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September 2009
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RENTAL PROPERTY MANAGEMENT DIVISION
How to Cope with Poor Economic Conditions in the Rental Market

During these tough economic times, it is more critical than ever that property owners look for ways to minimize the effects of a weak economy and a soft housing market.

Now more than ever the rental market is experiencing an ever rising vacancy rate and declining rental rates that are creating cash flow challenges for property owners.  The high number of available properties has created a fierce competition for qualified residents.

To meet the challenges of a soft market, we must turn to some of the basics that have proven effective in times such as these; marketing strategies that can give you an edge against your competitors.  You’ve probably heard the old adage “you only get one chance to make a first impression.”  This has never been more important than now.  Curb appeal of your property is key.   The lawn should be well cared for, the shrubs trimmed and the exterior of the home in good repair.  Skimping on minor repairs and cleaning could be the deciding factor for a prospective resident.  The Henderson Properties Maintenance Division can help ensure that your property’s first impression is a positive one.

Another basic consideration is competitive pricing.  With so many available properties out there, property owner and property manager must work together to make sure the property is priced in line with the market.  One way to remain competitive is to offer incentives.  Concessions such as half off the first months rent, flexible lease terms, reduced or waived application fees etc. can be very attractive to prospective residents.  Incentives can make your property more affordable to those who have been impacted by the slow economy. For example, dollars off the first month’s rent will reduce the amount of upfront money needed to make a move.  The current buzz phrase these days is “Some money is better than no money”.  When setting rental rates and deciding on what incentives to offer, consider the impact to the effective income of your property.   The loss of rental income may be less if you are willing to accept a lower monthly rental rate in order to lease the property sooner rather than allowing your property to remain vacant an extra month while trying to get that extra $50 in rent.

Your property manager is here to help you evaluate the best action for your property.  By getting back to the basics, being vigilant to changing market conditions and working together, we will be able to ride out the current economic storm while continuing to minimize your investment and maximize your cash flow.

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COMMUNITY ASSOCIATION DIVISION
HOA Board Meetings:  The Perfect Board Meeting

In our last two installments of the community association newsletter we’ve discussed how to plan the effective Board of Directors meeting and how to create an effective agenda for the meeting.  For copies of our previous 2 newsletters please check the Henderson Properties website.

In this installment we’ll give you some insights on how to run the perfect meeting with your Board of Directors.  All the planning in the world and the perfect agenda will mean nothing if you can’t use that planning and the agenda to run a smooth, productive Board meeting.  Here are some suggestions for putting your plan into action.

Start On Time: In order to stay on your agenda, especially if you’ve prepared a timed agenda, requires that the meeting begin promptly at the scheduled start time.  Delaying a meeting encourages members to be late and punishes those who were on time.

Stick To The Agenda: Stay focused on the desired outcomes by using your previously created agenda.  An agenda-particularly a timed one-can keep the meeting from getting bogged down on one issue.  If you’re using a timed agenda, stay on track by ending each item on the agenda by the specified time.

Have An Endpoint: To avoid unproductive tangents and circular discussions, establish an end time for the meeting in advance and adjourn the meeting when you reach it.

Preempt Debate: You can resolve non-controversial items through “general consent” or “unanimous consent”.  Under this method, the presiding officer asks, “Is there any objection to …?”   For example, “Is there any objection to ending debate on this item?”  If no one objects then the debate is closed.  If a member objects, you can resolve the matter with a motion and a vote.

Otherwise, you can use general consent to adopt reports and motions, approve minutes and end debate.  In fact, try to place a “consent agenda” near the start of the meeting that includes all non-controversial items, such as approval of the minutes from the previous meeting.  Any member can request that an item be removed from the consent agenda and placed on the regular agenda for consideration and vote.  The remaining consent agenda items are then unanimously approved as a group without discussion.

Manage Discussion: Discussion on an item on the agenda should only be allowed after a motion has been made to take action on the item and that motion has been seconded.  After both of those have been accomplished then each Board member should be given the opportunity to ask questions or make a statement about the item to be voted on.

The Board may also set the discussion time prior to addressing a potentially lengthy issue.  For example “Is there a motion to limit total debate to 10 minutes on this issue?”.  If this motion passes then the presiding officer should ask for speakers who have not spoken on the issue to address the Board first.

Alternate Pro and Con: After hearing from a Board member in favor of a motion the presiding officer can ask, “Is there anyone who wishes to speak against the motion?”  If no one wishes to speak on a particular side, for or against, ask for unanimous consent to end the discussion.

When discussion seems to have reached a point of diminishing returns, ask for a motion to end discussion:  “Is there a motion to close debate?”  Most parliamentary books allow debate to be closed with a two-thirds vote.

Encourage and Equalize Participation: Discussion at Board meetings is often monopolized by a single person, but several formal parliamentary rules are designed to prevent this.  For example, no one should speak a second time while there are Board members who wish to speak for the first time.  If you are following formal procedure-such as during a particularly controversial issue-once a member has spoken twice to a motion, he or she should be prevented from discussing that motion for the balance of the meeting.

Use Proper Procedures: The North Carolina statues covering homeowner associations and condominium associations states: “Except as otherwise provided in the Bylaws, meetings of the association and the executive Board shall be conducted in accordance with the most recent edition of Robert’s Rules of Order Newly Revised.

South Carolina statutes do not require the use of Robert’s Rules, however, proper procedure can help turn long, confrontational meetings into short, relatively painless ones.

Control Interruptions and Digressions: The presiding officer should acknowledge a tangential issue that has been raised by a fellow Board member but let the Board member know that it’s not relevant to the discussion and should be taken up later.  Similarly, the presiding officer should make an effort to keep other Board members from dominating the discussion.  The presiding officer may have to nicely state that because the Board member has already spoken, other opinions are needed on the issue.

Manage Conflict: During Board meetings, Board members should never get into an argument-or even direct discussion-with each other.  If a confrontation begins between two members, your presiding officer should remind everyone to address all remarks to the presiding officer and not at each other.

End On A Positive Note: You cannot thank your volunteers too often.  Thanking Board members for their time is not only gracious, but likely will result in greater enthusiasm for the association.  That in turn should lead to even better meetings.

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REAL ESTATE SALES DIVISION

Mecklenburg County boasted 998 home sales for July up from 922 in June.  While that may not seem like a lot, let’s go back to January and remind ourselves that the entire county only had 556 closings.  Wow, now we’re talking!  There are so many benefits to being a home buyer right now, I have a hard time keeping them all straight.  If you are a first time buyer and close on your new home by November 30, 2009, you can qualify for the $8,000 federal tax credit.  We are seeing our buyers get these big checks in their mailboxes as we speak.  That’s some serious money to forego if you are thinking about buying.  Our clients are using the cash to buy new furniture, appliances, and even paying off debt.  It’s your money to use however you’d like!

Think you can’t buy a house because you don’t have 20% down?  Think again.  We are working with local banks to get our buyers 100% financing!  There are even special programs for buyers to assist with down payment money, including closing costs.  The magic price right now is $100,000 in the Charlotte Metro area.  Yes, you can find a house for that price!  With so many foreclosures and short sales hitting our market every day, the options are limitless.

So you aren’t a first time buyer or don’t live in Charlotte?  It’s the perfect time to come to our market and buy properties for investment.  Our agents can send you selections that are currently on the market  and  tell you which homes will bring you cash.  We’ll even do if you just want to browse.  No problem!  We know how to analyze the market from an investor perspective and help you make educated decisions on where to put your money to work.  We have easy access to tell you what properties will rent for and can even find the resident for you.  What are you waiting for?

If you’d like more information or just want to ask a couple questions don’t hesitate to contact me, Kerry Stecher ABR, CSP,  at 704-544-0253 or kstecher@hendersonproperties.com

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PROPERTY MAINTENANCE DIVISION
Get Ready for Fall Maintenance

Fall is here and it’s time once again to prepare your home for winter. Henderson Properties Maintenance Division is here to help you get ready.

These are a few of the things we can do to help you prepare for winter:

Roofing: Check roof and around vents, skylights and chimneys for leaks.

Attics: If there is no ridge vent, keep gable vents open year-round to ensure proper ventilation. Gutters: Clean gutters and drain pipes so leaves won’t clog them and be sure they drain away from the house.

Exterior Plumbing: Drain outside faucets to prevent bursting in freezing temperatures

Fireplace: Clean fireplace of ashes. (Fall) Check chimney for loose or missing mortar. Have chimney professionally cleaned. Make sure damper closes tightly.

Filters: Remember to clean or replace HVAC filters once a month, or as needed. Check and clean dryer vent, air conditioner, range hood and room fans. Keep heating and cooling vents clean and free from furniture and draperies.

Safety Equipment: Ensure that all smoke detectors, carbon monoxide detectors and fire extinguishers are in good working order. Replace batteries in appropriate devices as needed, or at least twice each year.

Faucets: Check for leaky faucets in kitchen and bathroom(s). Replace washers as necessary. Windows and Doors: Seal drafty doors and windows. If you added up all of the small cracks where heating and cooling escapes from a home, it would be the same as having a window open. Replace seals as needed.

Siding and Painting: Look for cracks and holes in house siding or paint.

Heating System: (Fall) Have heating system serviced.

Hot Water Heater: (Fall) Drain hot water heater. Remove sediment from the bottom of the tank.

Landscaping: Prune trees and remove dead branches.

Our focus is to help increase the value of your home or investment property by keeping costs low with preventive Fall Maintenance for the winter season.  Our experienced staff of professional maintenance technicians can perform all of the preventative maintenance to your home to reduce your energy bills and prolong the life of your mechanical equipment.

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