Blog

With the summer winding down, now is the time to start thinking forward to the upcoming fall and winter season. Chicago winters are notoriously brutal and now is the best time to start preparing. Here are the items that Chicago property managers recommend to check now in preparation for the upcoming winter.

Furnace:

Is your furnace/heating system functioning properly? Typically, it is best to get your furnace inspected and cleaned every year. Making sure that it operates at peak performance is important to keeping your heating costs down and also for your own safety as furnace malfunctions or problems can be dangerous. Chicago requires that landlords provide tenants with the equipment capable of keeping their properties above 66 degrees during the winter months, so you will want to make sure that each of your tenants units heating equipment is working properly.

Pipes:

Frozen pipes can burst and cause thousands of dollars of damages to a property and/or cut off the water supply to some parts of the units. Your best bet is to have a professional come out and inspect for potential pipe freezes. The right professional can make suggestions on potentially relocating exposed pipes that are vulnerable to freezing or at least wrapping those pipes with heat tape or other mechanism to keep them from freezing.

Roof:

The roof of an apartment building is protecting your investment from all of the elements. Having a roof inspection before the winter can be crucial to protecting your investment from complete ruin. A damaged roof may not be able to handle the weight of the snow and ice that accompanies Chicago winters.

Making sure your investment property is ready for winter is a crucial step in the success of your property. Doing the proper inspections before can alleviate having expensive repairs during the winter. If you would like an inspection of your property before the winter hits, contact Gary in our maintenance department at 630-360-5574 today.

Tenant turnover can be one of the most costly parts of owning investment properties. Handling the maintenance needed to the property to get it ready to re-rent and the time the property is sitting vacant are costly endeavors. To help keep your costs low, you have to try and keep good tenants. Here are 3 Chicago property management tips to keep good tenants:

1. Price the Unit Correctly: Pricing of a Chicago property can be a difficult predicament and setting prices too high or too low can be detrimental to either the tenant or your pocket book. Setting the right price for the unit can be easier said than done, but you have to take in a variety of factors such as market rents around the location of the unit and the amenities of the unit. Setting rents too high may scare potential tenants away and can also lead to higher levels of turnover. If tenants are too pressed for cash, they will likely move on to more affordable housing when given the opportunity. Setting rents too low on the other hand may make even minor rent increases difficult. Having the right price should work for both you and your tenant and lead to a much better relationship than one where the unit was under or overpriced.
2. Keep Up With Maintenance Every Chicago area property will experience some level of wear and tear regardless of whom the tenant inside is. Keeping up with the property maintenance shows a level of good faith with the tenant and helps protect the value of your property. Maintenance needs that are not taken care of in a timely manner can lead to damage to the property or to the tenant not taking as good of care of the unit. Additionally, tenants are typically more satisfied when they feel their landlord will take of their maintenance needs.
3. Have A Good Relationship with Your Chicago Property Manager As an owner, having a good relationship with the assigned Chicago property manager is key to the satisfaction of tenants. Your property manager should work hard to keep tenants happy and handle maintenance and issues as they come up. If the Chicago property manager is difficult to get a hold of for tenants, they may get frustrated and take it out on your property.

For more information on how to keep good tenants and make the most of your investment property, contact us today at info@lettspropertymanagement.com.

Every property management company in Chicago charges differing fees to manage an investment property. There are a number of factors to consider when working with a property management company to determine if their fees are too high:

How Much Does the Property Management Company Charge to Fill A Unit?

While it is important to understand how much it costs to get a unit filled; it is as important to understand where that cost is going. Many property management companies utilize realtor leasing agents to fill units and have to pay a commission to get a unit filled. This will motivate the agent to get the unit filled and shorten vacancy times. Some companies charge very small amounts to get a unit filled, but in the same light they do not have the same motivation to get the unit filled as others utilizing the commission route.

Does Your Property Manager Charge for Vacant Units?

Some property management companies in Chicago charge their management fees whether or not the unit is filled. At Letts Property Management, we feel this is not right as vacant units do not bring in any income and property managers should be doing their job and getting the unit filled as quickly as possible.

Can Your Property Manager Handle Evictions?

Evictions can be very costly, but not evicting a delinquent tenant can be even more costly. A good property management company should thoroughly screen every potential tenant, but it is still important to have an idea how much the property management company charges to handle an eviction. A portion of this cost likely goes towards an attorney, so it is important to understand all of the fees involved with a possible eviction.

What is the Companies Mark Up on Outsourced Services?

When working with outside vendors, it is common for a property management company in Chicago to charge a small mark up for their time. Be wary of companies claiming not to mark up these services as they are likely hiding something. Their time needs to be compensated for coordinating everything and therefore claiming not to charge a small mark up on outside vendors could mean offering lower quality or higher cost vendors that offer them a kick back for the work they bring. It is also important to understand how much will be outsourced. Some companies like Letts Property Management, are full service and have a full maintenance staff in house. This avoids using outsourced services except in rare instances and keeps cost for owners down.

Does Your Property Management Company Offer a Guarantee?

While this may not have much to deal with them charging you too much, having a guarantee in place shows a higher level of quality in their services. If the company stands behind its management services and fee structure, than offering a guarantee shows good faith that the company is offering services at a price they feel confident is best for owners and their own company.

In the end, do remember that you get what you pay for and any property manager offering to manage everything for fee is most likely not going to keep an eye on your property. Investment properties can cost hundreds of thousands to millions of dollars and giving control of your investment to strictly the cheapest option out may not be the best idea; but finding the right property management firm in Chicago for your needs is the key.

As a leading residential property manager in Chicago, we know that every single day counts when the property is vacant and we can dramatically decrease the number of days a property is vacant. We have an in-house construction team that can go out and completely check over a unit, paint it, and get it rental ready. This means checking everything over and making sure that the unit is ready for a new tenant. This can save precious time and avoid headaches down the road.

Once the unit is ready to rent, our leasing team goes in to action and we advertise your unit on a variety of sites, not just one, and even send the available unit out directly to realtors that we partner with. Using a variety of websites is more time consuming and more expensive, but it will always get units filled faster than only listing the unit on one. Additionally, working with multiple realtors at once ensures that the unit is filled as fast as possible with the highest quality tenant possible.

Once the unit is filled, we can manage the property for you and handle the landlord tenant relationship. When the new tenant is ready to move out again, we start the process over again. If your rental unit or investment property is sitting vacant, contact us today and see how we can make the most of your investment property. You simply cannot afford to let your property sit vacant.

While property management companies do come at a cost, they can save you money while working with your investment property. Finding the right tenants, screening them, maintaining the property, and handling tenant issues are just a few of many tasks that property management companies can take off the back of a real estate investor. Here are the top 3 ways property management companies in Chicago can save Chicago area real estate investors some serious money.

#1. Shorter Vacancies

One critical aspect of an investment property is getting the unit filled. The unit does not generate any income or revenue while it is sitting vacant. After taxes and potential thefts or break ins, a vacant property is the most undesirable aspect of an investment property. As a leading Chicago area property manager we know that every single day counts when the unit is vacant and our goal is to dramatically decrease the number of days a unit is vacant. We have an in-house construction team that can go out and completely check over a unit, paint it, and get it rental ready. Once the unit is ready to rent, our leasing team goes in to action and we advertise your unit on a variety of sites, not just one, and even send these listings out directly to realtors and leasing agents that we partner with. All of this with the goal of getting the unit filled as soon as possible.

#2 Handling Tenant Issues

The typical property management horror story usually includes receiving calls at all hours of the night from tenants with issues that they want handled right away. Those calls and the time they take can really add up. On top of fielding the calls, finding time to schedule someone to fix the problem and coordinating things with the tenant’s schedule can really be a nightmare. On top of that, maintenance calls are just the beginning as you need to handle your bookkeeping, chase down late or non-payment of rent, and handle evictions. Hiring a professional property manager takes all of those worries away as they are responsible for handling the landlord-tenant relationships and all tenant issues which can ultimately make the property more profitable for you.

#3 Maintaining the Property

One of the biggest headaches with owning investment properties is handling the maintenance involved with the property. Whether it is cutting the grass or keeping up the appliances, landlords are expected to keep their property in a certain condition and doing it yourself can be time consuming and costly if not done right. At Letts Property Management, we have a full service maintenance team that can handle any investment property maintenance needs. By having a full staff in house, we can get work completed faster and more cost effectively than companies that do not have a maintenance team in-house.

If you have an investment property in Chicago that you would like professionally managed, contact us today to see how much you can save.

Today, Letts Property Management held our first monthly owner call . The call kicks off our monthly owner call series to cover a number of property management and real estate topics, with the goal of giving owners as much information about property management, Chicago real estate, and other topics as possible. This first call focused on understanding the monthly owner statement.

The call was a one hour call held at 1pm CST and offered a thorough explanation of the monthly owner statement along with other monthly statements that Letts Property Management property owners receive during the month. The purpose of this call is to get more information in owners hands and help answer some common questions that we receive. The goal is to provide another easy to access avenue of communication to continue providing as much communication as possible. It also offers an additional level of transparency in our Chicago property management business. Owners who have missed the call will be able to receive a recorded version by giving us a call at 630-324-4267 ext 106.

Next months property management owner call is in the works and more information will be coming soon. If you are not a current Letts Property Management owner and interested in learning more about our property management services, contact us today and you can be sure to look forward to a higher standard of residential property management.

When it comes to your investment property, you cannot hand the keys over to just anybody. Handing over the keys to your investment property can be a hard step to take, but if you take the right precautionary steps while finding a tenant you can rest easy knowing you did your homework and that you picked the most qualified tenant.

Tenant screening is a service nearly every property management firm will offer, but there are differences in what each firm looks for in a prospective tenant. At Letts Property Management, we look for a tenant that makes three times the monthly rent monthly. It is not legal to discriminate in the source of that income, but making sure the tenant can afford to live in a unit is very important.

After verifying the tenant’s monthly income, the next check is the tenant’s credit score. Credit scores typically range from 350 to 850 and most management companies are looking for something roughly in the middle at about 650 or higher. Lower credit scores are accepted at some firms with an additional deposit. Typically, the lower the credit score, the higher the chances of a prospective tenant not paying rent.

Good next steps for tenants that have met the first two criteria’s are to run full background checks and start working with references. One of the first things to check for is past evictions. Evictions are time consuming and costly and your best bet is to avoid tenants with past evictions. Additionally, most felonies will make the renter ineligible. If the background check comes back clean, proceed on to calling references.

Calling past landlords are good steps, but take things with a grain of salt when calling the current landlord. The current landlord might be motivated to get a tenant out that pays late or damages the property out and therefore might not be completely honest. Additionally, some tenants may not have a rental history, so calling some non-landlord references can suffice. When calling non-landlord references, focus on asking about the character of the person and depending on who the reference is try to find out as much as you can about the prospective tenants level of responsibility and maturity.

For more information on the key things to look for in a prospective tenant and for more information on all of our property management services, contact us today at 630-324-4267.

Owning property is not only an investment, but also a service to the tenant. Providing a safe and secure place for a tenant to live is one of the most important landlord responsibilities and failure to do so could lead to people branding your property as a slum and you a slumlord. While inspecting rental properties, there are many maintenance items that are essential to meeting a landlord’s responsibility of providing a safe and secure place for the tenant. Here are five key items that must be on any rental property maintenance checklist.

Smoke and Carbon Monoxide Detectors:

First and foremost, are there enough smoke and carbon monoxide detectors to match local codes and are they installed correctly? Smoke detectors are crucial health and safety issues that are required by law. It is the tenant’s responsibility to maintain a working battery in the smoke detector. Laws are similar for carbon monoxide detectors.

Heating:

Aside from smoke and carbon monoxide detectors, ensuring the tenant’s heat is working correctly is an important checkas well. Chicago winters can be brutally cold and Chicago summers can be just as bad with high heat; therefore ensuring the tenants have the proper equipment to keep their living environment comfortable is key to keeping a tenant long term. Additionally, Chicago municipal code specifically requires that from September 15th to June 1st rental units must be supplied with heat to maintain minimum temperatures of 66-68 degrees depending on the time of day.

Water:

Landlords are also required to provide water to rental units. Unsanitary conditions will quickly develop in rental units that lack water.

Doors and Windows:

Any rental maintenance checklist should also include checking the doors and windows of a unit. Windows and doors can shift over time due to the materials around them contracting and expanding from constantly changing temperatures in Chicago. Windows and doors can become warped and may need to be replaced. Doors and windows that do not open can not only be a headache for tenants, but could also be dangerous in case of emergencies. Ensuring that all windows and doors are up to code as necessary and operating properly will provide the tenant peace of mind that they are safe and secure within their space.

Appliances:

Finally, confirm that all appliances are working as intended. Appliances typically have a 10 year life but need to be inspected regularly to ensure all parts are working and safe. Broken appliances will surely frustrate a tenant upon move in. Inspect all of the appliances for cleanliness and damage and make sure that they are in good condition. For more information on rental property maintenance, contact us today.

Owning investment properties in Chicago is one thing, but owning investment properties in Chicago that make you money is another. One of the biggest factors in your investment property making money is picking the right tenants. Having the right tenant can turn your investment property into a hassle-free money maker; while having the wrong ones would mean something completely different. Between evictions, late or unpaid rent, and damage to the property, you simply cannot afford to have anything less than the highest quality tenants.

Screening tenants on your own can be difficult and challenging. While you can often screen potential tenants in person, in person screening is only so effective. It is nearly impossible to really know the quality of a tenant based solely on an individual meeting. Doing the legwork to call past references and landlords are important steps to really make sure you are finding a quality tenant as otherwise lower quality tenants can slip through the cracks. Pulling full credit and criminal background checks are important steps as well to make sure only the highest quality tenant is picked for your property.

At Letts Property Management we utilize an industry leading tenant screening process that includes a full credit and criminal background check along with a full eviction search. This screening process helps ensure that only the highest quality tenants are considered for your property. Having the highest quality tenants ensures that rent is not only paid, but paid on time. To learn more about our proprietary tenant screening process and the rest of our Chicago property management services, please gives us a call at 630-324-4267 ext. 3 or contact us today.

The Chicago real estate market is one of the hottest rental markets in the country. While Chicago real estate can be a great investment; if you do not keep your eye on your property things can go awry in a hurry. If you live out of the area or do not have the opportunity to visit your property, hiring a property manager in Chicago can help with the maintenance and increase the value of your property.

Regular property inspections are crucial to maintaining a safe and secure rental property. A good property manager in Chicago will perform inspections of the property on a regular basis and have checks in place to ensure that a property is kept up. At Letts Property Management in Chicago, we take this a step further by training our maintenance staff to keep on the lookout for any issues while servicing any of apartments. This ensures that our staff is always monitoring a property’s condition and can handle any issues as they arise. Additionally, we screen all tenants using some of the best tenant screening processes to make sure that the tenant will respect their unit and protect it from damage.

Aside from the physical aspects that a Chicago property manager can protect, the best Chicago property managers facilitate rent collection and ensure that rent is paid and paid on time. A rental property can become a huge headache for owners if rent is not collected and most Chicago property management companies will take over that responsibility for the owner. Additionally, some Chicago property management companies can handle the eviction process if necessary which can provide an additional level of protection to get any problematic tenants out in a timely manner.

At Letts Property Management, we strive to help protect your investment property and ensure that you can get the most out of your investment. To learn more about our property management services and to get a free quote, contact us today.