Has this happened to you … you’ve spent a good amount of time with a prospect, you’ve developed rapport and built a good relationship. You think you have a handle on what s/he wants and know that you’ve just offered your client the perfect new home, when s/he looks at you and says,

“Wait…your rent is $1,250 for a two bedroom apartment. The Willows across the street is renting a similar place for $1,100. Why are YOUR rents higher than their’s?”

I dreaded this as a front line leasing associate and I’m not alone! Whenever I do a training seminar on closing the sale and overcoming objections, this specific question regarding specials

So what do you do when a competitor has lower rents, a better special and/or more attractive incentives than you can offer?

I would encourage you to use, what I call, the “Chuck Norris Response”

This can also be referred to as the “Most Popular Guy/Gal at School Response,” the “George Clooney Response” or the “Kate Upton Response” (and no, I’m not putting in a picture of Kate Upton…nice try, folks!)

The basic gist of this response is to turn the negative (“Why don’t you have specials like those guys??”) into a positive.

As Inigo Montoya said, “Let me ‘splain….”

Somehow I imagine that if Chuck Norris were asked why he chose to double park his car outside, he would say, “Because I’m Chuck Norris, that’s why!”

If you asked Kate Upton, “How in the world did YOU end up in a commercial for an Internet game set in the Middle Ages??” she could answer, “Because I’m Kate Upton!”

You get the idea? In a way when someone asks you why you don’t have any specials and the other guys do, the impression you want to give is, “Because we’re Cottonwood Creek!” or “Because this is Elm Grove Apartments!”

Here’s how you can give that impression, and turn the negative into a positive, without sounding arrogant…

“Karen, in my experience communities will offer specials like that when they need to rent more apartments. The reason we’re not offering specials like that right now, honestly, is because we don’t need to. We have lots of long-term residents, people love living here, and there is a high demand for our apartments…”

While the higher rent may still be an issue, now that you’ve explained why you don’t offer those specials it can actually make your community look better. The negative has been turned around and it is now a positive.

Try it! And see what happens!

Happy Leasing!

Rommel Anacan | Company Website | LinkedIn Connect | Rommel is the president of The Relationship Difference; a corporate training, motivational speaking and consulting firm. He is a multi-family housing veteran, having worked at all levels of the industry from onsite to corporate, where he developed a reputation for solving common industry challenges in an uncommon way.

Our property is in really bad shape. Can you turn it around?

How would you respond to a prospective client who posed the above challenge?

Naturally, you’d probably have to ask a few questions to clarify exactly what the prospect meant by “bad shape” before you could provide detailed solutions. Whether you are struggling to turn around a property you currently own or manage or you’d like to be prepared if you’re ever faced with a difficult situation, here are a few challenges and possible solutions.

Vacancy Rates Are Higher Than Occupancy Numbers

This is a serious challenge, one that probably needs multiple solutions. The first step should be to explore what has your property upside down.

• Are you constantly heading to court to start another eviction process?
• Do a large percentage of your tenants pay late or skip out on the rent?
• Is the property in a state of decline or disrepair?
• Have you checked your reputation lately?
• What is the number one complaint you hear from current (or former) tenants?

Screen for Better Occupancy Rates

Let’s start with eviction rates. A TransUnion SmartMove analysis showed resident evictions hit a five-year low in 2014, dropping slightly to 3.41 million. Industry experts suggest the drop indicates tenants today have better control over their finances than they did a few years ago. There are qualified residents out there. If your property struggles with slow-pay or no-pay residents, you may benefit from modifying your resident screening process.

The average cost of an eviction is about $1700. That can really curb your profit margin if you’re filing multiple cases every year. But, don’t make the mistake of thinking one eviction automatically disqualifies an applicant. Two thirds of the 66 million Americans who live from paycheck to paycheck are considered middle class, reporting an estimated net worth of more than $40,000. For these 25.5 million people, any unexpected life event like an accident, job loss or divorce can put their finances in a downward spiral overnight. Utilize your screening tools to help you make informed decisions based on job history, income,  and past performance. Look for patterns more than single events.

Check Your Reputation

Managing your property reputation is critical today. One disgruntled customer can instantly spread their discontent around the digital landscape in seconds. Google your address, company name and the names of key personnel to find out what the Internet is telling people about your community. You should respond to any negative information online and if the complainer has a valid point, admit your mistakes and take immediate action to make sure your property doesn’t make the same mistake twice.

Banish the Bugs

It should go without saying, but here it goes. If you have a pest infestation, deal with it  today. Seriously, right after you read this article, make a plan. Multifamily housing environments report more bed bug infestations and than other sector, including hotels, motels and other hospitality locations, according to a survey conducted by Orkin. Six percent of the survey respondents faced legal challenges stemming from the infestation. Pest control is an integral job for property managers. Not only do pest damage structures and landscaping,  some pose health and safety risks for residents and staff.

Part of your job as a property manager is to talk to owners honestly and openly about issues preventing them from capturing the highest return on investment possible. Perhaps, it’s time to have a conversation about finances and property goals. Before you make that call schedule the meeting, make sure you know the challenges ahead and have solutions.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Most landlords, property managers and real estate professionals probably understand the value of landlord insurance. However, many communities still don’t require every resident to provide proof of renter’s insurance. Things are improving. Between 2011 and 2012, the percentage of landlords/property managers who require self-paid insurance rose almost 15 percent, from 62 to 84 percent. According to the National Multi Housing Council’s 2012 Apartment Cost Risk Survey, almost 85% of respondents claimed they stipulate coverage as a lease requirement. The number is less impressive when you consider that 4 out of 10 people who claimed they required residents to purchase coverage didn’t have a standard that covered all properties.

It wouldn’t make sense to skip your landlord insurance, or fail to renew those riders that protect you against fire, wind, floods and other “normally excluded” acts of God.

Why would you leave yourself open to losses when it isn’t necessary? Recovering losses is arduous at best. In 2013, Scott Woodward, risk manager for Dallas-based Trammell Crow Residential, told Multifamily Executive Magazine the odds are about 1:50 of collecting on a lien filed about tenancy ends.

If you’re still among the shrinking pool of property managers who don’t require renter’s insurance, here are four reasons you should rethink your plan.

Number One: Reduce Exposure

There isn’t one insurance standard that covers every state. Some cities even have rigorous rules that apply only to residents and landlords living within their borders. But, the probability is high that your landlord coverage doesn’t shield you totally from liability.

Did you know that some renter’s policies cover medical expenses if a resident and/or guest is injured on your property? Manager/owners who live on the same property as residents may think their homeowner’s policy is enough, but more often than not, you’ll need a separate policy.

Number Two: It’s “Free”

Okay, technically insurance is never free. Someone has to pay for the policy. You’ll want to explore options to help your residents find affordable cover that protects all stakeholders. Whether you add the monthly fee to your rent tiers or require residents to provide a prepaid policy, your property won’t have to assume the expense unless that is part of your business plan. Some property management firms opt to purchase coverage and pass the expense on to their residents. Others may ask their insurance agent for options that allow them to pay a portion of the coverage. Most probably choose to put the responsibility in the resident’s hands.

Number Three: Lower Your Operating Costs

Renters insurance is like every other insurance product, it’s sole purpose is to protect against emergency losses caused by accidents. There are plenty of other expenses beyond repairing the walls and replacing the appliances after a kitchen fire.

Have you considered loss of rent? If your resident has to temporarily relocate during renovations, who covers their monthly lease obligation to your property? Where will they store personal property and who pays for temporary storage. How much will legal fees cost to defend your claims or file a lien?

Renter’s insurance policies protect the owners, the property managers and the residents. Plus, it’s hard to put a price tag on the peace of mind that comes from knowing you have that extra coverage if something happens.

Number Four: Make it a Marketing Mention

If you’re actively seeking new properties, mentioning you have a company standard that requires renter’s insurance may help you tip the scales in your favor. Owners are looking for managers who know how to protect the investment and save money.

It really doesn’t make sense to continue putting off the decision to add an insurance stipulation to your lease. Have you had a negative or positive experience with renter’s insurance? Comment and share your thoughts with our readers.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money. Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

We’ve all heard the saying, “The customer is always right.” While every property management firm should strive to respect all stakeholders, there are some times that the customer is better served by standing firm.

Do you know when to give in to owner demands and when to gently guide your customers toward a better solution? Check out these examples.

Keeping it Legal

Some things are negotiable, some aren’t. If a property owner asks you to “fudge” the accounting records so they can report less taxable income, don’t. Beyond the obvious, knowingly ignoring federal law, your clients may not understand the complexities and nuances within tax code that allow (or require) changing the reporting method for rental property as new regulations emerge. Not all changes expand tax burdens, some include additional credits and incentives.

Recommend owners schedule a sit-down with their tax accountant to discuss options. Need some research to back up your position? Roughly 20% of attendees to Appfolio’s webinar titled “Is Your Business Ready For An Audit?” reported they had been audited by their State Department of Real Estate.

Your best solution is to remain firm, explain that potential negative sanctions associated with tax fraud far outweigh potential benefits. Then, provide accurate records accessible through your 24-hour on-demand owners’ portal supported by accurate monthly owners’ statements.

Negotiating for the Lease

Another time to stay firm is when owners want to go outside your current lease structure. If you live in an area with strict regulations, explain this to your owners, and provide resources for confirmation.

New York City residents and landlords have myriad laws governing responsibilities and rights on both sides of the fence. But, not every community falls under rent control rules and regulations.

So, what happens if an owner wants to allow a resident to repaint in exchange for rent or refuses to allow long-term residents to change the wall color?

#1. First, make sure your lease documents always agree with local, state and county laws governing who must paint and how often.

#2. If your lease doesn’t specifically exclude residents from painting interior surfaces, discuss preferences with your owner/clients and modify the lease. Exercise caution here. You can’t just march in one day and announce a change in terms in the middle of a contract.

#3. Keep all stakeholders on the same page and document the details. Communicate with your residents and owners in writing.

If you allow renters to repaint interior walls, you should schedule a before and after inspection to identify paint splatter or damage caused during the remodel. Establish some ground rules, in writing, of course.

Things you might include in your agreement are:

• Acceptable color palette
• Who pays for paint and supplies?
• Will tenants be required to repaint before vacating the property?
• Texture and type: flat, semi-gloss or satin paint
• What about trim, molding and baseboards?

Defining Owner Involvement Levels

There are roughly 206 thousand property management firms in the US, but no company dominates the market. Some owners are looking for a hands-on relationship, others are content with their property management company handling all details from screening tenants to replacing appliances and negotiating landscaping and maintenance contracts.

Your role as a manager is to make them so happy they wouldn’t dream of voiding their contract in favor of another team. To do this, you need to constantly evaluate your level of service and “happiness factor.”

• Keep communication lines with tenants and owners open.
• Respect owner and tenant rights and responsibilities.
• Work hard to provide resources and support services that help both segments meet financial goals.
• shape policies and settle disputes with contracts and written agreements.

Helping your owners make sound financial decision is sometimes difficult. While it is never fun to tell a customer “no,” sometimes that is the only way to make sure everyone is protected. Planning for conflict before tempers flare is perhaps the best conflict resolution strategy.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money. Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

When you’re a landlord and in charge of an apartment building, one of the things you really need to do is protect your investment. There are a lot of different ways to do that, and one of the best and most important is to have good insurance. Do you have the right insurance for your apartment building? If you’re a new landlord, and managing (or just owning) an apartment building is new to you, it’s possible that you don’t have enough coverage. It’s also possible that an insurance agent sold you too much coverage, and you’re paying for something you don’t really need to be paying for.

You also have to consider what, exactly, your insurance policy covers. It’s got to handle everything that can realistically happen, or you could end up being sued and/or owing a lot of money to tenants or others who are hurt on your property. Having enough liability coverage is very important, and a good insurance agent can help you determine whether you have what you need or whether you’re putting yourself at risk by not having a policy that is high enough in coverage or comprehensive enough in scope to protect you.

The requirements for insurance will likely be different depending on your state and your specific situation, but that doesn’t mean you should just leave everything to your agent. Ask questions, and make sure you get some real answers. Actually read your policy, and understand what you’re covered for. The more you know about your actual coverage, and the laws when someone tries to sue you, the better off you’ll be and the safer you’ll feel. Owning an apartment complex is a serious business, and it’s vital that you treat it that way to protect yourself and your tenants.

Insurance is a big part of that, and it’s very different from standard homeowner’s insurance. Landlord insurance typically covers property damage, liability, and loss of income. There are some companies that provide landlord coverage that does not include tenant damage. These policies only handle things like break-ins and natural disasters. While that can be enough coverage for a single-family home rental in many cases, it’s often not acceptable for an apartment building, where damage from tenants could easily run into the thousands of dollars. That could far exceed any security deposits, and leave you on the hook for the rest of the repairs. Be sure to ask whether your policy covers damage done by tenants.

It’s also a good idea to ask your insurance agent what you can do to keep your costs down. Some landlords, for example, put in sprinkler systems, security systems, and other protective measures, so they can get a discount on their insurance. Since these systems can be expensive – and sometimes difficult to install in a large apartment building – it’s always a good idea to weigh the costs carefully and find out how much you’ll actually be saving before choosing to add something like that to your property.

American Apartment Owners Association | Company Website | At the American Apartment Owners Association (AAOA), our mission is to serve the interests of landlords, real estate brokers, property managers, real estate owners and apartment building owners nationally. Visit www.AAOA.com for more information about membership details!

Managing sales, recruiting/training staff and attracting new owners are top priorities for professional managers. Naturally, your main focus will fluctuate at times with the pulse and rhythm within your perimeter gates. Establishing rent tiers for your multifamily community is considered the single biggest issue for many management teams. Creating a competitive rental tier structure is imperative for maximizing revenue streams and keeping retention rates high.

If you’re not exactly thrilled with your returns, or your vacancy numbers, reviewing your pricing schedules may help put your property back on the track for success.

Riding the Rent Rollercoaster

Rent rates go up and down with economic conditions. But, that isn’t the only thing driving rising and falling prices. Inventory shifts, commercial development and consumer trends also drive prices. It’s not uncommon for a property to have multi-layered rental structures. Willingness to adjust rates in response to market conditions and local happenings makes the ebb and flow less stressful for management teams and owners.

Tip #1: Unless your property targets a hyper-narrow resident pool (for example, only Section 8 or top one percent wage earners), it’s important to consider diverse financial needs when establishing prices. The norm, if there is such a thing, is to establish three distinct tiers, bottom-, mid-range-, and upper-income, with internal variables that include referral bonuses, renewal incentives and longevity discounts for loyal residents.

Overcoming Long-Term Vacancy Levels

Long-term vacancies eat away at profit margins. If you own or manage property in a declining area you’ll have to make some tough decisions. It’s difficult to think about dropping prices when you’re running at or below 90 percent occupancy. But, the longer a unit sits vacant the more your property declines, and the more money you’ll lose.

Conversely, an uptick in new apartment building can increase, or decrease, average rental rates. Zillow released a report in March 2015 that highlights the importance of understanding local tolerance levels. While the national apartment rental rates shot up almost 4% over 2014 numbers for the same period, Chicago and St. Paul/Minneapolis rates fell.

Tip #2: Utilize rent comparisons tools available with your property management software and keep a close eye on upgrades, promotional marketing campaigns and online reviews for competitors to gain a realistic snapshot of available housing.

Improvements and Upgrades

A survey sponsored by California based Tenants Together revealed some surprising details about tenant perception and rental rates. Most of the more than 5000 respondents renting single family homes owned by corporate entities felt their landlord was overcharging and about 20% reported their landlords failed to respond to repair requests for service, or made only minimal repairs.

Updating flooring and wall colors gives your property a fresh, inviting appearance which is very attractive for tenants. Before you make major renovations or upgrade appliances, consider touring a few competitor properties in your area to see what a prospect will experience from the moment they arrive at the property until they complete a walk-through. Seeing the competition through an apartment seekers eyes gives you valuable insight.

Tip #3: Balancing profit expectations and tenant perception is critical, especially if you’d like to increase rental rates.

Establishing a multi-layer pricing structure may bring your property more in-line with local inventory. Remember to consider the local economy, your target audience, condition and age of your property and competitor price tiers. It’s a balancing act, and one that often changes frequently. When it comes to rental rates, it’s a good strategy not to get too comfortable with your numbers. Sometimes dropping your rates may be just what you need to boost retention and occupancy rates, which ultimately may improve your revenue stream.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money. Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Terminating a tenancy can be a lengthy and complicated process because state laws dictate the steps landlords must take to evict tenants and pursue money for unpaid rent and damages. If you have a tenant who has violated the conditions of the lease, the following information provides a basic overview of the tenant eviction process.

Tenancy Termination Notice

Before you can sue a tenant for damages to the property or unpaid rent, you must legally terminate the tenancy in writing. Then, if the tenant doesn’t move out or pay you what is owed, you can file an eviction lawsuit against the tenant. There are three basic types of termination notices used to terminate a tenancy. Keep in mind the terminology of these basic landlord forms may vary from state to state.

• Pay Rent or Quit Notice: When tenants fall behind on rent, this notice gives them three to five days (in most states) to either pay the rent or move out.
• Cure or Quit Notice: When tenants violate a condition of their rental lease, this notice gives them a set amount of time to correct the violation or move out.
• Unconditional Quit Notice: With this notice, tenants are ordered to move out with no opportunity to stay, even if they correct their behavior or pay their overdue rent. In some states, an Unconditional Quit Notice can only be served for these reasons:
  • The tenant engaged in a serious illegal activity (such as drug dealing) on the premises.
  • The tenant was late paying the rent on more than one occasion.
  • The tenant caused serious damage to the rental property.
  • The tenant repeatedly violated a term of the rental lease.

Each state has its own set of requirements that must be met in order to terminate a tenancy. Since procedures vary from state to state, it’s important to examine your state’s landlord-tenant laws before serving any type of tenancy termination notice.

Pursuing a Tenant Eviction Lawsuit

After receiving the tenancy termination notice, if your tenant refuses to move out or correct the lease violation, you must initiate an unlawful detainer lawsuit. This involves serving the tenant with a summons and complaint for eviction.

Upon winning the lawsuit, you’ll receive a judgment allowing you to take possession of the property. However, this doesn’t allow you to simply throw the tenant and his belongings out onto the street. Typically, you must contact the sheriff’s department so an officer can give the tenant a deadline for moving out. If the tenant doesn’t vacate the premises by the deadline, the officer can physically remove him from your rental property.

Collecting Money After a Tenant Eviction

To recover money during a tenant eviction, you must request a money judgment in your initial eviction complaint. If the judge awards you with this money judgment, the tenant is legally required to pay you all the money that is owed plus interest. This way, even if the tenant fails to pay, you can file have his wages or bank accounts garnished until the money is paid in full.

Once a money judgment is official, it can be submitted to collection agencies and reported on the tenant’s credit report. From here, you must decide whether or not to continue paying a collection agency to pursue the tenant for your money. Unfortunately, if the tenant files bankruptcy, it will interfere with your collection efforts.

The tenant eviction process can be a complex and sticky process so discuss the details of your case with a lawyer before you proceed.

American Apartment Owners Association | Company Website | At the American Apartment Owners Association (AAOA), our mission is to serve the interests of landlords, real estate brokers, property managers, real estate owners and apartment building owners nationally. Visit www.AAOA.com for more information about membership details!

Imagine you had a crystal ball and could get a detailed list of the most important features and amenities college students look for in housing today. How would that impact your marketing strategy? Would it change the way you plan future property upgrades? Could that knowledge shape your investment goals?

We don’t have a crystal ball, but a brief look at what developers are calling a “world-class experience for students” may give you some insight. University Park exudes luxury at every turn, from the resort-style pool with ample green-space lounging area to fire pits and study hammocks. The Boca Raton, Florida project is a massive 279,000+ square-foot off-campus housing community, intentionally designed and built to deliver a five-star resort-eques atmosphere.

Naturally, not all students are looking for luxury accommodations. Nor do they have the budget to live in a well-appointed property like University Park. But, that doesn’t mean they don’t have a similar wish list.

Check out this partial list of the amenities and services available with a standard lease. Then, look for ways to modify your property – or showcase features you already have – to attract qualified students looking for something beyond a slightly larger version of the four-in-a-room dormitory.

1. Covered barbecue grills
2. Community wide 1GB wireless access
3. Secure indoor bike storage
4. Limited access entrance gates
5. On-site management and maintenance teams
6. Valet waste pick-up and disposal
7. Fully furnished apartments – 2-,3- and 4-bedroom homes to accommodate multiple roommates or married couples
8. Energy efficient appliances
9. In-unit laundry
10. Private bathrooms
11. Flat screen TV’s
12. Modern kitchen design and furnishings
13. State-of-the-art 24-hour fitness center
14. Clubhouse/Student lounge
15. Cross-fit room and yoga studio
16. Computer lab
17. Conference and study lounges
18. On-property retail outlet selling snacks, beverages, basic sundries, and both fresh and frozen food items
19. Hi-tech gaming salons
20. Free transportation to and from campus

Building a Reputation as a Five-Star Off-Campus Housing Solution

There are few things on the above list that many property managers probably can’t see a way to include in their standard offerings. For example, mixed use properties are all the rage, but your property may not be zoned for residential/commercial buildings. In that situation, instead of converting a portion of your lowest floor into a mini-market, you may be able to arrange for discounts with local merchants within walking distance of your property or the campus.

University Park negotiated transportation services with a private company. This strategy eliminates huge financial burdens associated with insurance and onerous regulations. To find out if shuttle service is a viable option for your property, contact local transportation services, taxi companies and bus lines.

The next best thing to on-site managers and maintenance teams is 24-hour access for emergencies. Tenant portals provide a reliable connection between your residents, owners and staff so you’re always just a few clicks away. Remember to train your staff and educate all stakeholders on what constitutes an emergency.

With a bit of brainstorming and ingenuity, you may be able to carve out designated spaces for a yoga studio or computer lab on your property. Adding valet waste service isn’t as difficult as you might think – and it may even save your grounds crew time cleaning up around the dumpsters and parking lots. Adding a fire-pit or installing a few comfy hammocks that encourage socializing could be just what college students in your area are seeking.

Building your reputation as the place to rent is an intentional process. If you missed the recent webinar on ways to stand out from the crowd, you can still access the video and slides. After you watch the video, you’ll be able to apply strategies to help you build your reputation among area college students more effectively, without investing a few million dollars on luxury amenities.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money. Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Developing a formal product procurement policy is essential for property management teams. Clearly defined strategies and processes help you control day-to-day costs across all departments, and benefit owner revenue streams when applied consistently.

If you’re looking for a way to benefit all of your multifamily property stakeholders, take a look at your inventory and supply policies. Every product and service directly impacts profitability. It’s important to reduce costs without compromising service and quality.

Remember, everything from replacement appliances to those tiny rubber kitchen faucet gaskets that seem to wear out at the least opportune time must be acquired and installed in the most cost-effective, efficient way to achieve maximum results.

Here are five tips to help you develop a smart property management strategy to reduce expenses and increase your profit margin.

NUMBER ONE: Negotiate volume discounts. On-demand-supplies typically cost more than items purchased under a volume stock and replenish plan. Running to the hardware store every time you need a gasket or value adds extra expense in the form of fuel, man-hours and wear and tear on vehicles. Plus, if parts must be ordered, delays completing repairs often frustrate tenants and owners.

NUMBER TWO: Designate a purchasing control center – even if you assign those duties to a single employee. Greater control improves consistency and accountability. A streamlined system reduces time spent chasing quotes from non-qualified vendors and ensures your property always gets high-quality services or products from pre-vetted vendors and contractors.

NUMBER THREE: Annual process reviews ensure continuity of service for your tenants and higher profit margins for your owners. Once a year – either at the turn of the calendar year or the beginning of your fiscal year – have your purchasing team review the prior year. Standardizing brands, replacement parts, office supplies and other consumables saves time and money stocking and replenishing supplies.

This is also a great time to review volume discounts and contractor agreements for outside services such as landscaping, HVAC repair, tenant liability insurance coverage and other services not provided by your in-house staff.

NUMBER FOUR: Maintaining a warranty-tracking system eliminates unnecessary equipment purchases. Your purchasing department should have a complete list of all equipment – vehicles, in-unit appliances, security system components, office equipment, computing devices, etc. – with serial numbers, purchase date, warranty information and any other pertinent data that identifies relevant details about maintenance and upkeep. Before you order a new frig, check the warranty, and if applicable, identify approved repair centers.

Supplementing your warranty-tracking program with a spreadsheet used for tracking equipment and supplies strengthens internal controls. We’ve all heard stories about laptops sprouting legs and walking off the property or unexplained shortages of office supplies. Your purchasing team should know where every purchase finds a home on your property – and be able to verify it’s movements by serial numbers or other identifying tags.

NUMBER FIVE: The accounting office is no place for ambiguity. Initiate a purchase order system for any item or service over a set threshold. Depending on the size of your property management company that may be $50 or $100, or if you really want to take control of your operating expenses, you may mandate that all purchases require management approval or have a purchase order.

Reconciling and allocating charges is essential. Prior to payment, every invoice must be reviewed for:

• Price inconsistencies/variances
• Unapproved charges
• A clearly defined due date and late fee policy
• Itemized listing of charges
• Correct quantity ordered/received
• Authorization (signature or employee name identifying who placed the order)

Think about this for a minute. If you have a modest profit margin of just ten percent on sales and you shave your expenses by five percent, that generates a fifty percent increase in profit. Naturally, property management accounting structures don’t work exactly like retail outlets, but the point is: eliminating unnecessary costs associated with daily operations has a dramatic impact on profit.

Getting started may seem overwhelming, but your Appfolio.com team is here to help.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money. Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Coveted by property managers far and wide is an individual with the knowledge and skill to plan, execute and care for grounds. Hiring or discovering someone on your management team is blessed with a green thumb, is truly a treasure. Most communities suffer from the fatal floral fantasy. Believing tearing out that big space at the entry, and armed with a $100 budget, the results will look just like that display at Disney.

Sad is the day, that a Regional visits a property to discover a foot wide trench cut through the precious sod with a proud manager and supporting team member, who announce..”Sam’s great with plants we’re going to fill this with flowers.” Either there’s no budget for the soil, plants and irrigation or no time to daily care for the plants that wither away from neglect. Most of the season will be needed to replace the grass that was removed. With plants in the ground, adding new area, less is more.

Equally disappointing is the point of sale purchase by the team member. Leaving the grocery or big box store with office supplies, we think this planter will be beautiful next to the office entry. Its quickly painlessly added to our purchase. Kerplunk! its placed in the planter (with or without its plastic liner) and a week later we notice the plants have died. A skilled staff member can save us from ourselves.

Selecting plants for containers or planting beds requires planning and understanding. Distractions of beautiful blossoms can be fatal. The decision should be based on sunlight exposure and availability of water.

some plants need 6 hours of direct sunlight. some need shade. some will bloom continuously with some daily attention. another amazing discovery is many plants only bloom once a season. they all need water…but how often, how much.?

This simple task, get some flowers in the ground. Is actually a complicated decision, if you want the purchases to be investment decisions for the season.

Again, if you have a talented team member, count yourself among the fortunate. If not, consult the professionals!  Incorporate grounds and curb appeal into your community outreach.

Seasonal flower displays in planting beds or attractive arrangements in planters are a major contributor to property curb appeal. But failure to make the correct selection will create a grounds nightmare of high maintenance or quickly dying plants.

Partnering with a local business can provide the expertise to select plants that will thrive in the specified location. Discussion of the time the maintenance the staff can dedicate to the care and feeding of the floral display should also be considered.

Giving the nursery staff pictures of the planter (guessing its probably too large to take to the nursery.)will help them design a colorful container combination. A label in the plant can provide the credit with “Floral design by…” Additional recognition can be offered through the newsletter. The display of flowers at the East and West entries were designed by ….

Another service could be planning a resident activity. Offering a “How To” event with tips on container gardening with flowering plants or vegetables, gives the vendor an opportunity to build relationship with residents by providing information and possibly selling their products.

Lori Hammond | Company Website | LinkedIn Connect | Lori has 30+ years’ experience in the Property Management Industry, working with both market rate and affordable housing.  Lori has been privileged to work with some tremendous industry leaders during employment tenures with Oxford Management, NHP Management, AIMCO, Alliance Residential, Boston Capital, The Sterling Group, P.K. Housing and currently Management Resources Development.