If you are old enough, you remember these commercials. If you are younger, you have heard the question and maybe wonder what started this?
In property management, we have our own version of “where’s the beef” every time we take over a new portfolio. It is a game we spend a lot of time on and often with costly results for our owners.
What is the beef I am referring to? Simply… it is the tenant’s security deposit.
A security deposit should be collected to have some “beef” on the table every time a new lease is signed. For some reason, we find a lot of folks in our industry put a little patty on the big bun, if there is any beef on that bun at all.
So, we have a new client come to us. Usually, let’s face it, they are seeking new management because the old management is not working out. Or because the owner(s) tried to do it themselves and finally decided it is just too hard and time consuming. The lack of beef is when we get the new client’s rent ledgers. As our intake coordinator reviews the ledger, she scrolls to the beginning of the tenant’s occupancy. Let’s see… where is the security deposit?
Woooo… $300 on a $1000 a month lease? “Where’s the beef?”
Wooo..no entry for a security deposit. Could it be? No security deposit? “Where’s the beef?”
So we start a little behind with the tenant. They have very little skin in the game. And this was allowed by the former landlord from the time they said they wanted to move in.
Unfortunately, as often happens, the tenant stops paying or just disappears. Remember, no skin no feeling of obligation. No beef.
We get to be the bad guys to our new client. Dear Owner- we are sorry to report that your tenant disappeared and left about $500 in trash removal. There is little (or no) security deposit so these are going to bills to you in order to properly prepare to rent your property.
Oh, and by the way, when WILMOTH rents the property you can expect there will be a deposit.
How much? One month’s rent minimum. Sometimes even more. Even if the tenant violates and walks from their lease there is some “beef” on that bun.
This is just one of the things you can expect working with the TIGERS of property management. What does that mean? Our commitment is to always be a TIGER for our clients and their goals. That means all of our actions are based on:
Transparency | Integrity | Growth | Excellence | Respect | Service
Learn more about hiring the TIGERS of Indianapolis property management and read about the WILMOTH Group’s values, bred in 29 years of service to the residential investment community. Or get started now by requesting a free, no obligation consultation of how we might help you find the beef.