports, appraisals, tax records, and insurance filings.

Is there existing debt on the property? And are there already promised maintenance renovations to do for specific units or buildings?

When this to-do list is completed, a rough estimate can be made of the complex's potential. If you do become a property investor, other decisions then must be made. You must seek out good tenants. After all, you've spent ample time doing the investigating to purchase and now you want to fill the complex with tenants that will pay-up and help maintain the atmosphere you've bought and created. Resident screening is one way to help guarantee a continued wise investment. Upkeep and safety are also crucial in maintaining a desirable complex. Deciding to invest in property is a big decision but one -- if done correctly -- that can provide financial fulfillment.

Apartment Tenants: A Fire Hazard?

noreply@blogger.com (Jaycee Fox) — Sun, 20 Dec 2009 04:38:00 +0000

Fires can be devastating; homes can be gutted, an apartment complex burned to the ground, and lives taken. But most devastating may be that it could have been avoided. Fires can be caused by various means such as extension cords being overloaded and used improperly, exposed or frayed wiring, candles, lighters, dryers, cooking and grease fires, or heaters too close to other objects or in need of a clean. In many of these situations, prevention is simple by merely unplugging unused or unmonitored electrical equipment.

But apartment managers and rental property owners beware. A new type of fire is on the rise: Meth fires. Meth fires are not an uncommon event anymore and nor are they just for the rural area. Next time when watching the news, take note of where these meth labs are set up. These meth cooks seek out rental properties in suburbia land. It offers them the safe image they're seeking. Take the case that occurred in Cullman, Alabama just last month. This meth lab caused a fire in city apartments. Mark Meherg and Joshua McAlpine were arrested for unlawfully manufacturing a controlled substance. So how was this discovered? It was a scenario where smoke was seeping from the apartment window and a potent chemical smell was in the air. Officers checked it out and sure enough evidence showed they'd been making methamphetamines. This is a Class A felony which can result in life in prison (Read the full story here).

If we were renting to such tenants, it's an environmental catastrophe lurking around the corner. These are people that aren't trained chemists, but yet this concoction of corrosive chemicals is more hazardous than any legal chemical plant. The gases created are flammable and are usually not sealed off therefore a mere pilot light on a heater could put the whole property in flames. And after the fire, who knows the long term effects to the property such as residual chemical contamination, and even neighborhood quality of life. Rental property owners end up paying for this. Why? This meth activity attracts other criminal activity, affecting property values. This then can affect whether good tenants desire to rent where such a history has occurred. Eviction periods and the lack of good renters then directly affect the pockets of the property owners.

As property owners, we need to use all the tools available to know who we're renting to. The most obvious tool -- at least initially -- is to perform a resident screening. This can provide us with crucial information. After the resident screening and our good renters are settled, we must still observe with our eyes wide open. Look for potential indicators of meth use such as falling behind in rental and utility payments, or keeping a filthy house. Other signs may be a change in car traffic (ie. expensive vehicles out of place or cars stopping for short periods of time), or disheveled visitors, visitors bringing in tools to trade for drugs, and children or pets showing signs of neglect.
So if worse case scenario, we do have tenants that are high risk and even a fire hazard to our property, what fire safety precautions must we take?

Every apartment needs to have a smoke detector.

Every apartment should have a carbon monoxide detector.

Learn how to use the fire alarm system and recognize the alarms as well as knowing where each alarm is located.

As property owners we need not be pessimistic, but meth fires are something that didn't exist in the past and now we must be aware of this new risk when seeking out good tenants.

Property Investing with Wisdom

noreply@blogger.com (Jaycee Fox) — Thu, 12 Nov 2009 19:56:00 +0000

With the downturn in the economy, property prices are still relatively low and interest rates are down. If we're investors, this would seem like the perfect time to invest in properties, but it's not as simple as purchasing a property and then allowing the rental checks to flow in. Perhaps to some, but as a mere income generator we're not paying much attention to the actual property so how long can this kind of small business truly thrive? There are key choices to make in the process. One of the first questions to ask ourselves is whether we'd look after the property ourselves or hire a property manager. What are the pros and cons of this choice?

Much of this decision depends on our time constraints and financial resources. Do we have the time to screen our potential renters, seek out those overdue rents and then maintain the property? No problem we may think. True if we have good renters, but wait for those bad tenants . . . then the difficulties may arise. If we're serious, we need to do our homework. It may be in our best interest to hire a property manager -- we'd want to take into account their commission rate -- or decide if we really have the time to oversee our properties. We can expect the positive -- all great tenants -- but we must also prepare for the worst. It's only then that we have a chance of running this small business successfully. What kind of information should we be aware of?

At a minimum, perform a resident screening on our potential tenants.

Understand the law and how to enforce lease agreements. For example there are ways to quicken evictions with our nuisance renters especially if we're dealing with gangs and drugs. Working with the police could enable us to legally get them out.

Are we a handyman? Do we know how to repair things on our property?

Are there safety hazards on our property that we need to remedy?

Know the neighbors. Let's be courteous towards them and do all that we can to seek out good tenants. We do have a responsibility to the neighborhood and our community.

Let's not be a lenient investor. We should either make ourselves the proactive property manager or hire one to preserve our investment.

The Smoke Screen

noreply@blogger.com (Jaycee Fox) — Tue, 27 Oct 2009 15:31:00 +0000

When I was a kid, smoking was for the supposed cool older teenagers and some select adults. I remember sitting in the back seat of my friend's car enveloped in a shroud of smoke exhaled by her mother. Her mother had pretty painted nails and a long, delicate cigarette held between her fingers, but I had a headache and my eyes hurt. It didn't seem so cool after all and then there were the commercials with the catchy jingles --smoking makes your teeth yellow, smoking makes your breath smellow, I'd bellow that song to my neighbor's girlfriend when I'd jump out from behind a bush, catching her lighting up and wishing to educate her. Nowadays we're a little smarter and more aware of the health risks. By law, smoking is limited in many social gathering places such as bars and restaurants. Part of the solution is to have certain designated smoking areas, but in many places there is a smoke-free policy. No longer can you light-up in airplanes -- nowhere -- not even in the bathroom. With this, it may be due time to have residences that are smoke-free. Perhaps as part of our resident screening process, we may want to screen out are smoking renters.

So this may seem harsh, but it depends on whether you're a smoker or not. It's harsh to breathe in that second-hand smoke also. It's up to the landlords whether they require all or part of the building to be smoke-free. But really, as a landlord, would it really help us if we prohibited smoking? Or would we scare away potential renters and therefore lose money? Let's look at the benefits of a smoke-free environment.

Less complaints from non-smokers.
Insurance premiums will be less in a smoke-free building because the risk of a fire will be less.
Smoke stains from nicotine are dirty and difficult to remove and in order to have a gleaming rental for a new renter -- increasing the potential of renting -- more cleaning is required and therefore more costly.
And the most important issue for everyone . . .
The health issue -- second-hand smoke. Most people will not rent anything if it compromises their health or the health of their family.

What exactly is second-hand smoke? Second-hand smoke is a combination of smoke exhaled by the smoker and also the smoke coming right from the burning tobacco. And what are the risks?

The immediate risk is irritation. Second-hand smoke can cause a sore throat, nausea, dizziness, headache, cough and eye irritation.
Long-term -- lung cancer in non-smokers is believed to be mostly due to exposure to second-hand smoke.
Second-hand smoke contains a number of harmful chemicals, including carcinogens, but also chemicals that can block and harden arteries which in turn can cause hypertension and eventual heart attacks.
Asthma and smoking don't mix, either by exacerbating the asthma or inducing it.

The question is answered by the Fair Housing Act and the accumulated case law that has been developed since its enactment. What is the conclusion? The conclusion is that residents who suffer from Multiple Chemical Sensitivity (MCS) or Environment Illness (EI) could be considered as "disabled" under Fair Housing. As such landlords not only have permission to control smoking on their properties but may have a duty to do so. There is also the concept of "nuisance clause" and smokers second-hand smoke that "unreasonably interferes" with the quiet enjoyment while on or in the premises.

Perhaps we're at a point where we do want a smoke-free residence but aren't quite sure how to go about it. If we're starting out, no problem, just don't rent to smokers by including a no smoking addendum in the lease. If you already have tenants, let them know that you'll eventually be a smoke-free building, giving them time to either move or abide. It may not be enforceable with existing arrangements, but you could at least prohibit smoking in particular areas.

So with a new push towards living a healthier lifestyle, property owners may want to listen. We should always screen our renters for the obvious -- criminal activity, unpaid bills -- but maybe it's time we raise the bar even higher, attracting renters that encourage good health.

Cold Eviction Laws?

noreply@blogger.com (Jaycee Fox) — Fri, 11 Sep 2009 15:36:00 +0000

What do you do if you have bad tenants, they only pay rent when it's convenient, and your good tenants want them out? Simple you say, evict them. Not so easy in Cook County, Illinois. Why? There's a court order that doesn't allow evicting tenants when the temperature is below 15 degrees, it's extremely snowy, or it's holiday time. That's compassion, we say, there's nothing wrong with that. But what if some tenants do have the money but they know they can get away with it when Jack Frost is in town. Who then pays? It's the property owners.

Harold Slinkman, with sons Mike and Mark, own about 50 apartment buildings in the southern suburbs of Cook County. Mike Slinkman isn't pleased with Cook County Sheriff Tom Dart's acts of compassion in refusing to implement court-ordered eviction notices on tenants. Dart denies this, claiming that he only won't enforce it on those people who are stuck in a home foreclosure. However Mike Slinkman claims that it's the 10% who are working the system and who stop paying rent for the cold months of November through February -- these are the tenants causing him grief and that he can't get rid of. Slinkman believes in compassion but also justice. He volunteers in a homeless shelter, he's helped people who have been down and out, but it's the dishonest ones that may cost him his family business.

So is Sheriff Tom Dart being compassionate? His actions and responses don't add up. The original Cook County Circuit Court order had absolutely nothing to do with home foreclosures or the economic difficulties we all now face -- rather it had everything to do with the outside temperature and not endangering people by putting them out on the street. And not only that, but Dart was never consistent, putting people out one day and not the next. It's not a happy story when a property owner has to depend his livelihood on the whims of a Sheriff (Read all the details here).

As property owners, it's essential that we do all that we can to find honest tenants. We then wouldn't need to rely on laws to protect us -- which obviously sometimes don't -- but then again we don't live in Disneyland and we don't all have crystal balls. We can use all tools available such as resident screening on potential renters and clear and concise contracts. After that, it's the whim of the Sheriff . . . or not.

Curb Appeal and Renting

noreply@blogger.com (Jaycee Fox) — Mon, 31 Aug 2009 20:36:00 +0000

When we're apartment owners and we're looking for good tenants, there are a number of things to take into consideration. We perform the resident screening, ensuring we're not renting out to criminals or deviants or people who have no way to pay their rent. However before we even get to that point and decide whether to rent to prospective tenants, we have to attract tenants. The nicer the curb appeal of our complex, the more likely we'll have renters knocking at our doors and then we won't be so desperate to accept anyone who approaches.
Here are some tips to increase curb appeal:

Clean the exterior. Pressure washers are miracle workers, cleaning filthy exterior finishes due to dust, wind, rain or snow. These can be rented, but may be a good investment if it's something needed to be done often.
Is your complex an eye-catching color package? Do the bricks compliment the color of the window trims or doors?
Trim shrubs and bushes. If the outside is clean and pristine, it hopefully reflects a similar interior. Do these bushes block natural light from entering windows?
Widen your walkways so more than one can walk side-by-side.
Make your complex unique with pretty seasonal flowers, attractive paving stones, hidden benches -- anything that welcomes potential tenants and makes them feel at home.

Remember, potential renters can lack imagination. If the outside needs some work, they'll assume the inside does also. Even if you're in the middle of renovating, it can sometimes be difficult for others to picture the final result. And if they do show interest, chances are it'll be "let me know when it's complete." So don't be hasty, do your advertising WHEN you're ready for residents and they'll be ready to sign. This way, we'll get the pick of the tenants and we won't have to be desperate when our resident screening process gives undesired results.

A good example of what not to have was found in two three-story apartment buildings in Oakland, California. This rundown complex had no power, no running water and was infested with rats. Apparently the owner had passed away and the widow couldn't stay on top of the maintenance or the payments. The Oakland fire officials condemned the buildings and the nearly 200 tenants were required to leave and go to the emergency shelter. (Read the full story here).

Renters from Hell . . . or Not?

noreply@blogger.com (Jaycee Fox) — Mon, 17 Aug 2009 22:16:00 +0000

On August 16th, two apartment complexes in Waco, Texas filed lawsuits against a number of former renters being accused of property damage, resulting in hundreds and even thousands of dollars. These apartments are located in upscale areas and the tenants are professionals who would be considered the cream of the crop when considering their finances. The claims are apparently legitimate, however a few seem unjustified. One couple in question was Baylor University associate professor Sung Joon Jang and his wife. And the allegation? Damage to carpet and countertops. They've since prevailed at trial, claiming the apartment was actually in better condition when they left. The prior tenant to the Jangs testified that she and her family caused or inherited these damages. The jury has now ordered the complex to fork up almost $12,000 to repay the Jangs for all their legal fees. Another couple who are currently fighting a property damage allegation -- specifically carpet -- is Mike and Karen Singleton. They said it was a direct result of the toilet hose disconnecting while they were at work. The case is still pending. To view the full story, read it here: Waco Apartment Complexes Taking Many Former Tenants to Court Over Damages

So yes, it's important to protect yourself and your apartment complex but make sure you're going after the right tenants or it could end up costing you even more and the lawyers will be the ones filling their pockets.

When an apartment is really damaged maliciously or through negligence, the landlord faces a number of potential financial problems; repair work, loss of rental income, tenants vacating without paying rent. Or if the residents do stay and don't pay, it can be time-consuming to get them out. Recently I read a post of a landlord who rented to a young couple with a toddler. The background and credit checks went well and they happily moved in. The first month, they paid no problem. The second month, they were a couple of hundred dollars short but promised to pay soon. Long story short -- and you can read the post yourself at Be careful who you rent to -- when they finally vacated a short time later, there were doors destroyed, a microwave oven stolen and dirty diapers all over the floor. And of course no forwarding address or phone number was left behind.

It's crucial that we be as thorough as we can when screening residents and checking references. Obviously for this landlord, even with the background check, it was ineffective. A previous landlord may help decide for you. But check property ownership and make sure prior landlords aren't friends merely playing the part. And if you do decide to rent, get the oral agreement in writing. Write out a lease, be as specific as you must be. Think about when you rent a car, they check for dings before you rent. Do the same with tenants -- write any prior damage -- respect for respect. You'll then both know if damage was incurred. Most importantly, even if you're a veteran landlord, keep up with the changes in the law so that you can protect yourself as best as you can. You want to trust others, but protect yourself first, knowing who's done the damage. Need more convincing? Check out these youtube and metacafe videos. I think it'll do the trick.

Renters from hell

Tenants from Hell

Seek for the Good Renters

noreply@blogger.com (Jaycee Fox) — Tue, 04 Aug 2009 17:33:00 +0000

When the economy was doing well, property owners routinely performed financial background checks as a way of screening their potential tenants. With the downturn, things have changed. There are a number of families who have had their mortgage holder foreclose on their homes or who have even placed a block on their credit file because of increased identity theft. So what does this mean to the property manager? Many times it can result in a loss of good renters their credit profiles may dip below established minimums. And the ultimate loss? Good renters are what make a property investment worth its time and money. So perhaps in this day and age, we must redefine what a good renter is.

In this economy and in today's world, it's generally not the norm to work the same job from the time you leave school to the time you retire, which in a financial background check equates to short-term employment history with various companies. Gone are the days of father coming home at 5 sharp and mother with a steaming meatloaf and mashed potatoes on the table. In many homes, two parents work and a call to Pizza Hut is our version of a home meal. With that, it's imperative to acknowledge that a steady income in this unstable economy is different to our parents' generation. A trustworthy income rather may be a tenant with a speckled career history. Therefore, don't make all decisions because of a result of a credit report. Weigh all the screening criteria.

So as a landlord, who is our golden renter? Picture a successful business person, drives a snappy sports car, perfect teeth, hair and clothes, and always has their rent on time. BUT, they hound you day and night. They have no concept that you actually have a life. Their manners stink and their parties are a nuisance to the other tenants. They are a continual source of stress. Or imagine a lovely couple -- the sweetest couple -- but they have no jobs or motivation. They make you chocolate chip cookies the first of every month and apologize profusely about no money -- but they will pay of course. And sometimes they do, but it's never a sure thing when that will be. The important message? There are two vital components to seeking out good renters: a steady income -- albeit dappled -- and courteous tenants.

As property owners, it's really our responsibility to find these quality renters. And with quality renters, we'll have successful relationships with our tenants.

Read a renter's recent horror story. This renter had plenty of money -- a steady source of income -- but along with that, a steady source of black sludge and fake tanner. This story involves America's Next Top Model, CariDee English. When you skim through this article, it's a gentle reminder that seeking the good tenants involves more than mere money. Read the full story here: Craigslist life lessons. Don't rent your apartment out to former reality show contestants.

A Property Manager's Safety Guide

noreply@blogger.com (Jaycee Fox) — Sun, 14 Jun 2009 15:36:00 +0000

A hot topic right now is the story of Amanda Knox -- the 21 year old Seattle native who went to Italy to study abroad for a year. The twist is that she's been sitting in an Italian courtroom for the past five months, accused of slaying her British roommate, Meredith Kercher, in November 2007 in Perugia. Read the full story here: Amanda Knox Has "Nothing to Hide"

This kind of story brings up a lot of emotion and one hopes the truth will come out and justice will be served. Whatever the truth may be, it causes some to question the quarters these girls were residing in. Were these residents' screened? How safe were they really? What if it was a visitor who committed this horrendous crime or a lurking stranger around their residence? If you have a loved one living away from you whether in a foreign country or in an apartment down the street, resident safety should be a priority.

And if you are a property manager, potential renters want to know that you're serious about protecting them. For me, when something is written down and handed to me -- facts about what is being done concretely -- that goes a long way. So property managers, give your staff and residents a guide to your safety plan. Here are some quick tips for such a guide:

1. Awareness

Have residents meet their neighbors. So what can you do as property managers? Promote community events so neighbors are aware of one another -- build relationships -- and hopefully look out for each other.
Set up a community website. This would enable current community events to have a venue to be listed and could also double as a community watch program.
Staff and residents should keep a close watch for strange activities and even suspicious people, packages and cars.

2. Duties of the Investor/Property Manager and Staff

Have a resident screening policy in place. If not, these tenants may pose a high risk to your property investment. This same policy should adhere when authorized tenants bring in roommates. Policies need to be clear and upfront when new people are added to an apartment etc. such as additional charges and the same screening process.
Keep good communication with your tenant.
Staff should have an ID card on constant display.
Ban door-to-door solicitors.
Install alarm systems.
Good lighting, angled mirrors, and clear views are a necessity. Parking areas, hallways, stairways, laundry rooms, entrances and any other common areas should be well-lit. Be vigilant when light bulbs burn out to replace immediately. Trim shrubs and trees to maintain clear views.
Locks and peepholes should be updated. Never keep old locks when new residents move in and install deadbolts and peepholes. Sliding glass doors and windows also need locks including dowels to prevent from opening from the outside. Even place crime prevention stickers on doors and windows as an extra safety measure.
If illegal activities are being conducted by tenants, report it immediately otherwise you may be liable and also the quicker it's reported, the sooner it can return to a safe residence, attracting good quality tenants. If not reported, it can also affect the value of your property.
Have a noise code of honor in place. If noise violations occur -- such as loud music too late, barking dogs all hours of the night -- have penalties and warnings as part of the contract. Bad sentiments will run through the community which is not what you want if trying to protect your investment.

3. Expectations of its Residents

Don't put spare keys in obvious places, such as under the doormat or in the mailbox.
Don't put your full name on your mailbox and even in directories.
When on vacation, use timers on lights and televisions to maintain the appearance that someone is currently at home.
If you're aware of any illegal activities of other tenants, report it immediately. This will maintain a safe living environment.

These tips will not only allow the manager to feel he's done all in his power to protect his residents but it's also a demonstration that this apartment/condo does indeed take the safety of its potential renters seriously.

Resident Screening: A Saving Time & Money Tool

noreply@blogger.com (Jaycee Fox) — Thu, 28 May 2009 16:02:00 +0000

A disgruntled tenant can cost a landlord a big chunk of change. This can be the case in both the private and public sector, and if we're talking public housing -- it could cost the taxpayer too. Take an example from Australia where some public housing residents have cost the Victorian taxpayers millions of dollars in repairs because they've decided to trash their homes. For example, a 39-year-old single mother left piles of garbage to clean up, racking the taxpayer's bill up to $20,908. Or take the case of a single 60-year-old woman; her cost -- $20,641 in damages. Whether we're involved with private rentals or public housing, it's crucial that some kind of resident screening comes into play or we could be knee-deep in our tenants' trash; trash that we end up cleaning up while throwing away money. Let's go over resident screening criteria that will protect us in the long run. These will be business rules -- a good policy -- that we must stick with, no emotion necessary. No emotion? Maybe that sounds harsh, but rules are necessary and a seemingly nice person on the outset may have a criminal record the length of your arm lurking in the under layers of a three piece suit and magnetic smile.

Interview. Discuss where they currently live, have lived and also have them fill out a tenant application form where they'd fill in these details. During this time, you'd inform the potential tenants that you'd be conducting a background and credit check. You can perform these steps or have an intermediary company perform a resident screening. Have a written document with both the signatures of the tenant and landlord, agreeing on the specific points to be checked. The applicant does have the right to privacy so your business plan may be to deny any applicants who aren't willing to have a background check performed.
ID. Get at least two valid IDs. This way you can have confidence that this person is really who they say they are.
Good Credit. To define good credit, you must also define bad credit. Do your potential tenants have timely payments for their credit cards or other debts? What is there credit score? Compare it to the average FICO score in your area, giving you a guideline. How many late payments are acceptable before it's an irresponsible red flag? No one wants a tenant who can't pay their bills or loans. This is the kind of information you'll want to gather and have certain rules already decided upon.
Prior Evictions. Make a decision from the get-go if you'll accept those people who've already been evicted. Maybe once you don't worry, but two prior evictions is a deal breaker. Get references from prior landlords because if there was a specific problem, chances are you'll see it again.
No History. So we don't want a criminal history, but what about no credit history? What age is reasonable to not have a credit history? What about new alien residents or those with no social security number? Maybe a guarantor or sponsor would be the solution, and if so, should they reside in the same state? These are all decisions we must make before we even start renting out.
Income. Call the potential resident's employer and also get copies of recent pay stubs. Get a confirmation of his present employment, giving you knowledge if he's capable of paying rent. Find out all sources of income, whether through employment, trust funds etc.
Bankruptcies. Is this a deal breaker? Or what if it occurred years ago? If a tenant does file bankruptcy during his tenancy with you, he/she could be staying at your property without paying the bill.
Background Check of Cases Filed Against Applicant. Are there any complaints against this applicant? Is there a history of violence or serious violations? You want your other tenants to be safe also.

These steps are vital in protecting you, your other tenants and your pocket book. You can spend the time doing the needed research or you can have an intermediate company who specializes in this type of resident screening do the checking. Both ways pay off in the end. The choice is yours, but make sure you do make that choice and not leave it up to fate. Otherwise your tenant with the smooth chatter and polished shoes could be leaving you and his trash behind.

Selecting a Tenant or Resident Background Screening Service Provider

noreply@blogger.com (MGM) — Tue, 07 Apr 2009 22:09:00 +0000

There are many things that a community manager or leasing manager needs to bear in mind when filling a vacancy. There is no shortage of service providers out there that are willing to service the background screening needs. With so many providers to choose from, how does one make a selection among the providers that provides the most value?

Understanding something of the nature of the background screening marketplace is very helpful. In the past decade, the market has seen relatively low barriers to entry. The credit report data is concentrated in the hands of only three National Credit Reporting Agencies (NCRA's), namely Experian, Equifax and TransUnion. Each of the NCRA's has a reseller policy to permit service providers to resell the credit reports to the end users of the data. Criminal background data providers have a similar business model to the NCRA's where the majority of the data is not sold directly but instead, as in the case of credit reports, through resellers.

The availability of credit report data and criminal history data to new entrants to the background screening market has had the effect of significantly reducing the barriers to entry. Consequently, there are numerous background screening providers each vying for your business.

The Under-capitalized Start-up Provider
Many of the new entrants are small under-capitalized ventures. Under-capitalized start-ups have a significant challenge in that they must be profitable almost immediately. These ventures often have just enough funds to buy web hosting services, secure a reseller agreement, and have a very modest advertising budget. They typically specialize in either the credit report data or in the criminal history data.

Why do they specialize in only one when the market prefers a provider that offers both? Simply because they don't have sufficient capital (financial, IT resources, etc.) to attempt both at the same time. They often choose one path (credit) or the other (criminal) and hope to build up sufficient customer base to be able to add the other as business grows (if it grows). Some of the new entrants have been just sufficiently successful to be able secure a reseller agreement with both types of data services.

These new entrants typically provide only the most basic of services and compete almost exclusively on the basis of price. They are keenly aware of their own cost structure and what they need to bring in the door to remain in business. They see that the marketplace is full with other similar new entrants and attempt to undercut the competitors prices in order to expand their client base at the expense of their similarly situated competitors.

Their client base is generally much like themselves. The customer to whom these start-ups appeal most is often other small businesses (a home-owner with one or more rental properties). The home-owner who has a day job and has a rental property on the side is very focused on costs and may not always perceive the benefits offered by the other larger and mature service providers.

The Mature Background Screening Service Provider
The mature provider has long ago executed reseller agreements with credit and criminal data providers. While these two components form the core of any background screening service offering, the secure and stable providers do a better job of understanding not only the needs of the small business operation, but also of the middle market and the national operations.

The long term provider's service offering goes well beyond a simple regurgitation of the credit report data and the criminal history data they resell. There is typically some analysis of the credit report (FICO score, bankruptcies, late payments, partial payments, discharges, other derogatories) as well as some analysis of the criminal history (automatic filtering of false positives, address and SSN matching, photographs of most-wanted, sex offenders, and terrorists).

There is generally something that combines the findings of the credit report and the criminal history to form the basis of a recommendation (accept, deny, accept with provisions). There are additional services that also are components of the service offering (automatic address histories, SSN validation and SSN death master file checks, record of previous evictions or other derogatories from previous communities).

The mature provider, while remaining cost competitive, does not compete primarily on the basis of price but rather on the basis of features. The breadth and depth of the service offering are at least as important as the cost. Integration of the screening function within the communities' property management system is also imporrtant. Apartment communities spend substantial sums of money creating a great living environment (in-apartment laundry facilities, weight rooms, swimming pools, clean and up-to-date grounds, on-site/on-call maintenance, and a host of other ammenities). These communities also have substantial advertising budgets and are frequently upgrading (as opposed to simply maintaining) the communities features. For these communities, after having invested in their communities as they have, filling vacancies with resident who would detract and diminish from the enjoyment experienced by the existing residents is not an option. Screening, validating, and rigorously vetting applicants is standard practice for these mid and upper level communities.

When evaluating background service providers for your company or community, look closely, examine carefully, probe for hidden dangers, and watch your step. Be wary of the SomeGuyAndaWebServer.com providers that have crept into the market. Knowing that they are out there and for what and where to look in order to avoid them can make the difference

Charging Applicants a Fee for Background Screening

noreply@blogger.com (MGM) — Mon, 09 Mar 2009 23:20:00 +0000

Some years ago, when background screening was not yet mainstream; many apartment community managers and leasing agents clearly understood the incremental cost of running a background check but did not always understand as clearly the benefit derived. These days, background screening has not only become commonplace but is now an industry best practice.

The debate over whether or not to perform background screens on applicants has been settled. The question of who pays for the screen and what are the circumstances still has many different answers:

Applicant pays cost of screen - this is the preferred and most egalitarian method where each applicant bears the direct cost of their own (and no other) background screening. There are a few variations on this theme where the costs can be subsidized by the community or the community might choose to add a modest mark-up (no gouging please) to the direct cost.

Successful applicant pays cost of screen - this is not preferred. Local governments (state/county/city) can sometimes intervene and impose restraints on charging fees to applicants for background screens. When this happens, communities typically shift the cost of the background screens into a "move-in" fee which is non-refundable. All this really means is if it takes an average of 5 applicants to fill a vacancy, the successful or winning applicant will bear the burden of the 4 applicants that were not successful.

All successful applicants pay cost of screen - this is also not preferred. In this scenario, rents are increased for all residents to offset the background screening costs. Residents, depending on their duration can end up paying for hundreds of background screens.

There have been mulitple reports of "bad actors" looking for an apartment. They will "work" the area making upwards of 10 applications per day in search of a community with lax process/discipline. Communities with weak process or discipline have gotten burned by the bad actors that have cost them significant hard costs to repair/collect and are similarly expensive in the soft costs of time and aggravation to get them out.

Screen every applicant; every time. Police see the direct impact neighborhoods and communities suffer when communities and landlords are don't follow through. Police encourage decision makers to deny applications of active criminals, those with a history of drug abuse or violent crime. Leasing to individuals who lack the means to meet their own needs is likewise unwise.

NAA Green Conference & Expo

noreply@blogger.com (MGM) — Tue, 24 Feb 2009 19:52:00 +0000

It's held in Phoenix, AZ (April 28-29) at the Phoenix Convention Center in downtown. A principal speaker is James Brew, Principal Architect of the Rocky Mountain Institute's Built Environment Team. He'll be speaking on the subject of sustainable design.

Going green is increasingly important these days with many prospective tenants committed to occupying only green communities.

Come learn how to save some green while going green at the Green Conference & Expo in Phoenix.

Rents on Luxury Homes Reducing

noreply@blogger.com (MGM) — Fri, 13 Feb 2009 15:34:00 +0000

With the purchase market for homes is all but locked up due to credit having dried up, the rental market has also suffered. In particular the luxury homes have since significant price reductions in the monthly rent in order to keep them occupied.

In a recent Wall Street Journal article, the difficult times for the owners of luxury homes for rent is illustrated. Rents have been reduce as much as 25% or more as housing values fall and buyers of the homes are forced to sit on the sidelines. Listings of the luxury homes are also up as many of them are available. Real estate agent Lawrence Story of New Canaan, Connecticut reports that the number of listings in his area for homes for rent in the $9,000-$20,000 per month range have doubled from last year.

Although we are now just beginning to see some loosening in the credit market, it will be quite some time before the purchase and rental markets return to anything that resembles normal conditions.

Q1 2009: Less Pessimism in the Apartment Market

noreply@blogger.com (MGM) — Tue, 20 Jan 2009 01:28:00 +0000

The National Multi-Housing Council has published the latest installment of its quarterly Survey of Apartment Market Conditions. The results for the current quarter, while not exactly oozing with optimism, is nevertheless less pessimistic than the previous quarter.

The market outlook calls for continued slack (moving down the index from 24 to 11 with a value of 50 being neutral). However, there are some signs that are less negative. They are the Sales Volume, Equity Financing, and Debt Financing which all three posted improvements compared to the previous quarter.

Source: National Multi-Housing Council

NMHC Annual Meeting Next Month

noreply@blogger.com (MGM) — Wed, 31 Dec 2008 19:46:00 +0000

The National Multi-Housing Council (NMHC) will be hosting its annual meeting (open to members only) January 21-23, 2009 at LaQuinta Resort & Club in Palm Springs, CA. This annual meeting is the largest gathering of NMHC members.

This 3-day event will cover a number of topics and include interesting speakers.
- Day 1: Strategies Conference and committee meetings
- Day 2: Finance focus (T. Boone Pickens speaks)
- Day 3: Govenmental focus (Al Gore speaks)

The full agenda is available online. The annual meeting is always a big event and is a great opportunity to exchange ideas with industry leaders.

Las Vegas Police Suggesting Resident Screening

noreply@blogger.com (J. Crismon) — Tue, 23 Dec 2008 19:51:00 +0000

It's good to see that the police are concerned with the quality of neighborhoods these days. In the Las Vegas Metro area, the police are urging first-time landlords to start screening prospective residents. They have even offered a few classes for new landlords. This comes to light after an official experienced a bad neighbor for himself. A neighbor had moved in and prostitution and drug trafficking ensued shortly thereafter. The SWAT team finally raided the bad neighbor's home and removed him from his property. Read more here.

It's easily understood with the shape of the economy the way it is, that the prospect of renting houses or apartments is good news for someone with an empty property. But remember your due diligence. Screening prospective tenants is a good policy that every landlord should observe, whether that be through traditional screening companies or personal investigation. Too bad not everyone understands how to go about screening tenants. But the bottom line is, if you want to keep your property and neighborhood a respectable and safe place, you have to screen out the undesirables.

Performing a background criminal and credit check is simple using Merchants' Resident Screening. The software allows you to enter a prospective tenant's name, social security number and address information and find out quickly if they have any prior criminal activity, evictions, or even late payments.

Merchants' Resident Insight software takes it a step further, allowing you to enter some criteria guidelines. If a match to any of your criteria is found, the software will make automatic recommendations as to whether to approve or deny, based on your instructions. Landlords can even report bad behavior on a tenant instantly, sending up flags for the next prospective landlord.

As the article above mentioned, be sure you know who you are renting to. Don't take a chance. This is your property and you're in charge. Be a responsible landlord.

Student Housing Conference 2009

noreply@blogger.com (MGM) — Thu, 11 Dec 2008 23:23:00 +0000

This NAA conference will be held in Las Vegas (Venetian Palazzo Hotel Resort) February 2-4, 2009. It is an inaugural conference so there is expected to be plenty that is new and specifically tailored to suit the needs of those in this market segment (one of the industry's fastest growing market segments).

Details can be found on the NAA website. Neil Howe will be the keynote speaker.

It's About Prevention, Not Just Avoiding Liability

noreply@blogger.com (MGM) — Wed, 26 Nov 2008 16:19:00 +0000

Nearly all property managers know that they should pre-screen their prospective tenants and prospective employees. A majority actually do pre-screen, however, too often the pre-screening is not sufficiently rigorous to turn up problems.

Distinguishing Characteristics
Merchants offers background screening for both prospective residents and prospective employees. As a long time member of this industry (we are a founding member of the National Association of Professional Background Screeners NAPBS), we are aware that there are many companies in the industry. There is also a fairly high degree of variability in the depth and quality of screening amongst the companies offering services.

At Merchants, we seek to establish ourselves as the industry leader in two main categories (depth and rigor of our searches, and quality in customer service). As a founding member of the NAPBS, we helped craft the principles encompassed by the NAPBS Code of Conduct. We enthusiastically support all six principles, but place additional emphasis on principle number four which reads "Be competent in discharging professional responsibilities".

To support the assertion that background screening is better at Merchants, let us offer a few reasons why that is so:

All of our search professionals are also Licensed Private Investigators
All of our search professionals are trained and certified in both the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transactions Act (FACTA)
We conduct periodic quality surveys with our customers relating to the quality of customer service, timeliness and accuracy of billing, etc.
Our instant searches complete within seconds
95% of our in-courthouse searches complete within 72 hours

A Real World Example (how not to conduct a background screen)

In August 1993, Mr. Kevin Linker was a tenant at the Royal Firs Apartments (24028 110th Pl SE, Kent, WA 98030). While a tenant, Mr. Linker applied to perform some painting and light maintenance at the complex. The property owners instructed Mr. Linker to complete an application for employment which included a section relating to criminal history. Mr. Linker left this section blank. The property owners, before hiring, engaged a company to perform a credit check on Mr. Linker. The credit check report included a section for public records. The owners assumed (incorrectly) that if Mr. Linker had a criminal past, it would be shown in this section.

No information was reported on the public records section of the credit check, despite a 1986 conviction in California for lewd and lascivious acts with children. Mr. Linker was then hired. Mr. Linker's second story apartment overlooked a playground area which was frequented by the 5-yr old daughter of a resident on the ground floor of the community. The 5-yr old had a female cousin (also 5 years old) who frequently came to visit.

One day the mother discovered that her daughter and niece had been "playing house" in Mr. Linker's apartment. Upon further questioning by their respective mothers, the girls revealed that they had each been sexually molested by Mr. Linker.

In 1994, Mr. Linker plead guilty to three counts of child molestation (first degree). The property owners were also engaged as defendants in a civil lawsuit alleging negligence in hiring Mr. Linker. The civil suit endured for some time until the owners made motion for summary judgement to dismiss the owners. The trial court (King County Superior Court) judge granted the motion, but the girls (in April 2007 when they filed, had become adults) appealed the decision. Two days ago (Monday) the Washington State Court of Appeals (Division I) affirmed the decision of the trial court and left standing the trial court's ruling.

The victims may yet appeal the decision to the Washington State Supreme Court, but even if they don't this can't be considered anything other than a disaster and a nightmare for all parties.

It Didn't Have to Be

Think for a minute about the thousands of hours, thousands of dollars, worry about the effects on the business and other residents which the property owners must have experienced. This to say nothing of the untold anguish, rage, and shame the victims must have experienced. Even Mr. Linker is vastly worse off (I understand that fellow inmates are not kind to child molesters). It is simply a lose-lose-lose situation. No one wins regardless of the outcome of any further appeal.

The worst part of it all is that it did not have to be. Had the property owners rigorously screened Mr. Linker when he first applied to reside in the community, it might have been avoided. There was a second missed opportunity when he applied for employment with the community. There are many companies that offer cheap background searches.

Focus on the Value, Not Just the Cost

Value is the difference between the benefits and the costs (Value = Benefits - Costs). So when you need to perform background screen (remember screen every prospective resident every time, and screen every prospective employee every time) don't forget to take a good hard look at your screening company and be sure that you are both getting all that you need and also getting all that you pay for.

Remember, it's about prevention, not just avoiding liability.

Source: http://www.courts.wa.gov/opinions/index.cfm?fa=opinions.showOpinion&filename=612972MAJ

Evictions Resume in Cook County Illinois

noreply@blogger.com (MGM) — Thu, 13 Nov 2008 21:41:00 +0000

The housing sector remains very slack while much of the rest of the economy seems determined to join it. The difficulties in the housing sector affect not only the typical owner-occupied single family home but many homes that have been leased.

Many tenants in single-family homes are discovering that (through no fault of their own) that will be evicted from the place they have come to call home.

Many owners of single-family homes in the rental market are finding it increasingly difficutlt to keep up with the mortgage. The consequence has been and remains repossession. The problem is that the residents (many who pay rent in full and on time) will have to find another place.

Repossessions in Cook County were 18,916. If the current rate of repossessions holds, the number will exceed 43,000 for 2008.

Things got so bad that the County Sheriff (Thomas J. Dart) had to briefly suspend repossession/evictions while his office and a local chancery court worked out a deal to make sure the residents were receiving proper notice (120 day advance notice requirement) before evicting for repossession.

With the deal worked out, the Sheriff has once agained resumed the task of enforcing the court ordered evictions.

Still, there remains the hope that the end of the elections cycle, the earlier economic stimulus package, and now recently, the multi-billion dollar bailout of institutions too numerous to mention, things may yet recover. Just don't hold your breath.

Source

Experian to Host Complimentary Webinar

noreply@blogger.com (M. Kaniewski) — Thu, 23 Oct 2008 20:42:00 +0000

Experian will be hosting a complimentary webinar series entitled "Finding opportunity in today's risky lending environment". While the direct audience of the webinar is towards credit lenders, the topics in the Webinar series could also easily apply to tenant screening process as well.

According to Experian literature, in this Webinar series you will learn:

Key factors to help minimize risk when evaluating credit worthiness
The importance of looking at both consumer and business credit information when making lending decisions
How the mortgage crisis is affecting consumer payment behavior and how to use the information to better evaluate lending risk

If this is something that can help you find better tenants in a risky financial world, then please join Experian and Register today!

Not Every Home is a House

noreply@blogger.com (MGM) — Mon, 13 Oct 2008 15:25:00 +0000

The National Multi-Housing Council earlier this year was seeking to remind policy makers that despite US culture being an "ownership society", for too many, the burden of homeownership can be (has become) too great. The news media seem to have plenty of stories of families who have lost, or are in the process of losing, their home.

The ad campaign, supported by the NMHC, is intended to remind families an policy makers that apartment communities fill a vital role in our society and not one size (ownership of a single family home) fits all.

What might have been seen as self-serving initially, now appears prescient.

Despite the societal benefits of home ownership, and indeed they are many, living in your very own single family home is not the best answer for every family. Many retirees strongly prefer apartment life, as do countless urbanites who love city life.

Many young families have previously moved to distant suburbs to find a home they could afford. But that often has multiple hidden costs that are not fully realized until well after the purchase has concluded. They can include a much longer response time from first-responders in the case of an emergency (it can take years for a growing suburb to catch up with a sudden spate of new residents). Shopping, entertainment, and most importantly, employment are substantially further away and with the average price of a gallon of gasoline hovering between $3-4 the transportation costs can add up quickly.

Too many families have sadly discovered that what initially appeared to be a great opportunity has for them become a great trap from which they can be released only at great cost and with great pain.

Life in an apartment community is still the better solution for a substantial portion of our society. With the economy soft, and job losses mounting, these communities have in the past, and continue to provide excellent housing value propositions for families in transition.

So for the many who have known from the outset that apartment life was the best choice for they and their family, we thank you for having the foresight to stay. For the many who jumped at the chance of home ownership, but have discovered that it is not the univeral best choice, we welcome you back into our communities.