PropertyZar

It’s time to face the fact that there is a good chance your tenants don’t love you. If that is true of your property management company, then maybe it’s time to find out why.

With all the potential issues that can go wrong, coupled with numerous tenants, it’s common to have rocky roads with tenants. However, a good property management company can implement processes and procedures to reduce the amount of complaints.

Good Relationship

A good and open relationship with your tenants is the start of good things to come. Good relationships lead to less vacancies and higher retention rates. Communication is critical for property management companies and the most common way of communicating is SMS, email and the phone.

Communicate about everything. Most property management software systems include these features as well as logging all past communications. So communicate about general violations, reminders for events, trash pickup, upcoming invoices, holiday schedules etc.

Work Orders

Another

Many industries throughout the marketplace have changed their practices in response to developments in technology, but real estate, including property management is still largely stuck in the past. On-demand app development is making access to services easier than. Artificial intelligence and the Internet of Things are connecting us in new ways every day. It’s clear that taking advantage of these developments is key to progressing.

As an industry with roughly $280 trillion in value, taking advantage of these new opportunities could produce billions or trillions in profits. A number of large real estate companies are attempting to build their own in-house technology, but in many cases, it would be more efficient for them as well as and property management companies to use existing solutions. These are some of the most exciting possibilities that new developments in technology can offer the real estate industry.

Outsourcing the Cloud

Cloud services is a rapidly growing industry with

Multifamily housing has always been a good investment. Investors have generally loved this sector.

Performance

In 2018, multifamily vacancy rates (for class B & C) have been below 6% while class A properties are about 9%. More and more investors are closing watching multifamily properties, particularly in B & C classes. These classes can maintain if there is a downturn in the markets. Unlike Commercial properties,  Residential properties in these classes are generally recession proof.

Smaller Might Be Better

Class A properties are the most competitive among investors as well as attracting new tenants. But smaller is often times more profitable. I personally like quads and duplexes. We build quads on a regular basis but there are many duplexes, triplexes and fourplexes out there that are in need of repair. Great opportunities for value added investors.

Location

Depending on your experience and skills, it is best to invest in properties that are relatively close to your location. There are

Office workers seem to have a harder time concentrating at work then do remote workplace workers.

Google’s Work Environment

Look at Google’s offices. Have you seen these crazy offices? Lounges, tree house type cubicles and hammocks.

It looks like a fun place to work but the question is, does that environment and money produce anything of substance for the workers?

I understand that companies are trying to woo talent and win over the best team members they can. It seems their goal is to create a team and stimulating environment, but is there a downside to this? Research shows that the pros don’t outweigh the cons and the problem is getting worse.

Some studies have found that the # of people who say they can’t concentrate at work has increased by 16 %. Workers like quiet places. Trying to find a quiet place in some of these companies is not as easy as you think. The # of workers who say they don’t have access to quiet places has increased by 13 percent.

Why Does it Matter?

Does it matter where

Recent Study

A recent study shows that about 25% of property managers are optimistic about the future and 47% are somewhat passive and 28% are negative. For those negative 28%, the biggest issues are overworked, underpaid and stressed by the demands of the clients, which are ever increasing.

People Challenges

Many property managers are keeping their finger on the pulse of the future, but the challenges of people are draining most of their time and resources. As Gomer would say, Surprise! Surprise! Surprise! Because of this, approx. 40% of respondents say their next job will be in a totally different field.

The Best Property Management Companies

The best companies are ones that are run well and that offer structure and processes in place. Great management companies understand that their property managers are more than a task manager. They are more in line of a property advisor.

The Make-Up Of Property Management Companies

This may be no surprise to most of you, but approx. 82% in the industry

Offering Pet Friendly Amenities 

With so many households owning pets (est. 70%), offering pet friendly amenities will attract a larger pool of potential renters. These pets are ‘children’ to these families and if you are willing to show some ‘love’, property managers might just reduce your vacancy rate.  

Being a pet friendly place can be a go or no-go decision for potential renters. Especially families, who look for property landlords who except pets.  

Here are some ways property managers can make their rental properties more pet-friendly 

Pet Parks  

An excellent way to help renters keep their pets active. Outdoor pet parks provide the opportunity your tenant’s pets to socialize and get to know each other while at the same time, run off some energy which equates to calmer and quieter time in your property. 

Running Paths 

In addition to pet parks, a running path for owners and their pets can also be very beneficial.  

These spaces also provide your tenants with some benefits as well.

Rent Control Advocates

If you do any amount or reading or watch any news, advocates are everywhere and for every cause. Some good,  some not so good. Rent control is no different. There are advocate groups pushing for rent control. A recent defeat in CA had set the rent control push, a few steps back. California Prop 10 would have allowed new tougher rent laws.

Rents have continued to rise faster than incomes in many cities across the US.

State Laws

Most states (approx. 45) prevent local governments from enacting laws that place any type of rent controls. But what is now, doesn’t mean it will remain the same. Just a short time back, most states had laws against illegal immigrants. Today is a different story.

Multi-Family Investors

Investors who own apartments or other multi-family properties would be most impacted if any rent control laws were to be passed. Experts in the mulit-family sector worry that laws could freeze rents on existing properties. That would have profound affects on the

Depends on what type of investor you want to be. Profits are made in both scenarios but choosing the right strategy depends on several key factors. Consider your age, need for cash flow, retirement goals and many other factors. 

Holding Properties 

Buying and holding properties usually are for longer term investments for the purpose of cash flow. In addition to cash flow, the buy and hold investor is also building equity as the mortgage decreases and the home appreciates in value.  

Flipping 

On the other hand, flipping properties is a short-term investment (at least that’s the initial intent). It is intended to produce capital gains quickly (in theory). There are many risks associated with flipping homes. From underestimating the repair costs, over estimating the market value after repairs, repairs taking longer to complete, property on the market longer than expected, unexpected issues such as structure and a plethora of other potential issues.  

So What Approach Should You Take? 

For

There is no argument, technology has changed the landscape of nearly every industry in the world. That includes property management. There are many positive outcomes from technology but also some downside. So, should you abandon technology and go back to a more one on one personal relationship with your tenants?

In short, No! However, there is a balance that can be had and to see the best results, you need to know where that balance lies, for today anyway.

All Technology

Is it possible to go completely technical in all aspects of property management? I would say no as of today but that is quickly changing. Look at the storage unit industry. They now have self-serve kiosks for renting units, gaining access, signing leases and everything else. Can this amount of automation work in other markets such as the vacation, commercial and residential?

Vacation Rentals (short term)

If you look at the vacation rental market, their technology is closer to fully automated then the typical commercial and