The Rentables Blog

A couple weeks ago we were privileged to have Carla Johnson, Author of Magnetic Real Estate Photography share her real estate photography expertise in the form of a guest post. To return the favor we’ve shared 5 Tips for Effective Online Rental Ads as a guest post on Carla’s blog. Be sure to check out her site for lots of great real estate photography tips to attract the tenant or buyer you’re looking for.

As the search for rental listings moves online and ads become more standardized, you want to make sure you stand out from the crowd – in a good way. In this article we’ll review 5 ways you can make the right impression when you post online rental ads.

1. Consider your target
The first thing to do when writing your rental ad is to determine the type of tenant you want to attract. Once you know your target audience, you can tailor your ad to that crowd. When you focus your ad on attracting the type of tenants you want, the ad itself will do some of the screening for you.

2. Use good photos
These days, photos are a must for an effective rental ad. Many users skip over ads without photos, especially good tenants looking for a place to call home. Often users will assume ads with no photos mean the landlord either doesn’t care or has something to hide – neither of which will help you rent your unit.

In the online world, the first thing prospective tenants see are the photos you post along with your ad, and no matter how fantastic your ad copy is, your photos do most of the talking. Use your photos to showcase how great it would be to live in your unit. Check out Carla’s tips for taking Magnetic Real Estate Photos that will attract the tenants you want.

3. Be specific
Are you looking for lots of phone calls and emails, or lots of interested renters? If you want to skip straight to the interested tenants and avoid taking a bunch of calls from tire kickers looking for more information, be specific with your ad and provide all of the details up front.

Unlike rental ads in the classified section of local newspapers which often charge by the letter, most online sites offer plenty of space for you to provide all of the details. Take advantage of this space to provide the information tenants are looking for up front. Along with great photos, the most important details to include are location and price. Be sure to fill out all of the fields when posting your ads, list all of the amenities, and be clear on the terms. If you require a 1 year lease or utilities are extra, just state this upfront.

4. Avoid cliches
There are several cliches to be avoided when posting online rental listings:

• Avoid All CAPS – Maybe writing ads with CAPSLOCK was a clever marketing tactic at one point, but this cliche is often screened out by the younger generation and can make you look either angry or desperate .
• Avoid empty phrases – In real estate ads there are many overused words such as “nice, great, and beautiful” which have become “empty” words. Look for alternatives which really describe what your unit has to offer.
• Avoid abbreviations – Most sites give you plenty of space for your ad copy, so there is no need to use abbreviations. In your online ads opt for terms like “dishwasher” over “d/w” and “finished basement” over “fin bsmt.”

5. Choose your words wisely
When posting rental ads online you have more room to work with, but you should still use that space wisely. Use terms tenants love such as “free” and “all inclusive” to draw renters in.

When writing your ad be sure to “sell the sizzle, not the steak.” In other words, don’t just sell the features of your unit, sell the benefits those features provide. A dishwasher is a nice feature, but the luxury of never having to scrub dishes by hand is an even better benefit. Use your ad to paint a picture that makes the viewer want to move in today.

Finally, wrap up your ad with a strong call to action. Be clear on what you want the tenant to do next, and give them a reason to take action immediately.

Make the right impression
Your rental ad is the first thing prospective tenants see, so you must use your ad to peak the interest of the type of tenant you are looking for. Renters will form their first impression of both the property and the landlord from what they see in your ad, so use the 5 tips above to ensure that the first impression you make is good one.

I’ve talked to many people who were surprised by the amount of interest they were paying out on their loans. These ranged from student loans to house mortgages. It’s not very obvious how much total interest you’ll be paying when you first get the loan. That’s where an amortization schedule will come in handy.

Let’s say you’re buying a nice condo or a house and need some money for the down payment. You feel pretty good when you leave the bank. You just signed a 25 year loan for $100,000 with 5% annual interest rate, which sounds like a very good number. However, by the time you’re done paying off that loan, your interest will add up to about 75% of the original $100,000. That’s$75,377.01 to be exact. This is how the bank makes its money.

How is that possible? The answer lies in compounding and an amortization schedule can show you the nitty and gritty details. These schedules can be a bit of a pain to build from scratch, so we’ve created a working sample schedule for you to use. You’ll need to change the numbers to reflect your own scenario. The link to the excel file is at the bottom of this post.

A quick how-to:

1. Enter the loan amount, annual interest rate, number of years, and number of payments per year:

Excel will calculate your monthly payment automatically.

2. Adjust the amortization table if required. The default table includes 300 payments (25 years of monthly payments so 25 * 12). You may have to add or subtract rows. If you have a 30 year loan with quarterly payments, you’ll need 30*4=120 rows.

3. Once the rows are adjusted properly, you can view the statistics about your loan. You’ll see how much you’ll pay in total interest, in total principal, and the grand total for your loan.

Another useful feature of an amortization schedule is that for every payment period, you can see the exact breakdown of interest versus principle. For example, in the 20th payment on our default spreadsheet, you’ll pay: $402.86 in interest and $181.73 in principal.

When you take a look at this loan, you’ll notice that the majority of your initial payments will be covering interest. Only after the 134th payment will you be paying more towards the principle of your loan rather than its interest.

And that’s about it. These amortization schedules will come in handy when you’re shopping around for loans. Use them to your advantage and see how much interest you’re really paying. The excel file is below:

The Rentables Sample Amortization Schedule (Microsoft Excel Spreadsheet)

If you’d like to build your own amortization schedule from scratch, take a look at this guide:

University of South Dakota: Step By Step Example of PMT Function

To find financing for your next deal, you can either go to the bank and speak directly with a mortgage representative, or you can work with a mortgage broker. In my experience, using a mortgage broker has been the better choice since they work with multiple lenders and can usually find a lender that will offer better terms. Mortgage brokers are in-the-know and are aware of which banks are anxious to lend at any given time. As an investor, you may get to a point where one particular bank is not willing to lend you any more money and working with a broker is nice when you’ve outgrown your bank.

Real Estate Investment Team selection criteria
Like selecting any other member of your team, you’ll want to find a mortgage specialist or broker who:

1. Owns investment real estate themselves
2. Cares about your goals
3. Has the appropriate qualifications
4. Has specific experience working with real estate investment financing
5. Has reasonable fees
6. Provides positive chemistry

What mortgage brokers offer
Mortgage brokers are well connected within their industry, and have access to capital from banks, credit unions, trust companies and other financial institutions. This wide range of funding sources gives them the ability to shop around and find the best rates for your particular deal. Whether you are buying your principal residence, first investment property, or a small apartment building, a broker can find you the best rates and terms.

How mortgage professionals make money
Some brokers charge an upfront fee to put your deal together, but most only get paid once the loan is funded. Usually the broker will earn a fee (from the lender) of 1-2% of the loan value once the loan is complete. Depending on the type and complexity of the deal, they may earn up to 5%. Brokers usually only get paid when loans close, so the smart ones will provide the consulting and advice you need to make sure you don’t get stuck after your first deal. The more properties they help you buy, the more they will earn.

Get some referrals
When selecting a mortgage broker, there are some general things to look for, as well as some specifics. Getting positive referrals from friends, other investors, or other members of your real estate investment team is often a good start.

Qualifications?
When it comes to appropriate qualifications here is what you’ll want to look for:

• In Canada – Member of Canadian Association of Accredited Mortgage Professionals (CAAMP) formerly known as CIMBL with an Accredited Mortgage Professional (AMP) designation
• In the US – Member of the National Association of Mortgage Brokers (NAMB) who must adhere to a code of ethics and higher standards of practice

Investment specific experience
When selecting a new mortgage professional as part of your team, it is critical that you select someone with investment specific experience. In fact, the more investment deals they have done, the better. Obtaining financing for someone’s principal residence is much easier than putting together the funding for an investment property, and you’ll want to work with someone who is familiar with that process – especially if you’re not.

Once you have shortlisted a few candidates for your team’s “financier”, consider whether they meet the 6 criteria above.  If they do, and you feel good about working with them, then stay tuned and we’ll let you know how to select your Realtor in Part 3 of Building Your Real Estate Investment Team.

As a final note, remember you are looking for a broker who can help you finance more than jus

Today we’ve got a treat for you. Carla Johnson, author of Magnetic Real Estate Photography has put together the following guest post for our readers. Carla is a real estate photography expert and an active investor who owns properties for rent in Kitchener and the surrounding area. Today she shares some helpful tips on taking the type of photos that will act as a magnet to attract the right tenants.

If you have ever looked online for a property, you’ve seen what I’ve seen – the dark rooms, the funny corners, the glaring windows, the messy tables, the weird angles and the mirrors with camera flashes in them – and all you want to do is look away! (For some of these samples, see Carla’s Blog)

Too many real estate professionals are unaware that the “Sell” now takes place online. This is a huge shift. Ever since selling or renting real estate began, the goal was to get people to visit the property. That was where the “Sell” used to take place. Not so anymore.

Consider eBay. People spend hundreds of thousands of dollars on products they can’t even touch. Sellers on eBay post lots of information, and numerous photos of their products displaying all sides of the items and zoomed in detail shots. Thorough information makes buyers feel comfortable enough to pay up front then wait for the item to arrive in the mail.

The “Sell” takes place ONLINE! Any landlord who gets this is right on the edge – but too many are not. If the property is properly featured with lots of effective photos and a truly helpful listing, a big part of the job is done.

Start with a catchy headline that lets the prospective tenant know there is something special in your place for them. Then write a helpful description of the place in a talking voice, but keep it short and to the point. I am finding that a lot of people only look at the headline, and the pictures.

Put some thought into your photos. When you look at a good photo, your eyes linger and stick to it – like a magnet. When you look at a bad photo, you have to look away. Great photos draw viewers and business. It’s magnetic!

Carla’s tips for taking “magnetic” photos
When you head out to take shots of your property you want to show the following:

• the path to the front door
• the whole layout of each room
• more floor than ceiling
• all rooms level and in focus
• good colour
• everything tidy
• how one room leads into another
• toilet seats down
• shower curtains open

A listing or ad with only a few images will tell the viewer – intentionally or not – that something is hiding. People expect to see everything online these days before they even view the place. If the photos in the ad make a renter comfortable, they will arrive at the visit comfortable and feeling at home – ready to move in. That is the kind of attitude you want from tenants when showing a unit isn’t it?

Thank you to the team at The Rentables for the invitation to guest post today. I wish each of you and your readers the best in all your endeavours. If you or your readers have any questions, please feel free to contact me: carla@magneticphotography.com.

May you always give your best to attract the best of everything in your life. It’s magnetic!

Carla Johnson
Author of “Magnetic Real Estate Photography”
www.MagneticPhotography.com

If you’ve ever had the inkling to venture out into the world of real estate investing, you were probably unsure of where to start and like most, a little overwhelmed. One of the most important steps after you’ve decided to invest in real estate and set out some clear goals is to surround yourself with a team of experts.

Whether you are just buying a principal residence for yourself or looking to amass a multi-million dollar real estate portfolio of apartments for rent in Los Angeles, working with a qualified team of experts can save you a lot of time, money and headaches in the process.

Many investor start out without much cash, and look to get started as cheaply as possible. Often times this means avoiding help from the experts which is so valuable. You can try to do it all on your own, but if you’re any good as a real estate investor, your time is best spent finding and putting together deals rather than trying to fill the roles of 7 different professionals who each have years of education and experience in their particular specialty.

Your Real Estate Investment Team Roster
To cover all of your bases, your team of real estate experts should consist of the following professionals:

Home owners often become landlords to help them cover some of the costs and generate positive cash flow from the ownership, but too often auxiliary costs are forgotten and the established rent prices are too low to make extra money once offset by additional costs incurred.

To determine the best rental price, consider the following:

Costs associated with the ownership for the year

1. Mortgage Interest – make sure to exclude the principal portion of your mortgage payment (this is building equity for you anyways)
2. Repairs and maintenance – tenants break things and you’ll have to pay to fix it
3. Insurance – an absolute must for any property owner
4. Advertising costs – vacant units don’t rent themselves, don’t forget to budget for this expense when it pops up
5. Management fees – if you are using property management services (or value your own time)
6. Legal/accounting expenses – having a rental property generally increases your legal/accounting bills for the year even if you only require routine bookkeeping and tax filing
7. Property taxes – these vary by location, but can be significant
8. Utilities – gas, hydro, etc.
9. Condo fees – if you buy a condo for rental purposes, your monthly condo or maintenance fee can often be a deal breaker

Adding all these costs up will help you determine how much rent you’ll need to charge to make sure your property puts some money in your pocket every month.

Competitive pricing
Be aware of what others are charging for units similar to your own. Why shoot yourself in the foot by having low rents when market prices in your area are a lot higher? For example: 1 bedroom, 1 bathroom apartments for rent in Los Angeles are currently renting for an average price of around $900. Consider using The Rentables’ interactive filters to help you determine pricing for units in your type in your area.

Don’t forget to factor in important amenities such as available parking, local transportation, proximity to schools and stores and any other amenities which may give you an edge over your local rental competition.

Ideally, your unit will cover all your ownership costs while being priced competitively enough to always remain rented and generate some positive cash flow for you each month.

Happy renting!

I would like to say hello and introduce myself and my team.

My name is Pavel and I’m part of The Rentables team (http://www.therentables.com).

We have been in business for almost a year now, and have achieved great results in terms of growth, content quality and customer satisfaction. I am pleased to offer you our services; do not hesitate to message me if you have any questions.

The Rentables is free to use for both landlords and potential tenants. I encourage you to come see the difference in simplicity of use and speed of our website. We’ve made “Filter, compare, rent” our slogan because our interactive filters allow for very quick elimination process of listings that do not fit your search criteria. You can add the listings you like to favorites and compare them side by side and finally, we encourage our visitors to take action and contact those who have listed their properties with us by providing all the necessary contact information up front.

Once again, dear readers, thank you for giving us the opportunity to become part of this community and we hope to bring back value to you as well.

Happy renting!