Enjoy your independence--5 tips to help smaller rental owners: NAA's Independent Rental Owners Committee Chair Jack Terrillion, NALP, offers sound advice for those smaller independent rental owner/managers wish to improve their bottom line.

Among the great things about being a smaller owner/manager is that you get to call your own shots. Time and money can be spent as you please and you don't give a hoot about being second-guessed by your "boss."

However, with that freedom comes the responsibility of making sure the business operates successfully. Choosing to read this article is an indication that you belong to an apartment association and that learning about the multifamily industry is critical in terms of reaching personal business objectives.

With that in mind, following are five important pieces of advice about how to attain and maintain success as an owner/manager of a smaller number of rental properties.

1 Use all available local apartment association resources. Your association provides professional development, proven forms for things such as leases, rental applications, pets addenda, etc. They are tailored to your market, and may be used with confidence. Your association includes many talented rental professionals who eat, breathe and live residential real estate rentals. The association likely will have an Independent Rental Owners Committee (IROC) whose focus is devoted exclusively to the needs of the smaller owner/manager--usually defined as those persons who own less than 50 or 100 apartment homes. Choosing to take on a leadership role within your local IROC is up to you. Meeting and networking with fellow IROC members is strongly recommended. Seldom will you walk away from an IROC meeting without taking a smart, good idea or strong piece of insight home with you.

2 Compare, compare, compare. A wise Chinese warrior once said, "Know your enemies as you know yourself." Not that the competitor is the enemy, but to help ensure that the resident prospect leases from you and not someone else, compare what your community offers inrelation to similar roperties. Look at rents, policies, amenities and appearance. Only then can you truly position your community perfectly in relation to the competition.

3 Collect a security deposit. The security deposit is the resident's guarantee to fulfill the lease. It should be a reasonable amount, not usurious. The deposit is generally refundable except if lease provisions are broken or there is damage in the unit above normal wear and tear. The deposit gives the small owner some assurance of lease compliance; is money back into the pocket of the good resident and cash to support your daily operating expenses (except in states where this money must be escrowed). Use care if considering deposit amounts based on creditworthiness--you may violate state, local or federal laws.

4 Do only those things you do best. Whether you like it or not, all functions necessary to managing a successful community must be performed. However, it is wise to hire contractors to perform the jobs that you either hate to do, or do not do well. For example, if you are fond of painting and have the right amount of skill, then paint. But for those who are not the world's greatest Michelangelo and who dislike mixing paint, then hire a contractor for any necessary painting.

5 Treat contractors like family. All too often, it is assumed the best way to get the results you want from a contractor is to mercilessly hammer them for tower prices and nitpick over every invoice. Your initial selection process should include confirming insurance coverage, discussing onsite conduct, use of utilities and checking references. Once the selection has been made, trust your key suppliers and contractors. Check on their work, but also pay them promptly. After all, they have spent their money for materials and their time is valuable. In an instance of going out of town, thus leaving your property in their hands, thank them for their support and present them with a small gift. This can work wonders. Keep in mind, residents come and go, but a good contractor is forever.

Jack Terrillion, NALP, is President of Terrillion Investments, Dallas, and serves as chair of NAA's Independent Rental Owners Committee. He can be reached at 972/991-1939.