Getting the wrong tenant is very costly because it will cost in vacancy. Finding paying tenants is the foundation of a successful rental business. This isn't the time to cheap out on marketing, screening software, and more
Recorded: December 16, 2021
Kassandra Taggart, Alaska Real Estate Broker & Investor
Dave Stroh - KBYR Radio Show Host
The Landlord's Almanac
Sponsor the club
Book: Pain or Profit
THE PROPERTY MANAGEMENT SHOW
GOOD MORNING AND WELCOME...ID LIKE YOU TO MEET MY CO-H0ST FOR THE NEXT HOUR…. KASSANDRA TAGGART IS THE OWNER OF REAL PROPERTY MANAGEMENT LAST FRONTIER, THE PROPERTY MANAGEMENT COMPANY HERE IN ANCHORAGE… SHE IS ALSO THE PRESIDENT OF THE LANDLORDS ALMANAC, ONE OF THE LAST LARGEST LANDLORD CLUBS IN THE COUNTRY DEDICATED TO NETWORKING, SUPPORTING AND TRAINING PROFESSIONAL LANDLORDS AND SHE IS THE AUTHOR OF THE POPULAR BOOK PAIN OR PROFIT: SECRETS OF PROFITABLE RENTAL PROPERTY INVESTORS...SHE JOINS US FROM THE SAFETY OF HER HOME
OFFICE IN THE PICTURESQUE MAT SU VALLEY...GOOD MORNING Kassandra!…
Tenant qualification has been called an art and a skill that requires a combination of knowledge and experience. The how to the topic of our first conversation with Kassandra this morning>
Q. In the rental property industry, where does tenant qualification rank in order of importance?
A. The first most expensive is vacancy but secondary to that is definitely tenant screening.
Q. From your experience, if you get the tenant wrong, will the investor and the investment suffer for it?
A. When the tenant is a bad fit for the property, it causes a lot of problems. It can be causing lease violations, upset neighbors, create conflicts with associations, can even make fines by the police. Finding a qualified tenant that can pay and knowing that tenant is a fit for that unit is helpful. For example, tenants might want to store their snowmachine in the carport and the HOA doesn’t allow this. Now the conflict will start.
Q. These days do bad tenants outweigh the good ones?
A. Bad tenants are now several months to sometimes a few years of damage on the property, financials, and more. It is like a gift that keeps giving sometimes. If real estate was just the property, it would be super easy. Managing the people is the challenging part. As a result, we often forget to be appreciative of the good tenants.
Q. Is the industry seeing more destructive behavior from bad tenants?
A. If you compare from the 1990s vs 2020s the culture of the landlord/tenant relationship has changed greatly. It very much use to be a hand Shake deal or some verbal agreement and everyone is good to go. These days, landlords and tenants need a ton of training about the rules because the amount of misinformation out there is beyond insane. As a result, it causes people to react or make decisions that are against the rules causing frustrations to be pointed in the wrong direction.
Q. It used to be a landlords could use their intuition about renting to a tenant….are there systems in place in 2021 that remove intuition and inject pure hard facts about the potential tenant?(5)
Q. What are the attributes of a good leasing agent when it comes to qualifying the right tenants for a property?
Q. Is there such a thing as professional tenants who can scam their way into a rental property?
Q. What tactics would these bad actors use to secure a home?
Q. How does a property manager not stereotype?
Q. When you say you’ll run a credit check on a potential tenant, how extensive and through is that check?(10)
Q. What's the industry norm in the number of pay stubs a potential tenant is asked to provide?
Q. Are you as a property manager trying to reduce as much risk as possible in the very beginning before you rent to someone in the long term?
Q. Do Alaskans with a criminal background face a harsher judgment when they are trying to rent a property?
Q. What does the industry usually like to see from a former felon to influence their decision more favorably?
Q. Are there regulations that you and the tenant have to follow when they have deemed a registered sex offender? (15)
Q. When there is a registered sex offender in a rental property, whose responsibility is it to notify the building and the surrounding neighborhood?
Q. Has the rental industry established an information center or database that makes it possible to follow a potential tenant's behavior over the course of their personal history?
Q. If a tenant destroyed a property here in Alaska and they tried to rent in Washington state, would there be a good chance their actions would be red-flagged?
Q. What do you say about the first-time renter, the young adult under 21 who is eager to start their life with the responsibility of renting?
Q. How high are your standards for accepting and rejecting applicants? (20)
YOU'RE LISTENING TO CONVERSATIONS UNLIMITED ON 700AM KBYR...WITH CASSANDRA TAGGART OF REAL PROPERTY MANAGEMENT IN ANCHORAGE ...OUR CONVERSATION WILL ERIK CONTINUE AFTER THESE MESSAGES...
YOU'RE LISTENING TO CONVERSATIONS UNLIMITED ON 700AM KBYR WITH CASSANDRA TAGGART... OF REAL PROPERTY MANAGEMENT OF ANCHORAGE AND THE AUTHOR OF THE BOOK PAIN OR PROFIT: SECRETS OF PROFITABLE RENTAL PROPERTY INVESTORS... I'M DAVE STROH….
EVEN THE BEST LANDLORDS and even renters HAVE QUESTIONS AND WE ARE ASKING THEM FOR CASSANDRAS BEST ADVICE…
Q. Where do I find the landlord's almanac podcasts?
Q. Do you have any suggestions for a snowplow company for a 2 car driveway here in anchorage?…(shout out)
Q. What is your definition of a long-term investment in regards to an investment property?
Q. What is the rental market looking like for Southcentral as of today?
Q. Would you have any recommendations on websites to use for application intakes and background checks? (5)
Q. How does a 15-day belief of abandonment work?
Q. I am starting my search for an investment property but would like to get prequalified….what commercial lenders have the best rates right now?
Q. Do I have a responsibility to the rental property industry now that I've determined I have high-risk tenants in and on my property?
Q. What is a property manager's top priority when it comes to their clients?
Q. How much does a tenant balance need to be before I consider filing an eviction? (10)
Q. Is there such a thing as landlord rental insurance to guard against non-payment? (11)
YOU'RE LISTENING TO CONVERSATIONS UNLIMITED ON 700AM KBYR...WITH CASSANDRA TAGGART OF REAL PROPERTY MANAGEMENT IN ANCHORAGE ...OUR CONVERSATION WILL CONTINUE AFTER THESE MESSAGES...
YOU'RE LISTENING TO CONVERSATIONS UNLIMITED ON AM700 KBYR
WITH CASSANDRA TAGGART... THE PRESIDENT OF REAL PROPERTY MANAGEMENT OF ANCHORAGE AND THE AUTHOR OF THE BOOK PAIN OR PROFIT: SECRETS OF PROFITABLE RENTAL PROPERTY INVESTORS ....I'M DAVE STROH.
(Close the show questions)
Q. Of all the things that a person can do with their life…what makes you so passionate about property management?
Q. What are the most challenging difficulties you and your team at RPM frequently face?
Q. How do you face problems on daily basis and not let them affect your health from the stress of it all?
Q. What kind of company is RPM now after the last 20 months of having to deal with a global pandemic?
Q. Were you ever surprised by your team's ability to rise to the challenge of having the deal with the chaos created by covid?
Q. Does Alaska ever-present different challenges to property management that maybe property managers may not be presented within let's say the Pacific Northwest?
Q. What are your concerns about property management as we reach 2022?
Q. For those wanting a stress-free life and would prefer to turn the property management duties over to a professional company like RPM what's the number for them to call and who do they talk to?
Q. If someone wants to join the landlords club, where do they go to do that?
Q. Where can our listeners get your book pain or profit: secrets of profitable rental property investors? (10)
KASSANDRA, THANK YOU FOR YOUR KNOWLEDGE, YOUR PASSION AND YOUR GUIDANCE OVER THIS LAST HOUR..YOU ARE, AS I'M SURE OUR LISTENERS NOW KNOW, AN INVALUABLE RESOURCE AND EXPERIENCE. ADVISOR FOR THOSE WHO ARE INVESTING IN REAL ESTATE AND TAKING THEM. FIRST. STEPS TOWARD SUCCESS... KASSANDRA WILL JOIN US IN 2 WEEKS FOR ANOTHER CONVERSATION UNLIMITED...i'm DAVE STROH, HAVE A GOOD DAY