What should a property inspection deliver? How does an investor know a major system failure is coming? Performance Asset Management (PAM) developed two reports: CapEx and IncomeEx. Built on 15 years of Wisconsin rental property experience, they answer both questions. This article covers what each report includes and what you walk away with within 48 hours.

While most walkthroughs can flag visible problems, PAM inspections go further than the average walkthrough. Instead of making general observations, we give investors organized data on future capital expenses, rent-ready costs, and income potential. These reports offer the kind of information needed to make strategic long-term decisions. 

The difference starts with how each inspection is structured. A walkthrough produces a rough estimate based on what's visible that day. A PAM inspection documents systems, materials, and replacement timelines. Learn more about our inspections, which can reduce uncertainty while encouraging smarter decisions.

Why Property Investors Need More Than a Walkthrough 

PAM performs two inspections: a CapEx inspection for capital expenses and an IncomeEx inspection for rent-readiness and income potential.

Some landlords focus primarily on rent and cash flow. However, investors benefit from a clear picture of upcoming capital expenses and the cost of preparing a property for the future.

A typical walkthrough might produce a rough estimate of costs or general observations. However, with PAM, the goal is to go beyond guesses or ballpark opinions. Investors receive organized data to help them make strategic decisions.

Property Inspection vs. Walkthrough: What’s the Difference? 

Investors often use the terms interchangeably, but they serve very different purposes:

• A walkthrough provides general observations based on visible conditions

• A property inspection documents systems, materials, and potential costs

• A walkthrough is often subjective

• An inspection is structured and data-driven

• A walkthrough helps you react to issues

• An inspection helps you plan for future expenses

To ensure investors have the knowledge they need, we offer two detailed reports:

• A CapEx report for capital expenditure analysis

• An IncomeEx report to support income and rent-readiness analysis

What is a CapEx report?

A CapEx report is a financial planning tool that estimates the cost and timing of major property replacements, such as roofs, furnaces, and windows.  When it comes to a furnace replacement, those can run between $3,000–$5,000 depending on the system. 

A CapEx report evaluates items that may require major repairs or replacement over time. It’s similar to an expense planner that helps anticipate high future costs. Our CapEx reports offer estimates for creating replacement timelines while providing a ballpark cost range for major systems. Furnace, roof, windows, siding, and major appliance repairs fall into this category.

Typical lifespan of major systems (estimates):

• Roof: 20–30 years

• Furnace: 15–20 years

• Water heater: 8–12 years

• Windows: 20–25 years

What is an IncomeEx report?

An IncomeEx report outlines the cost of improvements that increase rental income, such as flooring, finishes, and cosmetic upgrades. 

IncomeEx Reports focus on rent-readiness and income-related improvements to help investors understand what it would cost to improve the rental potential. Some examples include flooring, light fixtures, walls, ceilings, and kitchen finishes.

Carpeting is a feature that IncomeEx reports outline. For example, in Wisconsin markets, landlords drop the rental price of their unit by $100 to $150 per month, due to old carpeting, which tenants feel strongly about. This price drop can total to $1,200 to $1,800 annually, which could translate to $6,000 to $9,000 in lost revenue in just five years. 

How PAM's Inspections Go Further Than a Standard Walkthrough 

PAM’s inspection is more detailed and more strategic than a casual walkthrough or standard purchase inspection.

With any property inspection, the goal should be to help investors fully understand their expense exposure so they can make better long-term decisions. Real estate is a business, which means every property produces an income statement with income and expenses. Investors need to understand what expenses will drive that business, ideally before purchasing a property. 

During a typical walkthrough, a property owner would only get a rough estimate of future costs. However, PAM’s reports show specifically where resources will need to be invested and when. 

A PAM post-purchase inspection can identify issues and recommend further specialist review, much like consulting a health specialist for deeper analysis and clearer guidance. In both cases, the goal is more than identifying problems—investors access resources to help them make strategic, long-term business choices. 

The CapEx and IncomeEx reports help owners choose what to repair, replace, or upgrade based on their financial goals. 

What to Expect During a PAM Inspection, Start to Finish 

Once an investor signs with PAM, both the CapEx and IncomeEx reports are typically completed within the first 30 days. PAM gains access to the property and provides notice to residents when needed. Each inspection typically takes about 90 minutes to complete using the support of a Snap Inspect to document findings:

• The team records model and manufacturer information from major appliances and systems.

• That information is then researched to estimate age, provide repair guidance, and suggest when replacement timing is necessary.

• After the inspection, the report is reviewed internally for accuracy and completeness.

Investors typically receive the finished reports within 48 hours, as the inspection process is designed to be efficient, thorough, and easy for investors to use while also creating alignment between the property, the investor, and PAM.

What Investors Receive After a PAM Inspection — and How to Use It 

Investors walk away with two reports, supporting photos, and a clearer roadmap for making profitable property decisions.

After an inspection, PAM investors receive both the CapEx and IncomeEx reports. Investors receive photos of the systems, finishes, and conditions documented during the visit. Each report includes a summary page to simplify the information into a usable format. The final result is a clear picture of the property’s current condition and future expense exposure.

Investors may sell too soon, delay repairs, or make rushed decisions. This often happens when investors feel overwhelmed. Better information helps them replace emotion with planning. It can also save money by avoiding unnecessary short-term repairs before full replacement.

Investors don’t lose money because of one bad decision. They lose it through a series of unclear ones. A PAM inspection replaces that uncertainty with two structured reports, supporting photos, and a summary page delivered within 48 hours. Each report gives you a clear picture of what the property will cost to maintain and what it could earn — so you can plan repairs, protect income, and make confident long-term decisions.  If you’re evaluating a property or already own one, click to review a CapEx and an IncomeEx report with our owner to clarify your next move.

For investors who plan to own a rental property for 30 years, how many different residents do you expect? And  what impact does low renewal rates have on your returns over that time? Investors who fail to ask that question lose tens of thousands. Keep reading to get this answer and learn how to evaluate renewal rates when choosing the right property manager.

Jim Miller started Performance Asset Management (PAM) after being fed up with property managers as an investor. Property management companies were settling for only about half of the residents renewing. Common causes were poor maintenance, slow responses, and toxic relationships. Those low renewal numbers weren’t good enough then, and they aren’t today. 

In housing markets across the United States, renewal rates are reportedly around the mid-50% range. Leading operators perform within a range of 70% - 80%. PAM’s renewal performance is approximately 85 - 90%. These significantly higher numbers are because of our repeatable processes, transparent communication, and human follow-up.

Most property managers accept vacancies as inevitable. But empty rentals cost money—to the tune of thousands annually. At PAM, we’ve cracked the code. Treat our Wisconsin residents like valued customers to turn turnovers into renewals. Learn our approach to resident retention and repeat our success. Explore how to evaluate property managers based on their retention rates and why retention matters for every investor.

What Separates PAM as a Top-Performing Property Manager?

PAM’s renewal performance is about 85 - 90%. These significantly higher numbers are because of repeatable processes, transparent communication, and human follow-up.

Average property managers have issues with cultural toxicity and a lack of resident-focused processes. Top-performing property management companies do just the opposite. By prioritizing resident engagement and responsive maintenance workflows, PAM can retain residents over the long term. PAM achieves 85–90% renewals through:

Modern technology 

Faster maintenance response times and automated lease tracking translates to fewer residents feeling ignored. And that means fewer vacancies draining your returns. 

Digital rent collection and integrated property management systems can reduce operational burdens. Automated tools can help provide clarity, consistency, visibility, and timing. Technology helps ensure that important issues get attention and staffers can focus on resident engagement. 

For example, automated pricing recommends rent increases based on comparative data. Software like Rentvine and API integrations track lease expiration dates and trigger alerts in advance. Technology helps turn large amounts of information into clear, data-backed decisions. And this gives us time to evaluate whether a rent increase aligns with certain conditions. 

Culture of Accountability

When residents decide not to renew, PAM finds out why. Changing that decision saves investors roughly $5,000 on the spot. Our team takes pride in building strong relationships with residents and investors. Transparent communication and early intervention are key differentiators that guide our focus on resident satisfaction.

For every renewal request, residents can provide feedback or decline the renewal. Our team reaches out to understand why residents decide not to renew. And we work to find solutions that satisfy tenants and investors. Throughout the process, investors receive comparative market data and potential cost impacts of losing a resident to help them make informed decisions.

“Humanation” Approach

Property managers who only rely on automation are missing out. PAM combines technology with human outreach. A staffer who catches a frustrated tenant earle can prevent turnover costs before they happen. 

At PAM, we proactively address resident concerns in an attempt to avoid adversarial relationships that are common in the industry. Reaching out to speak with residents directly helps evoke empathy and understanding. And being available anytime creates openness. 

Processes combine expertise from staffers with industry-leading systems. We call our approach “humanation,” as it utilizes technology for support with tasks, timelines, and responsibilities. An example would be manual lease renewal systems. However, a staffer contacts unpaid residents after the fifth to confirm payment plans to solve operational and relationship problems. 

What Costs Do Investors Avoid with Higher Resident Retention?

Higher retention reduces turnover costs such as placement fees, rent-ready repairs, and lost rental income, which average about $2,000 - $5,000 per unit.

Once landlords consider vacancy loss, leasing fees, cleaning, and maintenance costs, turnover translates to losing thousands of potential net profit. On average, a turnover in Southeastern Wisconsin costs:

• Placement fee (one month’s rent): ~$1,500

• Vacancy loss (½ month average): ~$750

• Turn cleaning (market expectation): ~$400

• Maintenance and turnover repairs: ~$2,200

Total average cost per turnover: $4,850 — nearly $5,000 every time a resident leaves. These figures reflect PAM's internal data based on average turnover costs across our Southeastern Wisconsin portfolio. 

If an investor plans to hold onto a property for approximately 30 years to maximize returns, increasing the average renewal performance to an 85% - 90% renewal rate should improve short and long-term investment performance. Take a look at this cost breakdown: 

Over a 30-year hold:

• At a 50% renewal rate (industry average), you might turn a property ~15 times = $75,000 in turnover costs.

• At an 85 - 90% renewal rate, turnover frequency drops significantly. This can potentially save over $25,000 throughout the life of the asset.

Depending on turnover frequency, the savings range from $25,000 to $40,000 or more over the life of the asset — with $25,000 representing the conservative estimate. For investors with three or more properties, that savings compounds to $75,000 or more over the same period.

Beyond direct savings, fewer turnovers translate to increased, stable net monthly profit. It also means reduced operational volatility, which minimizes expensive surprises from last-minute leasing. The question isn't whether turnover costs money. It's whether your property manager is doing everything possible to prevent it.

How Should Investors Evaluate Renewal Rates When Choosing a Property Manager?

Investors in Southeastern Wisconsin should evaluate renewal rates by asking property managers for historical data and comparing it to industry averages, as high lease renewals indicate strong resident retention, stable net profit, and effective practices.

Property managers who prioritize lease renewals get a win-win. Residents stay happy and benefit. That means, investors seeking a property manager should ask for renewal rates. If a manager doesn’t know their rate, they’re likely closer to 50–60%.

Lease renewals are typically the largest rental expense and impact many other parts of the business. A strong process and awareness around it are critical for superior returns. Taking the time to evaluate renewal rates helps with predicting occupancy stability, net profit, and ROI. High renewal is a strong indicator of operational discipline and resident-focused culture. 

Many companies focus solely on automated workflows, while our team engages directly with residents to resolve concerns and create mutually beneficial outcomes. Our follow-up is unique because it’s proactive, personalized, and collaborative. Here’s a few questions and answers investors can use to spot potential managers with red flags:

Q: What is a good lease renewal rate for a property manager? 

A: Industry average is around 54%. Top performers reach 70–80%. PAM achieves 85–90%.

Q: How much does tenant turnover cost in Wisconsin? 

A: On average $4,850 per unit, including placement fees, vacancy loss, cleaning, and repairs.

Q: How do I know if my property manager has a good renewal rate? 

A: Ask them directly. If they don't know their rate, they're likely closer to 50–60%.

Q: When should a property manager start the lease renewal process? 

A: At least 120 days before the lease expires. Starting later leaves little time to retain residents who are on the fence.

Q: What is the long-term financial impact of high renewal rates? 

A: Over a 30-year hold, improving from 50% to 85–90% renewals can save an investor $25,000 or more per property.

Your Next Step to Better Resident Renewal Performance in Wisconsin

PAM delivers far above the industry standards in terms of achieving 85–90% lease renewals. This matters because high resident retention reduces costs associated with turnover while stabilizing cash flow and maximizing long-term returns. 

Investors with property managers should use this information to evaluate whether or not their company has high renewal rates. Additionally, ask about lease processes and resident engagement strategies. 

If you're not sure what your current property manager's renewal rate is, that's worth a conversation. Schedule a 15-minute call with Jim Miller to find out what PAM's renewal process could mean for your Southeast Wisconsin portfolio. 

When an experienced Wisconsin investor raised the rental price on his cottage too high, the place sat empty for two months. With a Comparative Market Analysis (CMA), he identified competitive trends and comparable properties. Within one week, his property received multiple applications. But without guidance, he risked continued vacancy, lost rent, and financial stress. 

This story highlights why strategic CMA reports are crucial for new and seasoned property investors. Two months of vacancies cost him income he could never recover. By chasing a price the data didn't support, he learned firsthand how quickly overpricing could erode annual returns.

At Performance Asset Management (PAM), we understand the financial consequences of unwanted vacancies in the southeastern Wisconsin rental market. We have reviewed thousands of CMAs with investors, providing them with a snapshot of rental income potential and trends. 

Property investors rely heavily on CMAs to set competitive rents, reduce vacancies, and make data-driven decisions. These reports go beyond the generic online rental tools to ensure realistic and profitable rental expectations. By the end of this article, you’ll know more about the insights these reports can yield and determine if working with a professional would help you. 

How Can CMAs Prevent Costly Property Investor Mistakes?

CMAs prevent costly mistakes like mispricing, over-improving, or ignoring local market trends. They provide investors with actionable, data-backed insights to protect rental income and avoid unnecessary property expenses.

Mispricing is a common financial error that investors make, resulting in vacancies, and even a one-month vacancy can outweigh net profits. If an investor overprices by $100/month, but it takes an extra month to lease, the lost rent outweighs the small premium. 

Even worse is when vacancies can lead to emotional decision-making, such as accepting unqualified tenants, creating a cascade of issues. A thoughtful, strategic CMA helps prevent these mistakes by identifying appropriate rent ranges, preventing underpricing or overpricing. 

For instance, for a three-bedroom duplex in Milwaukee's 53207 zip code, Wisconsin investment property pricing requires more than picking a number. If the CMA suggests a range of $1,595 – $1,795 per unit and an investor insists on the top range without considering comparable properties’ amenities, the unit could remain vacant for months. 

By combining software to track listings and detect when a property is “at risk,” a property manager can suggest price adjustments, preventing lost income. PAM's listing-at-risk software monitors weekly engagement metrics, including views, showing requests, and applications, automatically flagging properties that aren't gaining traction so price adjustments can be made before vacancy becomes costly.

Since duplex rental prices began flattening in August 2024, timing and accurate pricing have become even more critical for southeastern Wisconsin investors. Predictive CMA data also helps plan for seasonal slowdowns and market fluctuations. 

For instance, the April 1st rental window closes around tax day, and by mid-March, the market has already pivoted to May 1st rentals. Real-time updates are available to reduce financial risk caused by sudden rental market shifts. 

Data shows which property features influence tenant interest the most, protecting investors from making decisions based on intuition or assumptions. With a disciplined CMA process, a property manager can help investors manage rental vacancy risk in Wisconsin and avoid:

• Overpricing, which translates to vacancy loss

• Underpricing that can lead to lost revenue

• Over-improving tasks that waste capital

• Emotionally driven leasing decisions detracting from long-term goals

What Sets PAM's CMA Apart from Generic Manager Reports?

PAM’s CMA is more detailed and market-driven than generic CMAs, integrating real-time rental trends and predictive analytics. This ensures investors make smarter, faster, and data-backed decisions that pertain to the Southeastern Wisconsin rental market.

Here is a quick, side-by-side breakdown: 

• Generic CMAs pull data from public databases without context, may include comps from outside the relevant market area, and offer no follow-up 

• PAM's CMAs manually review comps for amenity matching, limit searches to a half-mile radius, include days-on-market performance data, and involve a two-step collaborative process with the investor

Additionally, most CMAs provide a snapshot of properties at a moment in time but fail to account for how renters filter by price, amenities, or location on platforms like Zillow or Apartments.com. In southeastern Wisconsin, Zillow is the primary platform driving renter search, with Apartments.com a close second. This means a listing's visibility and pricing on these platforms directly determine how quickly a unit gets rented. 

Our CMA process considers the renter’s search behavior to ensure pricing and features align with what the market is actually showcasing.

One of the biggest challenges with CMA reports in Milwaukee and southeastern Wisconsin is that most are built on the same mapping technology, which can sometimes produce inaccurate data. The key section to focus on is the comparative assets—specifically, whether the comps match the property in square footage, bedrooms and bathrooms, and the amenity package.

Amenities like off-street parking (slab versus garage), central air, in-unit laundry versus basement laundry, and pet policies can significantly impact rent. Outdoor features like green spaces, grilling areas, or fire pits matter to prospective residents. The CMA is a starting point. However, human review is critical to ensure accuracy and relevance to a specific marketplace.

What Should a Wisconsin Investor Do After Reviewing a CMA?

After reviewing a CMA, the most important question an investor can ask is whether their listing is generating showings — and if not, why not.

Wisconsin investors have the insights to determine next steps after gaining CMA insights. Whether it’s through reviewing weekly leasing activity to confirm that enough eyes are viewing the rental, or whether the price should be adjusted, and why. 

At PAM, the process doesn’t end with the CMA. Investors get weekly reports that offer information about eyeballs, showings, applications, cancellations, and comments from tenants. 

Renting involves emotional discipline that matters just as much as the data itself. 

When a property sits vacant longer than expected, the temptation to accept an unqualified tenant or make a reactive price decision can be strong. PAM's approach is to prepare investors for worst-case scenarios from the start — defining the floor before the property ever goes live — so that decisions are driven by strategy rather than stress.

Investors are advised to cross-check MLS listings with CMA insights before setting rental rates, in addition to leveraging property-specific details like amenities and unit upgrades to differentiate from competitors. Working with an experienced property management company is also helpful for ongoing market analysis and pricing adjustments. 

Ready to Maximize Your Wisconsin Rental Property Returns?

The CMA process at PAM gives Wisconsin investors a data-backed framework for pricing. It also supports reducing the risk of vacancies, along with making confident, disciplined decisions. Additionally, our CMAs can identify which property upgrades will yield the best ROI efficiently. Our data shows the impact of property improvements on potential rental income.

Because each month that a property sits vacant is income that generally cannot be recovered, a profitable rental requires discipline when it comes to pricing and market awareness. 

If you’ve ever worried about overpricing, long vacancies, or missing out on potential income, you’re not alone. These are common risks that can significantly impact your returns. Now that you understand how a well-executed CMA helps you avoid costly mistakes and make data-driven decisions, you’re better equipped to protect and grow your rental income.

If you want more accurate, market-driven insights tailored to your specific southeastern Wisconsin property, the next step is to explore how PAM’s CMA process works. Find out how our team can help you maximize your rental property’s performance. Reach out today to start making smarter, data-driven decisions for your rental portfolio.

Whether it's retiring to Mexico, funding a child’s college tuition, or creating stress-free income, strategic property investing can make those dreams come true. Achieving those examples requires a long-term strategy. But how do you know a good investment? Many Wisconsin property investors rely on simple numbers like rent and expenses to estimate rental property ROI. But those don’t tell the full story, unlike an Internal Rate of Return (IRR) Calculator. 

IRR is the annualized percentage return an investment generates across its entire holding period, factoring in every dollar that goes in and every dollar that comes out. Analyzing IRR helps with examining capital budgeting projects, like property ownership. It helps investors understand and compare potential rates of annual return over time. 

At Performance Asset Management (PAM), we use our IRR Calculator to do just that. We help our Southeastern Wisconsin investors learn how to use our IRR Calculator. After almost two decades of being in business, we’ve used the IRR Calculator to help hundreds of investors understand. In short, our IRR Calculator translates property calculations into actual strategies.

The IRR Calculator provides clarity in terms of long-term goals. Instead of narrowly focusing on short-term cash flow, investors can see a fuller picture in terms of property performance. Acclimate to our IRR Calculator to better understand the potential performance of your property over time. Then, fund your version of financial freedom.

How Wisconsin Rental Owners Can Build Long-Term Wealth 

An IRR Calculator helps Wisconsin property investors evaluate long-term returns by factoring in rental income, expenses, appreciation, and tax benefits, giving a complete picture of property performance. 

Southeastern Wisconsin — including Milwaukee, Waukesha County, and Racine — presents particularly strong conditions for long-term rental property investment. The region has a steady population base, consistent rental demand, and historically stable home appreciation rates make it well-suited for the kind of 20- to 30-year hold strategy that IRR analysis evaluates. 

Unlike volatile markets in larger coastal cities, Milwaukee-area properties tend to offer predictable cash flow with lower entry costs, meaning investors can achieve competitive long-term rental property returns without taking on outsized risk.

At its core, an IRR calculator answers one critical question: “Is this investment actually worth it over time?” An IRR calculator shows annual performance over a 20- or 30-year period. It helps investors visualize their goals and understand how decisions today impact their freedom tomorrow. Imagine if an investor owns a duplex with two fully rented units:

• It generates $36,000 a year in rental income.

• Expenses include $3,000 for maintenance, $2,000 for CapEx, 10% property management fees, plus taxes, insurance, and utilities.

• Traditional statements from a property manager or accountant typically only show income and expenses, not the full asset performance.

• The IRR Calculator evaluates how the property appreciates over time, factoring in equity growth and tax benefits.

For instance, out of $36,000 rent collected, $24,000 might go to mortgage payments, leaving equity buildup in the asset. The IRR Calculator tool shows: 

• Exactly how much cash is retained

• The amount of equity that grows

• Overall cash-on-cash return

• Tax impacts and potential depreciation benefits

For example, a duplex purchased for $200,000 with consistent rental income and 3% annual appreciation could yield an IRR of 11–13% over 20 years — significantly outperforming the 7% historical average stock market return.

The IRR calculator shows equity growth, cash-on-cash return, tax benefits, appreciation, and cash-on-cash returns. It provides a comprehensive view of performance and potential and reveals insights investors might have missed, such as how long-term ownership affects wealth-building goals. Investors can decide whether to hold, reinvest, or acquire additional properties with more confidence.

What Makes PAM's IRR Calculator Different for Wisconsin Investors?

PAM’s IRR Calculator helps investors customize assumptions for growth rates, ownership periods, and future strategies, offering a personalized financial roadmap.

While other online calculators may exist, they often lack customization or real estate specific insights. An IRR Calculator allows for an apples-to-apples comparison. 

This means that if an investor prioritizes hassle-free, low-turnover assets in strong markets, the IRR Calculator guides which properties fit that strategy. It also helps determine when to reinvest equity, evaluate multiple properties, and make data-driven decisions.

PAM’s IRR Calculator incorporates cash flow, expenses, appreciation, and tax benefits. It functions as one of the most comprehensive real estate investment analysis tools available to Wisconsin investors. It accounts for cost segregation and bonus depreciation, allowing investors to understand front-loaded depreciation, equity growth, and potential reinvestment opportunities. 

Because it is designed for investors looking to grow their portfolio, whether seasoned or newcomers, the tool is highly customizable. Investors can set ownership duration, growth rates, and other assumptions. We also review the results with our clients, while providing advisory support. The tool is user-friendly and doesn’t require inputs from PAM. Investors can enter data at their convenience and start exploring scenarios immediately.

How to Calculate IRR for Real Estate Investments in Wisconsin

Even if you don’t use our calculator, here’s the general process investors follow when calculating IRR:

• Access the IRR Calculator and enter your property’s purchase price and current monthly rental income into the designated fields

• Enter your estimated annual maintenance costs and capital expenditure reserves

• Let the calculator automatically integrate Wisconsin-specific tax data and insurance averages for a realistic performance outlook

• Adjust the ownership duration slider to see how holding your asset longer impacts total wealth

• Review our advanced algorithm, which processes your data to reveal a comprehensive internal rate of return

• Explore the breakdown of your equity growth alongside projected tax benefits and cash flow

• Compare these results against other potential acquisitions to identify the most profitable opportunities for growth

• Click the button to schedule a professional advisory session and let our team translate these mathematical insights into a winning strategy

Why Wisconsin Property Investors Trust PAM for IRR-Driven Investment Strategy

PAM’s IRR Calculator reflects the company’s commitment to transparency, long-term planning, and investor success in Wisconsin. By offering this tool, PAM shows dedication to aligning investment strategies with client goals and math-based insights.

While trying to earn stress-free income, many investors make emotionally driven decisions. They lack the math to guide them, later regretting selling properties too early. 

An IRR calculator provides a clear, objective picture of an asset’s long-term potential, helping investors decide when to buy or sell with confidence. It models income, expenses, appreciation, and equity growth over decades. Investors can compare assets side by side and understand which investments will perform best over the long term.

Other tools are available for measuring short-term investments and collecting rent. However, the IRR Calculator aligns investor objectives with actionable insights. PAM’s IRR Calculator is available to current and prospective investors to help build trust. This article explained the value of PAM’s IRR Calculator and how it offers investors a complete financial picture.

If you want to understand how your current properties are really performing or compare new investment opportunities, the next step is to run your numbers using an IRR calculator. Start with our free tool. Then reach out to our team for help interpreting the results and building a long-term strategy.

Investors seeking a property manager in Milwaukee have the right to be cautious. The right company can help avoid major problems. Common issues include hidden fees, tenant placement, maintenance, compliance risks, and long vacancies. Just one of these problems can lead to lost income.

Performance Asset Management (PAM) has worked with hundreds of clients. For over 15 years, we have supported our investors by expanding their portfolios. Landlords benefit from having clear processes for performance metrics, transparency, and innovation.

In this guide, you will compare the top Milwaukee property management companies. Understand how they differ. Learn how to choose the right fit for your investment strategy. Avoid misalignment and instead position your properties for long-term returns.

Full disclaimer: PAM is included in this list because we are proud of our work. We know we may not be the perfect fit for every investor. However, we want to help you find the right property manager in Milwaukee. That can be through another local company or us.

The following chart is a comparison of the top Milwaukee property management companies. It is based on portfolio size, specialization, investor profile, and offerings:

What Makes a Great Property Manager in Milwaukee?

The best property managers go beyond collecting rent. Instead, they protect and improve asset performance. These pillars are essential for rating property management companies within Milwaukee:

Fee transparency: If there is a charge, investors should understand it. Fees should be easy to find and just as easy to understand. That includes management fees, maintenance markups, and leasing costs.

Performance and process clarity: Each property management company has processes to protect investors. Look for defined leasing timelines, vacancy benchmarks, and communication cadences.

Resident experience and retention: High leasing renewal rates can highly impact turnovers. That means reliable systems and staffers who improve resident retention can save resources.

Maintenance and financial reporting: Investors need a clear plan to meet long-term goals. Tracking ROI and expense ratios helps managers prevent cost overruns. Solid reporting can also help landlords catch problems early.

Additional Supporting Criteria

• Financial reporting clarity and cadence

• Compliance alignment (Wisconsin landlord-tenant and fair housing)

• Strong online review footprint (Google Reviews, Yelp, and Better Business Bureau)

How Did We Rank the Best Milwaukee Property Management Companies?

Publicly accessible information and recently published owner insights helped us create this list. Each property management company has a website for investors to visit. They have public reviews, a verifiable service area, and a clear offering.

We listed the companies alphabetically. To support investors, we provided strengths, limitations, and pricing details for each company.

8 Best Property Management Companies in Milwaukee

Bartsch Management

Bartsch is a small, family-owned business. They have a long-standing presence in Metro Milwaukee, versus multiple states or regions.

Investor Fit:

• Small to mid-sized portfolio owners

• Investors who value direct, local relationships

Strengths: Works well with clients who prefer to avoid bureaucracy. Bartsch specializes in clients seeking a more personal interaction.

Limitations: BBB complaint records indicate occasional concerns related to billing clarity and communication.

Pricing: Their traditional fee structure generally consists of a monthly management fee. Leasing fees and maintenance-related costs are also included.

Elevated Real Estate Group

Elevated Real Estate Group is a small real estate team. This group focuses on short-term and mid-term rentals, particularly in higher-end segments.

Investor Fit:

• Short-term rental investors

• Owners navigating municipal regulations

Strengths: Well-suited for investors in Airbnb-style or flexible rent strategies. They work well with investors seeking compliance support.

Limitations: Online data from third-party sources is limited, especially from investors.

Pricing: They offer more customized or variable pricing. Customizations can be tied to occupancy, seasonal demand, or furnished rental management.

Mid-America Real Estate

Mid-America Real Estate operates mostly in the commercial and retail investment space.

Investor Fit:

• Commercial investors 

• Retail-focused portfolios

Strengths: The Wisconsin LLC is part of the Mid-America Real Estate Group. They have several affiliated companies in the Midwest. This group also has connections to retail chains and franchises.

Limitations: Being less relevant for many residential landlords makes comparisons challenging.

Pricing: Commercial pricing structures are often more complex. These structures can be tied to leasing commissions, asset value, or negotiated agreements.

Performance Asset Management (PAM)

Performance Asset Management (PAM) positions itself as an asset manager. Their model is to go beyond rental operations.

Investor Fit:

• Data-driven investors or owners scaling portfolios

• Investors focus on long-term ROI

Strengths: PAM tracks vacancy, renewal rates, and rent performance. Additionally, they provide structured financial reporting and portfolio optimization.

Limitations: Better Business Bureau (BBB) shows communication and maintenance concerns. However, PAM maintains formal processes for disputes and reporting systems.

Pricing: Generally, the pricing aligns with industry-standard pricing structures. There is a focus on minimizing hidden costs and improving overall portfolio performance.

Porch Light Property Management 

Porch Light has built a reputation for its boots-on-the-ground presence. This company offers a close-knit, owner-focused approach with investors.

Investor Fit:

• Small portfolio owners

• Hands-on landlords

Strengths: Their hands-on, boutique-style company works well with smaller portfolios. It helps them emphasize personal relationships over volume.

Limitations: Large-scale performance data is limited compared to higher-volume companies. It can be difficult to assess evidence of standardized systems, consistency, or scalability.

Pricing: Porch Light may offer more personalized or flexible pricing structures. However, that can vary depending on portfolio size and service needs.

Real Property Management (RPM)

Real Property Management operates one of the largest residential property management franchises nationwide. The Milwaukee operation is part of a regional cluster.

Investor Fit:

• Larger portfolios

• Property owners seeking standardized systems

Strengths: RPM operates as a franchise, so experiences vary. Review patterns often attract investors who want proven systems and management for rentals.

Limitations: Reviews vary depending on the office.

Pricing: Prices differ by location. However, most RPM offices stick to standard industry pricing. Property owners should confirm fee structures directly with the local office.

Residential Renters

Residential Renters began as a resident placement service but expanded into property management. Its core strength is in marketing properties and matching tenants with available units.

Investor Fit:

• DIY landlords who want to stay involved

• Investors seeking tenant placement support

Strengths: Ideal for investors seeking assistance with vacancies. Owners can maintain control over maintenance and financial choices without full-service management.

Limitations: Full-service management support appears relatively limited.

Pricing: Their leasing-focused model may result in more flexible or à la carte pricing. This may be particularly true for investors who only need tenant placement services.

Welcome Home Milwaukee

Welcome Home Milwaukee works well with buy-and-hold investors who acquire and renovate properties.

Investor Fit:

• Buy-and-hold property owners

• Value-add property owners

Strengths: Works well with investors in the early stages of acquiring a property. Often, those properties still need heavy renovations.

Limitations: Supports landlords who need help acquiring and setting up rentals. They work less with companies that want to sell properties quickly for a fast return.

Pricing: Involvement in acquisition and renovation-focused investing may influence how pricing is structured. Investors should expect customized pricing based on project scope.

Why Choosing the Right Property Manager Impacts Your ROI

This article showcases the best property management companies in Milwaukee. It aims to help property owners meet their investment needs.

Choosing the wrong property manager can lead to a host of problems. For example, misaligned long-term strategies and other issues result in lost income. So, we provided a thorough and unbiased review. The content compared management models and portfolio fit. Use this guide to help you decide which company aligns with your investment approach.

And for investors who need more information, start by accessing our data-driven approach. Use the IRR calculator below to understand your investment better.

Your next step is to compare management fee structures. Review service models to determine which company aligns with your investment strategy. Then, get a free portfolio performance analysis. Find out how your current property compares to Milwaukee benchmarks.

Do decisions regarding your rental happen through a laid-out process? Or is everything more of a gut reaction? And are you confident that your property manager is protecting your investment?

Unfortunately, investors face surprise vacancies, last-minute rent-ready bills, and tenants moving out unexpectedly. But the question landlords always ask us is, “What exactly do I get for a monthly fee?”

At Performance Asset Management (PAM), our costs buy performance, clarity, and fewer surprises. Our monthly management fees are 10% of the rent, with a maximum cap of $250. We only earn after successfully collecting rent. Additionally, the fee is waived if a property is vacant or non-paying. This model has been in place for almost two decades.

Property management value becomes evident when problems never become emergencies. This happens in large part because of predictable systems and reliable processes. If you’re considering working with a property management company, understand what you should be getting. Then, judge whether or not your manager is meeting your needs.

How Do Property Managers Screen Tenants in Wisconsin?

Professional property managers screen tenants using income checks, rental history, and fraud detection.

Resident placement is the foundation of property performance. Choosing quality residents can reduce turnover, vacancy, conflict, and financial instability. Ideal residents remain in a unit for about 36 months, pay on time, and contribute positively to the property and neighborhood. The right tenant is also a good neighbor. That quality alone can reduce conflict, driving performance.

Property managers who outperform go beyond typical resident placement standards. They treat screening and fit as long-term performance decisions. Poor resident placement can cost investors roughly $5,000 to $25,000 in losses, according to PAM data. Thorough placement decisions often include reviewing:

24-month rental payment history: Digitized time stamps verified by third-party services. This information can help investors assess whether a tenant is likely to pay rent on time.

Net income: Take-home pay offers a realistic view of financial health and rent affordability.

Bank account balance: Bank account balances provide insight into financial behavior. A healthy balance can indicate a tenant is more likely to pay

How Do Property Managers Reduce Vacancy and Improve Lease Renewals?

Property managers in Wisconsin help solve operational, financial, legal, and tenant-related problems. These issues directly impact rental income and long-term property performance.

Blending automated resources with intentional human oversight provides increased visibility. Managers with solid information in terms of lease renewals can reduce unwanted surprises. This works by protecting cash flow and creating a consistent income. It also reduces vacancy exposure and minimizes surprise move-outs.

For instance, at PAM, we went beyond industry-based automation systems that only work about 85–90% of the time. Most systems miss 10–15% of renewals, which leads to surprise vacancies. We built a system to eliminate that gap. That remaining 10–15% leads to late notices, surprise vacancies, and unnecessary rent-ready costs.

Late awareness leads to scrambled leasing, surprise vacancies, and rushed rent-ready projects. Instead, we adopted HubSpot to build a lease system. It combines automation and human oversight, which allows us to know:

• Who has and hasn’t renewed

• Who is moving out

• Why are they moving out

• When we need to market a property 90 days in advance of tenants leaving

What Results Should You Expect from a Property Manager?

Investors can expect improved cash flow stability, lower vacancy rates, stronger legal compliance, and clear performance reporting when working with a property manager.

A strong property manager improves income consistency. Investors get measurable value, beginning with clarity around expense exposure to financial risk.

For example, within 30 days, PAM runs two inspections to quantify risk. One inspection focuses on CapEx needs and long-term replacement planning. The other inspection targets income and expense drivers impacting monthly performance. When investors understand the math behind their property, they make stronger long-term decisions. Other measurable outcomes include:

• Proactively managing lease renewals

• Reducing late payments

• Enforcing rent collection policies

• Minimizing surprise vacancies

At times, residents may initially decline renewal. However, proactive communication and problem-solving can help. A property management team can convert multiple non-renewals into renewals. This avoids vacancy loss, rent-ready expenses, marketing costs, and leasing commissions. Those saved expenses directly improve cash flow.

In terms of staying compliant with Wisconsin landlord-tenant laws, at PAM, we retain two attorneys. Attorneys notify PAM about Wisconsin court decisions affecting lease language. Then, we adjust leases to avoid introducing new legal exposure for investors. Other benefits include:

• Conducting annual lease reviews

• Notifying us of court decisions impacting lease enforceability

• Advising on required updates

What Questions Do Investors Commonly Ask PAM? 

Q: How does PAM reduce vacancies? 

A: Through thorough tenant screening, proactive lease renewals, and early marketing of properties. This happens 90 days before move-outs. The result is that PAM minimizes vacancy risk and unexpected turnover.

Q: What makes PAM’s tenant screening process different? 

A: PAM checks 24 months of rent history, reviews net income, and examines bank accounts. The result is selecting qualified tenants who are likely to stay longer and pay on time.

Q: How does PAM handle late payments or delinquencies? 

A: Automated follow-ups begin after the fifth day of non-payment. This is paired with human oversight to ensure collections are consistent. This reduces delinquency drift and stabilizes monthly cash flow.

Q: Does PAM help with legal compliance in Wisconsin? 

A: Yes. PAM retains two attorneys who monitor Wisconsin court decisions. Specifically, they inform us when courts make decisions affecting leases. We get guidance on updates, ensuring investors remain compliant and stay protected.

Q: How transparent is the reporting? 

A: Investors receive clear, detailed financial and operational reports. The data highlights income, expenses, CapEx needs, and performance metrics. Overall, it helps investors make informed decisions without guesswork.

Q: Can PAM help turn potential non-renewals into lease renewals? 

A: Through proactive communication and problem-solving, PAM converts initial non-renewal decisions into renewals. This prevents vacancy loss and reduces rent-ready and marketing costs.

Q: How is PAM’s fee structured? 

A: PAM charges 10% of rent, capped at $250 per month, only earning after rent is collected. Fees are waived for vacant or non-paying properties, aligning incentives with investor success.

Is a Property Management Fee Worth It for Milwaukee Landlords?

Professional property management is worth it when it replaces uncertainty with structured systems. Relevant examples include proactive renewals, transparent reporting, strategic inspections, and consistent collections.

Southeastern Wisconsin landlords are encouraged to question their property management fees. Start by finding out if it translates to fewer surprises, clearer math, and stronger long-term performance. Managers should protect rental income while reducing risks. Examples include resident placement, lease renewals, compliance oversight, and structured collections.

The reason why this matters is simple. Rental success in Milwaukee and throughout Wisconsin is about consistency. Just one missed renewal, poorly screened tenant, or a compliance mistake can eliminate months of hard work and profit.

For investors unsure if a property management company is worth the monthly fee, stop and ask questions. Find out how your renewals are tracked, how vacancies are prevented, and how legal exposure is reduced. Regardless of which company you choose, the right manager should be able to clearly explain its processes. And they should provide clear performance metrics that point to results.

While based in Milwaukee, PAM specializes in serving Southeast Wisconsin. We build our model around transparency, accountability, and results. Investors don’t just pay a fee; they gain a system designed to protect and grow their portfolio. For more info, check our investor fee transparency table. See exactly what you pay and what you get. Or reach out with questions. 

A California investor wanted to raise the rent on his Milwaukee single-family home by $1,100—a price far above the automated rent estimate. Because the investor insisted it was special, we at Performance Asset Management (PAM) ran an analysis. After reviewing the finishes and confirming demand, we went with a test. It rented in under ten days. Do you want to know why?

In Southeastern Wisconsin real estate, landlords need clarity around rent potential. However, expertise often beats automation. In the example with the California investor, PAM acknowledged that the home had elevated finishes. It was located near a Medical College. Additionally, single-family units perform differently from multifamily units.

Most Wisconsin property investors appreciate DIY rent estimators. In short, these rent estimators are fast, easy, and convenient. Despite their accessibility, they simplify local rent dynamics, which can be quite complex. Take this opportunity to gain a better understanding of DIY tools. Then decide if working with a property management company outweighs the perceived benefits.

Why Are DIY Rent Estimators Popular with Wisconsin Property Investors?

Wisconsin investors seek quick clarity on income potential, particularly following significant rent growth in local markets. DIY estimators feel data-driven and empowering, even though they often simplify complex dynamics.

Property investors benefit from knowing how much rent their property could realistically command. Rapid rent increases in Wisconsin from 2017 to 2024 created a sense of urgency.

Investors were especially concerned with understanding marketing pricing. Online rent estimators offer readily available solutions. Additional reasons DIY rent estimators are so popular include:

• Answers are available, minus the time it takes to meet with property managers

• Increased control is accessible before acquisitions and lease renewal decisions

• Instant data can sound more enticing than a Comparative Market Analysis (CMA)

• Numbers-driven investors like the idea of “math-based” rent estimator platforms

• Speed of access is especially appealing in competitive markets like Milwaukee 

• Automation helps out-of-state investors who cannot physically visit properties

• Rough budgeting figures become available during early underwriting conversations

• Investors with small portfolios may view professional analysis as overly complex

DIY rent estimators have become increasingly popular mainly due to their perceived usefulness. There is an ease in simply entering an address into a field. Then, investors receive an automatic rent range in seconds. 

These tools show investors how the broader marketplace looks. Investors can better estimate how the broader marketplace operates. It is possible to get a quick evaluation on multiple potential investment properties. At times, this can reduce perceived friction.

Understand the value of rent estimators, which can fail to provide definitive answers. Instead, think of them as one data point. Their accuracy can and does diminish under real circumstances. 

How Accurate Are DIY Rent Estimators in Wisconsin?

National rent estimator platforms are typically about 60% to 75% accurate in Milwaukee, according to PAM data. The remaining gap often comes from neighborhood nuances, asset-type differences, and comp selection errors.

Within a complex market like Milwaukee, neighborhoods can shift dramatically every few blocks. Two nearby properties may show different demand patterns. This indicates that rental prices can be highly sensitive to location and specific assets. Rent estimators struggle to account for subtle block-by-block economic and demographic differences. 

Rent estimator algorithms work by expanding search boundaries. This happens when they fail to find enough comparable properties. DIY rent estimators can often mix up asset types. For example, comparing duplexes to large apartment buildings. However, those asset types rent at very different levels:

• A two-bedroom, one-bath duplex next to an eight-unit building may command $100–$500 more per unit, because it is 1,000 square feet with off-street parking. 

• Pricing the duplex based on the larger building’s data could lead to underpricing it, especially if the eight-unit apartment building has older units with outdated interiors.

In this example, rent estimators could also have trouble recognizing: 

• Interior finishes, such as upgraded kitchens or bathrooms

• Old carpeting versus new flooring, as in luxury vinyl plank 

• Deferred cosmetic upgrades that may not appear in inspection summaries

• Layout flow, lighting, or modern design appeal

Automated tools lack certain awareness. For instance, they struggle to understand how school districts affect the housing market. National rent estimators often overlook the impact that local employers have on a particular area.

For example, changes in hospitals or universities can lead to shifts in job demand. Automated rent tools can miss subtle but financially significant local differences. When this happens, a professional review becomes essential. 

What Does Overpriced Rent Actually Cost Milwaukee Landlords?

Relying solely on automated rent estimates can cause issues. Underpricing locks in reduced cash flow. Overpricing increases vacancy risk and turnover. Overpricing may also reduce the amount of showing volume, prolonging vacancy periods. Long vacancies lead to higher carrying costs, which include mortgage payments, taxes, and utility bills.

Even when overpriced properties find tenants, they may feel overcharged and vacate early. This creates a missed opportunity to secure a stable resident who could last for 36 months. Closing that window also impacts long-term profitability.

For example, consider an investor who uses a rent estimator to price a unit $150 above market value. That year, a landlord gained $1,800 in additional annual rent. While that may feel like a win: 

• Fewer qualified applicants apply

• The tenant who rents may later realize they’re paying more than similar units

• At lease renewal, they compare prices online and choose not to renew

Now there’s turnover, which can include costs from: 

1. Vacancy Loss

   • 1 month without rent

   • Example: $1,800–$2,000

2. Rent-Ready Expenses

   • Cleaning, painting, flooring touch-ups, repairs

   • Example: $800–$1,200

3. Leasing / Placement Costs

   • Marketing, showings, screening, and admin time

   • Example: $800–$1,200

Conservative total in losses:  $3,000–$3,600

How Do Professional Inspections and CMAs Improve Rent Pricing?

Professional inspections and CMAs combine automation with local human judgment. This filters out flawed data, evaluates conditions, and aligns pricing with investor goals.

Physically walking through a property reveals details that photos may miss. In-person inspections encourage more accurate classification of finishes as premium, par, or discount. Local CMAs focus on the market environment where the property is located. A review from a person eliminates comparison flaws pulled from poorly matched neighborhoods. 

A property management company that reviews CMAs internally can identify potential data distortions. Notes clarify issues where automation may have led to questionable data. Lease renewals are evaluated annually to adjust for changing market conditions.

Are DIY Rent Estimators Enough for Milwaukee Rental Properties?

DIY rent estimators provide a quick overview. At times, it lacks precision, particularly in densely populated areas such as Milwaukee. Algorithms often struggle to grasp the subtle differences between various blocks. In turn, accurate rent pricing avoids seemingly small errors that compound across time. 

Move beyond relying on automated rent estimates for final pricing decisions. Consider a locally reviewed CMA before listing or renewing your property. Have your property physically evaluated to determine details like finishes. Following these steps can help in evaluating your pricing strategy. 

PAM merges automation with guidance from local experts. Our goal is to refine rent pricing decisions. Every CMA undergoes internal review. We consider asset type, condition, and demand drivers before suggesting final pricing. Share your property address for a locally reviewed CMA today.

Two months can be all it takes to erase an entire year of profit on most rentals. Yet, investors still say, “Let’s just list it as-is and see what happens.” The lesson here is that investors sometimes underestimate the importance of that final polish to today’s renter. Failing to enhance your property can result in lower rents and increased vacancies, ultimately impacting profits.

At Performance Asset Management (PAM), we manage hundreds of investors and thousands of residents. They can attest that what looks acceptable to landlords can feel outdated to tenants. Seemingly small cosmetic issues signal neglect. However, cleanliness communicates professionalism and reliability almost immediately. 

Fifteen years ago, rental marketing relied on yard signs and word-of-mouth exposure. In today’s photo-driven space, tenants compare dozens of similar listings instantly. They use multiple online platforms, which means demand determines pricing power. Outdated finishes or poor presentation reduce clicks before showings ever happen.

A lack of activity eliminates critical market feedback during the initial listing window. But landlords who upgrade strategically protect both rent levels and long-term asset stability. Use this article to access the information you need. Learn to invest in specific rental upgrades that actually improve performance and avoid the ones that hurt returns. 

Why Do Investors Underestimate Property Renovations?

Investors underestimate property renovation costs because they rely on outdated rental standards and pre-2021 prices. They overlook today’s higher construction costs and the pressures of a digitally competitive rental market.

For almost a decade leading up to 2021, maintenance and renovation costs remained relatively stable. Investors became accustomed to certain price points. Since then, labor and material costs have increased significantly due to the following factors:

• Labor shortages and immigration shifts have increased contractor scarcity nationwide

• Tariffs and material sourcing changes increased costs across building supply chains

• Building material prices are now often unstable due to supply fluctuations

• Inflation permanently shifted baseline rent-ready project expenses upward

These factors have led to a sharp increase in baseline rent-ready project expenses. Investors comparing their current invoices to outdated benchmarks are doing themselves a disservice. 

Higher rents require accepting higher operating and preparation costs. Tenants have higher expectations due to the transparency that websites like Zillow provide. Now, the marketplace determines acceptable condition standards, as opposed to investor preferences. Adaptable investors outperform those who are resistant to changes in pricing and expectations.

How Do Holding Costs Quietly Erase Rental Profits?

Each month a property sits vacant, it adds fixed costs without earning income. The importance of this lies in the fact that most rental properties operate on thin profit margins.

In the Southeastern Wisconsin rental market, a single month of vacancy can cost an investor nearly 8.5% of their annual income. Two months without tenants can reduce projected annual revenue by 17%. Most rental profits rarely generate annual profits exceeding 17%. This means most investors experience negative cash flow after two months of missed rent. 

Vacant rentals still incur mortgage payments, property taxes, insurance, and utilities, which ultimately add up. Holding costs quietly accumulate while owners who list their “it’ll rent as-is” property on the market, waiting for the “right” tenant. Extended vacancies often guarantee a break-even or negative cash flow year.

Delayed leasing can compound financial pressure beyond a visible monthly rent gap. The real issue can stem from controllable, avoidable conditions that have little to do with incorrect pricing. Ignoring necessary updates can dramatically increase total losses. Investors often fail to realize how quickly a vacancy can negatively impact long-term returns.

When Does Skipping Renovations Cost More Than Upgrading?

When outdated conditions lead to extended vacancy, rent discounts, or weaker tenant demand in a competitive rental market, the cost of skipping renovations has exceeded the amount an investor would have spent performing strategic, rent-ready improvements.

Knowing the difference between rent-ready and move-in-ready is now essential. Applying that distinction is key to strong rental performance. Appliances and flooring have a significant impact on online engagement and the volume of showings. For example, a $5,000 update may prevent years of rent discounting and turnover instability: 

• Reducing the monthly rent of $250 results in an annual loss of $3,000.

• Over five years, discounting can result in a revenue loss of more than $15,000.

What Should Landlords Consider Before Listing to Maximize Rent?

• Carpeting looks outdated, as tenants prefer hardwood or luxury vinyl plank flooring

• Lack of appliances immediately reduces perceived rental value and competitiveness

• Absence of central air conditioning significantly weakens summer leasing demand

• No off-street parking limits interest, especially in dense areas of Milwaukee, Wisconsin

• Small bedrooms that cannot fit standard beds shrink the applicant pool

• Popcorn ceilings, dated blinds, and mismatched fixtures reduce showing activity

• Lingering pet hair and odors decrease applications before the price is discussed

Lower showing volume leads to weaker pricing power. However, a rental in higher demand lets landlords hold firm on strategic pricing decisions.

Stop Letting “As-Is” Cost You More by Avoiding Rental Vacancy 

If you’re an investor tempted to list your rental “as-is,” understand the real risks. Holding costs, extended vacancies, and rental discounts slowly erode projected returns. 

In competitive markets like Southeastern Wisconsin, failing to upgrade property can be costly. It’s often cheaper to make improvements than to ignore market standards.

Get ready for your next turnover by evaluating your unit. Think in terms of its potential to meet move-in-ready standards. 

Our team at PAM works with investors. We align their property conditions with market expectations. Our efforts can minimize vacancy and protect long-term returns. If you need support to ensure your rental is ready to compete, reach out. Access a data-driven assessment to ensure your property and profits are working together. 

Some landlords assume that carpet is okay until the listing has been on the market for more than a month. In Southeastern Wisconsin, carpets can quietly cost inventors between $100 to $150 per month in lost rent or up to $1,800 per year, simply because they reduce demand.

Tenants today expect a space that looks good online and better in person. Oftentimes, carpet fails to do either. If you’re an investor, learn to start pricing based on how the unit competes and treat flooring as a revenue decision, instead of a cosmetic preference.  

Working with thousands of residents at Performance Asset Management (PAM) has taught us that some tenants have negative experiences with carpet and tend to avoid it entirely, due to the belief that it’s old and dirty, even when it has been professionally cleaned with modern equipment. These renters can and will make flooring choices based solely on their emotions.

Once carpet is five years old, people believe it has absorbed years of foot traffic, pet activity, and spills. Digital shopping for rentals makes outdated finishes, such as carpeting, less desirable and more affordable. This can lead to fewer showings and applications, forcing landlords to cut prices.

It’s important to understand that renters aren’t putting a premium on other flooring—they’re putting a discount on carpet. If the price isn’t adjusted to reflect that, they simply move on. Continue reading to discover how much money investors lose because of these and other flooring mistakes.

Flooring Mistakes: How Much Rent Can Owners Lose?

While the market hardly rewards properties for LVP, it more so penalizes carpeting, which tends to require a monthly discount to lease quickly. In many Wisconsin markets, the discount ranges between $100 to $150 per month, totaling $1,200 to $1,800 annually. Over the course of five years, that same discount totals to $6,000 to $9,000 in lost revenue. 

Potential delays in attracting tenants increase the risk of vacancies beyond the financial gap in monthly rent payments. And the decreased demand reduces the quality of tenant selection and the overall stability of lease renewals. 

Renters want a stress-free living experience, as many no longer own vacuums. Hard flooring is easier to clean and maintain—that simplicity matters in everyday living.

What Common Flooring Mistakes in Rentals Hurt Investors the Most?

Some other common flooring mistakes include low-quality stick-and-peel vinyl, sheet linoleum, and attempting to refinish subfloor planks. These choices reduce tenant demand, weaken pricing power, and often force landlords to discount rent or absorb longer vacancy periods.

Refinishing Subfloor Planks

Refinishing subfloor planks can lead to uneven finishes. These boards were meant for support and often have issues. They usually vary in width, contain knots and gaps, and were never sanded flat. Plus, their spacing might be uneven.

Low-Quality Stick-and-Peel Vinyl

Similarly, low-quality stick-and-peel vinyl tiles rely on adhesive backing that weakens over time. In high-traffic rentals, edges curl, corners lift, and seams separate. This often happens because of moisture or temperature changes common in Wisconsin. This kind of floor also photographs poorly because it looks thin, glossy, and dated, reducing its perceived value. 

Large Sheet Vinyl

Sheet vinyl can bubble, tear, and separate over time. Even when only small areas are damaged, large sheet vinyl is difficult to repair and generally means replacing the entire floor. It can wear unevenly in high-traffic areas, leading to fading or discoloration. Over time, the damage can look visibly worn in listing photos, communicating a much older rental than might be the case. 

Why Do Tenants Avoid Carpeted Rentals?

Tenants associate carpet with cleanliness risk, wear, odors, and inconsistency. Rentals don’t share the shoes-off culture of owned homes, making carpet seem untrustworthy.

When it comes to carpeting, renters assume that different cleanliness standards have been applied over the years. Professional carpet cleaning is a short-term fix. Carpeting in general narrows the rental pool by removing a large segment of the market. Renters assume: 

• Multiple people have lived there

• Shoes were worn inside

• Pets may have been present

• Spills and odors are underneath the surface

Old or matted carpet creates a subconscious association with other issues. Tenants might ask what else needs updating and if systems are well-maintained. They may also wonder if this affects response times for emergencies. Even with updated appliances and newly upgraded fixtures, poor flooring undermines trust.

What Flooring Alternatives to Carpet Work Best in Rental Properties?

One of the most common flooring alternatives to carpet in rental properties is luxury vinyl plank (LVP), because it is durable, easy to clean, and more attractive to renters.

Within most markets, especially Southeastern Wisconsin, LVP flooring has reset renter expectations. Now that renters know that better-looking alternatives to carpeting exist in different design styles and color variations, examples of LVP flooring variations include: 

Regardless of the investor preference, switching from carpet to LVP can improve demand while protecting rent pricing. 

Should You Replace the Carpet During Your Next Turnover?

Flooring goes beyond aesthetics. It can lower revenue, increase vacancy risk, and reduce long-term lease stability. Holding on to outdated carpet can quietly cost thousands in lost rent while weakening tenant retention.

If you’re a property owner with rentals that have carpet, consider a replacement during your next turnover. At PAM, we provide a data-backed rental analysis that examines:

• How do your flooring and finishes compare to competing listings 

• Where your property may be losing demand or pricing power 

• What rent range can your unit realistically achieve in today’s market 

From there, we’ll walk you through specific recommendations. Learn whether replacing carpet would increase your earnings and by about how much. If it makes sense to move forward, we can help implement those improvements. Schedule a free evaluation to determine whether your flooring and your rent are working together.  

Chasing top-dollar prices for rentals can leave a landlord high and dry, but investors who earn high rental prices understand what the market rewards and ignores. Keep reading if you want to know just that—how to strategically price a rental without losing income to unwanted vacancy.

Although the top dollar amount depends on the investor, in practice, it’s the high end of the rent range. At Performance Asset Management, carefully supporting the needs of hundreds of investors throughout Southeastern Wisconsin has taught us that every property has an established rent range that is shaped by the local competition.

Continue reading to understand how to use the information from these tools. Better assess rental conditions and distinguish market realities from aspirations. Learn how to make the right property fixes and earn the most value from your rental.

What Factors Impact How Much an Investor Can Ask for Rent?

When a property stands out, it’s harder to find a perfect comparable. That factor alone can give an investor more room to push toward the higher end or slightly beyond the established rent range. 

In the Southeastern Wisconsin area, single-family homes are less standardized, in comparison to duplexes which are more likely to be identical and in the same building or neighborhood. More specifically, single family homes offer more pricing flexibility than duplexes because of: 

• Property size, yard, garage, and other layout features

• Specific location in proximity to employers, schools, and parks

• Finishes, such as updated kitchens, bathrooms, and overall design appeal

• A combination of the above three

Single-family renters in Wisconsin with higher incomes often want specific lifestyle features. They value things like a yard, privacy, and access to good schools. These renters are willing to pay more for the quality-of-life features they want. While these preferences allow for some pricing flexibility, the market ultimately sets the final rent cost.

Because fewer single-family homes are identical, investors can test pricing at the higher end of the range, when time allows. This is especially true when an investor has time before a vacancy. Kitchens and bathrooms have a more significant impact on rent than other rooms. This allows investors to try higher prices, but only market response shows if it works.

For example, in the Bay View area of Milwaukee, Wisconsin, duplex prices can vary. High prices depend on location and amenities. A two-bedroom duplex priced just $100 above similar units may take longer to rent. Potential tenants can easily compare prices and amenities using software like Zillow, Apartments.com, and Facebook Marketplace.

What Do Owners Miss When Aiming for the Maximum Rent?

Property owners often overlook the actual condition and how renters experience it compared to nearby options, relying on incomplete comparables and unrealistic pricing.

Property Condition 

Oftentimes, property conditions can be the first pricing gate. Renters judge them immediately. If the unit doesn’t meet today’s tenant expectations, the top end of the rent range is unrealistic. 

Tenants can be highly sensitive to major habitability issues. Examples include roof damage, plumbing failures, and electrical problems. Because these directly impact safety, functionality, and daily living conditions. Issues in these areas can lead to negative early impressions.

Marketplace Experience 

Marketplace experience is crucial because renters can quickly and easily compare a unit to alternatives. Current listings are only an online search away, allowing potential renters to view similar properties in real time.

Finishes 

Finishes offer some level of flexibility in terms of property owners being able to move pricing slightly without overriding market realities. They can shift rent by about $50 - $150, depending on quality. However, they lack the ability to override market limits.

With the right finishes, it is possible to determine whether a property is at the top, bottom, or middle range in terms of finishes, as these influence the perceived value of a space. Some of the more common finishes include: 

• Kitchen cabinet style

• Countertops

• Bathroom fixtures

• Flooring type (luxury vinyl plank vs. old carpeting)

• Lighting

• Paint color

• Trim and details

What’s the Difference Between Market and Aspirational Rent?

Market rent is what renters will pay based on real-time feedback and competition, while aspirational rent is what owners want. Over-asking risks vacancy and credibility.

Differentiating between market and aspirational rent ensures that investors understand marketplace feedback. Every investor hopes for aspirational rent. However, the market determines what renters are actually willing to pay. 

Aiming too high can translate to gambling with days on market and with the integrity of the listing. Listing high and quickly dropping the price to something more realistic can give pause. Renters may incorrectly assume that something is wrong with the space. 

In a market where scams exist and everyone is on the lookout, bad signals can quickly foster mistrust. The best strategy for investors is to set a credible initial price that earns and maintains trust. Potential pricing patterns are just as important as the presentation. 

In the same vein, initial mispricing of a listing can take weeks to recover, costing an investor a month or more in rent. Seasonality also matters, especially in Southeastern Wisconsin, where leasing slows during the cold winter months and picks up in the spring. Overpricing can be repaired with greater ease when demand is higher and the marketing is stronger. 

What Features Help a Rental Earn Top Dollar Before Listing?

Top-dollar rentals are earned when investors meet modern tenant expectations before the showing begins. Typically, the biggest drivers are radical cleanliness, functional basics, and minimizing or removing deal-breakers.

The factors that contribute to how much an investor can charge for rent may seem small, but potential tenants can interpret them as symptomatic of larger issues. 

Bedroom size can have a huge impact, immediately preventing a tenant from moving forward with renting. Typically, the space must have at least one bedroom that can reasonably accommodate a king or queen-size bed.

Carpet traps dirt and looks dated quickly, and more broadly, a bad layout or poor finish can signal lazy maintenance or upkeep. Lack of off-street parking can reduce demand and weaken rent potential. 

Modern working appliances are expected, as broken devices destroy trust during a showing. The basic appliance baseline includes a dishwasher, microwave, refrigerator, washer, and dryer. 

How Can Investors Price Strategically Without Losing Rent to Vacancy?

Our pricing strategies are informed by current data and competitive analysis, allowing us to create a clear plan that aligns with the timeline of each investor.

Earning top dollar for a rental depends on the position within the local rent range. Because marketing feedback determines sustainable pricing, investors are better able to list the rental within the rent range, considering the condition and presentation of the space. 

Overpricing can risk vacancy, cause damage to the credibility of the listing, and simply lose momentum. In the long term, stability and occupancy outperform short-lived premium pricing. While strategic testing can be useful, it should only be employed when time and data support adjustments. 

By using multiple Comparative Market Analysis (CMA) reports, tying pricing decisions to current rental inventory, and matching property attributes, we at PAM align pricing plans with asset strategies. For a rental analysis, provide your property address and get free insights on your investment. 

Imagine selling a property, only to find out 20 years later that it would have doubled or tripled in value. For investors, it often doesn’t take much—just a harsh winter in Southeastern Wisconsin and rising maintenance headaches—to make this costly mistake. But if you’re wondering whether to sell now or hold for the long-term, here’s how to make that decision with confidence.

Investors deciding whether to rent or sell should start by asking, why. Managing properties for thousands of investors for nearly two decades has taught us at Performance Asset Management (PAM) that the answer is often tied to financial freedom. Whether that’s retirement security, family flexibility, building funds for education, or providing for charities, it all depends. 

Clarifying the why helps investors better identify the temporary discomforts of stress, uncertainty, and responsibilities, allowing them to anchor decisions in hard data and market performance. Whether you decide to continue to rent or sell your property, keep reading for an unbiased comparison that will help you decide which approach is best for you. 

Full disclaimer: As a property management company, we acknowledge the potential for bias. Instead of advocating renting or selling, our goal is to present objective data and a framework to guide informed decisions. Because every investor has a unique situation, both options should be evaluated carefully before making a final choice.

How Should Investors Evaluate Rental Cash Flow Before Deciding to Rent or Sell?

Before deciding to rent or sell, investors should evaluate rental cash flow by measuring if that amount can reliably support their lifestyle, risk tolerance, and long-term goals.

Because over time, plans change, and life happens. Property investment is hardly an exception to that general rule of life. Investors considering whether to rent or sell should avoid only evaluating monthly rental cash flow and consider a broader financial approach.

Negative cash flow is hardly ideal, but it is usually manageable depending on lifestyle choices, such as income stability and expense structure. Use lifestyle math to combine earned income, living expenses, emergency reserves, and investment obligations into one realistic picture. This allows investors to anticipate potential cash flow pressures before they actually happen.

Factors like job changes, family concerns, or health problems can influence how well an investor handles financial ups and downs. With the CapEx formula, investors can better identify cash flow pressures. And by anticipating those expenses, they can react to them decisively, instead of emotionally responding to negative events that drain their cash flow.

Reviewing a CapEx Formula Timeline for Property Investors

For example, if an investor owns a small multifamily property where the rent covers the mortgage, the units are occupied, even though nothing feels urgent, major systems are aging: 

• A furnace that’s been running for decades can finally give out.

• The following year, an inspection reveals the roof is nearing the end of its life.

• Another year later, resurfacing the parking lot becomes unavoidable because deferred maintenance would be a liability.

• Around the same time, a plumbing failure happens, though small on its own, it turns out to be costly when combined with everything else.

  

  None of these expenses are unusual. In fact, they’re predictable. The problem isn’t the costs themselves—it’s encountering them back-to-back without a plan.

  That’s why experienced investors don’t look at capital expenses as one-off surprises. They map them out over time, estimate potential exposure, and decide in advance whether the property aligns with costs that may realistically occur over several years. Forecasting these kinds of factors early on can be crucial for achieving long-term growth and avoiding rushed decisions.

  

  What Helps Property Investors Decide Whether to Rent or Sell?

  Aligning long-term goals, cash flow needs, and risk tolerance with performance metrics such as IRR, CapEx timelines, and market conditions is typically the best strategy for investors deciding between holding or selling.

  The common investor mistake in terms of deciding whether to rent or sell is focusing on short-term gains by thinking, “If I sell, I’ll make $50,000,” without accounting for long-term opportunity costs. That fails to address how much that property could have earned over 20 or more years.

  Transaction Costs 

  Investors also underestimate transaction costs. Because real estate involves commissions, loan origination fees, title fees, and property upgrades, on purchase and sale combined, costs can approach around 10%. Thinking of property the same way a trader works with stock ignores realities.

  Taxes

  Taxes are another major, oftentimes misunderstood component of selling. Holding a property longer than 12 months typically shifts taxation from ordinary income rates to capital gains rates, though depreciation recapture and state taxes can still significantly affect net proceeds.

  Strategies like cost segregation and bonus depreciation can significantly affect monthly and annual cash flow, reinforcing how tax planning often shapes the decision to sell or hold.

  For investors focused on legacy planning, it’s also important to understand that real estate typically receives a step-up in cost basis at death, potentially allowing heirs to inherit the property at current market value and reduce or eliminate prior capital gains exposure.

  Market Conditions 

  While buying and selling frequently erodes returns due to commissions, financing fees, and closing costs, market conditions matter too. Markets in favor of sellers can materially increase exit value. Poorly performing properties, due to the asset or the neighborhood, benefit from objective evaluation.

  

  How Does an Investor’s Timeline Impact Renting vs. Selling?

  An investor’s timeline impacts whether renting or selling a property makes sense, with longer-term horizons often favoring holding for appreciation and stronger returns.

  Investors who use exit timelines to guide their strategies are often better equipped to handle the fluctuations in real estate performance over time, as longer horizons can help investors earn more from their initial investment because of the following reasons:

  Appreciation: The market value of a property typically increases over time, making it advantageous to hold onto an asset due to higher future sale prices.

  Debt paydown: Making mortgage payments decreases the loan balance, increasing ownership equity in the property.

  Compounding returns: Rental income and reinvested profits grow over time, generating even more wealth as gains build on previous gains.

  Internal Rate of Return (IRR) provides a more accurate long-term perspective than simple ROI, as issues with short-term cash flow look different when analyzed over two or more decades. Some investors underestimate how much property value can grow over time, focusing on short-term stress, which can lead to sacrificing long-term wealth creation.

  

  A Smarter Rent vs. Sell Strategy, Backed by PAM’s Investor Framework

  Choosing to rent or sell is rarely a simple decision. Finding the right answer depends on goals, timelines, lifestyle, and risk tolerance. Data-driven decisions and objective frameworks can reduce reactive decisions.

  At PAM, these decisions are guided by reports that reframe cash flow, appreciation, and equity growth over time, so investors can see the full financial picture and gain confidence in their decisions by understanding what they could potentially be giving up. 

  
  

Years ago, rent-ready meant the heating worked, and the roof didn't leak. Today, it involves competing against thousands of photos on Zillow, giving Southeastern Wisconsin residents access to dozens of comparable units in seconds. If your property fails to meet their standards, they move on, and every day the space sits vacant typically costs more than repairs. 

Depending on whether it’s a light or a heavy turnover, an investor could expect to pay between $2,000 to $15,000 to make sure their property is rent-ready. 

Since tenants evaluate properties in seconds before even thinking about stepping inside, the goal at Performance Asset Management (PAM) is to distinguish between rent-ready and move-in-ready, which focuses on detailed cleaning and presentation within 72 hours of tenants moving in. Move-in-ready is a separate final stage beyond basic rent-ready.

Being transparent about what rent-ready means affects trust, resident satisfaction, and long-term lease renewal probability. Investors who want to get the most returns from the efforts they put into making their properties rent-ready should continue reading to learn how to create strategic cost controls.

What Actually Drives Rent-Ready Costs for Property Investors?

Preparing a space to be rent-ready requires going beyond meeting the minimum legal standards. For property investors, it means the unit is meticulously crisp and clean with every functional component working properly. 

Because rental marketplace expectations have elevated, tenants viewing a space expect that it is safe and functional. For an investor, that means spending $2,000 to $15,000 to address the following issues: 

• Appliances are fully operational

• Plumbing is working properly

• Electrical outlets are safe

• Windows can open and close without any problems 

• No leaks, hazards, or deferred maintenance

Inside an average-sized unit in the Southeastern Wisconsin market, there can be over 100 functional touchpoints. That means a property is rent-ready when all of those potential issues meet marketplace expectations, instead of being up to par with habitability codes.

Resident Expectations 

Although rent-ready requirements are primarily about meeting baseline expectations, cosmetic improvements become necessary when they affect competitiveness. Some examples include aged carpeting in a market dominated by luxury vinyl plank, worn kitchens in a premium-priced segment, and antiquated fixtures that make the unit feel dated compared to nearby listings.

Investors pricing a property at a premium tier need to showcase finishes supporting that price range. Naturally, property owners targeting the middle-range tier must also make improvements that align with the marketplace. However, over-improving to exceed neighborhood standards often fails to produce proportional returns.

Labor-Driven Budgets 

Most rent-ready budgets are driven more by labor than materials, as labor typically accounts for roughly 75% of total turnover cost, and the other approximately 25% goes to materials, according to PAM data. Nearly every turnover includes painting and professional deep cleaning, with common recurring line items often including:

• Lock changes and rekeying 

• Furnace filter replacement 

• Dryer vent cleaning 

• Smoke and carbon monoxide detector updates

In older housing stock (common in southeastern Wisconsin), additional costs often include:

• Window adjustments or repairs

• Plumbing fixes (minor leaks, valves, caulking)

• Small electrical corrections

Issues that investors run into when making a unit rent-ready have less to do with underestimating cost and more to do with misunderstanding marketplace expectations. Five or ten years ago, clean enough was acceptable. This digital marketplace holds properties more accountable with high-resolution photos and comparison shopping, which has raised the bar.

New property owners are often surprised by the level of cleaning required to make a property rent-ready. More specifically, the standard of everything working perfectly, and the standardization of finishes in competitive markets. For these investors, the biggest surprise isn’t materials or labor—it’s the expectation gap.

What Are the Risks of Listing a Property Before It Is Rent-Ready?

Listing a property before it is rent-ready can create short-term visibility but long-term performance problems, such as extended days on the market, bad first impressions, pressure to reduce rent, attracting the wrong tenants, and increased turnover. 

A rental property being listed before it is rent-ready can suffer in terms of damage to its reputation and its perceived value. Online platforms are supported by algorithms that reward user engagement and penalize listings when they’re stagnant.

Pricing a unit incorrectly also creates skepticism from potential tenants who may assume the space may have defects because the space is lingering online. These factors can take away from the leverage a property owner has in terms of negotiation with tenants. 

Listing a unit when it is rent-ready helps investors maintain a high occupancy rate and protect rental income. Rent-ready completion and comparative market analysis are most effective when they work together. The speed of leasing relies heavily on workflow systems and automation, as the quality of construction alone cannot determine how long a property will be vacant.

How Should Investors Decide Which Improvements Actually Deliver Returns?

Back-to-back occupancy requires that investors precisely coordinate and execute various operations. Since residents typically form lasting impressions early in the rental process, showcasing a well-prepared unit helps build trust right away, which is directly linked to the likelihood of lease renewals.

Capital expenditures are unavoidable in real estate ownership. However, turnover expenses caused by poor execution are completely avoidable, as professional systems change the narrative. A rent-ready expense that initially may appear reactive can become a strategic cost control measure. 

What systems does PAM use when delivering rent-ready units?

Macro factors determine the overall rent range within a neighborhood, such as location and neighborhood quality, bedroom count and layout efficiency, parking availability, central air conditioning, pet policies, and amenities. 

Similarly, micro factors influence positioning within that established space. Kitchens and bathrooms provide strong differentiation between comparable units. Preparing properties must align with the tier strategy and data-driven comparables. To address rent-ready requirements, PAM implements a structured process:

1. Conduct a rent-ready inspection with photos and video.

2. Create a detailed scope of work.

3. Send the scope to three vendors for competitive bids.

4. Present the bid package to the owner for approval.

5. Perform a CMA to confirm optimal rent positioning post-completion.

How Can Investors Control Rent-Ready Costs?

Investors who follow structured rent-ready processes consistently reduce vacancy, control turnover costs, and protect long-term returns.

Being able to understand actual rent-ready standards helps investors avoid costly mistakes. Markets like Southeastern Wisconsin are competitive, which means that presentation, functionality, and timing directly impact leasing speed and rental income. 

Poor execution or misaligned expectations can cause an extended vacancy, which can be a major issue that drastically reduces investment performance. However, investors who rely on data can make acute decisions about repairs, upgrades, and rent positioning strategies. 

Taking steps to make strategic improvements, aligned with neighborhood standards, can maximize ROI, while avoiding over-improving to the point of diminished returns. The next step for investors is implementing a system that includes inspections, a work scope, bidding on vendors, and market analysis. 

Additionally, PAM maintains a 60-day lease renewal runway whenever possible. That allows time to test pricing strategy, position premium assets effectively, and avoid unforced vacancies. 

Process discipline controls cost. To learn how PAM can help improve your rent-ready process to make it more effective and efficient, fill out our form to schedule your free consultation. 

Some investors think of rent-ready and move-in-ready as the same, but tenants tend to feel differently. Rent-ready typically means a unit that meets basic legal and operational standards to be leased—plumbing works, safety systems are operational, and the property is clean enough to rent legally. Move-in-ready goes beyond that. And investors should know exactly how. 

At Performance Asset Management (PAM), move-in-ready means the unit is fully prepared for a tenant to enjoy immediately. Everything is clean, fully functional, and meets the expectations of today’s renters. Move-in-ready units create a stronger first impression and tend to attract tenants who are likely to stay longer and take better care of the property.

Properly preparing a unit helps tenants feel more satisfied, since residents increasingly expect landlords to meet their standards. Understanding the difference between rent-ready and move-in-ready helps investors increase their long-term returns. Learn to go the extra mile to ensure your space is move-in-ready to meet and exceed tenant expectations from day one.

Why Is It Important to Distinguish Between Rent-Ready and Move-In-Ready?

Rent-ready vs. move-in-ready standards affect property investment performance by influencing tenant satisfaction, lease renewals, maintenance costs, and long-term ROI.

Wisconsin rental laws state that rent-ready units must meet building codes, safety regulations, and habitability standards. Operationally, rent-ready might include functional appliances, working plumbing, and a clean, safe environment. Move-in-ready raises the bar in terms of cleanliness, fully functioning systems, and attention to tenant comfort.

Move-in-ready homes cost more upfront because property owners have to invest in cleanliness, minor upgrades, and attention to detail. However, tenant turnover is expensive. According to Apartments.com, the average turnover cost ranges from $1,000 to $5,000 per unit—often more when vacancy loss is included. 

By delivering a property in strong move-in condition and reducing early dissatisfaction, owners can lower the likelihood of costly turnovers and protect long-term ROI. By contrast, stopping at rent-ready standards may save money upfront but increases the risk of early dissatisfaction and preventable turnover.

Additionally, units prepared to a move-in-ready standard tend to generate fewer early maintenance requests and less tenant friction, reducing reactive management time. And that’s because rent-ready units often lead to repeat maintenance requests and tenant complaints, which consume valuable time and resources. 

Rent-ready spaces also run the risk of exposing residents to small problems immediately, such as cleanliness issues or deferred maintenance. Although minor at first, these issues can easily escalate into negative reviews, quicker turnover, or higher service costs. 

How can Rent-Ready vs. Move-In-Ready Affect Property Investments?

Oftentimes, investors think that meeting the minimum standards is enough when it comes to deciding between rent-ready and move-in-ready. Less than a decade ago, rent-ready aligned with what tenants expected. But tenant expectations have evolved, favoring move-in-ready. 

Investors can lock in a negative experience if a tenant expects a move-in-ready unit but only gets a rent-ready space. While everyone’s definition of “clean” differs, it’s important to present a property as if it’s been prepared for a particularly tidy renter.

How Should Investors Make a Rent-Ready Unit Move-In-Ready?

Property investors should decide between move-in-ready vs. rent-ready by evaluating market expectations, tenant demographics, and long-term return on investment.

Market expectations drive the distinction between move-in and rent-ready. In competitive areas, for example, in Milwaukee, Madison, and Green Bay rental markets, tenants typically demand move-in-ready units. In slower markets, the line between the two is less distinct. To meet tenant expectations, the best approach is to: 

Evolve as an investor: Move beyond past rent-ready practices, which are less likely to satisfy current tenant expectations, especially in competitive markets. 

Perform market assessments: Assess the current market value and competitor listings before upgrading, and continue to make assessments and improvements. 

Remove personal biases: Avoid letting personal opinions dictate property standards. Distinguish personal home preferences and expectations from tenant expectations to keep standards aligned and professional. 

Support the investment: Apply and invest upgrades that support higher rent, faster leasing, better tenants, higher renewals, and fewer turnovers. 

Never misrepresent: Use accurate photos, and apply an objective filter by asking yourself, “Would I want someone I care about living here?”

Measure emotional ROI: Consider sending surveys, reviews, or gaining feedback from residents directly, because tenants who feel respected will care for the property differently.

Avoid deferring: Postponing potential improvements rarely makes the issues more cost-effective. Instead, it is more likely to disrupt asset value.

Families, professionals, and tenants who value convenience and quality are more likely to expect move-in-ready standards. Younger renters may initially tolerate lower standards, often due to inexperience. However, that can change quickly, as today’s tenants have increased expectations for cleanliness, functionality, and modern amenities.

How Should Owners Reassess Standards Over Time?

Investors should regularly evaluate unit standards by gathering information from comparable units, analyzing resident feedback, turnover patterns, and maintenance requests to identify areas where improvements could boost satisfaction and retention.

The framework for reassessing move-in-ready standards is structured by market alignment. Investors need to focus on what tenants continue to expect in the area, the type of renter that works best, and their financial goals. 

Emotional alignment with tenants is just as important as financial alignment. Focusing on both creates environments that attract and retain great tenants while maximizing long-term ROI. Evolving to a move-in-ready policy that supports and encourages quality tenants and continues to reassess those standards is the right choice. For Wisconsin housing market data: 

Wisconsin Department of Administration:
DOA Population and Housing Unit Estimates

Wisconsin REALTORS Association:
Wisconsin REALTORS® Association: Wisconsin Housing Statistics

U.S. Census Bureau:
Census Bureau Data

Milwaukee Department of City Development:
Department of City Development - DCD

University of Wisconsin–Madison Applied Population Lab
University of Wisconsin–Madison: Demographic and Housing Trend Data

Rent-Ready vs. Move-In-Ready: How Can Wisconsin Investors Protect ROI?

Now that you understand that rent-ready satisfies legal requirements, while move-in-ready aligns with market expectations. It should be clear how this distinction directly impacts tenant satisfaction, efficient resources management, and long-term investments. 

Because turnover costs range from $1,000 to $5,000 each unit, not including vacancy losses, early dissatisfaction can cause friction from tenants in terms of negative reviews, conflicts over maintenance, and increased turnover. Preparing units involves proactive decisions to match tenant expectations to protect investments. 

If you are unsure whether your current standards are in line with the market, review comparable listings, vacancy trends, and local housing data via the links listed in the previous section. Then evaluate your units with an objective eye. 

The goal at PAM t is to help Investors across Southeast Wisconsin with meeting and exceeding tenant expectations using the lens of market data and tenant demands. If you need clarity on how your property compares in this current market, a professional evaluation can identify opportunities to make your unit move-in-ready, protecting your investment.

The biggest mistakes investors make with property managers don’t happen years later—they happen during onboarding. Because this is such a complex business, onboarding with a performance management company helps you account for the many moving parts, including federal, state, and local housing laws that have serious consequences.

At its core, onboarding at Performance Asset Management (PAM) is about alignment around communication, goals, and expectations. After 15 years of managing properties across different markets, our process includes a discussion about investment goals and motivations, assessing the condition of the property to identify disruptions to income while also highlighting maintenance needs, and discussing long-term objectives.

PAM uses onboarding to define the relationship with each investor, confirm that parties are aligned, and establish communication milestones, performance priorities, and expectations from the beginning, rather than discovering misalignment later. For investors seeking that level of transparency, learn what to look for during onboarding to best serve your investment.

By the end of this article, you’ll know what effective onboarding should include, what red flags to watch for, and how to determine whether a property manager is positioned to protect and grow your investment from day one. 

What Does the Onboarding Process at PAM Look Like?

Onboarding at PAM involves a structured kickoff call, property review, data collection, market analysis, rent-ready planning, and performance alignment to identify risks early, clarify expectations, and establish measurable performance benchmarks.

Here’s how that process takes shape in practice, beginning with the kickoff call:

A kickoff call to establish alignment
Clarifying goals, timelines, and expectations allows us to understand how each investor defines success while establishing communication preferences along with decision-making cadence.

Data collection and document setup
Covering lease details, tenant ledger, maintenance history, property documents, and access information reduces gaps that create delays, confusion, or compliance risks in the future.

A property review to identify immediate performance risks
Evaluating the property’s current condition identifies issues that could disrupt income, create resident complaints, or trigger emergency repairs. Here, we surface maintenance needs early and separate urgent items from planned upgrades.

Market positioning and rent strategy
Completing a Comparative Market Analysis confirms where the property should be priced and positioned based on real comps, instead of assumptions. This also ties the property’s condition and rent strategy together to reduce vacancy risk.

Rent-ready or stabilization plan
Outlining the timeline required to deliver a rent-ready and ultimately move-in-ready unit, which involves setting expectations for cleaning, repairs, vendor coordination, and target dates to avoid leasing delays.

Performance expectations and reporting setup
Establishing the benchmarks that matter beyond monthly rent, such as renewal strategy, maintenance planning, and long-term performance measures, gives investors access to how reporting works and upcoming metrics.

Execution handoff and ongoing communication cadence
Transitioning into day-to-day execution by providing the types of updates required for approval, setting expectations for investor awareness, and explaining how decisions will be handled going forward.

What Risks Does PAM Identify During Onboarding?

During onboarding, PAM identifies regulatory, financial, structural, and expectation-based risks that can undermine long-term investment performance.

Some of the risks that PAM identifies are tied directly to the property itself, while others stem from misaligned expectations and regulatory misunderstandings. Property-level risks that can impact future performance include: 

• Failing roofs 

• Foundation concerns 

• Aging mechanical systems 

• Deferred maintenance that must be addressed

• Location constraints that limit rent growth

• Zoning restrictions

While these issues are real, they’re also highly visible. The other risks that PAM typically encounters are informational, which relate to knowledge about industry matters. While not as obvious, these risks are just as important. 

The goal is to identify these issues early—before they lead to legal or financial problems and protect investors from these potential blind spots. Common informational problems include: 

Regulatory misunderstandings

A common example of regulations affecting investors is that federal fair housing laws prohibit denying occupancy based on the presence of properly documented emotional support animals. Other regulatory issues include requiring all applicants to have perfect credit or blanket bans on housing vouchers. All of those misunderstandings can expose an investor to draining legal risks.

Unrealistic expectations around cash flow

Most alignment issues arise when there’s a disconnect between long-term objectives and short-term cash flow assumptions. If those two things aren’t clearly understood and aligned, performance expectations can drift quickly. 

Lack of clarity around investor goals

Investor goals need to be defined during onboarding, as decisions can be made without the same standards for success in place. For instance, clarifying that the goal is long-term appreciation rather than simply expecting a monthly cash flow aids both parties in understanding performance frameworks. 

How to Tell If a Property Manager Is the Right Fit During Onboarding

Onboarding lets investors and property managers resolve issues upfront. Signs of alignment—or friction—throughout those early interactions are key. 

Below are recognizable signals that indicate strong alignment during onboarding:

1. Investor goals are explicit and measurable: performance benchmarks are established beyond monthly income, with acceptable variations to support long-term objectives. 

2. Performance is discussed in long terms: extending beyond short-term ROI to include long-term modeling, turnover, retention, and planned maintenance instead of reactive fixes, fostering an understanding of compounding performance.

3. Communication expectations are defined: clarity is provided in terms of which information requires action from the investor, and the proper channels to use for emergency and non-emergency issues are identified.

4. Inspection findings are discussed: inspection results are collaboratively reviewed, used for planning instead of assigning blame, and executed for the long-term strategy.

5. Realistic cash flow expectations are set: incorrect assumptions are adjusted based on hard data, trade-offs that occur between income and stability are identified, and the monthly cash flow is viewed as only one metric that doesn’t distort long-term decisions.

6. Property managers are engaging: conversations spark thoughtful questions from investors, and answers are followed up by thorough explanations—the process is a planning stage rather than an administrative hurdle.

7. Technology is aligned: expectations are met for investors from different backgrounds or comfort levels with systems, portals, and communication tools, which avoids friction.

Property management exists at the intersection of the investor-resident relationship, requiring a shared understanding. Income goals, maintenance planning, and communication expectations must be understood collectively. Goal achievement isn’t accidental—it’s the result of planning.

What Data Matters Most at the Beginning of Onboarding?

In the same way that inspections provide information about the foundation of a home, hard data and financial reports highlight parts of a long-term plan that may need attention. Our onboarding conversations are grounded in math, instead of assumptions, to build accountability. Specific data-related areas covered during onboarding include:

Investors are introduced to or become more familiar with a Comparative Market Analysis. This confirms that the price of the unit is the current market price, instead of vague assumptions based on a quick Zillow search of properties in the area. Reviewing this data also elaborates on the sustainability of income decisions.

Regarding expenses, inspection data, such as property condition reports, help identify immediate and future maintenance needs. Expenses can be thoughtfully planned and proactively addressed, reducing budgeting issues and protecting long-term value.

To help tie these elements together, IRR analysis evaluates how income, expenses, turnover, and reinvestment decisions interact over time. Unlike short-term ROI calculations, IRR analysis offers context for short-term fluctuations and helps investors influence long-term outcomes.

Additionally, our communication data clearly documents where to find information, what requires action, and what is shared for awareness. This clarity helps prevent confusion and keeps investors focused on decisions that impact performance.

How can PAM’s onboarding impact long-term property investments?

At PAM, the onboarding process addresses long-term performance issues by reporting hard data, clearly communicating, and defining how performance will be measured. 

This approach helps investors understand what success looks like over time by focusing on key factors such as resident retention and stable asset performance. We utilize strategic meetings and tools to foster a relationship based on alignment, rather than relying solely on an administrative checklist. 

If you’re evaluating a new property manager or considering a change, pay close attention to the onboarding process. The right partner will prioritize alignment, transparency, and long-term performance from day one. To learn more about PAM’s approach to investor onboarding and asset performance, explore our resources or start a conversation with our team.

Vacancy isn’t just a number on a spreadsheet—it’s a silent threat to property investors, if left unchecked. Though vacancy rates can make or break an investment, it’s often because they get mismanaged. The key is to go beyond just attempting to fill empty units by taking a proactive approach that may require more deliberate planning and discipline for the average investor. 

So, you just rented your investment property, and for one reason or another your property becomes vacant. At that moment, as an investor, you’re likely scared wondering how you are possibly going to find someone to rent your property, and after all, isn’t your property management company supposed to help with this? 

Performance Asset Management (PAM) actively manages vacancies, rather than passively measuring lost rent. For almost two decades, we’ve been applying data-driven strategies that maximize returns, minimize risks, and strengthen long-term performance. Vacancy is treated as an actively managed performance variable, instead of an unavoidable cost of ownership.

Taking on these responsibilities can be challenging for a lone investor. In this article, we break down the process of measuring and managing vacancies to help investors understand their impact on cash flow, asset stability, and long-term wealth. With that information, you can determine if a property manager is the best route for handling vacancies.

When Is Vacancy a Strategy Problem Versus a Market Reality?

A vacancy is a strategy problem when pricing, positioning, or execution decisions push the unit out of alignment with the market because of a decision made by an investor or property manager, as opposed to external market factors. 

In most stabilized rental markets, a prolonged vacancy is rarely random. It's usually caused by pricing, positioning, or execution misalignment. In other words, if the rent is too high compared to properties offering the same amenities, the vacancy isn’t due to market forces—it’s because of a deliberate pricing decision. 

A strategy-driven vacancy that can be corrected occurs when:

• Rent is priced too high in comparison to spaces with the same or very similar amenities 

• Exposure is weak, such as too few showings, a small number of applications, or poor online engagement from potential renters

• Delayed maintenance causing tenants to sign elsewhere, late renewal offers, or a lack of communication with residents 

A market-driven vacancy is outside of the control of an investor, such as: 

• A rental resident moves out to take on a mortgage and buy their own house

• Seasonal periods where renters are less active, such as winter months in Southeastern Wisconsin where temperatures drop below 0 degrees

• Demand shifts in the short term sparked by local employment, construction supply, or affordability pressure

How do vacancy risks affect investor planning and decisions?

In stabilized, functioning markets, vacancies driven by market factors tend to be short-lived and resolve within a relatively small window. In select micro-markets, disciplined price testing can validate demand, but prolonged vacancy more often reflects strategic misalignment rather than external market conditions. When vacancy risks start to increase, it’s important to focus on market activity by asking pertinent questions:

• Are we getting people to attend our showings? 

• Are people submitting a lower-than-average number of applications?

• How is digital engagement? 

The decision to adjust a price comes down to distinguishing between market-driven and strategy-driven vacancies. If activity is low, the problem usually points to pricing or marketing. After confirming that online advertisements are functioning and showings are accessible, adjustments can be made—usually price reductions—based on hyper-local market data.

If data shows strong engagement but slower leasing due to timing or seasonality, holding firm on price may be the best decision to protect returns. If engagement is weak, the issue is strategic, and the solution is more likely to be realigning pricing before vacancy erodes cash flow.

What Data Signals Help PAM Predict and Manage a Vacancy?

PAM predicts and manages vacancy by tracking leading data signals, not just days without rent.

This data-driven approach allows PAM to identify vacancy risk early, adjust strategy quickly, and protect long-term asset performance—especially in Southeastern Wisconsin and similar rental markets. At PAM, there are essentially two types of vacancies that need to be managed:

The first happens during the lease renewal process—if a resident doesn’t renew, we start a preemptive vacancy period to fill the unit before it officially becomes vacant. This usually starts about 60 days out, giving us time to list the unit, perform pricing tests, and generate showings.

The second occurs in units that are already vacant. Here, we monitor activity closely, analyzing applications, showings, and digital engagement. If activity is low, we evaluate pricing, the tech stack, and local micro-market conditions to determine why prospective residents aren’t engaging. For investors, this approach ensures we’re actively managing the risk of vacancy rather than passively measuring lost rent. 

Vacancy risk can often be forecasted when pricing deviates significantly from market value. For example, if a unit could rent for $1,500 but we attempt $1,800, the market signals the challenge immediately. This predictive insight allows investors to anticipate vacancies before they occur.

How does PAM communicate vacancy risk to investors?

Investors can react emotionally to vacancy, particularly when bills for expenses continue regardless of whether or not a tenant is paying rent. While newer investors tend to focus exclusively on cash flow, seasoned investors may take a more measured approach, weighing long-term performance versus short-term gains. 

Our role is to contextualize the numbers and show the broader financial picture. To do that, we educate investors about macro trends, such as affordability pressures or regional market shifts, and adjust expectations based on data. During transitional periods, we also monitor micro-market conditions closely to inform pricing and leasing strategy. 

How Should I Evaluate My Current Vacancy Strategy? 

Now that we’ve identified how property managers should help fill your vacant property, the next step is evaluating whether or not your current property manager is doing the job correctly or if you need additional support. 

The key takeaway for investors is that vacancy isn’t just lost rent, it’s lost income for you as an investor that can diminish long term investment potential. 

For support with reviewing your current vacancy strategy, schedule a free session with one of our advisors and learn To calculate how many days your unit can stay vacant before you start losing money, review our vacancy loss calculator for more information. If you’re ready for conversation with one of our experts schedule a session.

Imagine a landlord in Milwaukee, WI, leaving a lawnmower at their complex for tenants to use. Instead of a win-win situation for convenience, the investor gets hit with $250,000 in liability fees after a resident gets injured. A moment like this illustrates how you could benefit from a property management company stepping in beforehand to prevent a costly decision.

When a property management company evaluates costs, it involves showing investors how spending directly contributes to stronger returns. The weight of costs is measured in terms of immediate expense and their ability to protect or enhance a property's income over time. At Performance Asset Management (PAM), cost management support involves evaluating every fee and expense through a high-powered lens that keeps investors safe. 

While some property managers review costs solely on operational expenses, our strategic cost evaluation prevents unnecessary expenses that don’t add measurable value. 

By the end of this article, you will understand how PAM evaluates cost and decide whether this approach aligns with your investment strategy, ensuring every dollar spent actually works toward long-term investment wins.

Which Costs Does PAM Absorb vs. Pass On to Investors?

PAM absorbs costs tied to management performance but passes on operational expenses, such as lease renewals, maintenance, and management fees, for transparency.

By being clear about which costs are our responsibility versus those that investors take on, investors reap benefits when management can make proactive spending decisions rather than reactive ones. For example, as property managers, we cover these performance-related costs:

• Resident placement fees when a PAM-placed tenant vacates within the first 12 months

• Releasing costs tied to resident underperformance or improper placement

• Internal administrative costs related to correcting placement or management errors

While investors would pay for these operational and ownership-related:

• Lease renewal fees for residents who remain in place

• Monthly property management fees

• Routine and preventive maintenance expenses

• Rent-ready and turnover costs after a normal lease expiration

• Capital expenditures (CapEx) such as furnaces, roofs, or major system replacements

• Approved repairs and upgrades that protect asset health and long-term performance

This distinction shields investors from costs tied to underperformance while preventing unwanted surprises in investor statements. At the same time, this approach places an incentive on us to carefully select residents who will also perform well as residents. 

For example, if PAM signs a resident who decides to break their lease or needs to be removed within the first 12 months, we absorb the resident placement cost instead of charging the investor. While the investor may still need to pay a re-leasing fee, PAM treats early turnover as a performance issue, not a normal operating expense, and takes responsibility.

How Do Management Costs Affect Long-Term Investor Outcomes?

Management costs influence resident retention, vacancy rates, rent stability, and asset health, as strategic property management can reduce turnover and protect net operating income over time.

Over time, management costs can significantly impact a property investment. While fixed fees, such as management and placement fees, are predictable and relatively easy to plan for, the level of efficiency that investors use while navigating variable expenses generally has a more significant impact.

A high-performing property manager should reduce turnover and maintain a stable rental income. By managing expenses and allocating resources effectively, such as for preventative maintenance, investors can reduce costs related to frequent turnover and rent-ready expenses, thereby enhancing long-term returns.

Investors gain an advantage by reviewing expenses over the duration of lease terms rather than focusing on individual years. In the same vein, investors who focus on low fixed fees may miss a larger picture: variable cost management on overall ROI. Deciding to work with a property manager can offer protection from missed opportunities in terms of enhancing property value. 

How Can Investors Interpret Cost Increases Over Time?

Investors should interpret cost increases over time as a normal part of rental property ownership to ensure expenses protect long-term returns and rental income stability.

As property costs fluctuate over the life of an investment, tenant turnover and resident replacement will be the most significant drivers of cost increases. While aging properties may require higher maintenance expenses, strategic upgrades can help offset these costs. 

With inspections that are both CapEx and income-based, PAM can use data to anticipate future spending. Recurring costs can be lowered by making strategic replacements, such as selecting durable flooring instead of carpeting, and repairing or replacing essential systems like furnaces, roofs, and plumbing when necessary.

Harping on costs that spike in one year often yields a slanted view. However, analysing expenses across multiple lease teams helps provide a more accurate picture. Accurately documenting cost drivers aids in understanding fluctuations and planning for realistic ROI projections.

How does PAM maintain transparency and value for investors?

PAM maintains transparency and value for investors by clearly documenting all costs and explaining each expense, from maintenance to resident placement, to build trust and encourage informed investment decisions.

Documenting each cost ensures that investors understand the why behind each decision. Whether that involves preventing hundreds of thousands of dollars in liability issues from an investor-provided lawnmower to strategically managing resident placement and maintenance, PAM ensures that financial decisions safeguard investor returns. 

Other examples include evaluating whether to repair or replace a furnace based on a cost-benefit analysis and future repairs. Proactive cost management and analysis align with resident satisfaction by prioritizing tenant-focused decisions, stabilizing leases, and minimizing turnover. 

In Wisconsin and other Midwest markets, property management costs for turnover and maintenance vary seasonally, and PAM uses data from these regions to optimize returns. 

PAM’s Cost Philosophy: Predicting Long-Term Performance

Understanding how PAM evaluates costs gives you a clearer view of how strategic spending protects resident retention, liability protection, and long-term asset performance. If you’ve ever questioned whether or not management fees, turnover costs, or maintenance decisions are in line with your returns, you’re asking the right questions.

For even more information, explore our content on investor onboarding at PAM. Find out how cost alignment begins before the actual property management even starts. To evaluate your current cost structure, let us review your expenses to determine whether they’re supporting your goals or taking away from the future you want to create.

When pipes burst this winter in a 36-unit building in Milwaukee, Wisconsin, and 53 people had to be evacuated due to heat and water failure, local news organizations referred to the landlord as “notorious” for being sued by the Department of Justice. The lesson? Maintenance isn’t a box to check off—it’s the foundation of property management, and tackling it is critical for investors. 

Maintenance involves more than just repairs. It means responding to requests, monitoring property health, and finding solutions to minimize problems. After over 15 years of experience in this industry, Performance Asset Management (PAM) views maintenance as the space where resident experience, asset protection, liability control, and financial performance intersect.

Keep reading to learn how to treat maintenance as a critical component of long-term asset protection that must be achieved through proactive, performative decisions, selecting and vetting appropriate support, and properly balancing costs. Investors can then replicate these maintenance practices in their own spaces or better evaluate property management companies.

How Should Investors Approach Maintenance for a Property?

Maintenance for a property depends on discovery, troubleshooting, and problem-solving, which demands taking a proactive approach.

In terms of a property investment, maintenance involves the responsibility for the overall health of the home. Most houses are designed to require minimal upkeep, particularly for elements like roofs, siding, windows, furnaces, and foundations. However, certain repairs, such as leaks or structural damage, must be addressed immediately as they can lead to further damage.

Proper maintenance safeguards residents and property owners from liability at the local, state, and federal levels, while also protecting the reputation of the property. On the other hand, neglecting maintenance can negatively affect property value, financial performance, and the overall experience of residents. In short, the quality and effectiveness of a maintenance program have a direct impact on the asset itself and the performance of investors.

Reactive repairs that lack a structured approach often lead to unnecessary costs. For example, without a system, such as a tenant portal, where residents can provide information about the maintenance issue and answer a few short questions before submitting a request, a property owner might send a technician to the home simply to change a thermostat battery. 

At PAM, the approach to maintenance is handling it with immediate action, which we call “urgency and now.” Though the team acts fast, part of our goal is to ensure we have the information needed to make the most efficient and effective decision. Competent maintenance benefits both residents and investors, while poor maintenance hurts everyone involved. If we correctly identify the issue, we can send the right person for the job. 

How Does Performance Asset Management Select and Vet Property Maintenance Vendors?

PAM selects and vets maintenance vendors based on reliability, diagnostic skill, and consistency—not just cost.

When it comes to finding maintenance in a market brimming with options like Milwaukee, Wisconsin, it’s important to remain open to recommendations for new vendors. A preferred method is referrals from our vendor co-op. Existing vendors understand our standards and only recommend other high-quality contractors.

Another method is active scouting. For instance, taking a visit to Home Depot early in the morning, looking for small, organized contractors who are well-prepared and professional, while adhering to the following standards:

• Licensed and insured

• Experienced in their trade

• Communicative and respectful

When onboarding vendors, we ask specific questions, such as for examples of previous jobs, and discuss their fees to identify contractors who align with our standards. The goal is to find vendors who are skilled, available, and honest about their limits to provide top-tier work without overspending. Once those qualifications are met, we evaluate them based on:

• Response time and availability

• Quality of finished products

• Pricing alignment with projections

If a vendor meets these criteria and performs consistently, they keep working with PAM. Regardless of which method brought the vendor to our attention, we continuously review their performance, cost, timeliness, work quality, and feedback from residents. Most maintenance on our Southeast Wisconsin-based properties can be handled by a highly skilled, organized generalist, while more expensive specialists are used only when necessary.

How does PAM balance cost control with quality workmanship?

PAM treats workmanship as a performance lever directly affecting turnover, capital expenses, and long-term value. 

Everyone wants low-cost options, especially with inflation. Negotiating discounts through our Milwaukee-based vendor co-op often saves 20-40% compared to other standard market rates. However, the cheapest solution isn’t always the best. There’s a “right way” to fix a problem, and the goal is to find the most cost-effective solution without compromising quality. 

Using unlicensed or inexperienced contractors may seem cheaper but can create risks, lack warranties, and ultimately cost more in the long run—too many investors learn this the hard way. Other lessons for balancing cost with quality include: 

• Base decisions on durability, instead of quick fixes

• Diagnose the problem before pricing the work 

• Continue to evaluate vendors based on measured outcomes

• Perform preventive maintenance to reduce emergency spending

• Include long-term investor impact in cost discussions

How Should Investors Evaluate a Property Maintenance Approach?

Base the evaluation on outcomes over time, instead of isolated repair costs or one-off response times, and review the overall maintenance strategy.

In terms of metrics for evaluating a maintenance approach, resident turnover rates, annual maintenance as a percentage of gross rent (adjusted for asset age/location), the number of days to complete work orders, and vendor performance are solid metrics to support a thorough analysis. 

For property owners considering self-managing the maintenance process, the lowest-priced vendors can cause trouble in both the short and long term. Additionally, vendors who lack organization, an on-call team, or have poor emergency response planning are all red flags.

Rather than viewing maintenance as a line item to minimize, PAM treats it as a performance lever that directly affects turnover, capital expenses, and long-term asset value. PAM controls costs by eliminating waste, repeating work, and avoiding unnecessary emergencies—while maintaining high workmanship standards that protect assets and stabilize returns.

The maintenance expectations for investors working with PAM include that all non-emergency maintenance over $500 are communicated for approval, and emergency issues are resolved promptly, prioritizing resident safety. Ultimately, efficient maintenance drives lower turnover, enhances financial performance, and supports long-term asset preservation. 

Share your investment goals to discover your property maintenance options if you’re located in Southeast Wisconsin and are serious about your investment. Let us help create a more strategic approach to help maximize your returns.   

The Amazon Effect has increased consumer expectations, forcing business owners to respond quicker than ever before, and property ownership is a prime example. Due to the availability of communication methods like texts, emails, and social media, landlords are expected to take action without delay while complying with legal statutes. As a result, finding the right ways to communicate with residents has become a significant challenge for investors.

For the past 15 years, Property Asset Management (PAM) has operated at the intersection of human behavior, legal compliance, and mechanical systems. We provide comprehensive and competent solutions to serve investors and residents, rather than promising instant answers.

Achieving this requires incorporating tools that facilitate the communication process, setting realistic expectations, and meeting contractual agreements by promptly responding to emergency requests and addressing complex long-term investment questions. 

Take a close look at how PAM structures and executes its communication process. Learn how PAM structures resident and investor communication, what response standards matter most, and how to evaluate whether your current property manager’s communication practices protect your assets.

Managing Resident Communication vs. Responding with Speed

Almost by design, communication in the residential property management industry is complex. In both emergency and non-emergency situations, residents and investors benefit from property managers with clear response plans who are prepared to reduce damages and protect tenants. 

Online portals are a convenient way for residents to report issues, improving overall tenant communications, as the system categorizes them by urgency. Residents can report emergencies at any time and expect same-day action. 

Investors are notified through the portal when emergency work orders are opened and again when they are resolved, supporting transparent property management reporting.

For example, within the Southeastern Wisconsin area, where temperatures drop to subzero temperatures during the winter, burst or frozen pipes are a major concern that requires rapid response. Since some situations require a same-day response while others mean postponing until set business hours, an effective communication policy prioritizes categorizing issues. 

What is the Communication Policy at Performance Asset Management?

PAM’s communication policy prioritizes competence, clarity, and risk management over constant availability for investors and residents across Southeastern Wisconsin.

Emergencies that impact resident safety, property integrity, or legal compliance are addressed immediately. Staffers are available 24 hours a day, seven days a week, to respond to emergency requests, even if proof of investor approval isn’t required or feasible. 

Residents can report emergencies at any time and should expect a same-day response. Investors are notified via the portal when emergency work orders are opened and again when they are resolved. A list of emergency issues where we provide same-day response:

• No heat in winter

• Frozen or burst pipes

• Active water leaks

• Electrical hazards

• Lockouts that prevent access to the unit

• Situations involving personal safety

Non-emergency requests are handled during normal business hours. The goal is same-business-day acknowledgment, but answers are not rushed, and investors receive information they can rely on. Our goal is to resolve these issues in one to two business days, as additional review or third-party input may be needed. Common non-emergencies include:

• Routine maintenance requests

• Financial or accounting questions

• Lease interpretation or compliance questions

• Security deposits concerns

• Monthly statements and reports

• CapEx planning and budgeting

How Resident and Investor Communication Evolved at PAM

Setting clear expectations for investor and resident communications requires delivering competent responses rather than overpromising immediate answers. This strategy establishes a consistent and reliable tone while addressing the need for quick responses.

An example of our effort to avoid unnecessary industry trends is our move away from property management software. Because those platforms were built primarily for accounting and operations, instead of communication, visibility, and control, they caused various pain points. 

The main problem was fragmentation, as traditional property management software often relies on multiple phone numbers, inboxes, portals, and message threads. The tools struggled to communicate effectively, resulting in numerous channels to monitor, inconsistent visibility, and loss of information.

It was difficult to discern who was reaching out, when contact was attempted, what channel was used, and what had actually been said. PAM moved to a communication-first CRM to gain centralized message tracking, timestamps, ticketing, and workflows. 

With these tools, we have been able to streamline communication between investors and residents across Southeastern Wisconsin using a single system. This has consistently improved our response time to emergencies, enhanced our ability to manage non-emergency requests more effectively, and facilitated more informed, data-driven discussions with investors.

PAM’s Approach: Human Communication Supported by Automation

Providing 24/7 availability is increasingly common due to market pressures. However, property managers must evaluate whether this approach is practical or if it compromises their ability to offer the most effective responses to investors and residents.

At PAM, the goal is to manage expectations, instead of chasing the communication-related trend to be always available. Our communication is divided into the following categories: 

• Fixed communication: automation (lease renewals, rent status, work orders)

• Variable communication: human problem-solving

For example, PAM’s lease renewal process combines automation and human touch. The system manages renewals 120 days in advance, which sends out timely reminders and investor updates. However, there are multiple points where staffers check in with residents and investors personally to ensure efficiency without sacrificing a genuine connection. 

By utilizing automation for routine tasks, PAM can minimize over-communication or notification spam that overwhelms investors with too many updates. That said, investors have different preferences when it comes to information about their property. 

Some want frequent updates that cover every operation. Others only prefer to hear issues impacting material events, such as maintenance over $500, lease renewals, or monthly investment reports. 

Investors can use the maintenance portal to select their preferred method of receiving notifications, either via text or email. Emergency maintenance triggers automated notices, but non-emergency communication is intentionally limited. 

This approach provides investors with personalized visibility, rather than a one-size-fits-all broadcasting method. And during onboarding, investors are instructed on how to schedule optional conversations.

How to Evaluate a Property Manager’s Communication Policy?

Investors conducting a property manager evaluation ask whether there are clear tenant communications, robust property management reporting, and data for investor oversight.

Competent communication should provide meaningful updates at logical steps, such as when maintenance begins and is completed, rent delinquency updates, or weekly activity summaries. Alternatively, lower value notifications include constant lead view alerts, excess showing reminders, or minor operational updates, which fail to help investors make informed decisions.

Effective communication strikes a balance between residents and investors. PAM is dedicated to delivering timely, meaningful updates while focusing human attention on the jobs that need it. If a property manager is sending too many alerts or there’s not enough high-level information, book a free, no-obligation discovery call to learn how a structured, investor-focused communication policy can enhance your experience as an investor.

Imagine an investor listing a property for $1,200, believing the market will support it. But two months later, the space gets rented for $1,000, the price that data initially supported. The numbers look consistent, but the investor lost $200. Instead of increasing returns, a decision reduced them—and that choice is exactly why investors benefit from understanding leasing. 

In addition to illustrating why a leasing policy is crucial for investors, the analogy highlights why Performance Asset Management (PAM), our award-winning property management company, views leasing as a form of resident placement rather than filling a vacancy. The difference emphasizes quality over speed and choosing the right people for the right place, instead of rushing to make decisions that lead to regular turnovers.

Each unit PAM manages operates as a business, structured by standard 12-month leases that are legally binding contracts in Wisconsin. Leasing is crucial because the profitability of each investment is highly influenced by residential behavior. In this article, you’ll learn how leases determine cash flow, expense control, and long-term returns to define success or failure. Use that information to examine your leasing structure or consider working with a property manager. 

Why Should Property Managers Treat Leasing as an Investment?

Leasing matters because resident performance determines cash flow stability, expense control, and long-term returns.

When our residents are properly placed, those relationships tend to last 36 to 60 months, making long-term tenants a key factor in reducing turnover expenses. For example, a five-year resident can eliminate multiple expenses associated with recurring costs for painting, cleaning, and overall preparation. And even conservative turnovers can cost thousands of dollars.

More specifically, when a unit gets turned over, the costs can exceed profits—dramatically reducing any returns on the investment. Few investors buy into real estate for the amount earned per month in rentals, because after paying insurance and routine expenses, there’s very little buffer. For investors in Southeast Wisconsin, renting single-family homes typically yields just a few hundred dollars per unit each month.  

Although the low cash flow margins make turnover especially damaging to returns, leasing can protect the income side of renting. In short, by stabilizing income and reducing cash flow interruptions, strong leasing protects the Internal Rate of Return (IRR), which is the annualized return on an investment over a specific period. 

Resident wear patterns also influence long-term CapEx outcomes, since long-term residents who avoid damaging the unit preserve capital by slowing asset depreciation. For example:

• If tenants at property A stay five years before moving on, and the flooring is only replaced once, with appliances replaced on schedule

• While property B requires five different residents over the same time frame, the flooring needs to be replaced three times, and the appliances are replaced every year 

• The same rent yields very different IRR and CapEx

How Does Performance Asset Management Reduce Leasing Risks?

PAM uses income, rent history, and liquidity as predictive correlators to reduce payment and turnover risk.

Over 15 years of experience specializing in residential investment properties owned by small-to-mid-scale, long-term investors have taught PAM that rushed leasing leads to chronic turnover and operational drag, both completely preventable problems that absorb resources. 

By leveraging technology, PAM reduces those risks with third-party, verified data. Instead of relying on self-reported information from prospective tenants, it’s possible to reliably predict rent payment behavior and length of stay. Two of the strongest predictors of rent payment behavior are 24-month rental payment histories and net income or take-home pay. When viewed together, PAM can make a proactive decision on how the renter will perform. 

Rental history shows time stamps verified by third-party services, which confirm on-time rent payments. Net income offers insight into financial health, as it shows how much a person earns after taxes, health insurance, and voluntary deductions, such as contributions to an IRA, HSA, Roth accounts—the amount a prospective tenant can actually allocate towards rent.

PAM also considers liquid assets as short-term indicators because people with assets tend to behave in a way that aligns with property performance. By prioritizing a correlation between hard facts and data over generalized screening shortcuts, PAM can accurately lower the risks involved with leasing to problematic residents that depreciate property value and drain returns. 

To ensure accuracy, internal performance tracking validates these criteria over time. Our data confirms whether income stability assumptions were accurate, whether wear patterns align with expectations, and whether operational drag was minimized by analyzing the following metrics: 

• On-time rent collection

• Late payment frequency 

• Length of stay

• Turnover-related costs

• Make ready and damage expenses 

• Maintenance frequency tied to usage (instead of age)

Evaluating Whether a Leasing Policy Is Actually Working

Investors evaluating a leasing policy should review performance over a 24 to a 36-month window, which will help with recognizing patterns, as opposed to focusing on isolated outcomes.

Measure vacancy as unpaid rent, as opposed to how long a space is empty. For example, a 5% vacancy target represents approximately two unpaid months over three years. Leases that meet or exceed that benchmark signal operational success. 

Investors should also compare the promises offered by property management companies to the amount of actual rent collected. PAM involves investors early on through a 120-day lease renewal process, encouraging pricing discussions before urgency creates risk. Additionally, weekly audits ensure that investors have access to visible, accurate, and functional data. 

Market feedback is also continuously monitored and incorporated into our processes. Disciplined leasing protects returns by minimizing vacancy loss, while consistent resident placement reduces operational drag. For our long-term investors, choosing the right residents is the most crucial decision affecting success.

How to Decide If PAM Is the Right Choice for Leasing Your Property

Quality placement isn’t a tradeoff for quickly placing tenants. Poor tenant placements create additional workload, slowing operations, decreasing on-time rent collections, increasing early turnover, and necessitating repeated re-leasing processes that waste time and money.

At PAM, each listing begins with a local comparative market analysis (CMA) where comparable properties are analyzed within a half-mile to one-mile radius. Pricing decisions are finalized based on market conditions, not target rent alone. In the current Southeast Wisconsin rental market, demand is price-sensitive, making disciplined pricing essential to momentum.

Partnering with a property manager who treats leasing as a strategic investment is essential to success. PAM’s approach—using verified rental histories, income analysis, predictive performance metrics, and comparative analysis —is designed to align each resident placement with the financial goals of the property owner.

To learn how PAM can help you maximize your ROI with leasing, fill out our form to schedule your free consultation. Together, let’s examine leasing policies and whether those processes consistently translate into reduced vacancy and stable performance. 

Quality residents play a decisive role in the success of a residential property investment. For investors, residents directly affect your cash flow, maintenance costs, and the long-term value of your property. When the wrong resident is placed, problems happen quickly—many of which are preventable through a disciplined screening process or by partnering with a property management company.

The philosophy for residents at Performance Asset Management is that when tenant placement is done right, 80–90% of annual performance is already won. In the Southeastern Wisconsin area where we operate, real estate professionals estimate that investors face the risk of losing tens of thousands annually due to bad tenants.

In addition to financial risks and property damage, there’s a decline in community reputation to consider. Choosing the wrong tenant can also lead to draining legal expenses while compromising the safety of renters or neighbors. For property investors, learning how to make tough decisions regarding resident criteria is key, or understanding how to choose the right property management company to do the job for you. 

What Criteria Do Property Managers Use to Screen Residents?

In real estate, business operates within neighborhoods, and responsible residents need to be suitable neighbors who can be part of a larger community. Even though screening standards will change based on different environments, most property managers rely on a similar criteria to evaluate applicants. 

Although these inputs are widely recognized in the industry, they have different purposes. Some are designed to help confirm identity, while others assess financial stability and rental history. When viewed with other data, these guidelines are a solid starting point for developing residential screening criteria: 

• Credit reports: identify judgments, unpaid obligations, and patterns of financial distress that tell a story beyond a simple score

• Criminal history: taken into account with fair housing laws, with an emphasis on safety-related offenses rather than blanket disqualification

• Rental payments: verifiable evidence of rental payments made by applicant, how much was paid, and whether or not rent was paid on time

• Landlord feedback: insights from previous landlords can identify patterns of behavior, especially from property owners years prior, who have little to lose in being honest

• Bank statements: assesses financial reserves and the ability to pay rent along with other expenses, including emergencies

• Income verification: calculated based on net income, income stability, and alignment with rent affordability thresholds

• Government-issued identification: confirms identity and ensures consistency in materials

According to the federal Fair Housing laws and Wisconsin’s Open Housing Law, it is illegal to reject a tenant based on race, religion, color, National origin, gender or gender identity, familial or marital status, age, sexual orientation, handicap, participation in the Section 8 Program, or some arbitrary discrimination (i.e. tattoos, style of dress, or general looks).

How Does Performance Asset Management Qualify Residents?

While some property managers and landlords may have a positive experience with a long, elaborate checklist, PAM considers the items on the above list and evaluates criteria together while placing more focus on the following:

24-Month Rental Payment History (Strongest Predictor)

Past behavior can give good insight into how a renter will perform in the future. In particular, rental history shows whether or not a tenant can navigate through life challenges without letting obstacles negatively impact rent payments. Successful rental payment history for years can be one of the strongest predictors when still used in conjunction with other factors. 

Because rent payment is oftentimes digitized through cash apps and rental portals, time stamps are available on each one of those bank transactions. That means third party verification services should be available on rent payments. Using these metrics can be a valuable tool for assessing a tenant and their ability to pay rent and do so on time. 

Net Income 

At PAM, we understand that the industry standard is to seek residents according to the 30% rule, which means rent should be about a third or less of how much a person earns. 

However, our focus is on net (or take-home pay) instead of gross income, which helps gain a more realistic view of financial health. A tenant's rent could be 30% of their gross, it might actually be 45-50% of their net, after taxes, health insurance, and retirement savings.  

Property owners and investors who review net income can analyze actual cash flow available to cover rent. For example, two rental applications could both earn $80,000 gross per year, but their financial folders are completely different:

• Applicant A: A single person with minimal tax withholdings and no retirement contributions might take home $5,000/month.

• Applicant B: A person with a family, high health insurance premiums, and aggressive 401(k) contributions might only take home $4,000/month.

Bank Account Balance

Some landlords stop at verifying income, but bank account balance can be another truth-teller for financial behavior. Because people with assets behave in a way that aligns with great property performance, reviewing a bank account balance, especially in relation to net income is another one of our top indicators. 

For example, a tenant who has $4,000 in the bank is more likely to make rent payments than a renter with a $0 balance. If a negative life event happens, such as car trouble, a medical bill, or being laid-off for a short time, the person without padding in their bank account has to make a choice between an immediate emergency and paying rent. 

What Should Owners Remember About PAM’s Resident Placement Criteria?

Poor resident placement can cost owners between $5,000 to $25,000 in losses while creating safety, legal, and neighborhood reputation risks. 

Choosing good tenants and eliminating potentially problematic renters starts by being able to make difficult decisions regarding resident criteria, evaluating residents personally or selecting an appropriate property management company to handle these responsibilities effectively.

How PAM Balances Fair Housing Compliance with Risk Management

Fair Housing laws have evolved during the past 15 years that PAM has been working throughout Wisconsin. Naturally, our PAM’s screening process reflects those changes.

Criminal history alone is not used as an automatic disqualifier. Instead, PAM focuses on safety-related considerations permitted under current regulations, such as offenses involving children or domestic violence, while relying on financial and rental performance data to guide approval decisions.

When the resident is financially stable and historically consistent, maintenance requests are more manageable, and communication is clearer, the long-term occupancy improves. When placement is handled poorly, even well-located properties can underperform.

Applying Resident Placement Criteria to Protect Your Investment

For Wisconsin property investors, resident placement is one of the most impactful decisions affecting long-term performance. Residents influence cash flow consistency, maintenance intensity, legal exposure, and the overall reputation of your property within its community.

Performance Asset Management’s resident placement criteria are designed to reduce those risks by relying on math, documented behavior, and affordability—not assumptions. By focusing on rental payment history, net income, and financial reserves, PAM prioritizes long-term stability over short-term occupancy.

For Wisconsin investors, choosing the right resident is one of the most impactful decisions affecting long-term returns. Whether evaluating residents independently or selecting a property management partner, understanding how screening decisions are made is essential to protecting both the asset and the community it serves. Speak with us directly for more information on choosing the right resident.

Over the past five to six years, property management has shifted from a service-based industry into one that offers guarantees. Although this route helps companies stand out in a crowded market, if you are an investor, it can make it harder to find a property manager whose guarantees actually protect your investment and give you peace of mind.

At Performance Asset Management (PAM), we’ve found that not all guarantees are created equal. Our office, headquartered in Milwaukee, has spent 15 years working across Wisconsin. Throughout this time, we’ve learned that some guarantees may look appealing on paper but ultimately fail investors when it matters most. And that’s true even for common guarantees, such as rent collection, security deposits, maintenance, pest control, or communication.

Knowing the difference between guarantees, insurance, and marketing promises can help investors choose which property management company is right for them.

In this article you will learn to identify the companies that demonstrate their commitments through financial projections, data, and performance—top indicators for assessing property investment returns over the long-term.

Have Property Management Guarantees been Misunderstood?

Consumers are most familiar with guarantees through retail products, claiming money-back, price-match, or lifetime guarantees. 

In real estate, guarantees are less of a marketing promise and more of a highly conditional legal contract. These agreements cover areas like rent income, tenant placement, and maintenance response time, but with heavy caveats.

Investor Guarantees before the COVID-19 Pandemic

A widely misunderstood example involves rent guarantees that were popular before the pandemic. Insurance policies often included provisions known as “Act of God” clauses designed to protect property owners and tenants. Typically bundled into insurance policies as bulletproof safety nets, these clauses stated that individuals were excused from fulfilling their lease obligations in the event of a disaster, such as a fire, flood, or earthquake.

When COVID-19 hit, investors looked to their insurance companies for reimbursement to cover lost rent. They quickly discovered that payouts were only approved if the property was physically uninhabitable, revealing the flaw in these supposed agreements. Since the homes were still standing, the guarantees turned out to be little more than fair-weather promises. 

During the pandemic, property owners were required to pay 100% of their property taxes, insurance, and mortgage payments out of their own pockets, while receiving none of the income they thought would be guaranteed. The financial burden was solely placed on property owners, leaving many to learn to question investor guarantees.

Maintenance Warranties as Failed Guarantees 

A common example of a guarantee failing a property investor involves when maintenance warranties cover a broken appliance. In this instance, a refrigerator belonging to a former PAM investor. After reporting the damaged fridge, experiencing delays in service due to vendor and labor shortages, the resident nearly left the property. 

What started as managing a maintenance expense turned into a $5,000 bill that the investor had to cover. That amount far exceeded the annual maintenance expenses for that property or even the cost of a new appliance. Because warranty companies make money by not spending it, hiring the lowest-bidding vendors who may lack the parts or the motivation to fix an issue quickly is a common occurrence. 

In this example, a $50 part led to a $5,000 loss. When a resident is without a working appliance for two weeks, they don't just get annoyed, they lose trust. And because in the rental industry, the number one reason for resident turnover is poor maintenance response, the investor learned a hard lesson regarding guarantees.

What are Performance Asset Management Guarantees?

In addition to guaranteeing that our 10% fee only applies if we collect rent, we offer resident placement, flexible contracts, and same-day service guarantees. 

At PAM, guarantees are a reflection of performance, instead of a clever way to avoid liability. Our relationships with investors are meant to share risk, and if we don’t perform, we don’t earn. 

PAM Guarantees: Resident Placement, Eviction, and Same-Day Service

Our resident placement guarantees eviction transfers, legal, and replacement risks onto PAM. Instead of simply finding a resident, we use a third-party service to verify rent payment history and income requirements to ensure that residents are a good fit for the property, the neighborhood, the investors, and ourselves.

With our flexible contracts, investors can exit a contract without any cost if there is any issue in alignment. Instead of being locked into agreements that fail to serve both parties, investors can avoid long-term contracts without penalty. By taking on the pressure, investors can rely on our performance, instead of promises. 

Human oversight and same-day responsiveness are central to this model. Investors have direct access to our founder when major issues arise to ensure concerns are quickly addressed and resolved. This approach, combined with our same-day response time on resident and maintenance issues, prioritizes actual accountability over marketing speak.

What Should Investors Remember About PAM’s Guarantees?

Our HubSpot-powered ticketing system reduces communication black holes, where problems go unnoticed. It provides time-stamped logs of every call and text to ensure prompt responses. 

Instead of relying on instincts and industry rumors, our monthly report offers data to help property owners develop a business strategy. As opposed to getting a check at the end of the month, investors get access to unique P&L monthly statements that help them decide when to sell, refinance, or buy. 

What PAM Guarantees Mean for Your Investment

Because a guarantee is only as good as the data and performance behind it, investors are encouraged to remember: 

1. Guarantees are not insurance: Insurance is for catastrophes, while guarantees are obligations and commitments.

2. Focus on retention: A maintenance approach can heavily impact investor ROI. By providing same-day service, we aim to increase resident retention to protect investors.

3. Transparency is key: Real-time data and financial projections show the why behind decisions, instead of hiding behind “Act of God” clauses.

For more information about our guarantees and our experience providing data-driven results to property owners principally located in Southeast Wisconsin, set up a time to talk. Come with questions and learn how we track financials and provide secure reports through our automated web-based system so investors can use our guarantees to make informed decisions. 

Property investors need more than just a manager who collects rent—you want a partner who supports consistent cash flow, predictable results, and transparency, without hidden fees. Explore how Performance Asset Management (PAM) provides systems, insights, and accountability for investors interested in making data-driven decisions. 

About 15 years ago, PAM was established to serve property owners in Milwaukee and across Southeast Wisconsin. Its founder, Jim Miller, worked as a real estate investor before starting a property management company. During that time, he worked with three management companies that all underperformed, and the experience led him to create a space that could offer what he sought as an investor. 

By treating property management as an operating business and building systems investors could trust, PAM can align with investors seeking stability over the long term. Continue reading to find out exactly how these systems and strategies can protect your investments and give you the confidence to make smarter, data-driven decisions.

How Is PAM Structurally Aligned with Investor Performance?

To stay aligned with investors, PAM defines success in the same terms as its clients. Specifically, high occupancy rates, strong rent collections, controlled expense-to-income ratios, and resident satisfaction are all leading indicators of successful property ownership.

For PAM, the key to staying aligned with clients is linking its incentives to the successes of investors, creating an environment where our property management company thrives when investors succeed. To make sure that’s the case: 

• PAM only gets paid when rent is collected

• No payment until a resident is placed

• No revenue from hidden or auxiliary fees

• PAM wins only when investors win

Is This a Typical Approach to Property Management? 

The difference between PAM and other property management companies is alignment. Companies driven by hidden fees rather than performance adopt a self-serving attitude–the complete opposite of the path PAM follows. Additionally, property management companies can use high turnover as a tool to increase their income by charging a host of different hidden fees when residents move in and out:

Why Doesn’t PAM Rely on Long-Term Management Contracts?

Another way that PAM stays aligned with the needs of investors is through flexible contracts. Instead of locking both parties into an agreement, PAM contracts can be terminated at any time with a one-day notice and no penalties. 

This strategy ensures that everyone is aligned with the business strategies and goals. It helps avoid penalties and challenging surrender periods that attempt to lock in revenue models. Instead, it fosters a relationship based on accountability, allowing either party to change direction if desired.

How Does PAM Keep Property Management Transparent?

When it comes to transparency, PAM offers investors a number of resources to ensure messages are properly communicated. 

For instance, PAM utilizes a HubSpot-powered ticketing system to help make sure that issues are quickly brought to our attention via time-stamped logs for late review to ensure expedient responses. 

What Information Do Investors Usually Not Receive from Managers?

While investors almost always get receipts and many receive reports, PAM provides true performance data in the form of actual occupancy rates and collection performance, in terms of how often each unit is producing rent and how much is collected versus over-simplified billing. Additionally, the resident placement metrics that PAM provides allow investors to gain a clear performance picture.

How Does PAM Ensure Investors Understand Their Numbers?

In keeping with data transparency, PAM also provides custom income and expense reporting, where investors can see how properties are actually performing. Each property owner can access their reports through a secure investor portal that also grants access to vendor bills and investor statements. 

For long-term projection, CapEx planning tools and Internal Rate of Return (IRR) focused reporting allow investors to anticipate future costs and plan accordingly to avoid taking a reaction-driven approach towards property investing. With IRR-focused reporting designed for small and mid-scale investors, PAM aligns day-to-day decisions with long-term returns and shared goals.

Who Is Performance Asset Management Built For?

PAM is built for investors who value performance over promises and clarity over complexity, and we work best with owners who see real estate as a long-term wealth-building strategy, not a short-term transaction. These are investors who want stable occupancy, reliable collections, and decisions grounded in math—not fee generation or guesswork.

If you’re looking for stable occupancy, reliable collections, and decisions grounded in data, PAM gives you the systems and insights to achieve exactly that. Whether you own a single-family home, a duplex, or a modest portfolio, you can stay in control and informed while relying on a professional team to manage day-to-day operations.

Ultimately, PAM is for investors who want a partner who believes real estate is a tool for building durable financial outcomes over time. If you’re ready to see how PAM can help your properties perform at their best, request an appointment to speak directly with our founder. 

Whether it’s a landowner seeking support with a small-scale investment or a real estate firm looking for help juggling a robust portfolio, selecting the right property management company can be challenging, primarily because services vary so widely and costs fluctuate even more. 

While most investors consider about 10% of rent plus leasing fees as the market standard, transparent companies that charge similar percentages, avoid hidden fees, and provide detailed reporting can simplify the process of choosing a property manager.

As a residential property management company that primarily focuses on homes and duplexes in Wisconsin, Performance Asset Management (PAM), we also specialize in analyzing long-term returns, which is critical for assessing true cost-effectiveness while utilizing metrics like rent collection percentages to objectively measure property performance.

Creating that alignment involves researching industry-wide pricing frameworks and understanding the amount of oversight necessary for a property to profit. Understanding different fee structures and their impacts is a rock-solid step toward creating a more profitable portfolio. Here is what you need to know about the industry’s primary pricing models.

What are Common Property Management Pricing Structures? 

While specific pricing details vary, investors taking steps to work with property managers tend to encounter one of three pricing models when evaluating potential companies, though each pricing structure can have pros and cons for both the owner and the manager.

• Flat monthly fees: a set dollar amount charged each month, regardless of whether or not anyone is living in the space or rent is collected, which pays for management services 

• Percentage of gross rent: a percentage charged based on rent, even if tenants fail to pay or the space is vacant, to cover work being performed on the property

• Percentage of collected rent: a percentage charged only when rent is successfully collected

Flat monthly fees could be more cost-effective for owners with high-end properties (i.e., 10% of a $3,500 rental is $350, but a flat fee could be $200). Paying a percentage of the gross rent can lead to investors being charged despite vacancies or collection issues. Tying compensation to performance can motivate managers to collect rent, find reliable tenants, and fill vacancies. 

Despite the commonality of these three different ways for property managers to set up their compensation, a hybrid approach that combines approaches is most common. For example, a property manager may charge a monthly fee that could be a percentage or flat fee, plus additional one-time fees for services, such as leasing or finding tenants, renewals, or additional maintenance services. 

How Much Does Property Management Cost Per Month?

Property management typically costs between 8% and 12% of monthly rent, depending on the level of service, property type, and market conditions. Although some companies charge a flat monthly fee regardless of performance, others charge a percentage of rent—either based on gross rent or rent actually collected.

Additional fees for leasing, renewals, maintenance coordination, or compliance services may apply, making the total monthly cost vary from property to property.

How Costs Look in Practice

For instance, at PAM, monthly management fees are 10% of the rent, with a maximum cap of $250, and the company only earns after successfully collecting rent. Additionally, the fee is waived if clients are vacant or nonpaying. 

Additional fees include: $10 maintenance coordination fee, $300 lease renewal fee (annual), a leasing fee which is equivalent to one month’s rent, and new resident placement. To illustrate how property management costs can be structured in practice, the table below outlines PAM’s standard fees and what each covers:

Services Included in Monthly Costs 

Most of the investors own residential, single-unit family homes and duplexes throughout Milwaukee, Wisconsin. Pricing applies consistently across single-family homes, duplexes, and small multifamily spaces comprising 4 to 8 units. Services include support for creating leasing agreements, finding residents, and providing management assistance, in addition to:

• Resident communication and relationship management

• Legally compliant leases (PAM signs leases as a licensed realtor)

• Risk and compliance protection (municipal and court exposure)

• Rent collection and enforcement

• 24/7 maintenance coordination to reduce emergency risk, habitability violations, and resident attrition

• Same-day response for: heating, cooling, electrical, and water emergencies

How Do Investors Evaluate Property Management Costs?

Investors who successfully partner with a management company recognize that each property operates differently, requiring a unique investment of time, systems, and accountability.

Finding the right property management team means gaining resources for management, transparency, and compliance while aligning business models that enhance property assets. 

After that stage, instead of just asking, “How much does it cost?” find out:

• What services are included in the monthly fee?

• How is rent collection handled?

• What happens during vacancy or non-payment?

• How is legal and regulatory risk managed?

• How does the management company align with my long-term investment strategy?

Questioning long-term investment potential leads experienced investors to evaluate performance over time, such as 36 months rather than 12, to better understand how management decisions impact net results.

To fully understand what you’re paying for in terms of expenses, compare property management fees against higher long-term costs. Poor resident screening, delayed maintenance, lack of legal compliance, and weak enforcement practices can result in higher vacancy, increased turnover, and greater financial risk.

Additionally, hidden fees in residential billing may not appear to be a monthly cost, as they fail to appear on an investor’s statement. However, excessive resident charges can lead to more friction, missed rent payments, and tenant turnover. Examples of hidden fees that often rely on per-transaction or add-on fees that may not be apparent from the advertised base price include: 

• Administrative fees on top of contractual fees

• Fees to send rent proceeds to the owner

• Posting notices, reminders, or warnings

• Monthly statements or reports

• Vague fees without a defined service

• Activating a rent collection account

How Do Property Management Costs Align with Long-Term Returns?

To the untrained eye, property management costs may seem random. However, the nature of the business means that full standardization of properties isn’t possible. Some property assets require more services, and risk is far from evenly distributed throughout the industry.  

Serious investors who want more information must ask themselves if they need support at all and then calculate the level of support that's actually needed. Then consider the service offerings and contractual terms of a property management company that matches the needs of the property and the long-term financial objectives of the investor. 

For investors, the true cost of property management isn’t defined by the lowest monthly fee, but by how closely a manager’s compensation aligns with rent collection, occupancy, and long-term asset performance. Ready to optimize your property’s performance? Schedule a call with our team to review your management strategy and see how PAM can help maximize your returns.

In real estate, contracts between investors and property managers are designed to help avoid misunderstandings that cause financial ruin and legal problems. Both parties need to agree on when the relationship begins, and even more importantly, when it ends. One of the more common questions becomes what is the appropriate property management contract length?

To eliminate confusion, Performance Asset Management (PAM) contracts are drafted to protect, clarify, and create flexibility. As a Wisconsin-based property management company, our contracts are structured around Midwest investor expectations. That said, termination is allowed at any time by either party to promote the idea that volunteers should be on board, instead of hostages. We believe contracts should be transparent and flexible. 

While the fact that termination is allowed at any point is clear, more detailed answers to investor questions are available to help land owners evaluate how contracts impact the relationship between an owner and a manager while driving performance and meeting legal requirements. Understanding how a contract impacts risk, accountability, and alignment helps investors make better long-term decisions about their portfolios.

How Long are Contracts at Performance Asset Management?

PAM agreements can be terminated at any time, with a one-day notice and no penalties.

Some contracts can last for a year to align with tax cycles and standard lease terms. Others can encourage managers to increase efforts at attracting tenants through a 90-day trial period, followed by a year-long commitment. The takeaway is that the common misconception that contracts have to last for 12-24 months is hardly the case. 

Regardless of the length of the contract, the exit strategy is arguably the most important component. Contracts may require 30, 60, or 90 days to walk away, making the duration of the contract much less relevant. At PAM, the property owners can end the contract with a one-day notice without any penalties. 

The reasoning behind a one-day notice is simple: life changes, portfolio strategies shift, and both parties should feel confident about the arrangement. This approach avoids complications with long surrender periods, penalizing parties for misalignment, and locking in revenue models. With two-way accountability, investors or property managers can exit if the alignment falters. 

View this table to better understand traditional property contracts versus those offered by PAM:

FAQ: Property Management Contract Flexibility at PAM

Q: If I cancel with a one-day notice, what happens next operationally?
A: When you provide notice to terminate your contract, PAM begins an off-boarding process immediately. This includes transferring relevant property information, tenant records, and financial documentation back to you. Your tenants continue their lease obligations uninterrupted, and any ongoing rent collection or maintenance services are wrapped up according to the timeline you specify. Our goal is to ensure a smooth transition with minimal disruption for both you and your residents.

Q: Are there any exceptions to the one-day notice policy?
A: While a one-day notice is standard, certain situations may require additional coordination to maintain operational integrity. Examples include:

• Active evictions in process

• Open insurance claims

• Emergency maintenance or repair events

In these cases, PAM will work with you to establish a practical transition timeline that protects residents and complies with legal obligations, while still keeping your exit as seamless as possible.

Q: What happens if I sell my property while under contract?
A: If you sell your property, the PAM management contract terminates automatically. We coordinate closely with you and your buyer to ensure the lease agreements remain intact and tenants experience no disruption. Our team can also assist in transitioning management responsibilities to the new owner if requested, giving you confidence that your property continues to be managed professionally through the sale.

What Does Contract Length Mean in Property Management?

An investor-friendly property management agreement clearly discloses fees, allows flexible termination, and defines legal authority without long-term penalties. 

Most property management contracts begin once the document is signed. However, fees are collected according to the document, and at PAM, we must collect rent from tenants before we receive our 10% fee. 

Contracts help establish operational guidelines, such as preventing investors from directly contracting with residents to avoid confusion and protect the resident experience. In this example, investors can avoid a divorced parents dynamic, where, in an unhealthy situation, tenants can act like children playing the parties against each other.

Contracts will also establish the property manager as the legal operator and authorized representative to handle issues like insurance claims, litigation, emergencies (floods, deaths, and disasters), and to communicate responsibilities, avoiding friction and misalignment. 

Red Flags in Property Management Contracts 

Unlike proactively laid-out agreements, poorly defined contracts can allow for long surrender penalties. For example, an investor might be charged a $150 a month fee for being forced to stay in a contract for the remaining ten months, resulting in a $1,500 penalty over time. Other common red flags include:

• Hidden fees: Some contracts include vague charges for “administrative costs” or “early termination processing” that can add up quickly.

• Rigid renewal clauses: Automatic renewal without clear opt-out terms can lock investors into another term without consent.

• Limited transparency on services: If the contract does not specify what services are included, investors may end up paying extra for routine tasks like marketing, maintenance coordination, or compliance management.

• Unclear legal authority: Contracts that fail to clearly define the property manager’s authority can create confusion around handling emergencies, insurance claims, or resident disputes.

How Do Property Management Contracts Work for Investors?

Contracts should be easy to understand, avoiding overly complex or ambiguous language, and all of the fees should be completely disclosed.

When that happens, a contract can be the right resource to help a property-based relationship grow. On the other hand, if the terms are poorly laid out and misunderstandings arise, the situation can be just as miserable as being stuck in a living situation with the wrong person.

For investors who want more information on their contracts to help them better understand the business relationship with the property manager, here is a list of questions that will help foster a transparent agreement between the two parties: 

• How long are your property management contracts?

• Can you cancel the property management contract at any time?

• What parts of the property management contract discuss legal requirements?

• What happens if I sell a rental? How much notification do you need?

• Does your property management company charge termination fees?

• What will your property management contract include?

• When do I need to pay your property management company?

• What is the notification for terminating the contract?

• What type of evidence and maintenance logs will be provided? 

Wisconsin property management contracts must align with state landlord-tenant laws, which is why local operators structure agreements differently from national firms. The right contract will lower long-term risk, better align parties, and lead to more adaptable portfolios.

Being successful in real estate involves managing risk as well as developing investments. Creating a property management contract that clearly defines responsibilities, fees, and exit options will protect the investor and the resident experience. 

Flexible contracts, like those offered by PAM, allow investors to adapt to changes in life, strategy, or conditions without being locked into long-term obligations. Investors who wish to continue the discussion of property management contracts can schedule a phone call, where we can provide more clarity and save headaches through transparency. 

In the complex world of real estate, a one-size-fits-all approach rarely works, especially when it comes to matching property managers with investors, who often struggle with choosing the right type of management company to meet their needs. 

Because property owners range from accidental landlords with a single unit to well-funded companies juggling thousands of properties, management companies with specialized experience work best in specific situations.

At Performance Asset Management (PAM), our philosophy is that strong returns happen when operations are disciplined, residents are satisfied, and thinking is done over the long term. So, instead of trying to force relationships, we make sure that our goals, timeline, and approach are in line with each of our investors.

Whether it's tenant screening expertise, knowledge of Fair Housing laws, quick response times to high-volume maintenance requests, retail marketing, or other specialized services, we provide the top-tier support once needs and experience align. To ensure that’s the case, we welcome investors to self-assess and conduct thorough research before reaching out to ensure that the relationship between owner and manager creates real value, not frustration.

What Investor Works Best with a Property Management Company?

The team at PAM primarily works closely with long-term thinkers and planners, who think in years and decades, as opposed to much larger-scale operations operating on a purely quarterly basis, such as private equity groups. More specifically, investors who value durable cash flow, resident retention, disciplined operations, and data-driven decisions.

Short-term optimization is achievable in the industry, particularly when aligned with long-term goals. But that achievement requires creating conditions that increase resident satisfaction through management responsiveness to create asset appreciation. 

Real estate is neither completely safe nor totally risky and instead exists in an adaptive space that is impacted by goals and approaches. For example, one of our clients who is seeking income for retirement uses a different model than a firm seeking a quick financial turnaround. Our role is to apply proven strategies to aid performance while providing visibility and insight along the way.

How Can a Property Management Company Protect my Investment? 

Even though investors will have different levels of experience, background matters much less than goal alignment. Today, a significant portion of our investor base lives outside of Wisconsin, with many clients owning fewer than 25 units in the state. Property management companies typically work best with three types of investors:

First-time/ accidental investors: those who own a single-family home due to a job relocation or life transition, as opposed to creating an investment plan. These investors value education, transparency, and guidance. We help them move away from reactive decisions into an informed strategy by providing education and structure. 

Portfolio builders: intentionally purchased 2-5 units over time for savings or retirement purposes and want to transition into using new systems. In our experience, they have a strong grasp of fundamentals and need us to help them build on their disciplined processes, visibility, and evaluations. 

Experienced investors: purchases for pure return on investment and scale to maximize cash flow and tax efficiencies with strict KPIs. While they understand the math, leverage, and scale, we offer more detailed reports, strategy refinements, and expense forecasting.

Overall, investors who work well with PAM view property management as a long-term investment, as opposed to a short-term cost. Whether an investor is learning the fundamentals or optimizing an established portfolio, PAM works best with owners who value transparency, resident satisfaction, and decisions made with the full lifecycle of the asset in mind.

How Can Data Help Me Make Better Investment Decisions?

Our property managers work best with investors who understand or want to learn more about the lifecycle of a property from the initial downpayment to the final sale. For example, the Cap Rate can provide an understanding of how much income a property is expected to generate in relation to its purchase price at the time of acquisition. 

Capitalization Rate = Year-1 Net Operating Income (NOI) / Purchase Price

For example, if a property is purchased for $1,000,000, year-one gross rent is $90,000, and

operating expenses are $30,000, then the first year of NOI is $60,000. Consequently, the Cap Rate is 6%.

Because real estate profit comes from annual cash flow, loan paydown, appreciation, and tax benefits, it can be beneficial to consolidate multiple profit sources. Investors who take this approach tend to work best with PAM in terms of optimizing returns.

Using the Cap Rate in combination with other educational tools, such as the IRR formula and CapEx planning, discussing optimal refinance and acquisition timing, along with expense-side visibility over income visibility for scaling investors, aligns well with our business model. 

Anchoring investment decisions in real operating performance instead of assumptions helps investors and property managers assess deals by providing a baseline for measuring improvement over time. 

Who Performance Asset Management is Not a Good Fit For

Just as important as identifying alignment is recognizing intentional non-alignment. Investors who apply a cash-on-cash approach with a focus on maximizing immediate returns while neglecting property appreciation, long-term value drivers, and tax benefits traditionally fail to be the best fit. In short, PAM does not work well with:

• Short-term flippers operating on 24–36 month exit timelines

• Private equity or institutional investors pursuing roll-up strategies

• Owners who suppress maintenance to inflate short-term financial statements

• Investors who view property management as adversarial rather than collaborative

Some property management strategies focus on cutting costs and minimizing resident experience in favor of short-term financial gains. Even though this approach can lead to immediate cash flow, it can also harm asset value and increase risks in the long run. 

Investors seeking low management fees and minimal property manager involvement have available options that align with those goals. Instead of a full-service property management partner focused on long-term performance, Welcome Home Milwaukee and MPI Property Management both serve investors with those needs. Both property management groups are also based in Milwaukee and serve the Southeastern Wisconsin area.

Working with Performance Asset Management

PAM is built around clear communication, defined decision-making boundaries, and measurable outcomes so investors are clear on the type of information to expect, when to expect it, and how decisions are made.

Owners receive financial and operational reports, including income, expenses, and variance explanations. And because clear boundaries prevent confusion and delays, PAM handles day-to-day operations, resident communication, rent collection, compliance, and routine maintenance execution. 

Owners remain responsible for strategic decisions such as capital expenditures, pricing strategy adjustments, and portfolio-level changes. Separating operational execution from ownership strategy avoids bottlenecks while keeping investors fully informed and in control.

Measuring Success

Since success is defined as durable performance, PAM typically evaluates outcomes using meaningful KPIs, including:

• Resident retention rate, as a leading indicator of asset stability and cost control

• Net operating income (NOI) consistency, rather than one-time spikes

• Maintenance cost trends over time, not just monthly totals

• Delinquency and compliance metrics, to manage risk proactively

Together, these metrics provide investors with a clear picture of how their properties are performing operationally—not just financially—while supporting long-term value creation.

How Do I Know if a Property Management Company is the Right Fit?

Property management is a business, and investors who work with our brand understand we prioritize residents because of the impact that those relationships have on the experience.

In terms of working with residents, we avoid weaponized hidden fees and instead appreciate the transparent math behind IRR over quick cash returns and expense exposure.

Any investor who has begun to determine their needs, evaluated the experience of property managers in the industry, and feels ready to assess services can continue to move forward by asking themselves relevant questions: 

Questions Investors Should Ask

• Do I understand my full expense exposure over ownership?

• Do I agree that resident experience drives returns?

• Am I aligned with their approach to maintenance, compliance, and communication?

• Am I investing for durable performance—not just a quick exit?

Investors must consider the skill set that a property management company offers and the type of space that needs support before setting up an agreement. As a Wisconsin-based company, PAM works best with long-term rental property investors focused on durable cash flow, resident satisfaction, and data-driven decision-making.

For more information on choosing a property manager, schedule time to speak with our in-house experts. Learn more about IRR in real estate investing, CapEx planning for rental properties, and resident retention strategies to get the best long-term returns.

But is there such a thing as an apartment that is entirely illegal to rent out? The answer is yes, and renting out an illegal apartment can result in substantial liabilities for both the landlord and the tenant.

Violating landlord-tenant laws can lead to fines, citations, legal action from local authorities, and even prison time, as it is considered occupancy fraud. Learning what to avoid and the consequences can help you become a better rental property owner.

What is Considered an Illegal Apartment?

• Condemned Spaces

Local laws prohibit property owners from renting out condemned properties. In many cases, buildings are deemed inhabitable due to serious safety hazards. This violates the law stating that rental units must be habitable, which means they should meet basic health and safety standards such as functional plumbing, electricity, heating, and clean water.

• Units that Violate Local Zoning Ordinances

Some landlords want to maximize the space of their investment property by adding an apartment to an existing building, which may violate local zoning ordinances. This can take the form of in-law suites where family members reside or basement apartments, which some tenants rent out because they are usually affordable apartment homes.

Another example of this particular violation is when a designated single-family home houses more than one family in the rental space despite having no separate entrances. Either way, it is considered an illegal tenancy and can cause legal trouble for both parties if the tenant is aware that the unit is illegal.

• Units that Violate Building Codes

Other than potentially violating local zoning requirements, landlords can also get in trouble if the rental unit does not follow building code requirements and keeps it from the tenants. Apartments are considered legal if the following are met:

1. Fire Safety
2. Electrical Safety
3. Plumbing Safety
4. Working HVAC System
5. Sound Structural Integrity
6. Compliance with Americans with Disabilities (ADA) Standards
7. Disclosure of Lead-Based Paint

• Property Without Necessary Permits

Property owners must acquire certain permits before renting their properties. In Milwaukee, rental units must apply for and receive a rental certificate before being allowed to be rented out. The ordinance applies to duplexes and even triplexes, although owner-occupied duplexes are excluded.

Consequences of Renting an Illegal Apartment

Fines

Fines are among the most common legal consequences for renting an illegal apartment, depending on the severity of the violations. For instance, habitability violations that are not fixed promptly can result in a $300 fine for the landlord's negligence. The possible penalties for repeat offenders can be substantially higher.

For worse violations, such as fire hazards that violate building codes, the fine can range from hundreds to thousands of dollars per violation. Examples include a lack of working smoke detectors, blocked exits, and fire escapes.

The Rental Agreement is Rendered Null

The lease agreement becomes unenforceable if the rental property is deemed an illegal apartment. That means neither the landlord nor the tenants are legally obligated to follow the terms outlined in the document. Action following this event will still depend on the circumstances and local laws, such as withholding rent, so hiring a legal expert is advised.

Relocation Assistance

If the rental unit is considered illegal, the legal recourse would be to provide relocation assistance to the tenant living in the illegal unit for alternative housing, provided that the tenant was not made aware that the rental unit does not meet the legal standards.

Demolition of the Property

Landlords are required to fix violations after an illegal unit is cited. If the required action for compliance has not been met, the property owner might be forced to demolish the illegal unit. Before doing so, they will need to provide proper notice to the tenant and cover the resident's relocation expenses.

Lawsuits

The tenant could sue you for violating the terms of your rental agreement. Furthermore, Wisconsin has legally established that landlords cannot charge a tenant for legal fees or costs incurred by legal action or dispute under the rental agreement, including deducting such costs from the security deposit.

Loss of Rental Income

While the rental home violations are being corrected, the landlord may be unable to rent out the affected units. Without tenants who pay rent, then the rental business will suffer. That's on top of the relocation expenses you may have to pay to place the tenant in a separate apartment in the meantime.

Reputational Damage

Once you get the reputation of renting out illegal basement apartments or violating local building codes, there's little legal recourse or amends you can make to restore your rental property's image. Worst case scenario, landlords can get felony charges for serious injuries or fatalities after ignoring potential hazards.

Displacement of Residents

Other than tenants, you might also have to evict relatives or family members living in in-law suites. You will have to face unpaid rent until you follow proper zoning ordinances or resolve potential risks within the rental property.

Illegal Apartment FAQs

How much do I have to pay for fines?

Monetary fines can range from hundreds to thousands of dollars per violation and may be assessed on a daily basis until they are corrected.

What is the best course of action for a landlord dealing with illegal apartments?

Courts are unlikely to dismiss litigation claims or let you continue renting your property out. The best course of action is to resolve any violations before continuing your business to avoid more legal troubles.

Can my rental license be revoked?

In severe cases, the court may choose to revoke your rental licenses. Continuing to rent your property out, despite this, can be a liability minefield.

What are the potential legal consequences?

Minor cases like misdemeanor charges can result in community service. For severe cases involving injuries or fatalities, there's a risk of jail time.

Hiring a Property Management Professional to Handle Your Property

Hiring property managers who understand zoning ordinances, building codes, and other rental property requirements keeps you from facing legal headaches in the future. Many standards need to be met before a property is legally considered a residential space, such as minimum ceiling height, division of living space, and more.

Companies like Performance Asset Management can help you ensure legal compliance for optimal financial return on your investment property in Milwaukee. Contact us now and we can tell you about our services and how we can help you as a landlord.

More Resources:

• The Pros and Cons of Self-Management for Milwaukee Rental Properties
• How to Handle Squatters as a Milwaukee Landlord: Understanding Wisconsin Squatter Rights

The passionate few property managers do much more than keep the lights on. As has been said many times before, property managers have to wear many hats. The best of their class can serve as financial advisors, real estate agents, market analysts, and more.

Milwaukee, like many other areas of the country, is rapidly evolving. A forward-thinking approach is essential to keeping property investments thriving in this economy. Here at Performance Asset Management, that is precisely what drives us daily.

Today, we caught up with our founder, Jim Miller, to give you a peek behind the curtain on our company’s history and what we’re doing to continue staying ahead of the curve in property management.

How We Got Our Start in Milwaukee Property Management

Before getting into property management, Jim was a real estate investor just like the clients he serves today. He would flip homes and then use the proceeds to build up a substantial real estate portfolio, gaining much of the investment knowledge that he would carry into his management business.

Jim founded Performance Asset Management in 2010 here in Milwaukee. He describes the company’s founding as a “byproduct” of his earlier years with his investment portfolio. The property managers he worked with then would take about 50% of his rental revenue. According to those managers, this standard was great. But Jim thought that he could form a team that offered better.

“When the financial crisis hit in 2008, flipping went away. I decided I needed to reinvent myself professionally. I knew I wanted to stay in real estate, I believed in it as an investment vehicle for myself and other people. I knew there was a great opportunity based on my experiences to start a new model of property management built for investors in Milwaukee.”

- Jim Miller,

Owner of Performance Asset Management

From Then to Know: What Drives Us

With an investor-first mindset as its foundation, Performance Asset Management has blossomed as a property management team that looks beyond the day-to-day minutia and seeks out what will make a Milwaukee rental property perform better as a business.

With 15 years of experience now, Jim has spent more time in property management than he did as a full-time real estate investor. But that hunger to maximize an investment remains. Jim remarked that 3 elements have kept him passionate about this industry for so long:

1. Jim and his whole team love the challenge of property management. “We’re in the nexus of all the different facets of real estate. I like being in that nexus and getting the opportunity to master all these different sides of the business while providing a home for our residents.”

2. “Property management is a great opportunity for us to be an advocate for investors and residents in Milwaukee. Getting to go to bat for them is always really exciting to me.”

3. “Property management constantly changes. Whether it’s the technology, the real estate market, or the people, there’s always something new to learn.”

You can tell just from talking to Jim for a short time that he’s always hungry to advance the field of property management in his local area, and that energy is infectious to the rest of the team.

“Property management, for me, scratches that entrepreneurial itch that I’ve had since I was 5 years old. Residential property management is wildly challenging as well, and I’m always fascinated by the never-ending task of trying to put this puzzle together.”

- Jim Miller,

Owner of Performance Asset Management

Why Choose Performance Asset Management?

A big question for any business, but especially in property management, is the why. Why choose Performance Asset Management over any of the other property managers in Milwaukee?

In response to that age-old question, Jim stays humble and realistic about what his clients and communities need.

Jim stated, “I don’t think we’re the right choice for all property owners in Southeast Wisconsin. I think the longer I’ve been doing this, the better I’ve gotten at identifying who we’re the right choice for. We’re the right choice for any owner of a single-family home or duplex in what we call the ‘A’ or ‘B’ market. I define that in Southeastern Wisconsin as places that are renting for more than $1,000 dollars a month.”

For Jim and the team, it’s important that their values and goals align with the investors they work with so they can use their expertise to its fullest potential.

Community Impact

It’s also important that the team has a positive impact on the communities it works in. Jim further explains, “When we started, we were an all-purpose property manager. If you had a property, we wanted to manage it. From those experiences, we got better at refining what our place was in the market. For me personally, on an ethos level, it’s about making a positive difference in the owner's and tenants' lives. I grew up very working class and aware of money, and I bring those experiences to property management.”

With the team at Performance Asset Management, you can rest assured that any property you own in Southeast Wisconsin will be managed with a profound respect for the tenants and a money-minded approach that will help you grow as an investor. Most importantly, it’ll allow you to foster a reputation as a landlord who cares about their tenants, fostering long-term relationships for your property and a positive impact on your community.

“We like to provide safe, happy, and healthy houses. We’re going to make sure everything works and that everything is safe. That’s going to put you in a position as a landlord where you get to bring the happy! I want Performance Asset Management to always live up to that goal.”

- Jim Miller,

Owner of Performance Asset Management

Cutting Edge Management for Rental Properties

When you work with Performance Asset Management, you’ll quickly learn that we’re always implementing practices to stay ahead of the curve. Whether it be in real estate, financial management, or technology, the team has applied its hunger for growth to streamline every aspect of property management.

Some of the ways this manifests in the business include:

1. Consistent research into financial data for the properties PAM manages and the wider real estate market. We apply this data to the decisions we make in our business to achieve success amidst market fluctuations while keeping our price increase to an absolute minimum. Since being in business, we’re proud to say we’ve only increased our prices one time.

2. An adaptive approach to maintenance where we’re able to implement either in-house solutions or third-party depending on what’s the most efficient for the job needed. Many property managers stick to one solution or the other. We choose the one that will get the job done right while optimizing financial performance.

3. Technology platforms that can automatically sort maintenance requests to the best available solution, ensuring same-day service and improving tenant retention. This also helps us meet our goal in 2025 of keeping maintenance costs below the national average.

4. Our research and focus on inflation have shown us that rent increases have caused a lower level of migration into the city of Milwaukee. Because of that, we’ve taken a high-level engagement approach to tenant retention that has kept our properties profitable. That means we have a dedicated customer service team that reaches out to tenants months before a lease is over and if they’re not renewing, we work with them on a solution to keep that tenant.

5. Our approach to vacancy also means we use our data to track when people are moving so we can align our lease windows with that. If the lease is scheduled to end in the months when more moves occur, we can fill vacancies faster and get a better rent rate for your property.

Inflation is a big concern across the country, and it’s no different for owners or managers of rental properties. That’s why in every avenue of our management, we’re always deploying data-driven practices to combat this.

“It’s all about how we invest our time. If we invest our time just doing what we’ve always done, we’re going to get the same results. If we invest our time finding different solutions, that’s where we start to see growth.”

- Jim Miller,

Owner of Performance Asset Management

Partnering with Us, the Wisconsin Property Management Pros

Our story at Performance Asset Management is just beginning, and we would love to share it with you.

Be on the lookout in the future for some in-depth looks at our strategies for property management and inflation-busting for rental property owners.

In the meantime, if you’re in need of a better solution for your property management needs, reach out to us today.

Come rain or snow, we’re here for you, Southeast Wisconsin!

Schedule a free consultation with us today.

More Resources

The Wisconsin Housing Market Forecast in 2025: Predictions for Investors

Investor FAQs

At Performance Asset Management, we always keep our finger on the pulse of Wisconsin’s housing market in order to protect rental property owners. Read on for expert insights on what to look out for this year.

Home Prices

The housing market predictions might seem familiar to previous years, consistently showing increased home sale prices. Milwaukee, in particular, saw an 8.7% increase in median sale price from December 2023 to December 2024. Despite that, there is still a sustained demand seen with investors, meaning that the industry will continue to grow.

However, The Luxury Playbook states that housing inventory levels have also seen changes in the last year with homes sold after 44 days on the market, which is longer than the previous year wherein real estate properties were sold after 41 days. More median days on the market means investors have more time to make decisions.

It bodes well that Milwaukee homes are usually sold for about 99% of the list price, which shows a more balanced market wherein neither the seller nor the investors have an advantage over the other.

Mortgage Rates

Financing real estate from Wisconsin's housing market might be a little tougher in the succeeding months considering that there have been signs of a rate increase in mortgages. Most of 2024 had rate trends at around 7%, bottoming out at 6.2%, but this has been increasing since the beginning of 2025. Bankrate predicts that the mortgage rate will balance out to 6-7% in 2025.

It has been pointed out that other economic factors can affect home ownership such as the rising cost of housing, especially in popular areas like Milwaukee. The median home price has gone up to 8.5% year-over-year. Since October 2023, there has been a 7.1% increase in median sale price, leading to an average cost of $300,000 by 2024.

Housing Demand

Demand is an incredibly important factor to consider when researching Wisconsin's housing market predictions, given that it ensures steady demand in rentals. Wisconsin's housing market had 16,460 homes for sale in December 2024, which was up by 6.4% from the previous year, although newly listed homes were only at 2,655, which was down 5.3% year-over-year.

Even with those statistics on housing supply, the state is still experiencing a shortage in housing. There has been a steady growth in housing demand, so much so that the League of Wisconsin Municipalities predicts that 200,000 housing units need to be built by 2030 to accommodate all the people who want to live in Wisconsin due to increased demand.

Population Growth

The United States Census Bureau recorded that Wisconsin had a total population of 5.894 million in 2020, which saw a slight increase to 5.931 million by early 2025. It shows competitive market trends throughout the year, and potentially a modest growth in rental demand. Of course, the median household income is just as important to assess housing affordability.

Employment Rates and Income

The Wisconsin Department of Workforce Development projects that the state will "create 82,867 new jobs, growing by 2.47% across all industries." Job growth can lead to investors affording mortgage rates as they can pay at a more sustainable pace, depending on the home prices in the housing market.

In 2023, the median income per household is at $74,631 and has since dropped in the past year to $72,458. On the bright side, the unemployment rate has gone down to 2.9% by November 2024 compared to 3.4% in November 2023, which can help lighten the weight of inflation in the housing market.

Property Taxes

The property tax rate in Wisconsin is among the highest in the US with a 1.59% rate. It is the 8th highest out of all the states. "In 2024, the combined property tax rate is $22.93 per $1,000 of assessed value," the Milwaukee Journal Sentinel reports. The tax rate has, however, gone down by $0.70 from the previous year.

Despite the high tax rates, Milwaukee remains one of the best locations for real estate investing given that the business sector is looking promising. With rental businesses, smooth operations can easily offset tax costs.

What Can Home Buyers Do?

Monitor the Housing Market: Monitoring the market for price drops can help you save a lot. While market trends show that home prices have been increasing in the past few years, you might find the right property for your investment goals by executing with precise timing.

Consult Professionals: Consulting experts in the field like real estate agents can give you proper insight into market dynamics to help you make informed decisions before making a huge purchase.

Compare Prices: The median price for Wisconsin homes is around $301,659, which has seen a steady increase year-over-year. Check for key factors factors influencing your decision such as rent-readiness or repairs needed.

Long-Term Considerations: Wisconsin is a promising place to purchase real estate, especially rental properties. Consider the long-term potential of the market and not just the year ahead, especially if you intend to keep the property for a while.

What Can Home Sellers Do?

Be Flexible: High interest rates have deterred homebuyers from purchasing properties in 2023, but inflation has since stabilized since then. That's not to say that you shouldn't be flexible. Adjust your pricing strategy based on purchasing power to attract buyers.

Watch Out for Current Trends: Knowing the current economic state lets you set prices right for potential homebuyers looking for new housing. Check whether there is a high demand for housing or if a low interest rate is justified.

Regional Market Analysis: Since the housing market is not uniform across Wisconsin, it's important to analyze particular regions to determine whether there are growths or declines in numbers that can affect your sales.

Prepare the Property: You have to check several factors such as safety and habitability to ensure that you won't run into legal problems. Improving curb appeal could also help you get multiple offers from more buyers.

Need Any Help?

Matters in the housing industry are complex, and the right expertise can lead to the most profitable or cost-effective outcome for you. Hiring or consulting real estate professionals is in your best interest. Performance Asset Management can help you with that, and more. Contact us now and we can guide you through the process of purchasing or selling real estate properties!

More Resources:

• Myths About Rental Property Pricing in Milwaukee, WI
• Real Estate Asset Management Best Practices That Put Money In Your Pocket

Advantages of Self-Managing Rental Properties

Cost Savings

You won't have to pay property management fees and this can go towards your profit margins, helping you maintain your cash flow and save money. Depending on the arrangement of the property management company, monthly fees can go between 8% to 12% of the rental income.

Direct Control

Considered one of the primary advantages of self-management, you have full control over all the aspects of your rental property such as collecting rent, overseeing maintenance requests, tenant screening and selection, and monthly rent increase. With greater control, you can make all the decisions about the operations of your rental property.

Direct Tenant Communication

One of the biggest differences between self-management vs property management services is that you get to communicate with your tenants more directly about property management tasks like rent collection and handling maintenance issues. You can be more lenient in certain circumstances like late rent payments, which can help with tenant satisfaction.

Experience

Self-managing your rental properties allows you to gain needed experience as a property owner, especially if you have plans for expanding your portfolio in real estate investing. A hands-on approach can give you the most knowledge about the rental industry, which is essential for making informed decisions.

Assurance

Although it's easy to find a reliable property management company to manage your rental property, self-management means that you are 100% sure about every decision since you make it. You won't have to wonder how a property manager enforces lease terms or handles tenant selection, which leaves no room for doubt.

Disadvantages of Self-Managing Rental Properties

Lack of Experience

Self-managing properties is not an easy task, especially since effective property management is crucial to making your business thrive. If it's your first property, you might not know everything you need to as a property owner, which can make your profitability suffer and discourage potential tenants.

Legal Issues

A property manager needs to know about all landlord-tenant laws and building laws for legal compliance. While consulting a lawyer is an option, it can quickly become tedious to do so for every decision that needs a professional's advice for legal compliance. A property management company will already know every state and local law they need to abide by like fair housing laws.

Time-Consuming

Self-management will take a lot out of your schedule since rental property management is a full-time job. A self-managing landlord will have to oversee everything such as screening tenants, timely rent collection, financial management, enforcing lease agreements, handling tenant disputes and lease violations, regular maintenance, and more.

Limited Scalability

Since self-managing a rental property can take a lot out of your time, you might not be able to expand your real estate portfolio since you would be spread too thin with all the responsibilities. By hiring a property manager to handle day-to-day operations, you can expand your portfolio without having too much on your plate.

Marketing Difficulties

Without the right knowledge of the rental market and property marketing strategies, you might not be able to find quality tenants for your rental. Paying property management fees can be very well worth it if it means that you'll significantly reduce your vacancy rate, which trumps the potential cost savings from self-managing.

Factors to Consider When Choosing Professional Property Management

Experience and Expertise

Finding an experienced property manager is necessary since their track record can tell you a lot about how they can handle your business. Check how many properties they are currently overseeing and how many years they have been operating in the industry. Companies usually include these details in their websites.

Services Offered

The point of hiring a property manager is for them to take over the aspects of the business you cannot do. Ensure that the company has a comprehensive range of services based on your needs such as marketing, tenant screening, rent collection, maintenance, accounting, eviction, and more.

Tools

A property management company usually has tools that can help streamline tasks. Inquire whether they utilize certain technologies like property management software, tenant portals, and payment apps. This has become more crucial in the modern age where tenants find convenience in digital platforms.

Reviews and References

You can now check ratings and reviews from customers on third-party sites to ensure that they are genuine, which can provide you with insights into the company's services aside from the details they publish online. You can even get direct references from their clients if they're from the same location as you.

Insurance and Licensing

Verify whether the company has a team of employees who are insured and licensed for the tasks they need to perform. It can spell legal trouble for you if they don’t, and it also proves that they have the expertise to oversee certain aspects of your business.

Hiring Performance Asset Management for Property Management

Our company offers one of the best property management services in Wisconsin, backed by 16 years of experience and more than a thousand five-star reviews. We will ensure that you get the most profit you can out of your investment as we oversee its day-to-day operations.

You can expect that we are up-to-date with the current technologies that streamline property management operations, and you can rest easy that your business is in good hands. While we do our best to maximize your property value, you can explore other business opportunities and expand your rental portfolio!

Contact us now so we can help you with your rental business journey. You won't even have to commit just yet, as you can schedule a free consultation to determine whether we're the right fit for your needs.

More Resources:

• Performance Asset Management Earns the Award for Best Property Management in Milwaukee for 2024
• How Property Management Can Help You Protect Your Investment

Mistakes You Should Avoid as a Landlord

Lenient Tenant Screening Process

Conducting tenant screening ensures that your applicants will pay rent on time, maintain their rental unit, and follow all the rules in the lease agreement. Make sure you don't skip certain criteria like credit and background checks, criminal history, employment verification, eviction history, calling former landlords, and so on. By being thorough, you will avoid potential tenant disputes down the road.

Ineffective Marketing

One of the mistakes landlords make is marketing aimlessly. Just because you release advertisements or listings, doesn't mean it will reach your target audience. You have to research the current rental demand, the rental market, and who your target tenants are to reach prospective tenants.

Unrealistic Rent Pricing

Knowing the value of rental property allows you to set your rental price right, but you also have to consider other factors like rental demand and your competition. If other rental properties offer lower prices for practically the same rental space, potential tenants would opt for other listings. 

Having a professional conduct a rental market analysis can benefit you significantly in this regard. We offer a rental analysis tool that you can take advantage of right here on our website.

Poor Communication

Simply communicating with your tenants does not automatically mean you have good communication with them. Sometimes it goes beyond being polite when you enforce lease terms. Sometimes it could be in the form of being considerate with unexpected repairs or maintenance issues.

Not Keeping Records

From rent payments to routine maintenance costs, you have to keep records for various reasons. New property owners might keep basic records like the rental agreement, but one of the most common mistakes landlords make is discarding inspection reports, receipts for late fees, records of property taxes, and so on. These documents can help set the record straight in the event of a dispute.

Refusing Management Assistance

This is especially true for new landlords. Managing your rental property is no easy task, and if you have no prior experience, you might end up being overwhelmed. Hiring a property management company to oversee your rental property can help you learn the ropes before taking on the tasks yourself.

Hiring the First Property Manager You Find

There are a lot of property management companies out there, and many landlords choose to opt for assistance to earn passive income. However, you have to research your choices of property managers first. Performance Asset Management, for instance, is a professional property management company with 15 years of experience that can help increase the monthly rental income of your investment property.

Drafting a Poorly Written Lease Agreement

The contents of your lease agreement lay out the rules and conditions your tenants will agree to. A non-comprehensive rental agreement can eventually lead to disputes or legal issues. Landlord mistakes you have to avoid range from excluding terms for the security deposit to property maintenance for the rental unit.

Not Knowing Your Laws

Being knowledgeable about landlord-tenant law contributes to being a successful landlord. Whether it's local or federal laws, knowing about things like tenant rights and eviction rules can help you prevent running into legal trouble. If you feel like such information is too complicated, you can always consult a lawyer or hire a professional to handle this aspect of the business.

Ignoring Rental Market Trends

The current rental market condition greatly affects your rental units. If the landlord fails to acknowledge factors like the average household income or increasing home construction costs, their property will suffer the consequences which could lead to lower cash flow.

Failing to Diversify Your Investments

Investing big on just one property can be risky. If the business doesn't do as well as you hoped, you won't be able to rely on income sources. If you're a new landlord, invest in a property you know you can finance, and diversify your investment portfolio once you can do so. if you're not sure when the right time is to invest in another property, you can always consult a real estate professional.

Having an Unclear Exit Strategy

Once you decide that you finally want to exit the rental business, you need to have a clear plan for selling or refinancing your investment properties. This will help you achieve your long-term financial goals, and not creating one might lead to you selling the property for a lower amount than its purchase price.

FAQs for New Landlords

What are the landlord-tenant laws I should know in my location?

There are trusted government sites online that you can browse to learn about the local laws you have to consider. When in doubt, you can always reach out to a property manager like us or a lawyer to guide you through your decisions.

Do I need a rental license in Milwaukee?

Yes, and there are requirements to get one. In Milwaukee, there are certain requirements landlords need to achieve before renting their property out such as passing inspections, as well as meeting local health and safety regulations. These are a few of the steps to take before you can obtain a rental license.

What are the responsibilities of a landlord?

The extensive responsibilities landlords have to fulfill include screening tenants, rent collection, property maintenance, addressing maintenance issues, and complying with laws regarding rentals. Landlords have the option of hiring a property manager to oversee all of it.

What should I include in my lease agreement?

The basics are monthly rent price, lease term, security deposit, maintenance responsibilities, and consequences of lease violations. If you have specific terms for your property, you should also add them to the lease, provided that they comply with the laws.

With the Help of Property Management Companies

If you're a new landlord, you might be more prone to common mistakes that experienced landlords and experts won't make. Being new to the rental industry can be hard, which is why many landlords opt for help from property management companies like Performance Asset Management.

We offer services from conducting tenant screening to handling the eviction process when needed. Not only will you earn passive income, but you'll also be able to focus on other business opportunities. You can contact us now to learn more about how you can reach your investment's maximum potential.

More Resources:

• Why Should I Look Into Hiring a Property Manager in Milwaukee, WI?
• How Property Management Can Help You Protect Your Investment

There are several steps you can take to make sure that your tenants both finish their lease terms and renew their leases. Read on to learn more about these best practices to improve your relationships with your ever-important clientele.

Ways to Increase Tenant Retention

Meticulous Tenant Screening

Property owners need to screen their tenants thoroughly to ensure that they will rent to people who are capable and compliant with making timely rent payments, following the rules of the lease, and taking proper care of the rental unit. You can use criteria like credit score, employment verification, eviction history, criminal background, debt-to-income ratio, and more.

Fair Lease Agreements

Having a fair lease agreement will boost tenant retention since renters want to stay in a rental property that values its occupants and ensures they are treated well. Write clear agreements to avoid misunderstandings and avoid including unreasonable terms to keep tenants satisfied. Fair terms and rules actively encourages tenant loyalty.

Excellent Tenant Communication

Having an open-door policy in your relationship with your tenants is essential to enhancing tenant retention. Keeping an open line for addressing maintenance requests promptly and keeping tenants informed about pertinent matters will positively affect tenant satisfaction. This alone can encourage lease renewals from tenants.

Lease Renewal Incentives

It can significantly reduce the tenant turnover rates for your property if you offer lease renewal incentives. These incentives also boost your rental business through word-of-mouth marketing when current tenants tell prospective tenants about the benefits. Some of the most common incentives include rent discounts, cash gifts, or discounted parking.

Property Upgrades

Upgrading your rental with sleek, modern amenities helps with both tenant retention and making your property more enticing. Enhancing the living experience in your units even allows you to raise your rental rates justifiably. 

It’s always a good idea to get tenant feedback too! Conducting a survey on what kind of improvements your tenants would like to see is a fast track towards making them feel valued.

Payment Options

One of the most basic tenant retention strategies involves making their lives more convenient by offering flexible rent payment options. Modern tenants expect digital convenience, which is why accepting online rent payments can enhance tenant satisfaction and reduce frequent tenant turnover.

Maintenance and Repairs

Successful property management will go a long way in tenant retention, which includes responding to property maintenance requests and repairs promptly and efficiently. This can establish a good reputation for your business, which is crucial in a competitive rental market.

Tenant Feedback

Your tenants feel valued if their suggestions are genuinely considered. This starts with assessing tenant satisfaction by asking for direct feedback. This helps you gain insight into things like property upkeep, thoughts on rental rates or leasing fees, or general property management. It vastly contributes to your strategies for resident satisfaction, which leads to retaining tenants.

Flexible Lease Terms

Not all tenants have the same needs. Some may need a more long-term residence while others need shorter duration stays. Having flexible lease terms may seem counterproductive, but this can widen your tenant pool, which means you'll have lower vacancy rates.

Positive Community

Creating a positive community where tenants can interact with each other comfortably is a good way to keep them from finding it elsewhere. You can achieve this by providing a place for them to mingle like common rooms, or hosting events during special occasions or holidays.

Extra Effort

Property managers can go the extra mile by making small gestures like providing gifts during holidays or communicating with tenants outside of business. Renters will perceive you as an approachable landlord, and they will be more open to relaying tenant inquiries which can ultimately help your business.

What Happens When You Have a High Turnover Rate?

Since tenant retention rates affect rental income, your business will start to suffer when you’re constantly dealing with turnovers and vacancy. Some property owners solve this issue by themselves, but you may need to consult the experts. Once your portfolio hits a certain size, property management becomes a necessary investment for most landlords.

Why is Tenant Retention Important?

Tenant retention creates a more stable rental income first and foremost. It also minimizes the costs that come with finding a new tenant such as creating rental listings, marketing, and tenant screening. Another overlooked factor is how retaining tenants can solidify your reputation as a landlord. High retention rates show prospective tenants that your property is a good choice for long-term stays.

How Are Tenant Retention Rates Calculated?

The formula for tenant retention rates is (Number of Lease Renewals ÷ Total Number of Tenants at the Term Beginning) x 100. The average tenant retention rate is at 48%, but going under 60% is considered too low. If you're having trouble with this matter, you could try hiring property managers who already have experience in the field.

Can Local Market Conditions Affect My Retention Rate?

Yes. Landlords sometimes need to make rent increases to keep the business afloat, and some tenants may have no choice but to opt for cheaper options no matter how much they want to stay. There's not much you can do in this regard, but following good tenant retention practices will reduce the likelihood of this happening.

How Professional Property Management Can Help You

A lot of thought and effort goes into retaining tenants. You sometimes need to go above and beyond your standard management duties as a landlord, and that can be taxing in the long run. Fortunately, there are experts out there who can do all the heavy lifting for you.

Property management companies like us at Performance Asset Management have the expertise to handle the day-to-day operations of your rental business, as well as handle unexpected circumstances like tenant turnover. Contact us any time for a free consultation with our investor-focused team! 

More Resources:

• Creative Rental Leasing Strategies to Reduce Vacancies in Milwaukee
• What Tenants Look For in Milwaukee Rental Properties

Quality Business Awards 2024: The Best Property Management in Milwaukee

Quality Business Awards USA is among the most prestigious recognitions a business can achieve. Less than 1% of registered businesses in the USA achieve this award, which recipients can wear as a badge of honor and excellence. 

To earn the title, businesses of great caliber need to reach an overall quality score of 95% or greater on Quality Business Awards’ internal scale, which is not easy to achieve in any industry. It also requires exceptional customer reviews and a good reputation on more than three platforms.

Through meeting all of these criteria, our team was able to earn this prestigious title for 2024 thanks to the feedback from our clients all over Milwaukee.

The Best Property Management Service in Milwaukee

Performance Asset Management has 15 years of experience managing over 600 rental units. Our performance is reflected in more than 1,000 five-star customer reviews, and we intend to maintain and surpass the quality of work we provide our customers.

Our core values paved the way for this distinction. We believe in transparency by communicating with our clients and partners openly to build trust. We treat the rental properties we handle like our own to create a comfortable environment for tenants, and we believe that clear communication is a crucial aspect of property management.

Services That Have Built Client Trust

Marketing

Our company can create effective marketing campaigns with the help of our dedicated leasing specialists, using data-driven insights brought by rental market analysis. We try to make your listings as appealing as possible using professional photos and video tours. In the modern age, we make sure that your rental business gets the online advertising exposure it deserves.

Resident Screening

We meticulously screen tenants so you can get the best residents for your rental. We use several criteria in the screening process such as credit checks, criminal history checks, 24 months of 3rd party verified rent payments, monthly income, employment verification, eviction history, and debt-to-income ratio.

Rent Collection

Performance Asset Management has an in-house online portal that can be accessed by landlords and tenants 24/7, providing accessibility and convenience. We make sure you get paid on time and if a tenant is late on rent, we will do our best to assist both parties to resolve the issue.

Maintenance

To retain and increase the value of your property, we conduct regular maintenance and property inspections. We have access to a network of vendors, and our long-term relationships allow for lower maintenance costs than the market rate. With a 24/7 portal, we can respond to both maintenance requests and emergencies as quickly as we can.

Accounting

We understand that dealing with financials can be complicated, considering all the laws, processes, and industry jargon you’ll encounter. Our property managers can take care of that for you and provide you with tax statements and 1099s, as well as summary owner statements on an annual basis.

Eviction

Even with thorough screening, tenant eviction is still a possibility. If so, we can handle the entire eviction process which may take weeks or months to complete. You won’t have to worry about issuing notices, prosecuting actions, recovering possessions and amounts due. We even cover legal costs associated with eviction if we signed the tenant.

We Appreciate the Recognition!

This award helps consolidate our standing in the property management industry, as well as build a stronger brand presence in Milwaukee. It serves as validation for all the work we have done for our clients, and we appreciate the acknowledgment that this presents. Performance Asset Management will continue to provide the level of quality service that granted us this award and help real estate investors thrive in the rental industry.

To learn more about how you can also receive the best property management in Milwaukee for your rental property, visit our Milwaukee Property Management Services Page to receive a free rental analysis and explore our superior packages on offer!

Advantages of a Furnished Rental

Higher Rent Price

Furnishing a rental property allows you to increase your rent price due to the added appeal of the unit, as well as the convenience. Just make sure that you still price fairly so prospective tenants won't choose other cheaper furnished rentals over yours.

Reduced Vacancy and Faster Tenant Turnover

Furnished rentals attract a wider range of tenants, especially for people who don't have their own furniture and appliances. You'll mostly find more tenants during peak seasons, but having a furnished property will only help your chances even when it's not. Once furnished units become vacant, you can fill them more quickly as well.

Tax Benefits

One of the perks of renting out a furnished rental is the tax deductions you can get. The money you spend on appliances or furniture can be claimed as tax deductions since they are technically used for business, which reduces upfront costs.

Disadvantages of a Furnished Rental

Higher Upfront Costs

One of the furnished rental pros is that they can be claimed as tax deductions, but it doesn't change the fact that you will have to spend more to spruce your rental unit up. A fully furnished property will cost you significantly more initially as opposed to a bare or unfurnished rental.

Replacement and Maintenance Costs

Property owners are responsible for maintaining the furnishings in their rental and repairing appliances when needed. This adds to the costs they have to shoulder. With unfurnished rental properties, tenants have to maintain and repair their own belongings. You can always hire a professional property manager to ensure that your investment property is maintained diligently.

Potential Damage or Theft

One of the biggest downsides to furnished rentals is the possibility of having your furniture and appliances damaged, or worse, stolen. Apart from normal wear and tear, reckless tenants might damage objects in the rental home, and you'll have to either charge them or deduct the costs from their security deposit.

Depreciation

Furnished rental properties tend to be more expensive when you sell them, but furniture will reduce in value over time. That's especially true for appliances, wherein new models come out often and old ones become outdated quickly.

Things to Consider When Furnishing Your Rental

Initial Investment

As mentioned before, property owners have to be ready for the higher cost of a fully furnished rental property. You can budget your costs by looking into the price of the appliances and furniture you might want to add, so you don't spend more than you can quickly earn back.

What to Include

Think about what you might want to include in your unit. You can and should look at what other furnished rentals in your area provide. Most include the basics like a couch, a dining room table, and a bed. You can opt for a semi-furnished rental for now and add more things later on as opposed to keeping the property unfurnished.

Rental Type

Consider whether it's a long-term or short-term rental. Long-term furnished rentals offer different things like laundry facilities. You should avoid adding objects that are easy to steal with short-term rentals. While it doesn't happen often, it can still be a problem. Especially with renters who don't have a long-term commitment.

Maintenance Responsibilities

One of your jobs as the property owner is ensuring all furnishings are in good condition. This can become tedious quickly, especially if you have multiple properties. If that’s the case, property management is a must for your rental business to succeed.

Charging Higher Security Deposit Amounts

Depending on whether you have semi or fully-furnished rental properties, you should increase your required security deposit amount. Just be sure to still abide by local laws. For instance, you can charge up to two months' rent for a furnished apartment.

Rental Market

Check the demand for fully furnished rentals in your area before you commit to the idea. There are locations where tenants would prefer to have the property furnished themselves, while others would prefer renting a furnished unit to avoid having to purchase furniture themselves.

Communication Channels

You need to be prepared to respond to maintenance requests from your tenants when needed. Unlike unfurnished properties, you are also responsible not just for the unit itself but for the appliances and furniture inside. Some hire property managers so tenants can reach out 24/7 for emergencies without you needing to be on call.

Furnished Rentals FAQs

What costs should I expect?

Other than the costs of the appliances and furniture itself, you have to be prepared for ongoing costs like maintenance, cleaning, and replacement of items.

How often should I replace appliances and furniture?

That will depend on the quality of the items you purchase for your rental properties. You'll have less trouble will fully furnished apartments when you invest in high-quality, dependable brands.

What's in a semi-furnished apartment?

You can add major appliances like a refrigerator, a stove, and a microwave. As for furniture, the basics include a couch, a bed, light fixtures, a table, chairs, and a few decorations.

Will unfurnished rentals still attract tenants?

Yes, unfurnished rentals will still attract tenants. If you market your unfurnished property right, you can reach a target audience looking for a place they can fill with their preferred appliances and furniture. If you're unsure how to do that, you can hire a property management company like Performance Asset Management to market your property for you.

Hiring a Performance Asset Management For Your Rental Business

Whether you have furnished or unfurnished units, you might benefit from professional property management, especially with the added element of maintaining rental furnishings. Even the smallest aspect like fast responses to maintenance requests can contribute to increasing your rental income.

With better rental management, you'll also gain a better reputation for prospective renters and attract long-term tenants. Unsure if it's the right move? You can consult us for free, and we'll tell you about the services we have to offer to maximize your property's value.

More Resources:

• Milwaukee Rental Property Inspections: How Often Should They Be Done?
• Legal and Optional Tenant Maintenance Responsibilities

You can optimize your online rental listings through various digital marketing strategies such as advertising on social media platforms, working on your web design, and following digital marketing practices that real estate companies use. Not sure how to accomplish all of this? We’ve got you covered with some common strategies for success.

Rental Real Estate Digital Marketing Tips

Creating a Rental Listing Online

Several rental listing sites, such as Zillow, Trulia, Craigslist, and even the Facebook marketplace, can boost your rental properties' exposure. Unlike advertisements for a real estate business, rental property marketing needs more in-depth information catered toward prospective tenants.

Listing everything your rental units offer gives you a competitive edge, and it's a basic digital marketing strategy other landlords will follow so they show up in online searches from potential renters. Be sure to highlight the best amenities for new clients to showcase the unique appeal of living on your property.

Utilize Social Media Platforms

Online real estate rental listings might not be enough to attract tenants. Establishing your business' brand identity through social media marketing is just as important given that over 500,000 people in Milwaukee use them and many are actively searching for rentals.

Share engaging media and relevant content like images and videos on social media channels like Facebook, especially during peak rental season. Make sure to use high-quality photo and video content of your properties. You can use real estate projects on the websites of real estate companies as a reference for your rental property marketing.

Email Marketing

You can take a more direct approach through email marketing by presenting your rental business to a list of interested and potential tenants. This can take the form of newsletters, property updates, special offers, and other digital marketing materials for your rental property.

You'll have to conduct proper real estate market research to determine who the appropriate target audience is. Some companies like us at Performance Asset Management offer services for professional rental market analysis and resources for online advertising exposure.

Search Engine Optimization (SEO)

Search engine optimization practices have become relevant over the years, especially in content marketing. Creating engaging content is no longer enough. You need to ensure that you use the right keywords and meta descriptions to increase your content's visibility in a search engine.

Optimizing your online listings and websites requires expertise. Hiring content writers with knowledge of local SEO, listing sites, digital marketing, and the real estate industry could be your best option for a comprehensive marketing strategy for your rental properties to rank higher than competitors.

Virtual Tours

You can now create a virtual tour of your rental property through cutting-edge technology, allowing prospective tenants to view the rental listing remotely. There are plenty of rental properties that already offer virtual tours, especially tech-savvy real estate firms in the rental market.

This digital marketing strategy can attract potential clients who are planning to move to your location and cannot see the properties in person during an open house. The technological aspect of this method could even impress potential customers and help you find new tenants.

Tracking and Analyzing Results

Analyzing the metrics of your rental property marketing efforts can help you make improvements for your next campaign and stay informed. While property owners can do this themselves, it's better to consult people who know their way around online marketing strategies.

After analyzing the results in platforms like Google Analytics or Facebook's built-in analytics, you can initiate more data-driven digital marketing on rental sites and social media. This step is a crucial component in the overall social media management process, as it tracks how well your efforts are working.

What to Include in Your Digital Real Estate Marketing Materials

Rental Property Description

Provide a detailed description of your rental property such as the floor plan, the square footage, the location, the community, and other digital marketing essentials. Prospective tenants pay more attention to rental properties with complete information on rental sites.

Right Rent Price

Your digital marketing campaign is incomplete without adding a competitive rent price to your property listings, and you can do this by researching local market conditions. You can consult a real estate agent or a property management company for useful insights into digital marketing and rental comps.

Amenities

Amenities can help you both retain tenants and attract potential tenants. Including things you can offer like laundry facilities or a gym in your rental listing will help you market your property better, especially if you list the essential amenities tenants usually look for.

Lease Term

Applicants have various tenancy duration needs. Someone who only intends to rent your unit for a short amount of time will be deterred by a contract with a year-long lease term. Adding this detail can help your property listings reach the right audience for real estate digital marketing.

High-Quality Photos and Videos

Not only will this show renters that your rental is well-established, but potential tenants will also have a better look at your unit, which helps with lead generation and overall real estate marketing content. In a competitive market, a blurry photo can be the difference between two listings with the same offers.

Proven Strategies That Can Attract Future Tenants

Positive Online Reviews

As important as having a curated digital footprint is, it's also essential for a business to have positive reviews from outside sources such as existing clients and potential renters. You can include this in your website, social media platforms, and newsletters to increase tenant interest.

Using Personal Connections

It's a good idea to call in favors from your network to help market your property effectively. A personal connection with a real estate company, for instance, may provide you with insights into real estate marketing concepts and how you can rank high in search engines.

Creating Ads

One of the most common online strategies real estate businesses use is advertising, particularly paid and targeted ads for social media marketing. After analyzing market trends, you can direct paid ads to certain demographics to reach your target audience.

One upside to this is that you won't need to optimize your content much for visibility since the platform will boost it for you. However, effective strategies call for doing so anyway so it will rank whether it's organic content or not.

Word of Mouth Referrals

While rent signs and an online presence can immensely help you with the future success of your rental property, referrals from quality tenants and real estate agents have the most impact. Tenants tend to trust referrals more than other real estate marketing methods and it helps establish credibility for your rental listing.

A Property Management Company Pushing You to Success

Digital marketing is essential as it helps you find renters for your properties through tailored strategies. Performance Asset Management can optimize your digital marketing materials, all while effectively advertising your rental properties to the right audience.

Apart from the marketing efforts, we also offer services for what comes after such as the tenant screening process so you can get great tenants, and other day-to-day responsibilities a landlord has to do. Feel free to consult with us for free about how you can maximize your investment through rental marketing.

So the question is, what are tenants looking for in Milwaukee? 

Factors Tenants Will Consider

Location

The address of your rental unit determines whether it's an appropriate home for your target demographic. Families might prefer safe neighborhoods to avoid break-ins and young professionals might look for rental properties that provide more public transportation options.

While this isn't something you have control over, it can help you narrow down the best target market. If your apartment is located near a college, then marketing your space to students would make more sense. Indicating its proximity to a significant location could help with search results.

Property Condition

Having a rental property in good condition will certainly increase your chances of getting more tenants. You can conduct regular rental inspections to find maintenance or repair issues you can tend to. Refer to a move-in checklist when a new tenant rents your unit, which often urges you to look into the following:

• HVAC System
• Smoke Alarms
• Water Damage
• Plumbing
• Electrical System
• Structural Integrity

You may do the inspection yourself, but it’s preferable to hire professionals for better insight. Companies like Performance Asset Management, for instance, have the expertise to handle the routine work and maintain the apartment or rental home's condition.

Fair Lease Agreement

The lease agreement your tenant signs contains rules and policies they have to follow. While applicants typically agree to standard terms, having strict conditions will deter renters and increase your vacancy rate.

When you choose to have a pet-friendly rental business, implement a reasonable pet policy for your tenants. Create adaptable lease terms to boost tenant applications as well as reduce early lease terminations.

Rent Payments and Other Fees

Your rent price should be based on the current market conditions and the competition, which is why the input of an industry expert like a property manager can greatly help you attract tenants to your rental property. Other than rent payments, you should also price other fees accordingly.

For example, Wisconsin law states that landlords can only charge a maximum of one month's rent for a security deposit on an unfurnished unit. Charging more will deter tenants and get you in legal trouble, ultimately costing you more.

Depending on your lease agreement, a security deposit can help tenants pay for past due rent, cost for property damage, and other potential bills. Consider the budget that your target renters have as well as the overall value of your property when setting rent prices and rental fees.

Amenities

Amenities such as laundry facilities and parking can bring necessity, comfort, and convenience. Plus, they all contribute to the overall appeal of your rental property. Some of the amenities or utilities you might want to offer include:

• Parking Spots
• Laundry Facilities
• Gyms
• Patios
• Cooking Utilities
• Dishwashers

Size and Layout

The size of a rental home can also be a defining factor in whether applicants will consider your listings. They might prefer an open floor plan for a more spacious room, or a smaller apartment to make it easier to maintain. Even the placement of the windows can appeal to an applicant for lighting and views.

Payment Methods

Having multiple payment methods can be convenient for your tenants. You can use third-party online platforms or create one of your own, although you will always have to ensure that it is functioning correctly, and that might need a certain level of tech-savviness.

It would be easier to use existing apps and software, or at least hire a property management company like Performance Asset Management that uses an in-house online resident portal where renters can pay 24/7.

Communication

Landlords or property managers should establish a good relationship with tenants renting the properties they manage. It can contribute to smoother business operations since tenants can immediately alert them about maintenance issues or the need for repairs.

Making tenants your top priority can improve their rental experience, and that leads to your business getting a better reputation in the rental market. This in turn will give your listings an advantage. Lack of or bad tenant communication can lead to them terminating their lease early.

Rental Listing FAQs for Landlords

What do tenants usually look for in rentals?

Some of the most common factors tenants look for include rent price, size of the rental home, lease term, location, space, and amenities. It helps if your property is in a safe neighborhood since renters value their safety.

How to make my apartments stand out from other listings?

Other than providing amenities that competitors don't, ensure that the rental stays in the best condition. This can be achieved through regular rental inspections, making repairs when needed, and checking safety measures like smoke detectors.

Highlight advantages like parking availability or being located in a protected neighborhood. This can help your listing rank higher on rental websites, and you'll have no problems with renting apartment units or houses out.

How often should I inspect my rental?

A landlord should conduct inspections before they ask the tenant to sign the lease. It would be advisable to refer to a move-in checklist to ensure that you don't miss anything. You may do so again about a month into a tenancy, but make sure the renter is home to respect their privacy.

What should I include in my listings?

A landlord should include details like lease terms, rent cost, amenities, property description, pet policies, and square footage. You can always include more as it helps with search results and applicants can make an informed decision before renting the unit out. Make sure you have high-quality photos and videos to make your listing stand out!

How You Can Benefit from Property Management

As the landlord, you have endless responsibilities. Other than the day-to-day tasks that a rental business demands, you also have to worry about marketing your properties to reduce vacancy. To do so effectively, you must have a good understanding of the rental market.

Companies like Performance Asset Management possess the necessary expertise to navigate the rental industry, which is what a well-rounded decision requires. You can get your free rental analysis now, and we can help you protect your investment by maximizing your property's value.

Struggling to keep up with Milwaukee’s dynamic market? We’ve got you covered with some expert advice on marketing your rental property!

How to Market Your Rental Properties

Create a Compelling Description

One of the first things potential tenants see is the description of your rental listing, and the best way to get their interest is to include attention-grabbing headlines, listing the property's appeal, and adding relevant keywords.

Don't forget to include all the necessary details such as the size of the property, its location, local traffic, its condition, how many tenants it can hold, and the amenities it has. For instance, amenities that are important to Milwaukee renters include air conditioning, parking, and in-unit laundry.

Pricing Your Rental Properties Right

Competitive pricing for your rental properties will help you find tenants faster, and you can set the right price by researching the local market. You should ensure that your rental price is low enough to fill vacancies quickly, but high enough to still be profitable. You can use Performance Asset Management’s ROI Calculator to determine the right balance. 

Word-of-Mouth Marketing

You can encourage word-of-mouth referrals through your tenants in exchange for incentives like rent discounts or gift cards. You won't even need to convince people that you're a kind and considerate landlord, as your tenants can recommend your rental listings themselves.

This will be a more trusted form of advertising for your rental units since your own tenants are vouching for your business. In a study by Neilsen, 88% of global survey respondents say they trust recommendations from people they know more than other channels.

Local Advertising

You can find prospective tenants through local advertising, especially in places where locals usually spend time such as online newspaper ads or rent signs. To expand your marketing efforts, you can hire Milwaukee property management companies like Performance Asset Management.

We include rental marketing as part of our service to help you attract tenants for your property. You will have access to:

• A Dedicated Leasing Specialist
• Professional Rental Market Analysis
• High-Quality Photos and Video Tours
• Online Advertising Exposure

Hiring a professional can be a more cost-effective method since they will already know the right marketing strategy for your property. While it's attainable, doing it yourself without the right real estate market expertise might lead to an ineffective marketing campaign.

Digital Advertising

In our digital world, people are now looking for good rental listings through multiple websites online. Popular online platforms include Zillow, Craigslist, Trulia, and even Facebook marketplace. Don't underestimate the influence of social media in rental content marketing.

It'll also be easier to manage online listings since interested renters will reach out to you through the same platform. With a convenient channel, you can attend to more potential clients for your property.

Host an Open House

Open houses are a popular marketing strategy in the real estate industry since photos aren't as reliable as seeing the rental unit in person. This gives you the chance to meet a relevant audience in person. The responsibilities you'll have are:

• Making the rental property presentable
• Providing refreshments for potential clients
• Hosting a tour of the premises
• Answering questions about the rental listing or other rentals

The Importance of Properly Marketing Your Rental Properties

• In a competitive rent market, your rental listings must be more visible as it is a crucial aspect of filling vacancies
• Effective marketing will ensure that you reach your target audience and attract quality tenants
• The more tenants pay rent, the more income will come your way, and you'll be able to expand your investment portfolio

Screening Prospective Tenants for Your Rental Property

After your marketing ideas help you attract tenants for your property listings, you'll have to go through a meticulous tenant screening process to ensure you have high-quality tenants. While it can be a tedious task, it has long-term benefits such as helping you retain tenants and garner lease renewals. You can hire a property management company to handle tenant screening for you. Performance Asset Management looks into factors like:

• Credit Check
• Criminal History Check
• 24 Months of 3rd Party Verified Rent Payments
• Net Monthly Income
• Employment Verification
• Debt-to-Income Ratios
• Eviction History Check

Rental Property Marketing FAQs

What are the most effective channels for rental marketing?

• With the popularity of social media and online rental hunting, you should opt for dedicated platforms that offer listings that are optimized for rental properties like Zillow.

What should I include in my listings?

• Some of the important information you need to include is the property's price for a month's rent, size, occupancy, location, and up-to-date condition. You can survey your current tenants on what they like about your rental property and include that in the marketing materials.

Why should I screen my tenants?

• Screening new tenants will ensure that they are the best tenants for your property. If a prospective renter has a history of not paying rent on time, for instance, then you might save yourself from future problems by refusing to rent your unit to them.

When is the best time to market your rentals?

• That can depend on the current market conditions, although the best period for marketing is generally spring and summer since both are peak rental seasons.

Should You Hire a Property Manager Instead?

The marketing aspect of the rental business alone is already stressful enough, and the real day-to-day work happens after that. You can still earn steady rental income as you sit back by hiring a property manager to do all the work. Performance Asset Management can handle tasks like:

• Rental Marketing
• Tenant Screening
• Rent Collection
• Maintenance
• Financial Reporting
• Eviction Protection

Before hiring a property manager, you can schedule a free consultation with us to determine if we're the right fit. We have a Vacancy Loss Calculator to help you find out if your business is still profitable, and if you need a marketing campaign now more than ever. 

Eviction Process for Squatters in Milwaukee

Initiate the Eviction

To begin the process for eviction, you need to establish that the occupant is squatting on the premises as opposed to tenants who have the right to be there. You can then provide an eviction notice. The notice period will vary depending on what you file. The types of eviction notices that comply with Wisconsin law are:

• 5-day pay-or-quit (for failing to pay rent)
• 5-day cure-or-quit (for lease or legal violations)
• 14-day quit (for repeat violations)
• 5-day unconditional notice to quit (for threats of harm or criminal offense)

Considering Legal Action

If the squatter refuses to leave the unoccupied property after being served with a written notice, you can legally remove them by filing an eviction lawsuit with the local court. You will need proper documentation for the legal process, which can become complex.

Upon successfully processing the legal requirements, local law enforcement will handle the removal of the occupant. If you're unsure about what to consider with Wisconsin squatter's rights, it's best to consult a real estate attorney or a property management company that can handle the eviction proceedings.

How to Deter Squatters from Your Vacant Property

Securing the Premises

Property owners protect their vacant properties by securing the unit, which can be achieved by changing the locks, repairing any damages, and taking other additional measures like installing surveillance technology. This way, you can monitor the property without having to go to the location.

Avoiding Vacancy

Make sure that your rental property is not vacant for too long. Market your real estate rentals to attract prospective tenants or have a property manager do it for you. Companies like Performance Asset Management have marketing strategies that can advertise your property professionally and ensure a low vacancy rate.

Putting Up Signs

You can try simple measures like putting up signs stating that the unit is private property. Post a clear "No Trespassing" or "Private Property" sign, and make sure that it is clearly visible. You can do this by setting up lighting so people can still see it when it's dark.

How Squatters Can Gain Legal Ownership Through an Adverse Possession Claim

If you ignore an abandoned or vacant property for too long, they can claim legal ownership under adverse possession laws in Wisconsin. For the squatter to become the legal owner, they must first file an adverse possession claim based on their legal rights. Here are the requirements they need:

Falling Under the Following Types of Possessions

• They conduct hostile possession by occupying the property without the owner's permission, although "hostile" does not necessarily mean that they did so in an unfriendly manner, as per GRGB Law.
• The trespasser has actual possession by occupying someone else's property, treating it like their own.
• They occupy the property through open and notorious possession, which means that they live in the property openly with the landlord's knowledge.
• The unauthorized occupant falls under exclusive possession of the property upon controlling it for a continuous amount of time.

If They Pay Property Taxes

Adverse possession laws in Wisconsin state that the occupant can claim adverse possession if they have proof of having paid property taxes for seven years. It should be full payment for all the real estate taxes under the property, or they cannot use this requirement for a successful claim.

Occupying the Property for a Certain Length of Time

Property owners will have to neglect their abandoned or unoccupied property for a long time before it falls under adverse possession laws. Squatters in Wisconsin have to occupy the property continuously for 20 years before they can establish legal ownership.

Possession Through Color of Title

"Color of Title" only appears as a legal title but is not recognized as one in property law. However, squatter's rights in Wisconsin state that the trespasser only needs to show 10 years of continuous possession to qualify for adverse possession claims. The person claiming adverse possession must also prove that they have been living on the premises in those 10 years while having good faith Color of Title.

Disputing the Claims Under Wisconsin Adverse Possession Laws

Property owners can dispute the claims of a squatter trying to establish adverse possession without ignoring squatter's rights in Wisconsin. There are certain steps to follow to avoid violating local laws.

Speaking with the Occupant

A property owner should first speak to the unauthorized occupant to clarify that the real estate unit has a rightful owner. Chances are the trespasser would leave willingly, but you can resort to legal action if they claim squatter's rights for adverse possession in Wisconsin.

Filing an Action to Quiet Title

As the property owner, you can file an Action to Quiet title to officially claim ownership. It's the legal method under adverse possession in Wisconsin, and property owners are advised to consult an attorney or a property manager to help with the legal aspects of the proceeding.

How Performance Asset Management Can Help You

Evicting a squatter from your property can be a stressful ordeal, especially since you won't know who you will encounter and how they will react. You can hire a property management company to handle the matter, as well as to prevent it from happening.

Performance Asset Management conducts regular inspections to ensure that your property is always in top shape. We also provide eviction protection and handle the proceedings, even covering the costs of a simple uncontested eviction.

Try our free Vacancy Loss Calculator to determine your rental income considering your occupancy rate and see our digital tools in action.

If you're looking to purchase a Milwaukee rental property, there's plenty to think about beforehand. Obviously, the biggest factor in determining your ROI on a given property is rental pricing. To figure that out, you need to perform a thorough rental valuation that helps you analyze the market in comparison with your financial needs.

In today's post, we're going to help you with your property valuation by telling you a few of the biggest myths around rental property pricing. Keep reading and increase your property earnings using increased knowledge.

Your Rental Valuation Is Merely a Suggestion

Performing a property valuation is an integral part of the rental property investment process. Some landlords see their valuation and decide that it's just a suggestion and do whatever they want anyway. This is a terrible approach.

Rental valuations are not merely suggestions. They account for every feasible factor that might contribute to a rental's market value and give you a very accurate number. It's not to say that you should always take a rental valuation as gospel, but it's quality research that must be considered when pricing your rental units.

You Can Raise Rent at Will

Too often, landlords will look to the state laws to determine how much they can raise their rent each year. Unlike some other states that put a cap on the amount a landlord can raise their rent each year, Wisconsin has no such cap.

Landlords can technically raise their rent as much as they want, but taking advantage of this is never a good idea. Arbitrarily raising rent an exorbitant amount is only going to alienate your tenants and cause them to leave.

When they do, you'll be left with a rental vacancy and you'll be forced to lower rates to a more reasonable level anyway. Always keep your rent at a fair market value and you'll maximize rental income.

Lower Rent Attracts Renters

Some landlords fear rental vacancies too much and lower their rental rates to attract renters. This isn't a great option either, as it will attract the wrong types of tenants and you'll struggle to find long-term rental solutions.

Offering low rental prices will also make it a struggle to cover your expenses each month. We perform rental valuations to have a strong idea of what the market value of a rental property is. You should always stick to this accurate rental estimation to increase property earnings.

Get Help with Your Rental Valuation

If you can avoid these myths around rental pricing, you can avoid vacancies and maximize your rental income. It's important to trust in your rental valuation because it uses all of the most up-to-date techniques for assessing a rental's potential.

Do you need help getting an accurate rental assessment in Milwaukee? Performance Asset Management is Milwaukee's top property management company. We can help you determine the most sensible rental rates to attract great tenants and boost your income.

Contact us today to learn more about our services.

That makes it impossible for a landlord to attend to every tiny detail of maintaining their unit themselves. Is there a way that tenants can take care of some aspects of preventive maintenance to alleviate this situation?

Read on to explore the laws regarding tenant vs. landlord maintenance responsibilities.

Key Differences in Legal and Optional Responsibilities

Lease agreements should be designed to benefit both landlords and tenants, and they are governed by landlord-tenant law in the applicable state. These regulations protect landlords from the damages that bad tenants can cause.

During these times of ever-increasing rents, these laws also prevent desperate tenants from accepting unsatisfactory living conditions or unfair expectations from their landlords. Legal obligations, such as maintaining safe living conditions, are non-negotiable.

Optional responsibilities may include minor aspects, as agreed to by both parties. These responsibilities are enforceable under the conditions of the lease, but the tenant has no obligation to agree to a lease they aren't comfortable with.

For instance, a lease may obligate the tenant to attend to repairs caused by themselves, but it can't make them responsible for property maintenance costs involving habitability issues, like plumbing.

Tenants' Legal Property Maintenance Responsibilities

All tenants have three main legal responsibilities when they rent a home. These are:

Complying With the Lease

Tenants must pay their rent on time or face eviction. They may not cause unnecessary wear and tear by doing things forbidden in the lease, such as housing a dog in a non-pet-friendly unit.

Attending to Normal Wear and Tear

Under Milwaukee law, tenants are responsible for the daily upkeep of the unit. This includes things like cleaning and waste disposal.

Reporting Maintenance Issues

Preventive maintenance is essential for building longevity and maintaining property value. While a landlord may conduct routine inspections to stay up-to-date with this, they rely on the tenant to report any maintenance issues immediately so that they can address them.

If a landlord does not attend to maintenance or repairs within an agreed-upon time frame, the tenant can withhold the rent or report their landlord to the local building or health inspector. The landlord cannot retaliate against tenants who do this.

Optional Property Maintenance for Tenants

Optional property maintenance for tenants usually includes things like changing light bulbs or attending to lawn care. These conditions must be clearly stated in the lease agreement.

By agreeing to carry out minor maintenance, the tenant preserves their right to privacy.

Navigating Landlord-Tenant Law in Milwaukee

Knowing your boundaries as a landlord can prove to be a steep learning curve. An accomplished property manager can help you make sense of it all.

Performance Asset Management is a licensed property management firm in Milwaukee, WI, that can assist you with the intricacies of property maintenance and so much more.

Our team comprises qualified professionals with extensive experience in property management and real estate investments, with an emphasis on tax and accounting. We take care of every detail for our landlords, ensuring cost efficiency down to the last penny.

Browse our blog for more property management advice, or ask us how we can help you thrive as a Milwaukee landlord.

In fact, only 45% of landlords manage their own properties, while the rest outsource. A property management company can better protect your investment property.

Their services can maximize your earning potential. Not sure how they can help? Read on to learn more!

Avoid Problematic Renters

A property management company can screen applicants to help you find reliable renters. Otherwise, you may select tenants who will damage your beautiful investment property. You could end up spending thousands of dollars on repairs.

Some renters may fail to pay rent on time, affecting your profitability. Others may break your rules or conduct illegal activity.

Choose a property management company with an established tenant screening process in place. Their reports will include:

• Criminal background checks
• Credit scores
• Employment verification
• Eviction histories
• References
• Rental histories

Selecting problematic renters can lead to evictions, which are costly. A high turnover rate can lead to long-term vacancies.

An expert team can help you avoid these property investment mistakes. Instead, they'll help you find renters worth retaining. Keeping reliable renters can boost your occupancy rate and ROI.

Comply With Housing Laws

An experienced property management company will ensure you comply with housing laws and regulations. These include:

• Tenant screening laws
• Safety requirements
• Security requirements
• Fair housing regulations

Neglecting to comply can lead to lawsuits and fines. Relying on a property manager's expertise can help you avoid legal trouble.

Maintain Profitable Property Investments

According to LendingTree, nearly 60% of renters surveyed had landlords they didn't like. One of the top reasons is maintenance issues (68%). If your real estate investments crumble, you could lose tenants.

Property values will plummet, affecting your ability to generate revenue from long-term investments. Before that happens, partner with a property management company. They can protect your investments by scheduling routine inspections and maintenance. 

They'll recognize small problems before they worsen. They can even recommend property upgrades to help you remain competitive. Appealing to the latest trends can help you attract future renters.

Maximize Rental Income

Hiring a property management company can help you operate more efficiently. Use their state-of-the-art technology to automate processes. Tenants can use an online portal to:

• Send inquiries
• Submit maintenance requests
• Automate rent payments
• Review leasing documents

This will ensure fewer late payments. You can even automatically apply late fees.

Your property manager can improve your occupancy rate using tenant retention and marketing strategies. They'll also help you set competitive rental rates. Using their proven strategies to reach full occupancy can maximize your earning potential. 

Protect Your Investment Property Today

Partnering with an experienced property management company can protect your investment property and bottom line. Leverage their expertise to enhance your long-term investments. With their proven strategies, you can gain a competitive advantage in today's market.

Performance Asset Management is Wisconsin's rapid response manager. We're dedicated to providing rapid solutions while financially outperforming competitors.

Trust our guarantees, intuitive software, and unique approach to maximize your returns. Contact us now for a free rental analysis.

With those high rates, you, as a Milwaukee landlord, should do everything possible to avoid being part of the statistics. After all, convictions are time-consuming and expensive; you'd have to pay filing fees and can lose income (e.g., unpaid rent, vacancies, and replacing tenants).

Luckily, you can safeguard yourself with eviction protection plans.

The experts here at Performance Asset Management (PAM) will explain these landlord protection programs in more detail, so please read on.

What Are Eviction Protection Plans?

Eviction protection plans are guarantees provided by a reputable property management company. The company guarantees that if they must evict a tenant they placed for the property owner, they'll cover all the legal costs associated with the eviction. In addition, the management provider will perform the following:

• Sign and serve all notices required to initiate the eviction process on behalf of the landlord
• Coordinate with the tenant throughout the pre-eviction phase
• Commence the eviction process if the tenant fails to remedy the problem they're facing an eviction for
• Recover the landlord's property and possessions
• Recover unpaid rent and other amounts due

So, with an eviction protection plan, you can safeguard yourself from the legal costs and headaches associated with evictions. You can also avoid navigating complex local and state eviction laws since your property manager will handle the legal process on your behalf. With their expertise, they can protect landlord rights while ensuring they don't step on tenant rights.

Protecting You Even Before Evictions

As mentioned above, an eviction protection plan covers eviction-related legal costs for tenants placed by a property management company. For this reason, property managers have the "incentive" to screen tenants carefully. Otherwise, they'd have to shell out money for the expenses they promised their clients they'd cover in case of an eviction.

So, to minimize their risks, a reputable property management company always performs comprehensive tenant screening processes, including:

• Credit checks
• Income or employment checks
• Criminal background checks
• Rental history checks

By conducting all that, a property manager can protect you from potential tenants with a history of giving their landlords a hard time collecting rent. They can also help you avoid renting to people with multiple previous evictions.

Most importantly, you can rest easy knowing that professionally screened tenants have no or low crime risk. Your property manager will assess them carefully to determine if they're among the 77 million Americans with a criminal record.

Let PAM Protect Your Property

Now that you know how eviction protection plans can benefit you, it's time to choose a reputable and highly experienced property management company.

Performance Asset Management (PAM) has over 15 years of work and industry experience providing high-quality property management services to Milwaukee landlords. As a full-service company, we'll screen your tenants, market and maintain your property, retain your best renters, and protect you from evictions.

So, contact us for a consultation today! We look forward to discussing how we can make your Milwaukee rental business more profitable.

The housing choice voucher program can also be beneficial for landlords. But what exactly is Section 8? And how does the program determine rent reasonableness for prospective landlords? In this guide, we'll answer these questions so you can decide if Section 8 is right for your Milwaukee property.

What Is Section 8?

As we mentioned, there's a serious problem when it comes to affordable housing in Milwaukee, WI. To address it, the local government has passed initiatives like Growing MKE. However, they've also adopted federal tenant assistance programs like Section 8 (the Housing Choice Voucher).

Here's how it works: low-income families can sign up for the program. If they qualify, the government will pay a large percentage of their rent. Landlords who join Section 8 will be able to offer their rental houses as part of the program. As such, this form of subsidized housing has the potential to benefit both tenants and landlords.

How Does Section 8 Determine Rent Reasonableness in Milwaukee?

If you want to become a Section 8 landlord, you will need to propose a rent amount to the local HUD. Then, government workers will decide whether or not your rent proposal is reasonable.

So how do they determine rent reasonableness? According to the Milwaukee County Housing Authority, they look at the following Section 8 rent criteria:

• Size
• Type of property
• Quality
• Condition
• Included amenities

If the requested rent amount is determined unreasonable, then the MCHA will engage you in rent negotiations. Consider getting a rent analysis done to avoid this.

What Are the Benefits of Becoming a Section 8 Landlord?

As you can see, it's a lot of work to become a Section 8 landlord while getting your rent request approved. So is it worth the hassle? When you become a Section 8 landlord, you no longer have to worry about tenant screenings.

The government has done this work for you, and because Section 8 families are incentivized to stay on the program, they're more likely to take good care of your property.

With Section 8, you also get guaranteed rental payments from the government. And turnover between tenants is fast since there's such high demand. As such, you won't need to worry about marketing your property.

Interested In Section 8? Contact Performance Asset Management

We hope this guide helped you learn more about how Section 8 determines rent reasonableness in Milwaukee, WI. While this program can be potentially beneficial to landlords, it also requires a lot of work and filing to get started.

Unfortunately, many property management companies aren't equipped to help with Section 8. That's not the case with Performance Asset Management.

Our attention to detail ensures that your property will be profitable regardless of whether you join Section 8 or not. So get in touch with us today to learn more about how we can help you.

If you don't conduct rental property inspections as often as you should, you could spend more than that on maintaining your Milwaukee rental. The higher your maintenance and repair costs, the lower your rental income could be.

What, then, is the ideal rental property inspection frequency? This guide shares practical Milwaukee landlord tips on rental property maintenance and checks, so read on.

Monthly Drive-by Inspections

A drive-by inspection is a quick visual check of your Milwaukee rental property from the road. It allows you to spot problems with curb appeal, like dirty external walls, dusty windows, overgrown grass, or peeling paint. If you notice any of these issues, address them immediately to prevent turning off prospective tenants.

If you already have renters, that's all the more reason to maintain your property's curb appeal. It's one of the best tenant satisfaction strategies, as a well-kept exterior gives your renters more reason to love living in your property. The more they enjoy their time on your property, the more likely they'll keep renewing their tenant lease.

Before Listing

Effective property listings include factual but engaging descriptions of your property's best features. For example, you can highlight your rental's balcony or patio and say it affords incredible scenic views of Milwaukee. You can also list the energy-efficient appliances you've furnished it with and discuss how relaxing the outdoor space is.

However, if those features aren't in top condition, they'll more likely deter prospective tenants than attract them. For example, a balcony with rusty balustrades, a patio with sagging floors, or a lawn filled with weeds can be unappealing. Faulty appliances can also cause injuries and electrical fires.

So, before listing your property, conduct a comprehensive inspection first. That way, you can identify and address problems before prospective tenants spot them and get turned off.

Quarterly or Semi-Annually

Coordinate quarterly or semi-annual (once in the spring, another in the fall) inspections with your tenants. They should agree if you ask for their permission and tell them how these checks can help keep the rental safe and habitable.

During these inspections, carefully assess the following:

• Roofing, plumbing, electrical, and HVAC systems
• Doors and windows
• Humidity, mold, and pests
• Condition of the appliances
• Smoke detectors, gas leak sensors, and fire extinguishers

You should also inspect your property for signs of damage beyond normal wear and tear. If you find any, consider it a sign of a breach of the rental lease.

Simplify Rental Property Inspections

Ideally, you should conduct rental property inspections monthly (for drive-by checks), before listing, and quarterly or twice yearly. That can help maintain the quality and value of your Milwaukee rental. Moreover, it can help ensure your property remains safe and habitable for your tenants.

If you don't have time to do all that, our team at Performance Asset Management certainly can. We have over 15 years of experience providing full-service property management to Milwaukee landlords like you. We can oversee not just property inspections but also maintenance and repairs.

So, give us a call today! We'll happily answer all your property management questions.

More landlords are retaining renters to improve their occupancy rates. Without a rental leasing strategy of your own, your units could remain vacant.

Not sure how to compete? Apply these tenant retention tips today!

Research the Rental Market in Milwaukee

Before applying these lease occupancy tips, research the rental market in Milwaukee. What are other landlords offering that you're not? Consider:

• Amenities
• Special features
• Recent upgrades
• Rental rates

Comparing your rental to others can help you make informed improvements. Otherwise, renters will consider a more up-to-date rental.

Choose upgrades that improve your rental's value. These can include new floors, energy-efficient windows, and new appliances. Consider implementing smart home technology and property management software.

This software can improve the renter's living experience. They can use an online portal to automate rent payments and submit maintenance requests. Meanwhile, you'll benefit from the ease and convenience automation tools can offer.

Reach Renters Online

Your rental properties will remain vacant if you're not marketing the listing online. First, upgrade the listing using leasing best practices. It should feature:

• A compelling headline
• Amenities and special features
• The rental rate
• A thorough description
• Your contact information
• Photos and videos
• A strong call to action

Use digital marketing to gain more online visibility. First, optimize the listing for search engines. Add a location-specific keyword to the content to reach local renters.

Share photos of the property using social media marketing and digital advertising. As you attract more people to the listing, you can generate more applications.

Tenant Retention Tips

Encourage your current renters to renew their leases. Increasing lease renewals can improve your occupancy rate. It also helps you save money on marketing and tenant screening.

Apply these tenant retention tips:

• Upgrade the property
• Keep up with maintenance
• Offer a rental rate discount
• Communicate with renters
• Offer gift cards to stores or restaurants

Try to improve your tenants' living experiences. Keeping tenants happy can encourage them to stay for another lease cycle. For example, you can offer new amenities, host events, or send them birthday messages.

Rely on Milwaukee Property Management

Navigating the rental market in Milwaukee can feel daunting. Partner with a property management company to remain competitive. They can handle rent collection, marketing, and more.

Relying on their professional services and best practices can improve tenant satisfaction rates. Your renters will want to stay, knowing someone cares about their needs.

Leverage Our Rental Leasing Strategies Today

Don't apply these rental leasing strategies alone. Instead, outsource and partner with a property management company. Their leasing best practices can give you an advantage in today's competitive market.

Performance Asset Management is Wisconsin's rapid response manager. We financially outperform the competition to maximize returns without complexity or headaches. Trust our intuitive software and resident eviction guarantee.

Our properties only stay on the market for an average of 17 days. Benefit from our range of services to do more of what you love. Contact us now for a free rental analysis.

With the vacancy rate so low, you may struggle to attract renters to your Milwaukee rental properties. They may decide to renew the lease with their current landlord instead.

Before that happens, use these property marketing tips. Stand out in the current market and reach new renters today!

Gather Milwaukee Property Insights

Before applying these tenant attraction strategies, research the local market. Milwaukee property insights can help you understand current trends. For example, what are local renters looking for in available rental properties?

Compare your property to others in the neighborhood. This information can help you recognize where to make improvements. For example, you can add:

• Smart home technology
• New floors or carpets
• Fresh flowers
• Fresh paint
• New kitchen appliances and cabinets

Choose upgrades that will make the property more attractive. You can increase your rental rate by offering a better living experience.

After making these upgrades, complete a rental analysis. This will ensure you set competitive rental rates based on market data.

Improve the Curb Appeal

Improving the property's curb appeal can help you make a strong first impression on potential renters. After all, it's the first thing most people see. If the property looks shabby and the yard is dead, they may look elsewhere.

It only takes one-tenth of a second for people to make a lasting impression. The same applies when marketing rental properties online.

Paint the property's exterior, add new siding, and plant fresh flowers. Help the property pop by painting the door a bright color.

Invest in Professional Photography

After applying these Milwaukee rental tips, hire a professional real estate photographer. High-quality images will attract more people to your listings.

Consider sharing virtual or video tours online. These marketing materials can engage your target audience and drive interest.

Start Marketing Rental Properties Online

Use digital marketing strategies to direct more people to your property listings. Effective tenant attraction strategies include:

• Paid advertising
• Email marketing
• Social media marketing
• Search engine optimization
• Content marketing

Personalize marketing messages to connect with your target audience. You can leverage the fear of missing out or appeal to their unique needs. Emotion-based marketing can lead to more applications.

Hire a Property Management Company

Instead of creating your marketing campaigns alone, work with a property management company. Leverage their years of industry experience to develop effective campaigns.

Otherwise, you could waste time and money on ineffective tactics. Working with professionals can improve your ROI and increase applications. They can even help you keep great tenants in your Milwaukee investment properties.

Attract Milwaukee Renters With Property Marketing

Don't let future renters slip away! Instead, use these effective property marketing strategies. Start reaching new renters today to maximize your earning potential.

Remember, you don't have to juggle these tasks alone. Performance Asset Management is Wisconsin's rapid response manager. We financially outperform the competition using intuitive software.

Our approach can maximize your returns without headaches. Trust our 1,000+ five-star reviews and 15 years of experience. Contact us now for a free rental analysis.

Maintenance coordination is paramount to keep happy residents and ensure your buildings stay in good shape. Read on to discover our maintenance planning guide.

1. Make a Maintenance Schedule

The best defense is a good offense when it comes to maintenance. When you have a maintenance schedule, you can ensure you complete all your tasks on time.

Use a maintenance checklist to divide your tasks into certain seasons or periods. With a visual reference, it is much easier to see what you need to do and not let the maintenance pile up.

2. Promptly Respond to Requests

When you ignore your tenants, you're less likely to keep them in the long run. Respond as soon as possible when you receive a maintenance request for one of your properties.

What may not seem like a big deal to you can alter the lives of your tenants. Listen to their concerns and take action quickly. After all, they are paying the rent every month.

3. Outsource Your Maintenance

It may be difficult to maintain a schedule for maintenance if you have properties in many different Milwaukee neighborhoods. Working with a property management company can alleviate some of the stress.

A property manager will use coordination best practices to ensure tasks are completed on time. They can manage all interactions with tenants and third-party contractors.

When you have a property manager, you can also have more freedom. You will not have to worry about being consistently available to respond to maintenance requests.

You can even go out of town as you wish, or own properties further away from your home base. Freeing up your time is priceless if you want to invest in other areas of your life.

4. Use a Maintenance Planning Guide

If you don't know where to begin when it comes to your property maintenance, a maintenance planning guide is key.

Efficient maintenance workflows are easier when you have everything laid out in a manageable format.

5. Inspect Your Properties Regularly

You should inspect your properties regularly to get ahead of maintenance issues that could cause damage in the future. Sometimes, small problems can become huge issues if you ignore them for too long.

Take a look at things like the HVAC system, appliances, plumbing, and the general structure of the house. It is often much cheaper to make repairs when you see them. For instance, a small leak can be fixed quickly, but a major hole in the roof requires more time and money.

Master Your Maintenance Coordination Today

You do not have to struggle with maintenance coordination as a property owner. With this guide, you can ensure your property stays in perfect condition.

Do you need a property management partner in the Milwaukee area? Look no further than Performance Asset Management.

Our dedicated team will help you with all of your property management needs. Ready to get started? Reach out to us today to learn more.

Despite sending multiple reminders and making countless phone calls, you notice a significant portion of your tenants have yet to pay. The stress of chasing late payments and the financial instability it causes can be overwhelming.

Rent collection doesn't have to be a constant source of frustration. With the right strategies and tools, you can streamline the process.

Check out our top rent collection tips.

1. Automate Reminders

Tenants, like everyone else, lead busy lives and can easily forget payment due dates amidst their daily responsibilities. Automated reminders serve as gentle nudges, keeping rent payments top of mind without appearing intrusive. These reminders help tenants stay on schedule. That way, you avoid tenant payment issues.

Customize the settings to determine when and how often reminders are sent. For example, you might choose to send a reminder three days before the due date and another on the due date itself.

Regularly monitor the effectiveness of your reminders. If you notice a pattern of late payments, you might need to adjust the timing or frequency of the reminders.

2. Communicate

From the moment a tenant signs the lease, it's crucial to set clear expectations regarding rent payments. This includes explaining the due date, acceptable payment methods, and the consequences of late payments.

Provide this information both verbally and in writing to ensure there are no ambiguities. A well-drafted lease agreement should outline these details comprehensively, serving as a reference point for both parties.

While it's important to be friendly and approachable, maintaining professionalism in all your communications is equally crucial. This means being clear, concise, and respectful when you speak to them.

3. Hire Property Management

Hiring a Milwaukee property management company can significantly streamline the rent collection process.

They have established systems and processes to ensure that rent is collected on time, every time. This includes sending out regular reminders, enforcing late fees, and following up on overdue payments. Their professional approach ensures that rent collection is handled efficiently and without bias.

Property management companies are familiar with local, state, and federal laws regarding rent collection and tenant rights. They ensure that all actions taken are compliant with these laws, protecting you from potential legal issues. This includes proper handling of late payments, notices, and, if necessary, eviction processes.

4. Use Incentives

Incentivizing tenants can be a powerful strategy to ensure timely rent payments and foster a positive landlord-tenant relationship.

Offer a small discount on the rent for tenants who consistently pay on time. For example, you could provide a 1-2% discount for tenants who pay before the due date for six consecutive months.

Provide gift cards to popular stores or restaurants as rewards for timely payments. This can be an attractive incentive for tenants and relatively low-cost for you.

Rent Collection: Optimize For Your Milwaukee Properties Today

With these rent collection strategies, you'll have an easier time taking care of your real estate empire.

Do you need more landlord advice? Performance Asset Management is staffed by highly qualified staff that can help ensure your real estate portfolio is running smoothly.

Contact us today.

One crucial step in achieving this is conducting a thorough tenant criminal background check. This process helps you identify potential risks and make informed decisions, protecting both your investment and the safety of your property.

In this blog post, our expert team will highlight what you should know about tenant screening and why tenant verification is such a crucial first step for all landlords.

Why Conduct a Tenant Criminal Background Check?

In a nutshell, performing a criminal background check on potential tenants is essential for safeguarding the safety and security of your property and other tenants.

Knowing a tenant's criminal history helps you avoid individuals with a history of violent crimes. This can be crucial for the safety of your other tenants and neighbors.

Tenants with a history of financial crimes, such as fraud or theft, could pose a risk to your property and rental income. Additionally, different regions require landlords to conduct background checks to comply with local laws and regulations.

What to Look for?

When you conduct a criminal background check, you should look for specific types of criminal history. It is essential to check for serious offenses like felonies, as well as repeated misdemeanors which may indicate a pattern of behavior.

You should focus on recent criminal activity, typically within the last seven to ten years, as older offenses may be less relevant. Consider also the type of crime as, for example, non-violent offenses might be less of a concern compared to violent crimes or drug-related offenses.

If you find something that is a cause for concern, it's better to take a safety-first approach and look at another applicant. Taking the time to find the very best tenants for your property is worth it, as it can save you trouble down the line, such as the need to file evictions.

Partnering with a Property Management Company

For many landlords, the process of conducting background checks can be overwhelming.

As such, it's recommended that you partner with a property management company, such as Performance Asset Management in Milwaukee, that offers professional tenant screening services, including criminal background checks.

We can handle the time-consuming aspects of tenant screening, allowing you to focus on other responsibilities of being a landlord.

The Importance of Safe Rental Practices

The bottom line is that conducting a tenant criminal background check is a vital part of the overall screening process as a landlord. It helps you protect your property, other tenants, and your financial interests.

If you're looking to complete the criminal background check process here in Milwaukee, our team at Performance Asset Management is here to help. We have 15 years of experience assisting landlords like you with a wide range of rental property tasks.

Contact our friendly team today to learn more about how we can assist you.

As long as you have a solid strategy in place, you can keep your investments safe and secure. Here are some tips to consider today.

Regularly Review Your Books

Finances play a huge role in real estate asset management. You need to have enough liquid assets in case an emergency or a good opportunity arises.

Take a look at your finances regularly, preferably every quarter. If you work with a property manager, they can provide you with owner statements so you can see the big picture and evaluate what needs to change.

For complex financial matters, it may be best to work with a bookkeeper or accountant. They can go into more detail and see if there are discrepancies that you may have overlooked.

Know When to Buy and Sell

Like any other real estate market, Wisconsin has its ups and downs. It is important for investors to correctly navigate the market for real estate portfolio optimization.

Although you can't predict the future, there are trends to look out for to signal it's time to buy or sell.

For instance, if prices continue to climb, then you may be better off selling some of your properties and investing the profit into something else.

Many real estate investors use the buy-and-hold strategy, which means hanging on to an asset for a long period while it appreciates.

Diversify Your Holdings

Putting all your eggs in one basket, so to speak, is especially risky when it comes to real estate investing.

Real estate investment trusts, or REITs, are a great way to keep money in the real estate market at less risk. They are funds made up of diversified holdings for investors who seek a safer option.

This is also a way to be more involved in real estate investment without having to worry about tenant placement, maintenance coordination, and tenant screenings.

Work With a Property Management Company

When it comes to your finances, it is best to rely on the experts. A property management company can help you navigate the ins and outs of managing a larger real estate portfolio.

You can pay the company a fee to take care of all aspects of property management. This will free up time and resources for you to pursue other interests or invest in things that bring you interest.

Make sure to find a company in your area that knows the real estate market.

Try These Real Estate Asset Management Strategies

Are you ready to bring your real estate asset management to the next level? Use this guide to ensure you have more stability and money in your pocket.

Performance Asset Management is the partner you need for your property management journey.

With our extensive industry knowledge of the Milwaukee real estate market, we're here to help you with property management tips and tricks. Reach out today to learn more.

Milwaukee landlords often face the decision of whether to allow pets in a rental property. Understanding the drawbacks and perks can help them make an ideal choice.

Are you on the fence when it comes to pets? Read on for our pet rental guide.

Pro: Attracting Tenants

Welcoming pets can deepen your pool of potential renters. Many pet parents have a tricky time finding pet-friendly housing, so advertising your property as such can attract more applicants.

Pet owners may also be more inclined to stay longer in a pet-friendly rental, reducing turnover and vacancy periods.

Con: Property Damage

Pets can cause the following issues:

• Scratched floors
• Chewed furniture
• Soiled carpets

Repairing these things could eat into your rental income. Extensive damage may also affect the property's resale value or deter future tenants. This harms your long-term investment goals.

Pro: Tenant Relations

Permitting pets can foster nice relationships with renters. By accommodating their furry friends, you show empathy and flexibility, potentially leading to longer lease agreements and happier renters.

This rapport can also enhance communication and cooperation throughout the tenancy.

Con: Lease Agreement Complexity

Including pet-related clauses in your lease agreement adds complexity. You may need legal assistance to draft these clauses to ensure clarity and compliance.

Enforcing pet-related provisions may require extra documentation and communication. This increases administrative burdens for property management.

Pro: Increased Rent

You can charge pet owners a higher rent or implement a pet fee or deposit. This extra income can offset potential harm to the unit caused by pets.

It also serves as a financial incentive for responsible pet ownership by encouraging renters to maintain the property and address any pet-related issues promptly.

Con: Allergic Reactions

Some tenants or future occupants may have allergies to pet dander. Allowing pets could limit your potential tenant pool if people with allergies are excluded due to health concerns.

Accommodating allergic tenants may necessitate specialized cleaning procedures or air filtration systems. This adds to maintenance costs and logistical challenges.

Pro: Types of Pets

You can specify which types of pets are allowed in your lease agreement. For example, you might allow small dogs and cats but prohibit larger breeds or exotic animals, giving you more control over potential risks.

This allows you to tailor your pet policy to suit the preferences and limitations of your rental property, ensuring compatibility with your management style and property requirements.

Con: Noise and Disturbance

Pets could be noisy enough to disrupt neighbors or violate noise ordinances. This could lead to complaints from other tenants or legal issues with local authorities.

Addressing noise complaints may require mediation skills and conflict-resolution strategies. This consumes valuable time and resources for property management.

Pets in a Rental Property Could Be a Wonderful Thing

Welcoming pets in a rental property may not work for each community. Thinking about all these things will make it simpler to decide what's right for your rental property business.

Has running your Milwaukee rental properties been tough? Contact Performance Asset Management to hear how we can help. We have extensive experience in real estate investments, property management, and other related fields.

While there is a space for rental property owners, it won't be easy to make rental property income. However, a tenant portal can streamline multiple mundane processes to make the lives of landlords and tenants much simpler.

Keep reading to learn the common benefits you can expect from this form of property management software.

Easier Rent Collection

Collecting rent can be a hassle when you have to knock on doors to remind tenants. Having a tenant portal avoids this problem and streamlines the entire process.

Tenants will have a one-stop shop to pay rent with multiple payment options. Owners benefit from automated reminders that increase the likelihood of a tenant paying rent on time.

With an online portal, tenants can schedule automatic recurring payments. They won't have to worry about being late on rent and you get your income on time.

Late Payment Tracking

Property management software that includes an online portal tracks late payments for you. These fines are automatically added to a tenant's account when they miss a payment.

You can set up the portal to charge a specific late fee. If you offer a grace period, the portal can be set up to recognize it. Wisconsin requires landlords to provide a five-day grace period on rent by law.

Additionally, a tenant portal can help track common real estate fees. Security deposits and pet fees/rent can be tracked using this software.

Efficient Maintenance Scheduling

Tenants move into a rental expecting it to be maintained. When something goes awry, they will be happy to know that a property manager aims for quick handling.

A tenant portal allows renters to schedule property maintenance immediately. The request will go through a funnel reaching the landlord and property manager. From there, the correct vendor can be contacted for work.

A tenant portal can track the maintenance job throughout the entire timeline. Property managers can also use the portal to schedule regular property inspections.

Top-of-the-Line Communication

Communicating with tenants on different matters is easier with an online portal. Efficient tenant relations can help you increase your chances of lease renewals down the line.

A tenant portal acts as a first line of defense against common tenant questions. Instead of bombarding a property manager with calls, they can check their rental documents for clarification.

Most tenant portals also offer messaging for top-of-the-line communication between landlords, property managers, and tenants.

Set up Your Tenant Portal Today

Performance Asset Management provides property management services in the Milwaukee area. Licensed professionals and experienced investors are part of the team to help landlords like you.

Our property management software includes access to a beneficial tenant portal. We pride ourselves in our technology and expertise. We are set apart by paying attention to the little details.

With a tenant portal and online investor portal, you can keep track of everything property-related even if you aren't on the premises.

Ready to get your online portal up and running? Contact us today for a partnership you can trust.

Then, just as you think you've got a moment to breathe, the phone rings. It's another prospective tenant, eager to move in next month. You hang up, look at the growing stack of applications on your desk, and wonder: Is it time to outsource your tenant screening process?

We can help you decide.

Read on to find out if outsourcing Milwaukee tenant screening is right for you.

Reasons to Outsource

There are so many benefits of outsourcing you might be drawn to. Property managers possess specialized expertise and resources that streamline the screening process.

They have access to comprehensive background check tools, allowing them to quickly and efficiently evaluate potential tenants. This reduces the time and effort required to fill vacancies, ultimately leading to increased rental income.

Property managers are well-versed in the legal aspects of the screening process, ensuring compliance with federal, state, and local laws. This knowledge helps landlords avoid legal pitfalls and potential lawsuits related to discriminatory practices or improper handling of tenant information.

As neutral third parties, they can assess applicants without personal biases, leading to fairer and more consistent evaluations. This impartiality is crucial for maintaining a positive reputation and avoiding disputes with tenants.

Their familiarity with the area's neighborhoods, rental trends, and tenant demographics enables them to make informed decisions that align with the property's specific needs and goals.

By leveraging this local expertise, property managers can identify good tenants who are more likely to pay when they're supposed to, take care of the property, and stay for longer periods.

Outsourcing tenant screening to property managers frees up valuable time for landlords, allowing them to focus on other important things. This might include maintenance, tenant relations, and strategic planning.

Drawbacks of Outsourcing Tenant Screening

There are also some concerns you need to keep in mind before you start hiring.

Hiring a Wisconsin property manager to take over tenant screening involves an additional expense, which can be significant depending on the different services provided. For landlords with tight budgets or small portfolios, these costs might outweigh the benefits, making it less financially viable.

Relying on a property manager for tenant screening can create a dependency that might not be ideal in the long term. If the property manager's contract is terminated or they go out of business, landlords might find themselves scrambling to re-establish their tenant screening processes, which can be disruptive and time-consuming.

While reputable property management companies will have robust data protection measures in place, there is always a risk of data breaches or mishandling of information. This can expose landlords to legal liabilities and damage their reputation.

Outsourcing Milwaukee Tenant Screening: Decide Today

There's a lot to consider when thinking about outsourcing tenant screening. If the pros outweigh the cons for you, it's time to look into options in your area.

Are you ready to hire a Milwaukee property management company? Check out PAM Performance Asset Management. Our team is made up of highly educated licensed professionals, ready to give you the support you need.

Contact us today.

The city has a fiercely competitive rental market, so if you're a Wisconsin landlord with good tenants living on their property, you must do everything you can to keep them in place.

Effective leasing management plays a major role in promoting lease renewals. Read on to find out more about how it works.

Take a Proactive Approach to Lease Renewals

Every tenant considers moving out at some stage of their tenancy. They might have a larger, better-located, or cheaper home in mind from the start, or they might feel uncertain about whether you intend to renew their lease.

Engaging with them early about renewing their lease agreement can set their minds at ease amid ongoing housing shortages. It's good practice to approach tenants about renewing a lease around 60 days before their current lease agreement expires.

If you want to encourage them to stay, offering a lease extension earlier can help you achieve this. Agreeing to negotiate a low rent increase is an excellent tactic for promotion lease renewals, too.

Build Positive Relationships With Your Tenants

Treat your tenants in a way that makes them want to stay in your rental unit.

Clear communication is a great starting point for keeping them content. Listen to their suggestions, give them ample advance notice about rental maintenance, and give them some leeway with their rent payments if they go through hard times.

One way to streamline communications with your tenants is by setting up an online tenant portal. This technology helps you communicate in real-time and allows you to address maintenance and repair requests promptly.

You can also make your tenants feel appreciated and valued by offering them a 'thank-you' gift if they renew their lease agreement. This could be something small, like a meal voucher, or more significant, like a desired upgrade to the rental property.

Practice Efficient Property Maintenance

According to Milwaukee local regulations, landlords are responsible for keeping their rental properties in a habitable and safe condition. Beyond the legalities, keeping your home well-maintained limits inconvenience to your tenants and keeps them content.

Happy tenants are more likely to renew their leases. Set up a maintenance schedule to ensure you stay up-to-date with routine maintenance and attend to repair requests immediately.

Always provide your tenants with at least 24 hours' notice if you plan to carry out maintenance or property inspections. This common courtesy goes a long way toward encouraging positive landlord-tenant relations.

Hire Local Leasing Management Experts

Performance Asset Management is the local Milwaukee expert for reducing rental vacancies. Our comprehensive property service ensures we find the best tenants and keep them in place.

We can manage every aspect of leasing management for your properties, from marketing to evictions, and we are dedicated to perfecting the finer details related to your rental units.

Discover peace of mind by getting us on board to help you with your Milwaukee investment properties.

Median listing prices in the city are far below the national average. But home sale prices are rising, and rents are rising, too.

Looking to make some rental income off this growing market? Start your search in these up-and-coming neighborhoods to watch your profits soar.

Brewer's Hill

Brewer's Hill is a beer lover's paradise. This up-and-coming neighborhood is located just north of downtown Milwaukee. Residents are close to the city's best breweries and more practical amenities like public transportation.

Historic homes and new developments populate the streets of Brewer's Hill. Properties are affordable, too, with a median home value of only $220,089. However, you should expect to charge low rent because the median in the area is $886 per month.

Bay View

Bay View is an up-and-coming artist's haven. It is situated in southeast Milwaukee and is sandwiched between some of the city's best parks. Many homes also feature views of nearby Lake Michigan.

Like Brewer's Hill, Bay View is home to a mix of historic and modern residences. The difference is the significantly lower home prices ($190,800) and slightly higher rents ($980 per month), ideal for Wisconsin investors.

Juneau Town

Juneau Town or East Town is near to everything. Located in downtown Milwaukee, it is a great place for young professionals to live if they want to be close to restaurants, bars, shopping, and entertainment.

This is the up-and-coming area to invest if you want to invest in a high-rise apartment or condo. There are also many historic townhouses in the area. The median home value is $258,645, and the median rent is $1,266 per month.

Riverside Park

Riverside Park is an outdoor enthusiast's dream. It is sandwiched between two of the city's best parks, Milwaukee River Parkway and Lake Park. The area is also proximal to well-loved restaurants, bars, and coffee shops.

The majority of Riverside Park's residents rent their homes. Investors can scoop up a deal for less than $260,000 and make a good living off the neighborhood's median rent of just over $1,000 per month.

Historic Third Ward

Historic Third Ward offers the best views of Lake Michigan in the city. The picturesque historic neighborhood has historic charm galore and is near popular hotspots like the Milwaukee Public Market.

This area is one of the pricier neighborhoods on our list. The median home value in Historic Third Ward is nearly $350,000. But for that price, you can charge somewhere in the vicinity of $2,000 per month for rent.

Real Estate Investing With Performance Asset Management

Real estate investing in Milwaukee can be lucrative if you know where to look. These five up-and-coming neighborhoods offer low home prices relative to their rent potential and are perfect places to look for a new investment.

Need help finding the right rental property for your real estate investment portfolio? We have over 15 years of experience helping property investors like you find the best deals at the right time.

Contact Performance Asset Management today to learn more about our services and resources for investors.

Tenants who want to occupy your unit on any other day than the first of the month are one example. Fortunately, it's easy enough to calculate the difference in their rent payment, so you don't need to turn anyone away.

Read on for some advice from our property managers about getting the sums right when calculating prorated rent.

Why Would You Charge Prorated Rent?

Now that residential vacancy rates are starting to climb once again, no landlord can afford to turn away rental income from a potential tenant, so it makes sense to accommodate them where you can.

If you own a single rental unit, you can skip prorated rent calculations.

In this case, it's easy to change the tenant's rent-due date to the same day that they move in. So, they could pay on the 15th of every month, for example.

When you own more than one rental property, it can be difficult to manage different rent collection dates. In these cases, it's worth doing some calculations to adjust the first month's rent accordingly.

After that, you would continue to collect the rent on the first day of the month.

In other instances, you might allow your tenant to move out a few days before their lease expires or a few days afterward. In both these cases, you aren't compelled to adjust their rent but you could do so as an act of good faith.

How to Calculate Prorated Rent

To calculate prorated rent, you must discover the value of one day's rent for your accommodation. The terms of your lease agreement determine how you'll arrive at this figure.

Annual Leases

You can calculate a daily rate for an annual lease by multiplying the monthly rent by 12 and then dividing it by the days in the year. You would divide the total by 366 for a leap year, or 365 in an ordinary year.

Count the days the tenant plans to occupy your rental unit and multiply it by the daily rent to get the amount due to you.

Month-to-Month Leases

Month-to-month lease calculations are a little more complicated.

You should count the number of days in each month of the lease. Then, divide this total by the number of months the tenant's been in residence.

Finally, divide the monthly rent by this average to get a daily rate.

Our Property Managers Assist You With Every Detail

As a landlord, it can be tricky to navigate the intricacies of things like prorated rent and lease negotiations. Hiring a property manager is the best way to avoid these complications.

PAM Performance Asset Management offers a full range of property management services to help you maximize your Milwaukee, WI, property investments. Our property managers are experienced, qualified, and committed to going above and beyond for our clients.

We do all the math for you when it comes to calculating pro-rated rent or making the most of your rental business budget. Discover a hassle-free way to succeed as a landlord in Wisconsin.

Logistics are the operations that grow and manage portfolios, like financing, tenant placement, marketing, and more details.

Every responsibility is crucial, including application fees.

The application process is not a decision to go into lightly. It also ties into marketing, lease management, tenant screening, and other duties.

In this post, you'll learn more about creating an application fee policy tailored to Milwaukee renters.

What Is the Standard Fee In Milwaukee?

If you research online, you'll find that rental application fees run the gamut. However, $25 to $50 is the standard range, according to search data.

The national average is about $30 per application. It's important to note that landlords are limited in what they can charge. Thus, you're not going to find exorbitant application fees for rental homes and apartments.

This fee includes a thorough background check. Rather than charging an extra fee, most landlords include this service in the total application fee. The final amount also includes the processing

Should You Work With a Property Manager?

Deciding how much to charge can be a delicate process. Thus, you should always check with local ordinances first to avoid getting penalized for overcharging application fees. This means you need a solid understanding of Milwaukee's legal statutes on landlords.

For this reason, it may be easier to hire a professional experienced with the city's landlord laws. Property managers are real estate experts who can answer any legal question about property management, including application fees.

You don't even have to worry about drawing up the application yourself. Property managers know exactly how to format applications to screen for the right candidates.

If you work with a property manager, you also have access to their company's website. Both landlords and tenants are provided with online portals where they can manage applications.

Prospective tenants can fill out applications and pay the associated fee online.

What to Include In a Tenant Application

Property managers format applications that prompt applicants to include all critical information, from Government IDs to financial documents.

Your property manager will include fields for the following:

• State IDs and Social Security Numbers
• Birth dates
• All contact information (phone number and email)
• Current address
• Current and previous employers (job title, dates, etc.)
• Financial data (income, assets, and credit score)
• Rental history references (landlords, roommates, etc.)
• Criminal background check
• Any past evictions

A rental application may also request information about pets if the landlord chooses to allow pets in the rental. Should this be the case, applicants will be required to pay a pet deposit if they're chosen to sign the lease. This additional fee can cost anywhere from $100 to $500 on average.

Learn More About Application Fees

Don't overlook the importance of application fees in your property management strategy. Consider the above points when building your rental portfolio.

Performance Asset Management can answer all of your application questions and more. Learn more about our services or call us to speak with property manager.

Imagine the convenience of having someone handle all the nitty-gritty details of managing your properties while you enjoy the best Milwaukee has to offer. From ensuring timely rent collection to handling maintenance requests with ease, a property manager can be your secret weapon in navigating the bustling real estate market of Brew City.

Let's go through why you should look into Milwaukee property management.

Local Expertise

Property managers are well-versed in Milwaukee's real estate market. They understand local rental rates, tenant preferences, and market trends. This insight helps in setting competitive rental prices to attract tenants while maximizing your income.

Milwaukee has specific landlord-tenant laws and regulations. Property managers are familiar with these rules and ensure your property operations align with legal requirements. This includes lease agreements, eviction procedures, fair housing laws, and property maintenance standards.

Tenant Screening

These professionals have established procedures for tenant screening. They conduct thorough background checks. This includes credit history, criminal records, eviction history, and rental references.

This approach helps in identifying reliable and trustworthy tenants who are likely to fulfill their Milwaukee lease obligations.

Effective tenant screening contributes to lower vacancy rates. By placing reliable tenants who are likely to stay long-term and fulfill their lease agreements, property managers help maximize your property's occupancy and rental income.

Passive Income

If you want to boost your passive income, property managers can help.

Property managers mitigate risks associated with rental properties. They conduct thorough tenant screenings, maintain insurance coverage, handle emergency situations, and address maintenance issues promptly. Their risk management strategies protect your investments and minimize potential losses.

These professionals handle all your property finances. This includes rent collection, expense payments, and financial reporting. They provide detailed financial statements.

This allows you to track income, expenses, and profitability accurately. This financial transparency and organization contribute to better financial decision-making and increased passive income.

Save Time and Reduce Stress

When you're struggling with time management, you'll definitely want to look into your property management options. Property management companies take care of every part of tenant management. This relieves you from the time-consuming task of dealing directly with tenants.

By delegating property management tasks to a professional, you free up your time to focus on other priorities.

That's true whether you want to work on growing your investment portfolio, pursuing personal interests, or spending time with family and friends. This work-life balance can significantly reduce stress and improve overall well-being.

Look into Property Management in Milwaukee

There are so many ways hiring a Milwaukee property management company can benefit you. If any of this has sounded appealing, it might just be time to start hiring.

Are you looking for the perfect property manager for your needs? Check out Property Asset Management. Our tax background makes us uniquely qualified to handle the financial aspects of your business. Our customer testimonials speak to our success.

Contact us today.

*Investor-Resident Relations in Wisconsin are regulated by Wis. Stat. ch. 704, and Wis. Adm. Code ch. ATCP 134.

Wisconsin investor-resident Laws govern the rights and responsibilities of both investors and residents in the state, providing a legal framework to ensure fair and lawful interactions between the two parties. These laws cover various aspects of the investor-resident relationship, including (but not limited to) lease agreements, security deposits, eviction procedures, and maintenance responsibilities. It is essential to note that while the state establishes the basic legal framework, there may be variations at the county level.

Counties across Wisconsin may have additional regulations or specific requirements that investors and residents must adhere to, creating a nuanced landscape of rules and regulations. Therefore, individuals engaged in leasing or renting property in Wisconsin should be aware of both state and local laws to ensure compliance.

Housing providers who breach these laws may face a variety of consequences, such as fines, court costs, and attorney’s fees. Housing providers may also be obliged to pay back rent to residents who have been relocated as a result of the infringement in specific situations.

Local Ordinances

Local government ordinances are not prohibited or nullified by the Residential Rental Practices rules in ATCP 134, but investors and residents must comply with both the local ordinances and the Residential Rental Practices rules.

Why These Laws Are Important to Investors

Housing providers who are aware of these laws can avoid breaking its standards and the penalties that may occur. Risk management is an important aspect of being a successful home provider, and the more you know about the regulations that govern us, the more risk you can avoid. The more risk you can avoid, the better housing provider you can be to the citizens in Wisconsin.

Why These Laws Are Important to Residents

The purpose of these laws is to protect and promote its citizens’ public health, safety, and welfare, to establish the rights and obligations of residents and investors in the rental process, and to encourage residents and investors to maintain and improve the quality of housing.

The Residential Rental Practices Rule

ATCP 134.01, the Residential Rental Practices rule, applies to business practices related to the rental of most residential properties in this state, except when a person lives in a place operated by a public or private institution, a hotel, motel, boarding house, rooming house, or similar lodging for less than 60 days, or a government property.

Lease/Rental Agreements

Rental Application Process

Before renting out a property, property owners in Wisconsin must follow certain guidelines when it comes to the rental application process. Here are some key points to keep in mind:

Fair Housing Laws

Property owners must comply with fair housing laws, which prohibit discrimination based on race, color, national origin, religion, sex, familial status, or disability. It is illegal to deny a rental application based on any of these protected characteristics.

Owners should be aware that these laws apply to all stages of the rental process, from advertising to eviction. Any violation of these laws can result in severe penalties, including fines and legal action.

To learn more about Wisconsin’s Fair Housing Law & Complaint Process, visit the WI Department of Workforce Development website.  

Application Fees

Most, if not all, rental applications come with an application fee. It is important to note that these fees are (usually) non-refundable, even if the applicant is not approved for the rental.

You should be transparent about these fees from the beginning of the application process. It is also advisable to provide a receipt for the application fee to avoid any potential disputes.

Background Checks and Credit Reports

As a property owner, you have the right to conduct background checks and request credit reports from potential residents. However, they must obtain written consent from the applicant before doing so. Additionally, owners must provide a copy of the background check or credit report to the applicant if requested.

Furthermore, property owners must comply with the Fair Credit Reporting Act (FCRA) when conducting background checks and credit reports. This includes providing the applicant with a copy of the report and a summary of their rights under the FCRA if the property owner takes adverse action based on the information.

Denying an Application

If a property owner decides to deny a rental application, they must provide a written notice to the applicant stating the reason for the denial. It is important to have a legitimate reason for denial to avoid any potential legal issues.

Additionally, property owners cannot deny an application based on factors that are protected under fair housing laws (stated above). If an applicant believes they have been unfairly denied, they may file a complaint with th

If a rental agreement or any of the investor’s rules or regulations are in writing, an investor must give a resident a chance to read the rental agreement before the resident decides to rent from that investor. The investor and resident must agree on the essential terms of the tenancy before they sign a rental agreement. Once the parties sign a written agreement, the resident must receive a copy of the entire agreement.

Understand, that the rules do not require rental agreements to be in writing. Verbal rental agreements are traditional in many parts of the rental industry. Existing statutes allow verbal rental agreements and leases, Wis. Stat. sec. 704.01(1) and (3).

Receipts for Resident Payments

The investor must give the resident a written receipt when they take a cash payment for earnest money, a security deposit, or rent. If the resident pays with a check, the investor doesn’t need to give a receipt unless the resident asks for one. (ATCP 134.03(2))

Prohibited Rental Agreement Terms

Rental agreements are VOID if they include any of the following terms:

• Allows an investor to increase rent, decrease services, evict, refuse to renew a lease, or threaten any action after a resident contacts law enforcement, health services, or safety services. (ATCP 134.08(1))
• Allows the investor to evict the resident without following legal procedures. (ATCP 134.08(2))
• Accelerates rent payments or waives the investor’s obligation to try to reduce damages if a resident breaches or defaults on their agreement. The investor can’t require the resident to pay future rent immediately. The investor must try to re-rent the apartment. (ATCP 134.08(3))
• Requires the resident to pay any legal fees the investor incurs from any dispute related to the rental agreement. This doesn’t stop the investor or resident from getting court-ordered legal fees. (ATCP 134.08(4))
• Allows the investor to “confess judgment” against the resident, meaning the resident has to agree with any lease violation accusations made by the investor. (ATCP 134.08(5))
• Says the investor is not responsible for any property damage or personal injury caused by the investor’s negligence. (ATCP 134.08(6))
• Says the resident is responsible for personal injuries from things outside their control, or for property damage caused by natural disasters or people other than the resident or their guests. (ATCP 134.08(7))
• Waives any legal requirement that the investor must provide a habitable property or maintain the property during the tenancy. residents can’t give up their right to safe and habitable housing. (ATCP 134.08(8))
• Allows the investor to end the tenancy if a crime was committed on the property and the resident or someone living with the resident is a victim of that crime. (ATCP 134.08(9))
• Allows the investor to end the tenancy for a crime related to the property, and the agreement doesn’t include the required notice. (ATCP 134.08(10))

Code Violations and Conditions

Local housing codes establish the standards that rental housing must meet but do not protect all rental housing in Wisconsin. Before entering into a rental agreement, an investor must disclose to a prospective resident any building or housing code violations, as well as structural or other conditions in the rental unit or premises that constitute a substantial hazard to the health or safety of the resident. investors often require residents to pay utility charges separate from the rent. A resident must know if utility charges are included in the rent before signing a rental agreement. (ATCP 134.04(2))

Utility Charges

Investors often ask residents to pay utilities separately from rent. Before choosing a place, a resident should know if utilities are included in the rent. This helps them understand the total rent cost. According to ATCP 134.04(3), investors must tell potential residents if utilities aren’t included in the rent. residents should know this before signing a lease or paying any money like a deposit.

If utilities aren’t included in the rent and there aren’t separate meters for each unit, investors must explain how they’ll split the utility costs between the units. (ATCP 134.04(3))

Security Deposits

The rules require that the investor provide written notice to the resident that they have at least seven days to inspect and document any preexisting damages or defects and that the investor provide a list of any physical damages for which the investor withheld money from the previous resident’s security deposit. The rules provide that the investor must return the security deposit to the resident’s last known address within 21 days after the end of the rental agreement unless the investor re-rents the unit before the end of the rental agreement.

An investor may withhold money from a resident’s security deposit only for the following reasons: damage, waste, neglect of the premises, nonpayment of rent, and nonpayment of government utility charges. The rule allows investors and residents to negotiate a “Nonstandard Rental Provision” that allows the investor to withhold the security deposit for other reasons than those listed above, with some exceptions. However, an investor may not deduct the cost of routine carpet cleaning from the security deposit.

The investor must give the resident an itemized written statement of accounting for the security deposit, which must have two entries for each deduction. If the resident fails to leave a forwarding address, the investor may still withhold some or all of the security deposit.

The investor is required to provide a written list of damages within 5 days of a resident moving out.

Earnest Money Deposits

Earnest money deposits are given to an investor by prospective residents to protect the investor from possible costs or losses if the prospective resident decides not to rent from the investor.

When an investor accepts an earnest money deposit from a prospective resident, they must return the full amount to the applicant by the end of the first business day, unless they reject the application, refuse to enter into a rental agreement or fail to approve the application within three business days. If a resident withdraws their application, the investor may withhold money from the earnest money deposit for lost rent but must make reasonable efforts to re-rent the premises to mitigate damages. ATCP 134.05

Prohibited Practices

Advertising or Renting Condemned Premises

Investors cannot advertise or rent a property that’s not suitable for people to live in. If the property is condemned or there’s a notice of such, investors cannot rent it out. Once all necessary repairs are made and the property meets local safety standards, it can be advertised for rent. (ATCP 134.09(1))

Unauthorized Entry

The law allows investors to enter a rented property only under certain conditions. If there’s a special agreement (Non-Standard Rental Provision) between investor and resident, entry under additional circumstances can be permitted. However, without the resident’s permission, investors can’t freely enter the property. The law only allows investors to enter without prior approval in a few specific situations. (ATCP 134.09(2))

Automatic Lease Renewal

Investors must remind residents about an automatic lease renewal 15 to 30 days before the resident’s final decision. If they don’t, the renewal isn’t valid. (ATCP 134.09(3))

Confiscating Personal Property

Investors can’t keep a resident’s belongings unless the law allows it. (ATCP 134.09(4))

Retaliatory Eviction

Investors can’t punish residents for reporting violations or asserting resident rights. This includes increasing rent, decreasing services, refusing to renew a lease, evicting, or threatening to do these. (ATCP 134.09(5))

Failure to Deliver Possession

Investors must allow residents to move in at the agreed time unless something is out of their control. (ATCP 134.09(6))

Self-Help Eviction

Investors can’t force residents out without following the legal eviction process. This includes disconnecting utilities, changing locks, or removing doors. (ATCP 134.09(7))

Late Rent Fees and Penalties

Investors can only charge late fees if it’s in the rental agreement. If a resident pays late rent, the payment must first cover any current rent due before covering a late fee. (ATCP 134.09(8))

Misrepresentations

Investors are prohibited from lying about the property or agreement to get a resident to sign. They can’t misrepresent the unit, hide extra charges, or use “bait and switch” tactics. (ATCP 134.09(9))

Right-To-Entry

If allowed, the investor can enter the property by following these steps:

1. Give the resident a 12-hour notice beforehand;
2. Enter at reasonable hours for these purposes:
   • Checking the property;
   • Fixing things;
   • Showing the property to possible residents or buyers;
   • For reasons approved by Non-Standard Rental Provision.

If an investor comes in while you’re renting, they have to let anyone inside know they’re there. They could knock or ring the doorbell. If anyone is there when the investor comes in, the investor has to say who they are before they come in.

Non- Standard Rental Provisions

Wisconsin law requires that investors put certain provisions separately so that a resident will see them, and understand that their rights are being removed by this section. If an investor wants to do these certain things, they HAVE to be in a Non-Standard Rental Provision.

Identification of Investor or Authorized Agents

Investors must provide in writing the contact details of the people responsible for rent collection and property management. residents should be able to reach these people easily.

Investors must also provide the details of the property owner or a person who can accept legal documents for them. This address (not a P.O. Box) must be in Wisconsin. If any changes occur, the investor must notify within 10 business days.

However, these rules don’t apply to owner-occupied buildings with up to four units. In these situations, the investor lives in the building, so the resident knows who to contact. (ATCP 134.04(1))

Maintenance and Repairs

In order to address problems with building maintenance, the investor must provide a contact person for rent collection, maintenance, and legal papers. The contact person must be located within the State of Wisconsin.

Investors are obligated to maintain the property in compliance with housing codes. residents must promptly report any needed repairs to the investor. Additionally, there are some minor repairs and maintenance residents are responsible for.

Investor Repair Obligations

• Make sure heating, plumbing, electrical systems, and building structures are in good shape. (Wis. Stat. 704.07(2)(a))
• Keep shared spaces like hallways, storage rooms, laundry rooms, parking areas, and yards tidy and safe. (Wis. Stat. 704.07(2)(a)1)
• Look after all equipment given, including all appliances. (Wis. Stat. 704.07(2)(a)2)
• Follow all local housing rules. If a resident damages something, it doesn’t remove your duty to keep the place maintained for other residents. (Wis. Stat. 704.07(2)(a)5)
• Put a working smoke detector on every floor, including the basement. If a resident reports a broken smoke detector, fix it within five days. (Wis. Stat. 101.145)
• Install and look after carbon monoxide detectors in all new and most existing homes. (Wis. Stat. 101.149)

Resident Repair Obligations

• Do small fixes like changing light bulbs. (Wis. Stat. 704.07(3)(b))
• Keep the apartment clean and safe.
• Make sure smoke detectors work. If not, tell the investor in writing. (Wis. Stat. 101.145)
• Follow all local housing rules. (Wis. Stat. 704.07(3)(c))
• Set the thermostat to a reasonable temperature to stop pipes from freezing.
• Fix damages caused by you or your guests, or pay the investor to do it. (Wis. Stat. 704.07(3)(a))

Promises to Repair

ATCP 134.07, The investor must specify in writing when they will complete repairs, cleaning, or improvements, and must give the resident a copy of these promises. Repairs must be completed on time, and the investor must tell the resident if something happens to delay the repairs.

If your investor made a written or verbal promise to repair but has not followed through, you may file a complaint with Consumer Protection by calling (800) 422-7128.

Terminating Tenancy/Risk of Eviction

Wis. Stat., sec. 704.17, An investor may evict a resident who does not pay their rent, pays only part of their rent, or pays the rent late. An investor may also evict a resident who breaks the rules or terms of the rental agreement.

Residents can get a 5-day or 14-day written notice to leave the property:

• 5-day “Fix” Notice: This notice from the investor gives the resident five days to fix the issue or move out. If the resident fixes it, they can stay. If not, the investor can start eviction steps under Wis. Stat. ch. 799.
• 14-day Notice: This notice says that the resident has to leave because they broke the rental agreement. This notice doesn’t let the resident pay rent or fix the problem.

For month-to-month renters, if you don’t pay rent or break the rules, your investor can give you a 14-day notice without first giving a 5-day notice to fix the issue.

For renters with a lease of one year or less, if you don’t pay rent on time, the investor must first give a 5-day notice. This gives you a chance to fix the problem before the investor can start eviction proceedings. If you fix it but are late on rent again within 12 months, then the investor can give a 14-day notice without a chance to fix it.

If you get the proper notice but don’t leave, the investor can start eviction proceedings in Small Claims Court. You have the right to go to court to fight the eviction. If you don’t go to court, the investor can automatically get the eviction order. The investor can’t take your things or use force to make you leave until the judge orders an eviction.

Also, if the court decides you stayed in the rental unit wrongfully, the court can order you to pay the investor double the rent (calculated daily) for each day you stayed unlawfully.

Criminal Activity

Wis. Stat. sec. 704.17(3m), An investor may serve a 5-day Notice to vacate the premises without an option to stay if the resident threatens the health or safety of other residents or immediate neighbors.

A resident who is accused of criminal activity or drug-related criminal activity may seek legal advice/volunteer clinic or resident resource center.

Discrimination

Both investors and residents are protected against discrimination based on race, color, religion, sex, national origin, ancestry, disability, lawful source of income, marital status, and more.

To learn more, please visit the U.S. Department of Housing and Urban Development website to read about The Fair Housing Act.

Penalties for Violating Residential Practice Rule

If the department finds any violations, they try to resolve them amicably. But, if needed, they will enforce penalties. The penalties a court imposes depend on the severity of the violations and resulting harm.

Under Wis. Stat. sec. 100.26(6), penalties can range from $100 to $10,000 per violation. Criminal charges may also be filed, leading to fines from $25 to $5,000 per violation, or a year in jail, or both.

In addition, the court may issue a warning to not repeat these violations and may order restitution to the victim. Anyone affected can also file a private lawsuit to recover any losses caused by these violations.

The Department of Agriculture, Trade, and Consumer Protection investigates violations of the Residential Rental Practices rules. If prosecution is required, they cooperate with the Wisconsin Department of Justice or the local District Attorney.

Resources

Residents and investors can access resources provided by local agencies or organizations that specialize in housing matters.

• Wisconsin Department of Agriculture: https://datcp.wi.gov/Pages/Homepage.aspx
• Wis. Stat. ch. 704 investor and resident: https://docs.legis.wisconsin.gov/statutes/statutes/704.pdf
• Wis. Adm. Code ch. ATCP 134, Residential Rental Practices: https://docs.legis.wisconsin.gov/code/admin_code/atcp/090/134/
• The Department of Neighborhood Services (DNS) in Milwaukee: https://city.milwaukee.gov/DNS
• Resident Resource Center: https://www.tenantresourcecenter.org/
• Consumer Protection: https://datcp.wi.gov/Pages/Programs_Services/FileConsumerComplaint.aspx

Understanding the Current Landscape

Median Home Price by State

Source: https://wisevoter.com/state-rankings/median-home-price-by-state/

Before we dive into the potential housing market forecast, it’s essential to consider the factors influencing the real estate landscape in Wisconsin. In early 2022, the state, like many others, experienced shifts due to the COVID-19 pandemic. With the economy still in an uncertain state, here are some key factors to keep in mind:

• High Mortgage Rates: While mortgage rates remain historically low, they have climbed in recent months to stabilize with inflation, generating some hesitation among prospective house buyers. Homeowners with lower-rate mortgages have stopped listing their homes for sale which has led to home prices being unaffordable for more buyers.
• Low Inventory Levels: Inventory levels were a significant concern in the housing market. A limited supply of homes in certain areas has led to increased competition among buyers and rising home prices.
• Uncertain Economic Conditions: Wisconsin’s economy, like the rest of the nation, plays a vital role in the housing market. Factors such as employment rates, income levels, and overall economic stability can impact the ability of residents to buy or sell homes. With higher inflation affecting rent and housing, the Fed is working to hold interest rates steady. Mortgage rates climbed in comparison with the Fed’s string of rate hikes.

Overall, we have seen a more cautious and informed buyer market. Sales volumes have been decent, but there have been a few plateaus, indicating market saturation in certain sectors. Even people who are willing to pay high prices have been less likely to purchase a home, and sellers have been less likely to sell due to lower interest rates.

In the coming year, housing affordability will be influenced by home prices, mortgage rates, economic and inventory levels. Where are these trends leading? Let’s discuss the housing market forecast for 2024.

2024 Housing Market Forecast for Wisconsin

While we can’t predict the future with certainty, we can make educated guesses based on current trends. Here are some potential scenarios for the Wisconsin housing market in 2024:

Increased Interest in Wisconsin

Given historically low mortgage rates, it’s possible that demand for residential real estate in Wisconsin will remain steady. People will continue to seek homeownership, particularly if mortgage rates dip. Additionally, declines in mortgage rates could spur sellers to trade their existing homes, which would benefit low inventory challenges.

“Retreating mortgage rates will bring more buyers and sellers to the market and get Americans moving again,” says NAR (National Association of Realtors) chief economist Lawrence Yun. While this may be true, we aren’t expecting sales to increase dramatically.

Nationwide, between August 23 and October 23, 2023, 25% of homebuyers looked to relocate to a new metro region. Approximately 3K people searched to move to Wisconsin rather than move away from the state. It has even been noted that many Gen Zers are looking to leave expensive, bustling cities for a quiet, less-expensive life in the Midwest or Mountain regions. While Gen Z is still a very renter-majority generation, they had a 74% share and 4.5 million renters added in the last five years, which is more than any other age group. While 52% of Millennials are homeowners, they were the largest generation in the nation that transitioned from renter-majority to owner-majority in 2022.

These two generations have consistently shown more interest in the Midwest, South, and middle-metro regions and if the market continues in their favor, there could be a substantial increase in Wisconsin homeowners in 2024.

Inventory Challenges

If inventory levels do not increase significantly, we may continue to see competition among buyers, leading to rising home prices. The nation had a 3.4-month supply of housing inventory as of September 2023, per NAR, which is low enough to be considered a seller’s market. Sellers could benefit from a seller’s market, but buyers may face challenges.

To dramatically boost inventory levels, either a surge of homeowners listing their existing houses or a large number of new-construction homes entering the market would be required.

Economic Uncertainty on Housing Prices

The overall economic health of Wisconsin will be a key determinant. A robust economy with strong job growth can support the housing market by providing residents with the means to invest in real estate. But with the Fed’s war on inflation, as long as the economy continues to chug along, this new normal will likely be adjusted to.

That is the catch though, the economic uncertainty is still looming for 2024 nationwide. So will home prices rise or decrease in 2024? While some experts anticipate a decrease due to factors like demand, affordability issues, and economic uncertainty, other experts predict that housing prices will rise due to continued high demand and relatively low supply. There is no clear direction where housing prices will end up, but we can be mindful of trends to predict that demand and economic stability will be a huge factor.

The median home price (nationally) in September 2023 of $394,300 was only around $20K short of the highest monthly home price ever recorded by NAR ($413,800 in June 2022). While, the median price of a home in Wisconsin in July 2023 was $300,000, a 7.5% rise from the previous year, which is comparable to the national average. Southeastern Wisconsin was the most popular place to buy a home in Wisconsin in 2023.

Local market conditions, job trends, and regional dynamics will all have a substantial impact on the trajectory of property values.

Changing Government Policies

Government policies and regulations can have a substantial impact on the housing market. Changes in tax policies, lending regulations, and other factors could influence the market in unforeseen ways. The U.S. inflation rate as of September 2023 was 3.7 percent — still a bit higher than the Fed’s stated goal of 2 percent.

High mortgage rates, high property prices, and low inventory levels are all conspiring to make the 2024 housing market challenging for both buyers and sellers. However, if interest rates fall in 2024, as some experts believe, market activity will rise in reaction.

What Can Homebuyers and Sellers Do?

Whether you’re looking to buy or sell a home in Wisconsin in 2024, it’s essential to stay informed and be prepared for different scenarios. Here are some tips to consider:

• Stay Informed: Keep a close eye on real estate news and market trends. Regularly check for updates on mortgage rates, inventory levels, and economic conditions. Keep a close eye on real estate news and market trends. Regularly check for updates on mortgage rates, inventory levels, and economic conditions.
• Financial Readiness: Ensure your financial situation is in good order. Whether you’re buying or selling, having your finances in order can make the process smoother.
• Local Expertise: Work with a local real estate agent who has a deep understanding of the Wisconsin market. They can provide valuable insights and guide you through the process.
• Flexibility: Be prepared to adapt to changing market conditions. If you’re a buyer, you might need to adjust your expectations, and as a seller, you might need to adjust your pricing strategy.

One hotly debated topic in the realm of housing affordability is rent control. Proponents argue that it’s a crucial step towards addressing the problem, but as we delve deeper, it becomes evident that it might not be the solution it’s often painted to be. Let’s break down the reasons behind the skepticism.

1. Deteriorating Prospects for New Housing Development:

One of the primary concerns surrounding rent control is its potential to discourage new housing projects. When rents are restricted, the profitability for developers diminishes, leading to a reduction in new housing units. This supply shortage, in turn, drives up demand and prices, pushing housing costs further out of reach. The consequence is that we struggle to accommodate the diverse housing needs of our population while failing to keep housing expenses in check.

Simply put, there is a domino effect of supply and demand on both sides of the housing crisis where developers feel like they won’t make a profit, which leads to seemingly unaffordable housing or new housing that remains on the market, which then leaves many average-income buyers (the majority of the housing prospects) out of luck.

2. Neglected Existing Housing Stock:

Over time, rent control can lead to a troublesome situation where existing housing deteriorates. Property owners, facing limitations on their rental income, may lack the financial means to maintain and improve their properties. This results in the gradual decay of our existing housing stock, leaving residents with fewer options for safe, well-maintained housing.

3. Equitable Concerns and Distorted Market Dynamics:

Rent control also raises concerns related to equity. While it intends to assist lower-income families, it sometimes inadvertently extends the same benefits to individuals with more substantial financial resources. The unanticipated outcome is that wealthy individuals secure rent-controlled apartments, possibly depriving those who genuinely need assistance.

Furthermore, rent control can tempt all residents, regardless of their income or wealth, to remain in their apartments for longer periods, even when those accommodations are no longer suitable. This intensifies competition for the limited number of vacant units.

4. Disparities in Rent Control Beneficiaries:

Various studies have consistently shown that rent control disproportionately supports upper-income and white residents at the expense of individuals with moderate incomes and people of color. This inequitable distribution of benefits raises significant concerns about the fairness and effectiveness of such policies.

It’s important to emphasize that these concerns aren’t merely conjectures; they’ve been validated by empirical research conducted by researchers from a wide range of political perspectives. The national debate on rent control is a multifaceted one, and it’s crucial that we meticulously assess its potential ramifications and explore alternative solutions to the housing crisis that prioritize affordability, quality, and fairness for all.

Awareness of National Rent Control

While rent control continues to be a subject of debate, it’s important to consider the perspectives presented in news sources. One article from The Hill highlights the calls for national rent control as a means to address housing affordability. Advocates argue that it could help alleviate the burden on residents, but the concerns discussed here are critical to address.

Additionally, a piece from USA Today discusses the ongoing debate surrounding federal rent control laws. The complexities and implications of these laws are multifaceted, and it’s essential to carefully consider the potential consequences. Furthermore, Real Estate Investing Today presents a viewpoint that national rent control might exacerbate the housing crisis. The concerns raised in this blog align with the perspective presented in this source, emphasizing the importance of a balanced approach to addressing the housing crisis.

Addressing the housing crisis is a complex journey that demands a balanced approach to ensure that housing remains affordable and accessible for everyone. It’s a conversation that must involve careful consideration of all viewpoints and potential solutions to find the most effective path forward.

In a world that seems increasingly unpredictable, the central bank’s decisions hold immense importance for investors, businesses, and everyday Americans alike. Let’s delve into the latest updates and insights from various sources to better understand the current economic climate and the Federal Reserve’s role in shaping it.

Source: Yahoo! Finance Article

The Fed’s Dual Mandate

The Federal Reserve operates under a dual mandate: to promote maximum employment and to maintain stable prices, or in other words, control inflation. These two goals can sometimes be in tension. When the economy is doing well and employment is high, there is often upward pressure on prices (inflation). Conversely, during economic downturns, the Federal Reserve may lower interest rates to stimulate spending, even if it risks inflation. Striking a balance between these mandates is never easy.

The pandemic had significantly disrupted global supply chains, leading to inflationary pressures. Meanwhile, labor shortages and rising wages had contributed to concerns about rising labor costs, further fueling inflation. On the other hand, the Federal Reserve was also contending with the need to support employment recovery, as millions of jobs were still lost due to the pandemic. As such, a delicate balance had to be maintained, which brought into question whether the Federal Reserve should raise or hold interest rates steady.

Federal Reserve Expected to Maintain Steady Rates

We have recently learned that the Federal Reserve is expected to keep interest rates steady in the face of ongoing economic uncertainty. This decision reflects the Federal Reserve’s cautious approach to monetary policy. While they acknowledge the persistent challenges posed by inflation, they are wary of taking actions that might negatively impact economic growth.

The Fed’s decision to hold interest rates steady was likely driven by several key factors:

• Inflation Expectations: They have been carefully monitoring inflation expectations, and while they had risen, they were still within an acceptable range. The decision to hold rates may have been made to see if these expectations would moderate over time.
• Labor Market: Their commitment to fostering maximum employment played a significant role. They sought to ensure that the labor market recovery was robust and sustained before making any major policy changes.
• Economic Uncertainty: The global economy remained uncertain (and still does), and the Fed wanted to avoid destabilizing actions that might disrupt the ongoing recovery.

Bowman’s Outlook for Rate Hikes

While the Fed opted to hold interest rates steady at the time of this analysis, it also left the door open for potential rate hikes in the future. One of the Federal Reserve’s governors, Michelle Bowman, has expressed her belief that it would be appropriate to raise rates further in 2023. This viewpoint reflects the division within the Federal Reserve regarding the timing and necessity of rate hikes. Bowman’s stance suggests that some members of the Federal Reserve are leaning towards more aggressive action to combat inflation, though others prefer a more patient approach.

September 2023 Rate Decision

In September 2023, CNBC reported that the Federal Reserve maintained its key interest rate. This decision came amid growing concerns about rising inflation and its potential impacts on the broader economy. By holding rates steady, the Federal Reserve aimed to strike a balance between controlling inflation and supporting economic recovery.

Identifying the Biggest Winners

It’s crucial to understand that the Federal Reserve’s actions affect not only the financial markets but also the everyday lives of consumers. Interest rates impact borrowing costs for mortgages, auto loans, and credit cards, as well as the returns on savings and investments.

Low interest rates have benefited homebuyers, who have enjoyed affordable mortgage rates. Likewise, borrowers with variable-rate loans have seen a decrease in their interest expenses. Furthermore, the stock market has benefited from lower borrowing costs, driving up stock prices and offering gains to investors.

The Federal Reserve faces a challenging task in maintaining economic stability and keeping inflation in check. While the central bank is expected to maintain steady rates for now, internal divisions suggest that rate hikes might be on the horizon in the near future. The Federal Reserve’s decisions have far-reaching effects, influencing various aspects of the economy, from housing and lending to the stock market. As we move forward, it is crucial to keep a close eye on the Federal Reserve’s actions, as they will continue to shape the economic landscape in the coming months.

This blog explores the dynamics of low-income renting, why affordable housing is important, and the role property owners play in this situation.

The Low-Income Rental Landscape

Low-income renting is a term that encompasses a wide range of situations, from government-subsidized housing programs to private rental arrangements. It’s crucial to understand the landscape of low-income renting before discussing anything else:

• Government Housing Programs: Many governments worldwide offer affordable housing programs that aim to provide safe and affordable housing to low-income individuals and families. These programs often come with eligibility criteria, waiting lists, and a rigorous application process.
• Private Rentals: A significant portion of low-income individuals rent from private landlords who own apartments, houses, or multi-unit buildings. Private rentals vary widely in terms of quality, price, and landlord behavior.

A dissertation by Dr. Anna Perlmutter, Ph.D. in Organizational Behavior and 8-year landlord for lower-income residents in Cleveland, OH points out a massive connection between private ownership and harmful renting habits that disproportionately affect those who need low-income housing. She states, “Low-income rental housing is defined by scarcity. In the present system, the landlord’s role is responsible for allocating scarce resources to stakeholders, resulting in conflict and compromise for all involved, especially low-income renters.”

So how do property owners impact low-income housing specifically? And why does affordable housing matter for the general well-being of the community? Let’s discuss.

The Problem with Housing Insecurity

In the United States, there is a deficit of over 7 million affordable homes for the 10.8 million or more families with extremely low incomes. There isn’t a single state or county where a renter working full-time at minimum wage can afford a two-bedroom apartment, much less a one-bedroom apartment.

“While housing insecurity can affect both homeowners and renters, it is much higher in renting
populations, especially those who are low-income earners. These individuals are more
likely to be rent-burdened, vulnerable to eviction, and lack adequate support services to
stabilize their living situation,” says Dr. Perlmutter. “Housing insecurity disproportionately affects the most vulnerable communities in the United States, including children, people of color, veterans, LGBTQ+ populations, and the mentally ill. Nearly a third of all renters are severely housing cost-burdened, spending more than half of their incomes on rent and utilities.”

This is a huge problem! When families can’t afford to do anything but pay bills, it doesn’t give them the financial means to provide for themselves in other areas. Add expensive renting to the mix and that begins to create a homelessness problem.

Why Low-Income Housing Matters

Housing plays a crucial role in decreasing long-term poverty and boosting financial progress. Studies indicate that making affordable housing more accessible is the best way to lessen child poverty and enhance economic advancement in the United States.

“Eviction is a frequent and, in some cases, an annual fact of life for many of America’s poorest renters, leading to many damaging impacts to health and wellness, economic mobility, education, community and family stability, susceptibility to crime, violence, and trauma, among other well-documented detrimental outcomes,” states Dr. Perlmutter.

Improving access to low-cost housing boosts the economy. Studies reveal that the lack of such housing costs the U.S. economy around $2 trillion annually due to reduced wages and productivity. Without affordable homes, families have limited chances to boost their income. This then turns to affecting local and national economies. But most importantly, it hinders the success of lower-income families and individuals struggling with homelessness.

The Role of Property Owners

Property owners play a critical role in the lives of low-income renters. Dr. Perlmutter states, “Landlords are critical ‘gatekeepers’ in the rental housing market. Their perceptions shape the markets in which they operate and, as such, their perceptions and resulting actions are key to understanding the rental housing landscape and market outcomes. This is particularly true with regards to their responses to the public sector.”

“In the private sector, the landlord serves as the fulcrum between public housing policy and the public that is to be housed. Navigating a complex array of opportunities and challenges ranging from economic concerns to regulatory requirements to emotive and interpersonal exchanges, landlords make decisions that shape the lives of their residents in dramatic and enduring ways.”

It’s important to note that there is an understanding that property ownership/management is a business that needs to profit as well, we aren’t trying to discredit the need for property owners to have substantial rates and standards in order to keep steady profit. What is important to note are the property owners who don’t take into consideration the need to connect with the community or invest in affordable housing.

How Property Owners Hurt Low-Income Renters

• High Rents: Some property owners take advantage of the housing shortage by charging excessively high rents, leaving low-income renters struggling to make payments. This can lead to housing instability, eviction, and homelessness.
• Poor Maintenance: Neglecting property maintenance and repairs can create unsafe living conditions for residents. This not only affects the quality of life but can also jeopardize health and well-being.
• Discrimination: Although illegal, low-income renters, particularly those from marginalized communities, may face discrimination when trying to secure housing. Discriminatory practices by landlords contribute to social inequality and exclusion. It is important to note that discrimination due to race, color, nationality, religion, sex, family status, or disability is illegal under the Fair Housing Act.
• Eviction Practices: Some landlords resort to aggressive eviction practices, such as no-cause evictions, that disproportionately impact low-income renters. These practices can disrupt lives and worsen financial instability.

The Impact on People’s Lives

The way landlords interact with low-income renters directly influences their lives. When landlords are supportive and responsible, it can provide stability and a sense of security. When private and public sectors get the real chance to connect with each other and the community to learn the true consequences of inaccessible low-income housing, they can create a flourishing environment from the bottom up. Here are some positive impacts that affordable housing can provide:

• Fewer Evictions: Housing stability is at the core of affordable housing which aims to prevent evictions regardless of economic climate.
• Overall Better Health: A person’s housing plays a significant role in determining their overall health and well-being. It is considered a crucial factor (among many other factors) that can greatly influence various aspects of an individual’s health and quality of life.
• Healthier Economy: When people feel better and have more resources supporting them, they feel more secure. When residents of affordable housing communities are able to afford their rent, they have the opportunity to allocate more of their income towards local purchases, which in turn benefits the local economy (as well as the national economy).
• More Job Opportunities: The building and construction of affordable housing create more jobs, even well after they are built. Also having stable housing ensures that more people can focus on maintaining their jobs instead of worrying about where to sleep.
• Ending the Cycle of Poverty: Another long-term economic benefit of affordable housing is the chance to decrease generational and childhood poverty.
• Increased Financial Health: Affordable housing checks off a stability factor that can increase financial health. As more individuals have more money to allocate to other things, they can begin saving more of their paychecks or making other financial decisions that were not previously accessible to them.

Support Affordable Housing

Supporting affordable housing programs is an investment in the well-being of our community. Here are some resources for housing assistance in Wisconsin:

• Division of Energy, Housing and Community Resources Wisconsin
• Rental Property Association of Wisconsin
• Milwaukee Community Land Trust
• Community Development Alliance
• Growing MKE
• Marine Credit Union’s Finding HOME
• Wisconsin Housing and Economic Development Authority

In this blog, we’ll explore the various tax advantages of rental properties, helping you understand how they can work to your advantage.

1. Mortgage Interest Deduction

One of the most substantial tax benefits of owning rental property is the ability to deduct mortgage interest. As a property owner, you can deduct the interest paid on your rental property’s mortgage from your taxable income. This deduction can significantly lower your overall tax liability. Keep in mind that this deduction applies to the interest portion of your mortgage payment, not the principal.

Your mortgage lender should have sent you a Form 1098 detailing the interest you paid for the year sometime in January or early February. When you file your tax return, you usually take the deduction on IRS Schedule E, which is for owners of residential rental property.

2. Depreciation

Depreciation is another powerful tax benefit that rental property owners can leverage. Many people consider their homes to be assets that grow in value over time, while a rental property is more of a business asset.

If you own a rental property, you can probably deduct that depreciation on your tax return each year. But the math isn’t straightforward. There are several methods for calculating depreciation on a rental property, which is why it’s a good idea to seek advice from a trained tax professional if you’re a property owner. Co-ops and condominiums have their own set of rules too.

The IRS allows you to depreciate your rental property over (not always the correct timeframe) 27.5 years for residential properties and 39 years for commercial properties. This means you can deduct a portion of the property’s value each year as a non-cash expense, even if the property is appreciating in value. This can offset your rental income, reducing the amount of income subject to taxation.

3. Repairs and Maintenance To Rental Property

The costs associated with maintaining and repairing your rental property are generally tax-deductible. This includes expenses such as fixing plumbing issues, repainting, or replacing appliances. It is important to understand what can and cannot be deducted in order to make sure you are abiding by tax laws. These deductions can help reduce your taxable income and are particularly advantageous in the early years of property ownership when maintenance costs are typically higher.

People misclassify repairs (or improvements) more often than not. Often, they mistakenly deduct capital improvements, which could be a red flag for the IRS. Instead, these improvements get capitalized and become part of the home basis paid. This could eventually lead to a bigger depreciation write-off, but they should not be considered tax deductions.

Here are a few examples of repairs or improvements that the IRS dictates should be capitalized instead of deducted:

• Additions to the home (bedrooms, patios, basement, etc.)
• Landscaping or sprinkler systems
• Storm windows
• New roof
• Water heaters
• Flooring
• Insulation

To learn more about the capitalization of home improvements for tax purposes, check out IRS Publication 527.

4. Operating Expenses

Operating expenses are similar to repairs and maintenance, except more deductions can apply to running the actual rental business overall. The IRS explains that necessary expenses may include:

• Advertising costs
• Leasing commissions
• Property management fees
• Supplies
• Landscaping
• Pest control
• Utilities paid by the landlord
• Property taxes

Learn more about these deductions on the IRS website.

5. Property Taxes

You can deduct property taxes associated with your rental property from your taxable income. These deductions can vary by location and can have a significant impact on your overall tax liability. Be sure to keep records of your property tax payments to claim this deduction accurately.

6. Owner Expense Deductions

Even if a real estate investor or property owner hires a property manager to take care of your property and residents, there may still be additional expenses you can deduct from your taxable income:

Continuing Education: Money spent on a real estate investing club, subscriptions to real estate or business journals, and tuition paid for continuing education (related to real estate) can all be deducted from rental property revenue.

Insurance Premiums: If you have insurance on your rental property, such as landlord insurance, you can deduct the premiums from your taxable income. This deduction can help offset the cost of insuring your property and provide additional tax savings.

Travel and Transportation: If you need to travel to your rental property for management and maintenance purposes, you can often deduct related expenses. This includes mileage, accommodation, and meals while you are away. Keep detailed records of your expenses and consult with a tax professional to ensure compliance with IRS guidelines.

As stated in IRS Publication 463:

• Travel must be mainly for business and have a clear business purpose
• The majority of the time must be spent on business activities and not leisure activities
• Travel expenses must be ordinary and necessary for the real estate business but not be overdone, such as staying in a reasonably-priced hotel versus a five-star resort

Furthermore, if you are looking to deduct auto expenses, make sure you are following the standard mileage deduction of 65.5 cents per mile. Or you could keep track of an itemized deduction such as gas, insurance, mileage, and car payments.

Home Office Deduction: If you have a dedicated home office space that you use for managing your rental property, you may be eligible for a home office deduction. This allows you to deduct a portion of your home-related expenses, such as utilities and maintenance, from your taxable income.

With the simplified option for home office deduction, the IRS allows taxpayers to claim a standard deduction of $5 per square foot, up to a maximum of 300 square feet.

7. Capital Gains Tax Advantage

When you sell a rental property, any profit made from the sale is typically subject to the capital gains tax. The good news is that this tax can be more advantageous than income tax. The capital gains tax rate is often lower than the income tax rate for higher income brackets, providing a tax advantage when you decide to cash in on your investment.

In addition to paying tax on depreciation recapture, an investor also pays a long-term capital gains tax of 0 percent, 15 percent, or 20 percent on any profit from the sale.

The 1031 exchange, or like-kind exchange, is a powerful tax advantage that allows property owners to defer capital gains taxes when selling a rental property and reinvesting the proceeds in another property of equal or greater value. This strategy enables you to continue growing your real estate portfolio without immediate tax obligations. It’s a smart way to leverage your investment while enjoying a tax advantage.

Record-Keeping Tips from the IRS

The IRS expects investors to keep adequate records in order to benefit from the tax advantages of owning a rental property. Here are some tips to help investors:

• Prepare financial statements
• Monitor rental property performance
• Identify the source of income & expenses
• Track deductible expenses
• Prepare tax returns
• Have a separate business bank account

Investors must be able to offer documentary evidence if their tax return is chosen for audit. Investors who are unable to provide evidence to support tax deductions may be subject to additional taxes, penalties, and interest.

The Housing Challenge in Milwaukee

Milwaukee is a vibrant and diverse city, but like many urban areas, it faces challenges in providing affordable and safe housing for its residents. High rent costs, a shortage of affordable housing units, and the need for improved living conditions have created a significant demand for innovative solutions.

This is where Growing MKE comes in.

What is “Growing MKE”?

Growing MKE is an initiative led by the Department of City Development (DCD) that is making a positive impact on Milwaukee’s housing landscape. This program is a concerted effort to increase affordable and safe housing options for the city’s residents. Growing MKE is making strides toward a better future by combining resources, expertise, and a commitment to equitable housing.

“These plans were shaped through stakeholder and resident input and include recommendations to increase housing supply within the city of Milwaukee. Goals also include supporting new housing that creates walkable urban neighborhoods, increasing transit options and access to jobs, and providing more quality, affordable housing choices for all Milwaukeeans. This project will also advance Mayor Cavalier Johnson’s vision for economic prosperity, which includes updating the City’s Zoning Code to support new development and growth. The project will result in a recommended revision to the Citywide Policy Plan as well as Zoning Code updates,” Growing MKE states on its website.

With help from the city and residents (like you!), Milwaukee areas are looking for new hope and new ownership. Input from the community has been very helpful, as Growing MKE has hosted a few community events, “pop-ups”, and open houses since the summer of 2023. More events are said to be underway this fall, but to get involved with the housing projects go to the Growing MKE website.

Additional Help from Other Organizations

The Community Development Alliance (CDA), is also looking at ways to focus on ‘forever’ affordable housing. The CDA has partnered with Growing MKE in creating an equitable engagement process, as well as, sharing the visions of affordable housing.

“Housing is a primary social determinant of health. It affects everything from educational outcomes to crime in our communities, to job opportunities and overall health. Some of the problems we see in Milwaukee and being on the worst list when it comes to Black and Latino success, the root cause of that is housing and homeownership,” said CDA Chief Alliance Executive Teig Whaley-Smith.

The CDA will bring together parties ranging from banks and donors to residents and builders to debate not only how to construct more affordable housing but also how to keep it affordable for future generations. A partnership with the Milwaukee Community Land Trust is one way the CDA is accomplishing this (on top of supporting Growing MKE).

“We want to make sure that we’re serving people who are in neighborhoods that are at risk of gentrifying. We also want to be able to serve folks that normally, without some type of intervention, would never get into homeownership… This model really helps us serve those people making $15 to $25 an hour,” said Lamont Davis, the Executive Director of the Milwaukee Community Land Trust (MCLT), who is working on a solution through land trusts.

A key factor that makes MCLT houses ‘forever’ affordable is that when the first family to buy the home decides to leave, there is a guarantee that the house will remain at an affordable price for the next homeowners. MCLT is planning on having 30 affordable houses in Milwaukee by 2025. That’s part of CDA’s goal of 100 new affordable homes each year. For more information on MCLT’s mission or to inquire about home ownership go to the MCLT’s website.

How You Can Get Involved

If you are passionate about the cause of affordable and safe housing in Milwaukee, there are several ways to get involved. You can:

• Stay Informed: Keep up-to-date with Growing MKE’s initiatives, the Department of City Development’s work, the Community Development Alliance’s work, and the Milwaukee Community Land Trust to support affordable housing.
• Volunteer: Many organizations and community groups work alongside Growing MKE (as stated above). Consider volunteering your time and skills to support their efforts.
• Advocate: Join or support advocacy efforts to raise awareness of the importance of affordable and safe housing. Engage with local officials to ensure this issue remains a priority in Milwaukee.

In this blog, we’ll explore some of the best places to invest in rental properties in the Milwaukee area. We’ll cover the areas with the best potential ROI, as well as some tips for successful investing in the area. 

Why Invest in Milwaukee?

While Milwaukee’s population growth is slow and sits at a steady ~560,000 residents, the economy in metropolitan Milwaukee is growing quite well! Despite the affordability of home prices in Milwaukee, there is a significant presence of rental properties in many neighborhoods within the city and its surrounding suburbs. One example is the Yankee Hill neighborhood, located near Downtown, where nearly 90% of the homes are occupied by renters.

Over the past year, the value of middle-tier homes has increased by 6.8% (Zillow, August 31, 2023). Additionally, according to Zumper, the median rent for 2-bedroom homes in Milwaukee has remained substantially flat at around $1,200 (as of September 2023). 

These facts make Milwaukee a great place to consider investing in real estate. With the city amenities and local attractions growing, there will be even more of a reason to check out the city and the surrounding areas. 

Factors to Consider When Investing in Rental Properties

Before investing in any property, it’s important to consider a few key factors. These include rental demand, property appreciation, and potential rental income. By understanding these factors, investors can make more informed decisions and maximize their returns. Let’s take a closer look at each factor.

Rental Demand

When it comes to rental demand, the Milwaukee area has a lot to offer. With a thriving economy, the city presents an ideal situation for rental property investors. The area also has a variety of rental property options, ranging from single-family homes to luxury condos. With so many options, investors can find a rental property that suits their needs and budget.

It would be beneficial to study the trends in the local rental market. Are rental rates increasing, stable, or decreasing? Look at vacancy rates and occupancy trends to gauge the overall demand for rental properties. Areas near universities, employment hubs, and public transportation tend to attract more residents.

Consider the demographics of the area. Is it a family-friendly neighborhood, a student area, or a location that caters to professionals? Understanding the target demographic will help you tailor your investment strategy.

Property Appreciation

Property appreciation refers to the increase in the value of your rental property over time. While rental income provides immediate cash flow, property appreciation can significantly enhance your overall return on investment (ROI). 

Make sure to research areas that are experiencing economic growth and development. These regions often see property values rise over time due to increased demand. Also, keep an eye on planned infrastructure projects, schools, parks, and commercial developments in the area. These improvements can positively impact property values.

Potential Rental Income

The potential rental income is a critical factor in determining the financial viability of your investment. Research the current rental rates in the area. Are they competitive, and do they align with your financial goals? Keep in mind that overpricing can lead to longer vacancies.

This is a great time to choose a property type that matches your investment strategy and target market. Factor in operating expenses such as property management fees, maintenance costs, property taxes, insurance, and vacancies when estimating potential rental income. A realistic assessment of expenses will help you determine your net income.

Be aware of rental market cycles. In some seasons or economic conditions, you may be able to charge higher rents, while in others, you might need to adjust your pricing strategy to attract residents.

Top Neighborhoods for Property Investments in Milwaukee

Bay View

Bay View has become one of Milwaukee’s most sought-after neighborhoods for renters. Its proximity to Lake Michigan, trendy bars, restaurants, and parks make it a desirable location for both young professionals and families. Rental demand is high, and property values have been steadily increasing. Here is some more relevant information: 

• Population: ~ 20,000 
• Median rent- 1-bedroom (as of September 2023): $1,045
• Typical home value (as of August 31, 2023): $289,000
• Renter-occupied households: 48%

*info gathered from Zumper and Zillow. 

East Side

The East Side is known for its vibrant and diverse community. Located north of Downtown Milwaukee, the urban neighborhood is close to Lake Michigan on the east. With the University of Wisconsin-Milwaukee nearby, it attracts students and faculty looking for rental properties. The neighborhood has a mix of historic and modern housing options, providing investors with a range of opportunities. Here is some more relevant information: 

• Population: 34,000 
• Median rent- 1-bedroom (as of September 2023): $1,500
• Typical home value (as of August 31, 2023): ~$400,000
• Renter-occupied households: 55%

*info gathered from Zumper and Zillow. 

Walker’s Point

Walker’s Point has experienced a rejuvenation in recent years, with a surge in new restaurants, shops, and businesses. Its proximity to the Third Ward and downtown Milwaukee makes it a convenient choice for renters looking for a lively urban atmosphere.

• Population: The population of Walker’s Point is part of the larger population of Milwaukee, which was estimated to be around 590,000 residents as of September 2021.
• Median rent- 1-bedroom (as of September 2023): $1,500
• Typical home value (as of August 31, 2023): $112,700
• Renter-occupied households: 73%

*info gathered from Zumper and Zillow. 

Brewer’s Hill

Brewer’s Hill is an up-and-coming neighborhood just north of downtown Milwaukee. It’s an area undergoing revitalization, making it an attractive option for property investors seeking potential appreciation. The neighborhood’s historic charm and proximity to downtown are strong selling points.

• Population: The population of Brewer’s Hill, Wisconsin is a part of the larger population of Milwaukee. Milwaukee’s population is around 590,000 residents as of 2021.
• Median rent- 1-bedroom (as of September 2023): $1,100
• Typical home value (as of August 31, 2023): $325,000
• Renter-occupied households: 67%

*info gathered from Zumper and Zillow.  

Other Promising Areas for Property Investments

Wauwatosa

Located just west of Milwaukee, Wauwatosa offers a suburban feel with easy access to the city. It’s known for its family-friendly environment. Rental properties in Wauwatosa can attract families and professionals seeking a quieter lifestyle, without being too far from the city. 

• Population: 47,700
• Median rent- 1-bedroom (as of September 2023): $1,450
• Typical home value (as of August 31, 2023): $367,000
• Renter-occupied households: 37%

*info gathered from Zumper and Zillow. 

Shorewood

Shorewood is a suburb north of Milwaukee, known for its top-rated schools, beautiful parks, and tree-lined streets. Rental properties in this area can command higher rents due to the high demand for real estate.

• Population: ~13,000
• Median rent- 1-bedroom (as of September 2023): $975
• Typical home value (as of August 31, 2023): $478,000
• Renter-occupied households: 52%

*info gathered from Zumper and Zillow. 

Historic Third Ward

The Historic Third Ward is a bustling neighborhood known for its art galleries, boutiques, and lively atmosphere. It’s a popular choice for young professionals and artists seeking a vibrant urban lifestyle.

• Population: The population of the Historic Third Ward is challenging to provide an exact figure as it is a specific neighborhood within the larger Downtown Milwaukee area.
• Median rent- 1-bedroom (as of September 2023): $1,550
• Typical home value (as of August 31, 2023): $440,000
• Renter-occupied households: 60%

*info gathered from Zumper and Zillow. 

Riverwest

Riverwest is a diverse and eclectic neighborhood east of the Milwaukee River. It’s known for its strong sense of community, art scene, and affordable housing options. Investors looking for a unique and vibrant neighborhood should consider Riverwest.

• Population: The population of Riverwest is included as part of the overall population of Milwaukee, which was estimated to be around 590,000 residents as of 2021.
• Median rent- 1-bedroom (as of September 2023): $875
• Typical home value (as of August 31, 2023): $250,400
• Renter-occupied households: 67%

*info gathered from Zumper and Zillow. 

Types of Rental Agreements 

Fixed-Term Lease

A fixed-term lease is the most common type of rental agreement. It is a legally binding contract that outlines the terms of the rental for a set period of time, usually six months to a year. This type of lease typically requires the resident to pay rent on the same day each month, as well as any utilities. It is important to note that this type of lease is very hard to change or terminate once it is signed. This means that if the resident wants to move out early, they are still responsible for paying rent for the remainder of the lease.

One of the key advantages of a fixed-term lease is the stability it provides. Rent remains consistent throughout the lease term, offering residents assurance about their housing expenses. However, it’s essential to note that this stability can be a double-edged sword; while it prevents frequent changes in rent or terms, it also lacks the flexibility of month-to-month leases.

Month-to-Month Lease

A month-to-month lease offers greater flexibility compared to fixed-term leases. This type of agreement has no specified end date and automatically renews on a monthly basis until either the property owner or resident decides to terminate it.

The primary advantage of a month-to-month lease is the flexibility it provides to both owners and residents. It allows residents to give relatively short notice if they decide to move, and property owners can adjust rent or terms with reasonable notice. However, the lack of a long-term commitment can create uncertainty, and residents may face more frequent rent increases.

Sublease Agreement

A sublease agreement is a unique rental arrangement that allows a resident to rent out all or part of their rented space to another party, known as the subtenant or sublessee. This arrangement can be beneficial for the primary resident, as it provides an opportunity to reduce rental expenses or avoid paying rent during periods of absence.

While subleasing can be advantageous, it’s important to understand that the original resident (the sublessor) remains responsible for rent and potential damages. This makes subleasing a potentially riskier option, as the sublessee’s actions can directly affect the primary resident’s rental history and financial liability.

Joint Lease

A joint lease agreement is designed for multiple individuals who wish to rent a property together, typically used by friends, family members, or unrelated individuals sharing a living space. In a joint lease, all residents are equally responsible for the rent and adhering to the lease terms.

The primary advantage of a joint lease is that it allows multiple residents to share the financial responsibilities and obligations. This type of agreement encourages shared decision-making and ensures that each resident is legally accountable for their portion of the rent and any damages. However, it also means that all residents are equally liable for any lease violations or unpaid rent, which can be a drawback if one person doesn’t fulfill their obligations.

Short-Term Lease Pros and Cons

Short-Term Pros

From a Property Owner’s Perspective: Short-term leases can offer property owners several advantages. They provide the opportunity for higher rental income as landlords can adjust rents more frequently based on market conditions. Property owners also have more flexibility in screening residents and can make changes or upgrades to the property without disrupting long-term residents. Additionally, short-term leases can be appealing to property owners who want to maintain tighter control over their investments.

From a Resident’s Perspective: Short-term leases provide residents with flexibility and the ability to adapt to changing circumstances. This is especially beneficial for individuals who may need temporary housing due to job assignments, educational pursuits, or other short-term commitments. Short-term leases often have lower upfront costs, making them more accessible for renters who can’t commit to a longer-term contract.

Short-Term Cons

From a Property Owner’s Perspective: The primary disadvantage of short-term leases for property owners is the potential for higher turnover, which can lead to more frequent vacancies and increased maintenance costs. Property owners may also face higher administrative burdens associated with screening and signing new residents regularly. Additionally, the uncertainty of resident retention can make it challenging to predict rental income accurately.

From a Resident’s Perspective: The major drawback of short-term leases for residents is the lack of stability. Frequent moves can be disruptive and costly. Renters on short-term leases may also experience more uncertainty regarding future housing arrangements which may lead to more stress. 

Long-Term Lease Pros and Cons

Long-Term Pros

From a Property Owner’s Perspective: Long-term leases provide property owners with a stable and predictable income stream. Fewer turnovers mean less time and money spent on advertising and resident screenings. Property owners can also develop stronger landlord-resident relationships, resulting in smoother interactions and property maintenance.

From a Resident’s Perspective: Long-term leases offer residents stability and security. Renters don’t have to worry about frequent moves, and they often enjoy lower monthly rents compared to short-term leases. A sense of belonging to a community can develop when residents commit to longer-term arrangements.

Long-Term Cons

From a Property Owner’s Perspective: Property owners who opt for long-term leases may have less flexibility to adjust rental rates to match market conditions. Additionally, if a resident proves problematic, such as consistently late payments or causing damage, it can be more challenging to remove them from the property with a long-term lease in place.

From a Resident’s Perspective: The primary drawback of long-term leases for residents is reduced flexibility. Life circumstances can change, and residents on long-term leases may find it difficult to relocate without breaking their lease, which can result in penalties or fees. Additionally, renters may be locked into a lease even if they are dissatisfied with the property.

The choice between short-term and long-term leases depends on the specific needs and preferences of both property owners and residents. Short-term leases offer flexibility but come with the trade-off of higher turnover and potential instability. Long-term leases provide stability and cost savings but limit flexibility. Balancing these factors is essential for making informed decisions in the world of real estate leasing, whether you’re a property owner or a resident.

In the ever-changing landscape of the real estate market, it’s essential to stay up-to-date with effective strategies to attract and retain residents. 

How can we reduce vacancy rates, especially here in Milwaukee? Here are some practical tips to help property owners mitigate unnecessary vacancies.

Screen Residents Thoroughly

Some landlords may make the mistake of not properly screening residents for various reasons. This can result in allowing unstable, late-paying, or destructive residents to rent one of your properties. For this reason, effective screening for world-class residents should be a top priority for reducing rental vacancy rates.

When you thoroughly screen residents, you can start to see patterns in how and where people rent. For instance, well-employed, high-income residents in Milwaukee sound like the big fish, but they have a greater propensity to migrate to better places. On the other hand, residents with lower income or unreliable employment can frequently move because of unemployment or financial difficulties. 

Good property management involves asking your residents questions to know more about their employment status, rental history, reason for moving, and how long they intend to stay. With their answers, you will have a better understanding of the potential resident they might turn out to be and their rental needs.

After an interview with a prospective resident, you can ask for references from former landlords, run credit reports, and do background checks. Additionally, debts, criminal records, past evictions, and late payment history should be looked into as well.

This process shouldn’t be seen as a way to discriminate against people for past mistakes or current circumstances, it is to safeguard your property from rental issues that could occur due to these situations. Some records should not completely write a resident off. By talking with them in person, you can determine if they are trustworthy and stable. Even with debts, criminal records, or past eviction history, you can still find some world-class residents as long as they keep up with their word. 

Provide a Long-term Lease

Engaging in a long-term lease means you are ready to lease your Milwaukee property for two years or more instead of the average 12 months. These long-term leases can help you reduce your vacancy rate.

Long-term leasing may present some risks, such as keeping a resident you aren’t happy with for a long time or the inability to raise the rent till the end of the lease term.

You can handle the risk of having to deal with a resident you’re not happy with by being thorough with the screening process (as mentioned before). Utilize credit and background check services for residents to ensure you are covering all your bases. 

It is also beneficial to contact prospective residents’ references, former landlords, and employers to know how reliable and secure they are as residents.

If you intend to increase rent at some point, it is best to include a clause in the lease stating a percentage increase in the rent after a year (or stated timeframe). It all depends on your choice timeline. Make certain that your resident knows the clause before they sign and move in.

Maintain the Property Regularly

Maintaining your property’s condition is key to resident satisfaction and retention. Conduct regular property inspections to identify and address maintenance issues promptly. A well-maintained property not only attracts potential residents but also encourages existing ones to renew their leases, reducing the risk of prolonged vacancies. 

Leaving all normal upkeep to the residents may turn them off and make them relocate to a better-maintained or newer property in Milwaukee.

When something goes wrong in the property, repairs should be made as soon as possible. This shows residents that you care about them. Here at Performance Asset Management, we offer same-day and emergency services for almost all maintenance issues. This way we can ensure our residents are receiving the best care possible when they need it the most. 

Furthermore, safety is a top concern for residents when choosing a rental property. Invest in security measures such as surveillance cameras, secure access points, and well-lit common areas. Implementing safety measures not only attracts residents but also fosters a sense of security. 

Develop a Good Relationship With Your Residents

Good communication is key in property management. And developing those relationships further can greatly benefit your property business overall. Open and effective communication with your residents builds trust and strengthens the landlord-resident relationship. Talk to your residents often to know how they feel about the property and how you can serve them better.

Being friendly with your resident and understanding them is a very practical way to keep them longer. Try to understand your residents and know the best ways to make them feel at home.

The majority of residents have left a property because the manager or landlord is unresponsive to their requirements and complaints. Be responsive to inquiries and maintenance requests, and provide clear channels of communication. Promptly address any concerns raised by your residents to ensure they feel valued and heard. Satisfied residents are more likely to stay longer, reducing vacancy rates and turnover costs.

Set the Right Price

Unreasonable or overly expensive prices may keep your property vacant for a very long time. Before setting your rental price, it is necessary to analyze other rental properties in your area to determine a fair price.

Do your due diligence to find out what rents look like around you or use the services of a real estate expert.

After seeing the price of local rentals, you can set a reasonable price that will both be competitive and help you maximize your return on investment. Setting the price will largely depend on the location of the property and its quality.

Use Adequate Marketing & Advertising

In today’s digital age, the majority of prospective residents begin their property search online. To increase visibility and attract a wider audience, optimize your property’s online presence. 

When doing this, imagine yourself as the resident you want to reach. What websites would you visit? Do you use newer or older sites when looking for apartments? These questions and more will help you find out where to place your ads.

Utilize high-quality photos, compelling property descriptions, and accurate details on popular listing platforms. Consider leveraging social media and digital advertising to reach potential residents where they spend most of their time.

The rental business also runs in a cycle, which necessitates marketing your property in Milwaukee when people are looking. For instance, it is easier to get your hands on long-term residents in spring and summer than it is in fall or winter.

So, try to make your property available for rent when there is a greater likelihood to have the most residents.

Reward Your Most Promising Residents

Homeowners dream about very cooperative and loyal residents. To keep such residents, you can offer them incentives during lease renewals. It can be a cable or Netflix subscription, a new device, a household appliance, or a discount on next month’s rent.

Residents will be grateful that they are rewarded by a landlord who cares about them.

Rewards not only lubricate the landlord-resident relationship but they motivate residents to stay longer. After it all, the vacancy rate drops, and your pocket gets bigger during lease renewals.

This can also be a great way to find new residents. Offer existing residents incentives or discounts for referring new, qualified residents. Since your current residents are already familiar with the property and its amenities, their recommendations can be a valuable source of reliable and long-term renters.

Let Performance Asset Management Help Reduce Vacancy Rates

The tips in this article, if well applied, will lower your property vacancy rate and get more of that cool cash rolling in. However, hiring a property management company in Milwaukee allows you to do all of these tips in just one act.

Performance Asset Management is a top-rated property management company in Southeastern Wisconsin. We practice a vacancy-eliminating property management approach and maintain properties to our residents’ and owners’ liking.

Contact us to discuss how we can help you reduce your vacancy rates today.

In Milwaukee, we collaborate closely with knowledgeable vendors and contractors to provide the best service possible. Through our long-term relationships, we are able to pass on maintenance costs less than the going market rate.

Same-day service for all maintenance issues includes (but is not limited to): 

• HVAC issues 
• Heating problems 
• Electrical issues 
• Plumbing 
• Disposal issues 

Better service translates into better performance, thus it’s crucial to us to honor our emergency and 24/7 repair requests. Just contact us via the resident portal, call us, or email us separately to inquire about any maintenance issues. Learn about how we keep our properties safe and healthy to live in at all times!

A skilled property manager can handle the day-to-day operations, maintenance, and resident management, allowing you to focus on growing your business. However, finding the right property manager is crucial for the success of your real estate ventures. In this blog, we will discuss the key qualities you should look for when selecting a property manager.

7 Qualities of a Good Property Manager

Experienced & Licensed

When evaluating property managers, consider their experience in the industry. Look for professionals with a proven track record in managing similar properties. A property manager with extensive expertise understands the complexities of property management, local regulations, and market trends. Their expertise will help you navigate any challenges that may arise and ensure your properties are well-maintained and profitable.

If a property manager is relatively inexperienced or new to the industry, ask them for references. Within those references, look for evidence of their service quality and response times. This would also be a great time to ensure property managers have the correct licensing and credentials, especially for the services you seek. Many states have their own requirements for broker’s licenses, so it is best to do your own research. 

For example, if you are looking for property management services for commercial rental properties, don’t hire a company that specializes in only residential properties. The training and services may vary significantly. 

Strong Communication Skills

Effective communication is essential in the property management business. Look for a property manager who has excellent communication skills, both written and verbal. They should be responsive and communicate with residents, contractors effectively, and you as the real estate agent. 

A property manager who can handle resident inquiries, provide regular updates, and address concerns promptly will enhance resident satisfaction and minimize potential issues. Many property management companies have been working on being more accessible to residents, which includes same-day contact/service. 

This same-day service communication can make one property management company stand out from the rest. Imagine having to wait for more than a day or two to have your property plumbing issues resolved or broken HVAC during a hot summer day. This is a great service feature that not every property manager offers, which is something to consider when you imagine the type of communication you want with your resident’s property management. 

Good Online Reputation  

A good online reputation holds more significance than you may realize when looking for the right property management company. It establishes credibility and trust, reassuring potential clients that the company is reliable and capable of effectively managing properties. 

Positive reviews and testimonials contribute to a favorable view of the company, making it more appealing to property owners and residents alike. As a real estate agent, your choice of a property management partner reflects on your own brand image, and working with a company with a strong online reputation enhances your credibility. 

Furthermore, a good online reputation helps attract and retain property owners and high-quality residents, while reducing the risk of disputes and issues. Satisfied clients are likely to spread positive word-of-mouth (which could lead to more good online reviews), benefiting the company and creating more business opportunities for both the property management company and the real estate agent.

Tech-Savvy 

Having a tech-savvy property manager can bring numerous benefits to the management and operations of a property. In today’s digital age, technological advancements have revolutionized the way properties are managed, making it crucial for property managers to stay up-to-date with the latest tools and platforms. 

A tech-savvy property manager can efficiently utilize property management software, online platforms, and communication tools to streamline operations, automate tasks, and enhance efficiency. They can leverage technology to effectively market vacancies, conduct virtual tours, and handle resident inquiries promptly. 

Additionally, a tech-savvy property manager can utilize data analytics and reporting tools to gain valuable insights into property performance, occupancy rates, and rental trends, enabling them to make informed decisions and optimize revenue. 

Attention to Detail & Organizational Skills

Managing properties requires strong organizational skills and attention to detail. A property manager must be attentive in handling administrative tasks, such as collecting rent, documenting leases, and maintaining financial records. They should also have systems in place to track maintenance requests, conduct regular inspections, and ensure timely repairs and upkeep. 

A detail-oriented property manager will help protect your investment and ensure the smooth operation of your properties. During interviews, ask prospective managers how they stay organized on the busiest of days. You can learn a lot about how they handle conflicting duties at once from their response.

Knowledge of Local Laws and Regulations

Each region has its own set of laws and regulations regarding rental properties. A reliable property manager should have a thorough understanding of these local laws, including resident rights, lease agreements, eviction processes, and fair housing practices. 

Their knowledge and compliance with these regulations will protect you from legal pitfalls and potential liabilities. The last thing you want to do is hire a manager who gets your property in more legal trouble than actual investment returns. This will end up costing you twice as much as just handling your property yourself. 

Take the time to thoroughly test their knowledge of these laws and look for any background information that may indicate this manager has had legal issues before. You won’t regret putting in the time and effort to find a quality property manager. 

Transparent & Reliable Financial Management

One of the primary responsibilities of a property manager is handling financial matters related to your properties. Look for a property manager who can provide transparent financial reports, including rent collection, expenses, and any repairs or maintenance costs. They should have a system in place for timely rent disbursement and be able to provide accurate accounting records. 

Sloppy accounting and reporting practices are more common than you would think. Whether the management company fails to collect arrears and recoverable expenses, doesn’t budget, or is slow with invoices, these are all indicators that these managers aren’t looking at the money side of the business in a timely fashion. A property manager with sound financial management skills will ensure the profitability of your real estate investments.

First Step: Portal for Communication

The first thing a resident will need to do is learn how to log into our portal Propertyware. Almost 90% of all our communications with our current residents are through this portal. When we execute a lease on your behalf, you can find it in this portal. When a resident pays rent, it will be logged in this portal. Anything that needs official documentation or communication, can almost always be done through this portal. 

Instructions are sent to all our new residents or owners on how to log in, but basically, when you are redirected to the PAM Propertyware login, you will be prompted to either “login” or “sign up”. Since this is your first time logging in, you should select the “sign up” button. After that, the resident (or owner) will be asked to fill in the necessary information. This information will then be sent to PAM and we will activate your account and send you your login information. After receiving your login information from PAM, make sure to get familiar with the features that are on the portal. 

If you have any questions or concerns, this portal will be where those items can be addressed. 

Second Step: Property Meld

Property Meld is the platform we use to provide the best service possible! This platform helps us provide 24/7 maintenance and emergency services. We mainly use this platform for our residents to have direct contact with repair contractors to schedule repairs within 24 hours. There are also some other communication services provided here, but it will be crucial to set up your Propertyware and property meld accounts. 

To set up your property meld, go to the PAM site and find the drop-down selection “submit maintenance request”. From there you will be asked to log in to your account, and if this is the first time you are using this platform, you will have to click “Request an invite”. After that, you will be asked to fill in some information to link your account and then property meld will let PAM know to send you an invitation for an account. 

After you have your account set up, take some time to look through what is on the property meld platform and how to go through a maintenance request. We suggest that you set up your accounts right away before any maintenance is needed so that you are familiar with the software. 

Third Step: Fewer Headaches & More Consistent Income

Whether you are a resident or investor, our PAM fam team is dedicated to your satisfaction. When you work with a property management team like PAM, you’ll experience fewer headaches dealing with the property process. Whether that be our fast and reliable communication services or our ability to place and hold residents in your rental property, we’ll take care of the major things so you don’t have to worry. 

As an investor, you’ll see more consistent income when you work with a property manager. Property managers should be passionate about their work and driven to provide you with results. They should communicate with residents often, help address and resolve any issues, and provide them with the right tools to be great residents. This is how we’ll be able to ensure steady residents, thorough interview processes, and reliable income for our investors. 

Why Hire a Property Manager?

Hiring a property manager or management company provides several benefits to investors or residents. Some of the top reasons include: 

• Reducing vacancies and turnover rates
• Handling maintenance and repairs (so investors don’t have to) 
• Screening applicants
• Providing legal expertise and handling disputes 

Here at PAM, we offer these benefits with a competitive reputation compared to other property management companies. How are we different? We offer: 

• Comprehensive resident placement 
• Proactive and positive management strategies 
• Guaranteed Same-day service and communication 
• Total transparency and sensibility 
• And the PAM promise! 

The Pam promise is a value we believe is extremely important when it comes to property management. Being in the property management industry requires us to be knowledgeable about a lot of things. But, with that being said, our working knowledge sometimes leads to mistakes happening. We embrace the reality that things don’t always go well and take it as an opportunity to redirect and learn. When we are honest about our mistakes, we try to show that we aren’t here to trick or mislead our clients and/or residents. 

Interested in what PAM can do for your rental property and residents? Contact us today! 

A lease renewal is when your current tenant decides to live in your property for another lease term. This can be another month, to another 6 months, or an extension of another 12-month lease, depending on your leasing structure. Obtaining lease renewals is beneficial to both you and your tenant.

Lease renewals can be tricky, though. So, we created a guide for property owners for when they want to pursue a lease renewal and how to execute the new agreement.

What does it mean to renew a lease?

A lease renewal means that your tenants enjoy living in your property and renting from you, so much so, they want to continue. It also means you don’t have to look for a new tenant to fill your vacant property which can keep your property income consistent. 

If the current lease automatically terminates after the term, you’ll have to write a new lease with a new period. If the lease automatically renews, then nothing more must be done. So, once the current lease ends, your tenant has leased the property for yet another term, usually a year.

While this is great news for most property owners (especially if the tenant is reliable), there are some disadvantages of lease renewals:

Limit on rent increases  

When a tenant decides to renew their lease, this limits how much you can increase rent, if at all.

Many landlords will increase their rent price by a small percentage when trying to find a new tenant to keep up with the market. However, when renewing a lease with a current tenant, they will most likely expect you to keep the price. 

Keeping rent the same for a returning tenant is a respectable thing to do as a property owner. Sometimes you can work out a $25 to $50 per month increase in the lease renewal agreement. But you should keep in mind that although you can’t raise the price of rent, you are guaranteed the same property income with a signed lease renewal. 

No time for renovations 

If you were hoping to do some renovations to your property to bring it more up-to-date, you wouldn’t be able to do so if your tenant decides to renew the lease.

While this isn’t a huge issue, it can be an inconvenience if the property owner has already started preparing for renovations to be made. If these are important renovations that need to be made for the quality of the property, then speak with your tenant about a schedule that may work to get these things done. Otherwise, renovations will just have to wait until the tenant moves out. 

Could get stuck with a problematic tenant

There are great tenants, and there are some terrible ones, but there are also problematic tenants. Just because you had a good tenant during the first lease term doesn’t always mean it will be that way with subsequent leases, as they could still pose a problem at any point during the lease term.

Accepting a lease renewal could have you stuck with one of these problematic tenants. However, as the owner of the property, you can always deny the renewal of a lease to your current tenant if you feel it’s necessary. To learn more about the types of notices required when ending a lease, look up your state laws.

Steps to renewing a lease

There is a certain process that property managers must follow when they attempt to renew a lease with their tenants. By following these steps, you’ll have a smooth and likely problem-free lease renewal for your rental property.

Step 1: Approach your tenant

The first step to starting a lease renewal is to approach your tenant about renewing it. According to Wisconsin law, landlords must go to their tenants 15 to 30 days before the end of the lease to ask if they plan to renew it.

However, we recommend that you ask them sooner, at least 60 days before the end of the current lease. This gives them time to think about their decision and gives you time to start planning on finding a new tenant if necessary. You could also ask for recommendations or referrals for new tenants from your current tenants (if they are reliable). 

This can also be a time to talk about things that are going well or not-so-well at your property. Even if you have an open line of communication as a property manager, your tenants might not bring up actual problems until you approach them. If your tenant has any questions or concerns, this would be a great time to go over them. 

Step 2: Prepare the new lease

A new lease should be written if there are new agreements compared to the old lease. If the old lease automatically terminates at the end of the term, and there are no additions then just update the leasing dates and utilize the original document. 

If there are new items to be mentioned in the lease, you’ll have to prepare a new document. The updated information will need to be accurately displayed, especially if the rental price changes or there are additional clauses. Always make sure to proofread before finalizing. 

Step 3: Send and sign

Once you’ve finished writing the lease, it’s time to send it to your tenant to review and sign. This should be a fairly quick step, especially if the lease is pretty much identical to the old one.

Simply have your tenant sign the agreement, sign it yourself, and make a copy for your tenant to keep. Once that’s finished, you have successfully renewed a lease for your rental property.

Tips to encourage lease renewal

Since a steady tenant means consistent income, it should be a top goal for your rental property. Many property managers make the mistake of focusing on acquiring new tenants when retaining current ones is actually more cost-effective.

To encourage your current tenants to renew their lease, there are a couple of things you can do:

Offer an incentive

Make it appealing to your tenant to renew their lease with you. Offer them an incentive such as a discount on the rent or replacing an old appliance in the kitchen. 

While it may set you back a few dollars, it will actually help you make a profit in the long run.

Increase amenities 

Upgrading your property with amenities that tenants are looking for will make your property more attractive and could significantly reduce rental turnovers. 

Of course, not every property or property owner has the capacity (whether that be space, time, or money) to add new amenities to their property, but it may be worth the hassle to figure out how to upgrade old amenities with newer features. For example, upgrading the laundry area with new washers and dryers or replacing old gym equipment with popular machines could make a difference in the appeal of your rental property. 

Act professionally and friendly 

Another way to encourage a lease renewal is to be an upstanding property manager to your tenants. This means acting friendly, attending to repairs and maintenance requests, and always giving notice before entering the property.

When tenants enjoy renting from you and respect the services and care you provide them, they will be more likely to renew their lease for another year with you. Otherwise, they may be more motivated to give you recommendations or referrals to other friends and family members too! 

Get more lease renewals with Performance Asset Management

You can increase lease renewals for your rental properties in Milwaukee with a professional property management company.

Performance Asset Management is Milwaukee’s leading property management company. With an experienced and professional team, we make it easy for property owners to earn passive income from their real estate investments.

Thanks to modern technologies such as online owner and tenant portals, innovative marketing tactics, and experienced property managers, we will help you retain tenants year after year.

Contact us today and see how we can help you increase your rental income and get more lease renewals.

As we look ahead to 2023, there are several trends and predictions for the real estate market in Wisconsin that are worth considering. 

Migration to Midwest

As affordability has been the main factor when it comes to buying homes in this economy, places that feature reasonably priced housing options are already seeing a shift their way. This is why the Midwest has remained a top-list contender. 

Unlike every other region in the US, the Midwest hasn’t seen extreme housing prices like other areas. Lower rent and home prices will make it easier for residents and first-time buyers. Another factor for which the Midwest stands out is that most areas still have a relatively healthy market, as the declines in new listings are relatively smaller than the national average. This means that with the shift in relocating, there is more consistent demand from buyers, which has continued to aid the housing market so far. 

Rent growth has outpaced salary growth, making it more difficult to cover or upgrade their rental choices. Over the previous five years, the average hourly pay has increased by 23%, but following a pandemic-era rise, rents have increased by 37% over the same period. In Milwaukee, though, rents fell by 0.8% over the course of November 2022, according to rental listing service Apartment List. This is a good trend for residents in 2023 that we could see continuing in Wisconsin.

Housing Investments May See Return Long-Term

According to Walletinvestor’s Milwaukee real estate market research, home values will fluctuate. The trend shows values generally decreasing before increasing within the next few years. 

Milwaukee’s real estate prices and its market environment have been in a slow growth period. It is predicted that there will be a general negative trend in the near (or short-term) future. This means that buying a house in Milwaukee for a short-term investment is not good for making a profit. But the investment return for Milwaukee homes is expected to be a great 5-year plus investment with an estimated 6.92% increase. 

To put that into perspective, with this projected market increase for long-term investments, putting 100,000 USD in a Milwaukee property today could yield a growth up to 106,920 USD by 2028 (see graph above). Always read up on optimal real estate investment strategies if you are new to investing.

Multi-Generational/Multi-Family Homes On Rise

Another trend that is expected to continue is the rise in demand for multi-generational/family homes. With more adults living with their parents and grandparents, many families are looking for homes that can accommodate multiple generations. Furthermore, buying homes with friends or non-relatives has increased within this topic as well. This trend is expected to drive demand for homes with separate living spaces, such as in-law suites or basement apartments, as well as homes with multiple bedrooms and bathrooms.

A Zillow survey from spring 2022 found that “among successful recent homebuyers, 18% had purchased along with a friend or relative who wasn’t their spouse or partner, and 19% of prospective homebuyers intended to buy with a friend or relative in the next 12 months. For both groups, affordability and qualifying for a mortgage were cited as the top reasons for buying together.”

Renovations/Rental Properties May Increase 

A trend that is expected to continue is the growth of the home renovation market. Although flipping houses in a generally bearish market is not recommended (especially for first-timers), it has become an increasing consideration to many homeowners who simply cannot afford to relocate or buy a new home. 

As interest rates remain low, many homeowners are choosing to renovate their existing homes rather than buy new ones. This trend is expected to drive demand for home remodelers and contractors, as well as for materials and supplies used in home renovations.

Additionally, rental property construction will continue to see an increase. Price reductions are being driven by the temporary oversupply of new homes that are anticipated. These price reductions may also affect the existing home market, which would otherwise continue to experience low inventory levels as current homeowners hold onto their properties and their historically low mortgage rates.

Market Will Stabilize or Get Better

The housing market will still be driven by affordability in 2023, but there is a good probability that it will get better. The market may at least stabilize, enabling households to save money and make plans for future home purchases.

In the most hard-to-afford markets, Zillow predicts that national home values will actually decline next year. For the first time in two years, rents actually decreased in October 2022, indicating a return to normal seasonal trends. Because of constant demand, we have seen a shift to rental properties instead of single-home construction. Builders are constructing new homes at a record-breaking rate to enhance the availability of rental housing.

Takeaways

In conclusion, the real estate market in Wisconsin in 2023 is expected to be driven by a number of trends and predictions. It should be noted that many of these predictions and trends are compared using historical data from previous years when the economy and housing market reflected the same patterns. 

These trends should not be taken as absolutes but as cautionary topics. For more information or questions regarding property management and investing in Milwaukee, contact Performance Asset Management today. 

Pros of Month-To-Month Rental Leases:

Flexibility 

Month-to-month rent leases offer great flexibility to both property managers and residents. Residents can leave at any time without being locked into a long-term commitment, while property managers can adjust the rent or terminate the lease if they need to. 

Most of the time there is a 60-90 day notice needed from the resident when they plan on moving out but this still offers more flexibility compared to 6 month or year-long lease. 

This type of lease is perfect for people who are unsure of how long they will need to rent a property. It gives them the option to leave shortly after moving in if their circumstances change or if their career has them traveling more frequently. Although this can be beneficial to property managers, it can also be a disadvantage when it comes to resident lease renewal and vacancy as you frequently turn over to new residents. 

Easier to Terminate

These agreements are easier to terminate, which means each party can end the lease agreement quickly if they need to with minimal or no penalties attached. This can be in the best interest of the investor because if a resident doesn’t pay rent or violates the terms of the lease, property managers can give a 30-day notice to vacate, which is much shorter than the notice period for a long-term lease. 

Variable Rent Increases

With a month-to-month lease, the investor may be able to collect a higher rent than what is allowable under a long-term lease since the resident is not locked into a long-term commitment. This can be beneficial to constantly review and adjust rents to ensure they remain competitive in the market. 

This can come at a cost though if you start to raise rent costs too often. You’ll start to lose out on quality residents and likely be given not-so-great reviews which can impact how potential residents view your property before even personally interacting with you. 

Cons of Month-To-Month Rental Leases:

Lower Resident Security

On the other hand, month-to-month leases can also create more work for the property manager. Without the security of a long-term lease, property managers must continually monitor the resident and be prepared to find a new resident if the current one decides to leave. Residents may have to move frequently, and property managers may have to find new residents regularly.

A way to help this issue may be to increase advertising or ask for referrals/recommendations from current residents – including the ones that are deciding to move. Other than that, it is beneficial to put effort into maintaining good relationships with your residents and increasing efforts to find world-class residents.

Less Stable Rent Income

While having good residents is usually a plus, maintaining them on a short-term basis is not as beneficial as a long-term lease renewal. Rent revenue is less reliable when renting from month to month because of this unpredictability. In order to prepare for this inevitable issue, investors should make sure they have a financial backup plan to compensate for lost income.  

Short Notice to Find New Residents

It can be difficult to find new residents with only 30 days’ notice. You are under additional pressure to find residents when you are pressed for time, especially as the date of a vacancy approaches. Due to time constraints, it may be difficult to thoroughly and quickly get through the screening process. It is critical to maintain your standards in order to find quality residents rather than just rent to fill vacancies.

There are different seasons that may reap more vacancies than others (i.e. more people tend to move in the summer months), but if you start to notice an unusual amount of vacancies, you or the property may be the problem. It might be a good idea for the property manager to send out surveys for people moving in or out to ask for their reasoning for moving (mainly to see if it is related to the property/property owner or not). Additionally, you can offer promotional offers for different seasons. 

Keeping Residents

Keeping residents in a month-to-month rental agreement may be beneficial to you and your property, depending on how well you can handle resident turnaround times, unexpected move-outs, and potentially rotating vacancies. 

Offering month-to-month leases to good residents who aren’t ready to sign or renew a fixed-term lease is a great way to keep them in the property until they either sign another fixed-term lease or leave. In fact, 60 to 70% of your current residents are more likely to renew their lease if asked. 

Performance Asset Management is Milwaukee’s leading property management company and can help tackle the various demands that come with running top-quality properties. As experienced investors, we know the ins and outs of the industry. Contact us today to see how we can help.

Every resident has the right to enjoy their privacy and refuse entry at certain times, and property managers should never violate that. On the other hand, property owners have the right to enter when following the proper procedures, and residents should equally cooperate under the law. 

Resident’s Privacy is Protected 

A resident’s right to privacy is legally protected by the “covenant of quiet enjoyment.” The covenant of quiet enjoyment is, according to Cornell Law School, “an implied term in every lease that the resident shall have quiet and peaceful possession of the leased premises against the lessor.” Basically, this ensures that the property manager will not violate this privacy and gives the resident permission to possess everything listed as theirs under the rental agreement. 

This right covers all of the rental premises that the resident has personal possession of, including balconies, yards, garages, etc. All terms and conditions pertaining to this right can be found in the specific clauses of the leasing agreements. Many states have laws governing when and how landlords can legally enter rental properties. This is where the conditions for the right of entry comes in. 

The Conditions for Right to Entry 

Although the covenant explicitly states the privacy rights of residents, it comes with exceptions. Both the Wisconsin Statutes (sec. 704.05(2)) and the Wisconsin Administrative Code (ATCP 134.09(2)) carve out the exceptions to the covenant that allows the property owner limited rights to enter the rental unit. 

According to these laws, a property manager may enter with proper advance notice at reasonable times for three reasons: 

1. Maintenance-related issues
2. Showing the rental to prospective residents or investors 
3. In cases of emergency to inspect the property

Property Manager’s Entry & Right of Access 

In Wisconsin, property managers cannot enter a rental unit unless they give the resident at least 12 hours notice. This notice may be verbal, but we highly encourage property managers to give this notice in writing, whether that be via text, email, or letter. This notice should include the date and time of the entry. 

This is beneficial because now there is documentation to support either party, and it doesn’t become the resident’s “word” vs. the property manager’s “word.” This date and time should be within reasonable hours, which isn’t explicitly defined. Usually these times are during ordinary business hours from 8 a.m. to 5 p.m. (or whatever is stated in the rental agreement).

Before entering the unit, the property manager is required by law to announce their presence and identify themselves upon request (ATCP 134.09(2)(d)). Contrary to popular belief, residents don’t need to be present during the entry, as long as all the prerequisites have been met. In cases of emergency, a property manager may enter without prior notice. However, if a resident objects to the entry, the landlord must delay the entry until they can get a court order that allows it. 

Some exceptions to advance notice include: 

1. If the resident states they can enter at an earlier time than proposed
2. If there is a “health or safety emergency” (which is undefined) that needs to be addressed 
3. To protect the premises from damage when the resident is absent 

Resident’s Right to Entry & Denying Access

In order to protect their privacy and ensure that their rights are respected, it is important for residents to understand their right to entry and take action if they feel this right has been violated. Knowing this right can help protect residents from potential harm or property damage.

It may be worthwhile to explain this in person or in a personal message rather than just letting the resident glance over lease agreements, just so you are on the same page. Also, this would be a good time to point out additional conditions that are stated in the lease that pertain to entry rights and violations.

Once a resident understands all of the rights and the covenant of quiet enjoyment, it is up to each party to respect the law. However, bad property managers can sometimes cause problems by violating privacy laws because they believe that because they legally own the property, they should be able to enter whenever they want. A property manager should NEVER violate entry rights unless it is for one of the stated emergency reasons. 

If a resident feels that their right of entry has been violated, they have a few options:

1. Write the property manager a letter that states the dates of illegal entry and applicable laws prohibiting it. Explain next steps you may take if it is not addressed or happens again.
2. File a complaint with their local housing agency. The agency will investigate the property manager’s action and take appropriate action if necessary.
3. Call the police. The police may say that it is a civil matter for the courts to handle, but the police can at least report an illegal entry occurred for documentation purposes. If the resident is home when the property manager tries to illegally enter, the police may show up and fine the property manager (depending on state laws).
4. Depending on the severity of the situation, residents may be able to sue for invasion of privacy, trespassing, or distress.

When a Resident Won’t Grant Access 

In some cases, the resident may be the one violating right to entry laws. If a resident refuses to allow the property manager to enter the rental unit, it is an advisable first step to try to settle the issue through communication. This may be a good time to remind them of their obligations under the lease or law that grant property management rights to enter. 

If the resident continues to deny entry after proper communication, then they are in breach of their rental agreement and state law. This now gives the opportunity to potentially initiate eviction proceedings. After that, it is a matter of cooperation between the resident and property management that will either result in a successful entry or preparing for court/eviction proceedings. 

How We Can Help

Owning a rental property is a very serious and demanding job. It comes with many positive benefits but can also lead to negative interactions as well. To help alleviate some stress and gain further knowledge of the housing market, it may be in your best interest to hire a property manager. 

Here at Performance Asset Management, we guarantee world-class customer service for residents, which includes abiding by the laws and regulations. Additionally, we have been rated one of Milwaukee’s best property management companies, especially when it comes to interacting with and finding world-class residents. We treat your property as our own. We understand property management isn’t perfect, but we strive to do better each day. Contact us today to learn more about how we help investors with their rental properties. 

8 Tips To Starting Your Rental Property 

Define Your Goals:

Before you start searching for a rental property, it’s essential to define your goals. Ask yourself what you hope to achieve with your investment property. Do you want to generate passive income, build long-term wealth, or both? Are you looking for a single or multifamily property? You should have your goals defined in writing or somewhere you can actually plan out how to achieve them. 

As rewarding as a rental property can be, they can end up being bad investments if you don’t plan properly. Once you’ve defined your goals, you can determine your investment strategy and make informed decisions about the property you want to buy.

Determine Your Budget:

Determine your budget before you start looking for a rental property. Be realistic about the costs associated with buying and managing a rental property, including property taxes, insurance, maintenance, and repairs. Make sure that your budget is sufficient to cover these costs, as well as any unexpected expenses that may arise. 

It may also be a good idea to pay off personal debts before trying to invest in a property. Of course, there is no reason an investor can’t have debt when buying a property, it will just be easier to save money when most to all of your larger debts are paid off. In fact, most people will experience debt when buying their first rental property. 

Get Pre-Approved for Financing:

Getting pre-approved for financing will give you a better idea of what you can afford and help you avoid wasting time on properties that are outside your budget. Shop around for the best mortgage rates and terms, and choose a lender that offers the most favorable terms for your investment strategy.

Keep in mind that the higher your monthly payment is, the less cash flow will be available. With homeowner’s insurance, you may have even less. A lot of people don’t realize the actual amount of money they will end up going into your property, so it is important to have a solid idea of your financing, and what you are going to do when things may not go as you anticipated. 

Research Property Locations:

Location, location, location! The location of your rental property is crucial to its success. Research the local rental market to determine the demand for rental properties, the average rental rates, and the vacancy rates. This information will help you determine the potential profitability of your investment property.

There are other factors that make a location, a “good” location. Things you should consider include proximity to the community, size, the neighborhood niche, any added developments in the area, proximity to amenities (parks, trails, sports, etc.), and the overall appearance of the property. Depending on what you classified in your goals should also help determine the location as well. 

Find the Right Property:

Once you’ve determined your budget, researched the market, and obtained financing, it’s time to start looking for a rental property. Look for properties that meet your investment criteria, such as location, size, and condition. Consider working with a real estate agent who specializes in investment properties, as they can help you find properties that meet your needs and negotiate a favorable price.

The most important part of this process is to remain patient. It may take a few weeks or even a few months to find a property that fits your needs. 

Know Legal Obligations:

Depending on certain requirements state-to-state, property owners are accountable for five main areas under landlord-resident law. Landlords must first control how the security deposit is handled. Although state regulations set limits on how much can be charged as a security deposit, landlords are always free to do so. Also, the owner of the property must be disclosed by the investor. This disclosure basically entails letting the residents know (typically in writing) who owns the building and how to get in touch with them for things like rent payments, maintenance issues, and more.

Providing residents with keys or giving them possession of the unit is the responsibility of the property owner. Normally, this is carried out at a predetermined time or after the lease has been signed. Property owners must maintain the space in accordance with the terms of the lease and any state legislation once residents have moved in. And last, according to the laws of that state, investors are subject to a certain level of fault. To make sure you adhere to the necessary legal requirements as a property owner, always check with state and local legislation.

Prepare to be a Property Owner:

Being the main investor on a property means that you have to tend to all your resident’s needs or you have to hire a third-party property management company to do that for you. Preparing to become a property manager yourself is essential for resident satisfaction. You will need to be available to your residents for their rental questions, maintenance requests, and other emergencies that may occur. You’ll need to have general knowledge of these things or be able to outsource help for certain issues. Otherwise, hiring a property management company may be in your best interest (read below for more information). 

Once you’ve purchased your rental property, it’s essential to screen your residents carefully. Conduct thorough background and credit checks to ensure that your residents are reliable and responsible. This will help you avoid potential problems down the line and protect your investment. Consider getting Landlord Insurance and double-check all expenses before finally taking the leap to start your rental property. 

Be Prepared for Emergencies:

You’ll need to be prepared for emergencies, such as maintenance issues, repairs, and resident disputes. Create an emergency plan and budget to address these issues as they arise. That financing section we mentioned earlier should help prepare you in advance for saving money for these sorts of emergencies. 

Owning a rental property can be a rewarding investment, but it’s essential to approach it with the right mindset and strategy. By following these tips, you can get started with your rental property and build a successful investment portfolio.

Consider Hiring Third-Party Property Management

The workload of an investor will be greatly reduced with the assistance of a property management company. Those that engage property managers will really discover that their time is better spent on more worthwhile activities than managing each property. Those who engage property managers in particular can increase their rental property portfolios’ assets without having to take on more work each day.

Here at Performance Asset Management, we do just that for you! PAM is the highest-rated South Eastern Wisconsin Property Management Company, specializing in leasing, management, maintenance, and renovations. If hiring a property manager is in your future, let us help you. Contact us today! 

If you’ve never worked with a property manager before, you may be unsure about what you should be looking for. Here are some key things to consider when choosing a property management company.

Qualifications

Before anything else, you want to confirm that the people managing your properties are licensed and certified. If you’re unsure, go ahead and ask to see any necessary credentials. Also, check to see if they are members of any certified trade organizations. These organizations typically need proof that they are licensed and certified before joining.

Look for a property management company with a proven track record and extensive experience in managing properties like yours. How long have they been in business? Are they a new start-up with no clients? Have they done any real estate work before? The company should be familiar with the local real estate market and have a deep understanding of property management laws and regulations.

Reputation

Look for a property management company that has a strong reputation in the community. Ask around to see what other people have to say about the company, and make sure to check online reviews as well.

Research the company’s reputation by reading online reviews, talking to past and current clients, and checking their Better Business Bureau (BBB) rating. You can also ask for references and follow up with them to get a better idea of the company’s level of service and professionalism.

It may also be beneficial to check to see what their online presence is like. Are they active on social media? Is their website clean, professional, and updated? Have they been recognized for any awards? This may be one of the easier ways to see which property management company is right for you. If you are looking for modern service, their website should reflect modern technology, apps, and resources. Additionally, being able to tell if their website is legitimate or fake can save you from scams. 

We don’t mean to brag, but here at Performance Asset Management, we can prove our reputation with great reviews and awards. We have been named the “Best Property Management Company in Milwaukee” by Propertymanagement.com and Expertise.com (as shown in the images above). 

Services

You should make sure that the property management company you choose offers the services that you need. Some focus on managing residential properties, while others specialize in commercial properties. Some companies may offer additional services such as resident screening, resident placement, and maintenance services. 

For the best experience, you need to understand what it is that you want from your property manager and then see how each company compares.

Here are some of the essentials:

• Effective process for settling and collecting rent. This process should make things easy for both you and the residents.
• Vacancies should be eliminated quickly and without fees.
• A simple termination agreement. They shouldn’t make discontinuing service with them extremely difficult or full of penalties.
• A streamlined system for handling maintenance repairs as quickly and efficiently as possible.
• Tough screening process that’ll guarantee to deliver world-class residents.
• Top of the industry technology. If a company hasn’t managed to start using technology for everyday tasks, like paying rent or accepting applications, then it most likely isn’t keeping up with its competition.

Cost

Many companies will nickel-and-dime you for any small service or charge high prices without the quality service to back it up. It’s ideal to find a company that charges less while also offering the services you are looking for. Ask about everything they charge for. What are their property management fees? Do they charge you vacancy fees? Do they charge minimums? Does their business continue to prosper even when yours doesn’t? You don’t want to work with managers who will charge you a fee every chance they get. You want a company that only gets paid when you do.

At PAM, we live by our slogan, “Great Residents. Great Service. Great Owner Financial Return.” If we can’t pay our fees by eliminating expenses while increasing income, then we don’t deserve your business. We know what fair treatment is when it comes to partnering with investors and managing residents. We won’t charge you excess fees. 

Communication

Good communication is key in property management. Make sure the company you choose is responsive and easy to reach. Your managers will be running your properties and playing a huge role in your overall success. You will need to work closely with the company to make sure you’re both on the same page. 

Contact them and notice how long it takes them to respond. Ask how often you can expect updates and how the company will communicate with you, your residents, and contractors. Do they give you the option to call, text, or email at any time? Do they also have options on their website to make requests and provide you with all the necessary information? They should be authentic and transparent about everything from the beginning. Make sure they know how to answer all your questions in a clear and concise way.

Dedicated to Residential Success

Finally, your property management company should be just as committed to your success as you are. A property management company should serve the residents just as much as they serve you. If you are going to hire them, you want to make sure they are the best possible managers for both you AND your residents. 

Property managers should be passionate about their work and driven to provide you with results. They should communicate with residents often, help address and resolve any issues, and provide them with the right tools to be great residents. For example, PAM has a promise to our residents. We promise that we are going to make mistakes, but we are going to try again until each problem is solved. We will learn from those mistakes to make sure they don’t happen next time. That is why we also offer same-day services for any maintenance issues. 

If your management company can’t keep your residents happy, you’ll find yourself with constant vacancies. The right property managers will work to earn your business every day. Your success should be their success as well. Don’t skip out on doing your research. Learn about your options and what each one can offer you. This is your business, and your success should be just as important to them as it is to you.

At PAM we take pride in being a top-rated property management company in Milwaukee.  We offer full-service property management and premier customer service. How did we become one of the top-rated property management companies in the area? PAM does a few things differently than the rest of the industry that puts us above and beyond our competitors. Your success is also our success, and we want to support you while you achieve your goals. 

How PAM Separates Ourselves From the Industry 

Comprehensive Resident Placement

Our comprehensive resident placement strategy is one of the best in the industry. All that is charged for us to locate our clients top-tier residents and achieve top-market rent rates is your first month’s rent. We do all the tedious work to go above and beyond. Our comprehensive strategy is how we achieve that. 

We advertise client properties to 30+ online resources to cast our net wide at the beginning of our process. We then show the property to pre-qualified prospects. In order to get these pre-qualified prospects, we ensure a tough screening process is used. When it comes to resident screening we verify income, collect pay stubs, check credit, perform background checks, check rental history, confirm employment and analyze job history.

After finalizing screening, we utilize our proven and expert lease agreement to ensure transparency for the resident. We will never approve a resident application that we don’t believe will stay for the full term of the lease agreement. Once a resident moves in, we simply charge 10% of the monthly rent to manage everything associated with the property. We guarantee to find the best residents for you. 

Proactive & Positive Property Management

We approach our management strategy with a positive attitude and proactive leadership to get inspections, pictures/videos, and reports done in a timely. Being proactive means being a step ahead to avoid issues before they happen. We know how to keep things by contract and code. Simply hire us and let us do all the work for you. 

Our clients won’t ever need to be directly involved with residents if they don’t want to. We enforce and collect rent so our clients don’t have to. We handle maintenance requests and general inquiries with a same-day guarantee because it is important to us to have the best quality service for our residents. 

When it comes to inspections, we conduct three interior and exterior inspections a year. We ensure compliance with all association rules and local laws. Additionally, we conduct drone fly-over inspections of the roof, which is accessible on the client portal. 

We also perform income/expense financial reporting that is accessible via the online portal. We conduct monthly reports and yearly reports to gather information about the property and its residents. This research is crucial for us to understand how to improve and stay proactive with our management. We do a lot for both clients and residents because that’s our job. Anything less means you aren’t receiving the best! 

Same-Day Service Guarantee 

We pride ourselves in world-class residence service. To us, this means guaranteeing same-day communication and service for all our residents, regardless of how big or small. We work side by side with skilled contractors and vendors throughout Milwaukee to ensure the best service possible. Through our long-term relationships, we are able to pass on maintenance costs less than the going market rate.

Our management can be reached same-day via email, phone, and text. Better service equals better performance which is why it is important to us to stand by our 24/7 maintenance and emergency service requests. 

Same-day service for all maintenance issues includes (but is not limited to): 

• HVAC issues 
• Heating problems 
• Electrical issues 
• Plumbing 

Total Transparency & Sensibility 

Being a transparent and sensible property management team means that we make everything as accessible as possible for our residents. All documents and information regarding leasing, maintenance, contracts, emergencies, etc., that a resident might need is uploaded and easily accessible via the resident portal. This gives everyone complete transparency and control of their information. 

Additionally, we are a sensible team when it comes to communicating with our residents. It is important to us to build relationships that go beyond property management. We are transparent in our actions in hopes that our residents feel confident being transparent with us. That is why for any person that communicates with us before the first of the month about potentially being late on rent, we automatically waive our late fees. 

We understand that there are challenges in life that are simply out of our control, we just ask that you communicate that with us. Whether it is late rent payments, maintenance, or lease issues, we encourage an open line of communication with our residents. 

The PAM Promise 

“I promise we will screw up. I promise we will take responsibility for screwing up and learn from it. And I promise we are going to do better today than we did yesterday. Our entire PAM fam stands behind that promise.”

– Jim Miller
Owner of Performance Asset Management 

The Pam promise is a value we believe is extremely important when it comes to property management. Being in the property management industry requires us to be knowledgeable about a lot of things. But, with that being said, our working knowledge sometimes leads to mistakes happening. 

Here at PAM, we embrace the reality that things don’t always go well and take it as an opportunity to redirect and learn. When we are honest about our mistakes, we try to show that we aren’t here to trick or mislead our clients and/or residents. 

We will make mistakes. We aren’t perfect, but we will work to make things right as swiftly as possible. We promise that each mistake only makes us better equipped in making sure it doesn’t happen again. Every day we strive to have better service than the last. 

What Makes an Outstanding Resident?

A wise property manager will go to considerable lengths to find a suitable resident. Those who have a track record of being financially responsible, following the rules, demonstrating their ability to pay rent, and taking care of the property, are considered good-quality residents. 

However, keeping your business strong and growing depends on having outstanding residents. This means you can’t simply accept the first people to apply just because they meet a few requirements. There are some characteristics that, although may not be straightforward to see, can make a renter stand out as the perfect resident. 

Some characteristics of outstanding residents: 

• Has a clean eviction record 
• Has healthy financial and credit history 
• Demonstrates respectful behavior 
• Has stable income and employment, with proof 
• History of paying rent consistently 
• Keeps up with maintenance 
• Has non-serious rental complaints 
• Ability to follow directions on rules and regulations
• Is honest

To find the best residents, you must be strategic, savvy and adhere to specific guidelines. Here are some quick tips to help you choose the best residents. 

Have a Tough Screening Process

Implementing a strict screening process is the first and maybe the most important tool for finding the right residents. You should set high standards and make sure that any prospects meet at least the minimum of those standards. In addition to being tough and keeping your standards high, you must also remain fair. Be sure to always follow the Fair Housing Rules and treat all prospects equally.

When screening any applicants, it’s important to do the following:

• Verify income is at least four times the rent (many recommend three times the rent, but we have found that four times drives the best in class performance and DOES NOT increase vacancy time)
• Get copies of their pay stubs
• Confirm their employment by contacting their employer
• Perform a criminal background check
• Check their rental history (Any evictions? Do they move a lot?)
• Check their employment history (Do they switch jobs often?)
• Check their references
• Meet them in person (or virtually)

The final thing you’ll want to do if a prospect passes the screening process is to meet them in person, or virtually. This will give you a better sense of what to expect from them. If possible, meet them at their current property. This will give you deeper insight into the kind of residents they are. 

Take Advantage of Technology

You use technology every day. Whether it’s the GPS on your phone or a simple Google search, technology helps make your life easier and more efficient. So why wouldn’t you use it to find residents?

There are several ways technology can help bring in residents. One of those ways is through digital marketing. You want to make sure you are advertising your properties on multiple websites to reach as many prospects as possible. The more applicants you have, the pickier you can be when choosing your residents.

Make sure your properties are shown on the right websites and don’t underestimate the power of social media. Social media can be a great platform for you to target potential renters. You’d be surprised by the number of applicants you can find by advertising on sites like Facebook.

Another advantage of technology is that the quality of showing-off units has increased tremendously. Having high-quality photos and videos, and offering virtual walkthroughs can increase your rental applications 10x than just having basic information with mediocre-quality photos. 

Putting time and money into great photos and videos will attract many applications. There is nothing worse than having a beautiful property that is poorly showcased online. Utilize 3D cameras to give prospects the ability to take a “virtual tour” or offer virtual walkthroughs for people at their own convenience. You could even get super savvy and offer full drone footage of the entire building. Regardless of how you decide to use technology, this is one area you don’t want to neglect. 

Practice Excellent Communication

Once you’ve chosen your residents, set them up for success by constantly communicating with them. Your residents should always be provided with any information they need from the moment they move in to the moment they move out.

Make sure that they understand the rules and what is expected of them from the beginning. Confirm the cost of the rent. Explain their payment options. Show them how to submit maintenance requests. Communicate any penalties for breaking rules right away. Then make sure they have written copies of everything as well. It will not only make it official but also give them something to refer to.

Follow up with residents often to make sure everything is going well. Make it easy for residents to reach out to you if needed. If any issues do come up, be sure to address them as soon as possible.

Create an Exceptional Company Culture

At the end of the day, if you want to find and keep great residents, you need to be great yourself. A business with a kind, friendly and welcoming company culture is going to attract exceptional residents. And exceptional residents will often renew their leases. 

If you can provide your residents with the best living experience possible, they may even recommend you to their friends and family. A great resident probably knows other great residents and can send them your way if you manage to impress them. It’s a win-win when you are offering world-class service. 

It can be discouraging when you put a lot of time and effort into a property only to have it occupied by awful residents. If you offer quality properties and service, then you should find quality residents. Here at PAM, we offer these quality services when it comes to property management. Let us help you find the best world-class residents, contact us today. 

Fortunately, with the help of technology, managing rental properties has become much easier. These apps are designed to help you streamline your property management processes, save time, and increase efficiency. So, let’s dive in and discover the top property management apps of 2023!

Buildium

Buildium is a cloud-based property management tool that was built by property managers for property managers. Take charge of every aspect of your operations, whether you are working in the office or completely from home. This includes managing online rent and payments, managing vacancies, scheduling maintenance, and keeping track of finances.

TurboTenant

This straightforward service has a simple and intuitive setup that will have you wondering, can I use all this for free? The answer is, yes. TurboTenant is 100% free, no matter how many units you manage. While TurboTenant is free for investors, tenants pay a fee of $55 for application and screening. TurboTenant is designed to help with tenant management for investors, including managing applications and screening tenants online, creating dedicated listing pages, and sending bulk tenant messages from one inbox. What’s not to love about a free, all-inclusive app?

AppFolio

This user-friendly experience gives property management teams everything they need to streamline and grow your business. This cloud-based software automates key processes, from accounting to leasing and maintenance. Thanks to the constantly expanding AppFolio StackTM connector marketplace, you can also connect your preferred property management systems to AppFolio to increase team efficiency and manage your business from a single system.

DoorLoop

This fully customizable software helps you manage your properties, with unlimited free training, support, and migration included. DoorLoop includes custom reports, document storage, and online advertising. Additionally, your tenants can put in online maintenance requests, all while tracking work progress.

Yardi Breeze

Backed by over 35 years of trusted real estate accounting, Yardi Breeze is a simple software designed to provide users with a single-use platform. Breeze puts you in control of your marketing, leasing, and managing your portfolio from anywhere, on any device. Yardi Voyager is Breeze’s little brother. It is a web-based, end-to-end platform that mentions increased functionality for property management marketing, online learning, deal management, facility management, and document management. Check out what the Yardi crew has to offer.

Propertyware Mobile

This software was mainly designed with single-family home investors in mind. It is an all-in-one app for property management, with features for rent collection, lease management, and marketing. It should be noted, however, that it is better software to use with a larger portfolio. Their three-tiered pricing plans start as low as $1 (plus fees).

Scannable

The idea is the digital storage of documents. Scannable is an iOS-only app that easily scans text data and shares it to a variety of locations. It’s optimized for documents, which means it’s not always the best use for scanning actual photographs. This handy app integrates easily with the cloud, some social media sites, and many iOS programs. BONUS: Scan business cards to import the data directly to LinkedIn. Nice.

Evernote

Evernote, Scannable’s parent, is your catch-all for everything you don’t want to lose. Leases, contracts, receipts, lists, articles, and notes stay safe and secure, synced between all of your devices, and backed up automatically. Scan a favorite recipe or an all-important boarding pass, record a brilliant thought, or save an entire web page with one click. If you like hardworking apps that do it all, you need Evernote.

Google

It’s almost a given at this point, but our continued dependence on this vast network of resources earns it a place on our list. Lost a manual for a stove? Look it up. Need to know the average water usage rates for a particular municipality? Google it. Craving pizza from that place on Vliet but don’t remember the name? Google “amazing pizza place on Vliet with the purple awning.” and then go forth and conquer.

Google Tasks

Android Version & Apple Version

The best part about being a property manager is that it’s such a relaxing job, isn’t it?

Right, not so much. At any given time, you’ll be doing five to ten things at once. Since this is a really good way for things to slip through the cracks, Google Tasks is Google’s free iOS To-Do list savior. Multiple lists allow for organization of every factor of your life, color coordinated, and easy to search. Appointments, reminders, recommendations, and notes are kept in one place with an easily readable icon. You’ll never forget an appointment again.

These apps create a mobile office that lets you get where you need to go, on time and fully prepared. Is your favorite app missing from the list? Tell us what it is and how it makes your life better. Happy Apping!

Prepare Yourself & Your Family

During the winter months, it is crucial to be informed about upcoming storms or bad weather conditions. Preparing for winter emergencies is most easily accomplished when you are equally informed and can give yourself some time to gather necessary items. Additionally, you can create a winter emergency plan or emergency kit so that you can be ready at any time! Here are some actions you can take: 

1. Stay up to date with the weather: it is a good idea to stay informed about weather patterns during the colder months so that you can plan accordingly and be prepared for any storms. This can be accomplished by watching the news or monitoring your favorite weather app. 
2. Stock up on supplies: make sure you have enough food, water, and medical supplies to last at least three days in case there are power outages or you are unable to leave your house. For a more comprehensive list, check out emergency kit planning below. 
3. Have a communication plan: this is an important step because many of us take for granted the ability to be in contact with each other since we all have phones. In winter storms, power outages are common, meaning your phone may run out of power if you don’t have backup power sources. Try to discuss how to contact your family or friends in case of an emergency. This could involve using landlines or memorizing numbers in case your phone isn’t working. 
4. Install a backup generator: just as mentioned before, having a backup power source is well worth the investment if you are in an area susceptible to bad winter weather. This way you can still have power during an outage and not have to worry about dead phones or no heat. 
5. Check heating system: have your heating system inspected to ensure it is in good working condition. Keep your furnace and chimney clear of snow and ice to prevent carbon monoxide poisoning. 
6. Plan for your pets: make sure you have a plan in place to protect your pets during a winter emergency. Keep them warm and have enough food and water for them to last several days as well. 

Prepare Your Car For The Cold

1. Service the radiator and maintain the antifreeze level in order for your car to run smoothly. 
2. Check tire tread or, if possible, replace tires with all-weather or snow tires.
3. Try to keep the gas tank at least half full to avoid ice in the tank and fuel lines.
4. Use a wintertime formula for your windshield washer fluid. 
5. Prepare a winter emergency kit to keep in your car in case you become stranded.

Make An Emergency Kit

For You

• First Aid Kit
• Fleece blankets or extra clothes (Fleece retains heat, even when wet.)
• Food
• Water
• Flashlights
• Candles 
• Matches
• Extra batteries
• Shovel
• Rock salt
• Plastic Bags (for sanitation, garbage, or just to have handy)
• Hand Warmers (about three bucks for a pack of four)
• Extra Hat/Gloves/Scarf

For Your Car

• First Aid Kit
• Cell phone charger 
• Flashlight and batteries 
• A Small Shovel
• Sand or Cat Litter
• Flares
• Booster Cables
• Tire Chains
• Winter blankets or extra clothes 
• Snacks and extra water bottles (watch out for freezing water) 

*For additional items you may need, check out readywisconsin.wi.gov for more information on making an emergency kit.

Additional Safety Information

Avoid traveling when the weather service has issued advisories. If you must travel, inform your workplace, friend, or relative of your expected arrival and intended route. Follow these safety rules if you become stranded in your car.

• Stay with your car unless safety is no more than 100 yards away, but continue to move your arms and legs.
• Stay visible by putting a bright cloth on the antenna, turning on the inside overhead light (when the engine is running), and raising the hood when the snow stops falling.
• Run the engine and heater for only 10 minutes every hour.
• Keep a downwind window open.
• Make sure the tailpipe is not blocked.

Above all, be prepared to check on family and neighbors who are especially at risk from cold weather hazards: young children, older adults, and the chronically ill. If you have pets, bring them inside. If you cannot bring them inside, provide adequate, warm shelter and unfrozen water to drink.

We can’t stop winter, but we can try to reduce it from inconveniencing our daily lives. Just a little bit of prep could save you a huge headache later. Be safe and be well!

You spent hours crunching the numbers and searching for the perfect property.

What could be the reason that it’s not making you any money?

Truth is, there could be quite a few reasons why your property lacks profits and even shows a negative cash flow. By the end of this article, you’ll know eight of the most common reasons that rental properties don’t make money and how to change that.

1. You Have Extremely High Expenses

As with any investment or business, you must consider your expenses in order to determine your profit. Expenses are costs you have to pay to keep your investment running smoothly. These include taxes, maintenance, insurance, and any other services you may use.

If you’re paying more for expenses than you’re making in rent from your property in Milwaukee, it can cause serious problems. This means you’re operating at a loss and are actually losing money on your investment.

Keep these costs low when possible. If you can repair something yourself instead of hiring a professional, you can save quite a bit of money.

2. You’re Dealing With Bad Tenants

Renting your property to bad tenants can be quite a nightmare for a landlord. Whether they’re causing damage to the property, paying rent late, or not paying at all, it could be causing your property to generate low profits.

Instead of finding quality tenants who pay their bills on time and take care of things, you’re stuck with tenants who create more costs for you. When they’re paying rent late, you have to use your time and resources to chase them down for it. If they aren’t paying at all, that results in an expensive eviction.

This can all be avoided when you screen potential tenants. With a thorough background and credit check, you can save yourself from spending even more money trying to evict them.

3. Your Property Is Outdated

If it feels like you’re walking into the 1980s or 90s when you go through the front door of your property, it’s probably pretty outdated. This could be causing your property in Milwaukee to generate less profit than you would like.

Because your property is outdated and doesn’t compete with others on the market, you can’t ask for competitive rent. Therefore, you aren’t making as much as you could.

To increase your profits for an outdated home, take some time to renovate and update it. While this is yet another investment, it will surely pay off when you can generate more profits because of it.

4. The Rent Is Too Low

One of the most common reasons properties in Milwaukee aren’t generating good profits is because the rent is set too low. Instead of making a profit, everything is going towards your expenses to maintain the property. It’s a never-ending cycle!

To see how much you can raise your rent, do a quick market analysis. Look at comparable rental properties in your area and see how much they are renting for. This will help you stay competitive in the market and hopefully increase your profits.

5. You’re Focusing On Acquiring Tenants

Acquiring new tenants for your property in Milwaukee is costing you much more than you may think. Consider all the costs that go into marketing your property and the time spent showing it to potential tenants. Plus, the possibility of having a vacancy for one month.

All of this can be avoided if you focus on retaining your current renters, especially if they’re great tenants. To do this, you’ll want to build a good relationship with them. This means attending to maintenance requests, keeping open communication, and respecting them.

In fact, 60 to 70% of your current tenants are more likely to renew their lease if asked. This could be a game-changer for your rental property’s profits.

6. The Property Is In Poor Condition

Do you always find yourself making repairs or calling a professional to fix something on your property? This could be yet another reason your property isn’t generating great profits. These repairs are driving up your expenses and taking away from the income you can profit from.

7. The Property Is Depreciating

When we invest in real estate, we assume it will appreciate over time. Unfortunately, this isn’t always the case. There are times when the value of your property actually goes down.

This can actually affect the amount of profit your property is generating. If the area isn’t as desirable as it used to be, you may have to lower the rent to meet the market’s standards. Therefore, causing you to lose income each month.

8. Taxes Have Increased

Maybe you’re finding yourself in an increasingly popular area where taxes have just been increased. While this is excellent news for your property’s value, it isn’t good news for your annual expenses.

The only way to combat rising taxes is to increase the rent for your property. However, this is most effective if it is in good condition and has modern amenities that are attractive to tenants.

Average Rental Property Profit

How much does the average rental property profit each month? 

Answer: About $100-$400 per month if the owner is paying a mortgage.

If you’re expecting to make a killing from owning just one rental property, you are sadly mistaken. It takes time, strategy, and multiple properties to build passive income to support yourself.

To figure out exactly how much you can expect to profit each month from your rental property in Milwaukee, use the formula below.

Monthly Rental Income – Monthly Expenses – Monthly Mortgage Payments = Monthly Profit.

Increase Rental Property Profits With A Property Management Company

The best way to increase the profits generated from your rental property is to hire a property management company in Milwaukee. With professional practices and resources, these companies often save struggling rental properties, retain more tenants, and increase profits.

Performance Asset Management is Milwaukee’s leading property management company and can help you boost your passive income. As experienced investors, we know the ins and outs of creating passive income, so let us take the reigns and make it easy for you.

Our expert team will manage, maintain, and monetize your rental property in Milwaukee right before your eyes. You can stop worrying about finding new tenants and making repairs and focus on building your property portfolio.

Contact us today to see how we can help you generate the kind of profits you want and deserve!

Matt started out as a PAM resident during college. As he found his passion for real estate, we were happy to bring him on as a PAM team member. Matt continues to provide world-class service to our residents and property owners.

Mother’s Day at the Milwaukee Public Museum has activities to tire the kids and special treats for moms. Free admission and drawings for local restaurants will give mom a treat, and special activities for kids will tire them out nice and early. Catch Ultimate Dinosaurs before it closes May 15th, check out the new Downtown Milwaukee, and let her spend a few minutes in the butterfly room -ALONE.

Find a babysitter for Saturday and have an adults-only adventure with a brewery tour or beer tasting. Go big with MKE Brewing, small with Biloba Brewers, or whole hog with Miller. Sprecher has a mother’s day brunch complete with brewery tour, food, and fun for the little ones if you’re looking for a more family-friendly option.

The Milwaukee Art Museum will be hosting a Mediterranean-inspired Mother’s Day Brunch which includes a special gift and a complimentary mimosa for Mom. Hosted in Windover Hall, brunch includes regular admission to the museum and all the art it has to offer.

For a family-friendly option that should have the kids sleeping before dinner, head over to Mother’s Day at the Milwaukee Zoo. Moms get in free, and there will be snacks courtesy of Lifeway Foods. (While supplies last, so I would bring backup if your herd gets hungry).

Potted Plants

The easiest and most space conscious choice is a few potted plants. They won’t take much energy to care for and they’ll do wonders for your décor. Many plants have the added benefit of filtering your air, so they literally improve air quality just by existing. Mosey on over to Stein’s and ask a green-shirted professional, or check out these lists. Here are some great plants that are darn near impossible to kill, or here’s a great list with the best plants to improve air quality. If you’ve got some extra time and little ones to entertain, buy some seeds and dirt, terra cotta pots and a bit of acrylic paint. Have them paint their own pots, then plant a few seeds and watch the magic happen

Succulent Pots

Succulent pots are small, adorable, and super easy to care for. Visit any hardware or plant store and they’ll likely have a huge display of 2 and three-inch pots. Keep them in individual pots and group for an interesting focal point or repot into a large, shallow planter for a mini garden.  Since the vast majority are desert plants, their watering needs are low; you’re far more likely to overwater these than kill them out of neglect.  Make sure they have a sunny spot and water thoroughly every two weeks.

Fairy Gardens

Fairy gardens are potted plants with whimsy.  Great for kids, they can be just as fun for adults. Grab a decent sized pot and three to five small plants. (Most garden stores have a section for fairy garden plants.) This is where the fun comes – gather those little odds and ends that end up at the bottom of the toy box. Dollhouse furniture, action figures, gaming minis, or McDonald’s toys are perfect. Create little living worlds with small plants and toys to be enjoyed for months. For the truly hardcore crafters, check out the fairy garden Pinterest boards and see what you can do with fountains. The sky’s the limit!

Potted Herb Gardens

Both easy and functional, these can be found in little kits at your local garden store, or make your own with a few small pots and a bit of sunlight. Great for the chef in your life, these provide a constant source of fresh herbs just waiting to be eaten, and they smell great on the vine, too. Keep them on the stoop or balcony in summer, then move to a sunny windowsill in winter and enjoy all year round.

Potted Vegetables

Who says you need a garden to garden? Potted vegetables will need larger pots to accommodate root growth, so make sure you find ones at least 2 feet tall. Fill the bottom with a layer or two of stones to ensure good drainage, and use good quality potting mix meant for vegetables. Keep only one plant to a pot and surround each plant with a bit of mulch to provide some extra vitamins. This option will be more labor intensive, but at the end you’ll be eating your own produce.

We’d love to see how our tenants bring springtime into their homes! Send a pic of your family and your favorite springtime project to lindsay@pammke.com for a change to be in our next newsletter!

The Avenue

This centrally located shopping center has been an untapped resource for over a decade. Ownership has finally transferred back to local groups and the community is dedicated to restoring this center of commerce. Plans center on expanding the usage of the space beyond retail, with educational, event, and entertainment spaces.

Milwaukee Streetcar Project

Ready to bring history and interest to our most walked areas, the streetcar received federal funding in 2012 and construction is slated to begin serving area residents in 2018. The line is intended to supplement the existing bus line and will cover the Third Ward, East Town, and the lower East side with potential for expansion.

The North End

The transformation from a highway spur to a neighborhood by design was spearheaded by the Mandel Group and began in the late 2000’s. The initiative has brought over 200 market rate apartments and thousand of square feet of commercial space.  The third phase, located on Pleasant and Water Street will include a Fresh Thyme Farmer’s Market and another 168 apartments, with the fourth phase to close out the project with a final total of 650 new residential apartments.

Lakefront Gateway Project

Located on the shores of beautiful Lake Michigan, Milwaukee and the Lakefront Gateway project aim to improve our access to the lake. The plan seeks to calm traffic and create a ‘sense of arrival’ for drivers on Lincoln Memorial, making it an experience beyond just driving. It also aims to improve pedestrian access to the lake and develop a public plaza in what is currently residual space.

Milwaukee Bucks Arena

The aim is to create a world class sports and entertainment destination in the heart of downtown Milwaukee. Renderings were released last week of the arena that will anchor the complex, spanning over 30 city blocks. The new designs are modern and dramatic, featuring a zinc and glass wrapped exterior and a layout designed for entertainment and ease of travel.

The best part of our business is helping others grow their investment, and we want our clients to have every resource possible. Real estate sales are projected to hit the highest they’ve been since 2006 and here in Milwaukee, we’re experiencing a sweet spot of investment vs. return. While prices soar on the East and West coast, the moderate housing market in the Midwest is drawing many out-of-towners who aren’t seeing a return on their ocean-side investments. Strike while the investment iron is hot, and you’ll reap the benefits for years to come!

Since we’re thinking about Milwaukee real estate constantly anyway, we’re going to share ten of our favorite on-the-market properties each week. Whether it’s a great little place for first time home buyers or another step towards investing domination, we want to help you find your home.

If you see something you love, email Jim@pammke.com and he’ll get you started.