Importance of Rental Payment History

Most people think credit and criminal are all that matters . . . The experts at Experian have a little more to say.

Used in conjunction with credit evaluations and traditional screening methods, rental payment history can go a long way toward filling up an apartment community with qualified renters who pay on time. Resident screening companies love data. To determine whether or not a prospect is worthy of renting an apartment, vast databases are scanned for past purchasing behaviors, job histories, on-time and overdue payments and of course, credit history. Landlords and leasing agents have known it for years: a social security number is the best information an apartment prospect can provide on an application. Check personal references? Maybe. Check credit? Absolutely. But credit scoring isn’t necessarily the Holy Grail it used to be when determining a resident’s propensity to pay rent on time. Consider the millions of Americans who lost a home due to a foreclosure, or someone who temporarily lost a job in the recession and was unexpectedly hit with medical bills and no health insurance. Particularly in our current economic climate, there are lots of reasons why a rental applicant might have poor credit, limited credit or no credit at all. Furthermore, some of these criteria might have little (if any) impact on whether or not they will pay their rent. Since apartment operators depend on rents for success and survival, knowing each individual resident is going to pay up on the first of the month is critical to establishing net operating income (NOI) and consistent revenue. From there apartment owners can accurately determine the market value of their real estate, decide when and where to invest in capital improvements and make informed decisions on buying and selling property: all based on rent roll. With recent swings in the homeownership ratio, more than 1/3 of the U.S. population rents, and what better way to determine creditworthiness of rental applicants than to consider how they have historically paid their rent. Experian RentBureau began incorporating residential rental payment data into credit reports over a year ago, and according to our research, inclusion of positive rental payment history data will pull one in three consumers out of high-risk categories and put them in better qualifying scoring bands. The easiest way to help residents establish credit is to furnish their payment data. Offering prospects and residents such an easy way to establish and rebuild their credit score—simply by paying their rent on time—is likewise a huge benefit apartment communities can easily market as a turnkey amenity. This is a message surely any rental prospect would love to hear from a leasing agent. In addition to the resident credit-building benefits of furnishing rental payment history, accessing trend data on payment history has recently emerged as a primary metric employed in screening practices to employ as another layer separating the good renters from the bad. Used in conjunction with credit evaluations and traditional screening methods, rental payment history can go a long way toward filling an apartment community with the highest-quality renters who pay on time. Building a resident demographic of credit-worthy renters thus has an immediate positive effect on NOI, reducing the overall likelihood of skips and decreasing exposure to bad debt and its associated collections costs. The M.O. is relatively simple: in addition to raw credit, rental payment history looks at how well an applicant has historically paid their rent. A lower credit score matched with a rental history that shows on-time, every time rent payments suddenly becomes a qualified rental candidate—and one who other property managers not utilizing rental payment history might decline. “Rental payment history has helped us to identify applicants who are more than likely to honor their rental obligations based on their past history of paying their rent timely,” says Michael Johnson, executive vice president and chief administrative officer of ALCO Management. “By using rental payment history as part of your screening criteria, you can make a faster, more consistent decision regarding the application.” Brannan Johnston is vice president and managing director of Experian RentBureau, the largest and most widely used credit bureau in the multifamily industry. In addition, he oversees the income and asset suite of products within Experian’s Consumer Information Services.

March 2012 Single-Family Rental Survey

Here is the latest market survey from Zelman and Associates:


March 2012 Single-Family Rental Survey

Refinance now? New HARP Guidelines Released

The government's new HARP 2.0 Refinance Program is available to U.S. homeowners as of March 17, 2012. 

What Is HARP?

HARP was started in April 2009. It goes by several names. The government calls it HARP, as in Home Affordable Refinance Program. The program is also known as the Making Home Affordable plan, the Obama Refi plan, DU Refi +, and Relief Refinance.

In order to be eligible for the HARP refinance program :

1. Your loan must be backed by Fannie Mae or Freddie Mac.
2. Your current mortgage must have a securitization date prior to June 1, 2009

If you meet these two criteria, you may be HARP-eligible. If your mortgage is FHA, USDA or a jumbo mortgage, you are not HARP-eligible.

Basics of the new guidelines:

• No  limit to loan to value
• All properties owned by Fannie Mae or Freddie Mac are eligible as long as they are still used for what they were originally financed as (a primary residence converted to an investment property doesn’t qualify)
• An investor that has recently lost a property to foreclosure or short sale and wants to refinance his others will be able to
• Maximum cash back is $250
• Closing costs may be financed into the new loan
• Full documentation is still required (verifying income and assets)
• Current loan must have been originated prior to May 31, 2009
• Minor rate adjustment

Contact your mortgage broker or banker for more information.

Simple Fixes for Common Appliance Problems

Simple Fixes for Common Appliance Problems | from The Family Handyman

At least a quarter of all appliance repair calls are resolved with no-brainer solutions like pushing a button or flipping a circuit breaker. Learn what to look for and how to avoid these expensive lessons.

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Disposer

If your disposer won't start, push the reset button and give it a spin.

All disposers have an overload feature that automatically shuts off the power when the motor becomes overloaded and gets too hot. Once the motor cools, simply push the reset button on the side of or under the unit.

On the other hand, if it hums but doesn't spin, it may have something stuck in it. Switch the disposer off, then try working through it by turning the blades with a special disposer wrench (sold at home centers) or by turning a bottom bolt. Many disposers have an Allen wrench for that purpose, inset on the bottom of the machine.

Lights

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Hit the reset button

If the circuit breaker hasn't tripped, look for a GFCI.

When a light goes out or a switch doesn't work, you should first check the main electrical panel for a tripped circuit breaker. But don't stop there. Before you change out light bulbs and switches, see if a GFCI outlet (which may be upstream from the troubled light or outlet) has tripped. Sometimes all the bathrooms or the outside lights are powered through a single GFCI located in one bathroom or elsewhere, such as in a basement. Simply push the reset button on the GFCI and you could be back in business.

Refrigerator

Clogged coils

Clean the coils if your refrigerator isn't cooling or conks out

If your refrigerator conks out on a hot day and you have a cat or a dog, immediately check the coils for pet hair. Service pros find this problem on half of their refrigerator calls. The coils are the black tube-and-wire grid that cools the fluid in the compressor. A buildup of hair will cause the compressor to overheat and trigger the overload switch. On many fridges, you get to the coils by opening the grille at the bottom of the refrigerator. Then push a coil cleaning brush (sold at home centers) into the coils, pull it back and vacuum it clean.

If the coils are located on the back, pull out your fridge (it's often on rollers) and brush them off. Bonus: The clean coils will cool more efficiently and save you money on your utility bill!

Once the overload switch is tripped, you may have to wait a few hours for it to cool. It will reset itself and turn the refrigerator back on.

Gas stove

Clean the igniter

If the burner won't light, try cleaning the igniter.

If your stove burner won't come on, the likely culprit is the spaghetti sauce that boiled over a few days ago. Use a toothbrush to clean off food spills from the igniter. On an electronic ignition stove, it's a little ceramic nub located either on the stovetop or under the ceramic seal strike plate. Also make sure that the round ceramic seal strike plate is properly seated on the burner.

Electric range

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Burner prong problem

Spread the burner prongs a little to create a better electrical connection.

If your electric stove burner won't heat, turn the burner off and pull it out from its socket. Then plug it in again and wiggle it around. If it feels loose, remove the burner again and gently bend the burner prongs slightly outward for a tighter connection. Easy does it. You could end up pushing the whole socket out of its bracket.

Standing pilot gas range

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Pilot light hole

Try cleaning the pilot hole, then relight.

To access the ignition system in an older-style standard gas range, pop the lid. It's usually hinged on the back side. If the pilot flame is out, poke a needle into the pilot hole to clean out soot (be careful not to ream it wider). Brush off any debris and clean the tube that leads from the pilot to the burner. Then relight the pilot.

Electronic oven controls

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Programming snafu

Oven won't heat? Check the clock and the timer setting. It doesn't always do what you think you told it to do.

Blame it on the technology. It so happens that if you set the “time cook” function, the oven, much like a programmed VCR, won't turn on until the appointed time. You may have done this inadvertently, but if your digital display reads “hold,” “delay” or “time cook,” then the timer is engaged. You'll have to clear it first by pushing the “off” button. On ovens with dials, be sure the knob is turned to “manual.”

Washer

Level the front

Quiet a noisy washer by leveling it.

When a washing machine cabinet rocks, it makes a horrible racket during the spin cycle. The solution is to simply readjust the legs. Screw the front legs up or down until the cabinet is level. When both legs are solid on the floor, tighten each leg's locking nut. In most washers, to adjust the rear legs, gently tilt the machine forward and gently lower it down. The movement will self-adjust the rear legs.

Dryer

Wrong setting?

Before calling the repairman, check the dryer settings—just in case.

Our expert repairman responds to many “dryer-not- heating calls” only to find that the machine is set to “fluff air”—a non-heat setting. Avoid the embarrassment. Check the settings first.

Another common cause of poor drying is a clogged lint filter. The filter may look clean, but it may actually be covered by a nearly invisible film caused by dryer sheets. This film reduces airflow and forces the thermostat to shut off the heat before your clothes are dry. Test your filter by pouring water into it. If the filter holds water, it's past time to clean it. Pull out the filter and scrub it in hot water with a little laundry detergent and a stiff kitchen brush.

Also check the outside dryer vent for any lint that may have built up there. The louver door–style vent covers are notorious for lint buildup, which traps heat and turns the heat off in the dryer. Pull the cover completely off to get to these clogs.

Air conditioner

Check the fuses

If your AC won't come on, the thermostat may be saying no.

If you turn your central air conditioner on, off and then on again in rapid order, chances are you'll blow a fuse or shut off a circuit breaker or the air conditioner simply won't respond. That's because the compressor (in the outdoor condensing unit) may have stopped in a high compression mode, making it difficult to start until the compression releases. Older condensing units may switch the compressor on anyway, which causes the circuit to overload and blow a fuse. Newer, “smarter” condensing units will prevent this blunder by delaying the AC’s “on” function for a few minutes. It's easy to mistake this delay with a faulty air conditioner. Be patient and give the air conditioner about five minutes to come back on.

To determine if you have a blown fuse, locate the special fuse block near the outside unit. Pull out the block and take the whole thing to the hardware store. A salesperson can test the cartridge fuses and tell you if you need to replace them.

Another simple reason your AC might not come on: You've signed up for a cost discount with your electric company in exchange for limited air conditioning during high-demand periods, and you're in an “off” period. If you can't remember, call your electric company to find out. You don't want to pay the repair technician to drive out and explain this program to you!

Dishwasher

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Clean out debris

Clean the filter and float switch if the dishes don't come out clean.

When your dishwasher no longer gets your dishes clean, a food-filled filter is most often to blame. If it's clogged, water can't make it to the spray arms to clean the dishes in the top rack. The fix takes two minutes. Simply pull out the lower rack and remove the filter cover inside the dishwasher. (Check your owner's manual if you can't spot the filter.) Then use a wet vacuum to clean off the screen.

While you're there, slide the nearby float switch up and down. If it's jammed with mac and cheese, you won't get any water. If the cover sticks, jiggle it up and down and clean it with water

Idaho Falls Rentals Location Featured on Local News

We were recently featured in the local news on channel 3 and 8 in Eastern Idaho. The story was about the number of people who are turning their homes into rentals.  There are a lot of homes being added to the rental market that are not traditional rental homes. AND at the same time there are a lot of people who are renting that are not traditional renters. We have a lot of clients who are renting in our market while waiting for their home in another market to sell. These tenants are typically high credit score, owner mentality, renters that take great care of the property as if it were their own. Over the past few years this extra market have been developing and the supply is keeping up with the demand.

Delivering Happiness!!! Touring Zappos headquarters in Vegas

While in Las Vegas to attend the National Association of Residential Property Managers (NARPM) Broker/Owner Conference, we (the owners of BMG Rentals Property Management and Jacob Grant Property Management) had the opportunity to tour Zappos headquarters.

Wyatt, Chad, Jake, Clint, and Joe are royalty at Zappos.

We read the book "Delivering Happiness" by Zappos CEO Tony Hsieh before going to Las Vegas. Zappos is known for its outstanding customer service. We wanted to see if we could bring some of their magic back to our businesses. They developed a culture as a small start-up business that was focused on the customer experience. It is impressive how that culture is still strong in their organization and their thousands of employees.

Tony Hsieh's cubicle right next to other Zappos employees.

"I usually ask people to think about what they would be so passionate about doing that they’d be happy doing it for 10 years — even if they never made any money — and that’s what they should be doing. By doing that, it’ll actually greatly increase their chances of making more money, because it’s their passion that’s going to get them through the tough times — and every business has its ups and downs. And their passion will rub off onto employees and have a ripple effect on customers and business partners." 
- Tony Hsieh 

Chad plays Angry Birds on the HUGE
 Ipad Coffee Table in the Zappos lobby.

Some highlights of the tour included:

• If you wear a tie they cut it in half and hang it on the wall.
• They have a company library with free books for employees and visitors. Most of these books are popular business books that have influenced Zappos. We each were given a copy of the Zappos Culture book and chose another book to enjoy.
• The cafeteria and vending machines are mostly free to employees and guests.
• Employees are welcome to decorate their areas however they want. One employee had wood flooring in his cubicle. One gathering area has artificial grass and lawn-chairs.
• The CEO and VP's have cubicles right in the mix with everyone else in the company.
• They offer guests shuttle service from their hotel to the Zappos Headquarters and back. All of this is at no cost. They just want to spread happiness.
• Everyone was HAPPY!

This employee decorated his entire cubicle with aluminum foil.

The largest gummy bear ever!

We want to thank Zappos for their hospitality!!