When a Property Manager Takes on too Much

A lot of people who regularly work in real estate are embracing property management as a side business. Across America, realtors and real estate agents who have been shocked by the decrepit state of the industry are not making enough sales and are having a hard time keeping consistent listings. As a result, they are managing properties as a way to pay the bills until the market picks up again. Because more quasi-property managers are flooding the market, there is more rivalry between the quasi managers and the pros, which is obliging all who want to build their portfolio to find additional properties to rent out.

Many of the newbies are agreeing to manage broken down properties from landlords at management rates as low as three or four percent while accepting high rental rate demands from these same owners. Unfortunately, these same owners will expect to make money from the dilapidated properties that aren’t ever likely to generate a welcome income. This is one mistake but one far more typical mistake made by such newcomers to the industry is to manage accounts that are geographically located too far away from their own headquarters and/or general neighborhood of expertise.

Many property management firms market themselves as companies that can handle properties in different locations within the city, but it must be understood that the best property management companies are the ones that are best structured to handle such accounts. They have the systems, the means and the staff members on hand to serve such accounts across different districts and neighborhoods, and are able to do so professionally. However, newbie realtors and real estate agents, as single parties, often accept such geographically distant accounts and are not able to process or handle such accounts properly. But because of the struggling real estate market, they find it hard to refer a landlord client to a professional property management firm for a simple referral fee when they can generate a steady income profit from managing the property themselves.

The property managers with experience know how much they can take on and would rather deliver Grade-A service than risk tarnishing their reputation on a property that may prove to be too problematic for them in the long run. Nothing kills the motivation of a new property manager as much as having to drive across town several times a week to try to rent out a property that is difficult to rent out in the first place. The more the property manager has to spend on driving from place to place, the more he will question whether the account is worth preserving as total driving time and gas expenditures add up. In the end, the property owner is unhappy with the care and maintenance undertaken by the hired property manager and eventually lets the property manager go.

This is why it is best to own up to your experience when you are a real estate agent or realtor and to understand that saying “no” is in your best interest when talking about a property that is significantly outside your area of coverage. After all, property management is not the same as simply selling or renting out a property as a realtor – it is much more complicated than that.

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A Property Managers View on Subletting

May 13, 2013

There’s something about subletting a unit – when your tenant does it — that runs against the grain of a property manager’s sense of work and duty. You put in a lot of effort to find the right tenant – one who clears a criminal and credit background check, who is legitimately employed, who has presented a solid personal reference or two and whose recent landlords you’ve spoken with. In other words, a tenant you’ve done everything to make sure is reliable and responsible. A good property manager knows that this is the only way to make sure the property unit is protected, that the rent will be paid on time, and that the tenant will even be the kind of neighbor who is kind and considerate to you and others.

Your business gets thrown a curve ball, however, when your tenant wants to sublet the unit to another person. He or she will be in charge of the screening process and this can invite all kinds of problems. Of course, it will be in the tenant’s best interest to make sure the subletor will be responsible and reliable with the unit and with paying the rent on time. At the same time, the pre-existing tenant will be the one who will be held liable for the lease and any damage or financial penalties until the term of the lease finally runs out. However, the big problem here is that most tenants simply don’t have the experience or know-how in property management to know who constitutes a reliable tenant. Because of this, there may be problems when the tenant wants to secure a subletor for the unit he/she is responsible for.

Sure, subletting your unit out may not always be what your want or prefer, but when you are in the position where the alternative is lost rent, you should go for it. If and when you find yourself where a sublease is in order, it’s important that you take care of the following points:

  • Make sure the pre-existing tenant – the one in charge of finding the subletor – has a history of exercising good judgment and of being responsible.
  • Also clarify to the pre-existing tenant that a credit and criminal check is required of the subletor (to be covered either by you or the tenant).
  • Be certain to have all the necessary legal paperwork signed and understood by both the tenant and subletor regarding the financial obligations of the sublet, i.e.: the monthly rent payments and fines linked to property damages.
  • It’s critical that you are the one to ultimately approve the potential subletor.

At all times, you must remember that you are the property manager and that you are the one who sets down the parameters on subletting. If you are one to decide that subletting is not right for your business and ban it, make sure to write as an important clause in your lease contract.

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Successful Property Marketing Techniques

'Housing Market' photo (c) 2012, 401(K) 2012 - license: //creativecommons.org/licenses/by-sa/2.0/

When it comes to marketing your rental units, practically everything has been done already. From bench signs to social networking to floppy lawn signs, most property managers have done it all. Yet because these marketing techniques are employed so much, their impact on consumers is not especially strong. So, as a property manager, what can you do to reel ‘em in? We have some ideas on what you can do to vastly improve your business:

Play with your Number

Your phone number plays a big role in your marketing campaigns. But you lose out on a big opportunity to land tenants when you use a regular phone number just like everybody else. Instead, get your own personalized phone number – one that really sticks with people. For example, a number that is made up of almost all threes. Or a number that spells out a memorable word. You stay ahead of the game when your number is easy to remember. In a world where people are always in a rush, such a number can help you land more business.

Grab their Attention

Ramp up the fun factor a bit when you advertise property vacancies. Go for broke and think of creative headlines when announcing a rental listing. Something like: “Your Wishing Well Wish Came True: your Dream Home is Right Here.” Or “Miracles Happen: Your Wife will Love this Place, Too”, etc. Don’t know what to write? Hire a copywriter or someone who can creatively string words together to write out your slogans.

Be a Radio Star

Most property managers would never consider advertising on the radio. But it’s a surefire way to let a company personality shine straight to the masses, often very inexpensively. When you do radio, free advertising opportunities abound. You can win a spot on a “Meet the Experts” panel on a regular radio informational show, or even host your own weekly half-hour or hour show. Small radio stations are always looking for people to fill up air time, just roll with it and come up with creative skits to impress your listeners.

Be a Video Star

YouTube videos are a novel way of marketing yourself and your business, when you know what you’re doing. It can be tricky to send links of your videos to your database of prospects. (Think of it as putting out a newscast directly targeted to the people on your list.) But the investment is well worth it – the medium really helps to shorten the distance between you and the consumer, i.e.: someone who wants to do business with someone who seems very human and approachable.

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Spring Cleaning / Move Out Cleaning Checklist

'Washington, DC: Cherry Blossoms' photo (c) 2012, Justine Jablonska - license: //creativecommons.org/licenses/by-nd/2.0/

May 1, 2013

So long April showers, hello May flowers! Pretty soon you’ll be bombarded with graduation invitations and start feeling the need to plan your summer vacation (if you haven’t already!). But before you can do any of that, Spring is a time of new leaves and renewal so why not make that go for your home as well?

Completing a deep clean is very important and the best way to make ensure cleaning tasks proceed smoothly and completely is to have a good cleaning checklist. Like all big projects, it’s a good idea to do your homework and construct a plan. Yes, that means putting pen to paper or creating a spread sheet, if that’s more your style. So whether you are  moving out of your own home, or just cleaning a rented property before moving out,  or simply looking to complete some Spring cleaning (given the time of year!) we have a complied a cleaning tip list to keep all parties busy and of course the landlord and property manager happy.

General

      1. Wash all windows both internally and externally.
  1. Wipe and clean window sills and curtain rails.
  2. Wash inside and outside of front and back doors.
  3. Try to remove all scuffs and marks from the walls, where necessary repaint if you have the correct shade.
  4. Wash completely all floors.
  5. All carpeting should be professionally cleaned to remove stains depending on length of lease.  It is a good idea to check your lease and keep the receipts for these tasks so that the cost can be deducted from you security deposit.
  6. All garbage must be removed from the property.
  7. Clean out fireplace if applicable.
  8. Clean all blinds and wash or dry clean all drapes and valances.
  9. Clean all light fixtures throughout unit and replace any burnt out bulbs.

Kitchen

  1. Clean inside and out of dishwasher and range hood.
  2. Sweep and wash the kitchen floor, including beneath all movable appliances.
  3. Wipe and clean sinks and counter tops completely.

Refrigerator

  1. Clear out all contents first
  2. Wash the  inside of refrigerator with water.
  3. Take out all removable shelving and drawers and wash separately, dry and replace.
  4. Wash the outside of refrigerator.
  5. Remember to move the fridge and complete cleaning behind and underneath also.
  6. Freezer must be defrosted and cleaned. If defrosting, remember to turn appliance back on once completed.

Oven

  1. Remove racks and clean by soaking in hot water to remove all difficult to remove dirt.
  2. Clean fully the inside of the oven, top of the stove, and underneath the elements.
  3. Clean behind and underneath the appliance (if moveable).
  4. Wash and dry outside of stove.

Vanity Cabinets and Drawers

  1. Remove all contents
  2. Wash cupboards on both the inside and out.
  3. Wipe out drawers with damp rag.

Bathroom

  1. Remove all personal belongings.
  2. Wash down all tiled areas ensuring to pay attention to the grouting areas.
  3. Clean bathtub, shower area around the tub, sink, door and ensure all fixtures shining.
  4. Remember to Clean the inside and outside of toilet.
  5. Wash and shine mirror.
  6. Sweet and wash all floors.

External

  1. Ensure the lawn is freshly mowed and weed flower beds if applicable.
  2. Finally, remove all garbage, debree and external clutter as first impressions are key!

In order to recoup your deposit upon vacating a rental property, its is important firstly to give the landlord or property manager the required notice period but secondly to ensure the property is spic and span and in its original condition that you got it in. We at Agon Management hope that you find this checklist useful in moving towards a sparkling clean and organized house inside and out. If you have any further tips or recommendations on this topic that you’d like to share, please comment below! We would love to hear from you!

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Exterior Paint Colors – A few simple guidelines to help you find your true hue

Deciding to paint your house or choosing a new shade for your humble abode can be pretty daunting but rewarding at the same time. There’s nothing like paint to transform the look of your home’s exterior, but since there’s no shortage of shades from which to choose, it can be challenging to make a final selection.

Compliment your neighbors

'Colores de los conventillos de Caminito' photo (c) 2008, Noelia Diaco - license: //creativecommons.org/licenses/by/2.0/

While it’s a great idea to get creative, it’s usually a bad idea to choose colors that may clash with your neighbors’ exteriors. You can always stand out, but try to do so in an complimentary manner and keep in harmony with your neighbors  Also please bear in mind that some communities have rules in relation to maintaining a certain color scheme.  Furthermore, be aware of the fact that certain colors look more at home in certain surroundings and weather conditions. While we love the port houses of the Caminito in Buenos Aires, perhaps your neighbors may not appreciate your new cultural perspective!

Coordinate

Coordinating house colors can be confusing. Most houses will use a palette with at least three different colors for siding, trim, and accents. Add character and charm by painting your window trim and architectural details in a contrasting accent color. Accenting will work when done correctly. You need to take care to accent  the more attractive elements of your home and avoid drawing attention to dull uninteresting features like pipes or air conditioning units.

To paint or not to paint..

Choose wisely when it comes to making the initial decision to paint naturally occurring stone work or brick house. In some cases such houses are best left untouched, having their own naturally occurring characteristics and once you paint it unfortunately you cannot go back! Perhaps take the alternative of leaving some of these areas untouched, and choosing a colour  that may pick up the color of a non-painted area.

Remember your proportions

As a rule keep in mind that generally speaking light colors  have the effect of making a house look larger, brighter and more inviting, and if painted on a house that’s situated a little away from the curb, they can aid in bringing the structure visually forward. Darker colors, on the other hand, can have the effect of  making a property look more bigger and more substantial and solid, and especially if applied to a home’s lower portion, they suggest strength and permanence.

Finally remember that painting the exterior of your home is a big undertaking. You will need the right type of paint, quality tools and guidelines on getting the job done, and getting it done successfully.

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Buying a Property? This is What You Should Do

March 1, 2013

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As a property investor, you will evaluate a property in a very different way than someone who is shopping for his or her future home. That is, you will buy a property with much fewer emotional attachments and more logic as you hunt for a highly bankable property. But even if you are using your shrewd business mind when looking over a property, it’s possible you are not being thoroughly diligent and taking care of certain issues before buying it.

Inspect the Property

Being cautious about an investment property means you must take care to hire a third party to thoroughly inspect the unit. Inspection is absolutely vital to you potentially saving hundreds and even thousands of dollars in damages such as mold, a damaged roof, water leakage, i.e.: the typical property problems owners may fail to disclose to you as you look over a property. It is important that you contract a professional inspector to inspect the property before escrow closes. All real estate agents will be able to recommend you an inspector, but you can always check the American Society of Home Inspectors (ASHI) for a reliable inspector. All the members of ASHI must meet organizational standards and pass exams as well as keep to a built-in system of checks and balances. But make sure to check the references of every inspector you evaluate – the inspection phase of buying a property is so critical to your business that getting the right inspector is key to you potentially saving a lot of money in the future.

 When To Inspect

The best time to carry out the inspection is after you’ve made an offer. And if the inspection turns up information that forces you to drop the property, make sure your real estate agent builds in a contingency to enable this to happen. If you opt to have the property inspected before you make an offer – you can do this – remember that you will have to pay for the service, which may set you back considerably even before you make the offer (others may bid on it in the meantime).

 

Make sure the seller gives you a full disclosure before the inspection takes place. This will help you stay abreast of all problems that may or may not be detected during an inspection. Be sure to acquire this information before the inspection so that your inspector can carefully inspect the problem areas in the building. Take care to remember, however, that sellers will only give you a disclosure to the best of their knowledge – there may be issues with the unit that even they may not be aware of.

 

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The Move-In / Move-Out Checklist

'3D Home Inspection Checklist' photo (c) 2012, Chris Potter - license: //creativecommons.org/licenses/by/2.0/

January 15, 2013

One aspect of reducing costs when managing a rental property is to limit the expenses associated with tenant turnover. Tenant turnover often entails a renovation of the rental property — in order for the rental unit to attract a new tenant, it must be professionally painted, cleaned or touched up, with carpets cleaned or replaced. The key in knowing what expenses to cover and what expenses to charge back to the tenant is in knowing the condition of the property before and after a tenancy.

To this end, keeping a written “Move-In/Move-Out” checklist that allows both parties to keep track of the state of the property at the times of “Move-In” and “Move-Out” eliminates any misunderstandings regarding which party will pay for certain damages upon move out. An inspection of the property with the tenant before move-in – for the sake of documenting the condition of the unit for the checklist – is vital. It is necessary to take notes on the condition of screens, windows, appliances, blinds, walls, doors, lighting, heating, flooring, a/c, toilets, faucets, ceiling fans and any other aspect of the interior and exterior of the rental unit. Remember to have the tenant sign and date the document after the initial walk-through with the tenants. The use of a video camera or digital camera is also recommended upon both “Move-in”and “Move-out” – the images will help stave off any tenant challenges in the future, i.e.: the “It was that way when we moved in” argument.

Alternatively, the checklist serves as a valuable reference point if and when the tenant requests a repair that is outside the scope of the normal wear and tear of a unit. In this case, the checklist will safeguard the landlord’s right to charge the tenant for the repair, if it is found that the damage incurred falls outside the bounds of normal wear and tear. The checklist favors both parties in that it can protect the tenant from unnecessary security deposit deductions while also protecting the property owner from costly damages to the rental unit. For the property owner, the existence of the checklist sends a clear signal to the tenant about his/her responsibilities in taking care of the rental unit during tenancy. The tenant, in turn, can rest easy knowing that if they maintain the property they will receive their security deposit back when the lease ends.

Clearly, the “Move-In/Move-Out” checklist benefits both the landlord and tenant and should be standard policy both when a tenant moves in and moves out.

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Three Tips for New Landlords

'3D Realty Handshake' photo (c) 2007, Scott Maxwell - license: //creativecommons.org/licenses/by-sa/2.0/

January 15, 2013
When it comes to crafting a lease agreement, every landlord or property management firm has to write it in terms that protect the real estate investment. But the smart landlord or property management firm must also make sure the document accommodates the interests of the new tenant. This is vital if a strong relationship is to be built with the new client.

Of course, there are the basic considerations any savvy property owner must take into consideration before drafting the lease agreement. These include understanding: the Fair Housing Act and how it applies to your rental; proper screening of the tenant so as to avoid deadbeat tenants; state rental laws; and the eviction process.

However, other not so obvious considerations exist that are important towards clarifying the relationship with the tenant. Here are three such points:

  1. Write in a Moving In and Moving Out Procedure: Devising a clearly defined moving in and moving out procedure will help make the whole process easier for both you and the tenant. Be sure to mention that the state of the rental unit both before and after the tenancy will be checked against a comprehensive walk-through checklist. This consists of a document that will be used by the landlord or property management firm to walk through the rental unit with the tenant and document the state of the unit upon move-in and move-out.
  2. Include Performance Incentives: It is standard practice to link a fee to tardy rent payments. However, property managers can encourage timely rents by offering a reward for early rent payment, renewing for a longer term period, and/or any other tenant behavior you want to incentivize. Rewards can range from simple rent discounts to a more complex point system where tenants earn points that can be exchanged for rebates, updates to the rental unit, gift cards, etc.
  3. Continually Work with At Least Two Good Contractors: Landlords and property managers need to establish a relationship with at least one licensed contractor who can manage large jobs, and one inexpensive handyman who can affordably take care of minor jobs.  Don’t wait until a tenants’ air conditioning system stops working in July, or the ceiling collapses, to start moving on finding a contractor. The time it takes for a property owner to find and hire a reliable contractor will undoubtedly cost the rental unit owner money. To avoid this, be smart and establish and test contractor relationships before you actually need their services so that when the time comes, all you have to do is make a phone call to have the problem worked on immediately.
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Simple ways to adding value to your apartment building

January 2, 2013

When you invest in a multifamily apartment building, you want to make sure you get the highest return possible for your investment. Besides location, an attractive building is one of the main draws to potential tenants. Landlords and property management companies that look to always improve the exterior of the apartment building will find that such an investment can boost the occupancy rate significantly. What are some ways you can increase an apartment building’s curbside appeal? Read on to find out.

 Exterior Power Wash

This is one of the most cost effective ways to give your apartment building a freshly painted look without having to actually splurge for a paint job.  The whole process only takes up to a day and costs about 1/8th what it would cost to paint the entire building. Just make sure the power wash team also does windows. It is also a good idea to verify that the current paint job is in good shape otherwise the high pressure water will blast it right off. But if the water strips the paint off, it is probably a good time to repaint anyway.

Exterior Paint Job

If pressure washing isn’t an option because the current paint job is too old, it’s time to book a crew to do a professional paint job of the whole building. Planning this correctly means the owner or management company should set aside a 4 to 6 month budget to pay for the job. It is important to only hire a licensed, bonded and insured paint contractor so that you are protected if and when one of the workers falls off the scaffolding and hurts himself.

Replace or Update Property Signage

A new or updated sign in the front of your apartment building can do wonders for bringing in new prospects.  Giving your sign the equivalent of a face lift can just require a fresh coat of paint or you can go as far as rebranding your property with a new logo and look. Whatever option you go for, just remember to keep a “vacancy” placard attached to the sign that encourages walk by traffic to stop in for information.

Landscape Repair

If the grass in front of the property has dry spots or dirt areas and the flowers are looking too bare and ragged, it’s time you consider giving your landscape contractor a call. Few things frame an apartment building as well as a manicured lawn and flowerbed. Dead grass, wilted plants and un-kept trees may give prospects a bad impression of the landlord or property management company, which is why it’s important that the property greenery be colorful and inviting.

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Energy awareness tips in your home

December 14, 2012

Embracing a more environmentally conscious way of living brings benefits not only to your bottom line but to the environment and greater community as a whole.  Not just a fad, its becoming increasingly obvious that the more people who join in on carrying out the small tasks and actions that constitute a green living, the more the green revolution is here to stay.  So what are you waiting for to adopt the easy, small things you can do to help save the environment? Even a minimal change in your daily habits will make a tremendous difference in the long run.

What you have to do first is to look around your home, apartment or condo and evaluate what you can do to practice the 3 R’s – Reduce, Reuse and Recycle. Once you do, you will realize that going green is really quite simple. For every plastic bag that you refuse to use, for every aluminum can that you toss in the recycle bin and for every carpool that you decide to take part in can go a long way to creating change.

Here are some simple steps that you can do to create change that starts from the home.

  1. Make sure that all home appliances and equipment is turned off when not being used. Because some electronic equipment and appliances (your television, computer, toaster, microwave, etc) still use electricity when turned off, it is a good idea to turn off and unplug electrical appliances that you are not using to increase efficiency even more.
  2. Replace your incandescent light bulbs with energy efficient CFL (compact fluorescent light bulbs). These use much less energy and lasts 10 times longer according to the US Environmental Protection Agency. Be sure to always dispose of your burned out light bulbs properly. When in doubt, contact your local recycling facility so that they can direct you where to go.
  3. Cut down on the use of plastic bags. Use a reusable shopping bag when going to the grocery store. It’s a good idea to keep a few of these reusable shopping bags in your car so that you don’t end up using grocery store plastic bags, for which you must pay an additional fee.
  4. Set your thermostat at a low temperature. According to the US Department of Energy, turning your thermostat back 10-15 degrees for eight hours a day can save an individual an estimated 10% a year on heating and cooling bills. In the winter, set the thermostat to 68F when you’re awake and at home. Set it lower while you’re asleep or not at home. In the summer, adopt the same strategy with central air conditioning – turn off the air conditioning when you’re away and lower the thermostat setting to 78F when you’re at home.
  5. When purchasing new appliances, look for the “Energy Star” logo, which is a hallmark of the US Department of Energy and the EPA. “Energy Star” logo products are considerably more energy-efficient than non-logo appliances.
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