Good grief, Charlie Resident!

Landlording is a crucial operational component of every MHP. One of the cornerstones of successful landlording is selecting good residents. The wrong residents will make your life a nightmare, the right ones will have you singing all the way to the bank. They’ll pay on time, maintain their home in good repair, and keep the outside area nice and tidy. They’ll be courteous and respectful to their neighbors, not engage in loud parties, domestic dispeace, or any activity that draws police attention.

We had been in the landlord business for a few years prior to taking over Madison Woods but our approach was informal. While it worked fine with disparate single family houses, running a MHP is a business. It is not just an amalgamation of homes. It comes with the additional responsibility for managing the physical infrastructure and the social fabric of a community. In response to these increased demands, our approach became more systematic. We standardized the resident selection process. Our most important objective is to turn good prospects into good candidates, and then, good residents.

The first step in the screening process begins with a prospect’s initial phone call. Our goal is to assess whether they are suitable for Madison Woods. This prequalification eliminates those who don’t have a stable, sufficient source of income and those with a sordid criminal background. Simultaneously, we need to peak their interest in us enough to motivate them to come visit our community. We utilize a phone script to ensure that we obtain the necessary information each and every time and convey a consistent message that hits upon all the points we want to make.

The next step occurs during the prospect’s first visit. Our goal is to impress them with the value that our homes offer and the quality of our community in general. Even if they don’t end up buying a home, we want them to spread the gospel of Madison Woods to their family, coworkers, church, and friends.

By the end of the initial visit, we hope the prospect has decided that Madison Woods is the right place for them and we have a home that they want and can afford to buy. Once its determined that we have a good candidate, the final step is to get them into that home. This begins by having them fill out an application and collecting a deposit. The purpose of the deposit is to first, weed out tire kickers and pretenders. Secondly, discourage prospects from searching any further by psychologically committing them to follow through with the home purchase transaction they’ve just initiated with us.

In addition to the application, all adults must submit a police report. We also request a letter of recommendation from an employer, clergy, or other outstanding member of the community. All of this information is evaluated against our selection criteria. The last step is an interview before the Resident Selection Committee. This panel is composed of a few exemplary residents who assess whether the candidate will be a good fit for Madison Woods. Their subjective evaluation of the candidate is the final check. Upon their recommendation the candidate signs the necessary documents and becomes the newest resident in the Madison Woods community.

Next time we’ll discuss Let Me Count the Ways- an in depth look at our selection criteria

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